HomeMy WebLinkAboutCT 01-16; Casa Laguna Group Investors LLC; 2004-0980136; Affordable Housing Agreement/ReleaseRECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
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OCT 15,2004 8:29 AM
OFFICIAL RECORDS
SAN DIEGO COCINT'I RECORDER'S OFFICE GREGORI'J. SMITH.. COUNTY RECORDER FEES: 0.00
PAGES: 15
I111111 AlllU1111111111111 Ulll Ill11 Ylll lllll Ill11 1111 ll11111111 lllll111 Ill1 City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
This AFFORDABLE HOUSING AGREEMENT MPOSING RESTRICTIONS ON
REAL PROPERTY ("Agreement"), is entered into this pday of September 2002, by and
between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the
("City"), and Casa Laguna Group Investors, LLC, a California limited liability company
(hereinafter referred to as the "Developer"), is made with reference to the following:
A. Developer is the owner of certain real property in the City of Carlsbad, in the
County of San Diego, California (hereinafter referred to as the "Subject Property") described in
"Attachment A", which is attached hereto and incorporated herein by this reference.
B. For the purposes of this Agreement, Developer currently intends to construct a
total of twelve (12) residential units (hereinafter referred to as the "Development") on the Subject
Property. The City has approved Tentative Tract Map CT 01-16, Site Development Plan SDP
01-1 5 and Coastal Development Permit CDP 01-42 for the Development. The City issued the
approval subject to certain Conditions of Approval, including a condition requiring at least
fifteen percent (1 5%) of the units in the Master Development to be affordable housing as
required by the City's Inclusionary Housing Ordinance (CMC Chapter 21 35).
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In
order to satisfy the Conditions of Approval of CT01-16, SDPO1-15, and CDPO1-42 and
requirements of the City's Inclusionary Housing Ordinance, Carlsbad Municipal Code Chapter
21.85, Developer shall provide a total of two (2) Affordable Units which shall be restricted and
affordable to lower-income households. This Agreement is an Affordable Housing Agreement
pursuant to Section 21.85. 140 of Chapter 21.85 of the Carlsbad Municipal Code. Developer
shall submit this Agreement to City and Agreement shall be executed prior to the approval of the
final map for the subject property.
2. Terms Governing Provision of Affordable Units.
2.1. Obligation to Provide Affordable Units.
2.1.1. Developer shall provide the two (2) Affordable Units in relation to
Market Units ("Market Units") on the Subject Property. The Affordable Multifamily Units shall
include a studio and a one-bedroom unit with the square footage indicated in "Attachment B" to
this Agreement. The maximum allowable income level of buyers of the affordable units shall be
restricted to a maximum of 80% of the area median income.
2.2 Schedule for Developing Affordable Units.
2.2.1. Prior to the approval of any Final Map, Grading Permit or Building
Permit for the Development: (i) this Agreement shall be duly executed and recorded; and (ii) the
Developer shall have received approval of a Site Development Plan for all of the Affordable
Multifamily Units included in the Development.
2.2.3 Upon satisfying the applicable conditions stated in Sections 2.2.1,
building permits can be released for a total of ten (10) market rate units and for the two (2)
Affordable Units.
2.4 Terms for Sale of Affordable Units.
2.4.1. The Schedule of Maximum Eligible Buyer Incomes and Affordable
Subsidized Purchase Prices (the "Schedule") attached hereto and incorporated herein as
"Attachment C" sets forth the City's requirements for determining the maximum household
income of buyers of the Affordable Units ("Eligible Buyers") and the methodology for
calculation of the subsidized purchase prices of Affordable Units which will be affordable to
each of the Eligible Buyers (the "Affordable Purchase Prices"). The Schedule also includes
initial estimates of Eligible Buyer actual incomes and the corresponding Affordable Purchase
Prices. The Final Schedule shall be established prior to sale based on the San Diego County
Area Median Income and the cost factors applicable at the time. The Final Schedule shall be
submitted by the Developer and approved by the City's Housing and Redevelopment Director
prior to the marketing of the Affordable Units.
2.4.2. The Developer shall sell the Affordable Units only to Eligible
buyers whose household incomes have been verified by the Developer. The purchase price for an
Affordable Unit (the "Market Purchase Price") shall be the market price charged for a
comparable unit (and not to exceed fair market value); provided, however, that the Developer
shall carry back financing equal to the difference between the Market Purchase Price and the
Affordable Purchase Price for the particular Eligible Buyer (the "Primary Affordability
Subsidy"). The carryback financing shall be assigned by the Developer to the City, and shall be
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evidenced by a promissory note from the Eligible Buyer to the City, secured by a second
mortgage deed of trust on the Affordable Unit (the "City Second Mortgage"). The balance of the
Market Purchase Price shall be paid by the Eligible Buyer to the Developer in cash, utilizing
downpayment monies and first mortgage proceeds.
2.5 Terms for Re-sale of Affordable Units. After the initial sale of the inclusionary for-
sale units at a price affordable to the target income level group, inclusionary for-sale units shall
remain affordable to subsequent low income eligible buyers pursuant to a resale restriction for a
minimum term of fifteen (15) years. Beginning sixteen (16) years after the initial purchase of an
Mordable Unit, for-sale units may be sold at a market price to other than targeted households
provided that the sale shall result in the recapture by the City or its designee of a financial interest in
the units equal to the amount of subsidy necessary to make the unit affordable to the designated
income group and a proportionate share of any appreciation. Funds recaptured by the City shall be
used in assisting other eligible households with home purchases at affordable prices. To the extent
possible, projects using for-sale units to satisfy inclusionary requirements shall be designed to be
compatible with conventional mortgage financing programs including secondary market
requirements.
3. Citv Approval of Documents.
3.1. The following documents, in form and substance acceptable to the City,
shall be used in connection with the sale of Affordable Units. Documents to be prepared by the
Developer shall be submitted to the Housing and Redevelopment director for review and
approval no later than the start of construction of the Affordable Units.
3.1.1. A marketing plan establishing the process for seeking, selecting and
determining the eligibility of buyers of the Affordable Units shall be prepared by the Developer.
3.1.2. An educational program informing Affordable Unit purchasers of the
obligations of home ownership and the specific features of this program shall be prepared by the
Developer.
3.1.3. Purchase and Sale Agreements for sale of the Affordable Units shall be
prepared by the Developer.
3.1.4. City Second Mortgage promissory note, deed of trust, and
borrower disclosure form shall be provided by the City.
3.2 Any of the documents identified in this section 3.1 may be revised by
Developer from time to time with the prior Written approval of the Housing and Redevelopment
Director.
4. Mortgage Credit Certificate Promam. Buyers of the Affordable Units may qualify
for income tax credits pursuant to Mortgage Credit Certificate (MCC) Program, for a portion of
the annual interest paid on a first mortgage used to acquire the Affordable Unit. City shall
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cooperate with Developer in obtaining and providing to prospective buyers Mortgage Credit
Certificates from allocations which it may receive.
5. Reportinn and Compliance Monitoring. A report verifying compliance with the
requirements of this Agreement covering the initial sales of the Affordable Units shall be
provided to the City by the Developer and approved by the Housing and Redevelopment
Director. Developer shall provide the City with other reports as reasonably required by the City
to verify compliance with this Agreement.
6. Default. Failure of the Developer to cure any default in the Developer's
obligations under the terms of this Agreement within (90) days after the delivery of a notice of
default from the City (or where the default is of the nature which cannot be cured within such
ninety (90) period, the failure of the Developer to commence to cure such default within the
ninety (90) day period or the Developer's failure to proceed diligently to complete the cure of
such a default within a reasonable time period but in no event not greater than 180 days) will
constitute a failure to satisfy the Conditions of Approval with respect to the Subject Property and
the requirements of Chapter 21.85 of the Carlsbad Municipal Code and void the approval of the
Final Map and Site Development Plan; and the City may exercise any and all remedies available
to it with respect to the Developer's failure to satisfy the Conditions of Approval, including but
not limited to, the withholding of building permits for the Market Units within the Subject
Property until such cure is completed.
7. Appointment of Other Agencies. - At its sole discretion, City may designate,
appoint or contract with any other public agency, for-profit or non-profit organization to perform
the City's obligations under this Agreement.
8. Release of Subject Property From Agreement. The covenants and conditions
herein contained shall apply to and bind the Developer and its heirs, executors, administrators,
successors, transferees, and assignees of all the parties having or acquiring any right, title or
interest in or to any part of Subject Property and shall run with and burden the Subject Property
and shall run with and burden the Subject Property until terminated in accordance with the
provisions hereof. Prior to the issuance of building permits, the Developer shall expressly make
the conditions and covenants contained in this Agreement a part of any deed or other instrument
conveying any interest in the Subject Property. Notwithstanding anything to the contrary set
forth in the Agreement, individual purchasers of units pursuant to an approved public report in
compliance with the California Subdivided Lands Act, and mortgage lenders holding deeds of
trust on such individual units after sale to such purchasers, shall not be subject to the terms of
this Agreement; and the terms of this Agreement shall be of no further force or effect with
respect to such completed unit on the date of the recordation of a deed to the individual
purchaser. Upon issuance of certificates of occupancy for all of the Affordable Units, the entire
Subject Property, with the exception of the two (2) affordable units, shall be released from the
burdens of this Agreement. The burdens of this agreement shall remain in full force and effect
and recorded against the two (2) affordable units for the duration of this agreement.
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9. Hold Harmless. Developer will indemnify and hold harmless (without limit as to
amount) City and its elected officials, officers, employees and agents in their official capacity
(hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss,
all risk of loss and all damage (including expense) sustained or incurred because of or by reason
of any and all claims, demands, suits, actions, judgments and executions for damages of any and
every lund and by whomever and whenever made or obtained, allegedly caused by, arising out of
or relating in any manner to Developer's performance or non-performance pursuant to this
Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. The
provisions of this section shall survive expiration or other termination of this Agreement or any
release of part or all of the Property from the burdens of this Agreement, and the provisions of
this Section 9 shall remain in full force and effect
10. Insurance Requirements: Developer shall obtain, at its expense, comprehensive
general liability insurance for the development of the Subject Property naming Indemnitees as
additional named insureds with one million dollars ($1,000,000) per occurrence and aggregate
limits of not less than two million dollars ($2,000,000) for bodily injury and death and property
damage, including coverages for contractual liability and products and completed operations,
purchased by Developer or its successors or assigns from an insurance company duly licensed to
engage in the business of issuing such insurance in the State, with a current Best's Key Rating of
not less than A-:V, such insurance to be evidenced by an endorsement which so provides and
delivered to the Housing and Redevelopment Department prior to the issuance of any building
permit for the Subject Property..
11. Notices. All notices required pursuant to this Agreement shall be in writing and
may be given by personal delivery or by registered or certified mail, return receipt requested, to
the party to receive such notice at the addressed set forth below:
TO THE CITY OF CARLSBAD
CITY OF CARLSBAD
Housing and Redevelopment Department
Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-2389
TO THE DEVELOPER:
Casa Laguna Group Investors, LLC
C/o Merit Group Inc., Managing Member
Attention: David Buckmaster
2171 El Camino Real, Suite 202
Oceanside, CA 92054
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12.
the parties and no modification hereof shall be binding unless reduced to writing and signed by
the parties hereto.
Integrated Agreement. This Agreement constitutes the entire Agreement between
13, Duration of Agreement. This Agreement shall terminate and become null and
void upon the earlier of: (a) the closing of the sale of the last of the Affordable Units to an
individual purchaser pursuant to a sale on an approved public report in compliance with the
California Subdivided Lands Act, or (b) upon the granting of a written release by the Community
Development Director. This Agreement, and any section, subsection, or covenant contained
herein, may be amended only upon the written consent of Developer and the Community
Development Director.
14. Recording of Agreement. The parties hereto shall cause this Agreement to be
recorded against the Subject Property in the Official Records of he County of San Diego.
15. Severability. In the event any limitation, condition, restriction, covenant, or
provision contained in this Agreement is to be held invalid, void or unenforceable by any court of
competent jurisdiction, the remaining portions of this Agreement shall nevertheless be and
remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed as of the day and year first above written.
DEVELOPER CITY
Casa Laguna Group Investors, LLC, a City of Carlsbad, a Municipal corporation
California limited liability company I /
Name
Title
By:
Name
Title
By: Merit Group Inc., a By: Y -
kandra L. Holder
Community Development Director
..
By:
Patricia A.'Buckmaster
Secretary, Managing Member
6
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California I
Y
Name@) of Signer(%)
0 personally known to me
Pproved to me on the basis of satisfactory
evidence
to be the persong whose nameM is/-
subscribed to the within instrument and
acknowledged to me that Mhe/they executed
the same in kis/her/their authorized
capacity(% and that by his/her/their
signaturwon the instrument the person(&$ or
the entity upon behalf of which the personM
acted, executed the instrument.
OPTlONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document: && ab\e ha<nCh ~~-eph”S;t-
Signer@) Other Than Named Above: I
Signer’s Name% -&l- khh ~.K.Jq.i-ILL3,r
Document Date: QmbW I\ a.cm2 ‘Numb?of Pages: 1 I
CapacityQes) Claimed by Signer
,kQ Individual
0 Corporate Officer - Title(s):
0 Partner - 0 Limited 0 General
0 Attorney-in-Fact
0 Trustee
0 Guardian or Conservator
0 Other:
Signer Is Representing:
B 1999 Natmal Notary Association 9350 De Solo Aye.. P.0 Box 2402 - Chatsworth, CA 91313-2402 w.nationalnotaryog Prod No 5907 Reorder: Call Toll-Free 1-800-876-6827
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California 1
County of 1 ss.
On i- before me r3,tr\(:\a L. OF€WQ.vT
Date Name and mtle of Officer (e g Jane Doe Notary Public”)
personally appeared kk Y -F+x, v-
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to be the person(?$ whose namew is/w
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acknowledged to me that helskttby executed
the same in his/- authorized
capacity(?@, and that by his/hmitheir
signaturew on the instrument the personM, or
the entity upon behalf of which the person(&
acted, executed the instrument.
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons re/ying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: R&flT IP bm‘K;t-uL Rc~rPQWk
Signer(s) Other Than Named Above: \
yf i\,arna C3NumbeifPages: \ I
Capacity(ies) Claimed by Signer
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Signer Is Representing: hj /fi
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0 1999 National Notary Association - 9350 De Soto Ave.. P.0 Box 2402 * ChatSworih, CA 91 31 3-2402 www nationalnotary.org Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827
If required by City, proper notarial acknowledgment of execution by contractor must be attached.
If a Corporation, Agreement must be signed by one corporate officer from each of the following
two groups.
*Group A.
Chairman,
President, or
Vice-president
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation ma attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
By:
y Assistant City Attorney
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ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
All of Lot 1, in the City of Carlsbad, County of San Diego, State of California according to Map
No. 14538 filed as document 2003-01 57945 on February 11,2003 recorded in the office of the
County Recorder of San Diego County.
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ATTACHMENT B
LOCATION, SIZE, AND BEDROOM COUNT
OF AFFORDABLE UNITS
9
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ATTACHMENT C
MAXIMUM ELIGIBLE BUYER INCOMES
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