HomeMy WebLinkAboutCT 02-25; Hall Land Co Inc; 2004-0933861; Affordable Housing Agreement/ReleaseDOC # 2004-0933861
Recording Requested by:
City of Carlsbad
When Recorded Mail to:
City of Carlsbad
City Clerk’s Office
Attn: City Clerk
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OCT 01,2004 8:25 AM
OFFICIAL RECORDS SAN DIEGO COUNT‘t’ RECORDER’S OFFICE I;REI;OR i J 5MITH CUUNT‘I’ RECURCIER
FEES u nu PAGE 5 10
AFFORDABLE HOUSING AGREEMENT
?/r THIS AFFORDABLE HOUSING AGREEMENT (“Agreement”) is entered into this 28 day
of sc\ n-9 ,2004 by and between the CITY OF CARLSBAD, a municipal corporation
(hereinafter referred to as the “City”), and Hall Land Company, Inc., a California Corporation, (hereinafter
referred to as the “Developer”), is made with reference to the following:
RECITALS
A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego,
State of California, described in “Attachment A”, which is attached hereto and incorporated herein by this
reference, and which is the subject of a Tentative Map CT 02-25, which provides conditional approval of
the construction of twelve (12) single family dwelling units (“Project”).
B. Condition No. 12 of Planning Cokission Resolution No. 5422, states that this Affordable
Housing Agreement shall be entered into between the City and the Developer as a means of satisfymg the
Developers’ affordable housing obligation (“Affordable Housing Obligation”), as such is defined under
Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 5422 provides that
the Affordable Housing Obligation will be satisfied by applying the requirements set forth in this
Agreement for two (2) affordable housing lots (“Affordable Housing Lots”). The Affordable Housing Lots
which are subject to this Agreement are:
Lots 8 and 12 of Carlsbad Tract No. CT 02-25 in the City of Carlsbad, County of San
Diego, State of California, according to Map thereof No. I 4 7 4 0 filed with the
County Recorder of San Diego County on Jv\ &v I I I zoo+.
C. Developer intends to construct the required inclusionary units concurrent with the project’s
market units that are also identified on Exhibit “A”. The Affordable Housing Lots shall be subject to this
Agreement and this Agreement shall be recorded on each Affordable Housing Lot.
NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual
covenants contained herein, the parties agree as follows:
1. The Recitals Are True And Correct.
2. SATISFACTION OF AFFORDABLE HOUSING REOUDREMENTS THROUGH
CONSTRUCTION OF SECOND DWELLING UNITS.
Performance under this Agreement satisfies the Developers’ obligation for affordable housing
under Chapter 2 1.85 of the Carlsbad Municipal Code as applied to the land covered by Tentative Map CT
02-25, including Condition No. 12 listed in Planning Commission Resolution No. 5422, and any other
applicable condition of approval.
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3. SECOND DWELLING UNITS.
(a) Construction of Second Dwelling Units. Developer shall at the time a residential structure is
constructed on the Affordable Housing Lot, include in such residential structure a Second Dwelling Unit
as defined under and subject to the requirements contained in Municipal Code Section 21.10.015.
(b) Restriction on Rental of Second Dwelling. Unit. The maximum monthly rent for any Second
Dwelling Unit, subject to this Agreement, which becomes rented or leased shall not exceed an amount of
1/12th of thirty percent (30%) of the gross monthly income of a low-income household, adjusted for
household size, at eighty percent (80%) of the San Diego County median income, as such median income
is published by the United States Department of Housing and Urban Development from time to time. For
purposes of this Agreement, “Rent” shall include a utility allowance as established and adopted by the City
of Carlsbad Housing Authority, as well as all required monthly payments made by the tenant to the lessor
in connection with use and occupancy of a housing unit and land and facilities associated therewith,
including any separately charged fees, utility charges, or service charges assessed by the lessor and payable
by the tenant (but not including fees and charges resulting from any default by the tenant or damage caused
by the tenant, or fees or charges paid by the tenant to third party utilities or other providers). A sample
schedule showing the calculation of the maximum rental amount as for 2004 is attached to this Agreement
as Attachment “B”.
(c) Restriction on Tenant Income. The Affordable Units shall be available to households with
incomes not exceeding 80% of the median income for San Diego County, adjusted for actual household
size.
(d) Declaration. Developer shall require the purchaser from Developer of an Affordable Housing
Lot upon which a Second Dwelling Unit has been constructed to sign an affidavit or declaration under
penalty of perjury, in a form prescribed by the City Planning Director, which states that if the Second
Dwelling Unit on the affordable housing lot is rented that it shall be rented at a monthly rental rate not to
exceed the rate set forth in paragraph 3(b). Developer shall forward the original declaration to the City
Planning Director for maintenance in the City’s files, and retain a copy for its own files in the event proof
becomes necessary.
(e) Deed Restriction. Prior to the sale of an affected lot, the Developer shall provide proof to the
City Planning Director that the language contained in Exhibit “C” has been included in each deed prior to
the sale of an affected property and will run with the land so as to restrict subsequent transfers.
4. REMEDIES
Failure by the Developer to perform in accordance with this Agreement will constitute failure to
satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. 12 of
Planning Commission Resolution No. 5422. Such failure will allow the City to exercise any and all
remedies available to it including but not limited to withholding the issuance of building permits for the
lots shown on Carlsbad Tract No. CT 02-25.
5. HOLD HARMLESS
Developer will indemnity 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,
obtained, allegedly caused by, arising out of or retaining in any manner to Developers’ actions or defaults
pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect
2 1 /3 0103
thereto. Developer’s shall obtain, at its expense, comprehensive general liability insurance for
development of the Project naming Indemnities as additional insureds with aggregate limits of not less than
one million dollars ($1,000,000) purchased by Developer from an insurance company duly licensed to
engage in the business of issuing such insurance in the State of California, 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 City Clerk prior to the issuance of any building permit for the Project.
6. 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
address set forth below:
TO THE CITY:
City of Carlsbad
Housing and Redevelopment Department
Attn: Housing & Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-2389
TO THE DEVELOPERS:
Hall Land Company, Inc.
Michael J. Hall, President
10675 Sorrento Valley Road, #200B
San Diego, CA 92 12 1
Any party may change the address to which notices are to be sent by notifylng the other parties of the new
address, in the manner set forth above.
7. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties and no modification hereof
shall be binding unless reduced to writing and signed by the parties hereto.
8. DURATION OF AGREEMENT
This Agreement shall terminate and become null and void upon repeal, termination, or modification
of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or
unenforceable. The restriction set forth in Paragraph 3(b) above shall terminate as to the Affordable
Housing Lot at such time as the Second Dwelling Unit on the Affordable Housing Lot has reached the end
of its usehl life, which is assumed to be not less than 55 years from the date of completion of original
construction.
9. SUCCESSORS
This Agreement shall benefit and bind Developers and any successive owners of Affordable
Housing Lots.
3 1 13 0103
10. SEVERABILITY
In the event any provision contained in this Agreement is to be held invalid, void or unenforceable
by any court of competent jurisdiction, the remaining provisions 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 signed as of the
day and year first above written.
DEVELOPERS CITY
City of Carlsbad, a Municipal corporation
By: By: . Name Michat$ JI #all Title President Community Development Director
If required by City, proper notarial acknowledgment of execution by contractor must be attached. &
Comoration, Agreement must be signed by one corporate officer from each of the following two groups.
*Group A.
Chainnan,
President, or
Vice-president
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation
corporate seal empowering the officer(s) signing to bind the corporation.
attach a resolution certified by the secretary or assistant secretary under
APPROVED AS TO FORM:
RONALD R. BUL, City Attorney
By:
4 1 I3 0103
ACKNOWLEDGEMENT
State of California 1
)
County of San Diego ) 1
On Januaw 28,2004 , before me, Lauri E. Walker I
Notary Public, personally appeared
personally known to me (q ) to be the
person(?) whose name($) is/v subscribed to the within instrument and acknowledge to
me that he/$te/tbey executed the same in his/M/ttpr authorized capacity(w), and that
by his/tyx/tMr signature@) on the instrument the person(@, or the entity upon behalf of
which the person@) acted, executed the instrument.
Michael J. Hall
WITNESS my hand and official seal.
LA 12 # M
Signature of Notary Public
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California } SS. County of an la7 B
On lfL ,
personally appeared bk flu
Name($ of Signer@)
apersonally known to me
0 proved to me on the basis of satisfactory
evidence
'lace Notary Seal Above
to be the person(.@ whose name@) islate
subscribed to the within instrument and
acknowledged to me that kelshelthey executed
the same in 4ts/her/theic authorized
capacity(*), and that by kislherltk
signature@) on the instrument the person(@, or
the entity upon behalf of which the person(4
acted, executed the instrument.
WITNESS my hand and official seal.
OPTIONAL
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 D
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above: Ytlr ClnapA J-cha 11
C Partner - 0 Limite
D Attorney in Fact
0 Trustee
0 Guardian or Conservator
Signer Is Representing:
0 1999 National Notary Association - 9350 De Solo Ave., P 0 Box 2402 Chatsworth, CA 91 31 3-2402 - wruwnationalnolan/.org Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827
ATTACHMENT A
(EXHIBIT A)
LEGAL DESCRIPTION OF SUBJECT PROPERTY
ALL OF CARLSBAD TRACT NO. 02-25, IN THE CITY OF CARLSBAD,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN ON
MAP THEREOF NO. 14790 FILED IN THE OFFICE OF THE COUNTY
RECORDER, MAY 11,2004
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ATTACHMENT C
(EXHIBIT c)
DEED RESTRICTION
A Second Dwelling Unit has been constructed as part of this property, and shall be maintained
and utilized in accordance with the requirements of Carlsbad Municipal Code Section 2 1.10.01 5
for the usehl life of the main structure (estimated to be 55 years). The maximum monthly rent
for the Second Dwelling Unit, if rented or leased, shall not exceed an amount equal to thirty
percent (30%) of the gross monthly income of a low-income household, adjusted for household
size, at seventy percent (70%) of the San Diego County median income as such median income is
published by the United States Department of Housing and Urban Development from time to
time. Prior to subsequent transfers of the property, seller shall require the purchaser to submit a
signed affidavit or declaration under penalty of perjury on a form satisfactory to the City
Planning Director, to the Planning Department, which acknowledges that the purchaser has read
and understand the restrictions as they relate to the Second Dwelling Unit. The Affordable Units
shall be available to households with incomes not exceeding 80% of the median income for San
Diego County, adjusted for actual household size.
7 1/30/03
CORPORATE RESOLUTION
AUTHORIZING THE SIGNATURE OF MAPS & DOCUMENTS
FOR THE SUBDIVISION & DEVELOPMENT OF LAND AND THE
CONSTRUCTION & SALE OF HOMES IN THE CITY OF
CARLSBAD, CALIFORNIA
RESOLVED: That Michael J. Hall, the President of Hall Land Company,
Inc., a California Corporation, is hereby authorized and empowered for and
on behalf of and in the name of this corporation to do all acts and to
execute all maps and documents that are necessary in the ordinary course
of business in the subdivision and development of land and the
construction and sale of homes, and that the signature of Michael J. Hall is
the one and only signature needed to perform such acts.
I, Michael J. Hall, President of Hall Land Company, Inc. a corporation
created and existing under the laws of the State of California, do hereby
certify and declare that the foregoing is a full, true and correct copy of a
resolution duly passed and adopted by the Board of Directors of said
corporation at a meeting of said Board duly and regularly called, noticed
and held, at the office of said corporation on the 16th day of January, 2004,
at which meeting a quorum of the Board of Directors was present and
voted in favor of said resolution; and that said resolution is now in full
force and effect.
I further certify that the office referred to in the foregoing resolution is now
held by the following, whose signature appears after their respective name.
President