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HomeMy WebLinkAboutCT 03-04; Newland Court LLC; 2006-0531162; Affordable Housing Agreement/ReleaseDOC# 2006-0531162mil! Recording Requested by: ' City of Carlsbad 7511 JUL 27, 2006 10:49 AM When Recorded Mail to: 3AN D|Er,n u co[rNTY RECORDER'S OFFICE City of Carlsbad GREGORY J. SMITH, COUNTY RECORDER City Clerk's Office FE E S: 35.00 Attn: City Clerk PAGES: 10 1200 Carlsbad Village Drive Illl! lllllillllllllllllllillllllllllllCarlsbad. California 92008 I ill I Hill Hill Hill IIIH ill Bll • HI 111 • Hi Hill Illl! I 2006-0531162 AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this _jrdL day of October. 2005, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the "City"), and Newland Court LLC, a limited liability company, (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 03-04, and Site Development Plan SDP 03-08, which provides conditional approval of the construction of seven (7) single family dwelling units ("Project"). B. Condition No. 12 of Planning Commission Resolution No. 5520, states that this Affordable Housing Agreement shall be entered into between the City and the Developer as a means of satisfying 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. 5520 provides that the Affordable Housing Obligation will be satisfied by applying the requirements set forth in this Agreement for one (1) affordable housing lot ("Affordable Housing Lot"). The Affordable Housing Lot which is subject to this Agreement is: Lot 7 of Carlsbad Tract No. 03-04 in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. 15361 filed with the County Recorder of San Diego County on June 16, 2006. C. Developer intends to construct the required inclusionary unit 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 REQUIREMENTS THROUGH CONSTRUCTION OF SECOND DWELLING UNITS. Performance under this Agreement satisfies the Developers' obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by Tentative Map CT 1/30/03 7512 03-04, including Condition No. 12 listed in Planning Commission Resolution No. 5520 and Site Development Plan SDP 03-08, any other applicable condition of approval. 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 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. 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. 5520. 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. 03-04. 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, 1/30/03 7513 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 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: Newland court LLC C/O Jeffrey Dahl 18681 Amalia Lane Hungtington Beach, Ca. 92648 Any party may change the address to which notices are to be sent by notifying 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 useful 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. 1/30/03 7514 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. DEVELOPER Newland Court LLC, a limited liability company By: , Name HarcHa A. Possigian Title Managing Partner By: ^""Nanfe <•—-Title CITY City of Carlsbad, a Municipal corporation By: Sandra L. Holder Community Development Director 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 must 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 . By: Jar/e/Mofjaldi, Assistant City Attorney 1/30/03 751S CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT 1 State of California County of RIVERSIDE On personally appeared before me. 15 NOTARY PUBLIC -Pb55;j;.Name and Title of Officer (e.g.. "Jane Doe, Notary Public"! B. FREED Commission* 1356023 Notary Public - California Riverside County My Comm. Expires Jun 6,2006 ^ I Name(s) of Signer(s) D personally known to me >£tproved to me on the basis of satisfactory evidence to be the person^&^whose name^ef is/a*e~" subscribed to the within instrument and acknowledged to me that he/sJreTfljeyexecuted the same in his/hef#helr authorized capacity(ipe), and that by signature(g)^oh the instrument the j the entity upon behalf of which the person^" acted, executed the instrument. WITNESS my hand and official seal. Signature of Notary Public 1 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 Document Title or Type of Document:. Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual D Corporate Officer - Title(s): D Partner — D Limited D General D Attorney-in-Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing:_ . Number of Pages: RIGHT THUMBPRINT OF SIGNER Top of thumb here 7516 State of California County of personally appeared u D. ADAME Comm. 11324206 NOTARY PUBLIC-CALIFORNIA Los Angilei County "" My Comm. Expirti Oct.6,2005 "f (I) g personally known to me vtfproved to me on the basis of satisfactory evSaence to be the pereon(s) «vfwM name(«) te/«ra subscribed to the within instrument end acknowledged to me that he/she/they executed the same (n hte/ner/theJr authorized capacftyfles), and that by hia/her/thelr sJgnature(s) on the instrument the person(s), or the entity upon behalf of wWch the person(s) acted, executed the instrument and official seal. Place NdaySm Atom Sjgralum of Malay M*c OPTIONAL Though ttemfomtalKn beta* is not isquimd by tew. it may atebfe to persons isfying on tho document and could pmvenl foudulet* removal ami mattaOment of Otis toon to another document. Description of Attached Title or Type of Document Document Date:.Number of Pages:. Signers) Other Than Named Above:. Capacity(tes) Claimed by SSgner Signer's Name: _ O Individual D Corporate Officer — TiUe(s): _ O Partner— D Limited D General O Attorney in Fact O Trustee D D Guardian or Conservator Other Signer Is Representing:, Top of thumb here ^^Sj&SC^ZXZiXxSCiSev^^ © -1997 National NolwyAssodalion- 9350 DeSotoAwe.. P.O. Box 240Z ' Chatnmfn CA 91313-ZWZ Prod. Mo. 5907 Reader: Can Tot-Free 1-800-87M827 . 7517 ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY APN# 156-200-39 Lot 7 inclusive of the City of Carlsbad Tract 03-04 according to the map thereof Map #15361 filed in the office of the County Recorder of the County of San Diego on June 16, 2006. 1/30/03 7518 ATTACHMENT B MAXIMUM MONTHLY RENTAL AMOUNT Household Size One Person Two Person Monthly Maximum Rent $845 $966 1/30/03 ATTACHMENT 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 21.10.015 for the useful 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. 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. 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. 1/30/03