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HomeMy WebLinkAboutCT 05-01; Crescent del Sol; 2006-0398656; Affordable Housing Agreement/ReleaseDOC# 2006-0398656 94&0 Recording Requested by: City of Carlsbad When Recorded Mail to: City of Carlsbad City Clerk's Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad. California 92008 JUN 06, 2006 2:41 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE GREGORY J. SMITH, COUNTY RECORDED FEES: 38.00 PAGES: 11 2006-0398656 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this9rM day of May ,2006, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the "City"), and Crescent del Sol, 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 05-01 , Condominum Permit 05-09, and Coastal Development Permit 05-06, which provides conditional approval of the construction of eight ( 8 ) condominium units ("Project"). B. Condition No. 12 of Planning Commission Resolution No. 5974, 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.5974 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 are subject to this Agreement are: Lot E.U.A. #4 of Carlsbad Tract No, 05-01 in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. 1803 filed with the County Recorder of San Diego County on August 25, 1924 , 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 REQUIREMENTS THROUGH CONSTRUCTION OF A SECOND DWELLING UNIT. 1/30/03 9481 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 05-01 . including Condition No. 12 listed in Planning Commission Resolution No. 5974 and, 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 thirty percent (30%) of 1712th of the gross annual 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 2006 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. 5974 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. 05-01 . 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 2 1/30/03 "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 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: Mr. Wayne Blass, President Crescent del Sol, LLC 7237 Sanderling Court Carlsbad, CA 92011 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 9483 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 and year first above written. CITY City of Carlsbad, a Municipal corporation DEVELOPER Cresbent del Sol. LLC _ By: /ayne^Blass ingame ''Sandra L. Holder President Community Development Director By: Name Title 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. **Group B. Chairman, Secretary, President, or Assistant Secretary, Vice-President 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 Attorney By: 1/30/03 State of California County of On / if £/ o , personally appeared CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT ^<^X^c<SoCxy?<c<V^cC?cC-c^<c^-c<Sc^ I I I I Ii 9484 Place Notary Seal Above 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: ^<XyC<:X^X^<^<^X3X>X^><:X:'-C<X7<NX3XVs I | | I I of Sj0rfer(s) Impersonally known to me Z proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executej^the instrument. WITNES. Document Date:Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual D Corporate Officer — Title(s): D Partner — Z Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer Is Representing:.i © 1999 Nalional Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 * www.nationalnotary.org Reorder: Call Toll-Free 1-800-876-6827 /O 9485ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY LOT 1 IN BLOCK"!" OF PALISADES NO. 2 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1803, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, AUGUST 25, 1924. 1/30/03 ATTACHMENT B 9486 MAXIMUM MONTHLY RENTAL AMOUNT County of San Diego Metropolitan Statistical Area Household Income Limits Note: The following household Income limits are adjusted for a high cost area as per the Federal Housing Act of 1937 and calculated using HCD methodology to comply with Health and Safety Code Sections 50052.5 and 50093. 2006 San Diego MSA Median Income $ 64,900 U.S. Department of Housing and Urban Development EFFECTIVE: March 8,2006 Hshold Size ONE TWO THREE FOUR FIVE SIX SEVEN EIGHT 30% Annual Monthly 30.00% Income Income Monthly $14,500 $16,550 $18,650 $20,700 $22,350 $24,000 $25,650 $27,300. $1,208 $1,379 $1,554 $1,725 $1,863 $2,000 $2,138 $2,275 $363 $414 $466 $518 $559 $600 $641 $683 35% Annual Monthly 30.00% Income Income Monthly $16,900 $19,300 $21,750 $24,150 $26,100 $28,000 $29,950 $31,900 $1,408 $1,608 $1,813 $2,013 $2,175 $2,333 $2,496 $2,658 $423 $483 $544 $604 $653 $700 $749 $798 40% Annual Monthly 30.00% Income Income Monthly $19,300 $22,100 $24,850 $27,600 $29,800 $32.000 $34,200 $36,450 $1,608 $1,842 $2,071 $2,300 $2,483 $2,667 $2,850 $3,038 $483 $553 $621 $690 $745 $800 $855 $911 Very Low Income 50% Annual Monthly 30.00% Income Income Monthly $24,150 $27,600 $31,050 $34,500 $37,250 $40,000 $42,800 $45.550 $2,013 $2,300 $2,588 $2,875 $3,104 $3,333 $3,567 $3,796 $604 $690 $776 $863 $931 $1,000 $1,070 $1,139 Hshold Size ONE TWO THREE FOUR FIVE SIX SEVEN EIGHT 60% Annual Monthly 30.00% Income Income Monthly $29,000 $33,100 $37,250 $41,400 $44,700 $48,000 $51,350 $54,650 $2,417 $2,758 $3,104 $3,450 $3,725 $4,000 $4,279 $4,554 $725 $828 $931 $1,035 $1,118 $1,200 $1,284 $1,366 65% Annual Monthly 30.00% Income Income Monthly $31,400 $35,900 $40,350 $44,850 $48,450 $52,050 $55.600 $59,200 $2,617 $2,992 $3,363 $3,738 $4,038 $4,338 $4,633 $4,933 $785 $898 $1,009 $1,121 $1,211 $1,301 $1,390 $1,480 70% Annual Monthly 30.00% Income Income Monthly $33,800 $38,650 $43,450 $48,300 $52,150 $56,050 $59,900 $63,750 $2,817 $3,221 $3,621 $4,025 $4,346 $4,671 $4,992 $5,313 $845 $966 $1.086 $1,208 $1,304 $1,401 $1,498 $1,594 Low Income 80% Annual Monthly 30.00% Income Income Monthly $38,650 $44,150 $49,700 $55.200 $59,600 $64.050 $68,450 $72.850 $3,221 $3,679 $4,142 $4,600 $4,967 $5,338 $5.704 $6,071 $966 $1,104 $1.243 $1.380 $1.490 $1,601 $1,711 $1.821 Hshold Size ONE TWO THREE FOUR FIVE SIX SEVEN EIGHT 100% Annual Monthly 30.00% Income Income Monthly $45,450 $51,900 $58,400 $64.900 $70,100 $75,300 $80,500 $85,650 $3,788 $4,325 $4,867 $5,408 $5,842 $6.275 $6.708 $7,138 $1.136 $1,298 $1,460 $1,623' $1,753 $1,883 $2,013 $2,141 115% Annual Monthly 30.00% Income Income Monthly $52,250 $59,700 $67,150 $74,650 $80,600 $86,600 $92,550 $98,500 $4,354 $4,975 $5,596 $6.221 $6,717 $7,217 $7,713 $8,208 $1,306 $1 .493 $1 ,679 $1,866 $2,015 $2,165 $2,314 $2,463 Moderate Income 120% Annual Monthly 30.00% Income Income Monthly $54,500 $62,300 $70,100 $77,900 $84,100 $90,350 $96,550 $102,800 $4,542 $5,192 $5,842 $6.492 $7,008 $7,529 $8,046 $8,567 $1,363 $1.558 $1.753 $1,948 $2.103 $2,259 $2,414 $2,570 140% Annual Monthly 30.00% Income Income Monthly $63,600 $72,700 $81,750 $90,850 $98,150 $105,400 $112,650 $119,950 $5,300 $6,058 $6.813 $7.571 $8,179 $8,783 $9,388 $9,996 $1,590 $1,818 $2,044 $2,271 $2,454 $2,635 $2,816 $2,999 Note: Income levels 80% and below are adjusted by a HUD high cost area allowance. This general income Information is calculated from the U.S. Department of Housing and Urban Development (HUD) Income figures. Specific program requirements may vary. 1/30/03 9487 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. 13 1/30/03 May 04 2006 3:59PM HP LRSERJET 3330 P-2 9488., - '-•-• "'*c.*X OPERATING AGREEMENT for CRESCENT DEL SOL, LLC A. THIS OPERATING AGREEMENT is entered into as of February 17, 2004 by and between Wayne Blassingame, Carol Blassingame and Tuzo Jerger (sometimes referred to as "Class B Members," or "Participating Members")and each of the other persons whose names are set forth in Schedule A under the heading Class A Members and such persons and any additional persons admitted after the date of this Agreement (sometimes referred to herein as "Class A Members" or "Non-Participating Members"). All the "Members" are sometimes referred to individually as a "Member" and/or collectively as the "Members." B. The Members have formed a limited liability company under the Beverly-Killea Limited Liability Company Act. The Articles of Organization of the Company filed with the California Secretary of State on February 2, 2004 are hereby adopted and approved by the Members. A copy of the Articles are attached hereto as Schedule D. C. The Members enter into this Agreement to form and provide for the governance of the Company and the conduct of its business, and to specify their relative rights and obligations. NOW THEREFORE, the Members agree as follows: ARTICLE I: DEFINITIONS Capitalized terms used in this Agreement have the meanings specified in this Article or elsewhere in this Agreement and when not so defined shall have the meanings set forth in California Corporations Code section 17001. 1.1. "Act" means the Beverly-Killea Limited Liability Company Act (California Corporations Code §§17000-17655), including amendments from time to time. 1.2. "Affiliate" of a Member means (1) any Person directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with the Member. The term "control" (including the terms "controlled by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through membership, ownership of voting securities, by contract, or otherwise. Maa 04 2006 3:59PM HP LRSERJET 3330 P-3 9489 terminated by the provisions of this Agreement or as provided by law. 2.8. The name and address of the Manager, who is also a Member is as follows: Name Address Wayne Blassingame 7237 Sanderling Court, Carlsbad, California 92009 ARTICLE III: CAPITAL AND CAPITAL CONTRIBUTIONS 3.1. The names, addresses, initial Capital Contributions and Class A Interests of the Class A Members are set forth on Schedule A. The names, addresses, and Class B Interests of the Class B Members are set forth on Schedule B. If a Member fails to make the initial Capital Contributions specified in this Section within 30 days after the effective date of this Agreement, that Member's entire Membership Interest shall terminate, and that Member shall indemnify and hold the Company and the other Members harmless from any loss/ cost, or expense, including reasonable attorney fees caused by the failure to make the initial Capital Contribution. 3.2. The Manager may determine from time to time that Capital Contributions in addition to the Members' initial Capital Contributions are needed to enable the Company to conduct its business. On making such a determination, the Manager shall give notice to all Members in writing at least 90 days before the date on which such additional Capital Contribution is due. The Notice shall set forth the amount of additional Capital Contribution needed, the purpose for which it is needed, and the date by which the Members shall contribute. Each Member shall be required to make an additional Capital Contribution in an amount that bears the same proportion to the total additional Capital Contribution that such Member's Capital Account balance bears to the total Capital Account balances of all Members. No Member may voluntarily make any additional Capital Contribution. 3.3. If a Member fails for 30 days to make an additional Capital Contribution required under Section 3.2: (a) The Defaulting Member shall indemnify and hold the Company and the other Members harmless from any loss, cost, or expense, Mas 04 2006 3:59PM HP LRSERJET 3330 p.4 9490 13.12. Time is of the essence of every provision of this Agreement that specifies a time for performance. 13.13. This Agreement is made solely for the benefit of the parties to this Agreement and their respective permitted successors and assigns, and no other person or entity shall have or acquire any right by virtue of this Agreement. IN WITNESS WHEREOF, th4 parties have executed or caused to be executed this Agreement on\the day and year first above written. CLASS B MEMBERS: Wi lassingame, Managing Member 37