HomeMy WebLinkAboutCT 14-06; Presidio Pebble Creek Carlsbad 8 LLC; 2017-0139985; Affordable Housing Agreement/Release•
'.
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
DOC# 2017-0139985
1111111111111111111111111111111111111111111111111111111111111111111111
Mar 29, 2017 08:31 AM
OFFICIAL RECORDS
Ernest .J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $42.00
PAGES: 10
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
(Second Dwelling Units)
THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this
~±h_ day of :fa.nua~ , 2017, by and between the CITY OF CARLSBAD, a
municipal corporation ("City"), and Presidio Pebble Creek Carlsbad 8, LLC, a Delaware Limited
Liability Company ("Developer"), 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 "Exhibit A", which is attached hereto and incorporated
herein by this reference, and which is the subject of a Tentative Map CT 14-06, which provides
conditional approval of the construction of eight (8) single family dwelling units ("Project").
B. Condition No. 19 of Planning Commission Resolution No. 7122 states that this
Affordable Housing Agreement shall be entered into between the City and the Developer as a
means of satisfying the Developer's affordable housing obligation, as such is defined under
Chapter 21.85 of the Carlsbad Municipal Code ("Affordable Housing Obligation"). Planning
Commission Resolution No. 7122 provides that the affordable housing obligation will be
satisfied by applying the requirements set forth in this Agreement for construction of second
dwelling units on affordable housing lots ("Affordable Housing Lots"). The Affordable Housing
Lots which are subject to this Agreement are:
Lot 7 of Carlsbad Tract No, 14-06 in the City of Carlsbad, County of San Diego,
State of California, according to Map No. 1 (, l ]] filed with the County
Recorder of San Diego County on lV\.av-c.b 9 1 20 t ] .
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 the title for each
Affordable Housing Lot.
NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the
mutual covenants contained herein, the parties agree as follows:
CA 05/27/2016
1. The Recitals Are True And Correct.
2. THE AFFORDABLE HOUSING OBLIGATION SHALL BE SATISFIED
BY CONSTRUCTION OF SECOND DWELLING UNITS.
Performance under this Agreement satisfies the Developers' obligation for affordable
housing under Chapter 21.85 ofthe Carlsbad Municipal Code as applied to the land in Tentative
Map CT 14-06., by Condition No. 19 in Planning Commission Resolution No. 7122 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 21.85.070.
(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 1112th 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
2011 is attached to this Agreement as Exhibit "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 Housing and Neighborhood
Services 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 Housing and Neighborhood
Services 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 Housing and Neighborhood Services 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.
2 CA 05/27/2016
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. 19 of Planning Commission Resolution No. 7122. 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. 14-06.
5. 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 attorneys' fees and expenses) sustained or incurred because of or by reason of
any and all claims, demands, suits, and/or actions, allegedly caused by, arising out of or
pertaining in any manner to Developer's actions or defaults pursuant to this Agreement, and
Developer shall protect and defend Indemnitees, and any of them with respect thereto. This
provision shall survive the term of this Agreement.
6. INSURANCE
Developer shall obtain, at its expense, commercial 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-:VII, such insurance to be
evidenced by an endorsement which so provides and deliver to the City Clerk prior to the
issuance of any building permit for the Project.
7. 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:
TO THE DEVELOPERS:
City of Carlsbad
Housing & Neighborhood Services Department
Attn: Housing & Neighborhood Services Director
1200 Carlsbad Village Drive
Carlsbad, California 92008
Presidio Pebble Creek Carlsbad 8, LLC
C/0 Pebble Creek Companies
301 W. 281h Street, Suite A
National City, Ca. 91950
Attn: Gary Arnold
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.
3 CA 05/27/2016
8. 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.
9. 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.
10. SUCCESSORS
This Agreement shall benefit and bind Developers and any successive owners of
Affordable Housing Lots.
11. 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
Presidio Pebble Creek Carlsbad 8, LLC,
A Delaware Limited Liability Company
By: Pebble Creek Companies, a California
corporation,
its Operating Manager
By ~~ C-12J
Name: Gary AiJtt
Its: H.A~~Ji.(L.
By:
Name: ________________________ __
Title: Dated:-~ 1-~~=-JJ'-'-J'----
t '
4
CITY OF CARLSBAD
By: ~~~~~~~~~~~~~-J
Debbie Fountain,
Housing & Neighborhood Services
Director
Dated: 1/sb?
~·
CA 05/27/2016
(Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant
treasurer must sign for corporations. Otherwise, the corporation must attach a resolution
certified by the secretary or assistant secretary under corporate seal empowering the office(s)
signing to bind the corporation.)
(If signed by an individual partner, the partnership must attach a statement of partnership
authorizing the partner to execute this instrument.)
(Proper notarial acknowledgment of execution by Developer must be attached.)
APPROVED AS TO FORM:
Celia A. Brewer, City A(l~
By: ~ ~-;.----
Ron Kemp, Assistant City Attorney
Dated:~'-----
5 CA 05/27/2016
EXHffiiT A
LEGAL DESCRIPTION OF PROPERTY
APN: 167-531-45-00 and 167-250-06-00
Real property in the City of carlsbad, County of San Diego, State of california, described as
follows:
THOSE PORTIONS OF LOTS 1 THRU 4 OF CARLSBAD TRACT NO. 83-20 ACCORDING TO MAP THEREOF
NO. 11578 TOGETHER WITH LOT 6 A PORTION OF LOT 5 AND A PORTION OF THE NORTHWEST
QUARTER OF THE SOUTHWEST QUARTER OF SECTION 32, TOWNSHIP 11 SOUTH, RANGE 4 WEST, SAN
BERNARDINO MERIDIAN ALL IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT THE MOST NORTHERLY CORNER OF SAID LOT 1; THENCE SOUTHEASTERLY ALONG THE
NORTHEASTERLY BOUNDARY THEREOF SOUTH 49° 12' 54" EAST 91.33 FEET; THENCE LEAVING SAID
BOUNDARY SOUTH 40° 15' 51" WEST 106.47 FEET; THENCE SOUTH 28° 40' 29" WEST 109.48 FEET; TO
THE SOUTHERLY BOUNDARY OF SAID LOT 2; THENCE NORTH 70° 19' 19" WEST 26.29 FEET TO A
182.00 FOOT RADIUS CURVE CONCAVE NORTHERLY; THENCE WESTERLY ALONG THE ARC OF SAID
CURVE 59.85 FEET THROUGH A CENTRAL ANGLE OF 18° SO' 35" TO THE MOST WESTERLY CORNER OF
SAID LOT 2; THENCE NON-TANGENT TO SAID CURVE SOUTH 32° 56' 14" WEST 20.20 FEET TO THE
MOST NORTHERLY CORNER OF SAID LOT 3 SAID CORNER BEING ALSO A POINT ON A NON-TANGENT
222.00 FOOT RADIUS CURVE CONCAVE NORTHERLY A RADIAL LINE TO SAID CURVE BEARS SOUTH 37°
30' 45" WEST; THENCE EASTERLY ALONG THE ARC OF SAID CURVE BEING ALSO THE NORTHERLY
BOUNDARY OF SAID LOT 3 69.10 FEET THROUGH A CENTRAL ANGLE OF 17° 50' 04"; THENCE SOUTH
70° 19' 19" EAST 26.29 FEET; THENCE LEAVING SAID NORTHERLY BOUNDARY SOUTH 24° 47' 54" WEST
256.35 FEET TO AN ANGLE POINT IN THE SOUTHERLY BOUNDARY OF SAID LOT 4; THENCE ALONG
SAID SOUTHERLY BOUNDARY SOUTH 42° 43' 19" WEST 41.12 FEET; THENCE NORTH 81° 58' 29" WEST
136.19 FEET TO THE MOST WESTERLY CORNER OF SAID LOT 4; THENCE ALONG THE NORTHWESTERLY
BOUNDARY THEREOF NORTH 32° 56' 14" EAST 22.29 FEET TO THE SOUTHERLY CORNER OF SAID LOT
6; THENCE ALONG THE WESTERLY BOUNDARY THEREOF NORTH 1 o 11' 15" EAST 604.98 FEET TO THE
SOUTHEAST CORNER OF THE SAID NORTHWEST QUARTER OF THE SOUTHWEST QUARTER; THENCE
ALONG THE SOUTHERLY LINE THEREOF NORTH 88° 39' 12" WEST 332.19 FEET TO THE EASTERLY LINE
OF THE WESTERLY 15 CHAINS OF SAID NORTHWEST QUARTER OF THE SOUTHWEST QUARTER;
THENCE ALONG SAID EASTERLY LINE NORTH 1° 32' 57" EAST 100.00 FEET TO THE NORTHERLY LINE
OF THE SOUTHERLY 100.00 FEET OF SAID NORTHWEST QUARTER OF THE SOUTHWEST QUARTER;
THENCE ALONG SAID NORTHERLY LINE SOUTH 88° 39' 12" EAST 767.06 FEET TO THE SOUTHEASTERLY
BOUNDARY OF SAID LOT S; THENCE ALONG SAID SOUTHE ~.STERLY BOUNDARY AND THl:
SOUTHWESTERLY PROLO;'~GATION THEREOf: SOUTH 32° 56' 14" WEST 232.10 FEET TO THE POINT OF
BEGINNING. EXCEPT THAT PORTION GRANTED TO THE CITY OF CARLSBAD DESCRIBED AS EXHIBIT "A"
ON THE DEED RECORDED SEPTEMBER 23, 1986 AS INSTRUMENT NO. 86-420850, OF OFFICIAL
RECORDS.
6 CA 05/27/2016
EXHIBITB
MAXIMUM MONTHLY RENTAL AMOUNT
The following rental rate schedule is based on 2015 income levels. Rents may increase according
to any increase in income levels, as set forth by the US Department of Housing and Urban
Development from year to year. At the time the owner begins to rent the second dwelling unit,
the owner should contact the city to determine the current approved rental rates for second
dwelling units according to household size for unit size.
.. ' HH SIZE BEDROOM(S) MAX. GROSS HH MAX. MONTHLY MAX. RENT
INCOME INCOME
I Studio $39,700 $3,308 $992.50
1.5 I bedroom $3,545 $1,63.75
2 I bedroom $45,400 $3,783 $1,135.00
Maximum rent is equal to 30% of the maximum monthly income for the selected household size
at 70% of the Area Median Income for San Diego County, as set forth by the US Department of
Housing and Urban Development. An allowance for any tenant paid utilities, equipment rentals,
and/or charges such as parking must be subtracted from the maximum rent to derive the
maximum allowable rent that may be charged by the owner.
The assumed household size for a studio unit is I person. The assumed household size for a I
bedroom is 1.5 persons for determining the maximum rental rate. To determine eligibility, the
household income for a I or 2 person household is appropriate as set forth above.
A utility allowance shall be subtracted from the maximum rent above to reflect the permitted rent
for the second dwelling unit, for those utilities or other charges paid by the tenant directly. Below
is a chart indicating the current utility allowances. The owner should check with the Housing
Department for the City of Carlsbad at the time of rental to determine the current allowances at
that time, and required reductions in the rent amount.
·-··---------· HH Size Gas/Electric, Trash Stove Refrigerator Parking&
Sewer, Water Other Charges
] $69.00 $19.00 $10.00 $10.00 Actual
2 $69.00 $19.00 $10.00 $10.00 Actual
7 CA 05/27/2016
EXHIBITC
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 21.85.070
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 ("Affordable Units"). L\te AffQLdabl!! Units shll.U be=a~aila.hh:_m households with
incomes not exceeding 70% of the median income for San Diego Countv. 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 Housing and Neighborhood Services Director, to the Housing and
Neighborhood Services Department, which acknowledges that the purchaser has read and
understand the restrictions as they relate to the Second Dwelling Unit.
8 CA 05/27/2016
ACTION BY UNANIMOUS WRITTEN CONSENT
OF
-Authority to Act
THE MANAGEMENT COMMITTEE
OF
PRESIDIO PEBBLE CREEK CARLSBAD 8, LLC
THE UNDERSIGNED, being the Management Committee of Presidio Pebble
Creek Carlsbad 8, LLC, a Delaware limited liability company (the "Company"), acting
pursuant to the provisions of the Amended and Restated Limited Liability Company
Agreement of the Company dated April 12, 2016 (the "Operating Agreement"), hereby
adopts the following actions by written consent:
WHEREAS, pursuant to Section 5.3 and Section 5.4.28 of the Operating
Agreement, the Management Committee of the Company has the right to approve all
Major Decisions concerning the business and affairs of the Company, including any other
matter or performing any other act which requires the approval of the Management
Committee;
WHEREAS, the Management Committee believes it to be in the best interests of
the Company to authorize the Operating Manager to sign documents, instruments,
statements or similar items required in connection with entitlements of Company
property, Company's sale or potential sale of individual single family homes or lots on
behalf of the Company or other actions authorized by the documents set forth below;
provided, however the authorization granted hereunder shall be limited to executing such
documentation as is consisteut with the current approved Business Plan of the Company.
NOW THEREFORE BE IT RESOLVED, that Pebble Creek Companies, a
California corporation ("PCC"), as Operating Manager of the Company, is hereby
authorized by the Management Committee to sign and execute documents of the
Company in furtherance of the current approved Business Plan as may be applicable to
the entitlement process, the sale of single family homes and/or individual lots owned by
the Company, or other Business Plan approved actions as specifically set forth below:
I) Affordable Housing Agreement;
2) Notice of Restriction;
3) Notice that Property may be subject to Noise Impacts;
4) Geologic Failure Hold Hannless Agreement;
5) Drainage Hold Harmless Agreement;
6) Panhandle Lot Hold Harmless Agreement;
7) Permanent Stormwater Quality Best Management Practice Maintenance
Agreement;
8) Encroachment Agreement;
9) Written Consent for Annexation into Existing City of Carlsbad Street
Lighting and Landscape District No. 1;
1 0) Street Tree Maintenance Agreement;
11) Grant Deed;
12) Notice of Completion;
13) Disclosures;
14) Settlement Statements;
15) Lenders forn1s and certifications;
16) Declarations of Covenants, Conditions and Restrictions;
17) Supplemental Declarations of Annexation of Covenants, Conditions and
Restrictions;
18) Easements;
19) Utility Agreements;
20) Joint Use and Maintenance Agreements;
21) Lot Line Adjustment Applications and Grant Deeds;
22) Subdivision Maps;
23) Parcel Maps;
24) Conditions of Approval;
25) BRE Public Subdivision Report Documents and/or Amendments;
26) Subdivision Improvement Agreements;
27) Reimbursement Agreements;
28) Grading Plans;
29) Improvement Plans;
30) Final Map/Plan Documents; and
31) Any document required to satisfy the Conditions of Approval and to
obtain the Final Map and Construction Plans Approvals
RESOLVED, FURTHER, that the execution and delivery of any instrument set
forth above, or any amendment thereto, by PCC is hereby ratified and approved by the
Company.
TN WITNESS WHEREOF, the undersigned has executed this Action by
Unanimous Written Consent effective as of September I, 2016.
MANAGEMENT COMMITTEE:
2