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HomeMy WebLinkAboutCT 97-14; Standard Pacific Corporation; 2001-0732177; Affordable Housing Agreement/ReleaseDOC # 2001-0732177 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 OCT 10s 2001 12:10 PM oFF1c1hL RECORDS SIW DIEM MUNTY RECORDER’S OFFICE GREGoRv J* smh ?FFm FEES: , (ABOVE SPACE FOR RECORDER’S USE) AF’FORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY (“Agreement”), entered into this 28th day of September 2001, by and between the CITY OF CARLSBAD, a municipal corporation (“City”), and STANDARD PACIFIC CORP., a Delaware corporation (“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 (“Subject Property”) described in “Attachment A,” which is attached hereto and incorporated herein by this reference. B. Developer wishes to construct 174 residential units (“Development”), included within this is a 28 unit Affordable Multi-Family Units on the Subject Property. The City has approved Carlsbad Tract Map Number CT 97-14, Planned Unit Development Number PUD97- 14, Site Development Plan Number SDP 97-16(A), and Coastal Development Permit No. CDP97-34(A) for the Development of the Subject Property. The City issued these approvals subject to certain Conditions of Approval, including a condition requiring fifteen percent (15%) of the units in the Master Development to be affordable housing as required by the City’s Inclusionary Housing Ordinance, Carlsbad Municipal Code Chapter 21.85 (“CMC Chapter 21.85”). In that regard, this Agreement, as supplemented and amended from time to time, is intended to implement the requirements imposed by CMC Chapter 2 1.85 for these approvals and all future City approvals of tentative maps, planned development permits and site development plans pursuant to the Master Plan. C. Developer has indicated that it intends to meet its inclusionary housing requirement for its development by constructing, or causing to be constructed a 28 Affordable Multi-Family Units.- D. Developer is required by the Conditions of Approval to enter into an Affordable Housing Agreement as required and with the content specified by CMC Chapter 21.85. This Agreement is an Affordable Housing Agreement pursuant to CMC Section 21.85.020(b)(5), and shall be signed prior to the approval of any Final Map for the Subject Property. September 10, 2001 1 NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. Incornoration of Recitals. The Recitals are hereby incorporated in this Agreement. 2. Satisfaction of Affordable Housing Obligation and Conditions of Auproval. In order to satisfy the Conditions of Approval of CT 97-14 and the requirements of CMC Chapter 21.85, Developer shall cause a minimum of twenty-eight (28) affordable multi-family units to be affordable to low income households (the “Affordable Units”), according to the schedule and terms contained herein. 3. Number and Tvpe of Affordable Units. Developer shall construct, or cause to be constructed, twenty-eight (28) multifamily dwelling units (“Affordable Units”). 4. Terms Governing Provision of Affordable Multifamily Units. Provision of the Affordable Multifamily Units shall be governed by the following terms: 4.1 Location of Multifamily Units. The Affordable Multifamily Units shall consist of twenty-eight (28) units to be constructed within the boundaries of the Development. 4.2 Size and Bedroom Count. The Affordable Multifamily Units shall include two and three bedroom units in the numbers and with the approximate square footages indicated in “Attachment B” to this Agreement. 4.3 Affordabilitv Requirements. Affordability Requirements. With the exception of one multi-family unit for the on-site resident manager, which may be rented at market rate, 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. Monthly Rents of the Affordable Units shall not exceed 1/12th of 30% of 80% of the annual median income for San Diego County, adjusted for assumed household size appropriate for the unit. 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 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 and separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. Median income figures shall be those published annually by the United States Department of Housing and Urban Development. Assumed household size figures shall be provided to Developer upon request to the City of Carlsbad Housing and Redevelopment Department. With respect to each Affordable Unit, the affordability requirements of this Section 3.3 shall continue for fifty-five (55) years from the date of issuance of a Certificate of Occupancy by the City for such unit or another comparable unit based upon substitution provisions pursuant to the Regulatory Agreement. The affordability requirements of this Section 4.3 shall be set forth in the Regulatory Agreement between the Developer or its successor and the City, provided for below, which shall supersede this Agreement upon recordation of the Regulatory Agreement. September 10, 2001 2 4.4 Affordable Housing Developer. Developer has indicated that it will contract with Pacific Vista Las Flores, a limited partnership of Wakeland Housing and Development Corporation and San Diego Interfaith Housing Foundation to develop and construct the portion of the Affordable Multifamily Units. The City has relied on that representation in approving this agreement. Developer ,shall obtain prior approval by the City of any other affordable housing developer and shall obtain City approval for the proposed development agreement for these units (the Affordable Housing Development Agreement) prior to execution of said contract with Pacific Vista Las Flores or other affordable housing developer. 4.5 Schedule for Developing Affordable Multifamilv Units. Developer shall provide the Affordable Multifamily Units pursuant to the following schedule: 4.5.1 Prior to the approval of any Final Map for the Master Development, the following shall be in place: the subject property. 4.5.1.1 This Agreement shall be duly signed and recorded against 4.5.1.2 A Site Development Plan shall be approved for the Affordable Multifamily Units. 4.5.2 After the requirements of the above Section 4.51 of this agreement have been met, building permits shall not be issued for more than 51 or 35% of the market rate units prior to the Affordable Units being under construction. For purposes of this Agreement, “under construction” means approval and issuance of the building permits and completion of inspection(s) for the foundation(s) for the initial phase of the Affordable Multifamily Units. 4.5.3 Building permits shall not be issued for more than 102, or 70%, of the total market rate units prior to completion of the construction of the Affordable Multifamily Units. After final inspection is complete by the Building Department and a final Certificate of Occupancy is issued, for the Affordable Units (28 total), building permits may be obtained for the remaining 44 market rate units in the Development, for a total of 146 dwelling units 4.6 Compliance Report. Following completion of construction of the Affordable Multifamily Units, a Compliance Report meeting the requirements of CMC Section 21.85.180, verifying compliance of the completed Affordable Multifamily Units with the terms of this Agreement and certified as correct by a third-party, shall be submitted annually to the Housing and Redevelopment Director. If similar reports on the Affordable Multifamily Units are required for regulatory compliance with other financing programs, those reports may be deemed satisfactory for the purpose of this section by the Housing and Redevelopment Director, with respect to the Affordable Multifamily Units covered by such reports, provided that copies of those reports are provided on an annual basis to the Housing and Redevelopment Director with a third party certification addressed to the City. 4.7 Citv Apnroval of Documents. The following documents, in form and substance acceptable to the City, shall be used in connection with the rental of the Affordable Multifamily Units. Such documents shall be prepared by the Developer or its successor and shall September 10, 2001 3 be submitted to the Housing and Redevelopment Director for review and approval no later than the commencement of construction of the Affordable Multifamily Units: 4.7.1 A marketing plan establishing the process for seeking, selecting and determining the eligibility of tenants of the Affordable Multifamily Units. 4.7.2 A form of Rental Agreement. 4.7.3 A property management plan. 4.7.4 A form of regulatory agreement between the Developer or its successor and the City (“Regulatory Agreement”). 5. Release of Subject Pronertv From Agreement. The covenants and conditions herein contained shall apply to and bind the 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 until terminated in accordance with Section 12 hereof. Until portions of the Subject Property are released from the burdens of this Agreement pursuant to this Section 5, 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 this Agreement, individual purchasers of single-family 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 Multifamily Units, the entire Subject Property, with the exception of 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 Affordable Units for the 55 year duration of this agreement. 6. Default. Failure of Developer to cure any default in Developer’s obligations under the terms of this Agreement within ninety (90) days after the delivery of a notice of default from the City (or where the default is of a nature which cannot be cured within such ninety (90) day period, the failure of Developer to commence to cure such default within the ninety (90) day period or Developer’s failure to proceed diligently to complete the cure of such a default within a reasonable time period) will constitute a breach of this Agreement and the requirements of Carlsbad Municipal Code Chapter 21.85 and the City may exercise any and all remedies available to it with respect to Developer’s failure to satisfy the Conditions of Approval and Chapter 21.85 of the Carlsbad Municipal Code, including, but not limited to, the withholding of building permits for the market rate units within the Master Plan. 7. Appointment of Other Agencies. At its sole discretion, the 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. September 10, 2001 4 8. Hold Harmless. Developer (or its successor) 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 kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to Developer’s actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them, with respect thereto. 9. Insurance Reouirements. Developer (or its successor or successors) shall obtain, at its (or their) expense, comprehensive general liability insurance for development of the Affordable Multifamily Units naming Indemnitees as additional named insureds with aggregate limits of not less than Five Million Dollars ($5,000,000) for bodily injury, and death and property damage, including coverage for contract liability and products and completed operations purchased by Developer (or its successor or successors) 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 City Clerk prior to the issuance of any building permit for the Affordable Multifamily Units. 10. 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 addresses 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: STANDARD PACIFIC CORP. Attn: Brian Utlsler 5750 Fleet Street, Suite 200 Carlsbad, CA 92008 Any party may change its address to which notices are to be sent by notifying the other party of the new address, in the manner set forth above. 11. Integrated 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. 12. Duration of Agreement. This Agreement shall remain in effect for 55 years following the date certificates of occupancy have been issued for all Affordable Units. September 10, 2001 5 13. Recording of Agreement. The parties hereto shall cause this Agreement to be recorded against the Subject Property in the Official Records of the County of San Diego. 14. 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 signed as of the day and year first above written. DEVELOPER: CITY: STANDARD PACIFIC CORP. a Delaware co&$ation CITY OF CARLSBAD, Standard Pacific of San Diego, a Division of Standard City”Manager Pacific Corp., Authorized Representative By: Brian Utsler, Vice President, Standard Pacific of San Diego, a Division of Standard Pacific Corp., Authorized Representative If required by City, proper notarial acknowledgment of execution by co Agreement must be signed by one corporate officer from each of the fol.Io *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. September 10, 2001 State of California . ad Vfts~ 1 ss. County of On Mb 13 a! before me, t%ll. not2wi P bl 4 Ii, Date Name and Title of Officer (e.d “Jane Doe, Notary~ublic”) personally appeared wkaef am4 iGrar+ bd&/ , Name(s) of Signer(s) a personally known to me 0 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 b&&/they executed the same in -b&k&their authorized capacity(ies), and that by -r/their signature(s) on the instrument the person(s), or Place Notary Seal Above the entity upon behalf of which the person(s) acted, executed the instrument. hand and official seal. Signature of Notary Pubk 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 j&dL&e Title or Type of Document: rcl/cllmus xa&hc Document Date: ~&f&v 13. ad Signer(s) Other Than Named Above: q individual ‘$6 Corporate Officer - Title(s): 0 Partner - 0 Limited 0 General q Attorney in Fact 0 Trustee 0 Guardian or Conservator q Other: Signer Is Representing: 0 1999 National Notay Asscuatnn * 9350 De Soto Ave.. P.O. Box 2402 * Chatswonh. CA 91313-2402 - www.nationalnotary.org Prcd No. 5907 Reorder: Call Toll-Free 1-800-8766827 ATTACHMENT “A” (Subject Property) ATTACHMENT “A” LEGAL DESCRIPTION BEING A SUBDIVISION OF A PORTION OF THE LAND DESIGNATED AS “DESCRIPTION NO. 4 76.89 ACRES” AS SHOWN AND DELINEATED ON RECORD OF SURVEY MAP NO. 5715, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, DECEMBER 19, 1960, ALSO BEING A PORTION OF LOT “G” OF THE RANCH0 AGUA HEDIONDA IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY, NOVEMBER 16, 1896. ATTACHMENT “B” (Schedule and Sizes of Affordable Multifamily Units) Site Development Plan SDP97- 16 Unit/Plan Summary NO. OF BEDROOMS APPROX. SQUARE FOOTAGE QUANTITY TWO 850 s.f. 16 THREE 1,080 s.f. 12