HomeMy WebLinkAboutCT 98-14; Standard Pacific Corporation; 2004-1019703; Affordable Housing Agreement/ReleaseDOC # 2004-1 01 9703
WHEN RECORDED MAIL TO:
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OCT 28,2004 8:49 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE GREGURY J. SMITH, COUNTY RECORDER FEES: 0.00
PAGES: 12
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City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON
by and between the CITY OF CARLSBAD, a municipal corporation (herema ter referred to as
the ("City"), and Standard Pacific Corp., a Delaware Corporation, (hereinafter referred to as the
("Developer"), is made with reference to the following:
REAL PROPERTY ("Agreement"), entered into as of the 4k day of + 2003,
A. Developer is the owner of certain real property in the City of Carlsbad, in
the County of San Diego, California (hereinafter referred to as the ("subject property") descried
in Exhibit "A", which is attached hereto and incorporated herein by this reference.
B. Developer wishes to construct 234 residential housing units for sale at
prevailing market prices ("Market Units") and 24 residential housing units for sale at affordable
prices ("Affordable Units") on the subject property. The City has approved Zone Change ZC98-
08, Local Coastal Plan Amendment LCPA 98-04, Carlsbad Tentative Tract Map CT 98-14,
Planned Unit Development 98-05, Condominium Permit CPOO-02, Hillside Development Permit
HDP 98-15, Coastal Development Permit CDP 98-68 and Site Development Plan 99-06 for the
proposed development (Development). The City issued these approvals subject to certain
Conditions of Approval, including a condition requiring the Developer to enter into an
Affordable Housing Agreement in which Developer agrees to provide 24 dwelling units
affordable to lower-income households and to purchase sixteen (1 6) Affordable Housing Credits
within the Villa Loma Apartment project.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Satisfaction of Affordable HousinP Obligation and Conditions of Amroval. In
order to satisfy the Conditions of Approval and requirements of the City's Inclusionary Housing
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Ordinance, Carlsbad Municipal Code Chapter 21.85, Developer shall provide a total of twenty-
four (24) Affordable Units that shall be restricted and affordable to lower-income households. In
addition, the Developer shall purchase sixteen (16) Affordable Housing Credits within the Villa
Loma Apartment project. This Agreement is an Affordable Housing Agreement pursuant to
Section 2 1.85.140 of the Carlsbad Municipal Code. Developer shall submit this Agreement to
City and Agreement shall be executed prior to the approval of the final map for the subject
property.
2. Terms GoverninP Provision of Affordable Units.
2.1. Obligation to Provide Affordable Units.
2.1.1. Developer shall provide the twenty-four (24) Affordable Units in
relation to Market Units ("Market Units") on the Subject Property. The Affordable Multifamily
Units shall include three and four bedroom units in the numbers and with the square footage
indicated in "Attachment B" to this Agreement. The maximum allowable income level of buyers
of the affordable units shall be restricted to a maximum of 80% of the area median income.
2.2 Schedule for Developing Affordable Units.
2.2.1. Prior to the approval of any Final Map for the Development: (i)
this Agreement shall be duly executed and recorded; (ii) the developer of the Affordable Units
shall have received approval of a Site Development Plan for all of the Affordable Multifamily.
2.2.2 Prior to the release of any building permits for the
Development, the Developer shall purchase 16 affordable housing credits in the Villa Lorna
Apartments.
2.2.3 Upon satisfying the applicable conditions stated in Sections 2.2.1
and 2.2.2, building permits can be released for a total of eighty (80) market rate units and
twenty-four (24) Affordable Units.
2.2.4 Once building permits have been released and the foundations for
the twenty-four (24) Affordable Units are complete, inspected and approved, an additional
seventy-nine (79) building permits for market rate housing shall be released at Developer's
request.
2.2.5 Once the final Certificate of Occupancy is issued for the last of the
twenty-four (24) Affordable Units to be constructed, the building permits for the remaining
seventy-nine (79) market rate housing units shall be released at Developer's request.
2.4 Terms for Sale of Affordable Units.
2.4.1. The Schedule of Maximum Eligible Buyer Incomes and
Affordable Subsidized Purchase Prices (the "Schedule") attached hereto and incorporated herein
as Exhibit D sets forth the City's requirements for determining the maximum household income
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of buyers of the Affordable Units ("Eligible Buyers") and the methodology for calculation of the
subsidized purchase prices of Affordable Units which will be affordable to each of the Eligible
Buyers (the "Affordable Purchase Prices"). The Schedule also includes initial estimates of
Eligible Buyer actual incomes and the corresponding Affordable Purchase Prices. The Final
Schedule shall be established prior to sale based on the San Diego County Area Median Income
and the cost factors applicable at the time. The Final Schedule shall be submitted by the
Developer and approved by the City's Housing and Redevelopment Director prior to the
marketing of the Affordable Units.
2.4.2. The Developer shall sell the Affordable Units only to Eligible
buyers whose household incomes have been verified by the Developer. The purchase price for
an Affordable Unit (the "Market Purchase Price") shall be the market price charged for a
comparable unit (and not to exceed fair market value); provided, however, that the Developer
shall carry back financing equal to the difference between the Market Purchase Price and the
Affordable Purchase Price for the particular Eligible Buyer (the "Primary Affordability
Subsidy"). The carryback financing shall be assigned by the Developer to the City, and shall be
evidenced by a promissory note from the Eligible Buyer to the City, secured by a second
mortgage deed of trust on the Affordable Unit (the "City Second Mortgage"). The balance of the
Market Purchase Price shall be paid by the Eligible Buyer to the Developer in cash, utilizing
downpayment monies and first mortgage proceeds.
2.5 Terms for Re-sale of Affordable Units. After the initial sale of the inclusionary for-sale
units at a price affordable to the target income level group, inclusionary for-sale units shall remain
affordable to subsequent low income eligible buyers pursuant to a resale restriction for a minimum
term of fifteen (1 5) years. Beginning sixteen (I 6) years after the initial purchase of an Affordable
Unit, for-sale units may be sold at a market price to other than targeted households provided that the
sale shall result in the recapture by the City or its designee of a financial interest in the units equal to
the amount of subsidy necessary to make the unit affordable to the designated income group and a
proportionate share of any appreciation. Funds recaptured by the City shall be used in assisting other
eligible households with home purchases at affordable prices. To the extent possible, projects using
for-sale units to satisfy inclusionary requirements shall be designed to be compatible with
conventional mortgage financing programs including secondary market requirements.
3. Citv Approval of Documents.
3.1. The following documents, in form and substance acceptable to the City,
shall be used in connection with the sale of Affordable Units. Documents to be prepared by the
Developer shall be submitted to the Housing and Redevelopment director for review and
approval no later than the start of construction of the Affordable Units.
3.1.1. A marketing plan establishing the process for seeking, selecting
and determining the eligibility of buyers of the Affordable Units shall be prepared by the
Developer.
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3.1.2. An educational program informing Affordable Unit purchasers of
the obligations of home ownership and the specific features of this program shall be prepared by
the Developer.
3.1.3. Purchase and Sale Agreements for sale of the Affordable Units
shall be prepared by the Developer.
3.1.4. City Second Mortgage promissory note, deed of trust, and
borrower disclosure form shall be provided by the City.
3.2 Any of the documents identified in this section 3.1 may be revised by
Developer from time to time with the prior written approval of the Housing and Redevelopment
Director.
4. Mortgage Credit Certificate Program. Buyers of the Affordable Units may
qualify for income tax credits pursuant to Mortgage Credit Certificate (MCC) Program, for a
portion of the annual interest paid on a first mortgage used to acquire the Affordable Unit. City
shall cooperate with Developer in obtaining and providing to prospective buyers Mortgage
Credit Certificates from allocations that it may receive.
5. Reporting and Compliance Monitoring. A report verifying compliance with the
requirements of this Agreement covering the initial sales of the Affordable Units shall be
provided to the City by the Developer and approved by the Housing and Redevelopment
Director. Developer shall provide the City with other reports as reasonably required by the City
to verify compliance with this Agreement.
6. Default. Failure of the Developer to cure any default in the Developer's
obligations under the terms of this Agreement within (90) days after the delivery of a notice of
default from the City (or where the default is of the nature which cannot be cured within such
ninety (90) period, the failure of the Developer to commence to cure such default within the
ninety (90) day period or the Developer's failure to proceed diligently to complete the cure of
such a default within a reasonable time period but in no event not greater than 180 days) will
constitute a failure to satisfy the Conditions of Approval with respect to the Subject Property and
the requirements of Chapter 2 1.85 of the Carlsbad Municipal Code and void the approval of the
Final Map and Site Development Plan; and the City may exercise any and all remedies available
to it with respect to the Developer's failure to satisfy the Conditions of Approval, including but
not limited to, the withholding of building permits for the Market Units within the Subject
Property until such cure is completed.
7. Appointment of Other Agencies. At its sole discretion, 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.
8. Release of Subiect Property From Agreement. The covenants and conditions
herein contained shall apply to and bind the Developers and its heirs, executors, administrators,
successors, transferees, and assignees of all the parties having or acquiring any right, title or
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interest in or to any part of Subject Property and shall run with and burden the Subject Property
and shall run with and burden the Subject Property until terminated in accordance with the
provisions hereof. Prior to the issuance of building permits, 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 the Agreement, individual purchasers of 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 Units, the entire
Subject Property, with the exception of the property subject to the approval Site Development
Plan SDP99-06, shall be released from the burdens of this Agreement. The burdens of this
agreement shall remain in full force and effect and recorded against the property subject to the
approval Site Development Plan SDP99-06 for the duration of this agreement.
9. 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 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 performance or non-performance pursuant to this
Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. The
provisions of this section shall survive expiration or other termination of this Agreement or any
release of part or all of the Property from the burdens of this Agreement? and the provisions of
this Section 9 shall remain in full force and effect
10. Insurance Requirements: Developer shall obtain, at its expense, comprehensive
general liability insurance for the development of the Subject Property 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 coverages for contractual liability
and products and completed operations, purchased by Developer or its successors or assigns
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 Housing and Redevelopment
Department prior to the issuance of any building permit for the Subject Property..
11. 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 addressed set forth below:
TO THE CITY OF CARLSBAD
CITY OF CARLSBAD
Housing and Redevelopment Department
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Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-2389
TO THE DEVELOPER:
STANDARD PACIFIC COW.
Attn: &PlW
5750 Fleet Street, Suite 200
San Diego, CA 92008
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.
12.
the parties and no modification hereof shall be binding unless reduced to writing and signed by
the parties hereto.
Integrated Agreement. This Agreement constitutes the entire Agreement between
13. Duration of Agreement. This Agreement shall terminate and become null and
void upon the earlier of: (a) the closing of the sale of the last of the Affordable Units to an
individual purchaser pursuant to a sale on an approved public report in compliance with the
California Subdivided Lands Act, or (b) upon the granting of a written release by the Community
Development Director. This Agreement, and any section, subsection, or covenant contained
herein, may be amended only upon the written consent of Developer and the Community
Development Director.
14. Recording of Agreement. The parties hereto shall cause this Agreement to be
recorded against the Subject Property in the Official Records of he County of San Diego.
15. 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
executed as of the day and year first above written.
DEVELOPERS CITY
City of Carlsbad, a Municipal corporation
By: By:
Standard Pacific Cop,
Authorized Representative
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Community Development Director
REV. 02/05/03
By:
Standard Pacific Corp.,
Authorized Representative
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, Secretary,
President, or
Vice-president
**Group B.
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation
under corporate seal empowering the officer(s) signing to bind the corporation.
attach a resolution certified by the secretary or assistant secretary
APPROVED AS TO FORM:
7 REV. 02/05/03
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California I
beforeme, & Cwbu flob.d ocrbbr.
Name and me of Mficer (dg., ‘Jane Doe, Nhaty Public“)
On
Date ’ .
dpersonally known to me
P:
to be the person(s) whose name@) Ware
subscribed to the within instrument and
acknowledged to me that kkhdthey executed
the same in Wtheir authorized
capaciwes), and that by RisHm/their
signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
U uignature d Notary Public
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: 5 Io3 Number of Pages: f 1
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer’sName: &&Vi W&&C t &h&t
0 Individual
0 Partner - 0 Limited 0 General
0 Attorney-in-Fact
0 Trustee
0 Guardian or Conservator
0 Other:
Signer Is Representing: %vuked
ICI+ACler c
ig Corporate Officer - Title(+ hkrrt+j R%tw +rr+;vc
0 1999 National Notaty Association 9350 De Soto Am.. P.0. Box 2402 Chatswrth, CA 91313-2402 * www.nationalnotaty.org Prod. No. 5907 Reorder: Call Toll-Free 14004766827
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
THAT PORTION OF THE WEST HALF OF THE NORTHEAST QUARTER OF THE
NORTHEAST QUARTER OF SECTION 28, TOWNSHIP 12 SOUTH, RANGE 4 WEST, SAN
BERNARDINO MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, AND
ON FEBRUARY 5,2002.
FURTHER DELINEATED AS PARCEL 14 OF CARLSBAD TRACT CT 98-14, APPROVED
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ATTACHMENT B
Plan
LOCATION, SIZE, AND BEDROOM COUNT
OF AFFORDABLE UNITS
Units/ Living Garage
BedlBath Building Bldg AreaSF Deck SF
1
2
3
2/12 2 1,2,3&4 1133 146 21 5
4/13 2 1, 2, 3&4 1500 N/A 41 0
4/13 2 1, 2, 3&4 1859 N/A 403
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ATTACHMENT C
BUILDING PERMIT PHASING PLAN
% of Total
Permits for
Project
3 I%
and
9%
Action Requiredl
Phasing
Comments
Final maps allowed for a
total of 262 units. A total of
104-building permits could
be issued at this point in
time; 40% of total permits
Receive Approval of an SDP for
the affordable housing project,
execute and record the
Affordable Housing Agreement
approved by the Housing and
Redevelopment Director,
purchase 16 affordable housing
credits.
30%
30%
All building permits issued and
foundations complete, inspected
and approved for all 24
affordable condominium units.
At this point, 159 market
rate units (67% of the
market rate units) could be
under, or begin
construction.
At this point, all 238 market
rate units could be under, or
Final Certificate of Occupancy
issued for all 24affordable
100%
condominium units.
Allows for a total of 238
market rate and 24
affordable units.
TOTAL
# of Building
Permits & Type
Released
80
market rate
building permits.
24
affordable
condominium
units
79
market rate
building permits
79
market rate
building permits
262 Units
10
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