Loading...
HomeMy WebLinkAboutMS 01-07; Kellett, Cyril & Joanne; 2007-0328039; Affordable Housing Agreement/ReleaseDQC# 2007-0328039 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 MAY 14, 2007 4'59 PM OFFICIAL RECORDS SAN DIEGO COUNT ,' RECORDER'S OFFICE GREGORY,I SMITH COUNT, RECORDER FEES 000 PAGES 9 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this ff^day of _,2007, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred touas "City"), and CYRIL AND JOANNE KELLETT, (hereinafter referred to as "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 has paid Housing In-Lieu Fees of $18,060 to satisfy the Inclusionary Housing Ordinance requirement on a four (4) lot minor subdivision (Project). B Developer had the option of paying an Inclusionary Housing In-Lieu Fee or constructing a Second Dwelling Unit as a means of satisfying the Developer's affordable housing obligation ("Affordable Housing Obligation"), as such is defined under Chapter 21 85 of the Carlsbad Municipal Code Developer agreed to pay the Housing In-Lieu Fee prior to obtaining a building permit for construction of any residential units in the Project, with the understanding that the Housing In-Lieu Fee would be refunded if a Second Dwelling Unit was constructed on one (1) lot ("Affordable Housing Lot") The Affordable Housing Lot which is subject to this Agreement is APN 167-053-21, 3455 Ridgecrest Drive in the City of Carlsbad, County of San Diego, State of California . C Developer has now constructed a Second Dwelling Unit to satisfy requirements of the Inclusionary Housing Ordinance for the Project on the property described above and more fully in the Legal Description of subject property attached as "Attachment A" The Affordable Housing Lot shall be subject to this Agreement and this Agreement shall be recorded on the 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. AB 18,986 Reso 2007-104 SATISFACTION OF AFFORDABLE HOUSING REQUIREMENTS MAY BE MET THROUGH CONSTRUCTION OF A SECOND DWELLING UNIT IF APPROVED BY THE CITY COUNCIL. L- Performance under this Agreement satisfies the Developer's obligation for affordable housing under Chapter 21 85 of the Carlsbad Municipal Code as applied to the land described in Exhibit A Housing In-Lieu Fees previously paid to satisfy the Developer's obligation shall be refunded after satisfying requirements in Section 3 of this agreement to the satisfaction of the City's Housing and Redevelopment Director 3. SECOND DWELLING UNITS. (a) Construction of Second Dwelling Unit Developer has constructed a Second Dwelling Unit on the Affordable Housing Lot 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 the Second Dwelling Unit, subject to this Agreement, which becomes rented or leased shall not exceed an amount of thirty percent (30%) of 1/12th 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 for 2006 is attached to this Agreement as "Attachment B" (c) Restriction on Tenant Income The Affordable Unit 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 the Affordable Housing Lot upon which the 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 Redevelopment 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 Redevelopment Director for maintenance in the City's files, and retain a copy for its own files in the event proof becomes necessary Developer shall sign an affidavit or declaration to meet requirements of this agreement if the Affordable Housing Lot is not sold and Developer intends to occupy the single family residence on the Affordable Housing Lot (e) Deed Restriction Prior to the sale of the affordable housing lot, and prior to Developer obtaining a refund of Housing In-Lieu Fees, the Developer shall provide proof to the City Housing and Redevelopment Director that the language contained in "Attachment C", Deed Restriction, has been included on the Affordable Housing Lot deed 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 Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of a final building inspection for any single family residence in the Project 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 "Indemmtees"), 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 pertaining in any manner to Developers' actions or defaults pursuant to this Agreement, and shall protect and defend Indemmtees, and any of them with respect thereto 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: Cyril and Joanne Kellett 3455 Ridgecrest Drive Carlsbad, 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 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 Lot 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 • Cyril and Joanne Kellett CITY City of Carlsbad, a Municipal corporation By. By Cyril Kellett Owner Jcxarine Kellett Owner •fl By Sandra L Holder Community Development Director Proper notarial acknowledgment of execution by Developer 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 Attorney By. Mobaldi, Assistant City Attorney Acknowledgment STATE OF CALIFORNIA } }SS. COUNTY OF SAN DIEGO } On March 27, 2007, before me, Michael P McCarthy, a Notary Public for the State of California, personally appeared Cyril F. Kellett and Jo Anne D. Kellett, known to me or proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed in the Low Income Housing Agreement with the City of Carlsbad instrument, and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons or the entity upon behalf of which the persons acted, executed the instrument. Witness my hand and seal on the above date. Michael P. McCarthy /iTcHAELp."MCCARTHY" i COMM #1521906 z Notary Public - California § San Diego County -» My^Comm Expires OctJ?4,2Q08f ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY LOT 25 IF SEACREST ESTATES UNIT NO. 1, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 3906, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 10, 1958. EXCEPTING THEREFROM THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHWESTERLY CORNER OF SAID LOT 25, THENCE ALONG THE NORTHERLY LINE THEREOF SOUTH 80°I8'00" EAST 500 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 8°36'20" EAST 62.70 FEET; THENCE SOUTH 64°03'50" WEST 85.75 FEET TO A POINT IN THE WESTERLY LINE OF SAID LOT 25; THENCE ALONG SAID WESTERLY LINE NORTH 9°42'00" EAST 109.49 FEET TO THE POINT OF BEGINNING. ATTACHMENT B SAMPLE OF MAXIMUM MONTHLY RENTAL AMOUNTS 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 Projected rental rates should be based on the following household sizes Studio = 1 person 1 bedroom = 15 persons 2 bedrooms = 3 persons 3 bedrooms = 5 persons 4 bedrooms = 7 persons 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 21.85 070 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. 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. Pnor 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.