HomeMy WebLinkAbout1984-12-18; City Council; Resolution 78534
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RESOLUTION NO. 7853
OF THE CITY COUNCIL OF THE CITY
CALIFORNIA, APPROVING A DEVELOPER
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND RODNEY
F. STO~E AND GEORGE A. FERMANIAN.
I
WHEREAS, the City of Carlsbad, California, does hereby
I
resolve as fol&ws:
1. That certain developer agreement between the City of
Carlsbad and Rodney F. Stone and George A. Fermanian, a copy of
which is attcheld hereto, marked Exhibit 1, and incorporated herein
by reference, i? hereby approved.
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2. The Mbyor of the City of Carlsbad is hereby authorized
said agreement for and on behalf of the and directed to/ execute
City of CarlsbaL.
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PASSED, A~PROVED ND ADOPTED at a regular meeting of the
City Council of^ the City of Carlsbad held the 18th day of
December, 1984,i by the following vote, to wit:
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AYES:
NOES: Noqe
ABSENT: IWne
Comcil Menkers Casler, Iewis, Kulchin, Chick and Pettine
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MARY H. LASLER, Mayor
(Seal) I
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a
DEVELOPER AGREEMENT
among
:ITY OF CARLSBAD, CALIFORNIA
and
RODNEY F. STONE
and
GEORGE A. FERMANIAN
lated as of December 1, 1984
3
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Section 7
Section 8
Section 9
Section 10
Multiple
~ TABLE OF CONTENTS
Counterparts .....
Assignment. ..........
Page
.1
-4
.5
-6
.6
.6
.6 .7 -7 .7
THIS DEVELOP R AGREEMENT (the "Agreement") is made and
entered into as o December 1, 1984, by and among the CITY OF
CARLSBAD, a munic'pal corporation of the State of California 1 (together with successor to its rights, duties and obligations, and RODNEY F. STONE and GEORGE A. FERMANIAN the "Owner").
WHEREAS, theiCity is authorized by Chapter 7, Part 5 of Division 31 (comm ncing with Section 52075) of the Health and Safety Code, as a ended (herein called the "Act") to issue revenue bonds for the purpose of financing the development of multifamily renta
WHEREAS, Secdion 103 (b) (4) (A) of the Internal Revenue Code of 1954, as amend d (the "Code"), provides that the interest on obligations issue by or on behalf of a state or political subdivision there f substantially all of the proceeds of which are to be used to provide projects for residential rental property shall be exempt from federal income taxation if, among other requirement and with certain exceptions, at least twenty
by individuals ofllow or moderate income within the meaning of and €or the period required by Section 103(b)(12)(C) of the Code;
I
percent (20%) of z he units in each project are to be occupied
WHEREAS, the City has determined to assist in financing a
multifamily renta I housing development for the Owner by
providing funds t4 make a mortgage loan to the Owner to finance
the construction Tf a 320-unit multifamily rental housing
development (the Project"), provided that certain conditions
with respect to t e occupancy of the Project are satisfied; and
WHEREAS, thelparties hereto desire to enter into this Agreement in ordek to set forth the terms of occupancy for the units in the Projkct to be set aside for persons of low and moderate income; I
NOW, of the mutual covenants and undertakings forth herein, and other good and valuable consideration, th and sufficiency of which hereby are
acknowledged, the the Owner hereby agree as follows:
Section 8. Definitions and Interpretation. The
following-pall have the respective meanings assigned to
them in this Section 1 unless the context in which they are
used clearly requires otherwise:
"Act" -
and Safety Code o
"Adjustel (together with th of 18 who intend
unit) as calculat Section 1.167(k)-
"Af f orda exceed 30 percent income at which a a "lower income" of the leased hou the United States the following app residential units percentage of med income":
Resident
One bedr
Two bedr
"Area" -
Statistical Area.
"Bond Co
counsel to the Ci
the Project.
"Low and Project designate
Lower-In
which when combin
persons over the
does not exceed 8
In no event will
Lower-Income Tena
defined in Sectio
entitled to file
"Median
the Area as most
Housing and Urbar Housing Act of 15 are terminated, n method used by tk
1981p/2062-10
hapter 7, Part 5 of Division 31 of the Health
the State of California.
Income" - The adjusted income of a person
adjusted income of all persons over the age
o reside with such person in one residential
d in the manner prescribed in Regulation
(b) (3) -
#le Rent" - A monthly rent which does not
of one-twelfth of the maximum adjusted annual
household of appropriate size is deemed to be
amily in the County of San Diego for purposes
ing program established under Section 8 of
Housing Act of 1937, as amended, based upon
,opriate household sizes for various types of
in the Project and assuming 80 percent as the an gross income which qualifies as "lower
a1 Unit No. of Persons in Family
lom 2
)oms 4
The San Diego, California Metropolitan
insel" - Stradling, Yocca, Carlson & Rauth, :y with respect to the issuance of bonds for
Moderate Units" - The dwelling units in the
1 for occupancy by Lower-Income Tenants.
:ome Tenant" - A person whose Adjusted Income,
td with the Adjusted Income of all other
tge of 18 years residing in the same unit,
1 percent of the Median Income for the Area.
:he occupants of a unit be considered to be
its if all of such occupants are students (as ~151(e)(4) of the Code), no one of whom is
t joint return under Section 6013 of the Code.
Income for the Area" - The median income for :ecently determined by the Secretary of
Project under Section 8 of the United States 37, as amended, or if programs under Section 8
sdian income for the Area determined under the
s Secretary prior to such termination.
-2-
beginning on
10 percent of
occupied or (ii)
on the later
the first day on which of the dwelling units in the Project are first (b) the date which is a qualified number of
on which any of the dwelling units in the or (c) the date on which any
to the Project under Section 8 of 1937 terminates. For "qualified number of days" 50 percent of the number of
with the longest maturity.
to time promulgated
Treasury pursuant
"Regulatory
or proposed by the Department of the to the Code.
Agreement" - The Regulatory Agreement and
and recitals of this of reference
by reference to this Section 1 notwiths contrary definition in the
preamble or recita The titles and headings of the
sections of this been inserted for convenience
of reference to be considered a part hereof and shall not
provisions hereof any effect in
construing this Ag hereof or in
ascertaining inten shall arise.
and interpretation
or restrict any of the terms or
I 1981~/2062-10 -3-
7
Section 2. Residential Rental Property. The Owner
hereby acknowledges and agrees that the Project is to be owned,
managed and operated as a project for "residential rental
property" (within/ the meaning of Section 103(b) (4) (A) of the
Code) for a term qual to the longer of (i) the term of the
Bonds or (ii) thergualified Project Period determined with respect to the Project. To that end, the Owner hereby
represents, covenbnts, warrants and agrees as follows:
(a) TheiProject will be constructed for the purpose
of providing a residential rental project, and the Owner shall own, manage and operate the Project as a project to provide multifamily resid ntial rental property comprised of a building or structure or srveral interrelated buildings or structures,
each consisting of more than one dwelling unit, together with
any functionally related and subordinate facilities, and no
other facilities,iin accordance with Section 103(b)(4)(A) of
the Code and Sectjon 1.103-8(b) of the Regulations, and the
Act, and in accordance with such requirements as may be imposed
thereby on the Prbject from time to time.
(b) Alllof the dwelling units in the Project will be similarly construFted units, and each dwelling unit in the
separate and distinct facilities
cooking and sanitation for a single including a sleeping area, bathing
and food preparation facilities refrigerator and sink.
(c) Nonk of the dwelling units in the Project will at
any time be utili ed on a transient basis, or will ever be used
as a hotel, motel, 1 dormitory, fraternity house, sorority house,
trailer court rooming house, sing home, hospital, sanitarium, rest home or
(d) No bart of the Project will at any time be owned or used as a coopbrative housing corporation, or a community
apartment project1 or a stock cooperative. Other than obtaining a condominium on the Project, and obtaining a white report
from the Department of Real Estate, the Owner shall
in connection with a conversion of the
ownership, except with the prior
of Bond Counsel that the interest on
taxable thereby. The final for the Project shall state the
the ownership of the Project to
the term of the Regulatory Agreement.
(e) All of the dwelling units in the Project will be available for rental on a continuous basis to members of the general public arid the Owner shall not discriminate on the
1981p/2062-10 ~ - 4-
color, sex, age or national origin in the
lease, use or of the Project or in connection with
basis of race,
the employment for employment of persons for the
operation and Project; at least 20 percent of the dwelling units in the Project will be leased or rented, or available for lea e or rental, to Lower-Income Tenants on a continuous basis; at least half of the units to be so leased or rented to Lower-I come Tenants will be available for occupancy on a priority bas's by Very Low Income Tenants in accordance with Section 3(c) below; and the Owner will not give preference to any particular class or group in renting the dwelling units in the Project, e i cept to the extent that dwelling units are
required to be le sed or rented to Lower-Income Tenants or to
be available for ccupancy on a priority basis by Very Low Income Tenants.
(f) The Low and Moderate Units will be intermingled units in the Project and will be of a quality, and offe a range of sizes and number of bedrooms,
comparable to the other units in the Project. Tenants in the
Low and Moderate nits will have equal access and enjoyment to
with all other dw,lling e
all common facilidies of the Project.
temporary period,
be redetermined.
exceed 31 days.
(9) The /Owner will accept as tenants, on the same
basis as all othe prospective tenants, lower-income persons
payments for exis ing housing pursuant to Section 8 of the
United States Hou ing Act of 1937 or a successor federal program, or who a e recipients of other income subsidies; and, in connection the Owner will not apply tenant selection lower-income persons which are more applied to any other prospective
who are holders o 1 certificates for federal housing assistance t
tenants.
at which time the character of the unit shall
In no event shall such temporary period
1981p/2 062 - 10 ~
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(b) The Owner will verify a household's income as required by the t d rms of the Regulatory Agreement to be
prepared by the City's Bond Counsel either by obtaining (i) a
copy of a Lower-Income Tenant's federal income tax return for
the tax year immediately prior to the commencement of such
Lower-Income Tena t's occupancy, (ii) an employer's
verification of s ch Lower-Income Tenant's current income, or,
(iii) if the Lowen-Income Tenant is unemployed or if the tax
return is unavailable, other satisfactory evidence of income
for such year.
3
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will be available shall mail notice for occupancy and the rent for such unit, and
to at least 5 persons on the list per unit
(d) TheiOwner will maintain complete and accurate
records pertaining to the Low and Moderate Units, and will
permit any duly authorized representative of the City, the Trustee or the Department of the Treasury or the Internal
1981p/2062-10 : - 6-
Revenue Service t inspect the books and records of the Owner
pertaining to the incomes of Lower-Income Tenants residing in
Regulatory Agreement. Bond Counsel
the Project.
shall inc'elthe provisions of this Agreement into the
Regulatory Agreement to be executed by the Owner with respect to the Project.
Section 4. Governing Law. This Agreement shall be
governed by the laws of the State of California and the
obligations, righjs and remedies of the parties hereunder shall
be determined in qccordance with such laws.
I Section €$. Amendments. This Agreement shall be
amended only by alwritten instrument executed by the parties
hereto or their s ccessors and assigns. -q
Section +. Notice. Any notice or certificate
required to be giyen hereunder shall be given by certified or
registered mail, prepaid, return receipt requested, at
the addresses spe below, or at such other addresses as
may be specified by the parties hereto:
City: ~
Owner: 1
City of Carlsbad 1200 Elm Avenue
Carlsbad, California 92008
Attn: Director of Building and Planning
Rodney F. Stone
George A. Fermanian
11300 Sorrento Valley Road San Diego, California 92121
Notice shall be deemed given three (3) business days after
the date of
Section 8. Severability. If any provision of this
Aqreement shall b4 invalid, illegal or unenforceable, the validity, legalitt and enforceability of the remaining portions hereof shall not Tn any way be affected or impair.ed thereby.
Multiple Counterparts. This Agreement
executed in multiple counterparts, all of which shall constitute one and the same instrument, and each of which shall be deemed , to be an original.
Section 10. Assignment. The Owner may not assign
its interests her under, other than to a partnership in which
Rodney F. Stone George A. Fermanian remain as general
partners, express written consent of the City.
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Sectio of the bo-
tenth of one pe
bonds to reimbu
nection with thl
IN WIT
executed this AI all on the date
(SEAL 1
ATTEST:
1981p/2062-10
11. Expenses. On the date of issuance e Owner shall pay to the City the sum of one-
cent of the aggregate principal amount of the se the City for the expenses incurred in con-
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issuance of the bonds.
ESS WHEREOF, the City and the Owner have
reement by duly authorized representatives,
first written hereinabove.
CITY OF CARLSBAD
RODNEY F. STONE
GEORGE A. FERMAINIAN
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DECEMBER 4, 14
TO : CITY MI
FROM: Dire c tc
1983 SINGLE-FAM:
Total Issue:
1983 Program Rec
A. First-Til
B. Maximum
(110% 1
Avera
C. Income L
(150%
. $26,6
Program Charact
Total Mortga
Fund Disburs
Projected Di
Average Sale
Average Mont
Payment :
Average Inte
Average Borr
Buyer Profile:
Income Range
Less. than
Emp lo yme n t 1
Prof essioi
Manageria:
Technical
Military t
Gove rnme n i
Skilled L,
Unskilled
White Col
MARTY
MO : hmj
3' t. .
,Y MORTGAGE REVENUE BOND PROGRAM
$20,000,000
iirements:
3 Homebuyers
Lles Price:
F Regional
2)
nitation:
E Median -
2)
cistics as of September 171 1984:
2s : 55
nent : $6.7 Million
bursement. 1984: $7.1 Million
ly Mortgage
est Rate: 9.9%
wer Age: 31
Price: $96,486
$993.00
0% of Median 1
0% to 100% of Median 5
00% to 120% of Median 19
30 20% to 150% of Median -
TOTAL
ye : -
55 ..
25.7% Executive
14.3% Craftsman
11.4% Self-Employed
if icer 4.3% Sales Inside
Admin. 2.9% Sales Outside
)or 5.7% Retired
.abor 2.9% . Other
ir 8.6%
11 2.9%
2.9%
5.7%
2.9%
7.1%
1.4%
1.4%
ATTACHMENT I
2 3 4
AFFORDABLE R/2NTS FOR THE COUNTY OF SAN DIEGO
1
2 3 4
5 61 7 8
the HUD median income
of four as of July, 1983
1
2 3 505 4
8i
555
60%
702
$9,240
$10,560 $1 1,880
$1 3,200
$14,025
$1 4,850
$15,675
$1 6,503
$10,164
$1 1,616 $1 3,068
$14,520 $15,428
$16,335 17,243
$18,750
$1 1,088
$12,672 $14,256
$1 5,840
$1 6,830
$19,800
$12,012
$13,728 $15,444
$17,160
$18,233
$19,305 $20 , 378
$2 1 ,450
$14,784
316.532
3 :e, 480
:i9,635
320 ,?go 221,945
t23,ioo
$:i;E
$12 9 936
$770 . 00 $880 . 00
$990 0 00 $1,100.00
$1,168.75
$1,237.50 $1,306.25
$1,375.00
$847 .OO
$968 .OO
$1,089.00
$1,210.00
$1,285.63
$1,361 -25 $1,436.88
$1,512.50
$924 . 00
$1,056.00 $1 , 188.00
$1,320.00
$1,402.50
$1,485.00
$1,567.50
$1,650.00
$1,001 .oo
$1,144.00 $1,287.00
$1,430.00
$1,519.38
$1,608.75
$1,698.13
$1,787-50
$1,078.00
$1,232.00 $7 ~86.00
$1,540.0O
$1,636.25
5: ,328.75
$1,925.00
.‘1,732.50
$192.50
$220 . 00
$247.50 - $275 . 00
$292.19
$309 38 $326 . 56
$343.75
$21 1.75 $242.00
$272 . 25 $302 . 50 $321.41
$340.31
$359 9 22
$378.13
$23 1 . 00
$264. 00
$330 -00
$350 . 63
$371 -25 $391 -88 $4 12.50
$250.25 $286.00
$321 -75 $357 50
$379 I 84 $4CZ 19
’-224.53 5446.88
$297 00
-Q69 . 50
308 .OO 6346 . 50
$385.00
5409.06
$433.13 $457.19
$481 . 25
$231 .OO $264.00
$297 . 00 $330.00 -
$350 63 $37 1 . 25
$391.88 $412 -50
$254.10
$290 . 40
$326 . 70 $363.00
$385.69 $408 . 38
$431 -06 $453.75
$277 . 20 $3 16.80
$356 . 40 $396.00
$420 -75 $445 . 50
$470 . 25 $495 -00
$300.30
:343.20 3386 10 $429 . 00
$455.81 - :.5282.63
5509.44
$536.25
$323 . 40
$369.60 $415.80 2962.00
$490. 88
$51” .?5
$540 . 63 $577 50
5 Median Size of
IIICCiIE Family
6 7 8
1
2 3 105% -4 5 6 7 a
110%
1
2 3 1155 4 5 6 7 8
1205
1
2 3 4 5 6 7 8
Annual Monthly
$18,480 $21,120 $23,760 $26,400 $28,050 $29,700 $31,350
$33,000
$1 9,404 $22,176 $24,948 $27,720 $29,453 $31 , 185 $32,9 1 8 $34,650
$20 , 328 $23,232 $26 , 136 $29 040 $30,855
$32,670 $34 , 485 $36 , 300
$21 , 252 $24,288
$27 , 324 $30 9 360 $32,258 $34 9 155 $36,053
$37,950
$22,176
$25,344 $28,512
$31,680 $33,660
$35,640 $37,620 $39,600
$1,540.00 $1,760.00 $1,980.00 $2,200.00 $2,337.50 $2,475 . 00 $2,612.50
$2,750.00
$1,617.00 $1,848.00
$2 , 079 00 $2,3 10 .OO $2 , 454.38 $2 , 598 . 75 $2,743.13 $2,887 -50
$1,694.00
$1,936-00 $2,178.00 $2,420 . 00 $2,571 -25 $2,722 . 50 $2,873 . 75 $3,025.00
$1,771 .OO $2,024 -00
$2,277 -00 $2,530 .OO $2,688.13
$2,846.25 $3 , 004 . 38 $3,162.50
$1,848.00 $2,112.00
$2,376 . 00 $2,640.00 $2 805 -00
$2,970 -00 $3,135000 $3,300 -00
$385.00 $440 .OO
$495 . 00 $550 .OO $584.38 $6 18.75 $653.13 $687.50
$404.25 $462 -00
$519.75 $577 . 50 $6 1 3.59 $649 . 69 $685 . 78 $721 -88
$423 . 50 $484 -00
$544.50 $605.00 $642.81 $680 . 63
,, $718.44 $756 . 25
$442 75 $506 . 00
$569 -25 $632 . 50 $672 03 $71 1.56 $751 -09 $790 . 63
$462 . 00 $528.00
$594 . 00 $660 . 00 $70 1 . 25 $742 . 50
$783 75 $825 .OO
$462.00 $528 . 00
$594.00 $660 -00
$70 1 . 25 $742.50
$783 75 $825.00
$485.10 . $554.40
$623 -70 $693 -00 $736.31 $779 63 $822 . 94 $866.25
$508.20
$653 . 40 $726 . 00 $77 1 . 38 $8 16 -75 $862.13 $907 . 50
$531 30 $607.20
$683.10 $759 . 00 $806 -44 $853 . 88 $901 -31 $948 75
$554 . 40 $633 60 $7 12 80 $792 -00 $841 -50 $891 -00
$940 50 $990 DO0
$580.80
. ..
% Median Size\.of I Annual Monthly AFFORDABLE RENT @ \'
Income Fay, Income Income 25% 30% ............................. -------------- 4 ----
$13,860 $1,155.00 $288 . 75 $346.50 $15,840 $1,320.00 $330 -00 $396 00 $17,820 $1,485.00 $371 25 $445 . 50
$19,800 $1,650.00 $4 12 -50 $495.00 $21,038 $1,753.13 $438 -28 $525 -94
$22,275 $1,856.25 $464.06 $556.88
$23,513 $1,959.38 $489.84 $587 -8 1 $24,750 $2,062.50 $51 5 -63 $618.75 -
$308 . 00 $352.00 --- -
$14,784 $1,232.00 / 4 - $16,896 $1,408.00
$19,008 $!,%4.0@ $396 -00 $440,00
$467.50
___I___w_ -- ---"--.".-I- .- - j.L"--"*u_ ~ ___
75%
81
I
85%
90%
95%
4 3l 5 6 7 8
$23,760 $25,080 $26,400 -". "
$15,708
$17,952
$20,196 $22,440
$23,843
$25,245 $26,648
$28,050
$16,632
$19,008
$21,384
$23,760 $25,245
$26,730 $28,215
$29,700
$17,556 $20,064
$22,572 $25,080 $26,648
$28,215
$29,783
-_.. -
$31,350
$1,980.00
$2,090 -00 $2,200 -00
$1,309.00 $1,496.00
$1,683.00
$1,870.00 $1,986.88
$2,103.75 $2,220.63
$2,337 . 50
$1,386.00
$1,584.00
$1,782.00
$1,980.00
$2,227 -50
$2,475 -00
$1,463.00 $1,672.00
$1,881 -00
$2,090.00 $2,220.63
$2,351 -25 $2,481 -88
$2,6I 2 -50
$2, 103.75
$2,351 025
$495 . 00
$522 . 50 $550.00
$327 . 25
$374 -00
$420 . 75
$467 . 50
$496.72
$525.94 $555. 16 $584 . 38
$346.50
$396 00
$445 . 50
$495.00
$525 . 94
$556.88
$587.81 $6 18 -75
$365 . 75 $4 18 -00
$470 25
$522 . 50
$555 . 16
$587.81 $620.47
$653 . 13
$594.00
$627 . 00
$660.00-- - 7-
$392.70 $448 . 80
$504.90 $561.00 ,
$596.06
$666.19
$701 -25
$631-13
$415.80
$475 . 20
$534.60
$594 -00 $631.13
$668.25
$705 . 38 $742.50
$438 . 90 $501.60
$564.30 $627.00 $666.19
$705 38
$744.56
$783.75