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Home My WebLink AboutCT 13-01; KLC BV Carlsbad LLC; 2014-0139104; Affordable Housing Agreement/ReleaseRecordi?!^ ^^quested by: City of Carlsbad When Recorded Mail to: City of Carlsbad City Clerk's Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad. Califomia 92008 II DOCtt 2014-0139 IIIIIIIII lllllllllllllllllllllllllllll APR 08. 2014 4:58 PM 04 lllllllllll OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Droneriburg, Jr., COUNTY RECORDER FEES: 3G.00 PAGES: (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT (Second Dwelling Units) THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this S+K day of KJoN/frMfegX. 20 13 . by and between the CITY OF CARLSBAD, a municipal corporation ("City"), and KLC BV Carlsbad LLC . a Califomia limited liability company ("Developer"), with reference to the following: RECITALS 8 A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of Califomia, described in "Exhibit A", which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map CT 13-01 , and Plarmed Development Permit PUD 13-03 . which provides conditional approval of the constmction of eleven (11) single family dwelling units ("Projecf). B. Condition No. 15 of Planning Commission Resolution No. 7006 , 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 defmed under Chapter 21.85 of the Carlsbad Municipal Code ("Affordable Housing Obligation"). Planning Commission Resolution No. 7006 provides that the affordable housing obligation will be satisfied by applying the requirements set forth in this Agreement for constmction of second dwelling units on affordable housing lots ("Affordable Housing Lots"). The Affordable Housing Lots which are subject to this Agreement are: Lots 9& 10 of Carlsbad Tract No. CT 13-01 in the City of Carlsbad, County of San Diego, State of Califomia, according to Map No. /5"^ 10 filed with the County Recorder of San Diego County on (^AKc(\ ^ /, XoiH . C. Developer intends to constmct the required inclusionary imits 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: 1 CA 2/5/2013 7 1. The Recitals Are Tme 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 of the Carlsbad Municipal Code as applied to the land in Tentative Map CT 13-01 , by Condition No. _15_ in Planning Commission Resolution No. 7006 and any other applicable condition of approval. 3. SECOND DWELLING UNITS. (a) Constmction of Second Dwelling Units. Developer shall at the time a residential stmcture is constmcted on the Affordable Housing Lot, include in such residential stmcture a Second Dwelling Unit as defined imder and subject to the requirements contained in Municipal Code Section 21.850.070. (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 1/12th 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 2013 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 constmcted 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 ovm 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 mn with the land so as to restrict subsequent transfers. 2 CA 2/5/2013 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. 15 of Planning Commission Resolution No. 7006 . 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. CT 13-01 . 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, actions, obtained, allegedly caused by, arising out of or retaining in any maimer to Developer's actions or defaults pursuant to this Agreement, and 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 Califomia, 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, retum receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing & Neighborhood Services Department Attn: Housing & Neighborhood Services Director 1200 Carlsbad Village Drive Carlsbad, Califomia 92008 TO THE DEVELOPERS: KLC BV Carisbad. LLC 101 S. Kraemer Blvd. Ste 136 Placentia. CA 92870 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the maimer set forth above. 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. 3 CA 2/5/2013 7 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 constmction. 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. KL<L ifeV Aau-isbad LUl- DEVELOPERS ^..^T^^i^rZ^^ CITY OF CARLSBAD By: Debbie Fountain Authorized Signatory Housing & Neighborhood Services Director Dated: 9//£>'/&>f3 By: Name: Title: Dated: Dated: 11 (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|tomey By: " Dated: /^"^ Jan^ jflobaldi, Assistant City Attomey '/ 4 CA 2/5/2013 7b ACKNOWLEDGMENT State of California County of Orange On "jyilf^C/TAh^ iiti, I'b before rne, Jov F. Yukawa-Pong, Notarv Public personally appeared, ^ref-t- t^ihre.dy<L who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the wifhin instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature x'Al M Y\mi^_ (Seal) JOYF. Commlttiofl # 19S2245 Notary PubHc - Califoniia Oranfl* County p My Comm. Expirw Sap 15.2015 j 1 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOTS 1 THROUGH 11, INCLUSIVE, OF CARLSBAD TRACT NO. 13-01, "BUENA VISTA 11" IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED AS MAP NO. 15970, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. CA 2/5/2013 EXHIBIT B MAXIMUM MONTHLY RENTAL AMOUNT San DIego-Carlsbad-San Marcos, CA Metropolitan Statistical Area (MSA) Household Income Limits HUD Method 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 500S2.5 and 50093. San DIego-Carisbad-San Marcos, CA MSA U.S. Department of Housing and Urban Development December 11, 2012 Effective Date 2013 $ 72,300 Extremely Low Income Very Low Income 30% 35% 40% 50% Hshold Size Annual Monthly 30.00% Annual Monthly 30.00% Annual Monthly 30.00% Annual Monthly 30.00% Income Income Monthly Income Income Monthly Income Income Monthly Income Income Monthly ONE $16,950 $1,413 $423 $19,750 $1,646 $493 $22,600 $1,883 $565 $28,250 $2,354 $706 TWO $19,400 $1,617 $485 $22,600 $1,883 $565 $25,800 $2,150 $645 $32,250 $2,688 $806 THREE $21,800 $1,817 $545 $25,400 $2,117 $635 $29,050 $2,421 $726 $36,300 $3,025 $908 FOUR $24,200 $2,017 $605 $28,200 $2,350 $705 $32,250 $2,688 $806 $40,300 $3,358 $1,008 FIVE $26,150 $2,179 $653 $30,500 $2,542 $762 $34,850 $2,904 $871 $43,550 $3,629 $1,089 SIX $28,100 $2,342 $702 $32,750 $2,729 $818 $37,450 $3,121 $936 $46,750 $3,896 $1,169 SEVEN $30,050 $2,504 $751 $35,000 $2,917 $875 $40,000 $3,333 $1,000 $50,000 $4,167 $1,250 EIGHT $31,950 $2,663 $798 $37,250 $3,104 $931 $42,600 $3,550 $1,065 $53,200 $4,433 $1,330 Low Income 60% 65% 70% 80% Hshold Size Annual Monthly 30.00% Annual Monthly 30.00% Annual Monthly 30.00% Annual Monthly 30.00% Income Income Monthly Income Income Monthly Income Income Monthly Income Income Monthly ONE $33,900 $2,825 $847 $36,700 $3,058 $917 $39,500 $3,292 $987 $45,150 $3,763 $1,128 TWO $38,700 $3,225 $967 $41,950 $3,496 $1,048 $45,150 $3,763 $1,128 $51,600 $4,300 $1,290 THREE $43,560 $3,630 $1,089 $47,200 $3,933 $1,180 $50,800 $4,233 $1,270 $58,050 $4,838 $1,451 FOUR $48,360 $4,030 $1,209 $52,400 $4,367 $1,310 $56,400 $4,700 $1,410 $64,500 $5,375 $1,612 FIVE $52,260 $4,355 $1,306 $56,600 K717 $1,415 $60,950 $5,079 $1,523 $69,700 $5,808 $1,742 SIX $56,100 $4,675 $1,402 $60,800 $5,067 $1,520 $65,450 $5,454 $1,636 $74,850 $6,238 $1,871 SEVEN $60,000 $5,000 $1,500 $65,000 $5,417 $1,625 $69,950 $5,829 $1,748 $80,000 $6,667 $2,000 EIGHT $63,840 $5,320 $1,596 $69,200 $5,767 $1,730 $74,450 $6,204 $1,861 $85,150 $7,096 $2,128 Moderate Income 90% 100% 110% 120% Hshold Size Annual Monthly 30.00% Annual Monthly 30.00% Annual Monthly 30.00% Annual Monthly 30.00% Income Income Monthly Income Income Monthly Income Income Monthly Income Income Monthly ONE $45,550 $3,796 $1,138 $50,650 $4,221 $1,266 $55,700 $4,642 $1,392 $60,750 $5,063 $1,518 TWO $52,050 K338 $1,301 $57,850 $4,821 $1,446 $63,650 $5,304 $1,591 $69,400 $5,783 $1,735 THREE $58,550 $4,879 $1,463 $65,100 $5,425 $1,627 $71,600 $5,967 $1,790 $78,100 $6,508 $1,952 FOUR $65,050 $5,421 $1,626 $72,300 $6,025 $1,807 $79,550 $6,629 $1,988 $86,750 $7,229 $2,168 FIVE $70,300 $5,858 $1,757 $78,100 $6,508 $1,952 $85,950 $7,163 $2,148 $93,700 $7,808 $2,342 SIX $75,500 $6,292 $1,887 $83,900 $6,992 $2,097 $92,300 $7,692 $2,307 $100,650 $8,388 $2,516 SEVEN $80,700 $6,725 $2,017 $89,700 $7,475 $2,242 $98,650 $8,221 $2,466 $107,600 $8,967 $2,690 EIGHT $85,900 $7,158 $2,147 $95,450 $7,954 $2,386 $105,050 $8,754 $2,626 $114,550 $9,546 $2,863 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. Prepared by Affordable Housing Services Information, LLC Web: www.AHSinfo.com Phone (858) 832-1460 CA 2/5/2013 IS EXHIBIT C DEED RESTRICTION A Second Dwelling Unit has been constmcted as part of this property, and shall be maintained and utilized in accordance wdth the requirements of Carlsbad Municipal Code Section 21.85.070 for the useful life ofthe main stmcture (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"). The Affordable Units shall he available to households with incomes not exceeding 70% of the median income for San Diego Countv. adiusted 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. CA 2/5/2013 l<7>