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HomeMy WebLinkAboutCT 2019-0006; Roosevelt Nine LLC; 2022-0399577; Affordable Housing Agreement/ReleaseRECORDING 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 DOC# 2022-0399577 111111111111 lllll 111111111111111 lllll lllll lllll lllll 111111111111111111 Oct 14, 2022 09:33 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins $0.00) PCOR: N/A PAGES: 12 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY (Dev2018-0183) This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY ("Agreement"), entered into this l{-r--day of O C.f:o be.£ 2022, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the ("City"), and Roosevelt Nine, LLC (hereinafter referred to as the "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 (hereinafter referred to as the "Subject Property") described in "Attachment A", which is attached hereto and incorporated herein by this reference. B. For the purposes of this Agreement, Developer currently intends to construct a total of nine residential units (hereinafter referred to as the "Development") on the Subject Property. The City has approved Tentative Tract Map CT 2019-0006 and Site Development Plan SDP 2019-0007 for the Development (Dev2018-0183). The City issued the approval subject to certain Conditions of Approval, including a condition requiring at least fifteen percent (15%) of the units in the Master Development to be affordable housing as required by the City's Inclusionary Housing Ordinance (CMC Chapter 21.85). NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In order to satisfy the Conditions of Approval of CT 2019-0006 and SDP 2019-0007 and requirements of the City's Inclusionary Housing Ordinance, Carlsbad Municipal Code Chapter 21.85, Developer shall provide a total of one (1) Affordable Unit which shall be restricted and affordable to a lower-income household. This Agreement is an Affordable Housing Agreement pursuant to Section 21.85. 140 of Chapter 21.85 of the Carlsbad Municipal Code. Developer REV. 02/05/03 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 Governing Provision of Affordable Units. 2.1. Obligation to Provide Affordable Units. 2.1.1. Developer shall provide one (1) Affordable Unit in relation to Market Units ("Market Units") on the Subject Property. The Affordable Multifamily Unit shall include a one-bedroom/one-bathroom unit with the square footage indicated in "Attachment B" to this Agreement. The maximum allowable income level of buyer of the affordable unit 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, Grading Permit or Building Permit for the Development: (i) this Agreement shall be duly executed and recorded; and (ii) the Developer shall have received approval of a Site Development Plan for all market rate units and the one Affordable Multifamily Unit included in the Development. 2.2.2 Upon satisfying the applicable conditions stated in Sections 2.2.1, building permits can be released for a total of 8 market rate units and for the one (1) Affordable Unit. 2.2.3. Prior to receiving final Certificate of Occupancy for the final Market Unit, Developer shall receive final Certificate of Occupancy for the one ( 1) Affordable Unit. 2.3 Terms for Sale of Affordable Unit. 2.3.1. The Schedule of Maximum Eligible Buyer Incomes and Affordable Subsidized Purchase Prices (the "Schedule") attached hereto and incorporated herein as Exhibit C sets forth the City's requirements for determining the maximum household income of buyer of the Affordable Unit ("Eligible Buyers") and the methodology for calculation of the subsidized purchase price of Affordable Unit which will be affordable to the Eligible Buyer (the "Affordable Purchase Price"). The Schedule also includes initial estimates of Eligible Buyer actual income and the corresponding Affordable Purchase Price. 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 Homeless Services Director prior to the marketing of the Affordable Units. 2.3.2. The Developer shall sell the Affordable Unit only to an Eligible buyer whose household income has 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 REV. 02/05/03 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. 2.4 Terms for Re-sale of Affordable Units. After the initial sale of the inclusionary for-sale unit at a price affordable to the target income level group, the inclusionary for-sale unit shall remain affordable to a subsequent low-income eligible buyer pursuant to a resale restriction for a minimum term of fifteen (15) years, and the buyer shall live in the home as the buyer's primary residence; the unit may not be rented at any time and may not be used as a vacation rental or other non-residential purpose. Beginning in the sixteenth (16) year after the initial purchase of an Affordable Unit, the City of Carlsbad will have the right of first refusal to purchase the for-sale unit from the eligible low-income buyer at the low-income affordable restricted purchase price. If the City of Carlsbad declines its option to purchase the unit, the for-sale unit may be sold by the low-income homeowner at a market price to other than targeted household 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. City 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 the Affordable Unit. Documents to be prepared by the Developer shall be submitted to the Housing and Homeless Services Director for review and approval no later than the start of construction of the Affordable Unit. 3 .1.1. A marketing plan establishing the process for seeking, selecting and determining the eligibility of buyer of the Affordable Unit shall be prepared by the Developer. 3.1.2. An educational program informing Affordable Unit purchaser of the obligations of home ownership and the specific features of this program shall be prepared by the Developer. 3.1.3. A Purchase and Sale Agreement for sale of the Affordable Unit 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. REV. 02/05/03 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 Homeless Services Director. 4. Mortgage Credit Certificate Program. Buyer of the Affordable Unit 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 buyer Mortgage Credit Certificates from allocations which it may receive. 5. Reporting and Compliance Monitoring. A report verifying compliance with the requirements of this Agreement covering the initial sale of the Affordable Unit shall be provided to the City by the Developer and approved by the Housing and Homeless Services 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 21.85 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 or other required 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 Subject Property From Agreement. The covenants and conditions herein contained shall apply to and bind the Developer and its 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 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 market rate 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 certificate of REV. 02/05/03 occupancy for the Affordable Unit, the entire Subject Property, with the exception of the property subject to the approved Site Development Plan, 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 approved Site Development Plan in accordance with the terms of this agreement. 9. Hold Harmless. Developer will indemnify and bold 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 one million dollars ($1,000,000) per occurrence and aggregate limits of not less than two million dollars ($2,000,000) 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 Homeless Services 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 Homeless Services Department Attn: Housing and Homeless Services Director 1200 Carlsbad Village Drive Carlsbad, California 92008 TO THE DEVELOPER: Roosevelt Nine, LLC Attn: Randolf Cherewick 2033 San Elijo Ave, Suite 423 Cardiff, CA 92007 REV. 02/05/03 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. 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. 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 Affordable Unit 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 Housing and Homeless Services Director or Community Development Director, or other authorized agent of the City of Carlsbad. This Agreement, and any section, subsection, or covenant contained herein, may be amended only upon the written consent of Developer and the Housing and Homeless Services Director or Community Development Director, or other authorized agent of the City of Carlsbad. 14. 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. 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. (THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK) REV. 02/05/03 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of the day and year first above written. DEVELOPER By: Name Title APPROVED AS TO FORM: CINDIE MCMAHON, City Attorney By: ~J-0:,,1£)- 1=&' Ro emp Deputy City Attorney CITY City of Carlsbad, a Municipal corporation By: Amanda Mills Director, Housing & Homeless Svcs. REV. 02/05/03 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 oo 2 o o □ o.coo oecoo=OOOOflm 1:0 o J:o:0E:e1Jocroeoo~ co o:o:808:o:o:o:o:rno:o:o:e=ORCJOOI a a08DO c:oo, 1:111 r0 o c mo:o:o e A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ____._,~-Ad\=-------.,.__ ....... D'--'-\----=c~--'----,j(-----} On ~ckn'ow ±t uiV Dote Here Insert Name and Title of th personally appeared ----~'--'--'-"'----"---'-----"f./\.'--"--'j_.l_._\ \...__ ___________ _ Nome(s) of Signer(s) who 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 he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. , ..........•. , , • ... ,. ,, KAYLIN l~IANN[ MCC•UL[Y ( -{;f:a.1111~·• Ni ury ~U-llt · C•llfar ni• r i ~ •·..t; : S•n l 1@1t Ctunty l • Commh,itn ~ 22i•,•7 My Comm. cx,lr t, ••• 8, 2123 Place Notary Seal and/or Stamp Above I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. OPTIONAL Completing this information con deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: ___________________________ _ Document Date: _______________________ Number of Pages: ____ _ Signer(s) Other Than Named Above: _______________________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: o Corporate Officer -Title(s): ______ _ o Partner -o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator D Other: Signer is Representing: _________ _ Signer's Name: ____________ _ o Corporate Officer -Title(s): ______ _ o Partner -o Limited o General D Individual o Trustee D Other: o Attorney in Fact o Guardian or Conservator Signer is Representing: __________ _ 880008080ll o o e080800080l l=8lJOOOIJ:8:oll:o:c101J:o:o:B:o:o:ooooeo:80lJ080880:1J0811 a a ,:o:oll 3:0:0:0:0:0:0 80008008 ©2018 National Notary Association CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of SAN p I E, C:::i a ) On oa-c:::iBE.e. 4, Z() Zl. before me, G'i\~Q~~ ~l)(ctO Ga1>t-eACH«.. A SU:l't1,.,R~ fo~~lC Date Here Insert Name and Title of the Officer personally appeared RA~ 3)0 Lr c~ 'Ei<.E \d \~ \L Name(11} of Signer(fl) who proved to me on the basis of satisfactory evidence to be the personW-whose name~ is~ subscribed to the within instrument and acknowledged to me that he~y executed the same in his~ authorized capacity~, and that by his~r signature.(gl on the instrument the person~ or the entity upon behalf of which the personpq acted, executed the irtsfrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ~~ Place Notary Seal Above ---------------OPTIONAL--------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Named Above: ____________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: ___________ _ Signer's Name: ____________ _ □ Corporate Officer -Title(s): ______ _ D Corporate Officer -Title(s): ______ _ □ Partner -□ Limited □ General □ Partner -□ Limited □ General □ Individual □ Attorney in Fact □ Individual □ Attorney in Fact D Trustee D Guardian or Conservator D Trustee □ Guardian or Conservator □Other: ______________ _ D Other: _____________ _ Signer Is Representing: _________ _ Signer Is Representing: ________ _ • ©2014 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITU A TED IN THE CITY OF CARLSBAD, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE SOUTHWESTERLY HALF OF LOT 40, EXCEPTING THEREFROM THE NORTHWESTERLY 10.60 FEET OF THE SOUTHWESTERLY 120.00 FEE THEREOF OF SEASIDE LANDS, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1722, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 26, 1921. APN: 203-102-15 REV. 02/05/03 ATTACHMENT B LOCATION, SIZE, AND BEDROOM COUNT OF AFFORDABLE UNITS The Low-Income Affordable, Restricted Price Unit shall be located within the development known as Roosevelt known to be located at 2690 Roosevelt Street, Carlsbad, Ca. 92008.:. The unit will be approximately 900 square feet in size and shall provide for 1 bedroom and 1 bathroom and noted as unit type C-1-1 . REV. 02/05/03 ATTACHMENT C MAXIMUM ELIGIBLE BUYER INCOMES While income eligibility shall be determined at the time approval of a purchase contract. The current income schedule (2021) for qualifying as an eligible low income buyer (80% of Area Median Income or Less, adjusted for household size) for the affordable housing unit within the subject development within the City of Carlsbad is noted below for reference purposes: FAMILY SIZE LOW INCOME 80% of Area Median Income 1 $59,950 2 $68,500 3 $77,050 4 $85,600 5 $92,450 6 $99,300 7 $106,150 8 $113,000 REV. 02/05/03