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HomeMy WebLinkAboutGrant of Right of First Refusal with Respect to Purchase of Home Recording Requested P JULIE RODEW�7 MIEL /$9oss —s Fidelity National TWtle� San Luis Obispo Coffntty– Clerk/Recorder 2/02/2005 ' Complimentary Recording Requested Recorded at the request of 8:00 AM Pursuant To Government Code Fidelity Title Company Section 6103 and 27383 2 005008688 0 D O C # : Titles: 2 Pages: 7 When Taxes City of Recorded o Arroyo Grande IIII 111 I 1111 Others 0. 0 P. O. Box 550 PAID $0.00 Arroyo Grande, CA 93421 Attn: City Clerk GRANT OF RIGHT OF FIRST REFUSAL WITH RESPECT TO PURCHASE OF HOME CITY OF ARROYO GRANDE INCLUSIONARY HOUSING PROGRAM Buyer: Department of Veterans Affairs of the State of California Qualified Buyers: Andrew C. Jenings and Cheri Jenings Address of Home: 253 Courtland Street, Arroyo Grande, CA 93420 Development: Jasmine Place Income Category of Home: Moderate Number of Bedrooms in Home: 3 Sales Price at Original Purchase: $315,255 This Occupancy and Resale Agreement with Option to Purchase (the "Agreement ") is entered into as of this 27th day of January, 2005, by and between the City of Arroyo Grande (the "City "), the Department of Veterans Affairs of the State of California (the "Buyer ") and Andrew C. Jenings and Cheri Jenings (the "Qualified Buyers "). RECITALS A. Pursuant to the City of Arroyo Grande's Affordable Housing Ordinance (Ordinance No. 514 C.S.), Chapter 16.80 of the Arroyo Grande Municipal Code, a portion of all new housing constructed in the City of Arroyo Grande is required to be affordable to median to above moderate - income households. B. Jasmine Place, LLC, a Limited Liability Company (the "Developer ") and the City entered into an Affordable Housing Agreement dated 8/10/04 (the "Affordable Housing Agreement "). Pursuant to the Affordable Housing Agreement, the Developer agreed to sell seventeen (17) homes (the "Affordable Units ") to moderate income households as defined in Health and Safety Code §50093. C. Buyer intends to purchase the property located in the City of Arroyo Grande, and more particularly described in Exhibit "A'✓attached hereto and incorporated herein (the "Home "), for sale to and occupancy by the Qualified Buyers. The Home has been designated by the City and the Developer as one of the Affordable Units. 1 • / / r i ef f `r LOT 5 OF TRACT NO. 2505, IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED AUGUST 18, 2004 IN BOOK 24, PAGES 12, 15 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. D. The City's Community Development Director has received an application to purchase from the Qualified Buyers. The Community Development Director has determined that the Qualified Buyers qualify as a moderate income household. E. This Agreement requires the Buyer and the Qualified Buyers to give the City a right of first refusal to enforce the Affordable Housing Requirements. This restriction has enabled the Buyer to purchase the Home at an affordable sales price for occupancy by the Qualified Buyers. F. Buyer intends to sell the Home to the Qualified Buyers by means of a Cal -Vet Loan Contract under which the Qualified Buyers will make monthly installment payments until the purchase price and interest as set forth in the Cal -Vet Loan Contract are paid in full. Upon payment in full, Buyer shall transfer title to the Home to the Qualified Buyers. In the event the Qualified Buyers fail to make payments as set forth in the Cal -Vet Loan Contract, the Buyer has the right to cancel the Cal -Vet Loan Contract, take possession of the Home and sell the Home to another buyer. G. Notwithstanding Section 6.4.1 through 6.4.3 of the Affordable Housing Agreement, City is willing to allow the sale to Buyer subject to the terms hereof and execution by the Qualified Buyer of an Occupancy and Resale Agreement with Option to Purchase. H. Pursuant to the Affordable Housing Ordinance and the Affordable Housing Agreement, the Developer and the City are required to ensure the continued affordability of the Home as an Affordable Unit, and the City therefore requires the Buyer and the Qualified Buyers to execute this Agreement as a condition of the purchase of the Home. The Buyer and the Qualified Buyers have agreed to execute and comply with this Agreement in consideration of the Developer's agreement to sell the Home to the Buyer at an affordable price that is below the fair market value of the Home for occupancy by the Qualified Buyers. I. This Agreement shall include and encompass the Qualified Buyers' interest in the Home (including his or her rights under the Cal -Vet Loan Contract) in the event of the sale of the Home by Buyer. J. Concurrently with the execution and delivery of this Grant of Right of First Refusal, the Qualified Buyers are executing and delivering to the City a Qualified Buyers' Occupancy and Resale Agreement which will place occupancy and resale controls on the Home and require payment of any excess proceeds of sale to the City in the event of an elective sale of the Home by Qualified Buyers at an unrestricted price. K. The purpose of this Agreement is to provide the City the right to purchase the Home at a restricted price, given in consideration of the economic benefits to the Buyer and Qualified Buyer resulting from purchase of the Home at a below market price under the City's Affordable Housing Program, in the event of the sale of the Home by Buyer. 2 AGREEMENT NOW, THEREFORE, in consideration for the Buyer's and the Qualified Buyers' ability to purchase the Home at less than its fair market value, Buyer and Qualified Buyers agree, as follows: 1. Transfer to Qualified Buyers: If Buyer transfers the Home to the Qualified Buyers in accordance with the provisions of the Cal -Vet Loan Contract, the City has deemed the Qualified Buyers' Occupancy and Resale Agreement to fulfill the obligations of Buyer and Qualified Buyers under this Grant of Right of First Refusal, and the Buyer and Qualified Buyers need not comply with the provisions of Paragraphs 2 through 6 below. 2. Repurchase Notice: City shall have the first opportunity to purchase the Home if Qualified Buyers are in default on the Cal -Vet Loan. If Qualified Buyers default on the Cal -Vet Loan and/or Buyer desires to sell the Home to any party other than the Qualified Buyer, the Buyer shall notify the Community Development Director of the City of Arroyo Grande ( "CDD ") in writing of its intent. Within 10 days of receiving such written notification, CDD will provide the Buyer a notice (the "Repurchase Notice ") stating the price for which the City will repurchase the Home calculated in accordance with the Maximum Allowable Sales Price Calculation for a Moderate Income Unit attached hereto as Exhibit `B" and incorporated herein and using the maximum household income of a first -time homebuyer who is eligible to purchase the Home under the City's Inclusionary Housing Program (the "Repurchase Price "). 3. Tender Offer: Within thirty (30) days of issuance of the Repurchase Notice, the Buyer shall tender a formal offer to sell the Home to the City for the Repurchase Price (the "Tender Offer "). If the Buyer does not provide a Tender Offer to the City within thirty (30) days, the Repurchase Notice shall lapse, and Buyer shall request a new Repurchase Notice prior to submitting any Tender Offer. 4. Marketing Cooperation. After submittal of a Tender Offer, the Buyer shall cooperate fully with the City and any broker designated by the City in the marketing of the Home, including but not limited to preparing all customary or legally required disclosures about the Home and making the Home available for viewing by prospective purchasers. 5. Election to Purchase. The City shall have sixty (60) days after receiving the Tender Offer within which to elect to purchase the Home at the Repurchase Price. The City shall notify Buyer within such sixty (60) day period whether the City desires to purchase the Home. Within thirty (30) days of such notice by the City, the City and the Buyer shall enter into a formal contract of sale. 6. Marketable Title. Within thirty (30) days of City's notice of intent to purchase as set forth in Paragraph 5, Buyer shall obtain evidence of marketable title to the Home and submit the same to the City for examination. Thereafter, the City shall have ten (10) days within which to notify Buyer as to any defects in or objections to the title as so evidenced, and Buyer shall have the opportunity to remedy any such defects or objections within ten (10) days after the City's notice to Buyer. If by the end of the last period specified, Buyer cannot show satisfactory title, the City shall have the option of either (a) continuing the transaction with such contract 3 modification as the parties may mutually agree to; or (b) rescinding the contract. If the contract is not modified or rescinded, the contract of sale of the Home shall provide for sale of the Home to close within thirty (30) days of delivery of evidence of marketable title. 7. Failure by City to Elect Purchase. If the City fails to give the notice as provided in Paragraph 5, or if the City fails to enter into a formal and binding contract within the thirty (30) days set forth in Paragraph 5, Buyer may sell the Home to any person. 8. Offer by Eligible Purchaser. If the Buyer receives a bona fide offer for the purchase of the Home, for a sales price that does not exceed the Repurchase Price, and from a third party who is an Eligible Purchaser pursuant to the Affordable Housing Agreement, Buyer shall disclose the terms of such offer to the City, in writing, within forty -five (45) days following the receipt of the Repurchase Notice. The City may, but is not obligated to, permit the sale of the Home to the Eligible Purchaser in lieu of exercising its Right of First Refusal. The City and Buyer will require the Eligible Purchaser to execute and deliver a Grant of Right of First Refusal and Qualified Buyer's Occupancy and Resale Agreement with Option to Purchase or as otherwise determined to be appropriate by the City, in its sole discretion. 9. Assignment of Interests. The City shall have the right to assign its interests under this Grant of Right of First Refusal and/or designate an individual or entity to exercise its rights under this Grant of Right of First Refusal. 10. Binding Agreement. The rights and obligations of Buyer, Qualified Buyers and City hereunder shall bind and inure to the benefit of Buyer, Qualified Buyers and City, as well as their personal representatives and successors and assigns. 11. Non - Liability of the City. The City shall have no obligation to exercise any right granted it under this Agreement. In no event shall the City become in any way liable or obligated to the Buyer and/or Qualified Buyers or any successor -in- interest to the Buyer and/or Qualified Buyers by reason of its option to purchase, nor shall the City be in any way obligated or liable to the Buyer and/or Qualified Buyers or any successor -in- interest to the Buyer and/or Qualified Buyers for any failure to exercise its option to purchase. IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date first written above. CITY: CITY OF ARROYO GRANDE By: ✓ CITY NPANAGER 4 1.61 Neel BUYER: DEPARTMENT OF VETERANS AFFAIRS By: QUALIFIED BUYERS: • STATE OF CALIFORNIA 54c/A men//- ) ss COUNTY OF ) On //2 7/0 r , 2001, before me, UAL ( , personally appeared tn. ao y „( , personally known to me (or 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. WITNESS my hand and official seal. PAUL M. TOMPKINS y { , comm. # 1315529 ;S .,49. • :412 NOTARY PUBLIC• CALIFO- }n”, SACRAMENTO CO. , Comm. Exp. JULY 2r - PAUL M TOM PKINS ; �� _ comm 1315529 ✓w. NOTARY PUBnC• CMJFORNIA I SAC RAM ENTO COUNTY '• Comm. Exp. JULY 29, 2005 5 • - STATE OF CALIFORNIA ) ss COUNTY OF SAN LUIS OBISPO ) iat9Us On janc 8 t c7- flS ,4094, before me, bans Yli q✓ 'Corti i c `� , personally appeared And✓to (,. JPVt■n45 Gv t ( p� t Nitvi g . Se vtingqc we.(er proved to me on the basis of satisfactory evidence) tb be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that hefske /they executed the same in his4ter /their authorized capacity(ies), and that by hi.&hcr /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. _ _ _ - i t , i DANA MARIE MORRIS k Gmm, ► 1421343 U •' • •, • ., NOTARY flIUC•CAIIHRM A AA' V J ` ~ �` '� San lust MOW GAMY a / �/ ` W Comm. fines Jury 2,2107 C Q STATE OF CALIFORNIA ) ) ss COUNTY OF SAN LUIS OBISPO ) On_,AN14 A2�1 3 1 , 200A, before me,414 dde 411f ore J U0 tar/ personally appeared •5 vs . itlV M 5 , personally known to me (• • • - • • u - • r s • . • - - - - - - - - ) to be the persona) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he/she /they executed the same in his/Ner/their authorized capacity(ies), and that by his/her/their signatures) on the instrument the person(e) or the entity upon behalf of which the persons) acted, executed the instrument. WITNESS my hand and official seal. - , KELLY TMORE ?�� -� - Commksi b 12892 VAAMO T • .:: NOYary PUblic - Califor is I � / \ san Lub owes,0 coU�fy arm, 6 END OF DOCUMENT