HomeMy WebLinkAboutAffordable Housing Agreementa.
i nis aocument fs recorded for the benefit of tt
City of Arroyo Grande and is exempt from
recording iees pursuant to Govemment Code
Sections 6103 and 27383.
RECORDING REQUESTED BY:
City ofArroyo Grande
�rIVHEN RECORDED MAIL TO:
Ciry of Arroyo Grande
Community Development Director
214 East Branch Street
P.O. Box 550
Arroyo Grande, CA 93421
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JULIE RODEWALD
San Luis Obispo Counry — Clerk/Recorder
Nacorded at the request oi
Public
DOC#: 20�80�12�$
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1/09/2008
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AFFORDABLE HOUSING AGREEMENT
WHER S, THIS AGREEMENT is made and entered into this � day of
, 2007, by and between the CITY OF ARROYO GRANDE, a municipal
corporation (the "City"), and LE POINTE INVESTMENTS, LLC, Califomia limited liability
company (the "Develope�'; sometimes referred to herein as the "Owner°) (collectively
referred to as "the Parties'�; and
WHEREAS, Developer is the owner and developer of approximately 1 acre of real
property that is described in the attached Exhibit A(the "Property"), and
WHEREAS, Developer proposes to develop and construct six (6) single family zero lot
line residential units and two (2) mixed-use buildings and associated improvements,
(the "ProjecY'), on the above-described Property, and, pursuant to the Conditions of
Approval for Tentative Tract Map 04-003, the Developer shall set aside one (1)
residential unit of the Property to be restricted to the affordable housing standards
established by the County of San Luis Obispo and that, if the unit is offered for rent, it
shall be restricted to the low income category (the "Affordable Unit"); and
WHEREAS, the Affordable Unit that is subject to this Agreement is ident�ed as:
180 W. Le Point, No. D, Arroyo Grande, CA 923421.
WHEREAS, it is the intention of Developer and the City to set forth in greater detail and
specificity within this separate document the terms and conditions for renting restricted
affo�dable housing within the Project, and
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WHEREAS, it is the intention of Developer and the City that this Agreement run with the
title of the Property and be binding on all parties that have or will acquire any right, title,
or interest in said Property for a period of not less than thirty (30) years.
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NOW, THEREFORE, in consideration of the foregoing, and of the mutual terms and
covenants hereinafter set forth, the parties hereby agree that Developer shall produce
and sell or rent the Affordable Unit as described in this Agreement.
1.0 Definitions. Depending upon their context, certain words and phrases used in
this Agreement shall have the same meaning as the definitions that are included
in the Affordable Housing Ordinance. Other words and phrases used in this
Agreement shall have the meanings that are defined below:
1.1 "Administering Agenc�' means the San Luis Obispo Housing Authority, or any
other agency as determined by the City Council, which has experience in the
administration of affordable housing programs.
1.2 "Affordable Housing Ordinance" means Chapter 16.80 of the Arroyo Grande
Municipal Code as adopted by the Arroyo Grande City Council by Ordinance No.
514 on March 31, 2000, and as subsequently amended.
1.3 "Affordable Housing Standards" means the income, rent and sales price limits and
related standards adopted from time to time by the City for use in regulating the
rental, sale and occupancy of affordable housing units.
1.4 "Affordable RenY' means housing affordable, based upon monthly rent, to low-
income households. Affordable rental housing payments are approximately thirty
percent of gross monthly target income less utilities, and are based on the most
recent estimate of the median income for the County of San Luis Obispo as
summarized in the County's Affordable Housing Standards, available through the
County Planning and Building Department.
1.5 "Affordable Unit(s)" means, depending upon the context, either one or more of
the affordable housing units, the development, sale and/or rental of which are
regulated by this Agreement.
1.6 "AgreemenY' means this Affordable Housing Agreement.
1.7 "Eligible Household" means a person or family that meets one of the definitions
set forth in Sections 1.9 of this Agreement for rental of an Affordable Unit.
1.8 "Independent Agency" means the Housing Authority of the City of San Luis
Obispo or another qualified entity that has been approved in advance by the City.
1.9 "Low Income Household" means a person and family whose income does not
exceed eighty percent (80%) of the area median income for the County of San
Luis Obispo, adjusted for family size, as set forth in the Affordable Housing
Standards.
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2.0 Comaliance with Affordable Housinq Aqreement. The Developer shall comply
with the terms and conditions of this Affordable Housing Agreement, all of the
applicable requirements and conditions of the Affordable Housing Ordinance and
any special terms, conditions, requirements and/or waivers that were spec�cally
applied to the Project as part of the City's approval of the Project.
3.0 Number. Location and Distribution of Affordable Units. The Developer shall
develop one (1) Affordable Unit, which shall be resenred for rent to low-income
households.
4.0 Recordation and Release of AQreement. This Agreement shall be recorded
against the title to the Property prior to the recordation of the Final Subdivision
Map(s) for the Project. Upon the recordation of a Final Subdivision Map(s), the
City shall release from this Agreement all parcels created by the Final
Subdivision Map(s) that are not designated as Affordable Units.
5.0 Particiaation in Affordable Housinq Proarams. The Developer shall to the
greatest extent reasonably possible participate in the available local, State and
Federal affordable housing programs.
6.0 Restrictions on Rental of Affordable Units. The following shall only apply to
Affordable Units offered for rent:
6.1 Rental and Occuoancv of Affordable Units. The Affordable Unit offered for rent
under the terms of this Affordable Housing Agreement shall be rented to and
occupied by an Eligible Household throughout the term of this Agreement.
6.2 Restrictions to Develoaer's Occuaancv. Developer understands and agrees that it
is the purpose and intent of this Affordable Housing Agreement and the Affordable
Housing Ordinance to limit the occupancy of the Affordable Unit to solely an
Eligible Household. As such, Developer agrees not to occupy the Affordable Unft
as a personal residence.
6.3 Mauimum Allowable Rent. The rent that is charged to occupy the rented
Affordable Unit shall not exceed the lower of (1) the affordable rent set forth in the
Affordable Housing Standards for an Eligible Household for a unit with the same
number of bedrooms; or (2) the unrestricted market rent charged for a comparable
unit in the community.
6.4 Verification of TenanYs Initial Eliaibilitv. Prior to the occupancy of the rented
Affordable Unit by a new tenant, the tenanYs income shall be verified and
documented by an Independent Agency to determine that the tenanYs income
does not exceed the maximum allowed under the Affordable Housing Standards.
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6.5 Recertification of Tenant Eliqibilitv. Each year on the anniversary date of the
tenancy, or another date approved in advance by the City, an Independent Agency
shall conduct a recertification of the income and eligibility of the household that
occupies the Affordable Unit.
6.6 Annual Re�ort. With respect to the rented Affordable Unit, Developer shall
provide an Annual Report to the City on or before June 30� of each year, or at
such other interval as mutually agreed by the parties, to enable the City to
determine the Developer's compliance with the terms of this Agreement. The
Annual Report shall include the fol�owing information: (1) the certified income,
household size, length of residency and other demographic and financial
characteristics of the household that occupies the Affordable Unit; (2) the rent
charged for the Affordable Unit; (3) the rent charged for comparable market-rate
units at the Project; and (4) other pertinent information as may be required by the
City. Annual reports shall be submitted to the City from an Independent Agency
verifying compliance with the restrictions on rental of the Affordable Unit,
pursuant to Arroyo Grande Planning Commission Resolution No. 02-1834.
7.0 Other Provisions. The following terms and conditions shall also appiy to this
Agreement.
7.1 Term of AQreement. This Agreement of shall remain in force until expiration of
the term of affordability as set forth in Section 7.2.
7.2 Term of Affordabilitv. The Affordable Unit shall remain affordable for a minimum
period of thirty (30) years from the date of recordation of this Agreement.
7.3 Arrovo Grande Municiaal Code. Unless the text of this Agreement specifies
otherwise, any reference to a Section number is a reference to the Arroyo
Grande Municipal Code.
7.4 No Joint Venture or Partnership. Nothing contained in this Agreement or any
document executed with this Agreement shall be construed as creating a joint
venture or partnership between the City and the Developer.
7.5 Reportina and Comaliance Monitorina. Compliance with the requirements of this
Agreement covering the initial sale or rental of the Affordable Unit shall be
reported to the City by the Developer and certified by a third party such as a
Certified Public Accountant approved by the City Manager. The Developer shall
provide the City with other reports as reasonably required by the City to verify
compliance with this Agreement.
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7.6 Appointment of Other Aqencies. At its sole discretion, City may designate,
appoint or contract with any other public agency, for-profit or non-profit
organization to pertorm the City's obligations under this Agreement.
7.7 Burden to Run with Pro�ertv. The covenants and conditions herein contained
shall apply to and bind the 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 the Property and shall run with and burden the
Property until terminated or released 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 Property. Notwithstanding
anything to the contrary set forth in this Agreement, individual purchasers of units
pursuant to any 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.
7.8 Hold Harmless. Developer will indemnify and hold harmless (without limit as to
amount) City and its elected o�cials, officers, employees and agents in their
official capacity (hereinafter collectively referred to as "Indemnities"), 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 the development of the Property or
the sale of units on the Property, and shall protect and defend Indemnities, and
any of them with respect thereto.
7.9 Insurance. Developer shall obtain, at its expense, comprehensive general
liability insurance for the development of the Property naming Indemnities as
additional named insureds with aggregate limits of not less than Two Million
Dollars ($2,000,000) for bodily injury and death and property damage, including
coverage for contractual liability and products and completed operations
purchased by the Developer from an insurance company duly licensed to engage
in the business of issuing such insurance in the State, with a current BesYs Key
Rating of not less than A-VII, such insurance to be evidenced by an endorsement
which so provides and delivered to the City Clerk prior to the issuance of any
building permit for the development of the Property.
7.10 Recordinq of Aqreement. The parties hereto shall cause this Agreement to be
recorded against the Property in the official Records of the County of San Luis
Obispo.
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7.11 Third Partv Beneficiaries. This Agreement is made for the sole protection and
benefit of City, and their permitted Successors. No other person shall have the
right of action based on any provision of this Agreement.
7.12 Aaolicable Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of California. Any dispute arising out of this
Development Agreement shall be determined by the State Courts of the Counry
of San Luis Obispo.
7.13 Partial Invaliditv or Unenforceabilitv. If any provision of this Agreement shall be
determined by a court to be invalid and/or unenforceable, or if any provision of
this Agreement is rendered invalid or unenforceable according to the terms of
any statute of the State of Caiifornia which became effective after the effective
date of this Agreement, then the remaining provisions of this Agreement shall
nevertheless remain in full force and effect.
7.14 Notices and Corresaondence. Any notices and correspondence concerning this
Agreement shall be sent to the parties at the following address:
City of Arroyo Grande
Attn: City Manager
P. O. Box 550
Arroyo Grande, CA 93421
Le Point Investments LLC
180 WEST LE POINTE ST #B
ARROYO GRANDE, CA 93420
[SIGNATURES TO FOLLOW ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, this Agreement has been duly executed by the undersigned as
of the date set forth below.
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APPROVED AS TO FORM AND LEGAL EFFECT:
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EXHIBIT "A"
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THE LAND REFERRED TO HEREIN BELOW IS SIfUATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBLSPO,
STATE OF CAIIFORNIA, AND LS DESCRIBED AS FOLLOWS: �
PARCEL A:
Lot 8 of Tract 2669, in Me Cdy of Arroyo Grande, County of San Luis Obispo, State of Cali(omia, according to the map nemrded
]uly 7, 2005 in Book 26, Pages 72-73 of Maps, in the of�'ice of the County Recorder of said County. V n� �A DNI �
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CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC
STATE OF OREGON, )
COUNTY OF DESCHUTES_ )
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acknowledged to me that hefsl�ke3t executed the same in hi�eis. authorized capacity(�e�}, and that by
his°•°-%�,. *�,signature(sj on the instrument the person(sj, or the entity upon behalf of which the person(sj, acted,
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he/sk�elt4aey executed the same in hisNae�lEqeir authorized
capacity(i�, and that by his/heNt7aeir signature� on the
instrument the person(e} or fMe entity upon behalf of
which the person(s) 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 ha d nd official seal.
Signatu re _--��
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Though the information 6elow is not required by law, it may prove valuab/e to persons re/ying on Ihe documen[
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Description o1
Title or Type of C
Document Date:
Signer(s) Other l
Capacity(ies) Claimed by Signer(s)
SigneTs Name: S'�'.WQ 2 �c�R/YrLS
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❑ Corporate Officer—Title(s):
❑ Partner — 0 Limited ❑ General
❑ Attorneyin Fact
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Signer Is Representing:
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