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HomeMy WebLinkAbout2024-034239 **This document was electronically submitted to San Luis Obispo County for recording** 2024034239 Elaine Cano RECORDING BY REQUESTED San Luis Obispo-County Clerk-Recorder Q 11/19/2024 11 44 AM First American Title Company Recorded at the request of: FIRST AMERICAN TITLE COMPANY AND WHEN RECORDED MAIL DOCUMENT TO: Titles: 1 Pages:20 Fees:$0.00 City of Arroyo Grande Taxes: $0.00 300 E. Branch Street Total: $0 00 Arroyo Grande, CA 93420 Attn: Community Development Director ORIGINAL DOCUMENT Space Above This Line for Recorder's Use Only A.P.N.: see legal description 4009-6840381-RB This document is recorded for the benefit of the City of Arroyo Grande and is exempt from recording fees pursuant to Sections 6103 and 27383 of the California Government Code. CITY OF ARROYO GRANDE " DENSITY BONUS AND AFFORDABLE HOUSING TRUST FUND AGREEMENT (700 Oak Park Blvd.) SEPARATE PAGE PURSUANT TO GOVT CODE 27361.6 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Arroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 Attn: Community Development Director SPACE ABOVE LINE FOR RECORDER'S USE ONLY EXEMPT FROM RECORDING FEES PURSUANT TO GOVT.CODE§27383 CITY OF ARROYO GRANDE DENSITY BONUS AND AFFORDABLE HOUSING TRUST FUND AGREEMENT (700 Oak Park Blvd.) THIS DENSITY BONUS AND AFFORDABLE HOUSING TRUST FUND AGREEMENT("Agreement") is dated as of MoVerr p/9/y- I ell ,2024, and is made by and between the CITY OF ARROYO GRANDE, a California municipal corporation("City"),and the Housing Authority of the City of San Luis Obispo, a public agency corporate and politic (together with its successors and/or assigns, "Owner"). RECITALS A. State Density Bonus Law allows a density bonus,concessions,and other regulatory incentives when a developer proposes to provide rental housing below market rates. B. City's Inclusionary Housing Ordinance requires multi-family rental projects proposing two or more new units to provide a specified number of units below market rates. The Inclusionary Housing Ordinance also allows developers to pay a fee in-lieu of providing the required affordable units. In-lieu fees collected by City are deposited into the Affordable Housing Trust Fund—Fund 232 ("Affordable Housing Trust Fund"). C. Owner and/or its affiliates propose the construction and operation of a mixed-use development consisting of three separate buildings with a total of 63 multi-family dwelling residential units ("Residential Units"), a community room, and leasable commercial space, as more specifically defined in Section 2 as the "Project," on that certain real property specifically defined as the"Property"in Section 2 of this Agreement. D. Owner desires to rent 100 percent of the Project's Residential Units(excluding one unrestricted manager's unit)to Low Income Households,which are more specifically described in Section 2 of this Agreement as the "Affordable Units." Renting the Affordable Units fulfills Owner's obligations under the Inclusionary Housing Ordinance and qualifies the Project for increased density under State Density Bonus Law. -1- 65501.00001\42937002.1 i E. On May 18, 2021, City's Planning Commission adopted Resolution No. 21-2345 approving: (i) the Project, including Lot Merger No. 21-001 and Conditional Use Permit No. 21- 001; (ii) a density bonus of 20 units ("Density Bonus") over the Project's base density of 43 units ("Base Project"); (iii) a waiver for the Project to exceed the maximum allowable height; and(iv) a concession to reduce the Project's parking requirement(collectively,the"Project Approvals"). F. Resolution No. 21-2345 specified that the Project Approvals would expire on May 18, 2023 unless, prior to that date, Owner obtained a building permit or applied for an extension. Owner timely applied for a one-year extension, which was granted by the Planning Commission on May 2, 2023 via Resolution No. 23-2380. G. In July 2023, Owner informed City that Owner was facing a funding gap of approximately $1,000,000.00 to construct the Project. Causes of the funding gap include higher interest rates and inflationary price increases that occurred after the Project was originally approved. To bridge the funding gap, Owner has: (i) applied for grant/loan funding from the State Department of Housing and Community Development Multifamily Housing Program; (ii) represented to City that Owner will apply for tax credits through California's Low-Income Housing Tax Credit Program in the spring of 2024; and (iii) requested City funding from the Affordable Housing Trust Fund. In response,on July 25,2023,the City Council of Arroyo Grande ("City Council") approved an allocation from the Affordable Housing Trust Fund in a not-to- exceed amount of $448,370.37 to Owner to defray City costs, including plan review and inspections,development impact fees,utility connections, and State mandated fees for the Project. H. In October 2024, Owner informed City that Owner was facing an additional outstanding funding gap of$1,000,000.00 for the Project. In response, on October 22, 2024, the City Council approved an additional allocation from the Affordable Housing Trust Fund in a not- to-exceed amount of$630,000.00 that City would provide Owner as a grant. I. Section 16.80.070 of the Inclusionary Housing Ordinance provides that the Affordable Housing Trust Fund must be"solely used to increase the supply of affordable housing units" in the City. Among other things, it authorizes City to utilize the Affordable Housing Trust Fund to facilitate the"provision of new affordable units." (Id.) J. City recognizes the importance of affordable housing opportunities for its residents, especially those at risk of becoming displaced or unhoused. With this in mind, City desires to allocate funds from the Affordable Housing Trust Fund to facilitate the development of the Project. So utilizing the Affordable Housing Trust Fund is consistent with the Inclusionary Housing Ordinance because the Project, once completed, will increase the City's affordable housing supply by an additional 62 units (i.e., the Affordable Units). K. City has determined that utilizing the Affordable Housing Trust Fund as set forth herein is reasonably related to a legitimate governmental purpose in that the development and operation of the Project will provide numerous public benefits, including: (i) increased affordable housing opportunities for individuals and households with lower incomes (who are especially at risk of becoming displaced or unhoused due to the rising cost of living); (ii) the generation of economic activity and tax revenue(which may be used to fund public services and facilities) from -2- 65501.00001\42937002.1 the Project's residents and commercial space; (iii)the potential attraction of additional businesses and investment in the City due to increased Project-related economic activity; and (iv) the ability for lower wage earners and their families to live and work in closer proximity to City employers. Based upon these and other public benefits, City finds that the public purposes of the Agreement outweigh any private benefit to private persons or entities. L. Given the foregoing, City and Owner have entered into this Agreement to: (i) ensure that Owner constructs and operates the Project in a manner that will ensure the provision of the required Affordable Units in exchange for the Density Bonus; and (ii) to memorialize the terms and conditions governing City's allocation of funds from the Affordable Housing Trust Fund to facilitate the development of the Project. AGREEMENT 1. Recitals. The Recitals set forth above are true and accurate, and incorporated herein. 2. Definitions. For purposes of this Agreement, the terms listed below shall have the meanings thereafter specified: a. Affordable Housing Trust Fund. Defined in Recital B. b. Affordable Rent. Gross monthly rent for each Affordable Unit, not exceeding 30%times 60% of the Area Median Income, adjusted for family size appropriate to the unit. c. Affordable Units. The Project's 62 multi-family dwelling residential units that will be offered exclusively at an Affordable Rent to Low Income Households pursuant to this Agreement. The Project's 63rd residential unit is an unrestricted manager's unit and is not considered an Affordable Unit under this Agreement. d. Area Median Income. The median income as determined and published annually by the California Department of Housing and Community Development and defined in California Health and Safety Code section 50053. For purposes of this Agreement, the Area Median Income is the median income in San Luis Obispo County, California. e. City. The City of Arroyo Grande, California. f. City Contribution. City's cumulative allocation of both(1) City Council's July 25, 2023 approval of an amount not-to-exceed $448,370.37 from the Affordable Housing Trust Fund to facilitate the development of the Project by defraying otherwise applicable City- specific Project costs, and (2) City Council's October 22, 2024 approval of an amount not-to- exceed $630,000.00 from the Affordable Housing Trust Fund as more specifically described in Section 4 of this Agreement to help cover the Project's outstanding funding gap. The cumulative City Contribution is $1,078,370.37. -3- 65501.00001\42937002.1 g. De sity Bonus. The density bonus granted to the Project through the Project Approvals, as more specifically described in Recital E of this Agreement. h. Inclusionary Housing Ordinance. Chapter 16.80 of the City's Municipal Code. i. Low Income Households. Households whose gross income doesnot exceed 80% of the Area Median Income, as adjusted for household size. j. Owner. The Housing Authority of the City of San Luis Obispo, California. k. Project.The 63 multi-family residential dwelling units,a 1,342 square-foot community room, and 1 178 square feet of commercial space to be built on the Property. The Project includes all required or associated on-site and off-site improvements, hardscape improvements, parking areas and landscaping improvements to the Property, in accordance with the Project Approvals, the plans and specifications approved by the City, any conditions imposed by the City in issuing the Project Approvals and any other development entitlements related to the Project and applicable law. 1. Project Records. Information regarding rents, principal residency requirement, occupancy status, household and income characteristics of tenants of designated Affordable Units, services provided as part of the housing service such as parking, utilities, and other information as may be reasonably required for monitoring compliance with the use, occupancy or operation oilf.the Affordable Units, including Income Certification Forms completed by applicants or tenants of the Project. m. Project Approvals. Has the meaning set forth in Recital B of this Agreement. n. Property. That certain real property located within the City of Arroyo Grande, County of San Luis Obispo, California, specifically described in the legal description attached as Exhibit "A" and incorporated herein by reference. o. Qualifying Household. A household that intends to reside in one of the Affordable Units and whose income does not exceed the maximum income allowable for a Low Income Household. p. State Density Bonus Law. Chapter 4.3 of Division 1 of Title 7 of the California Government Code (Gov't Code §§ 65915 et seq.). q. Term. The period of 55 years from the date of recordation of this Agreement in the Official Records of San Luis Obispo County. 3. Agreement to Record. Owner agrees that this Agreement shall be recorded against the Property in the official records of the County of San Luis Obispo. 4. Allocation of Affordable Housing Trust Fund. -4- 65501.00001\42937002.1 a. Subject to subsections (4)(b) — (d) below, City hereby agrees to contribute $1,078,370.37 from the Affordable Housing Trust Fund to facilitate the development of the Project ("City Contribution"). City shall disburse the City Contribution to Owner by December 2,2024, or as soon thereafter,provided that both of the following have occurred: (1) Owner has submitted a request to City in writing for the City Contribution, along with supporting invoices and documentation; and (2) City has approved Owner's request. Said disbursement shall be via check and delivered to a location directed by Owner in writing. b. The City Contribution will be utilized to cover the costs of Project-related fees imposed by City and the State of California, including but not limited to, plan review fees, inspection fees, utility connection fees, and development impact fees, and to cover some of the outstanding budget shortfall associated with the Project by ensuring the continued affordability of the Affordable Units over the Term (the"Authorized Uses"). Except as otherwise authorized by City in writing and at its sole and absolute discretion, the City Contribution may not be used for any other purposes.Notwithstanding the foregoing, City acknowledges and agrees that Owner will loan the proceeds of the City Contribution to Arroyo Terrace,L.P.,a California limited partnership, the owner of the Project, provided the Owner will ensure the City Contribution is used for the Authorized Uses. c. Owner acknowledges and agrees that it is responsible for all Project-related costs not covered by, or in excess of, the City Contribution. Owner further agrees that, upon completion of the Project, any remaining portion of the City Contribution will be reallocated back to the Affordable Housing Trust Fund; Owner will not be entitled to retain such funds. Furthermore, if the Project is not completed, Owner will repay the City Contribution in-full back to City. d. In consideration of receiving the City Contribution, Owner covenants and agrees that: (i) Owner's Project-related promotional materials and construction signage will identify City as a co-sponsor of the Project; and (ii) Owner will reserve and restrict at least 49 percent of the Affordable Units for the use and residential occupancy of Qualifying Households. City and Owner acknowledge and agree that this subsection(4)(d)is a condition of Owner's receipt of the City Contribution and does not replace or reduce Owner's obligations under any other provision of this Agreement, including Section 5 below. 5. Reservation of Affordable Units for Affordable Rental Housing. Notwithstanding any other provision of this Agreement and in accordance with State Density Bonus Law: a. Owner covenants and agrees to reserve and restrict 100 percent of the Affordable Units for the use and residential occupancy of those who, at the time of initial occupancy and continuously thereafter (subject to the other provisions of this Agreement), are members of a Qualifying Household. b. Owner covenants and agrees, for the benefit of City, to develop, own, manage and operate, or cause the management and operation of, the Project to include the -5- 65501.00001\42937002.1 Affordable Units as residential rental housing occupied or available for occupancy to Qualifying Households at an Affordable Rent and for no other purposes. c. Owner will not knowingly permit the Affordable Units to be used on a transient basis and will not lease or rent the Affordable Units for a period of less than 12 months. The Affordable Units will not, at any time,be leased or rented for use as a hotel,motel,time share, dormitory,fraternity house,sorority house,rooming house,hospital,nursing home,sanitary or rest home. 6. Affordable Rent. The monthly rent charged to a Qualifying Household for the occupancy of the Affordable Units may never exceed the Affordable Rent in accordance with this Agreement. a. Rent Increases. Rent for the Affordable Units may be increased only once in any 12 month period, based on changes in Area Median Income; provided that the rent for the Affordable Units shall never exceed an Affordable Rent for the Qualifying Household occupying the Affordable Unit. All rent increases must be provided to Qualifying Households in writing. b. Determination of Household Income. Determination of Qualifying Household income shall be made by Owner at the time of initial application by an individual or family for occupancy of each of the Affordable Units. At the time of initial application, Owner shall require an applicant to complete an income certification form in a form as approved by the City (the "Income Certification Form") and certify the accuracy of the information provided on such form. Additionally, on the renewal of a lease for each Affordable Unit, or if the lease is for a term greater than twelve months on an annual basis, the Owner shall require the Qualifying Household occupying the Affordable Unit to recertify the Qualifying Household's income on an Income Certification Form. c. Verification. Owner shall make a good faith effort to verify the accuracy of income information provided in any Income Certification Form by an applicant for occupancy of the Affordable Unit or by a recertifying Qualifying Household occupying the Affordable Unit,by taking one or more of the following steps, as reasonably required or indicated: i. Obtain an income tax return and copy of each W2 Wage and Earnings Statement for the most recently concluded income tax year; ii. Contact a credit reporting agency or conduct a similar search; iii. Obtain an income verification form from the applicant's or the Qualifying Household's current employer(s); iv. Obtain an income verification form from the United States Social Security Administration or the California Department of Social Services, if the applicant or the Qualifying Household receives assistance from either of such agencies; or -6- 65501.00001\42937002.1 v. If the applicant or an adult member of a Qualifying Household is unemployed and has no such income tax return, obtain another form of independent verification. d. Evidence. For purposes of this Section, Owner may conclusively.rely upon the evidence of the age of a person as presented in a valid California Driver's License or other form of identification issued by the State of California or the United States Government that includes a date of birth and a photograph of the subject person. All such verification information shall only be obtained by Owner after obtaining the applicant's or the Qualifying Household's written consent for the release of such information to Owner. Failure to consent in writing to the release of such income verification information to Owner may disqualify an applicant for occupancy of an Affordable Unit or be grounds for termination of Qualifying Household's occupancy of an Affordable Unit. 7. Tenant Selection Policies and Criteria. Owner shall adopt written tenant selection policies and criteria applicable to the Affordable Unit that: a. Are consistent with the purpose of providing affordable rental housing for Qualifying Households at an Affordable Rent; b. Are reasonably related to tenant eligibility and ability to perform the obligations of the lease for an Affordable Unit; c. Provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; d. Give prompt written notice to any rejected applicant of the grounds for rejection; e. Provide for all of the Affordable Units to be available for occupancy on a continuous basis to Qualifying Households at an Affordable Rent; f. Do not give preference to any particular class or group of persons in leasing or renting the Affordable Unit except to the extent that a tenant must be a Qualifying Household; The tenant selection policies and criteria prepared in accordance with this Section shall be subject to approval by the City. 8. Owner Covenant Regarding Lease of Affordable Units. Owner, for itself, its successors, assignees and affiliates, covenants and agrees that, when the Affordable Units are rented or leased,the rental or lease of the Affordable Unit shall be accomplished through a written lease agreement and all of the following restrictions shall apply: a. Owner shall provide a legible copy of this Agreement to each prospective tenant of each Affordable Unit,prior to entering into a lease with such tenant. -7- 65501.00001\4293 7002.1 • b. The leases for the Affordable Units shall expressly state that the leases are subject and subordinate to this Agreement and shall incorporate each and every provision of this Agreement, either expressly or by reference. c. Owner shall not lease an Affordable Unit to any occupant with any family relationship to Owner or who owns, directly or indirectly, any interest in the Project or the Property. For purposes of this section, indirect ownership by an individual shall mean ownership by a family member, ownership by a corporation, partnership, estate or trust in proportion to the ownership or beneficial interest in such corporation, partnership, estate or trust held by the individual or a family member, and ownership, direct or indirect,by a partner of the individual. d. The lease for each Affordable Unit shall not contain any of the following provisions: i. An agreement by the Qualifying Household to admit guilt or to not oppose the entry of a judgment in favor of the Owner in a lawsuit brought in connection with the lease; ii. An agreement by the Qualifying Household that the Owner may take,hold or sell personal property of any member(s) of the Qualifying Household,without notice to the Qualifying Household and a court decision on the respective rights of the Owner and the member(s) of the Qualifying Household, other than an agreement by the Qualifying Household concerning disposition of personal property remaining in the Affordable Unit after the Qualifying Household has moved out of the Affordable Unit; iii. An agreement by the Qualifying Household not to hold the Owner or its agents legally responsible for any action or failure to act,whether intentional or negligent; iv. An agreement by the Qualifying Household that the Owner may institute a lawsuit, involving or affecting the Qualifying Household or any of the Qualifying Household's members,without notice to the Qualifying Household or any affected member; v. An agreement by the Qualifying Household that the Owner may evict the Qualifying Household or any of the Qualifying Household's members without instituting a civil court proceeding in which the Qualifying Household or any affected member of the Qualifying Household has an opportunity to present a defense, or before a court decision on the respective rights of the Owner and the Qualifying Household or any affected member of the Qualifying Household; vi. An agreement by the Qualifying Household to waive any right to a trial by jury; vii. An agreement by the Qualifying Household to waive the Qualifying Household's right to appeal or to otherwise challenge a court decision in connection with the lease; -8- 65501.00001\42937002.1 viii. An agreement by the Qualifying Household to pay attorney's fees or other legal costs, even if the Qualifying Household wins in a court proceeding by the Owner against the Qualifying Household;provided,however,the Qualifying Household may be obligated to pay reasonable attorney's fees and other legal costs, if the Qualifying Household loses such a legal action; ix. An agreement by the Qualifying Household to pay one or more security deposits (or the equivalent) totaling in excess of the amount of one month's rent for such Affordable Unit. 9. Retention of Project Records. Owner shall prepare and maintain complete and accurate Project Records for so long as this Agreement remains in effect. The Owner shall, at all times following the initial lease of the Affordable Units,maintain, safe and intact, all of the Project Records for a period of not less than six years from the generation of such Project Records. From time to time,upon request from the City,the Owner shall make all Project Records,whether in the custody or control of the Owner or its Affiliates, available to the City, the City's auditor, representative or agent for examination and copying at any reasonable time, on 15 calendar days advance notice. 10. Continuous Operation Covenant. Owner covenants and agrees to, for the benefit of City, cause the Project to be continuously operated in accordance with the provisions of this Agreement for the length of the Term. 11. Administration Fee. Owner agrees to pay such fees and deposits as City Council may adopt by resolution to offset the administrative cost of the City performing the duties and responsibilities described in this Agreement. 12. Federal and State Laws. Notwithstanding the above provisions, nothing contained herein shall require Owner or City to do anything contrary to or refrain from doing anything required by federal and state laws or regulations applicable to the construction, management, maintenance, and rental of low and very low income housing units in the City. 13. Prohibition Against Discrimination. Owner shall not discriminate against any tenant or potential tenant on the basis of sex, color, race, religion, ancestry, national origin, age, pregnancy, marital status, family composition, sexual orientation, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the above mentioned reasons. 14. Indemnification. Owner shall defend, indemnify and hold harmless City and its officers,agents,employees,representatives,and volunteers(collectively,"Indemnitees")from and against any loss, liability, claim or judgment relating in any manner to this Agreement. Owner shall not be required to indemnify and hold harmless Indemnitees for liability attributable to the active negligence or willful misconduct of Indemnitees, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where an Indemnitee is shown to have been actively negligent and where Indemnitees' active negligence accounts for only a percentage of the liability involved, the -9- 65501.00001\42937002.1 obligation of Owner will be for that entire portion or percentage of liability not attributable to the active negligence of Indemnitees. 15. Prevailing Wage. Owner shall assume any-and all responsibility and be solely responsible for determining whether or not laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California pursuant to California Labor Code section 1720 et seq., or pursuant to applicable federal law. Owner will indemnify and hold City harmless from all claims or damages arising from compliance with prevailing wage laws. 16. City's Right to Inspect Affordable Units and Documents. City may inspect the Affordable Units during normal business hours, upon 48 hours' notice, for so long as this Agreement remains in effect,to determine Owner's compliance with this Agreement. 17. Burden to Run with Land. a. The covenants and restrictions set forth herein are covenants running with the land and shall pass to and be binding upon all parties having any interest in the Project and/or the Property. Each and every contract, deed, lease or other instrument covering, conveying or otherwise transferring the Property or any interest therein, as the case may be(each a"Contract"), shall conclusively be held to have been executed,delivered and accepted subject to this Agreement regardless of whether the other party or parties to such Contract have actual knowledge of this Agreement. b. All covenants and restrictions contained herein without regard to technical classification or designation shall be binding upon Owner for the benefit of City and Qualifying Households and such covenants and restrictions shall run in favor of such parties for the entire period during which such covenants and restrictions shall be in force and effect, without regard to whether City is an owner of any land or interest therein to which such covenants and restrictions relate. 18. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of City and Owner, and their respective successors, owners and assigns. City reserves the right to designate another public agency to perform City's obligations or to exercise City's rights and options under this Agreement. 19. Notices. All notices required herein shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt and shall be deemed to be effective as date received or the date delivery was refused as indicated on the return receipt, as follows: If to City: City of Arroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 Attn: City Manager With a copy to: Best Best&Krieger LLP -10- 65501.00001\42937002.1 300 South Grand Ave. • 25th Floor Los Angeles, CA 90071 Attn: Isaac Rosen, City Attorney If to Owner: Housing Authority of.the City of San Luis Obispo 487 Left Street San Luis Obispo, CA 93406 Attention: Executive Director And: Gubb &Barshay, LLP 235 Montgomery Street, Suite 1110 San Francisco, CA 94104 Attention: Lauren Fechter, Esq. U.S. Bancorp Community Development Corporation Project No. 31141 1307 Washington Avenue, Suite 300 Mail Code: SL MO RMCD St. Louis,Missouri 63103 Attention: Director of LIHTC Asset Management With a copy to: Kutak Rock LLP 1650 Farnam Street Omaha,NE 68102 Attn: Jill Goldstein,Esq. 20. Default. Failure or delay by either party to perform any term or provision of this Agreement, which is not cured within 30 days after receipt of notice from the other party, or such longer period as may be reasonably necessary, provided such defaulting party has commenced a cure within such 30 day period and is diligently prosecuting such cure to completion, constitutes a default under this Agreement.. The party who so fails or delays must immediately commence to cure, correct or remedy such failure or delay, and shall complete such cure, correction or remedy with due diligence. The injured party shall give written notice of default to the party in default specifying the default complained of by the injured party. Except as required to protect against further damages,the injured party may not initiate proceedings against the party in default until 30 days(or such longer period as described above)after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. -11- 65501.00001\42937002.1 Owner's limited partner shall have the right, but not the obligation, to commence any cure on behalf of Owner and City agrees to accept any cure by Owner's limited partner as if it was tendered by Owner. • 21. Remedies. a. Any individual who sells or rents(including subleasing) an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to City all monetary amounts so obtained. b. City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this Agreement, including but not limited to: i. Actions to revoke, deny or suspend any permits and/or certificate of occupancy; and ii. Actions for injunctive relief or damages. 22. Governing Law. The laws of the State of California shall_govern this Agreement. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of San Luis Obispo, State of California. 23. Attorney's Fees. In any action brought to declare the rights granted herein or to enforce or to interpret any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney's fees in an amount determined by the court. 24. No City Responsibility for Project. City shall have no responsibility for the construction, installation,management, operation or maintenance of the Project. 25. Entire Agreement. The text herein, including attachments, constitutes the entire agreement between the parties. Each party to this Agreement acknowledges that no representations,inducements,promises or agreements,orally or otherwise,have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statement or promise not contained in this Agreement shall not be valid or binding. This Agreement may be amended only by written instrument signed by both City and Owner. 26. Non-Waiver. Failure to exercise any right City may have or be entitled to, in the event of default hereunder shall not constitute a waiver of such right or any other right in the event of a subsequent default. 27. Further Assurances and Recordation. Owner shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form and do such further acts as may be necessary, desirable or proper as City shall from time to time find necessary or appropriate to effectuate its purpose in entering this Agreement. -12- 65501.00001\42937002.1 28. Enforcement. City shall have the power to enforce this Agreement and no other person or entity shall haveany right or power to enforce any provision of this Agreement on behalf of City, or to compel City to enforce any provision of this Agreement against Owner, the Project, the Property or any Residential Unit, including the Affordable Units. 29. Amendment. This Agreement may be amended only by a written instrument signed by both Owner and City. 30. Severability. If any term or provision of this Agreement or its application to any person or circumstance shall to any extent be invalid or unenforceable, then the remainder of this Agreement, or the application of such term or provision to persons or circumstances, other than those as to which it is invalid or unenforceable, shall not be affected by such invalidity. All remaining provisions of this Agreement shall be valid and be enforced to the fullest extent allowed by law. [Signatures on next page] SIGNATURE PAGE -13- 65501.00001\42937002.1 TO DENSITY BONUS AND AFFORDABLE HOUSING TRUST FUND AGREEMENT (700 Oak Park Blvd.) IN.WITNESS WHEREOF, Owner and City have signed and entered into this Agreement by and through the signatures of their respective authorized representative(s), as set forth below: CITY: OWNER: HOUSING AUTHORITY OF THE CITY CITY /' a GeaOF SAN LUIS OBISPO, a California municipal corporation a public body, corporate and politic By: By: City Manager iv' P i-i- e w no inef Clover Robinson, Deputy Director of Finance ATTEST: City rk M c+5c,1� -14- 65501.00001\42937002.1 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 Sct.Cs \sy� OnV-(2_, -OSf2O21-1 before me,c�es‘C r t St , Date Here Insert Name and Title of the ' er personally appeared ,�Ni; Names)o igner(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. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing •• >„ JEssicaMarsoN paragraph is true and correct. NotaryPublic•California •- 1 San is Obispo County 31 WITNESS my hand and official seal. Commission#239500 "t..5%' My.Comm.Expires Mar 22,2026 Signature Place Notary Seal and/or Stamp Above Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document ASA � cc�� ,,,,�� Title or Type of Document:- -4-4- 1-Nus Document Date: `\\VA _ 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): 0 Corporate Officer-Title(s): ❑ Partner- 0 Limited 0 General 0 Partner- 0 Limited 0 General ❑ Individual 0 Attorney in Fact 0 Individual 0 Attorney in Fact ❑ Trustee ❑ Guardian of Conservator 0 Trustee 0 Guardian of Conservator ❑ Other: 0 Other: Signer is Representing: Signer is Representing: ©2017 National Notary Association — 15- TO DENSITY BONUS AND AFFORDABLE HOUSING TRUST FUND AGREEMENT (700 Oak Park Blvd.) IN WITNESS WHEREOF, Owner and City have signed and entered into this Agreement by and through the signatures of their respective authorized representative(s), as set forth below: CITY: OWNER: HOUSING AUTHORITY OF THE CITY OF CITY , SAN LUIS OBISPO, a California municipal corporation a public body, corporate and politic By By: Clover Robinson, Deputy Director of Finance City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: BEST BEST &KRIEGER LLP By: , City Attorney 65501 00002\41499932.6 - (-0 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. OFFICIAL CALIFORNIA NOTARIAL CERTIFICATE Acknowledgment STATE OF CALIFORNIA ss COUNTY OF SAN LUIS OBISPO) On A/ov m(_e_jr— )q) a0 meq, before me,Victoria L. Culman, Notary Public, personally appeared Clover Robinson,who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within 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. VICTORIA L.CULMAN COMM. 2408241 CV7 7:4;„..e.,,:-?; NOTARY PUBLIC•CALIFORNIA > +, SAN LUIS OBISPO COUNTY'' ""T Ex Comm. .JUNE 2026_ ff Victoria L. an, Notary Public — 1-1— EXHIBIT "A" TO DENSITY BONUS AND AFFORDABLE HOUSING TRUST FUND AGREEMENT (700 Oak Park Blvd.) Property Legal Description The Real property in the City of Arroyo Grande, County of San Luis Obispo, State of California, being Parcel 3 of Parcel Map AG 66-112 as shown on the map recorded in Book 1 of Parcel Maps at Page 63, and Parcel 1 of lot line adjustment AGAL 97-057 as described in Document Number 1997-021907, Parcel 2 of lot line adjustment AGAL 97-057 as descried in Document Number 1997-021908 and Parcel 3 of lot line adjustment AGAL 97-057 as described in Document Number 1997-021909, on file in said county Recorder's Office,more particularly described as follows: Beginning at the southerly corner of said Parcel 3 of Parcel Map AGA 66-112, said point being on the northerly Right of Way of Chilton Street as shown on the Record of Survey recorded in Book 129 at Page 31 of Records of Surveys on file in said county Recorder's Office; Thence along the southerly lines of said Parcel 3 of Parcel Map AG 66-112, the southerly line of Parcel 3 of said Lot Line Adjustment AGAL 97-057 and the southerly line of Parcel 1 of said Lot Line Adjustment AGAL 97-057, and said Record of Survey,North 80° 18' 00"West 195.72 feet; Thence North 82° 44' 49" West 222.34 feet to the westerly corner of said Parcel 1 of Lot Line Adjustment AGAL 97-057 said point also being on the easterly right of way of Oak Park Boulevard; Thence along the easterly right of way of Oak Park Boulevard, the westerly line of said Parcel 1 and the westerly line of said Record of Survey, North 38° 14' 04" East 6.84 feet to the beginning of a 20.00 foot radius curve concave easterly, from said beginning of curve the radius point bears North 77° 43' 24"East; Thence along the arc of said curve through a central angle of 36° 39' 41" an arc distance of 12.80 feet to the beginning of a non-tangent 740.00 radius curve concave westerly from said beginning of curve the radius point bears North 66° 18' 24"West, Thence along the arc of said curve through a central angle of 10°26' 27"an arc distance of 134.85 feet to the beginning of a tangent 30.00 foot reverse curve; Thence along the arc of said reverse curve through a central angle of 67° 55' 34" an arc distance of 35.57 feet to a point on the southerly right of way of El Camino Real; Thence along said southerly right of way, the northerly line of said Parcel 1 lot line adjustment AGAL 97-057, the northerly line of said Parcel 2 of lot line adjustment AGAL 97-057, and the 65501.00001\42937002.1 - I6- northerly line of said Record of Survey North 81° 10' 43" East 59.12 feet to the beginning of a 1150.00 foot radius curve concave southerly; Thence along the arc of said curve through a central angle of 18° 50' 15"an arc distance of 378.09 feet to the easterly corner of said Parcel 2 of lot line adjustment AGAL 97-057; Thence along the easterly line of said Parcel 2 of lot line adjustment AGAL 97-057,and said Parcel 3 of Parcel Map AG 66-112; South 9° 22' 19"West 10.15 feet; Thence South 22°29' 01"West 41.06 feet; Thence South 22° 21' 53"West 201.78 feet to the Point of Beginning. (City of Arroyo Grande Certificate of Compliance For Lot Merger Case No.21-001 -Doc.#2024- 018696) APNs 077-011-010, 077-011-011, 077-011-012 and 077-011-013 65501.00001\42937002.1 - Ol