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Home My WebLink AboutAffordable Rental Housing Agreement* s : r--� This document is recorded for the benefit of the City of Arroyo Grande and is exempt from recording fees pursuant to Govemment Code Sections 6103 and 27383 RECORDING REQUESTED BY: City of Arroyo Grande WHEN RECORDED MAIL TO: City of Arroyo Grande Community Development Director 214 East Branch Street P. O. Box 550 Arroyo Grande, CA 93421 SR JULIE RODEW� 6I2912004 San Luis Obispo County-ClerklRecorder 1D;07 AM Recorded at the requssl of Public Titles: 1 Pages: 5 uoc#: 2004056809 AFFORDABLE RENTAL HOUSING AGREEMENT Feas 19.00 T �� 0.00 Otl�srs � � PAtD $19.00 THIS AGREEMENT is made and entered into this ��day of May, 2004, by and be�n the CITY OF ARROYO GRANDE (the "City") and SONDRA J. HOGAN, Trustee of the Exsmpt�n Trust under the Hogan Family Trust Dated Oet. 6, 1992 (collectively referred to as the "Owner'), cotlectively refeRed to as °the Parties." � A. Owner is the owner of certain real property described as Parcel "D" of Parcel Map AG 01-139 in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to the Map filed ?'30-0�( _, in Book r�/, Page�(of Parcel Maps (referred to as the "Property"); and B. As a condition of Approval, the owner is required to provide Twenty-Five percent (25%) of the residential units on Parcel "D" to be reserved for low and moderate- income renters through a 30-year deed restriction recorded on the property, or equivalent restrictive covenant. Annual reports shall be submitted to the City from an Independent Agency verifying compliance to the restriction, pursuant to Arroyo Grande Planning Commission Resolution No.02-1834. NOW, THEREFORE, the parties acknowledge and agree as follows: _; � . •� 1.01. "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. 1.02. °Affordable re�t" means housing affordable, based upon monthly rent, to moderate-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. s� � � ^ � 1.03. "Affordable UniY' means an individual housing unit that is subject to this Agreement. 1.04 "Eligible Household" means a person or family that meets one of the definitions set forth in Sections 1.06 and 1.07 of this Agreement. 1.05. ° Independent Agenc�' means the Housing Authority of the City of San Luis Obispo or another qualified entity that has been approved in advance by the City. 1.06. "Low Income Household" means a person and family whose income does not exc�ed 80 percent of the area median income for the County of San Luis Obispo, adjusted for family size, as set forth in the Affordable Housing Standards. 1.07. "Moderate Income Household" means a person and family whose income dces not exceed 120 percent of the area median income for the County of San Luis Obispo, adjusted for family size, as set forth in the Affordable Housing Standards. : - •, 2.01. NUMBER, SIZE AND LOCATION OF AFFORDABLE UNIT(S). Owner agrees to r�nt one unit(s) of the Property at an Affordable Rent to an Eligible Household during the term of this Agreement. The Affordable Units that are subject to this Agreement are identifred as: 1260 A Poplar Street, Arroyo Grande. 2.02. RENTAL AND OCCUPANCY OF AFFORDABLE UNIT(S). Each Affordable Unit shall be rented to and occupied by an Eligibie Household throughout the term of this Agreement. 2.03. MAXIMUM ALLOWABLE RENT. The rent that is charged to occupy each 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. 2.04. VERIFICATION OF TENANT'S INITIAL ELIGIBILITY. Prior to the occupancy of each Affordable Unit by a new tenant, the tenant's income shall be verified and documented by an Independent Agency to determine that the tenant's income does not exceed the maximum aflowed ur�der the A!€cxdable Housing;Standards. 2.05. RECERTIFICATION OF tenancy, or another dat conduct a recertification Affordable Unit. ARTI - F � � N RA TENANT ELIGIBILITY. Each year on the anniver�ary d�te of the e approved in advance by the City, an Independent Agency shall of the income and eligibility of the household that occupies each 3.01. TERM OF AGREEMENT: The term of this Agreement shall be thirty (30) years commencing upon its recordation. 3.02. RECORDING OF AGREEMENT. The parties hereto shall cause this Agreement to be recorded against the Property in the official Records of the County of San Luis Obispo. -2- ' ' '".� '� � 3.03. COVENANTS TO RUN WITH �HE LAND. The City and the Owner hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall bind all successors in title to the Property, provided, however, that on the expiration of the Agreement Term said covenants and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveymg the Property or any portion thereof, shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such oovenants or restrictions are set forth in such contract, deed or other instrument, unless the City expressly releas�s such conveyed portion of the Property from the requirements of this Agreement. 3.04. ENTIRE AGREEMENT AND MODIFICATION: This Agreement sets forth the full and entire understanding of the parties regarding the matter set forth herein. Any other prior or existing understandings or agreements by the parties, whether formal or informal, regarding any matters are hereby superseded or terminated in their entirety. No changes, amen�lrr�ents, or alterations shall be effective unless in writing and signed by all parties hereto. This Agreement may be amended at any time by a mutual written agreement of the parties, subject to City Manager approval, consistent with the condition� of approval or as otherwise modified by Planning Commission or City Council approval. The Owner spec�cally acknowledges that in entering into and executing this Agreement, it relies solely upon the provisions contained in the Agreement and no others. 3.05. ANNUAL REPORT: The Owner 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 enab� the City to Owner's complianee with the terms of this Agreement. The Annual Report shsA include fhe following information: the certified income, household size, length of r+�sidency and other demographic and financial characteristics of the household that occupies each Affordable Unit; the rent charged for each Affordable Unit and the rent charged for comparable market-rate units at the Property; and other pertinent information as may be required by the City. 3.06. Notices required to be sent to the City hereunder shall be sent by certified mail, return receipt requested, to the following address: City Manager City of Arroyo Grande 214 East Branch Street P. O. Box 550 Arroyo Grande, CA 93421 3.07. The Owner hereby specifically acknowledges and agrees to be bound by the covenants respecting the occupancy and affordability of the Property contained herein. ;� I i � �_ __ _ -3- � � � � � �^� � ...� IN WITNESS WHEREOF, this Agreement has been duly executed by the undersigned as of the date set forth below. . � 0 � -�- � � DATE c DATE CITY: STE N ADAMS, City Manager APPROVED AS TO FORM AND LEGAL EFFECT: TIM THY J. C MEL ' Attomey -4- , ,. � STATE OF CALIFORNIA ,.—. COUNTY OF SAN LUIS OBISPO ) ) SS ) On J' �� before me, E�c � (��T��c� , N��v �r e�� , ,--,,� � personally appeared Steven Adams personally known to me to be the person whose name is subscribed to the � y within instrument and acknowledged to me that he CarrnMNon � iZM9�4 executed the same in his authorized capacity and that by �� his signature on the instrument the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signatur v��"�� STATE OF CALIFORNIA ) )SS COUNTY OF SAN LUIS OBISPO ) On before me, , � personally appeared personally known to me ( satis€asteyr-e�ridence) to be the person(s) whose name(s) s�T re subscribed to the within instrument and acknowledged to me that he�hey executed the same in hi r their authorized capacity(ies) and that by hi er eir signature(s) on the instrument the person(s), or e entity upon behalf of which the person(s) acted, executed the instn�ment. WITNESS my hand and official seal. . -'�1� � �� -5- (The above area for official notarial seal) � K.A. KLEMPKE� � COMM. K1458440 � " ► NOTARY PUBIIC•CALIfORNIA � $AN LUIB OB18PC COUNTY My Comm. EKpIn� GnmO�r 16, 2D07 (The above area for official notarial seal) � � �iU��