HomeMy WebLinkAboutD-1886 Tract 2707, 861 and 953 Orcutt Road Recorded 03/28/2011Recording Requested •
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Fidelity National Title
RECORDING REQUESTED BY:
City of San Luis Obispo
WHEN RECORDED MAIL TO:
City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401 -3249
JULIE RUDEWALmb
San Luis Obispo Coun erk[Recorder
Recorded at the request of
Fidelity Title Company
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APR 19 2011
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3/28/2011
8:00 AM
Titles: 2 Pages:
Fees
Taxes
Others
PAID
FiDELrr f NATIONAL TITLE INS.
HAS REQUESTED THAT THIS DOCUMENT SLO CITY CLEF#Vcorded for the Benefit of the
BE RECORDED AS AN ACCOMMODATION
ONLY. IT HAS NOT BEEN EXAMINED FOR City of San Luis Obispo at No Fee Under
REGULARITY, SUFFICIENCY OR EFFECT Section 27383 of the Government Code
ON THE TITLE TO THE PROPERTY HEREIN
DESCRIBED.
AFFORDABILITY AGREEMENT/DEED OF TRUST COVENANTS FOR TRACT 2707
THIS AGREEMENT is made and entered into this 24th day of September, 2009,
by and between the;City of San Luis Obispo (the "City ") and CityView Laurel Creek 178,
L.P., a Delaware, limited partnership. ( "Owne."); collectively referred to as "the parties:"
RECITALS
A. On November 15, 2005, the.-City Council adopted Resolution No. 9748,
approving Tract 2707, a residential subdivision project with 178 dwellings,
located at 861 and 953 Orcutt .Road, San Luis Obispo ( "the project "); and
B. Section 3, Project Condition #1 of that approval requires the applicant to
provide a minimum of 2 affordable dwelling units for sale through the City's
Inclusionary Housing Ordinance (Long -Term Affordability Program); and
C. The parties have agreed that the Owner shall construct and sell two (2)
homes in conformance.with the City's Affordable Housing Standards; and
D. The -City and Owner desire to assure that the- affordable - dwelling units
identified in this agreement remain affordable to moderate income households
fora period of at least 45 years; and : _, ,
E. The City_and'Owner agree that the 45 year term of affordability will begin anew
with each- sale to an eligible household 'While this agreement, or ` any
subsequent affordability covenant, is in effect; and
F. The two long -term affordable units, are located on lot/unit numbers (3106,
located at 3271 Wintergreen Lane and 3107, located at 3267 Wintergreen
Lane), as shown in Exhibit A attached to this Agreement and incorporated
herein by reference.
NOW, THEREFORE, the parties acknowledge and agree as follows:
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Affordability Agreemenf`(Tract'2707) r
ARTICLE 1. DEFINITIONS
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Page 2
1.01. "Moderate income households" means persons and families whose income does
not exceed 120 percent of the County of San Luis Obispo area median income,
adjusted for family size pursuant to the City of San Luis Obispo Affordable Housing
Standards.
1.02 Persons and families meeting the definition under Section 1.01 shall be referred to
as "eligible households."
1.03 "The properties" shall. mean those specific real properties described in this
agreement (lots 3106 and 3107), intended to be sold to and occupied by eligible
households, and this Agreement shall be recorded against such properties (as
legally described on Exhibit A to this Agreement) to ensure compliance with the
terms of this Agreement.
ARTICLE 2. RESTRICTIONS
2.01. The two (2) units to be constructed on the properties shall be used for owner -
occupied housing purposes and shall be sold to eligible households. Such units
are sometimes referred to in this Agreement, collectively, as the "Affordable:.-.
Housing Units" and each, individually, as an "Affordable Housing Unit." At initial
sale, the sales prices shall be determined at time of building occupancy release, in
accordance with .City. of- .San' Luis Obispo affordable housing standards.. ;.For:
subsequent sales to eligible households, sales prices shall be based on- and
consistent with then_ current City affordable housing standards.
2.02. The grant deed from Owner, or Owner's successors in interest and all future grant
deeds for transfers of interest in the properties shall contain a restriction providing
that for the period of time specified in this Agreement, there shall be no sale,
lease, rental, or other transfer of the properties except for the sale to and
occupation by eligible low or moderate income households. Any sale, lease,
rental, or other transfer of the property in violation of this covenant shall be void. In
the event of a sale of the property during the term of this Agreement, or during the
term of a subsequent promissory note between the City and the current property
owner, and in the event of a. subsequent sale to an eligible household during the
term of any subsequent affordability covenant, the term of affordability for the new
owner shall be 45 years from the date of sale or re -sale of the property.
2.03. The Owner agrees to retain the Housing Authority of the City of San Luis Obispo,
or other qualified entity acceptable to the City, for screening of potential buyers to
determine if they qualify as eligible households.
2.04. These affordability requirements shall be covenants running with the land as
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Affordability Agreerrient'(Traci 2707) Page 3
defined in California Civil Code Section 1460, and shall apply to the properties as
shown on Exhibit A. Pursuant to Civil Code Section 1468, which governs such
covenants, the provisions of this Agreement shall be binding upon all parties
having any right, title, or interest in any of the properties described herein, or any
portion thereof and on their heirs, successors in interest and assigns for a period of
45 years for the two Affordable Housing Units from the date of initial sale of the
property, and for 45 years from all subsequent sales that occur while this
agreement or any subsequent affordability covenant is in effect. The parties agree
that all future deeds or transfers of interest regarding the properties shall show the
restrictions of this Agreement for as long as the Agreement is in effect.
2.05. When a designated Affordable Housing Unit is first sold to an eligible buyer, and
for all subsequent sales that occur while this agreement or any subsequent
affordability covenant is in effect, the buyer and City shall enter into an Affordable
Housing Agreement which shall be recorded as an encumbrance on the property,
and secured by a recorded deed of trust. Said agreement and deed of trust shall
establish the monetary difference between the initial purchase price and the
appraised value as a loan payable to the City. Monthly payments of principal and
interest shall be waived by the City as long as the owner previously approved by
the City Housing Authority as an eligible household, or subsequent buyers
approved by the Housing Authority as eligible households, continue to own and
reside in the property subject to the City loan as his or her principal residence.
2.06:: If a designated Affordable Housing Unit is sold, leased, or otherwiset transferred:.to.
an entity other than to an eligible household, in violation of this agreement, the.
City's loan shall. immediately become due and payable from the proceeds,-of sale,
of the property._ "Proceeds of sale'' shall mean the value of. any, . and all
consideration, however denominated, received or to be received by the Seller from
the sale of the:property after the payment of the first deed of trust.
2.07. Upon resale, the City or the Housing Authority of the City of San Luis Obispo shall
have the first right of refusal to purchase the property or properties at current
appraised value. The provisions of this section shall not impair the rights of a first
mortgage lender secured by a recorded deed of trust. The deed of trust securing
the loan made by purchase money lender shall automatically have a higher priority
than the City's loan, but the City shall execute, deliver and permit recordation of
any written subordination agreement required by the lender or any title insurance
company to confirm the provisions of this Section 2.07. The City's security shall be
prioritized as a second mortgage. This first priority applies to the purchase money
lender's assignee or successor in interest, and shall permit the holder of the first
priority deed of trust to:
(i) Foreclose on the subject property pursuant to the remedies permitted by
law and written in a recorded contract or deed of trust; or
(ii) Accept a deed of trust or assignment to the extent of the value of the unpaid
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Affordability Agreement (Tract 2707) Page 4
first mortgage to the current market value in lieu of foreclosure in the event
of default by a trustor; or
(iii) Sell the property to any person at a fair market value price subsequent to
exercising its rights under the deed of trust. Any value in excess of the
unpaid mortgage and costs of sale administration shall be used to satisfy
the City loan. In no case may a first mortgage lender, exercising
foreclosure, assignment in -lieu of foreclosure or sale, obtain value or rights
to value greater than the value of the outstanding indebtedness on the first
mortgage at the time of the debt clearing action.
In addition, the following types of transfers shall remain subject to the requirements
of the City's loan and right of first refusal: transfer by gift, devise, or inheritance to
the owner's spouse; transfer to a surviving joint tenant; transfer to a spouse as part
of divorce or dissolution proceedings; or acquisition in conjunction with a marriage.
ARTICLE 3. GENERAL
3.01. Required notices shall be sent by certified mail, return receipt requested, to the
following addresses:
If to the City: City of San Luis Obispo
Community Development Director
990 Palm Street
San Luis Obispo, CA 93401 -3249
If to the Owner: CityView Laurel Creek 178, L.P.
10877 Wilshire Blvd, 12th Floor
Los Angeles, CA 90024
3.02. The Owner hereby specifically acknowledges and agrees to be bound by the
covenants respecting affordability on the Property contained herein.
IN WITNESS WHEREOF, this Agreement has been duly executed by the
undersigned as of the date set forth below.
[SIGNATURES ON NEX PAGE]
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Affordability Agreement (Tract 2707) Page 5
OWNER:
CITYVIEW LAUREL CREEK 178, L.P.
a Delaware limited partnership
By: CityView Laurel Creek, LLC
a Delaware limited liability company,
its general partner at
By:
Its: �,�t - iol7ac T7 _ A'VeTw f
CITY:
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Jim dVaffiiflklr,)6A) MtdAf 10+ e1ef bf &W
Michael Codron, Acting City Manager
APPROVED AS TO FORM AND LEGAL EFFECT:
City Attomey
J. Christine Dietrick
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Date: ql z-Q/d�
CALIFORNIA ALL- PURPOSE ACKNOWLEDGMENT
State of California
County of (ES #`'j)l.(C!��L.��
On before me,
Date I
personally appeared
R. ROSESROOt(
CommlplOn I~ 1767111
Notary PU - CONOnYo
0 LOS Angeles C*Wdy
1►�Oo�re►8prw>1� l l .m11
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 paragraph is
true and correct.
WITNESS my d official seal.
Signature V/,
Place Notary Seal Above Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Number of Pages:
Signer's Name:
Signer's Name:
❑ Individual
❑ Individual
❑ Corporate Officer — Title(s):
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General _
El Partner — ❑ Limited I] General
El Attorney in Fact • WN -
❑ Attorney in Fact -
❑ Trustee Top of thumb here
❑ Trustee Top of thumb here
❑ Guardian or Conservator
❑ Guardian or Conservator
❑ Other:
❑ Other:
Signer Is Representing:
Signer Is Representing:
®2007 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313 -2402 • www.NationalNotary.org Item #5907 Reorder: Call Toll -Free 1 -800- 876-6827
C y or kiIS oBispo 990 Palm Street, San Luis Obispo, CA ,
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN LUIS OBISPO )
On March 25, 2011, before me Elaina Cano, City Clerk, personally appeared Michael Codron,
Assistant City Manager, CITY OF SAN LUIS OBISPO, who roved to me on the basis of
satisfactory evidence to be the personVwhose name(s) is /a,,tysubscribed to the within
instrument and nkn ow dged to me that h /she/ 0 execute the same in his/her /th�r authorized capay(i , and that by gs/her /thejfsignature on the instrument the person or
the entity upon behaff of which the person
/0 acted, execu ed 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.
Signature
City Clerk
(Seal)
. f.
��The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities.
Telecommunications Device for the Deaf (805) 781 -7410.
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