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Home My WebLink AboutD-1570C Lot 54 - Tract 2401 - 053-510-007 Recorded 05/28/20020 RECORDING REQUESTED BY F,-S+ PVAe*-sc__Ti +l-e \\ S �I.OVRLO, LLC> AND WHEN RECORDED MAIL TO: City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 -3249 LO `JULIE RODEWALD 5128/2002 i San Luis Obispo County — Clerk/Recorder 8:00 AM Recorded at the request of Circ+ amprican Title Company a 2002003599 Titles: 1 Pages: 8 Fees 0.00 Taxes 0.00 Others PAID $0.00 FATCO Order No. SLO- 94327 LJ— Ir APN: Ptn 053 -510 -007 AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND LOVR -SLO, LLC, TO PROVIDE AFFORDABLE RENTAL DOUSING LOCATED AT LOS OSOS VALLEY ROAD . THIS AGREEMENT TO PROVII),�AFFORDABLE RENTAL HOUSING ( "Agreement ") ; is made and entered into as of this t- day of , 2002, by and between, LOVR -SLO, LLC, a California limited liability company (herein referred to as "Owner "), and the CITY OF SAN LUIS OBISPO, a charter municipal organization in the State of California (hereinafter referred to as "City ") hereinafter collectively referred to as "Parties ". RECITALS: A. Owner is the owner of that certain real property located at Lot 54, Tract 2401 ( "Property ") in the City and County of San Luis Obispo, California, commonly- described as the second multi - family property south.of Madonna. Road on the west side of Los Osos Valley Road, San Luis Obispo, California. �ecavrl�o -d� KO-1 -I 26 21 ir, L'�od =_r 06'r- M s. B. Owner has received development approval for a seventy -seven (77) unit apartment project ( "Project "). C. As a condition of City's planned development approval (City File No. 87 -00), Owner is required to provide thirteen (13) rental housing units ( "Units ") intended to be affordable to low - and moderate income households, pursuant to the City's Affordable Housing Standards. ::ODMA \WORLDOX\H: \WDOCS \10688 \126\AGT \10112952.WPD p 1 5_70 G 0 0 D. Prior to issuing Building Permits for the Project, City requires this Affordable Housing Agreement to be executed by the parties to establish the terms and conditions under which the required affordable rental housing units will be provided. NOW, THEREFORE, in consideration of mutual covenants, conditions, promises and agreements herein set forth, the parties agree as follows: 1. Affordable Rental Housing Provided. Owner agrees to construct and make. available thirteen (13) affordable rental apartment units on the Property in compliance with the Conditions of City Approval, Planned Development Rezoning PD 87 -00 during the term of this Agreement. Owner agrees to provide seven (7) Units ( "Low Income Units ") that meet the City's affordability standard for "low- income households," and six (6) of the Units ( "Moderate Income Units ") that meet the City's affordability standards for "moderate- income households," as described in Exhibit A attached hereto. 2. Location and Design of Affordable Units. The location and design of the Low Income Units and the Moderate Income Units shall be as shown on Exhibit A. Units shall be comparable in design and amenities to similarly sized market rate apartments in the Project. 3. Affordable Housing Use and Renter Eligibility. During the Term by this Agreement, the Units shall be used exclusively for rental housing. The Low Income Units shall be rented only to persons or households eligible under the low income standards in the City's Affordable Housing Standards, as determined from time to time by the City's Community Development Director or the City's Housing Authority, and the Moderate Income Units shall be rented only to persons eligible under the moderate income standards in the City's Affordable Housing Standards, as determined from time to time by the City's Community Development Director or the City's Housing Authority, following said. standards. The mix of affordable income units shall not change during the term of this Agreement, unless the City's Community Development Director determines such a change meets or exceeds the affordable housing requirement established by the City. 4. Recording Guarantee Affordability. Owner understands and agrees to record this Agreement against the Property to assure the continued use of the Units for rental housing for low and moderate income persons during the Term described in Section 6 below. This ::ODMA \WORLDOX\H:\ WDOCS \10688 \126\AGT\ 10112982. WPD -2- 0 0 Agreement shall be recorded prior to occupancy of the Project and shall run with the land and shall apply to all subsequent owners, successors and assigns of Owner. 5. Rental Cost. Owner understands and agrees that during the Term, monthly rental costs for the Units shall not exceed the maximum allowed rental costs specified in the City's Affordable Housing Standards for the specified income level, including a reasonable allowance for utilities paid directly by tenant, as specified in the standards. Rental costs maybe increased or, where necessary, shall be decreased to reflect changes to the Affordable Housing Standards, updated periodically by the City, in accordance with the provisions of the City's "2002 Affordable Housing Standards," which were the basis of this Agreement. 6. Term. The term of this Agreement shall commence upon the date of recording this Agreement ( "Effective Date ") and shall automatically terminate thirty (30) years thereafter ( "Term ") 7. Compliance with Affordability Agreement. Failure to comply with. the terms this Agreement shall constitute a breach of the requirements of City Planned Development City File No. 87 -00 and may result in City initiating action to amend or revoke said Permit approval or to modify or terminate the Affordable Rental Housing Agreement and uses allowed under the Permit until the terms of this Agreement have been met, subject to the approval of the Community Development Director. 8. Employment Status. Nothing in this Agreement is intended nor shall be construed to create an employer - employee relationship or a joint venture relationship between City and Owner. Neither Owner nor any of its agents or employees shall be considered to be agents or employees of City in connection with the performance of the obligations under this Agreement. 9. Inspections. City reserves the right to inspect the Project and Property upon not less than three (3) business days' prior written notice to the Owner to ensure that the Project is being maintained, operated, and used as required herein and as shown in Exhibit A, consistent with applicable federal, state and local laws. Owner agrees to correct all conditions found by such inspections not to conform to the applicable requirements within ninety (90) days of written notice, or if more time is required for such correction, Owner may request additional time for correction so long as Owner commences the correction within the ninety (90) day period and thereafter diligently proceeds to complete such correction, subject to approval of the time ::ODMA \WORLDOX\H: \WDOCS \10688\ 126\AGT\10112952. WPD -3- • • extension by City's Community Development Director. Failure to correct such conditions within the cure period specified above may result in City initiating action to amend or revoke City Planned Development Permit 87 -00, or to modify or terminate uses until the conditions are corrected. 10. Reporting. Owner shall report to the City Community Development Director annually; on or before July 31st of each year or at such other interval as mutually agreed by the parties, to enable the City to verify the Property is being used for eligible activities and complies with the terms of this Agreement. As a minimum, information to be submitted includes: a. Tenants' income characteristics for all affordable units, number of occupants, length of residency, rental cost of comparable market -rate units on the Property, and such other pertinent information documenting tenant eligibility and affordability of dwelling units; b. Certification by the Housing Authority of the City of San Luis Obispo or a qualified non -profit agency that the Property is being operated to provide housing benefits for eligible low and moderate persons, consistent with this Agreement; and C. The Unit number used for identification purposes shall be included in first annual report and all subsequent reports. 11. Entire Agreement and Modification. This Agreement sets forth the 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, amendments, or alterations shall be effective unless in writing and signed by all parties hereto. This Agreement may be amended at.any time by mutual written agreement of the parties, subject to City Community Development Director approval, consistent with the conditions of use permit approval or as otherwise modified by Planning Commission or City Council approval. Owner specifically acknowledges that in entering into and executing this Agreement, it relies solely upon the provisions contained in this Agreement and no others. 12. Laws and Regulations. Owner agrees that it is familiar with and shall comply with all local and State laws and regulations that pertain to construction, health and safety, labor, fair housing practices, equal and affordable rental housing. 13. Law and Governing Venue. This Agreement shall be executed and performed in the State of California, and the validity, enforceability and interpretation of any provision of this ::ODMA \WORLDOX\H: \WDOCS \10688 \126\AGT\10112962.WPD -4- • • Agreement shall be determined and governed by the law of the State of California. San Luis Obispo County shall be the venue for any action or proceeding that may be brought, or arise out of, or in connection with this Agreement. 14. Enforceability. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 15. Agreement Binding. All provisions of this Agreement shall be binding on the parties and their assigns and successors in interest. 16. Waivers. City's waiver or breach of any term, covenant or other provision of this Agreement shall not be a waiver of a subsequent breach of the same term, covenant or provision of this Agreement or of the breach of any other term, covenant or provision of this Agreement. 17. Notices. Unless otherwise provided, all notices herein required shall be in writing, and delivered in person or sent by United States Mail, first class, postage prepaid, to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 -3249 Attention: Community Development Director Notices required to be given to the Owner shall be addressed as follows: LOVR -SLO, LLC c/o R.W. Hertel & Sons, Inc. 5200 Telegraph Road Ventura, CA 93003 -41.14 Attention: Robert J.S. Fowler With a copy to: Nordman, Cormany, Hair & Compton 1000 Town Center Drive, Sixth Floor Oxnard, CA 93030 -1132 Attn: Paul W. Kurzeka, Esq. ::ODMA \WORLDOX\H: \WDOCS \10688 \126\AGT\10112952.WPD -5- • • 18. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. APPROVED AS TO FORM AND LEGAL EFFECT: %; /' OWNER: LOVR -SLO, LLC, a California limited liability company By: R.W. Hertel & Sons, Inc. a California corporation, Manager CITY Robert . Fowler, Vice President Y� Ken ampian, City Administrative Officer ::ODMA \WORLDOX\H: \WDOCS \10688 \126\AGT\10112952.WPD -6- 0 0 STATE OF CALIFORNIA COUNTY OF VENTURA On y - ,9.7- eZ , 200 , before me, Carol J. Laufer, Notary Public, personally appeared RONALD W. HERTEL and ROBERT J. S. FOWLER, personally known to me ( e on the basis eisat sf eter- , evide ) to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. CAROL I MFHt Commission S 1260131 "ventc� MyComm. BvkwApr9,2M4 Carol J. Laufer, Notary fublic STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) On , 2002, before me, City Clerk Lee Price, personally appeared KEN HAMPIAN, City Administrative Officer, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand anA offi&al seal. Lee Price, CMC• n "'?, "I. City Clerk ::ODMA \WORLDOX\H: \WDOCS \10688 \126\AGT\10112952."D -7- EXHIBIT A* Location/Design of Affordable Rental Units and Project Description PLAN NO. SQ. FT. AREA FLOOR DESIGNATION Low Income Low Income Low Income Low Income Low Income Low Income Low Income Moderate Income Moderate Income Moderate Income Moderate Income Moderate Income Moderate Income Low Income Units 7 Moderate Income Units 6 In no event shall there be less than one (1) affordable rental Unit per building in the Project. Further, of thirteen (13) affordable units, not more than seven (7) shall be located on either the ground level or upper level. * This table shall be completed, and a site /floor plan submitted, to the approval of the Community Development Director, prior to occupancy of any units. :ODMA \WORLDOX\H: \WDOCS \10688 \126\AGT\10112952.WPD "8" END OF DOCUMENT