HomeMy WebLinkAboutD-1575A 843 Mutsuhito Ave. Recorded 03/18/2002RECORDING REQUESTED BY:
City of San Luis Obispo
WHEN RECORDED MAIL TO:
Community Development Department
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401 -3249
Doc No: 1999 - 019725
Official Records
San Luis Obispo Co.
Julie L. Rodewald
Recorder
Mar 13, 1999
Time: 14:32
61
Rpt No 00024421
RF -1 22.00
,TOTAL 22.00
AFFORDABILITY AGREEMENT /DEED OF TRUST COVENANTS FOR THE VILLA ROSA
RESIDENTIAL PLANNED DEVELOPMENT, LOCATED AT 843 MUTSUHITO AVENUE
THIS AGREEMENT is made and entered into this day of
1999, by and between the City of San Luis Obispo (the "City ") and Villa Rosa LLC, a California
corporation ( "Owner "), collectively referred to as "the parties."
RECITALS
A. In 1991, the City Council adopted Ordinance No. 1197, approving an 85 -unit
planned residential development known as Villa Rosa, located at 843
Mutsuhito Avenue (PD 1518) ( "the project "); and
B. Condition 2 of that ordinance established sales price and resale restrictions
for 41 of the 85 condominium units to maintain housing affordability for a
period of twelve years, as proposed by the developer; and
C. Due to financial difficulties, the project was not completed and only 26
condominiums had been built and occupied by 1997. To expedite completion
of the project, the owner requested that the City amend the project's
affordable housing requirement; and
D. At its February 7, 1997 meeting, the City Council amended the project's
affordable housing requirement for consistency with the City's adopted
Affordable Housing Requirement; and
E. As a condition of Ordinance No. 1318 (1997 Series) amending the project's
affordable housing requirement, the City Council required that prior to
occupancy release of the remaining 59 condominium units, the owner enter
into an agreement to ensure that of the remaining units to be built, at least
four condominium units would be sold at prices affordable to moderate
income households, or alternatively, at least three condominium units be sold
at prices affordable to low income households; and
F. The parties have agreed that the Owner shall construct and sell four
condominium units at Villa Rosa to moderate income households, in conformance
with the City's Affordable Housing Standards; and
1999 - 619725
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G. The City and Owner desire to assure that the affordable dwelling units identified in
this agreement remain affordable to low or moderate income households for a
period of at least 30 years.
NOW, THEREFORE, the parties acknowledge and agree as follows:
ARTICLE 1. DEFINITIONS
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. "Low income households" means persons. and families whose income does not exceed
80 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.
1.03 Persons and families meeting the definition under Sections 1.01 and 1.02 shall be
referred to as "eligible households."
1.04 `The properties" shall mean those specific real properties described in this agreement,
intended to be sold to and occupied by eligible households.
ARTICLE 2. RESTRICTIONS
2.01. The four (4) condominium units to be constructed on the properties shall be used for
owner - occupied housing purposes and shall be sold to eligible households. 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 or 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.
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 defined in
California Civil Code Section 1460, and shall apply to properties located at 759
Lawrence Drive, 811 Lawrence Drive, 913 Lawrence Drive and 2862 Victoria. Street in
San Luis Obispo, California, as further described 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
E
assigns for a period of 30' years from the date of occupancy of the property. 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, 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 initial appraised value as a loan payable to the City. Said loan
shall accrue interest, compounded annually, at an annual rate equal to 4.5 points
added to the 11th District Cost of Funds as currently published by the Federal Home
Loan Bank Board, amortized over 30 years, and the 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 otherwise 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 consideration for the City's right of first refusal shall consist of 1 percent of
the remaining City loan balance. The balance of the City loan remaining after
deducting this 1 percent of the loan balance shall be credited toward the purchase
price if the City chooses to exercise the purchase option. The provisions of this section
shall not impair the rights of a first mortgage lender secured by a recorded deed of
trust. The purchase money lender shall have a higher priority than the City's loan. 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, 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
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
K
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. TIMING
3.01. In the event the Owner has not completed the construction of the housing units and
received a final building inspection on all units within two years from the date of
conveyance of the Grant Deed, the property ownership and control of the properties
shall revert to the City. Extensions of this period of time may be granted at the
discretion of the City if the developer has demonstrated just cause and a "good faith"
effort to develop the property.
ARTICLE 4. GENERAL
4.01. Notices required to be sent to the City hereunder shall be sent by certified mail, return
receipt requested, to the following address:
City of San Luis Obispo
Community Development Director
990 Palm Street
San Luis Obispo, CA 93401 -3249
4.02. 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.
Villa Rosa LLC
Warren Sanders, President
CITY:
Arnold Jonas, Com
February 11, 1999
Date
Development Director
APPROVED AS TO FORM AND LEGAL EFFECT:
?/Jer�/ ff G. idbenVA, City Attorney
4
STATE OF CALIFORNIA
)SS
COUNTY OF SAN LUIS OBISPO )
On EEV)r(-AQf� 11 1qqq before me,
�iGne S� ucly �. 1)61QYI hbVc
personally appeared
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose nameQ
is subscribed to the within Instrument and
acknowledged to me that�SVAeA#�executed the same
in hI sir authorized capacityP4 and that by
is ha4heic signatureW on the instrument the person(s),
or the entity upon behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
SignaturQ.L-0. 9 El L LCLA I
State of California
County of San Luis Obispo)
OFFICIAL SEAL
o .• NOTARY PU13UC- CALIFORNIA W
COMMISSION 01142669 C
SAN LUIS OBISPO COUNTY
NY Comm Ems. June 20.20M
(The above area for official notarial seal)
On February 18, 1999, before me, Diane R. Stuart, Notary Public, personally appeared
Arnold B. Jonas, 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 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 and official seal.
�CK, a:
Diane R. Stuart, Notary Public
OFFICIAL SEAL
DIANE R. MART
NOTARY PUBLIC . CALIFORNIA
COMMISSION! 1142689
SAN LUIS OBISPO COUNTY
Ew June 20, 2DO1f
Capacity claimed. by signer(s): Political Agency
5
•
•
EXHIBIT A
DESCRIPTION OF REAL PROPERTY
The following properties shall be subject to the affordability agreement/deed of trust covenants
described above:
Four, 3- bedroom condominium units in the Villa Rosa Planned Residential
Development, located in the City of San Luis Obispo, County of San Luis Obispo, State of
California, legally described as follows:
• 2862 Victoria Street, City of San Luis Obispo, Tract 2066, Lot 38. Assessor's Parcel
Number 053- 198 -007.
• 913 Lawrence Drive, City of San Luis Obispo, Tract 2066, Lot 62. Assessor's Parcel
Number 053 - 198 -031.
• 811 Lawrence Drive, City of San Luis Obispo, Tract 2066, Lot 74. Assessor's Parcel
Number 053- 198 -043.
• 759 Lawrence Drive, City of San Luis Obispo, Tract 2066, Lot 81. Assessor's Parcel
Number 053 - 198 -050.
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