HomeMy WebLinkAboutD - 2002 APN 003-661-027 Recorded 07-31-2015Recording Requested by
and, when recorded return to:
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401-3249
TOMMY GONG
San Luis Obispo County—Clerk/Recorder
Recorded at the request of
Public
ID
7/31/2015
1:28 PM
DOC#:8015039080 1 "b•s.
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Recorded for the Benefitlof the
City of San Luis Obispo at No Fee Under
Section 27383 of the Government Code
AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO
AND MI SLO TERRACE TO PROVIDE AFFORDABLE HOUSING
LOCATED ON LOT 13 OF THE BUENA VISTA ADDITION TO THE CITY OF SAN
LUIS OBISPO (940 RACHEL COURT APN: 003-661-027)
This agreement is made and entered into on J'0_ I tA 2 , 2015, by
and between MI SLO Terrace, LLC, a California Limited Liability Corporation (herein
referred to as "property owner"), and the City of San Luis Obispo, a municipal
corporation and charter city in the State of California (hereinafter referred to as "City")
WITNESSETH:
WHEREAS, property owner owns certain real property described as Lot 13 of the
Buena Vista Addition in the City of San Luis Obispo, County of San Luis Obispo, State
of California, as shown on the map recorded in Book A of Maps at Page 47 , in the
office of the County Recorder of said county; and
WHEREAS, on October 18, 2013, the Community Development Director
approved Use Permit A 74-13 allowing construction of 17 new single-family residences
on a site with a Special Considerations Overlay; 907 Rachel Court (base address); and
WHEREAS, the conditions of approval from Use Permit A 74-13 stipulate that Lot
13 (referenced as lot 13N) be used for affordable housing to meet the City's Inclusionary
Housing requirements for the 17 residential unit project (the "Project").
NOW, THEREFORE, in consideration of mutual covenants, conditions, promises
and agreements herein set forth, the parties agree as follows:
1. Affordable Housing Provided. Pursuant to the terms and conditions hereof,
the property owner (consistent with references above) agrees to develop 1 two-
bedroom dwelling unit that meets the City's affordability standard for "moderate
income" households (the "Affordable Housing Unit").
2. Construction of Affordable Housing Unit. On or before the date which is five
(5) years following the execution of this Agreement, the property owner shall construct
the Affordable Housing Unit. Such unit shall be constructed by the property owner on
Lot 13, located in a residential development project on Rachel Court, San Luis Obispo,
at the location shown in Exhibit "A" to this Agreement. "Inclusionary Housing Units"
shall be as defined in Section 17.91.020 M. of the San Luis Obispo Municipal Code.
8
0.00
0.00
0.00
$0.00
Affordable Housing Agreement — 940 Rachel (APN: 003-661-027)
Page 2
3. Failure to Complete Housing Unit. In the event that the property owner fails to
complete the Affordable Housing Unit by the date specified in Section 2, then property
shall pay to City the sum of $182,198.80, being the in -lieu fee that the City would have
been entitled to receive in respect of the Project if no affordable housing unit has been
constructed under this Agreement times 3% interest per annum on monetary amount
due. Said amount shall be in addition to any and all other damages
5. Affordable Housing Use and Eligibility. The Affordable Housing Unit shall be
used for owner -occupied housing purposes and shall be sold only to eligible
households. Property owner shall only sell the Affordable Housing Unit to moderate
income eligible persons based on the standards in the City's Affordable Housing
Standards, as determined by the City's Housing Authority.
6. Recorded Agreement to Guarantee Affordability. Property owner
understands and agrees to the continued use of the property for for -sale, moderate
income households for a minimum 45 years, from the date of execution of this
agreement. Said agreement shall run with the land and bind and inure to the benefit of
property owner and City and subsequent owners, heirs, assigns or successors in
interest for the subject property.
7. Sales Cost. Property owner understands and agrees that during the term of this
agreement, for -sale cost for the designated affordable unit shall not exceed maximum
allowed purchase costs specified in the City's Affordable Housing Standards for the
specified income level. Sales costs may be adjusted to reflect changes to the
Affordable Housing Standards as updated by the City.
8. Term. The term of this agreement shall commence on the date first above
written and shall terminate forty-five (45) years from that date.
9. Compliance with Affordability Agreement. Failure to comply with the terms of
this agreement shall constitute a misdemeanor violation of Municipal Code
requirements and breach of contract and may result in the City initiating action to
achieve compliance. In the event property owner breaches any of the covenants or
restrictions contained in this Agreement, property owner expressly agrees that City shall
have the right, upon ex parte motion, to injunctive relief and specific performance, as
well as damages and any other rights or remedies provided at law or in equity.
10. 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 property owner. Neither property owner nor any of property owner's
agents or employees shall be considered to be agents or employees of City in
connection with the performance of the obligations under this agreement.
11. Inspections. City reserves the right to inspect the premises upon reasonable
notice to the property owner to ensure that the property is being maintained, operated,
and used as described herein and as graphically shown in Exhibit "A", consistent with
applicable federal, state and local codes. The property owner agrees to correct all
conditions found by such inspections not to conform to the applicable requirements
within 90 days of written notice, or such period as determined by the Director. Failure to
Affordable Housing Agreement — 940 Rachel (APN: 003-661-027)
Page 3
correct such conditions could result in City initiating action to modify or terminate use of
the property until the conditions are corrected.
12. Reporting. The property 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 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) Certification by the Housing Authority of the City of San Luis Obispo or qualified
non-profit agency that the property is being operated to provide housing benefits
for eligible moderate income households, consistent with the City's Affordable
Housing Standards.
13. 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, amendments, or alterations shall be effective unless in writing and signed by
all parties hereto. This agreement may be amended at any time, subject to City
Community Development Director approval or as otherwise modified by Planning
Commission or City Council approval.
The property owner specifically acknowledges that in entering into and executing this
agreement, he relies solely upon the provisions contained in this agreement and no
others.
14. Laws and Regulations. The property owner acknowledges that he(she) is
familiar with and will comply with all local and State laws and regulations that pertain to
construction, health and safety, labor, fair housing practices, equal opportunity and all
other matters applicable to maintaining sound, safe and affordable housing.
15. Non -Assignment of Agreement. This agreement applies only to property
owner(s), heirs, successors, or assigns for property shown in Exhibit "A." The property
owner shall not assign or transfer this agreement, or any part hereof without the prior
written consent of City, and any such assignment or transfer without City's prior written
consent shall be considered null and void.
16. Law and Governing Venue. This agreement has been executed and delivered
in the State of California, and the validity, enforceability and interpretation of any of the
clauses of this agreement shall be determined and governed by the law of the State of
California. All duties and obligations of the parties created hereunder are performable
in the City of San Luis Obispo, County of San Luis Obispo, and such County shall be
that venue for any action, or proceeding that may be brought, or arise out of, in
connection with, or by reason of this agreement.
17. 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
Affordable Housing Agreement — 940 Rachel (APN: 003-661-027)
Page 4
way be affected, impaired or invalidated thereby.
18. Agreement Binding. All provisions of this agreement shall be binding on the
parties and their heirs, assigns and successors in interest. Lot 13 shall only be
developed with a housing unit affordable to moderate income households.
19. Waivers. City's waiver or breach of any one 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.
20. Attorneys' Fees. In addition to any other remedies provided hereunder or
available pursuant to law, if any party brings an action or proceeding to enforce, protect
or establish any right or remedy hereunder, the prevailing party shall be entitled to
recover from the other party its costs of suit, including without limitation expert witness
fees, and reasonable attorneys' fees.
21. Notices. Unless otherwise provided, all notices herein required shall be in
writing, and delivered in person or sent by United States first class mail, postage
prepaid. Notices required to be given to City shall be addressed as follows:
Community Development Director
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401-3218
Notices that are required to be given to the property owner shall be addressed as
follows:
San Luis Obispo, CA
Provided that any party may change such address by notice in writing to the other
parties and thereafter notices shall be transmitted to the new address.
Affordable Housing Agreement — 940 Rachel (APN: 003-661-027)
Page 5
IN WITNESS WHEREOF, the parties hereto have executed this agreement as of
the day and year first above written.
PROPERTY OWNER:
MI S
By:
CITY:
By:
Derek Johnson, C
APPROVED AS TO FORM:
ity Development Director
J. CWine Dietrick, City Attorney
ALL SIGNATURES MUST BE NOTARIZED!
Date
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 San Luis Obispo }
On "t:ti ') , SIS before me,_ Antonette Cordova — Notary Public ,
a' a Name and Title of the Officer
personally appeared, (d a j'l1 C -I Kb ,SSM"
Ta 'm
who proved to me on the basis of satisfactory evidence to be the person(g) whose
namej* is/ore subscribed to the within instrument and acknowledged to me that
he/fey executed the same in his/he4their authorized capacity(ies), and that by
his/hei:Aheir signature(%} on the instrument the person(&), or the entity upon behalf of
which the person(e) 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.
G'
Signature
igna ure of otary Public
Place Notary Seal Above
ANTONET1ECORDOVA
++
Commission # 1993635
Notary Public - California x
Santa Barbara County a
My Comm. Expires Oct 11, 2016
Place Notary Seal Above
Affordable Housing Agreement — 940 Rachel (APN: 003-661-027)
Page 6
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 San Luis Obispo
On L4 9.1 ,Ztlt5' , before me, #_�►e_— L.
Dal
personally appeared, Lim, E� • m u'-
ke,
who proved to me on the basis of satisfactory evidence to be the person.W whose namely isIX4
subscribed to the within instrument and acknowledged to me that.lo/she/thej executed the same
in /her/tf authorized capacity(ae< and that by Ng/her/th& signatureKon the instrument the
person(;r}; 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.
Signature e
ue_
Igna ure ot Notary Public
LAURIE L. THOMAS
_ Commission # 1966877
Notary Public - California i
San Luis Obispo County W
My Comm. Expires Feb 14, 2016
Place Notary Seal Above
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 San Luis Obispo
, before me,
Date Name and Title of the Officer
personally appeared,
Name of &qner(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
paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Signature of Notary Public Place Notary Seal Above
Affordable Housing Agreement — 940 Rachel (APN: 003-661-027)
Page 7
Exhibit "A"
Site Plan 940 Rachel Court (APN: 003-661-027)
Location of Affordable Housing Unit to be Developed
END OF DOCUMENT