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HomeMy WebLinkAboutReso 1987-13224 RESOLUTION NO. 13224 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A HOUSING COOPERATION AGREEMENT WITH MR. HECTOR ZUNIGA FOR AFFORDABLE FAMILY HOUSING UNITS The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, The City desires to promote the provision of affordable housing units for families; and, WHEREAS, State Civil Code Section 65915, and the City's Housing Density Bonus Policy provide a mechanism whereby developers can request a Density Bonus in exchange for renting a portion of their units at affordable rents to low and moderate income tenants; and, WHEREAS, The City Council wishes to approve a Density Bonus of one unit in exchange for one affordable low income unit and one affordable moderate income unit at 251 Oxford Street; and, WHEREAS, The Family Density Bonus policy of the City of Chula Vista calls for a written agreement between the City and the developer of low income family housing to specify the tenancy requirements and term of commitment; and, WHEREAS, such agreement, called a Housing Cooperation Agreement attached hereto and incorporated herein as though fully set forth has been negotiated between Hector and Maria Zuniga and the City. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chul a Vista does hereby grant a one unit Density Bonus to Hector and Maria Zuniga, thereby allowing them to place a total of eight units on their property at 251 Oxford conditioned upon the developers entering into an agreement with the City to rent one unit to a low income household and one unit to a moderate income household in accordance with the terms and conditions of the City's Housing Density Bonus policy, State Civil Code Section 65915, and the attached Housing Cooperation Agreement. NOW, THEREFORE BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista hereby approves that said Housing Cooperation Agreement with Hector and Maria Zuniga and authorizes the City Manager to execute that agreement on behalf of the City. BE IT FURTHER RESOLVED that said agreement shall be executed and recoF~-R~i~~ to the issuance of building permits for 251 Oxford Street. Pres ~a~d by x Approved as to form by Commun i ty Development Director ~i ty Attorne~f WPC 3073H ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF (,r~ULA VISTA, CALIFORNIA, this 25th day of August ...... 19 87 , by the following vote, to-wit: AYES: Councilmembers McCandliss, Moore, Nader NAYES: Counci 1 members None ABSTAIN: Councilmembers None ABSENT: Councilmembers Malcolm, Cox Ma~f the City of Chula Vista ~ City Clerk ~" L .FE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) l, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY thor the obove and foregoing is 0 full, true ond correct copy of RESOLUTZ0N N0. 13224 ,ond thor the same hos not been omendad or repealed OF CHU VI A CC-660 ' 284 Recording Requested By: 180 NOV 13 O0 City of Chula Vista When Recorded Mai 1 To: COUN City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 Attn: City Attorney Space ~ove For Recorder's Use HOUSING COOPERATION AGREEMENT THIS HOUSING COOPERATION AGREEMENT ("this Agreement") is entered into this 25th day of August , 19 87 , between CITY OF CHULA VISTA, a munic~p'~corporation ("City"), and HECTOR"A'~D MARIA ZUNIGA ("Property Owner"). ARTICLE 1 - Recitals 1.1 Property Owner. Property Owner is the legal owner of the fee title to the real property described as the West 75 feet of the East 150 feet of Lot 3, Quarter Section 142, in the City of Chula Vista, County of San Diego, State of California, according to Map thereof No. 505 filed in the Office of the Recorder of San Diego County, March 13, 1888. Said real property is sometimes referred to in this Agreement as "the Real Property." 1.2 Density Bonus. Property Owner, pursuant to California Government Code section 65915, has submitted to City a proposal f~r the development of some low and moderate income housing on the Real Property pursuant to said section 65915. 1.3 Grant of Density Bonus. The city council for the City ("City Council"), in response to Property Owner's application approved a density bonus for the real property by Resolution No. 13224 on August 25, ]987. 1.4 Low/Moderate Income Housing. Said Government Code section 65915 provides, among other things, that when a developer of housing agrees to construct at least 25 percent of the total units of a housing development for persons and families of low or moderate income, as defined in Section 50093 of the California Health and Safety Code, a city shall grant a density bonus for said housing development. 1.5 Agreement. City Council established in said Resolution No.13224 , as a condition o~taining a building permit, a requirement that a recorded agreement be entered into between City and Property Owner providing for (i) said 14 percent density bonus and (ii) the creating and maintaining of 25 percent of the dwelling units on the Real Property for low and moderate income housing. ].6 Design Review Committee. City's Design Review Committee, on March ]9, ]987, approved Property Owner's site plan, elevations and preliminary plans for the constructing and maintaining of 8 dwelling units on the Real Property. Said resolution is referred to in this Agreement as "the Design Resolution." ].7 Intent. These parties intend that this Agreement constitute the recorded agreement referred to in Paragraph ].5. CITY AND PROPERTY OWNER hereby agree as follows: ARTICLE 2 - Development Standards 2.1 Density Bonus. Property Owner is entitled to construct and maintain on the Real Property 8 dwelling units. Said 8 dwelling units are 14 percent more than would be permitted to be on the Real Property by the regulations for the R-V-15 Zone with a K building type designation. 2.2 Other Standards. The permitted uses of the Real Property, the density of use thereof, the maximum height and size of buildings thereon, and provisions for reservations or dedication of land for public purposes and all other standards of development of the Real Property will be governed by each of the following as presently constituted ("the Development Standards"): 2.2.] General Plan: "High Density Residential" designation in City's General Plan. 2.2.2 Zone Regulations: The regulations for Zones R-V-15 with a K building type designation. 2.2.3 Design Resolution: The Design Resolution and any exhibits referred to therein. 2.2.4 Density: The provisions of Paragraph 2.1. 2.3 Conflict. In the event of conflict between Paragraph 2.1 and any other of the Development Standards, said paragraph will prevail. 2.4 Effect of Termination of Article 3. Termination pursuant to Paragraph 3.7 will not affect, or render inapplicable, the foregoing Development Standards. ARTICLE 3 - Low/Moderate Income Housing 3.1 Definitions. For the purposes of this article, the following definitions apply: 3.1.1 "Manager" means the City Manager of City. -2- · jQ, e86 3.1.2 "Median Income" means the latest median income, based on a family of four persons, from time to time determined by the United States Department of Housing and Urban Development (pursuant to Section 8 of the United States Housing Act of 1937) for the San Diego Standard Metropolitan Statistical Area. 3.1.3 "Low 2 BR Apartment" means a two-bedroom apartment unit, the monthly rental for which will be no greater than 1/12th of 25 percent of the Four Person Median Low Income Limit, defined below; there will be one Low 2 BR Apartment. "Four Person Median Low Income Limit" means 80 percent of the Median Income multiplied by lO0 percent (that is, 80 percent of the ~edian Income), rounded to the nearest $50. 3.1.4 "Moderate 2 BR Apartment" means a two-bedroom apartment unit the monthly rental for which will be no greater than 1/12th of 25 percent of the Four Person Median Moderate Income Limit, defined below; there will be one Moderate 2 BR Apartment. "Four Person Median Moderate Income Limit" means 120 percent of the Median Income multiplied by lO0 percent (that is, 120 percent of the Median Income), rounded to the nearest $50. 3.1.5 "Affordable Apartment" means any one of the apartments defined in Paragraphs 3.1.3 and 3.1.5; "Affordable Apartments" means all of such apartments col 1 ecti vely. 3.2 Qualification of Tenants. As to the' Affordable Apartments, the following will apbly: 3.2.1 Low 2 BR Apartment. One 2 BR Apartment will be leased only to a household having an annual gross income not exceeding the Median Low Income Limit for the household's size. 3.2.2 Moderate 2 BR Apartment. One Moderate 2 BR Apartment will be leased only to a household having an annual gross income not exceeding the Median Moderate Income Limit for the household's size. 3.3 Proof of Oualification. Property Owner will obtain from each person(s) to whom Property Owner rents an Affordable Apartment a "Supplemental Rental Application" ("the Application") in the form of Exhibit A attached hereto (or such other form as City may from time to time adopt and of which City notifies Property Owner in writing). Property Owner will be entitled to rely on the Application and the supporting documents thereto in determining the eligibility of such person(s) to rent such Affordable Apartment. Property Owner will retain the Application and supporting documents for a period of at least two years after the applicant thereof ceases to occupy such Affordable Apartment. 3.4 Nature of Leases. Except as to rent, t'he terms, conditions and provisions of 'the lease or rental agreement for each Affordable Apartment will be the same as those of leases or rental agreements for all other apartments on the Property. 3.5 Waiver. Property Owner may apply in writing to the Manager for a waiver, as to a specifically designated Affordable Apartment(s), of Paragraphs 3.1 and 3.2. Each such application will be accompanied by written data or other evidence relied upon by Property Owner to show that, for the near -3- future, there will be no reasonable demand for such Affordable Apartment(s). Within 30 days after receipt of any such application, the Manager will, in writing, either grant or disapprove the requested waiver; the failure of the Manager to act within said period will be deemed to be disapproval of such requested waiver. If such waiver is granted, Property Owner may lease the Affordable Apartment(s) affected by the granted waiver to such personIs) and at such rental as Property Owner determines, subject to each of the following: 3.5.1 Month-to-Month Tenancy. Anything in Paragraph 3.4 to the contrary notwithstanding, the lease or rental agreement will create only a month-to-month tenancy. 3.5.2 Termination of Waiver. At any time after granting any such waiver, the Manager may, by writing delivered to Property Owner, terminate such grant. Within five days after such delivery, Property Owner will appropriately notify the tenant(s) and occupant(s) Iof the Affordable Apartment(s) for which the grant of waiver has been terminated) that the month-to-month tenancy thereof will be and become terminated one month after delivery of such notification by Property Owner. Property Owner will take reasonable steps to effectuate such termination, including diligent commencement and prosecution of an unlawful detainer action(s). 3.6 Records, Audits. Property Owner will submit to City semi-annual certified rent rolls, disclosing with respect to each Affordable Apartment monthly rent rate, (ii) number of occupants for which the Affordable Apartment is rented and the income of such occupant(s). If City determines an audit is necessary to verify a submitted rent roll, it will so notify Property Owner in writing thereof. Within ten days after delivery of said notice, Property Owner will deliver to City the names of three certified public accountants doing business in the metropolitan San Diego area. City will promptly deliver to Property Owner the former's approval of one or more of said names. The audit will be completed by an approved certified public accountant, at Property Owner's cost, within 60 days after the delivery to Property Owner of City's said approval. The certified public accountant will promptly deliver a copy of the written audit to City. 3.7 Term. The term during which this Article 3 applies commences on the date hereof. Said term ends on the date which is twenty-five years after the date on which at least 4 of the dwelling units on the Real Property are first occupied. ARTICLE 4 - Breach 4.1 Breach By City. If City breaches any of its covenants contained in this Agreement, Property Owner will have available to it all legal and equitable remedies afforded by the laws of the State of California. 4.2 Breach By Property Owner. If, with respect to any Affordable Apartment, Property Owner breaches this Agreement by charging higher rent than that herein permitted, Property Owner will, immediately upon City's demand, (i) reduce the rent to that permitted herein and lii) refund to any tenants who theretofore paid such higher rent the amount of the excess, together with interest thereon at the rate of lO percent per annum, computed from the -4- · date(s) of payment of the excess by said tenants to the date of said refund. The provisions of this paragraph constitute a third-party beneficiary contract in favor of such tenants. Further, City is hereby granted the power (but not the duty) to act as attorney-in-fact of such tenants in enforcing this paragraph. 4.3 Breach by Property Owner. If, with respect to any Affordable Apartment, Property Owner breaches this Agreement by leasing to tenants who are not, pursuant to Paragraph 3.2, qualified, Property Owner will, immediately upon City's written demand, and at Property Owner's sole cost, take all 1 awful steps to terminate such leasing. Each tenant who hereafter leases or occupies an Affordable Apartment agrees that if such tenant is not so qualified, he, she or they will immediately upon demand of Property Owner or City (i) terminate such lease and {ii) vacate such Affordable Apartment. 4.4 Remedies Not Exclusive. The remedies set forth in Paragraphs 4.2 and 4.3 are not exclusive, but are in addition to all legal or equitable remedies otherwise available to City. ARTICLE 5 - General Provisions 5.1 Assignment. The rights and obligations of Property Owner under this Agreement may be transferred or assigned, provided such transfer or assignment is made as a part of the conveyance of the fee of all or a portion of the Real Property. Any such transfer or assignment will be subject to the provisions of this Agreement. During the term of this Agreement, any such assignee or transferee will observe and perform all of the duties and obligations of Property Owner contained in this Agreement as such duties and obligations pertain to the portion of said real property so conveyed. 5.2 Amendment or Cancellation of Agreement. This Agreement may be amended from time-to-time by the mutual consent of the parties hereto but only in the same manner as its adoption. The term "this Agreement" includes any such amendment properly approved and executed. 5.3 Enforcement. Unless amended or cancelled as provided in Sections 6.4 or 6.5, this Agreement is enforceable by any party to it despite a change in the applicable general or specific plans, zoning, subdivision or building regulations adopted by City which alter or amend the rules, regulations or policies governing permitted uses of the land, density and design. 5.4 Hold Harmless. Property Owner agrees to and will hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury including death and claims for property damage which may arise from the direct or indirect operations of the Property Owner or those of its contractors, subcontractors, agents, employees or other persons acting on Property Owner's behalf which relate to the Real Property. Property Owner agrees to and shall defend City and its officers, agents, employees and representatives from actions for damages caused or all eged to have been caused by reason of Property Owner's activi ties in connection with the Real Property. -5- This hold harmless agreement applies to all damages and claims for damages suffered or alle9ed to have been suffered by reason of the operations referred to in this paragraph, regardless of whether or not City prepared, supplied or approved plans or specifications, or both, for the Real Property. 5.5 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of the Agreement inure to the parties' successors in interest. 5.6 Relationship of Parties. It is understood that the contractual relationship between City and Property Owner is such that Property Owner is an independent contractor and not an agent of City. 5.7 Notices. All notices, demands and correspondence required or provided for under this Agreement shall be in writing and delivered in person or dispatched by certified mail, postage prepaid. Notice required to be given to City shall be addressed as follows: The City of Chula Vista 276 Fourth Avenue Chula Vista, California 92010 Notices required to be given to Property Owner shall be addressed as follows: Mr. Hector Zuniga 1331 India St. San Diego, CA 92101 A party may change its address by giving notice in writing to the other party. Thereafter, notices, demands and other pertinent correspondence shall be addressed and transmitted to the new address. ARTICLE 6 - Conflicts of Law 6.1 Conflict of City and State or Federal Laws. In the event that state or federal laws or regulations enacted after this Agreement has been entered into prevent or preclude compliance with one or more provisions of this Agreement or requi re changes in plans, maps or permits approved by the City, the parties will: 6.1.1 Notice and Copies. Provide the other party with written notice of such state or federal restriction, provide a copy of such regulation or policy and statement of conflict with the provisions of this Agreement. 6.1.2 Modification Conferences. The parties will, within 30 days, meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation. 6.2 Council Hearings. Thereafter, regardless of whether the parties reach an agreement on the effect of such federal or state law or regulation upon this Agreement, the matter will be scheduled for hearing before the Council. Ten days' written notice of such hearing will be given, pursuant to -6- ' SUPPLEMENTAL RENTAL APPLICATION The rental unit for which you are applying has received governmental assistance under programs to encourage more affordable housing. As a result, the unit carries a rent level restriction and is restricted to occupancy by low and moderate income households. The information requi red on this form is necessary to determine your income eligibility to occupy the unit. You must report all household income. Information provided will be confidential and not subject to public disclosure pursuant to State Government Code Section 6254(n). 1. Rental Unit Address 2. Applicant Name 3. Other Household Members 4. Total Current Annual Household Income from all Sources: TOTAL $ Detail: Household Member Income Source $ EXHIBIT A -1- 8.3 Entire Agreement, Waivers and Amendments. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiation or previous agreements between the parties with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the City or by Property Owner. All amendments hereto must be in writing signed by the appropriate authorities of the City and by Property Owner, in a form suitable for recording in the Office of the Recorder, County of San Diego. Within ten days of the date of this Agreement or subsequent thereto, a copy will be recorded in the official records of San Diego County, California. IN WITNESS WHEREOF, this Agreement has been executed by the parties on the day and year first above written. THE CITY OF CHULA VISTA, a municipal corporation By C1 By BY,. a a STATE OF CALIFORNIA } COUNTY OF San Diego ss. On this 3rd day of November in the year 19 87, before me, the undersigned, a Notary Public in and for said State, personally appeared Hector Zuniga and Maria Zuniga Mary Elaine Chavez NOTARY PUBLIC CALIFORNIA (or proved to me on the basis of satisfactory evidence) to be the person~ whose names_ SAN OIEGO COUNTY are subscribed to the within instrument, and acknowledged to me that t_he_~ L: : e×ecuted WITNESS my hand and official seal. AC~"~'~LEDGMENT--Gene a --Woco s Form 233CA-Rev 5-82 Notary Public in and for said St 5. Total Gross Annual Household Income shown on most recent Federal Tax return (attach copies of most recent Federal Tax returns for all household members receiving income. Include other verification of income not appearing on tax forms.) $ APPLICANT'S STATEMENT I certify. under penalty of perjury that the foregoing information is true and correct to the best of my knowledge. I understand that any misrepresentation of the information contained herein may be cause for eviction. Signature Date Applicant OWNER'S STATEMENT Based on the foregoing information, I certify: under penalty of perjury that the applicant is eligible to occupy this restricted affordable unit. Eligibility is based on finding that the applicant household's current annual income is $ and does not exceed current maximum household income of $ allowed under the terms of a Development Agreement with the City of Chula Vista regarding this residential rental development. Name Title Signature Date WPC 1629X EXHIBIT A -2- CITY OF CHULA VISTA HOUSING DENSITY BONUS POLICY Adopted by City Council Resolution No. 12135 on August 13,1985 OBJECTIVE To provide a procedure for City response to formal requests by housing developers for density bonuses under the provisions of California Government Code Section 65915, which provides for increases in densities of residential rental units in exchange for the provision of affordable housing units; to establish the degree of provision of those affordable housing units required by the City in granting density bonuses under California Government Code Section 65915. CONDITIONS In order to obtain approval of a density bonus or an incentive of equivalent financial value, the housing developer must commit to the following provision of affordable housing: 1. A minimum of 20% of the pre-density bonus unit count to be occupied and affordable to low-income households and 5% of the pre-density bonus unit count to be occupied and affordable to moderate income households. Low-income is defined as at or below 80% of the HUD-publishe~ SMSA median income adjusted for family size and moderate income as between 81 and 120% of the HUD-published SMSA median income adjusted for family size. Studios shall be assumed to be occupied by one-person households, one bedrooms by two-person households, and two bedrooms by four-person households. Affordability shall be defined as being a monthly rental rate not in excess of 25% of the monthly income of the appropriate lower income or moderate income family size. 2. Affordable units to be committed to low-income household occupancy for a minimum of 25 years. PROCEDURE 1. An applicant wishing a density b6~us shall submit jointly to the Planning Director and the Community Development Director the following preliminary information: a. A letter formally requesting the density bonus and describing the project, project location, total units allowable under existing zoning, total density requested, and number, size, and location of affordable units proposed. b. Project financial information, including a pro forma and projected rent schedule. c. Land use and design details and drawings which in the judgment of the Planning Director are sufficient in scope and detail to allow preliminary evaluation of the proposed project's configuration and impact.