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HomeMy WebLinkAboutReso 2013-043RESOLUTION NO. 2013-043 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO EXECUTE A DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS BY AND BETWEEN THE CITY OF CHULA VISTA AND MONARCH AT TAVERA, L.P. FOR A RENTAL HOUSING DEVELOPMENT TO BE LOCATED ON NEIGHBORHOOD R-29 IN OTAY RANCH VILLAGE 2 IN SATISFACTION OF THE CITY'S BALANCED COMMUNITIES POLICY WHEREAS, on May 23, 2006, the City approved the Otay Ranch Village Two Sectional Planning Area (SPA) Plan by Resolution Number 2006-156; and WHEREAS, the Affordable Housing Program of the SPA Plan provides for five percent of all newly constructed dwelling units being designated for occupancy and affordability by low- income households and five percent for moderate-income households consistent with the City of Chula Vista Housing Element established Policy 5.1.1 of the City's Housing Element of the General Plan ("Balanced Communities Policy"); and ` WHEREAS, an Affordable Housing Agreement (the "Agreement") documents the obligation and will be recorded against all property within Otay Ranch Village 2. As there are multiple land owners within Village 2, each land owner will satisfy their own requirement. The obligations recorded against the property will be binding on Developer and its successors and assigns in the Property. A copy of said Agreement is attached as Attachment A; and WHEREAS, Lot R-29 of Village 2 was purchased and is proposed to be developed by Monarch at Tavera L.P. ("Developer") into a one hundred eighty-seven (187) unit rental community (the "Project"); and WHEREAS, in accordance with Policy 5.1.1, Developer is obligated to meet the Affordable Housing Obligation of 18.7 affordable units ("Affordable Housing Obligation") of which 9.35 units are to be for moderate income households and 9.35 units are to be for low income households; and WHEREAS, the Developer has satisfied 6.35 low income units by proof of transfer of such credits from John P. Baldwin, leaving three (3) low income units remaining Affordable Housing Obligation to be satisfied; and WHEREAS, the Developer voluntarily has proposed to fulfill the Affordable Housing Obligation by constructing ten (10) moderate income units within the Project and fulfill the remaining three (3) low income obligation by providing proof of transfer of credits or payment of an in-lieu fee prior to issuance of building permit; and Resolution No. 2013-043 Page No. 2 WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed project was adequately covered in previously adopted Final Second Tier Environmental Impact Report, EIR 02-02. Thus, no further CEQA review or documentation is necessary. NOW, THEREFORE, BE IT RESOLVED that the City Manager is hereby authorized to execute the Declazation of Covenants, Conditions, and Restrictions ("Agreement"), in substantial form, by and between Monazch at Tavera L.P. in satisfaction of their Balanced Communities Policy Affordable Housing Obligation and the City Manager is further authorized to make such minor modifications as may be required or approved by the City Attorney. Presented by Deputy Cit~1 tanager/Director of Development Services Approved as to form by Resolution No. 2013-043 Page No. 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 19th day of March 2013 by the following vote: AYES: Councilmembers: Aguilar, Bensoussan, Ramirez, Salas and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None ~ ~ J ~ Cheryl Cox, May r ATTEST: Donna R. Norris, C C, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2013-043 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 19th day of March 2013. Executed this 19th day of March 2013. ~.O34.GL0~ ,1 ~~/VO~~ Donna R. Norris, CMC, City Clerk Resolution No. 2013-043 Page No. 4 NO CHARGE ON TffiS DOCIIMENT PER CALIFORNIA GOVERNMENT CODE SECTION 6103 Recording Requested By And When Recorded MaII To: City Clerk City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (TENANT RESTRICTIONSI (Lot R-29 Otav Ranch Village Twol TffiS DECLARATION OF COVENANTS, CONDTTIONS AND RESTRICTIONS ("Declazation") is dated as of the _ day of , 2013, by Monarch at Tavern, L.P., a Delawaze limited partnership ("Declarant") in connection with that certain pazcel of real property ("Property") located in the City of Chula Vista ("Cit}'~, County of San Diego, California, descnbed in Exhibit "A" attached hereto and incorporated herein by reference. RECTTALS A. The City of Chula Vista Housing Element established Policy 5.1.1 of the City's Housing Element of the General Plan ("Balanced Community Policy"),which requires the occupancy and affordability of tea percent (10%) of each housing development of 50 or more units for low and moderate-income households, with at least one half of those units (5% of proj ect total units) being designated for low-income households (the "Affordable Housing Obligation"). The Balanced Community Policy also allows, under specified circumstances, alternative means of compliance. B. The Property is located within Otay Ranch Village 2 in Chula Vista, California (as more particularly described on the Property Legal Description attached hereto as Exhibit "A", the "Property"). Declarant has acquired title to the Property and will be constructing and permanently financing a-one hundred eighty-seven (187) unit housing project (the "Project"). C. In accordance with Policy 5.1.1, Developer is obligated to meet the Affordable Housing Obligation of 18.7 affordable units of which 9.35 units aze to be for moderate income households and 9.35 units aze to be for low income households. 6.35 of the required low income units have been satisfied bytransfer oflow-income affordable housing credits to the project leaving three (3) low income units remaining to be satisfied. D. To meet the requirements of the Balanced Community Policy, the Declarant has agreed to enter into and record ties Declarntion to provide ten (10) units within the Project to be Page 1 of 12 Resolution No. 2013-043 Page No. 5 operated as affordable rental housing for moderate income households (the "Affordable Units"). Prior to issuance of building permit Declarant may satisfy its Affordable Housing Requirement for the remaining three (3) low income unit requirement by Declarant notifying and executing one of the following alternate methods ("Alternate Methods"): 1. Cause the transfer of three (3) low income affordable housing credits from a source within the Otay Ranch Spa Two (Village 2) masterplaaned community, or 2. Payment to the City of Chula Vista of an in lieu fee in the amount of $124,220 per unit for a total of $372,660, which payment shall be placed in the Inclusionary Housing Fund. E. The purpose of this Declaration is to regulate and restrict the rents and occupancy of the Affordable Units and to implement controls on the ownership, operation, and management of the Affordable Units. The covenants in this Declaration are intended to run with the land and be binding on the Declarant and its successors and assigns in the Property. NOW, THEREFORE, Declarant hereby declazes that the Property shall be subject to the covenants, conditions and restrictions set forth below: 1. Restrictive Covenants. Declarant agrees and covenants on behalf of itself and its successors and assigns, and each successor in interest to the Property, that at all times during the term of this Declaration set forth herein ten (10) units at the Property shall be set aside and reserved es "Affordable Units." As used hercin the term "Affordable Units" shall refer to those residential units at the Property which are owned or held available strictly in accordance with the terms and conditions set forth below. (a) Affordable Unit Restrictions. The following restrictions shall apply to the ten (10) Affordable Units. The restrictions set forth. in the Table below shall establish the maximum rental rate, when not precluded by state ]aw, from which a utility allowance, as approved by the City, shall be deducted: TABLE 1: RENT, INCOME AND OCCUPANCY RESTRICTION-CRTTERIA ~.r NUMBER OF MAXAIUM%OF MAXANM MONTHLY YEARS OF MWAIUM tIt.'fr DESCRIPTION AFFORDABLE AREA MEDIAN RENTS AS PERCENTAGE RENT OCCUPANCY UNPCS R'COME OF OF AREA MEDIAN AESTAIC170N EllGIBCETINAN'CS WCOME ADNSTID FOR FAMIl,Y SfZE APPROPRIATE FOR THE LJNrr 1 h!] Lm d 129°/. of Abn ll12°of 30%of 110°h ofAAII 30 ] prsson 21A'2~ 5 120%ofAMI 1/12"af 30%of 110%ofAMI - 20 2pemds 3Ld16a 1 120%oCAMI ln2°of30%ot 110%ofAMI 20 3penms TOTAL ~ ~`..Y~y-.. Y AFFORDABLE iJNIIS l0 Pago 2 of 12 Resolution No. 2013-043 Page No. 6 (b) `Eligible Tenants" are those tenants whose aggregate gross annual income does not exceed the respective percentages set forth in Table 1 above of the annual median income, as adjusted for family size. All the units shall be Affordable Units as referenced in the Table. For purposes of this Declaration, the current annual median income shall be the median income defined by the State Department of Housing and Conunurrity Development ("HCD") as the then current median income forthe San Diego Standard Metropolitan Statistical Area, established periodicallyby HCD, as adjusted for family size. The rents and the occupancyrestrictions shall be deemed adjusted, from time to time, in accordance with any adjustments that are authorized by HCD or any successor agency. In the event HCD ceases to publish an established median income as aforesaid, the City may, in their sole discretions, use any, other reasonably comparable method of computing adjustments in area median income. Notwithstanding anything contained herein to the contrary; to the extent any other restrictions applicable to the Property limit the rent and/or occupancy of the Property, the most restrictive shall apply. (c) An adjustment of rents may be performed annually in accordance with fire rents contained in the applicable City or HCD rent schedules published by the City for the affected unit type and updated from time to time. Further, the rents charged shall be further limited as set forth in Section 14, hereof. 2. Affordable Mazketine Plan Comnliance• Selection of Residents. Declarant shall utilize the City's standardized management. and mazketing plan for rental of all of the Affordable Units. Declazant's marketing of the Affordable Units shall be in compliance with federal and state fair housing laws. The mazketing plan, at a minimum, requires publicizing the availability of the Affordable Units within the City, such as notices in any City-sponsored newsletter, advertising in local newspapers, and notice in City offices. In the event the City implements a master waitine list for affordable housing in the City ("Master List"), then Developer shall provide notices to persons on the Master List of the availability of the Affordable Units, prior to undertaking other forms of marketing. Developer shall give the persons on the Master List not fewer than fifteen (15) days after receipt of such notice to respond by submitting application forms for rental of the Affordable Units. Selection of residents shall be made based upon the Master List, rather than on a fast-come, first- serve basis. Provided, however, (i) all tenants of each Affordable Unit shall meet the income requirements set forth herein and tenancy and eligibility shall be in conformance with the terms and standards set forth in the management marketing plan and no preference may be used for the purpose or effect of delaying or otherwise denying admission to the Property or unit based on the race, color, ethnic origin, gender, religion, disability, or age of any member of an applicant household; and (ii) nothing herein shall restrict Declarant from screening tenants through the application of criteria which is lawful and customary in apartment management in San Diego County and otherwise consistent with federal, state and local regulations and restrictions related to the financing for the Project. 3. Determination: Annual Reoualification. Declazant shall obtain from each person to whom Declazant leases an Affordable Unit a "Supplemental Rental Application" ("Application") in the form of Exhibit "B", attached hereto (or such other form as City may from time to time adopt). Declarant shall be entitled to rely on the Application and supporting documents thereto in determining whether a household is an "Eligible Tenant". Declazant shall retainthe Application and supporting documents for a period of not less than three (3) yeazs after the household ceases to Page 3 of 12 Resolution No. 2013-043 Page No. 7 occupy an Affordable Unit. An Affordable Unit occupied by an Eligible Tenant, shall be treated as an Eligtble Tenant until a recertification of such tenant's income demonstrates that such tenant no longer qualifies as an "Eligible Tenant" 4. Increased Income of Tenants. (a) Non-Oualifvin¢ Household. If, upon recertification of the income of a Tenant of an Affordable Unit, the Declarant determines that a former Moderate Income Household has an Annual Income exceeding the maximum qualifying income for a Moderate Household set forth in Section L (b), such Tenant shall be permitted to continue to occupy the Unit at the market rate rent, and the Owner shall rent the next available Unit to a Moderate Income Household, as applicable; to meet the requirements of Section 1 above. Declarant shall maintain the occupancy requirements set forth in Section 1 (a) above. 5. Relationship with Declarant. The term "Eligible Tenant" shall not include Dularant or any individuals who are partners or shareholders in Declarant or in any entity having an interest in Declarant or in the Property, or officer, employee, agent or consultant of the owner, developer or sponsor. 6. No Student Deoendeats. No Affordable Unit shall be occupied or leased to any person who is a full-time student, or a household comprised exclusively of persons who aze full-time students, unless suchpersons are married and eligible to file a joint federal income tax return. The term "full- time student" shall be defined as any person who will be or has been afull-time student during five calendaz months of the calendaz yeaz in question at an educational institution (other than a correspondence school) with regulaz faculty and students and ora student dependent as defined in the U.S. Internal Revenue Code, unless the taxpayer (upon whom the student in question is dependent) resides in the same dwelling unit. 7. Income of Co-tenants. etc. The income of all co-tenants and/or non-dependent occupants shall be taken into account in determining whether a household is an Eligible Tenant hereunder. 8. Eviction. (a) Any Reason Other Than Over lncome. In the event that a tenant who was properly certified as an Eligible Tenant at the commencement of such tenant's occupancy ceases to be eligible, for any reason other than Annual income exceeding the maximum qualifying income for a Moderate Household, Declarant shall have the right to pursue all legal remedies available under such tenant's lease to cause such tenant to vacate the Affordable Unit. The vacated Affordable Unit shall thereafrer be rented to an Eligible Tenant. 9. Maintenance. (a) Physical Condition of Affordable Units. Afrer completion of the Affordable Units, Declarant shall continually maintain the Affordable units in a condition which satisfies the Housing Quality Standards promulgated by HUD under its Section 8 Program,- as such standards aze interpreted and enforced by City under their normal policies and procedures. City shall have the Page 4 of 12 Resolution No. 2013-043 Page No. 8 right to inspect the Affordable Units from time to time, on reasonable notice and at reasonable times, in order to verify compliance with the foregoing maintenance covenant. Further, each Affordable Unit shall be requalified annually, as to the foregoing maintenance covenant, as part of the annual tenant requalification process descnbed in Section 3 above. Any deficiencies in the physical condition of an Affordable Unit shall be corrected by Declazant at Declazant's expense within thirty (30) days of the identification of such deficiency by City and delivery of written notice of the same to Declarant (unless such deficiency is not capable of being cured within such thirty (30) day period, then such amount of time as City determines is needed, not to exceed one hundred twenty (120) days, provided Declarant commences cure within such thirty (30) day period and continues to diligently pursue cure). . (b) Crime-Free Proiect. At all times during the term ofthis Declaration, the Declarant shall participate in the City's Crime-Free Multifamily Housing Program, or any successor oz similaz progmm established by the City. 10. Monitoring. It is contemplatedtha[,duringthetermofthisDeclaration,theCitywillperfotm the following monitoring functions: (a) preparing and making available to Declarant any general information that the Citypossess regazding income litnitations and restrictions which are applicable to the Affordable Units; (b) reviewing the documentation submitted by Declarant in connection with the annual certification process for Eligible Tenants descnbed in Section 3, above; and (c) inspecting the Affordable Units to verify that they are being maintained in accordance with Section 9, above. Notwithstanding the foregoing description of City functions, Declarant shall have no claim or right of action against the City based on any alleged failure to perform such function. 11. Declaant Required to Pav Monitoring Fees. Declarant shall pay the City Housing Division a set- up fce of Six Hundred Fifty Dollars ($650.00) which shall be paid by Declarant to City within ten (10) days of written demand for the same, Thereafter, in each subsequent yeaz during the term of this Declaration, Declaant shall pay to City an annual monitoring fee, in an amount equal to the set-up fee, increased by three percent (3%) cumulative each yeaz. The annual monitoring fee shall be paid to City annually within ten (10) days after City provides a written invoice for the same. Failure to timely pay such fees shall constitute a material default under the terms and conditions of this Declaration. Both the set-up fee and annual monitoring fee shall be paid to City as a consideration for the lending of funds by Agency to Dedarant 12. Lease Provisions. Declarant agrees that it will include in all of its leases, and cause its successors in interest to include in all of their leases, the following provision: Lessee agrees, upon written request from the Landlord, City of Chula V ista ("City"), to certify under penalty of perjury the accuracy of all information provided in connection with the examination or reexamination of annual income of the tenant's household. Further, tenant agrees that the annual income and other eligibility requirements aze substantial and material obligations of the tenancy and that the tenant will comply promptly with all requests for information with respect to the tenancy from the Landlord, City. Further, tenant acknowledges that tenant's failure to provide accurate information regarding such requirements (regardless of whether such inaccuracy is intentional or unintentional) or the refusal to comply with the Page 5 of 12 Resolution No. 2013-043 Page No. 9 request for information with respect thereto, shall be deemed a violation of this ]ease provision, and a material breach of the tenancy and shall constitute cause for immediate trr~ation of the tenancy. 13. Non-Discrimination. (a) Oblieation to Refrain from Discrimination. Dechuant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of anyperson or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Declarant or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases aze defined in Sections 12926, 12926.1, subdivision (m) acid paragraph (1) of subdivision (p) of Section 12955, and Seciion 12955.2 of the Govenunent Code, with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property or the rental, lease sale of the Property and any dwelling unit thereon. The foregoing covenants shall run with the Property. (b) Nondiscrimination Covenants. Declarant shall refrain from restricting the rental, lease and sale of the Property and any dwelling unit thereon on the basis of race, color, creed, religion, sex, sexual orientation, marital status, ni3xional origin, ancestry, familial status, source of income or disability of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) Deeds. In deeds "The grurtee herein covenants by and for itsell; its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenanu, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (2) Leases. Tn leases "The lessee herein covenants by and for itsel>; its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of anyperson or group of persons, on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the leasing, subleasing, renting, transferring, use, occupancy, tenure or enjoyment of the land herein Leased, nor shall lessee itself, or any person claiming under or through it, establish or permit such practice or practices of disrrlr+~*±stion or Page 6 of 12 Resolution No. 2013-043 Page No. 10 segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." {3) Contracts. In contracts "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee itself or any person claiming under or through it, establish orpermit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." 14. Successors Bound. Declarant covenants, for itself and its successors and assigns, not to sell; transfer, assign or otherwise dispose of ownership of the Property, without the express written consent of the City, whose consent shall notbeunreasonablywithheld. Anyprospectivepurchaser, transferee or assignee shall expressly promise in writing to be bound by all of the provisions hereof, including the covenant in this Section 13 to require successors to expressly assume the obligations herein. 15. Maximum Rent To Be Collected by Declazant. In no event, shall all of the rent, including the portion paid by the Eligible Tenant and any other person or entity, collected by Declazant (the "Total Rent") for any rent restricted unit exceed the amount ofrent set forth in Table 1. Total Rent includes all payments made by the Eligible Tenant and all subsidies received by Declazant. In the case of persons receiving Section 8 benefits, who aze Eligible Tenants, Declarant acknowledges that it shall not accept any subsidy or payment that would cause the Total RenT received for any restricted unit to exceed the maximum rents allowed in Table 1, for any Affordable Unit. Should Declarant receive Total Rent in excess of the allowable maximum rent set forth in Table 1, Declarant agrees to immediately notify City and reimburse the City for any such overpayment. Acceptance by Declarant or its successors in interest, of Total Rent in excess of the maximum rent set forth in Table 1 shall constitute a material breach of thisDeclaration. The City, in its sole and unfettered discretion, may waive a breach of this paragraph if it determines and informs Declazant in writing that Declarant's actions to immediately notify City of the overpayment and reimbursement to City for such overpayment has satisfactorily cured the breach of this paragraph. 16. Telm. This Declaration and the covenants and restrictions contained herein shall be effective on the date this Declazation is recorded and shall remain in full force and effect for a period of twenty (20) years from the date of issuance of the certificate of occupancy for the 187`s residential unit at the Property. 17. Enforcement. Declarant expressly agrees and declares that the City or any successor public entityor agency is a proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity fo enforce the provisions hereofand/or to recover damages for any default hereunder, notwithstanding the fact that such damages or the detriment arising from such defaultmayhaveactuallybeensufferedbysomeotherpersonorthepublicatlarge. Further, the City or any successor public entity or agency shall be the proper party to waive, relinquish, release or modify the rights, covenants, obligations or restrictions contained in or arising under this Declaration. Pagel of l2 - Resolution No. 2013-043 Page No. 11 18. Attomevs' Fees. In the event that any litigation for the enforcement or interpretation of this Declaration, whether an action at law or arbitration or any manner of non judicial dispute resolution to this Declaration by reason of the breach of any condition or covenant, representation or warranty in this Declaration, or otherwise arising out of this Declaration, the prevailing party in such action shall be entitled to recover from the other reasonable attomeys' fees to be fined by the court which shall render a judgment,. ss well as the costs of suit 19. S everability. La the event that any provision or covenant ofthis Declaration is held by a wort of competent jurisdiction to be invalid or unenforceable, then it shall be severed from the remaining portions of this Declaration which shall remain in full force and effect. 20. Covenants to Run With the Land. The covenants contained herein shall constitute "covenants running with the land", and shall bind the Property and every person having as interest therein during the term of this Declaration. Declarant agrees for itself and its suwessors that, in the event that, for any reason whatsoever, a court of wmpetent jurisdiction deternrines that the foregoing covenants do not run with the land, such wvenants shall be enforced as equitable servitudes against the Property. 21. Recordation: Waiver and AmendmentPavmentofFees. This Declarationsha-berewrded in the Office of County Recorder of San Diego, California. No provision of this Declaration, or breach of any provision, can be waived except in writing. Waiver of any provision or breach shall not be deemed to be a waiver of any other provision, or of any subsequent breach of the same or otherpmvision_ Except as otherwiseprovidedherein,thisDeclarationmaybeamended,modifiedor rescinded only in writing signed by Declarant and the City and such amendment or memorandum thereof recorded in the Office of County Recorder of San Diego, California. In the event the City wnsents to such an amendment, modification or rescission, the same shall be wnditioned upon Declarant's payment of all fees and costs incurred by the City with respect to the same, including without limitation attomeys fees. The City may waive the aforementioned vests and fees if the amendment, modification, or rescission is required solely because of City action. , 22. Remedies. (a) Contract Governed by Laws of State of California. This Declaration, its performance, and all suits and special proceedings under this Declazation, shall be constituted in accordance with the laws of the State of California and Federal law, to the extent applicable. In any action, special proceeding, or other proceeding that may be brought azising out ot; under or because of this Declaration, the laws of the State of California and the United States, to the extent applicable, shall govern to the exclusion of the law of any other fonrm, without regard to the jurisdiction in which the action or special proceeding may be instituted. (b) Standin¢. Eouitable Remedies: Cumulative Remedies. Declarant expressly agrees and declares that City or any successor or public entity or agency shall be the proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or is equity, to enfomz the provisions hereofand/or to recover damages for nay default hereunder, notwithstanding the fact that such damages or the detriment arising from such a default may have actually been suffered by Page 8 of 12 Resolution No. 2013-043 Page No. 12 some other person or by the public at large. Further, Declarant expressly agrees that receivership, injunctive relief and specific performance aze properpre-trial and/orpost-trial remedies hereunder, and that, upon any default, and to assure compliance with this Declaration. Nothing in this subpazagraplr, and no recovery to the City, shall restrict or limit the rights or remedies of persons or entities other than City, against Declarant in connection a~th the same or related acts by Declarant. The remedies set forth in this Section are cumulative and not mutually exclusive, except the extent that their awazd is specifically determined to be duplicative by final order of a court of competent jurisdiction. (c) Remedies at Law for Breach of Tenant Restrictions. In the event of any material default undei Sections 1 through 19 hereof regazding restrictions on the operation and the transfer of the Property, the City shall be enfitled to, in addition to any and all other remedies available at law or in equity, recover compensatory damages. If the default in question involves the collection of rents in excess of the rents permitted hereunder, the amount of such compensatory damages shall be the product of multiplying: (a) the number of months that the default in question has continued until the time of trial by (b) the result of subtracting the rents properly chazgeable hereunder for the Affordable Units in question from the amount actually chazged for those Affordable Units. Declazant and the City agree that it would be extremely difficult or impracticable to ascertain the precise amount of actual damages accruing to City as a result of such a default and that the foregoing formula is a fair and reasonable method of approximating such damages. The City shall be entitled to seek and to recover damages in separate actions for successive and separate breaches which may occur. Fhrther, interest shall accrue on the amount of such damages from the date of the breach in question at the rate of ten percent (10%) per annum or the maximum rate than allowed by law, whichever is less. Nothing in this Section shall preclude the awazd of exemplary damages as allowed by law. (d) Exaert Witness. Attorneys' Fees and Costs. The parties agree that the prevailing party in litigation for the breach and/or interpretation and/or enforcement of the terms of this Declaration shall be entitled to thew expert witness fees, if any, as part of their costs of suit, and reasonable attorneys' fees as may be awarded by the court, pursuant to California Code of Civil Procedure ("CCP") §1033.5 and any other applicable provisions of California law, including, without limitation, the provisions of CCP §993. 23. Mortza¢ees Protection. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or chazge of any pemitted deed of trust recorded on the Property provided, however; that any subsequent owner of the Property shall be bound by the covenants, conditions, restrictions, limitations and provisions of this Declazation, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 24. Conversion to Condominiums. In the event Declarant has expressed during the term of this Declaration its intent to convey, transfer or sell of any portion of the Property as a condominium, Declarant shall cause to be executed and recorded covenants and/or a regulatory agreement, as mutually agreed upon, restricting the sale and affordaliility of requred Affordable Units for a period equal to the then remaining term of tlis Declaration, and shall provide tenants with the required Page 9 of 12 Resolution No. 2013-043 Page No. 13 notices of the intent to terminate tenancy and conversion of the Affordable Units in accordance with this Section. (a) Restriction of Sale to Eli 'ble Bum. Prior to submittal of an application to the Califomia Department of Real Estate for a public report, Declarant shall record against the real property, a covenant and/or an individual regulatory agreement, in a form and content approved by the City, restricting the sale and affordability of ten (10) of the total units to Moderate Income Households as required in this Declaration and for the then remaining term of this Declaration. Declarant agrees that the conveyance, transfer or sale of any portion of the Property as a condominium prior to the execution and recordation of such covenant and/or regulatory agreement for the sale of Affordable Units, shall be a breach of this Declaration, entitling the City to immediately exercise any and all of their rights and remedies under this Declaration. (b) Notice to Tenants and Ciri. Declarant shall be responsible to give each tenant and each prospective and new tenant of an Affordable Unit all notices and documents required by this Section. A copy of all notices sent to tenants shall be famished to the City's Development Services Deparhnent. (1) Each tenant shall receive written notice of intention to convert the development to condominium ownership at least 180 days prior to termination of tenancy due to the conversion of the developmentto individual ownership oftheAffordable Units. Following, delivery of such written notice, all prospective and new tenants of an Affordable Unit shall be provided with a copy of such notice. (2) Each tenant shall be given 10 days written notice that an application for a public report will be submitted to the Califomia Department of Real Estate, and that a copy of this report will be available on request, as required by state statutes. (3) Each tenant shall receive written notification of the receipt of the Public Report from the Califomia Department of Real Estate within 5 days of receiving this report, as required by State statutes. (4) No later than sixty (60) days preceding the anticipated date of application for a public report to be submitted to the California Department ofReal Estate, Declarant shall provide the City with written notice of the availability of the Affordable Units for sale, including the type. (detached or attached), size (square footage and number ofbedrooms), location, and required income level of the unit, with specific reference to this Agreement by date and name of the Declarant who executed the Agreement and location of the Property described in Exhibit A of this Agreement (5) If the original rental agreement with the tenant was negotiated in Spanish, Tagalog, oranother language, all written notices required by this Chapter shall be issued-in that language. (~ All notices shall be sent by fast-class mail postage prepaid. Page 10 of 12 Resolution No. 2013-043 Page No. 14 25. Noticin¢ Requirements Prior to Termination. Prior to termination of this Declaration, Declarant shall comply with any and all noticing requirements required under any applicable laws or regulations, including without limitation, the requirements of California Government Code Sections 65863.10 and 65863.11. 26. Suture Authority. All individuals signing this Declaration for a party which is a corporation, a partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to .the City that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they aze signing. Declarant: Monarch at Tavera, L.P., a Delaware limited partnership By: Monarch General Parhrer, LLC Its General Parta@r By: Rodney F. Stone, Manager By:~ i~L~ William Patrick Kruer, Manager Pagc 11 of 12 Resolution No. 2013-043 Page No. 15 ACKNOWLEDGMENT State of California County of San Diego On Macr h~ ~~ , 2013 beforeme, ~{~„~, p/ C~c2cr ,t`vclo ~ Pob\,v personally appeazed gcD,rey F. Sire, ~ lAS',11: a,,,. P . Krae.C' who proved to me on the basis of satisfactory evidence to be the perso s whose names is re ubscnbed to the within instnument andachzrowledgedtomethathe/sh ecutedthesameinhis/her/~j authorizedcapaci ies and that by his/he e signatureQs on the instrument the persoi~s ; or the entity upon behalf of which the perso s ted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing pazagraph is true and correct. WITNESS my hand and of5cial sea Sibnature (Seal) ,n_-;,, STEFANIE GRECO Commia~ion No. 1880587 ^ ~+ rmtMr wwttauraow 2~ ~ iM1 CIEAOCOIMrY wca..,~...vrw~n~sw i Page ]2 of 12 Resolution No: 2013-043 Page No. 16 Exhibit "A" Properly Description All that certain real property situated in the City of Chula Vista, County of San Diego, State of California, described as follows: THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 10 OF CHULA VISTA TRACT NO. 06-OS OTAY RANCH VILLAGE 2 AND PORTIONS OF VII-CAGE 4 "A" MAP, IN THE CITY OF CHULA VISTA, COUN"CY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15350, FII-ED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MAY 26, 2006. EXCEPTING THEREFROM ALL OR., OII, RIGHTS, MINERAL RIGHTS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBONS BY WHATSOEVERNAME KNOWN, GEOTHERMAL STEAM, AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WI'CHIN OR UNDER SAID LAND, TOGETHER WITH THE PERPETUAL RIGHT OF DRII-LING, MB~tING, EXPLORING AND OPERATING THEREFOR AND STORING fi' AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRII.L AND MINE LANDS OTHER THAN SAID LAND OIL OR GAS WELLS, 7LiNNELS AND SHAFTS INTQ THROUGH OR ACROSS THE SUBSURFACE OF SAID LAND AND TO BOTTOM SUCH WHIPSTOCKED OR DIILECTIONALLY DRILLED WELLS, TUNNELS AND SHAFT S UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF,. AND TO REDRII,L, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER, THE RIGHT TO DRSI-L, MINE, STORE, EXPLORE AND OPERATE THROUGH TH$: SURFACE OF THE UPPER FIVE HUNDRED (500) FEET OF THE SUBSURFACE.OF SAID LAND, AS RESERVED BY OTAY PROJECT L.P., A CALffORNIA LavIITED PARTNERSHIP IN DECLARATION OF COVENANTS, CONDI-IIONS AATD RESTRICTIONS OF MONTECITO AT OTAY RANCH, RECORDED OCTOBER 4, 2005, AS INSTRUMENT NO. 2005-OBS6104 OF OFFICIAL RECORDS. (APN: 644-310-10) Resolution No. 2013-043 Page No. 17 ~Yliltllt ~$" Supplemental Rental Application Tavern offers apartments located at and 3 bedroom antra. Tavern Apartme¢tc Supplemental Application in Chula Vista. The mfrs consist of 1, 2 For more information about Tavern, the snits, floorplans, etc, please stop by the Rental Office at .Chula Vista CA The ptupose of tkds progam is to provide affordable rental opportunities for ]ow-income households and to enstae that CiTy of Chula Vista meet the goals set fords in the City's Housing Element, Implementation Plan, and Redevelopment goals. The City of Chula Vista and Menazch az Tavern, L.P. thanks you for your interest in and requests that yon read this information in its entirety. It is very important that yov understand ALL of the program requirements. Once you agree to rent an affordable unit you aze bound by all of the requvements. AFFORDABLE HOUSING UNTTS In order to qualify to rent an Affordable Hovsing Unit, applicants must meet ALL of the requirements outlined within this document ' income xestriGions apply. Please refs to the CLM blow for the MAXIMUM gross ivcome base! upon hwsehoW sin, which is deaned m the total mtmberafpeopk residingwithin thehausehdd. Yw must be abkmprohde evidmoetbv the yeopk you fist as household oecupenu wID rrdde m thcaffordabk uvit. t3oss inocme is the told amosmt of income eamd by a- pasoas, ova the age at' 18, within the houshold before all s[endad wiihdmwals (including fedad tax, store tax, social ssrmty, etc.) Unit Description No. of Units Target Income Group 2013 Proposed Rents I br~1 ba 4 120% of AMl 2br2 ba 5 120%ofAbII 3 br2ba I 120% of AM] $ Resolution No. 2013-043 Page No. 18 Fv:hibit `B" -Supplemental Rental Application ADDTTIONAL AFFORDABLE HOUSING PROGRAM REQUII2EMENTS RENT SELECTION CRTTERIA [Insert if Applicable] The Property Management Company will nse the following criteria in order to determine priority for rental of an Affordable Ualt. A point system has been establBhed so that applicants with a higher number of points wi[I receive preference for units. [Insert Point System if Applicable] Resolution No. 2013-043 Page No. 19 Exhibit `B" -Supplemental Rental Application AFFORDABLE HOUSING RESTRICTIONS APPLICATION REVIER' PROCESS Applicants will be contacted by the rental office staff via U.S. mail acknowledging receipt of complee application and supporting documentation The property manage and the City will review all applicadons to determine eligibility. - Eligible applications will be forwarded to to be reviewed for eligibility. Please be advised that your financial informadoa.will be reviewed for two different purposes: To determine that your household annual income does NOT exceed the maximum allowedby the City of ?:hula Vista for the Affordable Housing. ALL income will be considered for all pusons living m the home who are 18 years or oldu, even if the income is not taxable income. To detemssac ifyour income, employment history and credit rating are suffiriem to qualify for anmtal. Before you submit your complete application and supporting documentation please ask yourself the following questions. Do yov: ~ - Meet ALL the program requirements? Have a good credit rating? Have stable income? If you have answered yes to ALL the above questions....:.... Fill oui the attached application and submit it plus ALL required documentation and MAIL to: ATTN: Monarch at Tavern, L.P. Resolution No. 20] 3-043 Page No. 20 Erlubit'B" -Supplemental Renral Application AFFORDABLE HOUSLNG UNIT APPLICATION (1) APPLICANT #I Name Socia] Security Number Abe Address City State Zip Codc Employer Name and Address PositionlPitle Home Phone Work Phoac Marital Status: ^ SingJe ^ Divorced ^ Married Gender. ^ Male ^ Female 2) APPLICANT #2 Name Social Security Numbei Age Address City State Zip Code Employer Name and Address Positionllitle Home Phone Work Phone Marital Status: ^ Single G Divorced ^ Married Gender. ^ Male ^ Female . HOUSEHOLD INF`ORMATION:. LisiALL hoteseho(d members IncludingApp[icanr(s) that will reside in the Ajjordable Housing Unit. Attach proof of thu information Total # of persons in Household _ Total yearly Household Income $ Resolution No. 2013-043 Page No. 21 Exhibit'B" -Supplemental Rental Application Name Age M/F Relationship to Applicant Name Age M/F Relationship to Applicant Name ~ Age M/F Relationship to Applicant Name Age M/F Relationship to Applicant Name Age M/F Relationship to Applicant Name Age M!F Reationship to Applicant Resolution No. 2013-043 Page No. 22 Exhibit "B" -Supplemental Rental Application RENTER SELECTION CRITERIA INFORMATION: [Insert ifApp[ieabfeJ If you respond F'ES to any of the questions below, you MUST provide written evidence with your application satisfactory to the City of Chula Yista or you may not receive all eligible points. 1) Do/Did you hive to leave your most recent PRIMARY residence due to either: I) the expiration of affordable housing covcnaats; 2) an action of the City of Chula Vista or its Redevelopment Agency; 3) closure of the mobilehome park that you reside ia; or 4) the conversion from rental condominiums tofor-sale condominitnns. Please note that in order for you to be eligble trader this-category at least one member of your household must have resided in the unit for at least one yeaz. In addition, the displacement mint have occurred within the last year or is scheduled to occur within one yeaz. You must suhrnlt evtdence of your displacement and length of residency with your application in order to be awarded points in this category. ^ Yes ^ No Haw long has this home been your primary residence? ^ 2+ yeazs ^ 1 yeaz ^ Less than 1 year 2) Do you have one member of your household whose principal place of residence is located within the City of Chula Vista? Yes ^ No 3) Doyouhaveonememberofyotrrhouseholdwhoseprincipalplaceoffull-time employment is located within the City of Chula VistaT Yes ^ No 4) Do you have one member of your household who is expected to live within the City as a result of a bona fide offer of employment within the City of Chula Vista? Yes ^ No Resolution No. 2013-043 Page No. 23 Exhibit `B" -Supplemental Renter] Application AFFORDABLE HOUSING APPLICATION CHECKLIST This checklist coa'svu a list of docurncnts that you aze REQUII2ED to submit, along with the comp]acd Application as part ofthe application review process. Please review the list carefully and include COPIES of all doamments thaiyou are submitting. If there aze any documents listed that you do not believe you are required to submit pleaseindicate N/A and state the reason why the information is not attached You must attach this signed checklist as part of your application packet. APPLICATIONS THAT ARE MISSING DOCUMENTATION WILL NOT BE CONSIDERED. ^ Six months ofmost current and consecutive bank(mvesnneat/retiremmt statements forALL accounts (all pages) ^ Most recent paycheck stubs covering a 30-day period for each borrower ^ Most recent three (3) years W-2s and/or 1099s for each borrower ^ Most recent three (3) years Federal Tax Rettaas for each borrower (all schedules) - ^ Complete divorce decree(s) with all attachments, if applicable ^ Complete banlauptcy papers with all schedules and discharge papers for bankuptcies within the last 7 yeah, if applicable ^ Copy of Resident Alien Card, front and back, if applicable or other appropriate proof of legal U.S. residency If you are self-employed, also provide the following: ^ Most recent three (3) years tax returns and copies of 10405, W2s, 1099s ana/or K-15 for wch bosower ^ Limited or General Partnership retrns (if ownership interest is 25% or greater)-copies of form 1065 ^ Sub Chapter S Corporation returns (if ownership interest is 25 % or geater)-copies of form 1120 S ^ U.S. Corporation retvms (if ownership interest is 25% or greeter)- copies of form 1120 ^ YTD Profit and Loss Statement (in some cases this may need to be audited) Resolution No. 2013-043 Page No. 24 Exhibit "B" - Supplemrntal RmW Application AFFORDABLE HOUSING Ui\TT AFFIDAVTT By signing below each applicant makes the following certifications: I, the underrigned, es par[ of my epp5®tion for an Affordable Housing Unil mtttin the Rosiria Vista Affordable Housing Pmjat (the'"Program"j, and is cmnzv® ati[k attntal of a avki-Enmity apartment (the "Residence") and ao appliraaon fw a tmil (Eac "Applicadon") Lom Rosins Visor LP. I undasmnd and agree widr thesaswecs I have prohdoi, and do [unhamom cadfy tke folkrving 1. That those people who I expect to share occupancy of dre Residence with me are lined under the Household Inforuutioa section of the Application. 2. That my spouse is an Applicant for the Program and must sign this Application. 3. That 1 will submit true and complete copies of all requested documeatatioa 4. That the Residence will be occupied and used as my principal place of residence . 5. That my income does not exceed the program income limiu AFFORDABLE HOUSING UNTT CERTIFICATION I acknowledge and understand that this Affidavit, as completed above, will be relied on for determiaingmy eligibility for An Affordable Housing Unit. I acknowledge that a material misstatement negligently made by me in this Affidavit or in any other connection with my Application for an Affordable Housing Unit will constinrte aviolation punishable by a fore and possible criminal penalties imposed by law, and will result in the cancellation or revocation of the Loan. I aclmowledge that any false statement or misrepresentation or the fraudulent use of any instrument, facility, article, or other valuable thing or service ptasuaat to my participation in the Program is punishable by fine. RENTER DATE RENTER DATE