HomeMy WebLinkAboutReso 1987-12869 0*:* 640
RESOLUTION NO. 12869
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING HOUSING COOPERATION
AGREEMENT WITH CHURCH AND G, LIMITED FOR
AFFORDABLE SENIOR 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 its senior citizens; and,
WHEREAS, in pursuit of that desire the City Council approved
Conditional Use Permit No. PCC-85-17 on May 28, 1985, which granted a density
bonus to the Oak Terrace Apartment Project, a development by Church & G,
Limited, and,
WHEREAS, the granted density was in exchange for commitment of all 36
units of the Oak Terrace Apartment project for low-income senior rental
occupancy for a period of no less than 25 years; and,
WHEREAS, the Senior Housing Developments Policy of the City of Chula
Vista calls for a written agreement between the City and the developers of
low-income senior rental housing to specify the tenancy requirements and term
of commitment for senior density bonus projects under the Conditional Use
Permit process; and,
WHEREAS, such an agreement, called a Housing Cooperation Agreement
attached hereto and incorporated herein as though fully set forth, has been
negotiated between Church & G, Limited and the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista that said Housing Cooperation Agreement with Church & G, Limited
is hereby approved and the Mayor is authorized to execute that agreement on
behalf of the City.
Presented by Approved as to form by
Paul G. Desrochers, Community ThOmas 'J. HaPr6n~ City Attorney
Development Director
WPC 2615H
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this 6th day of January
19 ~7 , by the following vote, to-wit:
AYES: Councilmembers Halcolm, HcCand]±ss, Cox, Hoore, Nader
NAYES: Councilmembers None
ABSTAIN: Councilmembers NoDe
ABSENT: CouncJ 1members RoDe
~ Vista
city
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 12869
,and that the same has not been amended or repeoled
RECORDING
AND MAIL TO;
C~Z¥~z9 ?/SZ-,~c HOUSING COOPERATION AGREEMENT
THIS HOUSING COOPERATION AGREEMENT ("this Agreement") is entered into
this 6th day of January , 1987, between CITY OF CHULA VISTA,
a mun~c~--q-~-f~l- corporation ("City"), and CHURCH AND G, LIMITED, a California
general partnership ("Property Owner") and/or its successors.
ARTICLE 1 - Recitals
1.1 Authority. City is authorized to enter into binding agreements for
the purpose of protecting public health, safety, and welfare.
1.2 Property Owner. Property Owner is the legal owner of the fee title
to the real property described as (description of property)
Said real property is referred to in this Agreement as "the Real Property."
1.3 Density Bonus. Property Owner has submitted to City a proposal for
the development of some low-income senior housing on the Real Property
pursuant to the City's Senior Housing Development Policy and Chapters 19.04,
19.54, and 19.58 of the Chula Vista Municipal Code.
1.4 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 under Conditional Use Permit PCC-85-17.
1.5 Low/Moderate Income Housing. Said Senior Housing Development Policy
and Chapters 19.04, 19.54, and 19.58 of the Chula Vista Municipal Code
provides, among other things, that when a developer of housing agrees to
construct 100 percent of the total units of a housing development for senior
households of low income, as defined in Section 50093 of the California Health
and Safety Code, a city shall grant a density bonus for said housing
development.
1.6 Agreement. City Council established in Resolution No. 11484, as a
condition to approval of the Conditional Use Permit, a requirement that an
agreement be entered into between City and Property Owner providing for (i)
the density bonus and (ii) the creating and maintaining of lO0 percent of the
dwelling units on the Real Property for low income senior housing.
1.7 Design Review Committee. City's Design Review Committee, on May 23,
1985,'approved Property Owner's site plan, elevations and preliminary plans
for the constructing and maintaining of 36 dwelling units on the Real
Property. Said resolution is referred to in this Agreement as "the Design
Resolution."
1.8 Intent~ These parties intend that this Agreement constitute the
agreement referred to in Paragraph 1.6.
87 065718
CITY AND PROPERTY OWNER hereby agree as follows:
I _VER~ t. LYLF ~
633
ARTICLE 2 - Development Standards
2.1 Density Bonus. Property Owner is entitled to construct and maintain
on the Real Property 36 dwelling units.
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"):
2.2.1 General Plan: "High Density Residential" designation in
City's General Plan.
2.2.2 Zone Regulations: The regulations for Zone R-3.
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 3.6 will not affect, or render inapplicable, the foregoing
Development Standards.
ARTICLE 3 - Low Income Senior Housing
3.1 Definitions. For the purposes of this article, the following
definitions apply:
3.1.1 "Senior Household" means a household of one or two persons at
least one of which is 60 years or age or older.
3.1.2 "Coordinator" means the Housing Coordinator of City.
3.1.3 "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
Statis'tical Area.
3.1.4 "l BR Apartment" means any of the 36 one-bedroom apartment
units on the real property, the monthly rental for which will be no greater
than HUD-published Section 8 existing fair market rent for San Diego County
for a one-bedroom apartment less appropriate utility allowance from Section 8
existing utility allowance schedule for San Diego County for a one-bedroom
apartment.
-2-
634
3.1.5 "Affordable Apartment" means any one of the apartments defined
in Paragraphs 3.1.4 through 3.1.5; "Affordable Apartments" means all of such
apartments collectively.
3.1.6 "Managers' Units" mean those two units on the real property
occupied by resident property managers and exempt from occupancy restrictions.
3.2 Qualification of Tenants. As to the Affordable Apartments, the
following will apply":
3.2.1 1 BR Apartments. Each 1 BR Apartment will be leased only to a
senior household of two persons having an annual gross income not exceeding
80% of the Median Income adjusted for a two-person household or to a senior
household of one person having an annual gross income not exceeding 80% of the
median income adjusted for a one-person household.
3.3 Proof of Qualification. 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 Waiver. Property Owner may apply in writing to the Coordinator for a
waiver, as to a specifically designated Affordable Apartment. Each such
application will be accompanied by written data or other evidence relied upon
by Property Owner to show that, for the near future, there will be no
reasonable demand for such Affordable Apartment{s). Within 30 days after
receipt of any such application, the Coordinator will, in writing, either
grant or disapprove the requested waiver; the failure of the Coordinator to
act within said period will be deemed to be approval of such requested
waiver. If such waiver is granted, Property Owner may lease the Affordable
Apartment(s) affected by the granted waiver to such person{s) and at such
rental as Property Owner determines, subject to each of the following:
3.4.1 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.
3.4.2 Termination of Waiver. At any time after granting any such
waiver, the Coordinator 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) (of 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-
" 635
3.5 Records, Audits. Property Owner will submit to City annual certified
rent rolls, disclosing with respect to each Affordable Apartment (i) 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.
3.6 Term. The term during which this Article 3 applies commences on the
date hereof. Said term ends on the date which is 25 years after the date on
which at least 36 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 (ii) refund to any tenants
who theretofore paid such higher rent the amount of the excess, together with
interest thereon at the rate of l0 percent per annum, computed from the
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 lawful steps to terminate such leasing.
~.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.
-4-
63G
A~T~CLE 5 - General Provisions
5.1 Assignment. The r~ghts and obligations of Property O~ner under th~s
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 or cancelled 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 Section 5.2,
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
alleged to have been caused by reason of Property Owner's activities in
connection with the Real Property.
This hold harmless agreement applies to all damages and claims for damages
suffered or alleged 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
-5-
637
Notices required to be given to Property Owner shall be addressed as
follows:
Church & G, Limited
13715 Poway Rd., E.
Poway, California 92064
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 require 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 Hodification 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
Government Code Section 65854.5. The Council, at such hearing, will determine
the exact modification or suspension which shall be necessitated by such
federal or state law or regulation. Property Owner, at the hearing, will have
the right to offer oral and written testimony. Any modification or suspension
will be taken by the affirmative vote of not less than a majority of the
authorized voting members of the Council.
6.3 Cooperation in Securing Permits. The City shall cooperate with the
Property Owner in the securing of any permits which may be required as a
result of such modifications or suspensions.
ARTICLE 7 - Annual Review
7.1 City and Land Owner Responsibilities. City will, at least every 12
months during the term of this Agreement, review the extent of good faith
substantial compliance by Property Owner with the terms of this Agreement.
Pursuant to Government Code Section 65865.1, Property Owner will have the duty
to demonstrate its good faith compliance with the terms of this Agreement at
such periodic review. Property Owner will be deemed to have satisfied its
duty of demonstration when it presents evidence on its good faith and
substantial compliance with the major provisions of Article 3 of this
Agreement. Either party may address any requirement of this Agreement during
the review. However, ten days' written notice of any requirement to be
addressed will be made by the requesting party. If at the time of review an
'~ 6 3 9 NOTARY ACKNOWLEDGEMENT
San Savings Bank CORPORATION AS A PARTNER OF A PARTNERSHIP
STATE OF CALIFORNIA I SS.
COUNTY OF SAN DIEGO
On this 22 day of December , in the year 1986 , before me, the undersigned, a Notary Public in and for said County and State,
'rsonally appeared TIM J. CON~OLE* * * * , personally kr~wn to me
proved to me on the basis of satisfactory evidence) to be the person{s) that executed this instrument as the
President, and , personally known to me
this(Or pr°ved ta me °n the basis °f satisfactory evidence) to be the pers°n(s) that executod I I~instrument as the Secretary of the~~~~~~
corporation that executed this instrument on behalf of Cb rcb& ' ' the
partnership that executed this instrument, and acknowledged to me that such corporation ~~AR~ PUBU¢-~LI¢ORHIA ~
executed the same as such partner and that such partnership executed the same. PRINCIPAL OFFICE [lq
My C
Witness my hand and official seal: ~'VW'W'~Z'¢'~
638
issue not previously identified in writing is required to be addressed, the
review at the request of either party will be continued to afford sufficient
time for analysis and preparation.
7.2 Opportunity to be Heard. Upon written request to City by Property
Owner, the Property Owner will be permitted an opportunity to be heard orally
and/or in writing at a noticed public hearing regarding its performance under
this Agreement.
7.3 Information to be Provided Property Owner. The City will, to such an
extent as is practical, deposit in the mail to Property Owner a copy of staff
reports and related exhibits concerning contract performance a minimum of ten
calendar days prior to any such review or action upon this Agreement by the
Planning Commission or the City Council.
ARTICLE 8 - Miscellaneous Provisions
8.1 Rules of Construction. The singular includes the plural and the
neuter gender includes the masculine and the feminine.
8.2 Severability. The parties hereto agree that the provisions are
severable. If any provision of this Agreement is held invalid, the remainder
of this Agreement will be effective and will remain in full force and effect
unless amended or modified by mutual consent of the parties.
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 conmditions 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,
Baymu)i~P°~i °~
CHURCH AND G, LIMITED
-~-Cal~fornia general partnership
By
WPC 1422X
5. Total Gross Annual Household Income shown on most recent Federal Tax
return from Previous Calendar Year lattach copies of most recent Federal
Tax returns from previous calendar year 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 t~e City o~ Chula Vista regarding this residential rental
development,
Name
Title
Signature Date
WPC 1422X
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l~Seni°r Density B~nus Project.
COUNCIL AGENDA STATEMENT
Item 7
Meeting Date 1/6/87
ITEM TITLE: Resolution//~mc~ Approving Housing Cooperation Agreement
with Church and G, Limited for affordable senior housing units
SUBMITTED BY: Community Development Directo~
REVIEWED BY: City Manageq~~ (4/5ths Vote: Yes__No X )
On May 28, 1985, the City Council approved Conditional Use Permit No.
PCC-85-17 and took other zoning actions which provided for the development of
Oak Terrace Apartments, an increased density, 36-unit senior apartment project
located at 423 Church Avenue. The Senior Housing Development Policy under
which the project was approved requires that the project units be restricted
to occupancy by and be affordable to low-income senior tenants. An agreement
assuring that tenancy is required and has been prepared. An occupancy permit
will not be issued for the development until this agreement is executed.
RECOMMENDATION: That the Council adopt the resolution approving the Housing
Cooperation Agreement with Church & G, Limited controlling occupancy of Oak
Terrace units.
BOARDS/COMMISSIONS RECOMMENDATION: On April 10, 1985, the Planning
Commission unanimously recommended the development of Oak Terrace for
low-income senior housing.
DISCUSSION:
The Senior Housing Development Policy applies to senior rental projects
receiving density bonuses and/or other development standards waivers through a
conditional use permit under Chapter 19 of the City Zoning Text. In summary,
the policy, which is designed to assure that the project is established and
maintained for exclusive use of low-income seniors, requires that:
1. Tenants be 60 years of age or over.
2. Tenants incomes be at or below 80% of median income.
3. Tenant income be certified.
4. Rental rates be at or below applicable Section 8 Fair Market Rents
levels.
5. The above conditions apply for a period of 25 years.
The attached Housing Cooperation Agreement has been designed to assure
compliance with the conditions of the Senior Housing Development Policy. This
agreement is substantially the same as other density bonus agreements executed
by the City. This document would be recorded and run with the land.
Page 2, Item 7
Meeting Date 1/6/87
The Housing Cooperation Agreement stipulates that the property owner/property
management company must certify the tenants using the Supplemental Rental
Application attached to the agreement, attest to tenant eligibility on the
supplemental application, and keep records on those certifications which would
be available to the City. The County would also be reviewing qualifications
of the tenants.
To monitor the project's compliance, the City would require the project to submit
annually a certified (notarized) rent roll which identified all tenant households
and their incomes. The Agreement gives the City the right to audit the project
records if discrepancies are suspected.
FISCAL IMPACT: Minor staff costs to be paid from the Redevelopment Agency Low
and Moderate-Income Housing Fund are associated with this action.
· b~ the City Council of
Chula Vista, California