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HomeMy WebLinkAboutReso 1986-12339 RESOLUTION NO. 12339 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING HOUSING COOPERATION AGREEMENT WITH FINANCIAL SCENE, INC. FOR AFFORDABLE RENTAL HOUSING UNITS The City Council of the City of Chula Vista hereby resolves as fol 1 ows: WHEREAS, the City desires to promote the provision of affordable housing for its citizens; and, WHEREAS, the City Council adopted Resolution No. 11895 on January 8, 1985, which approved the development plan for Beacon Cove Residential Rental Project subject to the execution of a Housing Cooperation Agreement with the project developer, Financial Scene, Inc., to provide and maintain certain affordable housing units; and, WHEREAS, those certain affordable housing units are to be provided and maintained as partial fulfillment of the affordable housing obligation of the Terra Nova Subdivision; and, WHEREAS, the required Housing Cooperation Agreement, attached hereto and incorporated herein as though fully set forth, has been negotiated between Financial Scene, Inc. and the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that said Housing Cooperation Agreement with Financial Scene, Inc. is hereby approved and the City Manager is authorized to execute the agreement on behalf of the City. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the agreement be recorded in the office of the County Recorder. ~ Approved as to form by Paul G. Desrochers ~_.oma_s d./dt~ron Community Development Di rector City AttOrney WPC 2054H ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 21st day of January 19 86 , by the following vote, to-wit: AYES: Counci]members NcCand.].±ss, Scott, Moore, Na].co].m NAYES: ¢ounci ] members None ABSTAIN: Counci]members cox ABSENT: Counci] members None City of Chulo Vista ~// City Oerk-~' ~' 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 thor the above and foregoing is a full, true and correct copy of RESOLUT[0N NO. ].2339 ,and that the some has not been amended or repealed. DATED (seal) City Clerk CC-660 mmomum mY 86 - 037122 ~ennle ~'I. Fulasz, City CI~ RESOLUTION NO. 12339 1., ~,~ ,-~,OS~,u~d ~ V. O. ~ox 1087 {~8~ J~N 29 ~a VL~ C~o~ia RESOLUTIO~ OF THE CITY COUNCIL OF THE CITY J VERAL LYLE OF CHULA VISTA APPROVING HOUSING COOPERATION~COUNTY_ R~CORD~ AGREEMENT WITH FINANCIAL SCENE, INC. FOR AFFORDABLE RENTAL HOUSING UNITS The City Council of the City of Chula Vista 'hereby resolves as fol 1 ows: WHEREAS, the City desires to promote the provision of affordable housing for its citizens; and, WHEREAS, the City Council adopted Resolution No. 11895 on January 8, 1985, which approved the development plan for Beacon Cove Residential Rental Project subject to the execution of a Housing Cooperation Agreement with the project developer, Financial Scene, Inc., to provide and maintain certain affordable housing units; and, WHEREAS, those certain affordable housing units are to be provided and maintained as partial fulfillment of the affordable housing obligation of the Terra Nova Subdivision; and, WHEREAS, the required Housing Cooperation Agreement, attached hereto and incorporated herein as though fully set forth, has been negotiated between Financial Scene, Inc. and the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that said Housing Cooperation Agreement with Financial Scene, Inc. is hereby approved and the City Manager is authorized to execute the agreement on behalf of the City. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the agreement be recorded in the office of the County Recorder. P~ Approved as to form by Paul G. Desrochers /~TJtomhs d./it~ron Community Development Di rector ~Ci ty Att6r~ey WPC 2054H 1737 ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 21st day of January 19 86 , by the following vote, to-wit: AYES: C0uncilmembers McCandliss, Scott/Moore, Malcolm NAYES: Councilmembers None ABSTAIN: Councilmembers Cox ABSENT: Counci] members None City of Chula Vista ~/ City Clerl~x ~ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California, DO HEREBY CERTIFY thor the above and foregoing is a full, true and correct copy of RESOLUTION NO. 12339 ,ond that the same hos not been amended or repealed. DATED January 27, 1986 (seal) ~/ City CleriC'" ~:~' SC-660 I738 Recording Requested By: The City Council City of Chula Vista 276 Fourth Avenue Chula Vista, California 92010 When Recorded Mail To: The City Clerk City of Chula Vista 276 Fourth Avenue Chula Vista, California 92010 HOUSING COOPERATION AGREEMENT THIS HOUSING COOPERATION AGREEMENT ("this Agreement") is entered into this 21st day of January , 19 86 , between CITY OF CHULA VISTA, a municipal corporation ("City"), and FIi~-~[F~CIAL SCENES INCORPORATED, a California Corporation, doing business as GREAT AMERICAN DEVELOPMENT COMPANY, a California Corporation ("Property Owner"). ARTICLE 1 - Recitals 1.1 Property Owner. Property Owner is the legal owner of the fee title to the real property as described in the legal description attached as Exhibit A. Said real property is referred to in this Agreement as "the Real Property." 1.2 Agreement. City Council established in Resolution No. 11895, as a condition to approval of the Beacon Cove Residential Project, a requirement that an agreement be entered into between City and Property owner providing for the delivery and maintenance of 20% of the dwelling units on the Real Property for low income housing and providing a procedure for monitoring by the City of that delivery and maintenance. 1.3 Intent. These parties intend that this Agreement constitute the agreement~red to in Paragraph 1.2. CITY AND PROPERTY OWNER hereby agree as follows: ARTICLE 2 - Low Income Housinq 2.1 Definitions. For the purposes of this article, the following definitions apply: 2.1.1 "Manager" means the City Manager of City. ' 1739 _ 2.l.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. 2.1.3 "2 BR Apart~ent" means a two-bedroom apartment unit on the Real Property, the monthly rental for which will be no greater than 1/12th of 30 percent of the Four Person Median Low Income Limit; Property Owner will notify the Manager, in writing, of the identifying address or number of each low income 2 bedroom apartment, of which there will be a total of 23. 2.1.4 "l BR Apartment" means a one-bedroom apartment unit on the Real Property, the monthly rental for which will be no greater than 1/12th of 30 percent of the Two Person Median Low Income Limit; Property Owner will notify the Manager, in writing, of the identifying address or number of each low income 1 bedroom apartment, of which there will be a total of 12. 2.1.5 "Affordable Apartment" means any one of the apartments defined in Paragraphs 2.1.3 through 2.1.4; "Affordable Apartments" means all of such apartments collectively. 2.1.6 "Four Person Median Low Income Limit" means 80 percent of the Median Income multiplied by 100 percent (that is, 80 percent of the Median Income), rounded to the nearest $50. 2.1.7 "Three Person Median Low Income Limit" means 80 percent of the Median Income multiplied by 90 percent (that is, 72 percent of the Median Income), rounded to the nearest $50. 2.1.8 "Two Person Median Low Income Limit" means 80 percent of the Median Income multiplied by 80 percent (that is, 64 percent of the Median Income), rounded to the nearest $50. 2.1.9 "One Person Median Low Income Limit" means 80 percent of the Median Income multiplied by 70 percent (that is, 56 percent of the Median Income), rounded to the nearest $50. 2.2 Qualification of Tenants. As to the Affordable Apartments, the following will apply": 2.2.1 2 BR Apartments. Each 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. 2.2.2 1 BR Apartments. Each 1 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. -2- 2.3 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 B 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. 2.4 Waiver. Property Owner ma~ apply in writing to the Manager 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 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 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: 2.4.1 Month-to-Month Tenancy. Anything in Paragraph 2.4 to the contrary notwithstanding, the lease or rental agreement will create only a month-to-month tenancy. 2.4.2 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) (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). 2.5 Records, Audits. Property Owner will submit to City semi-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 reasonably 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- / _ 2.6 Term. The term during which this Article 2 applies commences on the date hereo--/~--. Said term ends on the date which is ten years after the date on which at least 89 of the dwelling units on the Real Property are first occupied. ARTICLE 3 - Breach 3.1 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. 3.2 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 10 percent per annum, computed from the date(s) of payment of the excess by said tenants to the date of said refund. 3.3 Breach by Property Owner. If, wi th respect to any Affordable Apartment, Property Owner breaches this Agreement by leasing to tenants who are not, pursuant to Paragraph 2.2, 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. 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. 3.4 Remedies Not Exclusive. The remedies set forth in Paragraphs 3.2 and 3.3 are not exclusive, but are in addition to all legal or equitable remedies otherwise available to City. ARTICLE 4 - General Provisions ¢.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. 4.2 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. 4.3 Enforcement. Unless amended or cancelled as provided in Section 4.2, 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. 174 4.4 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. 4.5 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of the Agreement inure to the parties' successors in interest. 4.6 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. 4.7 Notices. All notices, demands and correspondence required or provided-i~6~--~6-~er 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: Great American Development Company Attn: Eugene Hirao 600 "B" Street Suite 700 San Diego, CA 92101 and Hanken, Cono& Co. Attn: A1Assad 6526 E1 Cajon Blvd., Suite B San Diego, CA 92115 A party m~ 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. -5- 17 3 ARTICLE 5 - Conflicts of Law 5.1 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: 5.1.1 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. 5.1.2 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. 5.2 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. 5.3 Cooperation in Securin~ 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 6 - Annual Review 6.1 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 2 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 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. 6.2 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. -6- 1744 6.3 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 ? - Miscellaneous Provisions 7.1 Rules of Construction. The singular includes the plural and the neuter gender includes the masculine and the feminine. 7.2 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. 7.3 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 C~ Manager FINANCIAL SCENE INCORPORATED, A CALIFORNIA CORPORATION, DBA GREAT AMERICAN DEVELOPMENT COMPANY, A CALIFORNIA CORPORATION, By (~- ~ ~y~-- WPC 1959H -7- 1745 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 required 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 Including Asset: TOTAL $ Detail: Household Member Income Source $ 5. Total Gross Annual Household Income shown on most recent Federal Tax Return from Previous Calendar Year (attach 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.) $ WPC 1959H 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 1959H -9- / ..7 3 ?