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HomeMy WebLinkAboutReso 1985-11941 RESOLUTI ON NO. 11941 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING HOUSING COOPERATION AGREEMENT HITH MEDICI EQUITIES FOR AFFORDABLE SENIOR HOUSING UNITS fo 11 OltS : The City Council of the City of Chula Vista hereby resolves as HHEREAS, the City desires to promote the provision of affordable housing units for its senior citizens; and, HHEREAS, in pursuit of that desire the City Council approved Conditional Use Permit No. PCC-84-5 on December 13, 1983, which granted a density bonus to the Canterbury Court Housing Project, a development by Medici Equities; and, WHEREAS, the granted density was in exchange for commitment of all 207 units of the Canterbury Court 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 Medici Equities and the City. NOH, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that said Housing Cooperation Agreement with Medici Equities is hereby approved and the Mayor is authorized to execute that agreement on behalf of the Ci ty. Presented by Approved as to form by I~&t aul G. esrochers, Community Development Director / " ::t L:',4 "L- n, City Attorney ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 19th 19 85 ,by the following vote, to_it: day of February -- AYES: Councilmen Malcolm, McCandliss, Scott, Moore, Cox NAYES: Councilmen None ABSTAIN: Councilmen None ABSENT: Councilmen None ATTEST ~fVl!~ MaY~he City of Chula Vista ;L~~ '/;)(~~ City Clerk o STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) s s. 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above and foregoing is a full, true and correct copy of RESOLUTION NO. 11941 ,and that the same has not been amended or repealed. DATED (seal) City Clerk CC-660 . 290 85';';;'375007 . ~ BY .' . DI"G m:QIJ.E5ir:.D ~t[".c.DR 1',. ANO MAIL 10: . /7 _ I. ii~ C-&/Ut:. i --;d L/--u., ~ C-A~ tI~ (]/I- c; 2. 0 I () .-- - I . '" CORDi: D:CJ .-:-1 I of'~ ;CI.~~L f~f(:CHtD':; , : OF ~~,','~ ~) ~~~O CD\iri j i,; " RESOLUTI ON NO. 11941 19B5 OCT -9 AM II: 02 J _YERA L. LYLC:_ I LE9UNTY RECOROE!.J . .' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING HOUSING COOPERATION AGREEMENT HITH tlEDICI EQUITIES FOR AFFORDABLE SENIOR HOUSING UNITS ;\10 FEL The City Council of the City of Chula Vista hereby resolves as fo 11 O\~s: HHEREAS, the City desires to promote the provision of affordable housing units for its senior citizens; and, HHEREAS, in pursuit of that desire the City Council approved Conditional Use Permit No. PCC-84-5 on December 13, 1983, which granted a density bonus to the Canterbury Court Housing Project, a development by Medici Equities; and, WHEREAS, the granted density was in exchange for commitment of all 207 units of the Canterbury Court project for low-income senior rental occupancy for a period of no less than 25 years; and, HHEREAS, 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, HHEREAS, such an agreement, called a Housing! 8ooperation Agreement attached hereto and incorporated herein as though fully set forth, has been negotiated between Medici Equities and the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that said Housing Cooperation Agreement with Medici Equities is hereby approved and the Mayor is authorized to execute that agreement on behalf of the City. Presented by Approved as to form by ~\ 1 jJ I . - ; _ -"C/.' '.{ ,,/ ... 6,_.. ''7 au G. esrochers, Community Development Director . ..// .' .' L.-rr .!. ,//\~(,fv IJ~':'tC ';i~/--;{~,":;:"l L !/!-l..- T~omas J. Har~on, City Attorney . , \ v 292 HOUSING COOPERATION AGREEMENT THIS HOUSING COOPERATION AGREEMENT ("this Agreement") is entered into thi s 19th day of February , 1985, between CITY OF CHULA VISTA, a municipal corporation ("City"), and MEDICrTQUITIES, a California general partnershi p ("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 appl icati on, approved a densi ty bonus for the real property under Conditional Use Permit PCC-84-5. 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 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 deve 1 opment. 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 Ci ty and Property Owner provi di ng for (i) the density bonus and (ii) the creating and maintaining of 100 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 January 5, 1984, approved Property Owner's site plan, elevations and preliminary plans for the constructing and maintaining of 207 dwelling units on the Real Property. Said resolution is referred to in this Agreement as "the Design Resolution." R /1 r~/ " 293 1.8 Intent. These parties intend that this Agreement constitute the agreement referred to in Paragraph 1.6. CITY AND PROPERTY OWNER hereby agree as follows: ARTICLE 2 - Development Standards 2.1 Density Bonus. Property Owner is entitled to construct and maintain on the Real Property 207 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 foll owi n9 as presently constituted ("the Development Standards"): 2.2.1 General Plan: "High Density Residential" designation in Ci ty' s General P1 an. 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 Conf1 ict. In the event of conf1 ict between Paragraph 2.1 and any other of the Development Standards, said paragraph will prevail. 2.4 Effect of Termination of Paragraph 3.6 will not affect, Development Standards. ARTICLE 3 - Low Income Senior Housing Article 3. Termination or render inapplicable, pursuant to the foregoi ng 3.1 Definitions. For the purposes of this article, the following definitions apply: 3.1.1 "Senior Househo1 d" means a househo1 d 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. -2- ~J..\ 9--\\ , 294 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 Depa rtment of Housi n9 and Urban Development (pursuant to Secti on 8 of the United States Housing Act of 1937) for the San Diego Standard Metropolitan Statistical Area. 3.1.4 "2 BR Apartment" means any of the 28 two-bedroom apartment uni ts on real property, the monthly rental for whi ch wi 11 be no greater than HUD-published Section 8 existing fair market rent for San Diego County for a two-bedroom apartment less appropriate utility allowance from Section 8 existing utility allowance schedule for San Diego County for a two-bedroom apartment. 3.1.6 "Affordable Apartment" means anyone of the apartments defined in Paragraphs 3.1.4 through 3.1.5; "Affordable Apartments" means all of such apartments collectively. 3.1.7 "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 2 BR Apartments. Each 2 BR Apartment will be leased only to a senior household of one or two persons having an annual gross income not exceeding 80% of the Median Income adjusted for a two-person household. 3.2.2 1 BR Apartments. Each 1 BR Apartment will be leased only to a senior househol d of two persons having an annual gross income not exceeding 80% of the Medi an Income adjusted for a two-person househol d or to a seni or 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 Appl i cati on" ("the Appl i cati on") in the form of Exhi bit A attached hereto (or such other form as Ci ty may from time to time adopt and of whi ch 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 1 east two years after the appl icant thereof ceases to occupy such Affordable Apartment. 3.1.5 "1 BR Apartment" means any of the 179 one-bedroom apartment units on the real property, the monthly rental for which will be no greater th" HUI>-p obl "h.d S.",,, 8 ,,' ct' 'g "i' ...,,,t ",t ,,, S" OJ 'g' C,,,,,, for a one-bedroom apartment less appropriate utility allowance from Section 8 existing util ity allowance schedule for San Diego County for a one-bedroom apartment. -3- ~,,\\ (?-~\\ 295 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 appl ication, the Coordinator will, in writing, either grant or di sapprove the requested wai ver; the fail ure of the Coordi nator 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 wai ver 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 appropri ately notify the tenant( s) and occupant( s) (of the Affordabl e Apartment( s) for which the grant of wai ver has been termi nated) that the month-to-month tenancy thereof wi 11 be and become termi nated 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). 3.5 Records, Audits. Property OWner will submit to City annual certified rent rolls, disclosing with respect to each Affordable Apartment (i) monthly rent rate, (i iJ number of occupants for whi ch the Affordab1 e Apartment is rented and the income of such occupant( s). If City determi nes 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 del iver to City the names of three certified pub1 ic 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 sai d 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 104 of the dwelling units on the Real Property are first occupi ed. 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- \ C\q ~.\\ ~ 296 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 permi tted herei nand (i i) 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. 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. 4.4 Remedies Not Exclusive. The remedies set forth in Paragraphs 4.2 and 4.3 are not exclusive, but are in addition to all legal or equitable remedies otherwise available to City. ARTICLE 5 - General Provisions 5.1 Assignment. The rights and obligations of Property Owner under this Agreement may be transferred or assigned, provided such transfer or assignment is made as a part of the conveyance of the fee of all or a portion of the Real Property. Any such transfer or assi gnment wi 11 be subject to the provi si ons of this Agreement. During the term of this Agreement, any such assignee or transferee will observe and perform all of the duties and obl igations 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 adopti on. The term "thi s Agreement" includes any such amendment properly approved and executed. 5.3 Enforcement. Unless amended or cancelled as provided in Section 5.2, thi s Agreement is enforceabl e by any party to it despi te a change in the applicable general or specific plans, zoning, subdivision or building regulati ons adopted by Ci ty whi ch alter or amend the rul es, regul ati ons 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 -5- \~..\ \ ~_\ 297 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 representati ves from acti ons 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 lnure to the parties' successors in interest. 5.6 Relationship of Parties. It is understood that the contractual relationship between City and Property OWner is such that Property owner is an independent contractor and not an agent of City. 5.7 Notices. All notices, demands and correspondence required or provided for under this Agreement shall be in writing and delivered in person or dispatched by certified mail, postage prepaid. Notice required to be given to City shall be addressed as follows: The City of Chula Vista 276 Fourth Avenue Chula Vista, California 92010 Notices requi red to be gi ven to Property Owner shall be addressed as follows: Medi ci Equiti es 18300 Von Karmen Avenue Suite 420 Irvine, California 92715 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- '\~\ ~_'\\ 298 6.1.2 Modification Conferences: The parties will, within 30 days, meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation. 6.2 Council Hearings. Thereafter, regardless of whether the parties reach an agreement on the effect of such federal or state law or regulation upon thi s Agreement, the matter wi 11 be schedu1 ed for heari ng 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 securi ng of any permi ts whi ch may be requi red 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 duri ng the term of thi s Agreement, review the extent of good faith substantial compl iance 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 peri odi c revi ew. Property Owner wi 11 be deemed to have sati sfi ed 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 revi ew. However, ten days' wri tten notice of any requi rement to be addressed will be made by the requesting party. If at the time of review an issue not previ ously identified in wri ti ng is requi red to be addressed, the review at the request of either party will be continued to afford sufficient time for analysis and preparation. 7.2 op~ortunity to be Heard. Upon wri tten request to Ci ty by Property Owner, the roperty 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. 1'\ ~\ ~_'\> -7- (, 299 8.2 Severability. The parties hereto agree that the provlslons 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 appropri ate authori ties of the Ci ty 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. WPC 0925X \<\J..\ ~\ -8- "-.300 SUPPLEMENTAL RENTAL APPLICATION The rental unit for which you are applying has received assistance under programs to encourage more affordable housing. the unit carries a rent level restriction and is restricted to low and moderate income households. governmental As a resul t, occupancy by 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 Assets: TOTAL $ Detail : Household Member Income Source $ -9- :\ '\-\ \ ~~\ v. 301 5. Total Gross Annual Househol d 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. Incl ude other verification of income not appeari ng 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. Si gnature Applicant Date ------------------------------------------------------------------------------- DWNER'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 househol d income of $ allowed under the terms of a Development Agreement with the City of Chula Vista regarding this residential rental development. Name Ti tle Si gnature Date WPC 0925X -10- 0.,-\\ ,\ ~-