HomeMy WebLinkAbout2010/06/15 Item 8
CITY COUNCIL
AGENDA STATEMENT
~\~ CITY OF
~ CHULA VISTA
JUNE 15,2010
1tem~
SUBMITTED BY:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING MODIFICATION OF A PREVIOUSL Y
GRANTED DENSITY BONUS (KINGS WOOD MANOR) FROM FOR-
RENT UNITS TO FOR-SALE UNITS AND APPROVING A FIRST
AMENDMENT TO A HOUSING COOPERATION AGREEMENT
FOR KINGS WOOD MANOR REFLECTING THE MODIFICATION
FROM FOR-RENT UNITS T-9rfDR-SALE UNITS
DEPUTY CITY MANAG~VELOPMENT SERVICES
DIRECTOR .j}JJ-
CITY MANAGER 'r .
4/STHS VOTE: YES D NO I X
ITEM TITLE:
REVIEWED BY:
SUMMARY
On May 9, 2000, IPMG, Inc. received a twenty-five percent (25%) density bonus and
modifications of certain development standards pursuant to California Government Code Section
65915 and the City of Chula Vista Housing Element. The approval of the density bonus was to
facilitate the construction of 10 affordable rental units to an existing 40 unit multifamily
residential development, for a total of 50 units. The project is a 3.32 acre site located at 54-94
Kingswood Drive. The project has received development approvals but has not yet been
constructed. The proposed action would allow the Property Owner to maintain the approved
density bonus with the conversion to condominiums to create affordable homeownership
opportunities.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project involving a density
bonus transfer from a rental to a for-sale development and the conversion of 40 multifamily units
to condominiums for compliance with the California Environmental Quality Act (CEQA) and
has determined that the action qualifies for a Class 32 categorical exemption pursuant to Section
15332 [In-Fill Development Projects] of the State CEQA Guidelines because the proposed
project meets the conditions set forth in this section. Thus. no further environmental review is
necessary.
RECOMMENDATION
That the City Council adopt the resolution.
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JUNE 15,2010, TtemL
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DISCUSSION
On May 9, 2000, the City Council approved a Housing Cooperation Agreement and received a
twenty-five percent (25%) density bonus and modifications of ccrtain development standards
pursuant to California Government Code Section 65915 and thc City of Chula Vista Housing
Element. The density bonus was to facilitate the construction of 10 additional affordable rental
units to an existing 40 unit multifamily residential development. The project is a 3.32 acre site
located at 54-94 Kingswood Drive.
Subsequently, the Propcrty Owner determined that a conversion to condominiums was more
appropriate for the site, and an application for a tentative parcel map was submitted through
Development Serviccs. The required final Parcel Map was approvcd for all fifty units.
Densitv Bonus:
Based on thc Property Owner converting apartments to a condominium project, and as specified
in Section 65915.5 (a) of the California Government Code, the City shall grant a minimum 25
percent increase over the otherwise maximum residential density, unless a lesser percentage is
elected by the Property Owner and at least one additional concession or incentive to the Property
Owner.
The Property Owner has elected to satisfy the affordable housing requiremcnt by providing 33
percent of the total units for low and moderate income persons and families. All the restricted
units are three-bedroom units. Of the ~venteen (17) restricted units, three (3) of the units will be
restricted for sale to low-income households, defined as households with an income at 80% or
below of the Area Median Income (AMI). Per State law, the sales price tor the low-income units
is based upon a price that an individual or family at 70% of AM! could qualify for, even though
the buyer may have a maximum income of 80% of AMI. This is to ensure greater affordability.
The remaining fourteen (14) units will be restricted for sale to moderate income households,
defined as households with an income at 120% of AMI. These units are priced, in accordancc
with Statc law and are calculated based upon an individual or family qualifying at 110% of AMI,
although buyers can qualify with a maximum income of 120%.
Number ofVnits Affordability Gross Maximum
Income* Sales Price**
Three (3) Low-income (80%) $62,800 $139,334
Fourteen (J 4) Moderate-income (120%) $90,600 $303,804
*Estimates bascd on 2010 HUD Income Limits, adjusted for high cost area, based on a family of four
** Based upon Atfordable Sales Price Formula, actual maximum price subject to change
The affordable sales price calculation is based upon the requirements of Section 50052.5 of the
Health and Safety Code. Additionally, an equity sharing agrecment is required by State Law for
a period of no less than 30 years from the date of the first sale. The pricing formula is further
detailed as Attachment A.
The attached First Amendment to Housing Cooperation Agreement (Attachment B) to be
executed between the City and the Property Owner specities the atTordability and sales
restrictions in compliance with the requircments of Statc Law and modifies the requirements to
those specific to a condominium conversion. The Housing Cooperation Agrcement will be
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JUNE 15,2010, TtemL
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recorded against the property and its restrictive covenants will run with the land. The Agreement
articulates the sales restrictions, income qualification of buyers, sales price calculation, and the
equity share calculation for resale. Staff recommends the execution of the First Amendment to
Housing Agreement in substantially the form presented for the City's consideration. The original
I-lousing Cooperation Agreement is included as Attachment C.
DECISION MAKER CONFLICT
Statl has reviewed the property holdings of the Redevelopment Agency and has found no
property holdings within 500 feet of the boundaries of the property which is the subject of this
action
CURRENT YEAR FISCAL IMP ACT
There is no fiscal impact in the current year.
ONGOING FISCAL IMPACT
There is no on-going fiscal impact.
ATTACHMENTS
A. Sales Price Formula
B. First Amendment to Housing Cooperation Agreement
C. Housing Cooperation Agreement
Prepare(j by: Diem Do, Senior Project Coordinator
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ATTACHMENT A
Affordable Sales Pricing Calculation
Unit Size by No. of Bedrooms
(1 Person Per Bedroom +1)
Qualifying Percent of Area Median Income (AMI) for Affordable Housing
Equals Annual Household Income Based Upon Qualifying Equals
Percent of AMI
Monthly Household Income Based Upon Qualifying Percent of AMI
Times Percent of Household Income Attributable to Housing Expenses
Equals Annual Dollars Allowed for Housing Expenses
Equals Monthly Dollars Allowed for Housing Expenses
Less Real Estate Taxes (Annual 1% of Purchase Price)
Less Insurance
Less Utilities
Less Home Owners Fee
Equals Annual Dollars Available for Debt Service
Divided by Annual Loan Constant
Equals Maximum Loan Amount that Can Be Used for Home Purchase
Plus Down Payment - 3%
Equals Maximum Allowable Purchase Price (see Footnote #3)
Buyer's Monthly Mortgage Payment - Debt Service/12 months
Attachment A
Kinuswood Manor First Amendment to Housing Cooperation Agreement
b 8-4
City Council Item _
June 15,2010
Low Moderate
Income Income
3 Bdrms 3 Bdrms
70% 110%
$54,950 $86,350
4,579 7,196
30% 35%
16,485 30,223
1,374 2,519
1,393 3,038
250 250
1,585 1,585
3,012 3,012
10,245 22,337
0.0758 o 0758
135,154 294,689
4,180 9,114
$139,334 $303,804
$854 $1,861
Attachment 8
RECORDING REQUESTED BY:
City ofChula Vista
WHEN RECORDED MAIL TO:
City of Chula Vista
Office of the City Clerk
Attn: City Clerk
276 Fourth Avenue
Chula Vista, CA 91910
FIRST AMENDMENT TO HOUSING COOPERATION AGREEMENT
This first amendment to Housing Cooperation Agreement ("First Amendment") is made as of
,2010, by and between the CITY OF CHULA VISTA, a municipal corporation
("City") and'Hamilton Plaza LTD, a California Limited Partnership ("Property Owner") and/or
its successors or assignees,
Recitals
A. The City entered into a Housing Cooperation Agreement ("Agreement") with
Property Owner on May 9, 2000, for the multifamily affordable housing development known as
Kingswood Manor Apartments, located at 54 through 94 Kingswood Drive in the City of Chula
Vista, California (the "Project"). A copy of the Agreement is attached as Attachment A and is
hereby incorporated by reference into this First Amendment.
B. The Agreement authorized a density bonus for the development of ten (10)
additional three-bedroom units for low-income households at or below 80 percent of the Area
Median Income ("AMI"). The City was required to provide the Property Owner with incentives
for the production of low-income housing units within the development if Property Owner agrees
or proposes to construct certain percentages of the development for low and/or very low-income
households. In response to Property Owner's application, the City Council approved a density
bonus and additional incentives.
C.' The parties now desire to amend the Agreement to reflect a modification to the
use of the Project from rental to for-sale.
Now, therefore, for good and valuable consideration, the parties agree to the following:
1. The Agreement is amended as follows:
ARTICLE l-Recitals
(a) 1.4 Proiect. Property Owner proposes to construct ten (l 0) additional units to an
existing forty (40) unit residential development, with any three (3) three bedroom units
affordable to low income households at or below 80 percent of the Area Median Income
Attachment B~Kingswood Amended Agreement.docx 1
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("AMI") and fourteen (14) three bedroom units affordable to moderate income
households at or below 120 percent of AMI, at the site west of the intersection of Tobias
and Kingswood Drive, also known as 54 through 94 Kingswood Drive, in the City of
Chula Vista ("Project").
ARTICLE 2-Developmcnt Standard
(b) Section 2.3 of the Housing Cooperation Agreement is amended to read as follows:
2.3 Low and Moderate Income Housing. As set forth in Article 3, three (3) dwelling
units shall be sold to buyers qualified as low-income, with income not to exceed 80
percent of the AMI, and the unit shall be priced for low-income buyers at no more than
70 percent of the AMI. As set forth in Article 3, fourteen (14) dwelling units shall be
sold to buyers qualified as moderate income, with incomc not to exceed 120 percent of
the AMI, and the unit shall be priced for moderate-income buyers at no more than ] 10
percent of the AMI.
ARTICLE 3-Low Income Housinl!:
(c) Section 3.1.5 of the Housing Cooperation Agreement is amended to read as follows:
3.1.5 "Qualified Homebuyer" means individuals or families with an income which docs
not excecd 80 percent of the Area Median Income for the low-income category or 120
percent of the Area Median Income for the moderate-income category, as adjustcd for
household size and as most recently determined by the United States Department of
Housing and Urban Development.
(d) Section 3.1.6 of the Housing Cooperation Agreemcnt is amended to read as follows:
"3 BR Low or Moderate Income Unit" means any seventeen (17) three-bedroom units on
the Real Property, which includes three (3) low-income units and fourteen (14) moderate-
income units, which shall be initially sold to qualified low or moderate-income
homebuyers.
(e) Section 3.1.7 of the Housing Cooperation Agreement is amended to read as follows:
"Affordable Unit" means any of the for-sale units as defined in Paragraph 3.1.6.
(I) Section 3.1.9 of the Housing Cooperation Agreement is amended to read as follows:
"Mortgage Payment" means the sum of all actual or projected monthly or annual
rccurring expenses that include all of the following: (a) payments for principal and
interest on a mortgage loan; (b) loan insurance fees; (c) property taxes and assessments;
(d) fire and casualty insurance; (e) homeowner association fees; and (I) a reasonable
allowance for utilities, or as defined in 25 California Code of Regulations Section 6920.
(g) Section 3.2 of the Housing Cooperation Agreement is amended to read as follows:
Attachment B-Kingswood Amended Agreement.docx2
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Qualification of Homebuver. Each 3 BR Low or Moderate Income Unit will be sold to a
qualified low or moderate-income buyer as defined in Section 3.1.5.
(h) Section 3.3 oftbe Housing Cooperation Agreement is amended to read as follows:
Qualified Sales Price. Each of the designated Affordable Units shall be priced as follows:
Low Moderate
Income Income
3 Bdrms 3 Bdrms
70% 110%
$54,950 $86,350
4,579 7,196
30% 35%
16,485 30,223
1,374 2,519
1,393 3,038
250 250
1,585 1,585
3,012 3,012
10,245 22,337
0.0758 0.0758
135,154 294,689
4,180 9,114
$139,334 $303,804
$854 $1,861
Unit Size by No. of Bedrooms (1 Person Per Bedroom + 1)
QualifYing Percent of Area Median Income (AMI) for Affordable Housing
Equals Annual Houschold Income Bascd Upon QualifYing Pcrcent of AMI
(see Footnote #1)
Equals Monthly Household Income Based Upon QualifYing Perceut of AMI
Times Percent of Household Income Attributable to Housing Expenses
Equals Annual Dollars Allowed for Housing Expenses
Equals Monthly Dollars Allowed for Housing Expenses
Less Real Estate Taxes (Annual I % of Purchase Price)
Less Insurance
Less Utilities
Less Home Owners Fee
Equals Annual Dollars A vailable for Debt Service
Divided by Aunual Loan Constant (see Footnote #2)
Equals Maximum Loan Amount that Can Be Used for Home Purchase
Plus Down Payment - 3%
Equals Maximum Allowable Purchase Price (see Footnote #3)
Buyer's Monthly Mortgage Payment - Debt Servicel12 months
Footnotes:
1. The household income limits are adjusted for a high cost area as per the Federal Housing Act of J 937 and calculated
using HCD methodolugy to comply with Health and Safety Code Section 500052.5 and Title 25 Code of Regulations
Sections 6920 and 6932.
2. Rounded to the nearest $50.
3. Annual Loan Constant is based on a 6.5%, 30 year fixed rate mortgage.
4. Purchase Price to be adjusted according to total home owner's fees as established by the Real Estate Commissioner,
final interest rak of the loan, other market conditions, and applicable program requirements.
Attachment B-Kingswood Amended Agreement.docx3
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(i) Section 3.4 of the Housing Cooperation Agreement is amended to read as follows:
Proof of Oualification. Property Owner will obtain from each person(s) to whom
Property Owner sells an Affordable Unit a copy of the Unifom1 Residential Loan
Application ("Loan Application") in the fom1 of Exhibit B attached hereto and
incorporated herein (or such other form as City may from time to time adopt and of with
City notifies Property Owner in writing). Property Owner will be entitled to rely on the
Loan Application and the supporting documents in determining the eligibility of each
person(s) to sell such AtTordable Unit.
(j) Section 3.4.1 of the Housing Cooperation Agreement is deleted.
(k) Section 3.5 and related sections 3.51 and 3.5.2 of the Housing Cooperation Agreement
will be deleted.
(I) Section 3.6 of the Housing Cooperation Agreement is deleted.
(m) Section 3.7 of the Housing Coopcration Agreement is amended to read as follows:
Term. The term during with this Article 3 applies commences on the date hereof. Said
term ends on the date in which the last of the Affordable Units is sold and occupied by a
Qualified Homebuyer.
ARTICLE 4-Brcach
(n) Section 4.1 of the Housing Cooperation Agreement is amended to read as follows:
Breach by City. If City breaches any of its covenants contained in this Agreement as
Amended, Property Owner will have available to it all legal and equitable remedies
afforded by the laws of the State ofCalifomia.
(0) Section 4.1 of the Housing Cooperation Agreement is amended to read as follows:
Breach bv Propertv Owner. If, with respect to any Affordable Unit, Property Owner
beaches this Agreement as Amended by selling the Affordable Unit at a price higher than
the Qualified Sales Price or sells the Affordable Unit to a homebuyer who is not a
Qualified Homebuyer, Property Owner will, immediately upon City's demand, (i)
designate another comparable unit as an Affordable Unit and (ii) Provide additional
verification to the City of sale to a Qualified Homebuyer. Further, City is hereby granted
the power (but not the duty) to act as attomey-in-fact of such homebuyers in enforcing
this paragraph.
(p) Section 4.3 of the Housing Cooperation Agreement is deleted.
ARTICLE S-General Provisions
(q) Section 5.9 of the Housing Cooperation Agreement is amended to read as follows:
Attachment B-Kingswood Amended Agreemcnt.docx4
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Notices. All notices, demands or requests provided for or permitted to be given pursuant
to this Agreement must be in writing. All notices, demands or requests to be sent to any
party shall be deemed to have been properly given or served if personally served or
deposited in the United States mail, addressed to each party, postage prepaid, registered
or certified, with return receipt requested, at the addresses identified herein as the places
of business for each of the designated parties. A party may change its address by giving
notice in writing to the other party. Thereafter, notices, demands and requests shall be
addressed and transmitted to the new address.
City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Housing Manager
Property Owner:
Hamilton Plaza Ltd.
12526 High Bluff Drive, Suite 355
San Diego, CA 92130
Attn: Danny Dabby
2. All other temlS in the Agreement not amended by this First Amendment shall remain
in full force and effect.
Attachments:
A. Housing Cooperation Agreement
B. Uniform Residential Loan Application
(Signature page to follow)
Attachment B-Kingswood Amended Agreement.docx5
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IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed
as of the day and year first written above.
For HAMIL TON PLAZA LTD., a California Limited Partnership
By: IPMG, INC. a California Corporation, its General Partner
By: Danny Dabby, its President
For CITY OF CHULA VISTA, a municipal corporation of the State of California
By: Cheryl Cox, Mayor
ATTEST:
Donna Norris, City Clerk
APPROVED AS TO FORM:
Bart Miesfeld, City Attorney
Attachment B-Kingswood Amended Agreement.docx6
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EXHIBIT A
RECORDING REQUESTED BY:
City of Chula Vista
WHEN RECORDED MAlL TO:
City of Chula Vista
City Clerk's Office
Attn: City Clerk
276 Fourth Avenue
Chula Vista CA 91910
(Space above for Recorder's USe)
HOUSING COOPERATION AGREEMENT
SING COOPERATION AGREEMENT (the "Agreement") is entered into this ~
day of , 2000, between the CITY OF CHULA VISTA, a mrmicipal corporation
("City"), and Hami on Plaza LID., a California Limited Partnership, ("Property Owner") and/or its
successors or assignees.
ARTICLE 1- Recitals
1.1 Authoritv. City is authorized to enter into binding agreements for the purpose of protecting
public health, safety, and welfare.
1.2 Prooertv Owner. Property Owner is the legal owner of the fee title to the real property described
as 54 through 94 Kingswood Drive. Said real property is referred to in this Agreement as "the
Real Property" and as further described in the attached Exhibit "A," which is hereby
incorporated herein.
1.3 Densitv Bonus. Property Owner has submitted to City a proposal for the development of ten
(10) additional three bedroom units fur low income households on the Real Property pursuant to
State Government Code Section 65915. The project is known as Kingswood Manor Apartments.
1.4 ProjecL Property Owner proposes to construct ten (10) additional apartment units to an existing
forty (40) unit residential development, with any ten three bedroom units affordable to low
income households at or below 80 percent of the Area Median Income ("AMI") west of the
intersection of Tobias and Kingswood Drive, also known as 54 through 94 Kingswood Drive, in
the City of Chula ("Project").
1.5 State Densitv Bonus Law. The City is required to provide Property Owner with incentives for
the production of low income housing units within the development if Property Owner agrees or
proposes to construct certain percentages of the development for low and/or very low-income
households.
1.6 Grant of Density Bonus and Additional Incentives. The City Council of the City ("City
Council"), in response to Property Owner's application, approved a density bonus and additional
incentives for the Real Property. Said resolution is attached as Exhibit B and is incorporated
herein.
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j2 d:x50 - / {~
1.7 Low/Moderate Income Housing. Said Government Code Section 65915 provides, among other
things, that when a developer of housing agrees to construct a specified percentage of the total
units of a housing development for households of low income, as defined in Section 50093 of the
California Health and Safety Code, a city shall b'fant a density bonus for said housing
development.
1.8 Agreement. The City Council established in Resolution No. 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 a specified percentage of the dwelling units on thc Rcal
Property for low income housing.
1.9 Design Review Committee. The City's Design Review committee will meet and consider
approval of the Property Owner's site plan, elevations and preliminary plans for the constructing
and maintaining of ten dwelling units on the Real Property. .
1.10 Intent. These parties intend that this Agreement constitute the agreement referred to in
Paragraph 1.8.
CITY AND }'ROPERTY OWNER IffiREBY AGREE AS FOLLOWS:
ARTICLE 2--Dcvcloomcnt Standard
2.1 Densitv Honus. Property Owner is entitled to construct an additional ten dwelling units to the
existing forty unit residential development and maintain on the Real Property a total of fifty
dwelling units, a twenty-five percent (25%) increase in density.
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 puhlic 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: "Residential Medium" designation in City's General Plan.
2.2.2 Zone Regulations: The regulations for R-3 PI2 (Apartnlent Residential, Prccisc Plan
Density 12 units per acre).
2.2.3 Densitv: The provisions of Paragraph 2.1.
2.2A Parking: Property Owner shall provide two parking spaces per dwelling unit, no guest
parking spaces, with twenty-one spaces provided as compact parking spaces, a reduction
from the 0.5 guest parking space per dwelling unit required under the Precise Plan (76-
14) for the Project and an increase in the one compact parking space per dwelling unit
requirement as specified in Section 19.62.050 of the City of Chula Vista Municipal
Code.
2.2.5 Precise Plan: The development standards set forth in the original Precise Plan (76-14)
for the Proj ect.
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2.3 Low and Moderate Income Housing. Ten dwelling tmits shall be continuously occupied only by
and affordable to low income households as set forth in Article 3.
2.4 Conflict. In the event of conflict between Paragraph 2.1 and any other of the Development
Standards, Paragraph 2.1 will prevail.
2.5 Effect of Termination Pursuant to Article 3. Termination pursuant to Paragraph 3.6 will not
affect, or render inapplicable, the foregoing Development Standards.
ARTICLE 3- Low Income HousiI1g
3.1 Definitions. For the purposes of this article, the following definitions apply:
3.1.1 "Density Bonus" means a density increase of at least 25 percent over the otherwise
maximum allowable residential density, unless a lesser amount is requested by the
developer and approved by City Council, tmder the applicable zoning ordinance and land
use element of the general plan.
3.1.2 "Additional Incentives" means a reduction or modification of Development Standards,
Zoning Codes or Architectural Design requirements, permitting mixed use zoning within
a housing development, or other regulatory incentives or concessions.
3.1.3 "Housing Manager" means the Housing Manager of the City.
3.1.4 "Area Median Income" means the latest median income from time to time determined by
the United States Department of Housing and Urban Development (pursuant to Section 8
of the United States Housing Act of 1937) for the San Diego Standard Metropolitan
Statistical Area.
3.1.5 "Low Income Tenants" means individuals or families with an income which does not
exceed 80 percent of the Area Median Income, as adjusted for household size and as
most recently determined by the U.S. Department of Housing and Urban Development.
3.1.6 "3 BR Low Income Apartment" means any ten (10) three-bedroom apartment lUlits on
the Real Property, which shall be continuously occupied only by and affordable to a Low
Income Tenant.
3.1.7 "Affordable Apartment" means any of the apartments defined in Paragraph 3.1.6;
"Affordable Apartments" means all of such apartments collectively.
3.1.8 "Manager's Unit" means that unit on the real property occupied by a resident property
manager which may be exempt from occupancy restrictions.
3.1.9 "Rent" means the total of monthly payments for all of the following: (a) use and
occupancy of the apartment lUlit and land and facilities associated therewith, (b) any
separately charged fees or service charges assessed by the lessor which are requircd of
all tenants, other than security deposits, and (c) a reasonable allowance for utilities not
included in the above costs, excluding telephone service, which takes into consideration
an adequate level of service.
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3.2 Qjlalification of Tenants. As to the Affordable Apartments, the following will apply:
3.2.1 3 BR Low Income Apartments. Each 3 DR Low Income Apartment will be leased to a
Low Income Tenant.
3.3 Monthlv Rent. As to the Affordable Apartments, the following will apply:
3.3.1 Low Income Apartments. The monthly rent charged for all the Low Income Apartments
shall not exceed the lesser of the following: a) ten percent less than non-restricted
dwelling units within the Project; or b) one-twelfth of the amount obtained by
multiplying 30 percent times 60 percent of the Area Median Income, as adjusted for
household size and assuming the following unit sizes and household sizes:
Unit Size
Three Bedroom
Household Size
Five Persons
3.4 Proof of OualificatIOn. Property Owner will ohtain from each person(s) to whom Property
Owner rents an Affordable Apartment a "Supplemental Rental Application" ("the Application ")
in the form of Exhihit D attached hereto and incorporated herein (or such other form as City may
from time to time adopt and of which City notifies Property Owner in writing). Property Owner
will he entitled to rely on the Application and the supporting documents thereto in determining
the eligibility of such person(s) to rent such Affordahle Apartment. Property OVlner will retain
the Application and supporting documents for a period of at least three years after the applicant
thereof ceases to occupy such Affordable Apartment.
Copies of the most recent Supplemental Rental Application for Low Income Tenants
commencing or continuing occupancy of an Affordable Apartment shall be attached to the semi-
annual report to be filed with the City in compliance with Section 3.6 ofthis Agreement.
An Affordahle Apartment occupied by a qualified tenant who at the commencement of the
occupancy qualifies as a low income household shall be treated as occupied by a Low Income
Tenant until a recertification of such tenant's income in accordance with Section 3.4.1 below
demonstrates that such tenant no longer qualifies as a Low Income Tenant.
3.4.1 Recertification of Income. Immediately prior to the first anniversary date of the
occupancy of an Affordable Apartmcnt by a qualified tenant, and on each anniversary
date thercafter, the Property Owner shall recertify the income of the occupants of each
Affordable Apartment by obtaining a completed Supplemental Rental Application based
upon the current income of each occupant of the Affordable Apartment. In the event the
recertification demonstrates that such household's income exceeds the income at which
such household would qualify, such household will no longer qualify as a Low Income
Tenant, and the Property Owner will rent the next availablc unit of comparable or
smaller size to one or more Low Income Tenants.
3.5 Waiver. Property Owner may apply in "Titing to the Housing 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 O"ner to show that, for the near future,
there will be no reasonable demand for such Affordable Apartments(s). Within 30 days after
receipt of any such application, the Housing Manager will, ill writing, either grant or disapprove
the requested waiver; the failure of the Housing Manager to act within said period will be
deemed to be approval of such requested waiver. If such waiver is granted, Property Owner may
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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 ofthe following:
3.5.1 Month-to-Month Tenancv. Anything in Paragraph 3.5 to the contrary notwithstanding,
the lease or rental agreement will create only a month-to-month tenancy.
3.5.2 Termination of Waiver. At any time after granting any snch waiver, the Housing
Manager may, hy 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.
3.6 Records. Audits. Property Owner will submit to City semi-annual certified rent rolls, disclosing
with respcct to each Mfordable Apartment (i) monthly rent rate, (ii) number of occupants for
which the Affordable Apartment is rented, and (iii) the income of such occupant(s) and in the
form of Exhibit E attachcd hercto and incorporated herein (or such other form as City may from
time to time adopt and of which City notifies Property Owner in writing). If City determines an
audit is necessary to verify a submitted rent roll, it will so notify Propcrty Owner in writing
thercof. Within ten days after delivery of said notice, Property Owner will deliver to City the
names of three certified public accountants doing business in the metropolitan San Diego area.
City will promptly deliver to Property Owner the former's approval of one or more of said
names. The audit will be completed by an approved certified public accountant, at Property
Owner's cost, within 60 days after the delivery to Property Owner of City's said approval. The
certified public accountant will promptly deliver a copy of the written audit to City.
3.7 Term. The term during which this Article 3 applies commences on the date hereof. Said term
ends on the date which is thirty (30) years after the date on which at least five (5) of the ten (10)
additional dwelling units approved pursuant to the density bonus are first occupied.
ARTICLE 4 - Breach
4.1 Breach bv 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 Provertv Owner. If, with respcct to any Affordable Apartment, Property Owner
breaches this Agreement by charging higher rent than that herein pennitted, Property Owncr
will, immediately upon City's demand, (i) rcducc the rent to that permitted herein and (ii) rcfund
to any tenants who theretofore paid such higher rent the amount of the excess, together with
interest hereon at the rate of 10 percent per annum, computed from the daters) ofpaymcnt ofthc
excess by said tenants to the date of said reflmd. 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.
8-15
t~
5
4.3 Breach bv 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 equitaole remedies otherwise available to City.
ARTICLE 5 - General Provisions
5.1 Asshmment. 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 convcyed.
5.2 Amendmcnt or Cancellation of Agreement. This Agrcement may be amended from time-to-time
or cancelled by the mutual consent of the parties hereto but only in thc same manner as its
adoption. The term "this Agrecment" 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 regulatioos adopted oy 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 shall defend, indemnify, protect and hold harmless the City, its
elected and appointed officers and employees, from and against all claims for damages, liability,
cost and expense (including without limitation attorneys' fees) for personal injury or property
damage arising out of the direct or indirect conduct or operations of the Property Owner, or any
agent or employee, subcontractors, or others in connection with the execution of this Agreement,
except only for those claims arising from the sole negligence or sole willful misconduct of the
City, its officers, or employees. Property Owner's indemnification shall include any and all
costs, expenses, attorneys' fees and liability incurred oy the City, its officers, agents or
employees in defending against such claims, whether the same procced to judgment or not.
Property Owner agrees to indemnify, defend, protect and hold harmless the City, its officers, and
employees from and against any and all claims, suits, actions, or other proceedings to which the
City is exposed resulting from the City's preparations, review, approval, or granting of the
Density Bonus as called for in this Agreement. Further, Property Owner, at its own expense
shall, upon written request by the City, defend any such suit or action brought against the City,
its officers, agents or employees. Property Owner's indemnification of City shall not be limited
by any prior or subsequent declaration by the Property Owner.
5.5 Anti-Discrimination. Property Owner, for itself and its successors and assigns, agrees that
during the term of this Agreement, will not, with respect to its opcration of the Project,
discriminate against any person because of race, color, creed, religion, sex, sexual orientation,
marital status, age, handicaps, ancestry or national origin.
6
@J
8--'16
5.6 Crime Free Multi-Housing Program. Property Owner, for itself and its successors and assigns,
agrees that during the term of this Agreement, will, with respect to its operation of the Project,
participate in the City of Chula Vista Crime Free Multi-Housing Program or any other
comparable program as may be adopted or implemented by the City of Chula Vista.
5.7 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of the
Agreement inure to tht: parties' successors or assignees in interest.
5.8 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.
5.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands or requests to be sent to any party shall be
deemed to have been properly given or served if personally served or deposited in the United
States mail, addressed to such party, postage prepaid, registered or certified, with return receipt
requested, at the addresses identified herein as the places of business for each of the designated
parties.
City:
City of Chula Vista
276 F ourth Avenue
Chula Vista, CA 91910
Attn: Community Development Director
Property Owncr:
Hamilton Plaza L TO.
11230 Sorrento Valley Road, Suite 100
San Diego CA 92121
Attn: Danny Dabby
A party may change its address by giving notice in writing to the other party. Thercafter, notices,
demands and requests 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 Agrccment has been entered into prevcnt or preclude compliance with one or
more provisions of this Agreement 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 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.
7
~. ~
8-17
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 win he scheduled for
hearing before the City Couucil. Ten days' written notice of such hearing will be given, pursuant
to Government Code Section 65091 and 65094. The City Council, at such hearing, wiU
determine the exact modification or suspension which shall be necessitated by such federal or
state law or regulation. Property Owner, at the hearing, win have the right to offer oral and
written testimony. Any modification or suspension wi11 be taken by the affirmative vote of not
less than a majority of the authorized voting members ofthe City Council.
6.3 Cooperation in Securing Permits. The City shan 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 win he
. made hy 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 win be continued to
afford sufficient time for analysis and preparation.
7.2 Opportunity to be Heard. Upon written request tp City by Property Owner, the Property Owner
will be permitted an opportunity to be heard orany 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 win, to such an extent as is practical,
deposit in the mail to Property Owner a copy of staff reports and rclated exhibits concerning
contract performance a minimum of ten calendar days prior to an 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 win remain in
fun force and effect unless amended or modified by mutual consent of the parties.
8
~. ~
8-18
8.3 Entire Agreement. Waivers and Amendments: Regulatory Agreement to Control. Except for the
Regulatory Agreement, this Agreement, together with any other written document referred to or
contemplated herein, embody the entire Agreement and understanding between the parties
relating to the subject matter hereof. Notwithstanding any provision in this Agreement to the
contrary. so long as the Regulatory Agreement is in effect, the terms of the Regulatory
Agreement shall control with respect to the Very Low Income Apartments. Neither this
Ah'feement nor any provision hereof may be amended, modified, waived, or discharged except
by an instrument in writing executed by the party against which enforcement or such
amendment, waiver, or discharge is sought.
8.4 Capacities of Parties. Each signatory and party hereto hereby warrants and represents to the
other party that it has legal authority and capacity and direction from its principal to enter into
this Agreement, and that all resolutions or other actions have been taken so as to enable it to
enter into this Agreement.
8.5 Governing LawN enue. This Agreement shall be governed by and construed in accordance with
the laws of the State of California. Any action arising under or relating to this Agreement shall
be brought only in the Federal or State courts located in San Diego County, State of California,
and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this
Agreement, and performance hereunder, shall be the City of Chula Vista.
9
gg
8-19
IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed as of
the day and year first written above.
HAMILTON PLAZA LTD., a California Limited Partnership
By: IP INC. a California Corporation, its General Partner
By:
CITY OF CHULA VISTA, a mlillicipal corporation oIthe State of California
Shir~~
ATTEST:
J~ ~~ fir,
Susan Bigelow, City Clerk
APPROVED AS TO FORM:
,<> . L/'/ //; , " . 7'
", If, lZ" c,Lj,ld, Ilc/!
john M. Kaheoy, City Att.!rney
r ,;
\
I'
jj, /J'
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:"j~r'-"!,';'
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(UI) C:\My Document.\King:l\v[]od Mmor\Dellsity D"rms Agr-Klllg,swood
10
8-20
Exhibit 8
Uniform Residential Loan Application
'l1us application is desIgned to be completed by tho;: applicant(s) with the Lender's assistance. Applicants should complete this Conn as hBorrower" 01 "Co-Borrower," as applicable Co B,~rf0wcr
information must also be pWVldcdland the appropriate bo\: ch<:ch:d) when 0 the income or assets ofa person other than the Borrower (including the Bon'ower's spouse) will be used as a basis for loan
qualification or 0 the income or assdS of the Borrow\:r's spouse or other p<:rson who has community property rights pursuant to state law will not be used as a basis for loan qualiticalion, but his or her
habilities mus! be consid",red because the spouse or olher person has community propt'rty nghl~ pursuant to applicable law and Borrowo;r rcsidt:"s in a community propt:rty st~tt:, Iht: st:<.:unty prupt:rty is
IO<.:<Jted in a community propt:rty stale, or tht: Bormwer is relying un olh<.:r property lucaled in a conunumty propelTy stale as a basis for repayrnt:nt ufthe luan.
If this is ,Ul application for joint <.:redit, Borrower ami Co-Burrower ea<.:h agree that we intend to apply for joint credit (sih'll bdov.):
BOIT()wer Co-Borrowt:r
:i~l\i:\~i~H,,~:;;"\:~~~;:;~~.;'IJl!ig' , ~:','''''';';\;,XE~!;~"t+"t;f;;;;.::i- ':Jc',;;;t,; -~~":";:
0'
o
n ;::,,:'i;,;.!'";;,;:'i,"
-':\l:"<>::- ,:,:f;:;);'<~F".'t ii,:-
LenderCase:-lllm\:>er
,,;~":;,;'O?--
J\1urt~a~e
Applied fur:
OVA
OFHA
o Conventional
o USDA/Ruml
o Other (explain)
Agency Case Nllmher
HOllsin' Service
~
'L ~'.
....
0'
o
o Fixed Ral<:
OGPM
I' ...
o Othel (explain)
o ARM (type):
InterestRme
Nu ufMonths
Amortir.atiunTYJle:
';,
~~ 1'-
- '~y:""~/"~,'>,,
., _"!!t.
Subjecl Property Addn:ss (street, citv, state & ZIP)
No,ufUmts
Legal Descnptlun ufSubj<:ct Property (attac:h description ifnecess;uy)
Year Built
Purpose of Loan
D Pun:hase D Construcl1on D Otht:r (explain):
D Refinance D Construction~PemJ<l.n",nt
Property will be:
DPrimaryResidenct:
o Sec(lndaJyResidenct:
Olnvr;:stment
Complete this line if c(ltlstruction or ~'tmSlructi(Jn-pe"ntment ltmn.
Year Lot
A<':4uired
OrigrnalCost
Amounl EXisting Liens
(a}Presenl ValueofLut
(b) Cost ofImprovements
TotaI1a+b)
$
s
s
$
Complete tlli\./ine iftllil' i~ a refinance loan.
Year
Acquired
Onginal Cost
Amuunt EXisting Liens
PIlTpos,,-,ufRefinance
Describe Improvements
Dmade
Dtobem~de
s
$
Cost:S
Tille will be held in what Name(sl
Manner in which Title will bt: hdrl
Estate will beheld in:
o Fer;: Simple
o Leasehold (show
expiration dale)
Source ofDuwn Payment, Selllernelll Charges, and/or Suhordinate Financing (explain)
'~;<;; ~j,:;t'~~;;:: .
BUIT(_'Iwer'sNam<:(incllldeJr. orSr, lfapplicable)
:....
0'
;,tiA':.':-'j/
<C<,.:'
, ':,J;"~,~
, :,
.~""
,./"\ "J~-':i~"._~
C(I-B(lrrower's Name (mclude Jr, or Sf. ifapplieabk)
Sucial Seclmty Number
Home Phone
(incl, area code I
DOB tTIllIL1ddfyyyyl
Yrs, Sc/l~'1l1
Social Security Number
Home Phone
(ine!. area code)
DOB (mmlddlyyyy)
Yrs Schonl
ages
o Marricd
DSeparated
D Unmarrit:d(include
single. divorced, widowed I
Dependents (not listed by BorrDwer)
DMamcd
o Separated
o I lnrnarried (include
singl<:, (hvurced, widowed)
Depend<:nts (not hsted by Co-Borrowo:rl
""
""
ages
Present Address lstreet, city, slale, ZIP)
DOwn
o Rent _Nu. Yrs.
Present Address (str<:et, City, state, ZIP)
DOwn
D Rent _No, Yrs.
Mailing Addrr;:ss, if different from Present Address
Mailing Address, If different from Present Address
If re.IMj"K at pre.~enl m/dress jilr le.l:v tllan t....{I years, complete tlleJi,I/,'....il1g:
FOlmer Address (street, city, stale, ZIP)
DOwn
DRent_No Yrs
Former Address (stred, city, statt:, ZIP)
DOwn
o Rent_No Yrs.
Name &. Addr<:ss of Empluyer
0'
...,.. ".:S'Hr.f?
':1 ..
~;<..
D ScIt Employed Yrs. on this Job
Name & Address of Employer
o Self Employed Yn. on this job
Yrs, employed in this
lineofwork/prof<:ssmn
Yrs, employed in this
lineofwork/proft:sslon
Po~itiow'lill<~!Type of Business
Busines~ Phone (inc!. area "ude)
P(lsitionITitlelType ofBuSlllt:SS
Busill"SS Phone (incl. areaeoJe!
lfotmplt,yed in current po,I'iti/J" for kss tItan tW/J years or if currently empltl}'ed in more than Ime po~-jtitm, complete the fol/{lwinx:
Freddie Mac Form 65 7/05
gl:: 2015
Fannie Mac Form J003 7/U5
1,_:~:i';:~;I:'"" 'i..~',,,,,.' : , , B'" :~.:? ,...~f~_' :-", . . . , , , ,.l ~,',; ",;".:"":; ., , : , , .,
~alllC & Address ofEnlployer o Sc]fEmployed Dates (from-to) !,\'ame & Address of Emp]oycr DSdfEmpluycd Dates (from-to)
:\lonthly Income :Vlunlhly]ncome
$ $
Position/Title/fype ofBu~iness Busine~s Phone Position/Titlen'ype of Bus mess Busine~s PhclUe
(incl. area code) (incl.areacodel
Name: & Address of Em plover o SdfEmpl0yed Dates(from-tol Name & Address of Employ<:r o SelfEmp]oyed Dates (from-tu)
Month]ylncome J\-lonthly]ncomc
$ $
P0sition/Tllk/Type ufBusine~s BusmessPhonc PositionfTit]e/Type of Busilless BusillessPhon<:
(ine! area code) (ine! ar<:acodel
. . I . , I I . . ;", ., :. :'.l','~J4iII
. ... ~, :li:
Gros~ ComhinedMonthly
l\-lonthh'lncnme Borrower Co-80rrower Total Huusin" E'l:nense Prcscnt Pronnscd
Base EmpL ]ncomo::* $ $ $ Rent $
()vt:rtllne firsl.J\-lortgage(P&n $
Bonuses Other Financing (P&I)
Commissions Hazard Insurance
Dividends/Interest R<:a] Estale Tases
Net Rental Income :\-lortgage Insurance
Other {bef()re completing, Homem-vner Assn. Dues
'" <h, notlc~ m "des~ribe
0thcrincom~."bcl(lwJ Olher:
Total $ $ $ Total $ S
SelfEmploye-d Borrowerls) may bc rcquired to provide additional documcntatiun such as tax return~ and financial statements,
llescrihe Other Income
NotiL'e: Alimony. child support, or separate maintenance income need nol bc revcaled
if the Borrower (B) or Co-Borrower (C) docs not choo~e tn have it considered
fnrrel,aying this loan.
I ~","ili]Y Amon"'
~
:.';f' 't:",~-t::i~:'i':,#~~'!=" .~. .=<-:::~~{;f:tf.J":~'\" "_. 'j :;~*:. !€#i5' ,"' ..-t;~*~,;~!"f." '1:'
1l1is Slatement and any applicable sUPPOliing schedules Olav bl: .;omp]eted jointly by both mamed and unmarried Co Borrowers if theIr assets and liabilities an: suffi.;i~nt]\' joined so that the Statement
can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are reqUIred. If the Co-Bormwer section wa~ .;omplcted about a non-applicant spou~e or other
person, this Statement and supporting schedules must be complt:led about that spouse or other person also
Completed 0 Juint]y 0 Nut Jointly
ASSETS
Cash or
Market Value
Liabilities and Pledged Assets. Lisl the creditor's mune, address, and account number for all uutstanding debts, mcluding
automobile loans. revolving charge accounts, real estate loans, alimony, child support, stock pledges. etc. Use
continuation sheet, if necessary. Indlcale by {*} tho~e liabilities, whi<,;h will be satisfied upon sale of real estate owned or
upon refinancing of the subject property
Desenntion
Cash depusittoward
purchase held by:
LIABILITIES
Monthly Pa}'mcllt &
.\Ionths Ldttn Pav
llnpaidBal;lUcc
Li~t L'hecking and saving.I' aCc.lunb below
Name and address llfBank. S&L. or Credit Union
Name and addrcss of Company
$PaymcntlMonths
$
Acct.no
1$
Acct, no.
Name and address ofCOInpany
); PaymentIMunths
s
Name and address of Bank. S&L, or CredIt lJmon
Acct.no
1$
Acct. no
Name and address ofCumpany
$Paymentl!Vlomhs
$
Nam" and address of Sank, S&L. or Crcdit Uniun
Acct.no
1$
Acct no
Freddie Mac F4rm 65 7/05
Pa..e2of5
8':"22
Fannie Mae Furm 1003 7fll5
"~'''"-''\''
. <"--,\:~-
._~: ;;!';{t:;:::i:~'/:':,:~!!'} ..~- -ij'.,.;-
..<~ ;'1".,::~r: ~-:'~"'_; !::;';;"'";;'.',.-
-,~~;.";~.~./~t~;;;! 'r. "7"~,'F~~;3-~.
Narw; and address of Bank. S&L, or Credit 11mon
Name and address of Company
51 PaymentlMonths
$
Aeet.no $ Aeet.no.
Stocks & Bonds (Compam name/ $ Name and address of Company $ Payment/Months $
number & description)
Acct. no.
Life insurance net cash value S Name and address uf Company $ Payment/J\knlhs $
Faceamoul1t $
Subtotal Liquid Assets $
RC;l1 estate owned (<:nler llmrket valu", $
from schedule of rea] estaleuwned)
Vested mterest in retlfement fimd
Net worth ol"business{....s) uwned
(altach financial statement) Acet no
Automobi]es owned (make $ Alim,)ny/Cbild Support/Separate
andy",af) Mamtenance Payments Uwed to:
Other Assets (itemize) $ Job-R....1aled Expensc (child care, union dues. etc.) $
Total ,\lonthly Payments
s
Tot.'d Assets a. S
l'1et.wS'rth
(ariIinusb)
..'
Tot".al Liabilitie.~ b.
Schedule of Real E~tllte Owned (lfadditiona] prop....rtles me owned, use continuation sheel.)
Prop"'rty Address (enter S if sold, PS il"pending sal", or R Amount Insurance.
if rental b<:ing held for income) Type of Present of Mortgages Gross Mortgage Mnintenance, Net Rental
Property Market Value Rcntallneome Payments Taxes&:vfisc Income
T & Liens
, S , $ $ $
Tolals $ $ $ $ $ $
List allY additional names under whIch cn.dlt ha~ previously b...-en received and IUdlcate appruprIate creditor name(s) ami :-ll'eounl nUmbert~):
AIt",mate Name
Creditor Name
Account Number
~~_~tii,;'t:,_~", I . . , - " -",,'if; , ",..,.".~':t};.: ?~, I . .-:1->"i':'i:,,""~1'!i -< ',~~'it.T;':.k' .
.,.",,- . ";"".<
" Purchas<: price $ If you answer "Yes" to an)' questiolls a throu~h i, Borrower Co-Borrower
ple3se use cuntinuation sheet for explanatiun. Yes No y" No
b Alt<:ration~. improvenHlnts. repairs , Are th",re any uutstandingJud!,'lllents against you" 0 0 0 0
, Land (ifacquired <;eparately! b Have you been d",dared hankrupt within th", pa~t 7 years? 0 0 0 0
d. Refinance line!. debts to be paid om c Have yon had pruperty foreclosed UPUIl orgJvcn title 0 0 0 0
or deed in lieu thereof m the last 7 years?
, Estilllatcd prepaid itcms d. Are you a party to a lawsuit? 0 0 0 0
f. Estimated closing \;osts , Haveyoll directly or indirectly been obligated on any 0 0 0 0
loan Whl\;h resulted in foreclosure, transtcr of title
g. PM!. MIP. Funding Fee in lieu offoredosure. orjudl,'lIJent"
(This would include such loans " home mortgage loans, SBA loans. home
h. Discount (if BOlTower wil1 pay) improvelllcnt loans. educationa] loans. manufacruredtlllobile) home loans, any
mortgage. financial obligation, bond. 0' loan guarantee If. "Yes, -- proVIde
c. Tota] costs (add items a through hl details, including Jat\;. name. and address of Lender. FHA or V A case number.
ifallY, and reasons forlheaction.)
Freddie Mac Form 65 7/05
Pa~e3of5
8-23
Fannie.\1ae Form 1003 7105
1:)'F~;ifi~~\ftlf:,~A~ I 0 0 ^ j.'!itI.;...::'::J,~;~~S;i;:;r7~;i.j:' ',.,;c.;;'~': ~ I 0 ,~ "!,-:t-~ ~ ~ ""i",,,,~~
"
j Subonhnate.finan.:ing If you answer "Ycs" to any questions a throu~b i, Borrower Co-Borrower
plcase use continnation sbeet for explanation. Yes No 'fes ~u
Burrower', closmg costs paid by Sclkr f Are you prescntly delinquent or in default on any Federal debt or any
k Olher loan, mortgag<:, financial obligatIOn, bono, ur luan guarantee? 0 0 0 0
If "Y(;S," gi\'e details as dcs.::ribed in the pre.::eding question
I Othc-:rCredits(e:-.:plain) 9 Arc you ohligated to pay alimony, child support, or 0 0 0 0
sc-:paratemaintcnancc?
h Is any part of the down paym<:nl borrow<:d? 0 0 0 0
m Luan amount (exclutk PMI, MIP, " i\rc you a c-:o-maker or endorser on a note? 0 0 0 0
Funding Fee llllancc-:dj
____n____________ __________n ~- _u___ _un__.__.__ ------- ______n_u
J. AreyoualT.S. cllizen? 0 0 0 0
0, PML MI?, Funding Fee financed k. Are yuu a pemlanent resident alien'" 0 0 0 0
I. Doyou intend tooccupythepropert)asynurprimaryrcsidence? 0 0 0 0
If "Yes, complete question m below
0 Loan amount (add m & n)
m Have you had an ownership interest in a propeny in the last three years? 0 0 0 0
CaRh Ii'om/to Borrower lsuhtractj, k,l& (1) \Vhat typ<:: of property dut you own-pmlClpal r"Sld<;nce (PR).
p, o from i) second home (SH), or invcstment property (lP)?
-
(2) How did you hold title to the home solely byyour~elf(S),
jointly with your spouse (S1'), or jointly with anotber person (O)? - -
f:~..\.t'~F-1~iJI.,;d}~.;''; ;, "'--<"",' ,t2~~;:-.~~~1fl,':~~ ~~:~ii;~;)h; 0 I I "'>'e -,'.' .~.~ ~~, ., c" ~;~.- '~~':'_;':;...,.,c
Eilch of the WlderSlh'lled ~pecltlcally repn:sents to Lc-:nder and to Lender's actual or potentIal agent~, brokers, procesRors. attumc-:ys. IIlRurelR, serVlcers, successors and asslgm and ab>Tees and acknowledges
that. (I) the information provided in this applic<111On is trlle and correct :is ufthe date set fortb opposite my signatllre and that any ill!enti,~nal or negligent miRrepresentation of thIs mfnnnatlOll cuntalm:d in
this application may result III cl\,illiahility, including monetary damages, to any person who may suffer any lo~s dm: to rehan<:e upon any llllSlepresentation that I have mad<: on thi~ application, and/or in
criminal penalties including, but not limited to, tine or imprisonm<::nt or both under the provisions of Title 18, United States Code, Sec. 1001, et s<::q., (:2) the luan requested pUr<:lIantto this application (the
"Loan") will be secured by a mongage or d<;ed of trust Oil the prop<:rty describcd in tbis application; (1) tile propeny will not be used for any illegal orprohibiterl purpuse or usc: (4) all Rtatements made in
this application are made for the pUJTlose of obtaining a residential mortgage loan; (5) the propeny will be occupIed as mlhcatcd m thIS application; (6) the Lender, its servicers, successurs ur assigns may
retain the ongmal and/or an electronic record of this apphcatJon, wheth"r or not the Loan is approved, (7) the Lender and its agents, brok",rs, insurers, serviccrs, Sll.::cessors. and assigns may continuously
rely on the information contained in the app!lcatlOn, and I am obligated to amend andlor supplem<::nt the infonnation provided in this appli.::ation if any of the material facts that I h,lVC rcpre~c-:nted herein
should change prior to closlllg of the Loan, (8) in the event that my payments on the Lo;m become delmquent, the L<::ndec lts SCr\'ICeI'S, SUCCCSRorR Ot 3sRigns may, in addition to any other rights and
rcmedies that it may have relating to such delinquency, report my name and account tnformation to one or more conRumer reporting agencies, (9) ownership of the Loan and/or administration of the Lo~n
acconnt may be transferred with such notice as may be required by law; (10) neither Lender nor its agents, brokers, insurers, servicers, succ<::ssors or a.~slgns has made any representation or warranty,
express or impIH:d, to me regarding the property or the condition or value oftbe propcrty; and (Ii) my trallRmisRion of this application as an "e[<::ctronic recurJ" containing my "electronic sib'llature," as
tho~\: temls are Jefined in applicable federal and/or stat" laws (excluding audio and vid.:o recL'rdings), or my facsimile transmission of this application containing a facslTTl1le ormy signature, shall be as
cite-clive, t'nforceable and valid as If a paper version of this applicati0n were dclivered containing my ori~inal written sih'lla~t:re.
Acknowledgement. Each ofth<: undersigned hereby ackno'Wledges that any owner of the Loan, its servicers, Sllcc\:ssors ;md aS~lb'lls, may venfY or reverify any information contained in tllis application or
obtain any inf<nmation or dat3 rdating to the Loan, for any legitimate bUSln<:SS PUJTlose through any SOll1ce, including a source named in thi~ application or a consumer reporting agency.
';'''''"-,,.:,
Co Borrower's Slb'llature
Datc
Borru'Wer'sSignature
x
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The following information is requested by the Fed<:ral (j()vemment for cenain types of loans related to a dwelling in order to monitor the lender'~ compliance WIth equal credit opporttmity, fair housing and
home murtgage disclosure laws. You are not requir\:d to fi.Jmish this information, but are encounlged to do so, The law provides that a lender may not discnmmate Cltllcr on the basis of this information,
or on whether you .::huose to fllmish it If you fumish the information, pl<::ase provide both ethnicity and race, For race, you may check mure than on<:: designation. If you do not furnish eth.nicity, race, or
sex, under Federal regnlations, this lender is reqmr<:d to note the infommtion on the basis of visual observation and surname if yo II have made this appllcatton in person. If you do not wish to fumish the
inlormation, pl<:ase check the box below. (Lender mnst review the above matcrial to assure that the disclosures satisfy all requirem\:nts to WhlCh the lender is subject under applieahle state law for the
P311icu\artvneofloan annliedfor.l
BORROWER 0 I do not wI~h to fumiRh this information CO BORROWER 0 I do not wish to ulIllish this infonnation
Ethnki",: 0 HisnanicorLatino 0 :-Jot Hispanie or Latino Ethnici(y: 0 Hispanic or Latino 0 Not Hisnanic or Latino
Race; o American lndw.nor o Asian o Black or African American Race: o Am<:rican Indian or o Asian o Black or African Amc-:rican
Alaska Native Alaska Native
o Native Hawaiian or DWhite o Native Hawaiian or o White
(ltherPacitic Islander OtherPacitic Islander
Sex; o Femal<: Divlalc Sex: o Female o Mal<:
T" be Completed by Interviewer interviewer's Name (print or typd Name and Address oflnterviewer's Employer
This application was taken by
0 Face-to-f.'lcemtcrvi<:w
0 Mail Imerviewer'SSlb'I1<1.lure Date
0 Telephone
0 Internet
Intcrviewer's Phone Number UncI. area .::ode)
Freddie Mac Form 65 7/05
Pa~e-t"r5
8-24
Fannie Mac Form tu03 7/115
rt1St::
Use this continuation sheet if you neeu rnore
space to compktc" the Residential Loan
Applicatlon_ Mark B for BOlTowerur C for
Co-Bon-ower
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'f..-t:'..,;;~~:;\,;.::,f,
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BVlTower.
Agency Case Number
Co-Borrower:
Lender Case Number:
or both. to knowingly make any false statements COnCenllng any of the above [,1cls as applicable under tht: provisions
lIWe fully unu",rutand that it is a Federal crime pUllishable by tine or imprisonment.
ofTi!]e ]ll, Umted States Code, Sectiun 1001. et se
BOlTower'sSignature Date
X
Co-BOITower'sSignature
X
Date
Freddie Mac Form 65 7105
Page5of5
8-25
Fannie Mae Form IOU) 7/0S
Attachment C
RECORDING REQUESTED BY:
City of Chula Vista
WHEN RECORDED MAIL TO:
City of Chula Vista
City Clerk's Office
Attn: City Clerk
276 Fourth Avenue
Chula Vista CA 91910
(Space abovefor Rp-corder's Use)
HOUSING COOPERATION AGREEMENT
THIS H SING COOPERATION AGREEMENT (the "Agreement") is entered into this ~
day of ,2000, hetween the CITY OF CHULA VISTA, a municipal corporation
("City"), and Hami on Pla7<1 LTD., a California Limited Partnership, ("Property Owner") and/or its
successors or assignees.
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 54 through 94 Kingswood Drive. Said real property is referred to in this Agreement as "the
Real Property" and as further described in the attached Exhibit "A," which is hereby
incorporated herein.
1.3 Density Bonus. Property Owner has submitted to City a proposal for the development of ten
(10) additional three bedroom units for low income households on the Real Property pursuant to
State Government Code Section 65915. The project is known as Kingswood Manor Apartments.
1.4 Proicet. Property Owner proposes to construct ten (10) additional apartment units to an existing
forty (40) unit residential development, with any ten three bedroom units affordable to low
income households at or below 80 percent of the Area Median Income ("AMI") west of the
intersection of Tobias and Kingswood Drive, also known as 54 through 94 Kingswood Drive, in
the City of Chula ("Project").
1.5 State Density Bonus Law. The City is required to provide Property Owner with incentives for
the production of low income housing units within the development if Property Owner agrees or
proposes to construct certain percentages of the development for low and/or very low-income
households.
1.6 Grant of Densitv Bonus and Additional Incentives. The City Council of the City ("City
Council"), in response to Property Owner's application, approved a density bonus and additional
incentives for the Real Property. Said resolution is attached as Exhibit B and is incorporated
herein.
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8-26
;2 d:;00 -I tr
1.7 Low/Moderate Income Housing. Said Government Code Section 65915 provides, among other
things, that when a developer of housing agrees to construct a specified percentagc of the total
units of a housing development for 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
dcvelopment.
1.8 Agreement. The City Council established in Resolution No. a requirement that an
agreement be entered into between City and Propcrty Owner providing for (i) the density bonus
and (ii) the crcating and maintaining of a specified percentage of the dwelling units on the Real
Property for low income housing.
1.9 DeSIgn ReVlew CommIttee. The City's Design Review committee will meet and consider
approval ofthe Property Owner's site plan, elevations and preliminary plans for the constructing
and maintaining of ten dwelling units on the Real Property. .
1.10 Intent. These parties intend that this Agreement constitute the agreement referred to in
Paragraph 1.8.
CITY AND PROPERTY OWNER HEREBY AGREE AS FOLLOWS:
ARTICLE 2- Development Standard
2.1 Densltv Bonus. Property Owner is entitled to construct an additional ten dwelling units to the
existing forty unit rcsidential development and maintain on the Rcal Property a total of fifty
dwelling units, a twenty-five percent (25%) increase in density.
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: "Residential Medium" designation in City's General Plan.
2.2.2 Zone Regulations: The regulations for R-3 P12 (ApartIDent Residential, Precise Plan
Density 12 units per acre).
2.2.3 Densitv: The provisions of Paragraph 2.1.
2.2.4 Parking: Property Owner shall provide two parking spaces per dwelling unit, no guest
parking spaces, with twenty-one spaces provided as compact parking spaces, a reduction
from the 0.5 guest parking space per dwelling unit required under the Precise Plan (76-
14) [or the Project and an increase in the one compact parking space per dwelling unit
requirement as specified in Scction 19.62.050 of the City of Chula Vista Municipal
Code.
2.2.5 Precise Plan: The development standards set forth in the original Precise Plan (76-14)
for the Project.
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2.3 Low and Moderate Income Housing. Ten dwelling units shall be continuously occupied only by
and affordable to low income households as set forth in Artiele 3.
2.4 Conflict. In the event of conflict between Paragraph 2.1 and any other of the Development
Standards, Paragraph 2.1 will prevail.
2.5 Effect of Termination Pursuant to Article 3. Termination pursuant to Paragraph 3.6 will not
affect, or render inapplicable. the foregoing Development Standards.
ARTICLE 3- Low Income HOllSin!!
3.1 Definitions. For the purposes of this article, the following definitions apply:
3.1.1 "Density Bonus" means a density increase of at least 25 percent over the otherwise
ma'Cimum allowable residential density, unless a lesser amount is requested by the
developer and approved by City Council, under the applicable zoning ordinance and land
use element ofthe general plan.
3.1.2 "Additional Incentives" means a reduction or modification of Development Standards,
Zoning Codes or Architectural Design requirements, permitting mixed use z"ning within
a housing development, or other regulatory incentives or concessions.
3.1.3 "Housing Manager" means the Housing Manager of the City.
3.1.4 "Area Median Income" means the latest median income from time to time determined by
the United States Department of Housing and Urban Development (pursuant to Section 8
of the United States Housing Act of 1937) for the San Diego Standard Metropolitan
Statistical Area.
3 .1.5 "Low Income Tenants" means individuals or families with an income which does not
exceed 80 percent of the Area Median Income, as adjusted for household size and as
most recently determined by the U.S. Department of Housing and Urban Development.
3.1.6 "3 BR Low Income Apartment" means any ten (10) threecbedroom apartment units on
the Real Property, which shall be continuously occupied only by and affordable to a Low
Income Tenant.
3.1.7 "Affordable Apartment" means any of the apartments defined in Paragraph 3.1.6;
"Affordable Apartments" means all of such apartments collectively.
3.1.8 "Manager's Unit" means that unit on the real property occupied by a resident property
manager which may be exempt from occupancy restrictions.
3.1.9 "Rent" means the total of monthly payments for all of the following: (a) use and
occupancy of the apartment unit and land and facilities associated therewith, (b) any
separately charged fees or service charges assessed by the lessor which are required of
all tenants, other than security deposits, and (c) a reasonable allowance for utilities not
included in the above costs, excluding telephone service, which takes into consideration
an adequate level of service.
/) ~
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3.2 Qualification of Tenants. As to the Affordable Apartments, the following will apply:
3.2.1 3 BR Low Income Apartments. Each 3 BR Low Income Apartment will be leased to a
Low Income Tenant.
3.3 Monthlv Rent. As to the Affordable Apartments, the following will apply:
3.3.1 Low Income Apartments. The monthly rent charged for all the Low Income Apartments
shall not exceed the lesser of the following: a) ten percent less than non-restricted
dwelling units within the Project; or b) one-twelfth of the amount obtained by
multiplying 30 percent times 60 percent of the Area Median Income, as adjusted for
household size and assuming the following unit sizes and household sizes:
Unit Size
Three Bedroom
Household Size
Five Persons
3.4 Proof of Oualification. Property Owner will obtain from each person(s) to whom Property
Owner rents an Affordable Apartment a "Supplemental Rental Application" ("the Application ")
in the form of Exhibit D attached hereto and incorporated herein (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 documL-nts thereto in determining
the eligibility of such pcrson(s) to rent such Affordable Apartment. Property Owner will retain
the Application and supporting documents for a period of at least three years after the applicant
thereof ceases to occupy such Affordable Apartment.
Copies of the most recent Supplemental Rental Application for Low Income Tenants
commencing or continuing occupancy of an Affordable Apartment shall be attached to the semi-
annual report to be med with the City in compliance with Section 3.6 of this Agreement
An Affordable Apartment occupied by a qualified tenant who at the commencement of the
occupancy qualifies as a low income household shall be trcatcd as occupied by a Low Income
Tenant until a recertification of such tenant's income in accordance with Section 3.4.1 below
demonstrates that such tenant no longer qualifies as a Low Income Tenant.
3.4.1 Recertification of Income. Immediately prior to the first anniversary date of the
occupancy of an Affordable Apartment by a qualified tenant, and on each anniversary
date thereafter, the Property Owner shall recertify the income of the occupants of each
Affordable Apartment by obtaining a completed Snpplcmcntal Rental Application based
upon the current income of each occupant of the Affordable Apartment. In the event the
recertification demonstrates that such household's income exceeds the income at which
such houschold would qualify, such household will no longer qualify as a Low Income
Tenant, and the Property O\\-ner will rent the next available unit of comparable or
smaller size to one or more Low Income Tenants.
3.5 Waiver. Property Owner may apply in writing to the Housing 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 Apartments(s). Within 30 days after
receipt of any such application, the Housing Manager will, in writing, either grant or disapprove
the requested waiver; the failure of the Housing Manager to act within said period "ill be
deemed to be approval of such requested waiver. If such waiver is granted, Property Owner may
4
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lease the Affordable Apartment(s) affected by the granted waiver to such pcrson(s) and at such
rental as Property Owner determines, subject to each of the following:
3.5.1 Month-to-Month Tcnancv. Anything in Paragraph 3.5 to the contrary notwithstanding,
the lease or rental agreement will create only a month-to-month tenancy.
3.5.2 Termination of Waiver. At any time after granting any such waiver, the Housing
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.
3.6 Records. Audits. Property Owner will submit to City semi-annual certified rent rol1s, disclosing
with respect to each Affordable Apartment (i) monthly rent rate, (ii) number of occupants for
which the Affordable Apartment is rented, and (iii) the income of such occupant(s) and in the
form of Exhibit E attached hereto and incorporated herein (or such other form as City may from
time to time adopt and of which City notifies Property Owner in writing). 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 ccrtified public accountant, at Property
Owner's cost, within 60 days after the delivery to Property Owner of City's said approval. The
certified public accountant will promptly deliver a copy of the written audit to City.
3.7 Term. The term during which this Article 3 applies commences on the date hereof. Said term
ends on the date which is thirty (30) years after the date on which at least five (5) of the ten (10)
additional dwelling units approved pursuant to the density bonus are first occupied.
ARTiCLE 4 - Breach
4.1 Breach bv City. If City breaches any of its covenants containcd in this Agreement, Property
Owner will have available to it all legal and equitable remedies afforded by the laws oflhe State
of California. .
4.2 Breach bv Property Owner. If, with respect to any Affordable Apartment, Property Owner
breaches this Agreement by charging higher rent than that herein pennitted, Property Owner
will, immediately upon City's demand, (i) reduce the rent to that permitted herein and (ii) refund
to any tcnants who theretofore paid such higher rent the amount of the excess, together with
interest hereon 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.
8-30
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5
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 Assknment. The rights and obligations of Property Owner under this Agreement may be
transferred or assigned, provided such transfer or assignment is made as a part of the conveyance
of the fee of all or a portion of the Real Property. Any such transfer or assignment will be
subject to the provisions of this Agreement. During the term of this Agreement, any such
assignee or transferee will observe and perform all of the duties and obligations of Property
Owner contained in this Agreement as such duties and obligations pertain to the portion of said
real property so conveyed.
5.2 Amendment or Cancellation of Agrccment. This Agrcement may be amended from timc-ta-time
or cancelled by the mutual consent of the parties hereto but only in the same manner as its
adoption. The term "this Agreement" include, 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 ofthc land, density and dcsign.
5.4 Hold Harmlcss. Property Owner shall defend, indemnify, protcct and hold harmlc,s the City, its
elected and appointed officers and employees, from and against all claims for damages, liability,
cost and expense (including without limitation attorneys' fccs) for personal injury or property
damage arising out of the direct or indireet conduct or operations of the Property Owner, or any
agent or employee, subcontractors, or others in cOlll1ection with the execution of this Agreement,
except only for those claims arising from the sole negligence or sole willful misconduct of the
City, its officers, or employees. Property Owner's indcmnification shall include any and all
costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents or
employees in defending against such claims, whethcr the same proceed to judgment or not.
Property Owner agrees to indemnify, defend, protect and hold harmless the City, its officers, and
employees from and against any and all claims, suits, actions, or other proceedings to which the
City is exposed resulting from the City's preparations, review, approval, or granting of the
Density Bonus as called for in this Agreement. Further, Property Owner, at its own expense
shall, upon written request by the City, defend any such suit or action brought against the City,
its officers, agents or employees. Property Owner's indemnification of City shall not be limited
by any prior or subsequent declaration by the Property Owner.
5.5 Anti-Discrimination. Property Owner, for itself and its successors and assigns, agrees that
during the term of this Agreement, will not, with respect to its operation of the Project,
discriminate against any person because of race, color, creed, religion, sex, sexual orientation,
marital status, age, handicaps, ancestry or national origin.
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5.6 Crime Free Multi-Housing Program. Property Owner, for itself and its successors and assigns,
agrees that during the term of this Agreement, will, with respect to its operation of the Project,
participate in the City of Chula Vista Crime Free Multi-Housing Program or any other
comparable program as may be adopted or implemented by the City of Chula Vista.
5.7 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of the
Agreement inure to the parties' successors or assignees in interest.
5.8 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.
5.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands or requests to be sent to any party shall be
deemed to have been properly given or served if personally served or deposited in the United
States mail, addressed to such party, postage prepaid, registered or certified, with return receipt
requested, at the addresses identified herein as the places of business for each of the designated
parties.
City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Community Development Director
Property Owner;
Hamilton Plaza LTD.
11230 Sorrento Valley Road, Suite 100
San Diego CA 92121
Attn: Danny Dabby
A party may change its address by giving notice in writing to the other party. Thereafter, notices,
demands and requests 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 preelude compliance with one or
more provisions of this Agreement require changes in plans, maps or permits approved by the
City, the parties will:
6.1.1 Notice and Couies: Provide the other party with written notice of such state or federal
restriction, provide a copy of such regulation or pohcy and statement of conflict with the
provisions of this Agreement.
6.1.2 Modification Conferences: The parties will, within 30 days, meet and confer in good
faith in a reasonable attempt to modify this Agreement to comply with such federal or
state law or regulation.
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62 Council Hearings. Thereafter, regardless of whether the parties reach an agreement on the effect
of such fedcral or state law or regulation upon this Agreement, the matter will be scheduled for
hearing before the City Council. Ten days' written notice of such hearing will be given, pursuant
to Government Code Section 65091 and 65094. The City Council, at such hearing, will
determine the exact modification or suspension which shall be necessitated by such federal or
state law or regolation. Property O\'mer, 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 City 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
snch 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 ,,-ith 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 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.
72 Opportunity to be Heard. Upon written request to City by Property Ovmer, the Property Owner
will be permitted an opportunity to be heard orally and/or in writing at a noticed public hcaring
regarding its performance under this Agreement.
7.3 Information to be Provided Properlv 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 an such review or action upon this
Agreement by the Planning Commission or thc City Council.
ARTICLE 8 - Miscellaneous Provisious
8.1 Rules of Construction. The singular includcs the plural and the neuter gender includcs the
masculine and the feminine.
8.2 Severability. The parties hereto agree that the provisions are severable. If any provision ofthis
Agreement is held invalid, the remainder of this Agreement will be effective and ",-ill remain in
full force and eftect unless amended or modified by mutual consent of the parties.
8
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8.3 Entire Agreement. Waivers and Amendments: Regulatory Agreement to Control. Except for the
Regulatory Agreement, this Agreement, together with any other written document referred to or
contemplated herein, embody the entire Agreement and understanding between the parties
relating to the subj ect matter hereof. Notwithstanding any provision in this Agreement to the
contrary, so long as the Regulatory Agrcement is in effect, the terms of the Regulatory
Agreement shall control with respect to the Very Low Income Apartments. Neither this
Agreement nor any provision hereof may be amended, modified, waived, or discharged except
by an instrument in writing cxccutcd by the party against which enforcement or such
amendment, waiver, or discharge is sought.
8.4 Capacities of Partics. Each signatory and party hereto hereby warrants and represents to the
other party that it has legal authority and capacity and direction from its principal to enter into
this Agreement, and that all resolutions or other actions have been taken so as to enable it to
enter into this Agreement.
8.5 Governing LawN enue. This Agreement shall be governed by and construed in accordance with
the laws of 1he State of California. Any action arising under or relating to this Agreement shaH
be brought only in the Federal or State courts located in San Diego County, State of California,
and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this
Agreement, and performance hereunder, shall be the City of Chula Vista.
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IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed as of
the day and year first written above.
HAMIL TON PLAZA LTD., a California Limited Partnership
By: IP INC. a California Corporation, its General Partner
By:
CITY OF CHULA VISTA, a municipal corporation of the State of California
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ATTEST:
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Susan Bigelow, City Clerk
APPROVED AS TO FORM:
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RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING MODIFICATION OF A
PREVIOUSL Y GRANTED DENSITY BONUS (KINGS WOOD
MANOR) FROM FOR-RENT UNITS TO FOR-SALE UNITS
AND APPROVING A FIRST AMENDMENT TO A HOUSING
COOPERATION AGREEMENT FOR KINGSWOOD MANOR
REFLECTING THE MODIFICATION FROM FOR-RENT
UNITS TO FOR-SALE UNITS
WHEREAS, on May 9, 2000, in City Resolution 2009-149, Hamilton Plaza LTD, a
California Limited Partnership ("Property Owner") received a twenty-five percent (25%) density
bonus and modifications of certain development standards pursuant to California Government
Code Section 65915 and the City ofChula Vista Housing Element; and
WHEREAS, the approval of the density bonus was to facilitate the construction of 10
affordable for-sale units to an existing 40 unit multifamily residential development, for a total of
50 units; and
WHEREAS, City Resolution 2009-149, including its findings and determinations, IS
hereby incorporated by reference into this Resolution; and
WHEREAS, the Property Owner determined that a conversion to condominiums was
more appropriate for the site and was issued a final Parcel Map for all fifty units; and
WHEREAS, the project was presented and approved by the Design Review Board on
May 4, 2009 and the proceedings, evidence, and minutes from that hearing is hereby
incorporated into the record of this Resolution; and
WHEREAS, section 65195.5 (a) of the California Government Code requires the City to
grant a minimum 25 percent increase over the otherwise maximum residential density, unless a
lesser percentage is elected by the developer, and at least one additional concession or incentive
to a developer of housing agreeing or proposing to construct at least 33 percent of the total units
for low and moderate income persons and families or 15 percent of the total units tor low income
households; and
WHEREAS, the Developer has elected to satisfy the affordable housing requirement by
providing 33 percent of the total units for low and moderate income persons and families which
results in 17 restricted units, 3 restricted for sale to low-income households (80% of Area
Median Income) and 14 restricted for sale to moderate-income households (120% of Area
Median Income); and
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WHEREAS, the pricing for the three-bedroom units will be based upon 70% of Area
Median Income for the low-income households and 110% of Area Median Income for the
moderate-income households, thereby further increasing the affordability; and
WHEREAS, the City must grant at least one additional incentive or concession as defined
in Section 65195(d) or make a written finding that the additional incentive or concession is not
required to provide the affordable housing; and
WHEREAS, on May 9, 2000, the City Council approved the additional incentive to allow
sixteen percent of the required parking be configured as compact parking spaces; and
WHEREAS, an equity sharing agreement is required by State Law for a period of no less
than 30 years from the date of the first sale; and
WHEREAS, the First Amendment to Housing Cooperation Agreement between the City
and the Property Owner specifies the affordability and sales restrictions in compliance with the
requirements of State Law and modifies the requirements to those specific to a condominium
conversion; and
WHEREAS, The Environmental Review Coordinator has reviewed the proposed project
involving a density bonus transfer from a rental to a for-sale development and the conversion of
40 multifamily units to condominiums for compliance with the California Environmental Quality
Act (CEQA) and has determined that the action qualities for a Class 32 categorical exemption
pursuant to Section 15332 [In-Fill Development Projects] of the State CEQA Guidelines because
the proposed project meets the conditions set forth in this section. Thus, no further
environmental review is necessary.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Chula Vista that:
I. The moditication of the previously approved density bonus, as stated in Resolution 2000-
149, to permit for-sale units rather than for-rent units is approved under the terms set forth in
the First Amendment to Housing Cooperation Agreement, as approved below.
2. The First Amendment to Housing Cooperation Agreement between the City of Chula Vista
and Property Owner related to the modification of density bonus for the condominium
conversion at 54-94 Kingswood Drive (Kingswood Manor) is approved.
Presented by
Approved as to form by
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Bart C. Miesfeld
City/Agency Attorney
Gary Halbert, AICP, PE
Deputy City Manager/Director of
Development Services
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THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
A TTORNEY'S OFFICE AND WILL BE
FORMALL Y SIGNED UPON APPROVAL BY
THE CITY COUNCIL
~~/Y7 d
Bart C. Miesfeld
City Attorney
Dated:
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FIRST AMENDMENT TO HOUSING COO OPERATION AGREEMENT
BETWEEN THE CITY OF CHULA VISTA AND,
HAMIL TON PLAZA L TD
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RECORDING REQUESTED BY:
City of Chula Vista
WHEN RECORDED MAIL TO:
City of Chula Vista
Office of the City Clerk
Attn: City Clerk
276 Fourth Avenue
Chula Vista, CA 91910
FIRST AMENDMENT TO HOUSING COOPERATION AGREEMENT
This first amendment to Housing Cooperation Agreement ("First Amendment") is made as of
,2010, by and between the CITY OF CHULA VISTA, a municipal corporation
("City") and Hamilton Plaza LTD, a California Limited Partnership ("Property Owner") and/or
its successors or assignees.
Recitals
A. The City entered into a Housing Cooperation Agreement ("Agreement") with
Property Owner on May 9, 2000, for the multifamily affordable housing development known as
Kingswood Manor Apartments, located at 54 through 94 Kingswood Drive in the City of Chula
Vista, California (the "Project"). A copy of the Agreement is attachcd as Attachment A and is
hereby incorporated by reference into this First Amendment.
B. The Agreement authorized a density bonus for the development of ten (10)
additional three-bedroom units for low-income households at or below 80 percent of the Area
Median Income ("AMI"). The City was required to provide the Property Owner with incentives
for the production oflow-income housing units within the development if Property Owner agrees
. or proposes to construct certain percentages of the development for low and/or very low-income
households. In response to Property Owner's application, the City Council approved a density
bonus and additional incentives.
C. The parties now desire to amend the Agreement to reflect a modification to the
use of the Project from rental to for-sale.
Now, therefore, for good and valuable consideration, the parties agree to the following:
1. The Agreement is amended as follows:
ARTICLE I-Recitals
(a) 1.4 Proiect. Property Owner proposes to construct ten (l0) additional units to an
existing forty (40) unit residential development, with any three (3) three bedroom units
affordable to low income households at or below 80 percent of the Area Median Income
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("AMI") and fourteen (14) three bedroom units affordable to moderate income
households at or below 120 percent of AMI, at the site west ofthe intersection of Tobias
and Kingswood Drive, also known as 54 through 94 Kingswood Drive, in the City of
Chula Vista ("Project").
ARTICLE 2-DeveIopment Standard
(b) Section 2.3 of the Housing Cooperation Agreement is amended to read as follows:
2.3 Low and Moderate Income Housing. As set forth in Article 3, three (3) dwelling
units shall be sold to buyers qualified as low-income, with income not to exceed 80
percent of the AMI, and the unit shall be priced for low-income buyers at no more than
70 percent of the AMI. As set forth in Article 3, fourteen (14) dwelling units shall be
sold to buyers qualified as moderate income, with income not to exceed 120 percent of
the AMI, and the unit shall be priced for moderate-income buyers at no more than 110
percent ofthe AMI.
ARTICLE 3-Low Income Housing
(c) Section 3.1.5 of the Housing Cooperation Agreement is amended to read as follo.ws:
3.1.5 "Qualified Homebuyer" means individuals or families with an income which does
not exceed 80 percent of the Area Median Income for the low-income category or 120
percent of the Area Median Income for the moderate-income category, as adjusted for
household size and as most recently determined by the United States Department of
Housing and Urban Development.
(d) Section 3.1.6 of the Housing Cooperation Agreement is amended to read as follows:
"3 BR Low or Moderate Income Unit" means any seventeen (17) three-bedroom units on
the Real Property, which includes three (3) low-income units and fourteen (14) moderate-
income units, which shall be initially sold to qualified low or moderate-income
homebuyers.
(e) Section 3.].7 of the Housing Cooperation Agreement is amended to read as follows:
'Affordable Unit" means any of the for-sale units as defined in Paragraph 3.1.6.
(f) Section 3.1.9 of the Housing Cooperation Agreement is amended to read as follows:
"Mortgage Payment" means the sum of all actual or projected monthly or aunual
recurring expenses that include all of the following: (a) payments for principal and
interest on a mortgage loan; (b) loan insurance fees; (c) property taxes and assessments;
(d) fire and casualty insurance; (e) homeowner association fees; and (f) a reasonable
allowance for utilities, or as defined in 25 California Code of Regulations Section 6920.
(g) Section 3.2 of the Housing Cooperation Agreement is amended to read as follows:
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Qualification of Homebuver. Each 3 BR Low or Moderate Income Unit will be sold to a
qualified low or moderate-income buyer as defined in Section 3.1.5.
(h) Section 3.3 of the Housing Cooperation Agreement is amended to read as follows:
Qualified Sales Price. Each of the designated Affordable Units shall be priced as follows:
Unit Size by No. of Bedrooms (1 Persoll Per Bedroom + 1)
Qualifying Percent of Area Median Income (AMI) for Affordable Housing
Low Moderate
Income Income
3 Bdrms 3 Bdrms
70% 110%
$54,950 $86,350
4,579 7,196
30% 35%
16,485 30,223
1,374 2,519
1,393 3,038
250 250
1,585 1,585
3,012 3,012
10,245 22,337
0.0758 0.0758
135,154 294,689
4,180 9,114
$139,334 $303,804
$854 $1,861
Equals Annual Household Income Based Upon Qualifying Percent of AM!
(see Footnote # I )
Equals Monthly Household Income Based Upon Qualifying Percent of AMI
Times Percent of Household Income Attributable to Housing Expenses
Equals Annual Dollars Allowed for Housing Expenses
Equals Monthly Dollars Allowed for Housing Expenses
Less Real Estate Taxes (Annual 1% of Purchase Price)
Less Insurance
Less Utilities
Less Home Owners Fee
Equals Annual Dollars A vailable for Debt Service
Divided by Annual Loan Constant (see Footnote #2)
Equals Maximum Loan Amount that Can Be Used for Home Purchase
Plus Down Payment - 3%
Equals Maximum Allowable Purchase Price (see Footnote #3)
Buyer's Monthly Mortgage Payment - Debt Service/12 months
Footnotes:
1. The household income limits are adjusted for a high cost area as per the Federal Housing Act of 1937 and calculated
using HCD methodology to comply with Health and Safety Code Section 500052.5 and Title 25 Code of Regulations
Sections 6920 and 6932.
2. Rounded to the nearest $50.
3. Annual Loan Constant is based on a 6.5%,30 year fixed rate mortgage.
4 Purchase Price to be adjusted according to total home owner's fees as established by the Real Estate Commissioner.
final interest rate of the loan, other market conditions, and applicable program requirements.
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(i) Section 3.4 of the Housing Cooperation Agreement is amended to read as follows:
Proof of Qualification. Property Owner will obtain from each person(s) to whom
Property Owner sells an Affordable Unit a copy of the Uniform Residential Loan
Application (Loan Application") in the form of Exhibit B attached hercto and
incorporated herein (or such other form as City may from time to time adopt and of with
City notifies Property Owner in writing). Property Owner will be entitled to rely on the
Loan Applkation and the supporting documents in detcrmining the eligibility of each
person(s) to sell such Affordable Unit.
G) Section 3.4.1 of the Housing Cooperation Agreement is deleted.
(k) Section 3.5 and related sections 3.51 and 3.5.2 of the Housing Cooperation Agreement
will be deleted.
(I) Section 3.6 of the Housing Cooperation Agreement is deleted.
(m) Section 3.7 of the Housing Cooperation Agreement is amended to read as follows:
Term. The term during with this Article 3 applies commences on the date hereof. Said
term ends on the date in which the last of the Affordable Units is sold and occupied by a
Qualitied Homebuyer.
ARTICLE 4-Breach
(n) Section 4.1 of the Housing Cooperation Agreement is ap1ended to read as follows:
Breach bv Citv. If City breaches any of its covenants contained in this Agreement as
Amended, Property Owner will have available to it all legal and equitable remedies
atlorded by the laws of the State of California.
(0) Section 4.1 of the Housing Cooperation Agreement is amended to read as follows:
Breach bv Propertv Owner. If, with respect to any Affordable Unit, Property Owner
beaches this Agreement as Amended by selling the Affordable Unit at a price higher than
the Qualified Sales Price or sells the Affordable Unit to a homebuyer who is not a
Qualified Homebuyer, Property Owner will, immediately upon City's demand, (i)
designate another comparable unit as an Affordable Unit and (ii) Provide additional
verification to the City of sale to a Qualified Homebuyer. Further, City is hereby granted
the power (but not the duty) to act as attorney-in-fact of such homebuyers in enforcing
this paragraph.
(p) Section 4.3 of the Housing Cooperation Agreement is deleted.
ARTICLE S-General Provisions
(q) Section 5.9 of the Housing Cooperation Agreement is amended to read as follows:
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Notices. All notices, demands or requests provided for or permitted to be given pursuant
to this Agreement must be in writing. All notices, demands or requests to be sent to any
party shall be deemed to have been properly given or served if personally served or
deposited in the United States mail, addressed to each party, postage prepaid, registered
or certified, with return receipt requested, at the addresses identified herein as the places
of business for each of the designated parties. A party may change its address by giving
notice in writing to the other party. Thereafter, notices, demands and requests shall be
addressed and transmitted to the new address.
City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Housing Manager
Property Owner:
Hamilton Plaza Ltd.
12526 High Bluff Drive, Suite 355
San Diego, CA 92130
Attn: Danny Dabby
2. All other terms in the Agreement not amended by this First Amendment shall remain
in full force and effect.
Attachments:
A. Housing Cooperation Agreement
B. Uniform Residential Loan Application
(Signature page to follow)
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IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed
as of the day and year tirst written above.
For HAMILTON PLAZA LTD., a California Limited Partnership
By: IPMG, INC. a California Corporation, its General Partner
By: Danny Dabby, its President
For CITY OF CI-IULA VISTA, a municipal corporation of the State of California
By: Cheryl Cox, Mayor
ATTEST:
Donna Norris, City Clerk
APPROVED AS TO FORL\.1:
Bart Miesfeld, City Attorney
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