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HomeMy WebLinkAboutCC Resolution 10644 (BMR Albert Lofts)RESOLUTION NO. 10644 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE SIGNING OF A BELOW MARKET RATE RENTAL HOUSING AGREEMENT BETWEEN ALBERT LOFTS, LLC AND THE CITY OF SAN RAFAEL RE: THE LOFTS AT ALBERT PARK, 931 Second Street, AP 013-012-23 THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows: The MAYOR and CITY CLERK are authorized to execute, on behalf of the City of San Rafael, a Below Market Rate Rental Housing Agreement between Albert Lofts, LLC and the City of San Rafael, a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at the regular meeting of the Council of said City on the nineteenth day of June, 2000, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 4,. Jea & Leoncini, City Clerk Q�q 1�10y RECORDING REQUESTED BY: WHEN RECORDED MAIL TO: Jeanne MI. Leoncini, City Clerk Department of City Clerk City of San Rafael 1400 Fifth Avenue, Room 209 San Rafael, CA 94901 P- -ders Office aunty Of Marin JOAN C. THAYER Recorder 2 011C NAMFEE .08 TOTAL .00 NO FEE .00 TOTAL TENDERED .0a. 021 0 :54PM 03 -Oct -2001 20211WON1203 5 3 THIS SPACE FOR RECORDERS USE ONLY CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT RE ALBERT LOFTS, 931 Second Street, San Rafael (NOTE: Certified Copy of City of San Rafael Resolution No. 10644, adopted June 19, 2000, attached,) THIS PAGE IS ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ADDITIONAL RECORDING FEE APPLIES a . 1-/ J& s. a CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT Project Name: Albert Lofts Date: October 1, 2001 Address : 931 Second St. Owner: Albert Lofts LLC THIS BELOW MARKET RATE RENTAL UNIT AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS is made and entered this date October 1 , 2001, between the CITY OF SAN RAFAEL, a municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City"), and Albert Lofts LLC (the "Owner"). PREAMBLE WHEREAS, the Owner proposes to construct a 113 unit residential apartment complex located at 931 Second St., San Rafael known as Albert Lofts ("Project"). WHEREAS, the Owner owns the real Property located within the corporate limits of the City and more particularly described in Exhibit "A" attached and incorporated for reference herein and; WHEREAS, the Owner has received the City's approval to construct the Project on the property and; WHEREAS the City's approval of the project is conditioned upon" Owner's compliance with the Housing Element of the General Plan 2000 and providing low and moderate income units as set forth in Exhibit "B" attached and incorporated herein. NOW, THEREFORE, in consideration for the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and the Owner do hereby contract and agree as follows: AGREEMENT Section 1. DEFINITIONS AND INTERPRETATION. Unless otherwise expressly provided herein or unless the context clearly requires otherwise, the following terms shall have the respective meanings set forth below for all purposes of this Below Market Rate Rental Unit Agreement: "Affordable Housing Expense" is the maximum rent for any unit occupied by a Qualifying Tenant which shall be established and updated using the then current Median Gross Income for the Area as shown for example in Exhibit "B". Albert Logs 05:29+01 "Low Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 80% of the Median Gross Income for the Area, adjusted for household size. "Low/Moderate Income Unit" refers to the units described in Exhibit "B". "Median Gross Income for the Area" shall mean income for households of an applicable size in the San Francisco PMSA (Primary Metropolitan Statistical Area) most recently determined by HUD adjusted for household size, as provided by Marin Housing Authority. "Moderate Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 120% of the Median Gross Income for the Area, adjusted for household size. "Plan" shall mean the City of San Rafael General Plan 2000. "Program Administrator" shall mean the administrator for compliance of the Project with the Below Market Rate Unit Rental Agreement which shall be the City. "Project" shall mean the parcel of real property in the City of San Rafael as described in Exhibit "A" hereto, and all rights and appurtenances pertaining thereto, and the buildings, structures and other improvements constructed or to be constructed thereon, including all fixtures and other property owned, leased or licensed by the Owner and located on, or used in connection with, such buildings, structures or other improvements, all of which shall be constructed and operated by the Owner in accordance with the restrictions set forth in this Agreement. "Project Period" means a period of forty (40) years commencing on the date of occupancy of 50% of the units in the Project. Upon occupancy of 50% of the units in the Project, Owner and City shall execute, and record, with the Marin County Recorders Office, the "Notice of Commencement of Project Period" attached to this Agreement specifiying the commencement and expiration date of Project Period. The restrictions set forth herein shall be deemed covenants running with the land provided, however, that upon termination of this Agreement said covenants shall expire. "Qualifying Tenant" means resident households whose incomes do not exceed the household income limits for Low Income Household and/or Moderate Income Household. Section 2. QUALIFYING TENANTS (a) SELECTION. For the duration of the full Project Period, Qualifying Tenant selection shall be based on income eligibility for Low and Moderate Income Households as defined in Section 1 and subject to final approval by the Owner. (b) QUALIFICATION. Qualifying Tenant status shall be determined at the time of initial occupancy of a unit by the tenant(s) and certified annually on the basis of a Tenant Albert Lobs 05 29 01 2 Income Certification (Exhibit "C") executed by the Qualifying Tenant and accompanied by a copy of: (i) their federal income tax return for the immediately prior tax year ; or (ii) their employer's verification of current income ; or (iii) if the Qualifying Tenant is self-employed or the tax return is unavailable, such other satisfactory evidence of income. If a qualifying Tenant certifies that he/she did not file or did not retain a copy of their federal tax return, other evidence, such as a current wage statement or employer records must be obtained. (c) OCCUPANCY. Throughout the Project Period, the required Low/Moderate Income Units in the Project shall be occupied and at all times be rented to Qualifying Tenants at rental rates not to exceed the Affordable Housing Expense as set forth in Exhibit B. No Qualifying Tenant shall be denied continued occupancy, because this tenant exceeds the income limits. If, as of the most recent Tenant Income Certification, it is determined that the income of Qualifying Tenant exceeds one hundred -forty percent (140%) of the Median Gross Income for the Area, then they shall no longer qualify as a Qualifying Tenant. The Owner shall provide the next vacated unit (s) of comparable or smaller size to a Qualified Tenant, as needed to achieve compliance. The Owner shall immediately notify, in writing, each tenant who is no longer a Qualified Tenant of such fact, and that such tenant(s) rent is subject to increase 30 days after receipt of such notice. The Owner shall be entitled to so increase any such tenant's rent only if Owner complies with any law applicable thereto and only after the Owner has rented the next available unit or units in the Project on a one-for-one basis to a Qualified Tenant, or holds units vacant and available for occupancy by Qualified Tenants. The Owner agrees to inform all prospective Qualifying Tenants of the requirements for annual certification of income and of the provisions of the preceding paragraphs. Section 3. REPORTING. (a) EXHIBIT "C" TENANT INCOME CERTIFICATION. Exhibit C shall be obtained from each Qualified Tenant and maintained on file by the Owner. If not previously submitted, attach copy and submit with Exhibit D to the Program Administrator. (b) EXHIBIT "D" CERTIFICATION OF CONTINUING COMPLIANCE. Exhibit D shall be submitted by the Owner to the Program Administrator quarterly until the project is fifty percent (50%) occupied and semi-annually thereafter for the Project Period. (c) The Owner shall permit the Program Administrator to inspect the Project records at the Owner's office upon 10 days notice. Section 4. COVENANTS. It is intended and determined that the provisions of this Agreement shall constitute covenants which shall run with the land comprising the Project for the benefit thereof, and the burdens and benefits thereof shall bind and inure to the benefit of all successors in interest of the parties hereto; provided, however, that on the termination of this Agreement said covenants shall expire. Albert Lofts 05.29"01 3 Section 5. TERM. This Agreement shall become effective upon its execution and delivery. Except as provided in the immediately following paragraph, this Agreement shall remain in full force and effect for the Project Period. Section 6. DEFAULT AND ENFORCEMENT. In the event the Owner leases any unit at a rent in violation of this Agreement, the Owner shall immediately, upon notice from the City, rent the unit at the Affordable Housing Rent in accordance with Exhibit B of this Agreement and pay; (i) to the Qualifying Tenant, an amount equal to the difference between the amount the Owner actually received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation; and (ii) to the City, as liquidated damages, an amount equal to two times the difference between the amount the Owner actually received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation. The parties agree that this formula for establishing liquidated damages is reasonable considering all the circumstances existing on the date of this Agreement, including (a) the range of harm that would result to the City and its housing program under its general plan from violation of this Agreement by the Owner, and (b) the anticipation that proof of the actual damages would be costly and inconvenient. In the event the Tenant cannot be located within a reasopable time the Owner shall pay to the City the total amount due to the Tenant. Section 7. MONITORING FEE. The Owner agrees to pay to the City during the Project Period an annual monitoring fee payable on or before June 1 of each year and shall be calculated at the rate of $50.00 per Low Income Unit per year. Total annual fee $850.00. If the expenses of the City in monitoring compliance by the Owner, with provisions of this Agreement, are in excess of $850.00 in any annual period, the Owner upon written demand shall pay such actual excess costs in an amount not to exceed 10% increase per year. Section 8. UNIT MIX, LOCATION AND HOUSEHOLD SIZE. The Below Market Rate Units shall be located on the parcel described in Exhibit A. Section 9. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. Section 10. AMENDMENTS. This Agreement shall be amended only by written instrument signed by all of the parties hereto. Section 11. ATTORNEY'S FEES. In the event that a party to this Agreement brings an action against any other party to this Agreement by reason of the breach of any condition or covenant, in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suit. Albert Lofts 05i29'01 4 Section 12. SEVERABILITY. If any provision of this Agreement shall be invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction because it conflicts with any other provision (s) or any constitution or statute or rule of public policy, or for any reason, such circumstance shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance or of rendering any other provision or provisions contained herein invalid, inoperative, or unenforceable to any extent whatsoever. The invalidity of any one or more phrases, sentences, clauses or sections contained in this Agreement shall not affect the remaining portions of this Agreement, or any part hereof. Section 13. RECORDING AND FILING. The Owner shall cause this Agreement and all amendments hereto to be recorded and filed in the real property records in the office of the County Recorder of Marin County within 5 working days of the City's execution of the Agreement and shall pay all fees and charges incurred in connection therewith and shall transmit a recorded copy to the City. Upon the expiration of the Project Period the City shall cooperate with the Owner, at the sole expense of the Owner, in the recording of such instruments or instruments of release or termination as the Owner may reasonably request. Section 14. NOTICE. All notices required or permitted under this Agreement shall be sent by certified United States mail, or an overnight courier service requiring a signed receipt, addressed as follows : TO THE CITY: City of San Rafael Attn : City Manager P.O. Box 151560 San Rafael, CA 94915-1560 TO THE OWNER: Albert Lofts LLC 15 Francisco St., STE 350 San Francisco, CA 94133 Notice shall be deemed served for purposes of the Agreement one day after deposit in the United States mail or acceptance by the overnight courier service. Any party may change its address for purpose of notice by giving notice pursuant to this section. Section 15. TERMINATION. This Agreement shall terminate and be of no further force or effect at the end of the Project Period. Albert Lofts 05i29-01 State of RIGHT THUMBPRINT (Optionall County of 7--�-��� �.a i► �� On-4 nZO/ before me, /bay o ATEI INAMEITITLFj6F�OFFICERi.e'JANE 0 ./}IOTARY PUBIIC'1 0 personally appeared U (/ ~ INAMEISI OF SI iERISII CAPACITY CLAIMED BY SIGNER(S) ❑INDIVIDUAL(S) / ❑CORPORATE ❑ personally known to me -OR-) proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the RIGHT THUMBPRINT (Optionsn instrument. OFFICER(S) mttFa ❑PARTNER(S) ❑LIMITED OGENERAL ❑ATTORNEY IN FACT ❑TRUSTEE(S) O GUARD IAN/CONSERVATOR OOTHER: SIGNER IS REPRESENTING: (Name of Personfs) or Entity(lael MARY A. FITZPATRICK t COMM. #1157383�n� U = m NOTARY FUBI_IGCALIFORMR i o ess my hand and official seal. a ALAMEDA COUNTY My Comm Expires Oct. 21, 2001 I • • r r V / ' V � r r r - y (SEAL) ATUfl OF O CAPACITY CLAIMED BY SIGNER(S) ❑INDIVIDUALIST OCORPORATE ATTENTION NOTARY The information requested below and in the column to the right is OPTIONAL. Recording of this document is not required by law and is also optional. It could, however, prevent fraudulent attachment of this certificate to any unauthorized document. THIS CERTIFICATE Mde or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pees Oats of Document DESCRIBED AT RIGHT: Slpnertsl Other Than Named Above WOLCOTTS FORM 63240 Row. 3-614 (prize clue 6-2A1 Q 199 WOLCOTTS FORMS, INC. ALL PURPOSE ACKNOWLEDGMENT WITH SIGNER CAPACITY/REPRESENTATIONITWO FINGERPRINTS OFFICER(S) ❑PARTNER(S) ❑LIMITED ❑GENERAL OATTORNEY IN FACT OTRUSTEEIS) O GUARD IAN/CONSERVATOR ❑OTHER: SIGNER IS REPRESENTING: (Name of Person(s) or Entlty(ies) IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first written above. CITY OF SAN RAFAEL ATTEST: BY: :/7���V-c�o Name: 41bert J ' gy : Title : Mayor Je ne M. LLeo cmi City Clerk Ow er By: � v AlbertLofts 05:29i'01 6 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of P1ari n ss. On Oct, 1, 2001 , before me, Nancy Eurman, Notary Public Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Albert J. Boro Name(s) of Signer(s) XX personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(' whose nameN Oaoer subscribed to the within instrument and acknowledged to me that( /sh /tht y -executed _ _ – A – – – the same in i hs/thQir authorized )11 NANCY EURMAN I capacity(4ory, and that byis ham'/tli>Qir 0 , COMM. #1248639 signature(bryon the instrument the person(*, or �� Lo NOTARY PUBLIC -CALIFORNIA MARIN COUNTY 0 the entity upon behalf of which the person(- ' Y v r My Comm. Wren Fab. 4, 2004Y .4 acted, executed the instrument. WITN�ES,S my hand and official seal. ,, _,L, "I L", Place Notary Seal Above lb­i�ture of Notary ubliP c l OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: City of San Rafael Below Plarket Rate Rental Unit Agreement re Albert Lofts (931 Second St.) Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: Albert J. Boro ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator LX] Other: Flavor Robert J. Lalanne, Planaqer, Albert Lofts. LLC Signer Is Representing: Ci tv of San Rafael — II - Top of thumb here © 1997 National Notary Association • 9350 De Soto Ave., RO Bax 2402 - Chatsworth, CA 91313-2402 Prod. No. 5907 Reorder. Call Toll -Free 1 800-876-6827 EXHIBIT "A" it Order No. : 1-711534 The land referred to is situated in the State of California, County of Marin, City of San Rafael, and is described as follows: PARCEL ONE: COMMENCING at a point on the Southerly line of Second Street between Court and A Streets at the Northeast corner of the lands conveyed to Thomas Cain by deed dated August 6, 1877, and recorded in Book R of Deeds at Page 122, Marin County Records; thence Southerly at right angles to Second Street 100' to the Southeast corner of said Cain's land; thence Easterly at right angles 100' to the Westerly line of Court Street; thence Northerly along said line of Court Street 100' to the Southerly line of Second Street and thence Westerly along the Southerly line of Second Street 100' more or less to the point of commencement being the same premises described in deed from T.J. Mahon to John J. Maguire recorded in Book S of said deed records at Page 460. PARCEL TWO: COMMENCING at the Southeasterly corner of the lot of land conveyed by Commerce Casualty Company,a corporation, to Harold P. Hall, et al by deed recorded March 24, 1936 in Book 313 of Official Records at Page 338, Marin County California Records; running thence in a Western direction along the Southern line of said Hall Lot and the lot conveyed to Henry Brusatori by Giuseppe Bottini, et ux, by deed recorded August 9, 1920 in Book 218 of Deeds at Page 224, Marin County Records, 150 feet to the Southwestern corner of said Brusatori lot, running thence at a right angle in a Southern direction to the Northern line of the Northwestern Pacific Railroad Company right of way; thence in a Eastern direction along said right of way to the lands of the Pacific Gas and Electric Company as described in 11 of Official Records at Page 209, Marin County Records; running thence in a Northern direction along the Western line of said Pacific Gas and Electric Company property 409.75 feet to the point of commencement. EXCEPTING THEREFROM that portion conveyed to San Rafael Redevelopment Agency by deed recorded June 30, 1997 as Document Number 97-34296, Marin County Records. PARCEL THREE: COMMENCING at a point on the South side of Second Street 516 feet Easterly from the East line of "B" Street, said point being the Northeast corner of H. Sorenson's lot as conveyed by T.J. Mahon to said Sorenson, by Deed dated December 1, 1868 and recorded in Book "H" of Deeds in the Office of the County Recorder of Marin County on the 23rd day of March, A.D. 1869, running thence Southerly at right angles to Second Street 100 feet; thence Easterly and parallel to Second Street 50 feet; thence Northerly and at right angles to Second Street 100 feet; and thence Westerly along the South side of Second Street 50 feet to the place of beginning. A.P. Nos. 013-012-10 & 23 EXHIBIT "B" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL AGREEMENT Project Name: Albert Lofts Date: Address: 931 Second St. Owner: Albert Lofts LLC TOTAL NUMBER OF UNITS: 113 TOTAL NUMBER OF LOW INCOME UNITS: 17 ANNUAL MOINTERING FEE: $850.00 AFFORDABLE HOUSING EXPENSE CALCULATION: Housing expense includes most recent utility allowance per schedule from Marin Housing (basic electricity allowance plus cooking). For example, using the 2001 Median Gross Income for the Area. Such calculation would be as follows Low Income Units: The Studio unit Housing Expense shall not exceed 1/12 of 30% of 60% of the median gross annual income for a 1 -person household. The one bedroom unit Housing Expense shall not exceed 1/12 of 30% of 60% of the median gross annual income for a 2 -person household. The two bedroom unit Housing Expense shall not exceed 1/12 of 30% of 60% of the median gross annual income for a 3 person household. The maximum qualifying tenant income is 60% of median. 1 person 2 person 3 person 4 person Median 56,050 64,100 72,100 80,100 60% 33,630 38,460 43,250 48,060 # of BMR units 1 Studio - Income : $33,630 (One-person household @ 60% of median) Housing Expense including utility allowance : $823 3 1 BdrmL - Income : $38,460 (Two -person household @ 60% of median) Housing Expense including utility allowance : $939 - 8 1 Bdrm - Income : $38,460 (Two -person household @ 60% of median) Housing Expense including utility allowance : $939 5 2 Bdrm - Income : $43,250 (Three person household @ 60% of median) Housing Expense including utility allowance : $1052 Albert Lofts 0512901 EXHIBIT "C" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT Project Name: Address Owner: APARTMENT NO TENANT INCOME CERTIFICATION Albert Lofts Date: 931 Second St. Albert Lofts LLC NO. OF BEDROOMS MONTHLY RENT: TENANT / HOUSEHOLD NAME: last first TOTAL CURRENT HOUSEHOLD GROSS ANNUAL INCOME: (total household income includes all wages, salaries, etc., as reported as gross income for federal income tax or pay stubs or other relevant documentation.) Attached hereto are federal or state income tax returns, stubs from paychecks or other evidence of the income of the persons listed below. Name of Member of the Relationship Age Social Place of Household Security No. Employment I/We the undersigned have read and answered fully, frankly and personally each of the above questions under penalty of purjury and do hereby swear they are true. Tenant - Head of Household Date : EXHIBIT "D" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT CERTIFICATION OF CONTINUING COMPLIANCE Project Name: Albert Lofts Date: Address : 931 Second St. Owner: Albert Lofts LLC TOTAL UNITS: 113 TOTAL LOW INCOME UNITS: 17 The undersigned, in accordance with the BELOW MARKET RATE RENTAL UNIT AGREEMENT with the City of San Rafael dated for the Project does hereby certify that during the preceding twelve (12) months, the following units were occupied in accordance with the Below Market Rate Rental Unit Agreement and does hereby further certify that the representation set forth herein are true and correct to the best of the undersigned's knowledge. Low Income Unit Unit Monthly Annual Household Tenants Name No. Size Rent Income size Signed : Date Owner attach additional sheets if necessary