HomeMy WebLinkAboutCC Resolution 9567 (Deer Valley Apartments BMR)RESOLUTION 9567
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN RAFAEL AUTHORIZING THE EXECUTION OF
A BELOW MARKET RATE AGREEMENT
RE: DEER VALLEY APARTMENTS
BETWEEN THE CITY OF SAN RAFAEL
AND TCR #412, DEER VALLEY LIMITED PARTNERSHIP
BE IT RESOLVED, the MAYOR and the CITY CLERK are authorized to
execute, on behalf of the City of San Rafael, a Below Market Rate Agreement
between the City of San Rafael, and TCR #412, Deer Valley Limited Partnership; 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 City Council of said City held on Monday, the 18th day of
March, 1996, by the following vote, to wit:
AYES: COUNCILMEMBERS : Cohen, Heller, Phillips, Zappetini &
Mayor Boro
NOES: COUNCILMEMBERS : None
ABSENT: COUNCILMEMBERS : None
��JE M. LEONI, City Clerk
OR�GiPd�l �s`'
CITY OF SAN RAFAEL
BELOW MARKET RATE RENTAL UNIT AGREEMENT
Project Name: Deer Valley Apartments
Address : Deer Valley Road
Owner: TCR # 412 Deer Valley Limited Partnership
c/o Trammell Crow Residential
THIS BELOW MARKET RATE RENTAL UNIT AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS is made and entered this date
March 18 , 1996, 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 TCR #412 Deer Valley Limited Partnership (the "Owner").
PREAMBLE
WHEREAS, the Owner has proposed to construct a 171 unit residential
apartment complex located on Deer Valley Road, San Rafael, known as Deer Valley
Apartments ("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 expense 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".
"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, Exhibit "E" 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.
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"Affordable Housing Expense" is the maximum expense for any unit occupied
by a Qualifying Teoant which shall be established and updated using the then current
Median Gross Income for the Area as shown for example in Exhibit "B".
"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. It
"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 an&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) year"mmencing 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, Exhibit "E" 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.
I
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 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.
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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.
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 reasonable time the Owner shall pay to the
City the total amount due to the Tenant.
4
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 and Moderate Income Unit per
year. Total annual fee $1,300.00. If the expenses of the City in monitoring compliance
by the Owner, with provisions of this Agreement, are in excess of $1,300.00 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.
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.
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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: TCR #412 Deer Valley Limited Partnership
c/o Trammel Crow Residential
591 Redwood Highway
Suite 5275
Mill Valley, CA 94941
Attn : William W. Thompson
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.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first written above.
ATTEST:
� .six-..� /h .
GYeanne M. Leoncini
City Clerk
CITY OF AE
BY
NahSe : Zbert Boro ,
Title: Mayor
TCR #412 Deer Valley Limited Partnership
By: TCR Northern California, 1993 Inc.,
General Partner//
BY
Name: William Thompson
Title : President
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EXHIBIT A
DESCRIPTION
All that certain real property situate in the City of San Rafael, County of Marin, State of California, described
as follows:
PARCEL 1, as shown upon that certain parcel map entitled "Parcel Map, Resubdivision of Lot 8, Smith
Ranch -Northerly Portion, 17 RM 39", filed for record June 7, 1995 in Volume 25 of Parcel Maps, at Page
89, Marin County Records.
EXHIBIT "B"
CITY OF SAN RAFAEL
BELOW MARKET RATE RENTAL AGREEMENT
PROJECT NAME: Deer Valley Apartments DATE :
ADDRESS: Deer Valley Road
OWNER: TCR #412 Deer Valley Limited Partnership
c/o Trammell Crow Residential
TOTAL NUMBER OF UNITS: 171
TOTAL NUMBER OF LOW / MODERATE INCOME UNITS: 26
NUMBER OF LOW INCOME UNITS: 14
NUMBER OF MODERATE INCOME UNITS: 12
AFFORDABLE HOUSING EXPENSE CALCULATION: For example, using the 1995
Median Gross Income for the Area such calculation would be as follows :
Low Income Units: The one bedroom unit Housing Expense shall not exceed 1/12
of 30% of 65% 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 65% of the median gross
annual income for a 3 person household. The three bedroom unit monthly Housing Expense
shall not exceed 1/12 of 30% of 65% of the median gross annual income for a 4 person
household. The maximum qualifying tenant income is 80% of median.
1 person 2 person 3 person 4 person
Median 41,150 47,050 52,900 58,800
80% 32,950 37,650 42,350 47,050
65% 26,750 30,600 34,400 38,200
1 Bedroom
Income : $30,600 (Two person household @ 65% of median)
Housing Expense : ($30,600/12) x 30% = $765
2 Bedroom
Income : $34,400 (Three person household @ 65% of median)
Housing Expense : ($34,400/12) x 30% = $860
3 Bedroom
Income : $38,200 (Four person household @ 65% of median)
Housing E*pense : ($38,200/12) x 30% _ $955
17
Moderate Income Units : The one bedroom unit monthly rent shall not exceed 1/12 of
30% of 90% of the median gross annual income for a 2 person household. The two bedroom
unit rent shall not exceed 1/12 of 30% of 90% of the median gross annual income for a 3
person household. The three bedroom unit monthly rent shall not exceed 1/12 of 30% of 90%
of the median gross annual income for a 4 person household.
1 person 2 person 3 person 4 person
Median 41,150 47,050 52,900 58,800
90% 37,050 42,350 47,650 52,900
1 Bedroom
Income : $42,350 (Two person household @90% of median)
Housing Expense : ($42,350/12) x 30% = $1,060
2 Bedroom
Income : $47,650 (Three person household @ 90% of median)
Housing Expense: ($47,650) x 30% = $1,190
3 Bedroom
Income : $52,900 (Four person household @ 90% of median)
Housing Expense : ($52,900/12) x 30% = $1,325
foxno. pages: 3 including cover page.
MEMORANDUM
April 10, 1996
TO: Trammell Crow Residential
Bruce Dorfman
Jeanne M. Leoncini, San Rafael City Clerk
FROM: Dick Bornholdt
SUBJECT: Deer Valley Apartments, Smith Ranch Road
Below Market Rate Rental Agreement
415-381-3046
415-485-3184
Please replace the enclosed page 2 of the subject agreement that has word "rent"
instead of the word "expense" in the first line at the top of the page in the definition of
Affordable Housing Expense.
I apologize for any inconvenience this may have caused. Should you have any
questions please contact me.
"Affordable Housing Expense" is the maximum rent for any unit occupied by a
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