HomeMy WebLinkAboutCC Resolution 8492 (Highlands BMR)RESOLUTION 8 4 9 2
A RESOLUTION AUTHORIZING THE SIGNING
OF A BELOW MARKET RENTAL AGREEMENT
RE: THE HIGHLANDS
BETWEEN THE CITY OF SAN RAFAEL, THE
HOUSING AUTHORITY OF THE COUNTY OF
MARIN AND THE SIMBA GROUP, OR ANY
SUCCESSOR IN INTEREST
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 Housing Agreement re The
Highlands between the City, the Housing Authority of the County of Marin
and The SIMBA Group or any successor in interest, 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 a
regular meeting of the City Council of said City held on Mondav the
19th day of Auaus t , 1991, by the following vote, to wit:
AYES: COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Mayor
Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
jtAN-NE M. LEON IlVI, City Cierk
'r)
AGREEMENT
Project Name:' THE HIGHLANDS
Location: ORCHID DRIVE and OLEANDER, SAN RAFAEL
Developer: The Simba Group or any successor in interest
This Agreement is made and entered into this day of , 19 ,
among the CITY OF SAN RAFAEL, a municipal corporation (hereinafter referre'd
to as "the City"), the HOUSING AUTHORITY OF THE COUNTY OF MARIN, a public
body, corporate and politic, created under the Housing Authority Law of the
State of California (hereinafter referred to as "Marin Housing Authority"),
and TThhp Simb G� un , or any successor in interest
(hereinatter referrel to as "the Developer").
A. The Developer intends to construct a residential housing development on
that certain real property situated within the corporate limits of the
City, which real property is more particularly described in Exhibit "A"
attached hereto and incorporated herein.
B. The City, in accordance with the provisions of the Housing Element of its
General Plan, has approved the Developer's proposed development on
condition that the Developer provide therein TWO ( 2 ) dwelling units
to be sold at prices which are within the means moderate income households.
C. Marin Housing Authority is authorized by law to participate in programs
which provide housing for households of low and moderate income, and is by
experience qualified to screen and determine eligibility of applicants for
low and moderate -income housing.
The parties hereto desire, by this Agreement, to cooperate in implementing the
efforts of the Developer to comply with the requirement that the Developer
make available said dwelling units at prices which are within the means of
moderate -income households.
NOW THEREFORE, it is hereby agreed by and between the parties hereto as
follows:
1. The Developer agrees that TWO ( 2 ) dwelling units within the project
approved by the City for the property7escribed in Exhibit "A" attached
hereto will be sold to moderate -income households in accordance with the
terms and pursuant to the procedures set forth in this Agreement. Said
dwelling units are identified in Exhibit "B" attached hereto and will be
legally described in an attachment to be recorded with the final map.
Said dwelling units are hereinafter referred to as "the Units."
THE HIGHLANDS/ Page 1 of 8
City of San Rafael/Marin Housing Authority 0368E/910417
2. The Developer agrees that the selling price for the Units shall not exceed
the prices set forth in Exhibit "B" attached hereto.
3. The Developer agrees to offer the Units for sale only to individuals or
households who have been certified as eligible by Marin Housing Authority.
4. The Developer further agrees to to give written notice to Marin Housing
Authority at least one hundred and twenty (120) days prior to estimated
issuance of Certificate of Occupancy.
5. Marin Housing Authority agrees to process applications and certify eligi-
bility of applicants as persons or households of moderate income. An
individual or a household shall be deemed to qualify as a moderate -income
applicant provided the income of such individual or household does not
exceed one hundred twenty percent (120%) of the median income for the San
Francisco Primary Metropolitan Statistical Area (PMSA)--San Francisco, San
Mateo and Marin County --as determined by the United States Department of
Housing and Urban Development ("HUD"), Office of Economic Affairs,
Economic and Market Analysis Division, with adjustments for smaller or
larger households (refer to Exhibit "D" attached hereto).
In certifying eligibility of applicants, Marin Housing Authority shall
adhere to the requirements for eligibility adopted by the City and speci-
fied in EXHIBIT "C" attached hereto. Selection of individuals or house-
holds falling within any of the priorities established in EXHIBIT "C"
shall be determined by a drawing or other equitable method mutually agreed
upon by the City and Marin Housing Authority. Marin Housing Authority
shall be paid a fee of $750 per unit to be paid by the buyer, which
payment shall be included in the buyer's closing costs through escrow.
6. In the event that any Unit remains unsold at the end of one hundred twenty
(120) days from the date of issuance of a Certificate of Occupancy by the
City for the phase of development in which the subject unit is located,
the Developer shall notify Marin Housing Authority in writing of such
fact. Within ten (10) working days after receipt of such written notice,
Marin Housing Authority or its assignee may notify the Developer in
writing that it will purchase such Unit. If such notice is given by Marin
Housing Authority, the Developer shall then sell such Unit to Marin
Housing Authority or its assignee at the same price it would have been
available for sale to households of moderate income. As used herein, the
term "sold" shall mean the execution of a contract for purchase and the
approval of a mortgage loan for the buyer.
In the event that Marin Housing Authority or its assignee declines to
purchase such Unit, it may be sold by the Developer on the open market
without restriction as to price. In such event, the Developer shall pay
to the City from the sale price of such Unit seventy-five percent (75%) of
the difference between the market price achieved and the below -market -rate
sales price specified in Exhibit "B". Said sum shall be paid to the City
upon close of escrow on the sale of such Unit or, if the sale is pursuant
to a contract of sale, upon execution of such contract, whichever shall
THE HIGHLANDS/ Page 2 of 8
City of San Rafael/Marin Housing Authority 0320E/900103
first occur. oe City shall pay to Marin Housi tig Authority ten percent
(10%) of this sum for Marin Housing Authority's use in administering Below
Market Rate projects including, but not limited to, on-going BMR monitor-
ing and future BMR re -sales. The balance of any such payments made to the
City shall be retained by the City in a special account to be used solely
for activities which it deems will facilitate the provision of housing for
persons of low or moderate income.
7. Each deed or contract conveying a Unit to an applicant certified by Marin
Housing Authority shall contain a restriction constituting a right of
first refusal, pursuant to which the buyer agrees that prior to selling
the property, it will first be offered for sale to Marin Housing Authority
or its assignee, in writing. Said deed restriction shall be in the form
of an attachment to the Grant Deed to be provided by Marin Housing
Authority as set forth in Attachment "A" to this agreement, incorporated,
and said deed restriction shall be incorporated by reference and recorded
with the Grant Deed.
8. In the event that the development project is not constructed or in the
event that the master plan for the project is amended or revised such that
the Units specified in Paragraph 1 are no longer required thereby, this
Agreement shall thereupon become void, unless one or more of the Units
have previously been sold in accordance with the provisions of this
Agreement, in which event the provisions of this Agreement will continue
in force with respect to the Unit or Units so sold.
9. All notices required to be given under the terms of this Agreement shall
be sent by first class U.S. mail, certified/return receipt requested, or
by express courier service, addressed as follows:
To the City: City of San Rafael
P.O. Box 60
San Rafael, CA 94915
Attention: Planning Director
To Marin Housing Authority: Marin Housing Authority
P. 0. Box 4282
San Rafael, CA 94913
Attention: Executive Director
To the Developer: The Simba Group
90 E1 Camino Real
Burli ame, Calif. 94010
Attention:
Mr. Doug Pringle
Any party may change the address to which notice shall be mailed to it by
giving notice thereof to the other parties by certified mail.
THE HIGHLANDS/ Page 3 of 8
City of San Rafael/14arin Housing Authority 0320E/900103
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day
and year first above written.
CITY OF SAN RAFAEL
By•\ �.�
LAWRENCE E. MULRYAN, Mayor
ATTEST:
By: `2r
V City Clerk
JEANNE M. LEONCINI
F
By:
HE
PRO TEM
ATTEST: �;�
By:
Secretary
DEVELOPER: The-'Slrrba Groua
Y: 161"
,,
1 /
At�achments: EXHIBIT "A" --Legal Description of Property
EXHIBIT "B" --Schedule of BMR Units and Sales Prices
EXHIBIT "C" --Eligibility Requirements and Priorities
EXHIBIT "D" --County of Marin Median Family Income Schedule
ATTACHMENT "A" --Attachment to Grant Deed: Resale Restriction
Agreement and Option to Purchase
THE HIGHLANDS/ Page 4 of 8
City of San Rafael/Marin Housing Authority 0320E/900103
STATE OF CALIFORNIA
ss.
COUNTY OF MARIN
On this 21ST day of AUGUST , 1991, before me, JEANNE M. LEONCINI,
Notary PuElic in and for the said County and State, residing therein, duly
commissioned and sworn, personally appeared LAWRENCE E. MULRYAN
personally known to me def-p-rawe-d-4��-0-n--Vie--t3&s•�sr-ef-se-t-ii-f-a-ctpy.
-ew4#e-nrc-C-) to be the Mayor of the City of San Rafael that executed the within
document and acknowledged to me that said City of San Rafael did execute the
same.
IN WITNESS WHEREOF, I have hereuntD set my hand and affixed my official seal
the day and year in this certificate first above written.
JEANNE —IN-AI7. N�pU Ry n and for
said County and State.
OFFICIAL SEAL
JEANNE Pig. LEONCIi14I '
NOTARY PUBLIC - CALIFORNIA
nrr _ r-� ••
.:_1 �?.r--• AAARIrVCOUNTY I
My Com- Expires Nov 29, 1991
1400 - 5th Ava., r'.0. ft 60, San Rafael, CA 94915-0060 ,
PARTNERSHIP ACKNOWLEDGMENT_ , 1 _ 2M
0n this the day of -- -_ 19��,beforeme,• -_'-
Stateof � q
An�%ountyofSS. r &Vt" � . '1 CV11_1\
the undersigned Notary Public, personally appeared
Dwra qf�,,'�6d
0
. .
OF=ic,1AL;lOT.4Rv SEAL personally known to me
" L.ARYL J. POPIN
NcLvp proved to me on the basis of satisfactory evidence
SANPut l;c —. Cahtcrnla
SAN -MATED COUNTY to be the person(s) who executed the within instrument on behalf of the
��---" "''Y G°`'•"' Expires JUN 19.1995 _ partnership, and acknowledged to me that the partnership executed it.
W SS my hand d cial secq
Not 5KIS Sign ue / /
ATTENTION NOTARY: Although the information requested helm is OPTIONAL, it mVprevent fraudulent attachment of this to to another domunent
Title or Type of Document
THIS CERIIRCATE c�
MUST BE ATTACHED Number of Pages Date of ocument
TO THE DOCUMENT
DESCRIBED AT RIGHT:
7100-010
Signer(s) Other Than Named Above Li,�&
- - - - - - - - - a NATIONAL NOTARY ASSOCIATION • 8236 Ba meet Ave. • PO. Box 71134 • Canoga Park, C4 91304-718,
STATE OF CALIFORNIA )
ss.
COUNTY OF MARIN )
On this 1st day of October, 1991, before me, a Notary Public in and for said County and State,
personally appeared HAROLD C. BROWN, JR., known to me to be the person who executed this
instrument as Chairman pro tem of the Housing Authority of the County of Marin, and acknowledged to
me that the Housing Authority of the County of Marin executed it.
WITNESS my hand and official seal.
Mme. Nom_
ann Nielsen, Notary Public
in and for said County and State
DeannNiahm M commission expires October 31, 1994.
NOTARY PUBLIC -CALIFORNIA y p
COUNTY OF MARIN
My Commlaslon Expl,as October 31, 1984
EXHIBIT "A"
Project Name: THE HIGHLANDS
Location: Orchid Drive, San Rafael, Calif. 94901
Developer: The Simba Group or any successor in interest
DESCRIPTION:
All that certain Real Property situated in the City of San Rafael, State of
California, described as follows:
DESCRIPTION
All that certain real rl.,pc.ly situate in the City of San Rafael, County of Marin,
State of California, described as follows:
Beginning at a point on the boundary line as established by 1tAy,=a1.=LA Establishing
Boundary" executed by Manuel Fagundes and Manuel T. Freitas, et al, .—Led March
1, 1951 in Book 681 of Official Records at Page 76, Marin County Records; said
point being the most Easterly corner of Lot 104, as shown an that certain map
entitled, "Map of Terra Linda Oaks, No. 2 in the County of Marin, California",
filed for record June 12, 1957 in Volume 9 of Maps, at Page 81, Marin County
Records; and running thence along the Easterly line of said subdivision, South 24°
00' West 411.97 feet and South 19° 15' 25" Fast 364.88 feet to the most Northerly
corner of Lot 89, as shown on that certain map entitled, "Map of Terra Linda Oaks
No. 1 in the County of Marin, Calif.", filed for record Mme 10, 1955 in Volume 8
of Maps, at Page 69, Marin County Records; thence along the Northerly boundary of
said subdivision, South 33° 21' 08" East 134.31 feet, South 550 30' East 85 feet;
thence can a curve to the left whose radius is 312 feet and whose center bears North
420 17' 38" East, a distance of 322.45 feet; thence can a curve to the left whose
radius is 757 feet and whose center bears North 16° 54' 18" West, a distance of
96.64 feet; thence North 810 17' 24" Fast 76.2 feet, North 530 22' 40" East 190.53
feet; North 380 05' East 91.77 feet; North 53° 22' 40" Fast 122.32 feet; North 67°
17' 01" Fast 135.55 feet, North 89° 51' East 93.58 feet to the Northeast corner of
Lot 72, as shown on the "Map of Terra Linda Oaks No. 1", above mentioned; thence
North 90 42' 16' West 44.25 feet, more or less to the boundary line as established
by "Ay�c=iz=,t Establishing Boundary", above referred to; thence North 630 24' 20"
West 1210 feet, more or less, to the point of beginning.
THE HIGHLANDS/ Page 5 of 8
City of San Rafael/Marin Housing Authority
0320E/900103
EXHIBIT 'B"
Project Name: THE HIGHLANDS
Location: Orchid Drive, San Rafael, Calif. 94901
Developer: The Simba Group or any successor in interest
Total Units: 21
Total BMR Units: 2
SCHEDULE OF BMR UNITS AND SALES PRICES
No. of Units Type Income Size Unit No. or Address Sales Price
2 3BR/2BA Moderate 1200sf Lot #1 & Lot #2 $123,600*
Following are the family sizes and incomes used to establish the sales price
for each unit:
Unit Size
3BR/2BA
Income
Moderate
Household Size % of Median Income
Four Persons 90% of Median
Household Income
$44,910*
The sales prices have been established based on the above incomes, current
industry mortgage rates and debt -to -income ratio as follows:
Mortgage Rate/Term:
Loan -to -Value Ratio:
9.5%* / 30 -year, fixed-rate
9010
Percentage of Gross Monthly Income for
Mortgage Payment (Principal and Interest): 25%
* Recalculation of the above sales prices shall be permitted at the time of
receipt by Marin Housing Authority of the Developer's written notice one
hundred twenty (120) days prior to the issuance of Certificates of Occu-
pancy for the Units if either: (i) it is determined that the above -stated
mortgage rate is different from the then -current market interest rate; or,
(ii) it is determined that the median income for the San Francisco PMSA as
determined by the U.S. Department of H.U.D. has changed from that set
forth in Exhibit "D" attached hereto. Upon receipt of the Developer's
120 -day notice, the sales price shall be recalculated by Marin Housing
Authority using the most affordable available mortgage rate for a 30 -year,
fixed-rate mortgage as determined by Marin Housing Authority and using the
most recent median income for the San Francisco PMSA as determined by
H.U.D.. Such an adjustment to the sales price shall be allowed more than
one time only if mutually agreed by all the parties to this Agreement.
THE HIGHLANDS/ Page 6 of 8
City of San Rafael/Marin Housing Authority 0320E/900103
Project Name: THE HIGHLANDS
Location: Orchid Drive, San Rafael, Calif. 94901
Developer: The Simba Group
Eligibility Requirements
or any successor in interest
In determining and certifying eligibility of applicants for the subject
project, Marin Housing Authority shall adhere to the following criteria:
1. The applicant's total household annual income may not exceed 120% of the
current median income for the San Francisco PMSA as determined by the U.S.
Department of Housing and Urban Development (HUD), and as adjusted for
househuld size, in order to qualify as "moderate -income."
2. The total value of the applicant household's assets may not exceed 75% of
the sales price of the unit.
3. The applicant must qualify as a "First-time Homebuyer" --defined as not
having previously owned or had an ownership interest in a principal
residence.
4. The applicant's household must consist of a minimum of three persons in
order to qualify to purchase a three-bedrrom unit.
Priorities for the Drawing
In selecting prospective purchasers from among all eligible applicants, a
drawing shall be conducted. The City of San Rafael has determined that the
following priorities shall be employed in conducting the drawing to select
prospective purchasers. All names shall be drawn from the group of applicants
falling within the first priority before drawing names from the second and
subsequent priority groups.
I. First priority in the drawing for one of the two units shall be given to
all permanent, full-time employees of the City of San Rafael.
2. Second priority in the drawing shall be given to all other applicants.
THE HIGHLANDS/ Page 7 of 8
City of San Rafael/Marin Housing Authority 0320E/900103
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Page R of P,03�0E/g00103
THE
HIGHLANDS/
City
of San
Rafael/Marin
Housing Authority