HomeMy WebLinkAboutCC Resolution 8515 (Laurel Glen BMR)RESOLUTION NO. 8515
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN RAFAEL AUTHORIZING THE SIGNING OF A
BELOW MARKET RATE HOUSING AGREEMENT BETWEEN
LAUREL GLEN LIMITED PARTNERSHIP AND THE CITY
SAN RAFAEL RE LAUREL GLEN
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows :
VICE
The/MAYOR and CITY CLERK are authorized to execute, on behalf
of the City of San Rafael, a Below Market Rate Housing Agreement
between Laurel Glen Limited Partnership 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 MON-DAY , the _16TH day of SEPTEMBER , 1991, by the
following vote, to wit :
AYES : COUNCILMIEMBERS: Boro, Shippey, Thayer & Vice Mayor Breiner
NOES : COUNCILMEMBERS: None
ABSENT :COUNCILMEMBERS: Mayor Mulryan
JE M. LEONCIN , CITY CLERK
B E L 0 W M A R K E T R A T E H 0 U S I N G A G R E E M E N T
Project Name: LAUREL GLEN
Location: LAUREL GLEN ROAD and SAN PABLO AVE., SAN RAFAEL
Developer: LAUREL GLEN TERRACE, L.P., or any successor in interest
This Agreement is made and entered into this 16th day of SEPTEMBER , 1991 ,
among the CITY OF SAN RAFAEL, a municipal corporation (hereinafter referre3_
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 LAUREL GLEN LIMITED PARTNERSHIP, or any successor in interest
(hereinafter referred 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 property---Jescribed 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."
LAUREL GLEN --Laurel Glen Terrace, L.P. Page 1 of 8
City of San Rafael/Marin Housing Authority 0372E/910819
)
2. The Developer ago-L.:s that the contract sales pr ,or the Units shall not
exceed the prices set forth in Exhibit "B" attached hereto. The contract
sales price is defined as the amount paid by the Buyer to the Developer
without regard to proration of taxes, utilities, or other such items and
without regard to Buyer's payment of homeowners's association fees,
insurance premiums, escrow costs, transfer taxes, recording fees, document
preparation cost or similar items.
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 restrictions as to price, affordability or future re -sale, and no
deed restrictions will be placed on the property. In such event, the
Developer shall pay to the City from the sale price of such Unit
LAUREL GLEN --Laurel Glen Terrace, L.P. Page 2 of 8
City of San Rafael/Marin Housing Authority 0372E/910819
seveny-five per,_n. X75%) of the difference betw_:r, ,ie net price achieved
after normal selling and closing costs 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 first
occur. The City shall pay to Marin Housing 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 monitoring 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 contract conveying a Unit to a Buyer certified by Marin Housing
Authority shall contain a resale restriction and an option to purchase
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 Agreement to be provided by Marin
Housing Authority as set forth in Exhibit "E" to this agreement, which
Agreement shall be executed by the Buyer and recorded in immediate
succession after the Grant Deed conveying title to the property.
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: Laurel Glen, L.P.
c/o Vukovic Development Co.
204 Franklin Street
Redwood City, CA 94063
Attention: Mark Heavey
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.
LAUREL GLEN --Laurel Glen Terrace, L.P. Page 3 of 8
City of San Rafael/Marin Housing Authority 0372E/910819
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day
and year first above written.
CITY OF SAN RAFAEL
By:
Dorothe y�Breiner, Vice Mayor
ATTEST:
By:__6!
ity Clerk Jea�MLeondni
HOUSING AUTHgRITY OF THE
COUNTY V MARIN
ATTEST:
By:
/J�Secretary
DEVELOPER: LAUREL GLEN, L.P.
By: �'L awf
Mark Heavey
Secretary, Frankl'n/Monroe
General Partner
Attachments: EXHIBIT "A" --Legal Description cf Property
EXHIBIT "B" --Schedule of BMR Units and Sales Prices
EXHIBIT "C" --Eligibility Requirements and Priorities
EXHIBIT "D" --Marin County FY1991 Median Family Income Schedule
EXHIBIT "E" --Grant of Pre-Emptive Right ("Option") to Purchase
to the Housing Authority of the County of Marin
LAUREL GLEN --Laurel Glen Terrace, L.P. Page 4 of 8
City of San Rafael/Marin Housing Authority 0372E/910819
STATE OF CALIFORNIA )
S.
COUNTY OF MARIN )
On this 24th day of SEPTEMBER , 1991 , before me, JEANNE M-. LEONCINI, a
Notary Public in and for the said County and State, residing therein, duly
commissioned and sworn, personally appeared DOROTHY L. BREINER
personally known to me (-&I-_proved-to -me -on -the- bas 4s- of- sat4sfAc-tary-
*v4denc-e-) to be the Vice 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 hereunto set my hand and affixed my official seal
the day and year in this certificate first above written.
JEANNE M4Xf C 111, NOT PUBLIC i n and for
said County and State
OFFICIAL SEAL
. `
1EANNE M. LEONCINI '
10TARY PUBLIC - CAUFORNIA
MARIN COUNTY ,
iru.n
My Comm. Expires Nov 29,1991 ;
1L0 50�- th AYf", P u. ��z ��.-•;:-n fca:.c..:a 34915-350
CORPORATE ACKNOWLEDGMENT NO. 2W
' State of On this the day of r 1981, before me,
SS.
County of LM
the undersigned Notary Public, personally appeared
LMan,e_ -f-bo LKS
'`P(personally known to me 01
••' „°.; OFRCIAL SEAL ❑ proved to me on the basis of satisfactory evidence
GINA M. TANKERSLEY'
Noton, Publlc-Collfornio ' to a the pens (s) who executed the within instrument as
,•,� SAN MATEO COUNTY or on behalf of the corporation therein
,••• My Comn , shon Expires named, and ackno ed ed to me that the co
December 25, 1993 9 corporation executed it.
- • , _ • - - . • - . WITNESS my hand and official seal.
Notary's Signature Or—
ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could prevent fraudulent attachment of this certificate to another document.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED Number of Pagecz Date of Document
TO THE DOCUMENT
DESCRIBED AT RIGHT: Signer(s) Other Than Named Above
7120 019 NATIONAL NOTARY ASSOCIATION • B= Rem,net Ave. • P.O. Boz 7184 • Canoga Park. CA 1913174-7184
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.
. '�-Q A&A/ --1 1 �l
Deann Nielsen, Notary Public
in and for said County and State
Deann Nielsen
NOTARY PUBUC-CALIFORNIA W My commission expires October 31, 1994.
COUNTY OF MARIN
MY Comm Ww ExpL•es Oclob& 31, 1984 ;
EXHIBIT "A"
Project Name: LAUREL GLEN
Location: LAUREL GLEN TERRACE and SAN PALBO AVE., SAN RAFAEL
Developer: LAUREL GLEN, L.P., or any successor in interest
DESCRIPTION:
All that certain Real Property situated in the City of San Rafael, State of
California, described as follows:
PARCEL ONE:
BEGINNING at a point on the Easterly side of the Public Highway known as
Petaluma Road, where said road crosses what was formerly known as the Dixon
Puerto Suello, said point being where said road is intersected by the
Northerly boundary line of the "Coleman Tract"; thence along the summit of the
San Pedro Ridge and following the Northerly boundary line of the "Coleman
Tract", North 450 35' East 469.8 feet, South 500 11' East 129.7 feet,
South 730 13' East 171.7 feet, North 880 19' East 160.5 feet, North 550
42' East 300 feet, thence leaving the said "Coleman Tract" and descending from
said Ridge North 480 49' West 1503.5 feet to a stake in the Southerly
boundary line of San Pablo Avenue; thence along said boundary line of said
Avenue, South 230 39' West 878.2 feet to the Easterly side of the Petaluma
Road; thence along said side of said road South 360 31' East 195.1 feet,
South 340 36' East 208.7 feet, South 440 37' East 334.9 feet to the point
of beginning.
EXCEPTING THEREFROM those portions described by the deeds to the State of
California recorded:
A) January 14, 1930 in Book 190 of Official Records at page 64, Marin County
Records
B) February 18, 1941 in Book 408 at page 379, Marin County Records
C) December 1, 1944 in Book 475 at page 180, Marin County Records
ALSO EXCEPTING THEREFROM that portion described by the deed executed by Karl
H. Kalberer, et ux, to Marin County Development Company, Incorporated, a
California corporation recorded April 11, 1961 in Book 1451 at page 444, Marin
County Records.
PARCEL TWO:
AN EASEMENT for roadway and utility purposes over a strip of land 40 feet in
width lying Southwesterly of and adjacent to the course North 480 49' West
188 feet as described in the deed executed by Karl H. Kalberer, et ux, to
Marin County Development Company, Incorporated, a California corporation
recorded April 11, 1961 in Book 1451 at page 444, Marin County Records.
LAUREL GLEN --Laurel Glen Terrace, L.P. Page 5 of 8
City of San Rafael/Marin Housing Authority 0372E/910819
EXHIBIT "B"
Project Name: LAUREL GLEN
Location: LAUREL GLEN TERRACE and SAN PABLO AVE., SAN RAFAEL
Developer: LAUREL GLEN, L.P., or any successor in interest
Total Units: 23
Total BMR Units: 2
No. of Units
2
SCHEDULE OF BMR UNITS AND SALES PRICES
Type Income Size Unit No. or Address
3BR/2BA Moderate 1200sf Lot 1 and IA
Sales Price
$120,900*
Following are the family sizes and incomes used to establish the sales price
for each unit:
Unit Size Income Household Size % of Median Income Household Income
3BR/2BA Moderate Four Persons 90% of Median $44,900*
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:
9.75%* / 30 -year, fixed-rate
90%
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.
LAUREL GLEN --Laurel Glen Terrace, L.P. Page 6 of 8
City of San Rafael/Marin Housing Authority 0372E/910819
EXHIBIT "C"
Project Name: LAUREL GLEN
Location: LAUREL GLEN TERRACE and SAN PABLO AVE., SAN RAFAEL
Developer: LAUREL GLEN, L.P., or any successor in interest
Eligibility Requirements
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
household 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 a principal residence.
4. The applicant's household must consist of a minimum of three persons in
order to qualify to purchase a three-bedroom 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.
1. 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.
LAUREL GLEN --Laurel Glen Terrace, L.P. Page 7 of 8
City of San Rafael/Marin Housing Authority 0372E/910819
EXHIBIT "D"
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LAUREL GLEN
--Laurel
Glen
Terrace,
L.P.
Page 8 of 8
City of San
Rafael/Marin
Housing
Authority
0372E/910819
ATTACHMENT A
ATTACHMENT TO GRANT DEED:
GRANT OF PRE-EMPTIVE RIGHT ("OPTION") TO PURCHASE
TO THE HOUSING AUTHORITY OF THE COUNTY OF MARIN
Project Name: Date:
Owner:
Unit No./Address:
THE PROPERTY AND ANY IMPROVEMENTS THEREON WHICH ARE THE SUBJECT OF THIS GRANT
DEED ("PREMISES") ARE CONVEYED SUBJECT TO A PREEMPTIVE RIGHT TO PURCHASE
("OPTION") UNDER THE TERMS AND CONDITIONS SET FORTH BELOW, WHICH OPTION IS
HEREBY GRANTED TO THE HOUSING AUTHORITY OF THE COUNTY OF MARIN ("AUTHORITY").
IN GRANTING THE OPTION TO THE AUTHORITY, THE UNDERSIGNED GRANTEE OF THE GRANT
DEED TO WHICH THIS OPTION IS ATTACHED ("OWNER") UNDERSTANDS AND ACKNOWLEDGES
THAT:
A. The Premises are being made available for purchase by an eligible
moderate -income purchaser at a below-market purchase price pursuant to the
Below Market Rate Home Ownership Program ("Program") of the City of San
Rafael ("City").
B. The Owner is an eligible moderate -income purchaser under the Program and
intends to live in the Premises as an owner -occupant.
C. In order to maintain and preserve the Premises as housing affordable to
eligible moderate -income purchasers, it is necessary to restrict the
re -sale price of the Premises by re -sale controls. Such controls prevent
initial and subsequent purchasers from realizing unwarranted gains from
sales of the Premises at unrestricted prices. The terms and conditions of
this Option provide the necessary re -sale controls to ensure that the
Premises are maintained and preserved as housing affordable to eligible
moderate -income purchasers.
D. The Premises subject to re -sale controls constitute a valuable community
resource by providing decent, safe and sanitary housing to moderate -income
purchasers who otherwise would be unable to afford such housing. In order
to protect and preserve this resource it is necessary, proper and in the
public interest for the Authority to administer the re -sale controls by
means of.this Option.
NOW, THEREFORE, IN CONSIDERATION OF THE SUBSTANTIAL ECONOMIC BENEFITS INURING TO
THE OWNER AND THE PUBLIC PURPOSES TO BE ACHIEVED UNDER THE PROGRAM, THE OWNER
FOR HIMSELF AIJD FOR ALL OTHERS DEFINED AS "OWNER" IN PARAGRAPH 1 HEREBY GRANTS
TO THE AUTHORITY THIS OPTION ON THE FOLLOWING TERMS AND CONDITIONS:
0106E/880914 Page 1 of 7
1. Exercise and Administration of the Option
The Option to purchase the Premises is vested in the Authority. The
Authority may exercise the Option itself or assign it to a moderate -income
purchaser who meets the eligibility qualifications established by the
Authority under the Program. Assignment of the Option or the right to
purchase the Premises, however, shall not extend any time limits contained
herein with respect to the exercise period of the Option or the period
within which the Premises must be purchased. The Option may be exercised
against the Premises whether owned, possessed or occupied by (i) an eligible
moderate -income purchaser, (ii) any successor, transferee, assignee, heir,
executor, or administrator of an eligible moderate -income purchaser, includ-
ing a purchaser who has acquired the Premises by deed in lieu of fore-
closure, or a debtor-in-possession, debtor or trustee pursuant to Title 11
of the United States Code, or (iii) any other person owning, possessing or
occupying the Premises who does not meet the eligibility qualifications
established by the Authority under the Program (collectively all referred to
and defined herein as "Owner").
2. Method of Exercising the Option
a. Notice to Sell and Notice of Acceptance.
If the Owner of the Premises desires to sell, convey, transfer or other-
wise dispose of the Premises or of any estate or interest therein, Owner
shall notify Authority in writing to that effect (the "Notice to
Sell"). The Notice to Sell shall state the street address of the
Premises and the Owner's full name or names, and shall be delivered
personally or deposited in the United States mail, postage prepaid,
first class, certified return receipt requested, addressed to the
Housing Authority of the County of Marin, P. 0. Box 4282, San Rafael, CA
94913, Attention: Janet Miller Schoder. The Authority, or its assignee,
shall then have the right to exercise the Option by delivery of written
notice (the "Notice of Acceptance") in person or by deposit into the
United States mail, postage prepaid, first class, certified return
receipt requested, to the Owner at the address of the Premises at any
time within ninety (90) days from the actual receipt by the Authority of
the Notice to Sell.
b. Sale or Transfer Without Notice to Sell.
If the Owner fails to provide the Authority with a properly delivered
Notice to Sell pursuant to paragraph 2a, and the Authority learns of a
pending or consummated sale, conveyance, transfer, lease or other
disposition of the Premises, or of any estate or interest therein, the
Authority, or its assignee, shall at any time thereafter at its election
have the right to exercise the Option pursuant to the terms of this
Grant; provided, however, that the period for exercise of the Option
shall not be limited to ninety (90) days as would otherwise be required
pursuant to paragraph 2(a). The exercise of the Option shall be by
delivery or by deposit into the United States mail, postage prepaid,
first class, certified return receipt requested, of a Notice of
Acceptance to the Owner at the address of the Premises.
Attachment to Grant Deed: Grant of Pre-emptive Right Page 2 of 7
("Option") to Purchase to the Housing Authority 0106E/880914
3. Escrow
In the event the Authority, or its assignee, exercises the Option, close of
escrow for the purchase of the Premises shall be within ninety (90) days of
the opening of escrow by either party, or such later date as may be mutually
agreeable to the Owner and the Authority, or its assignee. The escrow shall
be opened upon delivery to the Owner of the Notice of Acceptance, or as soon
thereafter as possible. Closing costs and title insurance shall be paid
pursuant to the custom and practice in the County of Marin at the time of
the opening of escrow, or as may be provided otherwise by mutual agreement
between the Owner and the Authority, or its assignee.
4. Re -Sale Price
Prior to adjustment pursuant to paragraph 5, the re -sale price of the
Premises shall be fixed at a price not to exceed the lowest of:
a. The original purchase price paid by the selling Owner (base price) plus
an amount, if any, equal to the original purchase price multiplied by
the percentage increase in the median household income for the San
Francisco Primary Metropolitan Statistical Area (PMSA)--San Francisco,
San Mateo and Marin Counties --published by the Department of Housing and
Urban Development, Office of Economic Affairs, Economic and Market
Analysis Division (hereinafter the "Median Income"), or other such
determination of the median income as may be mutually agreed upon by the
Authority and the City. For that purpose, the Median Income prevailing
on the date of purchase by the selling Owner shall be compared with the
latest Median Income available on the date of receipt by the Authority
of notice of intent to sell. The percentage increase in the Median
Income, if any, shall be computed and the base price shall be increased
by that percentage; provided, however, that the price shall in no event
be lower than the purchase price paid by the selling Owner.
b. The fair market value of the Premises as determined by an appraiser
selected by the Owner and approved in writing by the Authority.
c. The original purchase price paid by the selling Owner (base price) plus
an amount, if any, equal to the original purchase price multiplied by
one-third (1/3) of the percentage increase in the Consumer Price Index
for Housing for All Urban Consumers for the San Francisco -Oakland area
published by the U.S. Department of Labor, Bureau of Labor Statistics
(hereinafter "the Index"), or other such index as may be mutually agreed
upon by the Authority and the City. For that purpose, the Index pre-
vailing on the date of purchase by the selling Owner shall be compared
with the latest Index available on the date of receipt by the Authority
of notice of intent to sell. The percentage increase in the Index, if
any, shall be computed and the base price shall be increased by
one-third (1/3) of that percentage; provided, however, that the price
shall in no event be lower than the purchase price paid by the selling
Owner.
Notwithstanding the foregoing, the re -sale price of the Premises shall not
be fixed at a price lower than the original purchase price paid by the
selling Owner (base price) plus an amount equal to the original purchase
price multiplied by four percent (4.0%) per annum, simple interest.
Attachment to Grant Deed: Grant of Pre-emptive Right Page 3 of 7
("Option") to Purchase to the Housing Authority 0106E/880914
5. Adjustments to Re -Sale Price
The re -sale price as determined pursuant to paragraph 4 shall be adjusted by:
a. Increasing it by the original documented value of any capital improve-
ments made to the Premises by the Owner since the Owner's acquisition of
the Premises, if said improvements were made with the prior written
approval of the Authority.
b. Decreasing it by any amount necessary to repair damages, if any, and to
put the Premises into saleable condition as reasonably determined by the
Authority, including amounts attributed to cleaning, painting, cleaning
or replacing worn carpeting and draperies, making necessary structural,
mechanical, electrical and plumbing repairs and repairing or replacing
built-in appliances.
6. Priority and Effectiveness of the Option
a. This Grant of Option shall be filed for record in the Office of the
Recorder of the County of Marin prior to any sale, conveyance, transfer
or other disposition of the Premises, or of any estate or interest there-
in, by the Owner. The Option shall have priority over any subsequent
sale, conveyance, transfer or other disposition of the Premises, or of
any estate or interest therein. The exercise of the Option by the
Authority, or its assignees, at any time and from time to time shall not
extinguish the Option or cause a merger of the Option into any estate or
other interest in the Premises, and the Option shall continue to exist
and be effective with respect to the Premises against any subsequent
Owner in accordance with the terms and conditions hereof.
b. The Authority shall file a Request for Notice of Default for record in
the office of the Recorder of the County of Marin prior to any sale, con-
veyance, transfer or other disposition of the Premises, or of any estate
or interest therein, by the Owner.
7. Default and Sale Under Deed of Trust or Mortgage
The Authority or its assignee shall also have the right to exercise its
option to purchase the Premises upon occurrence of any one of the following
events: the giving of any notice of sale pursuant to Civil Code Section 2924b
and/or Civil Code Section 2924f under any deed of trust or mortgage with
power of sale encumbering the Premises; service of summons or other papers in
any judicial foreclosure against the Premises; execution by the owner of any
deed in lieu of foreclosure transferring ownership of the Premises. In
exercising its rights under this paragraph, the Authority or its assignee
shall give notice not only to the owner, but also to the mortgagee or
beneficiary under the deed of trust. The Authority or its assignee shall
have ninety (90) days from the date it receives actual notice of any one of
the above events to exercise its option to purchase. In the event the
Authority or its assignee does not exercise its option to purchase the
Premises within ninety (90) days after it receives such actual notice, the
Authority or its assignee shall cause to be recorded in Marin County a notice
stating that it does not intend to exercise its option with respect to the
Premises and declaring that the provisions of this Grant of Option are no
longer applicable to the Premises. The Authority or its assignee shall
deliver copies of said notice to the owner of the Premises and to the
mortgagee or beneficiary under the deed of trust. Said notice shall be
Attachment to Grant Deed: Grant of Pre-emptive Right Page 4 of 7
("Option") to Purchase to the Housing Authority 0106E/880914
recorded within fifteen (15) days of the decision of the Authority or its
assignee not to exercise its option, but in no event later than ninety (90)
days after the Authority or its assignee receives actual notice of any one of
the above events. Upon recordation of said notice, the provisions of this
Grant of Option shall no longer be applicable to the Premises. If the
Authority does not receive a notice of sale in foreclosure, the Authority or
its assignee shall have the right to exercise the option pursuant to
Paragraph 2(b).
8. Bankruptcy
Upon the commencement of a case pursuant to Title 11 of the United States
Code, the trustee, debtor or debtor-in-possession shall acquire a legal or
equitable interest in the Premises which is subject to the terms and con-
ditions of this Option. Subject to any stay enjoining the Authority, or its
assignee, from exercising the Option, the Authority, or its assignee, shall
have the right to exercise the Option within ninety (90) days of the date on
which the Authority receives notice or acquires knowledge of any sale, con-
veyance, transfer or other disposition of the Premises by which the debtor is
or will be deprived of possession of the Premises.
9. Consent to Certain Transfers
It is expressly understood that under the Program the Premises are not per-
mitted to be rented or leased, and that continuing owner -occupancy is a
Program requirement. Unless otherwise authorized pursuant to paragraphs 10
or 11, any rental, lease, encumbrance, or other transfer of the Premises, or
of any estate or interest therein, which conveys less than a fee simple
estate shall give the Authority, or its assignee, the right to exercise the
Option pursuant to paragraph 2. Upon the rental, lease, encumbrance or other
transfer of the Premises, or of any estate or interest therein, which conveys
less than a fee simple estate, the Authority may elect to waive its right to
exercise the Option and may instead grant its prior or subsequent written
consent to such lease, encumbrance, or other transfer, which consent,
however, shall not constitute an abandonment of the Option pursuant to
paragraph 12. The Authority shall grant such consent only if to do so is
consistent with the objective of the Program of ensuring that the Premises
are maintained and preserved as housing affordable to eligible
moderate -income purchasers.
10. Permitted Transfers
The following transfers of title, or of any estate or interest therein, will
not authorize the exercise of this Option: a good faith transfer by gift,
devise or inheritance to the Owner's spouse or issue; a taking of title by a
surviving joint tenant; a court'ordered transfer of title to a spouse as part
of a divorce or dissolution proceeding; an acquisition of title, or of any
interest therein, in conjunction with marriage, provided, however, that the
Option shall remain effective with respect to the Premises following such
transfers.
11. Permitted Encumbrances
This Option shall not become exercisable as the result of the Owner's
encumbering the Premises for the purpose of securing financing to purchase
the Premises or to refinance indebtedness otherwise incurred to purchase the
Premises.
Attachment to Grant Deed: Grant of Pre-emptive Right Page 5 of 7
("Option") to Purchase to the Housing Authority 0106E/880914
w
12. Abandonment of Option
In the event the Authority, or its assignee, abandons or fails to exercise
the Option within a specific time period required by the terms and con-
ditions hereof, the Option shall terminate and the Authority shall cause to
be filed for record in the Office of the Recorder of the County of Marin a
notice of intent not to exercise the Option with respect to the Premises
which shall declare that the provisions of the Option are no longer applic-
able to the Premises, and shall deliver or cause to be mailed a copy thereof
to the Owner at the address of the Premises. The notice of intent not to
exercise the Option shall be recorded within fifteen (15) days of the
Authority's decision not to exercise the Option, but no later than ninety
(90 ) days after the Authority receives a Notice to Sell. In the event the
Authority fails to record a notice of intent not to exercise the Option, the
sole remedy of the Owner shall be to obtain a judicial order instructing
such a recordation, and the Owner shall have no right to damages against the
Authority for failure to promptly record such notice.
13. Limits on Liability
In no event shall the Authority become liable or obligated in any manner to
the Owner by reason of the assignment of the Option, nor shall the Authority
be in any way liable or obligated to the Owner for any failure of the
Authority's assignee to consummate a purchase of the Premises or to comply
with the terms of this Option, or any escrow instructions or agreement for
the purchase of the Premises.
14. Insurance Proceeds and Condemnation Award
In the event the Premises are destroyed and insurance proceeds are
distributed to the Owner instead of being used to rebuild the Premises, or
in the event of condemnation, if the proceeds thereof are distributed to the
Owner, any surplus of proceeds remaining after payment of the encumbrances
of the Premises shall be distributed as follows: that portion of the
surplus up to, but not to exceed, the net amount that the Owner would have
received pursuant to paragraphs 4 and 5 had the Authority exercised its
Option on the date of the destruction or condemnation valuation date shall
be distributed to the Owner, and the balance of such surplus, if any, shall
be distributed to the Authority.
15. Voidable Transfers
As long as the Option has not been abandoned pursuant to paragraph 12, any
attempt to sell, convey, transfer or otherwise dispose of the Premises, or
of any estate or interest therein, in violation of the terms and conditions
of this Option shall be voidable'at the election of the Authority.
16. Term of Option
The restrictions contained herein shall
continue without limitation
in time;
provided, however, that should
it be
finally determined by any
court of
competent jurisdiction that the
restrictions
contained herein, if
unlimited
in time, are invalid, then such
restrictions
shall be deemed to remain in
effect and be enforceable for a
period
of thirty (30) years from
the date
that this Grant of Option is filed
for
record in the Office of the
Recorder
of the County of Marin.
Attachment to Grant Deed: Grant of Pre-emptive Right Page 6 of 7
("Option") to Purchase to the Housing Authority 0106E/880914
•
IN WITNESS WHEREOF, the undersigned have caused this Grant of Option to be
executed this day of , 19_
OWNER(S):
State of California
County of Marin
On this the day of , 19_, before me,
, the undersigned Notary Public, personally
appeared
proved to me on the basis of satisfactory evidence to be the pe rson(s) whose
name(s) subscribed to the within instrument, and acknowledged that
executed it.
WITNESS my hand and official seal.
Notary's Signature
CERTIFICATE OF ACCEPTANCE.
(Pursuant to Government Code #27281)
This is to certify that the interest in real property conveyed by the Grant of
Pre-emptive Right ("Option") to Purchase dated
from to the Housing Authority of
the County of Marin, a political corporation and/or governmental agency, is
hereby accepted by the undersigned officer or agent on behalf of the Housing
Authority of the County of Marin pursuant to authority conferred by resolution
of 5/19/81 ; #10-81 , and the grantee, consents to recordation thereof by its duly
authorized officer.
Dated:
BY:
JANET MILLER SCHODER, Executive Director
Housing Authority of the County of Marin
Attachment to Grant Deed: Grant of Pre-emptive Right
("Option") to Purchase to the Housing Authority
Page 7 of 7
0106E/880914