HomeMy WebLinkAboutCC Resolution 8555 (The Gables BMR)RESOLUTION 8555
A RESOLUTION AUTHORIZING THE SIGNING
OF A BELOW MARKET RENTAL AGREEMENT
RE: THE GABLES
BETWEEN THE CITY OF SAN RAFAEL, THE
HOUSING AUTHORITY OF THE COUNTY OF
MARIN AND MUIR VALLEY LAND COMPANY,
A CALIFORNIA CORPORATION
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
Gables between the City, the Housing Authority of the County of Marin and
Muir Valley Land Company, a California Corporation, a copy of which is
hereby attached and by this reference made a part hereof.
I, JEANNE M. LEONCIlVI, 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 Monday the
4th day of November , 1991, by the following vote, to wit:
AYES: COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer &
Payor P4ulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
E M. LEONC I, City Clerk
ORIGINA(#�s55
92 -0552 -Ail Total .00
gables8/Agreement
,�_zgr x S5 / - �;1- /
-1-
Recorded I
Official Records I
County of I
MARIN I
.JAMES DAL BOH I
Recorder I
11:35am 16 -Jul -92 I AL 25
f
AGREEMENT
Project Name: The Gables
Location: San Rafael, CA
Developer: Muir Valley Land Company, or any successor in
interest.
W
U
lo day
This Agrgeement is made and entered into this of
L.)
o
kb-vf",1 IL l , 19 C// , among the CITY OF SAN RAFAEL a municipal
.LO
corporation (hereinafter referred to as "the City"), the HOUSING
z
;
AUTHORITY OF MARIN, a public body, corporate, and politic,
;LA
created under the Housing Authority Law of the State of
o
California (hereinafter referred to as "Marin Housing Authority")
Q'
and Muir Malley Land Company, a California Corporation, or any
.¢
successor in interest (hereinafter referred to as "Developer").
�
U
LU
A. The Developer intends to construct a residential housing
a
development on that certain real property situated within
J
¢
the corporate limits of the City, which real property is
more particularly described in Exhibit "A" attached hereto
o
a
and incorporated herein.
F-
cn
I-
=
o
B. The City, in accordance with the provisions of the Housing
UJ
ko,
Element of its General Plan, has approved the Developer's
U
„
proposed development on condition that the Developer provide
C)
r
therein four (4) dwelling units to be sold at prices which
711-
o
are within the means of moderate -income households.
Cm
I
C. Marin Housing Authority is authorized by law to participate
,y;o
in programs which provide housing for households of moderate
N
income, and is by experience qualified to screen and
J
determine eligibility of applicants for moderate -income
,¢
a
a
households.
.¢
LM
U_
The parties hereto desire, by this Agreement, to cooperate in
z
¢
implementing the efforts of the Developer, to comply with the
V'
requirement that the Developer make available said dwelling units
r
o
at prices which are within the means of moderate -income
}
households.
3
U
gables8/Agreement
,�_zgr x S5 / - �;1- /
-1-
NOW THEREFORE, it is hereby agreed by and between the parties
hereto as follows:
1. The Developer agrees that four (4) dwelling units selected
by the Developer within the project approved by the City for
the property described in Exhibit "A" attached hereto will
be sold to moderate households, in accordance with the terms
herein 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".
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 County Authority.
4. The Developer further agrees to give written notice to Marin
Housing Authority at least one -hundred -twenty (120) days
prior to estimated issuance of Certificate of Occupancy.
5. Marin Housing Authority agrees to process applications and
certify eligibility of applicants as persons or households
of moderate income in an expeditious manner. 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 small or larger households (refer to
Exhibit "D" attached hereto).
In certifying eligibility of applications, Marin Housing
Authority shall adhere to the requirements for eligibility
adopted by the City and specified in EXHIBIT "C" attached
hereto. Selection of individuals or households 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 the 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.
gables8/Agreement —2—
6. In the event that any Unit remains unsold at the end of one -
hundred -twenty days (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 Hosing Authority in writing of
such fact. Within ten (10) working days after receipt of
such written notice, Marin Housing Authority or its
assignees 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 assignees
does not give such notice, the unit may be sold by the
Developer on the open market without restrictions 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 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 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 of its assignee, in writing. Said deed
restriction shall be in the form of an attachment to the
Grant Deed provided by Marin Housing Authority as set forth
in Attachment "A", incorporated, which shall be incorporated
by reference and recorded with the Grant Deed.
gab1es8/Agreement —3—
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 the 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 first class U.S. mail,
certified/return receipt requested, or by express courier
service, addressed as follows:
To the City:
To Marin Housing Authority:
City of San Rafael
Housing Authority of the
County of Marin
P.O. Box 4282
San Rafael, CA 94913
ATTN: Janet Miller Schoder,
Executive Director
To the Developer: Muir Valley Land Company, A
California Corporation
2228 Union Street, Penthouse
San Francisco, CA 94123
ATTN: Harvey O. Rich
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.
10. The City shall indemnify and hold harmless Marin Housing
Authority and the Developer, its officers, officials,
employees and agents from and against all claims, damages,
losses and expenses including attorneys fees arising out of
any negligent act or omission of the City, except where
caused by the active negligence, sole negligence, or willful
misconduct of the Marin Housing Authority, or caused by the
active negligence, sole negligence, or willful misconduct of
the Developer.
gables8/Agreement —4—
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement the day and year first above written.
CITY OF SAN RAFAEL HOUSING AUTHORITY OF THE
COUNT OF MARI
B ( -
By:
Mayor Chair n
ATTEST:
ATTEST:
By: By:
City �Cretary
MUIR VALL$Y LAND COMPANY, a California corporation:
.`,�CH
Its: SECRETARY -TREASURER
Attachments: EXHIBIT "A": Legal Description of Property
EXHIBIT "B": Schedule of BMR Units and Sales
Prices
EXHIBIT "C": Eligibility of Requirements and
Priorities
EXHIBIT "D": County of Marin Median Family
Income Schedule
ATTACHMENT "A": Attachment to Grant Deed --Grant of Pre-
Emptive Right ("Option") to Purchase to the
Housing Authority.
gables8/Agreement —5—
STATE OF CALIFORNIA )
ss.
COUNTY OF MARIN )
On this 17th day of December, 1991, before me, a Notary Public in and for said County and
State, personally appeared GARY GIACOMINI, known to me to be the person who executed this
instrument as Chairman of the Housing Authority of the 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.
rr rrrrrrr
Deann Nielsen
NOTARY PUBLIC -CALIFORNIA
COUNTY OF tV'AR1N
My Commssion Exni•cs October 31. 1984
Deann Nielsen, Notary Public
in and for said County and State
My commission expires October 31, 1994.
S1ATE OF CALIFORNIA )
SS.
COUNTY OF MARIN )
On this 9th day of NOVEMBER , 1991, before me, JEANNE M. LEONCINI, a
Notary Pubs is in and for the said County and State, residing therein, duly
commissioned and sworn, personally appeared LAWRENCE E. MULRYAN
personally known to me �-0-pt-4�L-�O-iA8-8R-�►E-X313-f1f-ii}�1-��aE9i`j'-
*-vi-d.e4K-&) 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 hereunto set my hand and affixed my official seal
the day and year in this certificate first above written.
JEANNE 11ONC INI,�TARYC in and for
said County and State.
- ...'a
AL LIT_r�L
`�••'•� = =.) NOTARY,-0LIC-CALIFORNIA
COUNTY
_ f ,'.1y Comm. ;:xp:rns Ncv. 29, 1991
;Co. `._:rCAS 3l C'60
I
STATE OF CAL -0RNIA)ss.
COUNTY OF A 71 >Ct &_y1 Ct S C v )
yLc, x^r'�t �-)Nr l lam! /
iz On before me, t e undersigned, a Notary Public in and for
said Slate, personally appeared TTc( i� V C-/ 0 /L r CJ"L -"44—
personally known to me (or proved to me on the
E
a c basis of satisfactory evidence) to be the persons who executed the within instrument aF
c
ii E President a d ^ Secretary, on behalf of
c 0
o v ZI
othe corporation therein named, and acknowledged to rn Thal^,y; OFFICIAL SEAL
oy suchcorporationexecutedthewithininstrumentpursuanttoits ��: SUSAN C. WOODS
s qi NOTARY PUBLIC -CALIFORNIA i
I by-laws or a resolution of its board of directors. Giiy and County of SAN FRANCISCO =
6" My Commission Expires Jan. 25,19M ,
m WITNF,SS my hand and official seal.
N I
Signature ( � (This area for official notarial seal)
t
EXHIBIT "A"
Project Name: THE GABLES
Location: San Rafael, California
Developer: MUIR VALLEY LAND COMPANY, A California Corporation, 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 2, as shown upon that certain Parcel
Plaza, Being a lot line adjustment between
California", filed for record September 21,
34, Marin County Records. '
Map entitled "Parcel Map of Civic Center
Parcel 1 & 2 in 81-56890, San Rafael,
1984 in Volume 22 of Parcel Maps, at Page
A non-exclusive easement as created in that certain Easement Deed .L«,.LLed October
11, 1989 as Instrument No. 89 59520, Marin County Records, for pedestrian and
vehicular access, ingress and egress to and fram Civic Center Drive; utility
purposes, including without limitation, underground storm, and sanitary sewer
systems, underground domestic water systems, underground natural gas systems,
underground electrical systems, irrigation water systems, fire protection,' water
systems, underground telephone and cable television systems, construction,
reconstruction, replacement, removal, alteration, maintenance and use of
improvements, pipelines, transmission lines and appurtenances necessary or desirable
in connection with provision of utilities over the following described parcel:
Beginning at a point formed by the intersection of the two courses of "North 28° 20'
28" West 356.08 feet" and "South 770 13' 00' west 791.11 feet" in the exterior
boundary line of Parcel B, as shown upon that certain parcel map entitled, "Parcel
Map of P..�rc..Ly Line Adjustment Between Lands of Fqu tec/Tiburan and Lands of
Scettrini", filed for record June 14, 1982 in Volume 20 of Parcel Maps at Page 51,
Marin County Records; thence along said exterior boundary line, North 77' 13' 00'
East 466.12 feet; thence leaving said exterior boundary line, North 120 47' 00" West
86.00 feet to a point on the cannon boundary line of Parcels A & B, as shown upon
said parcel map; thence along said cannon boundary line, South 77° 13' 00" West
490.06 feet to a point on said exterior boundary line, thence along said exterior
boundary line, South 28° 20' 28" East 89.27 feet to the point of beginning,
PARCEL: TTMEE:
A non-exclusive easement over and across the Office Easement Parcel for the purposes
and upon the terms and conditions as set forth in that certain Bridge Easement and
Maintenance AyL���.�..1, recorded October 11, 1989 as Instrument No. 89 59521, Marin
County Records.
THE GABLES --Muir Valley Land Company Page 5 of 8
City of San Rafael/Marin Housing Authority O376E/911O3O
EXHIBIT "B"
Project Name: THE GABLES
Location: San Rafael, California
Developer: Muir Valley Land Company, A California Corporation, or any
successor in interest
Total Units: 47
Total BMR Units: 4
SCHEDULE OF BMR UNITS AND SALES PRICES
No. of Units Type Income Size Unit No. or Address Sales Price
4 3BR/2BA Moderate 1200sf Lots 7, 10, 18 & 32 $126,300*
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:
9.25%* / 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.
THE GABLES --Muir Valley Land Company Page 6 of 8
City of San Rafael/14arin Housing Authority 0376E/911030
EXHIBIT "C"
Project Name: THE GABLES
Location: San Rafael, California
Developer: MUIR VALLEY LAND COMPANY, k California Corporation, 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 two of the four 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 GABLES --Muir Valley Land Company Page 7 of 8
City of San Rafael/Marin Housing Authority 0376E/911030
EXHIBIT "D"
Y
�_
Z V y
� o�
•O
O
O
O
O
O
O
O
O
Z Z
ix v O
r+1F
1`L
O
N
O)
0)
O)
O)
lO
Ln
Ln
N
Ln
O
C
4) L 0 a
O O N r-
uC^
K
0
'�
r
r—
h
M
Ol
d'
Ql
d'
Ol
•r 4-•r 01
LZ ��/��\a
�
N',
d•
cr
Ln
Ln
t0
LO
h
h
,-- a w I
O a u h
V JZ
of
=Z�
0. u
U t0 t,
U
Q
v
d 1= •r• �e—
O 04, ,- 1
X
rn
E C
O
Ln
O
O
o
O
O
O
O
O
O
O
O
O
O
Ln
:)
S C C
a •r ,d C
C
o 0 IX
�L
O •r-
01
01
Ol
M
01
al
Ol
GO
M: n 4-0
Y
20,
•C
U
w
MM
w
w
w
w
w
>) (a= L al
C
•ch
R•
Ln
Ln
LO
LO
L •r O O >
ro t7 O 4- •,-
E a S +I
O
O
O
O
O
O
O
C)
li V+)4-
aQ
O
O
Ln
O
O
O
O
C)•
+J w 4•-
a LO
N
Ol
LO
d-
N
O
no
lO
O w C= a
n
n
w
w
w
w
w
w
u a a .n
•N
M
h
N
h
r•
Ln
CO
N
to •r E -0 a
M
M
Irr
%r
Ln
Ln
Ln
LO
v- 4•3 CL to E
td
u C O r3
L
C =3 r to U
ro O a•r a
L U >
a
O
O
O
O
O
O
O
CO
LL- a •p
&Q
Ln
Ln
O
O
O
O
O
O
CM C a
17 O
d
M
rr
M
Ln
,-
h
M
C.— to E
0)t0
L C O
O
.—
Ln
Ow
d
0;
N
Ln
c
N to ro^ u
M
M
cr
d
cr
Ln
Ln
Ln
r C
•,-
fl = N
C Ln C
O
O
O
O
O
O
O
C)
(0-0 1 ro
L C lO •r
&Q
Ln
Ln
Ln
O
O
O
O
O
O w t0 Ln -0
W
O
O)
Ot
01
r—
M
In
h
4- O Ln a
J
_00
w
a LT I E
h
r
Ln
a)
M
LO
Ol
N
a •+-J C U-)
O
N
M
M
M
d
cr
LL )
.Ncr
W
OEC
S
U a
C C O L
•.- ro S r S-
O
O
O
O
O
O
O
O
N a1 :3
W
aQ
O
Ln
O
Ln
O
O
O
C)
u
N
Ol
h
C'
d'
d
cr
d
ro O
O
Ln
O a
U
LO
0)
M
h
O
M
l0
tT
b U 4-) C
Z
N
N
M
M
a to C O
h L
E •r a •r
r
a
U 4 r- r
C •
J
O)
Cn
I
E
O
O
O
O
O
O
O
O
01 L ro •r L
f
h
aQ
Ln
Ln
LO
Ln
O
O
O
C)
,-- LL- 0.0 O
Q
r-
O O
.7'
Qt
cr
0)
Ln
Mr
t11 4•1
LL
1
h
>- C C] to U
c7
U
d
h
r
•1
h
O
M
l0
LL. t0•r ro
N
N
co
M
M
cr
cr
d
N O vI 4-
� t
>
C
a
ul
t -a
a to C Ln
X:
U
O
O
O
O
O
O
C)
O
C •r .a < E
a
?SQ
CD
Ln
O
Ln
Ln
O
O
O0
L +3 4-2
4-
3 Ln
h
O)
N
O
LO
N
CO
Q_ -O 4-) O N
rn
4 -La
•a E a a� a
01,
W0
N
Ln
O1
N
Ln
h
O
N
a O C Y •,-•l L
1--•
N
N
N
M
M
M
Cr
cr
VI U •r L-0 ro
J
ro E ro ro a
t L C
LL_
U a 'O
O
Ln
O
Ln
O
Ln
O
O
O
O
O
r L O C ro C
•0 -0
Z
bQ
O
01
M
Ol
Ln
M
Ln
M
Ln
h
Ln
r
O
Ln
3 ro
a C
LO
w
w
w
_
w
w
w
w
r •• of U tr�Q O
O
O
M
LO
01
N
r}•
h
Ol
7^ •r •r 4 iJ
U
N
N
N
N
M
M
M
M
O- E N
a ¢ t7 O b
Z
•C Nt— C= a
L'
Um: O OS•D
v1 dt US C
O
O
O
O
O
O
O
O
- a W O
aQ
Ln
Ln
Ln
Ln
Ln
Ln
Lf)
Ln
N O
C)
M
ct
M
Ol
Ol
Ol
a)
E O w L
_
Ln••
O 10 O N
h
0 1
N
-Z27•r
'
LO
CO
O
N
U a .0 L 3 a1
.—
.
N
N
N
N
M
M
C S_ •r L
•r c( C ro a ro
O 4- U
C r Ln 4- C W
ro ro L Q ro a
•r U a T7 L
C)
a .i •gam 0 rn
W
E
E•r
N
O U4 -
LN t- •
r
N
M
-ct
Ln
LO
h
00
an 4) O C r0
O N
ro 4- O r-
.•r
THE
GABLES --Muir
Valley Land Company
Page 8 of 8
City
of San
Rafael/Marin
Housing
Authority
0376E/911030
W
CO
O
O
O
h
cr
O
W
h
LO
M
O
ATTACHMENT "A"
Recording Requested by:
Marin Housing Authority
When Recorded Return to:
Marin Housing Authority
P.O. Box 4282
San Rafael, CA 94913-4282
Attn: BMR Program
RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE
Owner(s):
Property Address:
Name of Development: The Gables
Local Jurisdiction: City of San Rafael
RECITALS
This Resale Restriction Agreement and Option to Purchase
("Agreement") is entered into as of the day of
19 , by and between the Housing Authority of the County of
Marin ("Authority") and ("Owner")
regarding certain improved real property located at
, California ("Premises").
A. The Premises are described more fully on Exhibit A
attached hereto and incorporated herein by reference and are
subject to the terms and conditions set forth in this Agreement.
B. 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") administered by the Authority on behalf of
City of San Rafael ("City") .
C. The Owner is an eligible moderate -income purchaser
under the Program (defined below) and intends to live in the
Premises as an owner -occupant.
D. 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 Agreement provide the necessary re -sale controls to ensure
THE GABLES --Muir Valley Land Company
City of San Rafael/Marin Housing Authority
that the Premises are maintained and preserved as housing
affordable to eligible moderate -income purchasers.
E. 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. 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 Agreement.
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 HEREBY GRANTS TO THE
AUTHORITY THIS OPTION ON THE FOLLOWING TERMS AND CONDITIONS.
1. Program conditions.
Owner agrees and acknowledges
acceptance of Owner's participation
of the Premises is conditioned upon
of the Premises.
2. Grant of Option to Purchase.
that the Authority's
in the Program and purchase
owner's continuing occupancy
Owner hereby grants and gives to the Authority a right to
purchase all of Owner's right, title and interest in and to the
Premises upon the occurrence of events specified in this
Agreement ("Option"), subject to the terms and conditions
contained herein.
3. Assianment of the Option.
The Authority may assign the Option to another government
entity or to a moderate -income purchaser who meets the
eligibility qualifications established by the Authority under the
Program. The Authority's assignment of the Option 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. As used in this Agreement, the term
"Authority" shall mean the Authority and any assignee to which it
has assigned the Option under this paragraph.
4. Events Givina Rise to Riaht to Exercise Option.
The Authority shall have the right to exercise its Option
upon the occurrence of any of the following events (an "Option
Event"):
a. Receipt of a Notice of Intent to Transfer (defined in
paragraph 5 below);
2
b. Any actual, attempted or pending sale, conveyance,
transfer, lease or other attempted disposition of the Premises or
of any estate or interest therein, except as provided in
paragraph 15 below;
C. Any actual, attempted or pending encumbrance of the
Premises, including without limitation by way of mortgage or deed
of trust, or by judgment, mechanics, tax or other lien, except as
provided in paragraph 16 below;
d. Recordation of a notice of default and/or notice of sale
pursuant to California Civil Code section 2924 (or successor
provisions) under any deed of trust or mortgage with a power of
sale encumbering the Premises;
e. Commencement of a judicial foreclosure proceeding
regarding the Premises;
f. Execution by the Owner of any deed in lieu of
foreclosure transferring ownership of the Premises; and
q. Commencement of a proceeding or action in bankruptcy,
whether voluntary or involuntary, pursuant to Title 11 of the
United States Code or other bankruptcy statute, or any other
insolvency, reorganization, arrangement, assignment for the
benefit of creditors, receivership or trusteeship, concerning the
Owner.
5. Method of Exercisina the Option.
a. Notice of Intent to Transfer. If the Owner desires to
sell, convey, transfer, lease, encumber or otherwise dispose of
the Premises or of any estate or interest therein, Owner shall
notify Authority in writing to that effect (the "Notice of Intent
to.Transfer"). The Notice of Intent to Transfer shall also state
the street address of the Premises, the Owner's full name or
names, the address and telephone number at which Owner shall be
contacted if not at the Premises, 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.O.
Box 4282, San Rafael, CA 94913,•Attention: Executive Director.
b. Notice of Exercise. Upon the occurrence of any Option
Event, the Authority may exercise its Option by delivering notice
to Owner that it will exercise such Option pursuant to the terms
of this Agreement ("Notice of Exercise"). The Notice of Exercise
may be in the form attached hereto and incorporated herein as
Exhibit B, or in such other form as the Authority may from time
to time adopt. The Notice of Exercise shall be delivered by
deposit in the United States mail, postage prepaid, first class,
addressed to the Owner at the Premises, or at such other address
as may be indicated on the Notice of Intent to Transfer, and
delivery shall be deemed effective on the date of deposit. If
the Option Event relates to the potential foreclosure of a
mortgage under paragraphs 4d, a or f, then the Authority shall
also deliver the Notice of Exercise to the mortgagee or
beneficiary under such mortgage, at such mortgagee's or
beneficiary's address of record in the Office of the Recorder of
the County of Marin.
C. Notice of Consent to Transfer. If the Authority does
not exercise the Option, it may give its consent to the
occurrence of the Option Event ("Consent to Transfer"), which
consent shall be conditioned upon the proposed transferee's or
encumbrancer's assumption of Owner's duties and obligations under
this Agreement in writing, or execution of an agreement
substantially similar to this Agreement, within thirty (30) days
after the Consent to Transfer has been delivered to Owner. If
the proposed transferee or encumbrancer fails to assume this
Agreement or execute and deliver a substantially similar
agreement to the Authority within the thirty (30) day period,
then the Consent to Transfer shall expire and the Authority may
exercise the Option as if no Consent to Transfer had been
delivered.
d. Time Period for Notice. The Authority must deliver a
Consent to Transfer, if applicable, not later than sixty (60)
days after the date that it receives notification of an Option
Event. The Authority must deliver a Notice of Exercise, if
applicable, on such date which is the later to occur of the
following dates: (1) sixty (60) days after the date that the
Authority receives notification of an Option Event or (2) fifteen
(15) days after a Consent to Transfer has expired. For purposes
of computing commencement of the delivery periods, the Authority
shall be deemed to have notification of an Option Event on the
date that it actually receives a written Notice of Intent to
Transfer, notice of default, summons and complaint or other
pleading, or other writing specifically stating that an Option
Event has occurred. The Authority shall have no obligation to
deliver a Notice of Exercise or Consent to Transfer, and the
applicable time period for exercise of the Option shall not
commence to run, unless and until it has received notification of
an Option Event in the manner specified in this subparagraph. If
there is a stay or injunction imposed by court order precluding
the Authority from delivering its Consent to Transfer or
exercising the Option within the applicable time period, then the
running of such period shall cease until such time as the stay is
lifted or injunction dissolved and the Authority has been given
written notice thereof, at which time the period for delivery of
a Consent to Transfer or exercise of the Option shall again begin
to run.
e. Notice of Abandonment. If the Authority fails to
4
deliver a Notice of Exercise or Consent to Transfer within the
above -stated time periods, then the Option shall terminate and
have no further force and effect. Thereafter, upon request by
Owner, the Authority shall cause to be filed for recordation in
the Office of the Recorder of the County of Marin a notice of
abandonment, which shall declare that the provisions of the
Option are no longer applicable to the Premises. If the
Authority fails to record a notice of abandonment, 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 record such
notice promptly.
6. Right to Reinstatement..
If the Option Event is the recordation of a notice of
default, then the Authority shall be deemed to be Owner's
successor in interest under California Civil Code section 2924c
(or successor sections) solely for purposes of reinstatement of
any mortgage on the Premises that has led to the recordation of
the notice of default. As Owner's deemed successor in interest,
the Authority shall be entitled to pay all amounts of principal,
interest, taxes, assessments, insurance premiums, advances,
costs, attorneys' fees and expenses required to cure the default.
If the Authority exercises the Option, then any and all amounts
paid by the Authority pursuant to this paragraph shall be treated
as Adjustments to the Re -Sale Price for the Premises, as defined
in paragraph 11, below.
7. Inspection of Premises,.
After delivering a Notice of Exercise, the Authority shall
be entitled to inspect the Premises one or more times prior to
the close of escrow to determine the amount of any Adjustments to
the Re -Sale Price. Before inspecting the Premises, the Authority
shall give Owner not less than forty-eight (48) hours written
notice of the date, time and expected duration of the inspection.
The inspection shall be conducted between the hours of 9:00 a.m.
and 5:00 p.m., Monday through Friday, excluding court holidays,
unless another date and time is mutually agreed to by the
parties. The Owner shall make the Premises available for
inspection on the date and at the time specified in the
Authority's request for inspection.
8. Escrow.
Promptly after delivering a Notice of Exercise, the
Authority shall open an escrow account for its purchase of the
Premises. Close of escrow shall take place on such date which is
the later to occur of the following: (a) sixty (60) days after a
Notice of Exercise has been delivered, or (b) ten (10) days after
Owner has done all acts and executed all documents required for
5
close of escrow. Prior to the close of escrow, the Authority
shall deposit the Re -Sale Price as defined in paragraph 10 below,
plus or minus any Adjustments as defined in paragraph it below.
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. Owner agrees to do all acts and execute all documents
necessary to enable the close of escrow and transfer of the
Premises to the Authority.
9. Proceeds of Escrow; Removal of Exceptions to Title.
Prior to close of escrow, Owner shall cause the removal of
all exceptions to title to the Premises that were recorded after
the date of this Agreement. All amounts deposited into escrow by
the Authority shall be applied first to the payment of any and
all liens and encumbrances recorded against the Premises, and
thereafter to the payment of escrow fees and closing costs. Any
amounts remaining after the amounts deposited into escrow by the
Authority have been so applied shall be paid to Owner upon the
close of escrow. If the amounts deposited into escrow by the
Authority are insufficient to satisfy all liens and encumbrances
recorded against the Premises, then Owner shall deposit into
escrow such additional sums as may be required to remove said
liens and encumbrances. In the event that the Authority agrees
to proceed with close of escrow prior to the date that Owner has
caused all exceptions to title recorded after the date of this
Option to be removed, then Owner shall indemnify Authority from
any and all costs, expenses or liabilities (including attorneys,
fees) incurred or suffered by Authority that relate to such
exceptions and their removal as exceptions to title to the
Premises.
10. Resale Price.
Prior to adjustment pursuant to paragraph 11, the re -sale
price of the Premises shall be the lowest of ("Re -Sale Price"):
a. Median Income. The original price paid by the Owner for
acquisition of the Premises pursuant to the Program ("Base
Price") increased (but not decreased) by an amount, if any, equal
to the Base 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 ("Median Income") between the date of
this Agreement and the date that the Authority receives
notification of an Option Event.
b. Index Price. The Base Price increased (but not
decreased) by an amount, if any, equal to the Base Price
2
multiplied by the percentage increase in the Consumer Price Index
for All Urban Consumers for the San Francisco Bay Area published
by the U.S. Department of Labor, Bureau of Labor Statistics
("Index") between the date of this Agreement and the date that
the Authority receives notification of an Option Event.
C. Fair Market Value. The fair market value of the
Premises as determined by an appraiser selected by the Owner and
approved in writing by the Authority.
d. Re -Sale Price Worksheet.. To compute the Re -Sale Price,
the Authority may use the Re -Sale Price Worksheet attached as
Exhibit C hereto, or such other form as the Authority may from
time to time adopt.
11. Adlustments to Re -sale Price..
The Re -Sale Price shall be adjusted by the following
("Adjustments"):
a. Caaital Improvements. An increase for capital
improvements made to the Premises by the Owner provided that the
amount'of said improvements had been previously accepted in
writing by the Authority after original written documentation of
the cost was provided to the Authority for verification. The
amount of the Adjustment shall equal the original cost of any
capital improvements depreciated in a straight-line basis based
upon the estimated useful life of the improvement stated in the
Authority's prior written acceptance of said improvement.
b. Damaaes. A decrease by the amount necessary to repair
damages to the Premises, if any, and to place the Premises into
saleable condition as reasonably determined by the Authority,
including amounts attributed to cleaning, painting, replacing
worn carpeting and draperies, making necessary structural,
mechanical, electrical and plumbing repairs and repairing or
replacing built-in appliances and fixtures.
C. Advances by Authority. A decrease in an amount equal
to the sum of all costs advanced by the Authority for the payment
of mortgages, taxes, assessments, insurance premiums, homeowner's
fees and/or associated late fees, costs, interest, attorneys'
fees, pest inspections, resale inspections and other expenses
related to the Premises, which Owner has failed to pay or has
permitted to become delinquent.
12. Prioritv and Effectiveness of the Option..
a. Recordation. This Agreement shall be filed for
recordation 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 therein, by the Owner.
7
The Option shall have priority over any subsequent sale,
conveyance, transfer, lease or other disposition or encumbrance
of the Premises, or of any estate or interest therein. The
exercise of the Option by the Authority 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. Reauest for Notice of Default. The Authority shall file
a Request for Notice of Default for recordation in the Office of
the Recorder of the County of Marin promptly upon execution of
this Agreement.
13. Survival of Option Upon Transfer.
The Authority's rights to exercise the Option shall survive
any transfer of the Premises by the Owner. 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, including a debtor-in-
possession, debtor or trustee pursuant to Title 11 of the United
States Code, or (iii) any 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"). Notwithstanding the
foregoing, the Option shall not survive the sale and transfer of
the Premises to a third party purchaser pursuant to a judicial or
non -judicial foreclosure or a deed -in -lieu of foreclosure under a
power of sale contained in a mortgage or deed of trust recorded
against the Premises in the Office of the Recorder of the County
of Marin on or prior to the date of this Agreement, provided that
the Authority has received timely notice of such Option event and
has failed to either reinstate said mortgage or deed of trust or
exercise its Option.
14. Voidable Transfers.
As long as the Option has not been abandoned pursuant to
paragraph 5e, any actual or attempted sale, conveyance, transfer
or other disposition 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.
15. Permitted Transfers.
The following transfers of title to the Premises, or of any
estate or interest therein ("Permitted Transfers"), 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
KI
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; or an acquisition of title, or of any interest
therein, in conjunction with marriage. Notwithstanding any
Permitted Transfer, the Option shall remain effective with
respect to the Premises.
16. 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 pursuant to the Program, or to
refinance existing indebtedness incurred to purchase the Premises
pursuant to the Program, in an amount not to exceed the
outstanding principal amount of such existing indebtedness.
17. Obligations of Owner After Option Abandonment.
If the Authority records a notice of abandonment of the
Option, then the Premises may be sold by Owner to a third party
without restriction as to price. Upon such sale, Owner shall pay
to Authority an amount equal to eighty-five percent (85%) of the
difference between the actual sales price and the Re -Sale Price
plus Adjustments. This amount shall be paid upon close of escrow
on the sale of the Premises, or upon execution of a contract of
sale, whichever shall first occur.
18. Limits on Liabilitv.
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.
19. 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 paragraph 9 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.
20. Term of Oution.
The restrictions contained herein shall continue for a
period of thirty (30) years from the date that this Agreement is
filed for record in the Office of the Recorder of the County of
Marin.
21. Notices.
Except as otherwise specified in this Agreement, all notices
required to be sent pursuant to this Agreement shall be made by
personal delivery or by deposit in the United States mail, first
class postage prepaid, and shall be deemed to have been delivered
and received on the date of personal delivery or five (5) days
after deposit in the mail, if sent to the following addresses:
AUTHORITY:
OWNER:
Housing Authority of the County of Marin
Post Office Box 4282
San Rafael, California 94913
Attn: Executive Director and BMR Program
at the address of the Premises
The addresses above may be changed by notice given pursuant to
this section.
22. Attornevs' fees.
If either party is required to initiate legal proceedings to
enforce its rights under this Agreement, the prevailing party in
such action shall be entitled to an award of reasonable
attorneys' fees and costs in addition to any other recovery under
this Agreement.
23. Suecific Performance.
Owner acknowledges that any breach in Owner's performance of
Owner's obligations under this Agreement or in the transfer of
the Premises to the Authority shall cause irreparable harm to the
Authority. Owner agrees that the Authority is entitled to
equitable relief in the form of specific performance upon its
exercise of the Option, and that an award of damages shall not be
adequate to compensate the Authority for Owner's failure to
perform according to the terms of this Agreement.
10
IN WITNESS WHEREOF, the undersigned have caused this Agreement to
be executed this day of , 19_
OWNER(S):
11
State of California
County of Marin
On this day of , 199_, before me,
commissioned and sworn, personally appeared
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) that executed the
within document and acknowledged to me that executed it.
WITNESS my hand and official seal.
Notary's Signature
12
CERTIFICATE OF ACCEPTANCE
(Pursuant to Government Code 527281)
This is to certify that the interest in real property conveyed by
the Resale Restriction Agreement and 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 #10-81, dated 5/19/81;,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
13