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HomeMy WebLinkAboutCC Resolution 8239 (McInnis BMR)RESOLUTION NO. 8239 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE SIGNING OF A BELOW MARKET RATE RENTAL UNIT AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS BETWEEN McINNIS HOUSING PARTNERS, A CALIFORNIA LIMITED PARTNERSHIP, PHASE I THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows: The CITY MANAGER and CITY CLERK are authorized to execute, on behalf of the City of San Rafael, a Below Market Rate Rental Unit Agreement and Declaration of Restrictive Covenants between McInnis Housing Partners 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 a regular meeting of the City Council of said City held on Monday , the 17th day of September , 1990, by the following vote to wit: AYES: COUNCILMEMBERS: Boro, Shippey, Thayer & Vice -Mayor Breiner NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Mulryan A.o JEA M. LEONCINI, City Clerk 823 9 CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT Project Name : McINNIS PARK APARTMENTS Address McInnis Park Blvd., San Rafael, CA Owner: McInnis Housing Partners, a California Limited Partnership THIS BELOW MARKET RATE RENTAL UNIT AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS is made and entered this date September 17 , 1990, between the CITY OF SAN RAFAEL, a municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City"), and McInnis Housing Partners, a California Limited Partnership (the "Owner"). PREAMBLE WHEREAS, the Owner has acquired a 98 unit complex located at McInnis Park Blvd., San Rafael, known as McINNIS PARK APARTMENTS ("Project'). WHEREA-, the Owner owns the real property located within the corporate limits of the City and more particularly described in Exhibit "A'' attached and incorporated for reference herein and; WHEREAS, the Owner has received the City's approval to acouire the residenrial development ("the project") on the property and; WHEREAS the City's aDDroval of the project is conditioned upon Owner's compliance with the Housing Element of the General Plan 2000 and providing low and moderate income units as set forth in Exhibit "B" attached and incorporated herein. NOW. THEREFORE, in consideration for the mutual covenants and undertakinas set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and the Owner do hereby contract and agree as follows: AGREEMENT Section 1. DEFINITIONS AND INTERPRETATION. Unless otherwise expressly provided herein or unless the context clearly requires otherwise, the following terms shall have the respective meanings set forth below for all purposes of this Below Market Rate Rental Unit Agreement.: "Affordable Housing Rents" are the rents for any unit occupied by a Qualifying Tenant which shall be established using the then current Median Gross Income for the Area as shown for example in Exhi bit "B" . "Low Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 80% of the Median Gross Income for the Area, adjusted for household size. "Low/Moderate Income Unit" refers to the units described in Exhibit "B". "Median Gross Income for households of an applicable size Metropolitan Statistical Area) adjusted for household size. the Area" shall mean income for in the San Francisco PMSA (Primary most recently determined by HUD "Moderate Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 120% of the Median Gross Income for the Area, adjusted for household size. "Plan" shall mean the City of San Rafael General Plan 2000. "Program Administrator" shall mean the administrator for compliance of the Project with the Below Market Rate Unit Rental Agreement which shall be the City. "Project" shall mean the parcel of real property in the City of San Rafael as described in Exhibit "A" hereto, and all rights and appurtenances pertaining thereto, and the buildings, structures and other improvements constructed or to be constructed thereon, including all fixtures and other property owned, leased or licensed by the Owner and located on, or used in connection with, such buildings, structures or other improvements, all of which shall be constructed and operated by the Owner in accordance with the restrictions set forth in this Agreement. "Project Period" means a period of ten (10) years commencing on March 22, 1989 the date of occupancy of 50% of the units. The restrictions set forth herein shall be deemed covenants running with the land provided, however, that upon termination of this Agreement said covenants shall expire. The Project Period shall expire on March 22, 1999. "Qualifying Tenant" means resident households whose incomes do not exceed the household income limits for Low Income Household and/or Moderate Income Household. SECTION 2. QUALIFYING TENANTS (a) SELECTION. For the duration of the full Project Period, Qualifying Tenant selection shall be based on income eligibility for Low and Moderate Income Households as defined in Section 1 and subject to final approval by the Owner. (b) QUALIFICATION. Qualifying Tenant status shall be determined at the time of initial occupancy of a unit by the tenant 2 (s) and certified annually on the basis of a Tenant Income Certification (Exhibit "C") executed by the Qualifying Tenant and accompanied by a copy of: (i) their federal income tax return for the immediately prior tax year ; or (ii) their employer's verification of current income or (iii) if the Qualifying Tenant is self-employed or the tax return is unavailable, such other satisfactory evidence of income. (iv) If a qualifying Tenant certifies that he/she did not file or did not retain a copy of their federal tax return, other evidence, such as a current wage statement or employer records must be obtained. (c) OCCUPANCY. Throughout the Project Period, the required Low/Moderate Income Units in the Project shall be occupied and at all times be rented to Qualifying Tenants. No Qualifying Tenant shall be denied continued occupancy, because this tenant exceeds the income limits. If, as of the most recent Tenant Income Certification, it is determined that the income of Qualifying Tenant exceeds one hundred -forty percent ( 140%) of the Median Gross Income for the Area, then they shall no longer qualify as a Qualifying Tenant. The Owner shall provide the next vacated unit (s) of comparable or smaller size to a Qualified Tenant, as needed to achieve compliance. The Owner shall immediately notify, in writing, each tenant who is no longer a Qualified Tenant of such fact, and that such tenant(s) rent is subject to increase 30 days after receipt of such notice. The Owner shall be entitled to so increase any such tenant's rent only if Owner complies with any law applicable thereto and only after the Owner has rented the next available unit or units in the Project on a one-for-one basis to a Qualified Tenant, or holds units vacant and available for occupancy by Qualified Tenants. The Owner agrees to inform all prospective Qualified Tenants of the requirements for annual certification of income and of the provisions of the preceding paragraphs. SECTION 3. REPORTING. (a) EXHIBIT "C" TENANT INCOME CERTIFICATION. Exhibit C shall be obtained from each Qualified Tenant and maintained on file by the Owner. If not previously submitted, attach copy and submit with Exhibit D to the Program Administrator. (b) EXHIBIT "D" CERTIFICATION OF CONTINUING COMPLIANCE. Exhibit D shall be submitted by the Owner to the Program Administrator quarterly until the project is fifty percent (50%) occupied and semi-annually thereafter for the Project Period. (c) The Owner shall permit the Program Administrator to inspect the Project records at the project. site upon 10 days notice. SECTION 4. COVENANTS. It is intended and determined that the provisions of this Agreement shall constitute covenants which shall run with the land comprising the Project for the benefit thereof, and the burdens and benefits thereof shall bind and inure to the benefit of all successors in interest of the parties hereto; provided, however, that on the termination of this Agreement said covenants shall expire. SECTION 5. TERM. This Agreement shall become effective upon its execution and delivery. Except as provided in the immediately following paragraph, this agreement shall remain in full force and effect for the Project Period. SECTION 6. DEFAULT AND ENFORCEMENT. In the event the Owner leases any unit in violation of this Agreement, the Owner shall immediately, upon notice from the City, rent the unit at the Affordable Housing Rent in accordance with Exhibit B of this agreement and pay; (i) to the Tenant, an amount equal to the difference between the amount the Owner actually received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation; and (ii) to the City, as liquidated damages, an amount equal to two times the difference between the amount the Owner actually received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation. The parties agree that this formula for establishing liquidated damages is reasonable considering all the circumstances existing on the date of this Agreement, including (a) the range of harm that would result to the City and its housing program under its general plan from violation of this Agreement by the Owner, and (b) the anticipation that proof of the actual damages would be costly and inconvenient. In the event the Tenant cannot be located within a reasonable time the Owner shall pay to the City the total amount due to the Tenant. SECTION 7. MONITORING FEE. The Owner agrees to pay to the City during the Project Period an annual monitoring fee payable on or before June 1 of each year and shall be calculated at the rate of $50.00 per Low Income Unit per year. Total annual fee $1,000.00. If the expenses of the City in monitoring compliance by the Owner with previsions of this Agreement are in excess of $1,000 in any annual period, the Owner upon written demand shall pay such excess costs in an amount not to exceed 10% increase per year. SECTION 8. UNIT MIX, LOCATION AND HOUSEHOLD SIZE. The Below Market Rate Units shall be located on the parcel described in Exhibit A and designated for Below Market Rate Units on the final map. SECTION 9. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. SECTION 10. AMENDMENTS. This Agreement shall be amended only by written instrument signed by all of the parties hereto. SECTION 11. ATTORNEY'S FEES. In the event that a party to this Agreement brings an action against any other party to this Agreement 4 by reason of the breach of any condition or covenant, in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suit. SECTION 12. SEVERABILITY. If any provision of this Agreement shall be invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction because it conflicts with any other provision (s) or any constitution or statute or rule of public pol i cy, or for any reason, such ci rcumstance shal 1 not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance or of rendering any other provision or provisions contained herein invalid, inoperative, or unenforceable to any extent whatsoever. The invalidity of any one or more phrases, sentences, clauses or sections contained in this Agreement shall not affect the remaining portions of this Agreement, or any part hereof. SECTION 13. RECORDING AND FILING. The Owner shall cause this Agreement and -all amendments hereto to be recorded and filed in the real property records in the office of the County Recorder of Marin County within 5 working days of the City Execution of the agreement and shall pay all fees and charges incurred in connection therewith and shall transmit a recorded copy to the City. Upon the expiration of the Project Period the City shall cooperate with the Owner, at the sole expense of the Owner, in the recording of such instruments or instruments of release or termination as the Owner may reasonably request. SECTION 14. NOTICE. All notices required or permitted under this Agreement shall be sent by certified United States mail, or an overnight courier service requiring a signed receipt, addressed as follows : TO THE CITY City of San Rafael Attn : City Manager P.O. Box 151560 San Rafael, CA 94915-1560 TO THE OWNER McInnis Housing Partners, a California Limited Partnership Attn : John Shalavi 180 Harbor Drive, Ste 227 Sausalito, CA 94965 Marin Housing Development Corporation Attn : Executive Director PO Box 4282 San Rafael, CA 94913 Notice shall be deemed served for purposes of the Agreement one day after deposit in the United States mail or acceptance by the overnight courier service. Any party may change its address for purpose of notice by giving notice pursuant to this section. E SECTION 15. TERMINATION. This Agreement shall terminate and be of no further force or effect at the end of the Project Period. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first written above. CITY OF SAN RAFAEL ATTEST BY Name : Pamela J. Nicolai Title City Manager anne M. Le ncini City Clerk McInnis Housing Partners A California imite t ership BY : Name:John Shalavi Marin Housing Development Corporation A Non-profit Cal'fornia Corporation BY Name ;Janet Miller-Schoder Assistant Secretary L STATE OF CALIFORNIA ) :OUNTY OF MARIN )ss )n =� . 19 .''� , before me, the undersigned, a Notary Public .n and for the State of Ca�Tifornia, personally appeared Janet Miller Schoder, personally known to me (or proved to me on the basis of satisfactory evidence) to )e the person who executed the within instrument as Assistant Secretary, Marin ousing Development Corporation, and acknowledged to me that such Assistant ecretary, Marin Housing Development Corporation, executed the same. N WITNESS WHEREOF, I have hereunto set my n this certificate first above written. F%7FFICIAL SEAL M L SCOTT 9N Y PUBLIC - CALIFORNIMARIN COUNTY ycromm. expires MAR 23, 1993 STATE OF CALIFORNIA ) ) ss. COUNTY OF MARIN ) hand and official seal the day and year Notary Public On this 20TH day of SEPTEMBER , 199a, before me, JEANNE M. LEONCINI, a Notary Public in and for the said County and State, residing therein, duly commissioned and sworn, personally appeared PAMELA J. NICOLAI personally known to me (-oT^prove�-to•-me�-an-the-basis-o# se-t� �c-t�t-ew}deAee} to be the City Manager 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 abode written. JEANNEE LEONCINII, N4WI UBLIC n and for said Co my and State. State of California) County of Marin) ° JEANNE N7. LEO�'!C!N! 8 ti NOTARY PUBLIC - CALIFORNIA F0,� <>P O CIAL SEAL MARIN COUNTY �a" My Comm. Expims Nov. 29, 1991 1400 - 5th Ave., P.O. Box 60, San Rafael, CA 94915-0060 On this 28th day of September, 1990 before me, Sheila Deeg, a Notary Public, State of California, duly commissioned and sworn, personally appeared John Shalavi known to me to be the general partner of the McInnis Housing Partners, the partnership that executed the within instrument, and acknowledged to me that such partnership executed the same. IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal, in the City of Sausalito, County of Marin the day and year in this certificate first above written. UIi'FIi lqL SEAL SHEILA DEEG �. a'u NOTARY PUBLIC •CALIFORNIA P.t'" ! COUNTY 14 Comm.: - ; April 12'19 9 3 Sheila Deeg My commission a pires 4/12/93 ZXRIBIT Ohm Ilio lW4 rQferrad to 'in this policy is situated in the Mtn or Wifornia, Cotmey of MA r in. City of San Hafuel grid is dawribed as follows: . WT $5, as shown In solid liners aeon tt,at certain parcel map ent:tlod, "Parcel Map of Got Gine Adjustment tots 5, 12 and parcel C, Stith Ranch • Northerly Portion - 17 R.H. 39 -- 21 P.M. 88, Son Maisel, Win County, California," filed for record July 30, 1986 in Volume 23 of psraQl Maps. at P+:gt 46. VAj:In County PacoWee the extcxior.boyndmyr Q£ which is de.sc=:bed As followst "inning at the intersection of the courses "North 30 24' 24" Eaut:, 40.93 fit; and "North 51 28' 36" Wut, 1207.29 feet" as jMwn and delineated on the exterior bow dory of that ceXtain map entitled. "'Partek resp of sat Line Adjustment - Tats 5, 12 z parcel C, Saith Unch - Northerly Portion - 17 R.M. 39 - 21 P.M. 88", recorded July 10, 1986, in Book 23 of Parcel Maps at page, 46F Marin County Record$, aid being the northeast Corner of rAt 59► as shown an said ParCel Map (23 PM 46)1 thence alorl the anterior boundary o£ sad Trot 32 (23 PM 46) the fallowing Courps and distances: South 3 24' 24" Wast, 40.93 feet; t.henca South 7w 36' 24" Mot. 299.03 Peet; thence southwesterly along a tangent curve to t4 right+ having a radius of 2777.78' feet, through a central angle of 2v 13' 02", an are length of 109.11 meet; theme Imuthwasterly along a cwpound Cure$ to the right whose canter beers North 00 08' =a" west, having a radius of 1265.45 fret, through a c%teal angle of 94 S8, S8", an arc length of 240.4$ festa theme south 19 50' 24" Wet, 631.53 feet; thence South 26 37' 5211 West, 84.$7 fSet; thence westerly along a curve to the Left whose center bears South 2 06' 16" west, having a radius of 850 felt. through at a r+tral an,gl,o of 7° 39' 57", an arc length ofo113.73 feet: thence North 7 53' 21" Fast 148 -OS foot; thence Notth 33 26' 30" East, 190.01 beet; thehoe North 19 50' 24" East, 435.59 fe*t; thence northaast:erly along a tangent curve to �° left, having a radius at 1165,43 feetr torough a ural angle of a Sol 5811, an arc length of 303.06 feet; thence nort"terly alor4 a eaapourr3 mrve to the: left whose center beers Horth 8o 081 34" West► having a radius of 2677.78 feet:, thzough a c3nt•�rml. ami$ of 2 is' 0211, an arc I"th of 105.10 feet; thence North 33 00' 00" mas 320.96 feet; thtr�ce Math 74 00' 00" West6 86.85 feet= trance south 70 00'00" west, 195.00 feet:; 'thence Horth 4i 00100" wrest, b60.00 feet; thence North a oovo0" W1est, 295.00 feet; thence North 29 00'00" West•10.00 feet; thence North 380 31' 24" Fast, V.48 feet:; thence North 48 2$' 56" Wast, 27.39 feet; thentn North 38 31' 241' Fast:, 71.33 feet are thence South 510 e,8' 36" East, 894.25 feet to thg Point o$ Beginning. Ali of the foregoing being the ;arae real propatt;y designated as Lot 5B, ars shown on %hat certain 069tifted survey (Sob �o. 124-87), darted E%bruary 25, 1989, prepared by Oberkamper and Associatea►, Civil Engineers, irc., San Rafael, California. EXHIBIT "B" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL AGREEMENT PROJECT NAME: McINNIS PARK APARTMNENTS ADDRESS: McInnis Parkway, San Rafael OWNER: McInnis Housing Partners TOTAL NUMBER OF UNITS: 98 TOTAL NUMBER OF LOW/MODERATE INCOME UNITS: NUMBER OF LOW INCOME UNITS: 20 NUMBER OF MODERATE INCOME UNITS: 20 DATE : ELI AFFORDABLE HOUSING RENT CALCULATION For example, using the 1990 Median Gross Income for the Area such calculation would be as follows : Low Income Units : The one bedroom unit monthly rent shall not exceed 1/12 of 30% of 70% of the median gross annual income for a 2 person household. The two bedroom unit rent shall not exceed 1/12 of 30% of 70% of the median gross annual income for a 3 person household. 1 Bedroom Income : $25,550 (Two person household 0 70% of median) Rent ($25,550/12) x 30% = $638 2 Bedroom Income : $28,735 (Three person household @ 70% of median) Rent : ($28,735/12) x 30% = $718 Moderate Income Units The one bedroom unit monthly rent shall not exceed 1/12 of 30% of 100% of the median gross annual income for a 2 person household. The two bedroom unit rent shall not exceed 1/12 of 30% of 100% of the median gross annual income for a 3 person household. 1 Bedroom Income : $36,500 (Two person household @ 100% of median) Rent ($36,500/12) x 30% = $912 2 Bedroom Income : $41,050 (Three person household @ 100% of median) Rent ($41,050/12) x 30% = $1.026 QUALIFYING TENANT INCOME LIMITS : For example, using the 1990 Median Gross Income for the Area the limits would be : LOW INCOME 80% of median MODERATE INCOME 100% of median 1 Person 2 Person 3 Person 4 Person 25,850 29,200 32,840 36,480 31,900 36,500 41,050 45.600 PROJECT NAME- ADDRESS: EXHIBIT "C" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT TENANT INCOME CERTIFICATION McINNIS PARK APARTMNENTS DATE : McInnis Parkway, San Rafael OWNER: McInnis Housing Partners APARTMENT NO. MONTHLY RENT TENANT/HOUSEHOLD NAME last first TOTAL CURRENT HOUSEHOLD GROSS ANNUAL INCOME (total household income includes all wages, salaries, et., as reported ae gross income for federal income tax.) Attached hereto are federal or state income tax returns, stubs from paychecks or other evidence of the income of the persons listed below. Name of Member of the Relation- Social Place of Household ship Age Security No. Employment I/We the undersigned have read and answered fully, frankly and persona-iy each of the above questions under penalty of purjury and do hereby swear they are true. Tenant - Head of Household Owner Date Date EXHIBIT "D" CITY OF SAN RAFASL BELOW MARKET EATS RENTAL UNIT AGREEMENT CERTIFICATION OF CONTINUING COMPLIANCE PROJECT NAME: McINNIS PARK APARTMNENTS DATE ADDRESS: McInnis Parkway, San Rafael OWNER: McInnis Housing Partners TOTAL UNITS 98 TOTAL LOW INCOME UNITS : TOTAL MODERATE INCOME UNITS The undersigned, in accordance with the BELOW MARKET RATE RENTAL UN"-'-" AGREEMENT with the City of San Rafael dated for the Project does hereby certify that during the preceding twelve (l?) months, the following units were occupied in accordance with the Below Market Rate Rental Unit Agreement and does hereby further certify that the representation set forth herein are true and correct to the best of the undersigned -s knowledge. Low Income Unit Monthly Annual Household Tenants Name No. Rent Income size Moderate Income Tenants Name Signed : Date Owner Attach additional sheets if necessary.