HomeMy WebLinkAboutCC Resolution 7908 (BMR Agr)RESOLUTION NO. 7908
A RESOLUTION AUTHORIZING THE SIGNING OF
AN AGREEMENT
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 Agreement
between the City and Southwest Diversified, Inc., the Ecumenical
Association for Housing and the Marin County Housing Authority,
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 Council
of said City on Monday , the Sixth day of February
1989, by the following vote, to wit:
AYES: COUNCILMEMBERS: Boro, Breiner, Frugoli, Thayer & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
7EJE �LEONC*INCity Clerk
Ifol
RECORDING REQUESTED BY:
WHEN RECORDED MAIL TO:
A G R E E M E N T
Project Name: Marin Lagoon
Location: Civic, Center North, Parcel 3
Developer: First Southwest Diversified Partners, or any
successor in interest
This Agreement°is made and entered into this day of
, 1988 among the CITY OF SAN RAFAEL, a municipal
corporation (hereinafter "the City"), the ECUMENICAL ASSOCIATION
FOR HOUSING, a California nonprofit corporation ("EAH"), FIRST
SOUTHWEST DIVERSIFIED PARTNERS, A CALIFORNIA LIMITED PARTNERSHIP
("the Developer"), and the HOUSING AUTHORITY OF THE COUNTY OF
MARIN, a public agency ("the Housing Authority").
A. The Developer owns the real property situated within the
'r corporate limits of the City and more particularly described
in Attachment "A" attached hereto ("the Property"). The
Developer has received City approval to construct a
residential development ("the Project") on the Property.
B. The City approved the Project on condition that the
Developer make twenty-two (22) dwelling units located within
the Project ("the Units") affordable to households with
incomes equal to or averaging one hundred percent (100%) of
the current median income of households residing in the San
Francisco Primary Metropolitan Statistical Area ("PMSA") as
determined by the United States Department of Housing and
Urban Development ("HUD"), adjusted for household size in
accordance with HUD standard adjustment factors and revised
and updated annually by HUD ("Median Income").
ME
1
mog
C. EAH is a California nonprofit public benefit corporation
that provides and manages housing for families of low- and
moderate -income, and is by experience qualified to screen
and determine the eligibility of applicants for low- and
moderate -income housing.
D. In order to meet its commitment to provide moderate -income
housing, the Developer proposes to sell four (4) of the
Units to EAH at below-market prices, and to sell eighteen
(18) of the Units through the below -market -rate
homeownership sales program administered through the Housing
Authority ("the BMR Sales Program").
E. EAH shall rent the Units it acquires pursuant to this
Agreement to low- and moderate -income households. EAH
anticipates that, over time, it will be able to rent the
Units at rents that are increasingly more affordable, and
hence will be able serve increasingly more needy households.
F. The Housing Authority wishes to assist in implementing the
moderate -income housing program for the Project through its
BMR Sales Program. Eighteen (18) of the Units will be sold
through the BMR Sales Program, and the BMR Sales Program
will also serve a back-up in the event EAH is unable to
obtain financing with which to purchase its four Units.
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
to moderate -income households.
NOW, THEREFORE, it is hereby agreed by and between the parties
hereto as follows:
1. .-The Units are those dwelling units located within the
Project identified in Attachment "B" attached hereto. The
Units will also be legally described in an attachment to be
recorded with the final map for the Project. The Developer
agrees that the Units shall be sold in accordance with the
terms and pursuant to the procedures set forth in this
Agreement.
2. The Developer shall sell those Units identified in
Attachment "B" as "Units to be Sold to EAH" to EAH at prices
such as to make said Units affordable and available to
households with incomes at seventy-five percent (75%) of
Median Income. The Developer shall sell those Units
identified in Attachment "B" as "Units to be Sold Through
the BMR Sales Program" through the BMR Sales Program at
prices such as to make said Units affordable and available
to households with incomes at one hundred five and fifty-
six/one hundredths percent (105.56%) of Median Income.
D-9 2
With respect to each individual Unit, the sales price to be
paid pursuant to this Agreement shall be computed thirty
(30) days after the date of the 150 -day notice referred to
in Section 3 of this Agreement ("the 150 -Day Notice"). In
computing sales prices under this Agreement, the following
assumptions shall be made:
"Affordable"
Household size for
3 -bedroom unit
Household size for
2 -bedroom unit
Loan -to -value ratio
Mortgage term/type
Mortgage rate
r
Mortgage payments
(principal plus interest)
do not exceed 25% of
income
4 -person
3 -person
90%
30 -year fixed rate
Lowest prevailing
available for 30 -year
fixed-rate mortgages 30
days following the date
of the 150 -Day Notice
In the event of any dispute between the Developer and either
EAH or the Housing Authority regarding the computation of
any affordable sales price under this Agreement, the dispute
shall be referred to the City, and the decision of the City
shall be binding on the Developer and either EAH or the
-,-Housing Authority.
3. One hundred fifty (150) days prior to the date that the
Developer anticipates issuance by the City of a certificate
of occupancy for any particular Unit, the Developer shall
give written notice to EAH, the Housing Authority, and the
City of the anticipated date of such issuance.
4. In the event EAH is unable to obtain financing with which
to purchase any "Unit to be Sold to EAH" within thirty (30)
days after the date of the Developer's 150 -Day Notice, EAH
shall (a) notify the City, the Developer, and the Housing
Authority in writing of its inability, and (b) assign its
rights under this Agreement with respect to the Unit in
question to the Housing Authority.
5. In the event any Unit remains unsold one hundred sixty (160)
days following the Developer's 150 -day Notice, or ten (10)
D-9 3
days following the actual date of issuance of a certificate
of occupancy for the Unit in question, whichever is later,
the Developer shall notify the Housing Authority in writing
of such fact. The Housing Authority shall then have ten
(10) days from service of the Developer's notice within
which to close escrow for the purchase of the Unit. In the
event the Housing Authority fails to close escrow within ten
(10) days, the rights of the Housing Authority under this
Agreement with respect to the Unit shall terminate.
In the event that the rights of the Housing Authority with
respect to a Unit terminate pursuant to this Section 5, the
Developer may sell the Unit on the open market without
restriction as to price. In such event, the Developer shall
pay to the City a BMR in lieu fee computed in accordance
with the City's BMR in lieu fee schedule then in effect.
Said BMR in lieu fee shall be paid to the City upon close of
escrow for the sale of the Unit. Any BMR in lieu fee paid
to the City pursuant to this Agreement 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.
In no event shall either the Housing Authority or EAH incur
any liability to either the Developer or the City for
failure tp close escrow for the purchase of any Unit or
Units.
6. EAH shall maintain all the Units it acquires pursuant to
this Agreement as rental units. EAH shall rent such Units
to households at or below one hundred percent (100%) of
Median Income at rents that do not exceed the rent
affordable to a household at one hundred percent (100%) of
Median Income. In computing such affordable rent, the
:following assumptions shall be made:
"Affordable" Rent does not exceed
30% of income
Household size for 4 -person
3 -bedroom unit
Household size for 3 -person
2 -bedroom unit
In the event, however, that direct costs (as defined in
Attachment "C" attached hereto) incurred by EAH in
connection with EAH's ownership and operation of Units
exceed the rents required under this Section 6, then EAH
shall be allowed to charge rents sufficient to cover its
direct costs.
D-9 4
7. EAH shall not sell any of the Units it acquires pursuant to
this Agreement without the prior written consent of the
City.
8. In the event any notice of default is recorded with respect
to any Unit acquired by EAH pursuant to this Agreement, the
City may, by written notice to EAH, require EAH to transfer
ownership of the Unit, without any additional consideration,
to a transferee designated by the City in its written
notice. Nothing in this Agreement shall be deemed as
requiring compliance with Sections 6 or 7 above by any
purchaser of any Unit at any foreclosure sale.
9. The Housing Authority shall sell, restrict, and resell the
Units sold through the BMR Sales Program in accordance with
the procedures set forth in Attachment "D" attached hereto,
subject to Section 10 of this Agreement.
10. At the time of resale of any of Unit sold through the BMR
Sales Program, .the Housing Authority shall notify EAH, and
EAH shall have thirty (30) days within which to obtain a
written loan commitment for purchase of the Unit. If EAH
succeeds in obtaining such a written loan commitment, the
Housing Authority shall assign its option to purchase the
Unit to EAH. If EAH is unable to obtain such a written loan
commitment, the Housing Authority shall proceed to resell
the Unit through its regular BMR resale procedures.
11. In the event the Developer sells any Unit in violation of
this Agreement, the Developer shall pay to the City, as
liquidated damages, an amount equal to two times the
difference between the amount the Developer actually
receives for the Unit sold in violation of this Agreement
and the amount the Developer would have received pursuant to
•Section 2 of this Agreement. 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 programs under its
general plan from violation of this Agreement by the
Developer, and (b) the anticipation that proof of actual
damages would be costly and inconvenient.
12. This Agreement shall be binding on the Developer's
successors and assigns with respect to the Project and the
Property. The Developer shall show any prospective
purchaser of the Property a copy of this Agreement.
13. All notices required or permitted under this Agreement shall
sent by certified United States mail, or an overnight
courier service requiring a signed receipt, addressed as
follows:
D-9 5
To the City: City of San Rafael
Attention: Planning Director
P. 0. Box 60
San Rafael, CA 94913
To EAH: Ecumenical Association for Housing
Attention: Executive Director
P. 0. Box 1410
San Rafael, CA 94915
To the Developer: Southwest Diversified
Attention: Vice President
Planning & Processing
180 Sutter Street, 5th Floor
San Francisco, CA 94104
To the Housing Housing Authority of the County
Authority: of Marin
Attention: Executive Director
P. 0. Box 4282
San Rafael, CA 94913
Notice shall be deemed served for purposes of this 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.
14. This Agreement shall terminate and be of no further force or
effect if the Developer elects not to build the Project, and
all permits and entitlements granted by the City with
respect to the Project expire.
15. This Agreement may be amended only by a written instrument
signed by all four of the parties hereto, except that (a)
Sections 6, 7, and 8 and Attachment "C" may be amended by a
written instrument signed by the City and EAH, (b) Section 9
and Attachment "D" may be amended by a written instrument
signed by the City and the Housing Authority, and (c)
Section 10 may be amended by a written instrument signed by
the City, EAH, and the Housing Authority.
16. Upon written request to EAH by the Developer or the owner of
any unit located within the Project, EAH shall take such
reasonable action as is necessary to enforce compliance with
the CC&R`s for the Project on the part of its tenants.
D-9 6
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement the day and year first written above.
CITY OF SAN RAFAEL by
Name:
Title.
"City"
FIRST SOUTHWEST DIVERSIFIED
PARTNERS, A CALIFORNIA
LIMITED PARTNERSHIP, by
SOUTHWEST DIVERSIFIED, INC.,
its managing general partner,
by \\
ame: Richard E. qar1ingh�s.e'
Title: Senior Vice President
"Developer"
STATE OF CALIFORNIA )
COUNTY OF MARIN ) SS.
ECUMENICAL ASSOCIATION FOR
HOUSING by
. �'��ul• "/ i��� LLC-��'
Name:,�X7`
Title: i.xt-:C'L411V-V=
I` EAH"
HOUSING AUTHORITY OF THE
COUNTY OF MARIN by
Name:
Title.
"Housing Authority"
On - I - , 19 .-` 1 , before me, the undersigned, a
notary public in and for the State of California, personally
appeared 1 1 , ,, personally known to me or proved to
me on the basis of satisfactory evidence to be the person who
executed the within instrument as , , ' I 1 - I'?, ° I. 1. P, f of
Southwest Diversified, Inc., and acknowledged to me that such
corporation executed it.
WITNESS my hand and official seal.
1:<,-mac.�c+c�•ac�c�..cc:,,-•ra�:r;+oac: F
OFFIC.IAL'SEAL
CNIERON L CLIFFORD
�:A�]TAPY pL�-"�IC-CAUFOR^11nCITY 1
s.�.:' tY OF
1,/VN FRANCISCO
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D-9 7
ATTACHMENTS
A Property Description
B Identification of "the Units," showing
which are "Units to Be Sold to EAH" and
which are "Units to be Sold Through the
BMR Sales Program"
C Definition of Direct Costs
D BMR Sales Program Procedures
D-9 8
ATTACHMENT "A"
PROPERTY DESCRIPTION
All the real property situated in the City of San Rafael, County
of Marin, State of California, described as follows:
[To be based on yet -to -be -filed Subdivision Map]
m •
ATTACHMENT "B"
IDENTIFICATION OF "THE UNITS," SHOWING WHICH ARE "UNITS
TO BE SOLD TO EAH" AND WHICH ARE "UNITS TO BE SOLD
THROUGH THE BMR SALES PROGRAM"
UNITS TO BE SOLD TO EAH:
Phase I, Building No. 9, Unit Type D
Phase I, Building No. 9, Unit Type DR
Phase I, Building No. 10, Unit Type C
Phase I, Building No. 10, Unit Type CR
UNITS TO BE SOLD THROUGH THE BMR SALES PROGRAM:
Phase I, Building No. 13, Unit Type C
Phase I, Building No. 13, Unit Type CR
Phase I, Building No. 13, Unit Type DR
Phase II, Building No. 7, Unit Type C
Phase II, "Building No. 7, Unit Type CR
Phase II, Building No. 7, Unit Type D
Phase II, Building No. 8, Unit Type C
Phase II, Building No. 8, Unit Type CR
Phase II, Building No. 8, Unit Type DR
Phase III, Building No. 1, Unit Type CR
Phase III, Building No. 1, Unit Type DR
Phase III, Building No. 3, Unit Type D
_;_Phase III, Building No. 3, Unit Type DR
Phase III, Building No. 4, Unit Type D
Phase III, Building No. 5, Unit Type C
Phase III, Building No. 5, Unit Type CR
Phase III, Building No. 5, Unit Type D
Phase III, Building No. 5, Unit Type DR
•
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ATTACHMENT "C"
DEFINITION OF DIRECT COSTS
Direct costs consist of:
Mortgage payments (principal plus interest)
Property Taxes
Special Assessments
Homeowners Association Dues
Insurance
Operating and Maintenance Costs
Replacement Reserve
Rents charged by EAH shall not exceed these Direct Costs until
rent for each unit is affordable to families at 805 of Median
Income.
Examples of projected rents for the first 10 years for 2 and 3
bedroom apartments are attached. All costs shown are based on
estimates. Median Income is assumed to increase at an average of
5% per annum.
D-9 Attachment C - Page One
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ATTACHMENT °D"
AGREEMENT PERTAINING TO BMR SALES PROGRAM PROCEDURES
Project Name: MARIN LAGOON
Location: Civic Center North, Parcel 3, San Rafael
Developer: First Southwest Diversified Partners, or any successor in
interest
This Agreement is made and entered into this day of , 19 ,
among the CITY OF SAN RAFAEL, a municipal corporation (hereinafter referred
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 FIRST SOUTHWEST DIVERSIFIED PARTNERS, 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 condi-
tion that the Developer provide therein twenty-two (22) dwelling units to
be sold at prices which are within the means of 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
low-inccxne and moderate -incase households.
NOW THEREFORE, it is hereby agreed by and between the parties hereto as
follows:
1. The Developer agrees that eighteen (18) dwelling units within the project
approved by the City for the property described 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." In addi-
tion, the Developer agrees that four (4) dwelling units within the project
will be sold to Ecumenical Association for Housing ("EAH") to be owned and
operated by EAH as moderate -income rental units in accordance with the
terms and pursuant to the procedures set forth in a separate Agreement.
CITY OF SAN RAFAEL Page 1 of 9
INCLUSIONARY HOUSING TRI -PARTY AGREEMENT 0296E/890105
2. The Developer agrees that the selling price for the Units shall not exceed
the prices set forth in Exhibit "B" attached hereto.
3. The Developer agrees to offer the Units for sale only to individuals or
households who have been certified as eligible by Marin Housing Authority.
4. The Developer further agrees to to give written notice to Marin Housing
Authority at least one hundred and fifty (150) days prior to estimated
issuance of Certificate of Occupancy.
S. 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 (PMSG) --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 pay-
ment shall be included in the buyer's closing costs through escrow.
6. In the event that any Unit remains unsold at the end of ten (10) 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 house-
holds of moderate income. As used herein, the term "sold" shall mean the
close of escrow for the Unit.
In the event that Marin Housing Authority or its assignee declines to
purchase such Unit, it may be sold by the Developer on the open market
without restriction as to price. In such event, the Developer shall pay
to the City from the sale price of such Unit an amount equal to the City's
Below Market Rate Housing "In -Lieu" Fee in effect at the time of sale.
Said sum shall be paid to the City upon close of escrow on the sale of
such Unit. 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.
MARIN LAGOON/First Southwest Diversified Partners Page 2 of 9
City of San Rafael/Housing Authority of the County of Marin 0296E/890105
7. Each deed or contract conveying a Unit to an applicant certified by Marin
Housing Authority shall contain a restriction constituting a right of
first refusal , pursuant to which the buyer agrees that prior to selling
the property, it will first be offered for sale to Marin Housing Authority
or its assignee, in writing. Said deed restriction shall be in the form
of an attachment to the Grant Deed provided by Marin Housing Authority as
set forth in Exhibit "E", incorporated, which shall be incorporated by
reference and recorded with the Grant Deed.
8. In the event that the development project is not constructed or in the
event that the master plan for the project is amended or revised such that
the Units specified in Paragraph 1 are no longer required thereby, this
Agreement shall thereupon become void, unless one or more of the Units
have previously been sold in accordance with the provisions of this
Agreement, in which event the provisions of this Agreement will continue
in force with respect to the Unit or Units so sold.
9. All notices required to be given under the terms of this Agreement shall
be sent by first class U.S. mail, certified/return receipt requested, or
by express courier service, addressed as follows:
To the City: City of San Rafael
P. 0. Box 60
San Rafael, CA 94915
Attention: Planning Director
To Marin Housing Authority: Housing Authority of the County of Marin
P. 0. Box 4282
San Rafael, CA 94913
Attention: Janet Miller Schoder,
Executive Director
To the Developer: First Southwest Diversified Partners
180 Sutter St., 5th Floor
San Francisco, CA 94104
Attention: Vice President,
Planning & Processing
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 hereby agrees to defend, 'exonerate, hold harmless and indemnify
Marin Housing Authority and the Developer, and all agents, officers and
employees of Marin Housing Authority and the Developer from and against
any and all charges, of every kind and nature, that at any time may be
established or asserted as a consequence, direct or indirect, of its
participation in the Program.
MARIN LAGOON/First Southwest Diversified Partners Page 3 of 9
City of San Rafael/Housing Authority of the County of Marin 0296E/890105
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day
and year first above written.
ME
ATTEST:
By:
CITY OF SAI RAFAEL
go
HOUSING AUTHORITY OF THE
COUNTY OF MARIN
ATTEST:
By:
Cl erk
Secretary
DEVELOPER: FIRS SOUTHWEST DIVERSIFIED PARTNERS
Senior Vice President
SOUTHWEST DIVERSIFIED, INC.
Managing Partner
Attachments: EXHIBIT "A" --Legal Description of Property
EXHIBIT "B" --Schedule of BMR Units and Sales Prices
EXHIBIT "C" --Eligibility Requirements and Priorities
EXHIBIT "D" --County of Marin Median Family Income Schedule
EXHIBIT "E" --Attachment to Grant Deed --Grant of Pre-Emptive Right
("Option") to Purchase to the Housing Authority
MARIN LAGOON/First Southwest Diversified Partners Page 4 of 9
City of San Rafael/Housing Authority of the County of Marin 0296E/890105
I
STATE OF CALIFORNIA
COUN1-`i OF
On before me, the undersigned, a Notary Public in and for
j — - _
stud State, personally eppeared—
_(Zt - -b C'_
_-- -
pL,I sonalfy known to me (or proved to me on the basis of salis-
f.iclory avldence) to ba the person(s) whose nanae(s) is/arc sub-
scribed to the within instrument and acknowledged to me that
he/she/they executed the same.
WITNESS nay hand and official seal.
( (;i,l'1"(Lilt:
Signature
IY
UI"FICIAL 51 AL t�
i •'--I'- CAMERON L CLIFFORD t
_ NOTARY PUBLIC-CALIFORNIAX
CIT1' & COUNTY OF
u Still FRANCISCO �a
}AMY COI'r•I. EXP. JULY 13 1990 4'
(This area for official notarial seal)
EXHIBIT W
Project Name: MARIN LAGOON
Location: Civic Center North, Parcel 3, San Rafael
Developer: First Southwest Diversified Partners, or any successor in
interest
DESCRIPTION:
All that certain Real Property situated in the City of San Rafael, County of
Marin, State of California, described as follows:
KARIN LAGOON/First Southwest Diversified Partners Page 5 of 9
City of San Rafael/Housing Authority of the County of Marin 0296E/890105
EXHIBIT OB`
Project Name: MARIN LAGOON
Location: Civic Center North, Parcel 3, San Rafael
Developer: First Southwest Diversified Partners, or any successor in
interest
Total BMR Units: 18 BMR Homeownership Units out of 224 Total Units
SCHEDULE OF Birt UNITS AND SALES PRICES
Phase Type
Size
and incomes
Location
price for
Income
Sales Price"•`
I 2BR/2BA
1033sf
Unit
"DR"/Building
#13
Income Group
Moderate
$102,176`
3BR/2BA
1145sf
Unit
"C"
/Building #13
3BR/2BA
Moderate
$113,529"
3BR/2BA
1145sf
Unit
"CR"/Building
#13
Moderate
$113,529
II 2BR/2BA
1033sf
Unit
"D"
/ Building
#7
Moderate
$102,176'`
2BR/2BA
1033sf
Unit
"DR"/
Building
#8
Moderate
$102,176"
3BR/2BA
1145sf
Unit
"C"
/ Building
#7
Moderate
$113,529;`
3BR/2BA
1,145sf
Unit
"CR"/
Building
#7
Moderate
$113,529"
3BR/2BA
1145sf
Unit
"C"
/ Building
#8
Moderate
$113,529'
3BR/2BA
1145sf
Unit
"CR"/
Building
#8
Moderate
$113,529"
III 2BR/2BA
1033sf
Unit
"DR"/
Building
#1
Moderate
$102,176'`
2BR/2BA
1033sf
Unit
"D"
/ Building
#3
Moderate
$102,176'`
2BR/2BA
1033sf
Unit
"DR"/
Building
#3
Moderate
$102,176''
2BR/2BA
1033sf
Unit
"D"
/ Building
#4
Moderate
$102,176'`
2BR/2BA
1033sf
Unit
"D"
/ Building
#5
Moderate
$102,176"
2BR/2BA
1033sf
Unit
"DR"/
Building
#5
Moderate
$102,176"'
3BR/2BA
1145sf
Unit
"CR"/
Building
#1
Moderate
$113,529'`
3BR/2BA
1145sf
Unit
"C"
/ Building
#5
Moderate
$113,529"
3BR/2BA
1145sf
Unit
"CR"/
Building
#5
Moderate
$113,529'`
Following
are the family sizes
and incomes
used to establish the sales
price for
each unit:
Unit Type
Household Size
Income Group
Percentage of Median
Income'`
2BR/2BA
Three Persons
Moderate
105.56% of Median
$401,377'`
3BR/2BA
Four Persons
Moderate
105.56% of Median
$44,863'`
--Continued on Next Page--
MARIN LAGOON/First Southwest Diversified Partners Page 6 of 9
City of San Rafael/Housing Authority of the County of Marin 0296E/890105
EXHIBIT °B°
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:
Percentage of Gross Monthly Income for
Mortgage Payment (Principal and Interest)
10.5%* / 30 -year, fixed-rate
90%
25%
* Recalculation of the above sales prices shall be permitted thirty (30)
days after receipt by Marin Housing Authority of the Developer's written
notice one hundred fifty (150) days prior to the anticipated issuance of
Certificates of Occupancy 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. Thirty (30)
days after receipt of the Developer's 150 -day Notice, the sales price
shall be recalculated by Marin Housing Authority using the most affordable
prevailing 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.
MARIN LAGOON/First Southwest Diversified Partners Page 7 of 9
City of San Rafael/Housing Authority of the County of Marin 0296E/890105
EXHIBIT "Cm
Project Name: }SARIN LAGOON
Location: Civic Center North, Parcel 3, San Rafael
Developer: First Southwest Diversified Partners, 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
median income for the San Francisco PMSA as determined by the U.S.
Department of Housing and Urban Development (HUD) 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 owned a principal residence within the last three years.
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 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 persons who live or
work permanently, full-time within the City limits of San Rafael.
3. Third priority in the drawing shall be given to all other applicants.
MARIN LAGOON/First Southwest Diversified Partners Page 8 of 9
City of San Rafael/Housing Authority of the County of Marin 0296E/890105
EXHIBIT "D"
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MARIN
LAGOON/First
Southwest
Diversified
Partners
City
of San Rafael/Housing
Authority
of the County
of
Marin
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Page 9 of 9
0296E/890105
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EXHIBIT °E"
ATTACHMENT TO GRANT DEED: GRANT OF PRE-EMPTIVE RIGHT ("OPTION")
TO PURCHASE TO THE HOUSING AUTHORITY OF THE COUNTY OF MARIN
Project Name:
Owner:
Unit No./Address:
MARIN LAGOON
Date:
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 ("MARIN HOUSING AUTHORITY").
IN GRAI4TING THE OPTION TO THE MARIN HOUSING 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 Marin Housing 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 AND FOR ALL OTHERS DEFINED AS "OWNER" IN PARAGRAPH 1 HEREBY GRANTS TO MARIN
HOUSING AUTHORITY THIS OPTION ON THE FOLLOWING TERMS AND CONDITIONS:
VLARIN LAGOON/Attachment to Grant Deed: Grant of Page 1 of 7
Pre-emptive Right ("Option") to Purchase to Housing Authority 0298E/890105
1. Exercise and Administration of the Option
The Option to purchase the Premises is vested in Marin Housing Authority. Marin
Housing Authority may exercise the Option itself or assign it to a moderate -
income purchaser who meets the eligibility qualifications established by Marin
Housing Authority under the Program. Assignment of the Option or the right to
purchase the Premises, however, shall not extend any time limits contained here-
in 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 admin-
istrator- of an eligible moderate -income purchaser, including a purchaser who has
acquired the Premises by deed in lieu of foreclosure, 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 Marin Housing 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 sel 1 , convey, transfer or otherwise
dispose of the Premises or of any estate or interest therein, Owner shall
notify Marin Housing 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. Dox 4282, San Rafael, CA 94913, Attention: Janet Miller
Schoder. Marin Housing 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
th�'address of the Premises at any time within one hundred twenty (120) days
from the actual receipt by Marin Housing Authority of the Notice to Sell.
b. Sale or Transfer Without Notice to Sell.
If the Owner fails to provide Marin Housing Authority with a properly
delivered Notice to Sell pursuant to paragraph 2a, and Marin Housing
Authority learns of a pending or consummated sale, conveyance, transfer,
lease or other disposition of the Premises, or of any estate or interest
therein, Marin Housing Authority, or its assignee, shall at any time there-
after 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 one hundred twenty (120) days as would other-
wise 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.
MARIN LAGOON/Attachment to Grant Deed: Grant of Page 2 of 7
Pre-emptive Right ("Option") to Purchase to Housing Authority 0298E/890105
3. Escrow
In the event Marin Housing 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 Marin Housing Authority, or its assignee.
The escrow shall be opened upon delivery to the Owner of the Notice of Accept-
ance, 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 agree-
ment between the Owner and Marin Housing 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 Marin Housing 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 Marin Housing 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 Marin Housing 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 Marin Housing
Authority and the City. For that purpose, the Index prevailing on the date
of purchase by the selling Owner shall be compared with the latest Index
available on the date of receipt by Marin Housing 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 multi-
plied by four percent (4.0%) per annum, simple interest.
MARIN LAGOON/Attachment to Grant Deed: Grant of Page 3 of 7
Pre-emptive Right ("Option") to Purchase to Housing Authority 0298E/890105
5. Adjustments to Re -Sale Price
The re -sale price as determined pursuant to paragraph 4 shall be adjusted by:
a. Increasing it
made to the
Premises, if
Marin Housing
by the original
Premises by the
said improvements
Authority.
documented value of any capital improvements
Owner since the Owner's acquisition of the
were made with the prior written approval of
Decreasing it by any amount necessary to repair damages, if any, and to put
the Premises into saleable condition as reasonably determined by Marin
Housing Authority, including amounts attributed to cleaning, painting,
cleaning or replacing worn carpeting and draperies, making necessary struct-
ural, mechanical, electrical and plumbing repairs and repairing or replacing
built-in appliances.
Priority and Effectiveness of the Option
This Grant of Option shall be filed for record in the Office of the Recorder
of the County of Marin concurrently with any sale, conveyance, transfer or
other disposition of the Premises, or of any estate or interest therein, 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 Marin Housing 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. Marin Housing 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, conveyance, transfer or other disposition of the Premises, or of any
estate or interest therein, by the Owner.
Default and Sale Under Deed of Trust or Mortgage
Marin Housing 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, Marin Housing Authority or its assignee shall give
notice not only to the owner, but also to the mortgagee or beneficiary under the
deed of trust. Marin Housing 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 Marin Housing Authority or its
assignee does not exercise its option to purchase the Premises within ninety
(90) days after it receives such actual notice, Marin Housing 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
MARIN LAGOON/Attachment to Grant Deed: Grant of Page 4 o -I 7
Pre-emptive Right ("Option") to Purchase to Housing Authority 0298E/890105
declaring that the pi isions of this Grant of Optic, are no longer applicable
to the Premises. Marin Housing 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 recorded within fifteen (15) days
of the decision of Marin Housing Authority or its assignee not to exercise its
option, but in no event later than ninety (90) days after Marin Housing
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 Marin Housing Authority does
not receive a notice of sale in foreclosure, Marin Housing 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 conditions of this
Option. Subject to any stay enjoining Marin Housing Authority, or its assignee,
from exercising the Option, Marin Housing Authority, or its assignee, shall have
the right to exercise the Option within ninety (90) days of the date on which
Marin Housing Authority receives notice or acquires knowledge of any sale,
conveyance, 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 permitted
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
Marin Housing 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, Marin Housing 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.
Marin Housing 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.
MARIN LAGOON/Attachment to Grant Deed: Grant of Page 5 of 7
Pre-emptive Right ("Option") to Purchase to Housing Authority 0298E/890105
11. Permitted Encumbrance;
This Option shall not become exercisable as the result of the Owner's encumber-
ing the Premises for the purpose of securing financing to purchase the Premises
or to refinance indebtedness otherwise incurred to purchase the Premises.
12. Abandonment of Option
In the event Marin Housing Authority, or its assignee, abandons or fails to
exercise the Option within a specific time period required by the terms and
conditions hereof, the Option shall terminate and Marin Housing 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 applicable
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 Marin Housing Authority's
decision not to exercise the Option, but no later than one hundred twenty (120)
days after Marin Housing Authority receives a Notice to Sell. In the event
Marin Housing 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 Marin Housing Authority for failure to promptly record such notice.
13. Limits on Liability
1'
In no event shall Marin Housing
Authority become
liable or obligated in any
manner to the Owner by reason of
the assignment of
the Option,
nor shall Marin
Housing Authority be in any way liable or obligated
to the Owner
for any failure
of Marin Housing 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 Marin Housing 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 Marin Housing 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 Marin Housing Authority.
KARIN LAGOON/Attachment to Grant Deed: Grant of Page 6 of 7
Pre-emptive Right ("Option") to Purchase to Housing Authority 0298E/890105
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.
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 person(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:
FIN
JANET MILLER SCHODER, Executive Director
Housing Authority of the County of Marin
KARIN LAGOON/Attachment to Grant Deed: Grant of Page 7 of 7
Pre-emptive Right ("Option") to Purchase to Housing Authority 0298E/890105