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HomeMy WebLinkAboutCC Resolution 7514 (Peacock Ridge Subdivision)RESOLUTION NO. 7514 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE SIGNING OF THE BELOW -MARKET -RATE AGREEMENT - PEACOCK RIDGE SUBDIVISION THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES as follows: The Mayor and City Clerk are authorized to execute, on behalf of the City of San Rafael, an agreement with The Housing Authority of the County of Marin, and Dividend Development Corporation, relating to the sale of newly constructed residential units to low and moderate income families within the Peacock Ridge Subdivision, a copy of which is attached hereto, and incorporated herein by this reference. I, JEANNE M. LEONCINI, City Clerk of the City of San Rafael, California, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City held on the 6th day of April, 1987, by the following vote, to wit: AYES: COUNCILMEMBERS:Breiner, Frugoli, Nave, Willms & Mayor Mulryan NOES: COUNCILMEMBERS:None ABSENT: COUNCILMEMBERS:None M- JEANNE M. LEONCINI, City Clerk i� I N A L A V K t t M t Y I Project game: PEACOCK RIDGE Location: Pt. San Pedro Road and San Marino Drive, Peacock Gap S_ Developer: DIVIDEND DEVELOPMENT CORPORATION, or any successor in interest a, c 1 0 U rn W This Agreement is made and entered into this 6th day of April among a 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 .4- politic, created under the Housing Authority Law of the State of California C) (hereinafter referred to as "tile Authority"), and DIVIDEND DEVELOPMENT CORPORATION, z or any successor in interest (hereinafter referred to as "tile 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 ko property is more particularly described in Exhibit "A" attached hereto and C) incorporated herein. LO M 3. The City, in accordance with the provisions of the Housing Element of its General Plan, has approved the Developer's proposed development on condition that the Developer provide therein twelve (12) dwelling units to be sold at prices which are within the means of moderate -income families. 0 "- C. The Authority is authorized by law to participate in programs which provide •r n3 housing for families of low and moderate income, and is by experience qualified to screen and determine eligibility of applicants for low and moderate -income housing. r The parties hereto desire, by this Agreement, to cooperate in implementing the efforts b of the Developer to comply with the requirement that the Developer make available said dwelling units at prices which are within the means of moderate -income families. 1(n NOW THEREFORE, it is hereby agreed by and between the parties hereto as follows: 1. Tile Developer agrees that twelve (12) dwelling units within the project approved by the City for the property described in Exhibit "A" attached hereto will be sold to moderate -income families in accordance with the terms and pursuant to the procedures set fortis 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 prices for the Units shall not exceed the prices set forth in Exhibit "B" attached hereto. However, the selling prices may be adjusted in accordance with the provisions of Exhibit "B" and the resulting prices may be higher or lower than those presently stated in Exhibit "B". 3. The Developer agrees to offer the Units for sale only to individuals or families who have been certified as eligible by the Authority. 4. The Developer further agrees to give written notice to the Authority at least one hundred and twenty (120) days prior to estimated issuance of Certificate of Occupancy. CITY OF SAN RAFAEL C0PV age 1 of 7 INCLUSIONARY HOUSING TRI -PARTY AGREEMENT 012OE/87O126 5. The Authority agrees to process applications and certify eligibility of applicants as persons or farr 'es of moderate income. A fami­_,Ior individual shall be deemed to qualify ,.s a moderate -income applicant p,_iided the income of such family or individual 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, Office of Economic Affairs, Economic and Market Analysis Division, with adjustments for smaller or larger =� families (see Exhibit "D" attached hereto). In certifying eligibility of applicants, the Authority shall adhere to the priorities and preferences adopted oy the City and attached hereto as EXHIBIT "C". Preference for individuals or families falling within any of the priorities established in EXHIBIT "C" shall be determined by lottery or other equitable method mutually agreed upon by the City and the Authority. The Authority shall be paid a fee of $SOO per unit to be paid by the buyer, which payment shall be included in the buyer's closing costs upon sale of the Unit. 6. In the event that any Unit remains unsold at -the end of sixty (60) 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 the Authority in writing of such fact. Within ten (10) working days after receipt of such written notice, the Authority or its assignee may notify the Developer in writing that it will purchase such Unit. If such notice is given by the Authority, the Developer shall then sell such Unit to the Authority or its assignee at the same price it would have been available for sale to families 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 the Authority or its assignee declines to purchase such Unit, it may be sold by the Developer on the open market without restriction as to price. In such event, the Developer shall pay to the City from the sale price of such Unit seventy-five percent (75%) of the difference between the market price achieved and the below -market -rate sales price specified in Exhibit "B". Said sum shall be paid to the City upon close of escrow on the sale of such Unit or, if the sale is pursuant to a contract of sale, upon execution of such contract, whichever shall first occur. The City shall pay to the Authority ten percent (10%) of this sum for the Authority's -use in administering Below Market Rate projects including, but not limited to, on-going BMR monitoring and future BMR re -sales. The balance of any such payments made to the City shall be retained by the City in a special account to be used solely for activities which it deems will facilitate the provision of housing for persons of low or moderate income. 7. Each deed or contract conveying a Unit to an applicant certified by the 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 the Authority or its assignee, in writing. Said deed restriction snall contain the specific requirement that the unit be continuously owner -occupied, and shall specify the formula for calculating the allowable resale price. Said deed restriction shall be in the form of an attachment to the Grant Deed provided by the Authority which shall be incorporated by reference and recorded with the Grant Deed. 3. 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. PEACOCK RIDGEN IVIDEND DEVELOPMENT CORP. Page 2 of 7 CITY OF SAID RAFAELM OUSING AUTHORITY OF THE COUNTY OF MARIN 0120E/870120' by First Class ;flail and deposited postage prepaid in the United States tail Service in Marin ►nty, California, addressed aF 11ows: �fl To the City: City of San Rafael P. 0. Box 60 San Rafael, California 94913 Attention: Anne Moore, Planning Director .0 a, To the Authority: Housing Authority of 'the County of idarin o P. 0. Box 4282 San Rafael, CA 94913 Attention: Janet Miller Schoder, Executive Director To the Developer: Dividend Development Corporation 3600 Prune Ridge Avenue - Suite 340 Santa Clara, California 95051 Attention: Jeffrey E. McClung 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 parties agree that, upon demand, they will subordinate this agreement to a purchase money loan secured by a first deed of trust from a recognized institutional lender to the extent this agreement may affect the rights of said lender under the deed of trust and its ability to sell said mortgage to either i e Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. 11. The Authority and the City shall indemnify the Dural oper and each of its employees, officers, directors and affiliates and hold them harmless from any and all liabilities, claims, demands, losses, damages, costs and expenses (including, without limitation, attorney' s fees) arising from or relating to the validity, enforceability or constitutionality of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CITY OF SAN RAFAEL By: Mayo r ATTEST: Clerk ' HOUSING AMORITY OFT HE COU of Al ATTEST By 7 Secretary Approved as to toff DIVI?END DEVELOPMENT CORPOR ION Jefffo E/McClung; Vice Presient Attachments: EXHIBIT "A": Legal Description of Propert, EXHIBIT "B": Schedule of BMR Units and Sales Prices EXHIBIT "C": Priorities and Preferences for Eligibility EXHIBIT "D": County of Marin Median Income Schedule PEACOCK RIDE/DIVIDEND DEVELOPMENT CORP. Page 3 of 7 CITY OF SAN jtAFAEL/HOUSING AUTHORITY OF THE COUNTY OF MARIN 0120E/870126 8 STATE OF CALIFORNIA COUNTY OF MARIN On this 16th day of July , 1987, before me M. L. Scott , a Notary Public in and for the said County and State, residing therein, duly commissioned and sworn, personally appeared HAROLD C. BROWN, JR. , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instru- ment as Chairman, Board of Commissioners of the Housing Authority of the County of Marin , and acknowledged to me that the Housing Authority of the County of Marin executed it. Witness my hand and official seal. Notary Public, State of California STATE OF CALIFORNIA ) ss. COUNTY OF MARIN ) �..,_...... w .. aesarr� OFFICIAL SIViL M. L. SCOTT f NOTARY PUBLIC -CALIFORNIA I Principal Office in MARIN County MY Commission Expires Nov 16. fM t On this 6TH day of JULY , 1987, before me, JEANNE M. LEONCINI, a Notary Public in and for the said County an -d State, residing therein, duly commissioned and sworn, personally appeared LAWRENCE E. MULRYAN , personally known to me -(o=�r4ued-ta-ma-aa-the -ba s4s- of- sa.i _sfzztary eiJdea7 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.—��-�--�- /y,/, M.—�EONCI A NOTARY PUBLIC in and for {�z- . =1' ..• s` `yam- "y said County and State. •' ' State of -A L 1 F OR M '`3. SS. County of SHEILA KOUMELIS NOTARY PUBLIC -CALIFORNIA SANTA CLARA COUNTY My Ccmmwoa Expires April 16. 1990 On this the 2a_- aay of 1917 before me, 0U^4EA- ,s the undersigned Notary Public, personally appeared fcFFREY E- 1'4C C4,V/'j6 personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) who executed the within instrument as V I0- Pig -S • or as 41 of the corporation therein named, and acknowledged to me that the corporation executed it. WITNESS my hand and official seal. Notary's Signature tAnibi 1 H Project Name: PEACOCK RIDGE Location: Pt. San Pedro Road and San Marino Drive, Peacock Gap #. 0 Developer: DIVIDEND DEVELOPMENT CORPORATION, or any successor in interest All that certain Real Property situated in the City of San Rafael, County of Marin, State or California, descrioed as follows: 3EGI;4NING AT THE MOST NORTHEASTERLY CORNER OF THAT CERTAIN PARCEL OF LAUD CONVEYED TO THE ROMAN CATHOLI; AIRCHBISHOP OF SAN FRANCISCO BY LATIPAC, INCORPORATED, RECORDED MARCH 28, 1957 IN BOO;; 110.3 OF OFFICIAL RECORDS AT PAGE 267: RUI4I4ING THENCE FROM SAID POINT OF BE3TW KING, ALON4 THE SOJTHERLY BOU14DARY OF MARIN BAY SUBDIVISION, AS SH0414 UPON THAT CERTAIN MAP ENTITLED "MAP OF MARIN BAY UNIT ONE". RECORDED SEPTEMBER 22, 1960 IN BOOK 10 OF MAP,; AT PANE 78 MARIN COUNTY RECORDS, NORTH 78008'13" EAST 173.24 FEET; THENCE NORTH 31030' EAST 50.00 FEET TO THE MOST NORTHWESTERLY CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED 3Y PEACOCK GAP, INCORPORATED, TO THE MARIN MUNICIPAL WATER DISTRICT, RECORDED MAY 20, 1964 I;d BOOK 1816 OF OFFICIAL RECORDS OF MARIN COUNTY, AT PAGE 10; THENCE ALONS THE WESTERLY LINE OF SAID PARCEL, SOUTH 9000'00" EAST 36.00 FEET TO THE MOST SOUTHWESTERLY CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED BY LATIPAC, INCORPORATED, TJ THE MRIN MUNICIPAL WATER DISTRICT, RECORDED OCTOBER 26, 1966 IN BOOK 2088 OF OFFICIAL RECORDS OF MARIN COUNTY, AT PAGE 273; THENCE ALONG THE SOUTHERLY LINE OF LAST SAID PARCEL NORTH 81000'00" EAST 30.00 FEET: THENCE NORTH 9000'00" WEST 31.56 FEET TO THE MOST SOUTHWESTERLY CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED BY LATIPAC, INCORPORATED, TO HARRY HELBIG, ET UX, RECORDED OCTOBER 23, 1966 IN BOOK 2088 OF OFFICIAL RECORDS OF MARIN COUNTY, AT PAGE 587; THENCE ALONG THE SOUTHERLY LIFE OF LAST SAID PARCEL NORTH 70003'34" EAST TO THE SOUTHERLY LINE OF AFORESAID MARIN BAY SUBDIVISION; THENCE ALONG THE SOUTHERLY LINE OF MARIN BAY SUBDIVISION NORTH 81000'00" EAST 0.78 FEET; THENCE ON A TANGENT CURVE TO THE LEFT, HAVING A RADIUS OF 650.00 FEET, A CENTRAL ANGLE OF 23053'28" AN ARC DISTAI4CE OF 328.71 FEET TO A POINT OF REVERSE CURVATURE, THENCE ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 350.00 FEET, A CENTRAL ANGLE OF 18028'28" Aid ARC DISTAIJCE OF 112.85 FEET TO A POINT OF REVERSE CURVATURE, THENCE ON A CURVE TO THE LEFT, HAVING A RADIUS OF 500.00 FEET, A CENTRAL ANGLE OF 23015'00" ARL' DISTAIJCE OF 246.53 FEET TO A POINT OF REVERSE CURVATURE, THENCE ON A CURVE TO THE RIGHT, HAVING A RADIUS OF 250.00 FEET, A CENTRAL ANGLE OF 37015'00" AN ARC DISTANCE OF 162.53 FEET, THE14CE NORTH 79030'00" EAST 270.00 FEET, THENCE 01.4 A TANGENT CURVE TO THE LEFT, LAVING A RADIUS OF 700.00 FEET A CENTRAL ANGLE OF 37030' A14 ARC DISTANCE OF 453.15 FEET TO A POINT OF COMPOUND CURVATURE, THENCE CONTINUING ON A CURVE TO THE LEFT HAVING A RADIUS OF 1650.00 FEET A CENTRAL ANGLE OF 14000'00" AN ARC DISTAIJCE OF 403.17 FEET TO A POINT OF REVERSE CURVATURE, THENCE 014 A CURVE TO THE RIGHT RAVING A RADIUS OF 500.00 FEET, A CENTRAL ANGLE OF 11030'00" AN ARC DISTANCE OF 120.43 FEET, AND THENCE NORTH 39030'00" EAST 366.76 FEET TO THE MOST SOUTHERLY CORNER OF PCL A, AS SHOWN UPON SAID MAP; THENCE LEAVING SAID SUBDIVISION BOUNDARY ON A CURVE TO THE RIGHT, FROM A TANGENT WHICH BEARS SOUTH 84025'55" EAST, WHOSE RADIUS IS 1940 FEET, THROU3H A CENTRAL ANGLE OF 8020'42", AN ARC DISTANCE OF 282.56 FEET, THENCE ON A REVERSE CURVE WHOSE RADIUS IS 660 FEET, THROUGH A CENTRAL ANGLE OF 22037'12", A►J ARC DISTANCE OF 260.56 FEET; THENCE SOUTH 8042'25" EAST 170.66 FEET; THENCE SOUTH 11021'51" WEST 165.32 FEET; THENCE SOUTH 31035'06" WEST 184.05 FEET, THENCE ON A TANGENT CURVE TO THE RIGHT WHOSE RADIUS IS 440 FEET, THROUGH A CENTRAL AIJGLE OF 25051'53", AN ARC DISTANCE OF 198.63 FEET, THENCE SOUTH 57026'59" WEST 645.82 FEET, THENCE ON A TANGENT CURVE TO THE RIGHT WHOSE RADIUS IS 640 FEET, THROUGH A CENTRAL ANGLE OF 19006', AN ARC DISTANCE OF 213.35 FEET, AND THENCE SOUTH 76032'59" WEST 1117.64 FEET TO THE EASTERLY BOUNDARY OF THE AFORESAID PARCEL TO THE ROMAN CATHOLIC ARCHBISHOP; RUNNING THENCE ALONG THE EASTERLY LINE OF LAST SAID PARCEL NORTH 13027'01" WEST 432.32 FEET TO THE POINT OF BEGINNING. PEACOCK RIDGE/DIVIOENID DEVELOPMENT CORP. Page 4 of 7 CITY OF SAN RAFAEL/HOUSING AUTHORITY OF THE COUNTY OF MARIN 0120E/870126 EXHIBIT "B" Project Name: PEACOCK RIDGE Location: Pt. San Pedro Road and San Marino Drive, Peacock Gap Developer: DIVIDEND DEVELOPMENT CORPORATION, or any successor in interest Total Number of Units in Development: 60 Number of BHR Units: 12 SCHEDULE OF BMR UNITS AND SALES PRICES No. of Units Type of Unit Size Lot No. Sales Price Twelve (12) 3 -Bedroom sf No. 4, 6, 8, 9, $109,500* 11, 1.3, 15, 19, 22, 24, 27 & 28 Following are the family sizes and incomes used to estaolisii the sales price for each unit: Unit Size Household Size Percent of Median Income Household Income 3 BR 4 Persons 100% of median $39,1300* The sales prices have been established based on the above incomes, current industry mortgage rates and debt-to-incoine ratio as follows: Mortgage Rate/Term 9.5%* fixed rate / 30 years Loan -to -Value Ratio 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 the Authority of the Developer's written notice one nundred twenty (120) days prior to the 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 fur the San Francisco P14SA 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 the Authority using the most affordaule available mortgage rate for a 30 -year, fixed-rate mortgage as determined by the Authority and using the most recent median income for the San Francisco P14SA 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. PEACOCK RIDGE/DIVIDEND DEVELOPMENT CORP. Page 5 of 7 CITY OF SAN RAFAEL/HOUSING AUTHORITY OF THE COUNTY OF MARIN 0120E/870223 Project Naine: PEACOCK RIDGE Location: Pt. San Pedro Road and San Marino Drive, Peacock Gap Developer: DIVIDEND DEVELOPMENT CORPORATION, or any successor in interest In certifying eligibility of applicants for the subject project, the Authority shall establish the eligibility of applicants and give priority as follows: Requirements for Eligibility 1. The applicant's total household income must fall within the moderate -income limitations (can not exceed 120% of the current median income for the San Francisco P;4SA). 2. The applicant's total assets may not exceed 75% of the sales price of the unit. 3. The applicant(s) may not currently own or have any legal interest in another residence. 4. The applicant's household must consist of at least three persons in order to qualify for a three-bedroom unit. Priority for Lottery Selection A priority system for the lottery, if any, -wi l l be decided upon among the Developer, the City and the Authority prior to the advertising and conducting of a lottery for purchase of the BMR Units based upon legal counsel resolving certain issues with respect to the legality of certain types of priorities specified in the Tentative flap. PEACOCK RIDGE/DIVIDEND DEVELOPMENT CORP. 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