HomeMy WebLinkAboutResolution No. 6693 (Centertown Below Market Housing)RESOLUTION NO. 6693
A RESOLUTION AUTHORIZING THE SIGNING OF A
CONTRACT, LEASE OR 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 contract, lease or agreement with
the City of San Rafael. Housing Authority of the County of Marin. and
U.F. Service Corporation re Centertown Below Market Rate Housing Program,
(Joint Powers Agreement)
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 intro-
duced and adopted at a regular meeting of the City Council of said
City held on Monday the fifth day of December
19~, by the following vote, to wit:
AYES; COUNCIL1ffiMBERS: Breiner, Frugoli, Nave, Russom & Mayor Mulryan
NOES; COUNCILME~ffiERS; None
ABSENT; COUNCILMEMBERS; None
JE
G
A G R E E MEN T
10-12-83
Centertown
San Rafael
BMR Program
This Agreement is made and entered into this 20th , day of December, 1983
among the CITY OF SAN RAFAEL, a municipal corporation ("City/Town" hereafter), the
HOUSI~G AUTHORITY OF THE COUNTY OF }~I~, a public body, corporate and politic,
created under the Housing Authority Law of the State of California ("Authority"
hereafter), and U.F. SERVICE CORPORATIO~, a California corporation ("Developer"
hereafter), and is based upon the following facts:
a. Pursuant to the provisions of TS 83-7 CITY OF SAN RAFAEL.
b. Developer intends to construct a residential housing development on that
certain real property situated within the corporate limits of City/To\VTI,
which real property is more particularly described in Exhibit "A" attached
hereto and incorporated herein.
c. City/Town has approved Developer's proposed development on condition that
Developer provide therein 10 dwelling units to be sold at prices which
are within the means of moderate income families.
d. Authority is authorized by law to participate in programs \vhich provide
housing for families of moderate income, and is by experience qualified
to screen and determine eligibility of applicants for moderate income housing.
e. The parties hereto desire, by this Agreement, to cooperate in implementing
the efforts of Developer to comply with the requirement that Developer
Eake available said dwelling units at prices which are wit~in the means
or moderate income families.
~;OW, THEREFORE, it is hereby agreed by and between the parties hereto as follows:
1. Developer agrees that 10 dwelling units within the project approved by the
City/Town for the property described in Exhibit "A" hereto will be sold to
~oderate income families in accordance with the terms and pursuant to the
?rocedures set forth in this Agreement. Said dwelling units shall consist
of units which shall be designated in writing by the Developer to the
Authority at least 120 days prior to the issuance of the first occupancy
permit issued with respect to said housing development. The covenants,
conditions, and restrictions recorded with respect to said housing develop-
~ent at the time the final map is recorded shall contain the provisions of
paragraphs 1 through 8 of this Agreement.
2. Developer agrees that the selling price for the units shall be as follows:
5 -1 BR units affordable to single person household at Median income
5 -I BR units affordable to 2 person household at 110% of Median income
Unit
5 -1 BR
5 -I BR
Household Size
Single person
2 Person
*Incomes are per the attached schedule
Income*
$22,100
$27,830
Sale Price
$52,000
$66,000
T~e above prices were derived using the following assumptions based on
current industry mortgage rates and income to housing expense ratios:
o Current mortgage terms
o Loan to value ratio
o Debt to gross income ratio for mortgage payment
30 Year
90%
29%
However, a price adjustment will be made should the parameters be different
at a tim~ 90 days prior to the issuance of a certificate of occupancy. At
t~at time the sales price shall be recalculated by the Authority using the
~~st affordable prevailing financing terms that either the Authority or the
Ow"ner (Developer) can find available. This sales price adjustment shall be
allowed more than one time only if mutually agreed by all the parties to
this Agreement. See paragraph 4 below.
3. Developer agrees to offer the units for sale only to individuals or families
who have been certified as eligible by Authority.
4. Developer further agrees to notify Housing Authority at least 90 days prior
to estimated issuance of Occupancy Permit.
Housing Authority of the Count'· r: Marin
s . . ' .. "
Authority agrees to process applications and cert ~y eligibility of applicants
as persons or farr ~es of moderate income. The A lority shall be reimbursed
for the cost of the processing and certification up to an amount not to exceed
$500.00 per completed transaction, which reimbursement shall be included in the
buyer's closing costs upon sale of the Unit. A family or individual shall be
deemed to qualify as a moderate income applicant provided the income of such
family or individual does not exceed one hundred twenty percent (120%) of the
median income for Marin County as determined by the United States Department
of Housing and Urban Development with adjustments for smaller or larger families~
In certifying eligibility of applicants, Authority shall adhere to the priorities
and preferences adopted by the City/Town and attached hereto as EXHIBIT "B".
Preference for individuals or families falling within any of the priorities
established in EXHIBIT "B" shall be determined by lottery or other equitable
method mutually agreed upon by City/Town and Authority.
6. In the event that any Unit remains unsold at the end of one hundred twenty
(120) days from the date of issuance of an occupancy permit by City/Town for
Developer's entire project, Developer shall notify Authority in writing of
such fact. Within ten (10) working days after receipt of such \vritten
notice, Authority may notify Developer in writing that it will purchase
such Unit. If such notice is given by Authority, Developer shall then sell
such Unit to Authority or City/Town 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 Authority declines to purchase such Unit, it may be sold
by Developer on the open market without restriction as to price.
7. Brochures of Developer shall include reference to the fact that a limited
number of Units within the project will be made available to qualified
buyers of moderate income. All buyers will evidence their individual
knowledge of this program on their purchase agreement.
8. Each deed or contract conveying a Unit to an applicant certified by Authorr'ty
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 Authority or its assignee, in w:iting.
9. All notices required to be given under the terms of this Agreement shall be
sent by First Class ~mil and deposited postage prepaid in the United States
Xail Service in Marin County, California, addressed as follows:
To: City of San Rafael
1400 Fifth Avenue
San Rafael, California 94901
Attention: Jean Freitas, Planning Department
To: Executive Director
Housing Authority of the County of Marin
P. O. Box 4282, San Rafael, California 94913
To: U.F. Service Corp.
130 Montgomery Street
San Francisco, CA 94104
Any party may change the address to which notice shall be mailed to it by
giving notice thereof to the other parties in the manner provided herein.
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 the Federal Home Loan Mortgage Corporation or the Federal National
r~ortgage ,Association.
11. This agreement shall terminate upon recordation of the resale price control
deed restrictions enumerated in this agreement and completion of original sale
of all 10 units within the Centertown project which are designated to be sold
to moderate-income families. Authority shall, on behalf of the City,
perform ongoing monitoring of the deed restrictions and implement re-sale
requirements as specified therein. Authority and City, by execution of the
r~emorandum of Understand i ng (EXHIBIT "C" attache<;l), which is referenced and
incorporated herein, define and establish the procedures applicable to
monitoring, implementation and enforcement of the deed restrictions.
Housing Authority of the County of Marin -2-
'.
\ .
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year
first above written.
CITY/TOtm HOUSING AUTHORITY OF THE COUNTY OF I'lARIN
ATTEST: ATTEST:
"
C
ri ~'#.rv. , -I e" / By: -,~<--<....<.--.. if L '--___ ~
~~~(----------------------------.Secretary
DEVELOPER
By:
I
EXHIBIT A
EXHIBIT B
I EXHIBIT C
Property Description
Priorities and Preferences for Eligibility
Memorandum of Understanding for Monitoring and Re-Sale of B}ffi Units
-,
PUBLIC AGENCY ACKNOWLEDG~ffiNT
STATE OF CALIFORNIA )
) ss.
COL~TY OF MARIN )
On this~ __ day oflxtt00~, in the ye~~~, before me, Katherine J. Carella,
the undersigned Notary Public, personally appeared Janet Miller Schoder, uersonally
known to me to be the person who executed this instr~ent as Executive Di~ector
of the Housing Authority of the County of Narin, and acknowledged to me that
such Public Agency executed it.
HITNESS my hand and official seal.
~vu.--·l {fouj6
THERINE J. CARELLA
STATE OF CALIFORNIA l §
• NOTARY PL~LIC in an
said CdUnty and State.
or
OFFICIAL SEAL
PH!lIP BATES
Notary Public-Cal ifornia
PR INCIPAL OFFiC E IN
MARI~J COUNTY
~;;y Commi ssion Expir es .Ian , 6. 1004
.. '; .}
!. " (1 8 ".1 U u "t V v -
STATE OF CALIFORNIA On this ...... ?~n~ ... " .. day of.. q~<?" ~ ..... "" ... ,in the year ... ~.~ ............. .
............ " ................................................... " ...... , before me,
.. G?3:~.~n .. J?~.~~ ?-:l}-.g~~ ....... , ........... ,a Notal)' Public, State of California,
duly commissioned and sworn , personally appeared . )?0-.~ f: ~.P .. Y. .•..................
ss.
COUNTY OF ..... ~1.~:r: ~.I! .......... " .... .
Ab.~nq -:-.--:.--:~-:-.--:.--:-:-: -:-'-:-.--:.-: -:-:-:-.-:-.-: :-:--:-. -:-."7:-:-:-: -:."7 .-::-: :-:-:-."7:-::-: -:.-:-.-:-:-::-: -:-.-:-.~-:-::-. -:-.~
~~~~XlK (or proved to me on the basis of satisfactory evidence) to be
_
OFFlCLAL SEAL
,.;. CAREN EEARINGER
• NOTAfl V PUIJUC" CALIFORNIA
, MARIN COUNTY
"" My Comm. Exp ire. Sept. 30. 1987
the person .... whose name .... is ................................................. .
subscribed to this instrument, and acknowledged that .... he .... executed it.
IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal
in the .............. ~.C3r i On' .................... " ...................... County of
..................................................... " .... on the date set forth above
in this certificate.
n ... doamIent II only • general loon which may be propef tot use in simpkJ transaction:s DOd in no
way 1ICts, Of I:Ilf1tendod to act, as 8 subltrbJte lor the advoI on an anornoy. The printer does not
mai.o any .... onIy . """"' upr .... or Imptoed .. 10 tho legal voldrty of any ptDVIlOOll or tho
~oI __ ., ... yll'O<iflc~_
Notary Public, S te of California o ,:) 1)
My commission expires __ --<-/_ . .::: ....... "....")!....l_. ·_-....;6:;:::.._....:7 ____ _
Cowdery's Fonn No. 32 -Acknowledgement to Notary Public -Individuals -(C .C. Sec . 1189) -(Rev . 1183)
(' ,
EXHIBIT "A"
Proj ec t Name: Centertmm Locality: San Rafael
Developer: U.F. Service Corp. Date: 10-12-83
Legal Description of the Project and the Individual Parcels if appropriate:
The specific Units shall be designated 120 days PRIOR to issuance of the
Certificate of Occupancy.
The project is "Centertown", a 95 unit senior condominium project as described in
Z82-18 (Ord. No. 1458) and located at 855 "e" Street at Third Street San Rafael
California, County Assessor's Parcels 11-254-02 through 06. '\ '
STATE OF CALIFORNIA )
) 55.
COUNTY OF f1ARIN )
On this ~ day of December , 198 3 , before me, JEANNE M. LEONCINI, a
Notary Public in and for the said County and State, residing therein, duly
commissioned and sworn, personally appeared LAWRENCE E. MU~RYAN
personally known to me (or proved to me on the basis of satisfactory
evidence) 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 writ~~~~~~~~~~~~~~
JEANN M. LEONCINI, NOTARY PUBLIC in and for
said County and State.
OFF IC I A L SEAL
JEANNE M. LEONCINI
N O TARY P U ~lI C -CAlIro ;;t~I"
Pr incipal C ffke i n M ARI N COUNTY
My Comm iss icn Expire ~ Oct '27. 1987
1400 5th Avo., P. O . Go . 60, San Ra foel, CA 94915 .0060
· .
EXHIBIT "B"
Project Name: Centertown Locality: San Rafael
Developer: U. F. Service Corp. Date: 10-12-83
In certifying eligibility of applicants for the subject project, the Authority shall
give priority as follows:
Qualifications for Lottery
NOTe: This project is a 100% Elderly project (60 years or over)
Although a person less than 60 years of age could reside in the
project ~ith a primary resident over 60 years of age, a lower age
limit of 45 shall be specified.
1. All applicants must be 60 years of age or over.
2. No applicant may own another home.
3. Assets may not exceed 100 % of the purchase price of the unit.
Priority for Lottery Selection
Occupancy priority shall be given to City residents.
'.'
No. of Persons
in FaL!lilL __ . 50%
1 $11,050
2 12,650
3 14,200
l~ 15,800
5 17,050
6 18,350
7 19~600
8 20,850
· . . \
INCOHE LUllT SCHEDULE
NARIN COUNTY
80i. 90i. Median 110%
17,700 19,890 22,100 2.4 ~ 310
20,200 22,770 25,300 27,830
22,750 25,560 28,400 31,240
25,300 28,440 31,600 34,760
26,850 30,690 34,100 37~510
28,450 33,030 36,700 40,370
30,000 35,280 39,200 43,120
31,600 37,530 41,700 45,870
Community Development Block Grant
Program Revised Income Limits
Effective AprilS, 1983
115% '120%
25 :[,15 26,520
29,095 30,360
32,66Cl 34,080
36,340 37,920
39,215 40,920
42~205 44,040
45,080 47,Ol,O
47,955 50,040
.LJ .. '1rrr. 1J ..L U..L \., \...,
MEMORANDUM OF UNDERS T ~ NDING
ADMI ~-JISTRATIVE PROCEDURES
RE-SALE OF BELOW-MARKET-RATE UNITS
CENTERTOWN
Units sold to eligible families under the Below-Market-Rate program are subject to a deed restriction
whi ch es~abl ishes certain conditions for occupancy and for re-sale. The following is intended to define
the procedure in implementing the monitoring and re-sale requirements.
GENERAL
It is understood that the BMR units in the project were made ovoilable for moderate-income purchasers
by action of the City of San Rafael r . and that this is an affordable housing program with the Housing
Authority of the County of Marin octing as implementing agent of the City/Town.
The follov/ing shall serve as the contact persons for all written notices and correspondence between the
Housing Authority and the City/T own:
City of San Rafael
Housing Authority of the County of Marin
MONITORI NG OF OCCUPANCY
Planning Department
City of San Rafael
1400 Fiftl'l Avenue
San Rafael, CA 94901
-Executive Director
P.O. Box 4282
San Rafael, CA 94913
The Housing Authority of the County of Marin will monitor the occupancy of each unit in a discreet
fashion to guard against potential program abuses and violatians of the deed restrictions. Any irregu-
Icrities or suspected abuses will be reported to the City/Town in w.6ting for any action it deemsapprariate . .
RE-SP-.LE PROCEDURES·
The following outline'S the procedL·re w~ich will be adhered ta in the e'::::r.r of:: re-sa!.:::
1. The Authority will notify the City/Town in writing within five (5) working days of receipt
of Notification of Intent to Sell or default. In so doing, the Authority will also advise
the City/Town of its proposed schedule and methodology for selecting qualified buyers
(which meet San Rafael's most recently-established criteria for eligibility and selection);
indicate the sales price set pursuant to the formula in the applicable deed restriction; and
specify the dates thar the Authority is required under provisions of that deed restriction to
exercise an option to purchase and to close escrow. If, in the determination of the Authority,
the re-sale price generated from the formulo in the deed restriction would result in 0 price
not affordable to families earning less than 120% of median as published by HUD, the Authority
will odvise the City/Town of this fod 50 that the City/fown moy consider using an alternate
basis For establishing the maximum income limits.
0'
2. Within twenty-one (21) colendar days of receipt of Notification to sell, the Authority
shall conduct a lottery from an active and current list of interested households.
3. Thirty (30) days after receipt of Notification to sell, and every thirty (30) days there-
after until close of escrow and sale of the unit, the Authority will advise the City/fown
in writing of progress in finding an eligible and qualified buyer. Such advisory notice
shall offer a determination on the feasibi I ity of selling the unit to on eligible buyer
within the time prescribed.
4. Within fifteen (15) days prior to date established in the deed restriction requiring
Authority to exercise option, the Authori ty and City/T own wi 1\ consult to iointly deter-
mine how to proceed and whether or not the Authority (or the City/T own) should exercise
the option to purchase. The City/Town shall confirm such understanding with the Authority
in writing. Such correspondence would indi cate, for example, that the Authority or City/
Town will exercise the option; or that the option is not be exercised.
5. If Au:hority and City/f own determine that the option to purchase should be exercised, the
Authority will designate either the Authority and/or the City/fown as assignee and pro-
ceed according to instructions in the deed restri ctions to exercise this option and open
escrow.
6. After the first 30 days of the option period, the Authority will submit a status report to
the City/Town and assist in exploring altematives to purchase if.appropriate. At 60
days into the option period, or upon sale to an eligible buyer, whi chever is earlier,
the Authority shall again notify the City/Town of the soles progress.
7. If it becomes necessary, for whatever reason, for the Authority and/or the City/Town
to purchase a unit, then the Authority and City/T own shall immediately meet to determine
the quickest course of action to take, so the unit can be resold. At such time, the parties
shall consider how closing costs, loss of interest, and other unrecoverable expendituies,
shall be handled.
SUBSTITUTION OF CURRENT DEED RESTRICTION
The .6.~thority may, during the re-sale process, make recommendations Tn. the City/Town that c more
current deed restriction than that applicable to the original sale be used for the subsequent sale. This
might, for example, adjust the time frame for the re-sale formula.
ELIGIBILITY CRITERIA
The policies goveming the selection of homebuyers for certification by the Housing Authority under
The Below-Market-Rate program shall be those as established by the City of San Rafael. These
\ ..
shall include, but not be limited to maximum income limits, order of preference and policy on
first-time-homebuyers. The most recently-established criteria shall be used by the Authority in
structuring the lottery. The City/Town shall notify the Housing Authority in writing of any additions
or modifications to its selection policies.
READ AND AGREED this _________ day of __________ , 198 •
CITY OF SAN RAFAEL
By ___________________________ _
City Manager
HOUSI NG AUTHORITY OF THE COUNTY
OF MARIN
By
Executive Dir~-::toi