Loading...
HomeMy WebLinkAboutCC Resolution 11424 (BMR Agr.)CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLUTION NO. 11424 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A BELOW MARKET RATE RENTAL HOUSING AGREEMENT BETWEEN THE CITY OF SAN RAFAEL AND MICHAEL O' MAHONEY AND J.F. SULLIVAN REGARDING LINCOLN MEWS (1515 LINCOLN AVENUE) THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows: The Mayor and the City Clerk are authorized to execute on behalf of the City of San Rafael, a Below Market Rate Rental Housing Agreement between the City of San Rafael and Michael O'Mahoney and J.F. Sullivan regarding Lincoln Mews, located at 1515 Lincoln Avenue in San Rafael; a copy of the Agreement is hereby attached and by this reference made a part hereof, with such changes, deletions and insertions as may be approved by the City Attorney. I, JEANNE M. LEONCINI, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on the 6th day of October 2003, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None JE —M. LEONCINI, City Clerk CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT Project Name: Lincoln Mews Date: October 13, 2003 Address: 1515 Lincoln Avenue Owner: Michael O'Mahony & J. F. O'Sullivan THIS BELOW MARKET RATE RENTAL UNIT AGREEMENT AND DECLARATI0 RESTRICTIVE COVENANTS is made and entered this date OCTOBER 13 �Wp between the CITY OF SAN RAFAEL, a municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City"), and Michael O' Mahony & J. F. O'Sullivan (the "Owner"). PREAMBLE WHEREAS, the Owner proposes to construct a 24 unit residential apartment complex located at 1515 Lincoln Avenue, San Rafael known as ("Project"). WHEREAS, the Owner owns the real Property located within the corporate limits of the City and more particularly described in Exhibit "A" attached and incorporated for reference herein and; WHEREAS, the Owner has received the City's approval to construct the Project on the property and; WHEREAS the City's approval of the project is conditioned upon Owner's compliance with the Housing Element of the General Plan 2000 and providing low and moderate income units as set forth in Exhibit "B" attached and incorporated herein. NOW, THEREFORE, in consideration for the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and the Owner do hereby contract and agree as follows: AGREEMENT Section 1. DEFINITIONS AND INTERPRETATION. Unless otherwise expressly provided herein or unless the context clearly requires otherwise, the following terms shall have the respective meanings set forth below for all purposes of this Below Market Rate Rental Unit Agreement: Lincoln Mews July 24, 2002 "Affordable Housing Expense Is the maximum rent for any unit occupied by a Qualifying Tenant which shall be established and updated using the then current Median Gross Income for the Area as shown for example in Exhibit "B". "Low Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 80% of the Median Gross Income for the Area, adjusted for household size. "Low/Moderate Income Unit" refers to the units described in Exhibit "B". "Median Gross Income for the Area" shall mean income for households of an applicable size in the San Francisco PMSA (Primary Metropolitan Statistical Area) most recently determined by HUD adjusted for household size, as provided by Marin Housing Authority. "Moderate Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 90% of the Median Gross Income for the Area, adjusted for household size. "Plan" shall mean the City of San Rafael General Plan 2000. "Program Administrator" shall mean the administrator for compliance of the Project with the Below Market Rate Unit Rental Agreement which shall be the City. "Project" shall mean the parcel of real property in the City of San Rafael as described in Exhibit "A" hereto, and all rights and appurtenances pertaining thereto, and the buildings, structures and other improvements constructed orto be constructed thereon, including all fixtures and other property owned, leased or licensed by the Owner and located on, or used in connection with, such buildings, structures or other improvements, all of which shall be constructed and operated by the Owner in accordance with the restrictions set forth in this Agreement. "Project Period" means a period of forty (40) years commencing on the date of occupancy of 50% of the units in the Project. Upon occupancy of 50% of the units in the Project, Owner and City shall execute, and record, with the Marin County Recorders Office, Exhibit "E" to this Agreement specifying the commencement and expiration date of Project Period. The restrictions set forth herein shall be deemed covenants running with the land provided, however, that upon termination of this Agreement said covenants shall expire. "Qualifying Tenant" means resident households whose incomes do not exceed the household income limits for Very Low, Low, and/or Moderate Income Household. "Very Low Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 50% of the Median Gross Income for the Area, adjusted for household size. Lincoln Mews July 24, 2002 2 Section 2. QUALIFYING TENANTS (a) SELECTION. For the duration of the full Project Period, Qualifying Tenant selection shall be based on income eligibility for Very Low, Low, and/or Moderate Income Households as defined in Section 1 and subject to final approval by the Owner. (b) QUALIFICATION. Qualifying Tenant status shall be determined at the time of initial occupancy of a unit by the tenant(s) and certified annually on the basis of a Tenant Income Certification (Exhibit "C") executed by the Qualifying Tenant and accompanied by a copy of: (i) their federal income tax return for the immediately prior tax year; or (ii) their employer's verification of current income ; or (iii) if the Qualifying Tenant is self-employed orthe tax return is unavailable, such other satisfactory evidence of income. If a qualifying Tenant certifies that he/she did not file or did not retain a copy of their federal tax return, other evidence, such as a current wage statement or employer records must be obtained. (c) OCCUPANCY. Throughout the Project Period, the required Very Low / Low / Moderate Income Units in the Project shall be occupied and at all times be rented to Qualifying Tenants at rental rates not to exceed the Affordable Housing Expense as set forth in Exhibit B. No Qualifying Tenant shall be denied continued occupancy, because this tenant exceeds the income limits. If, as of the most recent Tenant Income Certification, it is determined that the income of Qualifying Tenant exceeds one hundred -forty percent (140%) of the Median Gross Income for the Area, then they shall no longer qualify as a Qualifying Tenant. The Owner shall provide the next availale unit (s) of comparable or smaller size to a Qualified Tenant, as needed to achieve compliance. The Owner shall immediately notify, in writing, each tenant who is no longer a Qualified Tenant of such fact, and that such tenant(s) rent is subject to increase 30 days after receipt of such notice. The Owner shall be entitled to so increase any such tenant's rent only if Owner complies with any law applicable thereto and only after the Owner has rented the next available unit or units in the Project on a one-for-one basis to a Qualified Tenant, or holds units vacant and available for occupancy by Qualified Tenants. The Owner agrees to inform all prospective Qualifying Tenants of the requirements for annual certification of income and of the provisions of the preceding paragraphs. Section 3. REPORTING. (a) EXHIBIT "C" TENANT INCOME CERTIFICATION. Exhibit C shall be obtained from each Qualified Tenant and maintained on file by the Owner. If not previously submitted, attach copy and submit with Exhibit D to the Program Administrator. (b) EXHIBIT "D" CERTIFICATION OF CONTINUING COMPLIANCE. Exhibit D shall be submitted by the Owner to the Program Administrator quarterly until the project is fifty percent (50%) occupied and annually thereafter for the Project Period. (c) The Owner shall permit the Program Administratorto inspect the Project records at the Owner's office upon 10 days notice. Lincoln Mews July 24, 2002 3 Section 4. COVENANTS. It is intended and determined that the provisions of this Agreement shall constitute covenants which shall run with the land comprising the Project for the benefit thereof, and the burdens and benefits thereof shall bind and inure to the benefit of all successors in interest of the parties hereto; provided, however, that on the termination of this Agreement said covenants shall expire. Section 5. TERM. This Agreement shall become effective upon its execution and delivery. Except as provided in the immediately following paragraph, this Agreement shall remain in full force and effect for the Project Period. Section 6. DEFAULT AND ENFORCEMENT. In the event the Owner leases any unit at a rent in violation of this Agreement, the Owner shall immediately, upon notice from the City, rent the unit at the Affordable Housing Rent in accordance with Exhibit B of this Agreement and pay; (i) to the Qualifying Tenant, an amount equal to the difference between the amount the Owner actually received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation; and (ii) to the City, as liquidated damages, an amount equal to two times the difference between the amount the Owner actually received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation. The parties agree that this formula for establishing liquidated damages is reasonable considering all the circumstances existing on the date of this Agreement, including (a) the range of harm that would result to the City and its housing program under its general plan from violation of this Agreement by the Owner, and (b) the anticipation that proof of the actual damages would be costly and inconvenient. In the event the Tenant cannot be located within a reasonable time the Owner shall pay to the City the total amount due to the Tenant. Section 7. MONITORING FEE. The Owner agrees to pay to the City during the Project Period an annual monitoring fee payable on or before June 1 of each year and shall be calculated at the rate of $50.00 per each Very Low, Low Income Unit per year. Total annual fee $150.00. If the expenses of the City in monitoring compliance by the Owner, with provisions of this Agreement, are in excess of $150.00 in any annual period, the Owner upon written demand shall pay such actual excess costs in an amount not to exceed 5% increase per year. Section 8. UNIT MIX, LOCATION AND HOUSEHOLD SIZE. The Below Market Rate Units shall be located on the parcel described in Exhibit A. Section 9. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. Section 10. AMENDMENTS. This Agreement shall be amended only by written instrument signed by all of the parties hereto. Lincoln Mews July 24, 2002 4 Section 11. ATTORNEY'S FEES. In the event that a party to this Agreement brings an action against any other party to this Agreement by reason of the breach of any condition or covenant, in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suit. Section 12. SEVERABILITY. If any provision of this Agreement shall be invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction because it conflicts with any other provision (s) or any constitution or statute or rule of public policy, or for any reason, such circumstance shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance or of rendering any other provision or provisions contained herein invalid, inoperative, or unenforceable to any extent whatsoever. The invalidity of any one or more phrases, sentences, clauses or sections contained in this Agreement shall not affect the remaining portions of this Agreement, or any part hereof. Section 13. RECORDING AND FILING. The Owner shall cause this Agreement and all amendments hereto to be recorded and filed in the real property records in the office of the County Recorder of Marin County within 5 working days of the City's execution of the Agreement and shall pay all fees and charges incurred in connection therewith and shall transmit a recorded copy to the City. Upon the expiration of the Project Period the City shall cooperate with the Owner, at the sole expense of the Owner, in the recording of such instruments or instruments of release or termination as the Owner may reasonably request. Section 14. NOTICE. All notices required or permitted under this Agreement shall be sent by certified United States mail, or an overnight courier service requiring a signed receipt, addressed as follows : TO THE CITY TO THE OWNER: City of San Rafael Attn : City Manager P.O. Box 151560 San Rafael, CA 94915-1560 Michael O'Mahony & J. F. O'Sullivan 4830 Mission Street #103 San Francisco CA 94112 Notice shall be deemed served for purposes of the Agreement one day after deposit in the United States mail or acceptance by the overnight courier service. Any party may change its address for purpose of notice by giving notice pursuant to this section. Section 15. TERMINATION. This Agreement shall terminate and be of no further force or effect at the end of the Project Period. Lincoln Mews July 24, 200255 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first written above. ATTEST: B Y : A ,�� ;,� Je*fie M. Leoncinf City Clerk CITY OF SAN RAFA BY: Name J . 0 Title : MAYOR Owner Owner Y� B -i� Lincoln Mews July 24, 2002 6 Legal Description EXHIBIT "B" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL AGREEMENT Project Name : Lincoln Mews Date: Address: 1515 Lincoln Avenue Owner: Michael O'Mahony & J. F. O'Sullivan TOTAL NUMBER OF UNITS: 24 TOTAL NUMBER OF LOW INCOME UNITS: 3 (1 one-bedrm; 2 two-bedrm) AFFORDABLE INCOME / RENT SCHEDULE : For example, using the 2002 Median Gross Income for the Area maximum income and rent calculations would be as follows : 2002 INCOME SCHEDULE (from Marin Housing) 80.00% 44,850 51,250 57,650 64,100 MAXIMUM RENT SCHEDULE - LOW INCOME Low Income rent @ Median Low Income Income HH Size 100% 65.00% 1 60,250 39,163 2 68,900 44,785 3 77,500 50,375 4 86,100 55,965 (from Marin Housing) 80.00% 44,850 51,250 57,650 64,100 MAXIMUM RENT SCHEDULE - LOW INCOME Low Income rent @ 65.00% of median Monthly rent, including utilities, may not exceed 1/12 of 30% of 65.00% of median income. adjusted for household size. Annual Monthly 30% Monthly HH Size Unit size Income Income of income Utilities RENT / MO 2 1Br 44,785 3,732 1,120 73 $1,047 3 2Br 50,375 4,198 1,259 99 $1,160 EXBLM July24,2002 EXHIBIT "C" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT TENANT INCOME CERTIFICATION Project Name: Lincoln Mews Date: Address: 1515 Lincoln Avenue Owner: Michael O'Mahony & Jeriamah O'Sullivan APARTMENT NO. MONTHLY RENT: TENANT / HOUSEHOLD NAME: last first TOTAL CURRENT HOUSEHOLD GROSS ANNUAL INCOME: (total household income includes all wages, salaries, etc., as reported as gross income for federal income tax or pay stubs or other relevant documentation.) Attached hereto are federal or state income tax returns, stubs from paychecks or other evidence of the income of the persons listed below. Name of Member of the Relationship Age Social Place of Household Security No. Employment I/We the undersigned have read and answered fully, frankly and personally each of the above questions under penalty of purjury and do hereby swear they are true. Tenant - Head of Household Date : EXC LM October 2, 2003 EXHIBIT "D" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT CERTIFICATION OF CONTINUING COMPLIANCE Project Name : Lincoln Mews Date: Address: 1515 Lincoln Avenue Owner: Michael O'Mahony & J. F. O'Sullivan TOTAL NUMBER OF UNITS: 24 TOTAL NUMBER OF LOW INCOME UNITS: 3 (1 one-bedrm; 2 two-bedrm) The undersigned, in accordance with the BELOW MARKET RATE RENTAL UNIT AGREEMENT with the City of San Rafael dated for the Project does hereby certify that during the preceding twelve (12) months, the following units were occupied in accordance with the Below Market Rate Rental Unit Agreement and does hereby further certify that the representation set forth herein are true and correct to the best of the undersigned's knowledge. Tenants Unit Monthly Annual Household Name No. Rent Income size Low Income Signed : Date Owner attach additional sheets if necessary EXD LM July 24, 2002 EXHIBIT "E" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL AGREEMENT NOTICE OF COMMENCEMENT OF PROJECT PERIOD Project Name: Lincoln Mews Date: Address: 1515 Lincoln Avenue Owner: Michael O'Mahony & J. F. O'Sullivan The "Project Period" as defined in that certain BELOW MARKET RATE RENTAL UNIT AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS, recorded on , as Document # , in the Office of the Marin County Recorder and pertaining to the real property within the City of San Rafael, State of California, described in Exhibit "A" attached hereto, commenced on The Project Period will expire on ATTEST: City Clerk EXE LM July 24, 2002 CITY OF SAN RAFAEL BY: Name: Title : Owner By: