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: