HomeMy WebLinkAboutCC Resolution 11181 (BMR Agr.)CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION NO. 11181
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
AUTHORIZING THE SIGNING OF A BELOW MARKET RATE RENTAL HOUSING
AGREEMENT BETWEEN MC INNIS HOUSING PARTNERS AND THE CITY OF SAN
RAFAEL RE: MC INNIS II APARTMENTS
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 Housing Agreement between Mc Innis Housing Partners and the City of San
Rafael, a copy of which is hereby attached and by this reference made a part hereof.
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 7`h day of October, 2002, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Mi 11 er
ABSTAIN: COUNCILMEMBERS: None
JEANNE M. LEONCM, City Clerk
q ffiA'a \`\s\
RECORDING REQUESTED BY:
WHEN RECORDED MAIL, TO:
Jeanne M. Leoncini, City Clerk
City of San Rafael
P.O. Box 151560
San Rafael, CA 94915-1560
THIS SPACE FOR
CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT
RE: McINNIS PARK APARTMENTS II
County Of
Marin
JOAN C. THAYER
2603-0000421
1/3/2003 11:28an
REC FEE
,00
TOTAL
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NO FEE
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TOTAL TENDERED
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CHANCE
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02:49PM 03—Jan-2M 20030103 0131
wendy ASSESRH53P711
Thank You
Have R Nice Day
Requested By:
PUBLIC
(Note: Certified copy of Resolution No. 11181, adopted by San Rafael
City Council 10/7/02, attached.)
THIS PAGE IS ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION
ADDITIONAL RECORDING FEE APPLIES
CITY OF SAN RAFAEL
BELOW MARKET RATE RENTAL UNIT AGREEMENT
Project Name: McInnis Park Apartments II Date:
Address: End of North Avenue, San Rafael
Owner: McInnis Housing Partners, John Shalavi
THIS BELOW MARKET RATE RENTAL UNIT AGREEMENT AND DECLARATION OF
RESTRICTIVE COVENANTS is made and entered this date August 15, 2002 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 McInnis Housing Partners,
John Shalavi (the "Owner").
PREAMBLE
WHEREAS, the Owner proposes to construct a 42 unit residential apartment
complex located at End of North 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 she 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:
Mdnn s If September 5, 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 120% 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 or to 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.
McInnis 11 September 5, 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 or
the 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 available 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 an 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 Administrator to inspect the Project records
at the Owner's office upon 10 days notice.
McInnis II September 5, 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 amountthe 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. UNIT MIX, LOCATION AND HOUSEHOLD SIZE. The Below Market
Rate Units shall be located on the parcels described in Exhibit A. The total BMR units for
Mc Innis 1 (20 units @ 70% of median and 20 units @ 100% of median) and Mc Innis II
governed by this Agreement can be located at either Mc Innis I or Mc Innis II.
Section 8. GOVERNING LAW. This Agreement shall be governed by the laws of
the State of California.
Section 9. AMENDMENTS. This Agreement shall be amended only by written
instrument signed by all of the parties hereto.
Section 10. 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.
McInnis II September 5, 2002 4
Section 11. 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 12. 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 13. 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: City of San Rafael
Attn: City Manager
P.O. Box 151560
San Rafael, CA 94915-1560
TO THE OWNER: McInnis Housing Partners, John Shalavi
180 Harbor Dr., Suite 227
Sausalito, CA 94965
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 14. TERMINATION. This Agreement shall terminate and be of no
further force or effect at the end of the Project Period.
McInnis 0 September 5, 2002 5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first written above.
ATTEST . -
'Jeanne
eanne M. Leo`ncini
City Clerk
CITY OF SAN RAFAEL
BY
Name J AeBERT J AtDRO
Title : Mayor
Owner
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Mclnn s II September 5, 2002 6
ALL-PURPOSE ACKNOWLEDGMENT
State of California )
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County of Marin )
On December 6. 2002 before me, the undersigned, a Notary Public
in and for said County and State, personally appeared:
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personally
known to
me (or proved to me on
the basis of satisfactory
evidence)
to be the
person(s) whose name(s)
is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies) and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s), acted, executed the instrument.
`1 LAURA VASQUEZ
WITNESS my hand and official seal.o COMM. #1366835
N 07AR TY ORNIA0MARIN00N
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Q *Comm expas JULY V. 2005 t
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Notary Public
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Marin
On Oct. 16, 2002
Date
personally appeared Albert J.
before me,
Bo ro
ss.
Nancy Hann, Notary Public
Name and T.tte of Officer (e g., -Jane Doe, Notary Publicl
Names) of Signer(s)'
XXpersonally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the personK whose name(.sj&I�a�
subscribed to the within instrument and
acknowledged to me tha fj�%stKotbey executed
the same in I htatltWf- authorized
NANCY HANN D ca acit .-� and—that by d9heMhefr
COMM. #1248638 P y(W<
1 NOTARY PUBLIC•CA—FORNIA I signature(sron the instrument the person(8j; or
MARIN COUNTY 0 the entity upon behalf of which the persor}4
My Comm, Expires Feb. 4x2004 acted, executed the instrument.
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WITNESS my hand and official seal.
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Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: CSR BMR Rental Unit Agreement re McInnis Park
Apartments II (w/Reso. No. 11181)
Document Date: AU4 . 15. 2002 Number of Pages: -
Signer(s) Other Than Named Above: John Sha 1 a y i
Capacity(ies) Claimed by Signer
Signer's Name: Albert J. Bo ro
W
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — Limited General
❑ Attorney -in -Fact
❑ Trustee
❑ Guardian or Conservator
XX Other: r,)a Vo r
Signer Is Representing: City of San Rafael
0 1999 National Notary Association - 9350 De Soto Ave., P.O. Boz 2402 - Chatsworth, CA 91313-2402 - www nalionalnotaryorg Prod. No 5907 Reorder: Call Toll -Free 1.800-876.6827
EXHIBIT "A"
CITY OF SAN RAFAEL
BELOW MARKET RATE RENTAL UNIT AGREEMENT
LEGAL DECRIPTION
A August 20, 2002
Page 1 of 3
DESCRIPTION
ESCROW NO. 240023 PH
Page 2 of 3
ALL THAT CERTAIN real priperty situate in the City of San Rafael, County of Marin, State of
California, described below as follows:
ALL THAT PORTION shown upon that certain Parcel Map entitled "Parcel Map of Lot 5B of
Parcel Map of Lot Line Adjustment Lots 5, 12 & Parcel C, Smith Ranch — Northerly Portion —17
R.M. 39 — 21 P.M. 88 — 23 PM 46 — Lands of Medical Retirement Communities, Inc., San Rafael,
Marin County, California", filed for record October 31, 1988 in Book 24 of Parcel Maps, at Page
36, Marin County Records.
EXCEPTING THEREFROM that portion lying within Silveira Parkway
EXHIBIT "B"
CITY OF SAN RAFAEL
BELOW MARKET RATE RENTAL AGREEMENT
Project Name: McInnis Park Apartments II Date:
Address: End of North Avenue, San Rafael
Owner: McInnis Housing Partners, John Shalavi
TOTAL NUMBER OF UNITS: 42
TOTAL NUMBER OF VERY LOW INCOME UNITS: 3 (1 one-bedrm; 2 two-bedrm)
TOTAL NUMBER OF LOW INCOME UNITS: 4 (1 one-bedrm; 3 two-bedrm)
TOTAL NUMBER OF MODERATE INCOME UNITS: 2 (1 one-bedrm; 1 two-bedrm)
AFFORDABLE INCOME I 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)
Median
Very Low
Low
Moderate
Income
Income
Income
Income
HH Size 100%
45%
65%
90%
1 60,250
27,113
39,163
50,450
2 68,900
31,005
44,785
57,650
3 77,500
34,875
50,375
64,900
4 86,100
38,745
55,965
72,100
AFFORDABLE HOUSING EXPENSE SCHEDULE
Very Low Income
Monthly rent may not exceed 1/12 of
30% of 45% of
median adjusted for Household size
Annual
Monthly
HH size Unit size
Income
Income
RENT / MO
2 1Br
31,005
2,584
775
3 2Br
34,875
2,906
872
Low Income
Monthly rent may not exceed 1/12 of
30% of 65% of
median adjusted for Household size
Annual
Monthly
HH size Unit size
Income
Income
RENT / MO
2 1Br
44,785
3,732
1,120
3 2Br
50,375
4,198
1,259
Moderate Income
Monthly rent may not exceed 1/12 of
30% of 90% of
median adjusted for Household size
Annual
Monthly
HH size Unit size
Income
Income
RENT / MO
2 1Br
57,650
4,804
1,441
3 2Br
64,900
5,408
1,623
EXBmc112002 July 29, 2002
1
EXHIBIT "C"
CITY OF SAN RAFAEL
BELOW MARKET RATE RENTAL UNIT AGREEMENT
Project Name:
Address:
Owner:
APARTMENT NO.
TENANT INCOME CERTIFICATION
McInnis Park Apartments II Date:
End of North Avenue, San Rafael
McInnis Housing Partners, John Shalavi
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 :
exhibit c August 20, 2002
EXHIBIT "D"
CITY OF SAN RAFAEL
BELOW MARKET RATE RENTAL UNIT AGREEMENT
CERTIFICATION OF CONTINUING COMPLIANCE
Project Name: McInnis Park Apartments II Date:
Address: End of North Avenue, San Rafael
Owner: McInnis Housing Partners, John Shalavi
TOTAL NUMBER OF UNITS: 42
TOTAL NUMBER OF VERY LOW INCOME UNITS: 3 (1 one-bedrm; 2 two-bedrm)
TOTAL NUMBER OF LOW INCOME UNITS: 4 (1 one-bedrm; 3 two-bedrm)
TOTAL NUMBER OF MODERATE INCOME UNITS: 2 (1 one-bedrm; 1 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.
Very Low Income
Low Income
Moderate Income
Tenants Unit Monthly * Annual Household
Name No. Rent Income size
Signed : Date
Owner
attach additional sheets if necessary
EXhbit d August 20, 2002
CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION NO. 11181
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
AUTHORIZING THE SIGNING OF A BELOW MARKET RATE RENTAL HOUSING
AGREEMENT BETWEEN MC INNIS HOUSING PARTNERS AND THE CITY OF SAN
RAFAEL RE: MC INNIS II APARTMENTS
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 Housing Agreement between Mc Innis Housing Partners and the City of San
Rafael, a copy of which is hereby attached and by this reference made a part hereof.
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 7th day of October, 2002, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Mi 11 er
ABSTAIN: COUNCILMEMBERS: None
JEANN LEONCINI*Ci Clerk
COPY ���'S`