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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 .00 NO FEE .00 TOTAL TENDERED .m CHANCE ,00 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 /G r lvwlj .4 U,,a Tr /W/Wme /ele 7weWs Mclnn s II September 5, 2002 6 ALL-PURPOSE ACKNOWLEDGMENT State of California ) ) ss. County of Marin ) On December 6. 2002 before me, the undersigned, a Notary Public in and for said County and State, personally appeared: rl -,bn S17,1e71/i 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 J Q *Comm expas JULY V. 2005 t A t y 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. r v v v v v v v WITNESS my hand and official seal. 1""' I4 " 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`