HomeMy WebLinkAboutCC Resolution 10034 (Woodland Terrace)RESOLUTION NO.10034
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN RAFAEL AUTHORIZING THE SIGNING OF A
BELOW MARKET RATE HOUSING AGREEMENT BETWEEN
WOODLAND TERRACE, LLC, A CALIFORNIA CORPORATION AND
THE CITY OF SAN RAFAEL RE: WOODLAND TERRACE
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 Below Market Rate Housing Agreement between Woodland Terrace, LLC, a
California Corporation 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, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at the regular meeting of the
Council
of said City on MONDAY
, thel 6th day of MARCH
, 1998, by the following vote, to wit
AYES:
COUNCILMEMBERS:
COHEN, HELLER, MILLER,
PHILLIPS AND MAYOR BORO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
JEAkl< E M. LEONCINI CITY CLERK
0 RoGIi�fil,o��*
Recording Requested by:
City of San Rafael
When Recorded Return to:
City of San Rafael
Attention: Planning Director
P. O. Box 151560
San Rafael, CA 94915-1560
BELOW MARKET RATE HOUSING AGREEMENT
Project Name: WOODLAND TERRACE
Location: 157 Woodland Avenue, San Rafael, CA 94901
Developer: Woodland Terrace, LLC, or any successor in interest
This Agreement is made and entered into this 16th. day of _MArrh , 1998, among the CITY OF'
SAN RAFAEL, a municipal corporation (hereinafter referred to as "the City"), the HOUSING AUTHORITY OF
THE COUNTY OF MARIN, a public body, corporate and politic, created under the Housing Authority Law of
the State of California (hereinafter referred to as "Marin Housing Authority"), and WOODLAND TERRACE,
LLC, or any successor in interest (hereinafter referred to as "the Developer").
A. The Developer intends to construct a residential housing development on that certain real property situated
within the corporate limits of the City, which real property is more particularly described in Exhibit "A"
attached hereto and incorporated herein.
B. The City, in accordance with the provisions of the Housing Element of its General Plan, has approved the
Developer's proposed development on condition that the Developer provide therein one (1) dwelling unit to
be sold at a price which is within the means of a moderate -income household.
C. Marin Housing Authority is authorized by law to participate in programs that provide housing for households
of low and moderate income, and is by experience qualified to screen and determine eligibility of applicants
for low and moderate -income housing.
The parties hereto desire, by this Agreement, to cooperate in implementing the efforts of the Developer to comply
with the requirement that the Developer make available said dwelling units at prices which are within the means of
moderate -income households.
NOW THEREFORE, it is hereby agreed by and between the parties hereto as follows:
Woodland Terrace BMR Agreement -- Woodland Terrace, LLC / Q Page I of 9
City of San Rafael / Marin Housing Authority 7/21/97
J /7`,
The Developer agrees that one (1) dwelling unit within the project approved by the City for the property
described in Exhibit "A" attached hereto will be sold to a moderate -income household in accordance with the
terms and pursuant to the procedures set forth in this Agreement. Said dwelling unit is identified in Exhibit
"B" attached hereto and will be legally described in an attachment to be recorded with the final map. Said
dwelling unit is hereinafter referred to as "the Unit."
The Developer agrees that the contract sales price for the Unit shall not exceed the price set forth in Exhibit
"B" attached hereto. The contract sales price is defined as the amount paid by the Buyer to the Developer
without regard to proration of taxes, utilities, or other such items and without regard to Buyer's payment of
homeowner's association fees, insurance premiums, escrow costs, transfer taxes, recording fees, document
preparation cost or similar items.
The Developer agrees to offer the Unit for sale only to an individual or household who has been certified as
eligible by Marin Housing Authority.
4. The Developer further agrees to give written notice to Marin Housing Authority at least one hundred and
twenty (120) days prior to estimated issuance of Certificate of Occupancy.
Marin Housing Authority agrees to process applications and certify the eligibility of applicants as persons or
households of moderate income. An individual or a household shall be deemed to qualify as a
moderate -income applicant provided the income of such individual or household does not exceed one
hundred twenty percent (120%) of the current median income for the San Francisco Primary Metropolitan
Statistical Area (PMSA)--San Francisco, San Mateo and Marin County --as determined by the United States
Department of Housing and Urban Development ("HUD"), Office of Economic Affairs, Economic and
Market Analysis Division, with adjustments for smaller or larger households (refer to Exhibit "D" attached
hereto).
In certifying eligibility of applicants, Marin Housing Authority shall adhere to the requirements for eligibility
adopted by the City and specified in EXHIBIT "C" attached hereto. Selection of individuals or households
falling within any of the priorities established in EXHIBIT "C" shall be determined by a drawing or other
equitable method mutually agreed upon by the City and Marin Housing Authority. Marin Housing Authority
shall be paid a fee of $1000 per unit to be paid by the buyer, which payment shall be included in the buyer's
closing costs through escrow.
6. In the event that the Unit remains unsold at the end of one hundred twenty (120) days from the date of
issuance of a Certificate of Occupancy by the City for the phase of development in which the subject unit is
located, the Developer shall notify Marin Housing Authority in writing of such fact. Within ten (10) working
days after receipt of such written notice, Marin Housing Authority or its assignee may notify the Developer in
writing that it will purchase the Unit. If Marin Housing Authority gives such notice, the Developer shall then
sell the Unit to Marin Housing Authority or its assignee at the same price it would have been available for
sale to households 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 Marin Housing Authority or its assignee declines to purchase the Unit, it may be sold by the
Developer on the open market without restrictions as to price, affordability or future re -sale, and no deed
restrictions will be placed on the property. In such event, the Developer shall pay to the City from the sale
price of the Unit seventy-five percent (75%) of the difference between the net price achieved after normal
selling and closing costs and the below -market -rate sales price specified in Exhibit "B". Said sum shall be
Woodland Terrace BMR Agreement -- Woodland Terrace, LLC / Page 2 of 9
City of San Rafael / Marin Housing Authority 7/21/97 %
i !
paid to the City upon close of escrow on the sale of such Unit or, if the sale is pursuant to a contract of sale,
upon execution of such contract, whichever shall first occur. The City shall pay to Marin Housing Authority
ten percent (10%) of this sum for Marin Housing Authority's use in administering Below Market Rate
projects including, but not limited to, on-going BMR monitoring and future BMR re -sales. The balance of
any such payments made to the City shall be retained by the City in a special account to be used solely for
activities which it deems will facilitate the provision of housing for persons of low or moderate income.
7. The contract conveying the Unit to a Buyer certified by Marin Housing Authority shall contain a resale
restriction and an option to purchase 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 Marin Housing Authority or its assignee, in
writing. Said deed restrictions shall be in the form of a Resale Restriction Agreement and Option to Purchase
to be provided by Marin Housing Authority as set forth in Exhibit "E" to this agreement, which Agreement
shall be executed by the Buyer and recorded in immediate succession after the Grant Deed conveying title to
the property.
8. In the event that the development project is not constructed or in the event that the master plan for the project
is amended or revised such that the Unit specified in Paragraph 1 is no longer required thereby, this
Agreement shall thereupon become void, unless the Unit has previously been sold in accordance with the
provisions of this Agreement, in which event the provisions of this Agreement will continue in force with
respect to the Unit so sold.
9. All notices required to be given under the terms of this Agreement shall be sent by first class U.S. mail,
certified/return receipt requested, or by express courier service, addressed as follows:
To the City
To Marin Housing Authority:
City of San Rafael
Attention: Planning Director
P.O. Box 151560
San Rafael, CA 94915-1560
Marin Housing Authority
Attention: Executive Director
30 N. San Pedro Road, Suite 265
San Rafael, CA 94903-4129
To the Developer: Woodland Terrace, LLC
Attention: William A. Cheek
625 Grand Ave., Suite 200
San Rafael, CA 94901
Any party may change the address to which notice shall be mailed to it by giving notice thereof to the other
parties by certified mail.
10. The City shall indemnify and hold harmless Marin Housing Authority and the Developer, its officers,
officials, employees and agents from and against all claims, damages, loses and expenses including attorneys
fees arising out of the performance of this agreement, cause in whole or part by any negligent act or omission
of the City, except where caused by the active negligence, sole negligence, or willful misconduct of the Marin
Housing Authority and/or Developer.
Woodland Terrace BMR Agreement -- Woodland Terrace, LLC / Page 3 of 9
City of San Rafael / Marin Housing Authority 7/21/97
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.
CITY OF SAN RAFAEL
c
B 'A BF J. Vb 4 '
Its: MAYOR
ATTEST:
B y :c-�c-+��
J NNE M. LEONCINI, CITY CLERK
HOUSING AUTHORITY OF
THE COUNTY OF MARIN
Its:
ATTEST:
LN
DEVELOPER: WOODLAND TERRACE, LLC
Its:
Attachments: Exhibit "A" --Legal Description of Property
Exhibit "B "--Schedule of BMR Unit and Sales Price
Exhibit "C" --Eligibility Requirements and Priorities
Exhibit "D" --Marin County FY 1997 Median Family Income Schedule
Exhibit "E" --Resale Restriction Agreement and Option to Purchase
Woodland Terrace BMR Agreement -- Woodland Terrace, LLC / Page 4 of 9
City of San Rafael / Marin Housing Authority 7/21/97
EXIUBIT "A"
Project Name: WOODLAND TERRACE
Location: 157 Woodland Avenue, San Rafael, CA 94901
Developer: Woodland Tcrracc, LLC, or any successor in intcresl
DLSCRIMON:
All that certain Real Property situated in the City of San Rafael, State of California, do:;cribed :►:; follows:
DESCRIPTION
All that certain real property situate in the City of San Rafael
County of Marin, State of California, and is described as follows:
Parcel 3, as shown upon that certain Parcel Map entitled "Parcel Map,
Lands of Copple, et al, being a portion of Lots 11 and 12, Map of Picnic
Valley Tract, Volume 1 Maps Page 2G, San Rafael, Marin County,
California", filed for record October 1G, 1995 in Book 25 of Parcel Maps,
at Page 93, Marin County Records.
Reserving therefrom a non-exclusive easement for private sanitary sewer
purposes and private drainage purposes over that portion of the above
described lot designated as 1110' P.S.S.E. & P.U.E.11
Said easement to be appurtenant to and for the benefit of Parcels One and
Two, Parcel Map above referred to.
Woodland Tcrracc DMR Agreement -- Woodland Tcrracc, LLC / l'agc 5 of 9
City of San Rafacl / Marin Ilousing Authority 7/21/97
EXHIBIT "B"
Project Name: WOODLAND TERRACE
Location: 157 Woodland Avenue, San Rafael, CA 94901
Developer: Woodland Terrace, LLC, or any successor in interest
Total Units: 10
BMR Units:
SCHEDULE OF BMR UNIT AND SALES PRICE
No. of Units Unit Tvae Unit Size Income Ranee Unit No. or Address Sales Price
1 313R/313A 1675sf Moderate -Income $178,500 u
The household size and income used to establish the above sales price:
Income Ranee Unit Tvoe Household Size % of Median Income Household Income
Moderate -Income 313R Four Persons 90% of Median $57,950"
Loan rate and term and debt -to -income ratio used to establish the above sales prices:
Mortgage Rate:
7.50% fixed-rate 1'
PMI Rate:
0.75%
Effective Mortgage Rate:
8.25%
Term / Amortization:
30 yr. / 30 yr.
Loan -to -Value Ratio:
90%
Percentage of Gross Monthly Income for
Mortgage Payment (Principal and Interest):
25%
L' Recalculation of the above sales price shall be permitted at the time of receipt by Marin Housing Authority of
the Developer's written notice one hundred twenty (120) days prior to the issuance of Certificates of
Occupancy for the Unit if either: (I) it is determined that the above -stated mortgage rate is different from the
then -current market interest rate; or, (ii) it is determined that the median income for the San Francisco PMSA
as determined by the U.S. Department of H.U.D. has changed from that set forth in Exhibit "D" attached
hereto. Upon receipt of the Developer's 120 -day notice, the sales price shall be recalculated by Marin Housing
Authority using the most affordable available mortgage rate for a 30 -year, fixed-rate mortgage as determined
by Marin Housing Authority and using the most recent median income for the San Francisco PMSA as
determined by H.U.D. Such an adjustment to the sales price shall be allowed more than one time only if
mutually agreed by all the parties to this Agreement.
Woodland Terrace BMR Agreement -- Woodland Terrace, LLC / Page 6 of 9
City of San Rafael / Marin Housing Authority 7/21/97
EXHIBIT "C"
Project Name: WOODLAND TERRACE
Location: 157 Woodland Avenue, San Rafael, CA 94901
Developer: Woodland Terrace, LLC, or any successor in interest
Elieibilitv Reouirements
In determining and certifying eligibility of applicants for the subject project, Marin Housing Authority shall adhere
to the following criteria:
The applicant's total household annual income may not exceed 120% of the current median income for the
San Francisco PMSA as determined by the U.S. Department of Housing and Urban Development (HUD),
and as adjusted for household size, in order to qualify as "moderate -income."
2. The total value of the applicant household's assets may not exceed 75% of the sales price of the unit.
3. The applicant must qualify as a "First-time Homebuyer" --defined as not having previously owned a principal
residence.
4. There must be at least three persons in the applicant's household.
Priorities for the Drawine
In selecting prospective purchasers from among all eligible applicants, a drawing shall be conducted. The City of
San Rafael has determined that the following priorities shall be employed in conducting the drawing to select
prospective purchasers. All names shall be drawn from the group of applicants falling within the first priority
before drawing names from the second and subsequent priority groups.
1. First priority in the drawing shall be given to any permanent, full-time employee of the City of San Rafael.
2. Second priority in the drawing shall be given to all other applicants.
Woodland Terrace BMR Agreement -- Woodland Terrace, LLC / Page 7 of 9
City of San Rafael / Marin Housing Authority 7/21/97
EXHIBIT "T"
Marin County FY 1997 Median Household Income Schedule
(Effective 12/27/96)
MAR?l
HOUSIN
AUkkV Hotting W(m Arta
31) N. Sail 114(ho Ra
Suitc UA
Saul kahwl ('uhltama 5
415/491.25? 5
Household r-------------------------- Low Income ......................., r- ..........- .Moderate Income ------------
Size '
50% 00% 65% 70% 75% 80% 90% 95% Median 120%
1 22,550 27,050 29,300 31,550 33,800 36,050 40,550 42,850 45,100 54,100
2 25,750 30,900 33,500 36,050 38,650 41,200 46,350 48,950 51,500 61,850
3 29,000 34,800 37,650 40,550 - 43,450 46,350 52,150 55,050 57,950 69,550
4 32,200
38,650
41,850
45,100
48,300
51,500
57,950
61,200
64,400 77,300
5 34,800
41,750
45,200
48,700
52,150
55,650
62,600
66,050
69,550
83,500
6 37,350
44,800
48,550
52,300
56,050
59,750
67,250
70,950
74,700
89,650
7 39,950
47,900
51,900
55,900
59,900
63,900
71,850
75,850
79,850
95,850
8 42,500
51,000
55,250
59,500
63,750
68,000
76,500
80,750
85,000
102,050
This median income schedule is based on the FY 1997 median income for the San Francisco PMSA (Primary Metropolitan Statistical
Araa), comprising San Francisco, San Mateo and Marin Counties. The median Income for a four -person household Is determined by
thq I'lQpartment of Housing and Urban Development ("HUD"), Office of Economic Affairs, Economic and Markel Analysis Division
N)Iophone 415-566-6241) and is adjusted for household size In accordance with HUD standard adjustment factors. The current
median income became effective 12/27/96. All figures are rounded to the nearest $50.
rn&&sn97.doc
M
EXHIBIT "E"
Resale Restriction Agreement and Option to Purchase
Woodland Terrace BMR Agreement -- Woodland Terrace, LLC / Page 9 of 9
City of San Rafael / Marin Housing Authority 7/21/97 l O
Recording Requested by:
Marin Housing Authority
When Recorded Return to:
Marin Housing Authority
P.O. Box 4282
San Rafael, CA 94913-4282
Attn: BMR Program
RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE
Owner(s):
Property Address:
Name of Development:
Local Jurisdiction:
Purchase Price:
Date of Purchase:
RECITALS
This Resale Restriction Agreement and Option to Purchase
("Agreement") is entered into as of the day of ,
19 , by and between the Housing Authority of the County of
Marin (the "Authority") and ("Owner")
regarding certain improved real property located at
, California (the "Premises").
A. The Premises are described more fully on Exhibit A
attached hereto and incorporated herein by reference and are
subject to the terms and conditions set forth in this Agreement.
B. The Premises are being made available for purchase by
an eligible moderate -income purchaser at a below-market purchase
price pursuant to the Below Market Rate Home Ownership Program
("Program") administered by the Authority on behalf of the above-
named Local Jurisdiction ("City").
Rev. 1/94
C. Owner is an eligible moderate -income purchaser under
the Program (defined below), intends to live in the Premises as
an owner -occupant and agrees to maintain the Premises as Owner's
principal residence.
D. In order to maintain and preserve the Premises as
housing affordable to eligible moderate -income purchasers, it is
necessary to restrict the use and resale price of the Premises by
the occupancy and resale controls. Such controls prevent initial
and subsequent purchasers from using the property for purposes
incompatible with the Program and realizing unwarranted gains
from sales of the Premises at unrestricted prices. The terms and
conditions of this Agreement provide the necessary occupancy and
resale controls to ensure that the Premises are used, maintained
and preserved as housing affordable to eligible moderate -income
purchasers.
E. The Premises subject to occupancy and resale controls
constitute a valuable community resource by providing decent,
safe and sanitary housing to moderate -income purchasers who
otherwise would be unable to afford such housing. To protect and
preserve this resource it is necessary, proper and in the public
interest for the Authority to administer the occupancy and resale
controls by means of this Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE SUBSTANTIAL ECONOMIC
BENEFITS INURING TO OWNER AND THE PUBLIC PURPOSES TO BE ACHIEVED
UNDER THE PROGRAM, OWNER HEREBY GRANTS TO THE AUTHORITY THIS
OPTION ON THE FOLLOWING TERMS AND CONDITIONS.
1. Program Conditions.
Owner agrees and acknowledges that the Authority's
acceptance of Owner's participation in the Program and purchase
of the Premises is conditioned upon Owner's continuing occupancy
of the Premises. Owner shall use and maintain the Premises as
Owner's principal residence. Without limiting the generality of
the foregoing, any absence from the Premises by Owner for a
period of sixty or more consecutive days shall be deemed an
abandonment of the Premises as the principal residence of Owner,
in violation of the conditions of this paragraph. Upon request
of the Authority, Owner shall certify Owner's continuing
compliance with Program conditions and provide such documents and
other evidence as may be requested to verify Owner's compliance.
2. Grant of Option to Purchase.
Owner hereby grants and gives to the Authority a right to
purchase all of Owner's right, title and interest in and to the
Premises upon the occurrence of events specified in this
Agreement ("Option"), subject to the terms and conditions
contained herein.
Rev. 1/94
2
3. Assignment of the Option.
The Authority may assign the Option to another government
entity or to a moderate -income purchaser who meets the
eligibility qualifications established by the Authority under the
Program. The Authority's assignment of the Option shall not
extend any time limits contained herein with respect to the
exercise period of the Option or the period within which the
Premises must be purchased. As used in this Agreement, the term
"Authority" shall mean the Authority and any assignee to which it
has assigned the Option under this paragraph.
4. Events Giving Rise to Right to Exercise tion.
The Authority shall have the right to exercise its Option
upon the occurrence of any of the following events (an "Option
Event"):
a. Receipt of a Notice of Intent to Transfer (defined in
paragraph 5 below);
b. Any actual, attempted or pending sale, conveyance,
transfer, lease or other attempted disposition of the Premises or
of any estate or interest therein, except as provided in
paragraph 15 below;
c. Any actual, attempted or pending encumbrance of the
Premises, including without limitation by way of mortgage or deed
of trust, or by judgment, mechanics, tax or other lien, except as -
provided in paragraph 16 below;
d. Recordation of a notice of default and/or notice of sale
pursuant to California Civil Code section 2924 (or successor
provisions) under any deed of trust or mortgage with a power of
sale encumbering the Premises;
e. Commencement of a judicial foreclosure proceeding
regarding the Premises;
f. Execution by Owner of any deed in lieu of foreclosure
transferring ownership of the Premises; and
g. Commencement of a proceeding or action in bankruptcy,
whether voluntary or involuntary, pursuant to Title 11 of the
United States Code or other bankruptcy statute, or any other
insolvency, reorganization, arrangement, assignment for the
benefit of creditors, receivership or trusteeship, concerning the
Owner.
Rev. 1/94 3
13
h. Any violation by Owner of the conditions set forth in
paragraph 1 above.
5. Method of Exercisina the 02tion.
a. Notice of Intent to Transfer. If Owner desires to sell,
convey, transfer, lease, encumber or otherwise dispose of the
Premises or of any estate or interest therein, Owner shall notify
Authority in writing to that effect (the "Notice of Intent to
Transfer"). The Notice of Intent to Transfer shall also state
the street address of the Premises, Owner's full name or names,
the address and telephone number at which Owner shall be
contacted if not at the Premises, and shall be delivered
personally or deposited in the United States mail, postage
prepaid, first class, certified -return receipt requested,
addressed to the Housing Authority of the County of Marin,
P.O. Box 4282, San Rafael, CA 94913, Attention: Executive
Director. The Notice of Intent to Transfer shall be in
substantially the form attached hereto and incorporated herein as
Exhibit B.
b. Notice of Exercise. Upon the occurrence of any Option
Event, the Authority may exercise its Option by delivering notice
to Owner that it will exercise such Option pursuant to the terms
of this Agreement ("Notice of Exercise"). The Notice of Exercise
may be in the form attached hereto and incorporated herein as
Exhibit C, or in such other form as the Authority may from time
to time adopt. The Notice of Exercise shall be delivered by
deposit in the United States mail, postage prepaid, first class,
addressed to Owner at the Premises, or at such other address as
may be indicated on the Notice of Intent to Transfer, and
delivery shall be deemed effective on the date of deposit. If
the Option Event relates to the potential foreclosure of a
mortgage under paragraphs 4d, a or f, then the Authority shall
also deliver the Notice of Exercise to the mortgagee or
beneficiary under such mortgage, at such mortgagee's or
beneficiary's address of record in the Office of the Recorder of
the County of Marin.
c. Notice of Consent to Transfer. If the Authority does
not exercise the Option, it may give its consent to the
occurrence of the Option Event ("Consent to Transfer"), which
consent shall be conditioned upon the proposed transferee's or
encumbrancer's assumption of Owner's duties and obligations under
this Agreement in writing, or execution of an agreement
substantially similar to this Agreement, within thirty (30) days
after the Consent to Transfer has been delivered to Owner. If
the proposed transferee or encumbrancer fails to assume this
Agreement or execute and deliver a substantially similar
agreement to the Authority within the thirty (30) day period,
then the Consent to Transfer shall expire and the Authority may
exercise the Option as if no Consent to Transfer had been
Rev. 1/94 4
delivered.
d. Time Period for Notice. The Authority must deliver a
Consent to Transfer, if applicable, not later than sixty (60)
days after the date that it receives notification of an Option
Event. The Authority must deliver a Notice of Exercise, if
applicable, on such date which is the later to occur of the
following dates: (1) sixty (60) days after the date that the
Authority receives notification of an Option Event or (2) fifteen
(15) days after a Consent to Transfer has expired. For purposes
of computing commencement of the delivery periods, the Authority
shall be deemed to have notification of an Option Event on the
date that it actually receives a written Notice of Intent to
Transfer, notice of default, summons and complaint or other
pleading, or other writing specifically stating that an Option
Event has occurred. The Authority shall have no obligation to
deliver a Notice of Exercise or Consent to Transfer, and the
applicable time period for exercise of the Option shall not
commence to run, unless and until it has received notification of
an Option Event in the manner specified in this subparagraph. If
there is a stay or injunction imposed by court order precluding
the Authority from delivering its Consent to Transfer or
exercising the Option within the applicable time period, then the
running of such period shall cease until such time as the stay is
lifted or injunction dissolved and the Authority has been given
written notice thereof, at which time the period for delivery of
a Consent to Transfer or exercise of the Option shall again begin
to run.
e. Notice of Abandolnent. If the Authority fails to
deliver a Notice of Exercise or Consent to Transfer within the
above -stated time periods, then the Option shall terminate and
have no further force and effect. Thereafter, upon request by
Owner, the Authority shall cause to be filed for recordation in
the Office of the Recorder of the County of Marin a notice of
abandonment, which shall declare that the provisions of the
Option are no longer applicable to the Premises. If the
Authority fails to record a notice of abandonment, the sole
remedy of Owner shall be to obtain a judicial order instructing
such a recordation, and Owner shall have no right to damages
against the Authority for failure to record such notice promptly.
6. Right to Reinstatement.
If the Option Event is the recordation of a notice of
default, then the Authority shall be deemed to be Owner's
successor in interest under California Civil Code section 2924c
(or successor sections) solely for purposes of reinstatement of
any mortgage on the Premises that has led to the recordation of
the notice of default. As Owner's deemed successor in interest,
the Authority shall be entitled to pay all amounts of principal,
interest, taxes, assessments, insurance premiums, advances,
Rev. 1/94 5
15
costs, attorneys' fees and expenses required to cure the default.
If the Authority exercises the Option, then any and all amounts
paid by the Authority pursuant to this paragraph shall be treated
as Adjustments to the Resale Price for the Premises, as defined
in paragraph 11, below.
7. InsAection of Premises.
After delivering a Notice of Exercise, the Authority shall
be entitled to inspect the Premises one or more times prior to
the close of escrow to determine the amount of any Adjustments to
the Resale Price. Before inspecting the Premises, the Authority
shall give Owner not less than forty-eight (48) hours written
notice of the date, time and expected duration of the inspection.
The inspection shall be conducted between the hours of 9:00 a.m.
and 5:00 p.m., Monday through Friday, excluding court holidays,
unless another date and time is mutually agreed to by the
parties. Owner shall make the Premises available for inspection
on the date and at the time specified in the Authority's request
for inspection.
8. Escrow.
Promptly after delivering a Notice of Exercise, the
Authority shall open an escrow account for its purchase of the
Premises. Close of escrow shall take place on such date which is
the later to occur of the following: (a) sixty (60) days after a
Notice of Exercise has been delivered, or (b) ten (10) days after
Owner has done all acts and executed all documents required for
close of escrow. Prior to the close of escrow, the Authority
shall deposit the Resale Price as defined in paragraph 10 below,
plus or minus any Adjustments as defined in paragraph 11 below.
Closing costs and title insurance shall be paid pursuant to the
custom and practice in the County of Marin at the time of the
opening of escrow, or as may be provided otherwise by mutual
agreement. Owner agrees to do all acts and execute all documents
necessary to enable the close of escrow and transfer of the
Premises to the Authority.
9. Proceeds of Escrow; Removal of Exceptions to Title.
Prior to close of escrow, Owner shall cause the removal of
all exceptions to title to the Premises that were recorded after
the date of this Agreement. All amounts deposited into escrow by
the Authority shall be applied first to the payment of any and
all liens and encumbrances recorded against the Premises, and
thereafter to the payment of escrow fees and closing costs. Any
amounts remaining after the amounts deposited into escrow by the
Authority have been so applied shall be paid to Owner upon the
close of escrow. If the amounts deposited into escrow by the
Authority are insufficient to satisfy all liens and encumbrances
recorded against the Premises, then Owner shall deposit into
Rev. 1/94 6
1�
escrow such additional sums as may be required to remove said
liens and encumbrances. In the event that the Authority agrees
to proceed with close of escrow prior to the date that Owner has
caused all exceptions to title recorded after the date of this
Option to be removed, then Owner shall indemnify Authority from
any and all costs, expenses or liabilities (including attorneys'
fees) incurred or suffered by Authority that relate to such
exceptions and their removal as exceptions to title to the
Premises.
10. Resale Price.
Prior to adjustment pursuant to paragraph 11, the resale
price of the Premises shall be the lowest of ("Resale Price")
a. Median Income.' The original price paid by Owner for
acquisition of the Premises pursuant to the Program ("Base
Price") increased (but not decreased) by an amount, if any, equal
to the Base Price multiplied by the percentage increase in the
median household income for the San Francisco Primary
Metropolitan Statistical Area (PMSA)--San Francisco, San Mateo
and Marin Counties --published by the Department of Housing and
Urban Development, Office of Economic Affairs, Economic and
Market Analysis Division ("Median Income") between the date of
this Agreement and the date that the Authority receives
notification of an Option Event.
b. Index Price. The Base Price increased (but not
decreased) by an amount, if any, equal to the Base Price
multiplied by the percentage increase in the Consumer Price Index
for All Urban Consumers for the San Francisco Bay Area published
by the U.S. Department of Labor, Bureau of Labor Statistics
("Index") between the date of this Agreement and the date that
the Authority receives notification of an Option Event.
c. Fair Market Value. The fair market value of the
Premises as determined by an appraiser selected and paid for by
Owner and approved in writing by the Authority.
d. Resale Price Worksheet. To compute the Resale Price,
the Authority may use the Resale Price Worksheet attached as
Exhibit D hereto, or such other form as the Authority may from
time to time adopt.
11. Ad-insatments to Resale Price.
The Resale Price shall be adjusted by the following
("Adjustments"):
a. Capital Improvements. An increase for capital
improvements made to the Premises by Owner provided that the
amount of said improvements had been previously accepted in
Rev. 1/94
7
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writing by the Authority after original written documentation of
the cost was provided to the Authority for verification. The
amount of the Adjustment shall equal the original cost of any
capital improvements depreciated in a straight-line basis based
upon the estimated useful life of the improvement stated in the
Authority's prior written acceptance of said improvement.
b. Damages. A decrease by the amount necessary to repair
damages to the Premises, if any, and to place the Premises into
saleable condition as reasonably determined by the Authority,
including amounts attributed to cleaning, painting, replacing
worn carpeting and draperies, making necessary structural,
mechanical, electrical and plumbing repairs and repairing or
replacing built-in appliances and fixtures.
C. Advances by Authority. A decrease in an amount equal
to the sum of all costs advanced by the Authority for the payment
of mortgages, taxes, assessments, insurance premiums, homeowner's
fees and/or associated late fees, costs, interest, attorneys'
fees, pest inspections, resale inspections and other expenses
related to the Premises, which Owner has failed to pay or has
permitted to become delinquent.
12. Prioritv and Effectiveness of the 02Lion.
a. Recordation. This Agreement shall be filed for
recordation in the Office of the Recorder of the County of Marin
prior to any sale, conveyance, transfer or other disposition of
the Premises, or of any estate or interest therein, by Owner.
The Option shall have priority over any subsequent sale,
conveyance, transfer, lease or other disposition or encumbrance
of the Premises, or of any estate or interest therein. Except as
otherwise provided in paragraph 13a, the exercise of the Option
by the Authority at any time and from time to time shall not
extinguish the Option or cause a merger of the Option into any
estate or other interest in the Premises, and the Option shall
continue to exist and be effective with respect to the Premises
against any subsequent owner in accordance with the terms and
conditions hereof.
b. Request for Notice of Default,. The Authority shall file
a Request for Notice of Default for recordation in the Office of
the Recorder of the County of Marin promptly upon execution of
this Agreement (see Exhibit E).
13. Survival of Option Upon Transfer,.
a. In General. The Authority's rights to exercise the
Option shall survive any transfer of the Premises by Owner. The
Option may be exercised against the Premises whether owned,
possessed or occupied by (i) an eligible moderate -income
purchaser, (ii) any successor, transferee, assignee, heir,
Rev. 1/94
A
Vq
executor, or administrator of an eligible moderate -income
purchaser, including a debtor-in-possession, debtor or trustee
pursuant to Title 11 of the United States Code, or (iii) any
person owning, possessing or occupying the Premises who does not
meet the eligibility qualifications established by the Authority
under the Program (collectively all referred to and defined
herein as "Owner"). Notwithstanding the foregoing, the Option
shall not survive (i) the sale and transfer of the Premises to a
third party purchaser pursuant to a judicial or non -judicial
foreclosure or a deed -in -lieu of foreclosure under a•power of
sale contained in a mortgage or deed of trust recorded against
the Premises in the Office of the Recorder of the County of Marin
on or prior to the date of recordation of this Agreement,
provided that the Authority has received timely notice of such
Option event and has failed to either reinstate said mortgage or
deed of trust or exercise its Option, or (ii) the recording of
Owner's conveyance of the Premises to the Authority, or its
assignee, provided the conveyance is in accordance with the terms
of this Agreement.
b. HUD Insured Mortaaaes. If Owner has acquired the
Premises by a mortgage insured by the Secretary of the United
States Department of Housing and Urban Development, and a notice
of default has been recorded pursuant to California Civil Code
section 2924 (or successor provisions), this Option shall
automatically terminate if title to the Premises is transferred
by foreclosure or deed -in -lieu of foreclosure, or if the insured
mortgage is assigned to the Secretary.
14. voidable Transfers.
As long as the Option has not been abandoned pursuant to
paragraph 5e, any actual or attempted sale, conveyance, transfer
or other disposition of the Premises, or of any estate or
interest therein, in violation of the terms and conditions of
this Option, shall be voidable at the election of the Authority.
15. Permitted Transfers.
The following transfers of title to the Premises, or of any
estate or interest therein ("Permitted Transfers"), will not
authorize the exercise of this Option: a good -faith transfer by
gift, devise or inheritance to Owner's spouse or issue; a taking
of title by a surviving joint tenant; a court-ordered transfer of
title to a spouse as part of a divorce or dissolution proceeding;
or an acquisition of title, or of any interest therein, in
conjunction with marriage. Notwithstanding any Permitted
Transfer, the Option shall remain effective with respect to the
Premises.
16. Permitted Encumbrances.
This Option shall not become exercisable as the result of
Rev. 1/94 9 11
Owner's encumbering the Premises for the purpose of securing
financing to purchase the Premises pursuant to the Program, or to
refinance existing indebtedness incurred to purchase the Premises
pursuant to the Program, in an amount not to exceed the
outstanding principal amount of such existing indebtedness.
17. Obliaations of Owner After Option Abandonment.
If the Authority records a notice of abandonment of the
Option, then the Premises may be sold by Owner to a third party
without restriction as to price. Upon such sale, Owner shall pay
to Authority an amount equal to eighty-five percent (85%) of the
difference between (a) the actual sales price net of reasonable
and customary real estate commissions paid (such commissions not
to exceed six percent (6%) of the actual sales price), and (b)
the Resale Price plus Adjustments. This amount shall be paid to
the Authority upon close of escrow on the sale of the Premises,
or upon execution of a contract of sale, whichever shall first
occur. Owner shall not receive any proceeds from the sale unless
and until the Authority has been paid in full the amount
determined pursuant to this paragraph.
18. Limits on Liability.
In no event shall the Authority become liable or obligated
in any manner to Owner by reason of the assignment of the Option,
nor shall the Authority be in any way liable or obligated to
Owner for any failure of the Authority's assignee to consummate a
purchase of the Premises or to comply with the terms of this
Option, or any escrow instructions or agreement for the purchase
of the Premises.
19. Insurance Proceeds and Condemnation Award.
In the event the Premises are destroyed and insurance
proceeds are distributed to Owner instead of being used to
rebuild the premises, or in the event of condemnation, if the
proceeds thereof are distributed to Owner, any surplus of
proceeds remaining after payment of the encumbrances of the
premises shall be distributed as follows: that portion of the
surplus up to, but not to exceed the net amount that Owner would
have received pursuant to paragraph 9 had the Authority exercised
its Option on the date of the destruction or condemnation
valuation date shall be distributed to Owner, and the balance of
such surplus, if any, shall be distributed to the Authority.
20. Term of Option.
The restrictions contained herein shall continue for a
period of thirty (30) years from the date that this Agreement is
filed for record in the Office of the Recorder of the County of
Marin.
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21. Notices.
Except as otherwise specified in this Agreement, all notices
required to be sent pursuant to this Agreement shall be made by
personal delivery or by deposit in the United States mail, first
class postage prepaid, and shall be deemed to have been delivered
and received on the date of personal delivery or five (5) days
after deposit in the mail, if sent to the following addresses:
AUTHORITY:
OWNER:
Housing Authority of the County of Marin
Post Office Box 4282
San Rafael, California 94913
Attn: Executive Director and BMR Program
at the address of the Premises
The addresses above may be changed by notice given pursuant to
this section.
22. Attornevs' fees.
If either party is required to initiate legal proceedings to
enforce its rights under this Agreement, the prevailing party in
such action shall be entitled to an award of reasonable
attorneys' fees and costs in addition to any other recovery under
this Agreement.
23. SAecific Performance.
Owner acknowledges that any breach in Owner's performance of
Owner's obligations under this Agreement or in the transfer of
the Premises to the Authority shall cause irreparable harm to the
Authority. Owner agrees that the Authority is entitled to
equitable relief in the form of specific performance upon its
exercise of the Option, and that an award of damages shall not be
adequate to compensate the Authority for Owner's failure to
perform according to the terms of this Agreement.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to
be executed this day of , 19_.
Rev. 1/94
OWNER(S):
11
aJ
STATE OF CALIFORNIA }
COUNTY OF MARIN
On
before
me, personally appeared
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.
Witness my hand and official seal.
Signature of Notary
Rev. 1/94
12
1�—
CERTIFICATE OF ACCEPTANCE
(Pursuant to Government Code §27281)
This is to certify that the interest in real property conveyed by
the Resale Restriction Agreement and Option to Purchase dated
from
to the Housing Authority of the County of Marin, a political
corporation and/or governmental agency, is hereby accepted by the
undersigned officer or agent on behalf of the Housing Authority
of the County of Marin pursuant to authority conferred by
resolution #10-81, dated 5/19/81; and the grantee consents to
recordation thereof by its duly authorized officer.
Dated:
Rev. 1/94
by
JANET MILLER SCHODER, Executive Director
Housing Authority of the County of Marin
13
013
EXHIBIT A
Legal Description
ATTENTION:
TO BE INSERTED PRIOR TO CLOSING
Exhibit A, page 1 of 1
EXHIBIT B
VIA CERTIFIED MAIL - RETURN RECEIPT REOUESTED
To: Housing Authority of the County of Marin
Post Office Box 4282 ,
San Rafael, California 94913
Date:
Re: Notice of Intent to Transfer
The undersigned Owner(s), ,
hereby gives notice of his/her inte to transfer�roperty
located at ( e "Premises") Owner may
be contacted at the Premises or at—the ND11owing *dress:
Owner's daytime telephon
The proposed transf
person(s):
Name:
Address:
Telephond
The propo
Other
Specify:
s is to the following
(check one)
Signature
Exhibit B, page 1 of 1
0-S
EXHIBIT C
To:
Owner or Transferee
Address
Re: Notice of Exercise
Date:
The Housing Authority of the County of Marin N
hereby gives notice that it is exercising its option
the real property located at
n)
ase
option has been granted to the Authori ursuant to the Resale
Restriction Agreement and Option to Purch a between Owner and
the Authority dated � and 40corded A'
option to purchase the real
An escrow for the purchase w
Title Company of Marin.
by
Its Au
assigned its
st American
ity of the County of Marin
presentative
S* A* M* P* L* E
Exhibit C, page 1 of 1
MARtN
HOUSING
Making 1lnutbg More AIlor.
,ill N. Sin Ircdro Road
Ptml Off cs: Isar 4282
San Rafal Califnntin 94913
415/472-4030
(FAX) 415/472-2186
%aeeufive Direelow
Janet Miller Scluwler
Deputy 0i1ecuw
Michael D. Kelleher
EXHIBIT "D"
BHR RE -SALE PRICE WORKSHEET
Date:
Name:
Address:
Purchase Price:
Date of Purchase:
Months Owned:
% / annum
% / annual
C. FAIR MARKET VALUE
The fair market value, if unrestricted by the DMR Deed Restrictions, is estimated to be in excess of
the above BMR Re -Sale Price calculations, and thus would not govern.
AS OF THIS DATE, THE BMR RE -SALE PRICE IS t BASED ON
Exhibit D, page 1 of 1
s
W]
i�
% / annum
% / annual
C. FAIR MARKET VALUE
The fair market value, if unrestricted by the DMR Deed Restrictions, is estimated to be in excess of
the above BMR Re -Sale Price calculations, and thus would not govern.
AS OF THIS DATE, THE BMR RE -SALE PRICE IS t BASED ON
Exhibit D, page 1 of 1
s
W]
Order No.
Escrow No.
Loan Na
WHEN RECORDED MAIL TO:
EXHIBIT "E"
SPACE ABOVE THIS LINE FOR RECORDERS USE ONLY
Request For Notice Under Section 2924b Civil Code
In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any Notice of Default and a copy of an•,
tice of Sale under the Deed of Trust recorded as instrument No.
19 , in Book , Page , Off icia
cords of County, California, and describing land therein as
ecuted by ., asTrusto
which is named a
!neficiary, and as Trustei
mailed to
Number and Street
City and State
IOTICE: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NOTICE OF SALE WILL BE SENT ON LY TO TH
)DRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS CHANGES, A NEW REQUEST MUS
RECORDED.
ATE OF CALIFORNIA
IUNTY OF
I
Ess•
A
r
fore me, the undersigned, a Notary Public in and for said State, personally
peared
rsonally known to me (or proved to me on the basis of satisfactory evidence) to
the person(s) whose name(s) is/are subscribed to the within instrument and
knowledged to me that he/she/they executed the same.
TNESS my hand and official seal.
gnature
Exhibit E, page 1 V
of 1
(This area for official nolanal seal)1 ev. 1