HomeMy WebLinkAboutCD 1200 Irwin Street Project BMR� Agenda Item No: 4.b
SAN RAFAEL
Meeting Date: July 17, 2017
THE CITY WITH A MISSION
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community Development
Prepared by: Paul A. Jensen City Manager Approval:
Community Development Director
TOPIC: AFFORDABLE HOUSING AGREEMENTS FOR 1200 IRWIN STREET PROJECT
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN: A) AN AMENDMENT
TO THE EXECUTED BELOW MARKET RATE HOUSING AGREEMENT
ADDRESSING "FOR -SALE" BMR UNITS; AND B) A NEW BELOW MARKET RATE
AGREEMENT ADDRESSING BMR RENTAL/LEASE OPTIONS FOR THE
MISSION/IRWIN CARRIAGE HOUSES RESIDENTIAL DEVELOPMENT AT 1200
IRWIN STREET; APN 014-013-05
RECOMMENDATION:
Adopt Resolution authorizing the City Manager to execute two Below Market Rate Housing Agreements
for the Mission/Irwin Carriage Houses at 1200 Irwin Street.
BACKGROUND:
History
Section 14.16.030 of the City of San Rafael Zoning Ordinance requires that all new development
projects contribute to the City's affordable housing stock. San Rafael General Plan Housing Element
Policy H-18 requires that any units created pursuant to the City affordable housing requirements remain
affordable for a minimum of 55 years. The affordable housing requirement applies to both residential
rental and ownership developments. Historically, Economic Development Department staff managed
the City's Below Market Rate ("BMR") program. However, in 2016, this management shifted to the
Marin Housing Authority (MHA). The City compensates MHA for this management service.
In July 2007, the City certified a Final Environmental Impact Report (EIR) and approved a Rezoning,
Design Review Permit and Vesting Tentative Map for the Mission/Irwin Carriage Houses at 524 Mission
Avenue (now 1200 Irwin Street). These actions approved the development of 15 residential townhouse
units. The Vesting Tentative Map allows the subdivision of the property so that each townhouse unit
can be independently sold. These planning approvals have remained valid since 2007, through a
series of State -mandated time extensions. Within the past year, the former residential buildings located
on site were demolished and construction commenced on the 15 -unit residential development. At
FOR CITY CLERK ONLY
File No.: 229
Council Meeting: 07/17/2017
Disposition: Resolution 14366
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
present, the residential project is about 75-80% complete. It is projected that the development will be
completed for occupancy by late summer.
The project is approved for 15 residential units of three bedrooms; two of the units are required to be
reserved as below market rate (BMR) units. The property zoning and General Plan 2020 sets a
maximum density for the site that is capped at 13 dwelling units. However, the project received a
density bonus of two units pursuant to San Rafael Municipal Code Section 14.16.030 and California
Government Code Section 65915 (State of California Density Bonus Law). The density bonus was
allowed in exchange for the project providing two, on-site affordable units. The project approvals were
conditioned to require that the project owner enter into a BMR Agreement to ensure that the two BMR
units are secured for a term of 55 years.
First Below Market Rate (BMR) Agreement
On June 20, 2016, the City Council adopted Resolution No. 14132, which authorized the execution of
the required BMR Agreement for the Mission/Irwin Carriage Houses Project. At the request of the
property owner, the BMR Agreement was drafted to address two options: a) the individual sale of the
two townhome units; or b) management of the property for rental/lease of the two townhome units. For
this reason, the BMR Agreement was executed to cover the following for -sale and rental/lease
provisions:
Should the property owner decide to hold a single ownership of the site as a rental project, one
of the two BMR units is required to be affordable to a very low-income household earning no
more than 50% of the County median income, and the second unit is required to be affordable
to a low-income household earning no more than 65% of the County median income. The
projected 2007 rent levels for the three -bedroom units would be approximately $1,365/month
for the very low income unit and $1,798/month for the low income unit. The rent can be
increased once a year pursuant to the increase in the County median income figures prepared
by the US Housing and Urban Development Department and the California Department of
Housing and Community Development.
• If and when the townhome units are individually sold for ownership, the project would convert to
the ownership provisions of the agreement and would be required to provide both units
affordable to low -Income households, earning no more than 65% of the county median income.
The anticipated sale price for the two would be $288,200, respectively.
The BMR Agreement is recorded with the property deed and runs with the land for a period of 55 years
from the date of execution. If the BMR units are sold, MHA administers the initial sale and any resales.
Regarding the rental/lease of the units, the first BMR Agreement anticipated the Developer would make
the decision on sale or rental prior to the Certificate of Occupancy and that decision would remain in
effect for the 55 year term of the BMR restriction. The first BMR Agreement provided for the ownership
restrictions to be removed if the Developer chose to rent the units. If the Developer decided to rent the
development, it was intended that a second BMR Agreement would ultimately be drafted and executed
to address the more detailed elements of the rental provisions and reporting. As presented below, the
second BMR rental/lease agreement has been drafted. On behalf of the City, MHA administers and
monitors the annual reporting by the property owner of the rent and household income of the affordable
rental units.
Master Lease to Dominican University
Earlier this year, the developer/property owner entered into an agreement with Dominican University to
master lease the entire development (15 units including the two affordable units) for student housing.
None of the units, including the affordable units, would be available to the general public for rent/lease.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
While Dominican University would operate the units somewhat like a dormitory, the arrangement is
more akin to a shared rental of four students per unit. The 15 units would remain unchanged as
standalone dwelling units and unlike a dormitory, there is no centralized dining or common area
facilities. The master lease is proposed for a period of five (5) years with provisions that allow for an
additional five-year extension. It should be noted that there is nothing in the City approvals of this
project that would prohibit this master lease and unit rentals for student housing.
The developer/property owner and Dominican University have requested flexibility in the BMR
Agreement for rental/lease to address this master lease and the student housing arrangement. In
response, MHA has assisted the City in addressing this request with two proposed actions: 1)
execution of a single "amendment" to the initial BMR Agreement to ensure that the "for sale" provisions
for the two BMR units continue during the time period the units are rented; and 2) execution of a new,
second BMR Agreement that covers the BMR rental/lease obligation. Regarding the former, the
proposed amendment to the initial BMR Agreement would amend the current language to clarify that
the affordability restrictions for the ownership option to assure the two units are restricted for 55 years
under any scenario. Regarding the latter, the second BMR Agreement would cover the two rental
options, the below-market rate rental of two units (as initially approved), and the student rental option to
be implemented during the master lease by Dominican University. Under the student rental option, the
BMR would allow Dominican University to:
1. Use student financial aid submissions to identify and income qualify the lower income students;
2. Divide the affordable rent that would be required for a four person household for each of the two
BMR units among four students. The eight lower income students would pay no more than one
quarter of the allowable affordable rent that would be required for each BMR unit; and
3. Allow the four very low-income and four low-income students (total of eight students) to reside in
anv unit in the development, rather than housing all of the income qualified students in the two
specifically defined affordable units.
In the event the master lease for student housing terminates and the 15 townhome units become
available for general public sale or rent/lease, the initial BMR requirements covering rental/lease or sale
of two BMR units would continue to be required through the remaining life of the agreement.
ANALYSIS:
The developer/property owner has had several discussions with MHA and City staff about the "for sale,"
rental/lease, and student housing options covered under the two BMR Agreements. MHA and City staff
offers the following comments:
• Regarding the student housing option, the proposal will not create an undue administrative
burden on MHA/the City. As is the case under the current, executed BMR Agreement, the
proposed agreement language ensures that all annual reporting of rents and household income
certification will be submitted to MHA by the property owner.
• The master lease proposal and student housing option would parse the rent among eight, very
low-income and low-income students and the students could reside in any unit. This proposal
has merit as it disperses the students throughout the 15 unit development. The designated
BMR rental units would remain if and when the master lease terminates with Dominican
University.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
• In the event the master lease for student housing terminates, the terms of the new BMR
Agreement and the initial BMR Agreement with the amendment would continue to be in effect.
This will ensure that two BMR units are either rented/leased or sold to a qualifying household
through the remaining life of the agreements.
City staff is concerned that for the duration of the master lease, the student housing option
would remove two affordable rental units (and the entire 15 -unit project) from the general public,
and thus would remove potential workforce housing. Although the project and its location
provide an optimum opportunity for workforce housing, there is nothing in the City approvals of
this project that limits the sale or occupancy of the 15 units to the workforce population. Further,
there is nothing in the City approvals that would provide the City with any discretion over the
master lease that has been negotiated; it is strictly a civil landlord/tenant matter. Nonetheless,
the City has full discretion over the proposed changes to the BMR Agreement(s). Conceivably,
if the interim loss of a workforce housing opportunity is a concern of the City Council, the
Council could deny this request. Such an action would likely require that the property owner
and Dominican University renegotiate the master lease to exclude the two designated BMR
units from the lease. However, staff has carefully considered this issue and finds that there is
merit and support for the student housing option for the following reasons: a) General Plan 2020
Housing Element Policy H-11 supports house sharing as an efficient use of the housing stock;
b) there is an increased need for student housing in the community and the subject site is in
very close proximity to the Dominican University campus; and c) this proposal may indirectly
help local renters by reducing the number of students competing for other available housing in
the local rental market. Dominican University staff has indicated that a high percentage of their
resident students live off campus in the surrounding community.
FISCAL IMPACT:
There is no cost to the City for the proposal with the exception of the MHA staff time for program
administration of the for -sale units. The Agreement requires the developer/property owner to pay an
annual monitoring fee of $100.00 per for -sale BMR unit. The Developer has also paid for the staff time
and legal fees associated with the preparation of multiple BMR Agreements.
The City contracts with MHA to administer the City's affordable program for rental developments
pursuant to a service contract dated May 2, 2016. The net annual cost of the MHA rental
administration contract is about $15,000 per year and is funded by the affordable housing fees
collected by the Community Development Department from a commercial development linkage fee and
affordable housing in lieu fee. The affordable housing in -lieu fees are stored in Fund 243.
OPTIONS:
The City Council has the following options to consider on this matter:
• Approve the attached Resolution to approve the BMR Agreements between the property owners,
the Marin Housing Authority, and the City of San Rafael and authorizing the City Manager to
execute the agreements.
• Deny the request and hold the property owner to the current BMR Agreement owner/rental
options. This action would require returning to the City Council with an amendment to the new
BMR Agreement for rental/lease of two units.
• Take no action and direct staff to return with additional information.
RECOMMENDED ACTION:
Adopt the Resolution
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
ATTACHMENTS:
1. Resolution
Exhibit A- Below Market Rate Housing Agreement Amendment Addressing "For -Sale" Units
Exhibit B- Below Market Rate Housing Agreement Addressing Rental/Lease Options
RESOLUTION NO. 14366
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING THE CITY
MANAGER TO SIGN: A) AN AMENDMENT TO THE EXECUTED BELOW MARKET
RATE AGREEMENT ADDRESSING "FOR SALE" BMR UNITS; AND B) A NEW BELOW
MARKET RATE AGREEMENT ADDRESSING BMR RENTAL/LEASE OPTIONS FOR THE
MISSION/IRWIN CARRIAGE HOUSE DEVELOPMENT AT
1200 IRWIN STREET (APN 014-013-05)
WHEREAS, on July 16, 2007 the San Rafael City Council certified a Final Environmental
Impact Report (FEIR) and approved a Rezoning (ZC06-002) from Medium Density Residential (MR2.5)
to Medium Density Residential (MR2) and an Environment al and Design Review Permit (ED06-24) and
Tentative Map (TS00-001) to allow the demolition of 10 units and construction of a new 15 -unit housing
development located at 524 Mission Ave (APN 014-013-05); and
WHEREAS, in 2016, the property address was changed to 1200 Irwin Street, to reflect the
project -approved configuration of the site and orientation of the new buildings; and
WHEREAS, the base density for the site is 13 dwelling units and the project received a density
bonus of 2 units pursuant to San Rafael Municipal Code Section 14.16.030 and California Government
Code Section 65915 in exchange for providing two, on-site affordable units; and
WHEREAS, on June 20, 2016, the City Council adopted Resolution 14132, which approved a
Below Market Rate (BMR) Agreement reserving two of the 15 townhome units for below market rate
sale. Although the new development is intended to be rented/leased, the developer/property owner has
agreed to provide one unit affordable to a very low income household (at 50% of County median income)
and one unit affordable to a low income household (at 65% of County median income). The BMR
Agreement also covers the below market rate rental of these units. This BMR Agreement was
subsequently executed on May 20, 2016; and
WHEREAS, in 2017, the developer/property owner entered into an agreement with Dominican
University to master lease the entire 15 -unit development for student housing. The developer/property
owner has requested flexibility in the BMR Agreement for rental/lease to address the master lease and
the student housing arrangement. As a result, the Marin Housing Authority, the City and the property
owner/developer have agreed to: a) amend the initially executed BMR Agreement to cover the "for sale"
provisions for the two BMR units; and b) execute a new, second BMR Agreement that covers two
rental/lease options (rental/lease of two BMR units, or rental to students collectively meeting the very
low- and low-income household qualifications); and
WHEREAS, the amendment to the initial, executed BMR Agreement and a second, new BMR
Agreement have been drafted. The draft agreements have been reviewed and approved by the City
Attorney as to content and form.
NOW THEREFORE BE IT RESOLVED that the City Manager is hereby authorized to
execute, on behalf of the City of San Rafael: a) an amendment to the BMR Agreement dated May 20,
2016, and a new, second BMR Agreement for the property located at 1200 Irwin Street, in a final form to
be approved by the City Attorney. The draft BMR Agreements are attached as Exhibits A and B.
I, Esther C. Beirne, 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 17' day of July 2017, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER C. BEIRNE, City Clerk
Attachments: Exhibits A & B
EXHIBIT A
BMR Agreement
Addressing "For Sale" Units
1200 Irwin Street
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL
City of San Rafael
Attn: City Clerk
1400 Fifth Avenue
San Rafael, CA 94901
No fee for recording pursuant to
Government Code Section 27383
JUL 5 2018
_CITY CLERK'S OFFICE
IIIlIII VIII VIII VIII I�il IIlIII I�III l�II! ILII IIT illi! VIII �I�I III
20118-00122024
Recorded REC FEE
Official Records
County of
Marin
RU N. BENSON
_ssor-Recorder
County Oerk
a
: 3PM 19 -Jun -2016 Page 1 of 7
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
AMENDMENT TO BELOW MARKET RATE HOUSING AGREEMENT
AND DECLARATION OF RESTRICTIVE COVENANTS
Project Name: Mission Irwin Carriage Houses
Location: 1200 Irwin Street -524 Mission Avenue, San Rafael (APN 014-013-05)
Developer: 524 Mission Street, LLC
This Amendment to Below Market Rate Housing Agreement and Declaration of Restrictive
Covenants (this "Amendment") is made and entered into as of August 14, 2017, among the CITY OF
SAN RAFAEL, a municipal corporation ("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 ("Marin Housing Authority"), and 524 MISSION STREET, LLC, a California limited
liability company, or any successor in interest ("Developer"), collectively the "Parties," with reference to
the following:
RECITALS
A. The Developer is the owner of certain real property located at 1200 Irwin Street, San
Rafael, County of Marin, California, which is more particularly described in attached Exhibit A
incorporated herein by this reference (the "Property").
B. The Parties entered into that certain Below Market Rate Housing Agreement and
Declaration of Restrictive Covenants dated May 20, 2016 and recorded July 26, 2016 as Instrument
Number 2016-0033359 in the Official Records of the County of Marin (the "BMR Agreement").
C. Under the BMR Agreement, the Developer has determined to initially rent the Affordable
Units and to record a BMR Rental Agreement against the Property.
D. The Parties desire to amend the BMR Agreement to ensure that the BMR Agreement and the
BMR Rental Agreement are consistent and will require the Developer to sell the Affordable Units in the
future as provided in the BMR Agreement. The Amendment to Below Market Rate Housing Agreement
and Declaration of Restrictive Covenants that will be recorded on the Property is in the form approved by
the San Rafael City Council on July 17, 2017.
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J 00 221
E. All capitalized terms not otherwise defined in this Amendment are as defined in the BMR
Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:
1. The Recitals set forth above are hereby incorporated into this Agreement by the Parties as
if fully and completely rewritten below
Section 13 of the BMR Agreement is hereby amended to read as follows:
Section 13. Release of Property from Agreement
(a) Covenant Running with the Land The covenants and conditions herein
contained shall apply to and bind, during their respective periods of fee ownership, Developer and
its heirs, executors, administrators, successors, transferees, and assignees having or acquiring any
right, title or interest in or to any part of the Property and shall run with and burden the Property
until terminated in accordance with this Section 13. Until the Property is released from the
burdens of this Agreement pursuant to this Section 13, the owners of fee title to the Property shall
expressly make the conditions and covenants contained in this Agreement a part of any deed or
other instrument conveying any interest in the Property.
(b) Completion of Construction.
(i) Affordable Units on Separate Parcels; Subdivision Public Report Issued.
If: (A) all Affordable Units have received a certificate of occupancy or final inspection; (B) all
Affordable Units are located on separate legal parcels; (C) the Developer has complied with the
provisions of this Agreement; and (D) a subdivision public report has been issued under
Business & Professions Code Section 11000 et seq. or successor provisions, then all parts of
the Property except the Affordable Unit Property may be released from the burdens of this
Agreement.
(ii) Affordable Units to be Rented. If the Affordable Units are to be rented,
then the BMR Rental Agreement shall be recorded against the Property, and the Property may
not be released from the burdens of this Agreement and the BMR Rental Agreement until the
expiration of the Density Bonus Term, as defined in the BMR Rental Agreement.
(c) Affordable Units Offered for Sale. If the Affordable Units are initially
offered for sale, each Affordable Unit offered for sale shall be released from the burdens of this
Agreement when it is: (i) sold to an Eligible Household in compliance with this Agreement; and
(ii) a Resale Agreement, Deed of Trust and Request for Notice of Default are recorded against the
Affordable Unit. Upon sale of all of the Affordable Units to Eligible Households as prescribed in
this Agreement or offered for sale to the Housing Authority pursuant to Section 7(g), the entire
Property shall be released from this Agreement, and the Agreement shall be released from record
against all portions of the Property.
(d) Recordation of Release. If the Developer believes that any portion of the
Property may be released from the burdens of this Agreement, the Developer shall specify the
parcels to be released and shall request the City and the Marin Housing Authority to execute and
2
885\0 1 \31 63043.1
6/30/2017
record the release in the Official Records of Marin Count) in substantially the form attached as
Exhibit "E" to this Agreement.
3. Except as modified by this Amendment, the BMR Agreement shall be unchanged and
shall remain in full force and effect
3. This Amendment may be signed in counterparts, each of which shall constitute one and
the same instrument.
IN WITNESS WHEREOF, the Parties have executed this Amendment by duly authorized
representatives, all on the date first written above.
DEVELOPER:
CITY:
524 Missio LC, a California limited City of San Rafael, a municipal corporation
liability c mpa
By: a By:
Managing Membe �Gt�s cit�n�,-r+� Ji &(�
y Manager
ATTEST:
MARIN HOUSING AUTHORITY: D-. City Clerk
Li rcl$ay LQr0.
Housing Authority of the County of Marin, a public
body, corporate and politi , created under the
Housing Aut ri aw State of California APPRO ED AS TO FORM:
By. By:
Lewis A. rdan Robert F. "Epstein
Executive Director City Attorney
3
885\01\2162012.1
6/30/2017
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land referred to is situated in the County of Marin, City of San Rafael, State of California,
and is described as follows:
Commencing at the corner formed by the intersection of the Northerly line of Mission Street
with the Easterly line of Irwin Street; running thence Northerly along the Easterly line of Irwin
Street 160 feet; running thence Easterly and parallel with Mission Street 165 feet to the
Westerly line of Park Avenue thence Southerly along said Line of Park Avenue 160 feet, more or
less, to the Northerly line of Mission Street, and thence Westerly along said last mentioned line
of Mission Street, 165 feet to the point of commencement.
885\01\2 162012.1
6/30/2017
A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF oa vV n
On 'Lk
1', before me, V/2 I (6t- N I �'� Notary Public,
personally appearefl 1--"/LVI(LrVy)A-) , who proved to me on the basis of
satisfactory evidence to be the person k<whose name Is a subscribed to the within instrument and
ackn ledge to me tha e sX/t)/y executed the same 1 1 / r/t�r authorized capacity), and that
by is/ /t it signature on the instrument the person or the entity upon behalf of which the
person(,s�acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
DALIA NIETO
Commission # 2047836
a -m Notary Public - California a
Z v"' Marin County n
V My Comm. Expires Nov 3, 2017
Name:
Notary Public
885\01\'-7162042.1
6/30/2017
A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF M Ar- 'h
On Autist 21 , 26 1 , before me, _( 4",o I T. Kazdr (.4 vt , Notary Public,
personally appeal��p� , who proved to me on the basis of
satisfactory evidence to be the personW whose nameW is/afe subscribed to the within instrument and
acknowledged to me that he/*hekkay executed the same in his/fir authorized capacity4es), and that
by his/Herftheir signaturgjrs) on the instrument the person(rr)r, or the entity upon behalf of which the
person(e) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
CAROL J. KAZARIAN
Commission # 2070835
Notary Public - California z
Z ' - Marin County D
My Comm. Expires Jun 15, 2018
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6/30/2017
— 4�f'tej'
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CA ir)���i i.
Notary.
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Marin
On �A I Z-1 I ul VO before me,
Lindsay Faye Lara, Notary Public
(insert name and title of the officer)
personally appeared J aywe S-scylut'Z
who proved to me on the basis of satisfactory evidence to be the person(,) whose name(d) is/are-
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/heOthsirauthorized capacity(i-*, and that by his/her/it6r signature(&) on the instrument the
person(s� or the entity upon behalf of which the person(ar) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
LINDSAY FAYE LARA
rCOMM. #2182818 z
0 m Notary Public • California e
�"� WaAlr—
Z Marin County
Signature -1 (Seal) Cow. Feb, to 2021
EXHIBIT B
BMR Agreement
Addressing Rental/Lease Options
1200 Irwin Street
RECORDING REQUESTED By and
WHEN RECORDED MAIL TO:
City of San Rafael
Attn: City Clerk
1400 Fifth Avenue
San Rafael, Ca 94901
No fee for recording pursuant to
Government Code Section 27383
REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS
(Below Market Rate Rental Unit Agreement; Density Bonus Law)
Development Name: Mission Irwin Carriage Houses
Location: 1200 Irwin Street -524 Mission Avenue, San Rafael (APN 014-013-05)
Developer: 524 Mission Street, LLC
This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement") is made and entered
into this day of , among the CITY OF SAN RAFAEL, a municipal
corporation ("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 ("Marin Housing
Authority"); and 524 MISSION STREET, LLC a California limited liability company, or any of their
successors in interest (collectively the "Developer"), collectively the "Parties," with reference to the
following:
A. The City has adopted a density bonus ordinance (Section 14.16.030.H of the San Rafael
Municipal Code) (the "Density Bonus Ordinance") to conform with state density bonus law (Government
Code Sections 65915 — 6591 8) (together "Density Bonus Law"). Density Bonus Law allows a density bonus,
concessions, and other regulatory incentives when a developer proposes to provide rental housing affordable to
Very Low Income or Low Income Households, as defined below.
B. Developer is the owner of certain real property located at 1200 Irwin Street, San Rafael,
County of Marin, California, which is more particularly described in attached Exhibit A incorporated herein by
this reference (the "Property"). In consideration of certain valuable land use and economic benefits conferred
by the City upon the Property under Density Bonus Law, Developer, for itself, its successors, heirs, grantees
and assigns, hereby agrees to comply with the requirements of Density Bonus Law as applied to the Property.
C. The Developer has received a discretionary approval from the City Council of the City of San
Rafael (Resolution 12315; the "Project Approvals") to construct a total of fifteen (15) residential
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condominium units on the Property (the "Development"). As part of the Development, Developer has sought
and agreed to construct two dwelling units affordable to Very Low and Low Income Households (the
"Affordable Units") for the Density Bonus Term as defined below. The two Affordable Units represent
fifteen percent (15%) of the thirteen (13) maximum units allowed by zoning prior to the application of the
density bonus.
D. Under Density Bonus Law, Developer has applied for, and the City has granted, the following
regulatory incentives in exchange for the Developer's provision of the Affordable Units: (1) a density bonus of
two units; and (2) reduced parking requirements, including tandem parking and a maximum of two spaces per
dwelling unit. The density bonus and parking reduction incorporated into the Development are collectively
"Incentives."
E. Density Bonus Law requires the City to ensure, and the Developer to agree to, continued
affordability of the Affordable Units for the Density Bonus Term. To ensure their continued affordability for
the Density Bonus Term, this Agreement shall be executed and recorded against the Property prior to issuance
of the Certificate of Occupancy for the Development.
F. Pursuant to San Rafael City Council Resolution 14132 adopted June 20, 2016, the Parties
entered into that certain Below Market Rate Housing Agreement and Declaration of Restrictive Covenants
dated May 20, 2016 and recorded July 26, 2016 as Instrument Number 2016-0033359 in the Official Records
of the County of Marin. (the "BMR Agreement"). The BMR Agreement requires the Developer to provide
two Affordable Units; if the Developer elected to initially rent the Affordable Units, the BNIlZ Agreement
requires one Affordable Unit to be affordable to Very Low Income Households and one Affordable Unit to be
affordable to Low Income Households for the Density Bonus Term as defined below. The B1\/IR Agreement
further requires that if the Developer elects to initially rent the Affordable Units, the Developer enter into a
BMR Rental Agreement. The Developer has elected to initially rent the Affordable Units. This Agreement
constitutes the BMR Rental Agreement.
G. Developer acknowledges and agrees that the Project Approvals provided adequate and proper
notice pursuant to Government Code -Section 66020 of Developer's right to protest any requirements for fees,
dedications, reservations, and other exactions as may be included in this Agreement, that no protest in
compliance with Section 66020 was made within ninety (90) days of the date that notice was given, and that
the period has expired in which Developer may protest any and all fees, dedications, reservations, and other
exactions as may be included in this Agreement.
H. Marin Housing Authority is authorized by law to participate in programs that provide housing
for households of very low, low, and moderate income. The City has contracted with Marin Housing Authority
to administer the City's affordable housing program.
I. Developer and Dominican University of California ("Dominican") have entered into a Master
Lease dated February 9, 2017, by the terms of which Dominican has agreed to lease the Development from the
Developer and to sublease the units to students enrolled in Dominican University programs ("Dominican
Master Lease"). The City has been provided a copy of this Dominican Master Lease.
NOW THEREFORE, it is hereby agreed by and between the Parties hereto as follows:
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AGREEMENT
The Parties agree and acknowledge that the above recitals are true and accurate, and are incorporated
into this Agreement by this reference.
1. Definitions and Exhibits
1.1 Definitions. In addition to those terms defined in the Recitals and in other sections of this
Agreement, the following terms are specially defined for the purposes of this Agreement:
A. "Affordable Rent" is the maximum allowable Rent for an Affordable Unit that does
not exceed: (i) for Very Low Income Households, is equal to or less than one -twelfth (1/12) of thirty percent
(30%) of fifty percent (50%) of Area Median Income, as adjusted for Assumed Household Size; (ii) for Low
Income Households, is equal to or less than one -twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of
Area Median Income; and (iii) for Median Income Households, is equal to or less than one -twelfth (1/12) of
thirty percent (30%) of one hundred percent (100%) of Area Median Income, as adjusted for Assumed
Household Size. Affordable Rent cannot exceed the Rent for Market Rate Units. An- example of the
calculations and methodology to be used to determine the Affordable Rent is illustrated in Exhibit B attached
hereto.. An example of the calculations and methodology to be used to determine the Affordable Rent during
the Dominican Master Lease is illustrated in Exhibit B-1 attached hereto.
C. "Area Median Income" means median yearly income in Marin County as published
pursuant to California Code of Regulations, Title 25, Section 6932, or successor provision.
D. "Assumed Household Size" shall be based on presumed maximum occupancy levels
of one person in a studio apartment, two (2) persons in a one -bedroom unit, three (3) persons in a two-bedroom
unit, and one additional person for each additional bedroom thereafter.
E. "Density Bonus Term" is the period that commences when the City, Marin Housing
Authority, and the Developer record the Regulatory Certificate described in Section 5 and that terminates fifty-
five (55) years after the date of the recordation of the Regulatory Certificate.
F. "Eligible Household" is a household which has been determined to be eligible to rent
or lease an Affordable Unit in compliance with Density Bonus Law and this Agreement. All occupants of an
Affordable Unit are considered to be one household.
G. "Household Income" is the combined, gross, pre-tax income of all occupants of the
Affordable Unit, including any co -signors on the lease or sublease.
H. "Low Income Affordable Unit" means an Affordable Unit reserved for occupancy by
Low Income Households at an Affordable Rent.
I. "Low Income Household" means a household whose Household Income does not
exceed the lower income limits applicable to Marin County, adjusted for household size, as published annually
by the California Department of Housing and Community Development; generally a household with a
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Household Income between fifty percent (50%) and eighty percent (80%) of Area Median Income, adjusted for
actual household size.
"Market Rate Units" are Units which are not Affordable Units.
K. "Median Income Household" means a household whose Household Income does not
exceed the Area Median Income applicable to Marin County, adjusted for household size, as published
annually by the California Department of Housing and Community Development; generally a household with a
Household Income between eighty percent (80%) and one hundred percent (100%) of Area Median Income,
adjusted for actual household size.
L. "Rent" is the total of monthly payments as calculated by the Marin Housing Authority
and paid by the Tenant of an Affordable Unit vor all ofthe following: (1) use and occupancy of the Affordable
Unit and land and all facilities associated with the Affordable Unit, including but not limited to parking,
bicycle storage, storage lockers, and use of all common areas; (2) any separately charged fees or service
charges assessed by the Developer which are required of all tenants of Units in the Project, except security
deposits; (3) an allowance for utilities paid by the Tenant as established by the Marin Housing Authority,
including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, but
not telephone service or cable TV; and (4) any other interest, taxes, fees or charges for use of the land or
associated facilities that are assessed by a public or private entity other than the Developer and paid by the
Tenant.
M. "Tenant" is all occupants of an Affordable Unit pursuant to a valid lease or rental
agreement with the Developer. During the term of the Dominican Master Lease, a Tenant shall include all
occupants of an Affordable Unit under a valid sublease or rental agreement pursuant to the Dominican Master
Lease.
N. "Tenant Lease" is defined in Section 3.4.
O. "Unit" is one of the fifteen (15) dwelling units in the Development.
P. "Very Low Income Household" means a household whose Household Income does
not exceed the very low income limits applicable to Marin County, adjusted for household size, as published
annually by the California Department ofHousing and Community Development; generally a household with a
Household Income at or below fifty percent (50%) of Area Median Income.
Q. "Very Low Income Affordable Units" means an Affordable Unit reserved for rent by
Very Low -Income Households at an Affordable Rent.
1.2 Exhibits. The following exhibits are attached to and incorporated into this Agreement:
Exhibit A
Legal Description of the Property.
Exhibit B
Unit Description and Affordable Rent Calculation.
Exhibit B-1
Affordable Rent Calculation for the Term of the Dominican Master Lease.
Exhibit C
Household Income Certification.
Exhibit D Certificate of Continuing Compliance.
Exhibit E Commencement of Density Bonus Term
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2. Construction of Development and Affordable Units
2.1 Satisfaction of Affordable Housina Reauirement. The Affordable Housing requirements shall
be satisfied with respect to the Property if: (a) the Developer constructs or causes to be constructed two
Affordable Units of three bedrooms and three baths with a 564 square foot tandem garage and (b) Developer
offers all dwelling units in the Development for rent and rents the Affordable Units to Eligible Households in
compliance with Section 3 below.
2.2 Affordable Units. To satisfy Developer's affordable housing requirements for the Development
under Density Bonus Law and the Density Bonus Ordinance, at initial occupancy of the Development,
Developer shall: (a) rent one Affordable Unit to a Low Income Households at Affordable Rent; and (b) rent
one Affordable Unit to a Very Low Income Household at Affordable Rent, as specified in Section 3 below.
2.3 Location of Affordable Units. The Affordable Units shall initially be constructed on the
Property in the locations shown or described in Exhibit B attached hereto.
2.4 Appearance, Size, Bedroom Count and Tenure.
A. Appearance and Maintenance of Affordable Units. The design, square footage,
appearance, and general quality of the Affordable Units shall be compatible with those of the Market Rate
Units and consistent with the designs provided for the Project Approvals. Developer shall allocate and assign
parking spaces, bicycle storage, storage lockers, and other spaces reserved for use by individual Units to the
Affordable Units on the same basis as for the Market Rate Units, and Tenants of the Affordable Units shall
have equal access to the Development's common areas as is given to the residents of the Market Rate Units, but
any fee charged for use of common areas or for spaces reserved for individual Units shall be included in the
Tenant's Rent. Once completed, the Affordable Units shall not be kept vacant or used for any purpose except
for residential use and shall be marketed concurrently with the Market Rate Units and offered for rent to
Eligible Households at Affordable Rents.
B. Location and Characteristics of Affordable Units. Developer shall provide the
Affordable Units in the Development in accordance with the schedule shown in Exhibit B. As provided in
Exhibit B, the Affordable Units shall be dispersed within the Development with a bedroom mix equivalent to
the bedroom mix of the Market Rate Units, except that the Developer may elect to provide the Affordable
Units with more bedrooms.
C. Chance in Location of Affordable Units. If, after recordation of this Agreement,
Developer desires to change the location of any Affordable Units within the Development, Developer shall
submit a written request for such change to the Director, who may approve such request provided that any
relocated Affordable Units shall be comparable to those listed in Exhibit B and shall contain the same number
of bedrooms.
2.5 Schedule for Developina Affordable Units. Certificates of occupancy or final inspections for
the Affordable Units shall be issued concurrently with certificates of occupancy or final inspections for the
Market Rate Units, such that, of the units that have been issued certificates of occupancy or final inspections, at
least fifteen percent (15%) shall be Affordable Units.
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3. Rent ReLyulatory Provisions
The provisions of this Section 3 are applicable until the expiration of the Density Bonus Term.
3.1 Affordability and Occupancy Covenants.
A. Occupancy Requirements. Subject to the provisions of Section 3.2 below, one of the
Affordable Units shall be rented to and occupied by or, if vacant, available for occupancy by, a Very Low
Income Household; and one Affordable Unit shall be rented to and occupied by or, if vacant, available for
occupancy by, a Low Income Household. The Affordable Units shall not be kept vacant or used for any
purpose except for residential use and, when vacant, shall be offered for rent to Eligible Households at
Affordable Rent.
B. Allowable Rent. Subject to the provisions of Section 3.2 below, the total maximum
Rent charged to Tenants of the Affordable Units shall not exceed Affordable Rent. During the term of the
Dominican Master Lease, the total Rent charged to all occupants of each Affordable Unit cannot exceed the
Affordable Rent,
C. Approval of Rents. Initial Rent for the Affordable Units shall be approved by the
Marin Housing Authority prior to occupancy at the time the Developer submits the information required by
Section 4.1 below. Marin Housing Authority shall review all proposed Rent increases to determine whether the
proposed increases are consistent with the provisions of this Agreement. Developer shall certify to Marin
Housing Authority that no fee other than Affordable Rent is being charged to Tenants of the Affordable Units
for all of the components of Rent defined in Section 1.1 above.
D. Schedule of Affordable Rents. The City has provided the Developer with a schedule
of Affordable Rents for the Affordable Units in effect on the date of this Agreement, set forth in attached
Exhibit B and Exhibit B-1 during the term of the Dominican Master Lease. Marin Housing Authority annually
determines Affordable Rents (including utility allowances) based on changes in Area Median Income and
utility allowances, and Developer shall obtain a copy of the schedule from Marin Housing Authority.
3.2 Increased Income of Tenants.
A. Increase from Very Low Income to at or below Low Income. If, upon annual
recertification of a Tenant's Household Income, the Developer determines that a former Very Low Income
Household's Income has increased and exceeds the qualifying income for a Very Low Income Household, but
does not exceed the qualifying limit for a Low Income Household, then, upon expiration of the Tenant's lease
and after thirty (30) days written notice to the Tenant, the Tenant's Rent may be increased to Affordable Rent
for Low Income Households.
B. Increase from Very Low Income or Low Income to at or below Median Income. If,
upon annual recertification of a Tenant's Household Income, the Developer determines that a former Very Low
Income or Low Income Household's Income has increased and exceeds the qualifying income for a Very Low
Income or Low Income Household, but does not exceed the qualifying limit for a Median Income Household,
then, upon expiration of the Tenant's lease and after thirty (30) days written notice to the Tenant, the Tenant's
Rent may be increased to Affordable Rent for Median Income Households.
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C. Increase from Very Low Income, Low Income, or Median Income to Above Area
Median Income. If, upon recertification of a Tenant's Household Income, the Developer determines that the
Tenant's Household Income has increased and exceeds the qualifying income for a Median Income Household,
then the Tenant shall be given written notice that: (i) Tenant's Rent shall be increased sixty (60) days after the
date in the notice to an amount to be determined by Developer but not to exceed Rent for a comparable Market
Rate Unit; and (ii) Tenant shall vacate the Affordable Units six (6) months from the date of the notice or upon
expiration of the Tenant's lease, whichever is later. If, prior to the date by which the Tenant must vacate the
Affordable Units, another Unit is vacated which is not designated as an Affordable Unit and is of appropriate
bedroom size, the Developer may, at the Developer's option, request the City to approve a change in the
location of the Affordable Units; allow the Tenant to remain in the original Unit; and designate the newly
vacated Unit as an Affordable Unit if approved by the City.
3.3 Agreement to Limitation on Rents. The Development has received Incentives from the City
under the Density Bonus Law and the Density Bonus Ordinance, which are forms of assistance specified in
Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. Sections
1954.52(b) and 1954.53(a) (2) of the Costa -Hawkins Act provide that, where a developer has received such
assistance, certain provisions of the Costa -Hawkins Act do not apply if a developer has so agreed by contract.
The Developer hereby agrees to limit Rents as provided in this Agreement in consideration of the Developer's
receipt of the Incentives and further agrees that any limitations on Rents imposed on the Affordable Units are
in conformance with the Costa -Hawkins Act. The Developer further warrants and covenants that the terms of
this Agreement are fully enforceable.
3.4 Lease and Sublease Provisions. The Developer shall use a form of Tenant lease, and, during
the term of the Dominican Master Lease, Dominican shall use a form of Tenant sublease (collectively the
"Tenant Lease") approved by the City for the Affordable Units. The City shall not withhold approval from any
form that:
A. provides that the Tenant's Household Income is subject to annual certification;
B. provides for termination of the lease for failure: (1) to provide any information
required under this Agreement or reasonably requested by the Developer to establish or recertify the Tenant's
qualification, or the qualification of the Tenant's household, as an Eligible Household in accordance with this
Agreement, or (2) to qualify as an Eligible Household as a result of any material misrepresentation made by
such Tenant with respect to the Household Income computation or certification;
C. provides that the Rent may not be raised more often than once every twelve (12)
months. The Developer will provide each Tenant with at least sixty (60) days written notice of any increase in
Rent applicable to such Tenant;
D. prohibits further subleasing of the Affordable Units or any portion of the Affordable
Units or any spaces reserved for the use of the Tenant, contains nondiscrimination provisions, and includes the
Tenant's obligation to inform the Developer of any need for maintenance or repair;
E. includes reasonable rules of conduct consistent with California law;
F. allows termination of the tenancy only for an increase in Tenant's Household Income
above qualifying income for Median Income Households or for good cause, including violation of the terms
and conditions of the Tenant Lease, violations of applicable federal, state, or local law, or other good cause;
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G. includes if desired, the obligation for Tenant to provide a security deposit not
exceeding one months' Rent.
4. Marketing, Income Certification, Reporting, and Annual Fee.
4.1 Required City Approvals. At least thirty (30) days before any Units in the Development
receive a final inspection or certificate of occupancy, the Developer shall notify City and the Marin Housing
Authority of the availability of the Affordable Units and provide to the City and Marin Housing the proposed
form of Tenant Lease to confirm conformance with the provisions of Section 3.4 above; and proposed
Affordable Rent for the Affordable Units, all for City and Marin Housing Authority review and approval. The
Affordable Units shall be marketed concurrently with the marketing of the Market Rate Units.
4.2 Prohibition on Discrimination in Tenant Selection (Sec4ion o Joudhers and Certificate
Holders). The Developer will review applications from prospective Tenants of the Affordable Units, on the
same basis as all other prospective Tenants, of persons who are recipients of federal certificates for rent
subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act or any
successor. The Developer shall not apply selection criteria to Section 8 certificate or voucher holders that are
more burdensome than criteria applied to all other prospective Tenants for the Affordable Units, nor shall the
Developer apply or permit the application of management policies or lease provisions with respect to the
Development which have the effect of precluding occupancy of Affordable Units by such prospective Tenants.
Notwithstanding the above, during the term of the Dominican Master Lease, Dominican may choose occupants
of the Affordable Units.
4.3 Marketing Materials.
A. Term of Dominican Master Lease. During the term of the Dominican Master Lease, at
least thirty (3 0) days before any Affordable Units are rented in the Development, the Developer shall provide
information that will be provided to Dominican and to applicants of the Affordable Units, including conditions
and restrictions applicable to occupancy of the Affordable Units, current Affordable Rent, permitted Rent
increases, maximum qualifying Household Income for an Eligible Household, requirement for annual
Household Income recertification, and requirement to vacate the Affordable Unit if the Tenant's Household
Income exceeds Median Household Income.
B. Termination of Dominican Master Lease. The Developer shall notify the City when
the Dominican Master Lease terminates. Upon the termination of the Dominican Master Lease, the Developer
shall additionally submit a marketing plan to the City that shall include means to be used to advertise the
Affordable Units to the public and maintenance of a waiting list and the amount of any application screening
fee to be imposed by Developer. Developer shall provide information to applicants as required by subsection A
of this Section.
4.4 'Income Certification. Upon initial occupancy and annually thereafter, the Developer will
obtain, complete and maintain on file Household Income certifications (Exhibit C), or a similar form as may be
approved by the City, for each Tenant renting an Affordable Unit. Developer shall make a good faith effort to
verify that the Household Income certifications provided by a Tenant are accurate by taking two or more of the
following steps as a part of the verification process for all members of the Tenant household age eighteen (18)
or older: (a) obtaining a minimum of the three (3) most current pay stubs; (b) obtaining an income tax return
for the most recent tax year, including either a certification that Tenant is not claimed as a dependent or copies
of any income tax returns where the Tenant is claimed as a dependent; (c) conducting a credit agency or
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similar search; (d) obtaining the three (3) most current savings and checking account bank statements; (e)
obtaining an income verification form from a current employer; (f) obtaining an income verification form from
the Social Security Administration and/or the California Department of Social Services if an adult member of
the Tenant's household receives assistance from either of such agencies; or (g) if the Tenant is unemployed and
has no such tax return, obtain another form of independent verification. During the term of the Dominican
Master Lease, the Developer may also elect to obtain a Free Application for Federal Student Aid or form
utilized by Dominican as part of the verification process. The Developer shall maintain copies of annual
Household Income certifications and maintain that form on file for a minimum of five (5) years and shall
permit the City or their designee to inspect the Household Income certifications at the Developer's office upon
three (3) days' notice. The Developer shall provide any additional information reasonably requested by the
City or its designee.
4.5 Annual Report. The Developer shall submit to the City and Marin Housing Authority by June
30 of each year a report, in a form prescribed by or otherwise acceptable to the City, verifying compliance by
Developer with the terms of this Agreement and certified as correct by the Developer under penalty of perjury.
Exhibit D Certification of Continuing Compliance, or a similar form as may be approved by the City, may be
used to meet this requirement. The annual report shall include without limitation the following information:
A. Certifications of Household Income for all Tenants ofthe Affordable Units at the time
of initial occupancy and upon the yearly anniversary of their continuing tenancies.
B. Verified Household Income statements. Developer shall retain in the Tenant's file all
verifications of Tenant's Household Income.
C. Number of persons in each Affordable Unit.
D. Certification of the amount of Rent charged for the year for the Affordable Units.
E. Certification that neither Developer nor Dominican nor any other party is charging any
fee other than Affordable Rent to the Tenants of the Affordable Units for all of the components of Rent defined
in Section 1.1 above.
F. During the Dominican Master Lease, the Developer or their designee, will obtain,
complete and maintain on file Household Income Certifications (Exhibit C), or a similar form as may be
approved by the City, for each of the eight (8) tenants identified as "Eligible Households".
G. Other information reasonably required by the City.
4.6 Other Reports. Within fifteen (15) days after receipt of a written request, Developer shall
provide any other information or completed forms requested by the City or Marin Housing Authority to ensure
compliance with this Agreement.
4.7 Records. The Developer shall maintain complete, accurate, and current records pertaining to
the Units for five (5) years after creating such records, and shall permit any duly authorized representative of
the City or Marin Housing Authority to inspect and copy such records, including the records pertaining to
Household Income and household size of Tenant households.
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4.8 Annual Monitorine Fee. , The Developer agrees to pay to the City during the Density Bonus
Term an annual monitoring fee payable on or before June 30 of each year as established by the City. The
initial annual monitoring fee is shown on Exhibit D.
5. Commencement of Density Bonus Term. The Density Bonus Term shall commence on the date that
the Developer, City, and Marin Housing record a certificate stating that the Affordable Units is rented and
occupied by an Eligible Household. Such certificate shall identify the beginning and end dates of the Density
Bonus Term (Exhibit El.
6. Manazement of Property and Property Maintenance.
6.1 Management Responsibilities. The Developer is responsible for all management functions
with respect to the DeVelVpmeit, iiiclu IL11g, wltiioia limitation, the annual I-ecei tification of household size and
Household Income (subject to review by the City or its assignee), selection of Tenants, maintenance of a
waiting list for the Affordable Units, evictions, collection of Rents and deposits, maintenance, landscaping,
routine and extraordinary repairs, replacement of capital items, and security. The City and Marin Housing
Authority shall have no responsibility over management of the Development.
6.2 Pronertv Maintenance. The City places prime importance on quality maintenance to ensure
that all developments within the City which include affordable housing units are not allowed to deteriorate due
to below-average maintenance. Developer shall provide the Affordable Units with the same level and quality of
maintenance, including performance of repairs and periodic replacement of fixtures, as the Market Rate Units.
The Developer agrees to maintain all interior and exterior improvements, including landscaping, on the
Property in good condition and repair (and, as to landscaping, in a healthy condition) and in accordance with
all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other
governmental agencies and bodies having or claiming jurisdiction and all their respective departments,
bureaus, and officials.
6.3 Remedies. In the event that the Developer breaches any of the covenants contained in this
Section 6 and such default continues for a period of ten (10) days after written notice from the City specifying
the nature of the breach with respect to graffiti, debris, waste material, or a health or safety violation, or thirty
(30) days after written notice from the City specifying the nature of the breach with respect to general
maintenance, landscaping and building improvements, then the City, in addition to whatever other remedy it
may have at law or in equity, shall have the right (but is not required) to enter upon the Property after ten (10)
days' prior written notice to the Developer describing the nature ofthe City's intended actions and to perform or
cause to be performed all acts and work necessary to protect, maintain, and preserve the improvements and
landscaped areas on the Property, as specified in a correction plan approved by the City, and to attach a lien on
the Property, or to assess the Property, in the amount of the expenditures incurred by the City or its agents
arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such
cure, plus an administrative charge equal to fifteen percent (15%) of the amount of such expenditures (the
expenditures plus the administrative charges are the "Correction Costs"), if Developer does not remit the full
amount of the Correction Costs to the City within thirty (30) days after City notifies Developer of the full
amount of the Correction Costs.
6.4 Taxes and Assessments. Developer shall pay all real and personal property taxes, assessments,
if any, and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes
assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing,
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or any lien or charge from attaching to the Property. The Developer shall have the right to contest in good
faith, any such taxes, assessments, or charges. In the event Developer exercises its right to contest any tax,
assessment, or charge against it, Developer, on final determination of the proceeding or contest, shall
immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and
interest.
6.5 Damage or Destruction of Development. If all of the Units on the Property are demolished, the
Incentives granted to Developer under Density Bonus Law shall terminate and the terms of this Agreement
shall terminate and be of no further force and effect.
7. Enforcement
7.1 Covenants Running with the Land. The City, Marin Housing Authority, and Developer hereby
declare their express intent that the covenants and restrictions set forth in this Agreement shall apply to and
bind Developer and its heirs, executors, administrators, successors, transferees, and assignees having or
acquiring any right, title or interest in or to any part of the Property and shall run with and burden such portions
of the Property until terminated in accordance with Section 7.2. Until all or portions of the Property are
expressly released from the burdens of this Agreement, each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any portion thereof shall be held conclusively to have
been executed, delivered, and accepted subject to such covenants and restrictions, regardless of whether such
covenants or restrictions are set forth in such contract, deed or other instrument. In the event of foreclosure or
transfer by deed -in -lieu of all or any portion of the Property prior to completion and sale of the Affordable
Units, title to all or any portion of the Property shall be taken subject to this Agreement. Developer
acknowledges that compliance with this Agreement is a requirement of Density Bonus Law and the Project
Approvals, and that no event of foreclosure or trustee's sale may remove these requirements from the Property.
7.2 Release of Property from Agreement.
A. Prior to the expiration of the Density Bonus Term, Developer shall provide all
notifications required by Government Code Sections 65863.10 and 65863.11 or successor provisions and any
other notification required by any state, federal, or local law.
B. Upon the expiration of the Density Bonus Term, City and Marin Housing Authority
shall execute and record a release of the Development, the Property, and each Unit in the Development from
the burdens of this Agreement within thirty (30) days following written notice from the Developer, if at the
time the Developer is in compliance with all terms of this Agreement.
7.3 Default. Failure of the Developer to satisfy any of Developer's obligations under the terms of
this Agreement within thirty (30) days after the delivery of a notice of default from the City will constitute a
default under this Agreement and a failure to satisfy the Project Approvals and Density Bonus Law. In addition
to remedies for breach of this Agreement, the City or Marin Housing Authority, if authorized by the City, may
exercise any and all remedies available to it, including but not limited to:
A. withholding, conditioning, suspending or revoking any permit, license, subdivision
approval or map, or other entitlement for the Development, including without limitation final inspections for
occupancy and/or certificates of occupancy;
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B. instituting against the Developer, or other parties, a civil action for declaratory relief,
injunction or any other equitable relief, or relief at law, including without limitation an action to rescind a
transaction and/or to require repayment of any funds received in connection with such a violation;
C. where one or more persons have received financial benefit as a result of violation of
this Agreement or of any requirement imposed under the Density Bonus Law, instituting legal action to recover
as necessary, a penalty in any amount up to and including the amount of financial benefit received, in addition
to recovery of the benefit received;
D. requiring the Developer or his/her successors in interest to the Property to pay the City
Rent or any other payment received by the Developer for the Affordable Units from the date of any
unauthorized use of the Affordable Units or in excess of Affordable Rent; and
E. Any other means authorized under the City of San Rafael Municipal Code, Density
Bonus Law, or any other federal or state statute.
7.4 Remedies Cumulative. No right, power, or remedy given to the City or Marin Housing
Authority by the terms of this Agreement or Density Bonus Law is intended to be exclusive of any other right,
power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to
every other right, power, or remedy given to the City by the terms of this Agreement, Density Bonus Law, or
by any statute or ordinance or otherwise against Developer and any other person. Neither the failure nor any
delay on the part of the City or Marin Housing Authority to exercise any such rights and remedies shall operate
as a waiver thereof, nor shall any single or partial exercise by the City or Marin Housing Authority of any such
right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
7.5 Attorney's Fees and Costs. If either party initiates an action to enforce its rights under the
Agreement and elects at the initiation of the action to seek the recovery of attorneys' fees, the prevailing party
in such an action shall be entitled to an award of reasonable attorneys' fees and costs in addition to any other
recovery under this Agreement.
8. General Provisions
8.1 Ai7pointment of Other Mencies. At its sole discretion, the City may designate, appoint or
contract with any other public agency, for-profit or non-profit organization to perform some or all of the City's
obligations under this Agreement.
8.2 Records. Developer shall retain all records related to compliance with obligations under this
Agreement for a period not less than five (5) years from the date of origination of such records, and make them
available to City or Marin Housing Authority employees or others designated by the City for inspection and
copying on five (5) business days' written notice. The City and Marin Housing Authority shall be entitled to
monitor compliance with this Agreement and Density Bonus Law, and Developer shall cooperate with City
monitoring, including obtaining Tenant Rent and Household Income verification upon request of the City.
8.3 Nondiscrimination. The Affordable Units shall be available for occupancy to members of the
general public. The Developer shall not give preference to any particular class or group of persons in renting
the Affordable Units, except to the extent that the Affordable Units is required to be rented to Eligible
Households and as required by this Agreement, including, without limitation, as set forth in Section 3 above;
provided, however, there shall be no discrimination against or segregation of any person or group of persons,
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on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, source of
income (e.g., SSI), age (except for lawful senior housing), ancestry, or disability, in the leasing, transferring,
use, occupancy, tenure, or enjoyment of any Unit nor shall the Developer or any person claiming under or
through the Developer, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy of Tenants of any Unit or in connection with the
employment of persons for the construction, operation and management of the Development.
8.4 Hold Harmless. Developer will indemnify and hold harmless (without limit as to amount) City
and Marin Housing Authority and their elected officials, officers, employees and agents in their official
capacity (hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss, all
risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all
claims, demands, suits, actions, judgments and executions for damages of any and every kind and by
whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to the
Development, the Affordable Units, or Developer's performance or non-performance under this Agreement,
including claims pursuant to California Labor Code Section 1720 et seq., and shall protect and defend
Indemnitees, and any of them with respect thereto, except to the extent arising from the gross negligence or
willful misconduct of the Indemnitees. The provisions of this Section shall survive expiration or other
termination of this Agreement or any release of part or all of the Property from the burdens of this Agreement,
and the provisions of this Section shall remain in full force and effect.
8.5 Notices. All notices required pursuant to this Agreement shall be in writing and may be given
by personal delivery or by registered or certified mail, return receipt requested, to the Party to receive such
notice at the addressed set forth below:
To the City: City of San Rafael
Office of the City Clerk
1400 Fifth Avenue
San Rafael, Ca 94915-1560
To the Developer: 524 Mission Street, LLC
Thompson Development Inc.
250 Bel Marin Keys Blvd., Bldg A
Novato, CA 94949
To Marin Housing Authority: Marin Housing Authority
Executive Director
4020 Civic Center Drive
San Rafael, CA 94903-4173
Any party may change the address to which notices are to be sent by notifying the other parties of the
new address, in the manner set forth above.
8.6 Integrated Agreement. This Agreement constitutes the entire Agreement between the Parties
and no modification hereof shall be binding unless reduced to writing and signed by the Parties hereto.
8.7 Each Party's Role in Drafting the Aareement. Each Party to this Agreement has had an
opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and
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negotiate revisions to the Agreement. Accordingly, neither Party shall rely upon Civil Code Section 1654 in
order to interpret any uncertainty in the meaning of the Agreement.
8.8 Amendment of Agreement; Approvals and Consents.
A. Amendments to this Agreement, including any proposal to change any condition of
the Project Approvals, shall be subject to the review and approval of the decision-making body which
approved the Development. No amendment may be approved that is inconsistent with State law, the San Rafael
Municipal Code, or any adopted affordable housing guidelines. Upon approval, a new Agreement or
amendments to this Agreement, as appropriate, shall be executed and recorded.
B. The City has authorized the City Manager to execute this Agreement and has
authorized the City Manager to deliver such approvals or consents as are requub ed by this Agreement. Marin
Housing Authority has authorized the Executive Director to execute this Agreement and has authorized
Executive Director to deliver such approvals or consents as are required by this Agreement. Any consents or
approvals required under this Agreement shall not be unreasonably withheld or made, unless it is specifically
provided -that a sole discretion standard applies.
8.9 Amendment of Agreement. This Agreement, and any section, subsection, or covenant
contained herein, may be amended only upon the written consent of the City, Marin Housing Authority, and
the Developer.
8.10 No Claims. Nothing contained in this Agreement shall create or justify any claim against the
City or Marin Housing Authority by any person that Developer may have employed or with whom Developer
may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the
performance of any work or services with respect to the Property or the construction of the Development or
construction of the Affordable Units.
8.11 AnDlicable Law and Venue. This Agreement shall be governed by California law. Venue for
any dispute arising out of this Agreement shall be Marin County.
8.12 Waivers. Any waiver by the City or Marin Housing Authority of any obligation or condition
in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City or Marin
Housing Authority to take action on any breach or default of Developer or to pursue any remedy allowed under
this Agreement or applicable law. Any extension of time granted to Developer to perform any obligation under
this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement.
Consent by the City or Marin Housing Authority to any act or omission by Developer shall not be construed to
be consent to any other or subsequent act or omission or to waive the requirement for Marin Housing
Authority's or the City's written consent to future waivers.
8.13 Title of Parts and Sections. Any titles of the sections, subsections, or subparagraphs of this
Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of
the Agreement's provisions.
8.14 Multi_ele Originals; Counterpart. This Agreement may be executed in multiple originals, each
of which is deemed to be an original, and may be signed in counterparts.
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8.15 Recording of Agreement. This Agreement shall be recorded against the Property in the
Official Records of the County of Marin prior to the recordation of any parcel map or final subdivision map or
issuance of any building permit for the Development, whichever occurs first.
8.16 Severability. In the event any limitation, condition, restriction, covenant, or provision
contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction,
the remaining portions of this Agreement shall nevertheless be and remain in full force and effect.
9. Exhibits. The following exhibits are attached to this Agreement:
Exhibit A
Legal Description of the Property.
Exhibit B
Unit Description and Affordable Rent Calculation.
Exhibit B-1
Affordable Rent Calculation for the Term of the Dominican Master Lease.
Exhibit C
Household Income Certification.
Exhibit D
Certificate of Continuing Compliance.
Exhibit E
Commencement of Density Bonus Term.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as ofthe day
and year first above written.
NA-WA-M0]_J-3-9
CITY:
524 Mission Street, LLC, a California limited liability City of San Rafael, a municipal corporation
company
oy.
Managing Member
IM
Jim Schutz, City Manager
ATTEST:
Esther Beirne, City Clerk
MARIN HOUSING AUTHORITY: APPROVED AS TO FORM:
Housing Authority of the County of Marin, a public By:
body, corporate and politic, created under the Housing Robert F. Epstein, City Attorney
Authority Law of the State of California
go
Lewis A. Jordan, Executive Director
16
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A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF MARIN
On before me, , Notary Public,
personally appeared , who 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.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Name:
Notary Public
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A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF MARK
On before me, , Notary Public,
personally appeared -who proved to me —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.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Name:
Notary Public
18
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A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
NIVINIffifirsGINVU_` 1►
On before me, , Notary Public,
personally appeared , who 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.
I certify UNDER PENALTY OF PERK RY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Name:
19
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EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land referred to is situated in the County of Marin, City of San Rafael, State of California, and is described
as follows:
Commencing at the corner formed by the intersection of the Northerly line of Mission Street with the Easterly
line of Irwin Street; running thence Northerly along the Easterly line of Irwin Street 160 feet; running thence
Easterly and parallel with Mission Street 165 feet to the Westerly line of Park Avenue thence Southerly along
said Line of Park Avenue 160 feet, more or less, to the Northerly line of Mission Street, and thence Westerly
along said last mentioned line of Mission Street, 165 feet to the point of commencement.
/: • ►r � 11
A-1
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EXHIBIT B
UNIT DESCRIPTION AND SAMPLE CALCULATION OF AFFORDABLE RENT
TOTAL NUMBER OF VERY LOW AND LOW INCOME UNITS: Two
One 3 Bedroom unit @ Very Low
One 3 Bedroom unit @ Low
ALLOWABLE RENT CALCULATION: Housing expense includes utility allowance per
schedule below (allowances from Marin Housing). Very Low Income is 50% of Area
Median Income, Low Income is 60% of Area Median Income and Moderate Income is
80% of Area Median Income. The applicable household and unit sizes are listed below.
Actual households can exceed the household size indicated but the rental calculation
will not change.
For example, using the 2017 Area Median Income such calculation would be as follows:
The Three Bedroom Housing Expense shall not exceed 1/12 of 30% of 50% for very
low income and 1/12 of 30% of 60% for low income.
The maximum qualifying tenant income is 50% of Area Median Income for very low
income and 60% of Area Median Income for low income or a lesser income as defined
by the Owner.
Affordability Level
50%
60%
Household Size
4 Person
4 Person
Unit Type
3 BRM
3 BRM
Median Income
115,300
115,300
Affordability Level
57,650
69,200
Monthly Income
4,804
5,767
30% of Income
1,441
1,730
Monthly Utility
Allowance
(76)
(76)
Maximum Allowable
Rent
1,365
1,654
IM
Exhibit B-1
Affordable Rent Calculation for Term of Dominican Master Lease
TOTAL NUMBER OF VERY LOW AND LOW INCOME UNITS: Two
One 3 Bedroom unit @ Very Low
One 3 Bedroom unit @ Low
For example, using the 2017 Area Median Income such calculation would be as follows:
Tha ThrPP Rneirnnm Hnii-_inn 1=xnenCe shall not eYreed 1/12 of 30% of 5n% for ven,
low income and 1/12 of 30% of 60% for low income.
The maximum qualifying tenant income is 50% of Area Median Income for very low
income and 60% of Area Median Income for low income or a lesser income as defined
by the Owner.
During the Term of the Dominican Master Lease, the enl:ire project consisting of fifteen three
bedroom, three bathroom units will be subleased by Dominican University. The University will
designate four tenants as very low income and four tenants as low income based on Household
Income ("Eligible Households"). Each of these eight tenants will be charged one quarter of the
Affordable Rent.
Number of
Income
Maximum Allowable
Maximum Allowable Rent
Tenants
Level
Rent for Unit
per Tenant
4
Very Low
$ 1,365
$ 341.25
4
Low
$1,654
$ 413.50
The Developer or its designee the University, will provide annual reports to the City of San
Rafael and/or its designee Marin Housing to verify that these eight Tenants are paying no more
each month than is allowable by the preceding table. In an effort to distribute these tenants
evenly throughout the community, these eight tenants may live in any one of the fifteen three
bedroom units in the project.
EXHIBIT C
HOUSEHOLD INCOME CERTIFICATION
SAN RAFAEL BELOW MARKET RATE RENTAL MONITORING PROGRAM
Project Name: Dominican Townhomes Date:
APARTMENT NUMBER # NUMBER OF BEDROOMS
MONTHLY RENT $
OCCUPANT/HOUSEHOLD NANIE:
TOTAL GROSS ANNUAL INCOME OF ELIGIBLE HOUSEHOLD:
Total household income is the combined, gross, pre-tax income of all occupants of the
household including any co -signors on the lease. Income includes all wages, salaries,
governmental assistance, as reported as gross income for federal income tax; or verified by pay
stubs, bank account records, governmental assistance records or other relevant documentation.
Attached hereto are the tax returns, pay stubs or other evidence of the income of the persons
listed below:
Name of household Relationship to Age Place of Employment/Source of
member head of household income
I/We understand and have read and answered fully, frankly and personally each of the above
questions under penalty of perjury and do hereby swear they are true.
Occupant -Head of Household
Date:
PROPERTY OWNER TO MAINTAIN THIS DOCUMENT FOR FIVE YEARS FOR INSPECTION
PURSUANT TO AGREEMENT WITH THE CITY
EXHIBIT "D"
CERTIFICATION OF CONTINUING COMPLIANCE
Marin Housing -City of San Rafael
BELOW MARKET RATE RENTAL UNIT AGREEMENT MONITORING PROGRAM
Certification Year: Number of Units at: % of Median: Date:
Project Name: Domenican Townhomes 1 Very Low 50%
Owner: 1 Low 60%
Address: 0 Moderate 80% Annual Monitoring Fee: $200.00
The undersigned, in acordance with Marin Housing and the City of San Rafael BELOW MARKET RATE AGREEMENT for this Project, hereby certifies that during the
preceeding twelve (12) months, the following units were occupied by Eligible Households in accordance with the AGREEMENT and does hereby further certify that the
representations set forth herein are true and correct to the best of the undersigned's knowledge.
Type Rent Class Status # of
(studio, 1 (% of Reg. Rent Scheduled (Rented or Occupancy Resi- Max. Income Certified
Apt. # Resident bdrm, etc.) Median) Max. Rent Vacant) Date dents for Residents Income Note
Notes Number matches the number in the Note column above
1
2
Attach additional sheets if necessary.
Contact Person:
Address:
Email:
Phone:
Fax:
Owner's Signature:
Owner hereby certifies that the households residng in BN/IR units are not being charged any fee other than affordable rent as defined in the Agreement with the City.
% of Median Income
Utility Allowance
Occu-
pants
50% Income Occupants 60% Income Monthly Rent
Occupants
80% Income Monthly Rent
Unit Type Allowance
1
1
1
N/A
Studio
2
2
2
N/A
11 Bdrm
3
3
3
N/A
12 Bdrm
4
4
4
N/A
13 Bdrm
Notes Number matches the number in the Note column above
1
2
Attach additional sheets if necessary.
Contact Person:
Address:
Email:
Phone:
Fax:
Owner's Signature:
Owner hereby certifies that the households residng in BN/IR units are not being charged any fee other than affordable rent as defined in the Agreement with the City.
IftSAN RAFAEL STAFF REPORT APPROVAL
THE CITY WITH AMISSION ROUTING SLIP
Staff Report Author: Paul Jensen Date of Meeting: July 17, 2017
Department: Community Development
Topic: Affordable Housing Agreements for 1200 Irwin Street project
Subject: Resolution Authorizing the City Manager to Sign: A) An Amendment to the Executed Below Market Rate
Agreement Addressing "For -Sale" BMR Units; and B) A New Below Market Rate Agreement Addressing BMR
Rental/Lease Options for the Mission/Irwin Carriage Houses Residential Development at 1200 Irwin Street; APN
014-013-05
Type: (check all that apply) 0 Consent Calendar ❑ Public Hearing
❑ Discussion Item 0 Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Informational Report
*If PSA, City Attorney approval is required prior to start of staff report approval process
Was agenda item publicly noticed? ❑ Yes ONo I Date noticed: I ❑Mailed ❑Site posted ❑Marin IJ
Due Date Responsibility Description CompletedDate Initial / Comment
PRELIMINARY REVIEW
FRI, 6/30 Author Submit draft report to
Director
MON, 7/3 Director Submit draft report to ACM
Assistant City Manager Readiness review
6/30/2017 0
6/30/2017 0
Click here to BMR Agreements being
enter a date. reviewed by CA Office
0
WED, 7/5
City Attorney
Preliminary legal and
7/6/2017
0
financial impact review
7/6/2017
LAG
Finance
0
Van
CONTENT REVIEW
FRI, 7/7
Assistant City Manager
Content review
7/7/2017
D
7/7/2017
Author
Revisions
0
Note: BMR Agreements
will be uploaded on
7/10
FINAL REVIEW
MON, 7/10
City Attorney
Final legal review
7/10/2017
D
7/10/2017
LAG
Finance
Final financial review
Click here to
0
enter a date.
Van
Author
Revisions / accept changes
0
TUES, 7/11
City Manager
Final review and approval
Click here to
0
J? 1
2418-0017403
No fee for recording pursuant to
Government Code Section 27383
REC FEE 0.00
CONFOR6IED COPY 0.00
a
Page 1 of 25
REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS
(Below Market Rate Rental Unit Agreement; Density Bonus Law)
Development Name: Mission Irwin Carriage Houses
Location: 1200 Irwin Street -524 Mission Avenue, San Rafael (APN 014-013-05)
Developer: 524 Mission Street, LLC
This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement") is made and entered
into this 14th day of August ,2017 , among the CITY OF SAN RAFAEL, a municipal corporation ("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 ("Marin Housing Authority"); and 524
MISSION STREET, LLC a California limited liability company, or any of their successors in interest
(collectively the "Developer"), collectively the "Parties," with reference to the following:
RECITALS
A. The City has adopted a density bonus ordinance (Section 14.16.030.H of the San Rafael
Municipal Code) (the "Density Bonus Ordinance") to conform with state density bonus law (Government
Code Sections 65915 -- 65918) (together "Density Bonus Law"). Density Bonus Law allows a density bonus,
concessions, and other regulatory incentives when a developer proposes to provide rental housing affordable to
Very Low Income or Low Income Households, as defined below,
B. Developer is the owner of certain real property located at 1200 Irwin Street, San Rafael,
County of Marin, California, which is more particularly described in attached Exhibit A incorporated herein by
this reference (the "Property"). In consideration of certain valuable land use and economic benefits conferred
by the City upon the Property under Density Bonus Law, Developer, for itself, its successors, heirs, grantees
and assigns, hereby agrees to comply with the requirements of Density Bonus Law as applied to the Property.
C. The Developer has received a discretionary approval from the City Council of the City of San
Rafael (Resolution 12315; the "Project Approvals") to construct a total of fifteen (15) residential
condominium units on the Property (the "Development"). As part of the Development, Developer has sought
885%01\2162288.2
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Recorded
Official Records
County of
RECORDING REQUESTED By and
Marin
WHEN RECORDED MAIL TO:
RICHARD -N.
R BENSON
Assessor -
County Clerk
City of San Rafael
09:49AM 16 -May -2016
Attn: City Clerk
1400 Fifth Avenue
San Rafael, Ca 94901
No fee for recording pursuant to
Government Code Section 27383
REC FEE 0.00
CONFOR6IED COPY 0.00
a
Page 1 of 25
REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS
(Below Market Rate Rental Unit Agreement; Density Bonus Law)
Development Name: Mission Irwin Carriage Houses
Location: 1200 Irwin Street -524 Mission Avenue, San Rafael (APN 014-013-05)
Developer: 524 Mission Street, LLC
This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement") is made and entered
into this 14th day of August ,2017 , among the CITY OF SAN RAFAEL, a municipal corporation ("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 ("Marin Housing Authority"); and 524
MISSION STREET, LLC a California limited liability company, or any of their successors in interest
(collectively the "Developer"), collectively the "Parties," with reference to the following:
RECITALS
A. The City has adopted a density bonus ordinance (Section 14.16.030.H of the San Rafael
Municipal Code) (the "Density Bonus Ordinance") to conform with state density bonus law (Government
Code Sections 65915 -- 65918) (together "Density Bonus Law"). Density Bonus Law allows a density bonus,
concessions, and other regulatory incentives when a developer proposes to provide rental housing affordable to
Very Low Income or Low Income Households, as defined below,
B. Developer is the owner of certain real property located at 1200 Irwin Street, San Rafael,
County of Marin, California, which is more particularly described in attached Exhibit A incorporated herein by
this reference (the "Property"). In consideration of certain valuable land use and economic benefits conferred
by the City upon the Property under Density Bonus Law, Developer, for itself, its successors, heirs, grantees
and assigns, hereby agrees to comply with the requirements of Density Bonus Law as applied to the Property.
C. The Developer has received a discretionary approval from the City Council of the City of San
Rafael (Resolution 12315; the "Project Approvals") to construct a total of fifteen (15) residential
condominium units on the Property (the "Development"). As part of the Development, Developer has sought
885%01\2162288.2
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and agreed to construct two dwelling units affordable to Very Low and Low Income Households (the
"Affordable Units") for the Density Bonus Term as defined below. The two Affordable Units represent
fifteen percent (15c70) of the thirteen (13) maximum units allowed by zoning prior to the application of the
density bonus.
D. Under Density Bonus Law, Developer has applied for, and the City has granted, the following
regulatory incentives in exchange for the Developer's provision of the Affordable Units: (1) a density bonus of
two units; and (2) reduced parking requirements, including tandem parking and a maximum of two spaces per
dwelling unit. The density bonus and parking reduction incorporated into the Development are collectively
"Incentives."
E. Density Bonus Law requires the City to ensure, and the Developer to agree to, continued
affordability of the Affordable Units for the Density Bonus Term. To ensure their continued affordability for
the Density Bonus Term, this Agreement shall be executed and recorded against the Property prior to issuance
of the Certificate of Occupancy for the Development.
F. Pursuant to San Rafael City Council Resolution 14132 adopted June 20, 2016, the Parties
entered into that certain Below Market Rate Housing Agreement and Declaration of Restrictive Covenants
dated May 20, 2016 and recorded July 26, 2016 as Instrument Number 2016-0033359 in the Official Records
of the County of Marin. (the "BitIR Agreement"). The BMR Agreement requires the Developer to provide
two Affordable Units; if the Developer elected to initially rent the Affordable Units, the BMR Agreement
requires one Affordable Unit to be affordable to Very Low Income Households and one Affordable Unit to be
affordable to Low Income Households for the Density Bonus Term as defined below. The BMR Agreement
further requires that if the Developer elects to initially rent the Affordable Units, the Developer enter into a
BMR Rental Agreement. The Developer has elected to initially rent the Affordable Units. This Agreement
constitutes the BMR Rental Agreement.
G. Developer acknowledges and agrees that the Project Approvals provided adequate and proper
notice pursuant to Government Code Section 66020 of Developer's right to protest any requirements for fees,
dedications, reservations, and other exactions as may be included in this Agreement, that no protest in
compliance with Section 66020 was made within ninety (90) days of the date that notice was given, and that
the period has expired in which Developer may protest any and all fees, dedications, reservations, and other
exactions as may be included in this Agreement.
H. Marin Housing Authority is authorized by law to participate in programs that provide housing
for households of very low, low, and moderate income. The City has contracted with Marin Housing Authority
to administer the City's affordable housing program.
I. Developer and Dominican University of California ("Dominican") have entered into a Master
Lease dated February 9, 2017, by the terms of which Dominican has agreed to lease the Development from the
Developer and to sublease the units to students enrolled in Dominican University programs ("Dominican
Master Lease"). The City has been provided a copy of this Dominican Master Lease.
NOW THEREFORE, it is hereby agreed by and between the Parties hereto as follows:
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AGREEMENT
The Parties agree and acknowledge that the above recitals are true and accurate, and are incorporated
into this Agreement by this reference.
1. Definitions and Exhibits
1.1 Definitions. In addition to those terms defined in the Recitals and in other sections of this
Agreement, the following terms are specially defined for the purposes of this Agreement:
A. "Affordable Rent" is the maximum allowable Rent for an Affordable Unit that does
not exceed: (i) for Very Low Income Households, is equal to or less than one -twelfth (1/12) of thirty percent
(30%) of fifty percent (50%) of Area Median Income, as adjusted for Assumed Household Size; (ii) for Low
Income Households, is equal to or less than one -twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of
Area Median Income; and (iii) for Median Income Households, is equal to or less than one -twelfth (1/12) of
thirty percent (30%) of one hundred percent (100%) of Area Median Income, as adjusted for Assumed
Household Size. Affordable Rent cannot exceed the Rent for Market Rate Units. An example of the
calculations and methodology to be used to determine the Affordable Rent is illustrated in Exhibit B attached
hereto.. An example of the calculations and methodology to be used to determine the Affordable Rent during
the Dominican Master Lease is illustrated in Exhibit B-1 attached hereto.
B. "Area Median Income" means median yearly income in Marin County as published
pursuant to California Code of Regulations, Title 25, Section 6932, or successor provision.
C. "Assumed Household Size" shall be based on presumed maximum occupancy levels
of one person in a studio apartment, two (2) persons in a one -bedroom unit, three (3) persons in a two-bedroom
unit, and one additional person for each additional bedroom thereafter.
D. "Density Bonus Term" is the period that commences when the City, Marin Housing
Authority, and the Developer record the Regulatory Certificate described in Section 5 and that terminates fifty-
five (55) years after the date of the recordation of the Regulatory Certificate.
E. "Eligible Household" is a household which has been determined to be eligible to rent
or lease an Affordable Unit in compliance with Density Bonus Law and this Agreement. All occupants of an
Affordable Unit are considered to be one household.
F. "Household Income" is the combined, gross, pre-tax income of all occupants of the
Affordable Unit, including any co -signors on the lease or sublease.
G. "Low Income Affordable Unit" means an Affordable Unit reserved for occupancy by
Low Income Households at an Affordable Rent.
H. "Low Income Household" means a household whose Household Income does not
exceed the lower income limits applicable to Marin County, adjusted for household size, as published annually
by the California Department of Housing and Community Development; generally a household with a
Household Income between fifty percent (5090) and eighty percent (80%) of Area Median Income, adjusted for
actual household size.
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I. "Market Rate Units" are Units which are not Affordable Units.
J. "Median Income Household" means a household whose Household Income does not
exceed the Area Median Income applicable to Marin County, adjusted for household size, as published
annually by the California Department of Housing and Community Development; generally a household with a
Household Income between eighty percent (80%) and one hundred percent (100%) of Area Median Income,
adjusted for actual household size.
K. "Rent" is the total of monthly payments as calculated by the Marin Housing Authority
and paid by the Tenant of an Affordable Unit for all of the following: (1) use and occupancy of the Affordable
Unit and land and all facilities associated with the Affordable Unit, including but not limited to parking,
bicycle storage, storage lockers, and use of all common areas; (2) any separately charged fees or service
charges assessed by the Developer which are required of all tenants of Units in the Project, except security
deposits; (3) an allowance for utilities paid by the Tenant as established by the Marin Housing Authority,
including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, but
not telephone service or cable TV; and (4) any other interest, taxes, fees or charges for use of the land or
associated facilities that are assessed by a public or private entity other than the Developer and paid by the
Tenant.
L. "Tenant" is all occupants of an Affordable Unit pursuant to a valid lease or rental
agreement with the Developer. During the term of the Dominican Master Lease, a Tenant shall include all
occupants of an Affordable Unit under a valid sublease or rental agreement pursuant to the Dominican Master
Lease.
M. "Tenant Lease" is defined in Section 3.4.
N. "Unit" is one of the fifteen (15) dwelling units in the Development.
O. "Very Low Income Household" means a household whose Household Income does
not exceed the very low income limits applicable to Marin County, adjusted for household size, as published
annually by the California Department of Housing and Community Development; generally a household with a
Household Income at or below fifty percent (50%) of Area Median Income.
P. "Very Low Income Affordable Units" means an Affordable Unit reserved for rent by
Very Low -Income Households at an Affordable Rent.
1.2 Exhibits. The following exhibits are attached to and incorporated into this Agreement:
Exhibit A Legal Description of the Property.
Exhibit B Unit Description and Affordable Rent Calculation.
Exhibit B-1 Affordable Rent Calculation for the Term of the Dominican Master Lease.
Exhibit C Household Income Certification.
Exhibit D Certificate of Continuing Compliance.
Exhibit E Commencement of Density Bonus Term
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2. Construction of Development and Affordable Units
2.1 Satisfaction of Affordable Housing Requirement. The Affordable Housing requirements shall
be satisfied with respect to the Property if. (a) the Developer constructs or causes to be constructed two
Affordable Units of three bedrooms and three baths with a 564 square foot tandem garage and (b) Developer
offers all dwelling units in the Development for rent and rents the Affordable Units to Eligible Households in
compliance with Section 3 below.
2.2 Affordable Units. To satisfy Developer's affordable housing requirements for the Development
under Density Bonus Law and the Density Bonus Ordinance, at initial occupancy of the Development,
Developer shall: (a) rent one Affordable Unit to a Low Income Households at Affordable Rent; and (b) rent
one Affordable Unit to a Very Low Income Household at Affordable Rent, as specified in Section 3 below.
2.3 Location of Affordable Units. The Affordable Units shall initially be constructed on the
Property in the locations shown or described in Exhibit B attached hereto.
2.4 Appearance, Size, Bedroom Count and Tenure.
A. Appearance and Maintenance of Affordable Units. The design, square footage,
appearance, and general quality of the Affordable Units shall be compatible with those of the Market Rate
Units and consistent with the designs provided for the Project Approvals. Developer shall allocate and assign
parking spaces, bicycle storage, storage lockers, and other spaces reserved for use by individual Units to the
Affordable Units on the same basis as for the Market Rate Units, and Tenants of the Affordable Units shall
have equal access to the Development's common areas as is given to the residents of the Market Rate Units, but
any fee charged for use of common areas or for spaces reserved for individual Units shall be included in the
Tenant's Rent. Once completed, the Affordable Units shall not be kept vacant or used for any purpose except
for residential use and shall be marketed concurrently with the Market Rate Units and offered for rent to
Eligible Households at Affordable Rents.
B. Location and Characteristics of Affordable Units. Developer shall provide the
Affordable Units in the Development in accordance with the schedule shown in Exhibit B. As provided in
Exhibit B, the Affordable Units shall be dispersed within the Development with a bedroom mix equivalent to
the bedroom mix of the Market Rate Units, except that the Developer may elect to provide the Affordable
Units with more bedrooms.
C. Change in Location of Affordable Units. If, after recordation of this Agreement,
Developer desires to change the location of any Affordable Units within the Development, Developer shall
submit a written request for such change to the Director, who may approve such request provided that any
relocated Affordable Units shall be comparable to those listed in Exhibit B_ and shall contain the same number
of bedrooms.
2.5 Schedule for Developing Affordable Units. Certificates of occupancy or final inspections for
the Affordable Units shall be issued concurrently with certificates of occupancy or final inspections for the
Market Rate Units, such that, of the units that have been issued certificates of occupancy or final inspections, at
least fifteen percent (15%) shall be Affordable Units.
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3. Rent Regulatory Provisions
The provisions of this Section 3 are applicable until the expiration of the Density Bonus Term.
3.1 Affordability and Occupancy Covenants.
A. Occupancy Requirements. Subject to the provisions of Section 3.2 below, one of the
Affordable Units shall be rented to and occupied by or, if vacant, available for occupancy by, a Very Low
Income Household; and one Affordable Unit shall be rented to and occupied by or, if vacant, available for
occupancy by, a Low Income Household. The Affordable Units shall not be kept vacant or used for any
purpose except for residential use and, when vacant, shall be offered for rent to Eligible Households at
Affordable Rent.
B. Allowable Rent. Subject to the provisions of Section 3.2 below, the total maximum
Rent charged to Tenants of the Affordable Units shall not exceed Affordable Rent. During the term of the
Dominican Master Lease, the total Rent charged to all occupants of each Affordable Unit cannot exceed the
Affordable Rent.
C. Approval of Rents. Initial Rent for the Affordable Units shall be approved by the
Marin Housing Authority prior to occupancy at the time the Developer submits the information required by
Section 4.1 below. Marin Housing Authority shall review all proposed Rent increases to determine whether the
proposed increases are consistent with the provisions of this Agreement. Developer shall certify to Marin
Housing Authority that no fee other than Affordable Rent is being charged to Tenants of the Affordable Units
for all of the components of Rent defined in Section 1. 1 above.
D. Schedule of Affordable Rents. The City has provided the Developer with a schedule
of Affordable Rents for the Affordable Units in effect on the date of this Agreement, set forth in attached
Exhibit B and Exhibit B-1 during the term of the Dominican Master Lease_ Marin Housing Authority annually
determines Affordable Rents (including utility allowances) based on changes in Area Median Income and
utility allowances, and Developer shall obtain a copy of the schedule from Marin Housing Authority.
3.2 Increased Income of Tenants.
A. Increase from Very Low Income to at or below Low Income. If, upon annual
recertification of a Tenant's Household Income, the Developer determines that a former Very Low Income
Household's Income has increased and exceeds the qualifying income for a Very Low Income Household, but
does not exceed the qualifying limit for a Low Income Household, then, upon expiration of the Tenant's lease
and after thirty (30) days written notice to the Tenant, the Tenant's Rent may be increased to Affordable Rent
for Low Income Households.
B. Increase from Very Low Income or Low Income to at or below Median Income. If,
upon annual recertification of a Tenant's Household Income, the Developer determines that a former Very Low
Income or Low Income Household's Income has increased and exceeds the qualifying income for a Very Low
Income or Low Income Household, but does not exceed the qualifying limit for a Median Income Household,
then, upon expiration of the Tenant's lease and after thirty (30) days written notice to the Tenant, the Tenant's
Rent may be increased to Affordable Rent for Median Income Households.
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C. Increase from Very Low Income Low Income or Median Income to Above Area
Median Income. If, upon recertification of a Tenant's Household Income, the Developer determines that the
Tenant's Household Income has increased and exceeds the qualifying income for a Median Income Household,
then the Tenant shall be Given written notice that: (i) Tenant's Rent shall be increased sixty (60) days after the
date in the notice to an amount to be determined by Developer but not to exceed Rent for a comparable Market
Rate Unit; and (ii) Tenant shall vacate the Affordable Units six (6) months from the date of the notice or upon
expiration of the Tenant's lease, whichever is later. If, prior to the date by which the Tenant must vacate the
Affordable Units, another Unit is vacated which is not designated as an Affordable Unit and is of appropriate
bedroom size, the Developer may, at the Developer's option, request the City to approve a change in the
location of the Affordable Units; allow the Tenant to remain in the original Unit; and designate the newly
vacated Unit as an Affordable Unit if approved by the City.
3.3 Agreement to Limitation on Rents. The Development has received Incentives from the City
under the Density Bonus Law and the Density Bonus Ordinance, which are forms of assistance specified in
Chapter 4.3 (commencing with Section 65915) of Division I of Title 7 of the Government Code. Sections
1954.52(b) and 1954.53(a)(2) of the Costa -Hawkins Act provide that, where a developer has received such
assistance, certain provisions of the Costa -Hawkins Act do not apply if a developer has so agreed by contract.
The Developer hereby agrees to limit Rents as provided in this Agreement in consideration of the Developer's
receipt of the Incentives and further agrees that any limitations on Rents imposed on the Affordable Units are
in conformance with the Costa -Hawkins Act. The Developer further warrants and covenants that the terms of
this Agreement are fully enforceable.
3.4 Lease and Sublease Provisions. The Developer shall use a form of Tenant lease, and, during
the term of the Dominican Master Lease, Dominican shall use a form of Tenant sublease (collectively the
"Tenant Lease") approved by the City for the Affordable Units. The City shall not withhold approval from any
form that:
A. provides that the Tenant's Household Income is subject to annual certification;
B. provides for termination of the lease for failure: (1) to provide any information
required under this Agreement or reasonably requested by the Developer to establish or recertify the Tenant's
qualification, or the qualification of the Tenant's household, as an Eligible Household in accordance with this
Agreement, or (2) to qualify as an Eligible Household as a result of any material misrepresentation made by
such Tenant with respect to the Household Income computation or certification;
C. provides that the Rent may not be raised more often than once every twelve (12)
months. The Developer will provide each Tenant with at least sixty (60) days written notice of any increase in
Rent applicable to such Tenant;
D. prohibits further subleasing of the Affordable Units or any portion of the Affordable
Units or any spaces reserved for the use of the Tenant, contains nondiscrimination provisions, and includes the
Tenant's obligation to inform the Developer of any need for maintenance or repair;
E. includes reasonable rules of conduct consistent with California law;
F. allows termination of the tenancy only for an increase in Tenant's Household Income
above qualifying income for Median Income Households or for good cause, including violation of the terms
and conditions of the Tenant Lease, violations of applicable federal, state, or local law, or other good cause;
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G. includes if desired, the obligation for Tenant to provide a security deposit not
exceeding one months' Rent.
4. Marketing, Income Certification Reporting, and Annual Fee.
4.1 Required City Approvals. At least thirty (30) days before any Units in the Development
receive a final inspection or certificate of occupancy, the Developer shall notify City and the Marin Housing
Authority of the availability of the Affordable Units and provide to the City and Marin Housing the proposed
form of Tenant Lease to confirm conformance with the provisions of Section 3.4 above; and proposed
Affordable Rent for the Affordable Units, all for City and Marin Housing Authority review and approval. The
Affordable Units shall be marketed concurrently with the marketing of the Market Rate Units.
4.2 Prohibition on Discrimination in Tenant Selection (Section 8 Vouchers and Certificate
Holders). The Developer will review applications from prospective Tenants of the Affordable Units, on the
same basis as all other prospective Tenants, of persons who are recipients of federal certificates for rent
subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act or any
successor. The Developer shall not apply selection criteria to Section 8 certificate or voucher holders that are
more burdensome than criteria applied to all other prospective Tenants for the Affordable Units, nor shall the
Developer apply or permit the application of management policies or lease provisions with respect to the
Development which have the effect of precluding occupancy of Affordable Units by such prospective Tenants.
Notwithstanding the above, during the tern of the Dominican Master Lease, Dominican may choose occupants
of the Affordable Units.
4.3 Marketing Materials.
A. Term of Dominican Master Lease. During the term of the Dominican Master Lease, at
least thirty (30) days before any Affordable Units are rented in the Development, the Developer shall provide
information that will be provided to Dominican and to applicants of the Affordable Units, including conditions
and restrictions applicable to occupancy of the Affordable Units, current Affordable Rent, permitted Rent
increases, maximum qualifying Household Income for an Eligible Household, requirement for annual
Household Income recertification, and requirement to vacate the Affordable Unit if the Tenant's Household
Income exceeds Median Household Income.
B. Termination of Dominican Master Lease. The Developer shall notify the City when
the Dominican Master Lease terminates. Upon the termination of the Dominican Master Lease, the Developer
shall additionally submit a marketing plan to the City that shall include means to be used to advertise the
Affordable Units to the public and maintenance of a waiting list and the amount of any application screening
fee to be imposed by Developer. Developer shall provide information to applicants as required by subsection A
of this Section.
4.4 Income Certification. Upon initial occupancy and annually thereafter, the Developer will
obtain, complete and maintain on file Household Income certifications (Exhibit C), or a similar form as may be
approved by the City, for each Tenant renting an Affordable Unit. Developer shall make a good faith effort to
verify that the Household Income certifications provided by a Tenant are accurate by taking two or more of the
following steps as a part of the verification process for all members of the Tenant household age eighteen (18)
or older: (a) obtaining a minimum of the three (3) most current pay stubs; (b) obtaining an income tax return
for the most recent tax year, including either a certification that Tenant is not claimed as a dependent or copies
of any income tax returns where the Tenant is claimed as a dependent; (c) conducting a credit agency or
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similar search; (d) obtaining the three (3) most current savings and checking account bank statements; (e)
obtaining an income verification form from a current employer; (f) obtaining an income verification form from
the Social Security Administration and/or the California Department of Social Services if an adult member of
the Tenant's household receives assistance from either of such agencies; or (g) if the Tenant is unemployed and
has no such tax return, obtain another form of independent verification. During the term of the Dominican
Master Lease, the Developer may also elect to obtain a Free Application for Federal Student Aid or form
utilized by Dominican as part of the verification process. The Developer shall maintain copies of annual
Household Income certifications and maintain that form on file for a minimum of five (5) years and shall
permit the City or their designee to inspect the Household Income certifications at the Developer's office upon
three (3) days' notice. The Developer shall provide any additional information reasonably requested by the
City or its designee.
4.5 Annual Report. The Developer shall submit to the City and Marin Housing Authority by June
30 of each year a report, in a form prescribed by or otherwise acceptable to the City, verifying compliance by
Developer with the terms of this Agreement and certified as correct by the Developer under penalty of perjury.
Exhibit D Certification of Continuing Compliance, or a similar form as may be approved by the City, may be
used to meet this requirement. The annual report shall include without limitation the following information:
A. Certifications of Household Income for all Tenants of the Affordable Units at the time
of initial occupancy and upon the yearly anniversary of their continuing tenancies.
B. Verified Household Income statements. Developer shall retain in the Tenant's file all
verifications of Tenant's Household Income.
C. Number of persons in each Affordable Unit.
D. Certification of the amount of Rent charged for the year for the Affordable Units.
E. Certification that neither Developer nor Dominican nor any other party is charging any
fee other than Affordable Rent to the Tenants of the Affordable Units for all of the components of Rent defined
in Section 1.1 above.
F. During the Dominican Master Lease, the Developer or their designee, will obtain,
complete and maintain on file Household Income Certifications (Exhibit C), or a similar form as may be
approved by the City, for each of the eight (8) tenants identified as "Eligible Households".
G. Other information reasonably required by the City.
4.6 Other Reports. Within fifteen (15) days after receipt of a written request, Developer shall
provide any other information or completed forms requested by the City or Marin Housing Authority to ensure
compliance with this Agreement.
4.7 Records. The Developer shall maintain complete, accurate, and current records pertaining to
the Units for five (5) years after creating such records, and shall permit any duly authorized representative of
the City or Marin Housing Authority to inspect and copy such records, including the records pertaining to
Household Income and household size of Tenant households.
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4.8 Annual Monitoring Fee. The Developer agrees to pay to the City during the Density Bonus
Term an annual monitoring fee payable on or before June 30 of each year as established by the City. The
initial annual monitoring fee is shown on Exhibit D.
5. Commencement of Density Bonus Term. The Density Bonus Term shall commence on the date that
the Developer, City, and Marin Housing record a certificate stating that the Affordable Units is rented and
occupied by an Eligible Household. Such certificate shall identify the beginning and end dates of the Density
Bonus Term (Exhibit E).
6. Management of Propertv and Propertv Maintenance.
6.1 Management Responsibilities. The Developer is responsible for all management functions
with respect to the Development, including, without limitation, the annual recertification of household size and
Household Income (subject to review by the City or its assignee), selection of Tenants, maintenance of a
waiting list for the Affordable Units, evictions, collection of Rents and deposits, maintenance, landscaping,
routine and extraordinary repairs, replacement of capital items, and security. The City and Marin Housing
Authority shall have no responsibility over management of the Development.
6.2 Property Maintenance. The City places prime importance on quality maintenance to ensure
that all developments within the City which include affordable housing units are not allowed to deteriorate due
to below-average maintenance. Developer shall provide the Affordable Units with the same level and quality of
maintenance, including performance of repairs and periodic replacement of fixtures, as the Market Rate Units.
The Developer agrees to maintain all interior and exterior improvements, including landscaping, on the
Property in good condition and repair (and, as to landscaping, in a healthy condition) and in accordance with
all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other
governmental agencies and bodies having or claiming jurisdiction and all their respective departments,
bureaus, and officials.
6.3 Remedies. In the event that the Developer breaches any of the covenants contained in this
Section 6 and such default continues for a period of ten (10) days after written notice from the City specifying
the nature of the breach with respect to graffiti, debris, waste material, or a health or safety violation, or thirty
(30) days after written notice from the City specifying the nature of the breach with respect to general
maintenance, landscaping and building improvements, then the City, in addition to whatever other remedy it
may have at law or in equity, shall have the right (but is not required) to enter upon the Property after ten (10)
days' prior written notice to the Developer describing the nature of the City's intended actions and to perform or
cause to be performed all acts and work necessary to protect, maintain, and preserve the improvements and
landscaped areas on the Property, as specified in a correction plan approved by the City, and to attach a lien on
the Property, or to assess the Property, in the amount of the expenditures incurred by the City or its agents
arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such
cure, plus an administrative charge equal to fifteen percent (15%) of the amount of such expenditures (the
expenditures plus the administrative charges are the "Correction Costs"), if Developer does not remit the full
amount of the Correction Costs to the City within thirty (30) days after City notifies Developer of the full
amount of the Correction Costs.
6.4 Taxes and Assessments. Developer shall pay all real and personal property taxes, assessments,
if any, and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes
assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing,
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or any lien or charge from attaching to the Property. The Developer shall have the right to contest in good
faith, any such taxes, assessments, or charges. In the event Developer exercises its right to contest any tax,
assessment, or charge against it, Developer, on final determination of the proceeding or contest, shall
immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and
interest.
6.5 Damage or Destruction of Development. If all of the Units on the Property are demolished, the
Incentives granted to Developer under Density Bonus Law shall terminate and the terms of this Agreement
shall terminate and be of no further force and effect.
7. Enforcement
7.1 Covenants Running with the Land. The City, Marin Housing Authority, and Developer hereby
declare their express intent that the covenants and restrictions set forth in this Agreement shall apply to and
bind Developer and its heirs, executors, administrators, successors, transferees, and assignees having or
acquiring any right, title or interest in or to any part of the Property and shall run with and burden such portions
of the Property until terminated in accordance with Section 7.2. Until all or portions of the Property are
expressly released from the burdens of this Agreement, each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any portion thereof shall be held conclusively to have
been executed, delivered, and accepted subject to such covenants and restrictions, regardless of whether such
covenants or restrictions are set forth in such contract, deed or other instrument. In the event of foreclosure or
transfer by deed -in -lieu of all or any portion of the Property prior to completion and sale of the Affordable
Units, title to all or any portion of the Property shall be taken subject to this Agreement. Developer
acknowledges that compliance with this Agreement is a requirement of Density Bonus Law and the Project
Approvals, and that no event of foreclosure or trustee's sale may remove these requirements from the Property.
7.2 Release of Property from Agreement.
A. Prior to the expiration of the Density Bonus Term, Developer shall provide all
notifications required by Government Code Sections 65863.10 and 65863.11 or successor provisions and any
other notification required by any state, federal, or local law.
B. Upon the expiration of the Density Bonus Term, City and Marin Housing Authority
shall execute and record a release of the Development, the Property, and each Unit in the Development from
the burdens of this Agreement within thirty (30) days following written notice from the Developer, if at the
time the Developer is in compliance with all terms of this Agreement.
7.3 Default. Failure of the Developer to satisfy any of Developer's obligations under the terms of
this Agreement within thirty (30) days after the delivery of a notice of default from the City will constitute a
default under this Agreement and a failure to satisfy the Project Approvals and Density Bonus Law. In addition
to remedies for breach of this Agreement, the City or Marin Housing Authority, if authorized by the City, may
exercise any and all remedies available to it, including but not limited to:
A. withholding, conditioning, suspending or revoking any permit, license, subdivision
approval or map, or other entitlement for the Development, including without limitation final inspections for
occupancy and/or certificates of occupancy;
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B. instituting against the Developer, or other parties, a civil action for declaratory relief,
injunction or any other equitable relief, or relief at law, including without limitation an action to rescind a
transaction and/or to require repayment of any funds received in connection with such a violation;
C. where one or more persons have received financial benefit as a result of violation of
this Agreement or of any requirement imposed under the Density Bonus Law, instituting legal action to recover
as necessary, a penalty in any amount up to and including the amount of financial benefit received, in addition
to recovery of the benefit received;
D. requiring the Developer or his/her successors in interest to the Property to pay the City
Rent or any other payment received by the Developer for the Affordable Units from the date of any
unauthorized use of the Affordable Units or in excess of Affordable Rent; and
E. Any other means authorized under the City of San Rafael Municipal Code, Density
Bonus Law, or any other federal or state statute.
7.4 Remedies Cumulative. No riZn
ght, power, or remedy given to the City or Marin Housing
Authority by the terms of this Agreement or Density Bonus Law is intended to be exclusive of any other right,
power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to
every other right, power, or remedy given to the City by the terms of this Agreement, Density Bonus Law, or
by any statute or ordinance or otherwise against Developer and any other person. Neither the failure nor any
delay on the part of the City or Marin Housing Authority to exercise any such rights and remedies shall operate
as a waiver thereof, nor shall any single or partial exercise by the City or Marin Housing Authority of any such
right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
7.5 Attorney's Fees and Costs. If either party initiates an action to enforce its rights under the
Agreement and elects at the initiation of the action to seek the recovery of attorneys' fees, the prevailing party
in such an action shall be entitled to an award of reasonable attorneys' fees and costs in addition to any other
recovery under this Agreement.
8. General Provisions
8.1 Appointment of Other Agencies. At its sole discretion, the City may designate, appoint or
contract with any other public agency, for-profit or non-profit organization to perform some or all of the City's
obligations under this Agreement.
8.2 Records. Developer shall retain all records related to compliance with obligations under this
Agreement for a period not less than five (5) years from the date of origination of such records, and make them
available to City or Marin Housing Authority employees or others designated by the City for inspection and
copying on five (5) business days' written notice. The City and Marin Housing Authority shall be entitled to
monitor compliance with this Agreement and Density Bonus Law, and Developer shall cooperate with City
monitoring, including obtaining Tenant Rent and Household Income verification upon request of the City.
8.3 Nondiscrimination. The Affordable Units shall be available for occupancy to members of the
general public. The Developer shall not give preference to any particular class or group of persons in renting
the Affordable Units, except to the extent that the Affordable Units is required to be rented to Eligible
Households and as required by this Agreement, including, without limitation, as set forth in Section 3 above;
provided, however, there shall be no discrimination against or segregation of any person or group of persons,
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on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, source of
income (e.g., SSI), age (except for lawful senior housing), ancestry, or disability, in the leasing, transferring,
use, occupancy, tenure, or enjoyment of any Unit nor shall the Developer or any person claiming under or
through the Developer, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy of Tenants of any Unit or in connection with the
employment of persons for the construction, operation and management of the Development.
8.4 Hold Harmless. Developer will indemnify and hold harmless (without limit as to amount) City
and Marin Housing Authority and their elected officials, officers, employees and agents in their official
capacity (hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss, all
risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all
claims, demands, suits, actions, judgments and executions for damages of any and every kind and by
whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to the
Development, the Affordable Units, or Developer's performance or non-performance under this Agreement,
including claims pursuant to California Labor Code Section 1720 et se4., and shall protect and defend
Indemnitees, and any of them with respect thereto, except to the extent arising from the gross negligence or
willful misconduct of the Indemnitees. The provisions of this Section shall survive expiration or other
termination of this Agreement or any release of part or all of the Property from the burdens of this Agreement,
and the provisions of this Section shall remain in full force and effect.
8.5 Notices. All notices required pursuant to this Agreement shall be in writing and may be given
by personal delivery or by registered or certified mail, return receipt requested, to the Party to receive such
notice at the addressed set forth below:
To the City:
To the Developer:
To Marin Housing Authority:
City of San Rafael
Office of the City Clerk
1400 Fifth Avenue
San Rafael, Ca 94915-1560
524 Mission Street, LLC
Thompson Development Inc.
250 Bel Marin Keys Blvd., Bldg A
Novato, CA 94949
Marin Housing Authority
Executive Director
4020 Civic Center Drive
San Rafael, CA 94903-4173
Any party may change the address to which notices are to be sent by notifying the other parties of the
new address, in the manner set forth above.
8.6 Integrated Agreement. This Agreement constitutes the entire Agreement between the Parties
and no modification hereof shall be binding unless reduced to writing and signed by the Parties hereto.
8.7 Each Party's Role in Drafting the Agreement. Each Party to this Agreement has had an
opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and
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negotiate revisions to the Agreement. Accordingly, neither Party shall rely upon Civil Code Section 1654 in
order to interpret ani uncertainty in the meaning of the Agreement.
8.8 Amendment of Agreement; Approvals and Consents.
A. Amendments to this Agreement, including any proposal to change any condition of
the Project Approvals, shall be subject to the review and approval of the decision-making body which
approved the Development. No amendment may be approved that is inconsistent with State law, the San Rafael
Municipal Code, or any adopted affordable housing guidelines. Upon approval, a new Agreement or
amendments to this Agreement, as appropriate, shall be executed and recorded.
B. The City has authorized the City Manager to execute this Agreement and has
authorized the City Manager to deliver such approvals or consents as are required by this Agreement. Marin
Housing Authority has authorized the Executive Director to execute this Agreement and has authorized
Executive Director to deliver such approvals or consents as are required by this Agreement. Any consents or
approvals required under this Agreement shall not be unreasonably withheld or made, unless it is specifically
provided that a sole discretion standard applies.
8.9 Amendment of Agreement. This Agreement, and any section, subsection, or covenant
contained herein, may be amended only upon the written consent of the City, Marin Housing Authority, and
the Developer.
8.10 No Claims. Nothing contained in this Agreement shall create or justify any claim against the
City or Marin Housing Authority by any person that Developer may have employed or with whom Developer
may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the
performance of any work or services with respect to the Property or the construction of the Development or
construction of the Affordable Units.
8.11 Applicable Law and Venue. This Agreement shall be governed by California law. Venue for
any dispute arising out of this Agreement shall be Marin County.
8.12 Waivers. Any waiver by the City or Marin Housing Authority of any obligation or condition
in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City or Marin
Housing Authority to take action on any breach or default of Developer or to pursue any remedy allowed under
this Agreement or applicable law. Any extension of time granted to Developer to perform any obligation under
this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement.
Consent by the City or Marin Housing Authority to any act or omission by Developer shall not be construed to
be consent to any other or subsequent act or omission or to waive the requirement for Marin Housing
Authority's or the City's written consent to future waivers.
8.13 Title of Parts and Sections. Any titles of the sections, subsections, or subparagraphs of this
Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of
the Agreement's provisions.
8.14 Multiple Originals-, Counterpart. This Agreement may be executed in multiple originals, each
of which is deemed to be an original, and may be signed in counterparts.
14
885\01\2162288 2
6/30/2017
8.15 Recording of Agreement. This Agreement shall be recorded against the Property in the
Official Records of the County of Marin prior to the recordation of any parcel map or final subdivision map or
issuance of any building permit for the Development, whichever occurs first.
8.16 Severability. In the event any limitation, condition, restriction, covenant, or provision
contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction,
the remaining portions of this Agreement shall nevertheless be and remain in full force and effect.
9. Exhibits. The following exhibits are attached to this Agreement:
Exhibit A
Legal Description of the Property.
Exhibit B
Unit Description and Affordable Rent Calculation.
Exhibit B-1
Affordable Rent Calculation for the Term of the Dominican Master Lease.
Exhibit C
Household Income Certification.
Exhibit D
Certificate of Continuing Compliance.
Exhibit E
Commencement of Density Bonus Term.
15
88i\01\2163288 2
6/30/2017
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first above written.
DEVELOPER:
CITY:
524 Mission Street, LLC, a California limited liability City of San Rafael, a municipal corporation
company
By: _
Managing Member
By:
J6 jScutz, City Mat
ATTEST:
—FA+her-BtMe, City Clerk
La r\6S&Y LAY -0.
MARIN HOUSING AUTHORITY: APPROVED AS TO FORM: n
Housing Authority of the County of Marin, a public By:
body, corporate and politic, created under the Housing Robert F. Epstein, CityVAttornYy
AuthorityLw of the of lifornia
By:
L wis A. Jordan, xecutive Director
16
885\0 1\2 162288.2
6/30/2017
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF MARIN
On Aua&,�gvj Lp,'-i'1-7, before me, Dal I ct j�[j � o ,Notary Public,
personally appeared �►'iL�. , who proved to me on the basis of
satisfactory evidence to b he perso whose name( is subscribed to the within instrum nt and
act wled ed to me that he s/texecuted the same ' is/her/their authorized capacity(i ), and that
by is er h r signature ofi the instrument the person , or the entity upon behalf of wh' h the
person acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Name:
Notary Public
17
885\01\21 162288.2
6/30/2017
DALIA NIETO
Commission 2047836
Notary Public -California
Marin County
My Comm. Expires Nov 3. 2017 �r
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF MARIN
On 2017' , before me, C.l DI T. K�f Za r t' 4w,- , Notary Public,
personally app ed L P_W l A. T-&ral Q � , who proved to me on the basis of
satisfactory evidence to be the personV whose name(m) is/ars subscribed to the within instrument and
acknowledged to me that he/sUek*e�• executed the same in his/laaW4he4 authorized capacitykies), and that
by his/had4heir signature(4 on the instrument the person(A, or the entity upon behalf of which the
person($) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
eg—r-e
Name: l
Notary Public
CAROL J. KAZARIAN
Commission # 2070835
i • `� Notary Public California z
Marin County
My Comm. Expires Jun 15, 2018
I$
885\01\3162288.2
6/30/2017
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Marin
On 4 11-7 1 201 c& before me,
Lindsay Faye Lara, Notary Public
(insert name and title of the officer)
personally appeared ,_ AY'k f S VC.h U'fiZ
who proved to me on the basis of satisfactory evidence to be the person(4 whose name(91 is/ar-e
subscribed to the within instrument and acknowledged to me that he/s#ie/they executed the same in
his/her/tfr-* authorized capacity(, and that by his/leer/their signature(sj on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal. LINDSAY FAYE LAA
COMM. #2182818 z
ps Notary Public - California o
Z Marin County
Comm, Wes Feb. 10 2021
Signature qX (Seal)
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land referred to is situated in the County of Marin, City of San Rafael, State of California, and is described
as follows:
Commencing at the corner formed by the intersection of the Northerly line of Mission Street with the Easterly
line of Irwin Street; running thence Northerly along the Easterly line of Irwin Street 160 feet; running thence
Easterly and parallel with Mission Street 165 feet to the Westerly line of Park Avenue thence Southerly along
said Line of Park Avenue 160 feet, more or less, to the Northerly line of Mission Street, and thence Westerly
along said last mentioned line of Mission Street, 165 feet to the point of commencement.
APN: 014-013-05
A-1
885\01\2162288.3
6/30/2017
EXHIBIT B
UNIT DESCRIPTION AND SAMPLE CALCULATION OF AFFORDABLE RENT
TOTAL NUMBER OF VERY LOW AND LOW INCOME UNITS: Two
One 3 Bedroom unit @ Very Low
One 3 Bedroom unit @ Low
ALLOWABLE RENT CALCULATION: Housing expense includes utility allowance per
schedule below (allowances from Marin Housing). Very Low Income is 50% of Area
Median Income, Low Income is 60% of Area Median Income and Moderate Income is
80% of Area Median Income. The applicable household and unit sizes are listed below.
Actual households can exceed the household size indicated but the rental calculation
will not change.
For example, using the 2017 Area Median Income such calculation would be as follows:
The Three Bedroom Housing Expense shall not exceed 1/12 of 30% of 50% for very
low income and 1/12 of 30% of 60% for low income.
The maximum qualifying tenant income is 50% of Area Median Income for very low
income and 60% of Area Median Income for low income or a lesser income as defined
by the Owner.
Affordability Level
50%
60%
Household Size
4 Person
4 Person
Unit T 'e
3 BRM
'3 BRM
115,300
Median Income
115,300
Affordability Level
57,650
69,200
Monthly Income
4,804
5,767
30% of Income
Monthly Utility
Allowance
1,441
76
1,730
76
Maximum Allowable
Rent
1,365
1,654
115
Exhibit B-1
Affordable Rent Calculation for Term of Dominican Master Lease
TOTAL NUMBER OF VERY LOW AND LOW INCOME UNITS: Two
One 3 Bedroom unit @ Very Low
One 3 Bedroom unit @ Low
For example, using the 2017 Area Median Income such calculation would be as follows:
The Three Bedroom Housing Expense shall not exceed 1/12 of 30% of 50% for very
low income and 1/12 of 30% of 60% for low income.
The maximum qualifying tenant income is 50% of Area Median Income for very low
income and 60% of Area Median Income for low income or a lesser income as defined
by the Owner.
During the Term of the Dominican Master Lease, the entire project consisting of fifteen
three bedroom, three bathroom units will be subleased by Dominican University. The
University will designate four tenants as very low income and four tenants as low
income based on Household Income ("Eligible Households"). Each of these eight
tenants will be charged one quarter of the Affordable Rent.
Number of
Tenants
Income
Level
Maximum Allowable
Rent for Unit
Maximum Allowable Rent
per Tenant
4
Very Low
$ 1,365
$ 341.25
Low
$1,654
_
$ 413.50
The Developer or its designee the University, will provide annual reports to the City of
San Rafael and/or its designee Marin Housing to verify that these eight Tenants are
paying no more each month than is allowable by the preceding table. In an effort to
distribute these tenants evenly throughout the community, these eight tenants may live
in any one of the fifteen three bedroom units in the project.
Developer acknowledges that the occupancy of the project by very low income and low
income students pursuant to this Exhibit B-1 is subject to review by the San Rafael City
Council after the first twelve months of occupancy of the project, at a hearing in which
the Developer and Dominican University and other interested parties will have an
opportunity to be heard and present evidence; and that the method of calculating the
Affordable Rent per unit and/or per tenant provided in this Exhibit B-1 may be modified
by the City Council after such review if the City Council finds such modification to be
necessary for the proper implementation of the affordability restrictions required under
the Density Bonus Law as applied to the Property.
ME
EXHIBIT C
HOUSEHOLD INCOME CERTIFICATION
SAN RAFAEL BELOW MARKET RATE RENTAL MONITORING PROGRAM
Project Name: Dominican Townhomes Date:
APARTMENT NUMBER # NUMBER OF BEDROOMS
MONTHLY RENT $
OCCUPANT/HOUSEHOLD NAME:
TOTAL GROSS ANNUAL INCOME OF ELIGIBLE HOUSEHOLD:
Total household income is the combined, gross, pre-tax income of all occupants of the
household including any co -signors on the lease. Income includes all wages, salaries,
governmental assistance, as reported as gross income for federal income tax; or verified by pay
stubs, bank account records, governmental assistance records or other relevant documentation.
Attached hereto are the tax returns, pay stubs or other evidence of the income of the persons
listed below:
Name of household Relationship to Age Place of EmpIoyment/Source of
member _ head of household income
I
I/We understand and have read and answered fully, frankly and personally each of the above
questions under penalty of perjury and do hereby swear they are true.
Occupant -Head of Household
Date:
PROPERTY OWNER TO MAINTAIN THIS DOCUMENT FOR FIVE YEARS FOR INSPECTION
PURSUANT TO AGREEMENT WITH THE CITY
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EXHIBIT E
NOTICE OF COMMENCEMENT OF DENSITY BONUS TERM
PROJECT NAME: Carriage Houses DATE:
ADDRESS: 1200 Irwin Street- 524 Mission Avenue
OWNER:
The "Density Bonus Term" as defined in that certain Regulatory Agreement and Declaration of
Restrictive Covenants, recorded on as Document
in the Office of the Marin County Recorder and pertaining to the real property located within the
City of San Rafael, State of California, and described in Exhibit A attached hereto, commenced
on , the date that the Affordable Unit(s) were rented and occupied by an
Eligible Household. The Project Period will expire 55 years from the date of this notice on
2072.
ATTEST
City Clerk
CITY OF SAN RAFAEL
BY:
NAME:
TITLE:
OWNER
BY:
NAME:
TITLE:
MARIN HOUSING
BY:
NAME:
TITLE:
�p,� RA F�l
1,
-A 2
yo
C�rY WITH P
E��Y14�1c, t
17
CONTRACT ROUTING FORM
INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below.
TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER:
Contracting Department: Community Development
Project Manager: Raffi Boloyan
Extension: x3095
Contractor Name: Mission Irwin Carriage Houses — BMR agreement
Contractor's Contact: click here to enter text.
Contact's Email: Click here to Pnter text
❑ FPPC: Check if Contractor/Consultant must file Form 700
notcontract a BMR a reement�
Step
RESPONSIBLE
DESCRIPTION
COMPLETED
REVIEWER
DEPARTMENT
DATE
Check/Initial
1
Project Manager
a. Email PINS Introductory Notice to Contractor
n/a
(.'lick here to
b. Email contract (in Word) & attachments to City
Atty c/o Laraine.Gittens@cityofsanrafael.org]
2
City Attorney
a. Review, revise, and comment on draft agreement
xRk*
and return to Project Manager
CIV/: Igiy to
N
b. Confirm insurance requirements, create Job on
enter a date.
PINS, send PINS insurance notice to contractor
N/A
3
Project Manager
Forward three (3) originals of final agreement to
8/4/2017
❑
contractor for their signature
4
Project Manager
When necessary, * contractor -signed agreement
agendized for Council approval
*PSA
7/17/2017
> $20,000; or Purchase > $35,000; or
Public Works Contract > $125,000
Date of Council approval
PRINT
CONTINUE ROUTING PROCESS WITH HARD COPY
5
Project Manager
Forward signed original agreements to City
2/15/18
RB
Attorney with printed copy of this routing form
6
City Attorney
Review and approve hard copy of signed
agreement
�/), T�
7
City Attorney
Review and approve insurance in PINS, and bonds
(for Public Works Contracts) olk
H)IVAF
8
City Manager/ Mayor
Agreement executed by Council authorized official
qJ7
7 /A-
9
City Clerk
Attest signatures, retains original agreement and
forwards copies to Project Manager
�j l I[Illl 1111 111[1 VIII illi 111 la 111V lilll1111111111[lll {lIN 111111[1
2018-0022024
Recorded R.EC FEE 0.00
RECORDING REQUESTED BY ort Cou^Ry orrds
AND WHEN RECORDED MAIL TO: Marin
RICHARD N. BENSON
Assessor -Recorder
City of San Rafael County Cleric a
Attn: City Clerk 01:33PM79-Jun-2028 Page 1 of 7
1400 Fifth Avenue
San Rafael, CA 94901
No fee for recording pursuant to
Government Code Section 27383
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
AMENDMENT TO BELOW MARKET RATE HOUSING AGREEMENT
AND DECLARATION OF RESTRICTIVE COVENANTS
Project Name: Mission Irwin Carriage Houses
Location: 1200 Irwin Street -524 Mission Avenue, San Rafael (APN 014-013-05)
Developer: 524 Mission Street, LLC
This Amendment to Below Market Rate Housing Agreement and Declaration of Restrictive
Covenants (this "Amendment") is made and entered into as of August 14, 2017, among the CITY OF
SAN RAFAEL, a municipal corporation ("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 ("Marin Housing Authority"), and 524 MISSION STREET, LLC, a California limited
liability company, or any successor in interest ("Developer"), collectively the "Parties," with reference to
the following:
RECITALS
A. The Developer is the owner of certain real property located at 1200 Irwin Street, San
Rafael, County of Marin, California, which is more particularly described in attached Exhibit A
incorporated herein by this reference (the "Property").
B. The Parties entered into that certain Below Market Rate Housing Agreement and
Declaration of Restrictive Covenants dated May 20, 2016 and recorded July 26, 2016 as Instrument
Number 2016-0033359 in the Official Records of the County of Marin (the "BMR Agreement").
C. Under the BMR Agreement, the Developer has determined to initially rent the Affordable
Units and to record a BMR Rental Agreement against the Property.
D. The Parties desire to amend the BMR Agreement to ensure that the BMR Agreement and the
BMR Rental Agreement are consistent and will require the Developer to sell the Affordable Units in the
future as provided in the BMR Agreement. The Amendment to Below Market Rate Housing Agreement
and Declaration of Restrictive Covenants that will be recorded on the Property is in the form approved by
the San Rafael City Council on July 17, 2017.
885\010620421
6/301_'017
1L43W
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of San Rafael = RECEIVE®
Attn: City Clerk
1400 Fifth Avenue AUG 2 4 2011
San Rafael, CA 94901
PLANNING . No fee for recording pursuant to **
Government Code Section 27383
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
AMENDMENT TO BELOW MARKET RATE HOUSING AGREEMENT
AND DECLARATION OF RESTRICTIVE COVENANTS
Project Name: Mission Irwin Carriage Houses
Location: 1200 Irwin Street -524 Mission Avenue, San Rafael (APN 014-013-05)
Developer: 524 Mission Street, LLC
This Amendment to Below Market Rate Housing Agreement and Declaration of Restrictive
Covenants (this "Amendment") is made and entered into as of August 14, 2017, among the CITY OF
SAN RAFAEL, a municipal corporation ("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 ("Marin Housing Authority"), and 524 MISSION STREET, LLC, a California limited
liability company, or any successor in interest ("Developer"), collectively the "Parties," with reference to
the following:
RECITALS
A. The Developer is the owner of certain real property located at 1200 Irwin Street, San
Rafael, County of Marin, California, which is more particularly described in attached Exhibit A
incorporated herein by this reference (the "Property").
B. The Parties entered into that certain Below Market Rate Housing Agreement and
Declaration of Restrictive Covenants dated May 20, 2016 and recorded July 26, 2016 as Instrument
Number 2016-0033359 in the Official Records of the County of Marin (the "BMR Agreement").
C. Under the BMR Agreement, the Developer has determined to initially rent the Affordable
Units and to record a BMR Rental Agreement against the Property.
D. The Parties desire to amend the BMR Agreement to ensure that the BMR Agreement and the
BMR Rental Agreement are consistent and will require the Developer to sell the Affordable Units in the
future as provided in the BMR Agreement. The Amendment to Below Market Rate Housing Agreement
and Declaration of Restrictive Covenants that will be recorded on the Property is in the form approved by
the San Rafael City Council on July 17, 2017.
885\0 1 \21 16204'.1
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E. All capitalized terms not otherwise defined in this Amendment are as defined in the BMR
Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:
I . The Recitals set forth above are hereby incorporated into this Agreement by the Parties as
if fully and completely rewritten below
2. Section 13 of the BMR Agreement is hereby amended to read as follows:
Section 13. Release of Property from Agreement
(a) Covenant Running with the Land The covenants and conditions herein
contained shall apply to and bind, during their respective periods of fee ownership, Developer and
its heirs, executors, administrators, successors, transferees, and assignees having or acquiring any
right, title or interest in or to any part of the Property and shall run with and burden the Property
until terminated in accordance with this Section 13. Until the Property is released from the
burdens of this Agreement pursuant to this Section 13, the owners of fee title to the Property shall
expressly make the conditions and covenants contained in this Agreement a part of any deed or
other instrument conveying any interest in the Property.
(b) Completion of Construction.
(i) Affordable Units on Separate Parcels; Subdivision Public Report Issued.
If: (A) all Affordable Units have received a certificate of occupancy or final inspection; (B) all
Affordable Units are located on separate legal parcels; (C) the Developer has complied with the
provisions of this Agreement; and (D) a subdivision public report has been issued under
Business & Professions Code Section 11000 et seq. or successor provisions, then all parts of
the Property except the Affordable Unit Property may be released from the burdens of this
Agreement.
(ii) Affordable Units to be Rented. If the Affordable Units are to be rented,
then the BMR Rental Agreement shall be recorded against the Property, and the Property may
not be released from the burdens of this Agreement and the BMR Rental Agreement until the
expiration of the Density Bonus Term, as defined in the BMR Rental Agreement.
(c) Affordable Units Offered for Sale If the Affordable Units are initially
offered for sale, each Affordable Unit offered for sale shall be released from the burdens of this
Agreement when it is: (i) sold to an Eligible Household in compliance with this Agreement; and
(ii) a Resale Agreement, Deed of Trust and Request for Notice of Default are recorded against the
Affordable Unit. Upon sale of all of the Affordable Units to Eligible Households as prescribed in
this Agreement or offered for sale to the Housing Authority pursuant to Section 7(g), the entire
Property shall be released from this Agreement, and the Agreement shall be released from record
against all portions of the Property.
(d) Recordation of Release. If the Developer believes that any portion of the
Property may be released from the burdens of this Agreement, the Developer shall specify the
parcels to be released and shall request the City and the Marin Housing Authority to execute and
S85\01\2162042.1
6/30/2017
record the release in the Official Records of Marin County in substantially the form attached as
Exhibit "E" to this Agreement.
3. Except as modified by this Amendment, the BMR Agreement shall be unchanged and
shall remain in full force and effect
3. This Amendment may be signed in counterparts, each of which shall constitute one and
the same instrument.
IN WITNESS WHEREOF, the Parties have executed this Amendment by duly authorized
representatives, all on the date first written above.
DEVELOPER:
CITY:
524 Mission Street LLC, a California limited City of San Rafael, a municipal corporation
liability company
By: By:
Managing Member rim chutz
anager
ATTEST:
MARIN HOUSING AUTHORITY: 4RitherBeirne, City Clerk
LJ nasaY lA1rcL
Housing Authority of the County of Marin, a public
body, corporate and politic, created under the
Housing Authority Law of the ate of California APPROVED AS TO FORM:
By: F
Lewis A. Jor i4obertFin
Execu ' Director City Attorney
3
885\01\2162042.1
6/30/2017
record the release in the Official Records of Marin County in substantially the form attached as
Exhibit "E" to this Agreement.
3. Except as modified by this Amendment, the BMR Agreement shall be unchanged and
shall remain in full force and effect
3. This Amendment may be signed in counterparts, each of which shall constitute one and
the same instrument.
IN WITNESS WHEREOF, the Parties have executed this Amendment by duly authorized
representatives, all on the date first written above.
DEVELOPER:
524 Mission Street LLC, a California
liability Gotr�j an
By: c.
Ph is S�tiao7� anaging Member
MARIN HOUSING AUTHORITY:
CITY:
limited City of San Rafael, a municipal corporation
UZ
City Manager
APPROVED AS TO FORM:
Housing Authority of the County of Marin, a public By:
body, corporate and politic, created under the City Attorney
Housing Authority Law of the State of California
By:
Executive Director
3
885\0I12162042. I
6/30/2017
A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF M A V('K
On 21 20( before me, C"pNotary Public,
personally appe ed i_ w(!5 AA( , who proved to me on the basis of
satisfactory evidence to be the person(jr) whose name(s) islafe subscribed to the within instrument and
acknowledged to me that he/&he{twey executed the same in his/he4Hteir authorized capacitykies), and that
by his/Arrhtre4f signature(' on the instrument the persorj(s}, or the entity upon behalf of which the
person(# acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Name: �, z
Notary Public
CAROL J. KAZARIA14 f;
Commission # 2070835 s
Z .'.n Notary Public - California z
Marin County
My Comm. Expires Jun 15, 2018
885\01 \2162012.1
6/30/2017
A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF MaVtVI
On before me, l.�t � IA NI C7. , Notary Public,
personally appears �G rG�C ' CkYMCi. , who proved to me on the basis of
satisfactory evidence to be the ersonXwhose nameA s e s bscribed to the within inst ment and
acknowledged to me that y�t�y executed the same in s er/tl/r authorized capacity(i s), and that
by is , /tq�ir signature�on the instrument the person , or the entity u on behalf of which the
P
person(Xacted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary Public
885\01\-) 162042.1
6/30/2017
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Marin
On 4 `1 '1 1 zo 1 before me,
Lindsay Faye Lara, Notary Public
(insert name and title of the officer)
personally appeared J angf-s sCylu-t-7—
who proved to me on the basis of satisfactory evidence to be the person(g) whose name( is/are
subscribed to the within instrument and acknowledged to me that he/s4eA-hey executed the same in
his/he4l eirauthorized capacity(ies), and that by his/her/thtr signatureH on the instrument the
person(•, or the entity upon behalf of which the person(*acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
LINDSAY FAYE LA -
!A -COMM. #2182818 z
Notary Public . California o
z Marin County
o
Signature1;(ilZc.
(Seal) es Feb. 1o, 2021
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land referred to is situated in the County of Marin, City of San Rafael, State of California,
and is described as follows:
Commencing at the corner formed by the intersection of the Northerly line of Mission Street
with the Easterly line of Irwin Street; running thence Northerly along the Easterly line of Irwin
Street 160 feet; running thence Easterly and parallel with Mission Street 165 feet to the
Westerly line of Park Avenue thence Southerly along said Line of Park Avenue 160 feet, more or
less, to the Northerly line of Mission Street, and thence Westerly along said last mentioned line
of Mission Street, 165 feet to the point of commencement.
885\0I \2162042.1
6/30/3017
RAN
A
2
yo
,rY WITH p 00
CONTRACT ROUTING FORM
INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below.
TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER:
Contracting Department: Community Development
Project Manager: Raffi Boloyan
Extension: x3095
Contractor Name: Mission Irwin Carriage Houses — BMR agreemet #2 (not a contract, a BMR agreement)
Contractor's Contact: Click here to enter tey`
Contact's Email: Click here to enter text.
❑ FPPC: Check if Contractor/Consultant must file Form 700
Step
RESPONSIBLE
DESCRIPTION
COMPLETED
REVIEWER
DEPARTMENT
DATE
Check/Initial
1
Project Manager
a. Email PINS Introductory Notice to Contractor
n/a
KI
('lick here to
b. Email contract (in Word) & attachments to City
cant °r I•
4yh
Atty c/o Laraine.Gittens@cityofsanrafael.org
El
2
City Attorney
a. Review, revise, and comment on draft agreement
xRAX
and return to Project Manager
( Aicgc/4�rjcjtu
b. Confirm insurance requirements, create Job on
cntcr a datc
Project Manager
PINS, send PINS insurance notice to contractor
N/A
3
Forward three (3) originals of final agreement to
8/4/2017
❑
contractor for their signature
4
Project Manager
When necessary, * contractor -signed agreement
agendized for Council approval
7/17/2017
*PSA > $20,000; or Purchase > $35,000; or
Public Works Contract > $125,000
Date of Council approval
PRINT
CONTINUE ROUTING PROCESS WITH HARD COPY
5
Project Manager
Forward signed original agreements to City
2/15/18
RB
Attorney with printed copy of this routing form
6
City Attorney
Review and approve hard copy of signed
agreement
7
City Attorney
Review and approve insurance in PINS , and bonds
r/
City Manager/ Mayor
(for Public Works Contracts)
yV„
8
Agreement executed by Council authorized official
I
Attest signatures, retains original agreement and
9
City Clerk
forwards copies to Project Manager
L7 I I
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