HomeMy WebLinkAboutCD Marin Housing BMR - 1628 Fifth AvenueCOMPLIMENTARY RECORDING PER
GOVERNMENT CODE SECTION 27383
Recording Requested by: City of San Rafael
When Recorded Return to:
City of San Rafael
Attention: City Clerk
1400 Fifth Avenue
San Rafael, CA 94901
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2021-0065133
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BELOW MARKET RATE HOUSING AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
(RENTAL/OWNERSHIP)
Location: 1628 FIFTH AVENUE, SAN RAFAEL, CA 94901
Developer: Vincent and Joseph O'Flynn
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This Below Market Rate Housing Agreement and Declaration of Restrict've Covenants (the
"Agreement") is made and entered into this day of ,Iao-y, ,
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
Joseph O' Flynn and Vincent O' Flynn or any successor in interest ("Developer"), collectively
the "Parties," with reference to the following:
A. The Developer is the owner of that certain real property situated within the corporate
limits of the City, which real property is more particularly described in Exhibit "A"
attached hereto (the "Property"). On February 12, 2019, the San Rafael Planning
Commission approved a nine unit development on the Property.
B. The City has adopted Affordable Housing Requirements in accordance with the
provisions of the Housing Element of its General Plan and Zoning Ordinance Section
14.16.030 of the San Rafael Municipal Code (the "Affordable Housing Requirements").
C. The City has adopted affordable housing requirements contained in the Zoning Ordinance
Section 14.16.030 of the San Rafael Municipal Code (the "Affordable Housing
Requirements"). Pursuant to the Affordable Housing Requirements and as a condition of
approval of that Tentative Subdivision map approved for the Property by the Planning
Commission on February 12, 2019, the Development will provide 15 off street parking
spaces with a 4 foot garage setback reduction allowed as State density bonus concession
for providing one affordable housing unit. The Developer is required to enter into this
09/28/2020
Agreement for the purpose of assuring that one (1) two-bedroom unit is made available
for sale to low income households under certain terms and conditions (the "Affordable
Unit"). The Affordable Unit is designated with an arrow on the attached Proposed Site
Plan shown in Exhibit `B" as street addresses for the individual units have not yet been
assigned. The entire project is located at 1628 Fifth Avenue, San Rafael, County of
Marin, California, as more particularly described in Exhibit "A" attached hereto and
made a part hereof. The remaining units in the Development are "Market Rate Units.
The Developer has paid Marin Housing a fee of $1,000.00 to prepare this Below Market
Rate Agreement (Rental/Ownership).
D. Under Government Code Section 65915 ("Density Bonus Law"), as part of the
Development, Developer applied for, and City granted, the following regulatory
incentives in exchange for the Developer's provision of the Affordable Units: (1) two
additional market units as a density bonus; and (2) reduced parking requirements as
allowed by Density Bonus Law.
E. Pursuant to the Affordable Housing Requirements, Density Bonus Law, and the
conditions of approval for the Development, the Developer is required to enter into this
Agreement on terms acceptable to the City and consistent with Density Bonus Law. This
Agreement shall be executed and recorded against the Property prior to the recordation of
any parcel map or final map or issuance of any building permit for the Development. The
purpose of this Agreement is to set forth the terms and conditions for producing and
marketing the Affordable Units in greater specificity and to ensure that the Affordable
Units are built as part of the Development.
F. Marin Housing Authority is authorized by law to participate in programs that provide
housing for households of very low, low, and moderate income and is by experience
qualified to screen and determine the eligibility of applicants for very low, low, and
moderate income housing.
G. The Parties hereto desire, by this Agreement, to cooperate in implementing the efforts of
the Developer to comply with the Affordable Housing Requirements.
NOW THEREFORE, it is hereby agreed by and between the Parties hereto
as follows:
AGREEMENT
The foregoing recitals are hereby incorporated by reference and made part
of this Agreement.
Section 1. Definitions. In addition to those terms defined in the Recitals and elsewhere
in this Agreement, the following terms are specially defined for the purposes of this Agreement:
(a) "Affordable Ownership Price" means a sales price calculated by
the Marin Housing Authority that includes a reasonable down payment and results in a
0A
Monthly Housing Payment during the first calendar year of a household's occupancy that,
for Low Income Households, is equal to or less than one -twelfth (1/12) of thirty-three
percent (33%) of sixty percent (60%) of Area Median Income, as adjusted for Assumed
Household Size. An example of the calculations and methodology to be used to determine
the Affordable Ownership Price is illustrated in Exhibit "C" attached hereto.
(b) "Affordable Rent" means total monthly housing expenses as
calculated by the Marin Housing Authority for use and occupancy of an Affordable Unit
and for land and associated facilities, including parking; any separately charged fees or
service charges assessed which are required of all tenants, other than security deposits;
and including any charges assessed by a public or private entity and paid by the tenant;
and a reasonable allowance for utilities (pursuant to a schedule provided by the Marin
Housing Authority), including garbage collection, sewer, water, electricity, gas, other
heating, cooking and refrigeration fuel, but not telephone or cable television service, that,
(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; and (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, as adjusted
for Assumed Household Size. An example of the calculations and methodology to be used
to determine the Affordable Rent is illustrated in Exhibit "D" attached hereto.
(c) "Affordable Unit Property" means the legal parcel(s) of land on
which the Affordable Units will be constructed, together with any Affordable Unit and
appurtenant improvements constructed on such land.
(d) "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.
(e) "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.
(f) "BMR Rental Agreement" means that Below Market Rate Rental
Unit Agreement and Declaration of Restrictive Covenants between the Developer and the
City, to be recorded against the Property if the Developer chooses to initially rent the
Affordable Units.
(g) "Deed of Trust" means the deed of trust, in the form provided by
the Marin Housing Authority, executed by each buyer of an Affordable Unit, securing the
buyer's performance under the Resale Agreement.
(h) "Eligible Household" means a household that has been determined
by the Marin Housing Authority to be eligible to purchase or rent an Affordable Unit
pursuant to the requirements for eligibility adopted by the City and specified in Exhibit
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"B" attached hereto.
(i) "Low Income Household" means a household whose 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.
0) "Low Income Affordable Unit" means an Affordable Unit reserved
for occupancy by Low Income Households at an Affordable Ownership Price or
Affordable Rent.
(k) "Moderate Income Household" means a household whose income
does not exceed the moderate income limits applicable to Marin County, adjusted for
household size, as published annually by the California Department of Housing and
Community Development.
(1) "Monthly Housing Payment" is determined by the Marin Housing
Authority and includes monthly payment of mortgage interest and principal, property
taxes, mortgage insurance, homeowner's insurance and homeowners' association dues.
(m) "Resale Agreement" means the Resale and Refinancing Restriction
Agreement and Option to Purchase, in the form provided by the Marin Housing Authority,
executed by each buyer of an Affordable Unit, the City, and Marin Housing Authority.
(n) "Very Low -Income Household" means a household whose 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.
(o) "Very Low -Income Affordable Unit" means an Affordable Unit
reserved for rent by Very Low -Income Households at an Affordable Rent.
Section 2. Satisfaction of Affordable Housing Requirement. The Affordable Housing
Requirements and Density Bonus Law shall be satisfied with respect to the Property if: (a) the
Developer constructs or causes to be constructed the Affordable Units meeting the requirements
of Sections 3 through 5 below, in compliance with the schedule set forth in Section 6 below; and
(b) Developer either: (i) offers all dwelling units in the Development for sale and sells all
Affordable Units to Eligible Households in compliance with Sections 7 through 9 below, or, (ii)
offers all dwelling units in the Development for rent, and rents all Affordable Units to Eligible
Households in compliance with Sections 10-15 below.
Section 3. Number of Affordable Units. Developer shall construct, or cause to be
constructed, one (1) Affordable Unit. If the Affordable Unit is initially sold, the unit shall be a
Low Income Affordable Unit. If the Affordable Unit is initially rented, the unit shall be a Very
Low Income Affordable Unit.
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Section 4. Location of Affordable Units. The Affordable Unit shall be constructed on
the Property in the location(s) shown or described in Exhibit "E" attached hereto.
Section 5. Appearance, Size, Bedroom Count and Tenure. The Affordable Unit shall be
of the same general design and exterior appearance as the Market Rate Units, of comparable
quality of construction, and with the same number of average bedrooms as the Market Rate
Units. Interior features of the Affordable Unit shall be durable and of good quality. The
Affordable Unit shall include the number of bedrooms, square footage, and tenure indicated in
Exhibit "E" attached hereto.
Section 6. Schedule for Developing Affordable Units, Decision Regarding Tenure.
Developer shall provide the Affordable Units pursuant to the following schedule:
(a) Prior to recordation of any final or parcel map or issuance of any
building permit for the Development, this Agreement shall be duly executed by the City,
Marin Housing Authority, and the Developer and recorded against the Property.
(b) Building permits for the Affordable Units shall be issued concurrently
with building permits for the Market Rate Units, such that at least one building permit for
an Affordable Unit shall be issued for each six building permits for Market Rate Units.
(c) 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 at least one certificate of occupancy or final inspection for an
Affordable Unit shall be issued for each six certificates of occupancy or final inspections
for Market Rate Units.
(d) At least one hundred twenty (120) days before issuance of any
certificate of occupancy or approval of a final inspection for any dwelling unit in the
Development, Developer shall inform Marin Housing Authority and City whether all
dwelling units in the Development will be offered for sale or whether all dwelling units in
the Development will be offered for rent. If Developer chooses to offer all dwelling units
in the Development for sale, then the Affordable Units shall be offered for sale to Eligible
Households. The Developer reserves the right to change the development from ownership
to rental up until the time a minimum of one unit has been sold. For the purposes of this
Section, a unit will not be considered sold until the close of escrow to a third party. If
Developer chooses to offer all the dwelling units in the Development for rent, then the
Affordable Units shall be rented to Eligible Households. If Developer chooses to sell the
Affordable Units, Developer shall follow the procedures in Sections 7 — 9 of this
Agreement. If Developer chooses to rent the Affordable Units, Developer shall follow the
procedures in Sections 10-16 of this Agreement.
Section 7. Sale of Affordable Units to Eligible Households. Following completion of
construction, if the Developer has determined that all dwelling units in the Development shall be
initially offered for sale, the Developer shall sell all Affordable Units to Eligible Households at
the Affordable Ownership Price established by the Marin Housing Authority as described in this
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Section. Developer shall make a good faith effort to market the Affordable Units to Eligible
Households.
(a) The Developer shall provide the Marin Housing Authority with written
notice at least one hundred twenty (120) days before issuance of any certificate of
occupancy or approval of a final inspection for any dwelling unit in the Development or
approval of any final inspection for an Affordable Unit. The notice shall include the
number of bedrooms and required income level of the unit.
(b) The Developer agrees that the Affordable Ownership Price for the
Affordable Units shall not exceed the prices set forth in Exhibit "C" attached hereto,
unless modified by the Marin Housing Authority as described in subsections (c) and (d)
below. Developer acknowledges and agrees that the Affordable Ownership Prices as
shown in Exhibit "C" shall be calculated by Marin Housing Authority in its reasonable
discretion in interpreting the requirements of this Agreement, and that Marin Housing
Authority's calculation of the Affordable Ownership Prices shall be consistent with the
methodology illustrated in Exhibit "C", shall be adjusted annually consistent with the Area
Median Income determinations and shall be binding on the Developer. The Affordable
Ownership Price shall be the absolute maximum price that the Developer or any other
seller may receive as compensation for the sale of an Affordable Unit. The Affordable
Ownership Price does not include proration of taxes, utilities, and homeowner's
association fees, nor does it include such closing costs as insurance premiums, escrow
costs, transfer taxes, recording fees, document preparation cost or similar items.
(c) Recalculation of the Affordable Ownership Price shall be permitted at
the time that the Developer provides written notice to Marin Housing Authority one
hundred twenty (120) days prior to the issuance of any certificate of occupancy or
approval of any final inspection for an Affordable Unit if (i) the mortgage interest rate
shown in Exhibit "C" is substantially different from the then -current market interest rate;
(ii) the Area Median Income has changed from that set forth in Exhibit "C"; (iii) the
homeownership costs such as property insurance has changed from that set forth in
Exhibit "C", or (iv) the final approved homeowners association dues are different from the
estimate shown in Exhibit "C."
(d) Upon receipt of the Developer's 120 -day notice, the Affordable
Ownership Price shall be recalculated by Marin Housing Authority using: (i) the most
affordable available mortgage rate for a thirty (30) -year, fixed-rate mortgage as
determined by Marin Housing Authority; (ii) the current Area Median Income; and (iii)
the final approved homeowners association dues. Such an adjustment to the Affordable
Ownership Price shall be allowed more than one time only if mutually agreed by all
Parties to this Agreement.
(e) Developer agrees to offer the Affordable Units for sale only to Eligible
Households. Marin Housing Authority agrees to process applications and certify the
eligibility of applicants as Low Income Households. In certifying eligibility of applicants,
Marin Housing Authority shall adhere to the requirements for eligibility adopted by the
City and specified in Exhibit "B". Selection of Eligible Households falling within any of
the priorities established in Exhibit "B" shall be determined by a drawing or other
equitable method mutually agreed upon by the City and Marin Housing Authority and
administered by the Marin Housing Authority. Developer shall not unreasonably delay its
review and acceptance or rejection of any purchase offer submitted by an applicant
supplied by Marin Housing Authority.
(f) During the 120 day notice period (Selling Period) the Marin Housing
Authority shall provide timely written verification of the sales status of each Affordable
Unit to the Developer and the Developer shall verbally report any confidential sales status
information to the Marin Housing Authority.
(g) In the event that any Affordable Unit does not close escrow on the date
which is the later of the following to occur: (i) 90 days after the expiration of the 120 -day
notice period, or (ii) 90 days after the certificate of occupancy has been issued, the
Developer shall, in writing, offer the Affordable Unit for sale to the Marin Housing
Authority or assignee at the Affordable Ownership Price. Within ten (10) working days
after receipt of such written notice, Marin Housing Authority shall notify the Developer in
writing whether or not it will purchase the Affordable Unit at the Affordable Ownership
Price or whether it has assigned the offer to the City, another public agency, a non-profit
organization, or an Eligible Purchaser. If Marin Housing Authority notifies the Developer
that it or its assignee will purchase the Affordable Unit, the Developer shall execute a
purchase and sale agreement and other documents described in Sections 8 and 9 below, as
applicable, to sell the Affordable Unit to Marin Housing Authority or its assignee at the
Affordable Ownership Price. Close of escrow shall take place on the date which is the
later of the following to occur; (i) sixty (60) days after the date that the purchase and sale
agreement is executed, or (ii) ten (10) days after Developer has done all acts and executed
all documents required for close of escrow. The Developer shall convey title to the
Affordable Unit at the close of escrow free and clear of any mortgage, lien, or other
encumbrance, unless approved in advance in writing by the Marin Housing Authority or
assignee.
(h) In the event that Marin Housing Authority declines to purchase the
Affordable Unit or to assign the offer provided pursuant to subsection (g) of this Section
within ten (10) working days after receipt of such written notice, or does not close escrow
on the unit within 60 days, the Affordable Unit may be sold by the Developer without
restrictions as to price, and Sections 8 and 9 below will not apply to the sale of the
Affordable Unit. In such event, the Developer shall pay to the City at close of escrow one
hundred percent (100%) of the difference between the actual sales price and the
Affordable Ownership Price less any real estate commissions not to exceed six percent
(6%) of the sales price. The City shall pay to Marin Housing Authority ten percent (10%)
of this sum for administrative costs related to administration of the City's Affordable
Housing Requirements and shall utilize the remaining amount to provide housing
affordable to Very Low, Low, and Moderate Income Households. Following payment of
all sums due to the City, City shall release the property from this Agreement as specified
in Section 18.
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Section 8. Marin Houji1jrLZ-AuthQdV Approval of Homebuyer -Documents. Approval of
the following documents by the Marin Housing Authority shall be required prior to the offering
for sale of the Affordable Units.
(a) The Form of Purchase and Sale Agreements for the Affordable Units
prepared by the Developer.
(b) Purchase and sale agreements between Developer and Eligible
Households shall include requirements that: (i) Eligible Households shall execute
documents for the benefit of the City and Marin Housing Authority as described in
Section 9 below; and (ii) Marin Housing Authority shall be paid a transaction fee of 2% of
the Affordable Ownership Price at close of escrow, split evenly between the Eligible
Household (Buyer) and the Developer (Seller). A copy of the ratified Purchase and Sale
Agreement shall be forwarded to the Marin Housing Authority upon execution. Except
for terms required to effectuate this Agreement, the Affordable Units shall be offered to
Eligible Purchasers on the same terms as the Market Rate Units are offered to purchasers.
(c) Form of Resale Agreement, Deed of Trust, Request for Notice of
Default and Sale, and Borrower's Disclosure (to be prepared by the Marin Housing
Authority, following Developer's 120 -day notice to Marin Housing Authority).
(d) The preliminary Department of Real Estate public report for the
Development, including the Affordable Units (to be obtained by the Developer and
submitted to the Marin Housing Authority).
(e) Developer's form escrow instructions (to be prepared by the Developer
and submitted to the Marin Housing Authority).
Section 9. Homebu er Documents and Securily Instruments. Prior to the sale of each
Affordable Unit, Developer shall ensure that:
(a) The Eligible Household and the Marin Housing Authority execute the
Resale Agreement in the form provided by the Marin Housing Authority. The escrow
instructions shall stipulate that the Resale Agreement shall be recorded against the
Affordable Unit at close of escrow on the sale to the Eligible Household; and that the
Resale Agreement shall be recorded junior only to the lien of the deed of trust securing the
Eligible Household's first mortgage loan, or to a second mortgage loan only if such loan is
provided by a public agency which requires such subordination, or as otherwise approved
in writing by the Marin Housing Authority.
(b) The Eligible Household signs the Deed of Trust to secure performance
of the Eligible Household's covenants under the Resale Agreement. The Deed of Trust
shall be recorded against the Affordable Unit, subordinate only to the Resale Agreement
and the lien of the deed of trust securing the Eligible Household's first mortgage loan or to
a second mortgage loan only if such loan is provided by a public agency which requires
such subordination, or as otherwise approved in writing by the Marin Housing Authority.
(c) A Request for Notice of Default and Sale is recorded for each deed of
trust recorded at close of escrow.
(d) The Eligible Household signs the Borrower's Disclosure in the form
provided by the Marin Housing Authority.
(e) A copy of the ratified Purchase and Sale Agreement shall be forwarded
to the Marin Housing Authority upon execution. Except for terms required to effectuate
this Agreement, the Affordable Units shall be offered to Eligible Purchasers on the same
terms as the Market Rate Units are offered to purchasers.
(f) Within five (5) days following closing of the sale of any Affordable
Unit, Developer shall forward to the Marin Housing Authority copies of the buyer's and
seller's settlement statements and all closing documents. Developer shall retain all records
related to compliance with obligations under this Agreement and the Affordable Housing
Requirements for a period not less than two (2) years from the date of sale of all units in
the Development and make them available on five (5) business days' written notice to
Marin Housing Authority or City employees or others designated by the Marin Housing
Authority or City for the purposes of inspection and copying.
Section 10. Rental Affordable Units. If the Developer elects to initially rent the
Affordable Units following completion of construction, the Developer shall rent any Affordable
Units to Eligible Households at Affordable Rents in compliance with this Agreement. Pursuant
to Section 6, the Developer reserves the right to change the development from ownership to
rental up until the time a minimum of one unit in the Development has been sold.
(a) The Developer agrees that the initial Affordable Rent for the
Affordable Units shall not exceed the prices set forth in Exhibit "D" attached hereto,
unless modified by the Marin Housing Authority as described in subsections (b) and (c)
below. Developer acknowledges and agrees that the Affordable Rents as shown in Exhibit
"D" shall be calculated by Marin Housing Authority in its reasonable discretion in
interpreting the requirements of this Agreement, and that Marin Housing Authority's
calculation of the Affordable Rents shall be consistent with the methodology illustrated in
Exhibit "D" and shall be binding on the Developer.
(b) Recalculation of the Affordable Rents shall be permitted at the time
that the Developer provides written notice to the City one hundred twenty (120) days prior
to the issuance of any certificate of occupancy or approval of any final inspection for an
Affordable Unit if. (i) Area Median Income has changed from that set forth in Exhibit
"D"; (ii) utilities included in the contract rent have changed from that set forth in Exhibit
"D"; (iii) Marin Housing Authority has prepared a new schedule of assumed utility costs;
or (iv) other fees charged to tenants are different from that shown in Exhibit "D."
(c) Upon receipt of the Developer's 120 -day notice, the Affordable Rents
shall be recalculated by Marin Housing Authority using: (i) the current Area Median
Income; (ii) utilities included in contract rent; (iii) Marin Housing Authority schedule of
assumed utility costs; and (iv) any changes in other fees charged to tenants. Such an
adjustment to the Affordable Rents shall be allowed more than one time only if mutually
agreed by all the Parties to this Agreement.
(d) At least sixty (60) days before any Affordable Units are rented; the
Developer shall 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. The Marketing Plan
shall include the information that will be provided to applicants of the Affordable Units,
including a form of the proposed lease, the conditions and restrictions applicable to
occupancy of the Affordable Units, the 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 the Median Household Income.
(e) At least sixty (60) 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 10. (f) below; and the proposed Affordable Rent for the Affordable
Units for City and Marin Housing Authority review and approval. The Affordable Units
shall be marketed concurrently with the marketing of the Market Rate Units.
(f) The City shall not withhold approval from any lease form that:
provides that the Tenant's Household Income is subject to annual
certification;
ii. 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;
iii. 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;
IG]
iv. 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;
v. includes reasonable rules of conduct consistent with California law;
vi. 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;
vii. includes if desired, the obligation for Tenant to provide a security deposit
not exceeding one months' Rent.
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Section 11. Affordable Rental Units Not Subject to Costa -Hawkins Act. If
Developer elects to initially rent the Affordable Units, Developer hereby acknowledges
that the density bonus and parking reductions received by the Developer under Density
Bonus Law are forms of assistance specified in Chapter 4.3 (commencing with Section
65915) of Division 1 of Title 7 of the Government Code. The Developer further
covenants that it has agreed to limit rents under Civil Code Sections 1954.52(b) and
1954.53(a) (2), as required by this Agreement, in consideration for the City's approval of
the density bonus and parking reductions as proposed by the Developer. Civil Code
Sections 1954.52(b) and 1954.53(a) (2) provide that, where a developer has received
such incentives, certain provisions of Civil Code Section 1954.51 et sea. (the "Costa -
Hawkins Act") do not apply if a developer has so agreed by contract. The Developer
hereby agrees that any rental Affordable Units provided pursuant to this Agreement are
not subject to Civil Code Section 1954.52(a) or any other provision of the Costa -
Hawkins Act inconsistent with controls on rents, and further agrees that any limitations
on rents imposed on the Affordable Units by subsequent agreements are in conformance
with the Costa -Hawkins Act.
Section 12. Rent Regulatory Provisions. If the Developer elects to initially rent the
Affordable Units following completion of construction, the Developer will adhere to the
following provisions:
(a) To provide one Affordable Unit containing a minimum of two
bedrooms.
(b) The Affordable Unit shall be rented to and occupied by or, if vacant,
available for occupancy by, a Very Low Income Household. The Affordable Unit 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.
(c) The Developer shall use a form of Tenant lease approved by the City
for the Affordable Units pursuant to Section 10 (f) above.
(d) The total maximum Rent charged to Tenants of the Affordable Units
shall not exceed Affordable Rent. The Affordable Rent cannot exceed the Rents for a
comparable market rate unit of the same bedroom count. The Affordable Rent shall be the
absolute maximum price that the Developer or any other Owner representative may
receive as compensation for the rental of an Affordable Unit, including all fees for housing
services, parking, utilities and other services. The Developer or successor may not charge
or receive any additional compensation for an Affordable Unit, regardless of the
availability of additional Federal, State or local housing subsidies.
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(e) 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 D. 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.
(f) Annual Affordable Rent increases shall be based on the increases in the
Area Median Income and shall not be less that the baseline rents established in this
agreement.
(g) Such rent may not increase more than once every twelve (12) months.
Manager shall provide each tenant of an Affordable Unit with at least sixty (60) days
written notice of any increase in the Affordable Rent.
(h) The Developer will review applications from prospective Tenants of
the Affordable Units, on the same basis as all other prospective Tenants. The Developer
shall not apply selection criteria to 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 program that are more burdensome than the 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.
Section 13. Increased Income of Tenants
(a) 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 sixty (60) days written notice to the Tenant, the Tenant's Rent may
be increased to Affordable Rent for Low Income Households.
(b) 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 sixty (60) 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) 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 Unit 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.
Section 14. Rental Retorting Requirement. Upon initial occupancy and
annually thereafter, the Developer will obtain, complete and maintain on file Household
Income certifications Exhibit D), or a similar form as may be approved by the City, for
each Tenant renting an Affordable Unit.
(a) 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 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. 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.
(b) 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. insert 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:
14
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 Affordable Rent charged for the year for the
Affordable Units.
e. Certification that neither the Developer 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 above.
(c) 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.
(d) 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.
(e) The Developer agrees to pay to the City 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 F.
Section 15. Management of Property and Praperty,_Maintenance.
(a) 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.
(b) 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.
15
(c) In the event that the Developer breaches any of the covenants
contained in this Section 15 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.
(d) 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, 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.
(e) 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.
Section 16. General Provisions
(a) 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.
(b) 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
ce,
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.
(c) 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.
There shall be no discrimination against or segregation of any person or group of persons,
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.
Section 17. Sale of Affordable Units Offered for Rent. If Affordable Units initially
offered for rent are located on a separate legal parcel due to recordation of a final or parcel map
at any time, then Developer or a future owner of the Affordable Units may sell the Affordable
Units pursuant to the terms of this Section 17. The Affordable Units shall be sold to Eligible
Purchasers at an Affordable Ownership Price to Low Income Households, as established by this
agreement, except that each Affordable Unit shall first be offered for sale to the existing tenant at
the Affordable Ownership Price as adjusted for the current year's Area Median Income. At least
one hundred twenty (120) days before offering a rental Affordable Unit for sale, the Developer
or current owner shall provide the City and the Marin Housing Authority with written notice of
the proposed sale of the Affordable Unit, including the number of bedrooms and required income
level of the unit, and shall comply with the procedures specified in Sections 7 through 9 of this
Agreement in the sale of the Affordable Unit. Additional requirements for sale of Affordable
Units initially rented may be established by the City of San Rafael; including but not limited to
provisions for notice to tenants, rights of first refusal, limitations on rents, and extended lease
provisions.
Section 18. Release of ProppM From Agreement.
(a) 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 18. Until the Property is released from the
burdens of this Agreement pursuant to this Section 18, 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.
17
(b) If the Affordable Units are initially offered for sale, all parts of the
Property except for the Affordable Unit Property shall be released from the burdens of this
Agreement upon recordation of the final map and the City's final inspection of the
Affordable Units. 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.
(c) 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 to execute and record the release in the Official
Records of Marin County in substantially the form attached as Exhibit "G" to this
Agreement.
Section 19. Default and Remedies. Failure of the Developer to cure any default in the
Developer's obligations under the terms of this Agreement within thirty (30) days after the
delivery of a written notice of default from the Marin Housing Authority or the City (or such
longer period of time up to an additional one hundred twenty (120) days as may be necessary to
remedy such default, provided that the Developer has commenced action during the thirty (30)
days necessary to remedy such default, and the Developer is proceeding with reasonable
diligence to remedy such default) will constitute a default under this Agreement, Density Bonus
Law, and the Affordable Housing Requirements, and, in addition to any other remedy authorized
by law or equity for breach of this Agreement, Marin Housing Authority and/or the City may
exercise any and all remedies available to it with respect to the Developer's failure to satisfy the
terms of this Agreement, Density Bonus Law, and the Affordable Housing Requirements,
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;
(b) exercising any remedies available under the Subdivision Map Act, the
Affordable Housing Requirements, Density Bonus Law, the City's Municipal Code, or
otherwise, with respect to the Developer's failure to satisfy the terms of this Agreement,
Density Bonus Law, and the Affordable Housing Requirements;
(c) 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;
18
(d) where one or more persons have received a financial benefit as a result of
violation of this Agreement or of any requirement imposed under the Affordable Housing
Requirements or Density Bonus Law, assessing, and 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.
19
Section 20. Remedies Cumulative. No right, power, or remedy given to the Marin
Housing Authority or to the City by the terms of this Agreement or the Affordable Housing
Requirements 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 Marin Housing Authority and the City by the terms of any such
document, the Affordable Housing Requirements, or any statute or otherwise against Developer
and any other person. Neither the failure nor any delay on the part of the Marin Housing
Authority or the City to exercise any such rights and remedies shall operate as a waiver thereof,
nor shall any single or partial exercise by the Marin Housing Authority or the City of any such
right or remedy preclude any other or further exercise of such right or remedy, or any other right
or remedy.
Section 21. Attorney's Fees and Costs. If the Marin Housing Authority, the City, or the
Developer is required to initiate legal proceedings to enforce its rights under this Agreement, the
prevailing party in such action shall be entitled to an award of reasonable attorneys' fees and
costs in addition to any other recovery under this Agreement.
Section 22. Hold Harmless and Indemnification. Except for an award of attorneys fee to
Developer pursuant to Section 21, Developer will indemnify and hold harmless Marin Housing
Authority and City 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 without limitation
the construction or sale of any unit in the Development, 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 Marin Housing Authority or the City. The provisions of
this Section 22 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
22 shall remain in full force and effect.
Section 23. Hold Harmless — City. The City shall indemnify and hold harmless Marin
Housing Authority, its officers, officials, employees and agents, from and against all claims,
damages, loses and expenses including attorney's fees arising out of the performance of this
Agreement, caused in whole or part by any negligent act or omission of the City, except where
caused by the active negligence, sole negligence, or willful misconduct of the Marin Housing
Authority.
20
Section 24. 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,
or by express courier service, to the Parry to receive such notice at the addresses set forth below:
To the City: City of San Rafael
Attention: Community Development Department
P.O. Box 151560
San Rafael, CA 94915-1560
To the Marin Housing Authority:
Attention:
To the Developer:
Marin Housing Authority
Homeownership Department
4020 Civic Center Drive
San Rafael, CA 94903-4173
Vincent O' Flynn
90 Magellan Avenue
San Francisco, Ca 94116
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.
Section 25. Inteacted Agreement. This Agreement constitutes the entire Agreement
between the parties and no modification shall be binding unless reduced to writing and signed by
the Parties.
Section 26. Amendment of Agreement. This Agreement shall remain in effect for so
long as the Property is subject to inclusionary housing obligations pursuant to the Affordable
Housing Requirements, unless released pursuant to Section 18. 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 Developer.
Section 27. No Joint Venture or Partnership. Nothing contained in this Agreement or
any document executed pursuant to this Agreement shall be construed as creating a joint venture
or partnership between Marin Housing Authority, City, and Developer. Nothing contained in this
Agreement shall create or justify any claim against the Marin Housing Authority or City 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.
Section 28. 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.
21
Section 29. Waivers. Any waiver by Marin Housing Authority or the City of any
obligation or condition in this Agreement must be in writing. No waiver will be implied from
any delay or failure by Marin Housing Authority or the City 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 Marin Housing Authority or the City 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.
Section 30. Title of Parts and Sections. Any titles of the sections or subsections of this
Agreement are inserted for convenience of reference only and shall be disregarded in interpreting
any part of the Agreement's provisions.
Section 31. Multiple Ori&inph-, Coun=art. This Agreement may be executed in
multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
Section 32. 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, or if any provision of this Agreement is rendered invalid or
unenforceable pursuant to any California statute which became effective after the effective date
of this Agreement, the remaining portions of this Agreement shall nevertheless remain in full
force and effect.
Section 33. Exhibits. The following exhibits are attached to this Agreement:
Exhibit A
Legal Description of the Property
Exhibit B
Eligibility Requirements and Priorities
Exhibit C
Sample Calculation of Affordable Ownership Price
Exhibit D
Sample Calculation of Affordable Rent
Exhibit E
Location of Affordable Units
Exhibit F
Certificate of Compliance
Exhibit G
Form of Release
• Exhibit E may also be viewed at San Rafael City Hall, Community Development
Department, 1400 Fifth Avenue, San Rafael, CA 94901
22
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed as of the day and year first above written.
DEVELOPER:
Vincent O' Flynn & Joseph O'Flynn
oseph O'
By: v I
Vincent O'
HOUSING AUTHORITY:
CITY:
City of San Rafael, a municipal
corporation
By:
.A% --,
Jim S utz
City Mar<
APPROVED AS TO FORM:
Housing Authority of the County of
Marin, a public body, corporate and 13y:
politic, created der the Housing City � ttorney
Authority L�f ze tate of California
23
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the
indiVldLial who signed the document to which this certificate is attached. and not the
truthftilness. accuracy. or validity of that document.
STATE OF CALIFORNIA )
COUNTY OF MARIN )
?02__ before me Terris Gillett, Notary Public a Notary Public
On JUN 2 4 2021
personally appeared & who proved to nle on the basis of satisfactory evidence to
be the person(j) ,yhose name(/) is4Ere subscribed to the within instrument and acknowledged to
1110 that hC/S4W ! M e;.\Maed the sante in his/lrrrkkrcir• authorized capacit},(is). and that by
hisllicr."-elr si�.:mit Lire(s) 011 the instrument t11e per-sott(,3). Or the C11Iitj' LIP011 be11aI r of which the
persoi](-st acted. executed the instrument.
I certif}' 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.
}� r =Notary
IL:ETT
Signature �/ a 2Co(308279 Z
Calirorr?laTerrie Gillett, Notary Public s Nov. 5, 20230
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,
STATE OF CALIFORNIA
COUNTY OF Wr n
N,
On Apr; 12.2,2021 , before me, u [ l p, Ri vcs. zor C[ u
Notary Public, personally appeared joseph OVYM , who
proved to me on the basis of satisfactory lve Bence 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.
LILIARIVAS CRESCENCIO
0 Y COMM. # 2286728
NOTARY PUBLIC -CALIFORNIA
MARIN cou►�iY
r . My Comm Expires APRIL 27, 2023
885\01\1897334.2
5/15/2016
Name: C»'
Notary Public
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,
STATE OF CALIFORNIA
COUNTY OF Main
On A Pri � 22 2�Z l ,before me, jA V�4 CwenC16
Notary Public, personally appeared,/ tt ncen+ Mon '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.
885\01\1897334.2
5/15/2016
Name: _1i1ia_ PjW[- 2W%140�11 -
Notary Public
LILIARIVASCRESCENCIO
COMM. # 2266728
NOTARY PUBLIC -CALIFORNIA
M,ARIN COUNTY
j
My Comm. Expires APRIL 27, 2023
885\01\1897334.2
5/15/2016
Name: _1i1ia_ PjW[- 2W%140�11 -
Notary Public
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 _OC�hiprOV. &4-p9V before me,
Brenna Kathleen Nurmi, Notary Public
(insert name and title of the officer)
personally appeared La
who proved to me on the basis of satisfactory evidence to be the p rson 4 whose name l 1
scribed to the within instrument and acknowle ed t me tha h s lth i executed the same in
�5b
hrltiir authorized capacity i s), and that b his�'hth Ir 5lgnaturew on the instrument the
personX, 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.
Signature
BRENNA KATHLEEN NURMI
Notary Public - California
Marin County 3:
Commission # 2297544
(Seal) My Comm. Expires Jul 18, 2023
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:
I_MI
ORDER NO.: 0436029558
EXHIBIT A
The land referred to is situated in the County of Marin, City of San Rafael, State of California,
and is described as follows:
Being all of Parcel Two and a portion of Parcel One as said Parcels are described in that certain
Grant Deed from Brian Taylor Pierce, an unmarried man and Brian Taylor Pierce, Successor
Trustee of the Robert Pearce Living Trust to Vincent O'Flynn, an unmarried man and Joseph
O'Flynn, a married man, as his sole and separate property, as Joint Tenants recorded August 8,
2017 as Document No. 2017-0031709 in the Office of the Recorder of the County of Marin,
State of California, particularly described as follows:
Beginning at the point on the Northerly line of Fifth Avenue, said point being South 830 13' 45"
East 74.13 feet from the intersection of said Northerly line of Fifth Avenue and the Easterly line
of "G" Street, said point also being North 830 13' 45' West 2.25 feet from the Southeasterly
corner of said Parcel One; thence from said Point of Beginning, leaving said Northerly line,
North 060 58' 29" East 108.44 feet to a point on the Northerly line of said Parcel One, said point
being South 830 15' 00" East 55.49 feet from the Northwesterly corner of said Parcel One;
thence Easterly along last said Northerly line South 830 15' 00" East 11.50 feet to the
Northeasterly corner of said Parcel One, said point also being on the Westerly line of said Parcel
Two; thence Northerly along last said Westerly line North 110 50' 57" East 19.84 feet to the
Northwesterly corner of said Parcel Two; thence Easterly along the Northerly line of said Parcel
Two South 830 15' 00" East 76.50 feet to the Northeasterly corner of said Parcel Two; thence
Southerly along the Easterly line of said Parcel Two South 110 54' 11" West 128.75 feet to the
Southeasterly corner of said Parcel Two, said point being on the said Northerly line of said Fifth
Avenue; thence Westerly along said Northerly line, North 830 13' 45" West 78.63 feet to the
Point of Beginning.
And as described in the Lot Line Adjustment by the City of San Rafael, File Number LLA18-002,
recorded December 20, 2019, in Official Records under Recorder's Series Number 201948474,
Marin County Records.
APN: 011-193-10
Page 1 of 1
EXHIBIT B
ELIGIBILITY REQUIREMENTS AND PRIORITIES
Eligibility Requirements
In determining and certifying eligibility of applicants for the Development, Marin Housing
Authority shall adhere to the following criteria:
1. Applicants shall be Very Low Income Households or Low Income Households, as applicable, as
defined in this Agreement.
2. For ownership Affordable Units, the applicant must qualify as a first time homebuyer defined as
not having owned a primary residential property within a three-year period preceding purchase of
an Affordable Unit.
3. The applicant must have at least two persons in his/her household to purchase or rent a two-
bedroom unit, three persons to purchase or rent a three-bedroom unit, and one additional person
for each additional bedroom, unless a reasonable accommodation is required for a caretaker for a
disabled person.
4. Eligible households for ownership Affordable Units must provide Marin Housing Authority with
a mortgage loan pre -approval or commitment to lend and supporting documentation from an
acceptable lender demonstrating financial capacity to purchase the Affordable Unit at the
Affordable Ownership Price.
Selection of Homebuyers or Renters
In selecting prospective purchasers or renters from among all eligible applicants, a drawing shall
be conducted. The City of San Rafael has determined that the following priorities shall be
employed in conducting the drawing to select prospective purchasers or renters. All names shall
be drawn from the group of applicants falling within the first priority before names are drawn from
the second and subsequent priority groups.
1. First priority in the drawing shall go to applicants living or working in Marin County.
2. Second priority in the drawing shall go to all other applicants.
EXHIBIT C
Estimated Sales Prices using 2021 Median Income
Low Income Unit 80% AMI Density Bonus
1628 Fifth
Target Income: 70%
Eligibility limit: 80%
Number of bedrooms 2 BR
Household size (for calculation purposes) 3 persons
Median income for household size (see chart below) 134,650
Median income reduced to affordability target shown above 94,250
Monthly income (annual income divided by 12) 7,850
33% Housing -expense -to income ratio 2,590
Breakdown of monthly housing expense
Property Tax (estimated @ 1.50% of sales price) 396
Interior Insurance 50
Homeowners Association Dues (estimate) 500
Mortgage Insurance (estimated at .85 basis points) 213
Debt Service on home purchase financing (P & 1) 1,481
Total Housing Expense 2,640
Financing -- assuming 30 -year, fixed-rate mortgage
Rate (current prevailing rate / to be updated at completion) 4.25%
Term (months) 360
Loan amount 301,100
Loan -to -value ratio 95%
Purchase price 316,900
Downpayment @ 5% 15,800
Estimated closing costs (@ 4%) 12,700
Estimated cash required for downpayment plus closing costs 28,500
FY 2021 Marin County
HUD Median Family Income
effective 4/12021
HH Size Median 70%
1 person $104,700 $73,300
2 persons $119,700 $83,800
3 persons $134,650 $94,250
4 persons $149,600 $104,700
https://marinhousing.sharepoint.com/Shared Documents/On-Prem Shares/MHASVR8
Restore/HomeOwnership/BMR/Developments-New/San Rafael/1628 fifth st/final/ 8/22/2021
Exhibit D
MARIN COUNTY
RENTAL AFFORDABILITY FOR 2021
2021 INCOME SCHEDULE
(published by HUD April 1, 2021) (Rounded to the nearest $50.00)
Monthly
Median
Very Low
Low
Low
Low
Low
Moderate
Unit Size
Income
Income
Income
Income
Income
Income
Income
Bedrooms
100%
50%
60.00%
65.00%
70.00%
80.00%
90.00%
Studio
104,700
52,350
62,800
68,060
73,300
83,750
94,250
1 BMR
119,700
59,850
71,800
77,800
83,800
95,750
107,750
2 BMR
134,650
67,350
80,800
87,500
94,250
107,700
121,200
3 BMR
149,600
74,800
89,750
97,250
104,700
119,700
134,650
4 BRM
161,550
80,800
96,950
105,000
113,100
129,250
145,400
MAXIMUM RENT SCHEDULE - I OW INC QMF
Low Income rent @ 60.00% of median
Monthly rent, including utilities, may not exceed 1/12 of 30% of 60.00% of median income
adjusted for household size.
Annual
Unit size Income
studio 62,800
1Br 71,800
2Br 80,800
3Br 89,750
Monthly
30%
Monthly
Income
of income
Utilities
RENT/ MO
5,233
1,570
54
$1,516
5,983
1,795
65
$1,730
6,733
2,020
86
$1,934
7,479
2,244
110
$2,134
The Income schedule shown above is based on the 2021 Area Median Income for Marin County published by HUD (4/1/2021).
Utilities- Section 8 allowances for gas heat,electric cooking,other electric, HVAC, & gas water heat. Published on 2/1/2021.
Ex. D 2021 affordable rent schedule low
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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94901
Attn: City Clerk
No fee for recording pursuant to
Government Code Section 27383
EXHIBIT G
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
RELEASE OF BELOW MARKET RATE HOUSING AGREEMENT
This Release of Below Market Rate Housing Agreement (the "Release") is
made as of the day of _, 200_, by 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 a
("Developer").
1. This Release relates to that certain Below Market Rate Housing Agreement and
Declaration of Restrictive Covenants by and between the City, the Marin Housing Authority, and the
Developer dated , and recorded in the Official Records of the County of Marin
(the "Official Records") on. as Document No. (the "Housing
Agreement").
2. The obligations contained in the Housing Agreement have been performed as of the date
entered above. Therefore, the City, the Marin Housing Authority, and the Developer hereby release the
real property described in Exhibit A attached hereto and incorporated herein from the encumbrance of the
Housing Agreement.
3. This Release may be signed in multiple counterparts, which, when
signed by all parties, shall constitute a binding agreement.
G-1
IN WITNESS WHEREOF, the City, the Marin Housing Authority, and the
Developer have executed this Release as of the day first above written.
DEVELOPER: CITY:
L-0
MARIN HOUSING AUTHORITY:
Housing Authority of the County of Marin,
a public body, corporate and politic, created
under the Housing Authority Law of the
State of California
.21
Executive Director
City of San Rafael, a municipal corporation
LIN
City Manager
APPROVED AS TO FORM:
City Attorney
SIGNATURES MUST BE NOTARIZED
G-2
hP� RAFA�!
7'
y0
C`fr� WITH 1:1
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: Steve Stafford, Senior Planner
Extension: 5048
Contractor Name: CW—hlpr+lb 606 Tg tAutthority - BMR Agreement - 1628T FifthF-Avenue
Contractor's Contact: CSltc6pWr�q g_r6Ve
Contact's Email: Csl1cdvl7�tc@TfV1h s i ng . org
❑ 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
Click here to
enter a date.
b. Email contract (in Word) & attachments to City
Flick here to
Atty c/o Laraine.Gittens@cityofsanrafael.org
enter a date.
❑
2
City Attorney
a. Review, revise, and comment on draft agreement
Click here to
and return to Project Manager
enter a date..
❑
b. Confirm insurance requirements, create Job on
Click here to
PINS, send PINS insurance notice to contractor
enter a date.
❑
3
Project Manager
Forward two (2) originals of final agreement to
Click here to
❑
contractor for their signature
enter a date.
4
Project Manager
When necessary, * contractor -signed agreement
❑ N/A
agendized for Council approval
*PSA > $75,000; or Purchase > $75,000; or
Or
❑
Public Works Contract > $175,000
Click here Lo
Date of Council approval
enter a date.
PRINT
CONTINUE ROUTING PROCESS WITH HARD COPY
5
Project Manager
Forward signed original agreements to CityI,�
iA1
Attorney with printed copy of this routing form
6
City Attorney
Review and approve hard copy of signed
g51i p Z)
1
agreement
7
City Attorney
Review and approve insurance in PINS, and bonds
�l1 qlu�
/
(for Public Works Contracts)
8
City Manager/ Mayor
City Clerk
Agreement executed by Council authorized official
Attest signatures, retains original agreement and
1
9
forwards copies to Project Manager
��
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