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HomeMy WebLinkAboutCC Resolution 9057 (Loch Lomond #10 BMR)RESOLUTION NO. 9 0 5 7 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZESIG SIGNING OF BELOW MARKET AGREEMENT RE LOCH LOMOND #10 BETWEEN THE CITY OF SAN RAFAEL AND ROBERT H. HAM, INC. BE IT RESOLVED, the MAYOR and CITY CLERK are authorized to execute, on behalf of the City of San Rafael, a Below Market Rate Housing Agreement for the Loch Lomond #10 Subdivsion between the City and ROBERT H. HAM, INC., a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE M. LEONCINI, City Clerk of the City of San Rafael, hereby certify that th e foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Mondav the istday of November , 1993, by the following vote, to wit: AYES: COUNCILMEMBERS: Breiner, Cohen, Shippey, Thayer & Mayor Boro NOES: COUNCILM)EMBERS: None ABSENT: COUNCILME.MBERS: None JE . LEONC I, City Clerk City of San Rafael ORIGINAL �9h, B E L 0 W M A R K E T R A T E H 0 U S I N G A G R E E M E N T Project Name: LOCH LOMOND UNIT 10 Location: LOCH LOMOND, SAN RAFAEL Developer: ROBERT B. HAM, INC., or any successor in interest This Agreement is made and entered into this 1st day of November , 1993 , among the CITY OF SAN RAFAEL, a municipal corporation (hereinatter reterreU-- to as "the City"), the HOUSING AUTHORITY OF THE COUNTY OF MARIN, a public body, corporate and politic, created under the Housing Authority Law of the State of California (hereinafter referred to as "Marin Housing Authority"), and ROBERT B. HAM, Inc., or any successor in interest (hereinafter referred to as "the Developer"). A. The Developer intends to construct a residential housing development on that certain real property situated within the corporate limits of the City, which real property is more particularly described in Exhibit "A" attached hereto and incorporated herein. B. The City, in accordance with the provisions of the Housing Element of its General Plan, has approved the Developer's proposed development on condition that the Developer provide therein THREE ( 3 ) dwellinq units to be sold at prices which are within the means of moderate -income households. C. Marin Housing Authority is authorized by law to participate in programs which provide housing for households of low and moderate.income, and is by experience qualified to screen and determine eligibility of applicants for low and moderate -income housing. D. The proposed residential development includes construction of lots for sale. The Developer will also construct three Below Market Rate (BMR) condominium units on Lot 9 pursuant to approvals granted by the City for such condominium development. E. The three BMR units shall be completed and ready for occupancy prior to the close of escrow on the sale of the 21st lot in the subject development. The City will not issue any building approvals for any lots sold after the first 20 lots until the BMR units ai-e completed and ready for occupancy. A notice stating these conditions shall be recorded against the property described in Exhibit A. F. The Developer shall require the Title Company(s) handling the sale of each lot to notify the City of San Rafael Planning Director at the time of close of escrow for the sale of each lot. LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ Page 1 of 8 City of San Rafael / Marin Housing Authority 0395E/930223 The parties hereto desire, by this Agreement, to cooperate in implementing the efforts of the Developer to comply with the requirement that the Developer make available said dwelling units at prices which are within the means of moderate -income households. NOW THEREFORE, it is hereby agreed by and between the parties hereto as follows: 1. The Developer agrees that THREE ( 3 ) dwelling units within the project approved by the City for the property escribed in Exhibit "A" attached hereto will be sold to moderate -income households in accordance with the terms and pursuant to the procedures set forth in this Agreement. Said dwelling units are identified in Exhibit "B" attached hereto and will be legally described in an attachment to be recorded with the final map. Said dwelling units are hereinafter referred to as "the Units." 2. The Developer agrees that the contract sales price for the Units shall not exceed the prices set forth in Exhibit "B" attached hereto. The contract sales price is defined as the amount paid by the Buyer to the Developer without regard to proration of taxes, utilities, or other such items and without regard to Buyer's payment of homeowners's association fees, insurance premiums, escrow costs, transfer taxes, recording fees, document preparation cost or similar items. 3. The Developer agrees to offer the Units for sale only to individuals or households who have been certified as eligible by Marin Housing Authority. 4. The Developer further agrees to give written notice to Marin Housing Authority at least one hundred and twenty (120) days prior to estimated issuance of Certificate of Occupancy. 5. Marin Housing Authority agrees to process applications and certify eligi- bility of applicants as persons or households of moderate income. An individual or a household shall be deemed to qualify as a moderate -income applicant provided the income of such individual or household does not exceed one hundred twenty percent (120%) of the median income for the San Francisco Primary Metropolitan Statistical Area (PMSA)--San Francisco, San Mateo and Marin County --as determined by the United States Department of Housing and Urban Development ("HUD"), Office of Economic Affairs, Economic and Market Analysis Division, with adjustments for smaller or larger households (refer to Exhibit "D" attached hereto). In certifying eligibility of applicants, Marin Housing Authority shall adhere to the requirements for eligibility adopted by the City and speci- fied in EXHIBIT "C" attached hereto. Selection of individuals or house- holds falling within any of the priorities established in EXHIBIT "C" shall be determined by a drawing or other equitable method mutually agreed upon by the City and Marin Housing Authority. Merin Housing Authority shall be paid a fee of $750 per unit to be paid by the buyer, which payment shall be included in the buyer's closing costs through escrow. LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ Page 2 of 8 City of Sar, Rafael / Marin Housing Authority 0395E/930223 6. In the event that any Unit remains unsold at the end of one hundred twenty (120) days from the date of issuance of a Certificate of Occupancy by the City for the phase of development in which the subject unit is located, the Developer shall notify Marin Housing Authority in writing of such fact. Within ten (10) working days after receipt: of such written notice, Marin Housing Authority or its assignee may notify the Developer in writing that it will purchase such Unit. If such notice is given by Marin Housing Authority, the Developer shall then sell such Unit to Marin Housing Authority or its assignee at the same price it would have been available for sale to households of moderate income. As used herein, the term "sold" shall mean the execution of a contract for purchase and the approval of a mortgage loan for the buyer. In the event that Marin Housing Authority or its assignee declines to purchase such Unit, it may be sold by the Developer on the open market without restrictions as to price, affordability or future re -sale, and no deed restrictions will be placed on the property. In such event, the Developer shall pay to the City from the sale price of such Unit seventy-five percent (75%) of the difference between the net price achieved after normal selling and closing costs and the below -market -rate sales price specified in Exhibit "B". Said sum shall be paid to the City upon close of escrow on the sale of such Unit or, if the sale is pursuant to a contract of sale, upon execution of such contract, whichever shall first occur. The City shall pay to Marin Housing Authority ten percent (10%) of this sum for Marin Housing Authority's use in administering Below Market Rate projects including, but not limited to, on-going BMR monitoring and future BMR re -sales. The balance of any such payments made to the City shall be retained by the City in a special account to be used solely for activities which it deems will facilitate the provision of housing for persons of low or moderate income. 7. Each contract conveying a Unit to a Buyer certified by Marin Housing Authority shall contain a resale restriction and an option to purchase constituting a right of first refusal, pursuant to which the buyer agrees that prior to selling the property, it will first be offered for sale to Marin Housing Authority or its assignee, in writing. Said deed restriction shall be in the form of an Agreement to be provided by Marin Housing Authority as set forth in Exhibit "E" to this agreement, which Agreement shall be executed by the Buyer and recorded in immediate succession after the Grant Deed conveying title to the property. 8. In the event that the development project is not constructed or in the event that the master plan for the project is amended or revised such that the Units specified in Paragraph 1 are no longer required thereby, this Agreement shall thereupon become void, unless one or more of the Units have previously been sold in accordance with the provisions of this Agreement, in which event the provisions of this Agreement will continue in force with respect to the Unit or Units so sold. LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ Page 3 of 8 City of San Rafael / Marin (lousing Authority 0395E/930223 9. All notices required to be given under the terms of this Agreement shall be sent by first class U.S. mail, certified/return receipt requested, or by express courier service, addressed as follows: To the City: City of San Rafael P.O. Box 151560 San Rafael, CA 94915-1560 Attention: Planning Director To Marin Housing Authority: Marin Housing Authority P. 0. Box 4282 San Rafael, CA 94913 Attention: Executive Director To the Developer: Loch Lomond Unit 10 c/o Robert B. Ham, Inc. 60 Beach Road Belvedere, CA 94920 Attention: Robert B. Ham Any party may change the address to which notice shall be mailed to it by giving notice thereof to the other parties by certified mail. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CITY OF SAN RAFAEL ATTEST: J - C1 erk DEYEL By: HOU G AUTHORITY F THE UNTY OF MAR By: � ATTEST: By: Secretary B. HAM, Inc. Attachments: EXHIBIT "A" --Legal Description of Property EXHIBIT "B" --Schedule of BMR Units and Sales Prices EXHIBIT "C" --Eligibility Requirements and Priorities EXHIBIT "D" --Marin County FY1991 Median Family Income Schedule EXHIBIT "E" --Resale Restriction Agreement and Option to Purchase LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ Page 4 of 8 City of San Rafael / flarin Housing Authority 0395E/930223 State of California County of Marin On November 8, 1993 before me, A. M. MARCOTTE, a Notary Public in and for the said County and State, personally appeared Albert J. Boro, Mavor of the Citv of San Rafael per sonally known to me (ems--preved fie r.- •r. thebasisof =LticfLatery e:-=) 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/ herj`brai.r authorized capacity(4-es), and that by his/he /the -r- signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. OF SEAL ' ' A. M. MARCOTTE Notary Public-Californla ' �.Pn�� MARIN COUNTY ; My Commission Expires , A. M. MARC TTE, NOTARY PUBLIC '"'••• November 17. 1995 My commission expires 11/17/95 ............... I ...... ,ALIFORNIA LL -PURPOSE ACKNOWLEDGMENT ... , A.oomoof OPTIONAL SECTION State ai CALIFORNIA County of MA TN M_ RCn TT � RY PIIRI T - On 1 0 X 9 3 before me, twME TMA,,_ bl�la .,,�,E OOE. NOTARY PUBUC personally appeared.. ROBFPT H HAM MµE(S)OFSIGNEA(5) d personally known to me - OR - n 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 ac. OFFICIAL SEAL knowledged to me that he/she/they executed A. M. MARCOTTE the same in his/her/their authorized Notary Public-Californla , ca acit les MARIN COUNTY p y( ), and that by his/her/their ` My Commisslon Expires sigrtaiuire(s) or, the instrument the person(s), November 17, 1995 or the entity upon behalf of which the . . . . . . . . . . . . . . . person(s) acted, executed the instrument. WITNESS my hand and official seal. 51G TURF OF NOTARY CAPACITY CLAIMED BY SIGNER Though Statute does not recttars the Notary to fill in the data below. doing so may prove invaluable to persons relying on the document D INDIVIDUAL ® CORPORATE OFFICER(S) PRESIDENT TrnEts) PARTNERS) [3 LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAWCONSERVATOR OTHER: SIGNER IS REPRESENTING: NAME OF PMMON(S) OR efnW(IE5) ROBERT H. HAM, INC. OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT BELOW MARKFT RATE HQIIS T NG AGRFFMFNT THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES 28 DATE OF DOCUMEM 11/1/93 Though the data requested here is not required by law, SIGNERS) OTHER THAN NAMED ABOVF SAMF it could prevent fraudulent reattachment of this form. — �2NATIONAL NOTARY ASSOCIATION • 8238 Remmet Ave.. P.O. Box 7164 • Canoga Park CA 9 1 309-7 1 6= Page 4a of 8 STATE OF CALIFORNIA ) ss. COUNTY OF MARIN ) On this 23rd day of February, 1994, before me, Deann Nielsen, a Notary Public in and for said County and State, residing therein, duly commissioned and sworn, personally appeared GARY GIACOMINI, Chairman of the Housing Authority of the County of Marin, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument he, or the entity upon behalf of which he acted, executed the instrument. WITNESS my hand and official seal. ka'�n�nNiel`sen,otary Public in and for said County and State My commission expires October 31, 1994. Deann Nielsen 1 NOTARY PUBLIC -CALIFORNIA i COUNTY OFMARIN � My com"'"10n Expkes October 31. 1994 EXHIBIT "A" Project Name: LOCH LOMOND UNIT 10 Location: LOCH LOMOND, SAN RAFAEL Developer: ROBERT B. HAM, Inc., or any successor in interest DESCRIPTION: All that certain Real Property situated in the City of San Rafael, State of California, described as follows: LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ Page 5 of 8 City of San Rafael / Marin Housing Authority 0395E/930223 EXHIBIT "B" Project Name: LOCH LOMOND UNIT 10 Location: LOCH LOMOND, SAN RAFAEL Developer: ROBERT B. HAM, Inc., or any successor in interest Total Units: LOTS / 3 UNITS Total BMR Units: 3 SCHEDULE OF BMR UNITS AND SALES PRICES No. of Units Type Income Size Address/Location Sales Price 3 3BR/2BA Moderate 1200sf Lot $135,200* Following are the family sizes and incomes used to establish the sales price for each unit: Unit Size Income Household Size % of Median Income Household Income 3BR/2BA Moderate Four Persons 90% of Median $49,900* The sales prices have been established based on the above incomes, current industry mortgage rates and debt -to -income ratio as follows: Mortgage Rate/Term: Loan -to -Value Ratio: 8.5%* / 30 -year, fixed-rate Percentage of Gross Monthly Income for Mortgage Payment (Principal and Interest): 25% * Recalculation of the above sales prices shall be permitted at the time of receipt by Marin Housing Authority of the Developer's written notice one hundred twenty (120) days prior to the issuance of Certificates of Occu- pancy for the Units if either: (i) it is determined that the above -stated mortgage rate is different from the then -current market interest rate; or, (ii) it is determined that the median income for the San Francisco PMSA as determined by the U.S. Department of H.U.D. has changed from that set forth in Exhibit "D" attached hereto. Upon receipt of the Developer's 120 -day notice, the sales price shall be recalculated by Marin Housing Authority using the most affordable available mortgage rate for a 30 -year, fixed-rate mortgage as determined by Marin Housing Authority and using the most recent median income for the San Francisco PMSA as determined by H.U.D.. Such an adjustment to the sales price shall be allowed more than one time only if mutually agreed by all the parties to this Agreement. LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ Page 6 of 8 City of San Rafael / Marin Housing Authority 0395E/930223 EXHIBIT "C" Project Name: LOCH LOMOND UNIT 10 Location: LOCH LOMOND, SAN RAFAEL Developer: ROBERT B. HAM, Inc., or any successor in interest Eligibility Requirements In determining and certifying eligibility of applicants for the subject project, Marin Housing Authority shall adhere to the following criteria: 1. The applicant's total household annual income may riot exceed 120% of the current median income for the San Francisco PMSA as determined by the U.S. Department of Housing and Urban Development (HUD), and as adjusted for household size, in order to qualify as "moderate -income." 2. The total value of the applicant household's assets may not exceed 75% of the sales price of the unit. 3. The applicant must qualify as a "First-time Homebuyer" --defined as not having previously owned a principal residence. 4. The applicant's household must consist of a minimum of three persons in order to qualify to purchase a three-bedroom unit. Priorities for the Drawing In selecting prospective purchasers from among all eligible applicants, a drawing shall be conducted. The City of San Rafael has determined that the following priorities shall be employed in conducting the drawing to select prospective purchasers. All names shall be drawn from the group of applicants falling within the first priority before drawing names from the second and subsequent priority groups. 1. First priority in the drawing for one of the three units shall be given to all permanent, full-time employees of the City of San Rafael. 2. Second priority in the drawing shall be given to all other applicants. LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ Page 7 of 8 City of San Rafael / Marin Housing Authority 0395E/930223 EXHIBIT "D" o O O O O O O O O z a Z�`o v ri o, •o N pp 't pp - aQ O N O C)1 O C)1 O . O . Ln . Ln d Ln N Ln O Y lY V A O r � -.! - r, r F r r: M C)1 d Q1 d Ol O x E r� on d d Ln Ln LD LD r- r- VI � , 2 a 4 u U r- c O= L2 - � n� o a- ;� Z E C b O Ln 01 O O 01 O O 01 O O C O O LT O O Q1 O O 01 O Ln CO a 0 <O CU. 1>. C U 4) d CA d 01 Cl) r- .— Ln F M M d d Ln Ln LD LD C O O O O O O O O aQ O O Ln O O O O O 4) Ln N CI LD d C" O DO LD 01 }i Cl) r` N r� r Ln O N M M d d Ln Ln Ln LD b L a C) C) O O O O O O aQ Ln Ln C) O O O O O v C) d all d Cn In r` M rn O r Ln O d O N to 01 M M d d d Ln Ln M La O O C) O O O o O aQ Ln Ln Ln O O O O O W 01 LT 01 01 M Ln r 00 r` r to /T M lD 01 N O N M M M d d d Ln W UZ N O O O O O O O O aQ O Ln O Ln O O O O Ln N rn n d d d d d O r` Z >- N 4) ,J_, a% E O O O O O O O O g aR M Ln Ln to O O O O dd ,- O O d 01 d 01 1� V) M LL. 1 d n'• U dr` d O M a0 Z N NM M M M M d d d 4 o c 4-3 o C) o C) 0 4U) aQ Lin C)Lnn LnLnn N 4- 3 Ln r- CT N d O LD N 00 CN W to O N Ln al N Ln n O N �.., N N N M M M d d J LL Ln Ln Ln Ln Ln Ln Ln O O 01 M 01 M M r� r Ln LD M V N N N N M M M M Z .q M O Ln O In O In Co to O to O lfl O LA O Ln i aQ O d 01 d Q1 01 M 0) 01 Ln r` 01 N d LD 0 (= N r r N N N N M M v J O W �Z N• r N M d Ln LD r` CO Ln C) x LOCH LOMOND UNIT 10 --Robert B. Ham, Inc./ City of San Rafael / Marin Housing Authority W a) U 4- 4-- C:) -4-rO .- c O C L 90 •r e > E v a L ..- 4) O +J L M 4- V v a N � 4- O 4- Q N {J 4J 41 V) N C N i a) 7 4) o. +' E '-I FOC D- *0 O 7 O in U U O r a) N U 4) N .a •r > •r U c v a c•.-M"a b L C L ro C to U c v L r- LoCc N to N A "a Ln •r a43 C 1 -r to a ,*O-+ M Ln E L 90 C 1 4J O2•rin C 4- N a) C 7 d L- ai a) r0 O S- U U U •• 4- 4) C O O +) Q) r N 4 v IE C •r C C r0U 4) O •" C r t0 N N N i- L L E LL. do > o CL •r- +J O N C a) O U Ln 01 to C3 i0 4- 01 V) N 4- r a) •" +J N N 4J N } 4) C 4) LL. N 4) L •r A3 F#0 a) L C 4) CL QLnC 45 v QJ aJ •-, a C U c a) yr O •rY M E L L L U LO "a O 4) •r 4) X L +-) N t iJ N 10 rt) "a N ^ N +J C •r Lo •r U N :3 a) O 41 L •fl E 0 L OC=a) 'a r t O L a) do a) U r to t U N W U ." 7 •r N to iJ O •• 3 a) N L N L a) •r- L 4) ." U C1 �S rC O r0 C ." U 4J N 4- (04- r- Ln 4 - CN 1-4--0 •r a) Q L r - C CL o c (0 U U Q M 4J L •r U ." : to t7 r O aali 04- C C N E CL O •r Ul o to U 1 N L W a) LD r yJ L N r - ,C 4) O 4- •.- 1 F-- X: 4- o N d Pa8 of 0395E/930223 a C C C c C n O U r L! r C Recording Requested by: Marin Housing Authority When Recorded Return to: Marin Housing Authority P.O. Box 4282 San Rafael, CA 94913-4282 Attn: BMR Program RESALE RESTRICTION AGREEMENT AND 9PTION TO PURCHASE Owner(s): Property Address: Name of Development: Local Jurisdiction: Purchase Price: Date of Purchase: RECITALS This Resale Restriction Agreement and Option to Purchase ("Agreement") is entered into as of the day of , 19 , by and between the Housing Authority of the County of Marin ("Authority") and ("Owner") regarding certain improved real property located at California ("Premises"). A. The Premises are described more fully on Exhibit A attached hereto and incorporated herein by reference and are subject to the terms and conditions set forth in this Agreement. B. The Premises are being made available for purchase by an eligible moderate -income purchaser at a below-market purchase price pursuant to the Below Market Rate Home Ownership Program ("Program") administered by the Authority on behalf of the above- named Local Jurisdiction ("City"). C. The Owner is an eligible moderate -income purchaser Rev. 8/92 under the Program (defined below) and intends to live in the Premises as an owner -occupant. D. In order to maintain and preserve the Premises as housing affordable to eligible moderate -income purchasers, it is necessary to restrict the resale price of the Premises by resale controls. Such controls prevent initial and subsequent purchasers from realizing unwarranted gains from sales of the Premises at unrestricted prices. The terms and conditions of this Agreement provide the necessary resale controls to ensure that the Premises are maintained and preserved as housing affordable to eligible moderate -income purchasers. E. The Premises subject to resale controls constitute a valuable community resource by providing decent, safe and sanitary housing to moderate -income purchasers who otherwise would be unable to afford such housing. To protect and preserve this resource.it is necessary, proper and in the public interest for the Authority to administer the resale controls by means of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE SUBSTANTIAL ECONOMIC BENEFITS INURING TO THE OWNER AND THE PUBLIC PURPOSES TO BE ACHIEVED UNDER THE PROGRAM, THE OWNER HEREBY GRANTS TO THE AUTHORITY THIS OPTION ON THE FOLLOWING TERMS AND CONDITIONS. 1. Program Conditions. Owner agrees and acknowledges acceptance of Owner's participation of the Premises is conditioned upon of the Premises. 2. Grant of Option to Purchase. that the Authority's in the Program and purchase Owner's continuing occupancy Owner hereby grants and gives to the Authority a right to purchase all of Owner's right, title and interest in and to the Premises upon the occurrence of events specified in this Agreement ("Option"), subject to the terms and conditions contained herein. 3. Assianment of the Option. The Authority may assign the Option to another government entity or to a moderate -income purchaser who meets the eligibility qualifications established by the Authority under the Program. The Authority's assignment of the Option shall not extend any time limits contained herein with respect to the exercise period of the Option or the period within which the Premises must be purchased. As used in this Agreement, the term "Authority" shall mean the Authority and any assignee to which it has assigned the Option under this paragraph. Rev. 8/92 2 4. Events aivina Rise to Riqht to Exercise Option. The Authority shall have the right to exercise its Option upon the occurrence of any of the following events (an "Option Event"): a. Receipt of a Notice of Intent to Transfer (defined in paragraph 5 below); b. Any actual, attempted or pending salla, conveyance, transfer, lease or other attempted disposition of the Premises or of any estate or interest therein, except as provided in paragraph 15 below; C. Any actual, attempted or pending encumbrance of the Premises, including without limitation by way of mortgage or deed of trust, or by judgment, mechanics, tax or other lien, except as provided in paragraph lb below; d. Recordation of a notice of default and/or notice of sale pursuant to California Civil Code section 2924 (or successor provisions) under any deed of trust,or mortgage with a power of sale encumbering the Premises; e. Commencement of a judicial foreclosure proceeding regarding the Premises; f. Execution by the Owner of any deed in lieu of foreclosure transferring ownership of the Premises; and g. Commencement of a proceeding or action in bankruptcy, whether voluntary or involuntary, pursuant to Title 11 of the United States Code or other bankruptcy statute, or any other insolvency, reorganization, arrangement, assignment for the benefit of creditors, receivership or trusteeship, concerning the Owner. 5. Method of Exercisinq the Option. a. Notice of Intent to Transfer. If the Owner desires to sell, convey, transfer, lease, encumber or otherwise dispose of the Premises or of any estate or interest therein, Owner shall notify Authority in writing to that effect (the "Notice of Intent to Transfer"). The Notice of Intent to Transfer shall also state the street address of the Premises, the owner's full name or names, the address and telephone number at which Owner shall be contacted if not at the Premises, and shall be delivered personally or deposited in the United States mail, postage' prepaid, first class, certified -return receipt requested, addressed to the Housing Authority of the County of Marin, P.O. Box 4282, San Rafael, CA 94913, Attention: Executive Director. The Notice of Intent to Transfer shall be in substantially the Rev. 8/92 3 form attached hereto and incorporated herein as Exhibit B. b. Notice of Exercise. Upon the occurrence of any Option Event, the Authority may exercise its Option by delivering notice to Owner that it will exercise such Option pursuant to the terms of this Agreement ("Notice of Exercise"). The Notice of Exercise may be in the form attached hereto and incorporated herein as Exhibit C, or in such other form as the Authority may from time to time adopt. The Notice of Exercise shall be delivered by deposit in the United States mail, postage prepaid, first class, addressed to the Owner at the Premises, or at such other address as may be indicated on the Notice of Intent to Transfer, and delivery shall be deemed effective on the date of deposit. If the Option Event relates to the potential foreclosure of a mortgage under paragraphs 4d, a or f, then the Authority shall also deliver the Notice of Exercise to the mortgagee or beneficiary under such mortgage, at such mortgagee's or beneficiary's address of record in the Office of the Recorder of the County of Marin. C. Notice of Consent to Transfer,. If the Authority does not exercise the Option, it may give its consent to the occurrence of the Option Event ("Consent to Transfer"), which consent shall be conditioned upon the proposed transferee's or encumbrancer's assumption of Owner's duties and obligations under this Agreement in writing, or execution of an agreement substantially similar to this Agreement, within thirty (30) days after the Consent to Transfer has been delivered to Owner. If the proposed transferee or encumbrancer fails to assume this Agreement or execute and deliver a substantially similar agreement to the Authority within the thirty (30) day period, then the Consent to Transfer shall expire and the Authority may exercise the Option as if no Consent to Transfer had been delivered. d. Time Period for Notice. The Authority must deliver a Consent to Transfer, if applicable, not later than sixty (60) days after the date that it receives notification of an Option Event. The Authority must deliver a Notice of Exercise, if applicable, on such date which is the later to occur of the " following dates: (1) sixty (60) days after the date that the Authority receives notification of an Option Event or (2) fifteen (15) days after a Consent to Transfer has expired. For purposes of computing commencement of the delivery periods, the Authority shall be deemed to have notification of an Option Event on the date that it actually receives a written Notice of Intent to Transfer, notice of default, summons and complaint or other pleading, or other writing specifically stating that an Option Event has occurred. The Authority shall have no obligation to deliver a Notice of Exercise or Consent to Transfer, and the applicable time period for exercise of the Option shall not commence to run, unless and until it has received notification of Rev. 8/92 4 an Option Event in the manner specified in this subparagraph. If there is a stay or injunction imposed by court order precluding the Authority from delivering its Consent to Transfer or exercising the Option within the applicable time period, then the running of such period shall cease until such time as the stay is lifted or injunction dissolved and the Authority has been given written notice thereof, at which time the period for delivery of a Consent to Transfer or exercise of the Option shall again begin to run. e. Notice of Abandonment. If the Authority fails to deliver a Notice of Exercise or Consent to Transfer within the above -stated time periods, then the Option shall terminate and have no further force and effect. Thereafter, upon request by Owner, the Authority shall cause to be filed for recordation in the Office of the Recorder of the County of Marin a notice of abandonment, which shall declare that the provisions of the Option are no longer applicable to the Premises. If the Authority fails to record a notice of abandonment, the sole remedy of the Owner shall be to obtain a judicial order instructing such a recordation, and�the Owner_ shall have no right to damages against the Authority for failure to record such notice promptly. 6. Right to Reinstatement. If the Option Event is the recordation of a notice of default, then the Authority shall be deemed to be Owner's successor in interest under California Civil Code section 2924c (or successor sections) solely for purposes of reinstatement of any mortgage on the Premises that has led to the recordation of the notice of default. As Owner's deemed successor in interest, the Authority shall be entitled to pay all amounts of principal, interest, taxes, assessments, insurance premiums, advances, costs, attorneys' fees and expenses required to cure the default. If the Authority exercises the option, then any and all amounts paid by the Authority pursuant to this paragraph shall be treated as Adjustments to the Resale Price for the Premises, as defined in paragraph 11, below. 7. Inspection of Premises. After delivering a Notice of Exercise, the Authority shall be entitled to inspect the Premises one or more times prior to the close of escrow to determine the amount of any Adjustments to the Resale Price. Before inspecting the Premises, the Authority shall give Owner not less than forty-eight (48) hours written notice of the date, time and expected duration of the inspection. The inspection shall be conducted between the hours of 9:00 a.m. and 5:00 p.m., Monday through Friday, excluding court holidays, unless another date and time is mutually agreed to by the parties. The Owner shall make the Premises available for Rev. 8/92 5 inspection on the date and at the time specified in the Authority's request for inspection. 8. Escrow. Promptly after delivering a Notice of Exercise, the Authority shall open an escrow account for its purchase of the Premises. Close of escrow shall take place on such date which is the later to occur of the following: (a) sixty (60) days after a Notice of Exercise has been delivered, or (b) ten (10) days after Owner has done all acts and executed all documents required for close of escrow. Prior to the close of escrow, the Authority shall deposit the Resale Price as defined in paragraph 10 below, plus or minus any Adjustments as defined in paragraph 11 below. Closing costs and title insurance shall be paid pursuant to the custom and practice in the County of Marin at the time of the opening of escrow, or as may be provided otherwise by mutual agreement. Owner agrees to do all acts and execute all documents necessary to enable the close of escrow and transfer of the Premises to the Authority. 9. Proceeds of Escrow; Removal of Exceptions to Title,. Prior to close of escrow, Owner shall cause the removal of all exceptions to title to the Premises that were recorded after the date of this Agreement. All amounts deposited into escrow by the Authority shall be applied first to the payment of any and all liens and encumbrances recorded against the Premises, and thereafter to the payment of escrow fees and closing costs. Any amounts remaining after the amounts deposited into escrow by the Authority have been so applied shall be paid to Owner upon the close of escrow. If the amounts deposited into escrow by the Authority are insufficient to satisfy all liens and encumbrances recorded against the Premises,+then Owner shall deposit into escrow such additional sums as may be required to remove said liens and encumbrances. In the event that the Authority agrees to proceed with close of escrow prior to the date that Owner has caused all exceptions to title recorded after the date of this Option to be removed, then Owner shall indemnify Authority from any and all costs, expenses or liabilities (including attorneys' fees) incurred or suffered by Authority that relate to such exceptions and their removal as exceptions to title to the Premises. 10. Resale Price. Prior to adjustment pursuant to paragraph 11, the resale price of the Premises shall be the lowest of ("Resale Price"): a. Median Income. The original price paid by the Owner for acquisition of the Premises pursuant to the Program ("Base Price") increased (but not decreased) by an amount, if any, equal Rev. 8/92 6 to the Base Price multiplied by the percentage increase in the median household income for the San Francisco Primary Metropolitan Statistical Area (PMSA)--San Francisco, San Mateo and Marin Counties --published by the Department of Housing and Urban Development,.Office of Economic Affairs, Economic and Market Analysis Division ("Median Income") between the date of this Agreement and the date that the Authority receives notification of an Option Event. b. Index Price. The Base Price increased (but not decreased) by an amount, if any, equal to the Base Price multiplied by the percentage increase in the Consumer Price Index for All Urban Consumers for the San Francisco Bay Area published by the U.S. Department of Labor, Bureau of Labor Statistics ("Index") between the date of this Agreement and the date that the Authority receives notification of an Option Event. C. Fair Market Value. The fair market value of the Premises as determined by an appraiser selected by the Owner and approved in writing by the Authority. d. Resale Price Worksheet. To compute the Resale Price, the Authority may use the Resale Price Worksheet attached as Exhibit D hereto, or such other form as the Authority may from time to time adopt. 11. Adiustments to Resale Price. The Resale Price shall be adjusted by the following ("Adjustments"): a. Canital Improvements. An increase for capital improvements made to the Premises by the Owner provided that the amount of said improvements had been previously accepted in writing by the Authority after original written documentation of the cost was provided to the Authority for verification. The amount of the Adjustment shall equal the original cost of any capital improvements depreciated in a straight-line basis based upon the estimated useful life of the improvement stated in the Authority's prior written acceptance of said improvement. b. Damaqes. A decrease by the amount necessary to repair damages to the Premises, if any, and to place the Premises into saleable condition as reasonably determined by the Authority, including amounts attributed to cleaning, painting, replacing worn carpeting and draperies, making necessary structural, mechanical, electrical and plumbing repairs and repairing or replacing built-in appliances and fixtures. C. Advances by Authority. A decrease in an amount equal to the sum of all costs advanced by the Authority for the payment of mortgages, taxes, assessments, insurance premiums, homeowner's Rev. 8/92 7 fees and/or associated late fees, costs, interest, attorneys, fees, pest inspections, resale inspections and other expenses related to the Premises, which Owner has failed to pay or has permitted to become delinquent. 12. Prioritv and Effectiveness of the Option. a. Recordation. This Agreement shall be filed for recordation in the Office of the Recorder of the County of Marin prior to any sale, conveyance, transfer or other disposition of the Premises, or of any estate or interest therein, by the Owner. The Option shall have priority over any subsequent sale, conveyance, transfer, lease or other disposition or encumbrance of the Premises, or of any estate or interest therein. The exercise of the Option by the Authority at any time and from time to time shall not extinguish the Option or cause a merger of the Option into any estate or other interest in the Premises, and the Option shall continue to exist and be effective with respect to the Premises against any subsequent owner in accordance with the terms and conditions hereof. b. Reauest for Notice of Default. The Authority shall file a Request for Notice of Default for recordation in the Office of the Recorder of the County of Marin promptly upon execution of this Agreement (see Exhibit E). 13. Survival of Option Upon Transfer. a. In General. The Authority's rights to exercise the Option shall survive any transfer of the Premises by the Owner. The Option may be exercised against the Premises whether owned, possessed or occupied by (i) an eligible moderate -income purchaser, (ii) any successor,,transferee, assignee, heir, executor, or administrator of an eligible moderate -income purchaser, including a debtor-in-possession, debtor or trustee pursuant to Title 11 of the United States Code, or (iii) any person owning, possessing or occupying the Premises who does not meet the eligibility qualifications established by the Authority under the Program (collectively all referred to and defined herein as "Owner"). Notwithstanding the foregoing, the Option shall not survive the sale and transfer of the Premises to a third party purchaser pursuant to a judicial or non -judicial foreclosure or a deed -in -lieu of foreclosure under a power of sale contained in a mortgage or deed of trust recorded against the Premises in the Office of the Recorder of the County of Marin on or prior to the date of this Agreement, provided that the Authority has received timely notice of such Option event and has failed to either reinstate said mortgage or deed of trust or exercise its Option. b. HUD Insured Mortaaaes. If Owner has acquired the Premises by a mortgage insured by the Secretary of the United Rev. 8/92 8 States Department of Housing and Urban Development, and a notice of default has been recorded pursuant to California Civil Code section 2924 (or successor provisions), this Option shall automatically terminate if title to the Premises is transferred by foreclosure or deed -in -lieu of foreclosure, or if the insured mortgage is assigned to the Secretary. 14. Voidable Transfers. As long as the Option has not been abandoned pursuant to paragraph 5e, any actual or attempted sale, conveyance, transfer or other disposition of the Premises, or of any estate or interest therein, in violation of the terms and conditions of this Option, shall be voidable at the election of the Authority. 15. Permitted Transfers. The following transfers of title to the Premises, or of any estate or interest therein ("Permitted Transfers"), will not authorize the exercise of this Option: a good -faith transfer by gift, devise or inheritance to the Qwner's spouse or issue; a taking of title by a surviving joint tenant; a court-ordered transfer of title to a spouse -as part of a divorce or dissolution proceeding; or an acquisition of title, or of any interest therein, in conjunction with marriage. Notwithstanding any Permitted Transfer, the Option shall remain effective with respect to the Premises. 16. Permitted Encumbrances. This Option shall not become exercisable as the result of the Owner's encumbering the Premises for•the purpose of securing financing to purchase the Premises pursuant to the Program, or to refinance existing indebtedness incurred to purchase the Premises pursuant to the Program, in an amount not to exceed the outstanding principal amount of such existing indebtedness. 17. Obliaations of Owner After Option Abandonment. If the Authority records a notice of abandonment of the Option, then the Premises may be sold by Owner to a third party without restriction as to price. Upon such sale, Owner shall pay to Authority an amount equal to eighty-five percent (85%) of the difference between the actual sales price and the Resale Price plus Adjustments. This amount shall be paid upon close of escrow on the sale of the Premises, or upon execution of a contract of sale, whichever shall first occur. 18. Limits on Liability. In no event shall the Authority become liable or obligated in any manner to the Owner by reason of the assignment of the Rev. 8/92 9 Option, nor shall the Authority be in any way liable or obligated to the Owner for any failure of the Authority's assignee to consummate a purchase of the Premises or to comply with the terms of this Option, or any escrow instructions or agreement for the purchase of the Premises. 19. Insurance Proceeds and Condemnation Award. In the event the Premises are destroyed and insurance proceeds are distributed to the Owner instead of being used to rebuild the premises, or in the event of condemnation, if the proceeds thereof are distributed to the Owner, any surplus of proceeds remaining after payment of the encumbrances of the premises shall be distributed as follows: that portion of the surplus up to, but not to exceed the net amount that the Owner would have received pursuant to paragraph 9 had the Authority exercised its Option on the date of the destruction or condemnation valuation date shall be distributed to the Owner, and the balance of such surplus, if any, shall be distributed to the Authority. 20. Term of Option. The restrictions contained herein shall continue for a period of thirty (30) years from the date that this Agreement is filed for record in the Office of the Recorder of the County of Marin. 21. Notices. Except as otherwise specified in this Agreement, all notices required to be sent pursuant to this Agreement shall be made by personal delivery or by deposit in the United States mail, first class postage prepaid, and sha-il be deemed to have been delivered and received on the date of personal delivery or five (5) days after deposit in the mail, if sent to the following addresses: AUTHORITY: OWNER: Housing Authority of the County of Marin Post Office Box 4282 San Rafael, California 94913 Attn: Executive Director and BMR Program at the address of the Premises The addresses above may be changed by notice given pursuant to this section. 22. Attornevs' fees. Rev. 8/92 10 If either party is required to initiate legal proceedings to enforce its rights under this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorneys' fees and costs in addition to any other recovery under this Agreement. 23. Snecific Performance. Owner acknowledges that any breach in Owner's performance of Owner's obligations under this Agreement or in the transfer of the Premises to the Authority shall cause irreparable harm to the Authority. Owner agrees that the Authority is entitled to equitable relief in the form of specific performance upon its exercise of the Option, and that an award of damages shall not be adequate to compensate the Authority for Owner's failure to perform according to the terms of this Agreement. IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed this day of , 19 OWNER(S): . Rev. 8/92 11 State of California County of Marin on this day of , 199_, before me, commissioned and sworn, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to -be the person(s) that executed the. within document and acknowledged to me that executed it. WITNESS my hand and official seal. Notary's Signature Rev. 8/92 12 CERTIFICATE OF ACCEPTANCE (Pursuant to Government Code §27281) This is to certify that the interest in real property conveyed by the Resale Restriction Agreement and Option to Purchase dated from to the Housing Authority of the County of Marin, a political corporation and/or governmental agency, is hereby accepted by the undersigned officer or agent on behalf of the Housing Authority of the County of Marin pursuant to authority conferred by resolution 110-81, dated 5/19/81; and the grantee consents to recordation thereof by its duly authorized officer. Dated: by JANET MILLER SCHODER, Executive Director Housing Authgrity of the County of Marin Rev. 8/92 13 EXHIBIT A Legal Description ATTENTION: TO BE INSERTED PRIOR TO CLOSING Exhibit A, page 1 of 1 EXHIBIT B VIA CERTIFIED MAIL - RETURN RECEIPT REOUESTED To: Housing Authority of the County of Marin Post Office Box 4282 San Rafael, California 94913 Date: Re: Notice of Intent to Transfer The undersigned Owner(s), hereby gives notice of his/her inte to transferroperty located at ( e "Premises"). Owner may be contacted at the Premises or a the llowing dress: Owner's daytime telephon number) The proposed transfer o the person(s): Name: Address: loses is to the following Telephon The propos ansfer is: (check one) ance V L -11=L Specify: OWNER Signature Exhibit B, page 1 of 1 EXHIBIT C im Owner or Transferee Address Re: Notice of Exercise Date: The Housing Authority of the County of Marin uthor' y") hereby gives notice that .it is exercising its option pchase the real property located at Vhe option has been granted to the Authorit ursuant to the Resale Restriction Agreement and Option to Purch a between owner and the Authority dated and corded he utho y h assigned its option to purchase the real pro. rty to .] An escrow for the purchase wil be open with F st American Title Company of Marin. The Hou ing Aftt ity of the County of Marin by Its Au resentative S* A* M* P* L* E Exhibit C, page 1 of 1 MAR'ktN HOUSING Aln1A,y 11—ting Al -r AM— . 111 N. San 1'e11111 Itnnd 1'mi 011icc Ilox 4282 Sno Rnrnel Callrvwnia 94911 4131472-411.10 (FAX)41•S/472.219(1 limen" ee Di,ecmr lance Millcr SCIw,lkr Ilepuly Divechw Michael 1). Kelleher A. MEDIAN INCOME Present Median: Original Median: j Difference: i Rate of Increase: ; Increase In Price: { BMR Re -Sale Price: I B. CONSUMER PRICE 1 Present CPI: _ Original CPI: Difference: Rate of Increa EXHIBIT "D" DMR RE -SALE PRICE WORKSHEET Date: flame: Address: Purchase Price: i Date of Purchase: Months Owned: Effectiva Dale: Effective Date: No. of Months: X 12 mn. I\ yr 12 no./yr. S / annum JFor Month of: r For Month of: No. of Months: mO• X 12 me. / yr. % / annum MO. X % / annum x MO. 12 mo./yr. BFffloamaviMe Price: i + f ► C. 'FAIR MARKET VALUE The fair market value, If unrestricted Ivy Elle. DMR Deed Restrictions, Is estimated to be In excess of the above DMR Re -Sale Price calculations, and thus would not govern. AS OF THIS DATE. THE BMR RE -SALE PRICE IS i BASED ON Exhibit D, page 1 of 1 G•,rder No. Escrow No. r.man No. WHEN RECORDED MAIL TO: EXHIBIT "E° SPACE ABOVE THIS LINE FOR RECORDEWS USE ONLY Request For Notice Under Section 2924b Civil Code In accordance with Section 2924b, Civil Code, request Is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded as instrument No. on 19 , in Book , Page , Official Records of . County, California, and describing land therein as executed by in which y Beneficiary, and be mailed to at Number and Street , as Trustor, is named as , as Trustee City and Slate NOTICE: A COPY OF ANY NOTICE OF DEFAULTAND OF ANY NOTICE OF SALE WILL BE SENTONLYTO THE ADDRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS CHANGES, A NEW REQUEST MUST BE RECORDED. I STATE OF CALIFORNIA isK• COUNTY OF 1 On t before me, the undersigned a Notary Public In and for said State, personally appeared" personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) Is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed the same. WITNESS my hand and official seal. Signalure Exhibit E, page 1 of 1 (This Stan for 0111001 1101111-111 3024 1 16 B (Rev. 1/87