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"
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LOCH LOMOND
UNIT 10 --Robert B. Ham,
Inc./
City of San
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0395E/930223
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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