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HomeMy WebLinkAboutCC Resolution 8986 (1 H Street BMR)RESOLUTION NO. 8986 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE EXECUTION OF A BELOW MARKET RATE RENTAL UNIT AGREEMENT FOR 1 "H" STREET IN SAN RAFAEL, CA BETWEEN THE CITY OF SAN RAFAEL AND 1 "H" STREET ASSOCIATES BE IT RESOLVED, that the CITY MANAGER is hereby authorized to execute, on behalf of the City of San Rafael, a Below Market Rate Rental Unit Agreement for 1 "H" Street Rental Units between the City of San Rafael and the 1 "H" Street Associates; a copy of which is hereby attached and by this reference made a part hereof. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday , the 19th day of July , 1993, by the following vote; to wit: AYES: COUNCILMEMBERS: Breiner, Cohen, Shippey, Thayer & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None J E A N N M. LEONCINI, City Clerk ORIGINAL �898L L' THIS STAMP CONFIRMS RECORDING DATA ONLY CITY OF SAN RAFAEL BELOW 'NURKET RATE RENTAL UNIT AGREEMENT Project Name : One H Street Address : 1 H Street Y Owner: 1 H Street Asociates. A California General Partnership TruS BELOW liLARKET RATE RENTAL UNIT AGREEivIENT AND >- DECLARATION OF RESTRICTIVE COVENANTS is made and entered this date _ July 26 1993. between the C= OF SAN RAFAEL. a municipal corporation duh, ULO organized and existing under the Constitution and laws of the State of California (the "City"), and 1 H Street Associates. a California Genreal Partnership (the "Owner"). U r ZOn wo M PREAMBLE J -Sr.UJ UJ " Mv-HEREAS. the Owner has acquired a38 unit residential/retail complex located at 1 H z w Street. San Rafael. known as One H Street ("Project"). �Q UJ WHEREAS. the Owner owns the real property located within the corporate limits of the o ¢ City and more particularh• described in Exhibit "A" attached and incorporated for reference herein and: z o UJ LO INTIEREAS. the Owner has received the City's approval to acquire the residential � r C -) Ln development ("the project") on the property and: X C) INMREAS the City's approval of the project is conditioned upon Owner's compliance C; with the Housing Element of the General Plan 2000 and providing low and moderate income units UJ a.: as set forth in Exhibit "B" attached and incorporated herein. Ln -i ,J NOW, THEREFORE, in consideration for the mutual covenants and undertakings set LC forth herein, and other good and valuable consideration. the receipt and sufficiency of which is CC hereby_ acknowledged. the City and the Owner do hereby conuact and agree as follows: UJ = ¢ AGREEMENT O N U W U- C) Section 1. DEFINITIONS AND INTERPRETATION. Unless otherwise expressly w provided herein or unless the context clearly requires otherwise, the following teams shall have the respective meanings set forth below for all purposes of this Below Market Rate Rental tint Agreement: CORY "Affordable Housing Rents" are the rents for any unit occupied by a Qualifying Tenant which shall be established using the then current Median Gross Income for the Area as shown for example in Exhibit 'B". "Low Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 80% of the Median Gross Income for the Area, adjusted for household size. "Low/Moderate Income Unit" refers to the units described in Exhibit 'B". "Median Gross Income for the Area" shall mean income for households of an applicable size in the San Francisco RXISA (Primary Metropolitan Statistical Area) most recently determined by HUD adjusted for household size, as provided by Marin Housing Authority. "Moderate Income Household" shall mean the occupant (s) of a residential unit in the Project whose aggregate adjusted household income does not exceed 120°0 of the Median Gross Income for the Area, adjusted for household size. "Plan" shall mean the Citv of San Rafael General Plan 2000. "Program administrator" shall mean the administrator for compliance of the Project with the Below Xlarket Rate Unit Rental Agreement which shall be the City. "Project" shall mean the parcel of real property in the City of San Rafael as described in Exhibit "A" hereto, and all rights and appurtenances pertaining thereto, and the buildings. structures and other improvements constructed or to be constructed thereon, including all fixtures and other property owned, leased or licensed by the Owner and located on, or used in connection with. such buildings. structures or other improvements, all of which shall be constructed and operated by the Owner in accordance with the restrictions set forth in this Agreement. "Project Period" means a period of forty (40) years commencing on , 199_ the date of occupancy of 50% of the units. The restrictions set forth herein shall be deemed covenants running with the land provided, however, that upon termination of this Agreement said covenants shall expire. The Project Period shall expire on .20—. "Qualifying Tenant" means resident households whose incomes do not exceed the household income limits for Low Income Household and/or Moderate Income Household. SECTION 2. QUALIFYING TENANTS (a) SELECTION. For the duration of the full Project Period, Qualifying Tenant selection shall be based on income eligibility for Low and Moderate Income Households as defined in Section 1 and subject to final approval by the Owner. 2 (b) QUALIFICATION. Qualifying Tenant status shall be determined at the time of initial occupancy of a unit by the tenant(s) and certified annually on the basis of a Tenant Income Certification (Exhibit "C") executed by the Qualifying Tenant and accompanied by a copy of: (i) their federal income tax return for the immediately prior tax year ; or (ii) their employer's verification of current income ; or (iii) if the Qualifying Tenant is self-employed or the tat return is unavailable, such other satisfactory evidence of income. (iv) If a qualifying Tenant certifies that he/she did not file or did not retain a copy of their federal tax return, other evidence, such as a current wage statement or employer records must be obtained. (c) OCCUPANCY. Throughout the Project Period the required Low/Moderate Income Units in the Project shall be occupied and at all times be renied io Qualifying Tenants. No Qualifying Tenant shall be denied continued occupancy, because this tenant exceeds the income limits. If; as of the most recent Tenant Income Certification, it is determined that the income of Qualifying Tenant exceeds one hundred -forty percent (140%) of the Median Gross Income for the Area, then they shall no longer qualify as a Qualifying Tenant. The Owner shall provide the next vacated unit (s) of comparable or smaller size to a Qualified Tenant. as needed to achieve compliance. The Owner shall immediately notify, in writing, each tenant who is no longer a Qualified Tenant of such fact, and that such tenant(s) rent is subject to increase 30 days after receipt of such notice. The Owner shall be entitled to so increase any such tenant's rent only if Owner complies with any law applicable thereto and only after the Owner has rented the next available unit or units in the Project on a one-for-one basis to a Qualified Tenant, or holds units vacant and available for occupancy by Qualified Tenants. The Owner agrees to inform all prospective Qualified Tenants of the requirements for annual certification of income and of the provisions of the preceding paragraphs. SECTION 3. REPORTING. (a) E_1HIBIT "C" TENANT INCOME CERTIFICATION. Exhibit C shall be obtained from each Qualified Tenant and maintained on file by the Owner. If not previously submitted. attach copy and submit with Exhibit D to the Program Administrator. (b) EXHIBIT "D" CERTIFICATION OF CONTINUING COMPLLkNCE. Exhibit D shall be submitted by the Owner to the Program Administrator quarterly until the project is fifty, percent (50"0) occupied and semi-annually thereafter for the Projcct P%iiud. (c) The Owner shall permit the Program Administrator to inspect the Project records at the owner's office upon 10 days notice. SECTION 4. COVENANTS. It is intended and determined that the provisions of this Agreement shall constitute covenants which shall run with the land comprising the Project for the benefit thereof, and the burdens and benefits thereof shall bind and inure to the benefit of all 3 successors in interest of the parties hereto; provided. however. that on the termination of this Agreement said covenants shall expire. SECTION 5. TERM. This Agreement shall become effective upon its execution and delivery. Except as provided in the immediately following paragraph this agreement shall remain in full force and effect for the Project Period. SECTION 6. DEFAULT AND ENFORCEMENT. In the event the Owner leases any unit in violation of this Agreement, the Owner shall immediately, upon notice from the City, rent the unit at the Affordable Housing Rent in accordance with Exhibit B of this agreement and pay; (i) to the Tenant. an amount equal to the difference between the amount the Owner actuallv received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation; and (ii) to the City, as liquidated damages, an amount equal to two times the difference between the amount the Owner actually received for the Unit leased in violation of this Agreement and the amount the Owner would have received pursuant to Exhibit B of this Agreement for the term of the violation. The parties agree that this formula for establishing liquidated damages is reasonable considering all the circumstances existing on the date of this Agreement. including (a) the range of harm that would result to the City and its housing program under its general plan from -violation of this Agreement by the Owner. and (b) the anticipation that proof of the actual damages would be costly and inconvenient. In the event the Tenant cannot be located within a reasonable time the Owner shall pay to the City the total amount due to the Tenant. SECTION 7. \MONITORING FEE. The Owner agrees to pay to the City during the Project Period an annual monitoring fee payable on or before June 1 of each year and shall be calculated at the rate of 550.00 per Low Income Unit per year. Total annual fee 51,000.00. If the expenses of the City in monitoring compliance by the Owner with provisions of this Agreement are in excess of 51,000 in any annual period. the Owner upon written demand shall gay such excess costs in an amount not to exceed 10% increase per year. SECTION 8. UNIT XMX, LOCATION AND HOUSEHOLD SIZE. The Below X-larket Rate Units shall be located on the parcel described in Exhibit A. SECTION 9. GOVERIN NG Lahti. This Agreement shall be governed by the laws of the State of California. SECTION 10. AMENTI)MENTS. This Agreement shall be amended or y by :mitten instrument signed by all of the parties hereto. SECTION II. ATTORNEYS FEES. In the event that a party to this Agreement brings an action against any other party to this Agreement by reason of the breach of anv condition or covenant. in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suit. SECTION 12. SEVERABILITY. If any provision of this Agreement shall be invalid. inoperative or unenforceable as applied in any particular case in any jurisdiction because it conflicts with any other provision (s) or any constitution or statute or rule of public policy, or for any reason,such circumstance shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance or of rendering any other provision or provisions contained herein invalid, inoperative, or unenforceable to any extent whatsoever. The invalidity of any one or more phrases, sentences, clauses or sections contained in this Agreement shall not affect tate remaining portions of this Agreement, or any part hereof. SECTION 13. RECORDING AND FILING. The Owner shall cause this Agreement and all amendments hereto to be recorded and filed in the real property records in the office of the County Recorder of Marin County within 5 working days of the City Execution of the agreement and shall pay all fees and charges incurred in connection therewith and shall transmit a recorded copy to the City. Upon the expiration of the Project Period the City shall cooperate with the Owner, at the sole expense of the Owner, in the recording of such instruments or instruments of release or termination as the Owner may reasonably request. SECTION 14. 'NOTICE. All notices required or permitted under this Agreement shall be sent by certified United States mail, or an overnight courier service requiring a signed receipt. addressed as follows : TO THE CITY: City of San Rafael Attn : City Manager P.O. Box 151560 San Rafael, CA 94915-1560 TO THE OWNER: 1 H Street Associates, a California A General Partnership Suite 756 100 California Street San Francisco, Ca 94111 Attn : H. James Schafer :Notice shall be deemed served for purposes of the .agreement one day after deposit in the United States mail or acceptance by the overnight courier service. Any party may change its address for purpose of notice by giving notice pursuant to this section. SECTION 15. TERNIINATION. This Agreement shall terminate and be of no further force or effect at the end of the Project Period. 5 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first written above. ATTEST: 01 eannel Leoncuu Citv Clerk CITY OF SAN RAFAEL BY: Name: Pamela J. icolai Title : City Manager One H Street Associates A California General Partnership BY: Nam BY: Nan 24 Jack D. Siuelson General Partner State of County of On 7` v 4 DD Z 93 b re me,�� Nim/ (DATE) personally appeared ( E, -nTA OF OFFICER -1 ,gwvE?, NOTARY PUBLIC-) ,"('NAME(S) SIG R(S)y 6117 RIGHT THUMBPRINT (OPTIONAL) CAPACITY CLAIMED BY SIGNER(S) ❑ INDIVIDUAL(S) ❑ CORPORATE FFICER(S) � PARTNER(S) (TITLE(S)) B -' known to me - OR - ❑ proved to me on the basis of satisfactory evidence ❑ ATTORNEY IN FACT to be the person(s) whose name(s) is/are sub- ❑ TRUSTEE(S) scribed to the within instrument and acknowledged ❑ GUARDIAN/CONSERVATOR •••••••••••••••••••••••••••••••••••••••••• to me that he/she/they executed the same in ❑ OTHER: O F F I C I A L S E .a L his/her/their authorized capacity(ies), and that by IA'JOAu'i P? ;3YLA his/her/their signature(s) on the instrument the aq. WT . -',P*( PU I.IC • LALIFQRI4!�. person(s), p �Kf or the entity upon behalf of which the SIGNER IS REPRESENTING: O.'fire in _GS .:P':GELES CGUNT'v ; person(s) acted, executed the Instrument. (NAME OF PERSON(S) OR ENTITY(IES)) -• v •=: —r' sem cn EXO!'ES Dec. 25. 1993 Witness my ha d and official seal. a.�•.eras•uaar.oa.aeasaeaaaevaaasaa•aau• (SEAL) /, � (SIGNATUREOF n ATTENTION NOTARY: The information requested below is OPTIONgc. It could, however, prevent fraudulent attachment of this certificate to any unauthorized document. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED Number of Pages Date of Document TO THE DOCUMENT DESCRIBED AT RIGHT: Signer(s) Other Than Named Above OLCOTTS FORM 63240—ALL PURPOSE ACKNOWLEDGMENT WITH SIGNER CAPACITY/REPRESENTATION/FINGERPRINT—Rev. 12-92 C1992 WOLCOTTS FORMS. INC State of California County of Marin On before me, A. M. MARCOTTE, a Notary Public in and for the said County and State, personally appeared Pamela J. 'Ricolaia City Mr�nacter of the City of San Ra,±R.81, personally known to me (s� p a •r. this tcsiz &11 :-) to be the person(s) whose name (s) is/>e subscribed to the within ideneeinstrument and acknowledged to me that he/she/they executed the same in Vis/ her/t-heli authorized capacity (4•es) , and that by h-ks/her/fir signature (s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. OFFICIAL SEAL ; A. M. MARCOTTE Notary Pubac-Callfornla ; m MARIN COUNTY e My Commission Expires November 17, 1945 A. M. MARCOfiTE, NOTARY PUBLIC Nov , My commission expires 11/17/95 Project : One 13 Strcct EXIIIBITA (Legal Description to he insviud) All that certain real Ly situate in the City of San Rafael County of Marin, State of California, described a as follows: ALL THAT Portion of Lot Number (17) of Forbes Addition to the Town of San Rafael, in the City of San Rafael, County of Marin State of California, described as follows: BDGDMJG at the point of i,.L=. ,Lion of the Nortl-neasterly line of Fourth Street (formerly Olema Road) and the Northwesterly line of "H" Street, running 7 thence Northeasterly along the Northwesterly line of "H" Street one hundred (100) feet, thence Northwesterly parallel with the Northeasterly line of Fourth Street ninety three (93) feet running thence Southwesterly and parallel with the Northwesterly line of "H" Street one hundred (100) feet to the Northeasterly line of Fourth Street, thence Southeasterly and along said Northeasterly line of Fourth Street ninAty three (93) feet to the Northwesterly line of "H" Street and the point of beginning. CCM MIM at the most Easterly ,. of the parcel of land described in a Deed Econ the Estate of Ferdinand Koinig to Jules Leyv. Sale confirmed by Court April 29, 1924, Executors Deed in Book No. 50, page numbered 52 of Official Records, in the office of the County Recorder of Marin County, California; running thence South 500 45' West 75.67 fet; thence South 3° 00' East 122 feet to the Northerly line of Fourth Street; thence North 840 45' West 79 feet along said Northerly line; U.=s.,,-- North 30 2' West -117.99 feet to a point from which point the of a circle _(whose- radius is 320 feet) bears North 85° 55' East; thence Northerly along the arc of said circle, 62.42 feet; thence North 6° 58' East 18.55 feet to a point from which the center of a circle (whose radius is 45 feet) bears North 83' 02' West; thence Northerly aryl Northwesterly alcsng the arc of the last mentioned circle 51.38 feet; thence North 280 41' Fast 3.80 feet to the Southerly line of the Parcel of land described in a Deed recorded at page 261 in Volume 22, of Official Records, in the office of aforesaid Recorder; thence Southeasterly along said last mentioned line 109.59 feet; thence South 310 13' East 57.03 feet; thence South 760 00' East 17.40 feet to the point of beginning. PALL THREE: BEGINNIM at a point in the Southwesterly corner of the property described in the Deed to Nellie Pard ni , 15, 1923, in Liber 27, Official Records, page 309, Marin County Records, said point being on the Northerly line of Fourth Street; running thence North 6° 30' East along the Westerly line of said lands 100 feet to the Northwesterly wia=., thereof; thence North 830 15' West 16.73 feet to the Easterly line of the ljluj,_L LY described in the Deed to Nellie Pardini, recorded February 19, 1942 in Liber 425, Official Records, at page 99, Marin County Records; thence South 30 East along the last mentioned Y.Ly� Ly line 101.39 feet to the point of beginning. Legal Description (ccnti r PAFCEL FC UR: BDGINNING at a point on the Westerly lime of "H" Street distant thereon 100.00 feet =a, the i..Lr• .Llon thereof with the Northerly line of Fourth Street, said point of beginning being the Northeasterly of that certain parcel of lam conveyed to The Pacific Telephom and Telegraph Company by Deed dated 14, 1923, and 1 G�1 S,/�,1,r 15, 1923 in Volure 27 of Official Reeds, at page 310, Marin County Records; thence fxcm said point of beginning Northerly along said Westerly Ii ne of "H" Street 65.00 feet; thence North 76' 00' West 61.80 feet to the most Easterly corner of that certain parcel of land conveyed to The Pacific Telephone and Telegraph Caq)any by deed dated January 9, 1948, and January 15, 1948, in Volume, 570 of Official R—C—, pane 453, Mann County Records; thence alcrxJ the boundary of said pard of land conveyed by said deed dated January 9, 1948, South 50' 45' West 75.67 feet, South 3' 00' East 20.61 feet and Scarth 83' 15' East 16.73 feet to the Northwesterly of said parcel of land tY 1 by said deed dated 5. ,...I" 14, 1923; thence South 83' 15' East along the NL.. Uuly boundary of said parcel of land by said deed dated September 14, 1923, 93.00 feet to the point of beginning. PARCEL FIVE: BEING a portion of the lands y�a,atai by the San Rafael Redevelopment Agency, a p Ix i c body, to Rotary Marry, a nn -profit California Corporation, L.. 6ma on C...LJl,r. 7, 1981 as Document No. 81-044518, Official Records of Marin County. HDGIlMM at a point on the Southwesterly line of the lands of Rotary Manor as shown on that certain map entitled Parcel Map Lands of Rotary Mayo Parcel Map Being a Reversion to Acreage City of San Rafael Marin County Califorznia, February 28, 1986 in Bods 23 of Parcel Maps at Page 19, Official Records of Marin County, said Point of Beginning g being distant U.... .., North 75' 29' West 17.70 feet fin the Southerly corner of the Lands of Rotary Marr as shown on. said map (23 PM 19) ; running U .= u from said Point of Beginnir7 North 36' 47' West 32.91 feet; South 56' 30' West 27.68 feet to said Southwesterly line of Rotary Manor 23 PM 19) ; running thence along said Southwesterly line South 75' 29' Fast 44.20 feet to the Point of Beginning. EXHIBIT "B" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL AGREEMENT PROJECT NAME: One H Street DATE: ADDRESS: 1 H Street ONAINER: 1 H Street Associates TOTAL NUMBER OF U PNITS: 38 TOTAL NLTINZBER OF LOW/.MODERATE LNCOME UNITS: 20 IV[J_VIBER OF LOW INCOME UNITS: 20 NUMBER OF MODERATE INCOME UNITS: 0 AFFORDABLE HOUSLNG RENT CALCULATION: For example. using the 1992 Median Gross Income for the Area such calculation would be as follows : Low Income Units: The studio unit month4, rent shall not exceed 11112 of 30916 of 80% of the median gross annual income for a 1 person household. The one bedroom unit monthly rent shall not exceed 1/12 of 30% of 80% of the median gross annual income for a 2 person household. The two bedroom unit rent shall not exceed 1!12 of 309.0 of 8090 of the median gross annual income for a 3 person household. Studio Income : $27,950 (One person household -, 8090 of median) Rent : ($27,950/12)130°10 = S699 1 Bedroom Income: $31,950 (Two person household � 80% of median) Reit : ($31.950/12) x 3090 = S799 v 2 Bedroom Income : $35,950 (Three person household (d: 800/0 of median) Rent : ($35,950/12) x 30% = $899 QUALIFYING TENANT INCOME LIMITS: For example, using the 1992 Median Gross Income for the Area the Limits would be : 1 Person 2 Person 3 Person 4 Person LOW INCOME 27,950 31,950 35,950 39,900 80% of median EXHIBIT "C" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT TENANT INCOME CERTIFICATION PROJECT NAME: One H Street DATE: ADDRESS: 1 H Street OWNER: 1 H Street Associates APARTMENT NO. MONTHLY RENT: TENANT/HOUSEHOLD NAME: last first TOTAL CURRENT HOUSEHOLD GROSS ANNUAL INCOME: (total household income includes all wages, salaries, et., as reported as gross income for federal income tax.) Attached hereto are federal or state income tax returns, stubs from paychecks or other evidence of the income of the persons listed below. Name of Member of the Household Relationship .Age Social Place of Security No. Employment 1/ We the undersigned have read and answered fully, frankly and personally each of the above questions under penalty of purjun, and do hereby swear they are true. Tenant - Head of Household Owner Date : Date : EXIMIT "D" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL UNIT AGREEMENT CERTIFICATION OF CONTINUING COMPLIANCE PROJECT NAME: One H Street DATE: ADDRESS: 1 H Street OWNER: 1 H Street Associates TOTAL. UNITS: 38 TOTAL LOW INCOME UNITS : 20 The undersigned, in accordance with the BELOW MARKET RATE RENTAL UIvTT AGREE?VIENT with the City of San Rafael dated for the Project does hereby certify that during the preceding twelve (12) months, the following units were occupied in accordance with the Below Market Rate Rental Unit Agreement and does hereby further certify that the representation set forth herein are true and correct to the best of the undersigned's knowledge. Low Income Tenants Name Siped : Owner Attach additional sheets if necessary. Knit Monthly Annual Household No. Rent Income size Date : EXHIBIT "E" CITY OF SAN RAFAEL BELOW MARKET RATE RENTAL AGREEMENT NOTICE OF COMMENCEMENT OF PROJECT PERIOD PROJECT NAME: One H Street DATE: ADDRESS: 1 H Street OWNER: 1 H Street Associates The "Project Period" as defined in that certain BELOW MARKET RATE RENTAL UNIT AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS, record on as Document # , in the Office of the Marin County Recorder and pertaining to the real property within the City of San Rafael, State of California, described in Exhibit "A" attached hereto, commenced on The Project Period will expire on ATTEST: Citv Clerk CITY OF SAN RAF AEL BY: Name: Tide: OWNER BY: