HomeMy WebLinkAboutCD Affordable Housing - 1200 Irwin Street Project____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 01/22/2019
Disposition: Accepted report
Agenda Item No: 4.e
Meeting Date: January 22, 2019
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community Development
Prepared by: Paul A. Jensen
Community Development Director
City Manager Approval: ______________
TOPIC: AFFORDABLE HOUSING AGREEMENT - 1200 IRWIN STREET PROJECT
SUBJECT: TWELVE-MONTH REVIEW OF BELOW MARKET RATE (BMR) AGREEMENT
ADDRESSING RENT/LEASE OPTIONS FOR THE MISSION/IRWIN CARRIAGE
HOUSES RESIDENTIAL DEVELOPMENT AT 1200 IRWIN STREET; APN 014-013-05
RECOMMENDATION:
Accept report.
BACKGROUND:
History
In July 2007, the City certified a Final Environmental Impact Report (EIR) and approved a Rezoning,
Design Review Permit and Vesting Tentative Map for the Mission/Irwin Carriage Houses at 524 Mission
Avenue (now 1200 Irwin Street). These actions approved the development of 15, three-bedroom
residential townhouse units. The Vesting Tentative Map allows the subdivision of the property so that
each townhouse unit can be independently sold. These planning approvals remained valid through the
Great Recession. In 2016-1017, the project was built and is now occupied.
Of the 15 units, two units are required to be reserved as below market rate (BMR) units. The property
zoning and General Plan 2020 sets a maximum density for the site that is capped at 13 dwelling units.
However, the project received a density bonus of two units pursuant to San Rafael Municipal Code
14.16.030 and California Government Code Section 65915 (State of California Density Bonus Law). The
density bonus was allowed in exchange for the project providing two, on-site affordable units. The project
approvals were conditioned to require that the project owner enter into a BMR Agreement to ensure that
the two BMR units are secured for a minimum term of 55 years.
First BMR Agreement
On June 20, 2016, the City Council adopted Resolution No. 14132, which authorized the execution of the
BMR Agreement for the Mission/Irwin Carriage Houses Project. At the request of the property owner,
the BMR Agreement was drafted to address two options: a) the individual sale of the two townhome units;
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
or b) management of the property for rental/lease of the two townhome units. For this reason, the BMR
Agreement was executed to cover the following for-sale and rental/lease provisions:
• Should the property owner decide to hold a single ownership of the site as a rental project, one
of the two BMR units is required to be affordable to a very low-income household earning no more
than 50% of the County median income, and the second unit is required to be affordable to a low-
income household earning no more than 65% of the County median income. The projected 2007
rent levels for the three -bedroom units would be approximately $1,365/month for the very low-
income unit and $1,654/month for the low-income unit. The rent can be increased once a year
pursuant to the increase in the County median income figures prepared by the US Housing and
Urban Development Department and the California Department of Housing and Community
Development.
• Should and when the townhome units are individually sold for ownership, the project would
convert to the ownership provisions of the agreement and would be required to provide both units
affordable to low-Income households, earning no more than 65% of the county median income.
The anticipated sale price for the two would be $288,200, respectively.
The BMR Agreement was recorded with the property deed and runs with the land for a minimum period
of 55 years from the date of execution. If the BMR units are sold, the Marin Housing Authority (MHA)
administers the initial sale and any resales.
Amended BMR Agreement for Student Housing
In 2017, the property owner entered into an agreement with Dominican University to master lease the
entire development (15 units including the two affordable units) for student housing. As a result, none of
the units, including the affordable units, are be available to the public for rent/lease. The master lease
was approved for five (5) years with provisions that allow for an additional five-year extension.
On July 17, 2017, the City Council was presented with a request from the property owner and Dominican
University to: 1) amend the initial BMR Agreement so that it continues to cover the “for sale” provisions
for the two BMR units during the time frame the units are rented; and 2) execute a new, second BMR
Agreement that covers the BMR rental/lease obligation. Regarding the latter rental/lease BMR
Agreement, the City Council approved an amendment to cover two rental options: the below-market rate
rental of two units (as initially approved); and the student rental option to be implemented during the
master lease by Dominican University. Under the student rental option, the Agreement allows Dominican
University to:
1. Use student financial aid submissions to identify and income qualify the lower income students;
2. Divide the affordable rent that would be required for a four-person household for each of the two
BMR units among four students. The eight lower income students would pay no more than one
quarter of the allowable affordable rent that would be required for each BMR unit; and
3. Allow the four very low-income and four low-income students (total of eight students) to reside in
any unit in the development, rather than housing all of the income qualified students in the two
specifically defined affordable units.
In the event the master lease for student housing terminates and the 15 townhome units become
available for public sale or rent/lease, the initial BMR requirements covering rental/lease of two BMR
units would continue to be required through the remaining term of the agreement.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
At the July 17, 2017 meeting, the City Council cautiously reviewed the request for the student rental
option. Setting aside the potential loss of the two BMR units for workforce housing, the City Council
expressed concern that it would be challenging to: a) track qualified student tenants; b) determine source
of student income; and c) determine parental income if students are claimed as dependents.
Nonetheless, on a 5-0 vote the City Council adopted Resolution No. 15366 incorporating the student
rental option in the BMR Agreement for rental/lease of the two units. The City Council approved the
student rental option for one year and directed staff to return with a report on this option at the end of this
year. The executed rental/lease BMR Agreement is attached (Attachment 1, Exhibit B-1).
Twelve-Month Review of BMR Agreement and Occupancy
In Summer 2018, the property owner (524 Mission Street, LLC- Thompson Development Company)
submitted the required annual report to the Marin Housing Authority (MHA). As is the case with all BMR
units that are tracked and administered by MHA, the property owner is required to submit Household
Income Certification documents to confirm tenant qualifications and rent amounts for the calendar year.
This report disclosed that Dominican University is renting BMR Units #14 and #15 to qualifying University
employees instead of students. As presented in the attached letter (Attachment 2), Unit #14 is rented to
a University employee that meets the standards for a low-income household and Unit #15 is rented to a
University employee that meets the standards for a very low-income household.
ANALYSIS:
As discussed above, Dominican University decided to rent the two BMR units to University employees
rather than renting to qualifying students. Staff is pleased with this direction as it is wholly consistent with
San Rafael General Plan 2020 Housing Element policies that strongly encourages workforce housing.
The two BMR units are rented to University employees that would likely otherwise seek housing outside
of the community.
While the current rent approach does not exercise the student rental option specified in the BMR
Agreement, Thompson Development Company and Dominican University have requested that this option
continue to remain in the Agreement through the duration of the master lease (four years remaining).
Staff finds this request to be reasonable provided that: 1) the rental of these two units continue to be
monitored annually by the City; and 2) if there is a shift to the student rental option, staff will forward the
annual rental report to the City Council for review. This request would not require any further
amendments to the executed BMR Agreement.
FISCAL IMPACT:
There is no cost to the City for the proposal, with the exception of the MHA staff time for program
administration of the for-sale units. The Agreement requires the developer/property owner pay an annual
monitoring fee of $100.00 per for-sale BMR unit. The Developer has also paid for the staff time and legal
fees associated with the preparation of multiple BMR Agreements.
The City contracts with MHA to administer the City’s affordable program for rental developments pursuant
to a service contract dated May 2, 2016. The net annual cost of the MHA rental administration contract
is about $30,500 per year and is funded by the affordable housing fees collected by the Community
Development Department from a commercial development linkage fee and affordable housing in lieu fee.
The affordable housing in-lieu fees are stored in Fund 243.
OPTIONS:
The City Council has the following options to consider on this matter:
• Accept the report; or
• Continue the matter and direct staff to return with additional information; or
• Reject the report.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
RECOMMENDED ACTION:
Accept report.
ATTACHMENTS:
1. Below Market Rate Housing Agreement Addressing Rental/Lease Options
2. Letter from Thompson Development Company to the City of San Rafael presenting the annual
BMR Agreement rental/lease report; November 5, 2018
ATTACHMENT 1
BMR AGREEMENT FOR RENTAL/LEASE
1200 Irwin Street-524 Mission Avenue
Recorded May 16, 2018
RECORDING REQUESTED By and
WHEN RECORDED MAIL TO:
City _of San Rafael
Attn: City Clerk
1400 Fifth Avenue
San Rafael, Ca 94901
No fee for recording pursuant to
Government Code Section 27383
111111111111 Hiil 111111111111111 HIii lllll 111111111111111 1111111111111
2018~0017 403
Recorded
Official Records
County of
Marin
RICHARD N. BENSON
Assessor-Recorder
County derk
REC FEE 0.00
CONFORMED COPY O. 00
a
__ 09:49AM 16-May-2018 _____ Pa~~--1-of -~-S
REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS
(Below Market Rate Rental Unit Agreement; Density Bonus Law)
Development Name: Mission Irwin Carriage Houses
Location: 1200 Irwin Street-524 Mission Avenue, San Rafael (APN 014-013-05)
Developer: 524 Mission Street, LLC
This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement") is made anq entered
into this 14th day of August ,2017 , among the CITY OF SAN RAFAEL, a municipal corporation ("City");
"), the HOUSING AUTHORITY OF THE COUNTY OF MARIN, a ·public body, corporate and politic,
created under the Housing Authority Law of the State of California ("Marin Housing Authority"); and 524
MISSION STREET, LLC a California limited liability company, or any of their successors in interest
(collectively the 11 Developer 11
), collectively the "Parties," with reference to the following:
RECITALS
A. The City has adopted a density bonus ordinance (Section 14.16 .030.H of the San Rafael
Municipal Code) (the "Density Bonus Ordinance") to conform with state density bonus law (Government
Code Sections 65915 -65918) (together "Density Bonus Law"). Density Bonus Law allows a density bonus,
concessions, and other regulatory incentives when a developer proposes to provide rental housing affordable to
Very Low Income or Low Income Households, as defined below.
B. Developer is the owner of certain real property located at 1200 Irwin Street, San Rafael,
County of Marin, California, which is more particularly described in attached Exhibit A incorporated herein by
this reference (the "Property"). In consideration of certain valuable land use and economic-benefits conferred
by the City upon the Property under Density Bonus Law, Developer, for itself, its successors, heirs, grantees
and assigns, hereby agrees to comply with the. requirements of Density Bonus Law as applied to the Property.
C. The Developer has received a discretionary approval from the City Council of the City of San
Rafael (Resolution 12315; the "Project Approvals") to construct a total of fifteen (15) residential
condominium units on the Property (the "Development"). As part of the Development, Developer has sought
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anti agreed to construct two dwelling units affordable to Very Low and Low Income Households (the
"Affordable Units") for the Density Bonus Term as defined below. The two Affordable Units represent
fifteen percent (15%) of the thirteen (13) maximum units allowed by zoning prior to the application of the
density bonus.
D. Under Density Bonus Law, Developer has applied for, and the City has granted, the following
regulatory incentives in exchange for the Developer's provision of the Affordable Units: (1) a density bonus of
two units; and (2) reduced parking requirements, including tandem parking and a-maximum of two spaces per
dwelling unit. The density bonus and parking reduction incorporated into the Development are collectively
"Incentives."
E. Density Bonus Law requires the City to ensure, and the Developer to agree to, continued
affordability of the Affordable Units for the Density Bonus Term. To ensure their continued affordability for
the Density Bonus Term, this Agreement shall be executed and recorded against the Property prior to issuance
of the Certificate of Occupancy for the Development.
F. Pursuant to San Rafael City Council Resolution 14132 adopted June 20, 2016, the Parties
entered into that certain Below Market Rate Housing Agreement and Declaration of Restrictive Covenants
dated May 20, 2016 and recorded July 26, 2016 as Instrument Number 2016-0033359 in the Official Records
of the County of Marin. (the "BMR Agreement"). The BMR Agreement requires the Developer to provide
two Affordable Units; if the Developer elected to initially rent the Affordable Units, the BMR Agreement
requires one Affordable Unit to be affordable to Very Low Income Households and one Affordable Unit to be
affordable to Low Income Households for the Density Bonus Term as defined below. The BMR Agreement
further requires that if the Developer elects to initially rent the Affordable Units, the Developer en.ter in.to a
BMR Rental Agreement. The Developer has elected to initially rent the Affordable Units. This Agreement
constitutes the BMR Rental Agreement.
G. Developer acknowledges and agrees that the Project Approvals provided adequate and proper
notice pursuant to Government Code Section 66020 of Developer's right to protest any requirements for fees,
dedications, reservations, and other exactions as may be included in this Agreement, that no protest in
compliance with Section 66020 was made within ninety (90) days of the date that notice was given, and that
the period has expired in which Developer may protest any and all fees, dedications, reservations, and other
exactions as may be included in this Agreement.
H. Marin Housing Authority is authorized by law to participate in programs that provide housing
for households of very low, low, and moderate income. The City has contracted with Marin Housing Authority
to administer the City's affordable housing program.
I. Developer and Dominican University of California ("Dominican") have entered.into a Master
Lease dated February 9, 2017, by the terms of which Dominican has agreed to lease the Development from the
Developer and to sublease the units to students enrolled in Dominican University programs ("Dominican
Master Lease"), The City has been provided a copy of this Dominican Master Lease.
NOW THEREFORE, it is hereby agreed by and between the Parties hereto as follows:
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AGREEl\ll ENT
The Parties agree and acknowledge that the above recitals are true and accurate, and are incorporated
into this Agreement by this reference.
1. . Definitions and Exhibits
1.1 Definitions. In addition to those tenns defined in the Recitals and in other sections of this
Agreement, the following tenns are specially defined for the purposes of this Agreement:
A. "Affordable Rent" is the maximum allowable Rent for an Affordable Unit that does
not exceed: (i) for Very Low Income Households, is equal to or less than one-twelfth (1/12) of thirty percent
(30%) of fifty percent (50%) of Area Median Income, as adjusted for Assumed Household Size; (ii) for Low
Income Households, is equal to or less than one-twelfth ( 1/12) of thirty percent (30%) of sixty percent (60%) of
Area Median Income; and (iii) for Median Income Households, is equal to or less than one-twelfth (1/12) of
thirty percent (30%) of one hundred percent (100%) of Area Median Income, as adjusted for Assumed
Household Size. Affordable Rent cannot exceed the Rent for Market Rate Units. An example of the
calculations and methodology to be used to determine the Affordable Rent is illustrated in Exhibit B attached
hereto .. An example of the calculations and methodology to be used to determine the Affordable Rent during
the Dominican Master Lease is illustrated in Exhibit B-1 attached hereto.
B. "Area Median Income" means median yearly income in Marin County as published
pursuant to California Code of Regulations, Title 25, Section 6932, or successor provision.
C. "Assumed Household Size" shall be based on presumed maximum occupancy levels
of one person in a studio apartment, two (2) persons in a one-bedroom unit, three (3) persons in a two-bedroom
unit, and one additional person for each additional bedroom thereafter.
D. "Density Bonus Term" is the period that commences when the City, Marin Housing
Authority, and the Developer record the Regulatory Certificate described in Section 5 and that terminates fifty-
five (55) years after the date of the recordation of the Regulatory Certificate.
E . "Eligible Household" is a household which has been detennined to be eligible to rent
or lease an Affordable Unit in compliance with Density Bonus Law and this Agreement. All occupants of an
Affordable Unit are considered to be one household.
F. "Household Income" is the combined, gross, pre-tax income of all occupants of the
Affordable Unit, including any co-signors on the lease or sublease.
G. "Low Income Affordable Unit" means an Affordable Unit reserved for occupancy by
Low Income Households at an Affordable Rent.
H. "Low Income Household" means a household whose Household Income does not
exceed the lower income limits applicable to Marin County, adjusted for household size, as published annually
by the California Department of Housing and Community Development; generally a household with a
Household Income between fifty percent (SOo/t:) and eighty percent (8090) of Area Median Income, adjusted for
actual household size .
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I. "Market Rate Units" are Units which are not Affordable Units.
J. "Median Income Household" means a household whose Household Income does not
exceed the Area Median Income applicable to Marin County, adjusted for household size, as published
annually by the California Department of Housing and Community Development; generally a household with a
Household Income between eighty percent (80%) and one hundred percent (100%) of Area Median Income,
adjusted for actual household size.
K . "Rent" is the total of monthly payments as calculated by the Marin Housing Authority
and paid by the Tenant of an Affordable Unit for all of the following: ( 1) use and occupancy of the Affordable
Unit and land and all facilities associated with the Affordable Unit, including but not limited to parking,
bicycle storage, storage lockers, and use of all common areas; (2) any separately charged fees or service
charges assessed by the Developer which are required of all tenants of Units in the Project, except security
deposits; (3) an allowance for utilities paid by the Tenant as established by the Marin Housing Authority,
including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, but
not telephone service or cable TV; and (4) any other interest, taxes, fees or charges for use of the land or
associated facilities that are assessed by a public or private entity other than the Developer and paid by the
Tenant.
L. "Tenant" is all occupants of an Affordable Unit pursuant to a valid lease or rental
agreement with the Developer. During the term of the Dominican Master Lease, a Tenant shall include all
occupants of an Affordable Unit under a valid sublease or rental agreement pursuant to the Dominican Master
Lease.
· M. "Tenant Lease" is defined in Section 3.4.
N. "Unit" is one of the fifteen ( 15) dwelling units in the Development.
0. "Very Low Income Household" means a household whose Household Income does
not exceed the very low income limits applicable to Marin County, adjusted for household size, as published
annually by the California Department of Housing and Community Development; generally a household with a
Household Income at or below fifty percent (50%) of Area Median Income.
P. "Very Low Income Affordable Units" means an Affordable Unit reserved for rent by
Very Low-Income Households at an Affordable Rent.
1.2 Exhibits. The following exhibits are attached to and incorporated into this Agreement:
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Exhibit A
Exhibit B
Exhibit B-1
Exhibit C
Exhibit D
Exhibit E
Legal Description of the Property.
Unit Description and Affordable Rent Calculation .
Affordable Rent Calculation for the Term bf the Dominican Master Lease.
Household Income Certification.
Certificate of Continuing Compliance.
Commencement of Density Bonus Term
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2 .. Construction of Development and Affordable Units
2.1 Satisfaction of Affordable Housing Requirement. The Affordable Housing requirements shall
be satisfied with respect to the Property if: (a) the Developer constructs or causes to be constructed two
Affo;_dable Units_ofthree bedro_om.s_and thre_e _b.athswith _a 5_6_4squarefoot tandem -garage and Gb)-Developer
offers all dwelling units in the Development for rent and rents the Affordable Units to Eligible Households in
compliance with Section 3 below.
2.2 Affordable Units. To satisfy Developer's affordable housing requirements forthe Development
under Density Bonus Law and the Density Bonus Ordinance, at initial occupancy of the Development,
Developer shall: (a) rent one Affordable Unit to ·a Low Income Households .at Affordable Rent; and (b) rent
one Affordable Unit to a Very Low Income Household at Affordable Ren_t, as specified in Section 3 below.
2.3 Location of Affordable Units. The Affordable Units shall initially be constructed on the
Property in the locations shown or described in Exhibit B attached hereto.
2.4 Appearance, Size. Bedroom Count and Tenure.
A. Appearance and Maintenance of Affordable Units. The design, square footage,
appearance, and general quality of the Affordable Units shall be compatible with those of the Market Rate
Units and consistent with the designs provided for the Project Approvals. Developer shall allocate and assign
parking spaces, bicycle storage, storage lockers, and other spaces reserved for use by individual Units to the
Affordable Units on the same basis as for the Market Rate Units, and Tenants of the Affordable Units shall
have equal access to the Development's common areas as is given to the residents of the Market Rate Units, but
any fee charged for use of common areas or for spaces reserved for individual Units shall be included in the
· Tenant's Rent. Once completed, the Affordable Units shall not be kept vacant or used for any purpose except
for residential use and shall be marketed concurrently with the Market Rate Units and offered for rent to
Eligible Households at Affordable Rents.
B. · Location and Characteristics of Affordable Units. Developer shall provide the
Affordable Units in the Development in accordance with the schedule shown in Exhibit B. As provided in
Exhibit B, the Affordable Units shall be dispersed within the Development with a bedroom mix equivalent to
the bedroom mix of the Market Rate Units, except that the Developer may elect to provide the Affordable
Units with more bedrooms.
C. Change in Location of Affordable Units. If, after recordation of this Agreement,
Developer desires to change the location of any Affordable Units within the Development, Developer shall
submit a written request for such change to the Director, who may approve such request provided that any
relocated Affordable Units shall be comparable to those listed in Exhibit Band shall contain the same number
of bedrooms.
2.5 Schedule for Developing Affordable Units. Certificates of occupancy or final inspections for
the Affordable Units shall be issued concurrently with certificates of occupancy or final inspections for the
Market Rate Units, such that, of the units that have been issued certificates of occupancy or final inspections, at
least fifteen percent ( 15%) shall be Affordable Units.
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3. Rent Regulatory Provisions
The provisions of this Section 3 are applicable until the expiration of the Density Bonus Term.
3.1 Affordability and Occupancy Covenants.
A. Occupancy Requirements. Subject to the provisions of Section 3.2 below, one of the
Affordable Units shall be rented to and occupied by or, if vacant, available for occupancy by, a Very Low
Income Household; and one Affordable Unit shall be rented to and occupied by or, if vacant, available for
occupancy by, a Low Income Household. The Affordable Units shall not be kept vacant or used for any
purpose except for residential use and, when vacant, shall be offered for rent to Eligible Households at
Affordable Rent. '
B. Allowable Rent. Subject to the provisions of Section 3.2 below, the total maximum
Rent charged to Tenants of the Affordable Units shall not exceed Affordable Rent. During the tenn of the
Dominican Master Lease, the total Rent charged to all occupants of each Affordable Unit cannot exceed the
Affordable Rent.
C. Approval of Rents. Initial Rent for the Affordable Units shall be approved by the
Marin Housing Authority prior to occupancy at the time the Developer submits the information required by
Section 4.1 below. Marin Housing Authority shall review all proposed Rent increases to determine whether the
proposed increases are consistent with the provisions of this Agreement. Developer shall certify to Marin
Housing Authority that no fee other than Affordable Rent is being charged to Tenants of the Affordable Units
for all of the components of Rent defined in Section 1.1 above.
D. Schedule of Affordable Rents. The City has provided the Developer with a schedule
of Affordable Rents for the Affordable Units in effect on the date of this Agreement, set forth in attached
Exhibit B and Exhibit B-1 during the term of the Dominican Master Lease.:. Marin Housing Authority annually
determines Affordable Rents (including utility allowances) based on changes in Area M~dian Income and
utility allowances, and Developer shall obtain a copy of the schedule from Marin Housing Authority.
3.2 Increased Income of Tenants.
A. Increase from Very Low Income to at or below Low Income. If, upon annual
recertification of a Tenant's Household Income, the Developer determines that a former Very Low Income
Household's Income has increased and exceeds the qualifying income for a Very Low Income Household, but
does not exceed the qualifying limit for a Low Income Household, then, upon expiration of the Tenant's lease
and after thirty (30) days written notice to the Tenant, the Tenant's Rent may be increased to Affordable Rent
for Low Income Households.
B. Increase from Very Low Income or Low Income to at or below Median Income. If,
upon annual recertification of a Tenant's Household Income, the Developer determines that a former Very Low
Income or Low Income Household's Income has increased and exceeds the qualifying income for a Very Low
Income or Low Income Household, but does not exceed the qualifying limit for a Median Income Household,
then, upon expiration of the Tenant's lease and after thirty (30) days written notice to the Tenant, the Tenant's
Rent may be increased to Affordable Rent for Median Income Household~.
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C. Increase from Very Low Income, Low Income, or Median Income to Above Area
Median Income. If, upon recertification of a Tenant's Household Income, the Developer determines that the
Tenant's Household Income has increased and exceeds the qualifying income for a Median Income Household,
then the Tenant shall be given written notice that: (i) Tenant's Rent shall be increased sixty (60) days after the
_ ii!~-in.t.ll~ n.Qti.Qe_ trum amo_unt to be _determi ned _by_D_e.v_eloper but notto.exceed Rent.for a comparable Market -.
Rate Unit; and (ii) Tenant shall vacate the Affordable Units six (6) months from the date of the notice or upon
expiration of the Tenant's lease, whichever is later. If, prior to the date by which the Tenant must vacate the
Affordable Units, another Unit is vacated which is not designated as an Affordable Unit and is of appropriate
bedroom size, the Developer may, at the Developer's option, request the City to approve a change in the
location of the Affordable Units; allow the Tenant to remain in the original Unit; and designate the newly
vacated Unit as an Affordable Unit if approved by the City. ·
3.3 Agreement to Limitation on Rents. The Development has received Incentives from the City
under the Density Bonus Law and the Density Bonus Ordinance, which are forms of assistance specified in
Chapter 4.3 (commencing with Section 65915) of Division I of Title 7 of the Government Code. Sections
l 954.52(b) and 1954.53(a)(2) of the Costa-Hawlcins Act provide that, where a developer has received such
assistance, certain provisions of the Costa-Hawkins Act do not apply if a developer has so agreed by contract.
The Developer hereby agrees to limit Rents as provided in this Agreement in consideration of the Developer's
receipt of the Incentives and further agrees that any limitations on Rents imposed on the Affordable Units are
in confonnance with the Costa-Hawkins Act. The Developer further warrants and covenants that the terms of
this Agreement are fully enforceable.
3.4 Lease and Sublease Provisions. The Developer shall use a form of Tenant lease, and, during
the term of the Dominican Master Lease, Dominican shall use a form of Tenant sublease (collectively the
_".Tenant Lease") approved by the City for the Affordable Units . The City shall not withhold approval from any
form that:
A. provides that the Tenant's Household Income is subject to annual certification;
B. provides for termination of the lease for failure: (I) to provide any information
required under this Agreement or reasonably requested by the Developer to establish or recertify the Tenant's
qualification, or the qualification of the Tenant's household, as an Eligible Household in accordance with this
Agreement, or (2) to qualify as an Eligible Household as a result of any material misrepresentation made by
such Tenant with respect to the Household Income computation or certification;
C. -provides that the Rent may not be raised more often than once every twelve (12)
months. The Developer will provide each Tenant with at least sixty (60) days written notice of any increase in
Rent applicable to such Tenant;
D. prohibits further subleasing of the Affordable Units or any portion of the Affordable
Units or any spaces reserved for the use of the Tenant, contains nondiscrimination provisions, and includes the
Tenant's obligation to inform the Developer of any need for maintenance or repair;
E. includes reasonable rules of conduct consistent with California law;
F. allows termination of the tenancy only for an increase in Tenant's Household Income
above qualifying income for Median Income Households or for good cause, including violation of the terms
and conditions of the Tenant Lease, violations of applicable federal, state, or local law, or other good cause;
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G. includes if desired, the obligation for Tenant to provide a security deposit not
exceeding one months' Rent.
4. Marketing, Income Certification, Reporting, and Annual Fee.
4.1 Required City Approvals. At least thirty (30) days before any Units in the Development
receive a final inspection or certificate of occupancy, the Developer shall notify City and the Marin Housing
Authority of the availability of the Affordable Units and provide to the City and Marin Housing the proposed
form of Tenant Lease to confirm conformance with the provisions of Section 3.4 above; and proposed
Affordable Rent for the Affordable Units, all for City and Marin Housing Authority review and approval. The
Affordable Units shall be marketed concurrently with the marketing of the Market Rate Units.
4.2 Prohibition on Discrimination in Tenant Selection (Section 8 Vouchers and Certificate
Holders). The Developer will review applications from prospective Tena_nts of the Affordable Units, on the
same basis as all other prospective Tenants, of persons who are recipients of federal certificates for rent
subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act or any
successor. The Developer shall not apply selection criteria to Section 8 certificate or voucher holders that are
more burdensome than criteria applied to all other prospective Tenants for the Affordable Units, nor shall the
Developer apply or permit the application of management policies or lease provisions with respect to the
Development which have the effect of precluding occupancy of Affordable Units by such prospective Tenants.
Notwithstanding the above, during the term of the Dominican Master Lease, Dominican may choose occupants
of the Affordable Units.
4.3 Marketing Materials.
A. Term of Dominican Master Lease. During the term of the Dominican Master Lease, at
least thirty (30) days before any Affordable Units are rented in the Development, the Developer shall provide
information that will be provided to Dominican and to applicants of the Affordable Units, including conditions
and restrictions applicable to occupancy of the Affordable Units, current Affordable Rent, permitted Rent
increases, maximum qualifying Household Income for an Eligible Household, requirement for annual
Household Income recertification, and requirement to vacate the Affordable Unit if the Tenant's Household
Income exceeds Median Household Income.
B. Termination of Dominican Master Lease. The Developer shall notify the City when
the Dominican Master Lease terminates. Upon the termination of the Dominican Master Lease, the Developer
shall additionally submit a marketing plan to the City that shall include means to be used to advertise the
Affordable Units to the public and maintenance of a waiting list and the amount of any application screening
fee to be imposed by Developer. Developer shall provide information to applicants as required by subsection A
of this Section.
4.4 Income Certification. Upon initial occupancy and annually thereafter, the _Developer will
obtain, complete and maintain on file Household Income certifications (Exhibit C), or a similar form as may be
approved by the City, for each Tenant renting an Affordable Unit. Developer shall make a good faith effort to
verify that the Household Income ce~ifications provided by a Tenant are accurate by talcing two or more of the
following steps as a part of the verification process for all members of the Tenant household age eighteen ( 18)
or older: (a) obtaining a minimum of the three (3) most current pay stubs; (b) obtaining an income tax return
for the most recent tax year, including either a certification that Tenant is not claimed as a dependent or copies
of any income tax returns where the Tenant is claimed as a dependent; (c) conducting a credit agency or
8
885\0 I \2162288 .2
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similar search; (d) obtaining the three (3) most current savings and checking account bank statements; (e)
obtaining an income verification form from a current employer; (f) obtaining an income verification fonn from
the Social Security Administration and/or the California Department of Social Services if an adult member ·of
the Tenant's household receives assistance from either of such agencies; or (g) if the Tenant is unemployed and
. -has no such -tax--return, obtain-another-form of independent veri.fiGati0n. During-the--terrn-0f-the--D0miniean
Master Lease, the Developer may also elect to obtain-a Free Application for Federal Student Aid or form
utilized by Dominican as part of the verification process. The Developer shall maintain copies of annual
Household Income certifications and maintain that form on file for a minimum of five (5) years and shall
pennit the City or their designee to inspect the Household Income certifications at the Developer's office upon _
three (3) days' notice . The Developer shall provide any additional infonnation reasonably requested by the
City or its designee. ·
4.5 Annual Report. The Developer shall submit to the City and Marin Housing Authority by June
30 of each year a report, in a form prescribed by or otherwise acceptable to the City, verifying compliance by
Developer with the terms of this Agreement and certified as correct by the Developer under penalty of perjury.
Exhibit D Certification of Continuing Compliance, or a similar form as may be approved by the City, may be
used to meet this requirement. The annual report shall include without limitation the following information :
A. Certifications of Household Income for all Tenants of the Affordable Units at the time
of initial occupancy and upon the yearly anniversary of their continuing tenancies.
B. Verified Household Income statements, Developer shall retain in the Tenant's file all
verifications of Tenant's Household Income.
C . Number of persons in each Affordable _Unit.
D. Certification of the amount of Rent charged for the year for the Affordable Units.
E. Certification that neither Developer nor Dominican nor any other party is charging any
fee other than Affordable Rent to the Tenants of the Affordable Units for all of the components of Rent defined
in Section 1.1 above.
F. During the Dominican Master Lease, the Developer or their designee, will obtain,
complete and. maintain on file Household Income Certificatio'ns (Exhibit C), or a similar form as may be
approved by the City, for each of the eight (8) tenants identified as "Eligible Households".
G. Other information reasonably required by the City.
4.6 Other Reports. Within fifteen (15) days after receipt of a written request, Developer shall ·
provide any other info~ation or completed forms requested by the City or Marin Housing Authority to ensure
compliance with this Agreement.
4 . 7 Records. The Developer shall maintain complete, accurate, and current records pertaining to
the Units for five (5) years after creating such records, and shall permit any duly authoriz~d representative of
the City or Marin Housing Authority to inspect and copy such records, including the records pertaining to
Household Income and household size of Tenant households .
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9
4.8 Annual Monitoring Fee. The Developer agrees to pay to the City during the Density Bonus
Term an annual monitoring fee payable on or before June 30 of each year as established by the City. The
initial annual monitoring fee is shown on Exhibit D.
S. Commencement of Density Bonus Term. The Density Bonus T erm shall commence on the date that
the Developer, City, and Marin Housing record a certificate stating that the Affordable Units is rented and
occupied by an Eligible Household. Such certificate shall identify the beginning and end dates of the Density
Bonus Term (Exhibit E).
6. Management of Property and Propertv Maintenance.
6.1 Management Responsibilities. The Developer is responsible for all management functions
with respect to the Development, including, without limitation, the annual recertification of household size and
Household Income (subject to review by the City or its assignee), selection of Tenants, maintenance of a
waiting list for the Affordable Units, evictions, collection of Rents and deposits, maintenance, landscaping,
routine and extraordinary repairs, replacement of capital items, and security. The City and Marin Housing
Authority shall have no responsibility over management of the Development.
6.2 Property Maintenance. The City places prime importance on quality maintenance to ensure
that all developments within the City which include affordable housing units are not allowed to deteriorate due
to below-average maintenance. Developer shall provide the Affordable Units with the same level and quality of
maintenance, including performance of repairs and periodic replacement of fixtures, as the Market Rate Units.
The Developer agrees to maintain · all interior and exterior improvements,· including landscaping, on the
Property in good condition and repair (and, as to landscaping, in a healthy condition) and in accordance with
all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other
governmental agencies and bodies having or claiming jurisdiction and all their respective departments,
bureaus, and officials. ·
6.3 Remedies . In the event that the Developer breaches any of the covenants contained in this
Section 6 and such default continues for a period of ten ( 10) days after written notice from the City specifying
the nature of the breach with respect to graffiti, debris, waste material, or a health or safety violation, or thirty
(30) days after written notice from the City specifying the nature of the breach with respect to general
maintenance, landscaping and building improvements, then the City, in addition to whatever other remedy it
may have at law or in equity, shall have the right (but is not required) to enter upon the Property after ten ( 10)
days' prior written notice to the Developer describing the nature of the City's intended actions and to perform or
cause to be performed all acts and work necessary to protect, maintain, and preserve the improvements and
landscaped areas on the Property, as specified in a correction plan approved by the City, and to attach a lien on
the Property~ or to assess the Property, in the amount of the expenditures incurred by the City or its agents
arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such
cure, plus an administrative charge equal to fifteen percent (15%) of the amount of such expenditures (the
expenditures plus the administrative charges are the "Correctio n Costs"), if Developer does not remit the full
amount of the Correction Costs to the City within thirty (30) days after City notifies Developer of the full
amount of the Correction Costs.
6.4 Taxes and Assessments . Developer shall pay all real and personal property taxes, assessments,
if any, and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes
assessed against it , or payable by it, at such times and in such manner as to prevent any penalty from accruing,
885\0 l\2 l 62288 .2
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10
or· any li~n or charge from attaching to the Property. The Developer shall have the right to contest in good
faith, any such taxes, assessments, or charges. In the event Developer exercises its right to contest any tax,
assessrnent, or charge against it, Developer, on final determination of the proceeding or contest, shall
immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and
_interest..
6.5 Damage or Destruction of Development. If all of the Units on the Property are demolished, the
Incentives granted to Developer under Density Bonus Law shall terminate and the tenns of this Agreement
shall terminate and be of no further force and effect.
7. Enforcement
7 .1 Covenants Running with the Land. The City, Marin Housing Authority, and Developer hereby
declare their express intent that the covenant~ and restrictions set forth in this Agreement shall apply to· and
bind Developer and its heirs, executors, administrators, successors, transferees, and assignees having or
acquiring any right, title or interest in or to any part of the Property and shall run with and burden such portions
of the Property until tenninated in accordance with Section 7.2. Until all or portions of the Property are
expressly released from the burdens of this Agreement, each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any portion thereof shall be held conclusively to have
been executed, delivered, and accepted subject to such covenants and restrictions, regardless of whether such
covenants or restrictions are set forth in such contract, deed or other instrument. In the event of foreclosure or
transfer by deed-in-lieu of all or any portion of the Property prior to completion and ~ale of the Affordable
Units, title to all or any portion of the Property shall be taken subject to this Agreement. Developer
acknowledges that compliance with this Agreement is a requirement of Density Bonus Law and the Project
Approvals, and that no event of foreciosure or trustee's sale may remove these requirements from the Property.
7 .2 Release of Property from Agreement.
A. Prior to the expiration of the Density Bonus Term, Developer shall provide all
notifications required by Government Code Sections 65863.10 and 65863.11 or successor provisions and any
other notification required by any state, federal, or local law.
B . Upon the expiration of the Density Bonus Term, City and Marin Housing Authority
shall execute and record a release of the Development, the Property, and each Unit in the Development from
the burdens of this Agreement within thirty (30) days following written notice from the Developer, if at the
time the Developer is in compliance with all terms of this Agreement.
7.3 Default. Failure of the Developer to satisfy any of Developer's obligations under the terms of
this Agreement within thirty (30) days after the delivery of a notice of default from the City will constitute a
default under this Agreement and a failure to satisfy the Project Approvals and Density Bonus Law. In addition
to remedies for breach of this Agreement, the City or Marin Housing Authority, if authorized by the City, may
exercise any and all remedies available to it, including but not limited to:
A. withholding, conditioning, suspending or revoking any permit, license, subdivision
approval or map, or other entitlement for the Development, including without limitation final inspections for
occupancy arid/or certificates of occupancy;
885\01\2162288.2
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1 I
B. instituting against the Developer, or other parties, a civil action for declaratory relief,
injunction or any other equitable relief, or relief at law, including without limitation an action to rescind a
transaction and/or to require repayment of any funds received in connection with such a violation;
C. where one or more persons have received financial benefit as a result of violation of
this Agreement or of any requirement imposed under the Density Bonus Law, instituting legal action to recover
as necessary, a penalty in any amount up to and including the amount of financial benefit received, in addition
to recovery of the benefit receive(};
D . requiring the Developer or his/her successors in interest to the Property to pay the City
Rent or any other payment received by the Developer for the Affordable Units from the date of any
unauthorized use of the Affordable Units or in excess of Affordable Rent; and
E. Any other means authorized under the City of San Rafael Municipal Code, Density
Bonus Law, or any other federal or state statute.
7.4 Remedies Cumulative. No right, power, or remedy given to the City or Marin Housing
Authority by the terms of this Agreement or Density Bonus Law is intended to be exclusive of any other right,
power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to
every other right, power, or remedy given to the City by the terms of this Agreement, Density Bonus Law, or
by any statute or ordinance or otherwise against Developer and any other person. Neither the _ failure nor any
delay on the part of the City or Marin Housing Authority to exercise any such rights and remedies shall operate
as a waiver thereof, nor shall any single or partial exercise by the City or Marin Housing Authori ty of any such
right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy .
7 .5 Attorney's Fees and Costs. If either party initiates an action to enforce its rights under the
Agreement and elects at the initiation of the action to seek the recovery of attorneys' fees, the prevailing party
in such an action shall be entitled to an award ofreasonable attorneys' fees and costs in addition to any other
recovery under this Agreement.
8. Gen eral Provisions
8.1 Appointment of Other Agencies. At its sole discretion, the City may designate, appoint or
contract with any other public agency, for-profit or non-profit organization to perfonn some or all of the City's
obligations under this Agreement.
8.2 Records. Developer shall retain all records related to compliance with obligations under -this
Agreement for a period not less than five (5) years from the date of origination of such records, and make them
available to City or Marin Housing Authority employees or others designated by the City for inspection and
copying on five (5) business days' written notice. The City and Marin Housing Authority shall be entitled to
monitor compliance with this Agreement and Density Bonus Law, and Developer shall cooperate with City
monitoring, including obtaining Tenant Rent and Household Income verification upon request of th e City .
· 8.3 Nondiscrimination . The Affordable Units shall be available for occupancy to members of the
general public. The Developer shall not give preference to any particular class or group of persons in renting
the Affordable Units, except to the extent that the Affordable Units is required to be rented to Eligible
Households and as required by this Agreement, including, without limitation, as set forth in Section 3 above;
provided, however, there shall be no discrimination against or segregation of any person or group of persons,
885\0 I \2162288 .2
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12
on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, source of
income (e.g., SSI), age (except for lawful senior housing), ancestry, or disability, in the leasing, transferring,
use, occupancy, tenure, or enjoyment of any Unit nor shall the Developer or any person claiming under or
through the Developer, establish or permit any such practice or practices of discrimination or segregation with
· reference to the-selection ; location, -number;use, or occupancy of-Tenants ·of any l:Jnit or in ·connection with the
employment of persons for the construction, operation and management of the Development.
8.4 Hold Harmless. Developer will indemnify and hold harmless (without limit as to amount) City
and Marin Housing Authority and their elected officials, officers, employees and agents in their official
capacity (hereinafter collectively referred to as "lndemnitees"), and any of them, from and against all loss, all
risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all
claims, demands, suits, actions, judgments and executions for damages of any and every kind and by
whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to the
Development, the Affordable Units, or Developer's performance or non-performance under this Agreement,
including claims pursuant to California Labor Code Section 1720 et seq., and shall protect and defend
Indemnitees, and any of them with respect thereto, except to the extent arising from the gross negligence or
willful misconduct of the Indemnitees. The provisions of this Section shall survive expiration or other
termination of this Agreement or any release of part or all of the Property from the burdens of this Agreement,
and the provisions of this Section shall remain in full force and effect.
8.5 Notices. All notices required pursuant to this Agreement shall be in writing and may be given
by personal delivery or by registered or certified mail, return receipt requested, to the Party to receive such
notice at the addressed set forth below:
To the City:
To the Developer:
To Marin Housi'ng Autnonfy: -
City of San Rafael
Office of the City Clerk
1400 Fifth Avenue
San Rafael, Ca 94915-1560
524 Mission Street, LLC
Thompson Development Inc.
250 Bel Marin Keys Blvd., Bldg A
Novato, CA 94949
·-· Marin Housing -Authority
Executive Director
4020 Civic Center Drive
San Rafael, CA 94903-4173
Any party may change the address to which notices are to be sent by notifying the other parties of the
new address, in the manner set forth above.
8.6 Integrated Agreement. This Agreement constitutes the entire Agreement between the Parties
and no modification hereof shall be binding unless reduced to writing and signed by the Parties hereto.
8.7 Each Party's Role in Drafting the Agreement. Each Party to this Agreement has had an
opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and
885\01\2 I 62288 .2
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13
negotiate revisions to the Agreement. Accordingly, neither Party shall rely upon Civil Code Section 1654 in
order to interpret any uncertainty in the meaning of the Agreement.
8.8 Amendment of Agreement; Approvals and Consents.
A. Amendments to this Agreement, including any proposal to change any condition of
the Project Approvals, shall be subject to the review and approval of the decision-making body which
approved the Development. No amendment may be approved that is inconsistent with State law, the San Rafael
Municipal Code, or any adopted affordable . housing guidelines. Upon approval, a new Agreement or
amendments to this Agreement, as appropriate, shall be executed and recorded.
B. The City has authorized the City Manager to execute this Agreement and has
authorized the City Manager to deliver such approvals or consents as are required by this Agreement. Marin
Housing Authority has authorized the Executive Director to execute this Agreement and has authorized
Executive Director to deliver such approvals or consents as are required by this Agreement. Any consents or
approvals required under this Agreement shall not be unreasonably withheld or made, unless it is specifically
provided that a sole discretion standard applies.
8.9 Amendment of Agreement. This Agreement, and any section, subsection, or covenant
contained herein, may be amended only upon the written consent of the City, Marin Housing Authority, and
the Developer.
K. l O No Claims. Nothing contafoed in this Agreement shall create or justify any claim against the
City or Marin Housing Authority by any person that Developer may have employed or with whom Developer
may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the
performance of any work or services with respect to the Property or the construction of the Development or
construction of the Affordable Units.
8.11 Applicable Law and Venue. This Agreement shall be governed by California law. Venue for
any dispute arising out of this Agreement shall be Marin County.
8.12 Waivers. Any waiver by the City or Marin Housing Authority of any obligation or condition
in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City or Marin
Housing Authority to take action on any breach or default of Developer or to pursue any remedy allowed under
this Agreement or applicable law. Any extension of time granted to Developer to perfonn any obligation under .
this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement.
Consent by the City or Marin Housing Authority to any act or omission by Developer shall not be construed to
be consent to any other or subsequent act or omission or to waive the requirement for Marin Housing
Authority's or the City's written consent to future waivers.
8.13 Title of Parts and Sections. Any titles of the sections, subsections, or subparagraphs of this
Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of
the Agreement's provisions.
8.14 Multiple Originals; Counterpart. This Agreement may be executed in multiple originals, each
of which is deemed to be an original, and may be signed in counterparts.
885\01\21622S8 .2
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14
8.15 Recording of Agreement. This Agre~ment shall be recorded against the Property in the
Official Records of the County of Marin prior to the recordation of any parcel map or final subdivision map or
issuance of any building permit for the Development, whichever occurs first.
-8. I 6 -Se¥erability. In the event any--limitation; c0ndition, restriGtion, c0venant, or provis-ion
contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction,
the remaining portions of this Agreement shall nevertheless be and remain in full force and effect.
9. Exhibits. The following exhibits are attached to this Agreement:
885\0 I \2 I 6228S . 2
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Exhibit A
Exhibit B
Exhibit B-1
Exhibit C
Exhibit D
Exhibit E
Legal Description of the Property.
Unit Description and Affordable Rent Calculation.
Affordable Rent Calculation for the Term of the Dominican Master Lease.
Household Income Certification.
Certificate of Continuing Compliance.
Commencement of Density Bonus Term.
15
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first above written.
DEVELOPER: CITY:
524 Mission Street, LLC, a California limited liability City of San Rafael, a municipal corporation
company
By: R<5-
Managing Member
MARIN HOUSING AUTHORITY:
ATTEST:
~sther 8eh lit!, City Clerk
Li \'\cl SO...'{ LG\.v-o-.
APPROVED AS TO FORM:
Housing Authority of the County of Marin, a public By:
body, corporate and politic, created under the Housing Robert F. Epstein, Cit
Authority Law of the of lifomia
885\0 I \2162288 .2
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16
A notary public or other officer completing this certificate verifies only the id_entity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF MARIN
On Al-€}!br\ LP 1 ·?Dl7, ~efore me, 'l)a__\ 1 ~ N\ ft'O , Notary Public,
personally appeareo · VI ~ · WU,"\.._. , who proved to me on the basis of
satisfactory evidence to b~e pe:s~ whose name( ts subscribed to the within instru~nt and
ac~-~~ed el3d to_ me that he shi/try executed the same inJ1is/her/thei_r authorized capacity~i ), and that
by~er: h r signature 06 the rnstrument the personµ'), or the entity upon behalf of wh h the
person aced, executed the instrument. ·
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
885\01\2 I 62288 .2
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Name:
Notary Public
17
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF MARIN
On 4~$t 2 L Zo l 1 ' before me, dtf't1I r. /9{7!.a r ,· ,w...., 'Notary Public,
personally app ed L'e.tv LS A. :r;.,r&?f 4 v\ , who proved to me on the basis of
satisfactory evidence to be the person()) whose name(.if) is/~ subscribed to the within instrument and
acknowledged to me that he/sl;ie}the)' executed the same in his~~hsir authorized capacity~), and that
by his/l;ie.r'th~r signature(~ on the instrument the person(1', or the entity upon behalf of which the
person~ acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary Public
885\01\2162288 .2
6no12017
CAROL J. KAZARIAN
Commission # 2070835 · !, ~ Notary Public -California ~.
z Marin County ~ J. ;: .· 0 .Ml~o w~· [x~rts d u~ t5~
18
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy-, or
validity of that document.
State of California
County of Marin
On ~ I 1. 7 / "2..o \ f.> before me, Lindsay ·Faye Lara, Notary Public
(insert name and title of the officer)
personally ',3ppeared -Z...
who proved to me on the basis of satisfactory evidence to be the person whose name(~ is/are
subscribed to the within instrument and acknowledged to me that he/soo/they executed the same in
his/her/#teir authorized capacity(ies-), and that by his/i:ler/tfteir signature~ on the instrument the
person~, or the entity upon behalf of which the person(SJ acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature--~~'~-'-~--~-------(Seal)
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land referred to is situated in the County of Marin, City of San Rafael, State of California, and is described
as follows:
Commencing at the comer formed by the intersection of the Northerly line of Mission Street with the Easterly
line of Irwin Street; running thence Northerly along the Easterly line of Irwin Street 160 feet; running thence
Easterly and parallel with Mission Street 165 feet to the Westerly line of Park Avenue thei:ice Southerly along
said Line of Park Avenue 160 feet, more or less, to the Northerly line of Mission Street, a:nd thence Westerly
along said last mentioned line of Mission Street, 165 feet to the point of commencement.
APN: 014-013-05
885\0I\2162288.2
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A-1
EXHIBITS
UNIT DESCRIPTION AND SAMPLE CALCULATION OF AFFORDABLE RENT
TOTAL NUMBER OF VERY LOW AND LOW INCOME UNITS: Two
One 3 Bedroom unit @ Very Low
One 3 Bedroom unit @ Low
ALLOWABLE RENT CALCULATION: Housing expense includes utility allowance per
schedule below (allowances from Marin Housing). Very Low Income is 50% of Area
Median Income, Low Income is 60% of Area Median Income and Moderate Income is
80% of Area Median Income. The applicable household and unit sizes are listed below.
Actual households can exceed the household size indicated but the rental calculation
will not change.
For example, using the 2017 Area Median Income such calculation would be as follows:
The Three Bedroom Housing Expense shall not exceed i /12 of 30% of 50% for very
low income and 1 /12 of 30% of 60% for low income. ·
The maximum qualifying tenant income is 50% of Area Median Income for very low
income and 60% of Area Median Income for low income or a lesser income as defined
by the Owner.
Affordability Level 50% 60%
Household Size 4 Person . 4 Person
Unit Type 3 BRM 13 BRM
Median Income 115,300 115,300
Affordability Level 57,650 69,200
Monthly Income 4,804 5,767
30% of Income 1,441 1,730
Monthly Utility
Allowance (76) (76)
Maximum Allowable
Rent 1,365 1,654
B-1
Exhibit 8-1
Affordable Rent Calculation for Term of Dominican Master Lease
TOTAL NUMBER OF VERY LOW AND LOW INCOME UNITS: Two
One 3 Bedroom unit @ Very Low
One 3 Bedroom unit @ Low
For example, using the 2017 Area Median Income such calculation would be as follows:
\ .
The Three Bedroom Housing Expense shall not exceed 1 /12 of 30% of 50% for very
low income and 1/12 of 30% of 60% for low income.
The maximum qualifying tenant income is 50% of Area Median Income for very low
income and 60% of Area Median Income for low income or a lesser income as defined
by the Owner.
During the Term of the Dominican Master Lease, the entire project consisting of fifteen
three bedroom, three bathroom units will be subleased by Dominican University. The
University will designate four tenants as very low income and four tenants as low
income pased on Household Income ("Eligible Households"). Each of these eight
tenants will be charged one quarter of the Affordable Rent.
Number of Income Maximum Allowable Maximum Allowable Rent
Tenants Level Rent for Unit per Tenant
4 Very Low $1,365 $ 341.25
4 Low $1,654 ' $ 413.50
The Developer or its designee the University, will provide annual reports to the City of
San Rafael and/or its designee Marin Housing to verify that these eight Tenants ·are
paying no more each month than is allowable by the preceding table. In an effort to ·
distribute these tenants evenly throughout the community, these eight tenants may live
in any one of the fifteen three bedroom units in the project.
I
Developer acknowledges that the occupancy of the project by very low income and low
income students pursuant to this Exhibit 8 -1 is subject to review by the San Rafael City
Council after the first twelve months of occupancy of the project, at a hearing in which
the Developer and Dominican University and other interested parties will have an
opportunity to be heard and present evidence; and that the method of calculating the
Affordable Rent per unit and/or per tenant provided in this Exhibit B-1 may be modified
by the City Council after such review if the City Council finds such modification to be
necessary for the proper implementation of the affordability restrictions required under
the Density Bonus Law as applied to the Property.
B-1
ATTACHMENT 2
LETTER FROM THOMPSON DEVELOPMENT COMPANY
Annual BMR Rental/Lease Report
November 5, 2018
THOMPSON
DEV ELOPM ENT INC.
A l~ /\rFILIATE. or WES f B/\Y BU ILDElb IN C
November 5, 2018
Attn: Paul Jensen
Community Development Department
City of San Rafael
1400 Fifth Avenue
San Rafaet CA 94901
Re: Dominican Townhomes -1200 Irwin Street
BMR Rental Agreement Annual Update
Dear Mr. Jensen,
?50 Br-L MARIN l<r:vs l:lLVD. BLOG. A
NOVATO, CALlr:oPN IA 949'19
1115.456.8972 ·1 l::L.
415.382.9896 F/\X.
Delivered via Email
As you know, Dominican University is the Master Tenant on a Master Lease for the above referenced
property, and a·11 fifteen units are occupied by tenants that are in some way associated with the
University. Per the terms of the Below Market Rate Rental Agreement for this development, two of
these fifteen units are currently rented as Below Market Rate units.
In June of 2018 University Staff submitted Household Income Certification documents for units #14 and
#15 to verify that these units meet BMR standards as defined by the Marin Housing Authority. Please
find these documents attached for your reference. These documents indicate these two units are being
utilized as workforce housing for University employees. Unit #15 meets the standards for Very Low
Income Housing at 50% of AMI, and unit #14 meets the standards for Low Income Housing at 60% of
AMI.
The monthly rent charged for unit #lS is below the allowable maximum rent. However, as Ms. Lovette
of the MHA has brought to our attention, because the occupant has an annual income that is $12,000
below the maximum allowable income, the rent to income ratio exceeds 30%. In order to remedy this,
going forward, we suggest that in addition to following the Maximum Rental Affordability Table as
. published by the Marin Housing Authority in March of each year, we also verify that the monthly rent
charged to each tenant does not exceed 30% of that tenant's monthly income and also takes into
account the monthly utility allowance as determined by the MHA. Ms. Lovette has suggested that an
Addendum to the BMR Agreement be recorded to memorialize this arrangement. Both the owner of
the property and the University are aware of this commitment and agree to comply.
Sincerely,
C ~----·-" ~___::::::::::--
Casey Clement
Owner's Representative for 524 Mission Street, LLC
EXHIBIT A
HOUSEHOLD INCOME CERTIFICATtON
SAN RAFAEL BELOW MARKET RATE RENTAL MONITORING PROGRAM
Project Name-: Dominican Town homes Date: (p(I q/ L'l
APARTMENT NUMBER# } 'f NUMBER OF BEDROOMS_..3..,__ __
MONTHLY RENT $ } 1 L, 5l/
occuPANTJHousEHoLo NAME:Jvrt-0 {:..a..s+dl m
TOTAL GROSS ANNUAL INCOME OF EUGlBLE HOUSEHOLD: 51, qt.f (p
Total household income is the, gross, pre.tax income of afl occupants of the household
including any co-signors on \he lease. income includes all wages, sal~ries. governmental
as.sistance, as reported as gross income for federal income tax; o, verified by pay stubs, bank
account records. governmental assistance records or other relevant documentation.
Attached hereto are the tax returns. pay stubs or other evidence of the income of the persons
listed below:
Name of household
member
Relationship to
head of
household
Age Place of Empk>yment/Source
of income
and have read an answered fully, frankly and personally each of the above
iTI"O'f'ts-t~at,:~;iJPt~~~;.and do hereby swear they are true.
PROPERTY OWNER TO MAINTAIN THIS DOCUMENT FOR FIVE YEARS FOR INSPECTION
PURSUANT TO AGREEMENT WITH THE CiTY
EXt:IIBlT A.
HOUSEHOLD INCOME CERTIFICATION
SAN RAFAEL BELOW MARKET RATE RENTAL MONITORlNG PROGRAM
Project Name: Dominican Townhomes Date: la /ioft'K
APARTMENT NUMBER# i~ NUMBER OF BEDROOMS_~---
MONTHL Y RENT$ \ , ~51)
OCCUPANT/HOUSEHOLD NAME:_;~~w~\'\~s.c:. .......... i.:..:;w:~!.!i:t.U~--
TOTAL GROSS ANNUAL INCOME OF ELIGtBLE HOUSEHOLD ,Lt:Js $""lsb
Total household income is the, gross, pre-tax income of an occupants of the household
including any co-signors on the lease. Income. includes all wages, salalies, governmental
as.sistance. as reported as gross income for federal Income tax; or verified by pay stubs_ bank
account records, governmental assistance recor~s or other relevant doc;umentation.
Attached hereto are the tax returns, pay stubs or other evidence of the income of the persons
fisted below: ·
Name of household
member
Age Piaca of Employment/Source
of income
WVe unders1and and have read ;and answered fully, frankly and personalty each of the above
questions der nalty of perjury and do hereby swear they are true.
PROPERTY OWNER TO MAINTAIN THIS DOCUMENT FOR FlVE YEARS FOR INSPECTION
PURSUANT TO AGREEMENT W!TH THE ClTY
4/W2011:l
MARIN COUNTY
RENT AL AFFORDABILITY FOR 2018
2018 INCOME SCHEOULE (publis!lE\d by I-IUD Apnl 2018)
Median Very low low Low low
Income lncomo lneomo lncomo Income
Htl Stzo 100•/4 ~ 60.00% 65.00% !!!:.9~ --.I--&2,000 41.4!:I0 49 .740 53,1385 58,030
2 94,700 47,350 M .020 61 ,555 00.7.00
3 106,55() 53,275 63 ,930 09,260 74,585
" 118.400 59.200 71 .0•11) 76 ,0("-.0 82,880
5 127,BS0 <i3,025 76,710 83.103 80,405
(j 137,350 ('8 .07[, 62.'11{1 80,278 96.145
. MAXIMUM RENT SCMEDULE • Vf!.t(,LOW lllj_COM.f
Wry low lnc_o!)ie ro_rit · ®. ,, 50.,00o/. of n~d1~11
Mon(hfy flllll, li1cludir1g utilltlos. may not eX~'4;,J l/12 or 30% 01 50.00Y,
ad~•~led tor household sil.rJ .
Annual Monthly 30o/. Monthly
HH Size Unll11lzo Income Income oflncom11 Uhlltlos --1-· studio ~ 3,454 1,036 41
2 18, 47 .350 3,9'10 1,184' 49
3 2Br 53,275 ~~-1,332 GS
4 ~& 59.WO (.460 05 '.
M~XiM!,!M BEN! SC!:Jl1QULI:; • LOW INCOM~
Low Income ront ·@ _ 60.001/. of medliln
Moothly r<'11t, lnel11ding ullr'ilios, m;1y 001 ~>.CC&.I 1112 or 30°4 of 60.00¼
mf;u!.1P.d ro, housot101<1 ~1ze .
Annual Monthly 30% Monthly
HHSrze Unltiin• Income Income or Income Ulilllles --,--· studio 49,740 4,145 1,244 41
2 1Br 56 ,820 4,7-35 f,-421 49
3 2Br O:l.030 5.328 f.698 00
'.'<1 .:Jf;Jr 71,040 . f.i,f/20 f.t1t, ~5
MAXIMUM R€NT s,HEOULE. l.QW IN~QM!;;
Low lncomo ronl @ SS,00% ol rncdion
Monthly r(ml . including ulilitle:i, 111.ty nnl mr.,;r,ecJ 1112 ol 30¼ or ll5.001/,
adjusf P.d ror househc•lcl size.
Annual Monthly 30'Yo Monthly
tlH Size Unit size lncomo lticomo of Income UUOIIOS
1 studio ~ .\.490 1,347 41
2 1Br G1,555 5,130 1,rm 49
3 2Br 60.258 5,77 1 1,731 66
4 3Br 76.IJOO 6,-113 1,924 85
MAXIMUM RENT S~H(;D~l6~ · LQW INCOME
Monthly rnol. Including utiliti1Js, m,ly 1101 e.xcoed 1112 ol 30% of 70 .00%
~djJ$ICd (or hou~chold s11.o .
Annual Monthly 30% MonU1ly
HIISlle Unl1Stl41 Income tncomo 01In,ome UUlittU --,-sllldio 50.030 4 .636 1.4/J1 41
2 rn, 66,200 S.524 1,667 40
3 281 74.5S5 0215 1,865 06
'1 3£Jr 82,B~O G.007 2,()72 85
~1AX!MUM R§!1T SCHEOULE • LOW INCOME
Monthly mnl. lncludtng utilltles, may not &xcood 1112 or 30',11, °' 80.001/.
,·JdJ11stoct for IIOusehald siz,,
Annual Monthly 30% Monthly
MH Size Unit stzo Income Income of Income Utilities --,--studio 00.320 f,J,27 1,658 41
?. 1Br 75 .700 G,313 1,894 40
3 20, 00.240 7,103 1,131 (i6
3Br 94 ,720 7,RKl ,,368 85
MAXIMUM RENT .§_CHE0UU: • MOOEftt\TF. INCOME
Moderato Income ront @ 90.00¾ ol mudian
Monthly ronl, Including ulilillos. may not oxr,<,cd 1112 cl :JG¼ !>I 90 .00¼
adju&ted tor l\ousehOld s,z11 .
Annual Montlll:,' 30% Monlhly
HB S1zo Unit !illO Income lnG◊mll of 1ncon11, Ulililio --,--·-swe1'io 74,010. 6.;~IU 1,365 <11
2 1Br r,5,2:10 7 , 10~ 2,131 49
J 28r P.5,69!\ 7 .~01 2,397 136
38r 1\l6,5!iC a.aiso 2,664 85
Low
Income
8000%
66,320
75,700
85,2-40
94 ,721)
102,280
109,860
ot meolan 1ncomo
RENTI MO
Sfl95
$1,135
$1 .• ~~6
$1,3~5
or mcolao 111comc
RENT /MO
$1,20:J
$1,371
$1,632
$1;0~1
of ,r,j!dla11 incomo
RENT/ MO
$1,306
$1.,490
S1,666
$1,'39
or nie<lian w,como
RENT IMO
$1,410
$1,808
$1,799
'$1,981
01 m(•dlan 111com0
RENT/MO
$1;011
$1,846
$1,065
S2,283
of medi::ia iocom<:
RENT IMO
$1,824
$2,082
$1,331
$2,579
Moderate
Income
~.&«111
74.&10
85.230
05.805
106,560 .
116,065
123,61!\
=ft:\0 J6l~,
l\,{tvvt · a WO
'The, Income ~chellulo stww1 atJ01101i. IM~c-<I 011 111,, 201!) Mc,1 Mr,dian tnc.>me f(r. M.11in County publishe<.1 uy HlJ()
Uti~tic~ .ir~• b:twd M Ifie Sec1 10.i ~ l!Hc1wa1v:1:is lor ei,,c:ln.: hoa:i11g and cooklny t, g;:is w;:itor hr.ati ng published on 4/2018
Y.\R/Jnl and Income Sthedules\201ll alfordable rent schooukl vl.lov1.mod