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HomeMy WebLinkAboutContracts & Agreements_25-1987_CCv0001.pdf T= Recording requested by011 and when recorded return to. � � City Clerk' s Office City of RedlandsOFFICI r P. O. Bax 2094 x v � A= Redlands, CA 92373 , v- La � .V DENSITY BONUS AGREEMENT CUD., CALIF. This Agreement is entered into this 3rd day of August , 1987 , by and between DALJIT SARKARIA, ELAINE SARKARIA and JOHN A. SARKARIA (hereinafter referred to as "Developer" ) , and the CITY OF REDLANDS, a municipal corporation (hereinafter referred to as "City" ) . RECITALS 1. Developer is the owner of all that certain real property located in the City of Redlands, County of San Bernardino, described in Exhibit "A" attached hereto and incorporated herein by reference (hereinafter referred to as the "Project" ) . 2 . Developer has applied for a Conditional Use Permit for an 88 unit project on 4 . 6 acres of land at the southwest corner of New York Street and State Street in the R-2 Zone and a Density Bonus of sixteen ( 16 ) units . 3. This Agreement shall be mutually binding, is made in good faith, and reflects the Planning Commission' s and City Council ' s intent to provide quality, affordable housing for the people of the City. 92877 TERMS 4. The term of this Agreement shall be for ten ( 10 ) years , beginning on the date of its execution. 5. Pursuant to the requirements of California Government Code Sections 65915-65918 , the City agrees to grant the following incentives to the Developer in order to provide affordable housing to the people of the City within the Project: a. A Density Bonus of sixteen ( 16) units over the otherwise permitted density in the R-2 Zone subject to all recommendations of the Housing Commission and Planning Division. 6. Developer covenants and agrees to provide, construct and make available for rent for the term of this Agreement twenty-percent ( 200 ) of the units constructed ( 18 units) within the Project to only Lower Income Tenants and at maximum rental rates, as set forth herein. Said units shall consist of specified numbers of 1-bedroom and 2-bedroom units, as described in Exhibit "B" , attached hereto and incorporated herein by this reference. These units are hereinafter called "Affordable Units . " 7 . "Lower Income Tenants" are renters whose income, at the time of occupancy in the Project, does not exceed the applicable qualifying income levels for "lower income families" as established and amended from time to time pursuant to Section 8 of -2- 87-2928T the United States Housing Act of 1937 (or if such program is terminated, under such program as in effect immediately before such termination) adjusted for family size , as calculated by the State of California in California Administrative Code, Title 25, Section 6932 for the County of San Bernardino, except that the percentage of median gross income which qualifies as lower income shall not exceed eighty-percent ( 800 ) of the median for San Bernardino County, adjusted for actual family size . 8. The "Maximum Rental Rate" for an Affordable Unit shall not exceed thirty-percent ( 300 ) of one-twelfth ( 1/12 ) of eighty-percent ( 80% ) of the median gross income for San Bernardino County, Lower Income Tenant' s annual income, adjusted for actual family size. The previous sentence notwithstanding, with respect to tenants who are recipients of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937 , or its successor, "Affordable Rent" shall mean the market rent established pursuant to such program, but the contributions to rent by such tenants shall not be in excess of thirty-percent ( 30% ) of one-twelfth ( 1/12 ) of eighty- percent ( 80%) of the median income for San Bernardino County, adjusted for actual family size. 9 . Developer shall rent one bedroom units to households with one or two persons. Developer shall rent two bedroom units to households with one to four persons. -3- 7-2928"n 10 . Developer agrees that each Affordable Unit in the Project will contain separate and complete facilities for living, sleeping, eating, cooking, and sanitation. 11. Developer agrees that none of the dwelling units in the Project shall at any time be utilized on a transient basis ; that none of the dwelling units shall ever be leased or rented for a period of less that thirty ( 30 ) days ; and that neither the Project nor any portion thereof shall ever be used as a hotel, motel, dormitory, rooming-house, hospital , sanitorium, rest home or trailer park or court. 12 . Developer agrees that the Affordable Units shall be leased and rented to members of the general public without regard to age, gender, race, religion, creed or national origin, and that Developer shall not give preference in renting dwelling units in the Project to any particular class or group of persons, other than to persons of lower income as provided herein. 13. Developer hereby promises and covenants that it has no present plan or intent, nor does there presently exist any contractual arrangement, formal or informal , to convert the Project to any use other than residential rental property. 14 . Developer agrees that the Affordable Units will be intermingled with all other dwelling units in the Project and will be of a quality, and offer a range of sizes and numbers of -4- ""7-29287/ bedrooms comparable to other units in the Project. There shall be at least one Affordable Unit per building. Lower Income Tenants will have equal access and enjoyment to all common facilities of the Project. Developer will accept as tenants , on the same basis as all other prospective tenants, lower income persons who are holders of certificates for federal housing assistance payments for existing housing assistance payments pursuant to Section 8 of the United States Housing Act of 1937 or a successor federal program; and, in connection therewith, Developer will not apply tenant selection criteria to such Section 8 certificate holders which are more burdensome than the criteria applied to other prospective tenants . Developer agrees that if, at any time during the ten ( 10 ) years following completion of the project, Developer is unable to rent or lease the Affordable Units to Lower Income Tenants , Developer shall hold available and vacant the unrented units and offer the unrented units so held for occupancy by Lower Income Tenants . 15. Developer agrees to obtain and maintain on file from each Lower Income Tenant residing in the Project a copy of such Lower Income Tenant' s federal income tax return for the taxable year immediately preceding such Lower Income Tenant' s initial occupancy and annually thereafter ; or , in the event that a Lower Income Tenant certifies that he or she did not file or did -5- 87-2928ri not retain a copy of such tax return, to obtain and maintain on file alternate independent evidence of such Lower Income Tenant' s income for such years , such as wage statements or employer records . 16. Developer agrees to maintain at all times complete and accurate records required hereunder which pertain to the incomes of Lower Income Tenants which apply to occupy, occupy or occupied Affordable Units in the Project and the rentals of Affordable Units in the Project, and to permit any duly authorized representative of the City to inspect the books and records of the Developer pertaining to the incomes of Lower Income Tenants residing in the Project upon five ( 5 ) business days ' prior written notice. Developer agrees to maintain such information on file covering the immediately preceding three ( 3 ) years . 17 . Developer agrees to prepare and submit to the City on January 1 of each year, and within ten ( 10 ) days from the date of occupancy of fifty percent ( 50% ) of the units within the Project, a certificate executed by the Developer stating the number of Affordable Units : (a) Occupied by Lower Income Tenants , including a description of their family size and rental rates ; (b) Held vacant and available for occupancy by Lower Income Tenants including a description of number of bedrooms and rental rates; -6- 87-2928 77 (c) Occupied by households other than Lower Income Tenants and a description of the circumstances relating to such occupancy; (d) Made available by number of bedrooms and rental rate; (e) Rented under a housing subsidy program (describing the source and extent of such subsidies ) ; (f) Stating whether any default under this Density Bonus Agreement has occurred; and (g) copies of the information held on file pursuant to Paragraph 15. 18. No Lower Income Tenant shall be denied continued occupancy because after admission the Lower Income Tenant' s family income exceeds the applicable qualifying income level set forth in Paragraph 7 , above. However , the Developer shall maintain the percentage requirements of this Agreement by providing the next available unit to a Lower Income Tenant or by taking other actions to satisfy such requirements . 19. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of said parties ' successors and assigns. Developer will not sell or otherwise transfer ownership of the Project during the term of this Agreement without first notifying the City -7- in writing of the name and address of the proposed successor in interest. Unless the proposed successor has agreed in writing to all terms contained in this Agreement, the Developer shall be found in violation of the Agreement on the date of transfer of ownership and subject to the penalty provisions of Section 21. 20. Upon violation of any of the provisions of this Agreement by Developer, which violation is deemed in the discretion of the City to be a material violation, the City shall give written notice thereof to the Developer by registered or certified mail at the address stated in this Agreement, or such other address as may be subsequently designated in writing by the Developer. If such violation is not corrected to the satisfaction of the City within ten ( 10 ) days after the time as the City determines is necessary to correct the violation, the City shall declare a default under this Agreement. In the event of such a default, the City may, in its discretion: a. demand payment by the Developer for all density benefits conferred by this Agreement. The amount owed the City by Developer pursuant to this Section shall be set by a qualified real estate appraiser appointed with the consent of the Developer and the City. If the Developer and the City cannot agree upon a single such appraiser each shall appoint its own qualified real estate appraiser, and the two appointees shall -8- 87-292,S"-n appoint a third. The decision of the appraiser or appraisal panel shall be final; or, b. levy a penalty of five hundred dollars ( $500 . 00) per month for each and every month or a portion thereof that the City, in its discretion, deems the Developer to be in violation of this Agreement. 21. If any action at law or in equity including any action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorney' s fees and costs in addition to any other relief to which it may be entitled. 22. The Developer hereby subjects the Project (including the property upon which the Project has been constructed) to the covenants , reservations and restrictions set forth in this Agreement. The City and the Developer hereby declare their express intent that the covenants , reservations and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Developer' s successors in title to the Project; provided, however , that on the termination of this Agreement said covenants, reservations and restrictions shall expire without the necessity of any further documentation. Each and every contract, deed or other instrument hereafter executed covering or conveying the -9- 87-292-877 Project or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants , reservations and restrictions , regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. The City and the Developer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Developer' s legal interest in the Project is rendered less valuable thereby. The City and the Developer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by providing for the enjoyment and use of the Project by Lower Income Tenants, the intended beneficiaries of such covenants, reservations and restrictions . 23. Developer shall indemnify, defend and hold harmless the City, its officers , agents and employees from any and all claims, losses or legal actions arising from any and all of the actions of the Developer , its employees , agents or sub-contractors pursuant to this Agreement. -10- 77,F 24. A notarized signed copy of this Agreement shall be recorded with the County Recorder prior to issuance of final construction approval for the Project. DALJIT SARKAR A f CITY OF REDLANDS / f f F y s By: 1 B 'r Mayor Address P.O. Box 5766 Orange, CA 92613-5766 ATTEST: ELAINE SARKARIA City Cl rk R �` 30 Cajo.�i Stre , 0. Box 280 , By: pM i . , r Redlands, CA 92373 Address: P.O. Box 5766 orange, CA 92613-5766 STATE OF CALIFORNIA �ss, COUNTY OF t before me,the undersitrsed,a Notary Pudic in and for said OnCAJ ountand' tate,. ally t u Iproved to me on the basis of satisfactory evidence to be tll person _. whose name-� subscribed to the within instrument and acknovAedged that executed the same. m MM a v 'f 0 C€ L SEAL` t> e WITNESS my h ndandof�ficiajsml. Signature a (This area for omclai nolarlal seaf 8 -29 7 ,28T EXHIBIT "A" LEGAL DESCRIPTION Parcel 1 of Parcel Map No. 9485 in the City of Redlands, County of San Bernardino, State of California, as per map recorded in Book 107 of Maps, Page 67 in the Recorder's Office of said County. S -2928ri 7 EXHIBIT "B" SCHEDULE OF "AFFORDABLE UNITS" 1011 State Street 2 Two Bedroom Units 217 New York Street 1 One Bedroom Unit 2 Two Bedroom Units 219 New York Street 1 One Bedroom Unit 2 Two Bedroom Units 223 New York Street 1 One Bedroom Unit 2 Two Bedroom Units 227 New York Street 1 one Bedroom Unit 2 Two Bedroom Units 241 New York Street 1 one Bedroom Unit 3 Two Bedroom Units TOTAL 5 One Bedroom Units 13 Two Bedroom Units