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HomeMy WebLinkAboutBonanni Properties & D.S. Products - 2006-12-04Council/Agency Meeting Held: Deferred/Continued to: LA � ed ❑ Conditionally Approved ❑ Denied Council Meeting Date: December 4, 2006 &At��MA NON! 21 M : 3 ] ity lerk's Signature Department ID Number: CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PELOEUCULBGRA , City A d m * n i t r a t o r PREPARED BY: SCOTT HESS, Acting Director of Plan g SUBJECT: APPROVE AFFORDABLE HOUSING AGREEMENTS (BONANNI PROPERTIES AND D.S. PRODUCTS) Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Transmitted for your consideration is a request by Ed. Bonanni representing Bonanni Properties and D.S. Products to approve four affordable housing agreements as required as part of the City's approval of a 19 unit townhome project located at 19082 Gothard Street. The agreements will restrict four for -sale units to moderate income households for a period of 60 years. Staff recommends that the City Council review and approve the four affordable housing agreements. Funding Source: Not applicable. Recommended Action: Motion to: "Approve the Agreements Containing Covenants Affecting Real Property By and Between the City of Huntington Beach, and Bonanni Properties and D. S. Products, and authorize the Mayor and City Clerk to sign and execute (Attachment Nos. 1, 2, 3 and 4)." Alternative Action(s): The City Council may make the following alternative motion(s): "Continue the Agreements Containing Covenants Affecting Real Property By and Between the City of Huntington Beach, and Bonanni Properties and D. S. Products and direct staff accordingly." AUEST FOR CITY COUNCIL ACTION MEETING DATE: December 4, 2006 DEPARTMENT ID NUMBER: PL06-28 Analysis: A. PROJECT PROPOSAL: Applicant: Ed Bonanni, 5622 Research Dr., Huntington Beach, CA 92649 Location: 19082 Gothard Street (East side of Gothard Street, south of Garfield Avenue) The affordable housing agreements will restrict four on -site units, three of which will be two - bedroom units and one a three -bedroom unit, at moderate income levels for a period of 60 years. The Bonanni project was approved by the Planning Commission on July 26, 2005. The project consists of 19 townhome units on a 1.25 acre site within the Holly Seacliff Specific Plan (HSSP). The 19 townhome units are comprised of two and three -bedroom units; each has a two car attached garage. B. ANALYSIS: The project is located within the Holly Seacliff Specific Plan (HSSP) area, which requires that the equivalent of 15 percent of a project's units be affordable. The Specific Plan also requires that the units be located within the Specific Plan area. Three of the four units meet the 15 percent affordable requirement pursuant to the HSSP. The fourth affordable unit is a density bonus unit pursuant to Section 230.14 of the Huntington Beach Zoning and Subdivision Ordinance. The four affordable for -sale units would be restricted to moderate income households for a period of 60 years. The units will be affordable to households earning no more than 120 percent of the Orange County median income. For a three -person household this is the equivalent of $84,600 in annual gross income. The maximum sales price of these units is expected to be approximately $310,915 (two -bedroom units) to $350,271 (three -bedroom unit). Final sales prices will be determined by the City of Huntington Beach. The City Attorney's Office has prepared a separate agreement for each unit. Each agreement identifies the specific unit number and the number of bedrooms provided in said unit. The restricted units are as follows: Unit 1 restricts a 2-bedroom unit Unit 2 restricts a 2-bedroom unit Unit 11 restricts a 2-bedroom unit Unit 13 restricts a 3-bedroom unit The proposed agreements are consistent with Holly Seacliff Specific Plan requirements, the proposed city-wide affordable housing ordinance and standard affordable housing agreements prepared by the City Attorney's Office. The agreements include the Redevelopment Agency's signature because the agency will monitor the agreements. Staff recommends the City Council approve the agreements. PL06-28 (Bonnani Affordabe Agr.) -2- 11/20/2006 7:18:00 AM h_42UEST FOR CITY COUNCIL ACTION MEETING DATE: December 4, 2006 DEPARTMENT ID NUMBER: PL06-28 Environmental Status: The subject request is not subject to the California Environmental Quality Act pursuant to Section 15061 (b) (3). Attachment(s): 1. Affordable Housing Agreement Unit No. 1 2. Affordable Housing Agreement Unit No. 2 3. Affordable Housing Agreement Unit No. 11 4. Affordable Housina Aareement Unit No. 13 RCA Author: Medel/MBB PL06-28 (Bonnani Affordabe Agr.) -3- 11/20/2006 7:18:00 AM ATTACHMENT #1Ll , � y RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Huntington Beach Economic Development Department 2000 Main Street - 5th Floor Huntington Beach, CA 92648 Re: 7224 Rosemarie Drive Unit 1, The Villas @ Seacliff Recorded in Official Records, Orange County Torn Dale, Clerk -Recorder IIIIIII 1111 lllllllllllllllll111111111111111 IIIII11111111111111111111! NO FEE 200700056010104:28pm 09/12107 115 30 002 14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SPACE ABOVE THIS LINE FOR RECORDER'S USE This document is exempt from recording fees pursuant to Government Code Section 27383 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PR®PERV y (RESALE RESTRICTIONS) %l Re -recorded to provide full Legal Description for Tract No. 16846 "Exhibit A," Instrument No. 2006000863533, recorded on December 26, 2006 A (k,fv -7 / Recorded in Official Records, Orange County Tom Daly, Clerk -Recorder RECORDING REQUESTED BY ) !! FEE AND WHEN RECORDED MAIL TO: ) 2006000863533 01:13pm 12126106 213 174 D02 9 City of Huntington Beach ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 Main Street ) Huntington Beach, CA 92648 ) Attn: City Clerk ) (Space above for Recorder's use) This document is exempt from recording fees pursuant to Government Code Section 27383. DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (RESALE RESTRICTIONS) This Declaration Of Conditions, Covenants And Restrictions For Property (the "Declaration") is made as of D e c e m b e r 0 4 , 2006, by and between Bonanni Properties and D. S. Products (the "Covenantor"), and THE CITY OF HUNTINGTON BEACH, a California municipal corporation (the "City") and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). Collectively, the City and Agency will be referred to as the "Covenantee". RECITALS A. Covenantor will be owner of record of that certain real property located in the City of Huntington Beach, County of Orange, State of California legally described in the attached Exhibit "A". B. On L2_/ 0 4 / 2 0 0 6 „ the City Council approved Final Tract Map Number 16846. City imposed conditions of approval on the Project, requiring Covenantor to submit an Affordable Housing Agreement Plan (the "Declaration") for review and approval by the Planning Department. The City further required that the plan or declaration shall provide 15% of the total number of units or three (3) units to be affordable housing for households earning less than 120% of the Orange County Median for a period of thirty, years. In addition, Covenantor applied to the City for an increase in density under the State Density Bonus law (Density Bonus) which law requires municipalities to grant a twenty-five percent (25%) increase in the maximum allowable residential density when a developer agrees to construct at least twenty percent (20%) of the units in a condominium project for ownership and occupancy by County moderate income persons and families. The increase in density is for one (1) unit bringing the total affordable units to four (4) for Tract Map Number 16846. These four (4) units are to be built without any reduction in the development standards of the City of Huntington Beach. The execution and recordation of this Declaration is intended to fully satisfy the aforementioned conditions. 06-591/5944 p 1. Affordability Covenants. Covenantor agrees for itself and its successors and assigns, and every successor to Covenantor's interest in the affordable unit, or any part thereof, that the property listed in the attached Exhibit "A" and located at 19082 Gothard Street, Unit 1, shall be designated as affordable and shall be held subject to this Declaration for sixty years from the date of Notice of Completion of units built in Tract Number 16846 as follows: (a) Each affordable unit shall only be owned and occupied by Covenantor or by "Moderate Income Households", which shall mean persons or families earning less than one hundred percent (120%) or less of the Orange County median income, adjusted for household size appropriate for the property as determined by the Agency based on statistics published by the United States Department of Housing & Urban Development or established by the State of California, pursuant to Health and Safety Code Section 50093, or a successor statute. (b) The affordable unit shall only be sold at an "Affordable Housing Cost" to Moderate Income Households. Affordable Housing Cost shall mean the permitted gross sales price of the unit as set forth in the Affordable Housing Price/Income Guidelines or successor guidelines published, from time to time, by the City for such purpose. (c) The term of this agreement shall commence on the date this document is recorded with the Orange County Recorder's Office and continue for sixty years ("Affordability Period"). The covenant contained in this Section 1 shall run with the affordable unit and shall automatically terminate and be of no further force or effect upon the expiration of the Affordability Period. 2. Transfer of affordable unit. No transfer of the affordable unit shall occur until the City determines (a) that the proposed purchaser intends to occupy the affordable unit as the proposed purchaser's principal residence, (b) that the proposed purchaser is a Moderate Income Household, and (c) that the proposed transfer occurs at an Affordable Housing Cost. In the event that Covenantor (including successors and assigns) desires to sell the affordable unit, Covenantor shall send written notice thereof to the City at the following address: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attention: Director of Economic Development Within seven (7) days of receiving such notice, the City shall send Covenantor transfer application forms prepared by the City. Such forms shall contain a certification of the proposed purchaser's intent with respect to his/her/its residency of the affordable unit and his/her/its gross income, and an affidavit of the proposed purchaser disclosing and certifying the amount of the proposed purchase price. The City shall not be obligated to approve a transfer unless and until the proposed purchaser has submitted to the City such information and completed such forms. In the interest of expediting the close of escrow for such proposed transactions, the City shall reasonably approve or disapprove such submissions as soon as practicable after submission of such forms, and in no event later than fourteen (14) days after 06-591/5944 4 submission of a completed form. If the City fails to approve or disapprove a submission within such fourteen (14) day period, the City shall be deemed to have approved such transfer in accordance with the foregoing. Prior to conveyance of the affordable unit, each approved purchaser shall also submit to the City an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying the affordable unit may only sell the unit at an Affordable Housing Cost to a Moderate Income Household, that the maximum permitted sales price may be less than fair market value and that the affordable unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the City in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the City in connection with only the Covenantor's sale of the affordable unit, provided that the Covenantor shall not be obligated to incur any out- of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR UNDERSTAND THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE CITY AND THIS DECLARATION IS TO PROVIDE HOUSING TO MODERATE INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. *Vcnan'tfor's Initials Covenantor shall include in the escrow instructions and Purchase and Sale Agreements with buyers a provision which requires each buyer to record a covenant which will run with the land and bind all successors -in -interest or assignees that will ensure that all subsequent buyers and occupants qualify as Moderate Income households. Said covenant shall remain in full force and effect for the Affordability Period as set forth in Section 1. 4. Non -Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial 06-591/5944 status, handicap or disability, in the sale, transfer, use, occupancy, tenure, or enjoyment of the affordable unit, nor shall Covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, subtenants, or vendees in the affordable unit. Covenantor and its successors and assigns shall refrain from restricting the sale of the affordable unit on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clause: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferor himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, subtenants or vendee of the premises." (c) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assignees, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or 4 06-591/5944 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 5. Covenants, Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 6. Covenants For Benefit of City. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and such covenants shall run in favor of Covenantee for the entire period during which time such covenants shall be in force and effect, without regard to whether the Covenantee is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any such action at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. 7. Counterparts. This Agreement may be executed in a number of counterparts, each of which shall be an original, but all of which shall constitute one and the same document. 8. Applicable Law. (a) If any provision of this Agreement or portion thereof, or the application of any provision to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of this Agreement, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby and it shall not be deeded that any such invalid provision affects the consideration for this Agreement; and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. (b) This Agreement shall be construed in accordance with the laws of the State of California. [Signatures and Acknowledgements to Follow] 5 06-591/5944 IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized as of the date set forth above. COVENANTOR: COVENANTEE: BONANNI PROPERTIES and CITY OF HUNTINGTON BEACH, D.S. PRODUCTS, a California general a California municipal corporation partnership (MaZ B y: Title:_.-- /-y-) zl ,I r City Cler M. THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Deputy Execut ve irector AP VED AS TO FORM: City Attorney / Agencylanself Nl 0 (� t INITIATE AND APPROVED: anning Director REVIEWED AND APPROVED: ' Ci y Administrator 6 06-591/5944 STATE OF CALIFORNIA ss. COUNTY OF ORANGE On AJ ()O , 177 , 200_C�7, before me, the undersigned, a Notary Public in and for said State, personally appeared 1::-,) 13 o ha, jj Y1 i personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/sloe executed the same in his/lamauthorized capacity, and that by hisd-4*r signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. STATE OF CALIFORNIA ss. COUNTY OF ORANGE JEANICE ALEXIS MC FAIL Commission # 1619853 6'1MV Notary Pull - CaMomio Orange County Comm. Expires Nov 8, 2009 (SEAL) On /V o l) . 11 , 200 a, before me, the and rsi ed, a Notary Public in and for said State, personally appeared L. P� personally known to me (or proved to me on the basis of sat sfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by h1SA1er signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal ME ��A .9% nil I III - - 'ON, �lo� 'Sj nature of Notary Pu61i 7 06-591 /5944 E ALExis MC fALL C4mm18810n # 161 "53 Nil Public • CaH«Mo Orange County My Canm. Explr9s Nov 8, 2009 (SEAL) s+ State of California ss. County of Orange On December 18, 2006 , before me, --------- P. L. Esparza, Notary Public ------- Date Name and Title of Officer (e.g., ",lane Doe, Notary Public") personally appeared Gil Coerper and Joan L. Flynn Name(s) of Signer(s) Cornmksion #) WI 79 .e Notary PtAft - Caftmia Orange County My Comm. Expires Aug 4, 20 Place Notary Seal Above ❑ personally known to me ,W1 proved to me on the basis of satisfactory evidence to be the perso (s) whose nam (s) are subscribed to th within instrument a acknowledged to me that they executed the same in thei authorized ies and that by hisl hei capacit( signatur son the instrument the perso 91§ the entit pon behalf of which the pe acted, executed the instrument. WITN my and an official seal. Signature of otary Public Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Declaration of Conditions, Covenants and Restrictions for Property Document Date: December 4, 2006 i Number of Pages: Signer(&) Other Than Named Above: Capacity(i) Claimed by Signer Signer's Name: ❑ Individual • Top of thumb here ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact Thumbprints ❑ . rustee in ❑ Guardian or Conservator book ❑ Other: Signer Is Representing: 01999 National Notary Association - 9360 Do Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationahotary.org Prod. No. 5907 Reorder: Call Toll -free 1-800-876$627 EXHIBIT "A" Legal Description of the affordable units 19082 Gothard Street, Unit 1 Tr. No. 16846 2 bedroom unit Full legal to be inserted when map records for Tract No. 16846. 8 06-591/5944 iffl-TH as PARCEL 1: AN UNDIVIDED 1/19 INTEREST IN LOT 1 OF TRACT 16846, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, i STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 887 PAGES 4 THROUGH 6 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPT UNITS I THROUGH 19 INCLUSIVE, AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN RECORDED MARCH 30, 2007 AS INSTRUMENT NO.2007000205487, OFFICIAL RECORDS. EXCEPT AND RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, ENCROACHMENT, PEDESTRIAN WALKWAY, GENERAL RECREATION PURPOSES, MAINTENANCE, REPAIR, DRAINAGE, SUPPORT AND FOR OTHER PURPOSES ALL AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW, ALSO RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS OVER THE COMMON AREAS AND UNITS TO THE ASSOCIATION TO DISCHARGE ITS OBLIGATIONS AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW. PARCEL 2: UNIT NO. 1, AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN REFERRED TO ABOVE, THIS DEED IS MADE AND ACCEPTED UPON THE COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND OTHER MATTERS SET FORTH IN THAT CERTAIN DECLARATION OF RESTRICTIONS AND ANY AMENDMENTS OR MODIFICATIONS THEREIN RECORDED MARCH 30, 2007 AS INSTRUMENT NO. 2007000205488, OFFICIAL RECORDS, SAID COUNTY, ALL OF WHICH PROVISIONS ARE INCORPORATED HEREIN BY REFERENCE THERETO WITH THE SAME FORCE AND EFFECT AS THOUGH FULLY SET FORTH AT LENGTH AND GRANTEES, BY ACCEPTANCE OF THIS DEED, APPROVE, ADOPT, RATIFY AND AGREE TO BE BOUND BY THE PROVISIONS OF SAID DECLARATION AND AGREE TO PAY PROMPTLY, WHEN DUE, ANY AND ALL MAINTENANCE ASSESSMENTS AS REQUIRED UNDER SAID DECLARATION. SUBJECT TO: (1) GENERAL AND SPECIAL TAXES FOR THE CURRENT FISCAL YEAR. (2) COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, RIGHTS, RIGHTS OF WAY, EASEMENTS OF RECORD, IF ANY. Apr` VED AS T FORM Attomey By 'e ill Sr. Depu Oity A#torttey ACKNOWLEDGMENT State of Cali for is County of _ On _1�� _ before me, ere insert nAe and title o�officer) personally appeared— d P or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) ' re ubscribed to the within instrument and acknowledged to me that heishel h`eylexecuted the same infer heirl" rized capacity(ies), and that by-hje heir signature(s) on the instrument the person(s), or the entity upon behalf of which the person($) acted, executed the instrument. ----� WITNESS my hand and official seal. TUML. KING _ c # 1 r 0No" Ptt - , OmnaeCcu* Signature _— _`fi t- �-r — ---- MVC0M o. 0d13, (Seal) .Re--4oYd ACKNOWLEDGMENT State of Califo is County of On - -9 7 before me, — / Ilk, 0, L`c. __ _------, (here insert name and title of the officer) personally appeared kl��C4' Is personally known to me ( -safisfactcrry-evidence) to be the personP4 whose named (state subscribed to the within instrument and acknowledged to me that he sl:reffi executed the same i hi0hef4 Heir authorized capacity(, and that b his heF/tbe4r-signaturew on the instrument the persol , or the entity upon behalf of which the person) acted, executed the instrument. WITNESS my hand and official seal. Teavu t.. KING :'omm # 1440M ,iotary Pubk - Caltomic orange COS, Signature �v _ —_-- 1v v Comm Oct12.20 (Seal) ACKNOWLEDGMENT State of Califomi County of On - _ �D7before me, (here insert ri me and titl4 of the officer) personally t a�er a l2c( 'Tacuv /- . personally known to me satisfactm"videnee) to be the person(s) whose name(s) . are ubscribed to the within instrument and acknowledged to me that -he/she hey xecuted the same in his/her their authorized capacity(ies), and that by hie/ their 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. 71 W L al 011. J Commhdon #►1440M Notary Pwft - Cauwft. Orange Carly Signature ___-- _ MVCornm.80w0ct12, '7 3 y leo*!✓ytaA`e bc,`LL�1�t kk --'L2e L- (Seal) kl-&CId- IEWLL L. KING ConmVidon i 1440 U NOW PdAc - Caplomla MVComm. EVUss Oct 12, 2007 1ER1►LL L.10NG L IV -0#E 1440952 Nokvy Ptek - Canomb mane. County *:=ExPMeaOct 12.2007 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Huntington Beach Economic Development Department 2000 Main Street - 5th Floor Huntington Beach, CA 92648 Recorded in Official Records, Orange County Tom Daly, Clerk -Recorder Illilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll1111 NO FEE 2007000560102 04:28pm 09112107 115 30 D02 14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Re: 7234 Rosemarie Drive SPACE ABOVE THIS LINE FOR RECORDER'S USE ` f Unit 2, The Villas @ Seadiff This document is exempt from recording fees pursuant to 1 o Government Code Section 27383 '1 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PR®PERV (RESALE RESTRICTIONS) Re -recorded to provide full Legal Description for Tract No. 16846 "Exhibit A," Instrument No. 2006000863535, recorded on December 26, 2006 Recorded in Official Records, Orange County Tom Daly, Clerk -Recorder 11111111111111111111111111111111111111111111111111111111111111111111111 No FEE RECORDING REQUESTED BY ) 2006000863535 01:18pm 12/26/06 AND WHEN RECORDED MAIL TO: ) 213 174 D02 9 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City of Huntington Beach ) 2000 Main Street ) Huntington Beach, CA 92648 ) Attn: City Clerk ) (Space above for Recorder's use) This document is exempt from recording fees pursuant to Government Code Section 27383. DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (RESALE RESTRICTIONS) This Declaration Of Conditions, Covenants And Restrictions For Property (the "Declaration") is made as of D e c e m b e r 0 4 , 2006, by and between Bonanni Properties and D. S. Products (the "Covenantor"), and THE CITY OF HUNTINGTON BEACH, a California municipal corporation (the "City") and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). Collectively, the City and Agency will be referred to as the "Covenantee". RECITALS A. Covenantor will be owner of record of that certain real property located in the City of Huntington Beach, County of Orange, State of California legally described in the attached Exhibit "A". B. On : 12 / 0 4 / 2 0 0 6 , the City Council approved Final Tract Map Number 16846. City imposed conditions of approval on the Project, requiring Covenantor to submit an Affordable Housing Agreement Plan (the "Declaration") for review and approval by the Planning Department. The City further required that the plan or declaration shall provide 15% of the total number of units or three (3) units to be affordable housing for households earning less than 120% of the Orange County Median for a period of thirty years. In addition, Covenantor applied to the City for an increase in density under the State Density Bonus law (Density Bonus) which law requires municipalities to grant a twenty-five percent (25%) increase in the maximum allowable residential density when a developer agrees to construct at least twenty percent (20%) of the units in a condominium project for ownership and occupancy by County moderate income persons and families. The increase in density is for one (1) unit bringing the total affordable units to four (4) for Tract Map Number 16846. These four (4) units are to be built without any reduction in the development standards of the- City of Huntington Beach. The execution and recordation of this Declaration is intended to fully satisfy the aforementioned conditions. 06-591/5949 1T a 1. Affordability Covenants. Covenantor agrees for itself and its successors and assigns, and every successor to Covenantor's interest in the affordable unit, or any part thereof, that the property listed in the attached Exhibit "A" and located at 19082 Gothard Street, Unit 1, shall be designated as affordable and shall be held subject to this Declaration for sixty years from the date of Notice of Completion of units built in Tract Number 16846 as follows: (a) Each affordable unit shall only be owned and occupied by Covenantor or by "Moderate Income Households", which shall mean persons or families earning less than one hundred percent (120%) or less of the Orange County median income, adjusted for household size appropriate for the property as determined by the Agency based on statistics published by the United States Department of Housing & Urban Development or established by the State of California, pursuant to Health and Safety Code Section 50093, or a successor statute. (b) The affordable unit shall only be sold at an "Affordable Housing Cost" to Moderate Income Households. Affordable Housing Cost shall mean the permitted gross sales price of the unit as set forth in the Affordable Housing Price/Income Guidelines or successor guidelines published, from time to time, by the City for such purpose. (c) The term of this agreement shall commence on the date this document is recorded with the Orange County Recorder's Office and continue for sixty years ("Affordability Period"). The covenant contained in this Section 1 shall run with the affordable unit. and shall automatically terminate and be of no further force or effect upon the expiration of the Affordability Period. 2. Transfer of affordable unit. No transfer of the affordable unit shall occur until the City determines (a) that the proposed purchaser intends to occupy the affordable unit as the proposed purchaser's principal residence, (b) that the proposed purchaser is a Moderate Income Household, and (c) that the proposed transfer occurs at an Affordable Housing Cost. In the event that Covenantor (including successors and assigns) desires to sell the affordable unit, Covenantor shall send written notice thereof to the City at the following address: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attention: Director of Economic Development Within seven (7) days of receiving such notice, the City shall send Covenantor transfer application forms prepared by the City. Such forms shall contain a certification of the proposed purchaser's intent with respect to his/her/its residency of the affordable unit and his/her/its gross income, and an affidavit of the proposed purchaser disclosing and certifying the amount of the proposed purchase price. The City shall not be obligated to approve a transfer unless and until the proposed purchaser has submitted to the City such information and completed such forms. In the interest of expediting the close of escrow for such proposed transactions, the City shall reasonably approve or disapprove such submissions as soon as practicable after submission of such forms, and in no event later than fourteen (14) days after 2 06-591/5944 submission of a completed form. If the City fails to approve or disapprove a submission within such fourteen (14) day period, the City shall be deemed to have approved such transfer in accordance with the foregoing. Prior to conveyance of the affordable unit, each approved purchaser shall also submit to the City an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying the affordable unit may only sell the unit at an Affordable Housing Cost to a Moderate Income Household, that the maximum permitted sales price may be less than fair market value and that the affordable unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the City in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the City in connection with only the Covenantor's sale of the affordable unit, provided that the Covenantor shall not be obligated to incur any out- of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR UNDERSTAND THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE CITY AND THIS DECLARATION IS TO PROVIDE HOUSING TO MODERATE INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. �Menantor's Initials 3. Covenantor shall include in the escrow instructions and Purchase and Sale Agreements with buyers a provision which requires each buyer to record a covenant which will run with the land and bind all successors -in -interest or assignees that will ensure that all subsequent buyers and occupants qualify as Moderate Income households. Said covenant shall remain in full force and effect for the Affordability Period as set forth in Section 1. 4. Non -Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial 3 06-591/5944 status, handicap or disability, in the sale, transfer, use, occupancy, tenure, or enjoyment of the affordable unit, nor shall Covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, subtenants, or vendees in the affordable unit. Covenantor and its successors and assigns shall refrain from restricting the sale of the affordable unit on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clause: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferor himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, subtenants or vendee of the premises." (c) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assignees, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or 4 06-591/5949 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 5. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 6. Covenants For Benefit of City. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and such covenants shall run in favor of Covenantee for the entire period during which time such covenants shall be in force and effect, without regard to whether the Covenantee is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any such action at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. 7. Counterparts. This Agreement may be executed in a number of counterparts, each of which shall be an original, but all of which shall constitute one and the same document. 8. Applicable Law. (a) If any provision of this Agreement or portion thereof, or the application of any provision to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of this Agreement, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby and it shall not be deeded that any such invalid provision affects the consideration for this Agreement; and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. (b) This Agreement shall be construed in accordance with the laws of the State of California. [Signatures and Acknowledgements to Follow] 5 06-591/5949 IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized as of the date set forth above. COVENANTOR: BONANNI PROPERTIES and D.S. PRODUCTS, a California general partnership Title: �— Titled � f 6 06-591/5949 COVENANTEE: CITY OF HUNTINGTON BEACH, a California municipal corporation Mayor (City C61k THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Deputy Execu ve Director APPROVED AS TO FORM: City Atto ey / Agency C ns�Wjjov INITIA AND PPROVED: WannTinf Director REVIEWED AND APPROVED: Citj Administrator STATE OF CALIFORNIA ss. COUNTY OF ORANGE On 00, 1 `% , 200 6 , before me, the undersigned, a Notary Public in and for said State, personally appeared t5Soh Cs, h V 'personally known tome (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. ,S nature of Notary Pu is STATE OF CALIFORNIA ss. COUNTY OF ORANGE . E ALEMS MC FALL Common * 1619863 Wotan Pubac - Eftv$, da Ofarw MVC0Mm ExpNw2 (SEAL) On 1U00, 12 , 200k, before me, the undersi , ed, a Notary Public in and for said State, personally appeared L. r� ersonally known to me (or proved to me on the basis of satis ctory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that heFS4e executed the same in his/her authorized capacity, and that by his/her signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. � r 'S' natur of Notary Publi fF 7 06-591/5949 JEAALM NCE FALL _ Cotnmialon # 1619853 — F NWcVV PubNc - CaMomto Orange Counfy *Comm. ExpM Nov 8, (SEAL) State of California ss. County of Orange On December 18, 2006 , before me, --------- P. L. Esparza, Notary Public ------- . Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Gil Coerper and Joan L. Flynn Name(s) of Signer(s) P. L. ESPARZA Commission # 1599179 Notary Public - Cofffornio Oronge County QIMY Comm. Expires 4, 2009 Place Notary Seal Above ❑ personally known to me V1 proved to me on the basis of satisfactory evidence to be the perso (s whose nam (s) Qaresubscribed to th within instrument acknowledged to me that4mtft1they executed the same in thei authorized capacit (ies and that by " hei signatur, s on the instrument the perso (s or the entit pon behalf of which the pers (s) acted, executed the instrument. WITNES my and and official seal. Signature o otary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Declaration of Conditions. Covenants and Restrictions for Property Document Date: December 4, 2006 Number of Pages: Signer) Other Than Named Above: _ Capacity(iss) Claimed by Signer Signer's Name: ❑ Individual Top of thumb here ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact Thumbprints ❑ : rustee in ❑ Guardian or Conservator book ❑ Other: Signer Is Representing: 01999 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313.2402 - www.nationainotary.org Prod. No. 5907 Reorder. Call Toll -Free 14800-876-6627 EXHIBIT "A" Legal Description of the affordable units 19082 Gothard Street, Unit 2 Tr. No. 16846 2 bedroom unit Full legal to be inserted when map records for Tract No. 16846. 8 06-591/5949 EX1101T "A" PARCEL is AN UNDIVIDED 1119 INTEREST IN LOT 1 OF TRACT 16846, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 887 PAGES 4 THROUGH 6 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT UNITS 1 THROUGH 19 INCLUSIVE, AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN RECORDED MARCH 30, 2007 AS INSTRUMENT NO.2007000205487, OFFICIAL RECORDS. EXCEPT AND RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, ENCROACHMENT, PEDESTRIAN WALKWAY, GENERAL RECREATION PURPOSES, MAINTENANCE, REPAIR, DRAINAGE, SUPPORT AND FOR OTHER PURPOSES ALL AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW. ALSO RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS OVER THE COMMON AREAS AND UNITS TO THE ASSOCIATION TO DISCHARGE ITS OBLIGATIONS AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW. PARCEL 2: UNIT NO. 2 AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN REFERRED TO ABOVE. THIS DEED IS MADE AND ACCEPTED UPON THE COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND OTHER MATTERS SET FORTH IN THAT CERTAIN DECLARATION OF RESTRICTIONS AND ANY AMENDMENTS OR MODIFICATIONS THEREIN RECORDED MARCH 30, 2007 AS INSTRUMENT NO. 2007000205488, OFFICIAL RECORDS, SAID COUNTY, ALL OF WHICH PROVISIONS ARE INCORPORATED HEREIN BY REFERENCE THERETO WITH THE SAME FORCE AND EFFECT AS THOUGH FULLY SET FORTH AT LENGTH AND GRANTEES, BY ACCEPTANCE OF THIS DEED, APPROVE, ADOPT, RATIFY AND AGREE TO BE BOUND BY THE PROVISIONS OF SAID DECLARATION AND AGREE TO PAY PROMPTLY, WHEN DUE, ANY AND ALL MAINTENANCE ASSESSMENTS AS REQUIRED UNDER SAID DECLARATION. SUBJECT TO: (1) GENERAL AND SPECIAL TAXES FOR THE CURRENT FISCAL YEAR. (2) COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, RIGHTS, RIGHTS OF WAY, EASEMENTS OF RECORD, IF ANY. APP iZA'I'H, City Attorn� By Lennie Mulvihill I I �� Sr. Deputy City Attorney ACKNOWLEDGMENT State of Californpa County of On _ l % ^ before me, — l i : / eo2�� Al (here insert-ame and title of the officer) personally appeared✓r__— persorrally�cnown-to-me-(ar proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) " re subscribed to the within instrument and acknowledged to me that-Whey)executed the same in NsA:4er heir -authorized capacity(ies), and that by hisser/ eir ignature(s) on the instrument the person(s), or the entity upon behalf of which the person(5) acted, executed the instrument. WITNESS my hand and official seal. UM t.. KING Comma #t 1440M > Notary PuM - Captorrrla. OrongsCounty Signature _—_-- , 1 —_---- nrVC=M. octt2,2007 (Seal) ACKNOWLEDGMENT State of Calif is County of _ On- 9 "/l- % -before me, — f �//I(.. here inse name and Itle of the officer personally appeared --�3 personally known to me ( to be the personXwhose nam5ki�)j [safe subscribed to the within instrument and acknowledged to me tha he s41e/� executed the same i hls/herftheir authorized capacity(jes , and that bX:9S/he#thejr signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. ConnnVton # 14 ( Notary RMc - Ca11aNa Signature _ \ _---------- 'Comtn.I1VWCcfl2.= U . wt;LA (Seal) 1ERY111. KING Commission # 14409M2 .®; Notary Publk - Col lomla. Orange County My Comm. Explrea Oct 12, 2007 ACKNOWLEDGMENT State of Califor is County of Vu,-e�� On _ 9 _l L v7--- before me, — e-vc4 ( ( k : l� , o-14—l_�c_bLc-- here insert n me and tit a o(� f the officer) personally appeared6�z6iLvLr6-e`/ �oet-gr aA-6t 4, &Zl'2'-t___ personally known to me ( e ba Is of sa* sfa fy-evidencee) to be the person(s) whose name(s) ' are ubscribed to the within instrument and acknowledged to me that they executed the same ine /their authorized capacity(ies), and that by biw&Are4their 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. Signature iER'YLI. L. KING Commtadon # 14409G2 Notary RAft - Cam ga. Orange County MY Comm. Expkw Oct 12, 2007 (Seal) XWi L. KING Commias on # 1440952 Notary Ftd*c - Caft nta. `eOrange County yWCOMM Oct 12, 2Gt ATTACHMENT #3 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Huntington Beach Economic Development Department 2000 Main Street - 5th Floor Huntington Beach, CA 92648 Fe: 19083 Eric Court Unit 11, The Villas @ Seacliff Recorded in Official Records, Orange County Torn Daly, Clerk -Recorder IIIIIIIIIIIII!lIIIIlIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIllllllll NO FEE 2007000560103 04:28pm 09/12/07 115 30 D02 14 0.010 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SPACE ABOVE THIS LINE FOR RECORDER'S USE This document is exempt from recording fees pursuant to Government Code Section 27383 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PR®PERV (RESALE RESTRICTIONS) Re -recorded to provide full Legal Description for Tract No. 16846 "Exhibit A," Instrument No. 2006000863532, recorded on December 26, 2006 Recorded in Official Records, Orange County Tom Daly, Clerk -Recorder IIIIIIIIIIIIi9111B9111IIIIlBGIIII�lll�11�1191ilIIlBlllill�11091111�I10111f1 NO FEE RECORDING REQUESTED BY ) 2006000863532 01:18pm 12/26106 AND WHEN RECORDED MAIL TO: ) 213 174 D02 9 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City of Huntington Beach ) 2000 Main Street ) Huntington Beach, CA 92648 ) Attn: City Clerk ) (Space above for Recorder's use) This document is exempt from recording fees pursuant to Government Code Section 27383. DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (RESALE RESTRICTIONS) This Declaration Of Conditions, Covenants And Restrictions For Property (the "Declaration") is made as of D e c e m b e r 0 4 , 2006, by and between Bonanni Properties and D. S. Products (the "Covenantor"), and THE CITY OF HUNTINGTON BEACH, a California municipal corporation (the "City") and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). Collectively, the City and Agency will be referred to as the "Covenantee". RECITALS A. Covenantor will be owner of record of that certain real property located in the City of Huntington Beach, County of Orange, State of California legally described in the attached Exhibit "A". B. On 12 / 0 4 / 2 0 0 6 , the City Council approved Final Tract Map Number 16846. City imposed conditions of approval on the Project, requiring Covenantor to submit an Affordable Housing Agreement Plan (the "Declaration") for review and approval by the Planning Department. The City further required that the plan or declaration shall provide 15% of the total number of units or three (3) units to be affordable housing for households earning less than 120% of the Orange County Median for a period of thirty years. In addition, Covenantor applied to the City for an increase in density under the State Density Bonus law (Density Bonus) which law requires municipalities to grant a twenty-five percent (25%) increase in the maximum allowable residential density when a developer agrees to construct at least twenty percent (20%) of the units in a condominium project for ownership and occupancy by County moderate income persons and families. The increase in density is for one (1) unit bringing the total affordable units to four (4) for Tract Map Number 16846. These four (4) units are to be built without any reduction in the development standards of the City of Huntington Beach. The execution and recordation of this Declaration is intended to fully satisfy the aforementioned conditions. 06-591 /5949 l . Affordability Covenants. Covenantor agrees for itself and its successors and assigns, and every successor to Covenantor's interest in the affordable unit, or any part thereof, that the property listed in the attached Exhibit "A" and located at 19082 Gothard Street, Unit 11, shall be designated as affordable and shall be held subject to this Declaration for sixty years from the date of Notice of Completion of units built in Tract Number 16846 as follows: (a) Each affordable unit shall only be owned and occupied by Covenantor or by "Moderate Income Households", which shall mean persons or families earning less than one hundred percent (120%) or less of the Orange County median income, adjusted for household size appropriate for the property as determined by the Agency based on statistics published by the United States Department of Housing & Urban Development or established by the State of California, pursuant to Health and Safety Code Section 50093, or a successor statute. (b) The affordable unit shall only be sold at an "Affordable Housing Cost" to Moderate Income Households. Affordable Housing Cost shall mean the permitted gross sales price of the unit as set forth in the Affordable Housing Price/Income Guidelines or successor guidelines published, from time to time, by the City for such purpose. (c) The term of this agreement shall commence on the date this document is recorded with the Orange County Recorder's Office and continue for sixty years ("Affordability Period"). The covenant contained in this Section 1 shall run with the affordable unit and shall automatically terminate and be of no further force or effect upon the expiration of the Affordability Period. 2. Transfer of affordable unit. No transfer of the affordable unit shall occur until the City determines (a) that the proposed purchaser intends to occupy the affordable unit as the proposed purchaser's principal residence, (b) that the proposed purchaser is a Moderate Income Household, and (c) that the proposed transfer occurs at an Affordable Housing Cost. 1n the event that Covenantor (including successors and assigns) desires to sell the affordable unit, Covenantor shall send written notice thereof to the City at the following address: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attention: Director of Economic Development Within seven (7) days of receiving such notice, the City shall send Covenantor transfer application forms prepared by the City. Such forms shall contain a certification of the proposed purchaser's intent with respect to his/her/its residency of the affordable unit and his/her/its gross income, and an affidavit of the proposed purchaser disclosing and certifying the amount of the proposed purchase price. The City shall not be obligated to approve a transfer unless and until the proposed purchaser has submitted to the City such information and completed such forms. In the interest of expediting the close of escrow for such proposed transactions, the City shall reasonably approve or disapprove such submissions as soon as practicable after submission of such forms, and in no event later than fourteen (14) days after 2 06-591/5949 submission of a completed form. If the City fails to approve or disapprove a submission within such fourteen (14) day period, the City shall be deemed to have approved such transfer in accordance with the foregoing. Prior to conveyance of the affordable unit, each approved purchaser shall also submit to the City an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying the affordable unit may only sell the unit at an Affordable Housing Cost to a Moderate Income Household, that the maximum permitted sales price may be less than fair market value and that the affordable unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the City in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the City in connection with only the Covenantor's sale of the affordable unit, provided that the Covenantor shall not be obligated to incur any out- of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR UNDERSTAND THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE CITY AND THIS DECLARATION IS TO PROVIDE HOUSING TO MODERATE INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. &Coantor's Initials 3. Covenantor shall include in the escrow instructions and Purchase and Sale Agreements with buyers a provision which requires each buyer to record a covenant which will run with the land and bind all successors -in -interest or assignees that will ensure that all subsequent buyers and occupants qualify as Moderate Income households. Said covenant shall remain in full force and effect for the Affordability Period as set forth in Section 1. 4. Non -Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial 3 06-591/5949 status, handicap or disability, in the sale, transfer, use, occupancy, tenure, or enjoyment of the affordable unit, nor shall Covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, subtenants, or vendees in the affordable unit. Covenantor and its successors and assigns shall refrain from restricting the sale of the affordable unit on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clause: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferor himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, subtenants or vendee of the premises." (c) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assignees, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or 4 06-591/5949 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 5. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 6. Covenants For Benefit of City. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and such covenants shall run in favor of Covenantee for the entire period during which time such covenants shall be in force and effect, without regard to whether the Covenantee is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any such action at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. 7. Counterparts. This Agreement may be executed in a number of counterparts, each of which shall be an original, but all of which shall constitute one and the same document. 8. Applicable Law. (a) If any provision of this Agreement or portion thereof, or the application of any provision to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of this Agreement, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby and it shall not be deeded that any such invalid provision affects the consideration for this Agreement; and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. (b) This Agreement shall be construed in accordance with the laws of the State of California. [Signatures and Acknowledgements to Follow] 5 06-591/5949 IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized as of the date set forth above. COVENANTOR: BONANNI PROPERTIES and D.S. PRODUCTS, a California general partnership By Title: ✓��-✓' 6 06-591/5949 COVENANTEE: CITY OF HUNTINGTON BEACH, a California municiparporation� C THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Z� �'" ;:�-- 1,r� Deputy Execu ve irector APP VED AS TO FORM: �PAy City Altorniy / Agenc ounsel W ll(pjo� INITIATED AND PPROVED: Pla ning irector REVIEWED AND APPROVED: ity Administrator STATE OF CALIFORNIA ss. COUNTY OF ORANGE On (1 1:7 , 200�, before me, the undersigned, a Notary Public in and for said State, personally appeared r--Q 3rtc,,)0,y\j` personally known tome (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/sIe- executed the same in his/ker authorized capacity, and that by hisAker signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. •FAN E ALEXig ABC r Can * 161 "53 Ir 1-0 ►mow Pulft - CaEa,rc, my Ornge Caur`th' 20MjSi ature of Notar Pu ExplreallovB. (SEAL) STATE OF CALIFORNIA ss. COUNTY OF ORANGE On i/9 CU U . ( 2 , 200�before me, the unde ig d, a Notary Public in and for said State, personally appeared , Z 2 _- personally known to me (or proved to me on the basis of satisfa tort' evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/slw- executed the same in his/h" authorized capacity, and that by his/her signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. mature of�Nota6Pb]i 7 06-591/5949 JEANiC'E ALE= MC FALL Commission # 161988- -,� Notary Public - California Orange County My Comm. Expires Nov 8.2009 (SEAL) State of California ss. County of Orange On December 18, 2006 , before me, --------- P. L. Esparza, Notary Public ------- Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Gil Coerper and Joan L. Flynn Names) of Signer(s) C P.L. ESPF ZA ommlasion 599179 Notary PubNc - Calitornfo orarge County off►Comm. Explm Aug 4, 2009 w� Place Notary Seal Above ❑ personally known to me 4K proved to me on the basis of satisfactory evidence to be the perso (s) whose nam (s) are subscribed to th within instrument a acknowledged to me thattmtStMlthey executed the same in thei authorized capacit lies and that by kris! hei signatur son the instrument the perso (s or the entit pon behalf of which the pers (s) acted, executed the instrument. WITNESS m nd nd offi ' I seal. Signature of N01,99poublic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Declaration of Conditions. Covenants and Restrictions for Property Document Date: December 4, 2006 Signer(&) Other Than Named Above: Capacity(iss) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ . rustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Top of thumb here Thumbprints in book 01999 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313.2402 - www.nationahotary.org Prod. No. 5907 Reorder: Call Toll -Free 1-800.876-M7 EXHIBIT "A" Legal Description of the affordable units 19082 Gothard Street, Unit I I Tr. No. 16846 2 bedroom unit Full legal to be inserted when map records for Tract No. 16846. 8 06-591/5949 Order No. 140-860655-03 EXHIBIT "A" PARCEL 1: AN UNDIVIDED 1/19 INTEREST IN LOT I OF TRACT 16846, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 887 PAGES 4 THROUGH 6 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT UNITS 1 THROUGH 19 INCLUSIVE, AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN RECORDED MARCH 30, 2007 AS INSTRUMENT NO.2007000205487, OFFICIAL RECORDS. EXCEPT AND RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, ENCROACHMENT, PEDESTRIAN WALKWAY, GENERAL RECREATION PURPOSES, MAINTENANCE, REPAIR, DRAINAGE, SUPPORT AND FOR OTHER PURPOSES ALL AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW. ALSO RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS OVER THE COMMON AREAS AND UNITS TO THE ASSOCIATION TO DISCHARGE ITS OBLIGATIONS AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW. PARCEL 2: UNIT NO. I I, AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN REFERRED TO ABOVE. THIS DEED IS MADE AND ACCEPTED UPON THE COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND OTHER MATTERS SET FORTH IN THAT CERTAIN DECLARATION OF RESTRICTIONS AND ANY AMENDMENTS OR MODIFICATIONS THEREIN RECORDED MARCH 30, 2007 AS INSTRUMENT NO. 2007000205488, OFFICIAL RECORDS, SAID COUNTY, ALL OF WHICH PROVISIONS ARE INCORPORATED HEREIN BY REFERENCE THERETO WITH THE SAME FORCE AND EFFECT AS THOUGH FULLY SET FORTH AT LENGTH AND GRANTEES, BY ACCEPTANCE OF THIS DEED, APPROVE, ADOPT, RATIFY AND AGREE TO BE BOUND BY THE PROVISIONS OF SAID DECLARATION AND AGREE TO PAY PROMPTLY, WHEN DUE, ANY AND ALL MAINTENANCE ASSESSMENTS AS REQUIRED UNDER SAID DECLARATION. SUBJECT TO: (1) GENERAL AND SPECIAL TAXES FOR THE CURRENT FISCAL YEAR. (2) COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, RIGHTS, RIGHTS OF WAY, EASEMENTS OF RECORD, IF ANY. # LDttFORM City Aftorney 1 i '" State of Califo County of — TP'�'�--� On _— ` / r'�' _ before me, " �_f. jai, e -c . � �C here insert n me and title 8f the officer) personally appeared 'Ed t zz a-- Ake, � r S'6-e-a6& 11 or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) W re ubscribed to the within instrument and acknowledged to me that tie/ ey xecuted the same in Iter hei authorized capacity(ies), and that by tl"their ignature(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. �TEML. KM cownbow # t m NotaN Pubft - counN Signature — Mvconnn. Oott2.2a0' (Seal) 115�rJv' 3 e~it-i ce allow A� 1/ / ma c? L✓` -Yj- -"V ram= ct" State of Califomi County of On—, before me, (here insert 'dame and`tifle of the officer) personally Piz- personally known to me (arau�ire-eri-tfae-bas-iss-of-satisfactory-evidence) to be the person whose name is afe subscribed to the within instrument and acknowledged to me tha h_&sheA#ey executed the same i pii ' heOW,-i authorized capacity(ieg, and that by jslhefteir signature, 0 on the instrument the personX or the entity upon behalf of which the person acted, executed the instrument. �TETERVLL L. IONG WITNESS my hand and official seal. _ commtsson # t12] Notary PUo ccmbnft - Cowry Signature _ ��e�,,/ t�C----------- *COMM. svett . (Seal) H ACKNOWLEDGMENT State of Calif rnia County of J------- On _S�fti-�2,D-0 a? before me, _7e­�Q1W I— (here inser name an' itle of the officer) personally appeared �_ C 14e-rt personally known to me (is-of-satisfactery-evidence) to be the person(s) whose name(s) ' are ubscribed to the within instrument and acknowledged to me that MAsh they xecuted the same in hWw their authorized capacity(ies), and that by- Whe their 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. Signature (Seal) mi nrara. `� _ _ • � .� irk y ATTACHMENT rid RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Huntington Beach Economic Development Department 2000 Main Street - 5th Floor Huntington Beach, CA 92648 Re: 19075 Eric Court Unit 13, The Villas @ 5eacliff Recorded in Official Records, Orange County Torn Daly, Clerk -Recorder IIIIIIIIIIIIIIIII IIIIIIII!IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINO FEE 2007000560104 04:26pm 09/12/07 111,5 30 D02 14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SPACE ABOVE THIS LINE FOR RECORDER'S USE This document is exempt from recording fees pursuant to Government Code Section 27383 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PR®PERV (RESALE RESTRICTIONS) Re -recorded to provide full Legal Description for Tract No. 16846 "Exhibit A," Instrument No. 200600086353f recorded on December 26, 2006 /3 '11 Recorded in Official Records, Orange County Tom Daly, Clerk -Recorder II it lilll II �� II I Illli II III II li it I I LIl lilt I ill it I I llll No FEE 2006000863534 01:18pm 12/26/06 RECORDING REQUESTED BY ) 213 174 D02 9 AND WHEN RECORDED MAIL TO: ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 City of Huntington Beach ) 2000 Main Street ) Huntington Beach, CA 92648 ) Attn: City Clerk ) (Space above for Recorder's use) t This document is exempt from recording fees C r pursuant to Government Code Section 27383. DECLARATION OF CONDITIONS, COVENANTS�, AND RESTRICTIONS FOR PROPERTY` (RESALE RESTRICTIONS) This Declaration Of Conditions, Covenants And Restrictions For Property (the "Declaration") is made as of D e c e m b e r 0 4 , 2006, by and between Bonanni Properties and D. S. Products (the "Covenantor"), and THE CITY OF HUNTINGTON BEACH, a California municipal corporation (the "City") and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). Collectively, the City and Agency will be referred to as the "Covenantee". RECITALS A. Covenantor will be owner of record of that certain real property located in the City of Huntington Beach, County of Orange, State of California legally described in the attached Exhibit "A". B. On 12 / 0 4 / 2 0 0 6 , the City Council approved Final Tract Map Number 16846. City imposed conditions of approval on the Project, requiring Covenantor to submit an Affordable Housing Agreement Plan (the "Declaration") for review and approval by the Planning Department. The City further required that the plan or declaration shall provide 15% of the total number of units or three (3) units to be affordable housing for households earning less than 120% of the Orange County Median for a period of thirty years. In addition, Covenantor applied to the City for an increase in density under the State Density Bonus law (Density Bonus) which law requires municipalities to grant a twenty-five percent (25%) increase in the maximum allowable residential density when a developer agrees to construct at least twenty percent (20%) of the units in a condominium project for ownership and occupancy by County moderate income persons and families. The increase in density is for one (1) unit bringing the total affordable units to four (4) for Tract Map Number 16846. These four (4) units are to be built without any reduction in the development standards of the City of Huntington Beach. The execution and recordation of this Declaration is intended to fully satisfy the aforementioned conditions. 06-591 /5949 1. Affordability Covenants. Covenantor agrees for itself and its successors and assigns, and every successor to Covenantor's interest in the affordable unit, or any part thereof, that the property listed in the attached Exhibit "A" and located at 19082 Gothard Street, Unit 12, shall be designated as affordable and shall be held subject to this Declaration for sixty years from the date of Notice of Completion of units built in Tract Number 16846 as follows: (a) Each affordable unit shall only be owned and occupied by Covenantor or by "Moderate Income Households", which shall mean persons or families earning less than one hundred percent (120%) or less of the Orange County median income, adjusted for household size appropriate for the property as determined by the Agency based on statistics published by the United States Department of Housing & Urban Development or established by the State of California, pursuant to Health and Safety Code Section 50093, or a successor statute. (b) The affordable unit shall only be sold at an "Affordable Housing Cost" to Moderate Income Households. Affordable Housing Cost shall mean the permitted gross sales price of the unit as set forth in the Affordable Housing Price/Income Guidelines or successor guidelines published, from time to time, by the City for such purpose. (c) The term of this agreement shall commence on the date this document is recorded with the Orange County Recorder's Office and continue for sixty years ("Affordability Period"). The covenant contained in this Section 1 shall run with the affordable unit and shall automatically terminate and be of no further force or effect upon the expiration of the Affordability Period. 2. Transfer of affordable unit. No transfer of the affordable unit shall occur until the City determines (a) that the proposed purchaser intends to occupy the affordable unit as the proposed purchaser's principal residence, (b) that the proposed purchaser is a Moderate Income Household, and (c) that the proposed transfer occurs at an Affordable Housing Cost. In the event that Covenantor (including successors and assigns) desires to sell the affordable unit, Covenantor shall send written notice thereof to the City at the following address: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attention: Director of Economic Development Within seven (7) days of receiving such notice, the City shall send Covenantor transfer application forms prepared by the City. Such forms shall contain a certification of the proposed purchaser's intent with respect to his/her/its residency of the affordable unit and his/her/its gross income, and an affidavit of the proposed purchaser disclosing and certifying the amount of the proposed purchase price. The City shall not be obligated to approve a transfer unless and until the proposed purchaser has submitted to the City such information and completed such forms. In the interest of expediting the close of escrow for such proposed transactions, the City shall reasonably approve or disapprove such submissions as soon as practicable after submission of such forms, and in no event later than fourteen (14) days after 2 06-591/5949 submission of a completed form. If the City fails to approve or disapprove a submission within such fourteen (14) day period, the City shall be deemed to have approved such transfer in accordance with the foregoing. Prior to conveyance of the affordable unit, each approved purchaser shall also submit to the City an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying the affordable unit may only sell the unit at an Affordable Housing Cost to a Moderate Income Household, that the maximum permitted sales price may be less than fair market value and that the affordable unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the City in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the City in connection with only the Covenantor's sale of the affordable unit, provided that the Covenantor shall not be obligated to incur any out- of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR UNDERSTAND THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE CITY AND THIS DECLARATION IS TO PROVIDE HOUSING TO MODERATE INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. Ot ovenan'tor's Initials 3. Covenantor shall include in the escrow instructions and Purchase and Sale Agreements with buyers a provision which requires each buyer to record a covenant which will run with the land and bind all successors -in -interest or assignees that will ensure that all subsequent buyers and occupants qualify as Moderate Income households. Said covenant shall remain in full force and effect for the Affordability Period as set forth in Section 1. 4. Non -Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial 06-591 /5949 status, handicap or disability, in the sale, transfer, use, occupancy, tenure, or enjoyment of the affordable unit, nor shall Covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, subtenants, or vendees in the affordable unit. Covenantor and its successors and assigns shall refrain from restricting the sale of the affordable unit on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clause: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability, in the sale, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferor himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, subtenants or vendee of the premises." (c) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assignees, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or martial status, handicap or disability in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or 4 06-591/5949 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 5. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 6. Covenants For Benefit of City. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and such covenants shall run in favor of Covenantee for the entire period during which time such covenants shall be in force and effect, without regard to whether the Covenantee is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any such action at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. 7. Counterparts. This Agreement may be executed in a number of counterparts, each of which shall be an original, but all of which shall constitute one and the same document. 8. Applicable Law. (a) If any provision of this Agreement or portion thereof, or the application of any provision to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of this Agreement, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby and it shall not be deeded that any such invalid provision affects the consideration for this Agreement; and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. (b) This Agreement shall be construed in accordance with the laws of the State of California. [Signatures and Acknowledgements to Follow] 5 06-591/5949 IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized as of the date set forth above. COVENANTOR: BONANNI PROPERTIES and D.S. PRODUCTS, a California general partnership By: By: Title: �- 6 06-591/5949 COVENANTEE: CITY OF HUNTINGTON BEACH, THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By ja8� Deputy Executive Director APPROVED AS TO FORM: City At orney / Age y Counsel14m, INITIATED AND AP ;ROVED: P n mg ector REVIEWED AND APPROVED: City Ndministrator STATE OF CALIFORNIA ss. COUNTY OF ORANGE On 1)) ou II , 200 6�, before me, the undersigned, a Notary Public in and for said State, personally appeared .D �� ci nWersonally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/s4e executed the same in his/hoc authorized capacity, and that by his/l+er signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. 5 nature of Notary Pu 1' STATE OF CALIFORNIA ss. COUNTY OF ORANGE (SEAL) On X)O (). ] '� , 200 before me, the unders'gn d, a Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisf ctory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/executed the same in hisAier authorized capacity, and that by his/her signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. nature of Notary Publ' 7 06-591/5949 { -I State of California ss. County of Orange On December 18, 2006 , before me, --------- P. L. Esparza, Notary Public ------- Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Gil Coerper and Joan L. Flynn Name(s) of Signer(s) Place Notary Seal Above ❑ personally known to me V1 proved to me on the basis of satisfactory evidence to be the perso (s) whose nam (s) are subscribed to th within instrument a acknowledged to me that tre4ftfthey executed the same in thei authorized capacit (ies and that by hill hei signaturf9on the instrument the perso (s or the entit pon behalf of which the pets (s) acted, executed the instrument. WIT NES y hand and o ial seal. ignature of Nota ublic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Declaration of Conditions. Covenants and Restrictions for Property Document Date: December 4, 2006 Signer(p) Other Than Named Above: Capacity(Wa) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ : rustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Top of thumb Thumbprints in book 01999 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313.2402 - www.nationahotary.org Prod. No. 5907 Reorder. Call Toll -free 1-60"76.6627 EXHIBIT "A" Legal Description of the affordable units 19082 Gothard Street, Unit 13 Tr. No. 16846 3 bedroom unit Full legal to be inserted when map records for Tract No. 16846. 8 06-591/5949 PARCEL I: AN UNDIVIDED 1/19 INTEREST IN LOT 1 OF TRACT 16846, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 887 PAGES 4 THROUGH 6 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPT UNITS I THROUGH 19 INCLUSIVE, AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN RECORDED MARCH 30, 2007 AS INSTRUMENT NO.2007000205487, OFFICIAL RECORDS, EXCEPT AND RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, ENCROACHMENT, PEDESTRIAN WALKWAY, GENERAL RECREATION PURPOSES, MAINTENANCE, REPAIR, DRAINAGE, SUPPORT AND FOR OTHER PURPOSES ALL AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW. ALSO RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS OVER THE COMMON AREAS AND UNITS TO THE ASSOCIATION TO DISCHARGE ITS OBLIGATIONS AS DESCRIBED IN THE DECLARATION REFERRED TO BELOW. PARCEL 2: UNIT NO. 13, AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN REFERRED TO ABOVE. THIS DEED IS MADE AND ACCEPTED UPON THE COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND OTHER MATTERS SET FORTH IN THAT CERTAIN DECLARATION OF RESTRICTIONS AND ANY AMENDMENTS OR MODIFICATIONS THEREIN RECORDED MARCH 30, 2007 AS INSTRUMENT NO. 2007000205488, OFFICIAL RECORDS, SAID COUNTY, ALL OF WHICH PROVISIONS ARE INCORPORATED HEREIN BY REFERENCE THERETO WITH THE SAME FORCE AND EFFECT AS THOUGH FULLY SET FORTH AT LENGTH AND GRANTEES, BY ACCEPTANCE OF THIS DEED, APPROVE, ADOPT, RATIFY AND AGREE TO BE BOUND BY THE PROVISIONS OF SAID DECLARATION AND AGREE TO PAY PROMPTLY, WHEN DUE, ANY AND ALL MAINTENANCE ASSESSMENTS AS REQUIRED UNDER SAID DECLARATION. SUBJECT TO: (1) GENERAL AND SPECIAL TAXES FOR THE CURRENT FISCAL YEAR. (2) COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, RIGHTS, RIGHTS OF WAY, EASEMENTS OF RECORD, IF ANY. ACKNOWLEDGMENT State of Califorplta County of On _ V _ f 1 0 -7_ before me, -(here insert nanie "and title off-ttie officer) personally appeared_ 47d 60 e (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)-W re subscribed to the within instrument and acknowledged to me that hokhc they executed the same in hisA-rerlgeirauthorized capacity(ies), and that by his! their 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. TEM L. KING Comma # 1 Notary hAft - CaffoffW offlnge ` (fir --------- Cotm11 , Signature _ �i- —_ My Comm. Exp�es Opt 12M7 =--- (Seal) = 1907v oud 6-z :Ze/3, j4e _,.t TERnU K- N— G "�' Commission # 1440952 Notary pA*c . Captomb Own0e C s.r�-- MyComm>q0012.20 ACKNOWLEDGMENT State of Califo County of ^_ ,C.� On_ Q —_ beforeemme, --1 e- K Jof -(h'ere insert nime and title the officer) personally personally known to me ( f-satisfactoty-euideoce) to be the person whose name is/aFe subscribed to the within instrument and acknowledged to me tha(R sk►eAh-ey executed the same it sJhefMietl;authorized capacity0egf, and that b his/herAheir signaturelA on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. TERYLL L. KING Commission # 144M2 Notary Public - California, Orange County Signature ---16--------- My Comm. B0W Oct 12, 2W? (Seal) i3 , Jtc.[ ACKNOWLEDGMENT State of California ----- County of��� 0n _—i " /�_' — before me, (here insert and tit�e officer) personally appeared�Y/ (Cr_cr, personally known to me ( -basis-ef-ea4Waete y evidence) to be the person(s) whose names) -is ar(Jsubscribed to the within instrument and acknowledged to me that M/ /the executed the same in-lai6fkte�/their authorized capacity(ies), and that t 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. 1ERVLLL. KING Commb*)n #F 1440M • Notary Pualc • CpNOM110 omwcountv Signature —____-- ----__--- tMyComm.tx MOCt1Z,2W7 (6,' / 9v -7S &., (Seal) RCA*ROUTING SHEET INITIATING DEPARTMENT: Planning SUBJECT: Affordable Housing Agreements for Bonanni Properties and D.S. Products COUNCIL MEETING DATE: December 4, 2006 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft'if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorne) Attached Subleases, Third Party Agreements, etc. Approved as to form by City Attorney Not Applicable Certificates of Insurance (Approved by the City Attorne) Not Applicable ,Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (if applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: RCA Author: SH/MBB/RM J� Clip OF HUi®TINGi N BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK December 18, 2006 Tom Daly O. C. Clerk — Recorder 12 Civic Center Plaza, Rm. 101 Santa Ana, CA 92701-4057 Attn: Document Examiner Enclosed please find four Declaration of Conditions, Covenants and Restrictions for Property (Resale Restrictions) to be recorded and returned to the City of Huntington Beach, Office of the City Clerk, 2000 Main Street, Huntington Beach, CA 92648. Please return a conformed copy of the Declaration of Conditions, Covenants and Restrictions when recorded to this office in the enclosed self-addressed stamped envelope. Joan L. Flynn City Clerk Enclosures JLF:pe Bonanni Properties and D. S. Products — 19082 Gothard St., Units 1, 2, 11, 13 g : ffollowuplmisc/miscrecordeddoc-letter (Telephone: 714-536-5227 )