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HomeMy WebLinkAboutTUSCANY DEVELOPMENT Inc. - KELTER HOMES - 2006-10-02 �I CITY OF HUNTINGTON BEACH Inter-Department Communication TO: JOAN FLYNN, City Clerk FROM: JENNIFER MCGRATH, City Attorney DATE: August 17, 2007 SUBJECT: Tract Map No. 16740 (Kelter) On October 2, 2006, and in connection with the approval of Final Tract Map No. 16740,the City Council approved the attached Declarations of Conditions, Covenants and Restrictions for Property (Resale Restrictions). Since execution and recordation of the attached document, it has been determined that the document executed by the City incorrectly references the property subject to the Resale Restrictions. We have therefore prepared a corrected Resale Restriction and ask that you have this document executed at this time. A - �wJENNIFER MCGRATH,ell 9/p? City Attorney /k Attachment as above 07-1180/13465 Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder RECORDING REQUESTED BY IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII NO FEE AND WHEN RECORDED MAIL TO: 2007000520276 04:07pm 08/21/07 115 30 D02 11 City of Huntington Beach 0.010 0.00 0.00 0.00 0.00 o.00 o.00 o.00 2000 Main Street )� Huntington Beach, CA 92648 ) Attn: City Clerk ) t 191,.3 /y (Space above for Recorder's use) 1 � 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 August 7, , , 2007, by and between Tuscany Development Inc. (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 October 02, 2006 the City Council approved Final Tract Map Number 16740. 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 5 units to be affordable housing for households earning less than 120% of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW,THEREFORE, the parties hereto agree and covenant as follows: 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 depicted in the attached Exhibit `B" and located at 19153 Alexa Lane, which consists of 1 unit, shall be designated as affordable and shall be held subject to this Declaration 1 07-1208/13437 for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 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 2 07-1208/13437 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. Covenantor'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 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 3 07-1208/13437 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 07-1208/13437 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 Acknowledgments to Follow] 5 07-1208/13437 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: TUSCANY DEVELOEMUNT, INC., a CITY OF HUNTINGTON BEACH, California core ion, . ; a California municipal corporatio By: Title: or By: ity erk q'ritle: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Deputy Executiv rector APPROVED AS TO FORM: &� ' er /? d-7 .0..City Attorney/Agency Counsel !INZITITEDIND APPROVED: Planning Director REVIE ND PPROVED: ,City A ,istrator 6 07-1208/13437 STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On Jua.� 007, before me, the undersigned, a Notary Public in and for said State, person lly appeared personally known to me{er-prsvedte- to be the person whose name is subscribed to the within instrument and acknowledged to me that he/sloe executed the same in his/4ef 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. KATHLEEN NELSON Commission#t 1508478 Notary Public-CaKwW Orange county @1MVCwn.ExpkwAug 17,2008 Signature hf Notary Public (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE . ) On J17 , 2007 before me, t e undersigned, a Notary Public in and for said State, personal Ty appeared personally known to me ( ) to be the person whose name is subscribed to the within instrument and acknowledged to me that hr/she executed the same in 47is/her authorized capacity, and that by hi-9/her signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. KATHLEEN NELSON WITNE S my hand and official seal. Commtsalon#t 1508478 ir Notary R*Mc-CaOfomia Orange County 61mycornm.ExpkesAug 17,2008 Signature o Notary Public (SEAL) 7 07-1208/13437 EXBIBIT 'W" Legal Description of Property Depicted on Tract Map"No. 16740 Lot 1 of Tract No 16740. in the City of Huntinglon Beach, as per map tiled in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feel, without the right of surface entry, as reserved in instruments of record. I i i Exhibit "B" PARCEL ONE: AN UNDIVIDED ONE/TWENTY-EIGHTH (1/28) INTEREST AS A TENANT IN COMMON IN THE COMMON AREA OF LOT I OF TRACT NO. 16740,AS DEFINED IN THE AMENDED CONDOMINIUM PLAN FOR THE PROJECT RECORDED AUGUST 9,2007 AS INSTRUMENT NO.2007000497711 OF OFFICIAL RECORDS OF SAID COUNTY,CALIFORNIA("CONDOMINIUM PLAN") EXCEPTING THEREFROM ALL OIL,GAS.MINERALS AND HYDROCARBONS,BELOW A DEPTH OF 500 FEET,WITHOUT THE RIGHT OF SURFACE ENTRY,AS RESERVED IN INSTRUMENTS OF RECORD. EXCEPTING AND RESERVING THEREFROM, NONEXCLUSIVE EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, I 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. I PARCEL TWO: UNIT NO. 10, CONSISTING OF CERTAIN AIR SPACE AND ELEMENTS AS DESCRIBED IN THE CONDOMINIUM PLAN MENTIONED ABOVE. PARCEL THREE: AN EXCLUSIVE USE COMMON AREA,APPURTENANT TO PARCELS ONE AND TWO ABOVE,FOR ALL USES AND PURPOSES I OVER AND ACROSS THAT PORTION OF LOT I OF TRACT NO. 16740 DESIGNATED ON THE ABOVE-REFERENCED j CONDOMINIUM PLAN. i ALL PARCELS ABOVE ARE SUBJECT TO THE FOLLOWING: THIS CONVEYANCE IS MADE AND ACCEPTED AND SAID PROPERTY IS HEREBY GRANTED SUBJECT TO THAT CERTAIN DECLARATION OF COVENANTS, CONDITIONS.. RESTRICTIONS AND EASEMENTS FOR TUSCANY ("DECLARATION"), RECORDED MARCH 26,2007 AS INSTRUMENT NO. 2007000190608 OFFICIAL RECORDS OF ORANGE COUNTY,CALIFORNIA, AND ANY AMENDMENgS THERETO,ALL OF WHICH THIS REFERENCE ARE HEREBY EXPRESSLY INCORPORATED IN AND MADE A PART OF HEREOF AS THOUGH FULLY SET FORTH HEREIN. SAID DECLARATION INCLUDES NONEXCLUSIVE EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, ENCROACHMENT, PEDESTRIAN WALKWAY, GENERAL RECREATION i PURPOSES,MAINTENANCE,REPAIR,DRAINAGE,SUPPORT AND FOR OTHER PURPOSES. ALL PARCELS ARE SUBJECT TO ANY AND ALL MATTERS OF RECORD, INCLUDING TAXES,ASSESSMENTS,EASEMENTS, i OIL AND MINERAL RESERVATIONS AND LEASES, IF ANY, RIGHTS OF WAY, COVENANTS, CONDITIONS AND RESTRICTIONS. I ALL SUBJECT TO THE DOCUMENT ENTITLED NOTICE OF BUILDER'S ELECTION TO ALTERNATIVE PRE-LITIGATION PROCEDURES FOR CONSTRUCTION CLAIMS PURSUANT TO CALIFORNIA CIVIL CODE SECTION 895, ET SEQ. EFFECT AS THOUGH FULLY SET FORTH HEREIN AT LENGTH, AND GRANTEES, BY ACCEPTANCE OF THIS DEED, APPROVE, ADOPT, RATIFY AND AGREE TO BE BOUND BY SAID NOTICE MARCH 26, 2007 AS INSTRUMENT NO. 2007000190609, OFFICIAL RECORDS. i GRANTEE,BY ACCEPTANCE AND RECORDATION OF THIS DEED,EXPRESSLY ACCEPTS,COVENANTS AND AGREES TO BE BOUND BY AND ASSUME PERFORMANCE OF ALL OF THE APPLICABLE PROVISIONS AND REQUIREMENTS SET FORTH IN THE DECLARATION. I i j ACKNOWLEDGMENT State of Califog pa County of R. On $177 ,07 — before me, — �'4 t -�c' /V� /�iG�c. '-- —, ere insert ridme and titig of the officer) personally appeared_ p (or proved to me on the basis of satisfactory evidence) to be the personXwhose named/are subscribed to the within instrument and acknowledged to me tha&shemiey executed the same in&herttheir authorized capacityW, and that byl 'her/therr signatureM on the instrument the person(, or the entity upon behalf of which the person(?facted, executed the instrument. WITNESS my hand and official seal. IBM L WI Caffo*don i 141M Nokiry PAft-CaUnft, Signature_ u 1— Nh►camr.e wodit, L/ (Seal) ACKNOWLEDGMENT State of Califo is County of On_ 9k;Q/40 7 before me, —mil� ALAgYq P"&'c —, (here insert�d tittis of the officer) personally appeared— eA.) _ or proved to me on the basis of satisfactory evidence) to be the person whose name)@are subscribed to the within instrument and acknowledged to me thalEysheft#ejr executed the same in �i he~authorized capacity0egf, and that bylphe eir signatureo on the instrument the person(K, or the entity upon behalf of which the person(p) acted, executed the instrument. WITNESS my hand and official seal. IRM L KING ComndWon#F 1440M Notary Fdit-C 0=1a 0=W Canty► Signature_ _ _ MVC0=LE0W0d12,2W7 (Seal) CD,�y 7Z) B& Recorded in Official Records,Orange County Tom Only,Clerk-Recorder 1 11 11 1 i �u 1�111 NO FEE 2007MO278372 Oi A3pm 04130107 203 195 002 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) City of Huntington Beach ) 'i F 0 P`L 4 1 2000 Main Street ) Huntington Beach,CA 92648 ) Attn: City Clerk ) (Space above for Recorder's use) This document is exempt from recording fees C�.PL4-�b 16 y I L.EX4-LAIJ16e-41W.1 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 October 02 ,2006,by and between Tuscany Development Inc. (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"Agencn. 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 October 02. 2006, the City Council (City Council or City Engineer) approved Final Tr. MaD(Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 1200/6 of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW,THEREFORE,the parties hereto agree and covenant as follows: 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 pail thereof, that the property depicted in the attached Exhibit "B" and located at 7264 Lisamarie Court, which consists of I unit, shall be designated as affordable and shall be held subject to this I G.'.AGREEMT W61AFFORDABLE HOU51NG%7264 LissmancCoun.doc r + Declaration for sixty years from the date of Notice of Completion of units built in'Tract Number 16740 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 sennd 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 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 2 G'.AGREEMT,2CW,AFFORDABLE HOUSIAG.7744 UsemarieCoun doc L f 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 ffnd 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. Covenantor'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 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 _3 C AGREEMT120WAFFORDABLE HOUSITG73E4 LuamaneCourt doc 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 C`AGREEMT2006AFFORDABLE HOUSTNC'.7269 LisamaneCoumdoc 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 Stale of California. (Signatures and Acknowledgements to Follow) _5 CG ACYR NIT--O"C.AFFORAABLf HOUSNG'7264 L,>ematieccuri coc r TN 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: -- TUSCANY DEVELOPMENT,INC., a CITY OF HUNTINGTON BEACH, California c or a California municipal oration By: it e: �Til�- Ma r By: _ City Clerk,(/ itle: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,a public body corporate and politic By: Deputy Executive Directo APPROVED AS TO FORM: 'DV City Attorney/Agency sel INITIlt ANP APP OVER: lann g irecior REVIEWED AND APPROVED: City Administrator E G'AGREty7T.20flt',AFFORDABLF HOUSIN0326=LesamaneCourt doc STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On 200 ,before me,the undersigned, a notary Public in and for said State,personally appeared personally known to me(or proved to me on the basis of satisfactory evidence) to be the person 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 ZaEF e instrument. cial seal. BER MAR?COMM-0100150 Los AN MES COUMY Comm.").AM.te.2000 (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On �' , 200(0, before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that hetske executed the same in hisAW authorized capacity, and that by his/hftr 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. JLLCROcfdro 60 _ CMn4rlon#151T'ta3 on Omnps Cou* - MMC=Mn.EX0M D®c 20. Si lure of t ublic (SEAL) G AGREEM'"200t.-AFFORDABLE HOUSING• 2m Lssayr2-eCoon doc CALIFORNIA ALL-PURPOSE—ACKNOWLEDGMENT State of California Ss County of _ _j � — On before me, 4 Dale / Name and Title of OMM�to 0 'J`n Nmer)Puble) personally appeared V/c- �D��2� _ 'e'=2:GA/- Name(s)d Svner(a) personally known to me C proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) )stare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in histher/their authorized capacdy(ies), and that by his/her/their P � � signature(s) on the instrument the person(s) or the 4Corrimbatilne 1599179 enbty upon behalf of which the person(s) acted NOryPubtrc.cem. 20 executed the instrument omnge Cw* M7.01COWn OPWMAup4. WITNESS my hand and official seal Puce Navy seal Above �V 6� - S�netu�e of 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 qocument /' Title or Type of Document 7Z113 � [_&jAVa,,Fj ( dam Aeg)aMiZA/CJM3' Document Date L1aV4rX- Q, c2001 Number of Pages A Signer(s)Other Than Named Above Capacity(res)Claimed by rgner(s) Signer's Name h/L Signers Name _��i� �• ❑ Individual [ Individual C..O� Corporate Officer—Title(s) /�_ �D Corporate Officer—Title{sl ❑ Partner—❑Limited ❑General ❑ Partner—❑Limited ❑General O Attorney in Fact T o1 thur here Ci Attorney in Fact Top Top of thunb here ❑ Trustee -- Trustee ❑ Guardian or Conservator 2 Guardian or Conservator ❑ Other ❑ Other Is Repr enting 4 Stoner Is Repre enting _ I 0 2004 Nebonal Naen M10cot or•$350 De Soto A%e PO Boy 2402•Chatsworth C�S13,3 2402 Item Ne 5W %ovdv Call Tdl free I-No V6 662- EXHIBIT "A" Legal Description of the property Lot 1 of Tract No 16740, in the City of Huntington Beach, as _ per map filed in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record Exhibit"B" Legal DescripWn of the affordable Unit Unit 23, Lot 1 Tract 16740— 7264 Lisamane Court Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder RECORDING REQUESTED BY IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINO FEE AND WHEN RECORDED MAIL TO 24470445 24217 44 Olpm 08/21/41 City of Huntington Beach 115 30 Dot 11 2000 Main Street 000 000 000 0 00 0 00 0 00 0 00 0 00 ` Huntington Beach, CA 92648 ) `` Attn City Clerk ) 19//3 AL-EX-4 (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 August 7 , 2007, by and between Tuscany Development Inc (the "Covenantor"), and THE CITY OF HI INGTON 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 October 2, 2006 , the City Council approved Final Tract Map Number 16740 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 5 units to be affordable housing for households earning less than 120% of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition NOW,THEREFORE,the parties hereto agree and covenant as follows 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 depicted in the attached Exhibit "B" and located at 19115 Alexa Lane, which consists of 1 unit, shall be designated as affordable and shall be held subject to this Declaration 1 07-1208/13436 for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 Pnce/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 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 2 07-1208/13436 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. lei/p//< Covenantor'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-m-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 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 3 07-1208/13436 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased" 4 07-1208/13436 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 Acknowledgments to Follow] 5 07-1208/13436 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 TUSCANY I)EYALOPMENT, INC , a CITY OF HUNTINGTON BEACH, Califorma�orpo�ation a California municipal corporate By I T a yor AL By .City Cl if rtle THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By Deputy Exec Director APPROVED AS TO FORM. e'—�- City Attorney/Agency Counsel 10 INITIjkTED AND APPROVED ,I Planning Director REVIE PROVED City Admen ator 6 07-1208/13436 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) On .ZOb 200 , before me, the undersigned, a Notary Public in and for said State, pers ally appeared r V personally known to me-Eerj%ovccl%to to be the person whose name is subscribed to the within instrument and acknowledged to me that heAie executed the same in lus/hw authorized capacity, and that by his/h" 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 Ila. �,�IM478 Nokw Pubic-caNlbMw Orange cou* yCamm.EXj*wAW 17.2= Signs a of Notary Public (SEAL) STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) Or r,4444C44* / #.--D 2007, before m the undersigned, a Notary Public 1n and for said State, personally appeared taw personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that h&she executed the same in &Wher authorized capacity, and that by lusher 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 KAIHLEENNELSON COMMMOn#f 1508478 6X11MV Notary Pubic-Captomb Orange County Comm BOW Aug17,2008 Signaturl of Notary Public (SEAL) 7 07-1208/13436 EXHIBIT "A' Legal Descripiion of Properim Depicted on Tract Map No 16740 Lot 1 of Tract No 16740, in the City of Hunbnglon Beach, as per map filed in Book 886. Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reservea in instruments of record I I Exhibit "B" PARCEL ONE AN UNDIVIDED ONEITWENTY-EIGHTH (1/28) INTEREST AS A TENANT IN COMMON IN THE COMMON AREA OF LOT 1 OF TRACT NO 16740,AS DEFINED IN THE AMENDED CONTDOMIN`IUM PLAN FOR THE PROJECT RECORDED AUGUST 9,2007 AS INSTRUMENT NO 2007000497711 OF OFFICIAL RECORDS OF SAID COUNTY,CALIFORNIA("CONDOMINIUM PLANT EXCEPTING THEREFROM ALL OIL GAS,MLNTERALS AND HYDROCARBONS,BELOW A DEPTH OF 500 FEET,WITHOUT THE RIGHT OF SURFACE ENTRY,AS RESERVED IN INSTRUMENTS OF RECORD EXCEPTING 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 TWO UNIT NO 2, CONSISTING OF CERTAIN AIR SPACE AND ELEMENTS AS DESCRIBED IN THE CONDOMINIUM PLAN MENTIONED ABOVE PARCEL THREE AN EXCLUSIVE USE COMMON AREA,APPURTENANT TO PARCELS ONE AND TWO ABOVE,FOR ALL USES AND PURPOSES OVER AND ACROSS THAT PORTION OF LOT l OF TRACT NO 16740 DESIGNATED ON THE ABOVE-REFERENCED CONDOMINIUM PLANT ALL PARCELS ABOVE ARE SUBJECT TO THE FOLLOWING i THIS CONVEYANCE 1S MADE AND ACCEPTED AND SAID PROPERTY IS HEREBY GRANTED SUBJECT TO THAT CERTAIN DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR TUSCANY ("DECLARATION'), RECORDED MARCH 26,2007 AS INSTRUMENT NO 2007000190608 OFFICIAL RECORDS OF ORANGE COUNTY,CALIFORNIA, AND ANY AMENDMENTS THERETO,ALL OF WHICH THIS REFERENCE ARE HEREBY EXPRESSLY INCORPORATED IN AND MADE A PART OF HEREOF AS THOUGH FULLY SET FORTH HEREIN SAID DECLARATION INCLUDES NONEXCLUSIVE EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, ENCROACHMENT, PEDESTRIAN WALKWAY, GENERAL RECREATION i PURPOSES,MAINTENANCE,REPAIR,DRAINAGE,SUPPORT AND FOR OTHER PURPOSES I ALL PARCELS ARE SUBJECT TO ANY AND ALL MATTERS OF RECORD,INCLUDING TAXES, ASSESSMENTS, EASEMENTS, OIL AND MINERAL RESERVATIONS AND LEASES, IF ANY, RIGHTS OF WAY, COVENANTS, CONDITIONS AND RESTRICTIONS i ALL SUBJECT TO THE DOCUMENT ENTITLED NOTICE OF BUILDER'S ELECTION TO ALTERNATIVE PRE-LITIGATION PROCEDURES FOR CONSTRUCTION CLAIMS PURSUANT TO CALIFORNIA CIVIL CODE SECTION 895, ET SEQ EFFECT AS THOUGH FULLY SET FORTH HEREIN AT LENGTH AND GRANTEES BY ACCEPTANCE OF THIS DEED APPROVE ADOPT, RATIFY AND AGREE TO BE BOUND BY SAID NOTICE MARCH 26, 2007 AS INSTRUMENT NO 2007000190609 OFFICIAL RECORDS GRANTEE,BY ACCEPTANCE AND RECORDATION OF THIS DEED,EXPRESSLY ACCEPTS,COVENANTS AND AGREES TO BE BOUND BY AND ASSUME PERFORMANCE OF ALL OF THE APPLICABLE PROVISIONS AND REQUIREMENTS SET FORTH IN THE DECLARATION ACKNOWLEDGMENT State of California County of t On ��i� — before me, —� � LA Ric- & (here insert name arM title of the officer) personally appeared L'�C4-0 +(,L P6 rdtj= Ke-i_ter (or proved to me on the basis of satisfactory evidence) to be the person ,Vwhose nameV is afe subscribed to the within instrument and acknowledged to me tha&sbemw executed the same i �authorized capaatypes), and that b hi he~signatureA on the instrument the person(o, or the entity upon behalf of which the person(K acted, executed the instrument. WITNESS my hand and official seal. IBM L� CMW*don#144*u ,/ Nolary Pdit-Cawomo Signature_ .J� iC --___ Mr oOmnw�atz,2010 (Seal) P /l$' ACKNOWLEDGMENT State of Califo is County of ,s On , '- /'G'T before me,— V4 b' 1 1 .: cc lcc (here insert na(na and titI4 of the officer) personally appearedti (or proved to me on the basis of satisfactory evidence) to be the person whose name is awe subscribed to the within instrument and acknowledged to me th a executed the same in( i herAeir authorized capacity()s, and that b his �"ignature(s) on the instrument the person(,), or the entity upon behalf of which the person(4 acted, executed the instrument. WITNESS my hand and official seal. L.V L],,11j:3aC01%n*don#1440M Nofty PUft-cawmft Signature_ s. — MlrC=OMoa caUrih► ftb0ft0 tlZ,21V (Seal) lb 3C CbA)F 41L - Recorded in Official Records,Orange County Tom Daly,Clerk-Recorder INNHINIIl-I1I1IIIIIIII11M Oil HNIA1 NO FEE 2007000278374 01:43pm 04/30/07 203 195 Dot 10 RECORDING REQUESTED BY } 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 AND WHEN RECORDED MAIL TO: } City of Huntington Beach ) 2000 Main Street ) rt`+. ji COF� ` Huntington Beach, CA 92648 ) C p N F a Wfth Rtt7tr� Attn: City Clerk ) t4tt� O (Space above for Recorder's use) This document is exempt from recording fees {r��(�C �L' tt•v T 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 October 02 , 2006,by and between Tuscany Development Inc. (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 October 02, 2006 the City Council (City Council or City Engineer) approved Final Tr. Ma Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 120%of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NONNI,THEREFORE,the parties hereto agree and covenant as follows: I. 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 depicted in the attached Exhibit "B" and located at 7243 Richard Court_ which consists of l unit. shall be designated as affordable and shall be held subject to this Declaration I G:•.AGRFF1V.-•I'•200tihFF0RDABLE 110USING:7242 F.uhardCoun.doc f: for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 tern 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 I 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/73er/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 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 G'.AGUEPAT—'NobAFFORDAELE HCUSING1524:Richa;dCoun doi purchaser is aware that the purchaser bu)ing 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 ]eased. 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 therex%7th. 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 PRINIARY OBJECTIVE OF THE CITY AND THIS DECLARATION 1S TO PROVIDE HOUSING TO MODERATE INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. Covenantor'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_ :Von-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 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 tbf 3 G'AGREEM1.12U06AF FOR DABL.E HOUSING.7?41 R,chardCoxn do. 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased: 4 G AGREEVT.:O(:,+La.FFORDABLE HOUStNG�12a2 R+charoCourt doc {. 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 securitv interest. b. Covenants For Benefit of Cite. 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 anv 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 C, ANUENIT=006'J!FFORDABLE HOUSRvG.1243 RlchcidCmn,doc IN WITNESS WHEREOF,the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authonzed as of the date set forth above. COVENANTOR: COVENANTEE: TUSCANY DEVELOP CITY OF HUNTINGTON BEACH, California co e n a eatifornia municipal corporation By: Title: ayor By: City Clerk Title: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By. Deputy Executive .r r A OVED AS TO FORM: j I City Attomey/Age cy Counsel rN1TIA D D APPROVED: Plailnin't bir&tor REVIEWED AND APPROVED: City Administrato? 6 C. AGREEMTA(#u.:FFURDABLE HOUSING,7242 KxhiacCorn dot STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) O 200 , before me, the undersigned, a Notary Public in and for said State,personally appears trpersonally 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/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 th n acted executed the instrument. WI E official se =40A, M.eat+lowaa�s cot y o.ta,zoos Signature of Notary Publi (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On t@pWmOU to , 200(0, before me, the undersigned, a Notary Public in and for said State, personally appeared OEM;() W!kac 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/s* executed the same in his/lW authorized capacity, and that by his/h* 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. VcttoFr4aD I arte,r 1637143 wean►ftA*C-catrano Ll ate County Nycomm.bow Dec za *Sil' o Not u rc (SEAL) G:AGREEK 2000A}FORDABLE HOUSING�7242 RtchwdCoun 00- 1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of _ On before me, Cole Name and TNe of 01%(0.9.'Jaye Notary PulI personally appeared �/L CI '�- A .0 Namets)d S' personally known to me 0 proved to me on the basis of satisfactory evidence to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capecity(ies), and that by his/herAheir signatures) on the instrument the person(s), or the P.L.JEWA t?A entityn behalf of which the CoranMsbn#1599179 person(s) acted, Nofary Mft.Cad Wft executed the instrument. Oranps Could Mt►Comm.�Aup�. WITNESS my hand and official seal. Place Notary Seal All �ex -4 1'.01 Si a of Notary P 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 toms to another document. Description of Attached ocument Title or Type of Documen 0%-.fa ? Document Date: 0Z. -AQ 06 Number of Pages: �d Signer(s)Other Than Named Above: Capacity(fes)Claimed by Signers) Signer's Name: 61e Signer's Name: 0 Individual 0 Individual Corporate Officer—Title(s): '> Corporate Officer—Title(s).&k-r7*,I 62-Y iG Partner—O Limited E.General D Partner—0 Limited D General \ O Attorney in Fact lop tntm,o Here D Attorney in Fact a thumb Here G Trustee C Trustee lop O Guardian or Conservator C Guardian or Conservator Other. ; Other: S' r is Representing: S' net is Repr nting: n1G } to 2004 Nahonal Notary Assoc:aW..-P350 DE Sore Ave.PO.Box 2402-Chatsworth CA 513t3.2402 Rem No 5P07 Reolde,CaE TOICFIee 1$00-876-6827 t EXHIBIT "A" Legal Description of the property Lot 1 of Tract No. 16740, in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas. minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. 1 EXHIBIT "B" Legal Description of the affordable unit Unit 18. Lot 1 Tract 16740- 7243 Richard Court Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder RECORDING REQUESTED BY IIIIIII IIIIIIIillllllllllllllllllllllllllllllllllllllllll IIIIIIIIIIIIIIIIII NO FEE AND WHEN RECORDED MAIL TO: 2007000520278 04:07pm 08/21/07 City of Huntington Beach 115 30 Doe 11 2000 Main Street 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Huntington Beach, CA 92648 ) Attn: City Clerk ) 9/,3,� xh��9n�E (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 August 17 , 2007, by and between Tuscany Development Inc. (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 October 2, 2006 , the City Council approved Final Tract Map Number 16740. 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 5 units to be affordable housing for households earning less than 120% of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW,THEREFORE,the parties hereto agree and covenant as follows: 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 depicted in the attached Exhibit `B" and located at 19135 Alexa Lane, which consists of 1 unit, shall be designated as affordable and shall be held subject to this Declaration 1 07-1208/13438 for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 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 2 07-1208/13438 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. Covenantor'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 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 3 07-1208/13438 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 07-1208/13438 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 Acknowledgments to Follow] 5 07-1208/13438 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: TUSCANY D Za"Uh, P ENT, INC., a CITY OF HUNTINGTON BEACH, California c o __ a California municip corporatio 1 By: - Tit e: r J By: City k Title: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Deputy Executive D ect APPROVED AS TO FORM: �-7 c /9-City Attorney/Agency Counsel V4 qF�fd7' INIT TED ND APPROVED: -jw s�. Planning Director REVI /' DfPPROVED: /+ City Admini for 6 07-1208/13438 v STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On 007, be re me, the undersigned, a Notary Public in and for said State, personalffy appeared personally known to me (orpioved a- to be the p6son whose name is subscribed to the within instrument and acknowledged to me that hekw 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. VAHM1Ko WITNESS my hand and official seal. ,0180d470 Nosy Mft-callbnpo aa oNMP county jmt' j9.MVCWM8VWft17.2=1 dni;� Signature bf Notary Public (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On 2007 before me, a undersigned, a Notary Public in and for said State, persondAy appeared __personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that-he/she executed the same in hisVher 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. MUM Nei 0 Camnwdon 11M478 Nokuy Public-cafomlo t16.MVCM=.ExpWAW17,2=1 Signature Lf Notary Public (SEAL) 7 07-1208/13438 EXHIBIT "A'- Legal Description of Propem. Depicted on Tract Map No. I6740 Lot 1 of Tact No 16740. in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33, inclusive. of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. i Exhibit "B" PARCEL ONE AN UNDIVIDED ONLIVVENTY-EIGHTH (1128)INTEREST AS A TENANT IN COMMON IN THE COMMON AREA OF LOT 1 OF TRACT NO 16740,AS DEFINED IN THE AMENDED CONDOMINIUM PLAN FOR THE PROJECT RECORDED AUGUST 9 2007 AS INSTRUMENT NO 2007000497711 OF OFFICIAL RECORDS OF SAID COUNTY,CALIFORNIA("CONDOMINIUM PLAN'D EXCEPTING THEREFROM ALL OIL. GAS,MINERALS AND HYDROCARBONS,BELOW A DEPTH OF 500 FEET,WITHOUT THE RIGHT OF SURFACE ENTRY,AS RESERVED IN INSTRUMENTS OF RECORD 1 EXCEPTING 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 TWO. UNIT NO 6, CONSISTING OF CERTAIN AIR SPACE AND ELEMENTS AS DESCRIBED IN THE CONDOMINIUM PLAN MENTIONED ABOVE PARCEL THREE. I AN EXCLUSIVE USE COMMON AREA APPURTENANT TO PARCELS ONE AND TWO ABOVE,FOR ALL USES AND PURPOSES OVER AND ACROSS THAT PORTION OF LOT I OF TRACT NO 16740 DESIGNATED ON THE ABOVE-REFERENCED CONDOMINIUM PLAN ' ALL PARCELS ABOVE ARE SUBJECT TO THE FOLLOWING THIS CONVEYANCE IS MADE AND ACCEPTED AND SAID PROPERTY IS HEREBY GRANTED SUBJECT TO THAT CERTAIN DECLARATION OF COVENANTS_ CONDITIONS, RESTRICTIONS AND EASEMENTS FOR TUSCANY ("DECLARATION"). RECORDED MARCH 26, 2007 AS INSTRUMENT NO 2007000190608 OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, AND ANY AMENDMENTS THERETO,ALL OF WHICH THIS REFERENCE ARE HEREBY EXPRESSLY INCORPORATED IN AND MADE A PART OF HEREOF AS THOUGH FULLY SET FORTH HEREIN. SAID DECLARATION INCLUDES NONEXCLUSIVE i EASEMENTS FOR ENJOYMENT, INGRESS, EGRESS, ENCROACHMENT, PEDESTRIAN WALKWAY, GENERAL RECREATION PURPOSES,MAINTENANCE,REPAIR,DRAINAGE,SUPPORT AND FOR OTHER PURPOSES. ALL PARCELS ARE SUBJECT TO ANY AND ALL MATTERS OF RECORD,INCLUDING TAXES,ASSESSMENTS,EASEMENTS, OIL AND MINERAL RESERVATIONS AND LEASES, IF ANY. RIGHTS OF WAY, COVENANTS, CONDITIONS AND RESTRICTIONS I ALL SUBJECT TO THE DOCUMENT ENTITLED NOTICE OF BUILDER'S ELECTION TO ALTERNATIVE PRE-LITIGATION PROCEDURES FOR CONSTRUCTION CLAIMS PURSUANT TO CALIFORNIA CIVIL CODE SECTION 895, ET SEQ EFFECT AS THOUGH FULLY SET FORTH HEREIN AT LENGTH, AND GRA'`'TEES, BY ACCEPTANCE OF THIS DEED, APPROVE, ADOPT, RATIFY AND AGREE TO BE BOUND BY SAID NOTICE MARCH 26, 2007 AS INSTRUMENT NO. 2007000190609, OFFICIAL RECORDS. GRANTEE,BY ACCEPTANCE AND RECORDATION OF THIS DEED,EXPRESSLY ACCEPTS,COVENANTS AND AGREES TO BE BOUND BY AND ASSUME PERFORMANCE OF ALL OF THE APPLICABLE PROVISIONS AND REQUIREMENTS SET FORTH IN THE DECLARATION I I I ACKNOWLEDGMENT State of Califo is County of -� on � � before me, l�'r 1 � c,.r �u&Ac, , here inseriPrrame and Sile of the officer) personally appeared &t A&rei Peee g.4. "or (or proved to me on the basis of satisfactory evidence) to be the personM whose name(s)we-subscribed to the within instrument and acknowledged to me thal&sheAhey executed the same ir, ii heN4heir authorized capacity§es , and that by&her!#iaeir signatureo on the instrument the personapl, or the entity upon behalf of which the person(j acted, executed the instrument. WITNESS my hand and official seal. ra ofOrtrII ao0 Signature (Seal) ACKNOWLEDGMENT State of Calif is County of On � 1 6 7_ before me, �-• r N r,�,(gCc c. , (here insert Arfie and titl of the officer) personally appeared Kz y? �-� or proved to me on the basis of satisfactory evidence) to be the person whose nameVsubscribed to the within instrument and acknowledged to me thalSsheAhey executed the same it(�rkheir authorized capacity(jasy, and that by(@ftwftheW signature(Won the instrument the personfs'J, or the entity upon behalf of which the person(pfacted, executed the instrument. WITNESS my hand and official seal. arL INS COMANIM•144M Nclaiy Fbc-cdkmb �+N CW* Signature *CW �§""0 t1Z. (Seal) . C o"�)F � a - f Recorded in Official Records,Orange County Tom Daly,Clerk-Recorder ill111�!1�lllllllNNO FEE 2007000278375 01:43pm 04130107 203 195 002 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO. ) } City of Huntington Beach ) 2000 Main Street ) Huntington Beach,CA 92648 ) 0 0 N COPY Attn: City Clerk ) Not Compared with OriainW IAS-3 10C919AZ /;,_ a , (Space above for Recorder's use) �"' This document is exempt from recording fees GW/7") pursuant to Govetaunent Code Section 27383. C ! 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 October 02 ,2006,by and between Tuscany Development Inc. (the "Covenantor'l, 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 October 02,2006, the City Council (City Council or City Engineer) approved Final Tr. Map(Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 120%of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW,THEREFORE,the parties hereto agree and covenant as follows: 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 depicted in the attached Exhibit "B" and located at 7253 Richard Court, which consists of l unit, shall be designated as affordable and shall be held subject to this Declaration l G AGREFNIT20116 AFFORDA81JE HOUSING':53R,chaidCoun doc for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 l 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 20M 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 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. Pnor to conveyance of the affordable unit, each approved purchaser shall also submit to the City an executed disclosure statement which certifies that the 2 G•.AGREEAi rMWAFFORDABLE HOLSRdG 72:3FuhardCoun doc 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 ]eased. 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 connWion with only the Covenantors 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 DETERI►MATION 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. CovenantWs 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 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 2 G1AGREFM7 2wb ArFORDA8LE HMSJNG 7253RnhardCwn om 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,'handlcap 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein]eased.- 4 G AGREEMT 2006AFFORDABLE HOUSINGX53RichardCoun doc 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 b. 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) c I RFLMT?()Of.AFFORD_4BLE HOtfSD G-7253RJChardCoin O&C 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: TUSCANY DEVELOPMENT-INC.,a CITY OF HUNTINGTON BEACH, California corporat n a California municipal corporation By: -Cj Title: j Mayor By: Ctata,City Clerk T e: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,a public body corporate and politic By: Deputy Executive Dir APPROVED AS TO FORM: n b;City Attorney I Ag y Counsel 't� 0� Th1ITIA AN APPROVED: Planning i ector REVIEWED AND APPROVED: Clitj Administrator 6 G,AGREEMT3006.AFFORDABLE HOLISING'7253RichaidCoun ca STATE OF CALIFORNIA } } ss. COUNTY OF ORANGE ) On 200 ,befor me, the undersigned, a Notary Public in and for said State; ersonally appeare 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/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 on acted executed the instrument. W1TN h d official al. AW4 4 R HARTMAN COMM.t1601502 ....FlIeLIC 0CA�Ji01eiM Las s couwry Cahn EV AlJG.18.2000 Signature of Notary Public (SEAL) STATE OF CALIFORNIA } ss. COUNTY OF ORANGE } On � � as , 200(P, before me, the undersigned, a Notary Public in and for said State, personally appeared k-P,X�nWAirl" 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/ske executed the same in his/h* authorized capacity, and that by hisAw signature on the instrument the persons or the entities upon behalf of which the person acted executed the instrument. .i►.e►, WITNESS my hand and official seal. JILLC"F"MM COMW$on 0 1687143 Congo Counitr 6'MvC*mn.EvkwDoc20. 04 S r lic (SEAL) i G tAGREEMT200VAFFORDABEE HOUSING 7253RichardCouri doc r CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of Cahfomia ss County of eft l On before me. Dale Name and Tme of OMrcer 1 `Jane Dce PUb6Cl personally appeared G/L eoc-C ,,O(,. Name(s)of Sperls) Y:personally known to me 1`proved to me on the basis of saiistactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hm/her/iheir authorized capachy(ies), and that by his/her/their P.1.ESFOM signature(s) on the instrument the person(s), or the ,a,15"�t719 entity upon behalf of which the person(s) acted, Nowry K"C.Caftn*i executed the instrument. Carrwn.ErfpUet Aup 4,20 WITNESS my hand and official seal. Pace Notary Seel Above •samure 09otary PublK OPTIONAL Though the infommatron below is not required by law,it may prove valuable to persons retying on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Qocument /� �� \ Title or Type of Document: DAJ al- (.GbtJOl77&4 t nddJ r_j JrJ AV-Z 7Y /C7701as Document Date: 0C7V,6&-YL Cal, !a?mf. Number of Pages /D Signer(s)Other Than Named Above: Capacity(les)Claimed by Signer(s) Signer's Name. Gig ,0_? Signer's Name. G individual O Individual jd Corporate Officer—Title(s): AA- Qo( _ 1O Corporate Officer—Title(s):&W l g^*-r�t7'1 * Partner—O Limited C General 0 Partner—❑Limited G General ZKOWIMUM C Attorney in Fact Top of rhumb here Q Attorney in Fact To of fivrnb here Trustee G Trustee C p D Guardian or Conservator C, Guardian or Conservator G Other: i G Other-. Si her Is Representing ^�- Sii net Is Representing: coal'121 C 2004 National Nolan AssocoWn-9350 De soft Pie,PO box 2402-aiatswohh,CA P'315 2402 Item No 5907 Reorder Car Toll-Free 1480f1-876-M-7 s' EXHIBIT "A" Legal Description of the property Lot 1 of Tract No. 16740, in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33. inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. Exhibit "B" Legal Description of the affordable Unit Unit 19. Lot 1 Tract 16740--7253 Richard Court Council/Agency Meeting Held: D c I, E D Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied �5?� 4City C r 'S natur 6 p�� �� C' Council Meeting Date: October 2, 2006 Department ID Number: PL06-21 0i Y �� CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND TY UNCIL MEMBERS SUBMITTED BY: P NELOP CULBRETH-GRAFT, ity Administrator PREPARED BY: SCOTT HESS, Acting Director of Planni SUBJECT: APPROVE AFFORDABLE HOUSING AGREEMENT (KELTER HOMES -TUSCANY DEVELOPMENT INC.) Statement of Issue,Funding Source, Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) —11 Statement of Issue: Transmitted for your consideration is a request by Mike Adams Associates representing the applicant, Tuscany Development, Inc.,'to approve an affordable housing agreement for a 28 unit project located at the 19150,/Gothard Street. The agreement will restrict five units to moderate income households1for a period of 60 years. Staff recommends that the City Council review and approve the affordable housing agreement. Funding Source: Not applicable. Recommended Action: Motion to: "Approve the Agreement Containing Covenants Affecting Real Property By and Between the City of Huntington Beach and Tuscany Development Inc., and authorize the Mayor and City Clerk to sign and execute (Attachment No. 1)." Alternative Action(s): The City Council may make the following alternative motion(s): "Continue the Agreement Containing Covenants Affecting Real Property By and Between the City of Huntington Beach and Tuscany Development Inc, and direct staff accordingly." 2L� O REQUEST FOR CITY COUNCIL ACTION MEETING DATE: October 2, 2006 DEPARTMENT ID NUMBER: PL06-21 Analysis: A. PROJECT PROPOSAL: Applicant: Mike Adams Associates, P.O. Box 382, Huntington Beach, CA 92648-0382 Location: 19150 Gothard Street (East side of Gothard Street south of Garfield Ave.) The affordable housing agreement will restrict five-on-site three-bedroom units to moderate income households for a period of 60 years. The Kelter Home project was approved by the Planning Commission on August 23, 2005. The project consists of 28 units on a 1.90 acre site. There are 28 three-bedroom units; each has a two car attached garage. B. ANALYSIS: The project is located within the Holly Seacliff Specific Plan area, which requires that 15 percent of the units must be affordable. The Specific Plan also requires that the units be located within the Specific Plan area. By restricting five units within the project, the applicant's proposal is consistent with the Specific Plan. The five 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 four-person household this is the equivalent of $94,000 in annual gross income. The maximum sales price of these units is expected to be approximately $350,271 to $375,000. Final sales prices will be determined by the City of Huntington Beach. The proposed agreement is 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. Therefore, staff recommends the City Council approve the agreement. Environmental Status: The subject request is not subject to the California Environmental Quality Act pursuant to Section 15061 (b) (3). PL06-21 Affordable Agr. -2- 9/22/2006 2:09 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: October 2, 2006 DEPARTMENT ID NUMBER: PL06-21 Attachment(s): NumberCity Clerk's Page . Description 1. Affordable Housing Agreement RCA Author: Medel/MBB PL06-21 Affordable Agr. -3- 9/22/2006 2:09 PM ATTACHMENT # 1 J Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIffIIIINO FEE RECORDING REQUESTED BY ) j 2007000278374 01:43pm 04/30/07 AND WHEN RECORDED MAIL TO: ) 203 195 D02 10 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 1� AND RESTRICTIONS FOR PROPERTY �rN (RESALE RESTRICTIONS) v This Declaration Of Conditions, Covenants And Restrictions For Property (the "Declaration") is made as of October 02 , 2006, by and between Tuscany Development Inc. (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 October 02, 2006, the City Council (City Council or City Engineer) approved Final Tr. Map(Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 120% of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that.condition. NOW,THEREFORE, the parties hereto agree and covenant as follows: 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 depicted in the attached Exhibit "B" and located at 7243 Richard Court, which consists of 1 unit, shall be designated as affordable and shall be held subject to this Declaration 1 G:'�AGREEM7,2000AFFORDABLE HOUSING`,.7242 RichmdCourtdoc for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 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 staternent which certifies that the 2 G:`.AGREEMT2006•.AFFORDABLE HOUSING\7242 RichaidCourt.doc 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. Covenantor'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 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 3 G:'AGREEy1P2006AFFORDABLE HOUSING17242 RichardCouit.doc 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 G:`AGREEMT:?OOB,.AFFO RDA BLE HOUSING\7242 RichaidCoun.doc 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 GAAGREEMT12006 AFFORDABLE HOUSING\7243 RichardCourt.doc 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: TUSCANY DEVELOP T / ,� CITY OF HUNTINGTON BEACH, California co n -California municipal corporation" By: Title: a or C4By: City Clerk Title: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Deputy Executive 216 r / A OVED AS TO FORM: rn City Attorney/Age cy Counsel INITIA D 4ND APPROVED: �P Planning irector REVIEWED AND APPROVED: Z4��, City Administrator 6 G^.AGREEMTCOWAFFORD.ABLE HOUSING\7242 RichardCoun.doc STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) Or 2001..,o , before me, the undersigned, a Notary Public in and for said State, personally appeared r epersonally 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/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 th son acted executed the instrument. WIT E 'a. official se . C=COUWry N ' 3MATY009 Signature of Notary Public (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) Ont ape aa , 200(o, before me, the undersigned, a Notary Public in and for said State, personally appeared �Egi cl eeAiQX' 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/skp executed the same in his/I-W authorized capacity, and that by hisA* 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. JILLCROFFM Commission# 1537143 Notary Public-California Orange County Q'MV Comm.Expires Dec 20.2008 Site of Nota u is (SEAL) 7 G:`AGREEMT�2006'AFFORDABLE HOUSING,7242 RichardCoun.doc CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of � ss. On before me, Date / Name and Title of Office (e.g.,"Jaye DfNotary Public") personally appeared (�/L ( 1b4.4l�B�.c���c Name(s)of Signer personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their ZA signature(s) on the instrument the person(s), or the CortuMssfon#� e L.En#15599179 entity upon behalf of which the person(s) acted, County executed the instrument. Orange My Conn.Exphea Aug 4.22-4- WITNEW my hand and official seal. Place Notary Seal Above Sign; of Notary P is OPTIONAL a 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 ocument Title or Type of Documen . 71j� G3�. di77D�c7S y ,g,Jjs ,/bi72/C77�L+.tT Document Date: Oe,- �. d, ao 0 6 Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) / Signer's Name: 6/L C6L� f��l2� Signer's Name: "lt) Z_4,C 6,44 ❑ Individual ❑ Individual )Zr Corporate Officer—Title(s): '9 Corporate Officer—Title(s): 7'AW7�9xJ7— 6X-Y ❑ Partner—❑ Limited ❑ General Mciiiii Vill ❑ Partner—❑ Limited ❑ General _ ❑ Attorneyin Fact ' ' t Top of thumb here ❑ Attorney in Fact ' ❑ Trustee ❑ Trustee Top of thumb here. ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: ❑ Other: Si ner Is Representing: Si ner Is Repre enting: anJ n16 �c 0 2004 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402 y Item No.5907 Reorder:Call Toll-Free 1-800-876-6827 EXHIBIT "A" Legal Description of the property Lot 1 of Tract No. 16740, in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. EXHIBIT "B" Legal Description of the affordable unit Unit 18, Lot 1 Tract 16740 — 7243 Richard Court i Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder IIIIII III II II II II II IIIII II I I III IIII IIII I III I III NO FE E RECORDING REQUESTED BY ) 2007000278375 01:43pm 04/30/07 AND WHEN RECORDED MAIL TO: ) 203 195 D02 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ) � J 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 I(� "Declaration") is made as of October 02 , 2006, by and between Tuscany Development Inc. (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 October 02,2006, the City Council (City Council or City Engineer) approved Final Tr. Map(Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 120% of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW, THEREFORE, the parties hereto agree and covenant as follows: 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 depicted in the attached Exhibit "B" and located at 7253 Richard Court, which consists of 1 unit, shall be designated as affordable and shall be held subject to this Declaration 1 WAGREEMI'2006AFFORDABLE HOUSING,7253RichardCourt.doc t for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 incorfre, 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 mcorne, 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 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 G:1.AGREENM20061AFFORDABLE HOUSING 72s3RichaidCourt.doc 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 Covenantors- 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. TIIE 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. Covenantor'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 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 pennit any such practice or practices of discrimination or segregation with reference to the 3 G:\AGREEMF2006AFFORDABLE Flo USING;7253RichardComt.doc 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 pen-nit 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 G.'.AGREEMT,2006.AFFORDABLE HOUSING.725,RichnrdCoun.doc 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 G:\AGREEMP20WAFJ-ORDABLE HOUSING\7253RichardC'ourt.doc i 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: TUSCANY DEVELOPMENT,INC., a CITY OF HUNTINGTON BEACH, California corporati n ---- a California municipal corporation By. ! Title: /� P�Q_. Mayor-. By: A4,L erz4d,j--.City Clerk T t e: THE REDEVELOPMENT AGENCY OF THE , CITY OF HUNTINGTON BEACH, a public body corporate and politic By: S Deputy Executive Dir APPROVED AS TO FORM: )b4 City Attorney/Age y Counsel INITIAT AN AP ROVED: Planning irector REVIEWED AND APPROVED: Citj Administrator 6 6:AGREEMT2006AFFORDABLE HOUSING`'.72iMchardCourt.doc - I STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On'�p 200 befo i-ne, the undersigned, a Notary Public in and for said State, ersonally appeare . ` 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/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 t pe on acted executed the instrument. WITN h d official al. a =yMMM*cuFO:NIAG MAN 02 3 WFORNIA nUNTY8,2009 Signature of Notary Public (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On� rn� as , 204c, before me, the undersigned, a Notary Public in and for said State, personally appeared -�jl(►C\ 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/sue executed the same in his/11A authorized capacity, and that by his/lia 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. JILLCROFFOItD Commission# 1 337143 Notary Public-California Orange County My Comm.Expires Dec 20,2008 S r r P ]ic (SEAL) 7 G'AGREEM'F20061AFFORDABLE H0USING.7253RichardCourt.doc 1/ CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of ss. On before me, Date Name and Title of Officer( 'Jane Doe,Kotary Public") personally appeared 61z- Name(s)of Signer(s) .personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their P.L.ESPARZA signature(s) on the instrument the person(s), or the Commission# 1599179 entity upon behalf of which the person(s) acted, 01MVCOMM. Notary Pubi(C-COMOMIa executed the instrument. Orange County Expires Aug 4,2009 WITNESS my hand and official seal. Place Notary Seal Above Signature 00tary 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 ocument /�}} Title or Type of Document: aA) DF- 6OrI,I MDA)S 13ZU&- JArJrS 6W b 9'3_�C770tiU , Document Date: OC7DZA;;Y� 02 o2000 Number of,Pages: �D Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: 61,L- GE7t40—Ya, Signer's Name: ❑ Individual ❑ Individual )d Corporate Officer—Title(s): —M-4yolt X Corporate Officer—Title(s): C17Y C — ❑ Partner—❑ Limited ❑ General VIC.11,11 ❑ Partner—❑ Limited El General • ,.. ❑ Attorney in Fact Top of thumb here ❑ Attorney.in Fact Top of thumb here ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: ❑ Other: ner Is Representing: �� S�i9,ner Is Representing: Sia ©2004 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402 Item No.5907 Reorder:Call Toll-Free 1-800-876-6827 EXHIBIT "A" Legal Description of the property Lot 1 of Tract No. 16740, in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. Exhibit "B" Legal Description of the affordable Unit Unit 19, Lot 1 Tract 16740 — 7253 Richard Court Recorded in Official Records, Orange County i Tom Daly, Clerk-Recorder IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII III NO FEE RECORDING REQUESTED BY > j 2007000278453 02:09pm 04/30/07 AND WHEN RECORDED MAIL TO: ) 203 195 D02 10 o.00 o.00 o.00 o.00 o.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 Govermnent Code Section 27383. DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY �V (RESALE RESTRICTIONS) ion Conditions, Covenants And Restrictions For Property (the v, This Declaration Of Co P Y "Declaration") is made as of October 02 , 2006, by and between Tuscany Development Inc. (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 0Ctober 02,�nn�, the ('i tv��.,-council (City Council or City T— Engineer) approvedFi nal Tr. Map (Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 120%of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW,THEREFORE, the parties hereto agree and covenant as follows: 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 depicted in the attached Exhibit "B" and located at 7254 Lisamarie Court, which consists of 1 unit, shall be designated as affordable and shall be held subject to this 1 G:\AGREEMT,2006',AFF0RDABLE HOUSING:7254 Lisamarie.doc Declaration for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 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 2 GIAGREEMT2006\AFFORDABLE HOLISING\7254 Lisamarie.doc 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 TINES 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. Covenantor'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 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 3 G:\AGREEMT\2006\AFF0RDABLE HOUSM07254 Lisamarie.doc 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 G:VAGREEMTQ006\AFFOR DAB LE HOUSING,7254 Lisamane.doc 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 Acknowledgments to Follow] 5 G:V,LGI'.EEM712006\AFFORDABLE HOUSING\7254 Lisamarie.doc 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: TUSCANY DEVELOPMI;, T, INC., a CITY OF HUNTINGTON BEACH, California corpor ti '� a California municipal co oration By: � Title: By: City Clerk itle: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Deputy Ex cutive Dire r OVED AS TO FORM: C4 Attorney/ UncyCounsel INITI TE A D APPROVED: —XMHa ing Director REVIEWED AND APPROVED: City Administrator 6 G',.AGREEMT2006\AFFORDABLE HOUSING\7254 Lisamane.doc STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On 0 be""f��ore.me, the undersigned, a Notary Public in and for said State, ersonally appeared �U /personally known to one (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 on acted executed the instrument. WI ES h official s al. =AMBERMAN502 ;AUFORMAUNTY18,2009 Signature of No ary Public (SEAL) STATE OF CALIFORNIA ) ss.. COUNTY OF ORANGE ) On`��t o'er' , 2006, before me, the undersigned, a Notary Public in and for said State, personally appeared i6ami() WAQr 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/she executed the same in his[h* authorized capacity, and that by his/Wr 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. JILLCROFFORD Commission#1537143 -i Notary Pubflc-California Oronpe County My Comm.Expires Dec 20,2008 Si a rofta P b c (SEAL) 7 GAAGREEMP2006\AFFORDABLE HOUSINGl7254 Lisamarie.doc CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California (�A110104E ss County of 1 On SZ oZ 00 before me, Date Name and Title of cer(e.g.,"Jane Doe,Notary Public") personally appeared S/L a&7z0'06-W /96W &IJ Z446V, Name(s)of Signer(s) personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the P L.ESPARZA entity upon behalf of which the person(s) acted, CornMbslon#1599179 Notay RAAC_CCOM-40 {� executed the instrument. Orange County 101MV Comm.Explrea Aug 4.2009 WITNESS jmy hand and official seal. Place Notary Seal Above ��Cx. z4az�� Signature of Not 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-Qocument 1 Title or Type of Document: � C,Aac4 270aJ d (2WA,T7AJS al Q, 7 Wb _T710AIAj Document Date: OCVAC-� Number of Pages: �0 Signer(s)Other Than Named Above: / Capacity(ies) Claimed by Signer(s) Signer's Name: 61L Signer's Name: ❑ Individual ❑ Individual Corporate Officer—Title(s): V Corporate Officer—Title(s):l7C�L�(7)9yK17- �7�1�-L 1C ❑ Partner—❑ Limited ❑ General MeJU110 ❑ Partner—❑ Limited ❑ General ❑ Attorneyin Fact Top of thumb here ❑ Attorney in Fact Top of thumb here ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: ❑ Other: 0 St ner Is Representing: ner Is Representing: -- 0-1C.�t.J7�n16iy e# Si2/7V .01-- /ns,/6.�..60f ie5V O 2004 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402 J J Item No.5907 Reorder:Call Toll-Free 1-800-876-6827` EXHIBIT "A" Legal Description of the property Lot 1 of Tract No. 16740, in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. Exhibit "B" Legal Description of the affordable Unit Unit 22, Lot 1 Tract 16740 — 7254 Lisamarie Court Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINO FEE 2007000278372 01:43pm 04/30/07 RECORDING REQUESTED BY ) 203 195 Dot 10 AND WHEN RECORDED MAIL TO: ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 J 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 1 QQ AND RESTRICTIONS FOR PROPERTY (RESALE RESTRICTIONS) This Declaration Of Conditions, Covenants And Restrictions For Property (the "Declaration") is made as of October 02 , 2006, by and between Tuscany Development Inc. (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 October 02, 2006, the City Counci 1 (City Council or City Engineer) approved Fi nal Tr. Map(Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 120% of the . Orange County Median Income for a period of sixty_years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW,THEREFORE, the parties hereto agree and covenant as follows: 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 depicted in the attached Exhibit "B" and located at 7264 Lisamarie Court, which consists of I unit, shall be designated as affordable and shall be held subject to this I G:\AGREEMT�2006`1AFFORDABLE HOUSINGl7264 LisamarieCourl.doc Declaration for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 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 GAAGREEMT20WAFFORDABLE HOUSING\7264 Lisa marieCourt.doc 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 penmitted 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. Covenantor'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 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 pen-nit any such practice or practices of discrimination or segregation with reference to the 3 G.'.AGREEMT3006\AFFORDABLE HOUSING3264 Lisa maiieCouri.doc 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 ally 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 GAAGREEiMT7 2006•AFFORDABLE HOUSiNG`•.7264 Lisa inalicCourt.doc 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 GAAGREEMT12006\AFFORDABLE HOUSING\7264 LlsanlarleCOLlrt.doc 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: TUSCANY DEVELOPMENT, INC., a CITY OF HUNTINGTON BEACH, California c orati''o a California municipal oration By: Title: /Tiles_ Ma r By: _ City Cler Title: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Deputy Executive Directo APPROVED AS TO FORM: ?-,�`City Attorney/Agency unsel q'�sl 0� INITIA AN APP OVED: ` Plann ng Director REVIEWED AND APPROVED: City Administrator 6 GAAGREEI,M2006`.AFFORDAQLE HOUSINU17264 LisamaricCourt.doc STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) On Ic(lti 200(_0 , before me, the undersigned, a Notary Public in and for said State, personally appeared ` v-- 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/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 th person acted executed the instrument. W S a d nd o icial seal. =QCNDTAKyPUKjC TMAN 502 ►uronNuOUNTY 18,2009 Signature of Notary Public (SEAL) f STATE OF CALIFORNIA ss. COUNTY OF ORANGE ) On as , 200(0, before me, the undersigned, a Notary Public in and for said State, personally appeared -eyic\ 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/sWe executed the same in his/IZr authorized capacity, and that by hisAI& 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. JILLCROFFORD _ COMMInlon#t 1537143 ` O'MvComm- Notary Publk-Colitomla Orange County Explre3 Dec 20,2008 Si ture of N t ublic (SEAL) 7 G:\AGREENIT2006'UAFFORDABLE HOUSIN&7264 Lisa mariLCouri.doc CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of On �5 /aAOO-Z , before me, 2_ Date Name and Title of Officer(e.g.,"Ane oe,Notary Public") personally appeared COL—"72P _ ,-t!d /�OBi6f1� Name(s)of Sig personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their P WARM on the instrument the person(s), or the Commission; 1599179 entity upon behalf of which the person(s) acted, Notary PLVic-Cauiomia executed the instrument. Orange County Omy Comm.Explim Aug 4,2009 WITNESS my hand and official seal. Place Notary Seal Above Signature of Vfary 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 qocurnent Title or Type of Document: AAa J�ESi7C/CJ,1�r.LS Document Date:_ / /d (�-�0/��- a2, o200,C Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Clai d by Signer(s) Signer's Name: C�/L �?�y4���. Signer's Name: I �� r1��• ❑ Individual ❑ Individual Corporate Officer—Title(s): - Corporate Officer—Title(s): 0!5&,G1,(7nx0-67Y 6eA,0< ❑ Partner—❑ Limited ❑ General ElPartner—❑ Limited ElGeneral ❑ Attorney in Fact Top of thumb here ❑ Attorney in Fact Top or thumb hero ❑ Trustee ❑ Trustee ❑ Guardian or Conservator Cl Guardian or Conservator ❑ Other: ❑ Other: S? ner Is Repre enting: Si ner Is Repre enting: 0 2004 National Notary Association•9350 De Soto Ave..P.O.Box 2402•Chatsworth,CA 91313-2402 Item No.5907 Reorder:Call Toll-Free 1-800-876-6827 EXHIBIT "A" Legal Description of the property Lot 1 of Tract No. 16740, in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. Exhibit "B" Legal Description of the affordable Unit Unit 23, Lot 1 Tract 16740 — 7264 Lisamarie Court ' i I Recorded in Official Records, Orange County Tom Daly, Clerk-Recorder RECORDING REQUESTED BY NO FEE > ! 2007000278373 01:43 AND WHEN RECORDED MAIL TO: ) pm 04/30/07 203 195 D02 10 I City of Huntington Beach 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 Main Street ) J 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 V` "Declaration") is made as of OctnhPr 0� , 2006, by and between Tuscany Development Inc. (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 October 02, 2006, the City Council (City Council or City Engineer) approved Final Tr.Map (Final Tract Map or Parcel Map) Number 16740. 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 5 units to be affordable housing for households earning less than 120% of the Orange County Median Income for a period of sixty years. The execution and recordation of this Declaration is intended to fully satisfy that condition. NOW, THEREFORE, the parties hereto agree and covenant as follows: I. 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 depicted in the attached Exhibit "B" and located at 7265 Lisamarie Court, which consists of 1 unit, shall be designated as affordable and shall be held subject to this 1 GAAGREEM"P,200RAFFORDABLE HOUSING\7265LisamarieCoun.doe b I ' Ill I Declaration for sixty years from the date of Notice of Completion of units built in Tract Number 16740 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 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 2 GIAGREEMT0006\AFFORDABLE HOU SIN G\7265 Lisa marieCourt.doc 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. Covenantor'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 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 3 G:WGREEM7120WAFFOR DAB LE HOUSING%7265LisamaneCourt.doc 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 nonsegr�gation 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 ]eased 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 occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 4 G:\AGREEM712006\AFFORDABLE HOUSING\72651-isamarieCourt.doc 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 GAAGREEM"Il?OO6IAFFORD.ABLF HOUSING\7265LisamarieCourt.doc 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: TUSCANY DEVELOPMENT, INC., a CITY OF HUNTINGTON BEACH; California corpora o. a California municipal corporation By: Titl / v���—��� Ma or ABy: City Clerk itle: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: ✓ Depu cu e Direct APPROVED AS TO FORM: / City Attorney/Agency ounsel 125� INITIATE AND AP ROVED: Planning Director REVIEWED AND APPROVED: City Administrator 6 GAAGREENIP-1006\AfrORDABLE HOUSING\72651-isamarieCoun.doc r STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE ) OnS Irr 200�, bef �me, he undersigned, a Notary Public in and for said State, p rsonally appeare (� 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/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 t rson acted execut d th instrument. WI ESS a and Icial se AMBER HARTMAN COMM.#1601502 3 NOTARY PUKIC•CALIFORNIA LOSANGELES COUNTY + Cam.Exp.AUG.18,2009 91'6—ature of Notary Public (SEAL) STATE OF CALIFORNIA ) } ss. COUNTY.OF ORANGE ) On5o mw as , 2004D, before me, the undersigned, a Notary Public in and for said State, personally appeared %n �G�'�C� 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/ske executed the same in hisAI& 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. J LL CROFFORD ComkWn# 1537143 T67;'.� mNotary Public-Califomla Orange County My Comm.EVkw Dec 20,2008 gnahlre of N t ublic (SEAL) 7 GAAGREEM71.'.0061AFFORDABLE HOUSING\7265LisamarieCourt.doc CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of On � � before me, . [�. Cs�,-�� 4— )-Date Name and Title of Officer(e.g.. 'Jane Doe,Notary Public") personally appeared Name(s)of Signer s) personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their P E,PwRZA signature(s) on the instrument the person(s), or the CoMnI sion# 15"179 entity upon behalf of which the person(s) acted, teary pubbC.CaWarda executed the instrument. Orange County My Comm.Expires Aug 4,2009 WITNESSM.y hand and official seal. Place Notary Seal Above �X, Signature of N ry 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 ocument / Title or Type of Document:&67 Z.-�jD.JL—C�Gu/�i77GW.1 �lJ��tJ.9�JT.7 /Qi�+� T U7 .f Document Date: �TaBGs�� c2, 5�,C Number of Pages: /n Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) / Signer's Name: rx"L Signer's Name: ���iCJ z"id!\_ ❑ Individual y�f El Individual �' Corporate Officer—Title(s): O'/ )9 Corporate Officer—Title(s): ❑ Partner—El Limited ❑ General ❑ Partner—❑ Limited ❑ General ❑ Attorneyin Fact ' ❑ Attorney in Fact ' Top of thumb here Y Top of thumb here ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: ❑ Other: Sioner Is Repr senting: Sigp -,er Is Representing: 0 2004 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402 Item No.5907 Reorder:Call Toll-Free 1-800-876-6827 EXHIBIT "A" Legal Description of the property Lot 1 of Tract No. 16740, in the City of Huntington Beach, as per map filed in Book 886, Pages 30-33, inclusive, of Maps, in the Office of the County Recorder of Orange County. Except therefrom all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. Exhibit "B" Legal Description of the affordable Unit Unit 27, Lot 1 Tract 16740 — 7265 Lisamarie Court RCA ROUTING SHEET INITIATING DEPARTMENT: Planning SUBJECT: Affordable Housing Agreement for Kelter Homes-Tuscany Development, Inc. COUNCIL MEETING DATE: October 2, 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 Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) 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.. Only)(Below Space For City Clerk's Use RCA Author: SH/MBB/RM CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92.648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK April 24, 2007 Tom Daly O. C. Clerk— Recorder 12 Civic Center Plaza, Rm. 101 Santa Ana, CA 92701-4057 Attn: Document Examiner Enclosed please find 5 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (resale Restrictions) between Tuscany Development, Inc. and The City of Huntington Beach and the Redevelopment Agency of the City of Huntington Beach 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 & Restrictions when recorded to this office in the enclosed self-addressed stamped envelopes. J0") 0�- J404 oan L. Flynn City Clerk Enclosures Re: CCR's—Tuscany Development—19150 Gothard Street. (CM 10/2/06) G:/followup/deeds/deedlefter2002.doc Procedure#18 (Telephone: 714-536-5227)