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HomeMy WebLinkAboutSOUTH RIDGE HOMES - AFFORDABLE HOUSING DECLARATION OF CONDIT This Document w electronically recorded by �J Southlalfitle Company_B Southland Title.Corporation Recorded in Official Records,County of Orange Tom Daly,Clerk-Recorder IIIII ��I IIIIIIIIII IIIIIIIIIIII IIIIIIIIII I I NO FEE Recording.requested by ) 2002001198791 04:18pm 12/30/02 And when recorded mail to: ) 118 4 D02 13 o4 c of C,'tr UER k > o.00 o.00 0.00 0.00 0.00 0.00 o:oo 0.00 .2000 A*M 5hvef- ) Hvn�lnllbn ISWA Ci4 41;6yp ) (Space above for Recorders's Use) This document is exempt from recording Fees pursuant to Government Code Section 27383 DECLARATION OF CONDITIONS,COVENANTS AND RESTRICTIONS FOR PROPERTY (RE-SALE RESTRICTIONS) This Declaration of Conditions,Covenants and Restrictions for Property(the "Declaration")is made as of ov .- 2002,by and between the CITY OF HUNTINGTON BEACH,a California municipal corporation("City"or"Covenantee")and SOUTHRIDGE HOMES,A California General Partnership(the"Covenantor"). 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". Escrows on Property in Covenantor name to close on or before September 25,2002. B. On November 20,2001,the City Council approved Tentative Tract Map Number 15964. 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 Department of Planning. The City further required that the plan or declaration shall provide 15% of the total number of units to be affordable housing for households earning less than 120%of the Orange County Median for a period of thirty 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 Property,or any part thereof,that the property located at 19172 B and 19172C,Holly Street which are two condominiums across the street from the tract site,shall be designated as affordable and shall be held subject to this Declaration for thirty(30)years from the date of Notice of Completion of units built in Tract Number 15964(the"Expiration Date")as follows: (a) The affordable units shall only be owned and occupied by Covenantor or by"Moderate Income Households." Moderate Income Households shall mean persons or families earning not more than One Hundred Twenty Percent(120%)or less of the Orange County median income,adjusted for appropriate family size,as published by the United States 1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California O?� ss. County of On ��1(� G� before me, /C 11=0 I ` V �J Date Nam Titl f Officer(e.g.,"Jane Doe,Notary Public-) personally appeared / C . i f Name(s)of Signer(s) Ppersonally known to me ❑ proved to me on the basis of satisfactory evidence to be the person( whose name is re subscribed to the within ' trument and acknowledged to me thaUafsh4they executed the same in his er r aut ized capacityttb and t by hi er heir signatureN on the instrument the pers or the entity upon behalf of which the person KELLY LOUISE MANDIC acted, executed the instrument. Commission# 1372899 Z .� Notary Public - California > WITNESS my hand and official seal. Orange.County My Comm.Expires Sep 1,2006 Signature of Notary Public OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Ttle or Type of Doc ent: `S id .� vus,n9 r � , k^$ Document Date: • Number of Pages: Signer(s)Other Than Named Above: r'D n a I F. 0 a,kW A-j Capacity(ies) Claimed by Signer Signer's Name: b��� r c2o El Individual /� Top of thumb J here Ii(Corporate Officer—Title\: _//1 A Y 0 i ❑ Partner—❑ Limited ❑General ❑ Attorney-in-Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: • s Signer Is Representing: r if 0 1999 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402•www.nationalnotary.org Prod.No.5907 Reorder:Call Toll-Free 1-800-876-6827 ILLEGIBLE NOTARY SEAL DECLARATION GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT WHICH THIS STATEMENT IS ATTACHED, READS AS FOLLOWS: NAME OF NOTARY: L- �OK /•S L' j�il/�� `c- COUNTY WHERE BOND IS FILED: � ��3P CE DATE COMMISSION EXPIRES: PLACE OF EXECUTION OF THIS DECLARATION: IRVINE DATE: �Z - � O - O Z COMMISSION NUMBER: ✓�'Z AUTHORIZED MANUFACTURES.CODE: SOUTHLAND TITLE TITLE OFFICER CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of 19 �/7 �► On Al,a U. a >ta oanibefore me, e �� L or g A Date Name Title f O er(e.g.,`Jane Doe,Notary Public") personally appeared L� Q� / Q �?ANVCUA �" y r//� �/► Name(s)of Signer(s) Wersonally known to me ❑ proved to me on the basis of satisfactory evidence to be the person whose name is re subscribed to the within ' trument and acknowledged to me that she hey executed the same in hi er it authorized capacity(ree�, and th by hi er heir signature**on the instrument the persOTT4 or the entity upon behalf of which the personj, KELLY LOUSE MANDtC acted, executed the instrument. Commission it 1372899 Z z •.,. Notary Public California ; WITNESS my hand and official seal. Orange County My Comm.Expires Sep 1.2006 IV Signature of Notary Public OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document - f Title or Type of Document: C C r S : A-�J SAr __ u$rn k°l'1 3 1- 19 I r7 a, 4o i I S et HB Document Date: IiS-oa Number of Pages:Sa Signer(s)Other Than Named Above: on K Capacity(ies)/Claimed by Signer Signer's Name: 26n,,24f Bitoc6,,te Individual Top of thumb here 4 Corporate Officer—Title(s): 71 Partner—❑ Limited ❑General Attorney-in-Fact C Trustee C Guardian or Conservator Other: Signer Is Representing: � � nf' N�vh�ivrr, �il� >'licl 0 1999 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402•www.nationalnotary.org Prod.No.5907 Reorder:Call Toll-Free 1-800-876-6827 ILLEGIBLE NOTARY SEAL DECLARATION GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT WHICH THIS STATEMENT IS ATTACHED, READS AS FOLLOWS: NAME OF NOTARY: � zo u �`s �jr/J i`L COUNTY WHERE BOND IS FILED: DATE COMMISSION EXPIRES: �C� / �00 PLACE OF EXECUTION OF THIS DECLARATION: IRVINE DATE: /v2- 3 D Z COMMISSION NUMBER: /, r 7 z AUTHORIZED MANUFACTURES CODE: SOUTHLAND TITLE TITL OFFICER Council/Agency Meeting Held: 6 A Deferred/Continued to: /XApproved ❑ Conditionally Approved ❑ Denied City Clerk's Sign re Council Meeting Date: Novemb 2002 Department ID Number: PL02-46 1-11 pn ' CITY OF HUNTINGTON BEACH oZZ REQUEST FOR ACTION ^ © SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS r 3 00 2f � :,77.� SUBMITTED BY: RAY SILVER, City Administrator azP PREPARED BY: HOWARD ZELEFSKY, Director of Plannin l SUBJECT: APPROVE AFFORDABLE HOUSING DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY LOCATED AT 19172-B AND 19172-C HOLLY STREET. Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Transmitted for your consideration is a request by Southridge Homes, A California General Partnership, to approve an affordable housing declaration of conditions, covenants and restrictions, in satisfaction of the affordable housing requirement for Tract 15964, a 13-tot single-family residential subdivision. The required affordable units (two), will be located off- site in a twenty-unit condominium project located on the east side of Holly Street, north of Clay Avenue. The agreement restricts two dwelling units to moderate-income households for a period of 30 years, Staff recommends that the City Council review and approve the affordable housing re-sale restrictions. Funding Source: Not applicable. Recommended Action: Motion to: "Approve the Declaration of Conditions, Covenants and Restrictions for Property (Attachment No. 1) By and Between the City of Huntington Beach and Southridge Homes, A California General Partnership, and authorize the Mayor and City Clerk to sign, execute and record." /Z MEETING DATE: November 18, 2002 DEPARTMENT ID NUMBER: PL02-46 Alternative Action(s): The City Council may make the following alternative motion(s): "Continue the Declaration of Conditions, Covenants and Restrictions for Property By and Between the City of Huntington Beach and Southridge Homes, A California General Partnership, and direct staff accordingly." Analysis: A. PROJECT PROPOSAL: Applicant: R.L. Sfreddo, Southridge Homes, 18281 Gothard Street, Unit 201., Huntington Beach, CA 92648 Location: 19172-B / 19172-C Holly Street (east side of Holly Street, north of Clay Avenue) The affordable housing declaration will restrict two units in a 20-unit condominium project to moderate-income households for a period of 30 years, in satisfaction of the affordable housing requirement for Tract 15964. The restricted units provide two-bedrooms, a 436 square-foot garage and 1,236 square-feet of living space. B. STAFF ANALYSIS AND RECOMMENDATION: Tentative Tract Map No. 15964, a 13-lot single-family residential subdivision located on the west side of Holly Street, north of Main Street, was approved by the City Council on November 20, 2000. Conditions of approval require the developer to provide two units (15%) made affordable to families of moderate income level for a period of 30 years, via an agreement approved by the City Council. The affordable units may be provided on or off site, pursuant to conditions of approval of Tentative Tract Map No. 15964. The submitted declaration provides for two affordable units located off-site, in a 20-unit condominum project located across the street from Tract 15964. Both units will be restricted to moderate-income households for a period of 30 years. The declaration defines a moderate-income household as earning not more than 120 percent of the County median income. This income range is consistent with the standards established by HUD Orange County. Accordingly, the maximum annual gross income for a moderate-income four-person household, based on Current Orange County median income data, is $90,700. The submitted document will satisfy the affordable housing requirements applicable to Tract 15964 and has been reviewed and approved by the City Attorney's Office. Therefore, staff recommends the City Council approve the declaration. PL02-46 -2- October 23,2002 9:17 AM 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 units shall only be sold at an"Affordable Housing Cost" to Moderate Income Households. Affordable Housing Cost shall mean the permitted gross sales prices of the units as set forth in the Affordable Housing Price/Income Guidelines or successor guidelines published,from tune-to-time,by the City for such purpose. (c) The covenant contained in this Section 1 shall run with the affordable units and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer of Affordable Units. No transfer of the affordable units shall occur until the City determines(a)that the proposed purchasers intend to occupy the affordable units as the proposed purchaser's principal residence,(b)that the proposed purchasers are Moderate Income Households,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 units, Covenantor shall send written notice thereof to the City at the following address: City of Huntington Beach 2000 Main Street Huntington Beach,California 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 purchaser is aware that the purchaser buying the affordable unit may only sell the affordable 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. Covenanter 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 understands 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 2 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. w ' Ah- Convenantor's Initials The covenant contained in this Section 2 shall run with the affordable units and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. 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,creed, age,class,income,religion,sex,sexual orientationmarital status,national origin or ancestry in the sale, lease,sublease,transfer,use,occupancy,tenure,or enjoyment of the affordable unit,nor shall Covenantor itself or any person claiming under or through it,establish or permit any such practice or practices of discrimination or segregation with reference to the selection,location,number,use or occupancy of tenants, lessees,subtenants,sublessees,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,marital status,national origin,or ancestry of any person. All such deeds,leases 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 or persons on account of race,color,religion,sex,marital status,national origin or ancestry in the sale,lease,sublease,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, lessees,subtenants,sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The Lessee herein covenants by and for himself and herself,his or her heirs,executors,administrators and assigns,and all persons claiming under or through him or her,that this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race,color, religion,sex,marital status,ancestry or national origin in the leasing,subleasing,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,sub- lessees,subtenants,or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of,any person,or group of persons on account of race,color,religion,sex,marital status,ancestry or national origin,in the sale,lease,sublease,transfer,use,occupancy,tenure or enjoyment of the premises, 3 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,lessees,subtenants,sublessee or vendee of the premises." 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions,restriction,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 of security interest. 5. Covenants for Benefit of City. All covenants without regard to technical classification or designation shall be binding for the benefit of Covenantee and such convenants 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 interests therein to which such covenants relate. The Covenantee, in the event of any breach of such convenants,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. 6. 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 same document 7. 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 deemed 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. 8. Subordination to Trust Deeds. Notwithstanding any provision of this Declaration to the contrary,the covenants and agreements established in this Declaration at all times shall be junior and subordinate to the lien of the first lender's deed of trust,or such lender's assignee or successor in interest recorded by or on behalf of any lender to secure a loan,including without limitation any deed of trust recorded concurrently herewith. City agrees at no expense to City,to execute such documents as may be reasonably requested by Covenantor,and successor or assign to Covenantor's right,title and interest in and to all or any portion of the property,or any lender of any such person subordinating City's rights and interest under this Declaration to the lien of any trust deed recorded or to be recorded by a lender securing a loan of the property. Covenantor,Covenantor's successor or assign,or the benefitted lender shall be responsible for preparing the document(s)creating such subordination of City's interest. IN WITNESS WHEREOF,City 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. 4 CITY/COVEENANTEE: CITY OF✓f1v�/f/i✓ APPROVED AS TO FORM: A municipal corporation ayor Att ey ����� p•ov ATTEST: REVIEWED AND APPROVED: City Clerk City Admixghtor ITIITIA D AND APPROVED: P,Vnnfng Director COVENANTOR: SOUTHRIDGE HOMES a California General Partnership By: R. eddo,Partner 5 EXHIBIT"A" The Property shall mean and refer to that certain real properties located in the City of Huntington Beach,County of Orange, State of California,more particularly described as: Unit 15,Lot 1 of Tract 14347 as per map recorded in Book 689, Pages 35 and 36 of miscellaneous maps in the office of the county recorder of said county,and commonly known as 19172-B Holly Street,Huntington Beach,California 92648. Unit 14,Lot 1 of Tract 14347 as per map recorded in Book 689, Pages 35 and 36 of miscellaneous maps in the office of the county recorder of said county and commonly known as 19172-C Holly Street,Huntington Beach,California 92648. 6 ORDER NO. 22525703 EXHIBIT "A" A Condominium Comprised Of: Parcel 1: An undivided 1/201h interest in and to Lot 1 of Tract No. 14347, in the City of Huntington Beach, County of Orange, State of California, as per map recorded in Book 689 Pages 35 and 36 of Miscellaneous Maps, in the Office of�the County Recorder of said County. Excepting Therefrom, All Units as shown upon the Condominium Plan recorded February 10, 1993-as- Instrument No. 93-0090249, Official Records and re-recorded- April 9, 1993 as Instrument No. 93-236999 of Official Records. EXCEPT Therefrom, All-oil, gas, minerals, and other hydrocarbon substances lying below a depth of 500 feet, but with no right of surface entry, as provided in deeds of record. Also Except Therefrom, All water, water rights, claims or title to water in, on or under said land. Parcel 2: .M Unit 14 as shown upon the Condominium Plan referred to in Parcel.1 above. Parcel 3: An Exclusive Easement for use over that certain Exclusive Use Common Area Balcony, Patio, and Stairway, of that portion of Lot 1 described in Parcel 1 above, described, identified and assigned upon the Condominium Plan referred to in Parcel 1 above, appurtenant to Parcels 1 and 2 above described. Parcel 4: A: Non-Exclusive Easement on and-over the. Common Area defined in the Declaration- of` Covenants,, conditions.and restrictions, recorded February 10-3 1993 as 'Instrument .No. 93- 0090248 of Official Records, for access, use, occupancy, enjoyment, ingress and egress to the amenities located thereon subject to the terms and provisions of the Declaration of Covenants, Conditions and Restrictions. This Easement is appurtenant to Parcel1 above. 3 CAW 011,NL'. .kLT,,PTJIZPOSACT NOVVMDGiMMNT State of - County of on before me, Ain q&6 personally appeared personally known to me OR - Q proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/axe 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 ANGELA ERfCKSON entity upon behalf of which the person(s) acted, COMMISSION#1278510 executed the instrument. Notary Public-California ORANGE COUNTY o My Commission Expires WITNESS" my hand and official seal OCTOBER 25,2004 I Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Q INDIVIDUAL Q CORPORATE OFFICER Tnl-E(S)) MIS OR TYPE OF DOCUWN r NUMBER OF PAGES: Q PARTNER(S) Q LI1ZTED Q GENERAL. DATE OF DOCUMENT: Q ATTORNEY-IN-FACT Q TRUSTEE(S) Q GUARDIAN/CONSERVATOR Q OTHER: SIGNER IS REPRESENTING: NA NM OF PERSON(S)OR D IMJES) SIGNER(S)OTHERTHAN NWEU ABOVE ILLEGIBLE NOTARY SEAL DECLARATION GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT WHICH THIS STATEMENT IS ATTACHED, READS AS FOLLOWS: NAME OF NOTARY: COUNTY WHERE BOND IS FILED: DATE COMMISSION EXPIRES: (2(,TU c) PLACE OF EXECUTION OF THIS DECLARATION: IRVINE DATE:/ Z- 3 D 2-- COMMISSION NUMBER: 'z z AUTHORIZED MANUFACTURES CODE:_"//�I2-Z SOUTHLAlsm TITLE TITLt OFFICER MEETING DATE: November 18, 2002 DEPARTMENT ID NUMBER: PL02-46 Environmental Status: The subject request is exempt from review under the California Environmental Quality Act, pursuant to Section 15061 (b) (3). Attachment (s): City Clerk's Page Number No. Description 1. Declaration of Conditions, Covenants and Restrictions RCA Authors: RS PL02-46 .3- October 23,2002 9:17 AM Recording requested by ) \ And when recorded mail to: ) .2oo0"44Mn 5fwf ) Hvnf lnjion 3Sa A C4 9 d 6` JP (Space above for Recorders's Use) This document is exempt from recording Fees pursuant to Government Code Section 27383 DECLARATION OF CONDITIONS,COVENANTS AND RESTRICTIONS FOR PROPERTY (RE-SALE RESTRICTIONS) This Declaration of Conditions,Covenants and Restrictions for Property(the "Declaration")is made as of ov 6 2002,by and between the CITY OF HUNTINGTON BEACH,a California municipal corporation("City"or"Covenantee")and SOUTHRIDGE HOMES,A California General Partnership(the"Covenantor"). 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". Escrows on Property in Covenantor name to close on or before September 25,2002. B. On November 20,2001,the City Council approved Tentative Tract Map Number 15964. 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 Department of Planning. The City further required that the.plan or declaration shall provide 15% of the total number of units to be affordable housing for households earning less than 120%of the Orange County Median for a period of thirty 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 Property,or any part thereof,that the property located at 19172 B and 19172C,Holly Street which are two condominiums across the street from the tract site,shall be designated as affordable and shall be held subject to this Declaration for thirty(30)years from the date of Notice of Completion of units built in Tract Number 15964(the"Expiration Date")as follows: (a) The affordable units shall only be owned and occupied by Covenantor or by"Moderate Income Households." Moderate Income Households shall mean persons or families earning not more than One Hundred Twenty Percent(120%)or less of the Orange County median income,adjusted for appropriate family size,as published by the United States---- . 1 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 units shall only be sold at an"Affordable Housing Cost" to Moderate Income Households. Affordable Housing Cost shall mean the permitted gross sales prices of the units 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 covenant contained in this Section 1 shall run with the affordable units and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer of Affordable Units. No transfer of the affordable units shall occur until the City determines(a)that the proposed purchasers intend to occupy the affordable units as the proposed purchaser's principal residence,(b)that the proposed purchasers are Moderate Income Households,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 units, Covenantor shall send written notice thereof to the City at the following address: City of Huntington Beach 2000 Main Street Huntington Beach,California 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 purchaser is aware that the purchaser buying the affordable unit may only sell the affordable 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. Covenanter 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 understands 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 2 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. Convenantor's Initials The covenant contained in this Section 2 shall run with the affordable units and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. 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,creed, age,class,income,religion,sex,sexual orientationmarital status,national origin or ancestry in the sale, lease,sublease,transfer,use,occupancy,tenure,or enjoyment of the affordable unit,nor shall Covenantor itself or any person claiming under or through it,establish or permit any such practice or practices of discrimination or segregation with reference to the selection,location,number,use or occupancy of tenants, lessees,subtenants,sublessees,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,marital status,national origin,or ancestry of any person. All such deeds,leases 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 or persons on account of. . race,color,religion,sex,marital status,national origin or ancestry in the sale,lease,sublease,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, lessees,subtenants,sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The Lessee herein covenants by and for himself and herself,his or her heirs,executors,administrators and assigns,and all persons claiming under or through him or her,that this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race,color, religion,sex,marital.status,ancestry or national origin in the leasing,subleasing,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,sub- lessees,subtenants,or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation ot;any person,or group of persons on account of race,color,religion,sex,marital status,ancestry or national origin,in the sale,lease,sublease,transfer,use,occupancy,tenure or enjoyment of the premises, 3 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,lessees,subtenants,sublessee or vendee of the premises." 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions,restriction,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 of security interest. 5. Covenants for Benefit of City. All covenants without regard to technical classification or designation shall be binding for the benefit of Covenantee and such convenants 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 interests therein to which such covenants relate. The Covenantee,in the event of any breach of such convenants,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. 6. Counterparts. This Agreement maybe executed in a number of counterparts, each of which shall be an original,but all of which shall constitute one and same document 7. 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 deemed 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. 8. Subordination to Trust Deeds. Notwithstanding any provision of this Declaration to the contrary,the covenants and agreements established in this Declaration at all times shall be junior and subordinate to the lien of the first lender's deed of trust,or such lender's assignee or successor in interest recorded by or on behalf of any lender to secure a loan,including without limitation any deed of trust recorded concurrently herewith. City agrees at no expense to City,to execute such documents as may be reasonably requested by Covenantor,and successor or assign to Covenantor's right,title and interest in and to all or any portion of the property,or any lender of any such person subordinating City's rights and interest under this Declaration to the lien of any trust deed recorded or to be recorded by a lender securing a loan of the property. Covenantor,Covenantor's successor or assign,or the benefitted lender shall be responsible for preparing the document(s)creating such subordination of City's interest. . IN WITNESS WHEREOF,City 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. 4 CITY/COVE/ E: _ CITY OF t�.�n APPROVED AS TO FORM: A municipal corporation l N-4-L � lb ayor 4A ey ATTEST: REVIEWED AND APPROVED: City Clerk City Actin or INITlA D AND APPROVED: .,Plkmfng.Direct.or COVENANTOR: SOUTHRIDGE HOMES a California General Partnership 9 By: R. eddo,Partner 4 5 EXHIBTT"A" The Property shall mean and refer to that certain real properties located in the City of Huntington Beach,County of Orange,State of California,more particularly descntied as: Unit 15,Lot 1 of Tract 14347 as per map recorded in Book 689, Pages 35 and 36 of miscellaneous maps in the office of the county recorder of said county,and commonly known as 19172-B Holly Street,Huntington Beach,California 92648. Unit 14,Lot 1 of Tract 14347 as per map recorded in Book 689, Pages 35 and 36 of-miscellaneous maps in the office of the county recorder of said county and commonly known as 19172-C Holly Street,Huntington Beach,California 92648. 6 • CALTF01ZNLk. .kT-1,PTJ RPO* ACSNOMXDG111MNT - 14 State of County of l�f�l�� before me,on personally appeared personally known to me - OR - [] 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 ANGEI.A ERICKSON entity upon behalf of which the person(s) acted, COMMISSION#1278510 executed the instrument. c Notary Public•California ORANGE COUNTY o My Commission Expires WITNESS my hand and,official seal OCTOBER 25,2004 Though the data below is not required by lax, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT 0 1NDIVJDUAL 0 CORPORATE OFFICER TIII F(S)) TALE OR TYPE OF DOCUWWr NUMBER OF PAGES: 0 PARTNER(S) 0 11MITED 0 GENERAL. DATE OF DOCC.TIv=: 0. ATTORNEY-IN-FACT 0 TRUSTEE(S) 0 GUARDIAN/CONSERVATOR 0 OTIIER: SIGNER IS REPRESENTING: NAME OF PERSON(S)OR EMITIYP.S) SIGNER(S)OTHER TRAM NM,1aIl ABOVE CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California Ss. County of �Qf On so VW before me, t d j Date Nam Titl f Officer(e.g.,"lane Doe,Notary Public] personally appeared r� � / ��`(�1Ae A Naa�me(//)of Signer(s�� Ppersonally known to me ❑ proved to me on the basis of satisfactory evidence to be the personX whose name )s re subscribed to the within • trument and acknowledged to me tha sh hey executed the same in his e)rNfr aut ized capacityrtmL and t by hi er heir signatureN on the instrument the pers or the entity upon behalf of which the person KELLY LOUISE MANDIC acted, executed the instrument. Commission# 1372899 Z .� Notary Public California > WITNESS my hand and official seal. Orange County My Comm.Expires Sep 1,2006 Signature af.Notary Public: OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document n Title or Type of Doc e t !S T dQ .� Title or n9 r ,. t"40 e Document Date: Number of Pages: Signer(s)Other Than Named Above:_ r.J n a t 9- Capacity(ies) Claimed by Signer Signer's Name:. Cam• �� ❑ Individual �/� Top of thumb here Corporate Officer—TitleX: A Y Y ❑ Partner—❑ Limited ❑General ❑ Attorney-in-Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: s Signer Is Representing: 0 1999 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402•www.nationainotary.org Prod.No.5907 Reorder:Call Toll-Free 1-800-876-6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of . . r T_ � ' d �e i� L nr�; On NU �before me, /'. Date + Name 445 Title%f Olper(e.g.,"Jane Doe,Notary Public) Gr personally appeared / /l Name(s)ofSigner(s) personally known to me �s ❑ proved to me on the basis of satisfactory evidence ' to be the person whose namelq is re subscribed to the within ' trument and acknowledged to me that she hey executed the same in hi er )r authorized capacity4ee4� and th by hi er heir signatureli(w4 on the instrument the pers or the entity upon behalf of which the personj*., I KELLY LOUISE MANDIC acted, executed the instrument. Commission ti 1372899 1 •.� Notary Public California y WITNESS my hand and official seal. I ..; Orange County My Comm.Expires Sept.2006 -Signature of Notary Public - - - OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Q� Title or Ty e of Document: k C c: r is /A f�L�r9 40t12,1 i j�t'I � t� A- 191?a 4oill Sth44f HB Document Date: i t-i s-oI Number of Pages: Signer(s)Other Than Named Above: 1)s b6l f C n o k Capacity(ies) Claimed by Signer Signer's Name:(=0nn&f Bitocla-,t ❑ Individual Top of thumb here tX Corporate Officer—Title(s): CAI C I rk ❑ Partner—❑ Limited ❑General IL ❑ Attorney-in-Fact 1 ❑ Trustee ❑ Guardian or Conservator ❑ Other: 77 TugE�cy I Signer Is Representing: &j✓ ,,f 0 1999 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313.2402•www.nationainotary.org Prod.No.5907 Reorder.Cell Toll-Free 1-60D-676-6627 CITY OF HUNTINGT'ON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY.CLERK November 26, 2002 County Clerk-Recorder P.O. Box 238 Santa Ana, CA 92702 Enclosed please find Declaration of Conditions, Restrictions For Property for Tract No. 15964 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 acceptance when recorded to this office in the enclosed self-addressed stamped envelope. Connie Brockway, CMC City Clerk Enclosures Tract No. 15964—Southridge Homes_ —n/o Clay Avenue Property located at 19172 B and 19172 Holly Street. g:/followup/tract/acceptpublicimp-recorder.doc (Telephoned 714-536-5227)