HomeMy WebLinkAboutAffordable Housing Agreement between the City and Team Delaw Recorded in official Records, Orange County `
Tom Daly, Clerk-Recorder
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2005000216450 09:13am 03123105 f
RECORDING REQUESTED BY I 111 130 D01 s�'
AND WHEN RECORDED MAIL TO: o.00 -no o.ao o.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 1
parsuant to Government Code Section 273Q3.
r
DECLARATION OF CONDITIONS, COVENANTS Y �I r
AND RESTRICTIONS FOR PROPERTY
(RESALE RESTRICTIONS)
This Declaration Of Conditions, Covenants And Restrictions For Property (the
"Declaration") is made as of Jam, WZjl- .7- , 200_5- , by and between
TEAM DELAWARE, LLC (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; ti_c.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 February 10, 2004 the City Council of the City of Huntington Beach approved
Final Tract Map Number 16573. The City imposed conditions of approval on the Project,
requiring Covenantor to submit an Affordable Housing Agrecment Plata (the "Declaration") for
review and approval by the- Planning Department. The City further required that the plan or
declaration shall provide 20% of the total number of units or 1 unit to be affordable housing for
households earning less than 80% of the Orange County Median Income 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 affordable unit, or any part thereof,
that the property located at 2340 Delaware Street, Huntington Beach, California 92648, which
consists of 1 unit, shall be designated as affordable and shall be held subject to this Declaration
GAAGREEMl12004\aff6rd house 04\2340Delaware-doc..doc 1
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Council/Agency Meeting Held:
Deferred/Continued to:
naily Approved LJ Denied �City 2�k's)Oignat®r
CouncilDepartment ID Number: P Meeting Date: March 7, 2005 7 L05-1 0 1
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR�TY QOJUNCIL MEMBERS
SUBMITTED BY: PEN ELOP CULB'HETH-GRAFF, City Administr for
PREPARED BY: HOWARD ZELEFSKY, Director of Planning
SUBJECT: APPROVE AFFORDABLE HOUSING AGREEMENT (TEAM..",,.
DELAWARE, LLC)
Statement of ISSUO,Funding Source,Recommen pd Action,Aiternative Action(s),Analysis, Environmental Status,Attachment(s)
Statement of Issue: Transmitted for your consideration is a request by Team Delaware,
LLC to approve an affordable housing agreement for a six unit condominium project located
on the east side of Delaware Street, south of Yorktown Avenue. The proposed project was
approved with a density bonus for one unit. The agreement restricts one condominium unit
to a low income household for a period of 30 years, consistent with the City's density bonus
provisions, 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 Team Delaware, LLC, 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 Team Delaware, LLC, and direct staff accordingly."
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: March 7, 2005 DEPARTMENT ID NUMBER: PL05-1 0
Analysis:
A. PROJECT PROPOSAL:
Applicant: Team Delaware, LLC, 800 N. Haven Ave., Ste. 260, Ontario, CA 91764
Location: East side of Delaware Street, south of Yorktown
The affordable housing agreement will restrict one on-site two-bedroom unit to a low income
household for a period of 30 years.
The Planning Commission approved the Team Delaware, LLC project on February 10, 2004.
The project consists of six condominium units on a 17,152 square foot site and includes one
density bonus unit. The project offers two floor plans, which include a minimum of two
bedrooms and each has a two-car garage.
B. ANALYSIS:
Pursuant to the City's affordable housing policy in effect at the time of this project's approval,
the equivalent of 10 percent of the units were required to be affordable to median income
households. However, this project included a density bonus request for one unit. The City's
density bonus requirements stipulate that projects have to provide a lower affordability level.
Therefore, pursuant to the Huntington Beach Zoning and Subdivision Ordinance, this project
was required to provide one low income unit for a period of 30 years.
As a low income unit it will be affordable to households earning less than 80 percent of the
Orange County median income. For a four-person household this is the equivalent of
$57,500 in annual gross income. The maximum sales price of this unit has not been
determined as of this date. However, final sale price will be determined by the City of
Huntington Beach.
The City Attorney's Office has prepared the standard affordable housing agreement, which
has been signed by the applicant, and 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).
7
PL05-1 OCovenant'ro 6573 -2- 2114Y2005 4:55 PM
P
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: March 7, 2005 DEPARTMENT ID NUMBER: PL05-10
Attachment s
° . • - e - r � - o 0
1. Affordable Housing A reernent
RCA Author: Medel/MBB
PL05-10CovenantTr16573 -3- 2/14/2005 4:55 PM
ATTACHMENT 1
March 16, 2005
Tom Daly
O. C. Clerk-Recorder
P.O. Box 238
Santa Ana, CA 92702-0238
Enclosed please find the DECLARATION OF CONDITIONS, COVENANTS AND
RESTRICTIONS to be recorded and returned to the City of Huntington Beach, Office of
the City Clerk, 2000 Main Street, Huntington Beach, CA 92648.
Please return a conformed copy of the CC&R's when recorded to this office in the
enclosed self-addressed stamped envelope.
Joan L. Flynn
City Clerk
Enclosures
Re: CC&R—Team Delaware, LLC—Affordable Housing—Delaware&Yorktown
G:/followup/deedsideedletter2OO2,doc
Procedure#18
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
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 273-33.
DECLARATION OF CONDITIONS, COVENANTS
AND RESTRICTIONS FOR PROPERTY F
(RESALE RESTRICTIONS)
This Declaration Of Conditions, Covenants And Restrictions For Property (the
"Declaration") is made as of fY)q,� �- , 200-�5- by and between
TEAM DELAWARE, LLC (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 February 10, 2004 the City Council of the City of Huntington Beach approved
Final Tract Map Number 16573. The 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 20% of the total number of units or 1 unit to be affordable housing for
households earning less than 80% of the Orange County Median Income 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:
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 located at 2340 Delaware Street, Huntington Beach, California 92648, which
consists of 1 unit, shall be designated as affordable and shall be held subject to this Declaration
GAAGREEMT120041afford house 041234ODelaware-doc-doc l
for thirty years from the date of Notice of Completion of units built in Tract Number 16573 as
follows:
(a) Each affordable unit shall only be owned and occupied by Covenantor or
by "Low Income Households", which shall mean persons or families earning not more than
eighty percent (80%) 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
Low 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 thirty 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 Low 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
GAAGREEMT�2004\afford house 04\2340Delaware-doc..doe 2
purchaser is aware that the purchaser buying the affordable unit may only sell the unit at an
Affordable Housing Cost to a Low 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 Low 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
selection, location, number, use or occupancy of tenants, subtenants, or vendees in the affordable
unit.
G:\AGREEMT\2004\afford house 04\2340Delaware-doc..doc 3
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 leer, 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; fancily 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."
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
G:\AGREEMT1L004\afford house 04\2340Delaware-doc..doc 4
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 Jurats to Follow]
GA\AGREEMT\2004\afford house 04\2340Delaware-doc..doc 5
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:
CITY OF HUNTINGTON BEACH,
L L C , a a California municipal corporation
Californ' LL <—
By: UL-Aayor
print name
ITS: (circle one)Chairma reside ice President C It Cler'
M�tNFkCatNCt VKSrAt r y
AN
By. '� THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a public
print nilme body corporate and politic
ITS: (circle one) Secretary/Chief Financial Officer/Asst.
ecretary-Treasure M#'"AGIN4 wems{Q_
By:
eputy Executive Director
APPROVED AS TO FORM:
DD
-7 N
City Attorney/ Agency Counsel
INITIAT AND APPROVED:
Planning Director
REVIEWED AND APPROVED:
ity Administrator
GAAGREEMT\2004\aff6rd house 04\2340Delaware-doc..doc 6
ALL-PURPOSE ACKNOWLEDGMENT
State of California
SS.
County of Orange
On before me, Robin Roberts
DATE) (NOTARY)
personally appeared Mayor Jill Hardy and Joan L. Flynn
SIGNER(S)
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
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the
person(s) acted, executed the instrument.
ROBIN ROBERTS WITNESS my hand and official seal.
N Comm.#1552700 rn
�® NOTARY PUBLIC-CALIFORNIA N
Onn;e County i
y._ My Comm.Expires Feb.11,2009 -
NOTARY'S SIGNATURE
OPTIONAL INFORMATION
The information below is not required by law. However, it could prevent fraudulent attachment of this acknowl-
edgment to an unauthorized document.
CAPACITY CLAIMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
❑ CORPORATE OFFICER Declaration of
CC
TITLE OR TYPE OF DOCUMENT
TITLE(S)
❑ PARTNER(S) Eight ( 8)
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR March 7, 2005
OTHER: DATE OF DOCUMENT
®
Jill Hardy, Mayor
-Joan L. Flynn, City. Clerk OTHER
SIGNER IS REPRESENTING: RIGHT THUMBPRINT
NAME OF PERSON(S)OR ENTITY(IES)
OF e
- ( itT—of Beach SIGNER L
a
APA 5/99 VALLEY-SIERRA, 800-362-3369
STATE OF CALIFORNIA )
ss.
COUNTY OF ORANGE )
On It, I N ►'' , 200 'Y , before me, the undersigned, a Notary Public in and
for said State, ersonally appeared ,(��// Fox 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 t t by his/her signature on the instrument the persons or the entities upon behalf of
which the'pers n acted executed the instrument.
I ESS my hand and official seal.
Sign' to 'otary Public
(SEAL)
MICHAEL T.WATKINS
Commission 1361563
Notary Public-California z
Loa Angeles County
MY Comm.6rpires Jun 20,7ow
STATE OF CALIFORNIA )
ss.
COUNTY OF
On , 200 befq� , the under igned, a ry Public in and
-- -for—said- State,- personally appeared - ✓ir/ lneu/ (/N c� e iC--,_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 whi t person acted executed the instrument.
ITN my hand a d off ial al.
GLENDA PARTRIDGE
Z Commission# 1403606
z amyComm.Expire
Notary Public-CaliforniaLos Angeles County
Signate . Notary PublicsMor20.2007
(SEAL)
G:\AGREEM'P,2004\afford house 04\2340Deiaware-doc-doc 7
"EXHIBIT A"
UNIT NO. 5 WILL BE DESIGNATED AS THE AFFORDABLE UNIT LOCATED AT
THE NORTH 66 FEET OF BLOCK 2305 OF THE "EAST SIDE VILLA TRACT", IN
THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 4, PAGE 85 OF
MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY.
for thirty years from the date of Notice of Completion of units built in Tract Number 16573 as
follows:
(a) Each affordable unit shall only be owned and occupied by Covenantor or
by "Low Income Households", which shall mean persons or families earning not more than
eighty percent (80%) 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
Low 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 thirty 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 Low 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
GAIAGAEENITC0041afford house 0412340E7elaware-doc..doc 2
purchaser is aware that the purchaser buying the affordable unit may only sell the unit at an
Affordable Housing Cost to a Low 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. Covenanter 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 Low 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
selection, location, number, use or occupancy of tenants, subtenants, or vendees in the affordable
unit.
GAIAGREEM7120041afford house 0412340Delaware-doc..doc 3
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."
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
GAAGREEMT120041afford house 04U340Delaware-doc..doc 4
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 Jurats to Follow]
GAIAGREEMIR20041afford house 0412340Delaware-doc._doc 5
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:
CITY OF HUNTINGTON BEACH,
-T 1-�'� , a a California municipal corporation
Califo LL L
By ayor
print name
ITS: (circle one)Chairma reside ice President
4i 4 m City Cier
AN
By: THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a public
print imic body corporate and politic
ITS: (circle one)Secretary/Chief Financial Officer/Asst.
ecretary-Treasure th#L"ACON4 &W M &tV—
By:
eputy Executive Director
APPROVED AS TO FORM:
City Attorney/Agency Counsel
INITIAT AND APPROVED:
Plannind Director
REVIEWED AND APPROVED:
ity Administrator
G1ACrREEMT\20041afford house 041234017elaware-doc..doc 6
ALL-PURPOSE ACKNOWLEDGMENT
State of California
SS.
County of orange
On March 14 nnc before me, Robin Roberts
DATE) (NOTARY)
personally appeared Mayor Jill Hardy and Joan L. Flynn
SIGNER(S)
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
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the
person(s) acted, executed the instrument.
ROBIN ROBERTS WITNESS my hand and official seal.
Comm.#1552700
-s NOTARY PUBLIC-GALiFORWA �}
Orznle Gounly -/
fIr Gamm.E%piles Feh.1�,2449^„
NOTARY'S SIGNATURE
OPTIONAL INFORMATION
The information below is not required by law. However, it could prevent fraudulent attachment of this acknowl-
edgment to an unauthorized document.
CAPACITY CLAIMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
❑ CORPORATE OFFICER Declaration of dC &.'R I s
THE OR TYPE OF DOCUMENT
TITLE(S)
❑ PARTNER(S) Eight (8)
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR March 7, 2005
DATE OF DOCUMENT
® OTHER:
Jill Hardy, Mayor
Joan L. Flynn, City Clerk OTHER
v
SIGNER IS REPRESENTING: RIGHT THUMBPRINT
NAME OF PERSON(S)OR ENTITY(IES) OF s
E
_City of H� __unt-i ncrtan Reach SIGNER r
0
a
12
APA 5/99 VALLEY-SIERRA, 800-362-3369
STATE OF CALIFORNIA )
ss.
COUNTY OF ORANGE )
On 200 , before me, the undersigned, a Notary Public in and
for said State, ersonally appeared 4,11 Avx 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 t by his/her signature on the instrument the persons or the entities upon behalf of
whic/JIESS
n acted executed the instrument.
my hand and official seal.
Sig otary Public
(SEAL)
MICHMLT.WATMNS
LitNatary Public-Caiifforais
Loa Angeles Couft
W Cai m Expires Jun Zo,2ow
STATE OF CALIFORNIA )
} ss.
COUNTY OF
On , 200 bef , the under&'fined, a y Public in and
for said State, personally appeared � tie� 6 1 ft/ 68 e ie-,_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 Mon behalf of whi t person acted executed the instrument.
ITN my hand d off ial al.
GLENDA PARTRIDGE
Commission# ]403606
zW
Notary Public-California zZ
Los Angeles CountySignet e , Notary Public MyComm.ExpiresMoM,20D7
(SEAL)
GAAGREEW20041afford house 04\2340Delaware-doc..doo 7
i
"EXHIBIT A"
UNIT NO. 5 WILL BE DESIGNATED AS THE AFFORDABLE UNIT LOCATED AT
THE NORTH 66 FEET OF BLOCK 2305 OF THE "EAST SIDE VILLA TRACT", IN
THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 4, PAGE 85 OF
MISCELLANEOUS MAPS,RECORDS OF SAID COUNTY.
Q
RGA KUUTING SHEET
INITIATING DEPARTMENT. Planning
SUBJECT: Affordable Housing Agreement for Team Delaware, LLC
COUNCIL IVIETIN D ,TEo March 7, 2005
RCA ATTANfENTS STATUS
Ordinance wlexhibits & legislative draft if ap licable Not Applicable
O
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not licable
Contract/Agreement (wlexhibits if applicable)
(Signed in full Py the City Attorney) Attached
Subleases, Third Party Agreements, etc.
(Approved as to form b Ci Attorm Not Applicable
Certificates of Insurance (Approved by the City Attome Not Applicable
Financial Impact Statement (Unbud et, over $5,000) Not Applicable
Bonds (if.applicable) Not Applicable
Staff Report (If applicable) Not Apolicable
Commission, Board or Committee Report (If applicable) Not'Applicable
Find in s/Conditions for Approval and/or Denial Not 8pplicabie
EX
P ;ANATIO S I G ATTA HM NTS
REVIEWED. RETURNED FORWARD
Administrative Staff:
Assistant City Administrator initial
City Administrator initial
Ci Clerk
ATION OR RETURN OF ITEM:
RCA Author: HZ/SHfMBBIRM