HomeMy WebLinkAboutNATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA ("NATIONAL CORE")INSURANCE NOT RE001RED
MA, K E4,V PROCER)
CLERK OF COUNCIL
a� FEB 0 7 2019
RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
'PscovJ 13 City of Santa Ana
Cleric of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
A-2019-028
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
NO FEE
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201900009257911:39 am 03/25119
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Free Recording pursuant to
Government Code 27383
DENSITY BONUS HOUSING AGREEMENT
This DENSITY BONUS HOUSING AGREEMENT ("Agreement"), made and entered
into this 5th day of February, 2019 ("Effective Date"), by and between the City of Santa Ana, a
charter city and municipal corporation of the State of California ("City"), and National Community
Renaissance of California, a California nonprofit public benefit corporation, or its assignee,
("Developer"). City and Developer are sometimes referred to collectively as the "Parties" and
individually as a "Party."
RECITALS
A. Santa Ana United Methodist Church is the owner of certain property located within
the City of Santa Ana, County of Orange, State of California, commonly known as 609 North
Spurgeon Street, Santa Ana, California, and legally described as set forth in Exhibit A attached
hereto and incorporated herein by this reference as if set forth in full ("Property").
B. Developer has entered into an agreement for a long-term ground lease with property
owner.
C. Developer is proposing to develop a ninety-tbree (93) unit affordable apartment
complex on the Property as more particularly set forth in Density Bonus Application No. 2018-01
("Project"). Without the density bonuses, Developer would only be permitted to build fifty-one
51 units on the Property.
D. Santa Ana Municipal Code sections 41-1600, et seg. ("City Density Bonus for
Affordable Housing"), and California Government Code sections 65915, et seq. ("State Density
Bonus Law"), set forth a process to provide increased residential densities to property owners who
guarantee that a portion of their residential development will be available to low income, very low-
income, or senior (also known as "qualified") households. These regulations are intended to
materially assist the housing industry in providing adequate and affordable housing for all
economic segments of the community and to provide a balance of housing opportunities for very
low-income, low income and senior households throughout the city.
E. Additionally, the City's Housing Opportunity Ordinance provides inclusionary
housing development incentives forproduction of affordable units on-site. Specifically, Santa Ana
Municipal Code section 41-1904.1 includes a density bonus concession up to a maximum of thirty-
five percent (35%) to provide affordable housing options for residents of the City of Santa Ana,
F. For the purpose of implementing State Density Bonus Law, City Density Bonus for
Affordable Housing, and City Housing Opportunity Ordinance concessions in response to
Developer's request for two (2) density bonuses, as well as additional concessions and incentives,
Developer has agreed to restrict ninety-two (92) Units in the Project, except for one (1) manager's
unit, to Eligible Households, which includes Very Low Income and Low Income Tenants.
G. The Project complies with the affordable housing requirements set forth in the State
Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity
Ordinance. For purposes of this Agreement, the Project shall be the "housing development" as
defined in the State Density Bonus Law.
H. In light of the purpose of the State Density Bonus Law, City Density Bonus for
Affordable Housing, and City Housing Opportunity Ordinance, and the express provisions of
Government Code section 65915(n), as well as Santa Ana Municipal Code section 41-1904.1, the
City has determined to grant Developer's application for density bonuses and related concessions
and incentives.
I. This Agreement, and the exhibits attached hereto and incorporated herein by
reference, is intended to set forth the terms and conditions for the implementation of the Project's
requirement to provide affordable housing units in exchange for receiving the Density Bonus Units
and additional concessions and incentives set forth herein.
J. The Developer has paid the City's Density Bonus Setup fee in the amount of
$46,705.86.
NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein
by this reference, and of the mutual covenants contained and for other good and valuable
consideration, the receipt and sufficiency of which is hereby aclmowledged, the parties agree as
follows:
DEFINITIONS AND EXHIBITS
1.1 Definitions. In addition to the terms that may be defined elsewhere in this
Agreement, the following terms when used in this Agreement shall be defined as follows:
1.1.1 "Adjusted for family size appropriate to the unit" shall have the
meaning set forth in Section 42(g)(2)(C)(i) and (ii) of the Internal Revenue Code of 1986, as
amended from time to time, in administering the low income housing tax credit program.
1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be
charged to and paid by an Eligible Household for the Affordable Units, as required by the terms
of this Agreement.
1.1.3 "Affordable Rent Schedule" means a rent schedule established as of the
date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits)
for the required number/percentage of the total number of units in the Project which are to be
rented or available for rent to very low or low income tenants. Said Affordable Rent Schedule
shall be established at the time of the issuance of the occupancy permit ("Initial Rent Schedule")
and shall be created in accordance with the Orange County, California Primary Metropolitan
Statistical Area ("PMSA") as published by the United States Department of Housing and Urban
Development ("HUD"), adjusted for family size appropriate to the unit.
1.1.4 "Affordable Units" means ninety-two (92) units which shall be comprised
of thirty 30 one (1) bedroom Units, forty-one 41 two (2) bedroom Units, and twenty-two (22)
three (3) bedroom Units of which one (1) will be an Unrestricted Unit (i.e. one (1) manager's unit).
1.1.5 "Agreement" means this Density Bonus Housing Agreement.
1.1.6 "Base Units" means the fifty-one (51) Units that Developer would be
authorized to develop on the Property without application of the State Density Bonus Law and
City Housing Opportunity Ordinance density bonus.
1.1.7 "City" means the City of Santa Ana, California
1.1.8 "City Council" means the City Council of the City of Santa Ana.
1.1.9 "City Attorney" means the City Attorney for the City of Santa Ana.
1.1.10 "City Manager" means the City Manager for the City of Santa Ana.
1.1.11 "City's Planning Commission" means the Planning Commission for the
City of Santa Ana.
1.1.12 "Density Bonus Housing Agreement Term" means the period during
which this Agreement shall be in full force and effect, as provided for in Section 6.1 below.
1.1.13 "Density Bonus Units" means the forty-two (42) Units in addition to the
Base Units that Developer shall develop pursuant to the density allowance in the State Density
Bonus Law, the City Housing Opportunity Ordinance density bonus, and the terms and conditions
of this Agreement, of which Developer would not be entitled to develop without providing the
Affordable Units.
1.1.14 "Developer" means National Community Renaissance of California, and
its permitted successors and assigns to all or any part of the Property.
1.1.15 "Effective Date" means the date the City Council of City approves this
Agreement and from then on this Agreement shall be in full force and effect.
1.1.16 "Eligible Household" means a Household whose income does not exceed
the qualifying limit for a "very low income tenant" or "lower income tenant" as defined herein,
which means persons and families whose income does not exceed the qualifying limit for very low
income or lower income households.
1.1.17 "Household" means all persons residing in a Unit.
1.1.18 "Low Income Tenant" means persons and families whose income does not
exceed eighty percent (80%) area median income for the Orange County, California PMSA,
adjusted for household size appropriate to the unit, as published by the California Tax Credit
Allocation Committee.
1.1.19 "Median Income" means the Orange County, California area median
income, adjusted for family size appropriate to the unit, as periodically published by the California
Tax Credit Allocation Committee.
1.1.20 "Monthly Rent" means the total of monthly payments for (a) use and
occupancy of each Affordable Unit and land and facilities associated therewith, (b) any separately
charged fees or service charges assessed by Developer which are required of all tenants, other than
security deposits, application fees or credit check fees (c) a reasonable allowance for an adequate
level of service of utilities not included in (a) or (b) above, including garbage collection, sewer,
water, electricity, gas and other heating, cooking and refrigeration fuels, but not including
telephone or cable service, and (d) possessory interest taxes or other fees or charges assessed for
use of the land and facilities associated therewith by a public or private entity other than Developer.
In the event that certain utility charges are paid by the landlord rather than the tenant, no utility
allowance shall be deducted from the rent for that type of utility charge.
1.1.21 "Project" means that certain residential development as more particularly
described in Recital C and Section 2 of this Agreement.
1.1.22 "Property" means that certain real property more particularly described in
the legal description in Exhibit A and improvements thereon.
1.1.23 "State Density Bonus Law" means Government Code sections 65915, et
seq., as they exist on the Effective Date.
1.1.24 "Unit" means a residential dwelling unit within the Project to be
constructed by Developer pursuant to this Agreement.
1.1.25 "Unrestricted Units" means the Units within the Project to be constructed
by Developer to a Household without restriction (i.e. —one (1) manager's unit).
1.1.26 "Very Low Income Tenant" means persons and families whose income
does not exceed fifty (50%) of the area median income for the Orange County, California PMSA,
adjusted for household size, as published by the California Tax Credit Allocation Committee.
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1.2 Exhibits. The following documents are attached to, and by this reference made a
part of, this Agreement:
1.2.1 Exhibit A — Legal Description of the Property
1.2.2 Exhibit B — Tenant Verification
1.2.3 Exhibit C — Resolution No. 2019 -XX
2. DEVELOPMENT OF THE PROPERTY
2.1 Project. Developer shall develop, operate, and maintain the Property as a ninety-
three 93 Unit affordable residential rental community, with ninety-two (92) Affordable Units and
one 1 Unrestricted Unit.
2.2 Density Bonus. The Project shall have ninety-three (93) Units, to be rented,
occupied, operated, and maintained pursuant to the terms and conditions of this Agreement.
Developer understands and agrees that Developer is utilizing a thirty-five percent (35%) density
bonus increase provided by the State Density Bonus Law (51 Base Units x 35% =18 State Density
Bonus Units) for a total of 69 units, as well as a thirty-five percent (35%) density bonus provided
by the City's Housing Opportunity Ordinance (69 Units x 35% = 24 City Density Bonus Units).
Developer shall not construct or develop, or otherwise claim a right to construct or develop, more
than forty-two (42) State and/or City Density Bonus Units on the Property.
2.3 Development Concessions and Incentives. As set forth in the City entitlements,
Developer petitioned for and was granted the following concessions and incentives as part of the
approval of Density Bonus Agreement No. 2019-01 for the Project:
2.3.1Thearp king requirements for the Project shall be reduced in accordance with
Government Code Section 65915(p)(3)(A), such that the total of all parking spaces required for
the Project shall not exceed 92 spaces.
2.3.2The development standards for this Project shall be waived in accordance with
Government Code Section 65915(e)(1), such that the Hybrid Courtyard Building Type shall be a
permitted building type for the project.
2.3.3The building setback requirements for the Project shall be reduced in
accordance with Government Code Section 65915 (d)(1), such that the minimum required front
yard setback shall be 0'-0" feet.
2.3.4The maximum allowable encroachments into required setbacks for the Project
shall be increased in accordance with Government Code Section 65915 (d)(1), such that the
maximum allowable encroachment shall not exceed 6'-0" into required setbacks.
2.4 In exercising the rights granted to the developer under AB 744 the Parkin
requirements for the Project shall be reduced in accordance with Government Code Section
65915(p)(3)(A), such that the total of all parking spaces required for the Project shall not exceed
92 spaces.
2.5 No Further Concessions or Incentives. Developer acknowledges and agrees that
the waivers and incentives set forth in section 2.3 above fully satisfy any duty City may have under
the Santa Ana Municipal Code, the Density Bonus Law, or any other law or regulation applicable
to the Project, to provide any development incentive or to waive any building, zoning, or other
requirement. By this Agreement, Developer releases any and all claims Developer may have
against City in any way relating to or arising from City's obligation to waive requirements of or
provide development incentives pursuant to any state, federal, or local law, rule, or regulation
applicable to the Project.
2.6 Unrestricted Unit. The Project, for purposes of this Agreement, may have no more
than one 1 Unrestricted Unit (i.e. —one (1) manager's unit) with unit sizes as maybe determined
by the Developer.
2.7 Affordable Units. The Project, for purposes of this Agreement, shall have no less
than ninety-two (92) Units designated as Affordable Units pursuant to the terms and conditions of
this Agreement. The Affordable Units shall be consistent with all City approvals, and shall be
located throughout the Project.
2.8 Minimum Development Standards for Affordable Units. The Affordable Units
shall be constructed with the same exterior appearance and interior features, fixtures, and
amenities, and shall use the same type and quality of materials as provided for the Unrestricted
Unit.
2.9 Permits and Processing; Compliance with Laws. Developer at its sole cost and
expense shall secure or cause to be secured any and all permits that may be required by City or
any other federal, state, or local governmental entity having or claiming jurisdiction over the
Property or Project. Upon securing any and all permits, Developer shall carry out and perform the
development, operation, and maintenance of the Project in conformity with all applicable federal,
state, and local laws and regulations, and all conditions of approval issued by the City Council and
City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the
City to determine compliance with this Agreement. If any changes to the Project shall materially
alter the ability of Developer to comply with any terms of this Agreement in City's sole
determination, then City shall have the option to declare this Agreement null and void in its sole
discretion.
2.10 Relocation Prior to Development of Project. If relocation is required prior to the
completion of development of the Project, Developer shall have the sole and exclusive
responsibility for providing relocation assistance and paying all relocation costs as maybe required
to comply with applicable federal and state laws and regulations. In addition to any other indemnity
provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of
Cit)'s choosing and the consent of Developer, which shall not be unreasonably withheld, and
which may be joint defense counsel upon City's and Developer's consent), and hold harmless City
and all of its officials, officers, employees, representatives, volunteers and agents from any and all
alleged or actual claims, causes of action, liabilities, and damages from any third party for
relocation assistance, benefits and costs prior to the completion of the development of the Project.
2.11 Local Sourcing Plan. Developer agrees to make a good faith effort to encourage
contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does
not delay the overall project development schedule. Prior to issuance of building permit,
Developer shall develop and submit to the Community Development Agency (the "CDA") a local
sourcing plan for the Project targeting, to the extent feasible, the hiring of qualified workers,
construction contractors, or the purchasing of goods locally within the City of Santa Ana. The plan
must be reviewed and approved by the CDA which if not granted or denied within five (5) Business
Days, shall be deemed approved (with such approval not to be unreasonably withheld) and be
implemented for the construction of the project prior to issuance of Building Permit.
2.12 Mechanic's Liens; Indemnification. Developer shall take all actions reasonably
necessary to remove any future mechanic's liens or other similar liens (including design
professional liens) against the Property or Project, or any part thereof, by reason of work, labor,
services, or materials supplied or claimed to have been supplied to Developer or anyone holding
the Property or Project, or any part thereof, through or under Developer. Prior to the recording of
this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide
evidence from the Title Company of any new recordings against the Property or Project. City
hereby reserves all rights to post notices of non -responsibility and any other notices as may be
appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by
Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's
choosing and the consent of Developer, which shall not be unreasonably withheld, and which may
be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of
its officials, officers, employees, representatives, volunteers and agents from any and all alleged
or actual claims, causes of action, liabilities, and damages from any third party by reason of a
mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to
Developer or anyone holding the Property or Project, or any part thereof, through or under
Developer.
3. AFFORDABILITY
3.1 Total Affordability Tenn. Each Affordable Unit shall be restricted to use and
occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total
Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on
the date that the Affordable Unit receives all required occupancy permits from the City. By way
of explanation of the foregoing two sentences, it is possible that the Total Affordability Period for
one Affordable Unit will neither commence on the same date nor terminate on the same date as
another Affordable Unit, and it is possible that the Total Affordability Terms for all Affordable
Units will commence on different days and terminate on different days.
3.2 Memorializing Commencement of Total Affordability Term. Developer shall keep
detailed records of the commencement date of the Total Affordability Term for each Affordable
Unit. City shall have the right to review and verify said records to ensure that the commencement
date specified by Developer for an Affordable Unit coincides with the date that the initial
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Affordable Unit received all permits from City required for occupancy of the Unit. In the event
that a conflict exists between the date specified by Developer for the commencement of the Total
Affordability Term for an Affordable Unit and the date specified by City's issuance of all required
permits for occupancy of the Unit, the date specified by City's issuance of all required permits for
occupancy of the Unit shall control.
3.3 Levels of Affordability.
3.3.1 Very Low Income Tenants. Developer covenants that no less than seventy-
five 75 Affordable Units in the Project shall at all times during the Density Bonus Housing
Agreement Term be rented to, or held vacant and available for immediate occupancy by Very Low
Income Tenants, at a rent that does not exceed thirty percent (30%) of fifty percent (50%) of the
area median income, as adjusted for household size appropriate to the unit, including an allowance
for utilities.
3.3.2 Low Income Tenants. Developer covenants that no less than seventeen (17)
Affordable Units in the Project shall at all times during the Density Bonus Housing Agreement
Term be rented to, or held vacant and available for immediate occupancy by Lower Income
Tenants, at a rent that does not exceed thirty percent (30%) of sixty percent (60%) of the area
median income, as adjusted for household size appropriate to the unit, including an allowance for
utilities.
3.4 Affordable Rental Schedule. The Affordable Rental Schedule shall be determined
by the regulatory agreements entered into between the Developer and the California Tax Credit
Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC)
governing the project.
4. OWNERSHIP AND OPERATION OF THE PROJECT BY OWNER
4.1 Recording of Documents. No later than issuance of building permits for the Project,
Developer and the City shall record or cause to be recorded in the Official Records for Orange
County, California, an executed original of this Agreement. City shall cooperate with Developer
in promptly executing in recordable form this Agreement. Upon the date of recording, the terms
and conditions of this Agreement shall be binding upon and run with the Property and the Project.
It is the express intent and agreement between the Parties that this Agreement shall remain binding
and enforceable against the Property, the Project, and the Units to ensure compliance with the State
Density Bonus Law, City Density Bonus Law, and the City Housing Opportunity Ordinance, and
to ensure the continued supply of Affordable Units in the Project.
4.2 Rental of Units. Upon the completion of construction of the Project and receipt by
Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to
be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in
accordance with the terms and conditions set forth in this Agreement, which provide among other
terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible
Household for the Total Affordability Term.
1.9
4.3 Location of Affordable Units. During the Density Bonus Housing Agreement
Tenn, the Affordable Units shall be disbursed throughout the Project in accordance with the terms
and conditions set forth in this Agreement.
4.4 Occupancy Levels. The number of persons permitted to occupy each Affordable
Unit shall not exceed the occupancy permitted pursuant to the requirements of the United States
Department of Housing and Urban Development. In the event that a household residing in an
Affordable Unit exceeds the permitted number of persons, then that household shall be placed on
the waiting list for the appropriate -sized unit and be eligible for transfer when that unit becomes
available. If the household refuses to transfer to the appropriate -sized unit then the Owner will
have grounds to terminate that household's lease.
4.5 Use of the Pronerm All uses conducted on the Property, including, without
limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to
all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and
local laws, rules, and regulations. The Project shall at all times during the term of this Agreement
be used as an apartment complex and none of theAffordable Units in the Project shall at any time
be utilized on a transient basis, nor shall the Property or any portion thereof ever be used as a hotel,
motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium
or rest home, or be converted to condominium ownership. All of the community facilities and any
social programs provided to the Project's residents shall be available on an equal,
nondiscriminatory basis to residents of all Affordable Units at the Project.
4.6 Maintenance. Owner shall, at all times during the term of this Agreement, cause
the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of
cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair,
addition and improvements. City, and any of its employees, agents, contractors or designees shall
have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect
the Project. If at any time Developer fails to maintain the 'Project or the Property in accordance
with this Agreement and such condition is not corrected within five (5) days after written notice
from City with respect to debris and waste material, or thirty (30) days after written notice from
City with respect to general maintenance, landscaping and building improvements, then City, in
addition to whatever remedy it may have at law or at equity, shall have the right to enter upon the
applicable portion of the Project or the Property and perform all acts and work necessary to protect,
maintain, and preserve the Project and the Property, and to attach a lien upon the Property, or to
assess the Property, in the amount of the expenditures arising from such acts and work of
protection, maintenance, and preservation by City and/or costs of such cure, including a reasonable
administrative charge, which amount shall be promptly paid by Developer to City upon demand.
4.6.1 Property Maintenance Agreement. Subject to review and applicability by the
Planning and Building Agency (the "PBA"), the CDA, the Public Works Agency (the "PWA"),
and the City Attorney to ensure that the property and all improvements located thereupon are
properly maintained, Developer (and the leasehold interest owner of the property upon which the
authorized use and/or authorized improvements are located if different from the applicant) shall
execute a maintenance agreement with the City of Santa Ana prior to occupancy which shall be
recorded against the property and which shall be in a form reasonably satisfactory to the City
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Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating
to the following:
(a) Compliance with operational conditions applicable during any period(s) of
construction or major repair (e.g., proper screening and securing of the construction site;
implementation of proper erosion control, dust control and noise mitigation measure;
adherence to approved project phasing etc.);
(b) Compliance with ongoing operational conditions, requirement and restrictions
as applicable, the proper storage and disposal of trash and debris, and/or restrictions on
certain uses;
(c) Ongoing compliance with approved design and construction parameters,
signage parameters and restrictions as well as landscape designs, as applicable;
(d) Ongoing maintenance, repair and upkeep of the Property and all improvements
located thereupon (including but not limited to controls on the proliferation of trash and
debris about the Property; the proper and timely removal of graffiti; the timely
maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings,
structures and/or improvements; the timely maintenance, repair and upkeep of exterior
paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly
accessible bathrooms and bathroom fixtures, landscaping and related landscape
improvements and the like, as applicable);
(e) If Developer and the leasehold interest owner of the property are different (e.g.,
if the applicant is a tenant or licensee of the property or any portion thereoi), both the
applicant and the leasehold interest owner of the property shall be signatories to the
maintenance agreement and both shall be jointly and severally liable for compliance with
its terms;
(f) The maintenance agreement shall further provide that any party responsible for
complying with its terms shall not assign its ownership interest in the property or any
interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees
in writing to assume all of the duties and obligations and responsibilities set forth under
the maintenance agreement;
(g) The maintenance agreement shall contain provisions relating to the enforcement
of its conditions by the City and shall also contain provisions authorizing the City to
recover costs and expenses which the City may incur arising out of any enforcement and/or
remediation efforts which the City may undertake in order to cure any deficiency in
maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of
the property. The maintenance agreement shall further provide that any umeimbursed costs
and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use
restrictions shall become a lien upon the property in an amount equivalent to the actual
costs and/or expense incurred by the City; and,
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(h) The execution and recordation of the maintenance agreement shall be a
condition precedent to the issuance of the Certification of Occupancy.
4.7 Marketing Program. Each Affordable Unit shall be leased to Eligible Households
selected by Developer who meet all of the requirements provided herein. Prior to Certificate of
Occupancy, Developer shall prepare and obtain City's approval, which approval shall not be
unreasonably withheld, of a marketing program for the leasing of the Affordable Units at the
Project ("Marketing Program"). The leasing of the Housing Units shall thereafter be marketed in
accordance with the Marketing Program as the same may be amended from time to time with
City's prior written approval, which approval shall not unreasonably be withheld. Upon request,
Developer shall provide City with periodic reports with respect to the leasing of the Affordable
Units.
4.8 Management Plan. Prior to Certificate of Occupancy, Developer shall submit for
the reasonable approval of City a "Management Plan" which sets forth in detail Developer's
property management duties, a tenant selection process in accordance with this Agreement, a
security system and crime prevention program, the procedures for the collection of rent, the
procedures for eviction of tenants, the rules and regulations for the Property and manner of
enforcement, a standard lease form, an operating budget, the identity and emergency contact
information of the professional property management company to be contracted with to provide
onsite property management services at the Property ("Property Manager"), and other matters
relevant to the management of the Property. The Management Plan shall require Developer to
adhere to a fair lease and grievance procedure. The management of the Property shall be in
compliance with the Management Plan as approved by City.
If City determines that the performance of the Property Manager is deficient based upon
the standards set forth in the approved Management Plan and in this Agreement, City shall provide
written notice to Developer of such deficiencies and Developer shall use its best efforts to correct
such deficiencies. In the event that such deficiencies have not been cured within thirty (30) days,
or, if cure is not reasonably possible within 30 days, then unless actions to commence a cure are
taken within 30 days and continued thereafter with diligence, City shall have the right to require
Developer to immediately remove and replace the Property Manager with another property
manager or property management company which is reasonably acceptable to the City Manager,
which is not related to or affiliated with Developer, and which has not less than five (5) years
experience in property management, including significant experience managing housing facilities
of the size, quality and scope of the Project.
4.9 Selection of Tenants.
4.9.1 Developer shall be responsible for the selection of tenants for the Affordable
Units in compliance with lawful and reasonable criteria and the requirements of this Agreement.
Developer agrees that all of Affordable Units will be available to qualifying residents.
4.9.2 Local preference for Santa Ana residents and workers in tenant selection
shall be a requirement of the Project. Subject to applicable laws and regulations governing
nondiscrimination and preferences in housing occupancy required by the State of California, the
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Developer shall give preference in leasing units to households that live and/or work in the City of
Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the
City of Santa Ana or any other Public Housing Authority.
4.9.3 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer
shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification
Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s)
occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility
requirements established for the Affordable Unit. Developer shall verify the income of the
tenant(s) as set forth herein.
4.10 Income Verification and Certification. Owner covenants to City that it will at all
times abide by all specific compliance standards set forth in the regulatory agreements entered into
between the Owner and the California Tax Credit Allocation Committee (CTCAC) and the
California Debt Limit Allocation Committee (CDLAC), including but not limited to such standards
as relate to the number of very -low and low income affordable units by number of bedrooms,
standards for qualifying household incomes and other qualifying criteria. Owner shall provide
City with a certified copy of each of the recorded Regulatory Agreements applicable to the Project.
The compliance standards set forth in said Regulatory Agreements are hereby incorporated by
reference as fully set forth herein. In the event of a conflict between this Agreement and the
Regulatory Agreements: (1) the more stringent requirement shall prevail if such interpretation
eliminates the relevant conflict; or (2) the Regulatory Agreements, or any of them, shall prevail.
Developer agrees to make a good faith effort to verify that the income and asset statement
provided by an applicant in an income certification is accurate by taking at least one of the
following steps as a part of the verification process: (1) obtain three months consecutive pay stubs
for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3)
obtain an income verification form from the applicant's current employer, (4) obtain an income
verification form from the Social Security Administration and/or the California Department of
Social Services if the applicant receives assistance from either of such agencies, or (5) if the
applicant is tmemployed and has no such tax return, obtain another form of independent
verification.
4.11 Monitoring and Recordkeening. Throughout the Term of this Agreement,
Developer shall annually complete and submit to City a Certification of Continuing Program
Compliance in the form provided by City. Owner agrees to pay a reasonable fee, as set by City
resolution, for the purpose of paying the actual costs associated with the City's obligation to
monitor Owner's compliance with the affordability restrictions contained in this Agreement related
to the Density Bonus units, not to exceed monitoring costs for up to 82 units. The City shall first
start with the review of all reports and monitoring prepared by Owner for the California Tax Credit
Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC)
each year. Representatives of City shall be entitled to enter the Property if necessary after review
of above documentation, upon at least forty-eight (48) hour notice, to monitor compliance with
this Agreement, and shall be entitled to inspect the records of the Project and to conduct an
independent audit or inspection of such records at the Property, or, if unavailable at the Property,
at a location within the City that is reasonably acceptable to the City. Developer agrees to
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cooperate with City in making the Property and the records of the Project available for such
inspection or audit. Developer agrees to maintain each record of the Project for no less than five
(5) years after creation of each such record.
Developer shall allow the City to conduct annual inspections of each of the Affordable
Units on the Property after the date of construction completion, with reasonable notice. Developer
shall cure any defects or deficiencies found by the City while conducting such inspections within
ten (10) Business Days of written notice thereof, or such longer period as is reasonable within the
sole discretion of the City.
4.12 Application and Financial Preparedness. Developer shall submit for review and
approval by the CDA and the PBA, a booklet completed by the Developer at least 12 months prior
to the initial leasing of the units. This booklet can be made available at the Property Manager's
office or at another location agreed upon by the Owner, the CDA, and the PBA. The purpose of
this booklet is to inform interested persons regarding minimum application and eligibility
requirements and to assist interested persons with application and financial preparedness and
eligibility for residency at the Project at the initial leasing of the units. Developer shall also work
with CDA to hold a minimum of two workshops to be coordinated by the Developer at least 12
months prior to the initial leasing of the units.
4.13 Onsite Supportive Services, Programs and Amenities. Throughout the Term of this
Agreement, and to the extent such can be coordinated with and largely supplied by philanthropic
and other social welfare providers, Developer shall provide residents of the Project access to
discounted or no -cost onsite supportive services, programming, and amenities that promote
child development, youth development, senior independent living, and economic mobility and
include but are not limited to: health and wellness services, transportation services, social
activities, and physical or recreational amenities.
4.14 Alternative Transportation and Energy Source, Resource Conservation, and LEED
Certification. While not a condition of the project's Density Bonus, in recognition of the City's
desire to optimize the energy efficiency of the project, Developer agrees to consult with the project
design team, a CABEC certified 2016 Certified Energy Analyst, a LEED AP Homes (low-rise and
mid -rise), LEED AP BD+C (high rise), National Green Building Standard (N GBS) Green Verifier,
or GreenPoint Rater (one person may meet both of these latter qualifications) early in the project
design process to evaluate a building energy model analysis and identify and consider energy
efficiency or generation measures beyond those required by the TCAC minimum construction
standards. Prior to the meeting, the energy analyst shall complete an initial energy model based on
either current T24 standards or, if the project is eligible, the California Utility Allowance
Calculator using best available information on the project. To the extent financially feasible for
the project, Developer agrees to incorporate and optimize energy efficient building materials,
methods, and amenities.
4.15 Reserved.
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4.16 Onsite Property Manager. The Project shall to have 24-hour on-site Property
Management services and personnel. Up-to-date 24-hour contact information for the on-site
personnel shall be provided to the following City agencies on an ongoing basis:
(a) Police Department
(b) Fire Department
(c) Planning and Building Agency
(d) Community Development Agency
4.17 Emergency Evacuation Plan. Developer shall submit and obtain approval of an
Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to
issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for
the on-site personnel shall be provided to the City on an ongoing basis and the approved EEP shall
be kept onsite and also be submitted to the following City Agencies:
(a) Police Department
(b) Fire Department
(e) Planning and Building Agency
(d) Community Development Agency
4.18 Crime Free Housing. Developer shall work with City Staff to develop a crime free
housing policy, procedure, and design plan (the "CFH Plan"). Developer shall submit and obtain
approval from the PBA the CFH Plan meeting the requirements of this Subsection 4.18 prior to
issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and
administered by Property Management.
4.19 Onsite Parking Management Plan. Developer shall provide onsite parking for
residents and visitors of the Project and actively monitor the parking demand of the Project site.
Developer shall continually monitor and take appropriate measures to manage the parking demand
of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or
right-of-way. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain
approval from the PBA a Parking Management Plan (the "PMP") meeting the requirements of this
Subsection 4.21. The approved PMP shall be adhered to and be enforced by the Project at all
times.
[INTENTIONALLY RESERVED]
6. TERM OF THIS AGREEMENT
6.1 Term. The term of this Agreement ('Density Bonus Housing Agreement Term")
shall commence on the Effective Date and shall continue until the date that is fifty-five (55) years
after the City issues the last certificate of occupancy for the Project.
DEFAULT AND TERMINATION: INDEMNIFICATION
7.1 Default. Subject to the Force Majeure provisions of Section 9.14 of this
Agreement, failure or delay by any Party to perform any term or provision of this Agreement,
which is not cured within thirty (30) days after receipt of written notice from the other Party
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specifying the default (or such other period specifically provided herein), constitutes a default
under this Agreement; provided, however, if such default is of the nature requiring more than thirty
(30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure
within such thirty (30) day period, and thereafter diligently pursuing such cure to completion
within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a
total of ninety (90) days). Except as required to protect against further damages, the injured Party
may not institute proceedings against the Party in default until the time for cure has expired.
Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it
change the time of default.
7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are
cumulative, and the exercise by either Party of one or more of its rights or remedies shall not
preclude the exercise by it, at the same or different times, of any other rights or remedies for the
same default or any other default by the other Party.
7.3 Indemnification. In addition to any other indemnity specifically provided in this
Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of
Developer, which shall not be unreasonably withheld, and which may be joint defense counsel
upon City's and Developer's consent) indemnify and hold harmless City and its respective officers,
officials, agents, employees, representatives, and volunteers (collectively, "Indemnitees") from
and against any loss, liability, claim, or judgment arising from any act or omission of Developer
in connection with its obligations under this Agreement, except to the extent caused by the active
negligence or willful misconduct of Indemnitees.
ASSIGNMENT; COVENANTS RUN WITH THE LAND
8.1 Assignment by Developer.
8. 1.1 Prohibited Transfers or Assignments. Except as authorized in Section 8.1.2
below, Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or
transfer or assign Developer's rights and obligations in this Agreement, without City's prior written
approval, which shall not be unreasonably withheld. Except for Permitted Transfers set forth in
Section 8. 1.2 below, Developer shall: (i) notify City in writing of the sale, transfer, or assignment
of all or any portion of the Property, and (ii) deliver to City an assignment and assumption
agreement (or other agreement) in a form approved by City and executed by Developer and its
transferee/assignee pursuant to which Developer's transferee/assignee assumes all of Developer's
covenants and obligations set forth herein with respect to the Property or the portion thereof so
transferred. Any request for transfer or assignment of the Agreement by Developer shall require
the payment of fees or a deposit to compensate the City for approximate expenses incurred by
Developer to City, as applicable, for the City's review of the request.
8.1.2 Permitted Transfer. Notwithstanding the provisions of Section 8. 1.1
above, the following actions shall constitute permitted transfers of Developer's interest in
the Property or Project or Developer's rights and obligations under this Agreement, in
whole or in part, without City's prior written approval (each a "Permitted Transfer" and
collectively, the "Permitted Transfers"; "Transfer" shall include sale, transfer,
15
assignment or, as indicated, grant of any lesser interest or grant of an encumbrance): (a)
transfer of all or any portion of Developer's ground leasehold interest in the Property, or
Developer's interest hereunder, to a limited partnership the general partner of which is
Developer, a nonprofit entity affiliated with Developer, or a limited liability company of
which Developer or a nonprofit entity affiliated with Developer is the manager, and such
limited partnership has been formed to be an entity to receive capital contributions
resulting from the syndication of federal low-income tax credits which may be awarded
to Developer, the Project or to such limited partnership (such limited partnership is
referred to herein as a "Tax Credit Limited Partnership"); (b) the granting of any
temporary or permanent easements, rights, licenses or rights-of-way which are necessary
to facilitate construction of the improvements constituting the Project, providing only that
the grant of such easements, rights, licenses or rights-of-way must be in furtherance of
the development of the Project; (c) recordation of a memorandum of ground lease, and, as
may be applicable, one or more reciprocal easement agreements between Developer and
the owner of fee title to the Property relating to common use and maintenance of the
Property or other similar matters; (d) the pledge of the ground leasehold interest of
Developer or of a successor Tax Credit Limited Partnership as security for financing
necessary to acquire and/or construct and/or operate the affordable housing project on the
Property including necessary construction and/or permanent loans; (e) a Transfer only to
a person or entity that as of the date of Transfer holds an equity interest in the entity
whose equity interest is being transferred; (f) a collateral pledge of the equity interest of
the Tax Credit Limited Partnership to a lender providing construction and/or permanent
loans for the Project; (g) issuance of previously unissued or new equity interests in a Tax
Credit Limited 'Partnership that increase the amount of outstanding equity interests
therein by less than 10%; (h) a Transfer by the tax credit investor of its limited
partnership interest in a Tax Credit Limited Partnership to a syndicated equity fund for
the purposes of syndication of the tax credit equity; (i) removal of the general partner of
the Tax Credit Limited Partnership by the tax credit investor in accordance with the
Partnership Agreement of the Tax Credit Limited Partnership and replacement of such
general partner with a general partner which is the tax credit investor or an affiliated
entity or, if different, with a general partner reasonably approved by the City, approval of
which shall not be unreasonably withheld; 0) the grant and exercise of an option and/or
right of first refusal from the tax credit investor to the general partner of the Tax Credit
Limited Partnership in accordance with the Partnership Agreement upon the anticipated
exit of the tax credit investor from the Tax Credit Limited Partnership at or around the
expiration of the tax credit compliance period; or (k) a Transfer or sale of the Property
and Project at approximately the end of the tax credit compliance period established by
virtue of the award of tax credits to the Tax Credit Limited Partnership, the Developer or
for the Project, or at the end of a later tax credit compliance period arising from
subsequent issuance of tax credits, in which or which is: (i) not a sale to an unrelated or
unaffiliated third party, but is a Transfer or sale to a new limited partnership satisfying
the requirements of subparagraph (a) above or is Developer or a nonprofit entity affiliated
with Developer, (ii) the purchase or Transfer as fanded in part by an award of new tax
credits or tax exempt bonds or other similar financing source, (iii) the Transfer or
purchase occurs in order to buy out the equity interest of the tax credit investor or its
successor in interest in the Tax Credit Limited Partnership as well as to generate funding
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to renovate, repair and/or reposition the Property and the Project, (iv) all affordability
restrictions in favor of the City which are contained in this Agreement remain in senior
position to such new financing and remain unchanged, (v) such Transfer/sale will
reasonably yield to the seller at closing only enough cash proceeds to pay off senior
obligations to institutional lenders and to pay the exit cost of the tax credit investor and
any additional sale proceeds to the seller thereunder from such Transfer/sale would be
evidenced by a residual receipts promissory note in such principle amount, bearing
interest at a rate not -to -exceed 3% simple interest per annum, held by the selling entity or
general partner of the selling entity which residual receipts promissory note is secured by
a deed of trust on the leasehold interest in the Property (which deed of trust will also be
treated as a permitted encumbrance under this Agreement) but which would be junior to
the deeds of trust securing a new loan from an institutional lender as well as to the deeds
of trust securing loan obligations assumed by such new owner.
8.1.3 Sale of Property/Change of Use: Developer agrees and declares that the
Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used,
occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this
Agreement, all of which are for the purpose of enhancing and protecting the value and
attractiveness of the Property and the Project. All of the obligations set forth or incorporated in
this Agreement shall constitute covenants which run with the land and shall be binding on
Developer and its successors and assigns, and all parties having or acquiring any right, title or
interest in, or to any part of the Property or Project. Developer further understands and agrees that
the Density Bonus permit approvals received for this Project have been made on the condition that
Developer and all subsequent owners, or other successors and assigns of the Property and/or
Project lease and rent the Units in accordance with the terms and conditions stipulated in Sections
4, 5 and 6 of this Agreement for a term of 55 consecutive years commencing upon the date that
the Project is first occupied.
8.1.4 Subsequent Assignment. As used in this Agreement, the term 'Developer"
shall be deemed to include any such transferee or assignee after the date such sale, transfer, or
assignment occurs in compliance with this Agreement.
8. 1.5 Unpermitted Assignments Void. Any sale, transfer, or assignment made in
violation of this Agreement shall be null and void, and City shall have the right to pursue any right
or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales,
transfers, or assignments.
8.2 Covenants Run with the Land. The Property shall be held, sold, conveyed,
hypothecated, encumbered, used, occupied and improved subject to the covenants, conditions, and
restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable
servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be
binding upon Developer and all persons having any right, title or interest in the Property, or any
part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and
its successors and assigns, and may be enforced by City and its successors and assigns. The
covenants established in this Agreement shall, without regard to technical classification and
designation, be binding for the benefit and in favor of City and its successors and assigns, and the
17
parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of
City, without regard to whether City is or remains an owner of any land or interest therein to which
such covenants relate. However, all such covenants and restrictions shall be deemed to run in favor
of all real property owned by City which real property shall be deemed the benefited property of
such covenants and this Agreement shall create equitable servitudes and covenants appurtenant to
all real property owned by City and running with the Property in accordance with the provisions
of Civil Code Section 1468. City is deemed the beneficiary of the terms and provisions of this
Agreement and of the covenants running with the land, for and in its own right and for the purposes
of protecting the interests of the community and other parties, public or private, in whose favor
and for whose benefit this Agreement and the covenants running with the land have been provided.
Developer hereby declares its understanding and intent that the burden of the covenants set forth
herein touch and concern the land and that the Developer's interest in the Property is rendered less
valuable thereby. Developer hereby further declares its understanding and intent that the benefit
of such covenants touch and concern the land by enhancing and increasing the enjoyment and use
of the Property by the citizens of City and by furthering the health, safety, and welfare of the
residents of City.
9. MISCELLANEOUS
9.1 Entire Agreement, This Agreement and all of its exhibits and attachments set forth
and contain the entire understanding and agreement of the parties, and there are no oral or written
representations, understandings or ancillary covenants, undertakings or agreements which are not
contained or expressly referred to herein. No testimony or evidence of any such representations,
understandings or covenants shall be admissible in any proceeding of any kind or nature to
interpret or determine the terms or conditions of this Agreement.
9.2 Amendment. Any alteration, change or modification of or to this Agreement, in
order to become effective, shall be made in writing and in each instance approved by the City
Council and signed on behalf of each Party. Any requested alteration, change or modification of
the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as
applicable, for the City's review of the request. Each alteration, change, or modification to this
Agreement shall be recorded against the Property in the Official Records of Orange County,
California.
9.3 Notices.
9.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited
to, the communication of notice, request, demand, approval, statement, report, acceptance,
consent, waiver, appointment or other communication required or permitted hereunder. All notices
shall be in writing and shall be considered given either: (i) when delivered in person to the
recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in
the United States mail in a sealed envelope as either registered or certified mail with return receipt
requested, and postage and postal charges prepaid, and addressed to the recipient named below; or
(iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and
postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with
a known and reliable next -day document delivery service (such as Federal Express), charges
IN
prepaid and delivery scheduled next -day to the recipient named below, provided that the sending
party receives a confirmation of delivery from the delivery service provider; or (v) the first
business day following the date of transmittal of any facsimile and/or electronic transmission,
provided confirmation of successful facsimile transmittal is retained by the sending Party or the
sending Party does not receive notice that an electronic transmission could not be delivered. All
notices shall be addressed as follows:
If to City: City of Santa Ana
Community Development Agency
20 Civic Center Plaza (M-26)
P.O. Box 1988
Santa Ana, California 92702
Attention: Housing Manager
With a copy to: Office of the City Attorney
City of Santa Ana
20 Civic Center Plaza, 7th Floor (M-29)
Santa Ana, California 92702
If to Developer: National Community Renaissance of California
9421 Haven Avenue
Rancho Cucamonga, California 91730
Upon request, a Party Will confirm data for facsimile and electronic transmission. Counsel for a
Party can give notice with the same effect as if the notice was given by a Party.
9.3.2 Change of Address. Either Party may, by notice given at any time, require
subsequent notices to be given to another person or entity, whether a party or an officer or
representative of a party, or to a different address, or both. Notices given before actual receipt of
notice of change shall not be invalidated by the change.
9.4 Severability. If any term, provision, covenant or condition of this Agreement shall
be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected
thereby to the extent such remaining provisions are not rendered impractical to perform, taking
into consideration the purposes of this Agreement.
9.5 Interpretation and Governing Law. This Agreement and any dispute hereunder
shall be governed and interpreted in accordance with the laws of the State of California without
regard to conflict of law principles. This Agreement shall be construed as a whole according to
its fair language and common meaning to achieve the objectives and purposes of the Parties hereto,
and the rule of construction to the effect that ambiguities are to be resolved against the drafting
Party shall not be employed in interpreting this Agreement, all Parties having been represented by
counsel in the negotiation and preparation hereof.
9.6 Section Headings. All section headings and subheadings are inserted for
convenience only and shall not affect any construction or interpretation of this Agreement.
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9.7 Singular and Plural. As used herein, the singular of any word includes the plural,
and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include
the other as context so dictates.
9.8 Joint and Several Obligations. If at any time during the term of this Agreement the
Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations
of such Developer under this Agreement shall be joint and several, and the default of any such
Developer shall be the default of all such Developers.
9.9 Time of Essence. Time is of the essence in the performance of the provisions of
this Agreement as to which time is an element.
9.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit
attached hereto, use of the term "days" shall mean calendar days. For purposes of this Agreement
and all Exhibits attached hereto, "business days" shall mean every day of the week except
Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a)
or successor statute, and any days in which Santa Ana City Hall is closed for business.
9.11 Waiver. Failure by a Party to insist upon the strict performance of any of the
provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon
the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand
strict compliance by the other Party with the terms of this Agreement thereafter.
9.12 Non -Discrimination. Except as necessary to comply with the provisions of this
Agreement and of recorded regulatory agreements on the Project, in performing its obligations
under this Agreement, Developer shall not discriminate because of race, color, creed, religion, sex,
marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and
prohibited by applicable law, in the recruitment, selection, training, utilization, promotion,
termination or other related activities. Developer affirms that it is an equal opportunity employer
and shall comply with all applicable federal, state and local laws and regulations.
9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall
have any right of action based upon any provision of this Agreement.
9.14 Force Majeure. Neither Party shall be deemed to be in default where failure or
delay in performance of any of its obligations under this Agreement is caused by floods,
earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor
difficulties beyond the Party's control (including the Party's employment force), court actions (such
as restraining orders or injunctions), or other causes beyond the Party's control, including delays
by any governmental entity (although the City may not benefit from this provision for a delay that
results from City's failure to perform its obligations under this Agreement), or an insurance
company of either party. If any such events shall occur, the term of this Agreement and the time
for performance by either Party of any of its obligations hereunder may be extended by the written
agreement of the Parties for the period of time that such events prevented such performance.
20
9.15 Mutual Covenants. The covenants contained herein are mutual covenants and also
constitute conditions to the concurrent or subsequent performance by the Party benefited thereby
of the covenants to be performed hereunder by such benefited Party.
9.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and
the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to
this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and
constitute covenants running with the land. Each covenant to do or refrain from doing some act
hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon
every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding
upon each Party and each successor in interest approved pursuant to this Agreement during
ownership of the Property or any portion thereof.
9.17 Counterparts. This Agreement may be executed by the Parties in counterparts,
which counterparts shall be construed together and have the same effect as if all of the Parties had
executed the same instrument.
9.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or
brought by a Party hereto for the purpose of enforcing, construing or determining the validity of
any provision of this Agreement shall be filed and tried in the Superior Court of the County of
Orange, State of California, and the Parties hereto waive all provisions of law providing for the
filing, removal or change of venue to any other court.
9.19 Project as a Private Undertaking. It is specifically understood and agreed by and
between the Parties hereto that the development of the Project is a private development, that neither
Party is acting as the agent of the other in any respect hereunder, and that each Party is an
independent contracting entity with respect to the terms, covenants and conditions contained in
this Agreement. No partnership, joint venture or other association of any kind is formed by this
Agreement. The only relationship between City and Developer is that of a government entity
regulating the development of private property and the developer of such property.
9.20 Further Actions and Instruments. Each of the Parties shall cooperate with and
provide reasonable assistance to the other to the extent contemplated hereunder in the performance
of all obligations under this Agreement and the satisfaction of the conditions of this Agreement.
Upon the request of either Party at any time, the other Party shall promptly execute, with
acknowledgment or affidavit if reasonably required, and file or record such required instruments
and writings and take any actions as may be reasonably necessary under the terms of this
Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or
consummate the transactions contemplated by this Agreement. City hereby authorizes City
Manager to take such other actions and negotiate and execute any additional agreements as may
be necessary or proper to fulfill the City's obligations under this Agreement. The City Manager
may delegate her or his powers and duties under this Agreement to an authorized management
level employee of the City.
9.21 Estoppel Certificate. Within ten (10) business days following a written request by
any of the Parties, the other Party shall execute and deliver to the requesting Party a statement
21.
certifying that (i) either this Agreement is unmodified and in fall force and effect or there have
been specified (date and nature) modifications to the Agreement, but it remains in full force and
effect as modified; and (ii) either there are no known current uncured defaults under this
Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The
statement shall also provide any other reasonable information requested. The failure to timely
deliver this statement shall constitute a conclusive presumption that this Agreement is in full force
and effect without modification, except as may be represented by the requesting Party, and that
there are no uncured defaults in the performance of the requesting Party, except as may be
represented by the requesting Party.
9.22 No Subordination. City's approval of the necessary land use entitlements that
authorize Developer to develop, operate, and maintain the Project was based upon Developer's
obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density
Bonus Law, City Housing Opportunity Ordinance, and the terms and conditions of this Agreement.
For the Term of the Density Bonus Housing Agreement, this Agreement shall have priority over
any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against
the Property or any portion thereof Developer expressly understands and acknowledges that state
law requires preservation of affordability covenants in connection with the approval of this density
bonus project.
9.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action
against the other Party to this Agreement arising out of or in connection with this Agreement, the
prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs
of investigation, and costs of suit from the losing Party.
9.24 Authority to Execute. The person or persons executing this Agreement on behalf
of each Party warrants and represents that he or she/they have the authority to execute this
Agreement on behalf of his or her/their corporation, partnership or business entity and warrants
and represents that he or she/they has/have the authority to bind the Party to the performance of its
obligations hereunder.
(Signatures on followingpage)
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IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing
Agreement to be executed on the date set forth at the beginning of this Agreement,
ATTEST: CITY OFSANT ANA
Norma Mitre- Steven A. Mendoza
Acting Clerk of the Council Acting City Manager
APPROVED AS TO FORM
Sonia R. Carvalho
City Attorney
Signed in counterpart
By: Ryan O. Hodge
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Steven A. Mendoza
Executive Director
Community Development Agency
NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORPORATION
By: (name) (title)
Michael Ruane
Ezewtive ft President
23
California All -Purpose Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California"
County of San Bernardino 0 S.S.
On March 19, 2019 before me, Monica Rodriguez, Notary Public
N nni,a , T N, �Llb: ctla
personally appeared Michael Ruane
(1)
N (2)
who 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 executed the same in his
authorized capacity, and that by his signature on the instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph NICARODRIGUEZ
Notify Public • California
is true and correct. _� San Bernardino County a
Z Commission r 2194894
WITNESS my hand and official seal. My Comm. Ex�te;10 26 2021
'Ziplll� S- 91
Sigcature of t-lorar9 i"RAc
OPTIONAL INFORMATION
Although the information in thi se,[;n;) is not eglmed hy law. Vt could pievent fr=1udulen1 mmovai and io iita.,YlinenE of this
achnowledginent to an unauthoii d 6o-Pillerli and loy prove useful in persons relying on Vic a inched document.
Description of Attached Document
The preceding Certificate of Acknowledgment is attached to
a document titled/for the purpose of
containing pages, and dated
The signer(s) capacity or authority is/are as:
❑ Individual(s)
❑ Attorney-in-fact
❑ Corporate
Officer($)
❑ Guardian/Conservator
❑ Partner - Limited/General
❑ Trustee(s)
❑ Other:
representing:
J,'I,(s)
,fa r �, ,..,,,,
Method of Signer Identification
Proved to me an the basis of satisfactory evidence.
❑ form(s) of identification [] credible witness(es)
Notarial event is detailed in notary journal on:
Page#_ Entry#
Notary
Other _
A Additional Signer ❑ Signer(s) Thunr ints(s)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On March 21, 2019 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Steven A. Mendoza
who proved to me on the basis of satisfactory evidence to be the person() whose name �O/are
subscribed to the within instrument and acknowledged to me that t2/sheAhey executed the same in
[ �5 r/their authorized capacity(ies), and that by,§'h®r/their signature(A on the instrument the
person(, or the entity upon behalf of which the person() acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
9 CLAUDIA M. FERNANDEZ-SHAW
Ni Public— California
�..:
Orange County >
commission R 2228085
My Comm. Expho Jan 28, 2922
IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing
Agreement to be executed on the date set forth at the beginning of this Agreement.
ATTEST:
Signed in counterpart
NORMA MITRE
Acting Clerk of the Council
APPROVED AS TO FORM
RECOMMENDED FOR APPROVAL:
Signed in counterpart
Steven A. Mendoza
Executive Director
Community Development Agency
CITY OF SANTA ANA
Signed in counterpart
STEVEN A. MENDOZA
Acting City Manager
NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORPORATION
By: Steve n 11, President and Chief Executive Officer (title)
24
California All -Purpose Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of San Bernardino
ss.
On March 19, 2019 before me, Monica Rodriguez, Notary Public
or Notan, rid, ',aIle
personally appeared Steve PonTell
N.,�lt alsi11�1 0)
Nam= of �,, -, (2)
who 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 executed the same in his
authorized capacity, and that by his signature on the instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws MOS -CAR
NIGOAIGUEZ
of the State of California that the foregoing paragraphNotary Public • California
is true and correct. San Bernardino County ZZ
Commission at 2194994
WITNESS my hand and officjal seal. 1 MyComm.ExpitesMayZ6,2021�
SigaaWre of Notaiy Public
OPTIONAL INFORMATION
Although the information in this section is ini required t law. it could Prevent fraudulent removal and reit, chment of this
acknowledgment to an unauthnrized document and mai prove isefkill to persons relying on the attached document,
Description of Attached Document
: "�° v ; "90 eP ems' '-
of Signer Identification
The preceding Certificate of Acknowledgment is attached to
1,Method
a document titled/for the purpose Of
Proved to me on the basis of satisfactory evidence:
❑ form(s) of identification ❑ credible wltness(es)
containing _pages, and dated
Notarial event is detailed in notary journal on:
Page# Entry#_
The signer(s) capacity or authority is/are as:
❑ Individual(s)
Notarycontact:
❑ Attorney-in-fact
Other
O Corporate
Officer(s)
i❑ Additional Signer ❑ Signer(s) Thumbprints(s)
ttlH(Po)
❑ Guardian/Conservator
❑ Panner- Limited/General
❑ Trustee(s)
❑ Other:
representing:
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA
IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS
FOLLOWS:
PARCEL A:
ALL THOSE PORTIONS OF LOTS 4 AND 5 OF THE THOMAS ADDITION TO SANTA
ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA,
AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF
LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT THE CENTER LINE INTERSECTION OF STAFFORD STREET AND
FRENCH STREET AS SHOWN ON A MAP OF THE FRUIT ADDITION TO SANTA ANA
EAST, IN THE CITY OF SANTA ANA, RECORDED IN BOOK 5, PAGE 186,
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA;
THENCE ALONG SAID CENTER LINE OF FRENCH STREET SOUTH 000 15'06" WEST A
DISTANCE OF 99.95 FEET;
THENCE NORTH 890 44'54" WEST A DISTANCE OF 30.00 FEET TO THE INTERSECTION
OF THE WEST LINE OF FRENCH STREET WITH A LINE PARALLEL WITH AND
DISTANT 15.00 FEET SOUTHERLY, MEASURED AT RIGHT ANGLES, FROM THE
NORTH LINE OF SAID LOT 5, BEING THE TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING ALONG SAID PARALLEL LINE NORTH 890 44' 54" WEST A
DISTANCE OF 91.29 FEET;
THENCE NORTH 630 48'21 " EAST A DISTANCE OF 61.60 FEET TO THE BEGINNING OF
A TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 25.00 FEET;
THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL
ANGLE 1160 26'45" AN ARC DISTANCE OF 50.81 FEET TO A TANGENT LINE, BEING
SAID WEST LINE OF FRENCH STREET;
THENCE ALONG SAID WEST LINE, SOUTH 00° 15' 06" WEST, A DISTANCE OF 5.05
FEET TO THE TO THETRUE POINT OF BEGINNING.
PARCEL B:
THE SOUTH 35 FEET OF LOT 5 AND THE NORTH 20 FEET OF LOT 8 OF THE THOMAS
ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE,
3!
STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.
EXCEPT THEREFROM THAT PORTION OF SAID LOT 5 DESCRIBED IN THE DEED TO
THE CITY OF SANTA ANA, A MUNICIPAL CORPORATION, RECORDED FEBRUARY 25,
1974 IN BOOK 11081, PAGE 466 OF OFFICIAL RECORDS OF ORANGE COUNTY,
CALIFORNIA.
PARCEL C:
THE SOUTH 30 FEET OF LOT 8 AND THE NORTH 20 FEET OF LOT 9 OF THOMAS'
ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE,
STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.
PARCEL D:
THE NORTH 20 FEET OF LOT TWELVE AND THE SOUTH 30 FEET OF LOT 9 OF THE
THOMAS ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF
ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 19,
PAGE 17 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.
PARCEL E:
LOT ELEVEN AND THE SOUTH 14 FEET OF LOT TEN OF THE THOMAS ADDITION TO
SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 19, PAGE 17 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.
PARCEL F:
THOSE PORTIONS OF LOTS 12 AND 13 OF THOMAS' ADDITION TO SANTA ANA, IN
THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER
MAP RECORDED IN BOOK 19, PAGE 17 OF MISCELLANEOUS RECORDS OF LOS
ANGELES COUNTY, CALIFORNIA, BOUNDED AND DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE EASTERLY LINE OF SAID LOT 13, DISTANT
THEREON 15 FEET NORTH OF THE SOUTHEAST CORNER OF SAID LOT 13,
AND RUNNING THENCE NORTHERLY ALONG THE EASTERLY LINE OF SAID LOTS
13 AND 12, A DISTANCE OF 65 FEET;
THENCE WESTERLY, PARALLEL WITH THE SOUTHERLY LINE OF SAID LOT 12,125
FEET TO THE WESTERLY LINE OF SAID LOT 12;
25
THENCE SOUTHERLY ALONG THE WESTERLY LINE OF SAID LOTS 12 AND 13, 65
FEET;
THENCE EASTERLY 125 FEET TO THE POINT OF BEGINNING.
PARCEL G:
BEGINNING AT A POINT 85 FEET NORTH OF THE SOUTHEAST CORNER OF LOT 19 OF
THOMAS' ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF
ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA;
THENCE NORTH 55 FEET;
THENCE WEST 125 FEET;
THENCE SOUTH 55 FEET;
THENCE EAST 125 FEET TO THE POINT OF BEGINNING, BEING THE SOUTH 15 FEET
OF LOT 13, THE NORTH 40 FEET OF LOTS 18 AND 19 AND THE NORTH 40 FEET OF
THE EAST ONE-HALF OF LOT 17 OF SAID ADDITION.
PARCEL H:
LOTS 14, 15, 16 AND 17 AND THE SOUTH 85 FEET OF LOTS 18 AND 19 OF THOMAS'
ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE,
STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 19, PAGE 17 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.
EXCEPTING THEREFROM THE NORTH 40 FEET OF THE EAST 25 FEET OF SAID LOT
17
APN(s): 398-236-03, 398-236-04
26
EXHIBIT B
TENANT VERIFICATION
27
EXHIBIT B
INCOME COMPUTATION AND CERTIFICATION
NOTE TO APARTMENT OWNER: This form is designed to assist you in computing Annual
Income in accordance with the method set forth in the Department of Housing and Urban Project
("HUD") Regulations (24 CFR 813). You should make certain that this form is ate all times up to date
with the HUD Regulations.
Re:
Santa Ana, California
I/We, the undersigned state that I/we have read and answered fully, frankly and personally
each of the following questions for all persons who are to occupy the unit being applied for in the
above apartment project. Listed below are the names of all persons who intend to reside in the unit:
1. 2. 3. 4.
Name of Members Relationship
of the to Head of Social Security
Household Household Age Number
HEAD
SPOUSE
Income Computation
5.
Place of
Em llooyment
6. The total anticipated income, calculated in accordance with the provisions of this
Certification, of all persons over the age of 18 years listed above for the 12 -month period
beginning the date that I/ we plan to move into a unit is $
Included in the total anticipated income listed above are:
(a) all wages and salaries, overtime pay, commissions, fees, tips and bonuses and other
compensation for personal services, before payroll deductions;
(b) the net income from the operation of a business or profession or from the rental of real or
personal property (without deducting expenditures for business expansion or amortization of capital
indebtedness or any allowance for depreciation of capital assets),
(c) interest and dividends (including income from assets excluded below);
(d) the full amount of periodic payments received from social security, annuities, insurance
policies, retirement funds, pensions, disability or death benefits and other similar types of periodic
receipts, including any lump sum payment for the delayed start of a periodic payment;
(e) payments in lieu of earnings, such as unemployment and disability compensation,
workmen's compensation and severance pay;
(f) the maximum amount of public assistance available to the above persons other than the
amount of any assistance specifically designated for shelter and utilities;
(g) periodic and determinable allowances, such as alimony and child support payments and
regular contributions and gifts received from persons not residing in the dwelling;
(h) all regular pay, special pay and allowances of a member of the Armed Forces (whether or
not living in the dwelling) who is the head of the household or spouse; and
(i) any earned income tax credit to the extent that it exceeds income tax liability.
Excluded from such anticipated income are:
(a) casual, sporadic or irregular gifts;
(b) amounts which are specifically for or in reimbursement of medical expenses;
(c) lump sum additions to family assets, such as inheritances, insurance payments (including
payments under health and accident insurance and workmen s compensation), capital gains and
settlement for personal or property losses;
(d) amounts of educational scholarships paid directly to the student or the educational
institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition,
fees, books and equipment. Any amounts of such scholarships or payments to veterans not used for
the above purposes are to be included in income;
(e) special pay to a household member who is away from home and exposed to hostile fire;
(f) relocation payments under Title I1 of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970;
(g) foster child care payments;
(h) the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act
of 1977;
(i) payments to volunteers under the Domestic Volunteer Service Act of 1973;
0) payments received under the Alaska Native Claims Settlement Act;
(k) income derived from certain submarginal land of the United States that is held in
trust for certain Indian tribes;
(1) payments or allowances made under the Department of Health and Human Services' Low -
Income Home Energy Assistance Program;
as
(m) payments received from the Job Training Partnership Act;
(n) income derived from the disposition of funds of the Grand River Band of Ottawa Indians;
(o) the first $2,000.00 of per capita shares received from judgment funds awarded by the
Indian Claims Commission or the Court of Claims; and
(p) at the discretion of Housing Authority of the City of Santa Ana all other income
exclusions recognized by the HUD Section 8 Certificate and Voucher Programs.
7. Do the persons whose income or contributions are included in item 6 above:
(a) have savings, stocks, bonds, equity in real property or other form of capital investment
(excluding the values of necessary items of personal property such as furniture and automobiles and
interests in Indian trust land)?
No Yes
(b) have they disposed of any assets (other than at a foreclosure or Credit Bankruptcy sale)
during the last two years at less than fair market value?
No Yes
(c) If the answer to (a) or (b) above is yes, does the combined total value of all such assets
owned or disposed of by all such persons total more than $5,000?
No Yes
(d) If the answer to (c) above is yes, state:
(1) the amount of income expected to be derived from such assets in the 12 -month period
beginning on the date of initial occupancy in the unit that you propose to rent:
(2) the amount of such income, if any, that was included in item 6 above:
8. (a) Are all of the individuals who propose to reside in the unit full-time students*?
No Yes
*A full-time student is an individual enrolled as a full-time student during each of 5
calendar months during the calendar year in which occupancy of the unit begins at an
educational organization which normally maintains a regular faculty and curriculum and
normally has a regularly enrolled body of students in attendance and is not an individual
pursuing a full-time course of institutional or farm training under the supervision of an
accredited agent of such an educational organization or of a state or political subdivision
thereof.
[I'M
(b) If the answer to 8(a) is yes, is at least 1 of the proposed occupants of the unit a husband
and wife entitled to file a joint federal income tax return?
No Yes
9. Neither myself nor any other occupant of the unit I/ we propose to rent is the owner of the
rental housing project in which the unit is located (hereinafter the "Owner'), has any family
relationship to the Owner; or owns directly or indirectly any interest in the Owner. For purposes of
this paragraph, indirect ownership by an individual shall mean ownership by a family member,
ownership by a corporation, partnership, estate or trust in proportion to the ownership or beneficial
interest in such corporation, partnership, estate or trustee held by the individual or a family member;
and ownership, direct or indirect by a partner of the individual.
10. This certificate is made with the knowledge that it will be relied upon by the Borrower to
determine maximum income for eligibility to occupy the unit, and I/we declare that all information
set forth herein is true, correct and complete and based upon information I/we deem reliable and
that the statement of total anticipated income contained in paragraph 6 is reasonable and based upon
such investigation as the undersigned deemed necessary.
11. I/we will assist the Owner in obtaining any information or documents required to verify
the statements made herein, including either an income verification from my/our present
employer(s) or copies of federal tax returns for the immediately preceding calendar year.
12. I/we acknowledge that I/we have been advised that the making of any misrepresentation
or misstatement in this declaration will constitute a material breach of my/our agreement with the
Owner to lease the unit and will entitle the Owner to prevent or terminate my/ our occupancy of the
unit by institution of an action for ejection or other appropriate proceedings.
I/we declare under penalty of perjury that the foregoing is true and correct.
Executed this day of in the City of California.
Applicant
Applicant
[Signature of all persons over the age of 18 years listed in number 2 above required]
B- 4
FOR COMPLETION BY APARTMENT OWNER ONLY:
1. calculation of eligible income:
a. Enter amount entered for entire
household in 6 above: $
b. (1) If answer to 7(c) above is yes, enter the total amount entered in
7(d)(1), subtract from that figure the amount entered in 7(d)(2) and enter the
remaining balance ($ );
(2) Multiply the amount entered in 7(c) times the current passbook
savings rate to determine what the total annual earnings on the amount in
7(c) would be if invested in passbook savings ($ ), subtract from that
figure the amount entered in 7(d)(2) and enter the remaining balance
(3) Enter at right the greater of the amount calculated under (1) or (2)
above: $
C. TOTAL ELIGIBLE INCOME
Line La plus line 1.b(3)): $
2. The amount entered in Lc:
Qualifies the applicant(s) as a Low Income Tenant(s).
Does not qualify the applicant(s) as a Low Income Tenant(s).
3. Number of apartment unit assigned:
Bedroom Size: Rent: $
4. This apartment unit [was/was not] last occupied for a period of 31 consecutive days by
persons whose aggregate anticipated annual income as certified in the above manner upon their
initial occupancy of the apartment unit qualified them as Low Income Tenants.
5. Method used to verify applicant(s) income:
Employer income verification.
Copies of tax returns.
Other
Manager
6=
INCOME VERIFICATION
(for employed persons)
The undersigned employee has applied for a rental unit located in a project financed under
the Housing Authority of the City of Santa Ana Multifamily Housing Revenue Bond Program for
persons of low income. Every income statement of a prospective tenant must be stringently verified.
Please indicate below the employee's current annual income from wages, overtime, bonuses,
commissions or any other form of compensation received on a regular basis.
Annual wages Overtime Bonuses
Commissions
Total current income
I hereby certify that the statements above are true and complete to the best of my knowledge.
Signature Date Title
I hereby grant you permission to disclose my income to in order that they may
determine my income eligibility for rental of an apartment located in their project which has been
financed under the Housing Authority of the City of Santa Ana Multifamily Revenue Bonds.
Signature
Please sent to:
F -W
Date
INCOME VERIFICATION
(for self-employed persons)
I hereby attache copies of my individual federal and state income tax returns for the
immediately preceding calendar year and certify that the information shown in such income tax
returns is true and complete to the best of my knowledge.
Signature
1-M
Date
EXHIBIT C
RESOLUTION NO. 2019-01
28
L5 1.14.19
RESOLUTION NO. 2019-01
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF SANTA ANA APPROVING DENSITY BONUS
AGREEMENT APPLICATION NO. 2018-01 AS
CONDITIONED FOR A NEW MIXED-USE FAMILY
AFFORABLE RENTAL RESIDENTIAL AND COMMERCIAL
DEVELOPMENT FOR THE PROPERTY LOCATED 609
NORTH SPURGEON STREET
BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF
SANTA ANA AS FOLLOWS:
Section 1. The Planning Commission of the City of Santa Ana hereby finds,
determines and declares as follows:
Alexa Washburn, representing National Community Renaissance of
California ("National CORE', hereinafter referred to as "Applicant"), is
requesting approval of Density Bonus Agreement Application No. 2018-
01, as conditioned, to allow the construction of a new mixed-use 93 -unit
family affordable rental residential and commercial development at 609
North Spurgeon Street.
2. The Transit Zoning Code was adopted in 2010 to provide the zoning
necessary to support the long-term development of a successful transit
program. The regulating plan, which establishes land uses and
development standards, allows a variety of housing and commercial
projects, including mixed-use residential communities, live/work units,
service and retail, and professional offices.
3. The California Density Bonus law allows developers to seek increases in
base density for providing on-site housing units in exchange for providing
affordable units on site. To help make constructing on-site affordable units
feasible, the law allows developers to seek incentives/concessions or
waivers that would help the project be built without significant burden and
without detriment to public health.
4. On January 14, 2019, the Planning Commission of the City of Santa Ana
held a duly noticed public hearing regarding the density bonus application
and at that time considered all testimony, written and oral.
5. Section 41-1607 of the Santa Ana Municipal Code (SAMC) requires an
application for a density bonus agreement containing deviations
(incentives/concessions and/or waivers) to be approved by the Planning
Commission.
Resolution No. 2019-01
Page 1 of 9
The Planning Commission determines that the following findings, which
must be established in order to grant this Density Bonus Agreement
application pursuant to SAMC Section 41-1807, have been established for
Density Bonus Agreement No. 2018-01 to allow construction of the
proposed project:
The proposed development will materially assist in accomplishing
the goal of providing affordable housing opportunities in
economically balanced communities throughout the city.
The proposed development will provide 92 affordable rental
family housing units, contributing toward the City's rental
housing stock to serve the needs of diverse and
underserved populations. The area in which the project is
proposed, the Transit Zoning Code, currently contains an
affordable mixed-use community and market -rate multi-
family housing. The construction of this project will contribute
toward an economically balanced community by providing
housing for different demographic and income levels in an
area rich with employment opportunities, commercial
development, and market -rate housing.
2. The development will not be inconsistent with the purpose of the
underlying zone or applicable designation in the general plan land
use element.
The project site is in an area already identified in both the
City's Zoning Code (the Transit Zoning Code) and General
Plan (the Land Use and Housing elements) for new
residential communities. Moreover, the City's General Plan
land use designation for the project site is Urban
Neighborhood which applies to primarily residential areas
with pedestrian oriented commercial uses, schools and small
parks. This designation allows for a mix of residential uses
and housing types, such as mid to low rise multiple family,
townhouses and single-family dwellings; with some
opportunities for live work, neighborhood serving retail and
service, public spaces and use, and other amenities. Lastly,
the proposed density of 53.4 units is below the density
bonus provisions in the California Density Bonus Law for
family-oriented projects (35 -percent density bonus) and in
the City's Housing Opportunity Ordinance (35 -percent
density bonus).
3. The deviation is necessary to make it economically feasible for the
Applicant to utilize a density bonus authorized for the development
pursuant to section 41-1803.
Resolution No. 2019-01
Page 2 of 9
The proposed project requires two deviations through
incentives/concessions: building setbacks (front) and
encroachments, as well as one deviation through a waiver in
permitted building types and architectural styles. The three
deviations are described as follows:
First, maintaining the required 10'-0" front yard setback
would involve the significant loss of mixed-use space and
the loss of six (6) three-bedroom units at approximately
1,185 sq. ft. In addition, implementing the required front yard
setback standard would result in the building being set back
an additional 6-7 feet from the front property line, resulting in
a significant loss of parking area and common open space.
In order to maintain the current proposed unit count, the
Applicant would be required to construct an additional level,
resulting in a different type of construction (steel -frame
versus wood), further increasing development costs. In
addition, in order to maintain the current parking count the
developer would be required to construct additional parking
either above- or below -grade, resulting in increased
construction costs and/or a loss of additional residential
units.
Second, maintaining the maximum encroachment of 2'-0"
into the required street side setbacks would result in the
significant loss of the required private open space balconies.
In addition, implementing the required standard would result
in the building being setback an additional 5-6 feet along the
eastern and western property lines, resulting in a significant
loss of parking area, common open space and residential
units. In order to maintain the current parking count and
open space, the Applicant would be required to construct
additional parking, resulting in increased construction costs
and/or a loss of additional residential units.
Third, the proposed building is required to be designed as
one of the building types and architectural styles permitted
by the UN -2 zone. Pursuant to the TZC, the building type
and architectural style are considered development
standards that are eligible to be waived if they physically
preclude the construction of the project. The project
proposes a Hybrid Courtyard Building Type and Main Street
Commercial architectural style which are only permitted in
the UN -2 zone in certain locations of the TZC, but not
permitted on the project site. However, if the project were
designed as any other permitted building type or
architectural style the project would result in a significant
Resolution No. 2019-01
Page 3 of 9
loss of residential units and a loss of any retail, service or
office use. As a result, a waiver from the allowable building
type and architectural style is required so the development
standards do not physically preclude the construction of the
project.
The two requested concessions could be avoided if the
project were constructed using a different site plan and
building type. If the project were designed with a multi-level
parking and/or subterranean parking structure, or if the
Applicant used different building materials (non-combustible,
Type 1) to construct a taller project, additional area on site
would become available to provide parking and to meet the
required front yard setback. However, these changes would
increase development costs, resulting in the affordable
housing project becoming financially infeasible due to the
significantly increased financial implications of using Type I
construction.
7. The Applicant agrees to indemnify, hold harmless, and defend the City of
Santa Ana, its officials, officers, agents, and employees, from any and all
liability, claims, actions or proceedings that may be brought arising out of its
approval of this project, and any approvals associated with the project,
including, without limitation, any environmental review or approval, except to
the extent caused by the sole negligence of the City of Santa Ana.
Section 2. In accordance with the California Environmental Quality Act
(CEQA), Sections 15070 to 15075 of the CEQA Guidelines, an Initial Study and
Mitigated Negative Declaration (IS/MND) has been prepared which discloses the
environmental impacts associated with implementing the proposed project and includes
mitigation measures that can reduce potential impacts to the extent possible or to below
a level of significance. Impacts from components such as agriculture and forestry
resources, air quality, geology and soils, greenhouse gas emissions, hydrology and
water quality, land use and planning, mineral resources, population and housing,
recreation, transportation and traffic, and utilities and service systems were found to
have no impacts or impacts considered less than significant. However, the project was
found to have a less than significant impact on the following environmental categories
when proposed mitigation measures are implemented: aesthetics, biological resources,
cultural resources, hazards and hazardous materials, noise, public services, and tribal
cultural resources.
The IS/MND's analysis determined that the above-mentioned environmental
categories would cause no substantial adverse change to the environment with the
inclusion of environmental commitments, or other enforceable measures, that would be
adopted by the City. All mitigation measures in the original Transit Zoning Code (TZC)
EIR and associated Mitigation Monitoring and Reporting Program (MMRP) have been
enforced and are carried over within the IS/MND, with exception of Tribal Cultural
Resolution No. 2019-01
Page 4 of 9
Resources and Cultural Resources which required new mitigation measures. A traffic
impact analysis was performed to analyze any potential changes in area traffic as a
result of the proposed development. The study concluded that no additional significant
impacts would trigger the requirement for additional environmental review.
Assembly Bill 52 (AB 52) requires meaningful consultation with California Native
American Tribes on potential impacts on tribal cultural resources (TCRs), as defined in
Public Resources Code Section 21074. TCRs are sites, features, places, cultural
landscapes, sacred places, and objects with cultural value to a California Native
American tribe that are either eligible or listed in the California Register of Historical
Resources or local register of historical resources. In order minimize impacts on
potential TCRs, the IS/MND outlined mitigation measure TCR 1 requiring consultation of
a qualified archaeologist and the local Native American representative, if unanticipated
discoveries are made during construction activities. With implementation of mitigation
measure TCR 1, potential project impacts on TCRs would be less than significant.
A cultural resources study was also performed to analyze the two existing
buildings of the First United Methodist Church of Santa Ana, the Sanctuary and
Anderson Court Complex (1964-1966) and the Educational Building (1928-1929)
located on the property. The study included systematic field recordation of the existing
buildings on the property, historical background research on the buildings, and
consultation with local historical organizations. The study determined the Educational
Building to be a "historical resource" for CEQA-compliance purposes and determined
that it requires proper mitigation of potential impacts from the proposed demolition. In
addition, because the Sanctuary and Anderson Court Complex have also reached the
commonly recognized 50 -year age threshold for potential "historical resources," and the
two buildings are integral parts of the same religious establishment that has occupied
this location for more than a century, the Sanctuary and Anderson Complex should also
be considered a component of the "historical resource."
To reduce potential impacts of the proposed demolition to a less than significant
level, the IS/MND outlined mitigation measures consistent with the Transit Zoning Code
EIR which required "written and photographic recordation of the resource in accordance
with the level of Historic American Building Survey (HAGS) documentation that is
appropriate to the significance (local, state, national) of the resource." In addition, prior
to demolition, the developer will be required to document the buildings to Historic
American Building Survey (HAGS) -like documentation for the historical resources
slated for demolition. The HABS-like package will document in photographs and
descriptive and historic narrative the historical resources slated for demolition.
Documentation prepared for the package will draw upon primary and secondary source
research and available studies previously prepared for the project. Specifically, the
specifications for the HABS-like package will include photographs focusing on the
historical resources/features slated for demolition, with overview and context
photographs for the campus and adjacent setting. In addition, the historian or
architectural historian will prepare descriptive and historic narrative of the historical
resources/features slated for demolition with physical descriptions detailing each
Resolution No. 2019-01
Page 5 of 9
resource, elevation by elevation, with accompanying photographs, and information on
how the resource fits within the broader campus during its period of significance.
As outlined in the accompanying staff report, the project is consistent with the
City's General Plan and the Transit Zoning Code regulating plan. Further, it is consistent
with the density bonus provisions outlined in the City's Housing Opportunity Ordinance.
The project site is located within city limits and is less than five acres in size. It is
already in an urbanized setting surrounded by urban uses, and the project has not been
identified as habitat for endangered, rare or threatened species.
Section 3. The Planning Commission of the City of Santa Ana, after conducting the
public hearing, hereby approves the Density Bonus Agreement Application No. 2018-01
as conditioned in Exhibit A attached hereto and incorporated as though fully set forth
herein. This decision is based upon the evidence submitted at the above said hearing,
which includes, but is not limited to: the public testimony, written and oral, all of which are
incorporated herein by this reference.
ADOPTED this 14th day of January, 2019 by the following vote:
AYES: Commissioners: ALDERETE, BENAVIDES, CONTRERAS-LEO,
MCLOUGHLIN, VERINO (5)
NOES: Commissioners: CANO, NGUYEN (2)
ABSENT: Commissioners:
ABSTENTIONS: Commissioners:
VM rk McLoughlin
hairperson
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: GGl�1c vt—
Lisa Storck
Assistant City Attorney
Resolution No. 2019-01
Page 6 of 9
CERTIFICATE OF ATTESTATION AND ORIGINALITY
1, SARAH BERNAL Recording Secretary, do hereby attest to and certify the attached
Resolution No. 2019-01 to be the original resolution adopted by the Planning
Commission of the City of Santa Ana on January 14, 2019.
Date: -.J. I oil I ei
Cvwwk'0 45vwwt-
Recording Secretary
City of Santa Ana
Resolution No, 2019-01
Page 7 of 9
EXHIBIT A
Conditions for Approval for Density Bonus Agreement Application No. 201E-01
Density Bonus Agreement Application No. 201E-01 is approved subject to compliance, to
the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa
Ana Municipal Code, the California Administrative Code, the California Building Standards
Code, and all other applicable regulations. In addition, it shall meet the following conditions
of approval:
The Applicant must comply with each and every condition listed below prior to exercising
the rights conferred by the Density Bonus Agreement.
The Applicant must remain in compliance with all conditions listed below throughout the
life of the development project. Failure to comply with each and every condition may result
in the revocation/termination of the Density Bonus Agreement.
All proposed site improvements must conform to the Development Project Review
approval of DP No. 2018-44.
2. Any amendment to the DP No. 2018-44, including modifications to approved
materials, finishes, architecture, site plan, landscaping, unit count, mix, and square
footages must be submitted to the Planning Division for review. At that time, staff
will determine if administrative relief is available or if the Development Project
Review must be amended.
3. A residential property manager shall live on site, and the Applicant and onsite
management shall at all times maintain a 24-hour emergency contact and contact
information on file with the City.
All mechanical equipment shall be screened from view from public and courtyard
areas.
A final detailed amenity plan must be reviewed and approved prior to issuance of
any building permits. The plan shall include details on the hardscape design,
lighting concepts and outdoor furniture for amenity, plaza, or courtyard areas as
well as an installation plan. The exact specifications for these items are subject to
the review and approval by the Planning Division.
Prior to installation of landscaping, the Applicant shall submit photos and
specifications of all trees to be installed on the project site for review and approval
by the Planning Division. Specifications shall include, at a minimum, the species,
box size (24 inches minimum), brown trunk height (10 -foot minimum), and name
and location of the supplier,
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3
Resolution No, 2019-01
Page 8 of 9
7. After project occupancy, landscaping and hardscape materials must be maintained
as shown on the approved landscape plans.
8. Prior to issuance of building permits, the Applicant shall submit a construction
schedule and staging plan to the Planning Division for review and approval. The
plan shall include construction hours, staging areas, parking and site
security/screening during project construction.
Resolution No. 2019-01
Page 9 of 9
SMIP REPORT
Done every 3 months.
The State will send a "Fee Report' to complete.
Run a report "SMIP Fees" for each month. Always check to make sure residential,
commercial & industrial were charged correctly.
Highlight all amounts collected that are .50. Subtract that amount from the total amount
collected.
Highlight the valuations that correspond with the .50. Subtract that amount from the
total valuation.
Fill out the worksheets accordingly.
Type memo to Tonia & give memo & fee report from State to Kitty to process.
BLDG. SIDS. FEE REPORT
Done every 3 months.
The State will send a "Fee Report' to complete.
Run a report 'Bldg. Stds. Fee" for each month.
Fill out the City & State worksheets.
Type memo to Tonia & give memo & fee report from State to Kitty to process.