HomeMy WebLinkAboutUNISION REAL ESTATE GROUP, LLC.on,
RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO
City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
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Return FULLLY EXECUTED Free Recordingpursuantto
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Pv A-2023-181
DENSITY BONUS HOUSING AGREEMENT
(1212 E. Fourth Street, Santa Ana, California; APN: 398-385-02)
This DENSITY B NUyS HOUSING AGREEMENT ("Agreement"), made and entered
into this day of �, 2023 ("Effective Date"), by and between the City of Santa
r-- Ana, a charter city and municipal corporation of the State of California ("City"), and Unison Real
Estate Group, LLC, a California Limited Liability Company ("Developer"). City and Developer
LD are sometimes referred to collectively as the "Parties" and individually as a "Party."
RECITALS
A. Developer is the owner of that certain property located within the City of Santa Ana,
County of Orange, State of California, commonly known as 1212 E. Fourth Street, Santa
Ana, California, 92701, 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 is proposing to develop a residential development consisting of no more than
fifteen (15) residential rental units on the Property, as more particularly set forth in
Density Bonus Application No. DBA-2023-1 ("Project"). Without the density bonus,
Developer would only be permitted to build twelve (12) units on the Property.
C. Santa Ana Municipal Code sections 41-1600, etseq. ("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 and incentives,
concessions, and waivers to property owners or developers 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.
D. The Project is proposing a total number of fifteen (15) residential rental units, including
one (1) unit for very -low income households. Pursuant to California Government Code
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RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
Return PLLEY EXECUTED Free Recordingpursuantto
U
0', GtJA C Copy COTC, SCUT Government Code27383
(c. Si)trHr A-2023-181
DENSITY BONUS HOUSING AGREEMENT
(1212 E. Fourth Street, Santa Ana, California; APN: 398-385-02)
This ENSITY B NU}$- HOUSING AGREEMENT ("Agreement"), made and entered
u into this day offplXh , 2023 ("Effective Date"), by and between the City of Santa
Ana, a charter city and municipal corporation of the State of California ("City"), and Unison Real
` Estate Group, LLC, a California Limited Liability Company ("Developer"). City and Developer
CD are sometimes referred to collectively as the "Parties" and individually as a "Party."
RECITALS
A. Developer is the owner of that certain property located within the City of Santa Ana,
County of Orange, State of California, commonly known as 1212 E. Fourth Street, Santa
Ana, California, 92701, 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 is proposing to develop a residential development consisting of no more than
fifteen (15) residential rental units on the Property, as more particularly set forth in
Density Bonus Application No. DBA-2023-1 ("Project"). Without the density bonus,
Developer would only be permitted to build twelve (12) units on the Property.
C. Santa Ana Municipal Code sections 41-1600, etseq. ("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 and incentives,
concessions, and waivers to property owners or developers 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.
D. The Project is proposing a total number of fifteen (15) residential rental units, including
one (1) unit for very -low income households. Pursuant to California Government Code
Sections 65915 (p)(1)(A) and 65915 (p)(1)(B), the Project will provide seventeen (17)
total onsite parking spaces or 1.1 spaces per unit at a ratio of one (1) stall for studio or
one -bedroom units, and one and one-half (1.5) stalls for two -bedroom units. No
additional parking concession is requested or provided.
E. The Project complies with the affordable housing requirements set forth in the State
Density Bonus Law and City Density Bonus for Affordable Housing. For purposes of
this Agreement, the Project shall be a "housing development" as defined in the State
Density Bonus Law.
F. In light of the purpose of the State Density Bonus Law and City Density Bonus for
Affordable Housing, and the express provisions of Government Code Sections
65915(d)(1)(2)(A) and 65915(e)(1), the City has determined to grant Developer's
application for one (1) concession and four (4) waivers.
G. This Agreement, and the exhibits attached hereto and incorporated herein by reference,
are 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, concession and waivers set forth herein.
NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein
by this reference, and of the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
1. 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 by Health and Safety Code Section 50052.5(h).
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, and which shall not exceed one -twelfth (1/12) of the product of thirty percent
(30%) times fifty percent (50%) times the Median Income for Orange County, as defined below
in Section 1.1.17. The Affordable Rent shall be adjusted to reflect a reasonable utilities allowance
for utilities paid by the household using the Santa Ana Housing Authority Multi -Family Housing
Utility Allowance Schedule, and shall be updated no less than annually.
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 Income Tenants. Said Affordable Rent Schedule shall be
established at the time of the issuance of the occupancy permit ("Initial Rent Schedule") and shall
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be created in accordance with the Orange County, California Primary Metropolitan Statistical Area
("PMSA") as published by the California Department of Housing and Community Development
("HCD"), adjusted for family size, and shall be updated no less than annually.
1.1.4 "Affordable Units" means one (1) unit, which shall be comprised of one
(1) one -bedroom unit for Very -Low Income Tenants, Any change to the number or distribution
of Affordable Units is subject to City Manager approval.
1.1.5 "Agreement" means this Density Bonus Housing Agreement.
1.1.6 "City" means the City of Santa Ana, California
1.1.7 "City Council" means the City Council of the City of Santa Ana.
1.1.8 "City Attorney" means the City Attorney for the City of Santa Ana.
1.1.9 "City Manager" means the City Manager for the City of Santa Ana.
1.1.10 "City's Planning Commission" means the Planning Commission for the
City of Santa Ana.
1.1.11 "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.
1.1.12 "Developer" means Unison Real Estate Group, LLC, a California Limited
Liability Company, and its permitted successors and assigns to all or any part of the Property,
Project or this Agreement.
1.1.13 "Effective Date" means the date the 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, pursuant to section 4.1 herein.
1.1.14 "Eligible Household" means a Household whose income does not exceed
the qualifying limit for a "Very -Low Income Tenant" as defined herein.
1.1.15 "Extremely -Low Income Tenant" means persons and families whose
income does not exceed thirty (30%) of the area median income for the Orange County, California
PMSA, adjusted for household size, as published by HCD.
1.1.16 "Household" means all persons residing in a Unit.
1.1.17 "Median Income" means the Orange County, California area median
income, adjusted for family size appropriate to the unit pursuant to California Health and Safety
Code § 50052.5(h), as periodically published by HCD.
1.1.18 "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, to the extent applicable and charged to tenant; 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.
1.1.19 "Project" means that certain affordable residential development as more
particularly described in Recital B and Section 2 of this Agreement.
1.1.20 "Property" means that certain real property more particularly described in
the legal description in Exhibit A and improvements thereon.
1.1.21 "State Density Bonus Law" means Government Code sections 65915, et
seq., as they exist on the Effective Date.
1.1.22 "Unit" means a residential dwelling unit within the Project to be
constructed or caused to be constructed by Developer pursuant to this Agreement.
1. L23 "Unrestricted Units" means the Units within the Project to be constructed
or caused to be constructed by Developer to a Household without restriction.
1.1.24 "Very -Low Income Tenant" means a Household 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 HCD. Very -Low Income Tenant shall include a household that
qualifies as an Extremely Low -Income Household.
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 — Annual Tenant Recertification
1.2.4 Exhibit D — Annual Rental Housing Compliance Report
1.2.5 Exhibit E — Notice of Affordability Restrictions on Transfer of Property
2. DEVELOPMENT OF THE PROPERTY
2.1 Project. Developer shall develop, operate, and maintain, or cause the development,
operation and maintenance of, the Property as a fifteen (15) unit rental residential community, with
one (1) Affordable Unit for Very -Low Income Tenants.
2.2 Density Bonus. The Project shall have fifteen (15) 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 twenty -seven -and -a -half percent (27.5%)
density bonus increase provided by the State Density Bonus Law (12 Base Units x 27.5% = 4 State
Density Bonus Units) for a total of sixteen (16) units. However, Developer is only proposing
fifteen (15) Units, so Developer shall not construct or develop, or otherwise claim a right to
construct or develop any additional State and/or City Density Bonus Units on the Property.
2.3 Development Concessions, Incentives, and Waivers. As set forth in the City
entitlements, Developer petitioned for and is hereby granted the following concessions, incentives,
and waivers as part of the approval of Density Bonus Application No. DBA-2023-1 for the Project:
2.3.1 Concession. In accordance with Government Code Section 65915(d)(1),
Developer is granted a concession for relief from the requirement for ground floor retail or
services, as set forth in Santa Ana Municipal Code § 41-2007.
2.3.2 Waivers. In accordance with Government Code Section 65915(e)(1),
Developer is granted the following waivers:
(a) The height limitation set forth in Santa Ana Municipal Code § 41-2013(a)
is waived to the extent the building height for this Project maybe up to fifty-one (51) feet and nine
(9) inches and four (4) stories.
(b) The maximum allowable building size and massing ratio set forth in Santa
Ana Municipal Code § 41-2022(i)(5) are waived to the extent that the second through fourth floor
will exceed the maximum allowable building size and massing ratio, and are 97.9-percent of the
ground floor's volume,
(c) The open space requirements set forth in Santa Ana Municipal Code § 41-
2022(f) are waived such that the Project shall not be required to provide common open space in
the form of a courtyard or in the front as a forecourt, and only five -hundred ninety-one (591) square
feet of private open space will be required in the form of private decks for nine (9) Units.
(d) The requirement for a landscape buffer set forth in Santa Ana Municipal Code
§ 41-2020(6) is waived to the extent that a two (2) foot landscape buffer will be provided along
the western property line, instead of the required five (5), and no landscape planters will be
provided on the surface parking lot.
2.4 Parking Requirements. Onsite parking shall be provided in compliance with
Government Code Sections 65915(p)(1)(A) and 65915(p)(1)(B). No parking concession is
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requested or provided. The Project will provide seventeen (17) total onsite parking spaces or 1.1
spaces per unit at a ratio of one (1) stall for studio or one -bedroom units, and one and one-half
(1.5) stalls for two -bedroom units.
2.5 No Further Concessions, Incentives. or Waivers. Developer acknowledges and
agrees that the concessions, incentives, and waivers set forth in section 2.3, and the parking
requirements set forth in section 2.4, above, fully satisfy any duty City may have under the City
Density Bonus for Affordable Housing, the Density Bonus Law, or any other law or regulation to
provide any density bonus incentive or to waive any building, zoning, or other requirement in
connection with a density bonus. 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 the City Density Bonus for
Affordable Housing and the Density Bonus Law applicable to the Project.
2.6 Unrestricted Units. The Project, for purposes of this Agreement, may have no more
than fourteen (14) Unrestricted Units comprised of six (6) studio units, five (5) one bed -room units
and three (3) two -bedroom units. Any change to the unit distribution of the Unrestricted Units may
affect the comparability of the Affordable Units and is subject to City Manager approval.
2.7 Affordable Units. The Project, for purposes of this Agreement, shall have no less
than one (1) Unit, which shall be comprised of one (1) one -bedroom unit designated as an
Affordable Unit pursuant to the terms and conditions of this Agreement. The Affordable Unit
shall be consistent with all City approvals, comparable in bedroom distribution and amenities to
the Unrestricted Units, and shall be located throughout the Project as required under Santa Ana
Municipal Code section 41-1602(c)(5).
2.8 Minimum Development Standards for Affordable Units. The Affordable Unit 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 any Unrestricted Units, regardless
of whether such Unrestricted Units are in the Project.
2.9 Permits and Processing Compliance with Laws. Developer, at its sole cost and
expense, or as otherwise set forth in a separate written agreement, shall secure or cause to be
secured any and all permits that may be required for development of the Project 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, and all necessary financing and property interests,
Developer shall carry out and perform the development, operation, and maintenance of the Project
or cause the performance of 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 and Developer shall meet and confer to
address amendments and revisions to this Agreement as necessary.
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
City's choosing and the consent of Developer, which shall not be unreasonably withheld, and
which may be j oint 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 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 caused by, at the
direction of, or on behalf of Developer. Prior to the recording of this Agreement (or memorandum
thereof) pursuant to Section 4.2 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, conditioned or delayed 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 caused by,
at the direction of, or on behalf of Developer.
3. AFFORDABILITY
3.1 Total Affordability Term. 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 building in which the Affordable Unit is located receives all required occupancy
permits from the City.
3.2 Memorializing Commencement of Total Affordability Term. Developer shall keep
or cause to be kept 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 without a fee from
City to Developer to ensure that the commencement date specified by Developer for an Affordable
Unit coincides with the date that the initial 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.
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3.3 Levels of Affordability.
3.3,1 Very Low Income Tenants. Developer covenants that no less than one (1)
Affordable Unit 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 an Eligible
Household, at an Affordable Rent.
4. OPERATION OF THE PROJECT BY DEVELOPER
4.1 Payment of Density Bonus Setup Fee. A Density Bonus Setup Fee in the amount
of $2,768.25, will be charged to the Developer and must be paid prior to execution of this
Agreement.
4.2 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. The date of recording of the Agreement
shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions
of this Agreement shall be binding upon and run with the Property for no longer than the Total
Affordability Term, 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 and City Density Bonus Law, and
to ensure the continued supply of Affordable Units in the Project, except as expressly set forth in
this Agreement.
4.3 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.
4.4 Occupancy Levels. Subject to state or federal laws and regulations, the member of
persons permitted to occupy each Affordable Unit shall not exceed two persons per bedroom, plus
one person.
4.4.1 Written Notification. If an Eligible Household, during the terms of its
tenancy, adds members that exceed the maximum occupancy allowed under this section,
Developer shall provide written notification informing the household that: it is over -
occupancy; has been placed on a waiting list for up to one -hundred and eighty (180) days;
the expiration date of the waiting list; and the terms for terminating the lease. A written
status update will be provided to the household at one -hundred and twenty (120) days,
ninety (90) days, sixty (60) days and thirty (30) days if applicable.
4.5 Use of the Property. All uses conducted on the Property by Developer, 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 a rental housing complex and none of the Affordable Units in the Project,
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
Units at the Project.
4.6 Maintenance. Developer 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, after providing notice as follows: (i) at least a 24-hour notice to Developer and Tenants
of the Affordable Unit which will be inspected, or (ii) at least 48 hours' notice to Developer, which
shall promptly give notice to Tenants of the Affordable Unit to be inspected.
4.7 Affordable Rental Lease Agreement. Developer shall prepare and obtain City's
approval, which approval shall not be unreasonably withheld, conditioned or delayed, of a rental
lease agreement for the Affordable Unit ("Affordable Unit Lease Agreement") for the Affordable
Unit. All Affordable Unit Lease Agreements must 1) identify the names and ages of all members
of the household who will occupy the Affordable Unit; and 2) state that the Household's right to
occupy the Affordable Unit is subject to compliance with the Median Income requirements,
adjusted for family size appropriate to the unit, as periodically published by HCD. All Affordable
Unit Lease Agreements must be consistent with the terms contained in this Density Bonus
Agreement.
4.8 Selection of Tenants.
4.8.1 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.
4.8.2 Local preference for Santa Ana residents and workers in tenant selection for
the Affordable Units 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 Developer shall give preference in leasing the Affordable 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.
4.8.3 All applicants will be screened and "lotterized." A waiting list will be
created from a lottery generated from the initial pool of rental applications. The waiting list will
track applicant name and contact information, lottery number (or designated munber after the
initial lottery), household income, household size, status of application, and any other information
9
deemed necessary. The waiting list will be maintained as an electronic file and available for audit
by the City of Santa Ana in accordance with resident selection procedures as set forth herein.
4.8.4 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.
4.9 Income Verification and Certification.
Developer shall make reasonable efforts to verify or cause to be verified that the income
and asset statement provided by an applicant in an income certification is accurate by taking, at a
minimum, 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 unemployed and has no such tax return, obtain another
form of independent verification.
4.9.1 Gross Household Income. Gross household income means all income from
whatever source from all adult Household members, which is anticipated to be received during the
12-month period following the date of the determination of Gross Household Income. The
applicable sources of income are defined in California Code of Regulations Title 25 Housing and
Community Development Section 6914.
4.9.2 Annual Recertification. Developer agrees to recertify or cause to be
recertified household eligibility annually. Notification of Annual Tenant Recertification shall be
sent to the household in substantially the form attached hereto as Exhibit C. An Annual Rental
Housing Compliance Report ("Annual Compliance Report") shall be sent by Developer to the City
in substantially the form attached hereto as Exhibit D for City's review and approval. The Annual
Compliance Report shall be due to the City within thirty (30) days of the anniversary of the
commencement of the Total Affordability Term, which is the date that each building receives all
required occupancy permits from the City.
4.9.3 Continued Income Qualification and Vacated Affordable Units. If the
annual recertification demonstrates that a previously Eligible Household's gross household
income exceeds the allowed Median Income for the Affordable Unit, the Developer will
be considered in compliance with this agreement so long as one of the following pertinent
actions from the following list is taken:
(a) The Developer may offer to rent the unit to the previously, but no longer,
Eligible Household as an Unrestricted Unit without any limitations on rental
rates. In that case, the Developer must then make available for rent to an
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Eligible Household another unit within the Project that meets the size and
location requirements for Affordable Units under this Density Bonus
Agreement. If there are no vacant units meeting those requirements, then the
next available unit within the Project which does meet those requirements must
be rented to an Eligible Household.
(b) If the no longer Eligible Household either moves to another Unrestricted Unit
within the Project or leaves the Project altogether, then the vacated Affordable
Unit, or, at Developer's election, any other Unrestricted Unit within the Project
which meets the size and location requirements for Affordable Units under this
Density Bonus Housing Agreement and has the same number of bedrooms as
the vacated unit, shall be rented as an Affordable Unit to an Eligible Household.
(c) Developer may proceed to terminate the tenancy and pursue any and all
remedies in accordance with law or contract.
4.10 Monitoring and Recordkeeping. Throughout the Term of this Agreement,
Developer shall annually complete or cause to be completed and submit to City the Annual
Compliance Report. Developer 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 Developer's
compliance with the affordability restrictions contained in this Agreement related to the Affordable
Units, not to exceed monitoring costs for up to one (1) Affordable Units. 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 relating to the Affordable Units and to conduct an independent
audit or inspection of such records at a location within the City that is reasonably acceptable to the
City without a fee from the City. Developer agrees to cooperate with City in making the Property
and the records of the Project relating to the Affordable Unit reasonably available for such
inspection or audit. Developer agrees to maintain or cause for the maintenance of 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 the Affordable Unit on the
Property after the date of construction completion, with reasonable notice, which shall be at least
twenty four (24) hours in advance, unless a shorter time is required in an emergency, to Owner of
the Affordable Unit. Developer shall commence to cure or cause the commencement to 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.
4.11 Notice of Affordability Restrictions on Transfer of Property. In the event the
Developer wishes to sell or transfer the Project, during the Total Affordability Term, the City and
the Developer shall execute and deposit into escrow, a Notice of Affordability Restrictions on
Transfer of the Property, to be executed by the City and Developer in a form substantially similar
to Exhibit E, which is attached hereto and must be executed by the parties prior to any transfer of
the Property.
11
4.12 [Intentionally Reserved]
4.13 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
(c) Planning and Building Agency
(d) Community Development Agency
4.14 Crime Free Housing. Developer shall work with City staff to formalize a crime
free housing policy, procedure, and design plan (the "CFH Plan"), which includes the following
provisions:
a. Requiring parking areas and common interior areas (lobbies, elevators, etc.) to contain
security cameras;
b. Requiring routine unit inspections;
c. Ensuring lobby/other entrance doors are secured and accessed via remote controls, fobs,
etc.; and
d. Have policies in place to ensure that common use areas such as hallways and trash
enclosures are maintained in good condition and repair (e.g., well -lit, kept clean, etc.).
Developer shall submit and obtain approval from the City's Planning and Building Agency
("PBX') that the CFH Plan meets the requirements of this Subsection 4.14 prior to issuance of the
Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by
Developer or its designated property manager.
4.15 Onsite Parking ManagementPlan, 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 the following 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.
a. Requiring onsite parking permits (such as stickers or hang -tags) for any parking in the
onsite parking spaces for both residents and guests;
b. Policies for maximum time vehicles may be parked in the surface parking spaces,
including any guest parking; and
c. Policies for towing unauthorized vehicles, vehicles parked in unauthorized locations
(such as fire lanes), vehicles parking in surface guest parking without a sticker, hang -tag,
or other identifiers, and vehicles parked longer than any maximum guest parking
timeframes allowed.
12
Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain
approval from the PBA a Parking Management Plan (the "PMP") including those measures above.
The approved PMP shall be adhered to and be enforced by the Project at all times.
4.16 Marketing and Resident Selection Plan. 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 of a
marketing program and resident selection plan for the leasing of the Affordable Units at the Project
("Marketing Program"). The leasing of the Affordable 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. Upon request, Developer shall provide City with periodic reports
with respect to the leasing of the Housing Units.
4.16.1 The Marketing Program shall include, but is not limited to, marketing and
community outreach activities, proposed tenant selection criteria, occupancy standards,
income requirements, timeline and details for outreach and marketing, data collection,
record keeping and monitoring, procedures for complaints, and compliance assessment.
Components of the resident selection plan shall include, but are not limited to, the
application process, interview procedure, apartment offer and assignment, rejected
applications, and wait list management. All requirements set forth herein shall be
incorporated in the Marketing Program.
5. [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 building in which the Affordable Units
are located.
7. DEFAULT AND TERMINATION, INDEMNIFICATION
7.1 Default. 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 notice from the other Party
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.
13
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. Notwithstanding anything to the contrary
contained in this Agreement, in no event shall either Party be liable for speculative, consequential,
punitive or other indirect damages, and each Party waives any right to collect speculative,
consequential, punitive or other indirect damages against 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, conditioned or delayed 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 negligence or willful misconduct of Indemnitees.
8. ASSIGNMENT• COVENANTS RUN WITH THE LAND
8.1 Assignment by Developer.
8.1.1 Prohibited Transfers or Assignments. Except as authorized in this Section
or 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, in whole or
in part, without City's prior written approval, which shall not be unreasonably withheld,
conditioned or delayed ("Permitted Transfer"); provided, however, Developer shall have the right
without City's prior written approval to transfer or assign the Property, Project and/or Developer's
rights and obligations in this Agreement to any entity that is controlled by, or is under common
control with, Developer, and Developer shall thereafter be released from any future obligations
under this Agreement. In connection with Permitted Transfer, 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 in
its reasonable discretion 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. Upon the delivery of the assignment and assumption agreement
as provided for above for a Permitted Transfer, or in the event of a sale of the Property as provided
for in Section 8,1.1, Developer shall be released from any future obligations under this Agreement,
8.1.2 Sale of Property. Owner 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
1151
covenants which run with the land and shall be binding on Owner 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. Owner further understands and agrees that the Density Bonus permit approvals received
for this Project have been made on the condition that Owner and all subsequent owners, or other
successors and assigns of the Property and/or Project lease and rent the Affordable 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.
8.1.3 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.
8.1.4 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 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 parties hereto expressly agree that this Agreement and the
covenants herein shall nm in favor of City. 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 agreement provides a public benefit in furtherance of 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 with respect to the density bonus
of the Project, 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.
15
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, or through the City Manager as detailed herein, and signed on behalf of each party. The
City Manager shall have the authorityto make approvals, issue interpretations, execute documents,
waive provisions, and/or enter into amendments of this Agreement on behalf of City that further
the intent of this Agreement. 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
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, provided confirmation of
successful transmittal is retained by the sending Party; or (vi) upon transmission thereof (as
evidenced by the recipient's reply to such notice or other competent evidence of actual receipt) if
transmitted by electronic transmission (email), provided that a copy of such notice is concurrently
sent by first-class mail postage prepaid. 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: Unison Real Estate Group, LLC
18952 MacArthur Blvd Suite 210
Irvine, CA 92612
16
Attention: Oscar Uranga
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.
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.
17
9.12 Non -Discrimination. 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, pandemics as declared by federal, state, or local emergency
resolution, 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.
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.
m
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 in the satisfaction of the Project and 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 the Project
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 or amendments to this agreement as may be reasonably 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
certifying that (i) either this Agreement is unmodified and in full 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 for Affordable Housing, 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 anyportion 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
19
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 following page)
no]
A-2023-181
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:
APPROVED AS TO FORM
Sonia R. Carvalho
City Attorney
Gc"4.Q-
By: Av tIrc a GiarU a- NLller
A5:m,-Fank- C4� Attor"11-
RECOMMENDED FOR APPROVAL:
Michael Garcia
Executive Director
Community Development Agency
J
CITY OF SANTA ANA
Steven Mendoza
Acting City Manager
UNISON REAL ESTATE GROUP, LLC
M
AMI
SEE
ATTACHED
21
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 11/08/2023
before me, Andrew Makoto Cervantes, Notary Public
(insert name and title of the officer)
personally appeared Oscar Uranga
who proved to me on the basis of satisfactory evidence to be the rson(s) whose name( i re
-subscribed to the within instrument and acknowle d to meta a he/they executed the same in
is er/their authorized capacity(ies), and that hi er/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) 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.
we ANDRERV tITES /
CERVAIITES 1
�A COMM.B 2-03To 4
�I $ NOTARY PUBLIC901FOBNIA
G ORANGE COUNTYr
- MY Comm. tv. DEC. 20 2026
Signature (Seal)
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 November 21, 2023 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 namel�e
subscribed to the within instrument and acknowledged to me that&tsMekhey executed the same in
i�eFkh�uthorized capacity(io, and that by 6Dkerfthe"ignaturew 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.
CLAUDIA M. FERNANDE2;5HAW
WITNESS my hand and official se Notary Public California
_ Orange County
Commission 4 2388597
C o• My Comm. Expires Jan 25, 2026 +
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
REAL PROPERTY IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF
CALIFORNIA, DESCRIBED AS FOLLOWS:
LOTS 3 AND 4 IN BLOCK "A" OF "SANTA ANA INVESTMENT COMPANY TRACT NO. 1
HUMPHREY'S ADDITION TO SANTA ANA", IN THE CITY OF SANTA ANA, COUNTY OF
ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 11, PAGE 39 OF
MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.
22
EXHIBIT B
TENANT VERIFICATION
23
EXHIBIT "B"
INCOME VERIFICATION FORM
Inclusionary Unit Address:
Head of Household (Print Name):
Current Address (if
different from above):
Telephone Number: Home:
Email address:
Date of Birth:
Work: Cell:
Social Security # or TIN:
Household Composition
List All Household Members Living in the Inclusionary Unit
Dependent Social Security #
Name Sex Age (Y/N) or Taxpayer ID #
List additional household members on a separate sheet of paper.
Income Verification Form Page 1
Santa Ana, California
EXHIBIT "B"
INCOME VERIFICATION FORM
Monthly Gross Income *
List All Sources of Income of All Household Members Living in the Inclusionary Unit
Part 1: Earned Income
Other
Head of
Household
Household
Members
Total
1.
Gross wages, before payroll deductions and
$
$
$
including overtime pay, commissions, fees, tips
and bonuses.
2.
Net income from self employment, independent
$
$
$
contractor work or a business.
3.
Social security and any payments from annuities,
$
$
$
insurance policies, pension/retirement funds,
disability or death benefits received periodically.
4.
Payment in lieu of earnings, such as
$
$
$
unemployment, disability compensation, worker's
compensation and severance pay.
5.
Public assistance, welfare payments
$
$
$
6.
Alimony, child support, other periodic allowances
$
$
$
7.
Regular pay, special pay and allowances of
$
$
$
members of the Armed Forces
8.
Other
$
$
$
Subtotal: Monthly Earned Income $
Total Monthly Earned Income x 12 = $ Total Annual Household Gross Earned Income
Income Verification Form Page 2
Santa Ana, California
EXHIBIT "B"
INCOME VERIFICATION FORM
Monthly Gross Income *
List All Sources of Income of All Household Members Living in the Inclusionary
Unit
Part 2: Investment Income
Total
Other Adult
Household
Head of
Household
Investment
Household
Members
Income
1.
Interest paid on Bank and Savings accounts
$
$
$
2.
Dividends and other payments from stocks and
$
$
$
bonds
3.
Income from real property (i.e. rental property)
$
$
$
4.
Other (describe)
$
$
$
Subtotal: Monthly Investment Income:
$
Total Monthly Investment Income x 12 = $ Total Annual Household Investment Income
*Note: The following items are not considered income: casual or sporadic gifts; amounts specifically for or in
reimbursement of medical expenses; lump sum payments such as inheritances, insurance payments, capital
gains and settlement for personal or property losses; educational scholarships paid directly to the student or
educational institution; special pay to a serviceman head of family away from home and under hostile fire;
relocation payments under federal, state or local law; foster child care payments; value of coupon allotments
for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible
household; payments received pursuant to participation in the following programs: VISTA, Service Learning
Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster
Grandparent Program, Older American Community Services Program, and National Volunteer Program to
Assist Small Business Experience.
Income Verification Form Page 3
Santa Ana, California
EXHIBIT "B"
INCOME VERIFICATION FORM
Assets **
List the Current Value of All Assets of All Household Members Living in the Inclusionary Unit
If the Asset generates income, that income must be specified In Part 2 above
Head of
Household
Other Adult
Household
Members
Total Value of
Value
Value
Assets
1.
Bank and Savings accounts
$
$
$
2.
Stocks and bonds
$
$
$
3.
Real property (i.e. rental property)
$
$
$
4.
Other (describe)
$
$
$
Total
Asset Value $
**Note: Necessary items, such as furniture and automobiles, used for personal use are excluded from
household assets. Collections of items for hobby, investment or business purposes must be included in
household assets. If the total value of household assets exceeds $5,000, the calculation of the household's
annual income shall include the greater of the actual amount of income, if any, derived from all of the
household assets; or 10% of the total value of the assets.
Income Verification Form Page 4
Santa Ana, California
EXHIBIT "B"
INCOME VERIFICATION FORM
If the total asset value exceeds $5,000, perform the calculations in the following table. If the total asset value
is less than $5,000, the amount of investment income to be included in annual household income is $0.
Calculation of Investment Income to be Included in Annual Household Income
1.
Total Annual Household Investment Income
$
2.
Total Asset Value
$
x 1000
$
The Greater of #1 or #2 = Investment Income to be Included in Annual Household Income $
of the Household's Total Annual Income
Total Annual Household Gross
Total Investment Income to be Included in Annual Household Income
Total Household Income
Attach True Copies of the Relevant Documents Listed Below
Paycheck stubs from three
pay periods
Employment verification
Three years Income tax returns for Title
Holders
Social security verification
Alimony/child support verification
Other (Describe)
E:
Bank/Savings account verification
Self-employment verification
Unemployment verification
Welfare verification
Disability income verification
Income Verification Form Page 5
Santa Ana, California
EXHIBIT "B"
AFFIDAVIT
This Affidavit is made with the knowledge that it will be relied upon by and the City of Santa
Ana to determine maximum income for eligibility to purchase the Inclusionary Unit listed above. (I/we) warrant
that all information set forth in this document is true, correct and complete and based upon information (1/we)
deem reliable and based upon such investigation as (1/we) deemed necessary.
(INVe) acknowledge that (1/we) have been advised that the making of any misrepresentation or misstatement in
this affidavit will constitute a material breach of (my/our) purchase agreement and will additionally enable the
seller to terminate the purchase contract and sell the Inclusionary Unit to another party.
(INVe) do hereby swear under penalty of perjury that the foregoing statements are true and correct and that
this affidavit has been executed as of the date specified below by each adult member of the household which
intends to occupy an Inclusionary Unit located at Santa Ana, California.
Signature
Printed Name
Date
Executed at , Santa Ana, California
Signature
Printed Name
Executed at
Affidavit
Santa Ana, California
Date
Santa Ana. California
Page 6
EXHIBIT C
ANNUAL TENANT RECERTIFICATION
24
Exhibit "C"
TENANT INCOME VERIFICATION FORM
2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE
CITY OF SANTA ANA
Table 1: Annual Household Gross Earned Income 1
List All Sources of Earned Income for all Adult Household Members Living in the Inclusionary Unit
Other Adult
Head of
Household
Household
Members
Total
1. Gross amount, before payroll deductions of
$
$
$
wages, salaries, overtime pay, commissions,
fees, tips and bonuses
2. Net income from business
$
$
$
3. Social security, annuities, insurance policies,
$
$
$
pension/retirement funds, disability or
death benefits received periodically
4. Payment in lieu of earnings, such as
$
$
$
unemployment, disability compensation,
worker's compensation and severance pay
5. Public assistance, welfare payments
$
$
$
6. Alimony, child support, other periodic
$
$
$
allowances
7. Regular pay, special pay and allowances of
$
$
$
members of the Armed Forces
8. Other
$
$
$
Subtotal: Monthly Earned Income $
Total Monthly Earned Income x 12 = $ Total Annual Household Gross Earned Income
'The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of
medical expenses; lump sum payments such as inheritances, insurance payments, capital gains and settlement for personal
or property losses; educational scholarships paid directly to the student or educational Institution; special pay to a
serviceman head of family away from home and under hostile fire; relocation payments under federal, state or local law;
foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in
excess of amount actually charged the eligible household; payments received pursuant to participation in the following
programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer
Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to
Assist Small Business Experience.
Administrative Procedures Manual Page 1
Rental Residential Development November 14, 2023
Table 2A: Household Assets'
List the Value of All Assets Owned by all Adult Household Members Living in the Inclusionary, Unit
Head of
Household
Other Adult
Household
Members
Total
Return @ 10%
of Total
1. Bank & savings accounts
$
$
$
$
2. Stocks and bonds
$
$
$
$
3. Real property
$
$
$
$
4. Other
$
$
$
$
Table 2B: Income Earned Annually from Household Assets
List the Actual Annual Return on All Assets
Owned by all Adult Household Members Living in the Inclusionary Unit
Other Adult
Head of
Household
Household
Members
Total
1. Bank and savings accounts
$
$
$
2. Stocks and bonds
$
$
$
3. Real property
$
$
$
4. Other
$
$
$
The return on Household assets to be included in the Gross Income calculation is set at the greater of
the two amounts shown on the following page:
2 Necessary items, such as furniture and automobiles, used for personal use are excluded from household assets.
Collections of items for hobby, investment or business purposes must be included in household assets. Under California
Government Code Section 6914, if the total value of household assets exceeds $5,000, the calculation of the household's
annual income shall include the greater of the actual amount of income, if any, derived from all of the household assets; or
10% of the total value of the assets.
Tenant Income Verification Form Page 2
Administrative Procedures Manual: Rental Housing Development November 14, 2023
Table 2C Annual Asset Income to be Added to Annual Household Gross Earned Income
10%Annual
Return
Actual Return
Return to be
Applied
1. Bank and savings accounts
$
$
$
2. Stocks and bonds
$
$
$
3. Real property
$
$
$
4. Other
$
$
$
Total Annual Return to be Added to Annual Household Gross Earned Income $
The total Gross Household Income is equal to the sum of the following:
Table 3:
Calculation of the Household's Total Annual Gross Income
Annual Household Gross Earned Income (Table 1) $
Annual Asset Income (Table 2C) $
Total Annual Household Gross Income $
Income Documentation
Attach True Copies of the Relevant Documents Listed Below
Paycheck stubs from two most recent
pay periods
Employment verification
Income tax return
Social security verification
Alimony/child support verification
Other (Describe)
Bank/Savings account verification
Self-employment verification
Unemployment verification
Welfare verification
Disability income verification
Tenant Income Verification Form Page 3
Administrative Procedures Manual: Rental Housing Development November 14, 2023
Exhibit "C"
l_1aaIPJ\Y/I`I
This Affidavit is made with the knowledge that it will be relied upon by the City of
Santa Ana, our landlord and the owner of our apartment building, to determine maximum income for
eligibility. (1/we) warrant that all information set forth in this document is true, correct and complete
and based upon information (1/we) deem reliable and based upon such investigation as (1/we) deemed
necessary.
(I/We) acknowledge that (1/we) have been advised that the making of any misrepresentation or
misstatement in this affidavit will constitute a material breach of (my/our) rental agreement with the
property owner to rent the unit and will additionally enable the property owner to initiate and pursue
all applicable legal and equitable remedies with respect to the unit and to me/us.
(I/We) do hereby swear under penalty of perjury that the foregoing statements are true and correct
and that this affidavit has been executed as of the date specified below by each adult member of the
household which intends to occupy an Inclusionary Unit located at
Ana, California.
Signature
Printed Name
Executed at
Signature
Printed Name
Executed at
Date
Santa Ana, California
Date
Santa Ana, California
,Sa nta
Tenant Income Verification Form Page 1
Administrative Procedures Manual: Rental Housing Development November 14, 2023
EXHIBIT D
ANNUAL RENTAL HOUSING COMPLIANCE REPORT
25
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EXHIBIT E
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
26
EXHIBIT E
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
NOTICE IS HEREBY GIVEN that the CITY OF SANTA ANA, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California, has
entered into a Density Bonus Agreement with Unison Real Estate Group, a California Limited
Liability Company ("Property Owner"). The Density Bonus Agreement imposes income and
affordability covenants for an affordable housing project with fifteen (15) units ("Project")
located at 1212 E. Fourth Street, Santa Ana, Orange County, Assessor's Parcel Number 398-385-
02, and further described in the legal description provided in Exhibit A to the Density Bonus
Agreement.
The Density Bonus Agreement was recorded as Document/Instrument Number [TO BED,
1VSRT$D', and shall remain in effect until fifty five (55) years from the date a certificate of
occupancy is issued for all units in the Project. Among other things, the Density Bonus
Agreement requires as follows: (a) one (1) one -bedroom unit (the "Affordable Unit") shall be
restricted for occupancy to a household that qualifies as a "Very -Low Income Tenant," which is
defined to mean a household whose income does not exceed fifty (50%) of the area median
income for the Orange County, California PMSA, adjusted for household size, and (b) the rent
for the Affordable Unit shall not exceed one -twelfth (1/12) of the product of thirty percent (30%)
times fifty percent (50%) times the Median Income for Orange County, as adjusted to reflect a
reasonable utilities allowance.
In the event the Property Owner wishes to sell or transfer the Project during the Affordability
Period, the City and the Property Owner shall execute and deposit into escrow this Notice of
Affordability Covenants on Transfer of the Property. The sale or transfer of the Property shall
not be effective unless and until the City and transferee execute the documents necessary to
transfer the Density Bonus Agreement obligations from the Property Owner to the transferee.
This Notice of Affordability Covenants on Transfer of the Property in no way modifies the
provisions of the Density Bonus Agreement. In the event of any conflict between this Notice of
Affordability Covenants on Transfer of the Property and the Density Bonus Agreement, the
terms of the Density Bonus Agreement shall prevail.
IN WITNESS WHEREOF, the Parties hereto have duly executed this Notice of Affordability
Restrictions on Transfer of Property as of the dates set forth below.
[Signatures on Following Pages]
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
CITY:
CITY OF SANTA ANA
A California Charter City and Municipal
Corporation
m
Name:
Its: City Manager
Date:
APPROVED AS TO LEGAL FORM:
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
PROPERTY OWNER:
UNISON REAL ESTATE GROUP
A LIMITED LIABILITY COMPANY
By:
Name: Oscar Uran¢a
Its:
Date: