HomeMy WebLinkAbout32A - DENSITY BONUS EDWARD PADILLA JRREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 7, 2010
TITLE:
DENSITY BONUS AGREEMENT AND
APPLICATION NO. 2010-01 AND TENTATIVE
TRACT MAP NO. 2009-01 TO ALLOW A FIVE-
UNIT RESIDENTIAL DEVELOPMENT AT 5301
WEST SILVER DRIVE - EDWARD PADILLA, JR.,
APPLICANT
r
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1s` Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
1. Receive and file the staff report approving Density Bonus Application No. 2010-01 and
Tentative Tract Map No. 2009-01 (County Map No. 17323) as conditioned.
2. Authorize the City Manager and Clerk of the Council to execute the attached Density Bonus
agreement with Integrity Builders & Associates, Inc., subject to nonsubstantive changes
approved by the City Manager and City Attorney for the development of an affordable for sale
unit.
PLANNING COMMISSION ACTION
On August 9, 2010, the Planning Commission adopted a resolution approving deviations from the
Two-Family Residence (R2) development standards contained in Section 41-246 et seq. of the
Santa Ana Municipal Code (SAMC) as allowed by SAMC 41-1608 and the State of California
Government Code Section 65915-65918 as an incentive to affordable housing production; and
adopted a resolution approving Tentative Tract Map No. 2009-01 (County Map No. 17323) as
conditioned by a vote of 4:1 (Acosta opposed; Betancourt and Gartner absent) to allow a five-unit
residential development at 5301 West Silver Drive located in the Two Family Residential (R2) zoning
district. Planning Commission made no changes to the recommended conditions of approval
outlined in the attached staff report (Exhibit A).
DISCUSSION
Density Bonus Agreement
The State density bonus law was created to encourage the production of quality affordable
housing by allowing cities to approve qualified projects that would have units, or densities, in
excess of cities' statutory density caps established under General Plans and zoning. Under this
32A-1
DBA No. 2010-01
TTM No. 2009-01
September 7, 2010
Page 2
article, developers wishing to construct projects that meet the requirement for a specified
percentage of affordable housing units may request to enter into a Density Bonus Agreement with
the City. Under the proposed density bonus agreement, its approval will produce one additional
unit that will be sold to a low income household (80 percent of Area Median Income). The price for
the home will be set at completion of construction per the agreement guidelines for a low-income
homebuyer. The term of the affordability is 45 years during which the unit must be owner
occupied. If the property is transferred during the term of the agreement, the subsequent
homebuyer must also meet the income requirements. Construction of these homes will assist the
Agency in meeting their replacement and inclusionary housing obligations and will assist the City
in meeting the Regional Housing Needs Assessment (RHNA) goals identified in the Housing
Element (Exhibit B).
FISCAL IMPACT
There is no fiscal impact associated with this action.
r. L-
J M. Trevino
Executive Director
Planning & Building Agency
LL: rb
LL\reports\pc&za\dba10-01ttm09-01 5301 Silver Dr.cc
Exhibits: A. Planning Commission Staff Report
B. Density Bonus Agreement
32A-2
REQUEST FOR
Planning Commission Action
PLANNING COMMISSION MEETING DATE:
AUGUST 9, 2010
TITLE:
PUBLIC HEARING - FILED BY EDWARD PADILLA, JR
FOR DENSITY BONUS APPLICATION NO. 2010-01
AND TENTATIVE TRACT MAP NO. 2009-01 TO ALLOW
A FIVE-UNIT RESIDENTIAL DEVELOPMENT AT
5301 WEST SILVER DRIVE
Prepared by Lucy Linnaus
-A Executive Director
RECOMMENDED ACTION
PLANNING COMMISSION SECRETARY
APPROVED
? As Recommended
? As Amended
? Set Public Hearing For
DENIED
? Applicant's Request
? Staff Recommendation
CONTINUED TO
Llz? Al, _2
Planning Man ger
1. Adopt a resolution approving deviations from the Two-Family Residence (R2) development
standards contained in Section 41-246 et seq. of the Santa Ana Municipal Code (SAMC) as
allowed by SAMC 41-1608 and the State of California Government Code Section 65915-65918
as an incentive to affordable housing production.
2. Adopt a resolution approving Tentative Tract Map No. 2009-01 (County Map No. 17323) as
conditioned.
DISCUSSION
Request of the Applicant
Edward Padilla of Integrity Builders & Associates, Inc., owner of the subject property, is requesting
approval of a five-unit residential project located at 5301 West Silver Drive. The proposed project
would be in excess of the maximum number of units allowed on the property pursuant to the General
Plan land use designation of Low Density Residential (LR-7) and Zoning of Two-Family
Residence (R2). In addition, the proposed project would require deviations from the development
standards contained within the R2 zone. In order to allow this project, the applicant is requesting
deviations from the Two-Family Residence (R2) development standards contained in Section 41-246
et seq. of the Santa Ana Municipal Code (SAMC) as allowed by SAMC 41-1608 and the State of
California Government Code Section 65915-65918 as an incentive to affordable housing production.
Additionally, the applicant is requesting approval of Tentative Tract Map No. 2009-01 (County Map
No. 17323) for condominium purposes, to subdivide the property to allow the sale of the units.
Property Description
The project site is located at the western edge of the City, west of Euclid Street and north of Fifth
Street. The site is a rectangular shaped, flat parcel with an area of 16,879 square feet. The site is
vacant, but was previously developed with a residence and various accessory structures that were
demolished in 2007. The site is located within the Two-Family Residence (R2) zoning district and
32A-3 Exhibit A 2
DBA 2010-01 and TTM 2009-01
August 9, 2010
Page 2
has a General Plan Land Use designation of Low Density Residential (LR-7) that allows residential
development at a maximum density of seven dwelling units per acre. The project site is
surrounded by residential uses to the north, south, east and west (Exhibits 1 and 2).
Proiect Description
Integrity Builders is proposing to construct five two-story residential units. Two of the units will be
detached single-family dwellings located towards the front of the lot. The remaining three units will
be attached in a townhome configuration and located towards the rear of the lot. In compliance
with the Citywide Design Standards, all units will be oriented towards the street, with direct
pedestrian access to the street though a small common open space.
Each unit will have three bedrooms, two full bathrooms and a powder room, an attached two-car
garage and laundry facilities. Access to four of the five garages will be off a common driveway to
the east of the property. One of the single family residences will have direct access to the street
via a private driveway, which will provide additional parking for that residence. The unit sizes will
vary from 1,400 to 1,500 square feet. Each unit will have private open space, which will exceed
the minimum requirement. Perimeter block walls along the west, north and east sides are
proposed for privacy. A landscape buffer will be provided along the driveway along the northern
and eastern property lines to provide a visual barrier, as well as provide for storm water retention.
(Exhibits-3 and 4)
The project has been designed in a contemporary Mediterranean style. In order to create
architectural variety, each building will have slightly different detailing. The walls will be painted in
muted natural tones and accented with stone veneer bases. The windows will be multi-pane with
decorative wrought iron railing on the balconies. The primary entrance to each unit will be through
covered porches, accented with simple columns. The roof will be tile in a terra cotta color. To
maintain architectural consistency, the residences will incorporate enhanced architectural
elements, including complete architectural treatments on all sides of each building (Exhibit 5).
Lastly, a tract map for condominium purposes is proposed, since the units will be offered for sale.
Common open space, driveways and common landscape will be held in common ownership, under
the administration of a homeowners' association (HOA), while each unit and their corresponding
private open space and garages will be held in individual ownership (Exhibit 6).
Density Bonus Law Background
The State density bonus law was created to encourage the production of quality affordable housing
by allowing cities to approve qualified projects that would have units, or densities, in excess of
cities' statutory density caps established under General Plans and zoning. The rationale here
being that baseline density, in part, establishes a property's market value. By allowing more units
to be constructed on the property than would otherwise be allowed under the existing zoning, it
32A-4
DBA 2010-01 and TTM 2009-01
August 9, 2010
Page 3
creates an economic advantage to the developer, which could then be used to subsidize any gap
between market rents or sales prices and the price at which the unit would be affordable to those
making less than the area median income.
Under this law California cities, including charter cities, were required to adopt implementing
legislation, which Santa Ana did in 2001 with the adoption of SAMC Article XVI.I - Density Bonus
for Affordable Housing. Under this article, developers wishing to construct projects that meet the
requirement for a specified percentage of affordable housing units may request to enter into a
Density Bonus Agreement with the City and, pending approval of such an agreement, may also
request deviations from the City's existing density caps and development standards that would be
necessary to facilitate the development of the project.
Under the State Density Bonus Law cities must grant the request of the applicant, unless it adopts
written findings, based upon substantial evidence, that the request is not necessary in order to
provide affordable housing, or that there would be a specific adverse impact upon public health
and safety, or the physical environment, or on specified historic properties, and for which there is
no feasible way of mitigating or avoiding the impact without rendering the project unaffordable to
low and moderate income households.
The City further supported the provisions of the State Density Bonus Law through the adoption of
policies contained within the 2006-2014 Housing Element. In particular, Housing Program No. 25
of the Housing Implementation Summary states that the City will implement the density bonus
ordinance to assist in the development of extremely low, very low, and low income rental units, and
moderate income condos, and senior housing.
Density Bonus Implementation of the Proposed Project
Pursuant to the State law, the applicant is seeking an increase in density to that allowed by the
Zoning district and General Plan, as well as deviations from the City's adopted development
standards. As such, the developer has requested to enter into a Density Bonus Agreement with
the City. The Density Bonus Agreement will be considered separately by the City Council and is
not the subject of this request. Any recommendations for approval of the deviations from densities
and development standards will be pending until approval of the Agreement.
Both the State Density Bonus Law and the SAMC state that the law only applies to projects of five
or more units. The proposed project meets this standard. There is a difference between the State
law and the SAMC regarding the total number of units which may be constructed in excess of
adopted densities. In the case of the SAMC, the development shall be permitted a density bonus
of the amount of units requested by the applicant, up to a total project dwelling unit count of 125
percent. Under State law, the minimum bonus for projects providing 20 percent of the units to
Lower income households is 35 percent. The following table details the percentage increases as
they pertain to this project.
32A-5
DBA 2010-01 and TTM 2009-01
August 9, 2010
Page 4
City of Santa Ana Permitted Densities
No. of units allowed under LR-7 General Plan 2
No. of units allowed under R2 Zoning 4
No. of units proposed 5 - 20% increase from zoning/250% increase
from GP
Because the City's existing Density Bonus Law has not been amended to comply with the most
current State Density Bonus Law and because the SAMC states that it shall be in compliance with
the State law "as it may be amended from time to time," the provisions of the State law will take
precedence in this case. The State law and the SAMC state that "density bonus" means a density
increase over the otherwise maximum allowable residential density under the applicable zoning
ordinance and land use element of the general plan. State law, however, does not interpret the
granting of a density bonus in excess of the density found within the agency's General Plan to
constitute inconsistency with the General Plan. The City's Zoning and General Plan land use
designations for this property are inconsistent with each other. As such, staff finds that the density
provisions of the R2 zone are the most appropriate to apply in this case, which results in an
effective density increase of 20 percent.
Under State Law, in order to be eligible for this density increase, the applicant must provide a
minimum of 10 percent of the units to Lower income households. In this case, the applicant will be
providing one unit, or 20 percent, of the proposed development to a low income household, which
is in excess of the minimum requirement.
The applicant is also requesting two deviations from the development standards to facilitate the
construction of the affordable unit. The R2 zoning district establishes a minimum lot area for lots
containing two or more dwellings. It requires 6,000 square feet for the first unit, and 3,000 square
feet for each additional unit. Since the lot is 16,879 square feet, a total of four units are allowed. A
lot size of 18,000 square feet would be required to construct five units. The applicant is requesting
a deviation from the minimum lot size of 18,000 square feet for five units, to 16,879 square feet - a
reduction of 1,121 square feet. The R2 zone requires that no more than two dwelling units, other
than townhouses, be attached together. The applicant could have developed this site using the
Townhouse standards, but these are intended for much larger developments and would have been
incompatible with the scale and character of the neighborhood. The applicant is requesting a
deviation from this standard to allow three units, rather than two, to be attached.
With the approval of the two deviations requested by the applicant, the project will comply with all
applicable development standards established in the R2 zoning district and the Citywide Design
Guidelines. Additionally the project will be consistent with the purpose of the General Plan Land
Use Element, as it will further the goals and policies of the plan and not obstruct their attainment.
Specifically, it would further the following General Plan Land Use Element goals and policies:
32A-6
DBA 2010-01 and TTM 2009-01
August 9, 2010
Page 5
Goal 3
Preserve and improve the character and integrity of existing
neighborhoods.
Policy 3.1 Support development which provides a positive contribution to
neighborhood character and identity.
Policy 3.5 Encourage new development and/or additions to existing development
that is compatible in scale, and consistent with the architectural style and
character of the neighborhood.
Policy 5.5 Encourage development which is compatible with, and supportive of
surrounding land uses.
Tentative Tract Map
In order to allow the sale of the units, the applicant is proposing a tentative tract map for
condominium purposes. Since the topography of the site is flat and its geometry is rectangular, the
site has been determined to be physically suitable for a residential development at the proposed
density since there are no physical constraints on the site to preclude development.
In summary, the density bonus deviations requested will allow for the construction of one additional
affordable unit, increasing the total supply of affordable for-sale units available in the community
for that level of affordability. Staff recommends that the Planning Commission adopt a resolution
approving the requested deviations from Chapter 41of the Santa Ana Municipal Code (SAMC),
contained in Density Bonus Application No. 2010-01 and adopt a resolution approving Tentative
Tract Map No. 2009-01, as conditioned.
CEQA Compliance
In accordance with the California Environmental Quality Act, the proposed project is exempt from
CEQA review per Section 15332, class 32. The Class 32 exemption allows infill development
projects occurring on lots less than five acres, where the site has no value as a habitat for
endangered species, is adequately served by all required utilities and public services, will not result in
any significant effects relating to traffic, noise, air and water quality, and is consistent with the
applicable general plan, zoning and other policies. A Notice of Exemption for Environmental Review
No. 2008-115 will be filed for this project.
Lu Linn us, AIA
Senior P nner
LL:jm
LL\reports\pc&za\dba10-01ttm09-01 5301 Silver Dr.pc
Vince Fregoso, AI P
Principal Planner
32A-7
Al GENERAL AGRICULTURAL
-B PARKING MODIFICATION
Cl COMMUNITY COMMERCIAL
C1-MD COMMUNITY COMMERCIAL-MUSEUM DISTRICT
C2 GENERAL COMMERCIAL
C3 CENTRAL BUSINESS
C3-A CENTRAL BUSINESS-ARTISTS' VILLAGE
C4 PLANNED SHOPPING CENTER
C5 ARTERIAL COMMERCIAL
CR COMMERCIAL RESIDENTIAL
C-SM SOUTH MAIN STREET COMMERCIAL DISTRICT
-F FLOOR AREA RATIO
GC GOVERNMENT CENTER
M7 LIGHT INDUSTRIAL
M2 HEAVY INDUSTRIAL
MO MILITARY OPERATIONS
0 OPEN SPACE
-OZ OVERLAYZONE
P PROFESSIONAL
PCD PLANNED COMMUNITY DEVELOPMENT
PD PLANNED DEVELOPMENT
PRD PLANNED RESIDENTIAL DEVELOPMENT
R7 SINGLE-FAMILY RESIDENCE
R2 TWO-FAMILY RESIDENCE
R3 MULTIPLE-FAMILY RESIDENCE
R4 SUBURBAN APARTMENT
RE RESIDENTIAL ESTATE
SD SPECIFIC DEVELOPMENT
SP SPECIFIC PLAN
DBA 2010-1/TTM 09-1
SILVER DRIVE RESIDENTIAL DEVELOPMENT
K-. 5301 WEST SILVER DRIVE
" = 1000 FEET - - = 500 FEET
1
P L A N N I N G A N D B U I L D I N G A G E N C Y
VICINITY MAP
EXHIBIT 1
32A-8
J J
RHONDA AVE. ?FAM. RES.
LL 2
N w
S 1 N G L E FA M IL Y E S I D E N I A L Zz cr
2
2 SINGLE FAMILY
2 SINGLE FAMILY SINGLE FAMILY SFR RES! EN TIAL
SINGLE M1LY SFR R SID EN IAL RES DENTI L
RE IDEN IAL SFR
w W
J
ROOSEVELT ST. Q
2 2
SING E FAMILY S I, V G L E F M 1 Y R S I D N T I A L SFR SIN LE F M1LY
N 2
RES DENTIAL RES DENT L J SINGLE
g ¢ FAM. RES.
LL Z
w SFR
J ?
PROJECT LLI
SIXTH
ST.
SINGLE FAMILY RESID NT AL 3
2
SFR SITE S FR SFR
COM. J
J
SILVER DR u
.
0
2 w w
SINGLE FAMILY ESI EN IAL
S R
SFR
J
(?
J
p
SFR CHURCH u
Z Z co
J W w
2 Z cn cn ¢
SFR S N L E A 1 L Y R E I D E N T I A L v3 ¢
FIFTH
2
S NG E 2 Cl)
FAM. ES. SFR W
Z
X
Q
ST.
S
NG
E
FA
IL
R
EST
E
T I A
L P
?PJP
?
P?
PARKING
S NG E FA IL R EST E TIAL
DBA 2010-1/TTM 09-1
SILVER DRIVE RESIDENTIAL DEVELOPMENT
T,. 5301 WEST SILVER DRIVE
P L A N N 1 N G A N D B U I L D I N G A G E N C Y
LAND USE MAP
EXHIBIT 2
32A-9
mesio ?rwwen..........
ecggF
3 N ??gg
6°'?$A? ?? ssoimis Navy ?00 Fs s e
_
m4
® &
{;?$°?opp?
eaafCe&
• MEN a
i
?yqGq®?11s $555 a; ? ? Ca ? ? I ep ya qe
?YER® D?RI ?m teQQQQ ?nSBGe G?
`H
m
7-2
?!W
0
z
a m
9
g rT-
F1 gig If
0
g
$? y
a.
ii!1
9 iev iidl
§fill
i
21:!!
i
4 !
!„ 4
w%
J S Iii ?
91e!i
t
m1
s ?.
nJ
i
w .iP
32A-10
IU ,P
g cs^
a ?6} 4tsamis ??a ??e b'¦ ?y a
6P pr a v ?? d°?3
gy @z g@e p6cSP ¦¦¦ $93 p55yns Y qq a i Y gg xx yy `8
r tl T $ ±g4S?488 T 1f5A.T a C Y <<<, Ii b tl L ?$
T V
V lINn NV]d
a?
:R
W'
?k R
55
?g g
°• R
?k a
DBA 10-1/TTM 09-1
EXHIBIT 4
Page 1 of 4
32A-11
poll 2
HEII
s'$Ob"11S Q v:
: I3 3 E t
?} Sa=a
Q?t g"pa? pP q? a M I M l eP g q a @
1150 E 0R ?IIAd a k aaQa &58 B e 6?
r T T T
'uR
Q?n
g?
a
Page 2 of 4
32A-12
e'Et ° I I
UPI, d w y:tj4?ty a ?u? s'S?Id?l$ Na Zv ??¦ s R [ $ fi _ 3
?i t'p,,°gggg • MEN
ru r r r x444 Mt! It
3'0'0 SllNn Ndld
4
eL
?a
Page 3 of 4
32A-13
S?
"
z
?
?•;f?
? ?u
SCIO
7LS a
v:
¦
t
4
g? .E ?, a a ag
6's? Q
Pei$E?
r T
r 5?®?$ ?
??R? e Y! ? aQQ4 ?$8 ? ? ?8
3'a'0 Si Nn Wd
Page 4 of 4
eta
a
32A-14
_ Zo r
O N
o-x
O
Q
e u J
W
J
W
O
?
Q
> O
n ]*
m
Z
(9P
a
y
~ 3
O8
U)8
? W
~L
0
?
4 ?
N
wp
d
Z Q0
¦OO
NOO
ONE
Y
Z
Q u
4
Z
O
1-
Q
d ° r d W ?
of ?.
w
W 3
E J
Wq
N=
LLI
U
Z
Z
d W
O
? J
? 4 W
i W
0
r
Z
? Q
U)
H
W
U) a
' L U;2!
? a
Zz
- a
C6
u.i
d .:, d a a 4 /? ?
DBA 10-1/77M 09-1 W N
z
EXHIBIT 5 C,
Page 1 of 4
zR 7
N
p p?
z
d .m,, + + m
m d + O
? q
O
u,
N k'
W
W
=p
Hi «
Yd
a W
W
? q SL oW m
N Y m
W
O O
z ?
GS
A
¦00
NOO
NO¦
m
5d
L Q a
?E
Y
t
a 8 ? W
3 ? ' 7
Z
m Q
T
?i
d' iy?
Z
O_
=
z
O
U
m w
? J
w Z
d .
.a d
k W 4
F-
5
Lu
? ;
a
1
m
LJLI p
U)
a
w
~
1 w Z
}
T 4
g}pp
i W
56 uj
1 Q
3 y v,
3 ? Z
CI) a
Z
w
>- w
- ?o
U >
W
~ o
Zm
Page 2 of 4
0o
Za -
N
(9 A
Z
0 k'?
rya m
D N
MET]
a
¦¦¦
d ?e d
Y x Y Z
O
a _z
w
J
>
LJ
yy
mu W
=4
?3
LO
#
S 1
Z
m
?? 6! IZ
113
4H Li
? J
T U
Z
H
m W
ED FO
0
T W
W
z
w
WZ
a
Z z
- a
>- Ld
cc
?e w
W
Page 3 of 4 z co
- U"
U iJH
Za -
N
QV
0.p
05 i
W
O Z
?
Q
Q$?
?o
- a
Z
0
ONE
d Q Z
o
W J
r
r m = 4
?_
N `y
Z J
W 4
Hf
Q
W
s
? r U
Z
el cn,
F-
w
Ld
m ri-
O
j
w
o
LLJ
a
H
z
w
CO.,
W a
? a
Z z
- a
>- L
F- 21
?cc
?r w
LL!
z
"
Page 4 of 4 -
,
L LI I?
0 o z-
0, 0
m -
M .al 5
LF ? K a o,
J ?Sb
,,, ,Y n .:.•?-:...-y... ? ?2 0 a an• • • , q. nn •• ••wnw waw as •wa•w• O•••••ww a ?tQ• ???? n ,? ?J
it nor ?-a af??. „$o
"ol
O 7 - 94-ZlZ 660 -NdH
10-ZIZ 660 NdH35
0 8 p ---- -- ... ... - " .. _ - 3 a
D Po r R R ..
,J F5 s T-???
Z Z
(f) 0
.17
Lli
C17
_. O o a a r'
Q O
c LL '2
-7
Z
U? L„ Jlli?Z?o. oa --- Zia -
p p s
U? W
uI
< LL CL
li II a
/ Q U Q Z
(y U7 - z
LLI
0 Ed
O - ? ? I co ?l ? ? J. ?; ? a
1- h $ .
I- ?
r a
I
W °m LU 2( L- m ? .f
7 d m?awtl ` `? ~ N O I Z
Gl O 4 °u
sue- ?Jl- c
?-->?-
wi h
5
7 y 'y h ?9
d'
a
Pr
?j a
r H,w
DBA 10-11TTM 09-1
EXHIBIT 6
32A-19
32A-20
JF 8/9/10
RESOLUTION NO. 2010-08
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF SANTA ANA APPROVING TENTATIVE
TRACT MAP NO. 2009-01 AND DENSITY BONUS
APPLICATION NO. 2010-01 TO ALLOW A FIVE-UNIT
RESIDENTIAL DEVELOPMENT AT 5301 WEST SILVER
DRIVE
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:
A. Applicant is requesting approval of Tentative Tract Map No. NO. 2009-01
to five condominiums at 5301 W. Silver Drive.
B. Applicant also is requesting approval of Density Bonus Application 2010-
01 approving deviations from the Two-Family Residence (R2) pursuant to
Government Code Sections 65915, et seq.
C. The Planning Commission of the City of Santa Ana held a duly noticed
public hearing on August 9, 2010.
Section 2. The Planning Commission of the City of Santa Ana hereby finds,
determines and declares as to Tentative Tract Map No. No. 2009-01 as follows:
A. The proposed project, as conditioned, and its design and improvements
are consistent with the Single-Family Residential (LR-7) designation on
the General Plan and are otherwise consistent with all other Elements of
the General Plan.
The project will be consistent with purpose of the general plan land
use element, as it will further the goals and policies of the plan and
not obstruct their attainment. Specifically, it will further Goal 3,
Preserve and improve the character and integrity of existing
neighborhood; Policy 3.1, Support development which provides a
positive contribution to neighborhood character and identity; Police
3.5, Encourage new development and/or additions to existing
development that is compatible in scale, and consistent with the
architectural style and character of the neighborhood and Policy
5.5, Encourage development which is compatible with, and
supportive of surrounding land uses. Additionally, the project
provides infill housing, increases the housing stock, and preserves
the character and integrity of the surrounding residential
Resolution No. 2010-08
Page 1 of 7
32A-21
neighborhoods. The project is not located within any specific plan
area of the city.
B. The proposed project, as conditioned, conforms to all applicable
requirements of the zoning and subdivision codes as well as other
applicable city ordinances.
The proposed project meets the letter and intent of the State of
California Subdivision Map Act and conforms to Chapters 34 and
41 of the Santa Ana Municipal Code, which pertain to the
subdivision, development standards for the site and the density
bonus law. Additionally, the project will conform to other applicable
codes and city ordinances as identified during the Site Plan Review
process (DP No. 2008-36). Covenants, Conditions and Restrictions
(CC&Rs) are required for the project, which need to be approved by
the City prior to the City Council approval of the final map.
C. The project site is physically suitable for the type and density of the
proposed project.
The proposed site consists of approximately 16,879 within the Two-
Family Residence (R2) zoning district. The site's lot frontage,
which is 97.5 feet, exceeds the minimum required, providing ample
area to provide the requested two driveways off Silver Street.
Since the topography of the site is flat and its geometry is
rectangular, the site has been determined to be physically suitable
for a residential development at the proposed density since there
are no physical constraints on the site to preclude development.
D. The design and improvements of the proposed project will not cause
substantial environmental damage or substantially and avoidable injure
fish or wild life or their habitat.
The project site is located in an urbanized area and was previously
developed with a single family dwelling and accessory structures.
The project can be characterized as an infill development
adequately served by all required utilities and public services.
There are no known fish or wildlife populations existing on the site.
Therefore, the proposed subdivision will not cause any substantial
environmental damage or substantially and avoidably injure fish
and wildlife or their habitat.
E. The design or improvements of the proposed project will not cause serious
public health problems.
The design or improvements of the proposed development will not
cause serious public health problems. The proposed project will
Resolution No. 2010-08
Page 2 of 7
32A-22
comply with all applicable Title 24, California Building Code, and all
other applicable regulations intended to safeguard the public. As a
residential use, there will be no hazardous material, noxious fumes
or vibrations generated by the use.
F. The design or improvements of the proposed project will not conflict with
easements acquired by the public at large for access through or use of
property within the proposed project.
Approval of the tentative tract map for condominium purposed for
this project will not create conflicts with any easements necessary
for the public access through the subject property, as there are
none identified on the most current title report.
Section 3. The Planning Commission of the City of Santa Ana hereby finds,
determines and declares as to Density Bonus Application No. 2010-01 as follows:
A. The proposed development will materially assist in accomplishing the goal of
providing affordable housing opportunities in economically balanced communities
throughout the city.
The proposed five-unit residential development will materially assist in
accomplishing the goal of providing affordable housing opportunities in an
economically balanced community. The applicant will hold and convey
one unit, representing 20 percent of the proposed development, to Low
Income Households, thus increasing the total supply of affordable units
available for that level of affordability.
B. The development will not be inconsistent with the purpose of the underlying zone
or applicable designation in the general plan land use element.
As proposed, the project will be consistent with the purpose of the
underlying zone. With the approval of the two deviations requested by the
applicant, the project will comply with all applicable development
standards established in the R2 zoning district and the guidelines within
Citywide design standards. Additionally, the project will be consistent with
purpose of the general plan land use element, as it will further the goals
and policies of the plan and not obstruct their attainment. Specifically, it
will further Goal 3, Preserve and improve the character and integrity of
existing neighborhood; Policy 3.1, Support development which provides a
positive contribution to neighborhood character and identity; Police 3.5,
Encourage new development and/or additions to existing development
that is compatible in scale, and consistent with the architectural style and
character of the neighborhood and Policy 5.5, Encourage development
which is compatible with, and supportive of surrounding land uses.
Resolution No. 2010-08
Page 3 of 7
32A-23
C. 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-
1604.
The deviations of the development standards requested are necessary to
make the project economically feasible.
Section 4. In accordance with the California Environmental Quality Act, the
proposed project is exempt from CEQA review per Section 15332, class 32. The Class 32
exemption allows infill development projects occurring on lots less than five acres, where
the site has no value as a habitat for endangered species, is adequately served by all
required utilities and public services, will not result in any significant effects relating to
traffic, noise, air and water quality, and is consistent with the applicable general plan,
zoning and other policies. A Notice of Exemption for Environmental Review No. 2008-115
will be filed for this project.
Section 5. The Planning Commission after conducting the public hearing hereby
approves Tentative Tract Map No. NO. 2009-01 and Density Bonus Application 2010-01
as conditioned in Exhibit "A" attached hereto and incorporated herein. This decision is
based upon the evidence submitted at the abovesaid hearing, which includes but is not
limited to: the Request for Planning Commission Action dated August 9, 2010 and
exhibits attached thereto; and the public testimony, all of which are incorporated herein
by this reference.
ADOPTED this 9th day of August, 2010 by the following vote:
AYES: Commissioners: Alderete, Turner, Walters, Yrarrazaval (4)
NOES: Commissioners: Acosta (1)
ABSENT: Commissioners: Betancourt, Gartner (2)
ABSTENTIONS: Commissioners: None (0)
Eric Alderete
Chairman
Resolution No. 2010-08
Page 4 of 7
32A-24
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Martha Ramirez, Planning Commission Secretary, do hereby attest to and certify the
attached Resolution No. 2010-08 to be the original resolution adopted by the Planning
Commission of the City of Santa Ana on August 9, 2010.
Date:
Planning Commission Secretary
City of Santa Ana
Resolution No. 2010-08
Page 5 of 7
32A-25
CONDITIONS Of APPROVAL FOR DENSITY BONUS APPLICATION NO. 2010-01
AND TENTATIVE TRACT MAP NO. 2009-01
Conditions for Approval
Tentative Tract Map No. 2009-01 and Density Bonus Application No. 2010-01 are
approved subject to compliance, to the reasonable satisfaction of the Planning Manager,
with all applicable sections of the Santa Ana Municipal Code, the California Administrative
Code, the Title 24, California Building Code and all other applicable regulations.
The applicant must comply in full with each and every condition listed below prior to
exercising the rights conferred by this tentative tract map.
The applicant must remain in compliance with all conditions listed below throughout the life
of the tract map. Failure to comply with each and every condition may result in the
revocation of the vesting tentative tract map.
A. Planning Division
All proposed site improvements must conform to the Site Plan Review
approval of DP No. 2008-36.
2. The Tentative Tract Map, Final Map, and all improvements required of the
subdivider shall be in accordance with the design standards and
specifications of the Santa Ana Municipal Code and the requirements of
the State Subdivision Map Act.
3. The covenants, conditions, and restrictions (CC&Rs) shall be reviewed
and approved prior to approval of the final tract map, and shall be
recorded prior to the issuance of building permits.
4. The final tract map shall be recorded within one year of the date of
approval of the tentative map by the City Council.
5. The final tract map shall be approved and recorded prior to issuance of
building permits.
6. Two copies of the recorded final map and CC&Rs shall be submitted each
to the Planning Division, Fire Department, Building Division, and Public
Works Agency within 10 days of recordation. All easements shall be
recorded prior to or concurrent with the final map.
7. All utility meters and boxes shall be placed in vaults below grade. Any
above grade meter and/or box shall be reviewed by the Planning Division
Manager to ensure all options have been reviewed.
Resolution No. 2010-08
Page 6of7
32A-26
8. Common area improvements shall be installed, inspected, and approved
prior to the utility release of the first unit.
9. The applicant shall obtain written consent from every adjacent owner prior
to the demolition and construction of the common perimeter wall to the
west and north and east of the project.
Resolution No. 2010-08
Page 7 of 7
32A-27
DENSITY BONUS HOUSING AGREEMENT
THIS DENSITY BONUS HOUSING AGREEMENT (the "Agreement") is hereby
entered into as of this day of , 20, by and between INTEGRITY
BUILDERS & ASSOCIATES, INC., a California corporation ("Owner") and the CITY OF
SANTA ANA, a charter city and municipal corporation ("City")
RECITALS
A. Owner is the fee title absolute owner of certain real property within the City of
Santa Ana, County of Orange, State of California commonly known as 5301 Silver Drive and
legally described in Attachment No. 1 hereto which is incorporated herein by this reference (the
"Property").
B. Section 41-1600 et seq. of the Santa Ana Municipal Code and section 65915 et
seq. of the California Government Code 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 shelter for all economic segments of the community and to provide a balance of
housing opportunities for low income, very low-income, and senior households throughout the
city.
C. Owner is proposing to the City to develop five residential for-sale, condominium
units on the Property (the "Project"), as more particularly set forth in Tentative Tract Map No.
2009-1 (County Map No. 17323) , Density Bonus Application No. 2010-1,
Environmental Review No. 2008-115, and Development Plan Review No. DP 2008-36.
D. The parties hereto desire by this Agreement for Owner to agree to hold and
convey one (1) unit within the Project (the "Affordable Unit") to Low Income Households, and
in return for the City to agree to provide for additional units beyond that which is allowed
pursuant to the City's General Plan together with other concessions to Owner. Section 41-1602
of the Municipal Code referenced above, require such agreement to be the subject of a density
housing bonus agreement.
E. In light of the purpose of the City and State density bonus law, and the express
provisions of section 65915(n), the City has determined to grant Owner's application for a
density bonus and related concessions and waivers.
F. In addition to the density bonus granted to Owner, the Project has been granted
waivers and concessions of City development standards including (i) reduction of minimum lot
size for five (5) units from 18,000 to 16,879 feet, and (ii) increasing the number of attached units
in the R2 zone from 2 units to 3 units.
EXHIBIT B
1
32A-28
NOW, THEREFORE, Owner and City hereby agree as follows:
1. Definitions. The following terms which are used herein shall have the
following definitions:
"Affordable Housing Cost" means a price which is established at a level which
ensures that the monthly housing costs of (a) any Low Income Household purchaser which earns not
greater than eighty percent (80%) of the Area Median Income adjusted for household size, does not
exceed the product of thirty percent (30%) multiplied by seventy percent (70%) of the Area Median
Income adjusted for Household Size Appropriate to the Unit, and (b) any Low Income Household
purchaser which earns not less than seventy percent (70%) or more than eighty percent (80%) of
Area Median Income adjusted for household size, the payment of which does not exceed thirty
percent (30%) of the gross income of such purchaser. Such housing costs (including mortgage
payments, a reasonable utility allowance and similar costs) shall not exceed the maximum amount
applicable to lower income households pursuant to California Health and Safety Code section
50052.5. Such housing costs (including mortgage payments, a reasonable utility allowance and
similar costs) shall not exceed the maximum amount applicable to low income households pursuant
to California Health and Safety Code Section 50052.5(b)(3).
"Affordable Unit" is defined in Recital D of this Agreement.
"Agreement" means this Density Housing Bonus Agreement between the City
and the Owner.
"Area Median Income" means the median income figures for Orange County
adopted by the State of California pursuant to Health and Safety Code section 50093, as
amended from time to time.
"City" means the City of Santa Ana, a charter city and municipal corporation.
"Household Size Appropriate for Unit" for the purpose of determining Affordable
Housing Cost only, means three persons for a two bedroom Affordable Unit and four persons for a
three bedroom Affordable Unit. Household Size Appropriate for Unit is not intended to constitute a
limitation on the number of persons who may live in the Unit.
"Low Income Household" shall mean a person and family whose income does
not exceed the qualifying limits for lower income families in Orange County as established by
the State of California pursuant to Health and Safety Code section 50079.5, as such qualifying
limit is amended from time to time.
corporation.
"Owner" shall mean Integrity Builders & Associates, Inc., a California
"Project" means the construction of five (5) for-sale condominium units,
including one (1) Affordable Unit, the sale thereof to a qualified purchaser of the Affordable
Unit at an Affordable Housing Cost and any other activities undertaken in connection therewith.
2. Provision of Affordable Ownership Housing. One for-sale,
condominium residential unit which are required to be developed as part of Project shall be sold
to a Low Income Household at the prices set forth in paragraph 3 hereof (the "Affordable Unit").
The specific location of the Affordable Unit is as shown on the map attached hereto as
Attachment No. 2, which is incorporated herein by this reference.
2
32A-29
3. Maximum Sales Price. Owner covenants and agrees that the Affordable
Unit shall be sold at no more than the Affordable Housing Cost to Low Income Household.
4. Selection of Buyer. Owner shall be responsible for the selection of
buyers for the Affordable Unit in compliance with the criteria set forth in paragraph 5 of this
Agreement. Owner shall develop a plan for the marketing of the Houses and the selection of
buyers of the Affordable Unit, consistent with California Redevelopment law. Such marketing
plan shall be submitted to the City for its reasonable approval, and Owner shall carry out the
marketing in accordance with such approved plan. Preference shall be given to buyers who have
been displaced by redevelopment activities by City in the implementation of its redevelopment
plans. Owner covenants and agrees that no sales of Affordable Unit shall be made to any person
or family related, within the fourth (4th) degree of consanguinity, to Owner or to any member,
shareholder or partner of Owner, or anyone related by blood or marriage to any such shareholder
or partner; provided, however, that the foregoing shall not prevent the sale of the Affordable Unit
to an employee of Owner who is otherwise unrelated to any member, shareholder or partner of
the Owner provided such employee otherwise meets the requirements set forth in this Agreement
for the sale of an Affordable Unit.
5. Income of Buyers.
Owner shall, upon execution of this Agreement, prepare and submit to the City
for review and approval, which shall not be unreasonably withheld, a marketing plan for
prospective buyers of the Affordable Unit. Based upon the marketing plan, Owner shall prepare
and keep a written list of prospective buyers for the Affordable Unit.
No later than ninety (90) days before the Affordable Unit is ready for occupancy,
Owner shall contact all persons or families on the list and ask each to submit a income
computation and certification form; provided, however, that City and Owner shall cooperate to
determine terms and conditions under which buyers may pre-qualify to purchase an Affordable
Unit.
As early as practicable, but at least sixty (60) days prior to the sale of the
Affordable Unit, the Owner shall submit to City a completed income computation and
certification form signed by the prospective buyer under penalty of perjury, in such form as may
be provided by City for each prospective buyer, together with all information it has reviewed and
considered in its selection process (the "Notice of Intended Sale"). City shall have ten (10)
working days to approve or reject the Notice of Intended Sale. City's decision shall be final.
For each buyer approved by the City, Owner shall use its best efforts to provide
and cause, a true and correct copy of the complete lender's package shall be submitted to the
City at the time of submission to the prospective lender, for City confirmation of income status.
The lender's package submitted to the City shall be a true and correct copy of the complete
package submitted by the unit's buyer to the prospective lender. City shall complete its review
of the complete lender's package within fourteen (14) working days.
Owner shall and hereby does covenant that no sale shall be made of the
Affordable Unit unless and until the City has issued a certificate approving that the proposed
buyer qualifies as a Low Income Household. In the event a sale is made in violation of the terms
of this Agreement or false or misleading statements are made in any documents submitted to the
City, the City shall have the right to file an appropriate action at law or in equity unless Owner
substitutes another otherwise qualifying unit as the Affordable Unit. In the event that Owner
32A-30
fails to comply with this provision, costs, liabilities and obligations incurred by Owner and the
buyer of the Affordable Unit for the return of any monies paid or received or for any costs and
legal expenses shall be borne jointly and severally by the Owner and the buyer and such parties
shall hold the City harmless and reimburse its costs and expenses, excluding attorneys' fees.
Gross income shall be determined in accordance with Section 8 guidelines and California
Health and Safety Code section 50093 (together with interpreting Regulations). Owner shall
obtain a certification from each buyer purchasing an Affordable Unit demonstrating that such
buyer is a Low Income Household and meets the eligibility requirements established for the
Affordable Unit. Owner shall verify the income certification of the proposed buyer as set forth
below. Owner shall verify the income of each proposed purchaser of the Affordable Unit by at
least one of the following methods as appropriate to the proposed purchaser:
a. obtain two (2) paycheck stubs from the prospective buyers two (2) most recent
pay periods.
b. obtain a true copy of the last two income tax returns from the prospective buyers
for the last two (2) tax years in which a return was filed.
C. obtain an income verification certification from the employer of the prospective
buyers.
d. obtain an income verification certification from the Social Security
Administration and/or the California Department of Social Services if the prospective
buyers receive assistance from such agencies.
e. obtain an alternate form of income verification reasonably acceptable to the
Agency, if none of the above forms of verification is available to the Developer.
f. City may reasonably request additional information regarding the buyer and/or the
proposed transaction as is already in the custody of Owner, and Owner shall provide such
information as soon as is practicable.
6. Non-Discrimination Covenant. Owner, on behalf of itself and its
successors and assigns, Owner herein covenants by and for itself, its successors and assigns, that
there shall be no discrimination against or segregation of, any person or group of persons on
account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926. 1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale,
lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed,
nor shall the grantee or any person claiming under or through him or her, establish or permit any
practice or practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises
herein conveyed. The foregoing covenants shall run with the land.
Notwithstanding the immediately preceding paragraph, with respect to familial status, the
immediately preceding paragraph shall not be construed to apply to housing for older persons, as
defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in
the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4,
51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d)
of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section
4
32A-31
12955 of the Government Code shall apply to the immediately preceding paragraph.
All deeds, leases or contracts entered into by Owner relating to the Affordable Unit on
the Property shall contain or be subject to substantially the following nondiscrimination or
nonsegregation clauses:
a. In deeds: "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators, and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or group of
persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein
conveyed, nor shall the grantee or any person claiming under or through him or her, establish or
permit any practice or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the
premises herein conveyed. The foregoing covenants shall run with the land.
"Notwithstanding the immediately preceding paragraph, with respect to familial status,
the immediately preceding paragraph shall not be construed to apply to housing for older
persons, as defined in Section 12955.9 of the Government Code. With respect to familial status,
nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3,
51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and
(p) of Section 12955 of the Government Code shall apply to the immediately preceding
paragraph."
b. In leases: "The lessee herein covenants by and for himself or herself, his
or her heirs, executors, administrators, and assigns, and all persons claiming under or through
him or her, and this lease is made and accepted upon and subject to the following conditions:
"That there shall be no discrimination against or segregation of any person or group of
persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises
herein leased nor shall the lessee himself or herself, or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees,
subtenants, or vendees in the premises herein leased.
"Notwithstanding the immediately preceding paragraph, with respect to familial status,
the immediately preceding paragraph shall not be construed to apply to housing for older
persons, as defined in Section 12955.9 of the Government Code. With respect to familial status,
nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3,
51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and
(p) of Section 12955 of the Government Code shall apply to the immediately preceding
paragraph."
C. In contracts: "There shall be no discrimination against or segregation of,
any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section
32A-32
12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of
the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment
of the premises which are the subject of this Agreement, nor shall the grantee or any person
claiming under or through him or her, establish or permit any practice or practices of
discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The
foregoing covenants shall run with the land."
"Notwithstanding the immediately preceding paragraph, with respect to familial status,
the immediately preceding paragraph shall not be construed to apply to housing for older
persons, as defined in Section 12955.9 of the Government Code. With respect to familial status,
nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3,
51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and
(p) of Section 12955 of the Government Code shall apply to the immediately preceding
paragraph."
d. The foregoing covenants shall, without regard to technical classification
and designation, be binding for the benefit and in favor of Agency, its successors and assigns,
any occupants of the Affordable Unit, and any successor in interest to the Affordable Unit. The
covenants against discrimination shall remain in effect in perpetuity. In no event shall anything
in this paragraph 6 be construed as authority to lease the Affordable Unit.
7. Notice of Resale Restrictions and Declaration of Conditions, Covenants and
Restrictions.
a. The parties agree and acknowledge that Attachment No. 3 to this
Agreement shall be executed by Owner and recorded prior to City approval of the final map for
this Project.
b. The parties agree and acknowledge that Attachment No. 3 to this
Agreement is intended and shall be interpreted to restrict the use of the unit to owner-occupancy,
and shall restrict subsequent resales of the Affordable Unit to Low Income Households, at an
Affordable Housing Cost, who agree to occupy the Affordable Unit as their principal place of
residency; and that this restriction shall continue to apply to each Affordable Unit until the forty-
fifth (45th) anniversary of the issuance of a Certificate of Occupancy by Santa Ana for the
Affordable Unit.
C. The parties further agree and acknowledge that this Agreement is intended
and shall be interpreted to provide that, for purposes of this Agreement, an individual or family
who qualifies as a Low Income Household at the time he or she or they first takes title to the
Affordable Unit shall be deemed a Low Income Household so long as he or she or they continue
to hold title to such Affordable Unit even though the Low Income Household subsequently
ceases to meet the income or other requirements of a Low Income Household; and that when the
owner of an Affordable Unit releases title to an Affordable Unit, such unit shall be deemed as
occupied by a Low Income Household if it is held vacant and available for such occupancy until
title is transferred to another Low Income Household pursuant to this Agreement.
8. Reserved.
9. Indemnity.
6
32A-33
a. The parties agree that City neither undertakes nor assumes any
responsibility to review, inspect, supervise, approve or inform Owner of any matter in
connection with the construction of the Project, including matters relating to contractors,
subcontractors and materialmen, or the workmanship of or materials used by any of them, and
Owner shall entirely on its own judgment with respect to such matters and acknowledges that
any review, inspection, supervision, approval or information supplied to Owner by City in
connection with such matters is solely for the protection of City and neither Owner nor any third
party is entitled to rely upon it.
b. The parties agree and acknowledge that City is not a partner, joint
venturer, alter-ego, manager, controlling person or other business associate or participant of any
kind with Owner and that City does not intend to ever assume such status.
C. The parties agree and acknowledge that City's activities in
connection with the Affordable Unit or the Project shall not be "outside the scope of activities of
a lender of money" within the meaning of California Civil Code section 3434, as amended from
time to time, and City does not intend nor shall this Agreement be interpreted to imply that the
City has assumed any responsibility to any person for the quality or safety of the Affordable Unit
or the Project.
d. The parties agree and acknowledge that City shall not be deemed
responsible for, or participant in any acts, omissions or decisions of Owner.
e. The parties agree and acknowledge that City shall not be directly
or indirectly liable or responsible for any loss or injury of any kind to any person or property
arising from any construction on, or occupancy of, the Affordable Unit or the Project, whether
alleged to arise from:
i. any defect in any building, grading, landscaping, or other
onsite or offsite improvements constructed by Owner;
ii. any act or omission of Owner or of any of Owner's agents,
employees, independent contractors, licensees, invitees or volunteers; or any accidents relating to
the Affordable Unit or Project or any fire or other casualty or hazard thereon.
f. Owner agrees to guarantee its work from defects for a period of at
least one (1) year after construction is complete, with a five (5) year guarantee for the roof of
each Unit. Owner shall provide the buyer of the Affordable Unit with all of the manufacturer's
warranties and product information. Owner shall also provide the buyer of the Affordable Unit
with a commercially reasonable Homeowner Protection Plan.
g. Owner agrees to and shall indemnify and hold harmless City, its
officers, agents, employees, consultants, special counsel, and representatives from liability: (1)
for personal injury, damages, just compensation, restitution, judicial or equitable relief arising
out of claims for personal injury, including health, and claims for property damage, which may
arise from or relating to (i) Owner's obligations of actions undertaken pursuant to this
Agreement; ( ii) a claim, demand or other cause of action that any person has or asserts against
Owner; ( iii) any act or omission of Owner or its contractors, subcontractors, agents, employees,
or other persons acting on their behalf which relates to the Affordable Unit or the Project; or ( iv)
the Owner's initial sale of the Affordable Unit or Project, except to the extent such matters are
caused by the negligence or willful misconduct of City or its officers, employees, agents,
consultants, special counsel or representatives. This indemnity and hold harmless agreement
32A-34
applies to all claims for damages, just compensation, restitution, judicial or equitable relief
suffered, or alleged to have been suffered, by reason of the events referred to in this paragraph or
by reason of the terms of, or effects, arising from this Agreement. The Owner further agrees to
indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs
to the extent there is no conflict of interest, Owner should be allowed to use the legal counsel
which is also representing Owner for special counsel to be selected by the City, regarding any
action by a third party challenging the validity of this Agreement, or asserting that personal
injury, damages, just compensation, restitution, judicial or equitable relief due to personal or
property rights arises by reason of the terms of, or effects arising from this Agreement. City may
make all reasonable decisions with respect to its representation in any legal proceeding. Owner's
obligations under this paragraph shall survive the termination of this Agreement.
10. Compliance with Laws.
a. Except as set forth expressly herein, the Owner shall carry out the
design and construction of the Project in conformity with all applicable laws, including all
applicable state labor standards, the City zoning and development standards, building, plumbing,
mechanical and electrical codes, and all other provisions of the City of Santa Ana Municipal
Code, and all applicable disabled and handicapped access requirements, including without
limitation the Americans With Disabilities Act. 42 U.S.C. section 12101, et seq., Government
Code section 4450, et seq.
b. During the time of Owner's ownership of the Property, the Owner
shall maintain the Property and all improvements thereon, including all landscaping, in
compliance with the terms of all applicable provisions of the City of Santa Ana Municipal Code.
Each homeowner shall be responsible for maintenance of their own property after transfer of
title.
11. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of Owner and Santa Ana and their respective successors and assigns.
12. Governing Law. This Agreement has been entered into, is to be
performed entirely within, and shall be governed by and construed in accordance with the laws
of the State of California.
13. Further Assurances. Each party hereto covenants and agrees to perform
all acts and things, and to prepare, execute, and deliver such written agreements, documents, and
instruments as may be reasonably necessary to carry out the terms and provisions of this
Agreement.
14. No Third Parties Benefited. This Agreement is made for the purposes of
setting forth rights and obligations of Owner and Santa Ana, and no other person shall have any
rights hereunder or by reason hereof.
8
32A-35
15. Notices. Any notice which a party may desire to give to the other parry
under this Agreement must be in writing and may be given by first class mail, postage prepaid,
personal delivery or reputable overnight delivery service, addressed to the parry to whom the
notice is directed as set forth below, or at any other address as that party may later designate by
notice.
To City: City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
Attention: Clerk of the Council
To Owner: Integrity Builders & Associates, Inc.
1220 Pioneer Street, Unit D
Brea, California 92821
Attention: Edward A. Padilla, Jr.
Any written notice, demand or communication shall be deemed received upon
delivery or refusal to accept delivery if delivered by hand, shall be deemed delivered on the next
business day if delivered by reputable overnight delivery service, and shall be deemed received
on the third day from the date it is postmarked if delivered by registered or certified mail.
16. Non-Discrimination in Employment. In performing its obligations
under this Agreement, Owner 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. Owner affirms that it is an equal opportunity employer and
shall comply with all applicable federal, state and local laws and regulations
17. No Conflict of Interest. No member, official or employee of the City shall
have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official
or employee participate in any decision relating to the Agreement which affects his or her personal
interests or the interests of any corporation, partnership or association in which he or she is, directly
or indirectly, interested.
18. Nonliability of Santa Ana Officials and Employees. No member, official
or employee of Santa Ana shall be personally liable to the Owner, or any successor-in-interest, in
the event of any default or breach by the City or for any amount which may become due to Owner
or to its successor, or on any obligation under the terms of this Agreement.
19. Effective Date of Agreement. This Agreement shall be dated and effective
as of the date of the action by the City by which it approves this Agreement.
20. Entirety of Agreement. This Agreement integrates all of the terms and
conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous
agreements between the parties with respect to the matters contained herein.
32A-36
None of the terms, covenants, agreements or conditions set forth in this Agreement
shall be deemed to be merged with any grant deed conveying title to the Property, and this
Agreement shall continue in full force and effect before and after such conveyance.
All waivers of the provisions of this Agreement must be in writing and signed by the
appropriate authorities of City and the Owner, and all amendments hereto must be in writing and
signed by the appropriate authorities of City and the Owner.
21. Legal Advice. Each party represents and warrants to the other the
following: they have carefully read this Agreement, and in signing this Agreement, they do so
with full knowledge of any right which they may have; they have received independent legal
advice from their respective legal counsel as to the matters set forth in this Agreement, or have
knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and,
they have freely signed this Agreement without any reliance upon any agreement, promise,
statement or representation by or on behalf of the other parry, or their respective agents,
employees, or attorneys, except as specifically set forth in this Agreement, and without duress or
coercion, whether economic or otherwise.
22. Time of Essence. Time is expressly made of the essence with respect to
the performance by the City and the Owner of each and every obligation and condition of this
Agreement.
23. Cooperation. Each party agrees to cooperate with the other in this
transaction and, in that regard, to sign any and all documents which may be reasonably
necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement
including, but not limited to, releases or additional agreements.
(Signatures on page below)
10
32A-37
NOW, THEREFORE, the parties hereto have executed this Agreement as of the
date set forth above.
INTEGRITY BUILDERS & ASSOCIATES,
INC., a California corporation
By:
EDWARD A. PADILLA, JR.
Responsible Managing Officer, Chief Executive
Officer, President
CITY OF SANTA ANA
a charter city and municipal corporation
ATTEST:
Maria D. Huizar David N. Ream
Clerk of the Council City Manager
APPROVED AS TO FORM:
JOSEPH W.FLETCHER
City Attorney
By:
Lisa E. Storck
Assistant City Attorney
32A-38
ATTACHMENT NO. I
LEGAL DESCRIPTION
12
32A-39
ATTACHMENT NO.2
MAP SHOWING LOCATION OF AFFORDABLE UNIT
13
32A-40
ATTACHMENT NO.3
City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
NOTICE OF RESALE RESTRICTIONS
AND
DECLARATION OF CONDITIONS, COVENANTS
AND RESTRICTIONS FOR PROPERTY
THIS NOTICE OF RESALE RESTRICTIONS AND DECLARATION OF
CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the
"Declaration") is hereby made as of this day of , by and between
INTEGRITY BUILDERS & ASSOCIATES, INC., a California corporation ("Covenantor");
and the CITY OF SANTA ANA, a charter city ("City" or "Covenantee")
RECITALS
A. Covenantor is the fee title absolute owner of certain real property within the City of
Santa Ana, County of Orange, State of California commonly known as 5301 Silver Drive and
legally described in Exhibit A hereto which is incorporated herein by this reference (the "Property").
B. On , 20 , the City Council of the City approved a Density Housing
Bonus Agreement with Covenantor and Tentative Tract Map No. . The City imposed
conditions of approval on Covenantor to agree to the execution of the Density Housing Bonus
Agreement and to execute and record these Declaration to provide that 20% of the total number of
units to be constructed by Covenantor on the Property, or one (1) unit to be for-sale, condominium
affordable housing for low income households, as defined in California Health and Safety Code
(H&SC) sections 50079.5, 50105 and 50106.
NOW THEREFORE, the parties hereto agree and covenant as follows:
1. Affordability Covenant. Covenantor agrees for itself and its successor and assigns,
and for every successor to Covenantor's interest in the affordable unit, or any part thereto, that the
property located at 5301 Silver Drive, Santa Ana, California, consisting of one (1) unit, shall be
designated as affordable for low income households and shall be held subject to this Declaration for
forty-five (45) years from the date of City issuance of a Notice of Completion for said unit, as
follows:
a. The affordable unit shall only be owned and occupied by "Low Income
Households" which shall mean persons or families earning not more than eighty percent (80%) or
14
32A-41
less of the Orange County median income, adjusted for household size appropriate for the unit as
determined by the City based on statistics published by the United States Department of Housing &
Urban Development or established by the State of California pursuant to Health & Safety Code
section 50093, or successor statute.
b. The affordable unit shall only be sold at an "Affordable Housing Cost" to
Low Income Households. Affordable Housing Cost shall be the permitted gross sales price of the
unit as established by the Agency, upon request of the Covenantor or owner of the affordable unit.
C. The term of this agreement shall commence on the date this Declaration is
recorded with the Recorder's Office of the County of Orange and shall continue for forty-five (45)
years from the date a Notice of Completion is issued by the City ("Affordability Period").
d. The covenant contained in this Section I shall run with the affordable unit and
shall automatically terminate and be of no further force and effect upon the expiration of the
Affordability Period.
2. Transfer of Affordable Unit. No transfer of the affordable unit shall occur until the
Covenantee determines (a) that the prospective purchaser intends to occupy the affordable unit as the
proposed purchaser's principal residence, (b) that the proposed purchaser qualifies as a Low Income
Household, and (c) that the proposed transfer will occur at an Affordable Housing Cost. In the event
that Covenantor, including successors and assigns, desires to sell the unit, Covenantor shall send
written notice thereof to the Covenantee at the following addresses:
To City: City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
Attention: Clerk of the Council
a. Within days of such notice, the Covenantor, or its successor and
assigns, shall submit to Covenantee a transfer application. Such transfer application shall include
(a) a certification of the proposed purchaser's intent to occupy the affordable unit as the proposed
purchaser's principal residence, (b) a certification to demonstrate that the purchaser qualifies as a
Low Income Household, and (c) an affidavit disclosing that the proposed purchase price is equal to
or less than the Affordable Housing Cost, and (d) a disclosure statement executed by the proposed
purchaser which certifies that the proposed purchaser may only sell the unit at an Affordable Housing
Cost to a Low Income Household, that the maximum permitted sales price may be less than fair
market value of the affordable unit, and that the affordable unit must be owner-occupied at all times
and shall not be rented or leased. If Covenantee has pre-existing forms regarding such certifications
and affidavits, such forms shall be used by Covenantor.
b. Covenantor, or its successor and assigns, shall cooperate with Covenantee in
providing such forms to the prospective purchaser and assisting prospective purchasers to prepare
such forms and provide such required information to the Covenantee.
C. The Covenantee shall review and approve the transfer only if it finds that the
Covenantor (and proposed purchaser) have submitted all such forms necessary to make the
determinations required pursuant to Section 1 of this Declaration. The City shall endeavor to make
such determination within fourteen (14) days from the submission of the completed forms. If the
Covenantee fails to approve or disapprove a submission within such fourteen (14) day period, the
15
32A-42
Covenantee shall be deemed to have denied such transfer.
THE COVENANTOR AND EACH SUCCESSOR, HEIR, OR
ASSIGN OF THE COVENANTOR UNDERSTANDS THAT
THE DETERMINATION OF THE AFFORDABLE HOUSING
COST CAN BE MADE ONLY AT THE TIME OF THE
PROPOSED TRANSFER, TAKING INTO CONSIDERATION
INTEREST RATES, THE TERMS OF SALE OFFERED TO
AND THE ECONOMIC CIRCUMSTANCES OF THE
PROPOSED PURCHASER, AND ECONOMIC
CIRCUMSTANCES OF THE PROPOSED PURCHASER AND
OTHER FACTORS THAT CANNOT BE ACCURATELY
PREDICTED, AND THAT THE TRANSFER PRICE
PERMITTED UNDER THIS DECLARATION MAY BE LES
THAN THE FAIR MARKET VALUE OF THE PROPERTY
AND MAY NOT INCREASE OR DECREASE IN THE SAME
MANNER AS OTHER SIMILAR REAL PROPERTY WHICH
IS NOT ENCUMBERED BY THIS DECLARATION. EACH
SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR
FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN
SETTING THE TRANSFER PRICE, THE PRIMARY
OBJECTIVE OF THE COVENANTEE AND THIS
DECLARATION IS TO PROVIDE HOUSING TO LOW
INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING
COST.
Covenantor's Initials
3. Subsequent Covenants. Covenantor, and its successor and assigns, shall include in
the escrow instructions and Purchase and Sale Agreements with subsequent purchasers a provision
which requires each subsequent purchaser to record a covenant which will run with the land and bind
all successors-in-interest or assignees that will ensure that all subsequent buyers and occupants
quality as Low Income Households. Said covenant(s) shall remain in full force and effect for the
Affordability Period set forth in Section I of this Declaration.
4 Annual Monitoring. Throughout the term of this Agreement, Covenantor, and its
successor and assigns, shall comply with all applicable record keeping and monitoring
requirements established by California law and this Agreement. Covenantor, and its successor
and assigns, shall cooperate with the City's monitoring requirements established by California
law.
5. Non-Discrimination Covenant. Covenantor, on behalf of itself and its
successors and assigns, covenants and agrees that there shall be no discrimination against or
segregation of any, nor shall Covenantor itself or any person claiming under or through
Covenantor permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number or use of the affordable unit. Covenantor shall include in each
16
32A-43
grant deed for the affordable unit a provision substantially similar to the following:
"The grantee herein covenants by and for itself, its successors and assigns,
and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person, or group of persons,
on account of race, color, religion, sex or gender, marital status, national
origin or ancestry in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the property herein conveyed, nor shall the grantee
itself or any person claiming under or through it, establish or permit any
such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or vendees in the property herein conveyed. The
foregoing covenants shall run with the land.
6. Covenants Do Not Impair Lien. No violation or breach of this Declaration shall
defeat or render invalid or in any way impair any lien or charge of any mortgage or deed of trust or
security agreement recorded against the Property.
7. Covenants for Benefit of Covenantee. This Declaration and all covenants
contained herein without regard to technical classification shall be binding for the benefit of
Covenantee and such covenants shall run in favor of Covenantee for the entire period during which
time such covenants shall be in full force and effect.
8. Governing Law. This Agreement has been entered into, is to be performed
entirely within, and shall be governed by and construed in accordance with the laws of the State
of California.
(Signatures commence on next page)
17
32A-44
NOW, THEREFORE, the parties hereto have executed this Agreement as of the
date set forth above.
COVENANTOR:
INTEGRITY BUILDINGS & ASSOCIATES,
INC., a California Corporation
By:
EDWARD A. PADILLA, JR.
Responsible Managing Officer, Chief Executive
Officer, President
CITY OF SANTA ANA, a charter city
ATTEST:
Maria D. Huizar David N. Ream
Clerk of the Council City Manager
APPROVED AS TO FORM:
JOSEPH W.FLETCHER
City Attorney
By:
Lisa E. Storck
Assistant City Attorney
18
32A-45
EXHIBIT "A"
LEGAL DESCRIPTION
19
32A-46