HomeMy WebLinkAbout19H - INCLUSIONARY AGMT 1901 E FIRST STREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 18, 2014
TITLE:
INCLUSIONARY HOUSING AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND 1901 E. FIRST
STREET OWNER, LLC —1901 E. FIRST STREET
(STRATEGIC PLAN NO. 5,3B)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
F11 »:100A01
❑ As Recommended
❑ As Amended
❑ Ordinance on 1� Reading
❑ Ordinance on 2n° Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Receive and file the Inclusionary Housing Agreement with 1901 First Street Owner, LLC.
DISCUSSION
On November 28, 2011, the City Council adopted the Housing Opportunity Ordinance
( "Ordinance ") to encourage the development of affordable housing by requiring the inclusion of
affordable units within developments that involve either an increase in the density otherwise
available under applicable zoning and development standards; a change in land use designation
from a zoning regulation that does not permit residential uses to one that does permit residential
uses; or, the conversion of rental units to condominium ownership. This ordinance applied to all
projects entitled after November 2011, with the exception of any project that had an approved
development agreement.
Lyon Communities, developer of the 1901 E. First Street project, was intending to comply with
the affordable housing provisions of a previously approved development agreement for a project
that was entitled on the site in 2007. This agreement did not require the construction of
affordable units but required an in -lieu fee in the amount of $3,000 per unit. Prior to the approval
of the new entitlements for the Lyon project, the issue of providing on -site units at the project was
raised. After discussions with the applicant, on November 18, 2013, the City Council adopted
Ordinance No. NS -2850 and amended Development Agreement No. 2007 -01. The revised
agreement modified the inclusionary housing requirements for the Project and mandated the
construction of ten (10) low- income affordable units within the project.
The developer has been working with staff to complete the documents required by the Housing
Opportunity Ordinance. The Inclusionary Housing Agreement (Exhibit 1) satisfies the
inclusionary housing requirement of the Project and is consistent with the standards set forth in
the Ordinance.
19H -1
Inclusionary Housing Agreement —
1901 E. First Street
November 18, 2014
Page 2
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet the City's efforts to meet Goal #5
Community Health, Livability, Engagement & Sustainability, Objective #313 (Ensure compliance
with the City's Housing Opportunity Ordinance by requiring rental and ownership housing projects
that meet specified criteria provide a minimum of 15% affordable units).
FISCAL IMPACT
There is no fiscal impact associated with this action
K Ily R d
Executi Director
Community Development Agency
Exhibit 1: Inclusionary Housing Agreement
KR/nv /vf
19H -2
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
Attention: City Clerk
To be recorded without fee. (Space Above This Line For Recorder's Use Only)
(Government Code, §§ 6103 and 27383)
INCLUSIONARY HOUSING AGREEMENT
1901 E. FIRST STREET
-- — THIS INCLUSIONARY HOUSING AGREEMENT is dated as of October 15,
2014, by and between the CITY OF SANTA ANA, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State
of California (the "City "), and 1901 FIRST STREET OWNER, LLC, a Delaware
limited- iiability company- ("Property- Owner ").
RECITALS
A. The City's Housing Opportunity ( "Ordinance ") was adopted by the City
Council on November 28, 2011 and is codified in Article XVIII.1 Section 41
— 1900 of the City's Municipal Code.
B. The Property Owner is the fee owner of the Property located at 1901 E.
First Street, Santa Ana, California.
C. The Property Owner desires to, at the Property Owner's sole cost and
expense, develop a two hundred and sixty -four (264) unit Project on the
Property.
D. On November 18, 2013, the City Council approved Vesting Tentative Map
No. 2013 -04 and Site Plan Review No. 2013 -03 (the "Site Plan "). On that
date, the City Council also adopted Ordinance No. NS -2850 approving an
amendment to Development Agreement No. 2007 -01(as amended, the
"DA "), which collectively set forth the City Approvals for the Project.
Incluslonary Housing Agreement — Rental Project Page 1
City of Santa Ana Exhibit 7 September 18, 2014
19H -3
E. Development Agreement No. 2007 -01, as originally approved and
effective, was in effect at the time of the adoption of the Ordinance and
addressed the affordable housing requirements for the Project, Therefore,
pursuant to Section 41- 1903(b) of the Ordinance, the Project was exempt
from the requirements of the Ordinance.
F. The DA, however, provides, among other things, as follows:
"5.9 Inclusionary Housing, Owner shall produce and incorporate a total
of ten (10) low- income affordable units, including five (5) one bedroom
units and five (5) two- bedroom units, within the Project pursuant to the
terms and regulations of Article XVIII.I of Chapter 41 of the Santa Ana
Municipal Code,"
G. Prior to the signing of this Inclusionary Housing Agreement, the Program
Director, acting on behalf of the City, approved an Inclusionary Housing
Plan that was prepared by the Property Owner in accordance with the
requirements of the DA and consistent with the standards for inclusionary
units set forth in Section 41 -1906 of the Ordinance.
H. This Inclusionary Housing Agreement, when fully executed by the City and
the Property Owner and recorded, is intended to satisfy the requirement
that the Property Owner enter into an Inclusionary Housing Agreement as
contemplated by the DA.
NOW THEREFORE, in consideration of the mutual promises set forth in this
Inclusionary Housing Agreement and other good and valuable consideration, the
receipt and sufficiency of which is acknowledged by the City and the Property
Owner, the Parties, agree as follows:
DEFINITIONS OF TERMS
The following words, terms and phrases are used in this Inclusionary Housing
Agreement unless the particular context of usage of a word, term or phrase
requires another interpretation.
Affordability Covenants shall mean the Gross Household Income and
Affordable Rent standards that will be applied to the Inclusionary Units
Incrus ion ary Housing Agreement— Rental Project Page
City of Santa Ana 19H-4 September 18, 2014
throughout the Affordability Period. The covenants are defined in this
Inclusionary Housing Agreement.
Affordability Period shall be set at 55 years from the Recordation Date.
Affordable Housing Cost means the maximum costs that can be borne by Low
Income Households based on the requirements imposed by HSC Section 50053.
The calculation methodology is described in Exhibit 7.
Affordable Rent shall mean the Affordable Housing Cost minus the applicable
Utilities Allowance for each Inclusionary Unit.
Applicable Provisions means those provisions of the Ordinance which shall
apply to the Project. Because the Project was otherwise exempt from the
Ordinance, it is necessary to clarify which sections of the Ordinance have been
made applicable to the Project by Section 5.9 of the DA. Those provisions are
Sections 4T 1901,1905 (a), (c), and -(d)1, 1906(a), (d), (e), (f), and (g), and 1910.
Should the rental units in the Project be sold as ownership units at any time
during -the AffordahilitVPeriod; then (i ec I n "I- c shall become an
"Applicable Provision" and (ii) Section 41- 1906(d) shall no longer be an
"Applicable Provision."
California Health and Safety Code ( "HSC ") provides definitions of household
income and affordable housing costs that are used in this Inclusionary Housing
Agreement.
City means the City of Santa Ana, California.
City Approvals are defined as the entitlement approvals and the Inclusionary
Housing Plan that has been approved by the Program Director prior to the
issuance of building permits for the Project.
City Council means the City of Santa Ana City Council.
Default means the failure of a Party to perform any action or covenant required
by this Inclusionary Housing Agreement within the time period provided herein
following notice and opportunity to cure, as set forth in Article 3 — Section I of this
Inclusionary Housing Agreement.
1 For purposes of this Inclusionary Housing Agreement, the words "fully implemented," as
used in Section 41- 1905(d) shall mean only that this Inclusionary Housing Agreement, including
the Inclusionary Housing Plan, has been approved by the City.
Inclusionary Housing Agreement — Rental Project Page 3
City of Santa Ana 19H-5 September 18, 2014
Draft Manual is the draft Affordable Rental Housing Draft Manual dated August
8, 2014, which has been prepared by the City for the implementation and
enforcement of the Ordinance (the "Draft Manual "). The Draft Manual is attached
as Exhibit 12 to this Inclusionary Housing Agreement. As used within this
Agreement, "Draft Manual' refers only to the Draft Manual attached as Exhibit 12
and not to any revised or final version of the Draft Manual. Except as agreed to
in writing by Property Owner, the only Affordable Rental Housing Draft Manual
that will be applicable to the Project is the Draft Manual.
Effective Date means the date on which this Inclusionary Housing Agreement is
approved and executed by appropriate authorities of the Property Owner and the
City; and this Inclusionary Housing Agreement is delivered to the Property
Owner.
Eligible Tenant shall mean a tenant who meets the eligibility criteria set forth in
this Inclusionary Housing Agreement and in the Housing Plan.
Executive Director is the Executive Director of the Community Development
Agency of the City.
Exhibits means the exhibits to this Inclusionary Housing Agreement, which are
listed in Article 1 - Section V.
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. The definition
includes the following specific requirements:
1. Except as provided in Subdivision 2, all payments from all sources
received by the head of Household (even if temporarily absent) and each
additional member of the Household who is not a minor shall be included
in the annual income of a Household. Gross Household Income shall
include, but not be limited to:
a. The gross amount, before any payroll deductions, of wages and
salaries, overtime pay, commissions, fees, tips and bonuses;
b. The net income from operation of a business or profession or from
rental or real or personal property (for this purpose, expenditures
nclusionary Housing Agreement — Rental Project Page
City of Santa Ana 19H-6 September 18, 2014
for business expansion or amortization of capital indebtedness shall
not be deducted to determine the net income from a business);
C. Interest and dividends;
d. The full amount of periodic payments received from social security,
annuities, insurance policies, retirement funds, pensions, disability
or death benefits and other similar types of periodic receipts (but
see subdivision (2)(c));
e. Payments in lieu of earnings, such as unemployment and disability
compensation, worker's compensation and severance pay;
f. Public Assistance. If the public assistance payment includes an
amount specifically designated for shelter and utilities which is
subject to adjustment by the public assistance agency in
accordance with the actual cost of shelter and utilities, the amount
of public assistance income to be included as income shall consist
of: -
i. The amount of the allowance or grant exclusive of the
amount specifically designated for shelter and utilities, plus
ii. The maximum amount which the public assistance agency
could in fact allow for the Household for shelter and utilities,
g. Periodic and determinable allowances such as alimony and child
support payments, and regular contributions or gifts received from
persons not residing in the dwelling;
h. All regular pay, special pay and allowances of a member of the
Armed Forces (whether or not living in the dwelling) who is head of
the Household or spouse or domestic partner (but see subdivision
(2) (e));
Where a Household has net assets in excess of $5,000, income
shall include the actual amount of income, if any, derived from all of
the net Household assets or 10 percent of the value of all such
assets, whichever is greater. For purposes of this section, net
Household assets means value of equity in real property other than
the Household's full -time residence, savings, stocks, bonds, and
-- —
Incluslonary Housing Ayreemont — Ronal Project Pages
City of Santa Ana 19H-7 September 18, 2014
other forms of capital investment. The value of necessary items
such as furniture and automobiles shall be excluded.
2. The following items shall not be considered as income:
a. Casual, sporadic or irregular gifts;
b. Amounts which are specifically for or in reimbursement of the cost
of medical expenses;
C. Lump -sum additions to Household assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains. and
settlement for personal or property losses;
d. Amounts of educational scholarships paid directly to the student or
to the educational institution, and amounts paid by the government
to a veteran for use in meeting the costs of tuition, fees, books and
ipment, An➢ afrraants -of--srrcl>—scholarships, or payments—to
veterans not used for the above purposes of which are available for
subsistence are to be included in income;
e. The special pay to a serviceman head of a Household away from
home and exposed to hostile fire;
f. Relocation payments made pursuant to federal, state, or local
relocation law;
g. Foster child care payments;
h. The value of coupon allotments for the purchase of food pursuant
Jo the Food Stamp Art of 1964 which is in excess of the amount
actually charged the eligible Household;
Payments received pursuant to participation in the following
volunteer programs under the ACTION Agency:
National Volunteer Antipoverty Programs which include
VISTA, Service Learning Programs and Special Volunteer
Programs.
lndusionary Housing Agreement— Rental Project Page
City of Santa Ana 19H-8 September 18, 2014
ii. National Older American Volunteer Programs for persons
aged 60 and over which include Retired Senior Volunteer
Programs, Foster Grandparent Program, Older American
Community Services Program, and National Volunteer
Program to Assist Small Business Experience, Service
Corps of Retired Executive (SCORE) and Active Corps of
Executives (ACE).
Household means all the persons who will occupy the Inclusionary Unit. A child
who is subject to a legally- binding shared- custody agreement, in which the child
resides with the Household at least 50% of the time, is counted as a mernber of
the Household. Excluded from the definition of Household are live -in
caregivers /caretakers, foster children, unborn children and children being
pursued for legal custody or adoption that are not currently living with the
Household.
HCD means the California Department of Housing and Community Development.
HUD means the United States Department of Housing and Urban Development.
Inclusionary Housing Plan means a plan submitted for approval to the Program
Director that details the manner in which the Inclusionary Housing obligations will
be fulfilled by the Project. The approved Inclusionary Housing Plan (i) is
attached as Exhibit 4 to and incorporated in its entirety within this Inclusionary
Housing Agreement and (ii) shall be deemed a substantive part of this
Inclusionary Housing Agreement.
Inclusionary Unit means a rental unit in within the Project that is made
affordable by covenants or conditions restricting occupancy and rental rate
charged as set forth within the Inclusionary Housing Plan and which is occupied
by an Eligible Tenant.
Low Income refers to Households whose incomes meet the standards defined
by the H &SC Section 50079.5. Generally, Low Income means household
income that does not exceed 80% of the County Median Income, as adjusted for
Household size. However, the maximum household income amount for Low
Income Households shall be set at the amount published by HCD annually.
Low Income Household means individuals or Households who have an
adjusted Gross Income that does not exceed Low Income.
Inclusionary Housing _Agreement— Rerital Project —Page-7
City of Santa Ana 19H-9 September 18, 2014
Market Rate Unit means any unit in the Project that is not restricted for rental
and occupancy by Eligible Tenants.
Median Income is calculated by HCD using non - aggregated census income data
and applying trending factors for metropolitan statistical areas (MSA) throughout
the country. The MSA for Santa Ana is Orange County.
Ordinance means the Housing Opportunity Ordinance adopted by the City
Council on November 28, 2011, which is codified in Article XV111.1 Section 41-
1900 et seq. of the City's Municipal Code.
Party and Parties mean the City and the Property Owner as parties to this
Inclusionary Housing Agreement.
Program Director has the day -to -day authority for making determinations
related to the Ordinance and the Draft Manual. The Program Director will be
appointed by the Executive Director.
Project means the rental housing project proposed to be developed on the
Property at the Property Owner's sole cost and expense.
Property means the real property on which the Project is to be developed, for
which the legal description is provided in Exhibit 1 to the Inclusionary Housing
Agreement.
Property Owner shall mean the owner of the Project that includes Inclusionary
Units.
Recordation Date means the date of recording in the Official Records of the
County of Orange, California of this Inclusionary Housing Agreement.
Utilities Allowance shall mean the Utility Allowance Schedule published
annually by the Orange County Housing Authority.
— — — — _.— .._.__......------- ....._._.
Inclusionary Housing Agreement — Rental Project Page 8
City of Santa Ana September 18, 2014
19H -10
D ; AND EXHIBITS
I-A. City. The City is a municipal corporation. The address of the City, for the
purposes of this Inclusionary Housing Agreement, is:
City of Santa Ana
Community Development Agency
20 Civic Center Plaza, M -25
Santa Ana, California 92701
Attention: Program Director
Facsimile Number: (714) 667 -2225
# =f� P y Owner. tie Prosy �r is a Delaware limited liability
company. The principal office and address of the Property Owner, for the
purposes of this Inclusionary Housing Agreement, is:
1901 FIRST STREET OWNER, LLC
4901 Birch Street
Newport Beach, CA 92660
Attention: Chief Executive Officer
Facsimile Number: (949) 252 -9202
The representations and warranties of the Property Owner contained in Article 1
— Section II shall be based upon the actual knowledge of the Property Owner as
of the Effective Date, and are true and correct as of the Effective Date. The
Property Owner's liability for misrepresentation or breach of warranty,
representation or covenant, wherever contained in this Inclusionary Housing
Agreement, shall survive the execution and delivery of this Inclusionary Housing
Agreement.
Inelusionary Housing Agreement— Rental Project J Page 9
City of Santa Ana 19H -11 September 18, 2014
The Property Owner hereby makes the following representations, covenants and
warranties, and Property Owner acknowledges that the execution of this
Inclusionary Housing Agreement by the City has been made in material reliance
by the City on such covenants, representations and warranties:
II -A. The Property Owner is a Delaware limited liability company, lawfully
entitled to do business in the State of California and the City. The
Property Owner has the legal right, power and authority to enter into this
Inclusionary Housing Agreement and the instruments and documents
referenced herein and to consummate the transaction contemplated
hereby. The persons executing this Inclusionary Housing Agreement and
the instruments referenced herein on behalf of the Property Owner hereby
represent and warrant that such persons have the power, right and
authority to bind the Property Owner.
II -13. The Property Owner has taken all requisite action and obtained all
requisite consents in connection with entering into this Inclusionary
susingATeement - and —t-he- nstraments—and- documents reference-'
herein and the consummation of the transactions contemplated hereby,
and no consent of any other party is required for the Property Owner's
authorization to enter into this Inclusionary Housing Agreement
Il -C. Neither the execution of this Inclusionary Housing Agreement nor the
consummation of the transactions contemplated hereby shall result in a
breach of or constitute a default under any other agreement, document,
instrument, or other obligation to which the Property Owner is a party or by
which the Property Owner may be bound, or to the best of the Property
Owner's knowledge, under any law, statute, ordinance, governmental
regulation or any writ, injunction, order or decree of any court or
governmental body applicable to the Property Owner or to the Property.
II -D. This Inclusionary Housing Agreement is, and all agreements, instruments
and documents to be executed by the Property Owner pursuant to this
Inclusionary Housing Agreement shall be duly executed by, and to the
best of the Property Owner's knowledge, are or shall be valid and legally
binding upon the Property Owner and enforceable in accordance with their
respective terms.
Inclusionary Housing Agreement— Rental Project Page 10
City of Santa Ana 19H-12 September 18, 2014
Ill. Effective Date
This Inclusionary Housing Agreement is dated ' October 15 _, 2014, for
reference purposes only. This Inclusionary Housing Agreement shall go into
effect on the Effective Date.
IV. Recitals
The Recitals set forth above are true and correct. The Recitals are incorporated
into this Inclusionary Housing Agreement in their entirety by this reference.
V. Exhibit List
The following is a list of the exhibits attached to this Inclusionary Housing
Agreement. Each of the exhibits is incorporated by reference into the text of this
Inclusionary Housing Agreement.
Exhibit I Legal Description of Property
Exhibit 2 Site Map Depicting Property and Zoning Designations
Exhibit 3 Property Owner's Phasing Map
Exhibit 4 Inclusionary Housing Plan
Exhibit 5 Schedule of Performance for Release of Inclusionary Units
Exhibit 6 Household Income Limits - 2014
Exhibit 7 Calculation of Affordable Housing Cost — 2014
Exhibit 8 Utilities Allowances - 2014
Exhibit 9 Annual Tenant Recertification Form
Exhibit 10 Annual Rental Housing Compliance Report
Exhibit 11 Notice of Affordability Covenants on Transfer of the Property
Exhibit 12 Draft Affordable Rental Housing Administrative Procedures (the
"Draft Manual")
ndu5i onary Mousing Agreement—Rental Prated t P age 11
City of Santa Ana September 18, 2014
19H-13
ARTICLE 2
INCLUSIONARY HOUSING COVENANTS
I. Property Owner Compliance with the Applicable Provisions
The Property Owner acknowledges that the City has provided the Property
Owner with copies of the Ordinance and the Draft Manual. The Property Owner
is familiar with the requirements of the Applicable Provisions. Property Owner
shall ensure that the Project complies in all material respects with this
Inclusionary Housing Agreement, including the Applicable Provisions, the
Inclusionary Housing Plan attached as Exhibit 4, and the Draft Manual.
However, any inconsistency between one or more of the Inclusionary Housing
Agreement, the Inclusionary Housing Plan, and /or the Draft Manual shall be
resolved in favor of the terms of this Inclusionary Housing Agreement Any
inconsistency solely between the Inclusionary Housing Plan and the Draft
Manual shall be resolved in favor of the terms of tuft Manual. Without
limiting the range of inconsistencies which now or potentially may exist between
those documents, specific inconsistencies exist at the time that the City and the
Property Owner entered into this Inclusionary Housing Agreement which shall be
controlled by the terms of this Inclusionary Housing Agreement are noted and
addressed as follows:
None of the provisions of the Draft Manual pertaining to Very Low Income
and /or Very Low Income Households shall apply to the Project.
• None of the provisions of the Draft Manual pertaining to In Lieu Fees shall
apply to the Project.
• Modifications to the Draft Manual or to Draft, as defined in the Draft
Manual, shall not apply to the Project.
• The number, location, and type of Inclusionary Units shall be governed
exclusively by this Inclusionary Housing Agreement.
• The number of bedrooms in the Inclusionary Units shall be governed
exclusively by this Inclusionary Housing Agreement.
• Using the income formulas required by this Inclusionary Housing
Agreement, Property Owner shall determine tenant eligibility based upon
Inclusionary Housing Agreement — Rental Project Page 12
City of Santa Ana 19H-14 September 18, 2014
the "Tenant Criteria" and "Final Determination of Qualification" provisions
set forth in the Inclusionary Housing Plan. The City shall monitor program
compliance on an ongoing basis.
I -A. Sale as Ownership Units. This Inclusionary Housing Agreement shall
not preclude Property Owner from selling the Project's individual units
during the Affordability Period. Before selling any individual unit within the
Project, Property Owner shall provide the City with ninety (90) days' notice
of its intent to sell the units individually and the City and Property Owner
shall enter into a revised Inclusionary Housing Agreement and a revised
Inclusionary Housing Plan which shall comply with the Applicable
Provisions addressing units for sale and comply with those provisions of
the then - effective Affordable Housing Administrative Procedures
pertaining to units for sale. in that case, the Affordability Period in effect
for the rental units under Section 41- 1906(d)(1) shall be credited toward a
modified period of affordability consistent with the period of affordability for
units for sale under Section 41- 1906(c)(1) of the Ordinance. Further, the
number, leeatiorfi and — bedroom coFunts —set forth -� the 7 vt ual Unl s
shall not change in a new "for sale" Inc[usionary Housing Agreement
without Property Owner's consent.
11. Affordability Covenants
1. The Property Owner covenants and agrees that ten (10) of the units to be
developed on the Property shall be Inclusionary Units rented to Eligible
Tenants at the Affordable Rent throughout the Affordability Period. This
covenant and agreement shall be binding on the successors and assigns.
of the Property Owner.
2. The Inclusionary Units shall be reasonably dispersed throughout the first
four floors of the Project subject to the provisions and limitations set forth
in the Inclusionary Housing Plan. Those provisions include the following:
"Reasonable Dispersal. The Inclusionary Units to be developed on the
Property shall be reasonably dispersed throughout the first four floors of
the Project. The Inclusionary Units will not include any "townhouse" units
located within the Project. Initially, the first Inclusionary Units to be
occupied will occur at the locations identified on Exhibit A to this Housing
Plan (the "First Ten Inclusionary Units ") as soon as possible after those
units are constructed and ready for occupancy. Going forward after the
Inclusionary Housing Agreement —Rental Project Page 13
City of Santa Ana 19H-1 5 September 18, 2014
First Ten Inclusionary Units have been occupied by Eligible Tenants, as
each of those initial affordable tenancies ends, the next Inolusionary Units
to be occupied need not be the same units as the First Ten Inclusionary
Units and may be selected by Property Owner provided that those next
Inclusionary Units otherwise comply with the requirements of the
Regulatory Agreement and this Housing Plan. This selection process will
continue throughout the term of the Regulatory Agreement."
3. The Inclusionary Units shall be comparable to the Market Rate Units as
set forth in the Housing Plan, which provides, among other things:
"Characteristics of Inclusionary Units. The Inclusionary Units shall be
comparable to the Market Rate Units in terms of design, materials,
finished quality and appearance. However, not all of the units within the
Project will be of the same size, have the same amenities, or have the
same views. Therefore, while all one and two - bedroom units will have
comparable characteristics to other one and two - bedroom units, they may
not be identical. Residents of the Inclusionary Units will_have theca ne
access as all other tenants to Project amenities and recreational facilities."
4. Phasing of the Inclusionary Units shall be as set forth in the Housing Plan,
which provides, among other things:
"Phasing. All units within the Project shall be constructed in a single
construction phase. No specific units within the Project shall be
permanently designated "Inclusionary Units" to allow for the most efficient
implementation of the Housing Plan during the term of this Inclusionary
Housing Agreement. Although the Project will be constructed in a single
phase, the release of units within the Project shall occur in phases. The
exact number of "rental phases" is within the sole discretion of Property
Owner. The First Ten Inclusionary Units shall be made available for
occupancy to Eligible Tenants as their respective phases are released.
The current phasing plan for the release of units is included as Exhibit 3 to
this Inclusionary Housing Agreement. Property Owner may change the
timing andfor phasing of the release of units provided that the phasing of
the release of First Ten Inclusionary Units is not unreasonably deferred."
5. Five (5) of the Inclusionary Units shall be one - bedroom units and five (5)
of the Inclusionary Units shall be two- bedroom units.
I nclusionary Housing Agreement— Rental Project Page 14
City of Sane Ana 19H-16 September 18, 2014
inspection of the Inclusionary Unit so that the City may conduct code compliance
andlor code enforcement inspections of the Inclusionary Units at reasonable
times and upon not less than 48 hours prior notice to the Property Owner. If
such notice is provided by the City to the Property Owner, the Property Owner or
property manager shall immediately advise any affected tenant of the inspection,
and cause access to the Inclusionary Units to be made available. The lease for
the Inclusionary Units shall include an express advisement of these inspection
rights.
IV. Covenants Running With the Property
All conditions, covenants and restrictions contained in this Inclusionary Housing
Agreement shall be covenants running with the Property, and shall be, to the
fullest extent permitted by law and equity, enforceable by the City. The City shall
be deemed the beneficiary of the covenants of this Inclusionary Housing
Agreement.
In the event the Property Owner wishes to sell or transfer the Project during the
�ff w orda I y eriod, the i y an he Prope y weer s a execute ande
into escrow the Notice of Affordability Covenants on Transfer of the Property in
the form provided in Exhibit 11 to this Inclusionary Housing Agreement.
V. Enforcement of this Inclusionary Housing Agreement
The Property Owner irrevocably stipulates and agrees that breach of the
Inclusionary Housing Covenants set forth above in Article 2 will result in great
and irreparable damage to the City, and will result in damages to the City that are
either impracticable or extremely difficult to quantify. Accordingly, upon the
breach of the covenants set forth above in Article 2, the City may institute an
action for injunctive relief and/or specific performance for the remedy of such
breach.
Inclusionary Housing Agreement — Rental Project Page 17
City of Santa Ana 19H-17 September 18, 2014
ARTICLE 3
DEFAULTS AND REMEDIES
Default
If either Party defaults with regard to any provision of this Inclusionary Housing
Agreement, the non - defaulting Party shall serve written notice of such default
upon the defaulting Party. If, after the service of written notice of such default,
the defaulting Party does not cure such default within thirty (30) calendar days
after service of the notice of default (or, if such cure reasonably takes longer than
thirty (30) days, if such cure has not been commenced within the thirty (30) day
period or is not diligently completed within a reasonable time, not to exceed an
additional sixty (60) calendar days), the defaulting Party shall be in Default of the
terms of this Inclusionary Housing Agreement, and shall be liable to the other
Party for damages caused by such Default. Alternatively, the non - defaulting
Party, at its option, may institute an action for specific performance of the terms
of this Inclusionary I lousing Agreement. - -
II. Legal Actions
In the event of a breach or potential breach of program requirements, in addition
to any other rights or remedies, either Party may institute legal action to cure,
correct or remedy any Default, to recover damages for any Default, or to obtain
any other remedy consistent with the purposes of this Inclusionary Housing
Agreement.
II -A. The City's actions may include, but are not limited to, the following:
1. The following legal actions:
a. Actions to enforce compliance with the program requirements and
to enjoin any actions by the Property Owner that violate program
requirements; and
b. Injunctive relief and damages.
2. If the Property Owner receives rent revenue in excess of the Affordable
Rent for any Inclusionary Unit, the Property Owner shall forfeit all excess
monetary amounts obtained through the rental of the Inclusionary Units.
Inclusionary Piousing Ayreamont— Rental Project Page 98
City of Santa Aria 19H-18 September 18, 2014
3. All such restitution shall be made to the City. Any funds received by the
City under this provision of this Inclusionary Housing Agreement shall be
placed in the City's Inclusionary Housing Fund.
II -B. The laws of the State of California shall govern the interpretation and
enforcement of this Inclusionary Housing Agreement.
II -C. In the event that any legal action is commenced by the Property Owner
against the City, service of process on the City shall be made by personal
service upon the Clerk of the City Council, or in such other manner as may
be provided by law.
II -D. In the event that any legal action is commenced by the City against the
Property Owner, service of process shall be made by personal service on
the Property Owner's designated agent at such address as may be
specified in written notice to the City, or in such other manner as may be
provided by law, and shall be valid whether made within or outside of the
State of California.
III. Rights and Remedies are Cumulative
The rights and remedies of the Parties are cumulative and the exercise by either
Party of one or more of such 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.
Induslonary Housing Agreement —Re ntal ProJact Pane 19
City of Santa Ana 19H-19 Septernber 18, 2014
ARTICLE 4
GENERAL PROVISIONS
I. Notices, Demands and Communications Between the Parties
Any and all notices, demands or communications submitted by any Party to
another Party pursuant to, or required by, this Inclusionary Housing Agreement
shall be proper if in writing and dispatched by messenger for immediate personal
delivery, or by registered or certified United States mail, postage prepaid, return
receipt requested, to the address of the City and Property Owner, as applicable,
as designated in Article 1 — Section I of this Inclusionary Housing Agreement.
Such written notices, demands and communications may be sent in the same
manner to such other addresses as either Party may from time -to -time designate
as provided in this Section.
Any notice, demand or communication shall be deemed to be received by the
addressee, on the day that it is personally delivered, if dispatched by messenger,
or two (2) calendar days after it is placed in the United States mail. In addition to
the submission of notices, demands or communications to the Parties via United
States mail, copies of all notices shall also be delivered by facsimile to the
facsimile numbers designated in Article 1 — Section I.
II. Conflict of Interest
No council member, official, contractor, consultant, attorney or employee of the
City having any conflict of interest, direct or indirect, related to this Inclusionary
Housing Agreement, or in the development of the Property, shall participate in
any decision relating to this Inclusionary Housing Agreement. The Parties
represent and warrant that they do not have knowledge of any such conflict of
interest.
III. Non - liability of City or City Officials and Employees
No council member, official, contractor, consultant, attorney or employee of the
City shall be personally liable to the Property Owner, any voluntary or involuntary
successors and assignees, or any lender or other party holding any interest in
the Property, in the event of any default or breach by the City, or for any amount
which may become due to the Property Owner or to its successors or assignees,
or on any obligations arising under this Inclusionary Housing Agreement,
Inclusionary Housing Agreernent —Re ntal Project Page 20
City of Santa Ana 19H-20 September 18, 2014
IV. Indemnification
The Property Owner agrees to indemnify and hold the City, and their officers,
employees and agents, harmless from and against all damages, judgments,
costs, expenses and fees arising from or related to any negligent or wrongful act
or omission of the Property Owner in performing its obligations hereunder. The
City agrees to indemnify and hold the Property Owner and its officers, employees
and agents, harmless from and against all damages, judgments, costs expenses
and fees arising from or related to any negligent or wrongful act or omission of
the City in performing its obligations hereunder.
V. No Waiver
Failure to insist upon strict compliance with any of the terms, covenants,
conditions and restrictions hereof on any one occasion shall not be deemed a
waiver of such term, covenant, condition or restriction. Any waiver or
relinquishment of rights or powers hereunder at any one time or more times shall
not be deemed a waiver or relinquishment of such other rights or powers at any
other time or times.
VI. Attorneys' Fees and Costs
If either Party hereto files any action, or brings any action or proceeding against
the other arising out this Inclusionary Housing Agreement, the prevailing Party
shall be entitled to recover its reasonable attorneys' fees and costs. The
recovery shall be treated as an element of its costs of the suit, and not as
damages. The amount of the recovery shall be fixed by the court in such action
or proceeding, or in a separate action or proceeding brought to recover such
attorneys' fees and costs.
VII. Jurisdiction and Venue
Any legal action or proceeding concerning this Inclusionary Housing Agreement
shall be filed and prosecuted in the appropriate State of California court in
Orange County, California. Each Party hereto irrevocably consents to the
personal jurisdiction of that court. The City and the Property Owner each hereby
expressly waive the benefit of any provision of federal or state law or judicial
decision providing for the filing, removal, or change of venue to any other court or
jurisdiction, including without implied limitation, federal district court due to any of
the following:
— — — -
Inclusionary Housing Agreement Fental Protect Page 21
City o` Santa Ana 19H-21 September 18, 2014
1. Any diversity of citizenship between the City and the Property Owner, or
2. The fact that the City is a party to such action or proceeding; or
3. That a federal question or federal right is involved or alleged to be
involved.
Without limiting the generality of the foregoing, the Property Owner and the City
specifically waive any rights provided to it pursuant to California Code of Civil
Procedure 394. The Property Owner acknowledges that the provisions of this
Article 3 — Section VII are material consideration to the City for its entry into this
Inclusionary Housing Agreement, in that the City will avoid the potential cost,
expense and inconvenience of litigating in a distant forum.
VIII. Inspection of Books and Records
To enforce its rights under this Inclusionary Housing Agreement, the City shall
have the right at all reasonable times and upon reasonable advance notice, at
the City's cost and expense, to inspect the books and records of the Property
Owner that are not privileged, confidential, trade secrets or otherwise protected
from disclosure and that pertain to the rental of the Inclusionary Units at the
Property. Matters discovered by the City shall not be disclosed to third parties
unless required by law, or unless otherwise resulting from or related to the
pursuit of any remedies or the assertion of any rights of the City hereunder
subject to, however, any right of the Property Owner to seek a protective order to
prevent the disclosure of any confidential or privileged information.
IX. Successors and Assigns
This Inclusionary Housing Agreement shall be binding upon, and inure to the
benefit of, the Parties hereto and their respective heirs, executors,
administrators, legal representatives, successors and assigns.
X. No Third Party Beneficiaries
The performance of the City's and the Property Owner's respective obligations
under this Inclusionary Housing Agreement are not intended to benefit any party
other than the City or the Property Owner, except as expressly provided
otherwise herein. No person or entity not a signatory to this Inclusionary Housing
Agreement shall have any rights or causes of action against any Party to this
Inclusionary Housing Agreement as a result of that Party's performance or non-
- - - - --
InclusionaryNousinyAyreement— Rental Project Page 22
City of Santa Ana 19H-22 September 18, 2014
performance under this Inclusionary Housing Agreement, or for the enforcement
of any provisions of this Agreement, except as expressly provided otherwise
herein.
XI. Subordination.
At Property Owner's option, this Inclusionary Housing Agreement shall be
subordinate to the lien of the deeds of trust and other financing documents which
secure the financing needed to acquire, construct, and /or operate the Project.
The City Manager or designee is authorized to execute such subordination
agreements and /or such other documents as may be necessary to evidence
such subordination.
XII. Entire Agreement
This Inclusionary Housing Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto. This Inclusionary Housing Agreement
supersedes all negotiations or previous agreement between the Parties with
respect-ts all of -ary- portion of-the-Property-and#h> ,—Project thereof-
XIII. Recordation
The Developer and the City agree to permit recordation of this Inclusionary
Housing Agreement, against the Property in the Office of the County Recorder of
Orange County, California. The legal description for the Property is provided in
Exhibit 1 to this Inclusionary Housing Agreement,
XIV. Termination
Except as set forth elsewhere, this Inclusionary Housing Agreement shall be
effective until the termination of the Affordability Period. At that time, this
Inclusionary Housing Agreement shall automatically and immediately terminate
and shall have no further force and effect. Upon the termination of this
Inclusionary Housing Agreement, the Property Owner shall have no further
obligations or liability hereunder, or any responsibility with respect to the
Inclusionary Units. The City and the Property Owner agree to promptly execute,
acknowledge and deliver for recordation any documents that may be necessary
to remove this Inclusionary Housing Agreement as encumbrance against title to
the Property.
I nclusionary Housing Agreement— Rental Project Page 23
City of Santa Ann 19H-23 September 18, 2014
IN WITNESS WHEREOF, the Parties hereto have duly executed this
Inclusionary Housing Agreement as of the dates set forth below.
InoluslonaTy Housing Agreement—
City of Santa Ana
[Signatures on Following Pages]
19H -24
September 16, 2614
SIGNATURE PAGE
TO
INCLUSIONARY HOUSING AGREEMENT
APPROVED AS TO LEGAL FORM.
By
Lisa E. Storck
City Attorney
City of Santa Ana
CITY:
CITY OF SANTA ANA
A California Municipal Corporation
By:
Name: Kelly L. Reenders
Executive Director
Its: Community Development Agency
Date: October 15, 2014
ATTEST,"
MARIA D HUIZAIR
C ERI< OF T I-IF C()UNCII
Inclusionary R, OLIsing Agreement— Rental Project Page 25
City of Santa Ana September 18, 2014
19H-25
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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County of - -//� \../'@.
On ._ /�a!/�"�l y before me, &hvie he � -t _
Oat. e N u Insert N: .nr., u,,I Title of the Officer
personally appeared
who proved to me on the basis of satisfactory evidence to
be the Rerson(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that
JEANETTE MARIE PALMA he /sFje /they executed the same in his /her /their authorized
Ca�nieai 20yt88S caoacity(ies), and that by his/her/their si nature(s) on the
Nil IsW10c- CaIUO[nh instrument the pe son(s), or the entity upon behalf of
Los �Angelas which the epyson(s) acted, executed the instrument.
Comim. E Iran Jm t t. 2018
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS m nd and officials adt
Signature a �`
Place Notary Seal Above OPTIONAL p°y splatnre oI Votary Prblo
w.,..�...., OPTIONAL «....�:�.�..... .. ...............�e..�....,....d
)"tough the infannalion below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another docennent.
Description of Attached Docu
Title; or Type of Document: ,!
Document Date: C_f / /.Y..........
Signer(s) OtherThan Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
...::., Individual
'iA Corporate Officer -- Title(s): —
1.I Partner --.-.Limited _J General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
Asti
Number of Pages:
Signer's Name:
-.I Individual
:...I Corporate Officer— Title(s): _
Partner Limited General
) Attorney in Fact
_1 Trustee
-i Guardian or Conservator
'...J Other:
Signer Is Representing:
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19H -26
SIGNATURE PAGE
TO
INCLUSIONARY HOUSING AGREEMENT
PROPERTY OWNER:
1901 FIRST STREET OWNER, LLC,
a Delaware limited liability company
By: 1901 First Street Associates, LLC,
a Delaware limited liability company,
its Sole Member
By: 1901 First Street Investors, LLC,
a Delaware limited liability company,
its Sole Member
By: Lyon Housing (1901 First Street) 1-111, LLC,
a Delaware limited liability Company,
its Managing Member
By:
Name: rank ryan, Jr
Title: President
Date: u /`L
--Jn— ry clusiona —HousingAgreement– Rental-Pno—ject Page 26
City of Santa Ana 1
19H-27 September 8, 2014
CIVIL CODE § 1189
State of California
County of Cl f cy—)(1 k',. _
m T '
On (_)c �'sc before me.,.� _ r "t t J aV r'
Hate ore lunnot Namu qcdYrilv of ba Of6aer
personally appeared t'
eme(s) of Slynegs)
who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged
to me that he /she /they executed the same in
his /her /their authorized capacity(ies), and that by
his /her /their signatures) 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.
Signature. I,9 GyrCaA% f)Cx ✓(/)n ,4p..
Plane Natary Saul Above Signature of M' ry Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:% r "YC:. �U 1PL +�` d� ,� ✓'tR.1.; I �,f (:�rda"" ° r ) "` S (,� "ae-h
Document Date:
Signer(s) Other Than Named Above: _
Capacity(ies) Claimed by Signers)
Signer's Name:
❑ Corporate Officer -- Title(s):
❑ Individual
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
J Guardian or Conservator
I Other:
Signer Is Representing:
a1GHT THUMBPHIM
Number of Pages:
Signer's Name:
❑ Corporate Officer — Title(s):
C Individual
0
7 Partner — - Limited - General Top of mt,lrr,e here
❑ Attorney in Fact
• Trustee
• Guardian or Conservator
❑ Other:
Signer Is Representing:
LO 2010 National Notary Association • NatlonolNOirsry_ora - 1- 800 -US NOTARY (1- 800 -876 -8927)
19H -28
Item #5907
Inclusionary Housing Agreement — Rental Project 19H-29 September 18, 2014
City of Santa Ana
EXHIBIT 1
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA, COUNTY OF
ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBEDAS FOLLOWS:
THAT PORTION OF LOT 15 OF THE MAYBURY TRACT, IN THE CITY OF SANTA ANA, COUNTY OF
ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 36, PAGE 65 OF
MISCELLANEOUS MAPS, RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS
FOLLOWS:
PARCEL NO. 1 AS SHOWN ON A MAP FILED IN BOOK 98, PAGE 30 OF PARCEL MAPS, IN THE OFFICE OF
THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA, AS AMENDED BY A CERTIFICATE OF
CORRECTION, RECORDED OCTOBER20, 19771NBOOK12424 ,PAGE5430FOFFICIALRECORDS.
EXCEPTING THEREFROM THAT PORTION OF PARCEL 1, AS SHOWN ON A MAP FILED IN BOOK98,
PAGE 30 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY,
CALIFORNIA, SITUATED IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF, CALIFORNIA,
DESCRIBEDAS FOLLOWS:
BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 1; THENCE ALONG THE
SOUTHERLY LINE OF SAID PARCEL 1 NORTH 890 31'52" EAST 34.14 FEET; THENCE NORTH 450 19,14"
WEST 38.26 FEET TO A LINE PARALLEL WITH AND 7,00 FEET EASTERLY FROM THE WESTERLY LINE
OF SAID PARCEL 1; THENCE SOUTH 89° 49' 39" WEST 7.00 FEET TO SAID WESTERLY LINE; THENCE
-LONG SAID - WESTERLY LINE- SOUTH-0 1,0 21" EAS7`27:18 FEET -rOTHE P01NT OF BERG, AS
GRANTED TO THE CITY OF SANTA ANA, IN DEED RECORDED SEPTEMBER 18,1980 AS INSTRUMENT
N 0.90 - 493896, DF 0 FFICIALRECO RD S.
APN: 400- 081 -08
CLTA PreliminaryRepmtForm— Modified (11 /17/06)
19H -30
I nclusionary Housing Agreement— Rents I Project September 18, 2014
City of Santa Ana 19H-31
EXHIBIT 2
SITE MAP DEPICTING PROPERTY AND ZONING DESIGNATIONS
19H -32
EXHIBIT 3
I avue ;1:1 A WAOITITI 0 14 :1��
Inclusionary Housing Agreement — Rental Project September 18, 2014
City of Santa Ana 19H-33
�I
EXHIBIT 3
PROPERTY OWNER'S PHASING PLAN
A2r
19H -34
Inclu5ionary, Housing Agreement — Rental Project September 18, 2014
City of Santa Aria 19H-35
EXHIBIT 4 TO INCLUSIONARY HOUSING AGREEMENT
1901 E. FIRST STREET
HOUSING PLAN PURSUANT TO FIRST AMENDMENT TO DA 2007 -01
Purpose of Housing Plan
This Housing Plan is intended to implement the "Inclusionary Housing Agreement)" for 1901 E.
First Street (the "Regulatory Agreement ") entered into between the City of Santa Ana (the
"City") and 1901 First Street Owner, LLC, a Delaware limited liability company ( "Property
Owner "). The Regulatory Agreement and this Housing Plan pertain to Property Owner's
approved development located at 1901 E. First Street in the City (the "Project "). Pursuant to
Section 5.9 of the First Amendment to DA 2007 -01, ten (10) residential units within the Project
shall be made available for rental to low income Households (the "Inclusionary Units ").
Project Description
The Project is located on a 5.1 acre parcel within the Metro East Mixed Use Overlay Zone and
consists of 264 residential units, a four level parking structure, a leasing office, and
approximately- 2;424 - square feet of- retail- space. ThL-Prolect— wilra �incTude a club
---house and
recreation deck with pool to be added over the southern half of the existing parking structure
and public open space fronting Cabrillo Park Drive,
Definitions
The terms defined in the Regulatory Agreement shall have the same meaning when used within
this Housing Plan
Number of Inclusionary Units
(a) Number of Units. Ten (10) of the units to be developed on the Property shall be
Inclusionary Units rented to Eligible Tenants at the Affordable Rent throughout the
Affordability Period,
(b) Bedroom Count. Five of the Inclusionary Units shall be one- bedroom units and five of the
Inclusionary Units shall be two - bedroom units.
Maximum Number of Occupants
(a) The maximum number of occupants in the one- bedroom Inclusionary Units shall be three
(3) and in the two- bedroom units shall be five (5).
19H -36
Location of Inclusionary Units
(a) Reasonable Dispersal. The Inclusionary Units to be developed on the Property shall be
reasonably dispersed throughout the first four floors of the Project. The Inclusionary Units
will not include any "townhouse" units located within the Project. Initially, the first
Incluslonary Units to be occupied will occur at the locations identified on Exhibit A to this
Housing Plan (the "First Ten Inclusionary Units ") as soon as possible after those units are
constructed and ready for occupancy. Going forward after the First Ten Inclusionary Units
have been occupied by Eligible Tenants, as each of those initial affordable tenancies ends,
the next Inclusionary Units to be occupied need not be the same units as the First Ten
Inclusionary Units and may be selected by Property Owner provided that those next
Inclusionary Units otherwise comply with the requirements of the Regulatory Agreement
and this Housing Plan. This selection process will continue throughout the term of the
Regulatory Agreement.
(b) Characteristics of Inclusionary Units. The Inclusionary Units shall be comparable to the
Market Rate Units in terms of design, materials, finished quality and appearance.
However, not all of the units within the Project will be of the same size, have the same
amenities, or have the same views. Therefore, while all one and two- bedroom units will
have comparable characteristics to other one and two - bedroom units, they may not be
- -ldent +cal Residents ofthe-Inclusionary- Unit " wtlthave the same access as all of er tenants
to Project amenities and recreational facilities.
(c) Phasing. All units within the Project shall be constructed in a single construction phase.
No specific units within the Project shall be permanently designated "Inclusionary Units"
to allow for the most efficient implementation of the Housing Plan during the term of this
Housing Plan. Although the Project will be constructed in a single phase, the release of
units within the Project shall occur in phases. The exact number of "rental phases" is
within the sole discretion of Property Owner. The First Ten Incluslonary Units shall be
made available for occupancy to Eligible Tenants as their respective phases are released.
The current phasing plan for the release of units is included as Exhibit 3 to this Housing
Plan. Property Owner may change the timing and /or phasing of the release of units
provided that the phasing of the release of First Ten Inclusionary Units is not unreasonably
deferred.
Lease Form. The Property Owner shall submit to the Program Director for approval a
standard lease form to be used for the Inclusionary Units. The Program Director shall
reasonably approve the lease form upon finding that the lease form is consistent with the
requirements of this Housing Plan. The Property Owner shall enter into a written lease, in the
form approved by the Program Director, with each Household that occupies an Inclusionary
Unit.
2
19H -37
Affordable Rent. The Affordable Rent may be re- evaluated once annually based on changes in
the Gross Household Incomes (usually updated during the first quarter of each year). Any
changes in the rents charged for the Inclusionary Units must first be approved in writing by the
Program Director. The Property Owner, or property manager, must provide written notice to
each Household renting an Inclusionary Unit at least 30 days in advance of any rent increase.
Tenant Criteria
(a) Determination of Income Qualification. Property Owner shall make the determination that
a Household qualifies as a Low Income Household. All prospective Inclusionary Unit
tenants must provide supporting documentation to substantiate that, among other
requirements set forth in this Housing Plan, their Gross Household Income establishes
them as a Low Income Household. The supporting documentation shall include:
I. Copies of income tax returns for each member of the proposed Low Income
Household certified by the applicable Household member as true for the most recent
tax year in which a return was filed.
ii. At least one of the following for each Household member providing income
information:
.two pay-checkstubs_ from -the membee -s- most- recentfsay periods.—
• An income verification certification from the member's employer.
• An Income verification certification from Social Security Administration and /or
California Department of Social Services if the member receives assistance from
either of those agencies.
(b) Standard Resident Qualification Criteria. An income - qualified Low Income Household
remains subject to all other criteria used by Property Owner for the screening and
selection of tenants within the Project (the "Standard Criteria"), with the sole exception of
the standard income requirements for Market Rate Units. Examples of the Standard
Criteria include, but are not limited to, credit history, number of occupants, and pet
restrictions. The current Standard Criteria is set forth in Exhibit B and may be changed
from time -to -time at Property Owner's discretion, provided that (1) all Standard Criteria
are applied equally to all tenants within the Project and (ii) the sole income qualifications
for a Low Income Household are those set forth in Paragraph (a) ( "Determination of
Income Qualification ") above.
Final Determination of Qualification
(a) Sequencing of Determinations. Subject to the provisions below addressing "Priorities
Among Applicants," to the extent practicable, the qualification of applicants for
Inclusionary Units will be determined in the chronological order of the dates of their
completed applications. An application is not deemed complete until all Information
3
19H -38
which may be required pursuant to this Housing Plan has been submitted, if that
information is not included with the initial application submittal.
(b) Qualification Approved, Prior to renting or leasing an Inclusionary Unit, Property Owner
will certify the eligibility of the prospective Low Income Household tenant. The
certification shall be made on forms substantially similar to those attached as Exhibit C.
Where there are more Eligible Tenants than there are available Inclusionary Units, a
waiting list shall be created (the "Waiting List "),
(c) Qualification Denied. If an applicant for an Inclusionary Unit is rejected, that applicant will
be given prompt written notice of the rejection and the reasons forthe rejection.
(d) No Discrimination. In making its determination, Property Owner shall not discriminate
against any person or group of persons, on account of race, color, religion, sex, sexual
orientation, marital status, natural origin, ancestry, familial status, source of income or
disability.
Priorities Among Applicants
Where there is more than one Eligible Tenant for an available Inclusionary Unit or where an
— Eligible T- enalit -is —on th—eWaitin�ist, first priority will be given to qualified Low Income
Households with one or members who, at the time the application is complete, (1) live in the
City of Santa Ana or (2) is a veteran of the United States Armed Forces,
Recertification of Tenant Eligibility
(a) Annual Review, The Property Owner or property manager must establish an annual
schedule to recertify that each tenant in an Inclusionary Unit remains an Eligible Tenant.
All tenant recertifications for the Inclusionary Units must be performed at the same time
each year.
(b) Continued income Qualification and Vacated Inclusionary Units. If the recertification
demonstrates that a previously Eligible Tenant's Gross Household Income exceeds the Low
Income standard applied to the Inclusionary Unit, the pertinent actions from the following
list must be taken:
1. The Property Owner may offer to rent the unit to the previously, but no longer,
Eligible Tenant as a Market Rate Unit without any limitations on rental rates. In that
case, the property Owner must then make available for rent to an Eligible Tenant
another unit within the Project that meets the size and location requirements for
Inclusionary Units under this Housing Plan. 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 Tenant.
4
19H -39
ii. If the no longer Eligible Tenant either moves to another unit within the Project or
leaves the Project altogether, then the vacated Inclusionary Unit or, at Property
Owner's election, any other unit within the Project which meets the size and location
requirements for Inclusionary Units under this Housing Plan and has the same
number of bedrooms as the vacated unit shall be rented as an Inclusionary Unit to an
Eligible Tenant.
Determination of Affordable Rent
(a) Definition of Affordable Rent. All Inclusionary Units shall be rented at an Affordable Rent,
The Affordable Rent for an Inclusionary Unit shall be as defined in the Regulatory
Agreement.
(b) Utilities Allowance. Affordable Rent shall be adjusted to reflect a reasonable Utilities
Allowance. The Utilities Allowance shall be as defined in the Regulatory Agreement.
(c) Re- evaluation of Affordable Rent. The Affordable Rent may be re- evaluated once annually
based on changes in the Gross Household Incomes (usually updated during the first
quarter of each year). Any changes in the rents charged for the Inclusionary Units must
first be approved in writing by the Program Director. The Property Owner, or property
manager, must provide written notice to each Household renting an Inclusionary Unit at
least 30 days in advance of any rent increase.
Tenant Protections
(a) Rental Agreement /Lease. All rental agreements /leases must be consistent with the
Regulatory Agreement and this Housing Plan.
(b) Identification of occupants. The written rental agreement /lease must name all members
of the Low Income Household who will be occupying the Inclusionary Unit.
(c) Identification of Income Restrictions. The rental agreement /lease must state that the
Eligible Tenant's right to occupy the Inclusionary Units is subject to the Gross Income
Household requirements set forth in the Regulatory Agreement,
Termination of Tenancy
(a) Any termination or refusal to renew a tenancy must comply with all applicable California
laws.
Affirmative Marketing
The Property Owner shall affirmatively market the Inclusionary Units to Low Income
Households. Property Owner must comply fully with all federal, state, and local non-
5
19H -40
discrimination laws, Specifically, Property Owner shall not discriminate on account of race,
color, sex, religion, sexual orientation, creed, ancestry, national or ethnic origin, age, family or
marital status, handicap or disability, or deny any Household or individual the opportunity to
apply for or participate in the Affordable Rental Housing Program.
Maintenance and Service Obligations
The Property Owner shall maintain the Property and the Project in good condition, free of
debris, waste and graffiti, and in compliance with all applicable provisions of the City's
Municipal Code. Property Owner agrees that, upon written request by the City, Property
Owner will accompany the City on an inspection of the Inclusionary Unit so that the City may
conduct code compliance and /or code enforcement inspections of the Inclusionary Units at
reasonable times and upon not less than 48 hours prior notice to the Property Owner. if such
notice is provided by the City to the Property Owner, the Property Owner or property manager
shall immediately advise any affected tenant of the inspection, and cause access to the
Inclusionary Units to be made available. The lease for the Inclusionary Units shall include an
express advisement of these inspection rights.
6
19H -41
INDEX OF EXHIBITS
Exhibit ]. First Ten Inclusionary Units
Exhibit 2 Standard Resident Qualification Criteria
Exhibit 3 Income Certification Form
19H -42
EXHIBIT 1
FIRST TEN INCLUSIONARY UNITS
19H -43
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19H -44
EXHIBIT 2
STANDARD RESIDENT QUALIFICATION CRITERIA
19H -45
LYON
COMMUNMES
FUTURE RESIDENT INFORMATION
Rental Qualification Criteria for Application Approval
Thank you for choosing a Lyon Apartment Community for your new home! We are an Equal
Housing Opportunity Provider and we abide by all federal, state and local fair housing laws.
A rental application must be processed on all prospective residents 18 years of age or older- An application fee of $35.00
must be paid for each applicant.
Approval for rental cannot be made without a completed application. Applications that do not have all areas completed or an
acceptable explanation of omissions (according to management's approval) will not be processed and will be returned to the
applicant.
1. Applicant must provide a valid government issued photo I.D.
2. Current Income - Applicant must be able to provide proof of income that Is legal, verifiable and paid directly to the
applicant or the applicant's representative. A combined gross income of 2.7 times the rent is required. Therefore
the Current Income requirement can be evaluated by combining the income of all applicants that are applying
togeth er-for- a- particulaFUnit.
• Employed Applicants must provide their four most recent pay stubs (or a current pay stub that
reflects year -to -date income).
• Applicants with new positions may provide an offer letter signed by the employer on company
letterhead.
• Self employed /unemployed applicants must provide other sources of current, verifiable income.
All other sources of income must be verified. Such sources and verification could include, but are not limped to,
tax returns, applicant's four most recent bank statements, 1099's, proof of government payments, proof of
investment or trust fund income, student loan or grant award documents, Court Orders for child or spousal
support, etc.
3. Rental History - Appllcant(s) must have one (1) year of verifiable rental and/or payment history from a landlord,
apartment community or mortgage company, (including a prompt payment record and compliance with all
community policies) within the last three years. Acceptable rentallpayment history would include no more than 2
late payments and /or returned checks peryear of residency, exceptwhen incurred in connection with a foreclosure.
Reference information from family members or friends will not be considered- In the event applicant(s) have less
than one (1) year of verifiable rental and /or payment history from a landlord, apartment community or mortgage
company, applicant(s) may pay an additional security deposit equal to "/ month's rent.
4. Occupancy standards— Lyon occupancy standards are 2 persons per bedroom plus one. For example: a maximum
of three (3) persons per one (1) bedroom and five (5) persons per two (2) bedroom. In the event the number of
occupants exceeds the maximum number for that floor plan due to the birth, adoption, custody or guardianship
change of a minor child, residents will be permitted to stay in the existing unit through the and of their lease term or
six (6) months, whichever is longer. At the end of the lease term (or the above time period, if the lease would expire
before that time or V the residents are month -to- month), resident must transfer to an appropriate (larger) floor plan
(subject to availability of the alternate floor plan and resident's compliance with the existing lease agreement), or
vacate the unit subject to the terms and conditions of the lease agreement and supporting addenda.
5. Credit Requirements -A credit report will be processed on each applicant. All applicants will be evaluated on a
point system according to negative /positive credit accounts. If applicant takes exception with credit findings, he or
she is responsible for contacting the credit bureau.
• In the situation where there is more than one applicant applying together for a unit, credit will be
Rssuant Ctl@tla No Co Sign CR CA
IS -13) Gie.. o.
1 of 2
19H -46
evaluated based on the combined credit history of all applicants that applied together for that unit.
ME
Credit Requirements (continued)
• In the event that sufficient verification of credit information cannot be produced from the
identification documentation provided by applicant(s), or if applicant(s) has limited credit history with
predominantly negative account status, applicant(s) may pay an additional security deposit equal to one
month's rent.
• No credit is consideredas meeting the credit requirements, however, applicant(s) must meet all other qualifying
criteria listed including the current income criteria, (as noted in item2) and provide averifiable Rental /Payment
History (as noted in item 3).
6. Pets — Some communities and /or buildings may not allow pets. An additional security deposit will be required for
authorized pets to be maintained on the premises. Breed restrictions do apply. Please consult management for
details.
Applicant(s) will Automatically be Denied for the Following Reasons:
• Applicant has an eviction from another residency within the last seven (7) years.
• Applicant has falsified information on the Rental Application.
• Applicant has filed a bankruptcy petition that has not yet been discharged.
• Applicant has a criminal history that does not meet the criteria noted in Section 8 below.
• Applicant has provided an application that does not meet managements standard for completion.
Applicant has unresolved debts from another apartment community, landlord or mortgage holder (except when
incurred in connection with a foreclosure, or the debt is paid prior to approval of rental application- Verification of
payment is required).
Applicant(s) will automatically be denied for the following reasons unless an additional applicant that
meets the Rental Criteria and all other applicable Criteria accompanies their application for Lease:
• Applicant has a credit score that does not meet credit requirements.
• Applicant has three (3) or more late payments or returned checks in a 12 month period (except when incurred
in connection with a foreclosure)..
• Applicant has not provided proof of verifiable income.
8. Criminal History -All occupants over 18 must have a clear criminal history according to our requirements. The
history must reflect; a) no felony convictions; b) no convictions of the manufacture or distribution of controlled
substances; c) no pending indictment or deferred or withheld adjudication for a felony; d) no conviction or pending
indictment or deferred or withheld adjudication for a misdemeanor crime against a person or property.
In order to be approved for rental, Applicant must complete all forms and provide all documentation requests without
amending or deleting any information from the provided documents and forms. Applicant may not choose to apply any of
the additional security deposit options in place of providing the requested information and /or documents lithe Applicanttruly
has this information. M ore specifically, Applicant will be considered to have falsified information if Applicant states that they
do not have information such as, but not limited to, Social Security number, copy of Government ID and historical financial
and /or rental history when Applicant truly does have knowledge of such information.
To ensure prompt processing of your application, the above items must be presented within 48 hours of reserving
your apartment. If the information is not forwarded to our attention within this time frame, we may return the
apartment to the open market and your Holding Deposit may be retained by management and become non-
refundable for the pro -rated amount of daily market rent for the time thatthe apartment is withheld from the market.
My signature below confirms that I have read the above and understand the criteria from which this application will
Resident Cnteda No Co Sig, CR CA
(443) .....�.
2 oft
19H -47
be approved.
Res dent Cntana No Co 51Dn CR CA
(313)
3 oft
19H -48
EXHIBIT 3
INCOME CERTIFICATION FORM
to
19H -49
❑ New Certification ❑ Recertification
INCOME COMPUTATION AND CERTIFICATION
I/We the undersigned state that I/we have read and answered fully, frankly and personally each of the following questions
for all persons who are requesting to occupy the apa rim ent# in
1. 2, 3. 4. 5.
First and Last Name of Members of Relationship of Age Current city of Current city of
the Household head of residence Employment
Household
HEAD
Income Computation
6. The total anticipated income, calculated In accordance with this paragraph, of all persons (except minors under 18
years) listed above for the 12 -month period beginning the earlier of the date that Ilwe plan to move into a unit or sign a
lease for a unit is $
Included in the total anticipated income listed above are:
a) the full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses and
other compensation for personal services;
b) the net Income from the operation of a business or profession. Expenditures for business expansion or amortization of capital
indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a
business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service
regulations. Any withdrawal of cash or assets from the operation of a business or profession vAI be included in income, except
to the extent the Withdrawal is reimbursement of cash or assets in vested in the operation by the family;
c) interest and dividends and other net income of any kind from real or personal property. Expenditures for amortization of capital
indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as
authorized In paragraph (6)(b) of this section. Any withdrawal of cash or assets from an investment will be included in income,
except to the extent the withdrawal Is reimbursement of rash or assets Invested by the family. Where the family has net family
assets, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the
value of such assets based on the current passbook savings rate, as determined by the Department of Housing and Urban
development;
d) the full amount of periodic payments received from Social Socurity, annuities, retirement funds, pensions, disability benefits,
and other similar types of periodic receipts, including any lump sum amount except deferred periodic amounts from
supplemental security income and social security benefits that are received In a lump sum amount or in prospective monthly
amounts;
a) payments in Ilse of earnings, such as unemployment and disability compensation, workers' compensation and severance pay;
I) welfare assistance. If the welfare assistance payment Includes an amount specifically designated for shelter and utilities that Is
subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and Office, the amount of
welfare assistance
g) periodic and determinable allowances, such as alimony payments, and regular contributions or gifts received from organizations
or from persons not residing in the dwelling;
h) all regular pay, special pay and allowances of a member of the Armed Forces except the special pay to a family member serving
In the Armed Forces except the special pay to a family member serving In the Armed Forces who is exposed to hostile fire;
Excluded from such anticipated income are:
i) income from employment of children (in duding foster children) under the age of 18 years;
J) payments received for child support anchor the care of foster children or foster adults (usually persons with disabilities, unrelated
to the tenant family, who are unable to live alone)
k) lump sum additions to family assets, such as inheritances, willed or monetary gifts, Insurance payments (including payments
under life, health and accident insurance), capital gains and settlement for personal or property losses except payments in Ileu
of earnings, such as unemployment and disability compensation, worker's compensation and severance pay;
I) amounts mceNed by the family that are specifically for, or In reimbursement of, the cost of medical expenses for any family
member; income of a live -in aide,
m) the full amount of student financial assistance paid directly to the student or to the educational institution (including but not
limited to financial aid, scholarships and grants)
19H -50
7. Do the persons whose income or contributions that are included in Item 6 above have any savings, equity in real
property, or other form of capital investment (but do not include necessary items such as furniture or automobile),
enter the following amount:
a) The total value of all such assets owned by such persons: $
b) The amount of income expected to be delivered from such assets in the 12 month period commencing with the
occupancy of the apartment $
8. Neither myself nor any other occupant of the unit I /we propose to rent is the owner of the rental housing project in
which the unit is located (hereinafter the "Owner"), has any family relationship to the Owner; or owns directly or
indirectly any interest in the Owner. For purposes of this paragraph, indirect ownership by an individual shall mean
ownership by a family member, ownership by a corporation, partnership, estate or trust in proportion to the ownership
or beneficial interest in such corporation, partnership, estate or Trustee held by the individual or a family member; and
ownership, direct or indirect, by a partner of the individual.
9. This certificate is made with the knowledge that it will be relied upon by the Owner to determine maximum income for
eligibility to occupy the unit; and 1/we declare that all information set forth herein is true, correct and complete and
based upon information Ilwe deem reliable and that the statement of total anticipated income contained in paragraph 6
is reasonable and based upon such investigation as the undersigned deemed necessary.
10. I/We will assist the Owner in obtaining any information or documents required to verify the statements made herein,
including providing copies of my /our income tax returns, certified by melus as true, for the most recent tax year in
which a return was fled and at least one of the following:
(a) Two paycheck stubs from my /our most recent pay periods.
(b) An income verification . certification from my /our. employer-
(c) An income verification certification from Social Security Administration and/or California Department of
Social Services if I/we receive assistance from such agencies.
(d) An alternate form of income verification reasonably requested by Owner if none of the above forms of
verification are available.
11. Me acknowledge that Uwe have been advised that the making of any misrepresentation or misstatement in this
declaration will constitute a material breach of my lour agreement with the Owner to lease the unit and will entitle the
Owner to prevent or terminate my /our occupancy ofthe unit by institution of an action for ejection or other appropriate
proceedings.
Me declare under penalty of perjury that the foregoing Is true and correct.
Executed this day of
California
Applicant/Resident
20 (year) in the City of
Applicant/Resident
Applicant/Resident Applicant/Resident
(Signature of all persons except minors under the age of 18 years listed in number 2 above required)
19H -51
FOR COMPLETION BY APARTMENT PERSONNEL ONLY:
1. Calculation of eligible income:
a) Enter amount entered for entire household in &
b) Enter amount entered in 7(b)
c) TOTAL ELIGIBLE INCOME line a) plus line b):
2. The amount entered in 1 c above):
❑ Qualifies the applicant(s) as a Lower- Income Resident(s)
❑ Qualifies the applicant(s) as a Moderate - Income Resident(s)
3. Apartment number: Bedroom size:
4. Method used to verify applicant(s) income:
❑ Copies of tax returns
And
❑ Employer Income Verification Form
❑ Two most recent consecutive pay stubs
❑ SSI statement or letter
❑ Un- employment statement or two pay stubs
❑ Other
Property Director
19H -52
Date
Rent:
3
I,
apartment at
My Business Name /Address /Phone
Business Name
city /state /zip
have submitted an application to rent an
Phone _.. _.
Type of Business:
I am Self - Employed and hereby certify that my anticipated annual income for the next twelve months
will be $ . Attached is a copy of my Individual federal income tax
returns for the preceding calendar year.
Comments:
Applicant /Resident's Signature Date
12 -10
19H -53
LYON
COMMUIVMES
Support Verification
ApplicanVResident Release Statement
hereby authorize the release of
the following Information in order to determine my eligibility for the Affordable Housing Program. Please complete the
form in full and return It to Lyon Management Group, Inc. d /b /a Lyon Communities at your earliest convenience to fax
(562) 491 -5223.
Signature: Date:
Name/Source of Income:
source's Mailing- Address -
City,
Phone #:
Fax #:
State Zip
Please complete the following. If the monies are based on a percentage of your income, please indicate the average
amount per period.
Type of Benefit Amount Frequency
❑ Family Support ❑ weekly ❑ monthly ❑ yearly
❑ Alimony ❑ weekly ❑ monthly ❑ yearly
❑ Other ❑ weekly ❑ monthly ❑ yearly
(Please list type)
Do you anticipate any changes In the next 12 months? ❑ Yes ❑ No
Comments:
Signature of Party Authorized to Verify the above Information:
Title: Date:
(11 -10)
19H -54
0
COMMUNITIES
Income Verification for UNEMPLOYED Persons
I, have submitted an application to rent an
apartment at
nI itiai and complete if applicable
(a) I am not presently employed and do not anticipate becoming employed within the next twelve
months.
(b) I am not presently employed but anticipate becoming employed within the next twelve
months.
Based on my past work experience, skills, and Income history as reflected In my income tax
return for the most recent tax year (COPY ATTACHED) and with adjustment to reflect
circumstances anticipated within the next twelve months,
I expect to earn
per year when I become employed.
(c) I am receiving Unemployment Compensation benefits In the amount of $
(Benefits —statemen Fat fached).
(d) I will be living off my savings of $ until employment Is found (Statement attached).
_ (e) I will be receiving support from (source)
in the amount of $ every (Letter of support attached or statement).
_ (f) Declaration of No Income
I,
, do hereby certify that I do NOT
receive income from ANY source.
I understand source of income includes, but is not
limited to the following:
Employment
AFDC
General Assistance
Unemployment
SSI
Disability
Compensation
Retirement Funds
Union Benefits
Workers Compensation
Alimony
Family Support
Study
Income from Assets
Annuities
Self Employment
Pensions
I certify that the foregoing information is true, complete and correct to the best of my knowledge.
Inquiries may be made to verify statements herein. I also understand that false statements or omissions
are grounds for dlsqualiflcation.
Applicant/Resident's Signature
12 -10
19H -55
Data
EXHIBIT 5
SCHEDULE OF PERFORMANCE FOR CONSTRUCTION OF
INCLUSIONARY UNITS
Inclusionary Housing Agreement — Rental Project 19H-56 September 18, 2014
City of Santa Ana
EXHIBIT 5
SCHEDULE OF PERFORMANCE FOR RELEASE OF INCLUSIONARY UNITS
GL DFSTREET
-- -- ---- -------- - - - - -. .. --- -- - - - - -- - — - — - --
CABRILLO PARK DRIVE
i
53,074 GSF
BLDG 4B
IYPE11IA
i SPNINNM
I
I
rn
3 -HR FIREWALL
51,652 GSF
BLDG 4A
4,114 -
S'APoWEA
i
33,210 GSF
BLDG 4C
WEW
SPAMMM
56,872 GSF
BLDG4D
MkA
SPAMERM
BLDG 33 32,560 GSF
M U mEOnsem'ne u
74,920 GSF
BLDG 5A
TYPEN A
SPRRINEAEII
27,657 GSF BLDG 3A
iY 148pP1'd1E a)
i
EXISTING TYPE I-A PARKING GARAGE
,�,
lu
-BLDG 2A (fH -Z)
1YI'EM &YA SPAIAMEAEO 4
FIRE LANE
Release Sequence:
1"
Release of Units: Buildings 1A, 2A and 2B
2 "a Release of Units: Buildings 3A, 3B, 4A, 4B, 4C and 4L)
3"a Release of Units: Building SA
19H -57
- C.L.
OF STREET
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I
N.T.U.
EXHIBIT G
HOUSEHOLD INCOME LIMITS - 2014
-- _._. Q 2014
Inclusionary Housing Agreement — Rental Project 19H-5$ September 18,
City of Santa Ana
HOUSEHOLD INCOME LIMITS
HOUSING OPPORTUNITY ORDINANCE
2014 HOUSEHOLD INCOME LIMITS
TO BE UPDATED ANNUALLY BY THE CITY
BASED ON ORANGE COUNTY HUD /HCD INCOME LIMITS
The incomes listed below will be used to qualify potential tenants:
I Number of Persons Very -Low Income Low Income I
1
$33,750
$53,950
2
$38,550
$61,650
3
$43,350
$69,350
4
$48,150
$77,050
5
$52,050
$83,250
6
$55,900
$89,400
X59;750
$95551X
8
$63,600
$101,750
NOTE: The figures above shall only apply to calendar year 2014. Annual adjustments made to
the above figures shall be made by the City when the updated household incomes are
published by the State of California Housing and Community Development Department. The
updated figures shall then be applicable to all prospective tenants of Inclusionary Units for that
specified calendar year.
2014 Household Income Limits Page 1
City of Santa Ana August 8, 2014
19H -59
In clusio nary Housing Agreement— Re nta I Project September 18, 2014
City of Santa Ana 19H-60
AFFORDABLE HOUSING COSTS - 2014
HOUSING OPPORTUNITY ORDINANCE
TO BE UPDATED ANNUALLY BY THE CITY
BASED ON ORANGE COUNTY HCD INCOME LIMITS
The Affordable Housing Costs will be applied to Inclusionary Units in 2014. These Affordable
Housing Costs must be reduced by the applicable Utilities Allowances to arrive at the Affordable
Rent for the Inclusionary Units:
Number of Bedrooms
Very-Low Income
Low Income
Studio Units
$763
$916
One - Bedroom Units
$872
$1,046
Two - Bedroom Units
$981
$1,178
Three - Bedroom Units
$1,090
$1,308
Four-Bedroom Units
$1,178
$1,413
NOTE: The figures above shall only apply to calendar year 2014. The City will update the
Affordable Housing Costs each year when the updated household incomes are published by the
State of California Housing and Community Development Department (HCD). The updated
Affordable Housing Costs shall then be applicable to the Inclusionary Units for that specified
calendar year.
Affordable Housing Costs - 2014 Page 1
City of Santa Ana August 8, 2014
19H -61
UTILITIES ALLOWANCES - 2014
I riclusimary -Housing Agreement- Rental Project September , - , - 18, 2014
City of Santa Ana 19H-62
MAYOR
Miguel A. Pulido
MAYOR PRO TEM
Sal Tlnajero
COUNCILMEMBERS
Angelica Amezcua
P. David Benavides
Michele Martinez
Roman Reyna
Vincent F. Sarmiento
CITY OF SANTA ANA
SANTA ANA HOUSING AUTHORITY
20 Civic Center Plaza • P,O. Box 22030
Santa Ana, California 92702
www santa -ana ora
UTILITY ALLOWANCE SCHEDULE
EFFECTIVE DATE: January 1, 2014
CITY MANAGER
David Cavazos
C ITY ATTORN EY
Sonia R. Canealho
CLERK OF THE COUNCIL
Maria D. Huizar
BEDROOMS
0
1
2
3
4
5
GAS
COOKING
2
6
6
9
11
15
HEATING
11
14
17
25
31
32
WATER HEATING
6
7
8
14
17
19
-- —_
ELEer- arc—
—
BASIC
11
16
20
34
34
34
COOKING
4
7
8
11
15
17
HEATING
9
13
17
22
28
32
WATER HEATING
13
18
23
31
32
32
WATER
16
19
23
32
38
43
TRASH
16
SEWER
7
REFRIGERATOR
9
STOVE
7
MOBILE HOME FLAT RATE
62
SANTA ANA CITY COUNCIL
Miguat A. Pulldo i Sal 71n4 wo Vlri.t F. Sa enb Mlchele MaN.a } Angelica Amezcua R David aenavidos Romnn Reyne
Mayor Mayor Pm Tem,WeM6 I ward 1 Ward2 Warda ward Wards
�GPuI'do�sanfa- oneora ST'neer,l,r,nla- areoraI V$armlantcA'anlalna on Mtda in 5-nfe -ana or APmexcueMentamaara OBenavidea®sarta- ana am RRavnansanta.anaoto
EXHIBIT 9
___.._...._.
Inclusionary Housing Agreement— Rental Project 19H-64 September 18, 2014
City of Santa Ana
ANNUAL TENANT RECERTIFICATION
CITY OF SANTA ANA
AFFORDABLE RENTAL HOUSING PROGRAM
Date:
Tenant Name:
Unit Address:
Dear
In accordance with the requirements imposed by the City of Santa Ana (City) Housing
Opportunity Ordinance, and your lease, the City requires that we review your income and family
composition every year. To complete our review, the Property Owner or Property Manager will
set up a meeting with you to receive the necessary information.
— When-you attend -the meeting with -the Property Owner or Property Manager you must bring
documents that verify the income of all the adult members of your household. This information
can include income tax returns, employment verification, wage statements, interest statements,
and /or unemployment compensation statements.
Cooperation with the recertification requirement is a condition of continuing tenancy in an
Inclusionary Unit. You must report the required information to enable the Property Owner to
process the recertification by Month /Day.
Sincerely,
Property Manager/ Property Owner
Annual Tenant Recertification Form
Santa Ana, California
19H -65
Page 1
August 8, 2014
TENANT INCOME VERIFICATION FORM
Head of Household (Print Name):
Address:
Telephone Number: Home: Work: Cell:
Date of Birth:
Social Security #:
Household Composition
List All Household Members Living in the Inclusionary Unit
Dependent
Name Sex Age (YIN) Social Security#
List additional household members on a separate sheet of paper.
Tenant Income Veriflcation Form Page 1
Santa Ana, California 19H-66 August 8, 2014
TENANT 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 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/retlrement funds, disability or death
--
benefits rived 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
Tenant income Verification Form Page 2
Santa Ana, California 9 ��� August 8, 2014
TENANT INCOME VERIFICATION FORM
Monthly Gross Income*
List All Sources of Income of All Household Members Living in the Inclusionary Unit
Part 2: Investment Income
Head of
Household
Other Adult
Household
Members.
Total
Household
Investment
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(descrtbe)—
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.
Tenant Income VeriRcation Form Page 3
Santa Ana, California 19H-68 August 8, 2014
TENANT INCOME VERIFICATION FORM
* *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 $6,000, 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 4
Santa Ana, California 19H-69 August 8, 2014
Assets
List the Current Value of All Assets of All Household Members Living In the Incluslonary Unit
If the Asset generates income, that income must be specified In Park 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 $6,000, 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 4
Santa Ana, California 19H-69 August 8, 2014
TENANT 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 10%
$
The Greater of #1 or #2 = Investment Income to be Included in Annual Household Income $
Calculation of the Household's Total Annual Income
Total Annual Household Gross Earned Income $
Total Investment Income to be Included in Annual Household Income $
Total Household Income $
Attach True Copies of the Relevant Documents Listed Below
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 Veriflcation Form Page 5
Santa Ana, California 19H-70 August 8, 2014
AFFIDAVIT
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. (]/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 (Uwe) 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 Santa Ana, California.
Printed Name
Executed at
Signature
Printed Name
Executed at
Date
Santa Ana, California
Date
Santa Ana, California
Santa Ana, California 19H-71 August 8,
EXHIBIT 10
ANNUAL RENTAL HOUSING COMPLIANCE REPORT
Inclusionary Housing Agreement — Rental Project 19H-72 September 18, 2014
City of Santa Ana
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EXHIBIT 11
NOTICE OF AFFORDABILITY COVENANTS ON TRANSFER OF
PROPERTY
Inclusionary Housing Agreement — Rental Project September 18, 2014
City of Santa Ana 19H-74
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF
=i17J1_40
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 an Inclusionary Housing Agreement with
('Property Owner "). The Inclusionary
Housing Agreement imposes income and affordability covenants on designated
Inclusionary Units within the Project located at _, Santa Ana,
Orange County, Assessor's Parcel Number , and further
described in the legal description provided in Exhibit 1 to the Inclusionary
Housing Agreement.
The Inclusionary Housing Agreement was recorded as Document/instrument
Number , and shall remain in effect until
20 (Insert date of the termination of the Affordability Period). The Inclusionary
-- — - Housing Agre-ement-imposs the following income and affordability restrictions
on the Inclusionary Units:
Very-Low
Income Low Income
Number of Bedrooms Households Households
Studios Units
One - Bedroom Units
Two - Bedroom Units
Three - Bedroom Units
Four - Bedroom Units
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 the transferee execute the documents necessary to transfer the Inclusionary
Housing Agreement obligations from the Property Owner to the transferee.
Notice of Affordability Restrictions on Transfer of Property Page 1
City of Santa Ana August S, 2014
19H -75
This Notice of Affordability Covenants on Transfer of the Property in no way
modifies the provisions of the Inclusionary Housing Agreement. In the event of
any conflict between this Notice of Affordability Covenants on Transfer of the
Property and the Inclusionary Housing Agreement, the terms of the Inclusionary
Housing 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]
Notice of Affordability Restrictions on Transfer of Property Page 2
City of Santa Ana August 8, 2014
19H -76
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF
PROPERTY
APPROVED AS TO LEGAL FORM:
13
City Attorney
City of Santa Ana
CITY:
CITY OF SANTA ANA
A California Municipal Corporation
Name:
Its:
Date:
Notice of AffordablRy Restrictions on Transfer of Property Page 3
City of Santa Ana August S, 2014
19H -77
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF
PROPERTY
PROPERTY OWNER:
u
A
-----Name:------ _ --
Its:
Date:
M
Name:
Its:
Date:
Notice of Affordability Restrictlons on Transfer of Property Page 4
City of Santa Ana August 8, 2014
19H -78
EXHIBIT 12
DRAFT AFFORDABLE RENTAL HOUSING ADMINISTRATIVE
PROCEDURES
Inclusionary Housing Agreement — Rental Project - SeptembeH 8, 2014
City of Santa Ana 19H-79
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The City of Santa Ana
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19H -80
TABLE OF CONTENTS
A. Affordable Rental Housing Program ..... ............... .........................
U11" PROGRAM ADMINISTRATION ~~.~~~.—.,^.
..^..............^"""^^..'."^^. 1
"^~°,^.`"^,"^,."...~0
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~~.......�8
^....—""",.."^.~~~10
/\ Qennny.....^..~....--..`..,`.~.....~..,.....,^.......~.~i0
S. Fair Housing Policy ............................................................. .. ....... ................................... 1O
C. Privacy Rights ............ ....... ........ ............. ........................................................................ 10
D. Authorization ................ ....... ............. ............... ................. ........................................... i0
IV. DETERMINATION OF TENANT ELIGIBILITY &AFFORDAB[.E RENT .... 12
A. General Policy ....................... ................... ............... ............ ...... .................................. 12
EL Applicant Eligibility Criteria ........................................................................................ ....... 1%
{, .......... .................... ................ —.~^,",", ....... "",". ...........
D. Affordable Rent Calculations ...... ...... .................. .... ........ ................. . ....................... 18
V. COMPLAINTS AND APPEALS ^^"~^,,..—~.^~".~.,,^~^.~.^~^."".^"^~,...,."^,..^^"^. 15
A. General Policy '`~~~,,.' .......................................................
.'
B. Program Audits .............................................................................
19H401
--.,.^..—~~.,iO
`^~~^.~^.~^.~.1O
..........,.��8
ATTACHMENTS
Attachment A
Housing Opportunity Ordinance - Article XVIILI Section 41 -1900 of the
Santa Ana Municipal Code
Attachment B
Housing Opportunity Ordinance — Affordable Rental Housing Program
Summary
Attachment C
Inclusionary Housing Plan
Attachment D
Household Income Limits - 2014
Att achment E Affordable Housing Costs - 2014
Attachment F Utility Allowances — 2014
Attachment G Annual Tenant Recertification Form
Attachment H Annual Rental Housing Compliance Report
Attachment I Inclusionary Housing Fund
Attachment J In -Lieu Fee Calculation Worksheet__
19H -82
DEFINITIONS OF TERMS
Adjusted Household Size Appropriate for the Unit is based on the H &SC
Section 50053 definition, and is only used in the Affordable Housing Cost
calculations. For Affordable Housing Cost calculation purposes, the household
size is set at one person in the case of a studio unit, two persons in the case of a
one - bedroom unit, three persons in the case of a two- bedroom unit, four persons
in the case of a three - bedroom unit, and five persons in the case of a four -
bedroom unit. This household size standard is used in the Affordable Housing
Cost calculations; it is not an occupancy limit.
Administrative Procedures means the Affordable Rental Housing
Administrative Procedures promulgated by the Executive Director pursuant to the
Ordinance.
Administrative Procedures Manual is the Affordable Rental Housing
Administrative Procedures Manual dated 2014, which has been
prepared by the City for the implementation and enforcement of the Ordinance.
A copy of the Administrative Procedures Manual shall be maintained on file with
the City, and shall be provided to each Property Owner that is subject to the
Ordinance requirement.
Adult means a person 18 years of age or older.
Affordability Covenants shall mean the Gross Household Income and
Affordable Rent standards that will be applied to the Inclusionary Units
throughout the Affordability Period. These covenants will be defined in an
Inclusionary Housing Agreement.
Affordability Period shall be set at 55 years from the Recordation Date.
Affordable Housing Cost means the maximum costs that can be borne by
Very-Low Income Households and Low Income Households based on the
requirements imposed by H &SC Section 50053. The calculation methodology is
described in Section IV of the Administrative Procedures Manual.
Affordable Rent shall mean the Affordable Housing Cost minus the applicable
Utilities Allowance for each Inclusionary Unit.
Affordable Rental Housing Administrative Procedures Page 1
1407003.SNA August 8, 2014
19H -83
Affordable Rental Housing Program shall mean rental units developed under
the Ordinance.
Applicant means a Household that is applying to rent an Inciusionary Unit.
City means the City of Santa Ana, California.
City Council means the City Council of the City of Santa Ana.
County means the County of Orange.
County Median Income shall mean the Median Income adjusted by actual
household size as published annually by HCD for the County.
Eligible Tenant shall mean a tenant who meets the eligibility criteria set forth in
the Inclusionary Housing Agreement for the Project.
Executive Director is the Executive Director of the Community Development
Agency of the City. The Executive Director, or designee, has the ultimate
authority to evaluate appeals submitted in relation to the Administrative
Procedures.
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 5914. The definition
Includes the following specific requirements:
Except as provided in subdivision (2), all payments from all sources
received by the head of Household (even if temporarily absent) and each
additional member of the Household who is not a minor shall be included
in the annual income of a Household. Gross Household Income shall
include, but not be limited to:
a. The gross amount, before any payroll deductions, of wages and
salaries, overtime pay, commissions, fees, tips and bonuses;
b. The net income from operation of a business or profession or from
rental or real or personal property (for this purpose, expenditures
Affordable Rental Housing Administrative Procedures Page 2
1407003.SNA August 8, 2014
19H -84
for business expansion or amortization of capital indebtedness shall
not be deducted to determine the net income from a business);
C. Interest and dividends;
d. The full amount of periodic payments received from social security,
annuities, insurance policies, retirement funds, pensions, disability
or death benefits and other similar types of periodic receipts (but
see subdivision (2)(c));
e. Payments in lieu of earnings, such as unemployment and disability
compensation, worker's compensation and severance pay;
Public Assistance. If the public assistance payment includes an
amount specifically designated for shelter and utilities which is
subject to adjustment by the public assistance agency in
accordance with the actual cost of shelter and utilities, the amount
of public assistance income to be included as income shall consist
of.
The amount of the allowance or grant exclusive of the
amount specifically designated for shelter and utilities, plus
ii. The maximum amount which the public assistance agency
could In fact allow for the Household for shelter and utilities.
g. Periodic and determinable allowances such as alimony and child
support payments, and regular contributions or gifts received from
persons not residing in the dwelling;
h. All regular pay, special pay and allowances of a member of the
Armed Forces (whether or not living in the dwelling) who is head of
the Household or spouse or domestic partner (but see subdivision
(2)(e)Y
Where a Household has net assets in excess of $5,000, income
shall include the actual amount of income, if any, derived from all of
the net Household assets or 10 percent of the value of all such
assets, whichever is greater. For purposes of this section, net
Affordable Randal Housing Administrative Procedures Page 3
1407003.SNA - August S, 2014
19H -85
Household assets means value of equity in real property other than
the Household's full -time residence, savings, stocks, bonds, and
other forms of capital investment. The value of necessary items
such as furniture and automobiles shall be excluded.
2. The following items shall not be considered as income:
a. Casual, sporadic or irregular gifts;
b. Amounts which are specifically for or in reimbursement of the cost
of medical expenses;
C. Lump -sum additions to Household assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains and
settlement for personal or property losses;
d. Amounts of educational scholarships paid directly to the student or
to the educational institution, and amounts paid by the government
_ _ to a_veterar- for-use -in- meeting -the costs -of tuition, fees, books -and -
equipment. Any amounts of such scholarships, or payments to
veterans not used for the above purposes of which are available for
subsistence are to be included in income;
e. The special pay to a serviceman head of a Household away from
home and exposed to hostile fire;
Relocation payments made pursuant to federal, state, or local
relocation law;
g. Foster child care payments;
h. The value of coupon allotments for the purchase of food pursuant
to the Food Stamp Act of 1964 which is in excess of the amount
actually charged the eligible Household;
Payments received pursuant to participation in the following
volunteer programs under the ACTION Agency:
Affordable Rental Housing Administrative Procedures Page 4
1407003.SNA August S. 2014
19H -86
National Volunteer Antipoverty Programs which include
VISTA, Service Learning Programs and Special Volunteer
Programs.
National Older American Volunteer Programs for persons
aged 60 and over which include Retired Senior Volunteer
Programs, Foster Grandparent Program, Older American
Community Services Program, and National Volunteer
Program to Assist Small Business Experience, Service
Corps of Retired Executive (SCORE) and Active Corps of
Executives (ACE).
HCD means the California Housing and Community Development Department,
H &SC shall mean the California Health and Safety Code.
HUD shall mean the United States Department of Housing and Urban
Development.
—
Household means all- the- persons-who will- occupy the—lnduslona y Unit—.A child
who is subject to a legally- binding shared- custody agreement, in which the child
resides with the Household at least 50% of the time, Is counted as a member of
the Household. Excluded from the definition of Household are live -in
caregivers/caretakers, foster children, unborn children and children being
pursued for legal custody or adoption that are not currently living with the
Household.
Inclusionary Housing Agreement means a legally binding agreement between
the Property Owner and the City, in a form and substance satisfactory to the
Executive Director and City Attorney. The Inclusionary Housing Agreement must
contain those provisions necessary to ensure that the Ordinance requirements
are satisfied, whether through the provision of Affordable Rental Housing Units or
through an approved alternative method.
Inclusionary Housing Fund means a separate fund of the City which is codified
in Article XVI11.1 Section 41 -1909 of the City's Municipal Code. The fund was
established for the specific purpose of providing the City with funds to assist in
the development of housing that is affordable to low and moderate income
Affordable Rental Housing AdministmOve Procedures Page 5
1407003.SNA August 8, 2014
19H -87
households. The allowable uses of Inclusionary Housing Funds, and the related
reporting are described In Attachment I of the Administrative Procedures Manual.
Inclusionary Housing Plan means a plan submitted for approval to the Program
Director that details the manner in which the affordable housing obligations will
be fulfilled by the Project. The Inclusionary Housing Plan form is presented in
Attachment C of the Administrative Procedures Manual, and also attached as
Exhibit 4 to the Inclusionary Housing Agreement.
Inclusionary Unit means a rental unit in Santa Ana that is made affordable by
covenants or conditions restricting occupancy and rental rate charged as
described in this Administrative Procedures Manual.
In -Lieu Fee refers to a fee that may be paid by the Property Owner in specific
circumstances in lieu of providing Inclusionary Units within a Project. These
circumstances are identified in Section II -A of the Administrative Procedures
Manual. The In -Lieu Fee calculation worksheet is updated annually. The current
Affordable Housing In -Lieu Fee calculation worksheet schedule is presented in
Attachment J of this Administrative Procedures Manual.
Low Income refers to Households whose incomes meet the standards defined
by the H &SC Section 50079.5. Generally Low Income means household income
that does not exceed 80% of the County Median Income, as adjusted for
Household size. However, the maximum household income amount for Low
Income Households shall be set at the amount published by HCD annually.
Low Income Household means individuals or Households who have an
adjusted Gross Household Income that does not exceed Low Income.
Median Income is calculated by HCD using non - aggregated census income data
and applying trending factors for metropolitan statistical areas (MSA) throughout
the country. The MSA for Santa Ana is Orange County.
Ordinance means the Housing Opportunity Ordinance adopted by the City
Council on November 7, 2011, which is codified in Article XVI11.1 Section 41-
1900 of the City's Municipal Code.
Affordable Rental Housing Adminlstrative Procedures Page
1407003.SNA August 6, 2014
19H -88
Program Director has the day -to -day authority for making determinations
related to the Ordinance and this Administrative Procedures Manual. The
Program Director will be appointed by the Executive Director.
Project means the rental housing project proposed to be developed on the
Property at the Property Owner's sole cost and expense.
Property means the real property on which the Project is to be developed, for
which the legal description Is provided in Exhibit 1 to the Inclusionary Housing
Agreement.
Property Owner shall mean the owner of the Project that includes Inclus €onary
Units.
Recordation Date means the date of recording in the Official Records of the
County of Orange, California of the Inclusionary Housing Agreement.
Utilities Allowance shall mean the Utility Allowance Schedule published
annually by the Orange County Housing Authority.
Very-Low Income refers to Households whose incomes meet the standards
defined by the H &SC Section 50105. Generally Very-Low Income means
household income that does not exceed 50% of the County Median Income, as
adjusted for Household size. The maximum household income amount for Very-
Low Income Households shall be set at the amount published by HCD annually.
Very-Low Income Household means individuals or Households who have an
adjusted Gross Household Income that does not exceed Very-Low Income.
Affordable Rental Housing Administrative Procedures Page 7
1407003.SNA August 8, 2014
19H -89
II. INTRODUCTION
A. Affordable Rental Housing Program
The Ordinance applies to housing developments that involve an increase in the
density otherwise available under applicable zoning and development standards;
a change in land use designation from a zoning regulation that does not permit
residential uses to one that does permit residential uses; or the conversion of
rental units to condominium ownership. For those Projects, at least 15% of new
housing construction of five or more units to be affordable for Very Low or Low
Income Households.
Property Owners are typically required to meet their Inclusionary Units obligation
within the market rate residential development. With approval from the City, a
portion of Inclusionary Units may be provided at alternative locations. Property
Owners may designate newly constructed units as affordable to meet their
requirement, or they may substantially rehabllitatel existing housing units and
designate them as affordable. In -Lieu Fees can be paid by right for Projects with
between five and 20 units, and for fractional unit obligations. An In -Lieu Fee
— — calcuTation worksheet is presented in Attachment J to this Administrative
Procedures Manual.
Property Owners of Projects subject to the Ordinance must submit an
Inclusionary Housing Plan to the Program Director for approval prior to the award
of discretionary approvals for the proposed Project. The Inclusionary Housing
Plan must demonstrate how the Project will comply with the pertinent
Inclusionary Housing obligations. The Property Owner must fulfill all the
requirements identified in the Inclusionary Housing Plan before the City will issue
a certificate of occupancy for the Project.
B. Purpose of these Administrative Procedures
The primary objective of the Affordable Rental Housing Program is to provide
affordable housing to residents who would otherwise have difficulty renting a
t Defined as rehabilitation of a dwelling unit that has substantial building and other code
violations, that has been vacant for at least 90 days, and the cost exceeds 25% of the market
value of the unit after rehabilitation.
Affordable Rental Housing Administrative Procedures Page 8
1407003.SNA August 8, 2014
19H -90
home in Santa Ana. Persons interested in renting an Inclusionary Unit through
the City's Affordable Rental Housing Program, must comply with tenant eligibility.
requirements imposed by the City.
The principal mechanism the City uses to establish restrictions on Inclusionary
Units is the Inclusionary Housing Agreement recorded against the Project. While
the individual terms of the Inclusionary Housing Agreements are controlling, this
Administrative Procedures Manual addresses the following:
The eligibility criteria to be imposed on prospective tenants;
2. The methodology for setting the maximum rental rates;
3. The complaints and appeals process available to program participants;
and
4. The monitoring and enforcement activities that will be undertaken by the
City.
In_the_event there is an irreconcilable conflict between the- Inclusionary Housing—
Agreement and the Administrative Procedures, the Inclusionary Housing
Agreement will control.
Affordable Rental Housing Administrative Procedures Page 9
1407003.SNA August B, 2014
19H -91
III. PROGRAM ADMINISTRATION
A. General
The City defines the requirements that are imposed by the Affordable Rental
Housing Program. The Program Director oversees the Inclusionary Units upon
their completion, which includes calculating the Affordable Rents, determining
tenant eligibility, and monitoring program compliance on an ongoing basis.
B. Fair Housing Policy
Property Owners must comply fully with all Federal, State, and local non-
discrimination laws, Specifically, Property Owners shall not discriminate on
account of race, color, sex, religion, sexual orientation, creed, ancestry, national
or ethnic origin, age, family or marital status, handicap or disability, or deny any
Household or individual the opportunity to apply for or participate in the
Affordable Rental Housing Program.
C. Privacy Rights
All eligibility applications are held in strict confidence and are not considered
public records (H &SC Section 34332). Requests for the City to release
information involving an Applicant must be accompanied by a written release
request from the Applicant and /or a court order, unless disclosure is authorized
under Federal or State law.
D. Authorization
The Program Director and /or a designee are authorized to sign all documents
requiring approvals related to the development, waivers, subordinations, and any
non - substantial changes to these Administrative Procedures.
E. Administrative Procedures
Each Property Owner participating in the Affordable Rental Housing Program will
receive a copy of the Administrative Procedures Manual. The Administrative
Procedures may be updated from time to time to increase the programs'
effectiveness; modifications will require City Council approval
Affordable Rental Housing Administrative Procedures Page 10
1407003.SNA August B. 2014
19H -92
Each transaction will include an Inclusionary Housing Agreement that will be
executed by the City and the Property Owner. In the event there is a conflict
between the Inclusionary Housing Agreement and the Administrative
Procedures, the Inclusionary Housing Agreement will prevail.
Affordable Rental Housing Administrative Procedures Page 11
1407003.SNA August 3, 2014
19H -93
IV. DETERMINATION OF TENANT ELIGIBILITY & AFFORDABLE RENT
A. General Policy
Applicants will be required to provide documentation demonstrating that they are
eligible to rent an Inclusionary Unit. Applicants unable to provide satisfactory
evidence of income, assets, Household composition, or other qualifying criteria
will not be considered an Eligible Tenant, and will not be allowed to rent an
Inclusionary Unit.
B. Applicant Eligibility Criteria
United States Citizenship /Legal Residency
Applicants and all Household members must be United States Citizens or have
the right to permanently reside in the United States. Acceptable citizenship
documentation includes a birth certificate or a Permanent Resident Card.
Household and Unit Size Compatibility
The size of the Household occupying the Inclusionary Unit must be compatible
with the size of the Inclusionary Unit to be occupied. The maximum number of
occupants is set as follows:
Maximum
Number of
Number of Bedrooms Occupants
Studios Units 2
One - Bedroom Units 3
Two - Bedroom Units 5
Three- Bedroom Units 7
Four - Bedroom Units 9
Verifiable income /Annual Recertification
All Adult Household members listed on the tenant application must provide
income documentation to the Property Owner or properly manager. This
documentation can include income tax returns, employment verification, wage
Affordable Rental Housing Administrative Procedures Page 12
1407003.SNA August 8, 2014
19H -94
statements, interest statements, and/or unemployment compensation statements
to determine eligibility to reside in the Inclusionary Unit.
Once per year, over the life of the Affordability Period, the Property Owner or
property manager will recertify each tenant in an Inclusionary Unit's annual Gross
Household Income. The Property Owner or property manager will establish an
annual recertification schedule and perform all tenant recertifications at the same
time. Each tenant will be required to provide the appropriate documentation to
certify their Gross Household income.
Composition of Household
Any alteration to the Household composition must be disclosed during the annual
recertification process.
C. Income Eligibility Criteria
Gross Household Income
The Property Owner or property manager will-consider Gross Household Income— - for all Adult Household members when determining Applicant eligibility to reside
in an Inclusionary Unit. The funds included in Gross Household Income are
detailed in the definitions section of these Administrative Procedures.
Maximum income
The maximum allowable income is set forth for each Project and /or unit by the
affordable housing agreements recorded on legal title to the property. Income
levels include, but are not limited to Very-Low and Low Income as defined in
these Administrative Procedures. The 2014 household income limits are
presented in Attachment D to this Administrative Procedures Manual. In the
case of conflict among the agreements, the most stringent requirement must be
applied.
D. Affordable Rent Calculations
Rental rates for the Inclusionary Units must be set at levels affordable to Very-
Low Income Households and Low Income Households as set forth in the
Project's Inclusionary Housing Agreement. The Affordable Rent is equal to the
Affordable Rental Housing Administrative Procedures Page 13
1407003.SNA August 8, 2014
19H -95
Affordable Housing Cost minus the applicable Utilities Allowances. The 2014
Affordable Housing Cost calculations and Utilities Allowances are presented in
Attachments E and F, respectively.
The Program Director will calculate the allowable rental rates based on the
standards imposed in the Project's inclusionary Housing Agreement. In the case
of conflicts in the requirements imposed by the City and other funding sources
used to finance the Project, the most stringent requirement must be applied.
The Affordable Rents may be re- evaluated once annually based on changes in
the Gross Household Incomes (usually updated during the first quarter of each
year). Any changes in the rents charged for the Inclusionary Units must first be
approved in writing by the Program Director. The Property Owner, or property
manager, must provide a Notice of Rent Increase to each Household renting an
Inclusionary Unit.
Affordable Rental Housing Administrativo Procedures Page 14
1407003.SNA August 8. 2014
19H -96
V. COMPLAINTS AND APPEALS
Complaints concerning the City's Affordable Rental Housing Program should be
made in writing and addressed to the Program Director. Complaints will be
accepted only if they are in writing and are received within 30 days from the
event giving rise to the complaint. The Program Director will contact the
complainant to attempt to resolve the matter. A written response from the
Program Director will be made to the complainant within 10 business days.
If a complainant is not satisfied with the written response, a request for an appeal
may be filed with the Executive Director. The written request must set forth the
reasons for the appeal and must be received by the Executive Director within 15
days from the date of the Program Director's written response. In the event the
request does not meet these requirements, the complainant will be notified that
the request is denied; otherwise, the complainant will be invited to meet with the
Executive Director. The Executive Director will provide the complainant with an
opportunity to advocate his /her position and to resolve the matter. The Executive
Director's response will be made in writing within 10 business days following the
— meeting. - -- —— -- — - --
Affordable Rental Housing Adminlstrative Procedures Page 15
1407003.SNA August 6, 2014
19H -97
VI. MONITORING AND ENFORCEMENT
A. General Policy
At the time of initial occupancy, and annually thereafter, the City will monitor the
Project to ensure that the income verifications are correct and in compliance with
these Administrative Procedures. The City is committed to assuring that its
affordable housing resources reach only Eligible Tenants so that program
integrity can be maintained. Property Owners are required to cooperate with the
City in promptly providing all information requested by the City in monitoring
compliance with program requirements.
B. Program Audits
City staff will maintain a high level of awareness to indicators of possible abuse
and fraud by Property Owners and tenants living in Inclusionary Units. The City
will conduct periodic random quality control audits of Inclusionary Units to assure
compliance with program rules and requirements. Such audits may include
verification of continued occupancy in Inclusionary Units by Eligible Tenants,__
compliance with the Affordability Covenants, and physical inspections of the
Project.
C. Program Abuse and Fraud Protections
City staff will investigate suspected program abuse and fraud as appropriate.
City staff will take all steps necessary and appropriate, both administrative or
legal, to enforce program requirements.
Referrals, Complaints, or Tips
The City will follow up on referrals from other agencies, companies, or individuals
that are received by mail, by telephone, or in person, which allege that a Property
Owner or tenant of an Inclusionary Unit is in non - compliance with or otherwise
violating program rules. Such follow up will be made providing that the referral
contains at least one item of information that is independently verifiable. A copy
of the written allegation or a summary of the verbal allegation will be placed in
the Property Owner's file.
Affordable Rental Housing Administrative Procedures Page 18
1407003.SNA . - August 8, 2014
19H -98
Internal File Review
The City will investigate instances where it discovers, as a result of administering
the program, information or facts that conflict with previous file data or any
knowledge of the Property Owner or tenant, or are In any way discrepant with
statements made by the Property Owner or tenant.
Referrals to the City Attorney
In the event of a breach or potential breach of program requirements, the City
may institute legal action to enforce compliance with the program requirements,
and to enjoin any actions by Property Owners that violate program requirements.
The City's legal remedies may additionally include the following:
Actions to disapprove, revoke or suspend any permit, including a Building
Permit, Certificate of Occupancy or other discretionary approval;
2. Injunctive relief and damages;
3. _ - Civil-citations with - monetary penalties - for violations-of the Administrative
Procedures; and
4. Recovering any excess rent that a tenant may have paid to a Property
Owner.
Affordable Rental Housing Administrative Procedures - Page 17
1407003.SNA August 8, 2014
19H -99
ATTACHMENT A
HOUSING OPPORTUNITY ORDINANCE
ARTICLE XVIII.1 SECTION 41 -1900 OF THE
SANTAANA MUNICIPAL CODE
Affordable Rental Housing Administrative Procedures
1407003,SNA August 8, 2014
19H -100
ATTACHMENT B
HOUSING OPPORTUNITY ORDINANCE
AFFORDABLE RENTAL HOUSING PROGRAM SUMMARY
Affordable Rental Housing Admintstretive Procedures
1407003.SNA August 8, 2014
19H -101
CITY OF SANTA ANA
HOUSING OPPORTUNITY ORDINANCE
AFFORDABLE RENTAL HOUSING PROGRAM SUMMARY
The following document is meant to provide Property Owners that wish to
construct rental housing projects with a basic summary of the City of Santa Ana's
(City) Housing Opportunity Ordinance (Ordinance) requirements. This summary
only identifies the basic characteristics of the program. Persons interested in
learning more about the affordable housing obligations imposed by the
Ordinance may request an Administrative Procedures Manual from the City.
Key Housing Opportunity Ordinance Requirements
A primary objective of the Ordinance is to provide affordable rental opportunities
to residents who would otherwise have difficulty owning a home in Santa Ana.
The Ordinance applies to residential projects with five or more units, under the
following conditions:
1. The conversion of commercial or industrial land to a residential use; or
A zone change that increases the allowable residential density from the
level that was permitted by the zoning in place as of the date of the
application; or
The conversion of a hotel to a residential use; or
4. An increase In the percentage of residential development included in a
mixed -use development above the amount allowed by the zone; or
5. The conversion of rental units to ownership condominium units.
Rental projects that are subject to the Ordinance are provided with the following
alternatives for fulfilling the affordable housing requirements:
Fifteen percent (15 %) of the units within the market rate project can be
rented to Very-Low Income Households and Low Income Households at
the defined Affordable Rents; or
2. The required number of Inclusionary Units may be provided in a newly
constructed project located in an off -site location; or
Housing Opportunity Ordinance — Affordable Rental Housing Program Summary Page 1
City of Santa Ana August 8, 2014
19H -102
3. Existing rental units can be acquired, substantially rehabilitated and then
income and affordability covenants can be placed on the units. In order to
exercise the acquisition and substantial rehabilitation option, the existing
units must exhibit substantial building and other code violations, the units
must have been vacant for at least 90 days, and the rehabilitation costs
must be equal to at least 25% of the market value of the unit after the
rehabilitation is completed; or
4. An In -Lieu Fee can be paid by right for projects with between five and 20
units, and for fractional unit obligations. In addition, projects with more
than 20 units can fulfill the obligation by paying an In -Lieu Fee if the City
Council determines that the cost of providing the Inclusionary Units on site
would substantially exceed the applicable In -Lieu Fee.
Other key requirements are as follows:
1. The Inclusionary Units must be:
a. Reasonably dispersed throughout the market rate project;
b. Proportional in the number of bedrooms to the market rate units in
the project;
C. Comparable to the market rate units in terms of design, materials,
finished quality and appearance; and
d. Permitted the same access to project amenities and recreation
facilities as the market rate units.
The Inclusionary Units must be constructed at the same time or before the
construction of the market rate units.
The Property Owner must accept recorded income and affordability
controls that will remain in place for 55 years from the date the Project is
placed in service.
Administrative Procedures Manual
The requirements that are imposed on rental housing projects are detailed in the
Affordable Rental Housing Administrative Procedures Manual adopted by the
City Council, The Administrative Procedures Manual provides Property Owners
with the following information:
Housing Opportunity Ordinance— Affordable Rental Housing Program Summary Page 2
City of Santa Ana August B, 2014
19H -103
The eligibility criteria to be imposed on prospective tenants;
2. The methodology for setting the maximum rental rates;
3. The complaints and appeals process available to program participants;
and
4. The monitoring and enforcement activities that will be undertaken by the
City.
City Contact
For additional information, please contact the City's Program Director:
Contact Person
Email Address
Telephone Number
Housing Opportunity Ordinance —Affordable Rental Housing Program Summary Page 3
City of Santa Ana August 8, 2014
19H -104
ATTACHMENT C
INCLUSIONARY HOUSING PLAN
Affordable Rental Housing Administrativa Procedures
1407003.8NA August B, 2014
19H -105
INCLUSIONARY HOUSING PLAN
RENTAL PROJECT
APPLICATION NUMBER:
City of Santa Ana, Planning Division
20 Civic Center Plaza
Santa Ana, California 92701
714.667.2700
Project Address:
Assessor Parcel Number(s):
Site Dimension and Square Footage:
Property Owner's Name:
Contact Person:
Work Telephone:
Street Address:
City:
Applicant's Name:
Contact Person:
Work Telephone:
Street Address:
City:
State:
State:
Email:
Mobile Phone:
Email:
Mobile Phone:
Zip:
Zip:
Inclusionary Housing Plan — Rental Project Page 1
Santa Ana, California August B, 2014
19H -106
I. INCLUSIONARY HOUSING ALTERNATIVES
Select the applicable alternatives to indicate how the project will comply with the
inclusionary housing requirement:
On -site construction of inclusionary units
In -lieu fee payment for entire obligation
In -lieu fee payment for fractional unit 1
Land dedication
Note: Alternatives other than "on -site units" require City Council approval.
IL PROJECT DESCRIPTION
Describe the project in the following chart:
Number of
Bedrooms
Unit Size
(Square Feet.)
Number of
Market
Rate Units
Number of
Low Income
Units
Number of
Very-Low
Income Units
Total
Number of
Units
Studio
1
2
3
4
8
--
'If the calculation of the number of required inclusionary housing units results Ina fractlon, the developer
has the option to (a) provide an additional Incluslonary housing unit or (b) pay an In -Lieu Fee equal to the
percentage represented by the fractional inclusionary housing unit multiplied by the applicable In -Lieu
Fee,
Incluslonary Housing Plan — Rental Project Page 2
Santa Ana, California August 8, 2014
19H -107
A. Identify the gross livable area of the proposed project
(including private balconies, decks and patios. square feet
B. Will the project be constructed in phases? Yes No
C. Is a density bonus being requested in accordance with
Municipal Code Section 41 -1600 Yes No
III. REQUIRED EXHIBITS TO THE INCLUSIONARY HOUSING PLAN
A. A narrative description of the entire project;
B. A site plan that depicts the entire project (minimum 11" x 17");
C. A depiction of the location of the inclusionary housing units; and
D. If applicable, a phasing plan that provides for the proportionate number of the
total inclusionary housing unit requirement to be built within each phase of the
project.
Inclusionary Housing Plan — Rental Project Page 3
Santa Ana, Califomia August S, 2014
19H -108
IV. PROPERTY OWNER'S AFFIDAVIT
I hereby certify that I am the legally authorized owner of all property involved in this
application or have been empowered to sign as the property owner on behalf of a
corporation, partnership, business, etc., as evidenced by separate instrument attached
herewith. I herby grant to the applicant submitting this form full power to sign all
documents related to this application, including any conditions or litigation measures as
may be deemed necessary.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on (Date) at California
Property Owner's Signature
Printed Name
V. APPLICANT'S AFFIDAVIT
I hereby certify that the statements furnished above and in the attached exhibits
represent the data and information required for this initial evaluation and that the facts,
statements and information presented are true and correct to the best of my knowledge
and belief. Further, should the stated information be found false or insufficient, I agree
to the return of this farm for appropriate revisions, understanding the City of Santa Ana
cannot process this form until all applicable Information is corrected or provided by the
applicant. I herby certify that I have been legally authorized by the property owner to
present this application and to sign on behalf of all documents related to this application,
including any conditions or litigation measures as may be deemed necessary.
Note: When the applicant is a corporation, partnership, business, etc., a separate
document verifying the authorization to sign for such applicant is required.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on (Date) at , California
Applicant's Signature
Applicant's Printed Name
Inclusionary Housing Plan — Rental Project Page 4
Santa Ana, California August 8, 2014
19H -109
ATTACHMENT D
HOUSEHOLD INCOME LIMITS - 2014
Affordable Rental Housing Administrative Procedures
1407003.SNA August 8, 2014
19H -110
HOUSEHOLD INCOME LIMITS
HOUSING OPPORTUNITY ORDINANCE
2014 HOUSEHOLD INCOME LIMITS
TO BE UPDATED ANNUALLY BY THE CITY
BASED ON ORANGE COUNTY HUDIHCD INCOME LIMITS
The incomes listed below will be used to qualify potential tenants:
Number of Persons
Very -Low income
Low Income
1
$33,750
$53,950
2
$38,550
$61,650
3
$43,350
$69,350
4
$48,150
$77,050
5
$52,050
$83,250
6
$55,900
$89,400
-7
$59,750
$95,550
8
$63,600
$101,750
NOTE: The figures above shall only apply to calendar year 2014. Annual adjustments made to
the above figures shall be made by the City when the updated household incomes are
published by the State of California Housing and Community Development Department. The
updated figures shall then be applicable to all prospective tenants of Inclusionary Units for that
specified calendar year.
2014 Household Income Limits Page 1
City of Santa Ana August 8, 2014
19H -111
ATTACHMENT E
AFFORDABLE HOUSING COST CALCULATIONS - 2074
Affordable Rental Housing Administrative Procedures
1407003.SNA August 8, 2014
19H -112
AFFORDABLE HOUSING COSTS - 2014
HOUSING OPPORTUNITY ORDINANCE
TO BE UPDATED ANNUALLY BY THE CITY
BASED ON ORANGE COUNTY HCD INCOME LIMITS
The Affordable Housing Costs will be applied to Inclusionary Units in 2014. These Affordable
Housing Costs must be reduced by the applicable Utilities Allowances to arrive at the Affordable
Rent for the Inclusionary Units:
Number of Bedrooms
Very-Low Income
Low Income
Studio Units
$763
$916
One - Bedroom Units
$872
$1,046
Two - Bedroom Units
$981
$1,178
Three- Bedroom Units
$1,090
$1,308
Four- Bedroom Units
$1,178
$1,413
NOTE: The figures above shall only apply to calendar year 2014. The City will update the
Affordable Housing Costs each year when the updated household incomes are published by the
State of California Housing and Community Development Department (HCD). The updated
Affordable Housing Costs shall then be applicable to the Inclusionary Units for that specified
calendar year.
Affordable Housing Costs -2014 Page 1
City of Santa Ana August S, 2014
19H -113
ATTACHMENT F
UTILITIES ALLOWANCES - 2014
Affordable Rental Housing Administrative Procedures
1407003.SNA August B, 2014
19H -114
ATTACHMENT G
ANNUAL TENANT RECERTIFICATION FORM
Affordable Rental Housing Administrative Procedures
1407003 -SNA August 8, 2014
19H -115
ANNUAL TENANT RECERTIFICATION
CITY OF SANTA ANA
AFFORDABLE RENTAL HOUSING PROGRAM
Date:
Tenant Name:
Unit Address:
Dear
In accordance with the requirements imposed by the City of Santa Ana (City) Housing
Opportunity Ordinance, and your lease, the City requires that we review your income and family
composition every year. To complete our review, the Property Owner or Property Manager will
set up a meeting with you to receive the necessary information.
When you attend the meeting with the Property Owner or Property Manager you must bring
documents that verify the income of all the adult members of your household. This information
can include income tax returns, employment verification, wage statements, interest statements,
and /or unemployment compensation statements.
Cooperation with the recertification requirement is a condition of continuing tenancy in an
Inclusionary Unit. You must report the required information to enable the Property Owner to
process the recertification by Month /Day.
Sincerely,
Property Manager / Property Owner
Annual Tenant Recertification Form Page 1
Santa Ana, California August 8, 2014
19H -116
TENANT INCOME VERIFICATION FORM
Head of Household (Print Name):
Address:
Telephone Number: Home: Work: Gall:
Date of Birth: Social Security #:
Household Composition
List All Household Members Living in the Inclusionary Unit
Dependent
— -Name - Sex Age - (YIN) Social Security#
List additional household members on a separate sheet of paper.
Tenant Income Verification Form Page t
Santa Ana, California August 8, 2014
19H -117
TENANT INCOME VERIFICATION FORM
Monthly Grass Income *
List All Sources of Income of All Household Members Living in the Inclusionary Unit
Part 1: Earned Income
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
Tenant Income verification Form Page 2
Santa Ana, California August 8, 2014
19H -118
TENANT 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.
Tenant Income Verification Form Page 3
Santa Ana, California August 8, 2014
19H -119
TENANT INCOME VERIFICATION FORM
"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, ft 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 4
Santa Ana, California August 8, 2614
19H -120
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, ft 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 4
Santa Ana, California August 8, 2614
19H -120
TENANT 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 10%
$
The Greater of #1 or #2 = Investment Income to be Included in Annual Household Income $
Calculation of the Household's Total Annual Income
Total Annual Household Gross Earned Income $
Total Investment Income to be Included in Annual Household income $
Total Household Income $
Attach True Copies of the Relevant Documents Listed Below
recent pay
periods
Employment verification
Income tax return
Social security verification
Alimony /child support verification
Other
Bank/Savings account verification
Self - employment verification
Unemployment verification
Welfare verification
Disability Income verification
Tenant Income Veriflcadon Form Page 5
Santa Ana, Callfornia August S, 2014
19H -121
AFFIDAVIT
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
(I /we) deem reliable and based upon such investigation as (Ilwe) deemed necessary.
(IMe) acknowledge that (]/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.
(]Me) 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 data specified below by each adult member of the household which
intends to occupy an Inclusionary Unit located at Santa Ana, California.
Signature
Printed Name
Executed at
Santa Ana, California
Signature Date
Printed (dame
Executed at
Santa Ana, California
Affidavit - Page 6
Santa Ana, California 19H -122 August 8, 2fi14
ATTACHMENT H
ANNUAL RENTAL HOUSING COMPLIANCE REPORT
Affordable Rental Housing Administrative Procedures
1407003.SNA August 8, 2014
19H -123
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ATTACHMENT
INCLUSIONARY HOUSING FUND
Affordable Rental Housing Administrative Pmosdures
1407003SNA August 8, 2014
19H -125
ATTACHMENT J
IN -LIEU FEE CALCULATION WORKSHEET
Affordable Rental Housing Adminisfmtive Procedures
1407003.SNA August 8, 2014
19H -126