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HomeMy WebLinkAbout520 SOUTH HARBOR- 2016A-2015-178 RECORDING REQUESTED U6 NCV IQ P114cMed'in Official Records, Orange County AND WHEN RECORDED MAIL TO: Hugh Nguyen, Clerk -Recorder CITY OF SANTAI� �� l 111 11 llll 11 111 11 111 llll l l i l 11 N0 FEE City of Santa Ana CLE(. K JF COUN ' R 0 0 0 8 9 2 1 3 3 9$* 20 Civic Center Plaza 2016000543400 2:13 PM 11/02116 Santa Ana, California 92702 37 414 Al2 25 Attention: City Clerk 0.00 0.00 0.00 0.00 72.00 0.00 0.00 0.00 To be recorded without fee. (Space Above This Line For Recorder's Use Only) (Government Code, §§ 6103 and 27383) INCLUSIONARY HOUSING AGREEMENT THIS INCLUSIONARY HOUSING AGREEMENT is dated as of / September 29, 2016, by and between the CITY OF Santa Ana, a charter city and California municipal corporation, and KB Home Coastal, Inc a California limited liability company ("Developer"). V4111 r_1I&I A. The City's Inclusionary Housing Ordinance ("Ordinance") became effective on November 28, 2011. B. The City's Ordinance is being reviewed and updated by the City Council. Developer will be able to choose to comply with the Ordinance as it currently reads, or can choose to comply with the Ordinance as revised. If the in -lieu fee described herein is revised due to changes in the Ordinance, this Agreement and any relevant exhibits can be revised without the requirement of subsequent City Council approval. C. The Developer is the fee owner of the Property located at 520 S. Harbor Boulevard, Santa Ana, California. D. The Developer desires to, at the Developer's sole cost and expense, develop a thirty-five (35) unit Project on the Property. E. On August 4, 2015, the City Council approved Ordinance/Resolution Number 2015-21, which sets forth the City Approvals for the Project. Inclusionary Housing Agreement Page 1 City of Santa Ana February 17, 2015 1603\14\1654522.2 F. On August 4, 2015, the Santa Ana City Council reviewed and approved an Inclusionary Housing Plan that was prepared by the Developer in accordance with the requirements imposed by the Ordinance and the Administrative Procedures Manual established by the City Council to implement the Ordinance requirements. G. Pursuant to Santa Ana Municipal Code section 41-1904(c)(2), any application to pay a fee in lieu of constructing some or all of the required inclusionary units for a project comprised of more than twenty residential units shall be subject to the review and approval of the City Council, which may grant such request if substantial evidence supports a finding that the cost of providing inclusionary units on site would substantially exceed the amount of the applicable in -lieu fee. H. This Inclusionary Housing Agreement, when fully executed by the City and the Developer and recorded, is intended to satisfy the requirement that the Developer enter into an Inclusionary Housing Agreement, as set forth in the Ordinance and the conditions to City Approvals. 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 Developer, the Parties, agree as follows: DEFINITIONS OF TERMS The following words, terms and phrases are used in this Inclusionary Housing Agreement, as follows, unless the particular context of usage of a word, term or phrase requires another interpretation. Administrative Procedures Manual is this administrative procedures manual, 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 the Developer. Affordability Gap is equal to the difference between the Fair Market Value of the Inclusionary Unit and the Affordable Sales Price for the Inclusionary Unit. Inclusionary Housing Agreement Page 2 City of Santa Ana February 17, 2015 1603\14\1654522.2 Affordable Housing Cost means the maximum costs that can be borne by a Low or Moderate Income Household based on the requirements imposed by HSC Section 50052.5. The calculation methodology is described in the Administrative Procedures Manual. 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 must be approved by the City Council prior to the issuance of building permits for the Project. City Council means the City of Santa Ana City Council. City Manager is the City Manager of the City of Santa Ana. 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 1 of this Inclusionary Housing Agreement. Developer means the developer of the residential project that is subject to this Inclusionary Housing Agreement and its successors and assigns. Effective Date means the date on which the Inclusionary Housing Agreement is approved and executed by appropriate authorities of the Developer and the City; and the Inclusionary Housing Agreement is executed by the authorized representatives of the City and delivered to the Developer. Exhibits means the exhibits to this Inclusionary Housing Agreement, which are listed in Article V. Fair Market Value means the value of the Inclusionary Unit under normal circumstances in which the seller and the buyer freely negotiate the terms of the transfer of ownership. The Fair Market Value is estimated based on the assumption that no income or affordability restrictions are placed on the Inclusionary Unit. Inclusionary Housing Agreement Page 3 City of Santa Ana February 17, 2015 1603\14\1654522.2 Gross Income means all income from whatever source from all adult household members for the previous calendar year as 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 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 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: 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, Inclusionary Housing Agreement Page 4 City of Santa Ana February 17, 2015 1603\14\1654522.2 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 (but see subdivision (2)(e)). i. 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 (10%) of the value of all such assets, whichever is greater. For purposes of this section, net households 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 veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes 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; Inclusionary Housing Agreement Page 5 City of Santa Ana February 17, 2015 1603\14\1654522.2 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: i. National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs. 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). HCD means the California Department of Housing and Community Development HUD means the United States Department of Housing and Urban Development. Inclusionary Housing Administrator has the day-to-day authority for making determinations related to the Ordinance and Administrative Procedures Manual. The Inclusionary Housing Administrator will be appointed by the City Manager. Inclusionary Housing Fund means a separate fund of the City established pursuant to the Housing Opportunity Ordinance of the Santa Ana 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 Households. The allowable uses of Inclusionary Housing Funds, and the related reporting are described in the Administrative Procedures Manual. Inclusionary Housing Plan means an in -lieu fee submitted for approval to the Inclusionary Housing Administrator that details the manner in which the Inclusionary Housing obligations will be fulfilled by the project. The Inclusionary Housing Plan form is presented in the Administrative Procedures Manual. Inclusionary Housing Agreement Page 6 City of Santa Ana February 17, 2015 1603\14\1654522.2 In -Lieu Fee refers to a fee that may be paid by a developer in specific circumstances in lieu of providing Inclusionary Units within a project. Orange County 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. The current household income information is presented in Attachment I of the Administrative Procedures Manual. Low Income Household refers to households whose incomes meet the standards defined Title 25 of the California Code of Regulations Section 6932, and by the HSC Section 50079.5. The maximum household income amount for Low Income Households shall be the amount published by HCD as adjusted to reflect the household size of the Homebuyer of the Inclusionary Unit. Market Rate Unit means any unit in the project that is not restricted for ownership and occupancy by Eligible Purchaser. Moderate Income Household refers to households whose income meets the standards defined Title 25 of the California Code of Regulations Section 6932, and by the HSC Section 50093. The maximum household income amount for Moderate Income Households shall be the amount published by HCD as adjusted to reflect the household size of the Homebuyer of the Inclusionary Unit. Ordinance means the Housing Opportunity Ordinance adopted by the City Council on November 28, 2011 as it has been amended from time to time, which is codified in the Santa Ana Municipal Code. Party and Parties mean the City and the Developer as parties to this Inclusionary Housing Agreement. Project means the housing project proposed to be developed on the Property at the Developer'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 A to this Inclusionary Housing Agreement. ARTICLE 1 Inclusionary Housing Agreement Page 7 City of Santa Ana February 17, 2015 1603\14\1654522.2 PARTIES; REPRESENTATIONS AND WARRANTIES; EFFECTIVE DATE; RECITALS; AND EXHIBITS Parties to the Inclusionary Housing Agreement -A. City. The City is a charter city and California municipal corporation. The address of the City, for the purposes of this Inclusionary Housing Agreement, is: City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92702 Attention: Executive Director, Community Development Agency 1-13. Developer. The Developer is a California limited liability company. The principal office and address of the Developer, for the purposes of this Inclusionary Housing Agreement, is: KB Home Coastal, Inc 36310 Inland Valley Dr., Ste. 100 Wildomar. CA 92095 Attn: Frank Chen, Dir. Forward Planning II. Developer Representations And Warranties The representations and warranties of the Developer contained in Article 1 — Section II shall be based upon the actual knowledge of the Developer as of the Effective Date, and are true and correct as of the Effective Date. The Developer'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 the Inclusionary Housing Agreement. The Developer hereby makes the following representations, covenants and warranties, and Developer acknowledges that the execution of this Inclusionary Inclusionary Housing Agreement Page 8 City of Santa Ana February 17, 2015 1603\14\1654522.2 Housing Agreement by the City has been made in material reliance by the City on such covenants, representations and warranties: II -A. The Developer is a California limited liability company, lawfully entitled to do business in the State of California and the City. The Developer 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 Developer hereby represent and warrant that such persons have the power, right and authority to bind the Developer. II -B. The Developer has taken all requisite action and obtained all requisite consents in connection with entering into this Inclusionary Housing Agreement and the instruments and documents referenced herein and the consummation of the transactions contemplated hereby, and no consent of any other party is required for the Developer's authorization to enter into this Inclusionary Housing Agreement. II -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 Developer is a party or by which the Developer may be bound, or under any law, statute, ordinance, governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to the Developer or to the Property. II -D. This Inclusionary Housing Agreement is, and all agreements, instruments and documents to be executed by the Developer pursuant to this Inclusionary Housing Agreement shall be duly executed by and are or shall be valid and legally binding upon the Developer and enforceable in accordance with their respective terms. III. Effective Date This Inclusionary Housing Agreement is dated September 29, 2016 for reference purposes only. This Inclusionary Housing Agreement shall not go into effect before the Effective Date. Inclusionary Housing Agreement Page 9 City of Santa Ana February 17, 2015 1603\14\1654522.2 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 A Legal Description of Property Exhibit B Site Map Depicting Property and Zoning Designations Exhibit C Calculations of In -Lieu Fee (Inclusionary Housing Plan) ARTICLE 2 INCLUSIONARY HOUSING COVENANTS VI. Developer Compliance with the Ordinance The Developer acknowledges that the City has provided the Developer with copies of the Ordinance and the Administrative Procedures Manual. The Developer is familiar with the requirements of all the foregoing documents and shall ensure that the Project complies with this Inclusionary Housing Agreement and the requirements set forth in all the foregoing documents. VII. In -Lieu Fee On August 4, 2015, the Santa Ana City Council approved Developer's application to pay a fee in lieu of constructing all of the required inclusionary units, based on substantial evidence supporting a finding that the cost of providing inclusionary units on site would substantially exceed the amount of the applicable in -lieu fee. Accordingly, in lieu of providing any Inclusionary Unit specified in the Inclusionary Housing Plan, the Developer shall pay to the City of Santa Ana the sum of Inclusionary Housing Agreement Page 10 City of Santa Ana February 17, 2015 1603\14\1654522.2 $484,575.00 prior to obtaining the first building permit related to the Project. The final amount of the in -lieu fee is subject to change and will be based upon calculations completed at the time of payment, which must be completed before the issuance of any building permits for the Project. ARTICLE 3 DEFAULTS AND REMEDIES VIII. 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 and is promptly completed within a reasonable time, not to exceed ninety (90) calendar days), the defaulting Party shall be in Default of the terms of the 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 Housing Agreement. IX. Legal Actions 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. IX -A. The laws of the State of California shall govern the interpretation and enforcement of this Inclusionary Housing Agreement. IX -13. In the event that any legal action is commenced by the Developer against the City, service of process on the City shall be made by personal service Inclusionary Housing Agreement Page 11 City of Santa Ana February 17, 2015 1603\14\1654522.2 upon the City Manager, or in such other manner as may be provided by law. IX -C. In the event that any legal action is commenced by the City against the Developer, service of process shall be made by personal service on the Developer'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 without the State of California. X. 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. ARTICLE 4 GENERAL PROVISIONS XI. 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 Developer, 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. Inclusionary Housing Agreement Page 12 City of Santa Ana February 17, 2015 1603\14\1654522.2 XII. 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. XIII. Nonliability 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 Developer, 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 Developer or to its successors or assignees, or on any obligations arising under this Inclusionary Housing Agreement. XIV. Indemnification The Developer agrees to indemnify and hold the City, and its officers, employees and agents, harmless from and against all damages, judgments, costs, expenses and fees arising from or related to any act or omission of the Developer in performing its obligations hereunder. The City agrees to indemnify and hold the Developer and its officers, employees and agents, harmless from and against all damages, judgments, costs expenses and fees arising from or related to any act or omission of the City in performing its obligations hereunder. G����f7�JFfIR�i 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. XVI. 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 Inclusionary Housing Agreement Page 13 City of Santa Ana February 17, 2015 1603\14\1654522.2 Orange County, California. Each Party hereto irrevocably consents to the personal jurisdiction of that court. The City and the Developer 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: A. Any diversity of citizenship between the City and the Developer; or B. The fact that the City is a party to such action or proceeding; or C. That a federal question or federal right is involved or alleged to be involved. Without limiting the generality of the foregoing, the Developer and the City specifically waive any rights provided to it pursuant to California Code of Civil Procedure 394. The Developer acknowledges that the provisions of this Article 4 — Section XVI 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. XVII. Inspection of Books and Records To enforce its rights under this Inclusionary Housing Agreement, the City shall have the right at all reasonable times, at the City's cost and expense, to inspect the books and records of the Developer pertaining to 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. XVIII. 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. The Developer may assign this Inclusionary Housing Agreement without the City's consent. XIX. No Third Party Beneficiaries The performance of the City's and the Developer's respective obligations under this Inclusionary Housing Agreement are not intended to benefit any party other than the City or the Developer, except as expressly provided otherwise herein. Inclusionary Housing Agreement Page 14 City of Santa Ana February 17, 2015 1603\14\1654522.2 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-performance under this Inclusionary Housing Agreement, except as expressly provided otherwise herein. XX. 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 to all or any portion of the Property and the Project thereof. XXI. Recordation The Developer and the City agree to permit recordation of this Inclusionary Housing Agreement, or a memorandum of this Inclusionary Housing Agreement, against the Property in the Office of the County Recorder of Orange County, California. XXII. Termination This Inclusionary Housing Agreement shall be effective until all of the following have been completed: Payment has been received and funds deposited in accordance with Article 2, Section VII of this Inclusionary Housing Agreement. IN WITNESS WHEREOF, the Parties hereto have duly executed this Inclusionary Housing Agreement as of the dates set forth below. [Signatures on Following Pages] Inclusionary Housing Agreement Page 15 City of Santa Ana February 17, 2015 1603\14\1654522.2 SIGNATURE PAGE TO INCLUSIONARY HOUSING AGREEMENT ATTEST: MARIA D. HUIZAR Clerk of the Council RECOMMEND APPROVAL: ROBERT C. CORTEZ Deputy City Manager City Manager's Office APPROVED AS TO LEGAL FORM: SONIA R. CARVALHO City Attorney 2 Assistant City Attorney CITY: CITY OF SANTA ANA A California Municipal Corporation By: City Manager Date: f© 1191lu Inclusionary Housing Agreement Page 16 City of Santa Ana February 17, 2015 1603\14\1654522.2 .ALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE ,mS.m•.m�•.m•. mCm .mom ,m .� � ..mS/' a -mom., m¢ m.. aL � s M m¢ m .m mt/s� .m A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County off 0([OVA 4C, ) f On Oclbelr I (Ca before me, jbSW Fi. �bVP,Si I�DiZIU�vm� c_ DateHere Insert Name and Title of the Officer personally appeared bay,A ak]'1Z.bs Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the persortw whose namew ismm subscribed to the within instrument and acknowledged to me that he/skeAhay executed the same in his/treWtheir authorized capacity(ieah, and that by his/herfthefr signature(Won the instrument the persono,, or the entity upon behalf of which the person(s'acted, executed the instrument. ------------------ ROSA A.FLORES Commission # 2057129 z Z! s Notary Public . California Z Orange County My Comm. Expires Feb 7, 2018 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 Q"'A' a, AW-* Signature of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Number of Pages: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Inclusionary Housing Agreement Page 17 City of Santa Ana February 17, 2015 1603\14\1654522.2 SIGNATURE PAGE TO INCLUSIONARY HOUSING AGREEMENT DEVELOPER: KB Home Coastal, Inc, a California limited liability company By: Frank 6hen Director of Forward Planning Date: Z'c;7 �16 Inclusionary Housing Agreement Page 18 City of Santa Ana February 17, 2015 1603\14\1654522.2 ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this Certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of _ I SS. OnQCT® et,2a&, before me, _ Notary Public, DATE personally appearedN 6A% who proved to me on the basis of satisfactory evidence to be the person() whose name(j) is/ire subscribed to the within instrument and acknowledged to me that he/ght4hey executed the same in his/laenkhcir authorized capacity(irv�, and that by his/heik4,,eir signatuureV) on the 'instrument the ................» D. J. LEE Commission No.2116926 o NOTARY PUF3LIGCALIFORNIA t`+ ORANGE COUNTY My Comm. Expires JULY 10, 2019 Pei -soil ( ), or the entity upon behalf of which the person( acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. PLACE: NOTARY SEAL IN ABOVE SPACE _ NOT R SSIGNATUL-� OPTIONAL INFORMATION The information below is optional. However, it may prove valuable and could prevent fraudulent attachment of this form to an unauthorized document. CAPACITY CLAIMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL. CORPORAFE OFFICER PARTNER(S) ATTORNEY-IN-FACT GUARDIAN/CONSERVATOR SUBSCRIBING WITNESS OTHER: SIGNER (PRINCIPAL) IS REPRESENTING: NAME OF PERSONS) OR ENTITY(IES) --__—. TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT RIGHT THUMBPRINT OF SIGNER a a E a APA01/2015 NOTARY BONDS, SUPPLIES AND PORMSAT IITTP.,/WWW.VALLEY-SIERRA COM , 2005-2015VALLEY-SIEUZAINSURANCE EXHIBIT A LEGAL DESCRIPTION OF PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE NORTH 165.00 FEET OF THE EAST HALF OF THE SOUTH 20 ACRES OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA. SAID LAND IS SHOWN ON RECORD OF SURVEY NO. 2014-1118, AS PER MAP FILED IN BOOK 274, PAGE 41 OF RECORD OF SURVEYS. APN: 188-071-05 Inclusionary Housing Agreement City of Santa Ana April 11, 2015 1603\14\1654522.2 EXHIBIT B Inclusionary Housing Agreement City of Santa Ana April 11, 2015 1603\14\1654522.2 SITE MAP DEPICTING PROPERTY A gS�p ,q 3 a i'sda Ela v "s i agEa � oo ud � I € HA KI AA?y4 E�4 P %Y p K@Sa p 6 1 ps� pk i `gaAA 94S S { S5 E E g3S h�§$ I �Et6$1 s'E g�t g' 13g% F 3tgI I gip, I� _�_Igqg£g�38 ��A@� �¢k Jia E§ R a �RqSA j�,p6g°yiy ,9Q9lm; E� E � i9"h q S aat:e8s��$4�i��da��9£P@ �i39P1 � �e@�EEa�l B� e a � ¢p H1a d1 r I� a gra �3 4 gVia p� 1�„s � D gpphi �vN1 1Kknin ppp u $$�kS��� IESk 389 R@SYS $i3i3 i 3 3 E 4 E Inclusionary Housing Agreement City of Santa Ana April 11, 2015 1603\14\1654522.2 EXHIBIT C CALCULATIONS OF IN -LIEU FEE Inclusionary Housing Agreement City of Santa Ana April 11, 2015 1603\14\1654522.2 (INCLUSIONARY HOUSING PLAN) IN -LIEU FE2 CALCULATION OWNERSHIP PROJECTS -1S%MODERATE INCOME INCLUSIONARY REQUIREMENT SANTA ANA CALIFORNIA. h 9 r Oct Oesrri to A. Project Name R. Projeat Address Il, On.,$Iusluclualaman, Requirement A. Required NulnbertfirchuSionery Unks Total Prompt units Inclusionary Requlremant as%o{Total Units Total lnciusionaN Requirement(Round-fop( a. adWelonary Unit Dktribugdn Two-bedroom Units Throe -bedroom UR14 Four-badraam Unle, Totals Total Building Area (Square Peet) 520 S. Harbor 5209. Harbor Required R of Tatalprojad InalUslarrary Unfts %afTatal Units° Uneas 8 $1.43% 9 17 48.57% 3 35 100.00% 6 64.307 Par Total Unit Per Income lamulctnd Unit The call must add up to 100%. ° Multiply the% of Total Units times the Total lawrWore ry Requirema ne a equal to the lesser Of the defined Affordable Sales Price or 2030 less than the pro] acted Market Price. a The Total in -Lieu Fee is equal to the Total Affordability Gap. $15,800 $92,300 2G S Harbor: Inclusionary Unit Requirement: 35 units x IS% = 5,25 units In -Lieu Fee Calculation based on fractional Units: $9i,8@6 x 5,25 units - $484,57$ Inclusionary Housing Agreement City of Santa Ana April 11, 2015 1603\14\1654522.2 ROOPlated Pact, Moderate Affordability Gap/ III. Affordabilltu&gn t Unie Calculation Market Peak, Incotnos Unit TV14-CUrNat Units $0 $0 $0 Thrae,badmam Ures $462,Soo W(LOOO Msoo Poonlwdmom Units $40,0D9 Saldhox $92,000 Affndatudiy Incluelanary Total AffordablIny IV,H� arQebjlRv Uan Cn€nrlatlDe Clap/Unit Units Terelsedraam Unl4 $D $0 Throe -bedroom Units $92,500 3 $277,500 Four-badumed Units $92,000 3 $276,000 Total Affordability Gap 553,500 Par Total Unit Per Income lamulctnd Unit The call must add up to 100%. ° Multiply the% of Total Units times the Total lawrWore ry Requirema ne a equal to the lesser Of the defined Affordable Sales Price or 2030 less than the pro] acted Market Price. a The Total in -Lieu Fee is equal to the Total Affordability Gap. $15,800 $92,300 2G S Harbor: Inclusionary Unit Requirement: 35 units x IS% = 5,25 units In -Lieu Fee Calculation based on fractional Units: $9i,8@6 x 5,25 units - $484,57$ Inclusionary Housing Agreement City of Santa Ana April 11, 2015 1603\14\1654522.2