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HomeMy WebLinkAboutC-10096-1 - Affordable Housing Agreement (Placentia Avenue Apartments at 1526 Placentia Avenue)AFFORDABLE HOUSING AGREEMENT (Placentia Avenue Apartments at 1526 Placentia Avenue) WK-11M17- :11ViTl4:40i9:14 City of Newport Beach, a California municipal corporation and James John Cefalia and Cathy Lynn Cefalia, Trustees of the Cefalia Family Trust and Jeffrey Cefalia AFFORDABLE HOUSING AGREEMENT (Placencia Avenue Apartments at 1526 Placentia Avenue) This AFFORDABLE HOUSING AGREEMENT ("Agreement") is dated as of February 25, 2026 ("Effective Date"), and is entered into between the CITY OF NEWPORT BEACH, a California municipal corporation ("City"), and James John Cefalia and Cathy Lynn Cefalia, Trustees of the Cefalia Family Trust, Originally Established on May 20, 1986, as to an undivided 50.0000% interest and Jeffrey Cefalia, a Married Man, as his sole and separate property, as to an undivided 50.0000% interest, all as Tenants in Common ("Developer"). City and Developer may be referred to herein as "Party" or "Parties". City and Developer enter into this Agreement with reference to the following recitals of fact (each, a "Recital"): RECITALS A. Developer is the owner of that certain real property consisting of approximately 0.37 acres located in the Multiple Residential Zoning District (RM) in the City of Newport Beach, County of Orange, State of California, addressed as 1526 Placentia Avenue, Newport Beach, CA 92663 [APN 424-161-08], as more particularly depicted in Exhibit "A" attached to this Agreement and incorporated herein ("Property"). B. On January 16, 2025, the Zoning Administrator approved the Placentia Avenue Apartments (PA2023-0053) for the development of eleven (11) apartment units, atop a 24-space parking structure, as depicted on Exhibit "B" attached to this Agreement and incorporated herein ("Project"). C. Project approval included the adoption of an Affordable Housing Implementation Plan No. PA2023-0053, dated October 8, 2024 ("AHIP"), which implements affordable housing requirements for the Project pursuant to a density bonus and incentives/concessions pursuant to Chapter 20.32 (Density Bonus) of the Newport Beach Municipal Code ("NBMC") and California Government Code Section 65915 ("State Density Bonus Law"). The AHIP is attached hereto and incorporated herein by reference as Exhibit "C." D. Pursuant to the State Density Bonus Law and the City's density bonus requirements, the City granted a maximum density bonus of 46.25 % above the maximum number of units allowed by the City's General Plan and Title 20 (Planning and Zoning) in exchange for construction of a minimum number of affordable housing units. With the approved maximum density bonus of 46.25%, the Project is eligible for four (4) additional units above the seven (7) base units ("Base Units") for a total of 11 dwelling units. E. The Multiple Residential Zoning District (RM) Development Standards ("Development Standards") provide for a maximum residential density of eighteen (18) dwelling units per acre. The Project is planned to consist of seven (7) total dwelling units based on the current maximum residential density per the 1526 Placentia Avenue Affordable Housing Agreement Page 2 of 18 Development Standards ("Base Units") and four (4) density bonus units. The Development Standards require that fourteen percent (14%) of the Base Units within a residential development shall be affordable to Very -Low -Income Households. The affordable housing requirement for this project is one (1) unit ("Affordable Dwelling Unit") (14% of 7 Base Units). F. The one (1) Affordable Dwelling Unit provided by the Developer, will be made available to Very -Low -Income Households ("Required Density Bonus Lower Income Units"), which complies with the provisions of California Government Code Section 65915 and NBMC Section 20.32 applicable to a 46.25% density bonus. Rents for the Required Density Bonus Very Low Income Unit will be computed in accordance with California Health and Safety Code Section 50053, as required by California Government Code Section 65915(c)(1) and Section 20.32.160 of the NBMC. G. Developer intends to operate the Project as a rental community. The one (1) Required Density Bonus Very -Low Income Unit will remain rent restricted for a minimum of fifty-five (55) years, per California Government Code Section 65915(c)(1). H. Section 20.32.160 of the NBMC requires that an applicant who seeks a density bonus enter into an affordable housing agreement with the City. The AHIP also requires that the applicant enter into an affordable housing agreement in recordable form prior to obtaining the first building permit for any residential unit and which ensures that the maximum rents for the affordable units will be calculated using the methodologies set forth in the AHIP. The Parties intend for the Declaration of Affordable Housing Covenants, Conditions, and Restrictions, substantially in the form as Exhibit "D" attached to this Agreement and incorporated herein ("Declaration"), to satisfy the requirement for a recorded affordable housing agreement. NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION AND THE PROMISES AND COVENANTS OF CITY AND DEVELOPER SET FORTH IN THIS AGREEMENT, CITY AND DEVELOPER AGREE, AS FOLLOWS: TERMS AND CONDITIONS 1. DEFINITIONS Definitions. Unless terms are otherwise defined under different sections of this Agreement, the following words, terms and phrases are used in this Agreement with the following meanings: 1.1 Adjusted for Household Size Appropriate for the Unit. The number of bedrooms in an Affordable Dwelling Unit appropriate to a household size used to determine the maximum Affordable Rental Price for each unit size. The number of persons appropriate to a unit size shall mean household of one (1) person in the case of 1526 Placentia Avenue Affordable Housing Agreement Page 3 of 18 a studio unit, two (2) persons in the case of a one -bedroom unit, and three (3) persons in the case of a two -bedroom unit. 1.2 Affordability Period. The period of time under which the Affordable Dwelling Unit is subject to affordable housing restrictions, including an Affordable Rental Price. This period of time will commence on the date the final certificate of occupancy is issued for the last unit constructed in the applicable Phase providing such Affordable Dwelling Unit and shall be a minimum of fifty-five (55) years for the one (1) Affordable Dwelling Unit. Commencement of the Affordability Period shall be memorialized in writing pursuant to the Notice of Affordability Restrictions as set forth in the Declaration. 1.3 Affordable Dwelling Unit(s). The one (1) affordable unit designated for very low-income households within the Project that is required pursuant to density bonus laws, project entitlements and subject to affordable housing restrictions. 1.4 Affordable Rental Price. The maximum rent that, when added to the utility allowance, does not exceed thirty percent (30%) times fifty percent (50%) of the Orange County area median income as determined annually by the California Department of Housing and Community Development, Adjusted for Household Size Appropriate for the Unit. 1.5 Area Median Income. The area median income for Orange County as published annually by the California Department of Housing and Community Development and determined in accordance with the U.S. Department of Housing and Urban Development ("HUD") criteria then in effect and published from time to time. For purposes of this Agreement, the qualifying limits shall be those limits for the County, as set forth in Title 25, California Code of Regulations, section 6932, as may be amended, modified or recodified from time to time ("Qualifying Households"). 1.6 Declaration of Affordable Housing Covenants, Conditions and Restrictions ("Declaration"). That certain Declaration of Affordable Housing Covenants, Conditions and Restrictions to be entered into by and between City and Developer, referencing the applicable Affordability Period and other affordability requirements for the Affordable Dwelling Unit, substantially in the form of Exhibit "D." The Declaration shall be recorded with the Orange County Clerk Recorder's Office following issuance of the certificate of occupancy for the final Affordable Dwelling Unit of each applicable Phase. 1.7 Very Low Income Households. As defined in California Health and Safety Code Section 50105, households earning fifty percent (50%) or less of area median income, adjusted for family size. 2. CONSTRUCTION OF AFFORDABLE DWELLING UNIT 2.1 Construction of Affordable Dwelling Unit. The Project will be developed in compliance with a construction schedule as approved in writing by City prior to any commencement of construction of the Affordable Dwelling Unit ("Construction Schedule") which may include phases in a scope, development proportion and interval as may be 1526 Placentia Avenue Affordable Housing Agreement Page 4 of 18 required by Developer to timely complete construction of the Project (hereinafter, "Phase" or "Phases"). 2.2 Costs and Quality of Construction. All costs for acquiring the Property, planning, designing and constructing the Project shall be borne exclusively by Developer. The Affordable Dwelling Unit shall meet HUD Section 8 Housing Quality Standards, local and state housing and building codes, and shall be free and clear of lead -based paint hazards. Developer shall maintain, at Developer's sole cost and expense, the Affordable Dwelling Unit in good condition, good repair and in decent, safe, sanitary and habitable living conditions during the term of this Agreement. 2.3 Affordable Dwelling Unit Number, Size and Location. 2.3.1 Unit Location. The Affordable Dwelling Unit shall be dispersed throughout the Project. 2.3.2 Unit Bedrooms and Size. Developer proposes to include the following unit types and quantities within the Project: Unit Type Total Units Total Affordable Units 2 Bedroom 7 1 3 Bedroom 4 0 Total 11 1 Notwithstanding the foregoing, Developer shall not make any changes or modifications to unit size and bedroom breakdown without prior written approval by the City. 2.4 No Joint Venture. City and Developer are not entering into a joint venture. Nothing in this Agreement shall be deemed to constitute approval for Developer or any of Developer's employees or agents, to be the agents or employees of City. 3. TAXES AND ASSESSMENTS Developer, and any approved successor, shall pay prior to delinquency all real estate taxes and assessments on the Property so long as Developer or its approved successor retains any ownership interest therein. Developer shall remove or have removed any levy or attachment made on the Property or any part thereof, or assure the satisfaction thereof within a reasonable time but in any event prior to any sale or transfer of all or any portions thereof. Notwithstanding the above, Developer shall have the right to contest the validity or amounts of any tax, assessment, or encumbrance available to Developer in respect thereto, and nothing herein shall limit the remedies available to Developer in respect thereto. 1526 Placentia Avenue Affordable Housing Agreement Page 5 of 18 4. COVENANTS 4.1 Income Restriction. The Affordable Dwelling Unit shall be restricted to occupancy by Very Low Income Households at an Affordable Rental Price, as further set forth in the AHIP Amendment. Notwithstanding the foregoing, households with less income than the Very Low Income Households may also occupy the Affordable Dwelling Unit. 4.2 Residential Use. Without the City's prior written consent, which consent may be given or withheld in its sole and absolute discretion, the Affordable Dwelling Unit in the Project shall not, at any time, be utilized on a transient basis or will ever be used as a hotel, motel, dormitory, fraternity house, sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park, nor shall the Affordable Dwelling Unit be used as a place of business except as may otherwise be allowed by applicable law. 4.3 Term. The applicable parcel(s) of the Property with Affordable Dwelling Unit shall be bound for: (1) a minimum of fifty-five (55) years for the one (1) Affordable Dwelling Unit, commencing upon the issuance of the certificate of occupancy for the last unit constructed in the applicable Phase providing such Affordable Dwelling Unit. For illustration purposes only, if one (1) Phase contains two (2) Affordable Dwelling Units, the term for the two (2) Affordable Dwelling Units will commence upon issuance of the certificate of occupancy for the second unit, and the term for Affordable Dwelling Units constructed on a separate Phase may be subject to a different term, based upon issuance of the certificate of occupancy for such separate Phase. 4.4 No Subordination. Developer agrees that any encumbrance to the Property, or part of the Property, or any improvements on the Property which contains the Affordable Dwelling Unit, with any conventional mortgage, construction, bond financing or security interest to secure financing with respect to the construction, development, use, or operation of the Project, shall be subordinate to this Agreement and the Declaration. 4.5 Covenants Recorded Against The Property. 4.5.1 All of the covenants and restrictions set forth herein shall be equitable servitudes and covenants running with the land pursuant to applicable law, including, without limitation, California Civil Code Section 1468. Each covenant to do or refrain from doing some act on or affecting the Project is for the benefit of the Property. Each covenant shall run with the Project, and any portion thereof, as applicable, and shall benefit or be binding upon each successive owner during its ownership of the Property. The covenants herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of all the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. 4.5.2 Recordation. The Declaration shall only be recorded on parcels containing the Affordable Dwelling Unit. 4.6 Termination. Upon expiration of the final Affordability Period, Developer and City shall execute and record necessary document(s) to terminate this Agreement and 1526 Placentia Avenue Affordable Housing Agreement Page 6 of 18 remove the effect of the recorded Declaration from the Property. The document(s) shall be provided by Developer and subject to verification and approval by the City Attorney. 5. QUALIFYING PROSPECTIVE HOUSEHOLDS 5.1 Notice. At least thirty (30) days prior to offering the Affordable Dwelling Unit for lease or rent to the general public, Developer shall provide City with notice of its intent to lease the Affordable Dwelling Unit, specifying the proposed Affordable Rental Price and proposed location of such Affordable Dwelling Unit. 5.2 Initial Qualification. Developer shall determine if prospective occupants of the Affordable Dwelling Unit qualify as Qualifying Households under this Agreement. Developer shall require each prospective occupant of an Affordable Dwelling Unit provide documentation supporting and certifying that the income of the occupants does not exceed the qualifying income limits ("Tenant Income Documentation"), and Developer may rely upon such certification and supporting documentation in qualifying the prospective occupant. A list of required Tenant Income Documentation supporting income qualification is set forth in Exhibit "E" attached hereto and incorporated herein. 5.3 Recertification of Qualification. Developer shall annually determine if occupants of the Affordable Dwelling Unit continue to qualify as Qualifying Households under this Agreement. Developer shall require each occupant of an Affordable Dwelling Unit provide Tenant Income Documentation supporting and recertifying that the income of the occupants does not exceed the qualifying income limits, and Developer may rely upon such certification and supporting documentation supporting in qualifying the occupant. 5.4 Records. Developer shall make available at Developer's office copies of documents and information, including Tenant Income Documentation (collectively, "Records") upon which Developer relied upon to certify or recertify each occupant within a reasonable time after so qualifying or requalifying that occupant. Such Records shall be made available to City during Developer's normal business hours Monday through Friday, excluding Federal and State recognized holidays, between the hours of 9:00 a.m. and 5:00 p.m. Pacific Time. 5.5 Reliance on Tenant Representations. Each tenant lease shall contain a provision to the effect that Developer has relied on the income certification and supporting information supplied by the tenant in determining qualification for occupancy of the Affordable Dwelling Unit, and that any material misstatement in such certification (whether or not intentional) will be cause for immediate termination of such lease. 5.6 Annual Report. Developer shall provide to City such information as is reasonably requested by City or its agents in connection with City's annual monitoring of the Affordable Dwelling Unit within ten (10) calendar days of the request and the information shall be verified in writing by Developer under penalty of perjury. For each Affordable Dwelling Unit, such information shall include, at a minimum, the documents 1526 Placentia Avenue Affordable Housing Agreement Page 7 of 18 listed in Exhibit "F" ("Annual Report") as attached hereto and incorporated herein by reference. 6. ASSIGNMENT 6.1 Change in Ownership, Management and Control of Developer and Transfer of the Project. Developer shall have the right to assign this Agreement, including all benefits, covenants, duties and obligations contained herein, upon the City's prior written approval, which shall not be unreasonably withheld. A voluntary or involuntary sale or transfer of a controlling interest in the Developer or the Property during the term of this Agreement shall be deemed to constitute an assignment or transfer for the purposes of this Section 6.1, and the written approval by City shall be required prior to effecting such an assignment or transfer. Developer shall provide City with evidence reasonably satisfactory to City that the: (a) proposed transferee has financial strength and experience comparable to Developer; (b) the use of the Property by the proposed transferee is consistent with the terms of the Agreement; and (c) Developer is not then in default of this Agreement. Any purported transfer, voluntarily or by operation of law, except with the prior written consent by City, shall render this Agreement absolutely null and void and shall confer no rights whatsoever upon any purported assignee or transferee. During the term of this Agreement, Developer shall not, except as permitted by this Agreement, assign or attempt to assign this Agreement or any rights or duties herein, nor make any total or partial sale, transfer, conveyance, or assignment of the whole or any part of the Property or any of the improvements thereon, without the prior written approval by City. 6.2 Notwithstanding any other provision of this Agreement to the contrary, City approval of an assignment of this Agreement or transfer of the Project, or any interest therein, shall not be required in connection with: (a) the conveyance or dedication of any portion of the Property to City, or other appropriate governmental agency, including public utilities, where the granting of such conveyance or easement permits or facilitates the development of the Project on the Property; (b) the transfer of all or any part of the Project or Property to an entity owned and controlled by Developer or the principals of Developer, including, without limitation, transfer to a limited partnership in which Developer, or an affiliate of Developer, is a general partner; (c) any mortgage, deed of trust, sale and leaseback, or other form of conveyance required for any reasonable method of financing or refinancing the development of the Project on the Property, including all direct and indirect costs related thereto; (d) transfers resulting from the death or mental or physical incapacity of an individual; (e) transfers in trust for the benefit of a spouse, children, grandchildren, or other family member, or for charitable purposes; or (f) transfers of less than controlling interest shares of stock in a publicly -held corporation or of the beneficial interest in any publicly -held partnership or real estate investment trust. 6.3 Notwithstanding anything in this Section 6 to the contrary, any transfer or assignment by Developer or any successor in interest to Developer not requiring the approval by City shall be effective when made but shall not be deemed to relieve Developer or any successor party from its obligations under this Agreement unless and until the transferor and transferee execute and deliver to City an assignment and assumption agreement. Any transfer or assignment by Developer or any successor in 1526 Placentia Avenue Affordable Housing Agreement Page 8 of 18 interest to Developer requiring the approval by City pursuant to this Section 6 shall be effective and shall be deemed to relieve Developer or any successor party from its obligations under this Agreement only upon execution and delivery to City by the transferor and transferee of an assignment and assumption agreement in a form and with content reasonably acceptable to City, and upon execution of an acknowledgment of same by City. 6.4 Developer, in exchange for the City entering into this Agreement, hereby agrees to hold, sell, and convey the Property subject to the terms of this Agreement. Developer also grants to the City the right and power to enforce the terms of this Agreement against the Developer and all persons having any right, title or interest in the Property or any part thereof, their heirs, successive owners and assigns. 6.5 This Section 6 shall not be applicable to the leasing of an individual Affordable Dwelling Unit to eligible tenants in accordance with this Agreement, and no assignment and assumption agreement shall be required in connection therewith. 6.6 Each covenant of this Agreement shall run with the Property, and any portion thereof, as applicable, and shall benefit or be binding upon each successive owner during its ownership of the Property. The covenants herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of all the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. 7. COMPLIANCE WITH LAWS; INDEMNITY; ENVIRONMENTAL MATTERS 7.1 Compliance With Laws. Developer shall comply with: (i) all ordinances, regulations and standards of the City, any regional governmental entity, the State of California, and the federal government applicable to the Project; (ii) all rules and regulations of any assessment district of the City with jurisdiction over the Project; and (iii) all applicable labor standards of California law and federal law; and (iv) the requirements of California law and federal law with respect to the employment of undocumented workers or illegal aliens. 7.2 Indemnity. 7.2.1 Developer shall indemnify, defend, and hold harmless City and the City, in its own capacity, and all of the City's officers, officials, members, employees, agents, and representatives (collectively, the "Indemnified Parties") from and against all suits, claims, liabilities, losses, damages, penalties, obligations, and expenses (including but not limited to attorneys' fees and costs) (collectively, a "Claim") that may arise, directly or indirectly, from the acts, omissions, or operations of Developer or Developer's agents, contractors, subcontractors, agents, or employees in the course of development of the Project or any other activities of Developer relating to the Property or pursuant to this Agreement. City shall have the right, in its sole discretion, to select and retain counsel to defend any Claim filed against Indemnified Parties, and Developer shall pay the reasonable cost for defense of any Claim. In the event City, or Developer recovers any 1526 Placentia Avenue Affordable Housing Agreement Page 9 of 18 attorneys' fees, expert witness fees, costs, interest, or other amounts from the party or parties asserting the Claim, Developer shall be entitled to retain the same (provided it has fully performed its indemnity obligations hereunder). 7.2.2 Third Party Litigation. In addition to its indemnity obligations set forth in Section 7.2.1, Developer shall indemnify, defend, and hold harmless Indemnified Parties from and against any Claim against Indemnified Parties seeking to attack, set aside, void, or annul the approval of this Agreement, any of the development regulations or standards for the Project (including without limitation any actions taken pursuant to CEQA with respect thereto), any subsequent development approval, or the approval of any permit granted pursuant to this Agreement. Said indemnity obligation shall include payment of attorney's fees, expert witness fees, City staff costs, and court costs. City shall be entitled to retain separate counsel to represent City against the Claim and the City's defense costs for its separate counsel shall be included in Developer's indemnity obligation. In the event City, or Developer recovers any attorney's fees, expert witness fees, costs, interest, or other amounts from the party or parties asserting the Claim, Developer shall be entitled to retain the same (provided it has fully performed its indemnity obligations hereunder). 7.2.3 In addition to the Developer's obligations set forth above, Developer shall save, protect, defend, indemnify and hold harmless Indemnified Parties from and against any and all Claims which may now or in the future be incurred or suffered by any of the Indemnified Parties by reason of, resulting from, in connection with, or existing in any manner whatsoever as a direct or indirect result of (i) Developer's placement on or under the Project of any Hazardous Materials or Hazardous Materials Contamination, (ii) the escape, seepage, leakage, spillage, discharge, emission or release from the Project occurring on or after the Effective Date of any Hazardous Materials or Hazardous Materials Contamination, or (iii) any Liabilities incurred under any Governmental Requirements relating to the acts described in the foregoing clauses (i) and (ii). For the purposes of this Agreement, unless the context otherwise specifies or requires, the following terms shall have the meanings herein specified: The term "Hazardous Materials" shall mean (i) any substance, product, waste or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. ("CERLCA"); the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101, et seq.; the Resource Conversation and Recovery Act, 42 U.S.C. Section 6901 et seq. "RCRA"); the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Clean Water Act, 33 U.S.C. Section 1251 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the Carpenter -Presley -Tanner Hazardous Substance Account Act, Health and Safety Code Sections 78000 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Sections 25249.5 et seq.; California Health and Safety Code Sections 25280 et seq. (Underground Storage of Hazardous Substances); the California Hazardous Waste of Concern and Public Safety Act, Health 1526 Placentia Avenue Affordable Housing Agreement Page 10 of 18 and Safety Code Sections 25169.5 et seq.; California Health and Safety Code Sections 25501 et seq. (Hazardous Materials Response Plans and Inventory); or the Porter - Cologne Water Quality Control Act, Water Code Sections 13000 et seq., all as they, from time -to -time may be amended or re -codified, (the above -cited statutes are here collectively referred to as the "Hazardous Substances Laws") or any other Federal, State or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect; (ii) any substance, product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory, including but not limited to negligence, trespass, intentional tort, nuisance, waste or strict liability or under any reported decisions of a state or federal court; (iii) petroleum or crude oil; and (iv) asbestos. The term "Hazardous Materials Contamination" shall mean the contamination (whether presently existing or hereafter occurring) of the improvements, facilities, soil, groundwater, air or other elements on, in or of the Project by Hazardous Materials, or the contamination of the buildings, facilities, soil, groundwater, air or other elements on, in or of any other property as a result of Hazardous Materials at any time emanating from the Project. The term "Governmental Requirements" shall mean all past, present and future laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State of California, the County of Orange, the City of Newport Beach, or any other political subdivision in which the Project is located, and any other state, county, city, political subdivision, agency, instrumentality or other entity exercising jurisdiction over the Project. 7.3 Duty to Prevent Hazardous Material Contamination. Developer shall take commercially reasonable action to prevent the release of any Hazardous Materials into the environment. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Developer shall install and utilize such equipment and implement and adhere to such procedures as are consistent with the standards generally applied by apartment complexes in Orange County, California as respects the disclosure, storage, use, removal, and disposal of Hazardous Materials. 7.4 Obligation of Developer to Remediate Premises. Notwithstanding the obligation of Developer to indemnify the Indemnified Parties pursuant to Section 7.2, Developer shall, at its sole cost and expense, promptly take (i) all actions required by any federal, state, regional, or local governmental agency or political subdivision or any Governmental Requirements and (ii) all actions necessary to make full economic use of the Project for the purposes contemplated by this Agreement, which requirements or necessity arise from the presence upon, about or beneath the Project of any Hazardous Materials or Hazardous Materials Contamination. Such actions shall include, but not be limited to, the investigation of the environmental condition of the Project, the preparation 1526 Placentia Avenue Affordable Housing Agreement Page 11 of 18 of any feasibility studies or reports and the performance of any cleanup, remedial, removal or restoration work. 7.5 Environmental Inquiries. Developer, when it has received any notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, or cease and desist orders related to Hazardous Materials or Hazardous Materials Contamination, or when Developer is required to report to any governmental agency any violation or potential violation of any Governmental Requirement pertaining to Hazardous Materials or Hazardous Materials Contamination, shall concurrently notify the City Manager and provide to him/her a copy or copies, of the environmental permits, disclosures, applications, entitlements or inquiries relating to the Project, the notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, cease and desist orders, reports filed pursuant to self -reporting requirements, and reports filed or applications made pursuant to any Governmental Requirement relating to Hazardous Materials and underground tanks, and Developer shall report to the City Manager, as soon as possible after each incident, any unusual, potentially important incidents. 7.6 In the event of a responsible release of any Hazardous Materials into the environment, Developer shall, as soon as possible after it becomes aware of the release, furnish to the City Manager a copy of any and all reports relating thereto and copies of all correspondence with governmental agencies relating to the release. Upon request of the City Manager, Developer shall furnish to the City Manager a copy or copies of any and all other environmental entitlements or inquiries relating to or affecting the Project including, but not limited to, all permit applications, permits and reports including, without limitation, those reports and other matters which may be characterized as confidential. 7.7 The indemnity provisions in Section 7.2 shall survive the termination of this Agreement. 8. DEFAULTS AND REMEDIES 8.1 Termination for Cause. In the event the City determines that there has been any fraud or deceit by Developer including, but not limited to, any material misrepresentation by Developer, the City may, in its sole discretion, immediately terminate this Agreement. In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of five (5) calendar days, or if more than five (5) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within five (5) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 8.2 Acceptance of Service of Process. In the event that any legal action is commenced by the Developer against the City, service of process on the City shall be 1526 Placentia Avenue Affordable Housing Agreement Page 12 of 18 made by personal service upon the City Clerk, or in such other manner as may be provided by law. In the event that any legal action is commenced by City against Developer, service of process on Developer shall be made in such manner as may be provided by law, whether made within or outside the State of California. 9. NONDISCRIMINATION 9.1 Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person, or group of persons on any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the sale, rental, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Project, or any part thereof, nor shall Developer, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Project, or any part thereof. The foregoing covenants shall run with the land. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: 9.1.1 In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. Notwithstanding the forgoing, with respect to familial status, the forgoing shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the California Government Code. The foregoing covenants shall run with the land." 9.1.2 In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish 1526 Placentia Avenue Affordable Housing Agreement Page 13 of 18 or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased. Notwithstanding the forgoing, with respect to familial status, the forgoing shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the California Government Code." 9.1.3 In contracts pertaining to the Project: "There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. Notwithstanding the forgoing, with respect to familial status, the forgoing shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the California Government Code." 9.2 The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City and City's successors and assigns, and any successor in interest to the Project, together with any property acquired by the Developer pursuant to this Agreement, or any part thereof. The covenants against discrimination shall remain in effect in perpetuity. 10. EFFECT OF VIOLATION OF THE TERMS AND PROVISIONS OF THIS AGREEMENT The City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. This Agreement and the covenants shall run in favor of the City, without regard to whether the City has been, remains or is an owner of any land or interest therein in the Project. The City shall have the right, if this Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other property proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. 11. NOTICES 11.1 All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Developer and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit 1526 Placentia Avenue Affordable Housing Agreement Page 14 of 18 thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. 11.2 All notices, demands, requests or approvals from Developer to City shall be addressed to City at: To Developer: James John Cefalia, Cathy Lynn Cefalia, Jeffrey Cefalia 1740 E. Oceanfront Newport Beach, CA 92661 To City: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Manager 12. STANDARD PROVISIONS 12.1 Recitals. City and Developer acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 12.2 Compliance with all Laws. Developer shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, the Project shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of City. 12.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 12.4 Integrated Agreement. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 12.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and any other attachments attached hereto, the terms of this Agreement shall govern. 12.6 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 1526 Placentia Avenue Affordable Housing Agreement Page 15 of 18 12.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Developer and City and approved as to form by the City Attorney. 12.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 12.9 Confidentiality. All documents, including drafts, notes and communications that result from this Agreement, shall be kept confidential unless City authorizes in writing the release of information. 12.10 Cooperation. Developer agrees to work closely and cooperate fully with City and any other agencies that may have jurisdiction or interest in this Agreement. City agrees to cooperate with the Developer in the implementation of this Agreement. 12.11 Controlling Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 12.12 Equal Opportunity Employment. Developer represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law. 12.13 No Attorney's Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 12.14 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 12.15 No Third -Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person or entity other than the City on the one hand and Developer on the other and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any third person to any Party or give any third person any right of subrogation or action over or against any Party. 12.16 No Damages. Developer acknowledges that City would not enter into this Agreement if it were to be liable for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) under, or relating to, this Agreement or any of the matters referred to in this Agreement, including, without limitation, any and all plans, permits, licenses or regulatory approvals, and CEQA documents related to the Property or Project. Accordingly, Developer covenants and 1526 Placentia Avenue Affordable Housing Agreement Page 16 of 18 agrees on behalf of itself and its successors and assigns, not to sue City (either in its capacity as a Party to this Agreement or in its capacity as the City of Newport Beach) for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) or monetary relief for any breach of this Agreement by City or for any dispute, controversy, or issue between City and Developer arising out of or connected with this Agreement or any of the matters referred to in this Agreement, including, without limitation, any and all plans, permits, licenses or regulatory approvals, CEQA documents, or any future amendments or enactments thereto, the parties agreeing that declaratory relief, injunctive relief, mandate and specific performance shall be Developer's sole and exclusive judicial remedies. Notwithstanding the foregoing, nothing in this Section 12.16 shall limit Developer's remedies as expressly set forth in this Agreement. 12.17 Time Declared to be of the Essence. As to the performance of any obligation under this Agreement of which time is a component, the performance of such obligation within the time specified is of the essence. 12.18 Survival of Agreement. All of the provisions of this Agreement shall be applicable to any dispute between the Parties arising from this Agreement, whether prior to or following expiration or termination of this Agreement, until any such dispute is finally and completely resolved between the Parties, either by written settlement, entry of a non - appealable judgment or expiration of all applicable statutory limitations periods, and all terms and conditions of this Agreement relating to dispute resolution and limitations on damages or remedies shall survive any expiration or termination of this Agreement. 12.19 Binding Authority. By executing this Agreement, each person signing on behalf of the Developer warrants and represents to the City that Developer has the full power and authority to enter into this Agreement, that all authorizations required to make this Agreement binding upon the Developer have been obtained, and that the person or persons executing this Agreement on behalf of the Developer are fully authorized to do so. [Signatures on Following Page] 1526 Placentia Avenue Affordable Housing Agreement Page 17 of 18 SIGNATURE PAGE TO AFFORDABLE HOUSING AGREEMENT (Placentia Avenue Apartments at 1526 Placentia Avenue) IN WITNESS WHEREOF, the Parties have signed this Agreement by and through the signatures of their respective authorized representative(s) as follows: CITY OF NEWPORT BEACH, a California municipal corporation By: �a"r� Seimone Jurjis City Manager APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE By: A on C. Harp City Attorney OWNER(S): JAMES JOHN CEFALIA AND CATHY LYNN CEFALIA, TRUSTEES OF THE CEFALIA FAMILY TRUST, ORIGINALLY ESTABLISHED ON MAY 20, 1986, AS TO AN UNDIVIDED 50.0000% INTEREST AND JEFFREY CEFALIA, A MARRIED MAN, AS HIS SOLE AND SEPARATE PROPERTY, AS TO AN UNDIVIDED 50.0000% INTEREST, ALL AS TENANTS IN COMMON ATTEST: By By: ZU��Jk �,, Lena Shumway City Clerk M (,Ccq 4" n atk-a- Ca by Lynn C falia Trustee Exhibits: Exhibit "A" — Property Exhibit "B" — Project Exhibit "C" — Affordable Housing Implementation Plan No. PA2023- 0053 Exhibit "D" — Declaration of Affordable Housing Covenants, Conditions and Restrictions Exhibit "E" — Tenant Income Documentation Exhibit "F" — Annual Report 1526 Placentia Avenue Affordable Housing Agreement Page 18 of 18 IWA: 11-3kMAN 1526 Placentia Avenue Affordable Housing Agreement Exhibit A-1 1' 201=204 201=202 201-202 ` . ; 101-103 101 101 F G H C L 201-202 *ri 201-202 i201. 03 101 101 101 . 139.99 ft �LkbitC` at: Lq 04 i 0 15,049.40 ft2 4w O N Perimeter:•• a ft N 105.00 ft r t • 17i-I"Mciii- Is N Disclaimer: N E W P O R T B E A C H Every reasonable effort has been made to assure the accuracy of the data provided, however, The City of e��WPORT Newport Beach and its employees and agents 0 40 80 disclaim any and all responsibility from or relating to uany results obtained in its use. Feet C7�lF00.N% air neon I W4:11 311 M:M PROJECT 1526 Placentia Avenue Affordable Housing Agreement Exhibit B-1 4- — — — — — — — — — — — — — — — — — — — — — — — — — — — —§ § g § � / \ 2§� 9 - - - - - - -- - - - - - all X: ' � \ ( § /§ _ \ ; �| 8 . , ` ) \ � q,m \ / : . � ,\ � _ ; ; ,� . _ ƒ � � X.: / R ' 1% 9 Jig ip \ � 9P >>>>>>>>>>> Now Multi -Family Apartment Complex To it d - 1526 Placentia Avenue 1526 Plamnita Menue. Newmft SeaW, CAifo­ 92663 EXHIBIT "C" AFFORDABLE HOUSING IMPLEMENTATION PLAN NO. PA2023-0053 1526 Placentia Avenue Affordable Housing Agreement Exhibit C-1 1526 PLACENTIA AVENUE AFFORDABLE HOUSING IMPLEMENTATION PLAN AND DENSITY BONUS APPLICATION RESUBMITTED October 8, 2024 Prepared by 215 1526 Placentia Ave Affordable Housing Plan October 8. 2024 1526 PLACENTIA AVENUE AFFORDABLE HO USING IMPLEMENTATION PLAN AND DENSITY BONUS APPLICATION RESUBMITTED October 8, 2024 Project Description & Affordability Level The developer, 1526 Placentia Avenue, is proposing demolition of the current market and development of an apartment building on a .37 net acre site. The site is located North of the intersection of W 15`h Street and Placentia Avenue. The Newport Beach General Plan designates the project site as Multiple -Unit Residential and the zoning is Multiple -Unit Residential (RM). The site is currently developed with a Liquor Store. The development will consist of 11 residential units and open parking garage. The site at 1526 Placentia Avenue is primarily flat and sits within an already developed area with a mix use of residential and commercial properties. Directly adjacent to the property on the North are 2 story residential apartments. The adjacent property to the South is a 4 story medical office building and the property to the East is a 2 story medical office building. Adjacent across Placentia Avenue is a mobile home park. The subject property is 16,925 square feet. The proposed development is 1 building with 2 stories of apartments over podium parking at ground level. Around the outside of the building will be common landscaping, common open space with tables and benches, driveways, and walkways. The building itself will have a center open air walkway to access each apartment unit on both floors. The ground level parking will be sunken below street level by 2'. The is Multiple -Unit Residential (RM) Zoning has a Floor Area limit of I.75 and 2,420 square feet per residential unit. This results in the following requirements: Minimum of 4 residential units. Maximum of 7 residential units before applying density bonus. Maximum of 11 residential units after applying density bonus. Living unit breakdown is as follows: (5)2 nd Floor Units: Unit IA: 1,225 SF 3 Bed - 2 Bath 69 SF Deck Unit 1B: 1,269 SF 2 Bed - 2 Bath 64 SF Deck Unit 1C: 1,230 SF 2 Bed - 2 Bath ( 62 SF Deck Unit IE: 1,287 SF 3 Bed - 2 Bath 66 SF Deck Unit 1F: 1,288 SF 3 Bed - 2 Bath 68 SF Deck (5) 3rd Floor Units: Unit 2A: 1,225 SF 3 Bed - 2 Bath 69 SF Deck 20 1526 Placentia Ave Affordable Housing Plan October 8. 2024 Unit 213: 1,269 SF 12 Bed - 2 Bath 164 SF Deck Unit 2C: 1,230 SF 12 Bed - 2 Bath 162 SF Deck Unit 2E: 1,287 SF 13 Bed - 2 Bath 166 SF Deck Unit 217: 1,288 SF 13 Bed - 2 Bath 168 SF Deck (1) 2 Story Unit (Entry @ 2nd Floor): Unit D: 1,768 SF 13 Bed - 2.5 Bath 1 123 SF Deck The developer, 1526 Placentia Avenue, is proposing demolition of the current market and development of an apartment building on a .37 net acre site. The site is located North of the intersection of W 151h Street and Placentia Avenue. The Newport Beach General Plan designates the project site as Multiple -Unit Residential and the zoning is Multiple -Unit Residential (RM). The site is currently developed with a Liquor Store. The development will consist of 11 residential units and open parking garage. The is Multiple -Unit Residential (RM) Zoning has a Floor Area limit of 1.75 and 2,420 square feet per residential unit. This results in the following requirements: Minimum of 4 residential units Maximum of 7 residential units (before applying density bonus) Eligibility for Density Bonus The 1526 Placentia Avenue development will provide specific unit 1C as affordable to Very Low Income households, 14% of the Base Units as described in Table 1 on the next page. This will comply with the provisions of Government Code Section 65915(f)(2) applicable to a 46.25% density bonus. Rents for the Very Low Income units will be computed in accordance with Health and Safety Code Sec. 50053, as required by Government Code Section 65915(c)(1). Density Bonus Computation and Term of Affordability The density bonus computation for the project per Government Code Section 65915 is shown in Table 1: 27 1526 Placentia Ave Affordable Housing Plan October 8. 2024 Table 1 Density Bonus Computation Project Area 16,275 SF Minimum Lot Area Per Unit 2,420 SF Allowable Residential Units Before Density Bonus Base Units 7 Eligible Density Bonus 46.25% 4 Density Bonus Utilized 4 Total Units 11 The Developer intends to operate the apartment project as a rental community. The 1 Very Low Income unit will remain rent restricted for 55 years, per Government Code Section 65915(c)(1). Reduction in Parking The 1526 Placentia Ave development meets the criteria of subdivision (b) of Government Code Sec. 65915 and Section 20.32.030 of the City's Zoning Code by providing more than five percent (5%) of the total units of a housing development (excluding any units permitted by the density bonus awarded pursuant to that section) for Very Low -Income households. Government Code Section 65915(p) and Section 20.32.040 of the City's Zoning Code provides the following: (1) Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (b), that exceeds the following ratios: a. Zero to one bedrooms: one onsite parking space. b. Two to three bedrooms: one and''/z onsite parking spaces. (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide "onsite parking" through tandem parking or uncovered parking, but not through street parking. Table 2 on the next page is a summary of Government Code Sec. 65915 parking requirements vs. spaces to be provided: 4 m 1526 Placentia Ave Affordable Housing Plan October 8. 2024 Table 2 Parking Requirements Unit Type Number of Units Stalls/Unit Total per Gov. Stalls per Code Gov. Code 2 Bedroom 6 1.5 9 3 Bedroom 5 1.5 7.5 Total Parking Stalls Required 17 Total Parking Stalls Provided 24 The Developer requests that parking requirements be calculated in accordance with Government Code Sec. 65915(p). Income Limits and Examples of Eligible Tenants for Affordable Homes Very Low -Income Households are defined as households whose gross income does not exceed 50% of area median income, adjusted for household size. Table 4 below shows the maximum income limits for 2024 determined by the U.S. Department of Housing and Urban Development and the California Department of Housing and Community Development ("HCD") for Very Low -Income households with household sizes appropriate for the 1526 Placentia Avenue development: Table 3 Maximum Income Limits Household Size Very Low Income Units Maximum Annual Income-2024 1 person $55,250 2 person $63,100 3 person $71,050 4 person $78,900 Higher income limits apply to larger families; those families however are not considered to be a target market for 1526 Placentia Avenue, where the unit mix for the affordable homes is anticipated to consist of two -bedroom apartment homes. The 1 affordable apartment that Developer will provide will be rented to eligible Very Low Income Households. As shown in Table 3, Very Low Income Households includes incomes ranging from $63,100 per year for a two -person household to $78,900 per year for a four -person household. As such this could include retail and food service industry employees, certain City employees, school district employees, health care professionals, and other occupations which provide needed services to our community. tj 1526 Placentia Ave Affordable Housing Plan October 8. 2024 Table 4 Examples of Qualifying Salaries Position Pay Range Information Comment Source Human Resource $64,356 - $90,444 City May qualify for very low units Specialist I depending on household size. Park Patrol Officer $45,420-$63,924 City Will qualify for very low units depending on household size. Licensed Vocational $60,000-$87,000 Glassdoor May qualify for very low units Nurse depending on household size. Newport Mesa USD $64,354-$98,740 NMUSD Credential teacher with no advanced Teacher Website education and up to 5 years experience may qualify for very low income units depending on household size. Newport Mesa USD $46,020-$55,932 NMUSD At entry level will qualify for very low Library Technician Website income units. NMUSD $57,468-$85,116 NMUSD May qualify for very low units Maintenance Worker Website depending on household size. In order to provide opportunities to workers to live in one of the affordable homes, the City could provide guidelines providing for acceptance of applications on a priority basis from classes of individuals who qualify under the income limits in effect. The guidelines could provide for priority treatment for local residents, City employees, employees of the local school district, and other categories identified by the City for priority treatment. Rental Rate Limits for Affordable Homes The 1 Very Low -Income unit shall be rented at an affordable rent calculated in accordance with the provisions of Section 50053 of the Health and Safety Code. Section 50053 of the Health and Safety Code limits affordable rent to 30% of total income for a Very Low -Income household, as calculated in Table 5 below. That section also requires that the rent for a two -bedroom unit assumes a four -person household for rent calculation purposes. The rents calculated are then adjusted by a utility allowance as determined annually by the County of Orange Housing & Community Services Department. As of October 1, 2024, the reduction for the utility allowance is $352.00 per month for a two -bedroom unit. The utility allowance utilized assumes gas cooking, space heating, and water heating, as well as electricity, water, sewer, refrigerator, and trash fees which will be paid by the tenant. The maximum rent levels for 2024 are shown in Table 5 below: 0 W 1526 Placentia Ave Affordable Housing Plan October 8. 2024 Table 5 Maximum Rents by Bedroom Count Bedrooms Maximum Annual Rent Maximum Monthly Utility Affordable Rent 30% (78,900) Rent Allowance (1438-215) 23,670 / 12 2 bedroom $23,670 $1,972.5 $352 $1,620.5 The Developer will enter into an affordable housing agreement, in recordable form, with the City prior to obtaining the first building permit for any residential unit. That agreement will ensure that the maximum rents for the affordable apartment homes will be calculated using the methodologies as utilized in Table 5. The rental rates shown will be updated prior to the commencement of rental activities and on an ongoing basis to reflect current income limits, utility allowances, and any changes in applicable regulations and statutes. Unit Mix, Design, and Location of Affordable Hoines The affordable unit will be unit 1C. As required by Section b 20.32.070 of the City's Zoning Code, the affordable homes shall be comparable in the facilities provided and in the quality of construction and exterior design to the market rate homes. There is only one unit designated as affordable and it is of the same scope of design as the other 9 single story units. Requested City of Newport Beach Assistance Financial Assistance Developer is not requesting any direct financial assistance from the City of Newport Beach for this project. S2 EXHIBIT "D" DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND RESTRICTIONS [Attached Behind This Page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Clerk Exempt from Recording Fees pursuant to Govt. Code §§ 6103, 27383 Space above line for Recorder's use only APN : 424-161-08 DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND RESTRICTIONS (Placentia Avenue Apartments at 1526 Placentia Avenue) THIS DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND RESTRICTIONS (this "Declaration") is dated as of , 2026 ("Effective Date"), and is made by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city, as covenantee ("City"), and James John Cefalia and Cathy Lynn Cefalia, Trustees of the Cefalia Family Trust, Originally Established on May 20, 1986, as to an undivided 50.0000% interest and Jeffrey Cefalia, a Married Man, as his sole and separate property, as to an undivided 50.0000% interest, all as Tenants in Common, as covenantor ("Owner"), with reference to the following recited facts (each, a "Recital"). RECITALS A. Developer is the owner of that certain real property consisting of approximately 0.37 acres located in the Multiple Residential Zoning District (RM) in the City of Newport Beach, County of Orange, State of California, addressed as 1526 Placentia Avenue, Newport Beach, CA 92663 [APN 424-161-08], as more particularly depicted in Attachment 1 attached to this Declaration and incorporated herein ("Property"). B. On January 16, 2025, the Zoning Administrator approved the Placentia Avenue Apartments (PA2023-0053) for the development of eleven (11) apartment units, atop a 24-space parking structure, as depicted on Attachment 2 attached to this Declaration and incorporated herein ("Project"). C. Project approval included the adoption of an Affordable Housing Implementation Plan No. PA2023-0053, dated October 8, 2024 ("AHIP"), which implements affordable housing requirements for the Project pursuant to a density bonus and incentives/concessions pursuant to Chapter 20.32 (Density Bonus) of the Newport Beach Municipal Code ("NBMC") and California Government Code Section 65915 ("State Density Bonus Law"). The AHIP is attached hereto as Attachment 3 and incorporated herein by reference. 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-2 D. Pursuant to the State Density Bonus Law and the City's density bonus requirements, the City granted a maximum density bonus of 46.25 % above the maximum number of units allowed by the City's General Plan and Title 20 (Planning and Zoning) in exchange for construction of a minimum number of affordable housing units. With the approved maximum density bonus of 46.25%, the Project is eligible for four (4) additional units above the seven (7) base units ("Base Units") for a total of 11 dwelling units. E. The Multiple Residential Zoning District (RM) Development Standards ("Development Standards") provide for a maximum residential density of eighteen (18) dwelling units per acre. The Project is planned to consist of seven (7) total dwelling units based on the current maximum residential density per the Development Standards ("Base Units") and four (4) density bonus units. The Development Standards require that fourteen percent (14%) of the Base Units within a residential development shall be affordable to Very -Low -Income Households. The affordable housing requirement for this project is one (1) unit ("Affordable Dwelling Unit") (14% of 7 Base Units). F. The one (1) Affordable Dwelling Unit provided by the Developer, will be made available to Very -Low -Income Households ("Required Density Bonus Lower Income Units"), which complies with the provisions of California Government Code Section 65915 and NBMC Section 20.32 applicable to a 46.25% density bonus. Rents for the Required Density Bonus Very Low Income Unit will be computed in accordance with California Health and Safety Code Section 50053, as required by California Government Code Section 65915(c)(1) and Section 20.32.160 of the NBMC. G. Developer intends to operate the Project as a rental community. The one (1) Required Density Bonus Very -Low Income Unit will remain rent restricted for a minimum of fifty-five (55) years, per California Government Code Section 65915(c)(1). H. Owner and City have entered into an Affordable Housing Agreement, dated ("Affordable Housing Agreement") with respect to the Project. I. This Declaration shall be recorded upon the execution of that certain Affordable Housing Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES, COVENANTS AND UNDERTAKINGS SET FORTH IN THIS DECLARATION AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, OWNER AND CITY COVENANT, DECLARE AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS, AS FOLLOWS: 1. COVENANTS 1.1 Affordability Period. Owner agrees for itself and its successors and assigns, and every successor to Owner's interest in the Property, or any part thereof, that the 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-3 Affordable Dwelling Unit, comprising Development Standards, within the Property shall be designated as affordable and shall be held subject to this Declaration for an Affordability Period as follows: 1.1.1 Affordable Dwelling Unit consisting of one (1) unit will remain rent restricted for a minimum of fifty-five (55) years commencing upon the date the final certificate of occupancy is issued for the last Affordable Dwelling Unit constructed in the applicable Phase providing such Affordable Dwelling Unit. 1.2 Occupancy. The Affordable Dwelling Unit shall only be rented and occupied by Very Low Income Households. Notwithstanding the foregoing, households with less income may also occupy the Affordable Dwelling Unit. "Very Low Income Households" is defined in California Health and Safety Code Section 50105 and means an individual or family with an income fifty percent (50%) or less of the Orange County median income, adjusted for household size. 1.3 Rent. The Affordable Dwelling Unit shall only be rented at an Affordable Rental Price to Very Low Income Households. 1.4 Notice. Commencement of the Affordability Period shall be memorialized in a Notice of Commencement of Affordability Restrictions ("Notice") or other instrument of similar format to Attachment "4" attached hereto and incorporated herein by reference and shall be recorded. tr�:7Aki1194*_1 2.1 Qualification. Owner shall qualify prospective renters as set forth in the Affordable Housing Agreement. Furthermore, the Owner shall, on renewal of the annual lease for the particular Affordable Dwelling Unit, re -qualify the renter and obtain income certification from the renter. If, at the time of the annual lease renewal, the Owner learns that the renter's income increases above the income level permitted for that Affordable Dwelling Unit, the renter may continue to be permitted to reside in such Affordable Dwelling Unit for no more than one year. Notwithstanding the foregoing, the Owner, at the City's discretion and advance written approval, which shall not be unreasonably withheld or delayed, shall have the option to designate another dwelling unit as an Affordable Dwelling Unit during that one-year period so that the renter may continue to occupy a unit in the Project. 2.2 Affordable Rental Price. "Affordable Rental Price" shall refer to (i) thirty percent (30%) times fifty percent (50%) of the Orange County area median income as determined annually by the California Department of Housing and Community Development, Adjusted for Household Size Appropriate for the Unit for the Affordable Dwelling Unit. OWNER AND EACH SUCCESSOR, HEIR, OR ASSIGN OF OWNER UNDERSTANDS THAT THE MAXIMUM RENTAL PAYMENTS TO BE ESTABLISHED BY THIS FORMULA ARE NOT NECESSARILY EQUAL TO THE FAIR MARKET RENT FOR THE AFFORDABLE DWELLING 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-4 UNITS AND MAY BE ESTABLISHED AT A LEVEL SUBSTANTIALLY BELOW THE FAIR MARKET RENT LEVELS. Owner's Initials 2.3 Restrictions. During the Affordability Period, Owner shall take all reasonable steps necessary to ensure that each household renting an Affordable Dwelling Unit has knowledge of all terms and conditions of this Declaration by including in each and every lease and rental agreement a clause which incorporates this Declaration by reference and makes this Declaration a part of an attachment to such lease or rental agreement. In addition, during the Affordability Period, each lease or rental agreement for the Affordable Dwelling Unit shall contain provisions that failure to comply with this Declaration shall be a default under the renter's lease or rental agreement. 3. GENERAL PROVISIONS 3.1 Binding. The Property shall be subject to the covenants, conditions, and restrictions set forth herein, which shall run with the land, and shall apply to and bind the heirs, successors, executors, administrators and assigns of all the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. 3.2 Covenants Do Not Impair Liens. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 3.3 Covenants for Benefit of City. This Declaration shall be binding for the benefit of City and such covenants shall run in favor of City for the entire period during which time such covenants shall be in force and effect, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any such action at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants. 3.4 Counterparts. This Declaration may be executed in a number of counterparts, each of which shall be an original, but all of which shall constitute one and the same document. 3.5 Applicable Law. If any provision of this Declaration or portion thereof, or the application of any provision to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of this Declaration, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby and it shall not be deemed that any such invalid provision affects the consideration for this Declaration; and each provision of this Declaration shall be valid 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-5 and enforceable to the fullest extent permitted by law. This Declaration shall be construed in accordance with the laws of the State of California. 3.6 No Subordination. The Parties agree and acknowledge that any encumbrance to the Property, or part of the Property, or any improvements on the Property containing the Affordable Dwelling Unit with any conventional mortgage, construction bond financing or security interest to secure financing with respect to the construction, development, use, or operation of the Project shall be subordinate to this Declaration. 3.7 Recording. This Declaration shall be recorded upon the execution of the Affordable Housing Agreement. 3.8 Termination. Upon expiration of the Affordability Period for each category of Affordable Housing Units, Owner and City shall sign documents in recordable form (provided by Owner giving notice and subject to approval by the City Attorney) to remove the effect of the recorded Declaration from the Property. [Signatures on following page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-6 IN WITNESS WHEREOF, City and Owner have caused this Declaration to be signed by themselves or on their behalf by their duly authorized representatives, as set forth below: CITY OF NEWPORT BEACH, a California municipal corporation By: Seimone Jurjis City Manager APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE By: Aaron C. Harp City Attorney ATTEST: By: Lena Shumway City Clerk OWNER(S): JAMES JOHN CEFALIA AND CATHY LYNN CEFALIA, TRUSTEES OF THE CEFALIA FAMILY TRUST, ORIGINALLY ESTABLISHED ON MAY 20, 1986, AS TO AN UNDIVIDED 50.0000% INTEREST AND JEFFREY CEFALIA, A MARRIED MAN, AS HIS SOLE AND SEPARATE PROPERTY, AS TO AN UNDIVIDED 50.0000% INTEREST, ALL AS TENANTS IN COMMON James John Cefalia Trustee By: Cathy Lynn Cefalia Trustee Jeffrey Cefalia [SIGNATURES MUST BE NOTARY ACKNOWLEDGED FOR RECORDING] Attachments: Attachment 1 — Property Attachment 2 — Project Attachment 3 — Affordable Housing Implementation Plan No. PA2023- 0053 Attachment 4 — Notice of Commencement of Affordability Restrictions 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-7 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 } ss. On 20 before me, Notary Public, personally appeared 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(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On 20 before me, Notary Public, personally appeared 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(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-8 ATTACHMENT "1" to DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND RESTRICTIONS PROPERTY [To Be Inserted Behind this Page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-9 ATTACHMENT "2" to DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND RESTRICTIONS PROJECT [To Be Inserted Behind this Page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-10 ATTACHMENT "3" to DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND RESTRICTIONS Affordable Housing Implementation Plan No. PA2023-0053 [To Be Inserted Behind this Page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-11 ATTACHMENT "4" to DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND RESTRICTIONS Notice of Commencement of Affordability Restrictions [Attached Behind this Page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-12 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Clerk xempt from Recording Fees pursuant to Govt. Code §§ 6103, 27383 Space above line for Recorder's use only APN: 424-161-08 NOTICE OF COMMENCEMENT OF AFFORDABILITY RESTRICTIONS Important notice to owners, purchasers, tenants, lenders, brokers, escrow and title companies, and other persons regarding affordable housing restrictions on the real property described in this Notice: Affordable housing restrictions have been [or are being recorded] with respect to the property described below (referred to in this Notice as the "Property") which require that certain unit(s) of the Property be developed as affordable dwelling unit(s) and be rented to and occupied by persons and households of limited income at affordable rents. JAMES JOHN CEFALIA AND CATHY LYNN CEFALIA, TRUSTEES OF THE CEFALIA FAMILY TRUST, ORIGINALLY ESTABLISHED ON MAY 20, 1986, AS TO AN UNDIVIDED 50.0000% INTEREST AND JEFFREY CEFALIA, A MARRIED MAN, AS HIS SOLE AND SEPARATE PROPERTY, AS TO AN UNDIVIDED 50.0000% INTEREST, ALL AS TENANTS IN COMMON, hereby provide notice that the Property is subject to certain affordable housing requirements: Location of Property: 1526 Placentia Avenue, Newport Beach, CA 92663. 2. Assessor's Parcel Number(s) of Property: 424-161-08 3. Legal Description of Property: see Exhibit 1" attached hereto and incorporated herein by reference. 4. Title of Document(s) Containing the Affordable Housing Requirements: 4.1. Affordable Housing Agreement by and between CITY OF NEWPORT BEACH, a California municipal corporation and charter city and James John Cefalia and Cathy Lynn Cefalia, Trustees of the Cefalia Family Trust and Jeffrey Cefalia, dated ("Agreement"). 4.2. Declaration of Affordable Housing Covenants, Conditions and Restrictions, as recorded with the Official Records of Orange County, California, on 20_ as Instrument No. ("Declaration") 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-13 5. Summary of Affordable Housing Restrictions: 5.1. Affordability Period. One (1) of the Property's dwelling units shall be subject to the affordable housing requirements for a minimum of fifty-five (55) years from the Commencement Date. 5.2. The Commencement Date is , which is the date City issued the final Certificate of Occupancy ("CofO") for the Affordable Dwelling Unit. 6. This Notice does not contain a full description of the details of all the terms and conditions of the Agreement or the Declaration. You will need to obtain and read the Agreement and Declaration to fully understand the restrictions and requirements which apply to the Property. [Signatures on the following page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-14 CITY OF NEWPORT BEACH, a California municipal corporation By: Seimone Jurjis City Manager APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE By: Aaron C. Harp City Attorney ATTEST: By: Lena Shumway City Clerk OWNER(S): JAMES JOHN CEFALIA AND CATHY LYNN CEFALIA, TRUSTEES OF THE CEFALIA FAMILY TRUST, ORIGINALLY ESTABLISHED ON MAY 20, 1986, AS TO AN UNDIVIDED 50.0000% INTEREST AND JEFFREY CEFALIA, A MARRIED MAN, AS HIS SOLE AND SEPARATE PROPERTY, AS TO AN UNDIVIDED 50.0000% INTEREST, ALL AS TENANTS IN COMMON AN James John Cefalia Trustee By: Cathy Lynn Cefalia Trustee go Jeffrey Cefalia [SIGNATURES MUST BE NOTARY ACKNOWLEDGED FOR RECORDING] Exhibit(s): Exhibit 1 — Legal Description of Property 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-15 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 } ss. On 20 before me, Notary Public, personally appeared 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(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On 20 before me, Notary Public, personally appeared 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(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-16 EXHIBIT "1" LEGAL DESCRIPTION OF PROPERTY All that certain real property situated in the County of Orange, State of California, described as follows: PARCEL 1, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON MAP FILED IN BOOK 124, PAGES 24 AND 25 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Assessor's Parcel Number: APN 424-161-08 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-17 EXHIBIT "E" TENANT INCOME DOCUMENTATION [Attached Behind this Page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit E-1 Exhibit "E" TENANT FILE - INCOME DOCUMENTATION The tenant file must document the income of the persons occupying an assisted unit. At a minimum, the file must contain the following: Application/Certification A. Name, age and social security number of persons occupying the unit B. Source and amount of monthly income of persons 18 years of age and older C. Students over age of 18 — evidence of full-time status — 12 or more units D. Dated and signed by each person 18 years of age and older II. Income Support Documents for Each Person Occupying the Unit A. Current copy of Section 8 certificate/voucher, if applicable B. Most recent federal income tax return C. Birth certificate of minors not showing on federal income tax return D. Social security award statement E. Retirement benefits statement F. Two months' most recent, consecutive paystubs G. Unemployment compensation statement H. Third -party verifications from employers, banks, or others with first-hand information about the applicant's finances. These verifications should be in writing and can include documented telephone interviews. I. If self-employed: 1. Most recent Federal business tax return 2. 12 months business bank statements (12 months personal bank statements, if used for the business such as for a sole proprietor) 3. Profit and loss statement III. Asset Support Documents for Each Person Occupying the Unit A. Three months most recent checking and savings account statements B. Most recent asset statements such as CDs, 401K, IRAs, investment portfolios (stocks, bonds, cryptocurrency, etc.) IV. Income Recertification Support Documents A. Recertification statement completed and signed by all adult persons occupying the unit certifying all information in Section I — Application/Certification, above. B. All documents listed in Section II — Income Support Documents for Each Person Occupying the Unit, above. V. Additional Information A. Any additional information required by applicable federal, state, or local laws regarding the qualification of prospective tenants for affordable housing dwelling units. 1526 Placentia Ave Affordable Housing Agreement Exhibit E i*:4:n=31iffillai ANNUAL REPORT [Attached Behind this Page] 1526 Placentia Avenue Affordable Housing Agreement Exhibit F-1 Exhibit "F" ANNUAL REPORT The following information will need to be retained and made available to the City of Newport Beach on an annual basis. I. Tenant (Qualifying Household) Roster A list of all current tenants (Qualifying Households) occupying an Affordable Dwelling Unit including but not limited to: • Property Name • Property Address • Unit number • Unit Size • Number persons in unit • Tenant Name • Move -In Date/Initial occupancy date • Monthly Rent Rate • Utility Allowance • Household Income (Refer to Exhibit F) II. Tenant (Qualifying Household) File At a minimum, the tenant (Qualifying Household) file must contain the following information. • Original and subsequent executed lease agreements; • Initial occupancy date of current tenant; • Rental rate; • Name of current tenant; • Household size of current tenant; • Household income of current tenant, and information upon which Developer relied to qualify current tenant; • Utility allowance schedule III. Interest and/or Waiting List A list of all persons that have expressed an interest in occupying an Affordable Housing Unit. 1526 Placentia Ave Affordable Housing Agreement Exhibit F