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HomeMy WebLinkAboutC-10096-2 - Declaration of Affordable Housing Covenants, Conditions and Restrictions (Placentia Avenue Apartments at 1526 Placentia Avenue)2/26/26, 1:41 PM Batch 20705510 Confirmation Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder II I� II III III II III��III II III NO FEE *$ R 0 0 1 6 0 7 9 9 6 6$ RECORDING REQUESTED BY 2026001151111 11:01 am 02/26/26 AND WHEN RECORDED MAIL TO: 513 Ex12A D02 25 0.00 0.00 0.00 0.00 72.00 0.00 0.00 0.00 0.00 0.00 City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: Citv Clerk Exempt from Recording Fees pursuant to Govt. Code §§ 6103, 27383 Space above line for Recorder's use only AP N: 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 March 2, 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 Lave'). The AHIP is attached hereto as Attachment 3 and incorporated herein by reference. 1526 Placentia Avenue Affordable Housing Agreement Exhibit D-2 https://gs.secure-erds.com/Batch/Confirmation/20705510 1 /8 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 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 March 2, 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 February 25, 2026 ("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: COVENANTS 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. 2. RENTERS 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' j itials 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 signed by themselves or on their behalf by their duly authorized forth below: CITY OF NEWPORT BEACH, a California municipal corporation By: Seimone Jurjis City Manager APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE By: Aa n C. Harp tigi , LW City Attorney AF ATTEST: By: Lena Shumway City Clerk this Declaration to be representatives, as set 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 By: es Jo n C al' Trustee c By: Cathy L nn efali Trustee By: J e efalia [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 C)C'Gna& } SS. On 15 20OLo before me::5�4-w"-2, (6C'Vyt' 1R Notary Public, personally appeared who proved to me on the basis of satisfactory Ovidence 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. - 0. "p— - -N"M i JEANNE BARRENA Notary Public - California lamy Orange County Commission # 2539482 Comm. Expires Dec 17, 2029 (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 Orc., i } ss. On !;Z- . 23 20Q(.9 before Notary Public, personally appeared es,•QX- C, 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. _ lamy JEANNE BARRENANotary Public -California WITNESS my hand and official seal. Orange County Commission # 2539482 Comm. Expires Dec 17, 2029 (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 4�z 13 New Multi -Family Apartment Complex To 1526 Placentia Avenue 1526 Place,fta Avenue, Newport B,,ch, CMif,,,a 92663 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 1526 PLACENTIA AVENUE AFFORDABLE HOUSING IMPLEMENTATION PLAN AND DENSITY BONUS APPLICATION RESUBMITTED October 8, 2024 Prepared by 25 1526 Placentia Ave Affordable Housing Plan October 8. 2024 1526 PLACENTIA AVENUE A FFORDABLE 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' 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 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. Maximum of 11 residential units after applying density bonus. Living unit breakdown is as follows: (5) 2nd Floor Units: Unit 1A: 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 13 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 3 Bed - 2 Bath 66 SF Deck Unit 217: 1,288 SF 3 Bed - 2 Bath 68 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 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 is Multiple -Unit Residential (RM) Zoning has a Floor Area limit of 1.75 and 2,420 square feet ---pe msidential-unit. This results-inrthe-ullawing-re�cuirements. 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 1 C 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: WrA 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. 2� 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: 11 30 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 Homes 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 an 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. 31 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 Exempt 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") 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] 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 In James John Cefalia Trustee By: Cathy Lynn Cefalia Trustee Jeffrey Cefalia [SIGNATURES MUST BE NOTARY ACKNOWLEDGED FOR RECORDING] Exhibit(s): Exhibit 1 — Legal Description of Property 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) 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