HomeMy WebLinkAbout11 - Termination of Expired Affordable Housing AgreementsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 11
June 14, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PLANNING DEPARTMENT
Jaime Murillo, Assistant Planner
(949) 644 -3209, jmurillo @city.newport- beach.ca.us
SUBJECT: Termination of Expired Affordable Housing Agreements
ISSUE
Should the City terminate two expired affordable housing agreements?
RECOMMENDATION
Execute Termination Agreements for two expired affordable housing agreements.
DISCUSSION
Background
Through the process of organizing old affordable housing files, staff has discovered that
the following two expired affordable housing agreements have not yet been properly
terminated:
Plummer Court, 309 Cypress Street
On May 1, 1985, the City entered into an affordable housing agreement with Wale
Development to provide one affordable housing unit at their nine unit residential
condominium project as a condition of approval of Tentative Tract Map No. 12208. The
agreement was for a period of ten years from the date of occupancy by a qualified
moderate - income person or family, which has been determined to have commenced on
October 19, 1988. The agreement has therefore expired as of October of 1998.
Canyon Cove, 509 Morning Canyon
On January 27, 1986, the City entered into an affordable housing agreement with
Rumney Enterprises to provide one affordable housing unit at their fourteen unit
Termination Agreements
June 14, 2005
Page 2
residential condominium project as a condition of approval of Tentative Tract Map No.
12079. The agreement was for a period of ten years from the date of occupancy by a
qualified median - income person or family, which has been determined to have
commenced on July 23, 1987. The agreement has therefore expired as of July of 1997.
Staff did not contact the new owners of these units in regards to reactivating and
extending the agreements because of the length of time that has passed since these
agreements have expired. Therefore, staff recommends the City execute the two
attached Termination Agreements to properly close the files.
Prepared by:
J me Murillo
Assistant Planner
Submitted by:
S aron Z. Wood
Assistant City NVager
Attachments:
1. Plummer Court Termination Agreement
2. Canyon Cove Termination Agreement
3. Plummer Court Affordable Housing Agreement
4. Canyon Cove Affordable Housing Agreement
F:\ USERS \PLN \Shared \jmudllo \Housing Agreements\ Terminations \6- 14- 0500terminationrpt.doc
ATTACHMENT 1
Plummer Court Termination Agreement
3
RECORDING REQUESTED
BY AND WHEN RECORDED
PLEASE RETURN TO:
City Clerk
City of Newport Beach
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, CA
92658 -8915
(Space above this line for Recorder's use
TERMINATION OF AFFORDABLE HOUSING AGREEMENT
This Termination of Affordable Housing Agreement is given this 14th day of June, 2005, by the
City of Newport Beach, in accordance with the provisions of that certain Affordable Housing Agreement,
dated May 1, 1985, by and among WALE DEVELOPMENT, a California general partnership
( "Developer"), and the CITY OF NEWPORT BEACH, a California municipal corporation ( "City "), as
Document No. 85- 257075.
RECITALS
A. WHEREAS, Developer was the owner and developer of certain real property
described in Exhibit "A" hereto, which description is incorporated be this reference (the
'Property ").
B. WHEREAS, pursuant to the provisions of an approved tentative tract map (Tract
No. 12208), for development of the Property, the City required the Developer to provide
and maintain for a period of 10 years, one affordable housing unit and enter into a written
Affordable Housing Agreement.
C. WHEREAS, the terms of the Affordable Housing Agreement provided that the
obligation to maintain an affordable unit for a 10 year period shall commence upon
occupancy of the unit to be constructed by the Developer by a qualified family. The
commencement date is determined to be October 19, 1988.
D. WHEREAS, the ten year term of the Affordable Housing Agreement has expired.
NOW THEREFORE, the City of Newport Beach hereby determines that the Affordable
Housing Agreement has expired and shall be hereafter considered terminated and no longer of any
force or effect.
WITNESS WHEREOF, the undersigned have executed this Termination of Affordable
Housing Agreement on the date written below.
DATE
Approved as to Form:
City Attorney
Date:
City of Newport Beach
A California Municipal Corporation
By
Steve Bromberg, Mayor
Attest:
City Clerk
F:\ USERS \PLN \Sharedymudllo \Housing Agreements\ Terminations \PlummerTermination.DOC
-2-
EXHIBIT "A"
TRACT 12208 RECORDED IN BOOK 542, PAGE 11 =2 OF MISCELLANEOUS MAPS,
RECORDS OF ORANGE COUNTY.
I
STATE OF CALIFORNIA)
)ss.
COUNTY OF ORANGE )
On before me,
personally appeared personally known to me (or 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 signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary's Signature
STATE OF CALIFORNIA)
)ss.
COUNTY OF ORANGE )
before me,
personally appeared personally known to me (or 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 signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary's Signature
F:`,USERS'PLN'SI.,edFo=v Old Foms`Fo=\STATEICA.DOC
1
ATTACHMENT 2
Canyon Cove Termination Agreement
0
RECORDING REQUESTED
BY AND WHEN RECORDED
PLEASE RETURN TO:
City Clerk
City of Newport Beach
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, CA
92658 -8915
(Space above this line for Recorders use only.)
TERMINATION OF AFFORDABLE HOUSING AGREEMENT
This Termination of Affordable Housing Agreement is given this 14th day of June, 2005, by the
City of Newport Beach, in accordance with the provisions of that certain Affordable Housing Agreement,
dated January 27, 1986, by and among RUMNEY ENTERPRISES, INC., a California Corporation
( "Developer'), and the CITY OF NEWPORT BEACH, a California municipal corporation ( "City "), as
Document No. 86- 145985.
RECITALS
A. WHEREAS, Developer. was the owner and developer of certain real property
described in Exhibit "A" hereto, which description is incorporated be this reference (the
"Property ").
B. WHEREAS, pursuant to the provisions of an approved tentative tract map (Tract
No. 12079), for development of the Property, the City required the Developer to provide
and maintain for a period of 10 years, one affordable housing unit and enter into a written
Affordable Housing Agreement.
C. WHEREAS, the terms of the Affordable Housing Agreement provided that the
obligation to maintain an affordable unit for a 10 year period shall commence upon
I
occupancy of the unit to be constructed by the Developer by a qualified family. The
commencement date is determined to be July 23, 1987.
D. WHEREAS, the ten year term of the Affordable Housing Agreement has expired.
NOW THEREFORE, the City of Newport Beach hereby determines that the Affordable
Housing Agreement has expired and shall be hereafter considered terminated and no longer of any
force or effect.
WITNESS WHEREOF, the undersigned have executed this Termination of Affordable
Housing Agreement on the date written below.
DATE
Approved as to Form:
City Attorney
Date:
City of Newport Beach
A California Municipal Corporation
By
Steve Bromberg, Mayor
Attest:
City Clerk
F:\ USERS \PLN \Shared \jmurillo \Housing Agreements\ Terminations \MomingCanyonTermination.DOC
_2_
2
EXHIBIT "A"
TRACT 12079 RECORDED IN BOOK 556, PAGE 42 & 43 OF MISCELLANEOUS
MAPS, RECORDS OF ORANGE COUNTY.
STATE OF CALIFORNIA)
)ss.
COUNTY OF ORANGE )
On before me,
personally appeared personally known to me (or 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 signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary's Signature
STATE OF CALIFORNIA)
)ss.
COUNTY OF ORANGE )
On before me,
personally appeared personally known to me (or 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 signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary's Signature
Ft USERS PLN ".Shared Forms +Old FwmsFOnms'.STATEICA.DOC
ATTACHMENT 3
Plummer Court Affordable Housing Agreement
J5
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04/22/b5 mq.o.+sP. i-- tisio�5
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TO BE RECORDED AND
VfflEN RECORDED RETURN TO:
City Clerk/I,' t�,:. 7VU
�E J�eti� City of Newport Beach
Fla 3300 Newport Boulevard
Newport Beach, CA 92663
F_E_X_E_1V_.PT_1
C7.
RECORDED IN OFFICIAL RECORDS
OF ORANGE COUNTY CALIFORNIA
-2 io Pni JUL 12'85-
ca4- a
AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT is entered into this ist day of
«+Deal: ('f CF
`:.RT GEAPH. '
rAlff.
r "1 ID85 Q-
r�:Gfi a
"Ty CLERK f
1985 , by and between THE CITY OF NEWPORT BEACH, a Municipal
corporation and charter city, (hereinafter "City ") and WALE
DEVELOPMENT, a California general partnership (hereinafter
"Developer "), and is made with reference to the following facts:
RECITALS
A. Developer is the owner of that certain parcel of
land described on Exhibit "A" attached hereto and located in the
City of Newport Beach (hereinafter "The Property ").
B. On 22nd day of-April 19 85 City approved
Tentative Map of Tract No. 12208 to permit development of The Prop-
erty with a 9 -unit residential condominium project (hereinafter
"the Project ").
C. City has adopted Policy P -1 containing administra-
tive guidelines for implementation of the provisions of State law
relative to low and moderate income housing located within the
Coastal Zone.,
D. Pursuant to City's Policy P -1, the City Council has
determined that it would be feasible to require the inclusion of a
dwelling unit affordable to persons or families of moderate income
(hereinafter the "Affordable Unit ") within the Project.
R188 -F
04/22/85
TO BE RECORDED AND
WHEN RECORDED RETURN TO:
City Clerk
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT is entered into this ist day of May
1985 , by and between THE CITY OF NEWPORT BEACH, a Municipal
corporation and charter city, (hereinafter "City ") and WALE
DEVELOPMENT, a California general partnership (hereinafter
c
"Developer "), and is made with reference to the following facts:
Pr.rTTATS
A. Developer is the owner of that certain parcel of
land described on Exhibit "A" attached hereto and located in the
City of Newport Beach (hereinafter "The Property ").
B. On 22nd day of 'AQril , 1995 , City approved
Tentative Map of Tract No. 12208 to permit development of The Prop-
erty with a 9 -unit residential condominium project (hereinafter
"the Project ").
C. City has adopted Policy P -1 containing administra-
tive guidelines for implementation of the provisions of State law
relative to low and moderate income housing located within the
Coastal Zone.
D. Pursuant to City's Policy P -1, the City Council has
determined that it would be feasible to require the inclusion of a
dwelling unit affordable to persons or families of moderate income
(hereinafter the "Affordable Unit ") within the Project
15
R188 -F i l
04/18/85
E. Whereas, City and Developer desire to enter into
this Agreement establishing an Affordable Unit within The Project
and providing for the procedures for administering the Affordable
Unit.
NOW, THEREFORE, in consideration of the mutual covenants,
promises and conditions stated below, the parties agree as follows:
AGREEMENTS
1. Developer, for itself and for its successors -in-
interest, agrees to provide, and maintain for a period of 10 years,
one affordable housing unit on the site of the Project. The
Affordable Unit will be a rental unit, and the ma4iigym;:renta4aat. -
that can be charged occupants gtxGhaGtlirskrab71Q:%
of� the = -area median - .income: :for a�.fami.lya;o o'ur (4 asTd f ned i
Sett gt :50,0,93; of the Health and Safety Code of the State of
California. The rental rate,may be adjusted to reflect changes
in the area median income.
2. The Affordable Unit shall be, for the duration -=o.f,
this: Agreement (10 years-) , occupied by- .persons_.:or.- familie§- earning
120 percent;; of.: area median . income ...... or;. Mess:,; =, °a s= that- :.tenri is - defined
in_Section-50093 of the Health and Safety Code for. a.:fami-ly.'ofV
3. The Affordable Unit shall be available for occupancy
by persons or a family earning 120 percent of area median income,
or less, on or before the date which is six (6) calendar months
after the first residential unit within the Project is occupied,
and the obligation of the Developer to maintain the Affordable
-2- )6
R188 -F
04/18/85
Unit for a 10 -year period shall commence as of the date the
Affordable Unit is occupied by a qualifying person or family.
4. The Affordable Unit shall contain two bedrooms,
and shall contain substantially the same amenities as other units
within the Project with the exceptions of upgraded appliances,
light and other fixtures and trim package.
5. The Developer will be responsible for ensuring that
the persons or family who rent the Affordable Unit properly qualify
as persons or a family earning 120 percent, or less, of the area
median income. In order to ensure that the persons or family are
properly qualified in terms of income level and to ensure that the
process by which the occupants of the Affordable.Unit are selected
is fair and equitable, the Developer shall do the following:
a. Advertise the availability of the Affordable
Unit on at least two separate occasions in a newspaper of
general circulation within the County of Orange;
b. Allow a reasonable period of time for persons
or a family to apply with the Developer for rental of the
Affordable Unit, and accept applications for occupancy for a
period of not less than 10 days after the last date on which
the availability of the unit is advertised;
C. Develop for use a form that requires all
information necessary to make a determination of the
income earned by the person or family applying, and the
Developer shall investigate the facts and representations
contained in all applications submitted and /or take other
appropriate action to attempt in good faith to confirm that
those facts and representations are accurate;
-3- 1
R188 -F
04/18/85
d. Select the occupant of the Unit through a
random system such as a lottery; no preference whatsoever
shall be given in the selection to any applicant who is
related, either by blood or marriage, to the Developer or to
any person employed by the Developer, by the City of Newport
Beach, or by any governmental agency. However, nothing herein
shall preclude the selection of one of such persons through
the random system of selection used, and nothing herein shall
preclude the rejection of a person selected through the random
system for any of the following objective criteria provided
the reason for rejection is provided to the rejected person(s):
poor or inadequate credit rating; unstable or inadequate
employment history; inability or unwillingness to provide bank
account information.
6. In the event that the Affordable Unit is rented to
a person or family who does not qualify under the terms of this
Agreement, the Developer shall, within 90 days from the date on
which it learns of the failure of the person or family to qualify,
replace the occupants of that unit with persons or a family who do
qualify as provided in this Agreement. In the event that Developer -
is unable, for any reason within his control, to terminate the
tenancy of the occupant within 90 days, the Developer shall provide
a temporary replacement unit within the City of Newport Beach,
affordable to and occupied by a person or family which qualifies
under this Agreement.
7. The Developer shall require that the person or
family selected to occupy the Affordable Unit enter into a rental
agreement which shall contain at least the following terms:
-4 ) 0
R188 -F
04/18/85
a. The renter shall be required, at least once a
year, to provide the Developer with information regarding
the income of the person or family sufficient to enable the
Developer to determine if the person or family still qualifies
for occupancy; and
b. A provision that gives the Developer the right,
in the event of a material misrepresentation made by a person
or family with respect to income, or in the event the person
or family no longer qualifies, as provided in this Agreement,
to terminate the tenancy upon 30 days' written notice. When
requalifying a tenant, an income increase occurring during
the previous year of tenancy shall not disqualify a previously
qualified tenant if the resulting income is not more than
10% higher than the maximum allowable income.
8. The Developer shall initially and at least once a
year thereafter, submit to the Planning Director a schedule of
the rental for the Affordable Unit, and the Developer shall also
provide the Planning Director with information regarding the income
of the occupant of the Affordable Unit that is sufficient to enable
the Planning Director to determine whether that person or family
qualifies under the terms of this Agreement.
9. The parties agree that any breach of this Agree-
ment by the Developer will irreparably injure the City of Newport
Beach and that monetary damages, or any other legal remedy, would
be inadequate to remedy such a breach. The parties further agree
that the City, in the event of a breach of the Agreement by the
Developer, is entitled to obtain an Order of the Superior Court
requiring the Developer to specifically perform in accordance
-5-
R188 -F
04/18/85
with this Agreement, and that the
interim injunctive relief pending
In the event the City is required
tions of this Agreement, the City
reasonable attorney's fees and co
such litigation.
City would be entitled to
the issuance of such an Order.
to enforce the terms and condi-
shall be entitled to recover
sts incurred in conjunction with
10. Notices required or permitted hereunder shall be
sufficiently given if made in writing and delivered either per-
sonally or by registered or certified mail, postage prepaid, to
the following addresses, or to such other address as may be
designated for formal notice:
City of Newport Beach
City Manager
P. 0. Box 1768
Newport Beach, CA 92663 -3884
Wale Development
c/o Wale Development Corp.
17752 Mitchell, Suite E
Irvine, CA 92714
11. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and
assigns, and shall be recorded in the County Recorder's Office,
Orange County, California.
12. No change in or addition to this Agreement or any
part hereof shall be valid unless in writing and signed by or on
behalf of the parties hereto.
13. If any portion of this Agreement is held by a court
or arbitrator of competent jurisdiction to.be invalid, void and
unenforceable, the remainder of the provisions hereof shall remain
in full force and effect and shall in no way be affected, impaired
or invalidated.
J -6- ) 0
R188 -F
04/18/85
14. This Agreement constitutes the entire understanding
between the parties with respect to the subject mater hereof,
superseding all negotiations, prior discussions and preliminary
agreements or understandings, written or oral.
15. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of
California, and the Developer shall, in the performance of its
duties under this Agreement, comply with all applicable federal,
state and local fair housing laws.
16. The parties shall each execute and deliver or cause
to be executed and delivered such further instruments and documents
and shall take such other action as may be reasonably required to
more effectively carry out the intent and purpose of this Agreement.
IN WITNESS WHEREOF, the parties have executed this
Agreement on the day and year first above written.
ATTEST:
City Clerk
city attorney
-7- ) .4A )
R188 -F
04/18/85
Signature
Page for Affordable Housing Agreement
-8
WALE DEVELOPMENT,
a California gene
By: WALE
a Ca
al
,�,Z
R188 -F
04/18/85
STATE OF CALIFORNIA
ss.
COUNTY OF ORANGE
On , 1985, before me, the undersigned,
a Notary Public in and for said State, personally appeared
PHILIP R..MAURER, Mayor of the City of Newport Beach, and personally
known to me (on the basis of satisfactory evidence) to be the
person who executed the within instrument on behalf of the CITY
OF NEWPORT BEACH herein named and acknowledged to me that the City
of Newport Beach executed the within instrument pursuant to a reso-
lution of its City Council.
WITNESS my hand and official seal.
Notary Public
[SEAL]
STATE OF CALIFORNIA
ss.
COUNTY OF )
On this the /y a- day of 19,( , before me,
the undersigned, a No ary Public in and for said State, personally
appeared EDWARD H. WALE, personally known to me (or proved to me
on the basis of satisfactory evidence) to be the person who exe-
cuted the within instrument as the President, of WALE DEVELOPMENT
CORPORATION, the corporation that executed the within instrument on
behalf of WALE DEVELOPMENT, the partnership that executed the within
instrument, and acknowledged to me that such corporation executed
the same as such Partner and that such partnership executed the
same.
WITNESS my hand and off'c al seal.
Sign ture
[SEAL]
OFFICIAL SEAL
REEN E FITCH
UBLIC - CALIFORNIA ANGE COUNTY expires AUG 16, 1985
-9- � 5 .
EXHIBIT "A"
Tract 12208 recorded in Book Sf6Z , , Page / Z of
Miscellaneous Maps, Records of Orange County.
ATTACHMENT 4
Canyon Cove Affordable Housing Agreement
a5
4K
1
M
�o
TO BE RECORDED AND
WHEN RECORDED RETURN
cltl pEr p�N ,
City Clerk
City of Newport Beach
3300 Newport BoulevardCtpp
Newport Beach, CA 92663 C2-
5 86 =14:N, 15
t RECORDING REQUESTED BY
� CONTINENTAL LAND TITLE CO.
RECORDED IN OFFICIAL RECORDS
OF ORANGE COUNTY. CALIFORNIA
100 PM APR 11 '86
AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT is entered into this !. L— day of U�h 198 G ,
by and between THE CITY OF NEWPORT BEACH, a Municipal corporation and charter
city, (hereinafter "City ") and RUMNEY ENTERPRISES, INC., a California Corpo-
ration (hereinafter "Developer "), and is made with reference to the following
facts:
A. Developer is the owner of that certain parcel of land described
on Exhibit "A" attached hereto and located in the City of Newport Beach (herein-
after "The Property ").
B. On the 5th day of March 5, 1984, City approved Tentative Map of
Tract No. 12079 to permit development of The Property with a 14 -unit residential
condominium project (hereinafter "the Project ").
C. City has adopted Policy P -1 containing administrative guidelines
for implementation of the provisions of State law relative to low and moderate
income housing located within the Coastal Zone.
D. Pursuant to City's Policy P -1, the City Council has determined
that it would be feasible to require the inclusion of one dwelling unit afford-
abler to persons or families of median income (hereinafter the "Affordable Unit ")
within the-Project.
86= 145985
E. Whereas, City /and '_Developer desire to enter into this Agreement
establishing an Affordable Unit within The Project and providing for the proce-
dures for administering the Affordable Unit.
NOW, THEREFORE, in consideration of the mutual covenants, promises and
conditions stated below, the parties agree as follows:
AGREEMENTS
1. Developer, for itself and for its successors -in- interest, agrees
to provide, and maintain for a period of 10 years, one affordable housing unit
on the site of the Project. The Affordable Unit shall be a rental unit, and the
maximum rental rate that can be charged occupants of that unit shall be 27% of
the County median income, but shall not exceed 30% of the moderate income.
standard for a family of two (2)1as defined in Section 50093 of the Health and
Safety Code of the State of California. The rental rate may be adjusted to
reflect changes in the area median income.
2. The Affordable Unit shall be, for the duration of this Agreement
(10 years), occupied by persons or families earning 100 percent of County median
income, or less, but shall not exceed the moderate income standard as that term
is defined in Section 50093 of the Health and Safety Code for a family of two
3. The Affordable Unit shall be available for occupancy by persons
or a family earning 100 percent of County median income, or less, on or before
the date which is six (6) calendar months after the first residential unit
within the Project is occupied, and the obligation of the Developer to maintain
the Affordable Unit for a 10 -year period shall commence as of the date the
Affordable Unit is occupied by a qualifying person or family.
- 2 - -1
-86= 145985
4. The Affordable/Unit shall contain one bedroom, and shall contain
substantially the same amenities as other units with the Project with the
exceptions of upgraded appliances, light and other fixtures and trim package.
5. The Developer will be responsible for ensuring that the persons
or family who rent the Affordable Unit properly qualify as persons or a family
earing 100 percnet, or less, of the area median income. In order to ensure that
the perons or family are properly qualified in terms of income level, and to
ensure that the process by which the occupants of the Affordable Units are
selected is fair and equitable, the Developer shall do the following:
a. Advertise the availability of the Affordable Units on
at least two separate occasions in a newspaper of general circulation
within the County of Orange;
b. Allow a .reasonable period of time for individuals or
families to apply with the Developer for rental of an Affordable Unit,
and accept applications for occupancy for a period of not less than 10
days after the last date on which the availability of the unit is
advertised;
C. Develop for use a form that requires all information
necessary to make a determination of the income earned by the person
or family applying, and the Developer shall investigate the facts and
representations contained in all applications submitted and /or take
other appropriate action to attempt, in good faith, to confirm that
those facts and representations are accurate.
d. Select the occupant of the Unit through a random system
such as a lottery; no preference whatsoever shall be given in the
selection to any applicant who is related, either by blood or mar-
riage, to the Developer or to any person employed by the Developer, by
- 3 - �
} .
,.
-86= 145985
4. The Affordable/Unit shall contain one bedroom, and shall contain
substantially the same amenities as other units with the Project with the
exceptions of upgraded appliances, light and other fixtures and trim package.
5. The Developer will be responsible for ensuring that the persons
or family who rent the Affordable Unit properly qualify as persons or a family
earing 100 percnet, or less, of the area median income. In order to ensure that
the perons or family are properly qualified in terms of income level, and to
ensure that the process by which the occupants of the Affordable Units are
selected is fair and equitable, the Developer shall do the following:
a. Advertise the availability of the Affordable Units on
at least two separate occasions in a newspaper of general circulation
within the County of Orange;
b. Allow a .reasonable period of time for individuals or
families to apply with the Developer for rental of an Affordable Unit,
and accept applications for occupancy for a period of not less than 10
days after the last date on which the availability of the unit is
advertised;
C. Develop for use a form that requires all information
necessary to make a determination of the income earned by the person
or family applying, and the Developer shall investigate the facts and
representations contained in all applications submitted and /or take
other appropriate action to attempt, in good faith, to confirm that
those facts and representations are accurate.
d. Select the occupant of the Unit through a random system
such as a lottery; no preference whatsoever shall be given in the
selection to any applicant who is related, either by blood or mar-
riage, to the Developer or to any person employed by the Developer, by
- 3 - �
86 =145985
the City of Newport Beach, or by any governmental agency. However,__
nothing herein shall preclude the selection of one or such persons
through the random system of selection used, and nothing herein shall
preclude the rejection of a person selected through the random system
for any of the following objective criteria provided the reason for
rejection is provided to the rejected person(s): poor or inadequate
credit rating; unstable or inadequate employment history; inability-or
unwillingness to provide bank account information; unstable tenancy
history or inability or unwillingness to provide tenant reference.
6. In the event that an Affordable Unit is rented to an individual
or family who does not qualify under the terms of this Agreement, the Developer
shall, within 90 days from the date on which it learns of the failure of the
individual or family to qualify, take action necessary to remove the tenant from
the premises and rent the unit to a qualified tenant. In the event that
Developer is unable, for any reason within his control, to terminate the tenancy
of the occupant within 90 days, the Developer shall provide a temporary
replacement unit within the City of Newport Beach, affordable to and occupied by
a person or family which qualifies under this Agreement.
7. The Developer shall require that the person or family selected to
occupy the Affordable Unit enter into a rental agreement which shall contain at
least the following terms:
a. The renter shall be required, at least once a year, to
provide the Developer with information regarding the income of the
person or family sufficient to enable the Developer to determine if
the person or family still qualifies for occupancy; and
b. A provision that gives the Developer the right, in the
event of a material misrepresentation made by a person or family with
- 4 - 09
I
86145985
respect to income, or in the event the person or family no longer
qualifies, as provided in this Agreement, to terminate the tenancy
upon 30 days written notice. When requalifying a tenant, an income
increase occurring during the previous year of tenancy shall not
disqualify a previously qualified tenant if the resulting income is
not more than 10% higher than the maximum allowable income.
B. The Developer shall initially and at least once a year-thereaf-
ter, submit to the Planning Director a schedule of the rental for the Affordable
Unit, and the Developer shall also provide the Planning Director with informa-
tion regarding the income of the occupant of the Affordable Unit that is suffi-
cient to enable the Planning Director to determine whether that person or family
qualifies under the terms of this Agreement. City agrees that Exhibit "B" shall
be deemed to be adequate income information for this provision.
9. The parties agree that any breach of this Agreement by the
Developer will irreparably injure the City of Newport Beach and that monetary
damages, or any other legal remedy, would be inadequate to remedy such a breach.
The parties further agree that the City, in the event of a breach of the Agree-
ment by the Developer, is entitled to obtain an Order of the Superior Court
requiring the Developer to specifically perform in accordance with this Agree-
ment, and that the City would be entitled to interim injunctive relief pending
the issuance of such an Order. In the event the City is required to enforce the
terms and conditions of this Agreement, the City shall be entitled to recover
reasonable attorney's fees and costs incurred in conjunction with such litiga-
tion.
10. Notices required or permitted hereunder shall be sufficiently
given if made in writing and delivered either personally or by registered or
- 5 - 5 b
' 86.145985
certified mail, postage prepaid, to the following addresses, or to such other
address as may be designated for formal notice:
City of Newport Beach
City Manager
P.O. Box 1768
Newport Beach, CA 92658 -8915
Rumney Enterprises, Inc.
c/o Richard Rumney
5 Northgrove
Irvine, CA 92714 s __
11. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors and assigns, and shall be recorded
in the County Recorder's Office, Orange County, California.
12. No change in or addition to this Agreement or any part hereof
shall be valid unless in writing and signed by "or on behalf of the parties
hereto.
13. If any portion of this Agreement is held by a court or arbitrator
of competent jurisdiction to be invalid, void and unenforceable, the remainder
of the provisions hereof shall remain in full force and effect and shall in no
way be affected, impaired or invalidated.
14. This Agreement constitutes the entire understanding between the
parties with respect to the subject matter hereof, superseding all negotiations,
prior discussions and preliminary agreements or understandings, written or oral.
15. This Agreement shall be governed by, and construed and enforced
in accordance with, the laws of the State of California, and the Developer
shall, in the performance of its duties under this Agreement, comply with all
applicable Federal, State and local Fair Housing Laws.
16. The parties shall each execute and deliver or cause to be execut-
ed and delivered such further instruments and documents and shall take such
- 6 '31
86� 1 45985
other action as may be reasonably required to more effectively carry out tJie
intent and purpose of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement on the
day and year first above written.
ATTEST:
W v4=4
-1 Wall
APPRO D AS TO FORM:
City Attorne
STATE OF CALIFORNIA,
COUNTY OF orange u.
CITY OF NEWPORT BEACH
86 :145985
On this 41tt` day of in the year/ �1 6 , bef me the undersigned a
Notary Public in and for said Stat6 personally appeared yzev known
to me to be the Mayor of the City of Newport Beach and ,,,�, f� .�;, known to
me to be the City Clerk of the City of Newport Beach and known to me tc e the persons
who executed the within instrument on behalf of said governmental agency, and
acknowledged to me that such governmental agency executed the same.
WITNESS my hand and official seal.
Noh Public in and for said State.
OFFICM SEAT
DOROTHY L. PALEN
NOTARY PUBLIC f.GLIFORNIA
_ PRINCIpQ OFFICE IN
ORANGE CWNTY
My CAmmiiTian Eap. Apr. 5, 1989 n a
STATE OF CALIFORNIA
ss.
COUNTY OF ORANGE
86- 14596
On , 19 , before me, the under-
signed, a Notary Pub_ _ and for said State, personally appeared
Mayor of
the
City of
IoT_—t Beach, personally
known to me (or proved
to me on
the basis
c= = isfactory evidence)
to be the person who
executed
the
within i
=Ant on behalf of the
CITY OF NEWPORT BEACH,
herein named
and ack=c_sged to me that the
City of Newport Beach
executed
the
within
gent pursuant to a
resolution of its City
Council.
WITNESS my 1z� =d official seal.
[SEAL]
STATE OF CALIFORNIA
ss.
COUNTY OF ORANGE
NOTARY PUBLIC
On this the day of 198k, before me, the
undersi. zd�,�t$ _i.c in a d for aid State, personally ap-
peared tl.:;:� , personally known to me
(or proved to me or, = --as Ys of satisfactory vidence) to be the
person who executed `- --'yin strument as the
of ry /fin r(L Zae+S ! , the Corporation that executed
the within irfbtrunena _ acknowledged to me that such corporation
executed the within i_ — ent pursuant to its by -laws or a resolution
of its board of direc-�
WITNESS my `= End official seal.
[SEAL] G ,,,P.c —
NOTARY PUBLIC
OFFUNAL SEAL
HOUSE2 BERNARD F. SELZ
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EXHIBIT "A"
TRACT 12079 RECORDED IN BOOK 556
c:
PAGE 42 & 43 OF
MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY.
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