HomeMy WebLinkAboutC-7537-1 - Afforable Housing Agreement for 849 West 15th Street (Seashore Apartments)TO BE RECORDED AND
WHEN RECORDED RETURN TO:
City Clerk/t°•. �'
City of Newport Bea%
3300 Newport Boulevard
Newport Beach, CA 92663
EXEMPT REOORDI MG Pr , T PER
+�I��ERCI°J'E;►T ('ODE 51!13
FJ(EMP.T.
C2
87-35224)
RECORDED IN OFFICIAL RECORDS
OF ORANGE COUNTY CALIFORNIA
-1 LO PM JUN 2 2 '87
1 4 Q ~+UNTY
COU
arouwy
AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT is entered into this - G day of, 198,
by and between THE CITY OF NEWPORT BEACH, a Municipal corporation and charter
city, (hereinafter "City") and SEASHORE APARTMENTS, a Cali
(hereinafter "Developer"), and is made with reference to th / yl ,
lowinjl I s:
00 CRY CLERK
INV 0 Im
RECITALS r MY of
WHEREAS, Developer is the owner of that certain aroel o IN.land -A
scribed on Exhibit "A" attached hereto and located in the City of+N�g'each
(hereinafter "The Property"); and
WHEREAS, on April 27, 1987, City approved the Developer's request for
a Density Bonus pursuant to Section 65915 of the California Government Code so
as to construct an apartment complex with 15 units affordable to lower income
families; and
WHEREAS, the City's Housing Element of the General Plan has estab-
lished goals and objectives pertaining to preserving and increasing rental
housing opportunities for lower income households; and
WHEREAS, City and Developer desire to enter into this Agreement
establishing certain criteria related to a thirty (30) year period of af-
fordability, tenancy, and rents within this housing development; and
WHEREAS, the City has granted Developer a density bonus so as to
guarantee the affordability of the development for the thirty (30) year period,
87-35L�43
and City and Developer shall execute this affordable housing agreement to be
recorded against the Property; and
WHEREAS, the parties, through this agreement, wish to establish
procedures for the administration of the affordable housing requirements.
NOW, THEREFORE, in consideration of the mutual covenants, promises and
conditions stated below, the parties agree as follows:
1. Developer, for itself and for its successors -in -interest, agrees
to provide, and maintain for a period of thirty (30) years, a 15 -unit rental
apartment development consisting of 15 two-bedroom units'to "lower income"
individuals or families as that term is herein defined, at restricted rents, as
that term is herein defined.
2. As used herein, the term "lower income" shall mean an individual
or individuals, or families, whose income does not exceed eighty percent (80%)
of the Orange County annualized median family income as periodically published
by the County of Orange, regardless of family size. The parties to this agree-
ment and their successors or assigns, are to agree on a substitute source if
this income data is no longer published or periodically updated by the County of
Orange.
3. As used herein, the term "Restricted Rents" shall mean the
maximum rent which may be charged and which may be adjusted from time to time by
the Developer. The maximum monthly rent which may be charged for the 15 two
bedroom units is the Section 8 Fair Market Rent (FMR) as established and pub-
lished by the Department of Housing and Urban Development (HUD). The rental
rates may be adjusted periodically to reflect changes in the Section 8 FMR as
published by HUD. The parties to this agreement and their successors or
- 2 -
)Z43
assigns,
assigns, are to agree on a substitute source if this rent data is no longer
published or periodically updated by HUD.
4. The rent paid by existing tenants shall not be increased by more
than 6% in any 6 month period or within 6 months of occupancy by a tenant and
shall be within the established rent standard at all times.
5. All of the 15 units shall be offered on a preferential basis to
tenants possessing an "active" Section 8 Existing Rental Assistance Certificate
or Voucher and currently eligible to receive rental assistance from the Section
8 Existing Rental Assistance Certificate or Voucher Program.
6. The Developer shall be responsible for ensuring that the "lower
income" individuals or families as defined herein, who rent a unit in this
development, properly meet the income limits set forth herein. In order to
ensure that the individuals or families 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, at a
minimum for the initial occupancy, do the following:
a. Advise the Orange County Housing Authority, in writing,
of the availability of the affordable units, and advertise the
availability of the Affordable Units on at least two separate oc-
casions in a newspaper of general circulation within the County of
Orange;
b. Allow a reasonable period of time for individuals or
families to be assisted by the Orange County Housing Authority or 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;
- 3 -
87.-35,'43
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. After an impartial screening of applicants, the devel-
oper shall preferentially accept Section 8 Existing Certificate or
Voucher holders without prejudice. If a sufficient number of accept-
able Section 8 Certificate or Voucher holders are not available to
complete the initial occupancy, vacancies may be filled through a
method of randomly selecting qualified tenants from a list of all
known qualified prospective tenants that have expressed an interest in
renting a unit.
7. When no acceptable Section 8 Existing Certificate or Voucher
tenants are available, vacancies occurring after the initial occupancy may be
filled through a method of randomly selecting qualified tenants from a list of
all known qualified prospective tenants that have expressed an interest in
renting a unit. All prospective tenants must be advised that they must renew
their interest after a period of one year.
B. 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, replace the occupant or occupants of that unit
with an individual or a family who do qualify as provided in this Agreement.
-- 4 -
8T.-352243
9. The Developer shall require that any individual or family occupy-
ing a unit in this development enter into a rental agreement which shall contain
at least the following terms:
a. The occupant or occupants of any unit shall be
required, at least once a year, to provide the Developer under the
penalty of perjury, with information regarding the income of the
occupants to determine if the individual or family still qualifies for
occupancy as set forth herein. This information shall also be provid-
ed to the City on an annual basis; and
b. A provision that gives the Developer the right, in the
event of a material misrepresentation made by an individual or family
with respect to income, or in the event the individual 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.
10. The parties agree that any breach of this Agreement by the
Developer shall cause irreparable injury to the City of Newport Reach 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 with this
Agreement, 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
- 5 -
877352241
to recover reasonable attorney's fees and costs incurred in conjunction with
such Litigation.
11. Notices required or permitted hereunder shall be sufficiently
given if made in writing and delivered either personally 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.O. Box 1768
Newport Beach, CA 92658-8915
Seashore Apartments
c/o Joseph Irani
3701 Seashore
Newport Beach, CA 92663
and
c/o Ilsa Sultanian
2729 Sandpiper Drive
Costa Mesa, CA 92626
12. 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.
13. 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.
14. 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.
15. 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.
- 6 -
87,=35224
16. 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.
17. The parties shall each execute and deliver or cause to be execut-
ed 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.
- 7 -
87.-35z�4 �
CITY OF NEWPORT BEIpq
STATE OF CALIFORNIA
IP ss.
COUNTY OF
On this
before me, the p4di
•.,�� oFr•ICIALSEAL
DOROTHY L. PALEN
mom' NOTAfrfpubUC-CALIFORNIA
pp=IPAL OFFICE IN
ORANGE COUMV
Illy CprttroiWo EMD. Apr. S. 1989
ACKNOWLEOGM[NT–Ge fat–Welcotls Form 23XA–Rw 5.82
01982 WOLIOITS. INC. Mice Was 8.2)
87-352243
c`
day of'�`� in the year 19�
;d, a NotaryPub tc in and tar said State, personally appeared
,vt7lulai ' z 1'J' ` , personally known to me
(or proved to me do the basis of s tislactory evidence) to be the person_ whose name
bt - subscribed to the within instrument, and acknowledged to me that the
executed it.
WITNESS my hand and official seal. AL
Notary Public�id and for said State.
SEASHORE APARTMENTS
e( a California Partnership
By - 1/ A,,�
septi H. Irani
By: /(V S Lt f•1 O.1.(, r I
Ilse S. Sultanian
STATcOF'ALIFORNIA )
COUNTYOr_— _Orange )ss.
On 2 G -Ka i+ 19 a % before me, the undersigned, a Notary Public in and for
said State, personally appeared Jose h H . Irani &
Ilse S. Sultanian
Personally known to me (or proved to me on the basis of satis-
factory evidence) to be the person that executed the within
instrumental_. Se4sh e Ap1S. .–partner(s),
onbehatlof— Seashore Apartments,
A California --
_ the partnership
therein named and acknowledged to me [hat the partnership
executed it.
WITNESS my hand a fficialrseaf.�,
Signature___ ��.�
G i S. Cicero
-?, G"I S. CICERO
. �'• '•' NOTARY I JiLIC • CALWORNIA 4
:JC
ur y;•,J, GPJt:dGECCUNTY
L My Comm E.p tet M.0. J, 1988
(This area for official notarial searl
87.-352241
EXHIBIT "A"
The land referred to in this Report is situated in the State of California,
County of ORANGE and is described as follows:
The East 72.60 feet of Lot 917, First Addition to Newport Mesa Tract,
as shown on a map recorded. in Book 8, Page 61, of Miscellaneous Maps,
in the records of Orange County, California.
EXHIBIT "B"
Property Legal Description
THE EAST 72.60 FEET OF LOT 917, OF THE FIRST ADDITION TO NEWPORT MESA
TRACT, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 8, PAGE 61, OF
MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY. COMMONLY KNOWN AS
849 WEST 15TH STREET, NEWPORT BEACH, CALIFORNIA.