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HomeMy WebLinkAboutC-7537-2 - Termination of Afforable Housing Agreement for 849 West 15th Street (Seashore Apartments)Batch 3882417 Confirmation RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Attn: City Clerk's Office City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 Page 4 of 5 Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder 111111111111111111111111111111111111111111111111111111111111111111111 NO FEE *$ R 0 0 1 0 4 0 2 9 3 5$* 2018000369453 4:23 pm 10110/18 37 405 Al2 14 0.00 0.00 0.00 0.00 39.00 0.00 0.000.000.00 0.00 SPACE ABOVE THIS LINE FOR RECORDER'S USE EXEMPT FROM RECORDING_ FEE PURSUANT TO GOVT CODE §§ 27383 TERMINATION OF AFFORDABLE HOUSING AGREEMENT WHEREAS, the CITY OF NEWPORT BEACH, a Califomia municipal corporation and charter city ("City"), and the SEASHORE APARTMENTS, a California partnership, ("Developer"), entered into that certain Affordable Housing Agreement, dated May 26, 1987, and recorded in the official records of Orange County, California, on June 22, 1987, as document number 87-352243, a true and correct copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference ("Agreement"); and WHEREAS, pursuant to the Agreement. City approved Developer's request for a density bonus to construct a multifamily residential project of fifteen dwelling units, commonly known as the Seashore Apartments, located at 849 West 15th Street, in the City of Newport Beach, Califomia (APN No. 424-011-06), and as legally described in Exhibit "B," attached hereto and incorporated herein by this reference ("Property"); and WHEREAS, pursuant to the Agreement, Developer promised, covenanted, and agreed to maintain the fifteen dwelling units constructed on the Property as affordable to lower income families for a period of thirty (30) years; and WHEREAS, pursuant to the Agreement, the Agreement was made binding upon and inured to the benefit of the parties respective successors and assigns; and WHEREAS, Pelican Investments Number 8 LLC, a Califomia limited liability company, is the successor in interest to Developer and the legal owner of all rights, title, and interest in the Property; and WHEREAS, the obligation under the Agreement to maintain the fifteen dwelling units constructed on the Property as affordable to lower income families for thirty years expired July 1, 2018. https:Hgs.secure-recording.com/Batch/Confirmation/3882417 10/11/2018 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Attn: City Clerk's Office City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 SPACE ABOVE THIS LINE FOR RECORDER'S USE EXEMPT FROM RECORDING FEE PURSUANT TO GOVT CODE §§ 27383 TERMINATION OF AFFORDABLE HOUSING AGREEMENT WHEREAS, the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and the SEASHORE APARTMENTS, a California partnership, ("Developer"), entered into that certain Affordable Housing Agreement, dated May 26, 1987, and recorded in the official records of Orange County, California, on June 22, 1987, as document number 87-352243, a true and correct copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference ("Agreement"); and WHEREAS, pursuant to the Agreement, City approved Developer's request for a density bonus to construct a multifamily residential project of fifteen dwelling units, commonly known as the Seashore Apartments, located at 849 West 15th Street, in the City of Newport Beach, California (APN No. 424-011-06), and as legally described in Exhibit "B," attached hereto and incorporated herein by this reference ("Property"); and WHEREAS, pursuant to the Agreement, Developer promised, covenanted, and agreed to maintain the fifteen dwelling units constructed on the Property as affordable to lower income families for a period of thirty (30) years; and WHEREAS, pursuant to the Agreement, the Agreement was made binding upon and inured to the benefit of the parties respective successors and assigns; and WHEREAS, Pelican Investments Number 8 LLC, a California limited liability company, is the successor in interest to Developer and the legal owner of all rights, title, and interest in the Property; and WHEREAS, the obligation under the Agreement to maintain the fifteen dwelling units constructed on the Property as affordable to lower income families for thirty years expired July 1, 2018. NOW, THEREFORE, the parties hereto agree to terminate the Agreement, and thereby terminate all promises, covenants, agreements, rights, duties, and obligations under the Agreement to maintain the fifteen dwelling units constructed upon the Property as affordable housing units and remove the affordable housing unit obligation as a matter affecting title to the Property. IN WITNESS WHEREOF, this instrument is duly executed this `ate day of October 2018. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE By: Ar a on C. Harp City Attorney ATTEST: CITY OF NEWPORT BEACH, a California municipal corporation By: Gr K. Leung City Manager PELICAN INVESTMENTS NUMBER 8 LLC, a California limited liability company c By: By: J-(,� T� Leilani I. Brown v Title: Prn I ci (r'l City Clerk By: - A / 4 Title: [END OF SIGNATURES] ;2t-1 FOV-: Owners must sign in the presence of notary public ATTACHMENTS: Exhibit A — Affordable Housing Agreement, dated May 26, 1987 Exhibit B — Legal Description of Subject 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 oV'C( qe- I ss. On lu I `( I Vi - , 20 W before me, i`� Y`4 I ► ��h�u� Notary Public, personally appeared -TT--,!Lj 1i 1 ei,, Le - proved to me on the basis of satisfactory evidence to be the person subscribed to the within instrument ;and acknowledged to me that Fj6/she/t /her/tp(eir authorized capacity�s), and that by s/her/tf it signatures personl- (), or the entity upon behalf of which the pefSon) acted, executed who whose nameV) islWe executed the same in on the instrument the 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 rr{v hdnd Andofficial seal. Sign ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of I ss. On 20_ Notary Public, personally appeared before me, I;���R ` POONEH ASHRAFI COMM.# 2233201 ° NOTARY PUBLIC. CALIFORNIA i ORANGE COUNTY d ��� My Comm. Expires Mar. 4, 2021 (seal) proved to me on the basis of satlsf dory evidence to be the person(s) whose name(s) is/are subscribed to the within instrumen nd acknowledged to me that he/she/they executed the same in his/her/their authorized capacit es), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon half of which the person(s) acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true Ar1d correct. WITNESS W hand and official seal. Signature (seal) EXHIBIT "A" AFFORDABLE HOUSING AGREEMENT Instrument No. 87-352243 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.