HomeMy WebLinkAboutC-8530-2 - Affordable Housing Agreement (Newport Crossings Mixed Use Project)I
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AFFORDABLE HOUSING AGREEMENT
(Newport Crossings Mixed Use Project)
BY AND BETWEEN THE
City of Newport Beach,
a California municipal corporation
and
Aryabhata Group LLC,
a Delaware limited liability company
AFFORDABLE HOUSING AGREEMENT
(Newport Crossings Mixed Use Project)
This AFFORDABLE HOUSING AGREEMENT ("Agreement") is dated as of
INIGVy,M%tV_ q , 2023 ("Effective Date"), and is entered into between the CITY
OF NEWPORT BEACH, a California municipal corporation ("City"), and ARYABHATA
GROUP LLC, a Delaware limited liability company ("Developer"). City and Developer may
be referred to herein as "Party" or "Parties". City and Developer enter into this Agreement
with reference to the following recitals of fact (each, a "Recital"):
RECITALS
A. Developer is the owner of that certain real property consisting of approximately
5.69 net acres situated in the Airport Area in the City of Newport Beach, County of
Orange, State of California, addressed as 1701 Corinthian Way; 1660 Dove Street,
4251, 4253, and 4255 Martingale Way; and 4200, 4220, and 4250 Scott Drive
[APN 427-172-02, 427-172-03, and 427-172-061, as more particularly depicted in
Exhibit "A" attached to this Agreement and incorporated herein ("Property").
B. On February 21, 2019, the Planning Commission approved the Newport Crossings
Mixed Use Project (PA2017-107) which includes developing the Property into a
residential project with up to 350 residential units, 7,500 square feet of commercial
space, and 0.5 acres of park space, as depicted on Exhibit "B" attached to this
Agreement and incorporated herein ("Project").
C. Project approval included the adoption of an Affordable Housing Implementation
Plan No. AH2O18-001, dated August 18, 2018 ("AHIP"), which implements
affordable housing requirements for the Project pursuant to the Residential
Overlay of the Newport Place Planned Community and density bonus and
incentives/concessions pursuant to Chapter 20.32 (Density Bonus) of the Newport
Beach Municipal Code ("NBMC") and California Government Code Section 65915
("State Density Bonus Law"). The AHIP is attached hereto and incorporated herein
by reference as Exhibit "C."
D. Pursuant to the State Density Bonus Law and the City's density bonus
requirements, the City granted a maximum density bonus of thirty-five percent
(35%) above the maximum number of units allowed by the City's General Plan in
exchange for construction of a minimum number of affordable housing units. With
the approved maximum density bonus of 35%, the Project is permitted to construct
up to 91 additional units above the 259 base units ("Base Units") for a total of 350
dwelling units.
E. The Newport Place Development Standards ("Development Standards") provide
for a maximum residential density of 50 dwelling units per acre. The project is
planned to consist of 350 total dwelling units based on the current maximum
residential density per the Development Standards ("Base Units") and 91 density
bonus units. The Development Standards require that thirty percent (30%) of the
Newport Crossings Affordable Housing Agreement Page 2 of 18
Base Units within a residential development shall be affordable to Lower Income
Households. The affordable housing requirement for this project is seventy-eight
(78) units ("Affordable Dwelling Units") (30% of 259 Base Units).
F. Of the required 78 Affordable Dwelling Units, Developer will provide 52 units (20%
of Base Units) affordable to Lower 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 thirty-
five percent (35%) density bonus. Rents for the Required Density Bonus Lower
Income Units will be computed in accordance with California Health and Safety
Code Section 50053, as required by California Government Code Section
65915(c)(1). Developer will provide the remainder of the Affordable Dwelling Units
required by the Development Standards by providing twenty-six (26) units
affordable to Lower Income Households ("Development Standards Additional
Lower Income Units"). Rents for those units will be computed based on income
limits for Lower Income Households, as published annually by the Department of
Housing and Community Development.
G. Developer intends to operate the Project in part as a rental community. The fifty-
two (52) Required Density Bonus Lower Income Units will remain rent restricted
for a minimum of fifty-five (55) years, per California Government Code Section
65915(c)(1), well in excess of the thirty (30) year affordability term set forth in the
Development Standards. Rents for the twenty-six (26) Development Standards
Additional Lower Income Units will remain restricted for the thirty (30) year term
required by the Development Standards.
H. NBMC Section 20.32.100 requires that an applicant who seeks a density bonus
enter into an affordable housing agreement with the City. The AHIP also requires
that the applicant enter into an affordable housing agreement in recordable form
prior to obtaining the first building permit for any residential unit and which ensures
that the maximum rents for the affordable units will be calculated using the
methodologies set forth in the AHIP. The Parties intend for the Declaration of
Affordable Housing Covenants, Conditions, and Restrictions, substantially in the
form as Exhibit "D" attached to this Agreement and incorporated herein
("Declaration"), to satisfy the requirement for a recorded affordable housing
agreement.
NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION AND THE
PROMISES AND COVENANTS OF CITY AND DEVELOPER SET FORTH IN THIS
AGREEMENT, CITY AND DEVELOPER AGREE, AS FOLLOWS:
TERMS AND CONDITIONS
1. DEFINITIONS
1.1 Definitions. Unless terms are otherwise defined under different sections of
this Agreement, the following words, terms and phrases are used in this Agreement with
the following meanings:
Newport Crossings Affordable Housing Agreement Page 3 of 18
1.1.1 Adjusted for Household Size Appropriate for the Unit. The number
of bedrooms in an Affordable Dwelling Unit appropriate to a household size used to
determine the maximum Affordable Rental Price for each unit size. The number of
persons appropriate to a unit size shall mean household of one person in the case of a
studio unit, two persons in the case of a one -bedroom unit, three persons in the case of
a two -bedroom unit, four persons in the case of a three -bedroom unit, and five persons
in the case of a four -bedroom unit.
1.1.2 Affordability Period. The period of time under which the Affordable
Dwelling Units are subject to affordable housing restrictions, including an Affordable
Rental Price. This period of time will commence on the date the final certificate of
occupancy is issued for the last unit constructed in the applicable Phase providing such
Affordable Dwelling Units and shall be a minimum of fifty-five (55) years for the fifty-two
(52) Required Density Bonus Lower Income Units and a minimum of thirty (30) years for
the twenty-six (26) Development Standards Additional Lower Income Units.
Commencement of the Affordability Period shall be memorialized in writing pursuant to
the Notice of Affordability Restrictions as set forth in the Declaration.
1.1.3 Affordable Dwelling Unit(s). The seventy-eight (78) units within the
Project that are subject to affordable housing restrictions, and which collectively consist
of the fifty-two (52) Required Density Bonus Lower Income Units and the twenty-six (26)
Development Standards Additional Lower Income Units.
1.1.4 Affordable Rental Price. The maximum rent that, when added to the
utility allowance, does not exceed the following: (i) for the Required Density Bonus Lower
Income Units, thirty percent (30%) of sixty percent (60%) 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, and (ii)
for the Development Standards Additional Lower Income Units, thirty percent (30%) of
eighty percent (80%) 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. Current rents can be found in Exhibit "E"
attached hereto and incorporated herein.
1.1.5 Area Median Income. The area median income for Orange County
as published annually by the California Department of Housing and Community
Development and determined in accordance with the U.S. Department of Housing and
Urban Development ("HUD") criteria then in effect and published from time to time. For
purposes of this Agreement, the qualifying limits shall be those limits for the County, as
set forth in Title 25, California Code of Regulations, section 6932, as may be amended,
modified or recodified from time to time.
1.1.6 Declaration of Affordable Housing Covenants, Conditions and
Restrictions ("Declaration"). That certain Declaration of Affordable Housing Covenants,
Conditions and Restrictions to be entered into by and between City and Developer,
referencing the applicable Affordability Period and other affordability requirements for the
Affordable Dwelling Units, substantially in the form of Exhibit "D", attached hereto and
Newport Crossings Affordable Housing Agreement Page 4 of 18
incorporated herein. The Declaration shall be recorded with the Orange County Clerk
Recorder's Office following issuance of the certificate of occupancy for the final Affordable
Dwelling Unit of each applicable Phase.
1.1.7 Lower Income Households. As defined in California Health and
Safety Code Section 50079.5, households earning 80 percent (80%) or less of area
median income, adjusted for family size.
2. CONSTRUCTION OF AFFORDABLE DWELLING UNITS
2.1 Construction of Affordable Dwelling Units. The Project will be developed in
compliance with a construction schedule as approved in writing by City prior to any
commencement of construction of the Affordable Dwelling Units ("Construction
Schedule") which may include phases in a scope, development proportion and interval as
may be required by Developer to timely complete construction of the Project (hereinafter,
"Phase" or "Phases").
2.2 Costs and Quality of Construction. All costs for acquiring the Property,
planning, designing and constructing the Project shall be borne exclusively by Developer.
Each Affordable Dwelling Unit shall meet HUD Section 8 Housing Quality Standards, local
and state housing and building codes, and shall be free and clear of lead -based paint
hazards. Developer shall maintain, at Developer's sole cost and expense, the Affordable
Dwelling Units in good condition, good repair and in decent, safe, sanitary and habitable
living conditions during the term of this Agreement.
2.3 Affordable Dwelling Unit Number, Size and Location.
2.3.1 Unit Location. The Affordable Dwelling Units shall be dispersed
throughout the Project or clustered in two or more sections of the Project.
2.3.2 Unit Bedrooms and Size. Developer proposes to include the
following unit types and quantities within the Project:
Development
Required
Standards
Density
Additional
Total
Bonus Lower
Lower Income
Affordable
Unit Type
Total Units
Income Units
Units
Units
Studio
29
13
7
20
1 Bedroom
197
38
18
56
2 Bedroom
124
1
1
2
Total
350
52
26
78
Notwithstanding the foregoing, Developer may make minor changes to unit size and
bedroom breakdown.
Newport Crossings Affordable Housing Agreement Page 5 of 18
2.1 No Joint Venture. City and Developer are not entering into a joint venture.
Nothing in this Agreement shall be deemed to constitute approval for Developer or any of
Developer's employees or agents, to be the agents or employees of City.
3. TAXES AND ASSESSMENTS
Developer, and any approved successor, shall pay prior to delinquency all real
estate taxes and assessments on the Property so long as Developer or its approved
successor retains any ownership interest therein. Developer shall remove or have
removed any levy or attachment made on the Property or any part thereof, or assure the
satisfaction thereof within a reasonable time but in any event prior to any sale or transfer
of all or any portions thereof. Notwithstanding the above, Developer shall have the right
to contest the validity or amounts of any tax, assessment, or encumbrance available to
Developer in respect thereto, and nothing herein shall limit the remedies available to
Developer in respect thereto.
4. COVENANTS
4.1 Income Restriction. The Affordable Dwelling Units shall be restricted to
occupancy by Lower Income Households at an Affordable Rental Price, as further set
forth in the AHIP. Notwithstanding the foregoing, households with less income than the
Lower Income Households may also occupy the Affordable Dwelling Units.
4.2 Residential Use. Without the City's prior written consent, which consent may
be given or withheld in its sole and absolute discretion, none of the Affordable Dwelling
Units in the Project will at any time be utilized on a transient basis or will ever be used as
a hotel, motel, dormitory, fraternity house, sorority house, rooming house, nursing home,
hospital, sanitarium, or trailer court or park, nor shall the Affordable Dwelling Units be
used as a place of business except as may otherwise be allowed by applicable law.
4.3 Term. The applicable parcel(s) of the Property with Affordable Dwelling
Units shall be bound for a minimum of fifty-five (55) years for the fifty-two (52) Required
Density Bonus Lower Income Units and for a minimum of thirty (30) years for the
Development Standards Additional Lower Income Units, commencing upon the issuance
of the certificate of occupancy for the last unit constructed in the applicable Phase
providing such Affordable Dwelling Units. For illustration purposes only, if one Phase
contains 78 Affordable Dwelling Units, the term for the 78 Affordable Dwelling Units will
commence upon issuance of the certificate of occupancy for the 78th unit, and the term
for Affordable Dwelling Units constructed on a separate Phase may be subject to a
different term, based upon issuance of the certificate of occupancy for such separate
Phase.
4.4 No Subordination. Developer agrees that any encumbrance to the
Property, or part of the Property, or any improvements on the Property which contains the
Affordable Dwelling Units, with any conventional mortgage, construction, bond financing
or security interest to secure financing with respect to the construction, development, use,
or operation of the Project, shall be subordinate to this Agreement and the Declaration.
Newport Crossings Affordable Housing Agreement Page 6 of 18
4.5 Covenants Recorded Against The Property.
4.5.1 All of the covenants and restrictions set forth herein shall be
equitable servitudes and covenants running with the land pursuant to applicable law,
including, without limitation, California Civil Code section 1468. Each covenant to do or
refrain from doing some act on or affecting the Project is for the benefit of the Property.
Each covenant shall run with the Project, and any portion thereof, as applicable, and shall
benefit or be binding upon each successive owner during its ownership of the Property.
The covenants herein contained shall, subject to the provisions as to assignment, apply
to and bind the heirs, successors, executors, administrators and assigns of all the parties
hereto; and all of the parties hereto shall be jointly and severally liable hereunder.
4.5.2 Recordation. The Declaration shall only be recorded on parcels
containing Affordable Dwelling Units.
4.6 Termination. Upon expiration of the final Affordability Period, Developer and
City shall execute and record necessary document(s) to terminate this Agreement and
remove the effect of the recorded Declaration from the Property. The document(s) shall
be provided by Developer and subject to verification and approval by the City Attorney.
5. QUALIFYING PROSPECTIVE HOUSEHOLDS
5.1 Notice. At least thirty days prior to offering the Affordable Dwelling Units for
lease or rent to the general public, Developer shall provide City with notice of its intent to
lease the Affordable Dwelling Units, specifying the proposed Affordable Rental Price and
proposed location of such Affordable Dwelling Unit.
5.2 Initial Qualification. Developer shall determine if prospective occupants of
the Affordable Dwelling Units qualify as Qualifying Households under this Agreement.
Developer shall require each prospective occupant of an Affordable Dwelling Unit provide
documentation supporting and certifying that the income of the occupants does not
exceed the qualifying income limits ("Tenant Income Documentation"), and Developer
may rely upon such certification and supporting documentation in qualifying the
prospective occupant. A list of required Tenant Income Documentation supporting
income qualification is set forth in Exhibit "F" attached hereto and incorporated herein.
5.3 Recertification of Qualification. Developer shall annually determine if
occupants of the Affordable Dwelling Units continue to qualify as Qualifying Households
under this Agreement. Developer shall require each occupant of an Affordable Dwelling
Unit provide Tenant Income Documentation supporting and recertifying that the income
of the occupants does not exceed the qualifying income limits, and Developer may rely
upon such certification and supporting documentation supporting in qualifying the
occupant.
5.4 Records. Developer shall make available at Developer's office copies of
documents and information, including Tenant Income Documentation (collectively,
"Records") upon which Developer relied upon to certify or recertify each occupant within
a reasonable time after so qualifying or requalifying that occupant. Such Records shall
Newport Crossings Affordable Housing Agreement Page 7 of 18
be made available to City during Developer's normal business hours Monday through
Friday, excluding Federal and State recognized holidays, between the hours of 9:00 a.m.
and 5:00 p.m. Pacific Time.
5.5 Reliance on Tenant Representations. Each tenant lease shall contain a
provision to the effect that Developer has relied on the income certification and supporting
information supplied by the tenant in determining qualification for occupancy of the
Affordable Dwelling Unit, and that any material misstatement in such certification (whether
or not intentional) will be cause for immediate termination of such lease.
5.6 Annual Report. Developer shall provide to City such information as is
reasonably requested by City or its agents in connection with City's annual monitoring of
the Affordable Dwelling Units within ten (10) calendar days of the request and the
information shall be verified in writing by Developer under penalty of perjury. For each
Affordable Dwelling Unit, such information shall include, at a minimum, the documents
listed in Exhibit "G" ("Annual Report") as attached hereto and incorporated herein by
reference.
6. ASSIGNMENT
6.1 Change in Ownership, Management and Control of Developer and Transfer
of the Project. Developer shall have the right to assign this Agreement, including all
benefits, covenants, duties and obligations contained herein, upon the City's prior written
approval, which shall not be unreasonably withheld. A voluntary or involuntary sale or
transfer of a controlling interest in the Developer or the Property during the term of this
Agreement shall be deemed to constitute an assignment or transfer for the purposes of
this Section 6.1, and the written approval by City shall be required prior to effecting such
an assignment or transfer. Developer shall provide City with evidence reasonably
satisfactory to City that the: (a) proposed transferee has financial strength and experience
comparable to Developer; (b) the use of the Property by the proposed transferee is
consistent with the terms of the Agreement; and (c) Developer is not then in default of this
Agreement. Any purported transfer, voluntarily or by operation of law, except with the prior
written consent by City, shall render this Agreement absolutely null and void and shall
confer no rights whatsoever upon any purported assignee or transferee. During the term
of this Agreement, Developer shall not, except as permitted by this Agreement, assign or
attempt to assign this Agreement or any rights or duties herein, nor make any total or
partial sale, transfer, conveyance, or assignment of the whole or any part of the Property
or any of the improvements thereon, without the prior written approval by City.
6.2 Notwithstanding any other provision of this Agreement to the contrary, City
approval of an assignment of this Agreement or transfer of the Project, or any interest
therein, shall not be required in connection with: (a) the conveyance or dedication of any
portion of the Property to City, or other appropriate governmental agency, including public
utilities, where the granting of such conveyance or easement permits or facilitates the
development of the Project on the Property, or (b) the transfer of all or any part of the
Project or Property to an entity owned and controlled by Developer or the principals of
Developer, including, without limitation, transfer to a limited partnership in which
Newport Crossings Affordable Housing Agreement Page 8 of 18
Developer, or an affiliate of Developer, is a general partner; (c) any mortgage, deed of
trust, sale and leaseback, or other form of conveyance required for any reasonable
method of financing or refinancing the development of the Project on the Property,
including all direct and indirect costs related thereto; (d) transfers resulting from the death
or mental or physical incapacity of an individual; (e) transfers in trust for the benefit of a
spouse, children, grandchildren, or other family member, or for charitable purposes; or (f)
transfers of less than controlling interest shares of stock in a publicly -held corporation or
of the beneficial interest in any publicly -held partnership or real estate investment trust.
6.3 Notwithstanding anything in this Section 6 to the contrary, any transfer or
assignment by Developer or any successor in interest to Developer not requiring the
approval by City shall be effective when made but shall not be deemed to relieve
Developer or any successor party from its obligations under this Agreement unless and
until the transferor and transferee execute and deliver to City an assignment and
assumption agreement. Any transfer or assignment by Developer or any successor in
interest to Developer requiring the approval by City pursuant to this Section 6 shall be
effective and shall be deemed to relieve Developer or any successor party from its
obligations under this Agreement only upon execution and delivery to City by the
transferor and transferee of an assignment and assumption agreement in a form and with
content reasonably acceptable to City, and upon execution of an acknowledgment of
same by City.
6.4 Developer, in exchange for the City entering into this Agreement, hereby
agrees to hold, sell, and convey the Property subject to the terms of this Agreement.
Developer also grants to the City the right and power to enforce the terms of this
Agreement against the Developer and all persons having any right, title or interest in the
Property or any part thereof, their heirs, successive owners and assigns.
6.5 This Section 6 shall not be applicable to the leasing of individual Affordable
Dwelling Units to eligible tenants in accordance with this Agreement, and no assignment
and assumption agreement shall be required in connection therewith.
6.6 Each covenant of this Agreement shall run with the Property, and any
portion thereof, as applicable, and shall benefit or be binding upon each successive owner
during its ownership of the Property. The covenants herein contained shall, subject to the
provisions as to assignment, apply to and bind the heirs, successors, executors,
administrators and assigns of all the parties hereto; and all of the parties hereto shall be
jointly and severally liable hereunder.
7. COMPLIANCE WITH LAWS; INDEMNITY; ENVIRONMENTAL MATTERS
7.1 Compliance With Laws. Developer shall comply with (i) all ordinances,
regulations and standards of the City, any regional governmental entity, the State of
California, and the federal government applicable to the Project; (ii) all rules and
regulations of any assessment district of the City with jurisdiction over the Project; and
(iii) all applicable labor standards of California law and federal law; and (iv) the
Newport Crossings Affordable Housing Agreement Page 9 of 18
requirements of California law and federal law with respect to the employment of
undocumented workers or illegal aliens.
7.2 Indemnity. Developer shall save, protect, defend, indemnify and hold
harmless City and the City, in its own capacity, and all of the City's officers, officials,
members, employees, agents, and representatives (collectively, the "Indemnified
Parties") from and against any and all liabilities, suits, actions, claims, demands,
penalties, damages (including, without limitation, penalties, fines and monetary
sanctions), losses, costs or expenses (including, without limitation, consultants' fees,
investigation and laboratory fees, reasonable attorneys' fees and remedial and response
costs) (the foregoing are hereinafter collectively referred to as "Liabilities") which may
now or in the future be incurred or suffered by any of the Indemnified Parties by reason
of, resulting from, in connection with, or existing in any manner whatsoever as a direct or
indirect result of (i) Developer's placement on or under the Project of any Hazardous
Materials or Hazardous Materials Contamination, (ii) the escape, seepage, leakage,
spillage, discharge, emission or release from the Project occurring on or after the Effective
Date of any Hazardous Materials or Hazardous Materials Contamination, or (iii) any
Liabilities incurred under any Governmental Requirements relating to the acts described
in the foregoing clauses (i) and (ii).
For the purposes of this Agreement, unless the context otherwise specifies or
requires, the following terms shall have the meanings herein specified:
The term "Hazardous Materials" shall mean any substance, material, or waste
which is or becomes regulated by any local governmental authority, the City of Newport
Beach, the County of Orange, the State of California, a regional governmental authority,
or the United States Government, including, but not limited to, any material or
substance which is (i) defined as a "hazardous waste," "extremely hazardous waste,"
or "restricted hazardous waste" under Sections 25115, 25117 or 25122.7, or listed
pursuant to Section 25140 of the California Health and Safety Code, Division 20,
Chapter 6.5 (Hazardous Waste Control Law)), (ii) defined as a "hazardous substance"
under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8
(Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a
"hazardous material," "hazardous substance," or "hazardous waste" under Section
25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous
Materials Release Response Plans and Inventory), (iv) defined as a "hazardous
substance" under Section 25281 of the California Health and Safety Code, Division 20,
Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi)
friable asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as
"hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California
Administrative Code, Division 4, Chapter 20, (ix) designated as "hazardous
substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. § 1317), (x)
defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation
and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903) or (xi) defined as
"hazardous substances" pursuant to Section 101 of the Comprehensive Environmental
Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq.
Newport Crossings Affordable Housing Agreement Page 10 of 18
The term "Hazardous Materials Contamination" shall mean the contamination
(whether presently existing or hereafter occurring) of the improvements, facilities, soil,
groundwater, air or other elements on, in or of the Project by Hazardous Materials, or
the contamination of the buildings, facilities, soil, groundwater, air or other elements on,
in or of any other property as a result of Hazardous Materials at any time emanating
from the Project.
The term "Governmental Requirements" shall mean all past, present and future
laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United
States, the State of California, the County of Orange, the City of Newport Beach, or any
other political subdivision in which the Project is located, and any other state, county,
city, political subdivision, agency, instrumentality or other entity exercising jurisdiction
over the Project.
7.3 Duty to Prevent Hazardous Material Contamination. Developer shall take
commercially reasonable action to prevent the release of any Hazardous Materials into
the environment. Such precautions shall include compliance with all Governmental
Requirements with respect to Hazardous Materials. In addition, Developer shall install
and utilize such equipment and implement and adhere to such procedures as are
consistent with the standards generally applied by apartment complexes in Orange
County, California as respects the disclosure, storage, use, removal, and disposal of
Hazardous Materials.
7.4 Obligation of Developer to Remediate Premises. Notwithstanding the
obligation of Developer to indemnify the Indemnified Parties pursuant to Section 7.2,
Developer shall, at its sole cost and expense, promptly take (i) all actions required by any
federal, state, regional, or local governmental agency or political subdivision or any
Governmental Requirements and (ii) all actions necessary to make full economic use of
the Project for the purposes contemplated by this Agreement, which requirements or
necessity arise from the presence upon, about or beneath the Project of any Hazardous
Materials or Hazardous Materials Contamination. Such actions shall include, but not be
limited to, the investigation of the environmental condition of the Project, the preparation
of any feasibility studies or reports and the performance of any cleanup, remedial,
removal or restoration work.
7.5 Environmental Inquiries. Developer, when it has received any notices of
violation, notices to comply, citations, inquiries, clean-up or abatement orders, or cease
and desist orders related to Hazardous Materials or Hazardous Materials Contamination,
or when Developer is required to report to any governmental agency any violation or
potential violation of any Governmental Requirement pertaining to Hazardous Materials
or Hazardous Materials Contamination, shall concurrently notify the City Manager and
provide to him/her a copy or copies, of the environmental permits, disclosures,
applications, entitlements or inquiries relating to the Project, the notices of violation,
notices to comply, citations, inquiries, clean-up or abatement orders, cease and desist
orders, reports filed pursuant to self -reporting requirements, and reports filed or
applications made pursuant to any Governmental Requirement relating to Hazardous
Newport Crossings Affordable Housing Agreement Page 11 of 18
Materials and underground tanks, and Developer shall report to the City Manager, as
soon as possible after each incident, any unusual, potentially important incidents.
7.6 In the event of a responsible release of any Hazardous Materials into the
environment, Developer shall, as soon as possible after it becomes aware of the release,
furnish to the City Manager a copy of any and all reports relating thereto and copies of all
correspondence with governmental agencies relating to the release. Upon request of the
City Manager, Developer shall furnish to the City Manager a copy or copies of any and
all other environmental entitlements or inquiries relating to or affecting the Project
including, but not limited to, all permit applications, permits and reports including, without
limitation, those reports and other matters which may be characterized as confidential.
8. DEFAULTS AND REMEDIES
8.1 Default.
8.1.1 Termination for Cause. In the event the City determines that there
has been any fraud or deceit by Developer including, but not limited to, any material
misrepresentation by Developer, the City may, in its sole discretion, immediately
terminate this Agreement. In the event that either party fails or refuses to perform any of
the provisions of this Agreement at the time and in the manner required, that party shall
be deemed in default in the performance of this Agreement. If such default is not cured
within a period of five (5) calendar days, or if more than five (5) calendar days are
reasonably required to cure the default and the defaulting party fails to give adequate
assurance of due performance within five (5) calendar days after receipt of written notice
of default, specifying the nature of such default and the steps necessary to cure such
default, and thereafter diligently take steps to cure the default, the non -defaulting party
may terminate the Agreement forthwith by giving to the defaulting party written notice
thereof.
8.1.2 Acceptance of Service of Process. In the event that any legal action
is commenced by the Developer against the City, service of process on the City shall be
made by personal service upon the City Clerk, or in such other manner as may be
provided by law. In the event that any legal action is commenced by City against
Developer, service of process on Developer shall be made in such manner as may be
provided by law, whether made within or outside the State of California.
9. NONDISCRIMINATION
9.1 Developer covenants by and for itself and any successors in interest that
there shall be no discrimination against or segregation of any person, or group of persons
on any basis listed in subdivision (a) or (d) of Section 12955 of the California Government
Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California
Government Code, in the sale, rental, lease, sublease, transfer, use, occupancy, tenure
or enjoyment of the Project, or any part thereof, nor shall Developer, or any person
claiming under or through him or her, establish or permit any such practice or practices
Newport Crossings Affordable Housing Agreement Page 12 of 18
of discrimination or segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees or vendees of the Project, or any
part thereof. The foregoing covenants shall run with the land. All such deeds, leases or
contracts shall contain or be subject to substantially the following nondiscrimination or
nonsegregation clauses:
9.1.1 In deeds: "The grantee herein covenants by and for himself or
herself, his or her heirs, executors, administrators, and assigns, and all persons claiming
under or through them, that there shall be no discrimination against or segregation of, any
person or group of persons on account of any basis listed in subdivision (a) or (d) of
Section 12955 of the California Government Code, as those bases are defined in Sections
12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955,
and Section 12955.2 of the California Government Code, in the sale, lease, sublease,
transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall
the grantee or any person claiming under or through him or her, establish or permit any
practice or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or
vendees in the premises herein conveyed. Notwithstanding the forgoing, with respect to
familial status, the forgoing shall not be construed to apply to housing for older persons,
as defined in Section 12955.9 of the California Government Code. The foregoing
covenants shall run with the land."
9.1.2 In leases: "The lessee herein covenants by and for himself or
herself, his or her heirs, executors, administrators, and assigns, and all persons claiming
under or through him or her, and this lease is made and accepted upon and subject to
the following conditions: "That there shall be no discrimination against or segregation of
any person or group of persons, on account of any basis listed in subdivision (a) or (d)
of Section 12955 of the California Government Code, as those bases are defined in
Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the California Government Code, in the leasing,
subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein
leased nor shall the lessee himself or herself, or any person claiming under or through
him or her, establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use, or occupancy, of
tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.
Notwithstanding the forgoing, with respect to familial status, the forgoing shall not be
construed to apply to housing for older persons, as defined in Section 12955.9 of the
California Government Code.
9.1.3 In contracts pertaining to the Project: "There shall be no
discrimination against or segregation of, any person or group of persons on account of
any basis listed in subdivision (a) or (d) of Section 12955 of the California Government
Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California
Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of the premises which are the subject of this agreement, nor shall the grantee
or any person claiming under or through him or her, establish or permit any practice or
Newport Crossings Affordable Housing Agreement Page 13 of 18
practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in
the premises herein conveyed. Notwithstanding the forgoing, with respect to familial
status, the forgoing shall not be construed to apply to housing for older persons, as
defined in Section 12955.9 of the California Government Code. The foregoing covenants
shall run with the land."
9.2 The covenants established in this Agreement shall, without regard to
technical classification and designation, be binding for the benefit and in favor of the City
and City's successors and assigns, and any successor in interest to the Project, together
with any property acquired by the Developer pursuant to this Agreement, or any part
thereof. The covenants against discrimination shall remain in effect in perpetuity.
10. EFFECT OF VIOLATION OF THE TERMS AND PROVISIONS OF THIS
AGREEMENT
The City is deemed the beneficiary of the terms and provisions of this
Agreement and of the covenants running with the land, for and in its own rights and for
the purposes of protecting the interests of the community and other parties, public or
private, in whose favor and for whose benefit this Agreement and the covenants
running with the land have been provided. This Agreement and the covenants shall run
in favor of the City, without regard to whether the City has been, remains or is an owner
of any land or interest therein in the Project. The City shall have the right, if this
Agreement or covenants are breached, to exercise all rights and remedies, and to
maintain any actions or suits at law or in equity or other property proceedings to enforce
the curing of such breaches to which it or any other beneficiaries of this Agreement
and covenants may be entitled.
11. NOTICES
11.1 All notices, demands, requests or approvals to be given under the terms of
this Agreement shall be given in writing, to City by Developer and conclusively shall be
deemed served when delivered personally, or on the third business day after the deposit
thereof in the United States mail, postage prepaid, first-class mail, addressed as
hereinafter provided.
11.2 All notices, demands, requests or approvals from Developer to City shall be
addressed to City at:
To Developer: Aryabhata Group LLC
520 Newport Center Drive, Suite 480
Newport Beach, CA 92660
Attn: Deba Shyam
To City: City of Newport Beach
100 Civic Center Drive
Newport Beach, California 92660
Attn: City Manager
Newport Crossings Affordable Housing Agreement Page 14 of 18
12. STANDARD PROVISIONS
12.1 Recitals. City and Developer acknowledge that the above Recitals are true
and correct and are hereby incorporated by reference into this Agreement.
12.2 Compliance with all Laws. Developer shall at its own cost and expense
comply with all statutes, ordinances, regulations and requirements of all governmental
entities, including federal, state, county or municipal, whether now in force or hereinafter
enacted. In addition, the Project shall conform to applicable City, county, state and federal
laws, rules, regulations and permit requirements and be subject to approval of City.
12.3 Waiver. A waiver by either party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent breach
of the same or any other term, covenant or condition contained herein, whether of the
same or a different character.
12.4 Integrated Agreement. This Agreement represents the full and complete
understanding of every kind or nature whatsoever between the parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged herein.
No verbal agreement or implied covenant shall be held to vary the provisions herein.
12.5 Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this Agreement and any other attachments attached hereto, the
terms of this Agreement shall govern.
12.6 Interpretation. The terms of this Agreement shall be construed in
accordance with the meaning of the language used and shall not be construed for or
against either party by reason of the authorship of the Agreement or any other rule of
construction which might otherwise apply.
12.7 Amendments. This Agreement may be modified or amended only by a
written document executed by both Developer and City and approved as to form by the
City Attorney.
12.8 Severability. If any term or portion of this Agreement is held to be invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall continue in full force and effect.
12.9 Confidentiality. All documents, including drafts, notes and communications
that result from this Agreement, shall be kept confidential unless City authorizes in writing
the release of information.
12.10 Cooperation. Developer agrees to work closely and cooperate fully with City
and any other agencies that may have jurisdiction or interest in this Agreement. City
agrees to cooperate with the Developer in the implementation of this Agreement.
Newport Crossings Affordable Housing Agreement Page 15 of 18
12.11 Controlling Law and Venue. The laws of the State of California shall govern
this Agreement and all matters relating to it and any action brought relating to this
Agreement shall be adjudicated in a court of competent jurisdiction in the County of
Orange, State of California.
12.12 Equal Opportunity Employment. Developer represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee
or applicant for employment because of race, religious creed, color, national origin,
ancestry, physical handicap, medical condition, marital status, sex, sexual orientation,
age or any other impermissible basis under law.
12.13 No Attorney's Fees. In the event of any dispute or legal action arising under
this Agreement, the prevailing party shall not be entitled to attorneys' fees.
12.14 Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.
12.15 No Third -Party Beneficiaries. Nothing in this Agreement, express or implied,
is intended to confer any rights or remedies under or by reason of this Agreement on any
person or entity other than the City on the one hand and Developer on the other and their
respective permitted successors and assigns, nor is anything in this Agreement intended
to relieve or discharge any obligation of any third person to any Party or give any third
person any right of subrogation or action over or against any Party.
12.16 No Damages. Developer acknowledges that City would not enter into this
Agreement if it were to be liable for damages (including, but not limited to, actual
damages, economic damages, consequential damages, lost profits, loss of rents or other
revenues, loss of business opportunity, loss of goodwill or loss of use) under, or relating
to, this Agreement or any of the matters referred to in this Agreement, including, without
limitation, any and all plans, permits, licenses or regulatory approvals, and CEQA
documents related to the Property or Project. Accordingly, Developer covenants and
agrees on behalf of itself and its successors and assigns, not to sue City (either in its
capacity as a Party to this Agreement or in its capacity as the City of Newport Beach) for
damages (including, but not limited to, actual damages, economic damages,
consequential damages, lost profits, loss of rents or other revenues, loss of business
opportunity, loss of goodwill or loss of use) or monetary relief for any breach of this
Agreement by City or for any dispute, controversy, or issue between City and Developer
arising out of or connected with this Agreement or any of the matters referred to in this
Agreement, including, without limitation, any and all plans, permits, licenses or regulatory
approvals, CEQA documents, or any future amendments or enactments thereto, the
parties agreeing that declaratory relief, injunctive relief, mandate and specific
performance shall be Developer's sole and exclusive judicial remedies. Notwithstanding
the foregoing, nothing in this Section 12.16 shall limit Developer's remedies as expressly
set forth in this Agreement.
Newport Crossings Affordable Housing Agreement Page 16 of 18
12.17 Time Declared to be of the Essence. As to the performance of any obligation
under this Agreement of which time is a component, the performance of such obligation
within the time specified is of the essence.
12.18 Survival of Agreement. All of the provisions of this Agreement shall be
applicable to any dispute between the Parties arising from this Agreement, whether prior
to or following expiration or termination of this Agreement, until any such dispute is finally
and completely resolved between the Parties, either by written settlement, entry of a non -
appealable judgment or expiration of all applicable statutory limitations periods, and all
terms and conditions of this Agreement relating to dispute resolution and limitations on
damages or remedies shall survive any expiration or termination of this Agreement.
12.19 Binding Authority. By executing this Agreement, each person signing on
behalf of the Developer warrants and represents to the City that Developer has the full
power and authority to enter into this Agreement, that all authorizations required to make
this Agreement binding upon the Developer have been obtained, and that the person or
persons executing this Agreement on behalf of the Developer are fully authorized to do
so.
[Signatures on Following Page]
Newport Crossings Affordable Housing Agreement Page 17 of 18
SIGNATURE PAGE
TO
AFFORDABLE HOUSING AGREEMENT
(Newport Crossings Mixed Use Project)
IN WITNESS WHEREOF, the Parties have signed this Agreement by and
through the signatures of their respective authorized representative(s) as follows:
CITY OF NEWPORT BEACH,
a California municipal corporation
By:
Gr e K. Leung
y Manager
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
ARYABHATA GROUP LLC,
a Delaware limited liability company
By: MOM CA Investco LLC,
a Delaware limited liability company
Its: Sole Member
By: MOM CA Manager LLC,
a Delaware limited liability company
Its: Managing Manager
By: Signed in Counterpart
By: Name: Deba Shyam
�.r✓�Ity
on C. rp ►Iw �3 D� Its: Manager
Atto ne
ATTEST:
By: "_�4 I .
Leilani I. Brown
City Clerk
Exhibits
Exhibit "A" — Property
Exhibit "B" — Project
Exhibit "C" — Affordable Housing Implementation Plan No. AH2O18-
001
Exhibit "D" — Declaration of Affordable Housing Covenants,
Conditions and Restrictions
Exhibit "E" — Affordable Rental Price
Exhibit "F" — Tenant Income Documentation
Exhibit "G" — Annual Report
Newport Crossings Affordable Housing Agreement Page 18 of 18
SIGNATURE PAGE
TO
AFFORDABLE HOUSING AGREEMENT
(Newport Crossings Mixed Use Project)
IN WITNESS WHEREOF, the Parties have signed this Agreement by and
through the signatures of their respective authorized representative(s) as follows:
CITY OF NEWPORT BEACH, ARYABHATA GROUP LLC,
a California municipal corporation a Delaware limited liability company
By: MOM CA Investco LLC,
By: a Delaware limited liability company
Grace K. Leung Its: Sole Member
City Manager
By: MOM CA Manager LLC,
APPROVED AS TO FORM: a Delaware limited liability company
CITY ATTORNEY'S OFFICE Its: Managing Manager
By:
By: Name: Deba Shyam
-�, on C. rp ►�►o �3�� Its: Manager
ity Attofney
ATTEST:
By:
Leilani I. Brown
City Clerk
Exhibits: Exhibit "A" — Property
Exhibit "B" — Project
Exhibit "C" — Affordable Housing Implementation Plan No. AH2O18-
001
Exhibit "D" — Declaration of Affordable Housing Covenants,
Conditions and Restrictions
Exhibit "E" — Affordable Rental Price
Exhibit "F" — Tenant Income Documentation
Exhibit "G" — Annual Report
Newport Crossings Affordable Housing Agreement Page 18 of 18
EXHIBIT "A"
PROPERTY
Newport Crossings Affordable Housing Agreement Exhibit A-1
EXHIBIT "B"
PROJECT
Newport Crossings Affordable Housing Agreement Exhibit B-1
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EXHIBIT "C"
AFFORDABLE HOUSING IMPLEMENTATION PLAN NO. AH2018-001
Newport Crossings Affordable Housing Agreement Exhibit C-1
NEWPORT CROSSINGS
AFFORDABLE HOUSING IMPLEMENTATION PLAN AND DENSITY BONUS APPLICATION
AUGUST 28, 2018
Project Description & Affordability Level
Starboard Realty Partners, LLC ("Starboard") is proposing the Newport Crossings mixed -use
development on a 5.19 net acre site located in the Newport Place Planned Community. The site
is generally bounded by Corinthian Way to the northeast, Martingale Way to the east, Scott Drive
to the northwest, and Dove Street to the southwest. The Newport Beach General Plan designates
the project site as Mixed -Use Horizontal 2 (MU-H2) and the zoning is Planned Community 11,
Newport Place (PC 11). The site is developed as a shopping center with multiple tenants; the
shopping center is currently occupied by only a few remaining tenants. The Newport Crossings
development will consist of 350 residential units and 7,500 square feet of commercial space to be
developed on the site. Adjacent to the site Starboard intends to dedicate a 0.5-acre public park to
the City of Newport Beach in compliance with the Development Standards (defined below).
The Newport Place Development Standards ("Development Standards") provide for a maximum
residential density of 50 dwelling units per acre. The project is planned to consist of 259 units
based on the current maximum residential density per the Development Standards ("Base" units)
and 91 density bonus units. The Development Standards also provide that 30 percent of the Base
units within a residential development shall be affordable to Lower Income households. Lower
Income Households, as defined in California Health and Safe Code Section 50079.5, are defined
as households earning 80 percent or less of area median income, adjusted for family size. The
affordable housing requirement for this project is 78 units (30% of 259 Base units).
Eligibility for Density Bonus and Compliance with Newport Place Development Standards
Affordability Requirements
In order to meet most of the project's affordable housing requirements, Starboard will be
providing 52 units (20% of Base units) affordable to Lower Income households ("Required
Density Bonus Lower Income Units"). This will comply with the provisions of Government Code
Section 65915 and Section 20.32 of the City's Zoning Code applicable to a 35% density bonus
and will also provide a majority of the affordable units required by the Newport Place
Development Standards. Rents for the Required Density Bonus Lower Income Units will be
computed in accordance with Health and Safety Code Sec. 50053, as required by Government
Code Section 65915(c)(1). To meet the remainder of the affordable units required by the
Development Standards, the project will provide 26 units affordable to Lower Income households
("Development Standards Additional Lower Income Units"). Rents for those units will be
computed based on income limits for Lower Income households, as published annually by the
Department of Housing and Community Development.
1
1
NeNvport Crossings Affordable Housing Plan
august 28,
2M
Density Bonus Computation and Term of Affordability
The density bonus computation for the project per Government Code Section 65915 is shown
below:
Table 1
Density Bonus Computation
Net Acres
5.19
Allowable Density
50 per acre
Allowable Units Utilized Before Density Bonus
259
Density Bonus Utilized (35%)
91
Total Units
350
Starboard intends to operate the apartment project as a rental community. The 52 Required
Density Bonus Lower Income Units will remain rent restricted for a minimum of 55 years, per
Government Code Section 65915(c)(1), well in excess of the 30-year affordability term set
forth in the Development Standards. Rents for the 26 Development Standards Additional
Affordable Units will remain restricted for the required 30-year term.
Reduction in Parking
The Newport Crossings project 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 ten percent
(10%) of the total units of a housing development (excluding any units permitted by the density
bonus awarded pursuant to that section) for Lower 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: two 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 below is a summary of Government Code Sec. 65915 parking requirements vs. spaces
to be provided:
Table 2
i 411 n ng ryuil riuruw
Stalls/Unit Total Stalls
Number of Per Gov Per Gov.
Unit Tvpe Units Code 65915 Code 65915
Studio
29
1.0
29
1 BR
197
1.0
197
2 BR
124
2.0
248
TOTAL PARKING STALLS REQUIRED -
350
1.4 r
474
RES IDENTL4 L UNITS
TOTAL PARKING STALLS PROVIDED -
661
RES IDENTIAL UNITS'
PARKING PROVIDED IN EXCESS OF
187
MINIMUM REQUIREEVIINTS
Parking Provided for RetaiULeasing
79
TOTAL PARKING STALLS PROVIDED
740
1. Includes 6 EVCS stalls.
Starboard requests that parking requirements be calculated in accordance with Government Code
Sec. 65915(p). As shown above, the project will provide 661 onsite parking spaces for its
residential units which is 187 spaces in excess of the requirements of Sec. 65915 (p).
Development Incentive Request
Pursuant to Government Code Section 65915(d)(1) and Section 20.32 of the City's Zoning Code,
Starboard is entitled to two concessions or incentives as a result of providing at least twenty
percent (20%) of the units as affordable for Lower Income households. Starboard requests the
following development incentive:
Section V.F.I of the Development Standards provide that "Affordable units shall reflect
the range of numbers of bedrooms provided in the residential development project as a
whole." Starboard requests that the 78 Lower Income units be provided utilizing the unit
mixes as shown on the following page:
7
100
Table 3
Unit Mix
Development
Required Density
Standards
Bonus Lower
Additonal Lower
Total Affordable
Unit Type
Total Units
Income Units'
income Units 2
Units
Studio
29
13
7
20
1 Bedroom
197
38
18
56
2 Bedroom
124
1
1
2
Total
350
52
26
78
As required by Government Code Sec. 65915(d)(1)(A), this incentive will result in additional
rental income for the project as well as construction cost reductions for the affordable units,
which will provide for the affordable rents to be set in accordance with Government Code Sec.
65915(c)(1).
Starboard reserves the right to request the second incentive or concession in the future.
Development Standards Waiver Request
Government Code Sec. 65915(e)(1) provides that a city or county may not apply any
development standard (including height limits) that will have the effect of physically precluding
the construction of a density bonus project at the density permitted under the density bonus
statute. For the Newport Crossings project, certain features are required to project beyond the
55-foot height limit set forth by Section V.A. of the Development Standards. Those features are:
1. Stair towers - the Building Code and Newport Beach Fire Department require stair
towers that extend to the roof.
2. Elevator over runs - The elevator manufacturer requires an elevator over run (tower)
that extends beyond the 55' height limit.
3. Mechanical equipment - Located on top of the roof.
4. Parapets - CalOSHA requires fall protection that is 42" above the roof surface to
protect workers from falling off the roof.
5. Portions of the parking structure and rooftop deck. These items are necessary for
marketing purposes to meet the expectations of prospective tenants. The additional
parking provided will also reduce the impact of the project on parking availability on
neighboring streets.
Starboard requests in accordance with Government Code Sec. 65915(e)(1), that a waiver be
granted above the 55-foot height limit. Without this waiver, the project will not be able to
accommodate the 350 units permitted by the Development Standards and Government Code Sec.
65915.
Income Limits and Examples of Eligible Tenants for Affordable Homes
3
1(1
Newport Crossings Affordable Housing Plan
ALlgust 28,
2018
Low Income Households are defined as households whose gross income does not exceed 80%
of area median income, adjusted for household size. Table 4 on the following page shows the
maximum income limits as determined by the U.S. Department of Housing and Urban
Development and the California Department of Housing and Community Development ("HCD")
for Low Income households with household sizes appropriate for Newport Crossings:
2
102
Newport Crossings Affordable Housing Plan
ALIgLISt 28,
2018
Table 4
Maximum Income Limits
Low Income Units
Maximum Annual
HouscholdSize
Income -2018
1 Person
$61,250
2 Person
70,000
3 Person
78,750
4 Person
87,450
Higher income limits apply to larger families; those families however are not considered to be a
target market for Newport Crossings, where the unit mix consists of studios, one -bedroom, and
two -bedroom apartment homes.
The 78 affordable homes that Starboard will provide will be rented to eligible Low Income
Households. As shown in Table 4, Low Income Households includes incomes ranging from
$61,250 per year for a one -person household to $87,450 per year for a four -person household.
As such this could include City employees, school district employees, health care professionals,
and other occupations which provide needed services to our community. While household size,
overtime pay, summer jobs, or second jobs may affect eligibility, the income limits above are
reflective of pay to many public or health care sector workers, as shown in Table 5 below:
Table 5
LxamnleS of Uuaniv><nLy salaries
Information
Position
Pay Range
Source
Comments
Librarian I
57,179-80,433
city I
Will qualify.
Paralegal
62,129-87,422
City I
Will qualify except possibly upper and of
pay range.
Police Officer
66,185-118,872
city I
Lower to middle areas of pay range will
qualify.
Hoag Memorial Hospital Registered Nurse
74,880-85,280
Glassdoor
Will qualify except possibly upper end of
Website
pay range.
Newport -Mesa Unified School District Teacher
54,043-82,689
NMUSD
Credentialed teacher with no advanced
Website 2
education or with Masters and up to 9
years experience will qualify except
possibly upper end of pay range.
The pay ranges shown above are as of 2017 and are subject to update. Retired persons or couples
or young business professionals starting their careers may also qualify to rent the affordable
homes at Newport Crossings. 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
'Derived from open job listings on City website May 2017
Z Derived from teacher pay scale listing on NMUSD website
5
1o3
Newport Crossings Affordable Housing Plan
August 28, `
?0t8
a priority basis from classes of individuals who qualify under the income limits in effect. The
guidelines could provide for priority treatment for police officers, firemen, other City employees,
employees of the local school district, and employees of major health care institutions or other
categories identified by the City for priority treatment.
Rental Rate Limits for Affordable Homes
The 52 Required Density Bonus Lower Income Units 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
Low Income household, as calculated in Table 6 below. That section also requires that the rent
for a studio unit assumes a one -person household for rent calculation purposes, a one -bedroom
unit assumes a two -person household, and a two -bedroom unit assumes a three -person household.
The rents calculated are then adjusted by a utility allowance as determined annually by the County
of Orange Housing & Community Services Department. As of November 1, 2017, the reduction
for the utility allowance is $96.00 per month for a studio unit, $104.00 per month for a one -
bedroom unit, and $132.00 per month for a two -bedroom unit. The utility allowance utilized
assumes gas cooking, gas space heating, gas water heating, as well as water, and sewer, and trash
fees which will be paid by the tenant.
The 26 Development Standards Additional Lower Income Units will be rented at an affordable
rent calculated based on 30% of the income limits for Lower Income households, as published
annually by the Department of Housing and Community Development. Those rents will be
calculated at 30% of total income utilizing the income limits for Lower Income households as
shown in Table 4. Assumptions of household size for each type of unit and utility allowances
are consistent with the prior paragraph.
1.1
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Newport Crossinp .-affordable Housing Plan
AUCILISt 28,
2018
Table 6
Maximum Rents by Bedroom Count
Bedrooms
Maximum
Annual Rent
Maximum
Monthly Rent
Utility
Allowance
Affordable
Rent
Low Income - Density Bonus
- 60% ofAMlj
Studio
$11,682
$974
$96
$878
1 Bedroom
13,347
1,112
104
1,008
2 Bedroom
15,021
1,252
132
1,120
Low Income - Development
Standards- 80% ofAMI4
Studio
$18,375
$1,531
$96
$1,435
1 Bedroom
21,000
1,750
104
1,646
2 Bedroom
23,625
1,969
132
1,837
Starboard 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 6. The rental rates shown will be updated prior to the commencement of rental
activities and on an ongoing basis to reflect then current income limits, utility allowances, and
any changes in applicable regulations and statutes.
Unit Mix, Design, and Location of Affordable Homes
While the exact location of each of the affordable homes within the Newport Crossings site
has not yet been determined, the affordable homes will be spread throughout the development
to avoid concentration of affordable homes in any area. The affordable homes shall be
comparable in the quality of construction and exterior design to the market rate homes. As
provided for in the Development Standards, all affordable homes will have access to the
facilities and amenities offered by the development.
Requested City of Newport Beach Assistance
Financial Assistance
3 Rents for Required Density Bonus Lower Income units calculated in accordance with Section 50053 of the Health
and Safety Code.
'Rents for Development Standards Additional Lower Income Units calculated based on income limits for Lower
Income households, as published annually by the Department of Housing and Community Development.
105
vex port Crossings Affordable Housing Plan
August 28,
-1018
Starboard is not requesting any direct financial assistance from the City of Newport Beach for
this project.
100
EXHIBIT "D"
DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND
RESTRICTIONS
[Attached Behind This Page]
Newport Crossings Affordable Housing Agreement Exhibit D-1
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Newport Beach
100 Civic Center Drive
Newport Beach, California 92660
Attn: City Clerk
Exempt from Recording Fees pursuant to Govt. Code §§ 6103, 27383 Space above line for Recorder's use only
APN: 427-172-02 AND 427-172-03
DECLARATION OF AFFORDABLE HOUSING COVENANTS, CONDITIONS AND
RESTRICTIONS
(Newport Crossings Mixed Use Project)
THIS DECLARATION OF AFFORDABLE HOUSING COVENANTS,
CONDITIONS AND RESTRICTIONS (this "Declaration") is dated as of
, 20_ ("Effective Date"), and is made by and between the CITY OF
NEWPORT BEACH, a California municipal corporation and charter city, as covenantee
("City"), and ARYABHATA GROUP LLC, a Delaware limited liability company, as
covenantor ("Owner"), with reference to the following recited facts (each, a "Recital").
RECITALS
A. Owner is the owner of that certain real property consisting of approximately 5.69
net acres situated in the Airport Area in the City of Newport Beach, County of
Orange, State of California, addressed as 1701 Corinthian Way; 1660 Dove Street;
4251, 4253, and 4255 Martingale Way; and 4200, 4220, and 4250 Scott Drive
[APN 427-172-02 and 427-172-03], as more particularly depicted in Attachment
1" attached to this Declaration and incorporated herein (the "Property").
B. On February 21, 2019, the Planning Commission approved the Newport Crossings
Mixed Use Project (PA2017-107) project which includes developing the Property
into a residential project with up to 350 residential units, of which 78 shall be
restricted for affordable housing ("Affordable Dwelling Units"), 7,500 square feet of
commercial space, and 0.5 acres of park space (the "Project").
C. Project approval included the adoption of Affordable Housing Implementation Plan
No. AH2O18-001, dated August 28, 2018 (the "AHIP"), which implements
affordable housing requirements for the Project pursuant to the Residential
Overlay of the Newport Place Planned Community and density bonus and
incentives/concessions pursuant to Chapter 20.32 (Density Bonus) of the Newport
Beach Municipal Code and California Government Code Section 65915 ("State
Density Bonus Law").
Newport Crossings Affordable Housing Agreement Exhibit D-2
D. Owner and City have entered into an Affordable Housing Agreement, dated
("Affordable Housing Agreement") with respect to the Project.
E. This Declaration shall be recorded upon the execution of that certain Affordable
Housing Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES, COVENANTS
AND UNDERTAKINGS SET FORTH IN THIS DECLARATION AND FOR OTHER GOOD
AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS
HEREBY ACKNOWLEDGED, OWNER AND CITY COVENANT, DECLARE AND
AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS, AS FOLLOWS:
1. COVENANTS
1.1 Affordability Period. Owner agrees for itself and its successors and assigns,
and every successor to Owner's interest in the Property, or any part thereof, that the
Affordable Dwelling Units, comprising Required Density Bonus Lower Income Units and
Development Standards Additional Lower Income Units, 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 Required Density Bonus Lower Income Units consisting of fifty-
two (52) units 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
Required Density Bonus Lower Income Unit constructed in the applicable Phase
providing such Required Density Bonus Lower Income Units.
1.1.2 Development Standards Additional Lower Income Units consisting of
twenty-six (26) units will remain restricted for a minimum of thirty (30) years
commencing upon the date the final certificate of occupancy is issued for the last
Development Standards Additional Lower Income Unit constructed in the
applicable Phase providing such Development Standards Additional Lower
Income Units.
1.2 Occupancy. The Affordable Dwelling Units shall only be rented and
occupied by Lower Income Households. Notwithstanding the foregoing, households with
less income may also occupy the Affordable Dwelling Units. "Lower Income Households"
means an individual or family with an income eighty percent (80%) or less of the Orange
County median income, adjusted for household size.
1.3 Rent. The Affordable Dwelling Units shall only be rented at an Affordable
Rental Price to Lower 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 "2" attached hereto and incorporated herein by reference
and shall be recorded.
Newport Crossings Affordable Housing Agreement Exhibit D-3
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, 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%) of sixty percent (60%) 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 Required
Density Bonus Lower Income Units, and (ii) thirty percent (30%) of eighty percent (80%)
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 Development Standards Additional Lower Income Units.
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
UNITS AND MAY BE ESTABLISHED AT A LEVEL SUBSTANTIALLY
BELOW THE FAIR MARKET RENT LEVELS.
Owner's Initials
2.2 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 any of the Affordable Dwelling Units 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
Newport Crossings Affordable Housing Agreement Exhibit D-4
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
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 Affordable Dwelling Units 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)
Newport Crossings Affordable Housing Agreement Exhibit D-5
IN WITNESS WHEREOF, City and Owner have caused this Declaration to be
signed by themselves or on their behalf by their duly authorized representatives, as set
forth below:
CITY OF NEWPORT BEACH,
a California municipal corporation
By:
Grace K. Leung
City Manager
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
By:
Aaron C. Harp
City Attorney
ATTEST:
By:
Leilani I. Brown
City Clerk
ARYABHATA GROUP LLC,
a Delaware limited liability company
By: MOM CA Investco LLC,
a Delaware limited liability company
Its: Sole Member
By: MOM CA Manager LLC,
a Delaware limited liability company
Its: Managing Manager
IN
Name: Deba Shyam
Its: Manager
[SIGNATURES MUST BE NOTARY ACKNOWLEDGED FOR RECORDING]
Attachments: Attachment 1 — Property
Attachment 2 — Notice of Commencement of Affordability Restrictions
Newport Crossings Affordable Housing Agreement Exhibit D-6
ATTACHMENT "1"
PROPERTY
[Attached Behind this Page]
Newport Crossings Affordable Housing Agreement Exhibit D-7
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ATTACHMENT "2"
NOTICE OF COMMENCEMENT OF AFFORDABILITY RESTRICTIONS
[Attached Behind this Page]
Newport Crossings Affordable Housing Agreement Exhibit D-8
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: 427-172-02 AND 427-172-03
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 units of the Property be developed
as Affordable Dwelling Units and be rented to and occupied by persons and households
of limited income at affordable rents.
ARYABHATA GROUP LLC, a Delaware limited liability company, hereby provides
notice that the Property is subject to certain affordable housing requirements-
1. Location of Property: 1701 Corinthian Way; 1660 Dove Street; 4251, 4253, and
4255 Martingale Way; and 4200, 4220, and 4250 Scott Drive in the City of Newport
Beach, California.
2. Assessor's Parcel Number(s) of Property: 427-172-02 and 427-172-03
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 Aryabhata Group LLC,
a Delaware limited liability company, 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").
Newport Crossings Affordable Housing Agreement Exhibit D-9
5. Summary of Affordable Housing Restrictions:
Affordability Period. Fifty-two (52) of the Property's Affordable Dwelling
Units, comprising the Required Density Bonus Lower Income Units, shall
be subject to the affordable housing requirements for a minimum of fifty-five
(55) years from the Commencement Date. [of i wenty-six (26) of idle
Property's Affordable Dwelling Units, comprising the Development
Standards Additional Lower Income Units, shall be subject to the affordable
housing requirements for a minimum of thirty (30) 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 Required Density Bonus Lower Income Units [or Development
Standards Additional Lower Income Units ].
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]
Newport Crossings Affordable Housing Agreement Exhibit D-10
CITY OF NEWPORT BEACH,
a California municipal corporation
By:
Grace K. Leung
City Manager
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
By:
Aaron C. Harp
City Attorney
ATTEST:
By:
Leilani I. Brown
City Clerk
ARYABHATA GROUP LLC,
a Delaware limited liability company
By: MOM CA Investco LLC,
a Delaware limited liability company
Its: Sole Member
By: MOM CA Manager LLC,
a Delaware limited liability company
Its: Managing Manager
in
Name: Deba Shyam
Its: Manager
[SIGNATURES MUST BE NOTARY ACKNOWLEDGED FOR RECORDING]
Exhibit(s): Exhibit 1 — Legal Description of Property
Newport Crossings Affordable Housing Agreement Exhibit D-11
EXHIBIT "1"
LEGAL DESCRIPTION OF PROPERTY
APN: 427-172-02
Parcel 1:
LOT 1 OF TRACT NO. 7770, IN THE CITY OF NEWPORT BEACH, COUNTY OF
ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 299, PAGES
15 AND 16 OF MISCELLANEOUS MAPS, TOGETHER WITH THOSE PORTIONS OF
PARCELS 1 AND 2 AS SHOWN ON A MAP FILED IN BOOK 53, PAGE 13 OF PARCEL
MAPS, BOTH IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY,
DESCRIBED AS FOLLOWS:
COMMENCING AT THE CENTERLINE INTERSECTION OF CORINTHIAN WAY AND
MARTINGALE DRIVE, AS SHOWN ON SAID TRACT NO. 7770, THENCE ALONG
SAID CENTERLINE OF MARTINGALE DRIVE SOUTH 06059'31" EAST 495.91 FEET;
THENCE LEAVING SAID CENTERLINE SOUTH 85055'37" WEST 34.84 FEET TO THE
WESTERLY LINE OF SAID MARTINGALE DRIVE AS SHOWN ON SAID TRACT NO.
7770, SAID POINT BEING ON A NON -TANGENT CURVE, CONCAVE WESTERLY,
HAVING A RADIUS OF 90.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS
SOUTH 89021'49" EAST;
THENCE NORTHERLY ALONG SAID CURVE 11.98 FEET THROUGH A CENTRAL
ANGLE OF 07037'42";
THENCE NORTH 06°59'31" WEST 14.65 FEET TO THE TRUE POINT BEGINNING;
THENCE LEAVING SAID WESTERLY LINE OF MARTINGALE DRIVE SOUTH
85055'37" WEST 324. 79 FEET;
THENCE SOUTH 42056'12" WEST 51.51 FEET TO A POINT ON A NON -TANGENT
CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 634.00 FEET, A
RADIAL LINE THROUGH SAID POINT BEARS NORTH 47059'42" EAST;
THENCE NORTHWESTERLY ALONG SAID CURVE 81.22 FEET THROUGH A
CENTRAL ANGLE OF 07020'25";
THENCE NORTH 49020'43" WEST 217.66 FEET TO THE BEGINNING OF A CURVE,
CONCAVE EASTERLY, HAVING A RADIUS OF 15.00 FEET;
THENCE NORTHWESTERLY, NORTHERLY, AND NORTHEASTERLY ALONG SAID
CURVE 23.56 FEET THROUGH A CENTRAL ANGLE OF 90000'00" TO THE
SOUTHEASTERLY LINE OF SCOTT DRIVE AS SHOWN ON SAID TRACT NO. 7770;
THENCE ALONG SAID SOUTHEASTERLY LINE NORTH 40039" 7" EAST 486.55
FEET TO THE BEGINNING OF A CURVE, CONCAVE SOUTHERLY, HAVING A
RADIUS OF 15.00 FEET;
THENCE NORTHEASTERLY, EASTERLY, AND SOUTHEASTERLY ALONG SAID
CURVE 19.22 FEET THROUGH A CENTRAL ANGLE OF 73023'53" TO THE
SOUTHWESTERLY LINE OF SAID CORINTHIAN WAY;
Newport Crossings Affordable Housing Agreement Exhibit D-12
THENCE ALONG SAID SOUTHWESTERLY LINE SOUTH 65056'50" EAST 204.85
FEET TO THE BEGINNING OF A CURVE, CONCA VE SOUTHWESTERLY, HAVING
A RADIUS OF 15.00 FEET;
THENCE SOUTHEASTERLY ALONG SAID CURVE 15.43 FEET THROUGH A
CENTRAL ANGLE OF 58057'19" TO THE WESTERLY LINE OF SAID MARTINGALE
STREET;
THENCE ALONG SAID WESTERLY LINE SOUTH 06059'31" EAST 439.84 FEET THE
TRUE POINT OF BEGINNING.
CONTAINING 5.080 ACRES.
Par( --PI ?-
THAT PORTION OF PARCEL 1, IN THE CITY OF NEWPORT BEACH, COUNTY OF
ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP FILED IN BOOK 53, PAGE
13 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID
COUNTY, DESCRIBED AS FOLLOWS:
COMMENCING AT THE CENTERLINE INTERSECTION OF CORINTHIAN WAY AND
MARTINGALE DRIVE, AS SHOWN ON TRACT NO. 7770, RECORDED IN BOOK 299,
PAGES 15 AND 16, IN THE OFFICE OF SAID COUNTY RECORDER;
THENCE ALONG SAID CENTERLINE OF MARTINGALE DRIVE SOUTH 06059,31"
EAST 495.91 FEET;
THENCE LEAVING SAID CENTERLINE SOUTH 85055'37" WEST 34.84 FEET TO THE
WESTERLY LINE OF SAID MARTINGALE DRIVE AS SHOWN ON SAID TRACT NO.
7770 AND THE TRUE POINT OF BEGINNING;
THENCE LEAVING SAID WESTERLY LINE SOUTH 85055'37" WEST 15.96 FEET TO
THE BEGINNING OF A CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS
OF 1.50 FEET;
THENCE WESTERLY, SOUTHWESTERLY, AND SOUTHERLY ALONG SAID CURVE
2.36 FEET THROUGH A CENTRAL ANGLE OF 90000'00";
THENCE SOUTH 04004'23" EAST 16.50 FEET;
THENCE SOUTH 85055'37" WEST 52.00 FEET;
THENCE NORTH 04004'23" WEST 16.50 FEET TO THE BEGINNING OF A CURVE,
CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 1.50 FEET;
THENCE NORTHERLY, NORTHWESTERLY, AND WESTERLY ALONG SAID CURVE
2.36 FEET THROUGH A CENTRAL ANGLE OF 90000'00";
THENCE SOUTH 85"55'37" WEST 74.00 FEET;
THENCE NORTH 04004'23" WEST 26.60 FEET;
THENCE NORTH 85055'37" EAST 144.40 FEET TO SAID WESTERLY LINE OF
MARTINGALE DRIVE;
THENCE SOUTH 06059'31" EAST 14.65 FEET TO THE BEGINNING OF A CURVE,
CONCAVE EASTERLY, HAVING A RADIUS OF 90.00 FEET;
THENCE SOUTHERLY ALONG SAID WESTERLY LINE AND CURVE 11.98 FEET
THROUGH A CENTRAL ANGLE OF 07037'42" TO THE TRUE POINT OF BEGINNING.
CONTAINING 0.110 ACRES.
Newport Crossings Affordable Housing Agreement Exhibit D-13
EXHIBIT "E"
AFFORDABLE RENTAL PRICE
[Attached Behind this Page]
Newport Crossings Affordable Housing Agreement Exhibit E-1
EXHIBIT "E"
AFFORDABLE RENTAL PRICE
(Current Affordable Rent Price & Income Limits for Very Low -Income Households)
2021 MAXIMUM AFFORDABE RENTAL COST FOR VERY LOW INCOME
(0-50% of Orange County Median Income)
Calculator
0-Bedroom
1-Bedroom
2-Bedroom
3-
4-
Bedroom
Bedroom
Base Rent
$1,177
$1,261
$1,513
$1,748
$1,951
Utility Cost
(Enter utility cost based
on chart below)
- $
- $
- $
- $
- $
Maximum Rent
(After utilities are
subtracted)
$
$
$
$
$
2021 VERY LOW-INCOME LIMITS
0-50% of Orange CountyMedian Income
Persons in
1
2
3
4
5
6
7
8
Household
Maximum
Gross
$47,100
$53,800
$60,550
$67,250
$72,650
$78,050
$83,400
$88,800
Household
Income
ARYABHATA GROUP LLC Exhibit E-1
mmunity Resources
VO �1as m •
2021 Utility Allowance Schedule
The following utility allowances will be used by the Orange County Housing Authority for administration
of
the Housing Choice Voucher Program effective December 1, 2020.
G-e •eMI
Gas
Cooking
3
4
6
7
9
11
Heating
16
18
21
22
25
27
Water
Heating
9
10
14
20
26
31
Natural Gas
Base
Charge
3
Electric
Basic
30
35
49
65
82
100
Cooking
6
7
12
17
21
25
Heating
19
22
25
28
30
35
Water
Heating
17
22
31
37
44
51
Other
Air
Conditioning
9
10
17
23
30
38
Water
45
49
71
104
138
171
Sewer
9
9
11
13
16
18
Trash
17
Refrigerator
9
Stove
7
CURRENT UTILITY ALLOWANCE PUBLISHED FOR THE COUNTY OF
ORANGE SECTION 8 PROGRAM CAN BE FOUND AT:
https.11www. ochousinq org/docurnents-forms
ARYABHATA GROUP LLC Exhibit E-2
EXHIBIT "F"
TENANT INCOME DOCUMENTATION
[Attached Behind this Page]
Newport Crossings Affordable Housing Agreement Exhibit F-1
Exhibit "F"
TENANT FILE - INCOME DOCUMENTATION
The tenant file must document the income of the persons occupying an assisted unit. At a
minimum, the file must contain the following:
Application/Certification
A. Name, age and social security number of persons occupying the unit
B. Source and amount of monthly income of persons 18 years of age and older
C. Students over age of 18 — evidence of full-time status — 12 or more units
D. Dated and signed by each person 18 years of age and older
II. Income Support Documents for Each Person Occupying the Unit
A. Current copy of Section 8 certificate/voucher, if applicable
B. Most recent federal income tax return
C. Birth certificate of minors not showing on federal income tax return
D. Social security award statement
E. Retirement benefits statement
F. Two months' most recent, consecutive paystubs
G. Unemployment compensation statement
H. Third -party verifications from employers, banks, or others with first-hand
information about the applicant's finances. These verifications should be in writing
and can include documented telephone interviews.
I. If self-employed:
1. Most recent Federal business tax return
2. 12 months business bank statements (12 months personal bank
statements, if used for the business such as for a sole proprietor)
3. Profit and loss statement
III. Asset Support Documents for Each Person Occupying the Unit
A. Three months most recent checking and savings account statements
B. Most recent asset statements such as CDs, 401 K, IRAs, investment portfolios
(stocks, bonds, cryptocurrency, etc.)
IV. Income Recertification Support Documents
A. Recertification statement completed and signed by all adult persons occupying
the unit certifying all information in Section I — Application/Certification, above.
B. All documents listed in Section II — Income Support Documents for Each Person
Occupying the Unit, above.
V. Additional Information
A. Any additional information required by applicable federal, state, or local laws
regarding the qualification of prospective tenants for affordable housing dwelling
units.
Newport Crossings Affordable Housing Agreement Exhibit F-1
ANNUAL REPORT
[Attached Behind this Page]
Newport Crossings Affordable Housing Agreement Exhibit G-1
Exhibit "G"
ANNUAL REPORT
The following information will need to be retained and made available to the City of
Newport Beach on an annual basis.
I. Tenant (Qualifying Household) Roster
A list of all current tenants (Qualifying Households) occupying an Affordable
Dwelling Unit including but not limited to:
• Property Name
• Property Address
• Unit number
• Unit Size
• Number persons in unit
• Tenant Name
• Move -In Date/Initial occupancy date
• Monthly Rent Rate
• Utility Allowance
• Household Income (Refer to Exhibit F)
II. Tenant (Qualifying Household) File
At a minimum, the tenant (Qualifying Household) file must contain the following
information.
• Original and subsequent executed lease agreements;
• Initial occupancy date of current tenant;
• Rental rate;
• Name of current tenant;
• Household size of current tenant;
• Household income of current tenant, and information upon which Developer
relied to qualify current tenant;
• Utility allowance schedule
III. Interest and/or Waiting List
A list of all persons that have expressed an interest in occupying an Affordable
Housing Unit.
Newport Crossings Affordable Housing Agreement Exhibit G-1