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2012-547223 D O C ## 2012-0547223 FREE RECORDING REQUESTED I II II I III III II I II IIII I I I I1III I III III II 1 PURSUANT TO GOV CODE SECTION SEP 11 , 2012 3.45 PM 27383 OFFICIAL RECORDS fl SAN DIEGO COUNTY RECORDER'S OFFICE Recording Requested By: ErnestJ Dronenburg,& COUNTYRECORDER Y FEES &00 City of Encinitas PAGES: 17 Planning and Building Department 505 S. Vulcan Avenue 111111111111111111111111111111 IN 1111 Encinitas, CA 92024 And When Recorded Mail To City of Encinitas Planning and Building Department 505 S. Vulcan Avenue Encinitas, CA 92024 Attn. Housing Administrator A.P.N. 256-053-27 AFFORDABLE HOUSING REGULATORY AGREEMENT (Density Bonus) This Affordable Housing Regulatory Agreement (hereinafter the "REGULATORY AGREEMENT") is made and entered into and is effective as of this 4 day of June, 2012 by and between the City of Encinitas (hereinafter the "CITY"), and John LaRaia and Jennifer LaRaia, husband and wife as joint tenants, as to an undivided 20% interest; Russ Haley as Trustee of the Haley Trust dated December 12, 2002, as to an undivided 20% interest; Vincent E. Hoenigman, as Trustee of the Hoenigman Living Trust dated September 17, 1998, as to an undivided 20% interest; Timothy O'Grady, Trustee of the Timothy O'Grady Trust of 2012, dated May 8, 2012, as to an undivided 20% interest; and Scott Haley and Tara Haley, Trustees of the Scott and Tara Haley Family Trust dated April 18, 2012, as to an undivided 20% interest; all as tenants in common (hereinafter the "OWNER"). RECITALS A. Whereas, the OWNER is the owner of real property (hereinafter the "PROPERTY") described in Attachment A, attached hereto and made a part hereof; B. Whereas, the CITY approved a Density Bonus for Tentative Map 05-072, in accordance with Government Code 65915, and under said law the OWNER must restrict occupancy in one unit to a lower-income household for a term of thirty (30) years, I C. Whereas, the OWNER has designated Lot 6 of TM 05-072 as the required affordable unit and the OWNER has agreed to maintain a residential unit (hereinafter "UNIT") on the PROPERTY, and, D Whereas, in order to restrict use of the affordable UNIT, the OWNER is bound by this REGULATORY AGREEMENT and has consented to be regulated and restricted as provided herein. E. Whereas, this REGULATORY AGREEMENT supersedes the Affordable Housing Regulatory Agreement recorded October 5, 2010, as Document # 2010-0533423 of Official Records of the San Diego County Recorder's Office. NOW, THEREFORE, the parties hereto agree as follows: 1 TERM OF AGREEMENT The term of this REGULATORY AGREEMENT shall commence on the issuance of a certificate of occupancy for the UNIT and shall continue for thirty (30) years. 2. MAINTENANCE OF THE AFFORDABLE UNIT A. OWNER shall maintain a residential unit on the PROPERTY B. The exterior appearance of the affordable UNIT shall be compatible with units in the surrounding neighborhood, including units within TM 05-072. The interior appearance finishes, and amenities of the affordable UNIT shall be comparable to new, affordable homes in the CITY or surrounding communities. C The quality of materials, floor coverings, cabinets, fixtures, appliances, doors, and windows shall be specified in sufficient detail to ensure that the quality level is comparable to new affordable homes in the CITY or surrounding communities to the satisfaction of the Planning and Building Director (hereinafter, the "DIRECTOR"). D The UNIT shall be made affordable to a lower-income household earning eighty percent (80%) or less of the Area Median Income (AM[) for San Diego County, and adjusted for household size, as published periodically by the U.S. Department of Housing and Urban Development (HUD). E. Occupancy of the UNIT shall be appropriate to the number of bedrooms in the UNIT As a general rule and policy, an appropriately sized household is no less than one person per bedroom and no more than two persons per bedroom, which is reasonable under the Fair Housing Act and intent of program assistance. F The UNIT shall be a minimum of 1,809 square feet of living space with a minimum of three bedrooms and two and a half baths; plus a one-car garage. Based on a significant reason, the UNIT size may be reduced through approval of a Design Review permit. G. The UNIT shall be provided with adequate usable yard area comparable to new, affordable units in the community 2 H. During the term of this agreement, the UNIT shall be utilized for residential use only in accordance with applicable local ordinances and regulations; any commercial use or transient habitation (of less than thirty days) is specifically prohibited. 3. OPTION TO RENT OR SELL UNIT A. The OWNER shall either rent or sell the UNIT to an eligible, lower-income household (as defined in Section 2.D), and in accordance with the terms and conditions contained herein. B. OWNER shall make the UNIT available for sale or rent to the general public through an advertisement in local newspaper(s). Applications shall be made available and accepted for a minimum of fourteen days. The OWNER may employ additional marketing methods that are in accordance with professional standards of the industry and fair housing laws. The CITY will require documentation of the selection process and the CITY may additionally advertise the UNIT availability C OWNER is prohibited from renting or selling the UNIT to a family member, relative, employee, or pre-determined household. D OWNER may sell the property with the prior written approval of the DIRECTOR. The sale of the UNIT may be to a non-qualifying household, if the UNIT will be continuously rented to a qualifying lower-income household. At the time of said sale, the subsequent owner shall execute a new Affordable Housing Regulatory Agreement with the CITY 4 OPTION TO SELL (Except as provided for in Section 3.D) A. The UNIT shall only be sold to a lower-income household (as defined in Section 2.D). In addition, the homebuyer must certify that the household will occupy the UNIT as owner occupant and principal residence, and that the household does not own or have an interest in any real property B. For any proposed homebuyer, the income of all adult members of the household must be verified by the OWNER using source documentation (e.g., tax return, wage statement, bank statement, public benefit statement) C. Prior to opening escrow to sell the UNIT, OWNER shall provide CITY with the proposed homebuyer's income statement and copies of the documentation of income. The DIRECTOR shall confirm or deny eligibility based on the documentation provided. D The maximum affordable sales price for the UNIT shall be consistent with State law and be based on a total housing cost (including principal, interest, taxes, insurance, utility allowances, and any fees or assessments) of thirty percent (30%) of eighty percent (80%) of the AMI (as defined in Section 2.D), based on a five-person household. 3 1) The calculation of the affordable sales price shall include a five percent downpayment. 2) The interest rate used in the calculation shall be based on the current Freddie Mac Monthly Average Commitment Rate on 30-Year Fixed- Rate Mortgages. 3) Actual financing to be obtained by any prospective homebuyer shall be a fixed rate loan fully amortized over thirty years. Prior to the sale of the UNIT, the DIRECTOR shall approve the sales price (as described in Section 4.D) E. OWNER shall record deed restrictions, approved by the DIRECTOR, that restrict the resale of the property only to other eligible households for the term of the REGULATORY AGREEMENT The CITY may enforce the deed restrictions by recording a second deed of trust on the property securing a note or other appropriate document. If a note is used, the amount of the note shall be equal to the amount of subsidy provided by the OWNER (the difference between the market price and the affordable sales price). 5. OPTION TO RENT A. The UNIT shall be rented only to a lower-income household (as defined in Section 2.D). Prior to occupancy, the proposed tenant's household income must be verified using source documentation for all adult members of the household (e.g., tax return, wage statement, bank statements, public benefit statements) B. The maximum monthly rental rate to be charged for the UNIT shall be consistent with State law and be based on thirty percent (30%) of eighty percent (80%) of AMI (as defined in Section 2.D) for a five—person household (divided by 12 months). The DIRECTOR shall approve the maximum rental rate for the UNIT, including the applicable utility allowance. Rental rate may be adjusted periodically in accordance with the current AM] schedule (as defined in Section 2.D). C OWNER shall maintain tenant files containing information on the household income and the source documentation used by OWNER to determine household income. Said files shall be maintained for a period of three years from the termination of any tenancy Upon written request, OWNER shall allow the CITY access to review tenants' files and financial records for compliance with this REGULATORY AGREEMENT D OWNER shall re-certify the tenant's income status every twelve months. In the event a tenant no longer qualifies as lower-income, the OWNER shall provide said tenant with the most expeditious eviction notice process, in accordance with applicable State law 6. MANAGEMENT AND MAINTENANCE (APPLIES TO RENTAL OPTION ONLY) A. Any tenant selected to occupy the UNIT shall enter into a written occupancy agreement or lease with the OWNER. OWNER shall use the standard lease form 4 published by the California Apartment Association or other form approved by the DIRECTOR. B. Leases and the landlord-tenant relationship shall be subject to California law and the provisions of this REGULATORY AGREEMENT The OWNER shall establish reasonable rules of conduct and occupancy that comply with State and local laws and regulations. C OWNER is responsible to maintain the leased UNIT in a habitable condition and in good repair at all times. OWNER is responsible for maintenance costs, including all repairs, corrections and replacements necessary to maintain and preserve the UNIT in a safe and sanitary condition in accordance with the HUD's Housing Quality Standards (HQS). Upon written request by the CITY, the OWNER shall provide DIRECTOR or representative with access to inspect the UNIT for compliance with this section. D OWNER shall obtain, and at all times during the term of this REGULATORY AGREEMENT shall maintain policies of general liability and property damage insurance from an insurance company authorized to be in business in the State of California. The property damage insurance shall be in an amount sufficient to replace the UNIT in the event of fire or other major damage. OWNER may self- insure, with the prior written approval of the DIRECTOR. E. OWNER may contract with a management agent for the performance of the services or duties. However, such an arrangement does not relieve the OWNER of responsibility for proper performance of these duties. F OWNER shall make a good faith effort to expeditiously re-rent the UNIT whenever it becomes vacant. In the event the UNIT is vacant for a period of more than thirty (30) days, the OWNER shall notify the CITY If available, CITY shall provide OWNER with a list of eligible households seeking rental housing. CITY can extend the affordable housing restriction period, if the UNIT is not continuously rented (i.e., vacancies of more than 30 days) 7 REPORTING REQUIREMENTS (APPLIES TO RENTAL OPTION ONLY) OWNER shall submit a report to the DIRECTOR immediately after initial lease-up of the UNIT and annually thereafter, on a form prescribed by the DIRECTOR. The report shall include information on the household(s) occupying the affordable UNIT during the prior year, household income, and the amount of rent collected. Whenever requested by the CITY, the OWNER shall provide source documentation demonstrating the qualified status of the household(s). 8. NON-DISCRIMINATION OWNER shall not discriminate against any prospective tenant or homebuyer on the basis of race, color, religion, sex, national origin, familial status, disability or other individuals protected under State and Federal fair housing law 5 9 CERTAIN ACTS PROHIBITED OWNER shall not make any sale, encumbrance (except for a first Deed of Trust associated with mortgage financing), assignment or conveyance, or transfer in any other form, of the PROPERTY or of its entire interest therein other than in accordance with the terms of this REGULATORY AGREEMENT 10 VIOLATION OF REGULATORY AGREEMENT BY THE OWNER In the event of the violation of any of the provisions of this REGULATORY AGREEMENT by the OWNER, the CITY may give written notice thereof to the OWNER by registered or certified mail addressed to the OWNER at the address stated in this Regulatory Agreement, or to such other address as may have been designated by the OWNER, and if such violation is not corrected to the satisfaction of the CITY within thirty (30) days after the date such notice is mailed (or within such further time as the CITY, in its reasonable discretion, may permit), the CITY may, without further prior notice, declare in writing a default under this REGULATORY AGREEMENT effective on the date of such declaration of default, and upon any such declaration of default the CITY may apply to any court, State or Federal, for specific performance of this REGULATORY AGREEMENT, for an injunction against any violation by the OWNER of this REGULATORY AGREEMENT, for the appointment of a receiver to take over and operate the UNIT in accordance with the terms of this REGULATORY AGREEMENT, or for such other relief as may be appropriate, it being agreed by the OWNER that the injury to the CITY arising from a default under any of the terms of this REGULATORY AGREEMENT would be irreparable and that it would be extremely difficult to ascertain the amount of compensation to the CITY which would afford adequate relief, in light of the purposes of the Density Bonus program. 11 AMENDMENT This REGULATORY AGREEMENT shall not be altered or amended except by writing executed between the parties. 12. SEVERABILITY In the event that any provision or covenant of this REGULATORY AGREEMENT is held by a court of competent jurisdiction to be invalid or unenforceable, then it shall be severed from the remaining portions of this REGULATORY AGREEMENT, which shall remain in full force and effect. 13. BINDING ON SUCCESSORS. This REGULATORY AGREEMENT shall bind, and the benefits thereof shall inure to, the respective parties hereto, their legal representatives, executors, administrators, successors in the office or interest, and assigns; provided, however, that the OWNER may not assign this REGULATORY AGREEMENT or any of its obligations hereunder, voluntarily or by operation of law, without the prior approval of the CITY, excluding an assignment to an affiliate. As used herein, "affiliate" means any entity in which OWNER 6 holds an ownership interest, or any person or entity that holds an ownership interest in the PROPERTY 14 GENDER. The use of the plural in this REGULATORY AGREEMENT shall include the singular and the singular shall include the plural, and the use of one gender shall be deemed to include all genders. 15. ELECTION OF REMEDIES EVENT OF DEFAULT The remedies of the CITY hereunder or under any other instrument providing for or evidencing the financial assistance provided herein are cumulative, and the exercise of one or more of such remedies shall not be deemed an election of remedies and shall not preclude the exercise by the CITY of any one or more of its other remedies. 16. WAIVER. No waiver by the CITY of any breach of or default under this REGULATORY AGREEMENT shall be deemed to be a waiver of any other or subsequent breach or default hereunder 17 GOVERNING LAW This REGULATORY AGREEMENT shall be construed in accordance with and governed by the laws of the State of California. 18. NOTICES. Written notices and other written communications by and between the parties hereto shall be addressed as follows unless and until a party hereto has in writing, communicated a different address to the other party hereto CITY OWNER City of Encinitas John LaRaia 505 S. Vulcan Ave Encinitas, CA 92024 3818 Park Blvd. Attn: Housing Administrator San Diego, CA 92103 IN WITNESS WHEREOF, OWNER has executed this REGULATORY AGREEMENT as of the day and year first above written. OWNER John LaRaia and Jennifer Lanai band and wife, as joint t/en is B y Date. (� 2t .7(" n La is 7 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California County of San Diego On June 21, 2012 before me, Kris Johnson, Notary Public, personally appeared John LaRaia who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/they authorized ca aci (ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY, under the laws of the State of California, the foregoing paragraph is true and correct. WITNESS my hand and official seal. KRIS JOHNSON /Sy (S1TL Commission # 1871680 `a :_�� Notary Public-California > Kris ohnso , Notary Public , San Diego County My Comm Expires Nov 20.2013 C ommusion#1871689 . NIv(ommtsston Expires. November 20,2013 OPTIONAL though the information below is not required by law.it ma} prove v aluable to persona relvLT on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Affordable Housing Regulatory Agreement(Densit), Bonus) Lot 6 Document Date: June 21 2012 CA Rev 1/01/08 By. , ���'vL!( Date- - Jennifer LaRaia Russ Haley, as Trustee of the Haley Trust dated December 12, 2002 By- C Date: za z R ss Haley, Trustee Vincent E. Hoenigman, as Trustee of the Hoenigman Living Trust dated September 17, 1998 By- Date: Vincent E. Hoenigman, Trustee Timothy J. O'G50Kas Trustee of the Timothy J. O'Grady Trust rof_2012, dated May 8, 2012 By Date: _�� Timothy J. O'Gy�d , rustee ' _ Scott Haley and Tara Haley, Trustees of the Scott and Tara Haley Family Trust dated April 18, 2012 By- Date Scott Haley, Trustee By- Date. Tara Haley, Trustee (Notarization of signatures must be attached) CITY City of Encinitas By- Date Tom Curriden, City Planner (Notarization not required) 8 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of Cali ornia County of San Diego On June 21, 2012 before me, Kris Johnson, Notary Public personally appeared Jennifer L La Raia who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/then executed the same in his/her/they authorized canacity(ies), and that by his/her/their IiMture(s) on the instrument the ep rson(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certifv under PENALTY OF PERJURY, under the laws of the State of California, the foregoing paragraph is true and correct. WITNESS my hand and official seal. / '\ ,m KRIS JOHNSON Commission 8 1671669 Notary Public•California z. z war San Diego County lznsoyr, Notan Public My Comm EMpires Nov 20.2013 Kri Jo � l 7 M'. C'ommussion 41871689 7•^ .Ah Cono ussmn Expires November 10, 1013 OPTIONAL Though then formation helon,is not required by lair it mar prove valuable to persons relrutg on the document and could prevent ftauduleni removal and reattachment of this form to another document Description of Attached Document Affordable Housing Regulatory Agreement(Density Bonus) Lot 6 Document Date: June 21, 3013 CA Rev I l01 t08 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California County of San Diego On _ June 21, 2012 before me, Kris Johnson, Notary Public, personally appeared Russell C. Haley who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/they authorized caPacity(ies), and that by his/her/their siynature(s) on the instrument the ep rson(s), or the entity upon behalf of which the ep rson(s) acted, executed the instrument. I certify under PENALTY OF PERJURY, under the laws of the State of California, the foregoing paragraph is true and correct. WITNESS my hand and official seal. RfS JOHNSON I l [%:CoM;nrKn laalon 1 1871689 try Pabllc-Calltomla San DIIWW CWldy Kris ohnsop , N tary Public m.Ex M Nov2o,2019 Commission#18 9 hly Commission Expires. November 20,2013 OPTIONAL Though the information below is not required by laa,it mar prove valuable to persons rdymg on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Affordable Housing Regulatory Agreement(Density Bonus) Lot 6 Document Date: June 21 2012 CA Rev 1/01/08 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California County of San Diego On June 25, 2012 before me, Kris Johnson, Notary Public, personally appeared Timothy J. O'Grady who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/they authorized capacity(ies), and that by his/her/their sianature(s) on the instrument the ep rson(s), or the entity upon behalf of which the ep rson(s) acted, executed the instrument. I certify under PENALTY OF PERJURY, under the laws of the State of California, the foregoing paragraph is true and correct. WITNESS my hand and official seal. +{ /^ KRIS JOHNSON + Lou,' Commission V 1871689 Notary Public-California jKris , ot,Ary Public = San Diego County My Comm.Expires Nov 20,2013 r Commtssum d 18716 My Commission Expires- November 20,2013 OPTIONAL Though the information below IS not required by law,it may prove valuable to persons rdV mg on the document and could present fraudulent removal and reattachment of this form to another document Description of Attached Document Affordable Housing Regulatory Agreement(Density Bonus) Lot 6 Document Date: June 21, 2012 CA Rev 1/0 1 i08 By. Date Jennifer LaRaia Russ Haley, as Trustee of the Haley Trust dated December 12, 2002 By Date Russ Haley, Trustee Vincent E. Ho eemig an, as T u� of the Hoenigman Living Trust dated September 17, 1998 By r/// Date ` t Vincent E. Hoenig an, 'tee Timothy J. O'Grady, as Trustee of the Timothy J. O'Grady Trust of 2012, dated May 8, 2012 By Date Timothy J. O'Grady, Trustee Scott Haley and Tara Haley, Trustees of the Scott and Tara Haley Family Trust dated April 18, 2012 By Date Scott Haley, Trustee By. Date. Tara Haley, Trustee (Notarization of signatures must be attached) CITY City of Encinitas By. Date: Tom Curriden, City Planner (Notarization not required) 8 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California County of San Diego On July 25, 2012 before me, Kris Johnson, Notary Public, personally appeared Vincent E. HoeniQman who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/they authorized ca aci (ies), and that by his/her/their sienature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY, under the laws of the State of California, the foregoing paragraph is true and correct. WITNESS my hand and official seal. r KRIS JOHNSON Commission at 1871689 a < Notary Public-California Kris Joh on otary Public = San Diego County M Comm.Ex Ires Nov 20,2013 Commission 71689 My Commission Expires: November 20,2013 OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Affordable Housing Regulatory Agreement(Density Bonus) Lot 6 Document Date: July 25, 2012 CA Rev 1/01/08 BY Date Jennifer LaRaia Russ Haley, as Trustee of the Haley Trust dated December 12, 2002 BY' Date Russ Haley, Trustee Vincent E. Hoenigman, as Trustee of the Hoenigman Living Trust dated September 17, 1998 BY' Date Vincent E. Hoenigman, Trustee Timothy J. O'Grady, as Trustee of the Timothy J. O'Grady Trust of 2012, dated May 8, 2012 BY' Date Timothy J. O'Grady, Trustee Scott Haley and Tara Haley, Trustees of the Scott and Tara Haley Family Trust dated April 18, 2012 By-, Date Zz Zo/L co Haley Tr s e BY- Date G a a�_�ara Haley, T ustee (Notarization of signatures must be attached) CITY City of Encinitas By. — Date Tom Curriden, City Planner (Notarization not required) 8 ACKNOWLEDGMENT Title of Document 4FFo�cE'a�lo � Vte4rtQN.,1" R2 S � C.�w� /a-PN a56-S 2 � Date of Document --------------------------------------------------------------------------- State of California County of Orange On -%. a>_ , '?- I %— before me, George M. Kay, a Notary Public, personally appeared Tr~ve.. N a(t w a,w( S cA 7r /4 ley who proved proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that heft /they executed the same in h /their authorized capacity(ies), and that by h /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. GEORGE M. KAY Sigg 'n COMM.# 1918737 Z nature V r \ 2 ' NOTARY PUBLIC-CALIFORNIA C Notary Public ORANGE COUNTY Notary My Comm.Expires Jan.21,2015 For Notary Stamp ATTACHMENT A LEGAL DESCRIPTION Real property in the City of Encinitas, County of San Diego, State of California, described as follows: LOT 6 INCLUSIVE OF CITY OF ENCINITAS TRACT NO. 05-072, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO 15804 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY DECEMBER 23, 2010 9