2015-44317 Recording a -st d : DOC# 2015-0044317
Nrst knedcon fill
Subdivision Dept.
Jan 30, 2015 04:59 PM
FREE RECORDING REQUESTED OFFICIAL RECORDS
PURSUANT TO GOV. CODE SECTION Ernest J. Dronenburg, Jr.,
27383 SAN DIEGO COUNTY RECORDER
FEES'. $51.00
f1eGO-F&I-9-Requested By-.,
City of Encinitas
Planning and Building Department
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To;
City of Encinitas
Planning and Building Department
505 S. Vulcan Avenue
Encinitas, CA 92024
Attn: Housing Programs Analyst
731-02 .. ..........._____,,,., . ...�..._._ .. ........�.. .�
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A.P.N. 254-
SECOND AMENDED AND RESTATED AFFORDABLE HOUSING REGULATORY
AGREEMENT
This Second Amended and Restated Affordable Housing Regulatory Agreement
(hereinafter the "REGULATORY AGREEMENT") is made and entered into and is
effective as of this J day of jnua,a ��� ,2015 by and between the City of Encinitas
(hereinafter the "CITY"), and TRACY SLEDGE AND LISA A. SLEDGE, HUSBAND
AND WIFE AS JOINT TENANTS (hereinafter the "OWNER").
RECITALS
A. Whereas, the OWNER is the owner of the real property (hereinafter the
"PROPERTY") described in Attachment A, attached hereto and made a part
hereof;
B. Whereas, on June 1, 2006, the Planning Commission of the City of Encinitas
adopted Resolution No. PC 2006-29 that approved Tentative Map #03-090, with
a 69-unit residential subdivision; this subdivision is to be called "Coral Cove";
C. Whereas, the PROPERTY is subject to that certain Amended and Restated
Affordable Housing Regulatory Agreement dated July 17, 2013 (the "ORIGINAL
REGULATORY AGREEMENT") that was recorded as Document No. 2013-
0493530 in the Official Records of the San Diego County Recorder on August 6,
2013 and was an agreement between the CITY and Shea Homes Limited
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Partnership, a California limited partnership (hereinafter the ORIGINAL
OWNER);
D. Whereas, the ORIGINAL OWNER has fulfilled the obligations and requirements
under the ORIGINAL REGULATORY AGREEMENT;
E. Whereas, on April 21, 2011, the CITY passed and adopted Resolution No. PC
2011-10, which modified Resolution No. PC 2006-29 dated June 1, 2006, which
is referred to in this REGULATORY AGREEMENT as "Approval," and the
applicable timing and manner of satisfaction of affordable housing requirements
as further described herein;
F. Whereas, the ownership of the PROPERTY has changed since the ORIGINAL
REGULATORY AGREEMENT was entered and recorded, and the PROPERTY
has been conveyed to the OWNER, necessitating a release from the ORIGINAL
REGULATORY AGREEMENT and replacement of the ORIGINAL
REGULATORY AGREMEMENT with this REGULATORY AGREEMENT;
G. Whereas, the OWNER has met all of the requirements and qualifications
described in the ORIGINAL REGULATORY AGREEMENT to purchase
PROPERTY, and ORIGINAL OWNER has provided CITY with necessary source
documentation to verify eligibility of OWNER, and;
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H. Whereas, in order to restrict use of the PROPERTY, the OWNER is bound by
this REGULATORY AGREEMENT and has consented to be regulated and
restricted as provided herein.
NOW, THEREFORE, the parties hereto agree as follows:
1. TERMINATION OF ORIGINAL REGULATORY AGREEMENT.
Upon the execution of this REGULATORY AGREEMENT, the ORIGINAL
REGULATORY AGREEMENT is hereby cancelled, terminated, and the
PROPERTY is thereby released from the same.
2. TERM OF AGREEMENT.
The term of this REGULATORY AGREEMENT shall commence on the date hereof
and shall continue, as to the PROPERTY for 55 years from the first day of the
month after this REGULATORY AGREEMENT is recorded.
3. NOTICE TO CITY.
OWNER agrees that it will give the CITY notice of any prospective transfer, sale,
or conveyance of the PROPERTY not less than forty five (45) days before the
proposed sale, transfer, or conveyance by personal delivery of a notice at the
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address set forth for the CITY in paragraph 17 of this REGULATORY
AGREEMENT. Time is of the essence.
4. LEASE OF PROPERTY PROHIBITED.
During the term of this REGULATORY AGREEMENT, OWNER shall not rent or
sublet the PROPERTY, or any part thereof, to any person and/or entity. Provided
however, the CITY may grant temporary waivers of this requirement in the event
of hardship affecting OWNER, such as illness in the family, military deployment
or re-assignment, need to relocate to obtain employment, and the like.
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5. TRANSFER, CONVEYANCE OF PROPERTY RESTRICTED.
The sale, transfer and/or conveyance of the PROPERTY is restricted as follows:
A. The PROPERTY may only be sold, transferred or conveyed to a qualified
purchaser whose household income is less than eighty percent (80%) of the
median income as defined by the U.S. Department of Housing and Urban
Development (HUD) from time to time for the San Diego metropolitan area, as
adjusted for family size and as verified and approved by CITY.
B. Except as provided in paragraph 5(D) hereof, the PROPERTY must be used
only as the principal residence of the subsequent purchaser during the time of
ownership. OWNER shall make a good faith effort to obtain a qualified
purchaser residing in the City of Encinitas, prior to considering other qualified
purchasers. Such effort shall include, but not limited to, local public
advertising, listing in local real estate publications, and CITY suggested
marketing. The CITY shall determine if a "good faith" effort has been
performed. The CITY shall not unreasonably withhold its approval.
C. The sale price to the subsequent purchaser must be at a price that is "affordable
to the subsequent purchaser(s)". "Affordable to the subsequent purchaser(s)" is
achieved through the following calculation:
The maximum affordable sales price (the "Affordable Housing Cost") for
the PROPERTY shall be consistent with State law and be based on a
total housing cost (including principal, interest, taxes, insurance and HOA
fee) of thirty three percent (33%) of gross household income. For the
PROPERTY, CITY will assume a three (3) person household for a two (2)
bedroom unit and a five (5) person household for a three (3) bedroom
unit.
The calculation of the affordable sales price shall include a five percent
down payment.
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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.
Actual financing to be obtained by any prospective homebuyer shall be a
fixed rate loan fully amortized over thirty years.
D. In the event that OWNER is unable to find, despite good faith efforts to do so,
a qualified purchaser to purchase the PROPERTY, OWNER may sell the
PROPERTY to a person other than a qualified purchaser by first offering to
sell the PROPERTY to the CITY for a purchase price equal to highest
purchase price at which a qualified purchaser could qualify to purchase the
PROPERTY at an Affordable Housing Cost. The CITY shall accept or reject
the offer to sell the PROPERTY to the CITY within thirty (30) days of the date
of receipt of the offer to sell. In the event that the CITY declines to purchase
the PROPERTY, OWNER may proceed to market and sell the PROPERTY to
any purchaser without regard to the resale conditions set forth in this
REGULATORY AGREEMENT and this REGULATORY AGREEMENT shall
terminate; provided that upon or prior to the close of escrow OWNER shall
pay to the CITY the amount specified for such a sale by that Second Deed of
Trust in favor of the CITY that is recorded against the PROPERTY ("Second
Deed of Trust").
The "Equity Sharing Amount" means an amount equal to the
appreciation in the value of the PROPERTY determined by the
difference between the Market Sales Price and the Affordable Housing
Price at the time of subsequent sale (as defined below).
The "Affordable Housing Price" is the purchase price that could be paid
by a qualified purchaser at an Affordable Housing Cost.
The "Market Sales Price" is the price to be paid by the buyer of the
PROPERTY (the "Buyer") to OWNER for OWNER's interest in the
PROPERTY, exclusive of escrow fees, title insurance costs, broker's
commissions, loan fees or any other closing or transaction costs.
Upon a showing of hardship by the OWNER to the CITY in writing, the CITY
may waive any one or combination of the following: the resale restrictions,
OWNER's obligation to sell to the CITY, OWNER's obligation to pay the CITY
the Equity Sharing Amount and/or OWNER's obligation to pay any other
amounts specified in the Second Deed of Trust.
E. Notwithstanding the foregoing, the following limited circumstances are
acknowledged by the CITY to be permitted transfers:
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(i) the transfer results from the death of an OWNER and the transfer is
to the surviving spouse of the OWNER and the surviving spouse is also an
OWNER;
(ii) a transfer by an OWNER to his or her spouse when the spouse
becomes, by such a transfer, a co-owner of the PROPERTY;
(iii) a transfer of the PROPERTY resulting from a decree of dissolution
of the marriage or legal separation or from a property settlement
agreement incidental to such a decree which requires the OWNER to
continue to make any required payments under the Second Deed of Trust
and by which a spouse who is already an OWNER becomes the sole
owner of the PROPERTY; and/or
(iv) a transfer by an OWNER to an inter vivos trust in which the
OWNER is the sole current beneficiary
F. Except for a transfer pursuant to paragraph 5(D) hereof, which will terminate
this REGULATORY AGREEMENT, a transfer of the PROPERTY in
accordance with the terms hereof must be accompanied by a recordable
assignment and assumption of this REGULATORY AGREEMENT executed
by the transferee.
6. REPORTING REQUIREMENTS.
OWNER shall submit a report to the CITY annually on a form prescribed by the
CITY. The report shall certify that OWNER continues to occupy PROPERTY as
OWNER's principal residence and is in compliance with all restrictions contained in
this REGULATORY AGREEMENT. OWNER shall provide source documentation
demonstrating OWNER's residency of PROPERTY with the annual report.
7. 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.
8. 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 without the prior
approval of the CITY.
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9. 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, certified or overnight 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 PROPERTY 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.
10. AMENDMENT.
This REGULATORY AGREEMENT shall not be altered or amended except by
writing executed between the parties.
11 . 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.
12. 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.
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13. 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.
14. 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.
15. 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.
16. GOVERNING LAW.
This REGULATORY AGREEMENT shall be construed in accordance with and
governed by the laws of the State of California.
17. MORTGAGEE PROTECTION.
No violation or breach of the covenants, conditions, restrictions, provisions or
limitations contained in this REGULATORY AGREEMENT shall defeat, render
invalid or, in any way, impair the lien or charge of any permitted deed of trust
recorded on the PROPERTY provided, however, that any subsequent owner of
the PROPERTY shall be bound by the covenants, conditions, restrictions,
limitations and provisions of this REGULATORY AGREEMENT, whether such
owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's
sale or otherwise.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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 Tracy and Lisa Sledge
505 S. Vulcan Ave. 148 Stonesteps Way
Encinitas, CA 92024 Encinitas, CA 92024
Attn: Housing Programs Analyst
IN WITNESS WHEREOF, OWNER has executed this REGULATORY AGREEMENT as
of the day and year first above written.
OWNER
TRACY D. SLEDGE AND LISA A. SLEDGE, HUSBAND AND WIFE AS JOINT
TENANTS
By , ,
Date: C
r
Tracy
Sledge
By
Date:
Lisa gledge fyd
(Notarization of signature must be attached)
City of :°r1 vitas
By: �� ._� Date:
Manjeet Ranu, A IGC
Deputy Director of PbTi,ning apd'Building
(Notari�Isjqnature must be attached)
APPROVED AS TO FORM'e"""
w,
Y'
Name:
11 8U. NOTICES.
Written notices and other written communications by and betty n the parties
hereto shall be addressed as follows unless and until a ppTty hereto has in
riting, communicated a different address to thZR
ereto.
CIT OWN
City of En c' itas Trac e
505 S. Vulca v e. 1 Stonesteps Way
Encinitas, CA 9 24 ncinitas, CA 92024
Attn: Housing Pro ms Analyst
IN WITNESS WHEREOF, O ER s executed this REGULATORY AGREEMENT as
of the day and year first above wr n.
OWNER
TRACY D. SLEDGE ND LISA A. SLE E, HUSBAND AND WIFE AS JOINT
TENANTS
By: ate:
Tra Sledge
By: Date:
Lisa Sledge
(Notarization of signature must be attached)
CITY
City of Encini s
By: Date: o t /-2S//-S
n Gaspar, Mayor
(Notarization of signature must be attached)
APPROVED AS TO FORM: j
By: dew "YYL/19 Date: 2 /
e
Name:
Its: IE ���ldP.z—
8
LIII 1 A AILL-PUIRPOSE ACKNOWLEDGMENT CIVIL CODE § '1'189
V ;
.........................
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
............................ ..............................
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
........................................................................ ..................... —-------..............
File No: DTR-4616233 (AM)
STATE OF California )SS APN No:
...................... .. ..........
.. .....................",
COUNTY OF
21111
Notary Public, personally appeared
On before me, 41 L, i �
..............................
e":;1 ..........
who 'proved to e on the b-
�asis o atisfactory evidence to be the person(s) whose rittme(s) is$Wo subscribed to the within
instrument and acknowledged to me that he/she/tftep,executed the same in his/her661r authoriz capacity(ies), and that by
1z."I'll,11
his/herttfi�dir 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",ayd Qfficiaj, sraL,,, 1%
HAN' DON
4A), COMM #2011562
Signature
A" CTAY Y FJ8LIC*CALIFORNIA
SAN DIEGO COUNTY
m,E ARCH 11,201
This area for official notarial seal.
OPTIONAL SECTION - NOT PART OF NOTARY ACKNOWLEDGEMENT
CAPACITY CLAIMED BY SIGNER
Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the
documents.
F—] INDIVIDUAL
F-1 CORPORATE OFFICER(S) TITLE(S) GENERAL
F__1 PARTNER(S) F] LIMITED
F-1 ATTORNEY-IN-FACT
F—] TRUSTEE(S)
F7 GUARDIAN/CONSERVATOR
F7 OTHER
SIGNER IS REPRESENTING:
———-—--
Name of Person or Entity Name of Person or Entity NEON=
OPTIONAL SECTION - NOT PART OF NOTARY ACKNOWLEDGEMENT
Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form.
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW
TITLE OR TYPE OF DOCUMENT�
NUMBER OF PAGES DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE .......
Reproduced by First American Title Company 11/2007
File Number: DTR-4616233
Exhibit "A"
Legal Description
Real property in the City of Encinitas, County of San Diego, State of California, described as follows:
PARCEL 1:
LOT 41 OF CITY OF ENCINITAS TRACT NO. 03 090 CORAL COVE, ACCORDING TO MAP THEREOF NO.
15613, FILED WITH THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON SEPTEMBER 19,
2007 ("FINAL MAP").
PARCEL 2:
A NON-EXCLUSIVE EASEMENT ON AND OVER ALL "ASSOCIATION PROPERTY", INCLUDING THE
"PRIVATE STREETS" LOCATED WITHIN LOTS 78 AND 79 OF THE FINAL MAP, PURSUANT AND SUBJECT
TO THE TERMS AND PROVISIONS OF THAT CERTAIN THE DEED AND DECLARATION ESTABLISHING
ACCESS EASEMENT RIGHTS RECORDED MAY 14, 2014, AS DOCUMENT NO. 2014 0196100, IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ("ACCESS DECLARATION"),
FOR USE, OCCUPANCY AND ENJOYMENT OF, AND INGRESS AND EGRESS TO, THE AMENITIES LOCATED
THEREON, SUBJECT TO THE TERMS AND PROVISIONS OF THE DECLARATION OF RESTRICTIONS FOR
CORAL COVE RECORDED MAY 2, 2014, AS DOCUMENT NO. 2014 2014-0178277 IN THE OFFICE OF THE
COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ("DECLARATION"). THIS EASEMENT IS
APPURTENANT TO PARCEL 1 ABOVE DESCRIBED AND SHALL BECOME EFFECTIVE AS TO EACH LOT OR
EASEMENT WITHIN THE ASSOCIATION PROPERTY UPON THE LATER TO OCCUR OF (I)THE
RECORDATION OF THIS DEED, OR(II)THE CONVEYANCE OF RECORD OF THE ASSOCIATION
PROPERTY TO THE ASSOCIATION.
PARCEL 3:
A NON-EXCLUSIVE EASEMENT ON AND OVER THE MOTOR COURT(OTHER THAN THAT PORTION OF
THE MOTOR COURT ON PARCEL 1)THAT PROVIDES PEDESTRIAN AND VEHICULAR ACCESS FROM THE
PRIVATE STREETS TO PARCEL 1. THE LOCATION OF THE MOTOR COURT(OTHER THAN THAT PORTION
LOCATED ON PARCEL 1) PROVIDING ACCESS TO PARCEL 1 IS DESCRIBED ON THE FINAL MAP AND
DEPICTED ON EXHIBIT "B" TO THE DECLARATION.
A.P.N.: 254-731-02-00
CALIFORNIA 111-Lmm ACKNOWLEDGEMENT
"
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
File No: DTR-4616233 (AM)
STATE OF California )SS APN No:
COUNTY OF m. I ..... )
r
Not
k
On �� � before me, nary Public, personally appeared
Ltoryproved to v e on the basis of satis evide nce to be the person(s) whose na e(s) is/,oredsubscribed to the within
instrumerit.,,and acknowledged to me that he/she/( y.)executed the same in his/her/tfie, authorized capacity(ies), and that by
his/her/ hei 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 oiraVseal ' LOSHANDONISOtt Si nature Of ' * LIFO I�h�9 � W I �f7�9R�fiY
`.M CH 16® 17
�,.
This area for official notarial seal.
OPTIONAL SECTION - NOT PART OF NOTARY ACKNOWLEDGEMENT
CAPACITY CLAIMED BY SIGNER
Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the
documents.
0 INDIVIDUAL
❑ CORPORATE OFFICER(S) TITLES)
0 PARTNER(S) ❑ LIMITED ❑ GENERAL
❑ ATTORNEY-IN-FACT
0 TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
0 OTHER
SIGNER IS REPRESENTING:
Name of Person or Entity � Name of Person r Entity
� �
. .... .......................
or Entity
OPTIONAL SECTION - NOT PART OF NOTARY ACKNOWLEDGEMENT
Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form.
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED EL
TITLE OR TYPE OF DOCUMENT:
NUMBER OF PAGES DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE
——..... ........... _ .........
Reproduce by First Reproduced t American'I"Itle Company 11/2007