2018-270756 RECORDING REQUESTED EY.
FIRST AMERICAN TITLE-How DOC# 2018-0270756
NO FEE FOR RECORDING IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
PURSUANT TO GOV. CODE SECTION
27383 Jul 03, 2018 08:00 AM
OFFICIAL RECORDS
Ernest J.Dronenburg,Jr.,
Recording Requested By: SAN DIEGO COUNTY RECORDER
FEES: $0.00 (S132 Atkins: $0.00)
City of Encinitas PAGES: 18
Development Services Department
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas,
City Clerk's Office
505 S. Vulcan Avenue
Encinitas, CA 92024 /
(/ A.P.N. 258-141-36, -38 and, -39
�fo�lSS 'G AFFORDABLE HOUSING AGREEMENT
(Density Bonus and Inclusionary)
This Affordable Housing Agreement (hereinafter the "HO SING AGREEMENT") is made and
entered into and is effective as"of thisZ$ day of �JNj , 201 by and between the
City of Encinitas, a municipal corporation (hereinafter the "CITY"), and REQUEZA 13, L.P., A
DELAWARE LIMITED PARTNERSHIP (hereinafter the "OWNER").
RECITALS
A. Whereas,.the CITY has adopted a Density Bonus Ordinance, Encinitas Municipal
Code Section 30.16.020(C), to conform with state density bonus law (Government
Code Sections 65915 — 65918) (together "DENSITY BONUS LAW"). DENSITY
BONUS LAW allows a density bonus, concessions, and other regulatory incentives
when a developer proposes to provide affordable housing meeting the standards of
DENSITY BONUS LAW;
B:'Whereas, the City has adopted an Inclusionary Housing Ordinance, Encinitas
Municipal Code Section 24.21, to ensure new residential development contributes to
the provision of affordable'housing;
C. Whereas, the OWNER is the owner of real property (hereinafter the-'PROPERTY")
described in EXHIBIT A, attached hereto and made a part hereof;
D. Whereas, the CITY approved Tentative Map 16-211 by Planning Commission
Resolution (Reso. 2017-49) on November 16, 2017. As part of the Tentative Map
application, the OWNER has sought and agreed to construct one unit (8%.of the
total units shown on the Tentative Map) to be affordable to VERY LOW INCOME
HOUSEHOLDS. The affordable unit(s) is hereinafter the "UNIT(s)":
City of Encinitas-Affordable Housing Agreement
RECORDING REQUESTED BYE
FIRST AMERICAN TITLE-HOD
NO FEE FOR RECORDING
PURSUANT TO GOV. CODE SECTION
27383
Recording Requested By:
City of Encinitas
Development Services Department
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas
City Clerk's Office
505 S. Vulcan Avenue
Encinitas, CA 92024
A.P.N. 258-141-36, -38 and, -39
AFFORDABLE HOUSING AGREEMENT
(Density Bonus and Inclusionary)
This Affordable Housing Agreement (hereinafter the "HO SING AGREEMENT") is made and
entered into and is effective as of thistS day of s�NJ5 , 201$ by and between the
City of Encinitas, a municipal corporation (hereinafter the "CITY"), and REQUEZA 13, L.P., A
• DELAWARE LIMITED PARTNERSHIP (hereinafter the "OWNER").
RECITALS
A. Whereas, the CITY has adopted a Density Bonus Ordinance, Encinitas Municipal
Code Section 30.16.020(C), to conform with state density bonus law (Government
Code Sections 65915 — 65918) (together "DENSITY BONUS LAW"). DENSITY
BONUS LAW allows a density bonus, concessions, and other regulatory incentives
when a developer proposes to provide affordable housing meeting the standards of
DENSITY BONUS LAW;
B. Whereas, the City has adopted an Inclusionary Housing Ordinance, Encinitas
Municipal Code Section 24.21, to ensure new residential development contributes to
the provision of affordable housing;
C. Whereas, the OWNER is the owner of real property (hereinafter the-"PROPERTY")
described in EXHIBIT A, attached hereto and made a part hereof;
D. Whereas, the CITY approved Tentative Map 16-211 by Planning Commission
Resolution (Reso. 2017-49) on November 16, 2017. As part of the Tentative Map
application, the OWNER has sought and agreed to construct one unit (8% of the
total units shown on the Tentative Map) to be affordable to VERY LOW INCOME
HOUSEHOLDS. The affordable unit(s) is hereinafter the "UNIT(s)".
City of Encinitas-Affordable Housing Agreement 1
E. Whereas, in accordance with DENSITY BONUS LAW, OWNER has applied for, and
the CITY has granted, the following regulatory incentives in exchange for the
OWNER's provision of the affordable UNIT(s): (1) A density bonus of two additional
market-rate units; (2) incentive(s), described as follows: none; (3) waivers or
modifications of development standards, as follows: reduction in lot size, lot width,
lot depth, lot coverage, and floor area ratio, and private road access; and (4)
parking reductions: none.
F. Whereas, the OWNER has designated Lot Number nine (9) of TM 16-211
(hereinafter the "AFFORDABLE UNIT PROPERTY") as the site of the required
affordable UNIT, and the OWNER has agreed to construct the UNIT on the
AFFORDABLE UNIT PROPERTY;
G. Whereas, in order to meet the requirements of DENSITY BONUS LAW regarding
the use of the affordable UNIT, the OWNER must sell or rent the UNIT to VERY
LOW INCOME HOUSEHOLDS at affordable sales cost or affordable rental price as
described below in this HOUSING AGREEMENT and must be bound by this
HOUSING AGREEMENT. In consideration of the regulatory incentives described in
Recital E, and to comply with DENSITY BONUS LAW, the OWNER has consented
to be regulated and restricted as provided herein;
H. Whereas, the UNIT identified in Recital F, which meets the requirements of the
DENSITY BONUS LAW regarding provision of affordable housing, also satisfies the
Encinitas Municipal Code Chapter 24.21.020 affordable housing requirement;
I. Whereas, the TENANT HOUSEHOLD is an eligible household that rents the UNIT
(hereinafter" TENANT HOUSEHOLD"); and
J. Whereas, the HOMEBUYER HOUSEHOLD is an eligible household that purchases
the UNIT (hereinafter"HOMEBUYER HOUSEHOLD").
NOW, THEREFORE, the parties hereto agree as follows:
1. TERM OF AGREEMENT.
The term of this HOUSING AGREEMENT shall commence on the issuance of a
certificate of occupancy for the UNIT and shall continue for a period of fifty-five (55)
years in accordance with Encinitas Municipal Code 30.16.020(C)(9). All references to
the Municipal Code in this HOUSING AGREEMENT refer to the Municipal Code in
effect on the date of this HOUSING AGREEMENT.
2. DEVELOPMENT OF THE AFFORDABLE UNIT
A. OWNER shall construct the affordable UNIT on the AFFORDABLE UNIT
PROPERTY.
B. In accordance with Encinitas Municipal Code 30.16.020(C)(10)(b), the exterior
appearance and overall quality of construction of the affordable UNIT shall be
City of Encinitas-Affordable Housing Agreement 2
comparable to that of market-rate units within TM 16-211. Interior finishes and
amenities may differ from those provided in the market-rate units, but neither the
workmanship nor the products may be of substandard or inferior quality as
determined by the CITY.
C. To satisfy Encinitas Municipal Code 30.16.020(C)(10)(b), prior to the
commencement of construction, the quality of materials, floor coverings, cabinets,
fixtures, appliances, doors, and windows shall be specified in sufficient detail to
ensure that the exterior appearance and overall quality of construction of the
affordable UNIT is comparable to that of market-rate units within TM 16-211 and that
interior finishes and amenities are not of substandard or inferior quality, to the
satisfaction of the Development Services Director (hereinafter, the "DIRECTOR").
Such documentation shall be provided from the OWNER to the CITY prior to the
issuance of a building permit.
D. Per Encinitas Municipal Code 30.16.020(C)(10)(a), the UNIT shall be issued a
building permit prior to the 6th market-rate unit building permit issuance. Certification
of occupancy shall be issued for the UNIT prior to the 6th market-rate unit
certification of occupancy approval. If lots in subdivision are marketed under a
custom lot sale program, then the UNIT shall be constructed as the first unit in the
subdivision.
E. Per Encinitas Municipal Code 30.16.020(C)(10)(c), the UNIT shall contain the number
of bedrooms at least equal to the minimum number of bedrooms of the market-rate
units.
F. Per Planning Commission Reso. 2017-49, the UNIT shall be a minimum of 2,749
square feet, and contain a minimum of five bedrooms, three bathrooms, and a two-car
garage.
G. The UNIT shall be provided with an adequate usable yard area comparable to new
units in the community, including units within the TM 16-211.
3. GENERAL CONDITIONS
A. OWNER shall only rent or sell the UNIT to a VERY LOW INCOME HOUSEHOLD. A
"VERY LOW INCOME HOUSEHOLD" is a household with household income that
does not exceed the very low income limits applicable to San Diego County as
published annually by the Department of Housing and Community Development
under Title 25 of the California Code of Regulations, Section 6932 (or successor
provision), adjusted for actual household size.
B. OWNER shall advertise the availability of the UNIT for a minimum of two
consecutive weeks in a local newspaper. The OWNER may employ additional
marketing methods that are in accordance with professional standards. The CITY
may also advertise the UNIT to provide contact information to interested households.
OWNER shall make applications available for a minimum of two weeks during the
advertisement period. OWNER shall maintain a record of all interested households
and applications. OWNER must provide such documentation to the CITY.
City of Encinitas-Affordable Housing Agreement 3
C. OWNER shall provide CITY with notice of not less than 60 days prior to advertising
the availability of the UNIT of their intent to rent or sell the UNIT.
D. OWNER shall comply with the Fair Housing Act and California Fair Employment and
Housing Act and 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 laws.
E. OWNER is prohibited from renting or selling the UNIT to a family member, relative,
employee, or any pre-determined household. A 'pre-determined household' is any
household with a pre-existing relationship with the OWNER, such as a friend,
associate, or any other household that has an existing relationship with the OWNER,
and whose occupancy of the UNIT would decrease its availability to the general
public as intended by DENSITY BONUS LAW.
F. OWNER may sell the UNIT or the AFFORDABLE UNIT PROPERTY with the prior
written approval of the DIRECTOR to a non-qualifying household, if the UNIT will be
continuously rented to a qualifying VERY LOW INCOME HOUSEHOLD at an
affordable rental price as calculated in Section 5.13 below. At the time of said sale,
the subsequent owner shall execute a new Affordable Housing Agreement with the
CITY. The City shall require the subsequent owner to post a performance bond or
provide other assurances of performance within the identified construction schedule
(as described in Section 2.D) if the UNIT has not yet been constructed.
G. 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.
H. 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, unless a reasonable accommodation must be made under
federal or state fair housing laws.
I. The OWNER has received the regulatory incentives described in Recital D from the
CITY under the DENSITY BONUS LAW. The incentives are a form of assistance
specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of
the Government Code. Sections 1954.52(b) and 1954.53(a)(2) of the Costa-Hawkins
Act provide that, where a developer has received such assistance, certain provisions
of the Costa-Hawkins Act do not apply if a developer has so agreed by contract. The
OWNER hereby agrees to limit rents and sales prices as provided in this Agreement
in consideration of the OWNER's receipt of the incentives described in Recital D and
further agrees that any limitations on rents imposed on the UNIT are in conformance
with the Costa-Hawkins Act.
4. OPTION TO SELL
A. QUALIFICATION OF ELIGIBLE HOMEBUYER HOUSEHOLD
City of Encinitas-Affordable Housing Agreement 4
i. Except as provided in Section 3.17, the UNIT shall only be sold to a qualifying
VERY LOW INCOME HOUSEHOLD.
ii. The OWNER shall verify the income of all adult members of any proposed
HOMEBUYER HOUSEHOLD. For the purposes of determining the
HOMEBUYER HOUSEHOLD gross annual income, all adult (18 years of age
and over) members of household shall provide recent (within a year) source
documentation to verify income. Source documentation includes, but not limited
to, tax returns, paystubs, wage statements, W2s, bank statements, social
security documents, and employment verification.
ii. Prior to opening escrow to sell the UNIT, OWNER shall provide CITY with
HOMEBUYER HOUSEHOLD'S recent income qualifying source documentation,
including, but not limited to, tax returns, W2's, paystubs, social security
statements, bank statements, etc. The CITY may require additional
documentation to verify eligibility. DIRECTOR shall confirm or deny eligibility
based on the documentation provided.
iii. HOMEBUYER HOUSEHOLD must certify that they 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. CALCULATION OF AFFORDABLE HOUSING COST
i. The maximum affordable sales price for the UNIT shall be calculated in
accordance with California Health and Safety Code Section §50052.5 and Title
25 of the California Code of Regulations, Section 6920 (or successor provision),
and, in accordance with these provisions, shall result in housing cost that does
not exceed 30 percent of 50 percent of AREA MEDIAN INCOME, adjusted for
assumed household size. "AREA MEDIAN INCOME" is the median income for to
San Diego County as published annually by the Department of Housing and
Community Development under Title 25 of the California Code of Regulations,
Section 6932 (or successor provision), adjusted for actual household size.
The following conditions shall also be applied when determining the maximum
affordable sales price:
a. The calculation shall include a five percent down payment.
b. The calculation shall include an interest rate which is based on the current
Freddie Mac Monthly Average Commitment Rate on 30-Year Fixed-Rate
Mortgages.
c. The calculation shall include reasonable housing costs, which includes,
but not limited to, principal and interest, property taxes and assessments,
property insurance, property maintenance and repairs, Homeowners'
Association fees, additional district fees (if applicable), and an allowance
for utilities based on the current Utility Allowance Schedule, published by
the Encinitas Housing Authority
City of Encinitas-Affordable Housing Agreement 5
d. Actual financing to be obtained by any prospective homebuyer shall be a
fixed rate loan fully amortized over thirty years.
ii. Prior to opening escrow, the sale price of the UNIT shall be approved by the
DIRECTOR.
C. ADDITIONAL REQUIREMENTS
i. At the time of initial sale, HOMEBUYER HOUSEHOLD shall execute a new
Affordable Housing Agreement with the CITY in accordance with Encinitas
Municipal Code 30.16.020(C)(9).
ii. HOMEBUYER HOUSEHOLD shall submit a report to the DIRECTOR at initial
occupancy and annually thereafter, on a form prescribed by the DIRECTOR. The
report shall certify that the HOMEBUYER HOUSEHOLD occupies the UNIT as
their primary residence. The HOMEBUYER HOUSEHOLD shall provide source
documentation verifying the occupancy status of the HOMEBUYER
HOUSEHOLD.
D. NOTICE TO CITY.
HOMEBUYER HOUSEHOLD 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 address set forth for the CITY in paragraph 16 of this
HOUSING AGREEMENT. Time is of the essence.
E. LEASE OF PROPERTY PROHIBITED.
During the term of this HOUSING AGREEMENT, HOMEBUYER HOUSEHOLD
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 HOMEBUYER HOUSEHOLD,
such as illness in the family, military deployment or re-assignment, need to
relocate to obtain employment, and the like.
F. TRANSFER, CONVEYANCE OF PROPERTY RESTRICTED.
The sale, transfer and/or conveyance of the PROPERTY is restricted as follows:
i. The PROPERTY may only be sold, transferred or conveyed to a qualified VERY
LOW INCOME HOUSEHOLD.
ii. The PROPERTY must be used only as the principal residence of the subsequent
purchaser during the time of ownership. HOMEBUYER HOUSEHOLD 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
City of Encinitas-Affordable Housing Agreement 6
"good faith" effort has been performed. The CITY shall not unreasonably
withhold its approval.
iii. 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
determined through the calculation described in Section 4.13 above.
iv. In the event that HOMEBUYER HOUSEHOLD is unable to find, despite good
faith efforts to do so, a qualified purchaser to purchase the PROPERTY,
HOMEBUYER HOUSEHOLD 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 that determined through the calculation described in
Section 4.13 above. 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 a non-qualified buyer as
described in section 3.F above if the UNIT will be continuously rented to a
qualifying VERY LOW INCOME HOUSEHOLD at an affordable rental price as
calculated in Section 5.13 below. At the time of said sale, the subsequent owner
shall execute a new Affordable Housing Agreement with the CITY.
Upon a showing of hardship by the HOMEBUYER HOUSEHOLD to the CITY in
writing, the CITY may waive any one or combination of the following: the resale
restrictions, the HOMEBUYER HOUSEHOLD's obligation to sell to the CITY.
V. Notwithstanding the foregoing, the following limited circumstances are
acknowledged by the CITY to be permitted transfers:
a) the transfer results from the death of a spouse, and the transfer is to the
surviving spouse who is also a member of the HOMEBUYER HOUSEHOLD.
b) a transfer to a spouse when the spouse becomes, by such a transfer, a
co-owner of the PROPERTY;
c) 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 and by which a spouse who is already an OWNER becomes
the sole owner of the PROPERTY; and/or
d) a transfer by the OWNER to an inter vivos trust in which the OWNER is
the sole current beneficiary.
vi. A transfer of the PROPERTY in accordance with the terms hereof must be
accompanied by a recordable assignment and assumption of this HOUSING
AGREEMENT executed by the transferee.
City of Encinitas-Affordable Housing Agreement 7
5. OPTION TO RENT
A. QUALIFICATION OF ELIGIBLE TENANT HOUSEHOLD
i. The UNIT shall only be rented to a qualifying VERY LOW INCOME
HOUSEHOLD
ii. The OWNER shall verify the income of all adult members of any proposed
TENANT HOUSEHOLD. For the purposes of determining the TENANT
HOUSEHOLD annual gross income, all adult (18 years of age and over)
members of household shall provide recent (within one-year) source
documentation to verify income. Source documentation includes, but is not
limited to tax returns, paystubs, wage statements, W2s, bank statements, social
security documents, and employment verification.
iii. OWNER shall provide CITY with TENANT HOUSEHOLD'S recent income
qualifying source documentation, including, but not limited to, tax returns, W2's,
paystubs, social security statements, bank statements, etc. The CITY may
require additional documentation to verify eligibility. DIRECTOR shall confirm or
deny eligibility based on the documentation provided.
B. CALCULATION OF AFFORDABLE RENTAL PRICE
i. The maximum monthly rent of UNIT shall be calculated in accordance with
California Health and Safety Code Section §50053 and Title 25 of the California
Code of Regulations, Section 6918 (or successor provision), and, in accordance
with these provisions, shall result in housing cost that does not exceed 30
percent of 50 percent of AREA MEDIAN INCOME, adjusted for assumed
household size.
ii. No additional fees or charges shall be assessed to the TENANT HOUSEHOLD in
excess of the affordable rent.
iii. An allowance for tenant-paid utilities shall be deducted from the maximum
affordable rent. The OWNER shall only use the most current Utility Allowance
Schedule, published by the Encinitas Housing Authority.
iv. The DIRECTOR shall approve the maximum rental rate for the UNIT, including
the applicable utility allowance.
C. MANAGEMENT AND MAINTENANCE
i. 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
HOUSING AGREEMENT.
City of Encinitas-Affordable Housing Agreement 8
a. OWNER shall re-certify the TENANT HOUSEHOLD's income eligibility
every twelve months. If, upon recertification of TENANT HOUSEHOLD's
income, the OWNER determines that TENANT HOUSEHOLD's income
exceeds the income for a VERY LOW INCOME HOUSEHOLD, but the
TENANT HOUSEHOLD's income does not exceed AREA MEDIAN
INCOME, adjusted for household size, then the RENT may be increased
to 30 percent of the TENANT HOUSEHOLD's actual income, on the later
of the expiration of the TENANT HOUSEHOLD's lease or upon 90 days
written notice to the TENANT HOUSEHOLD. In the event that the TENANT
HOUSEHOLD's income exceeds AREA MEDIAN INCOME, adjusted for
household size, then the TENANT HOUSEHOLD shall be given written
notice that the TENANT HOUSEHOLD must vacate the UNIT on the later of
the expiration of the TENANT HOUSEHOLD's lease or upon 90 days
written notice to the TENANT HOUSEHOLD.
b. TENANT HOUSEHOLD shall enter into a written occupancy agreement or
lease with the OWNER. OWNER shall use the standard lease form
published by the California Apartment Association or other form approved
by the DIRECTOR that shall incorporate the provisions contained in
Section 5.C.i.a above.
ii. Prior to the occupancy of the UNIT, the OWNER shall provide a copy of the
occupancy agreement or lease to the CITY for review and approval.
iii. . Leases and the landlord-tenant relationship shall be subject to California law and
the provisions of this HOUSING AGREEMENT. The OWNER shall establish
reasonable rules of conduct and occupancy that comply with state and local laws
and regulations.
a. 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 U.S. Department of Housing and Urban
Development's (HUD) Housing Quality Standards (HQS) and State Law.
Upon written request by the CITY, the OWNER shall provide DIRECTOR
or representative with access to inspect the UNIT for compliance with this
section. Failure by the OWNER to maintain the UNIT shall constitute a
violation under this HOUSING AGREEMENT.
b. OWNER shall obtain, and at all times during the term of this HOUSING
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
City of Encinitas-Affordable Housing Agreement 9
c. 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. OWNER
shall notify the CITY in writing within 30 days of any change of property
management of the UNIT.
iv. 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).
D. ANNUAL MONITORING
OWNER shall submit a report to the DIRECTOR at initial occupancy and annually
thereafter, on a form prescribed by the DIRECTOR. The report shall include information
on the household occupying the UNIT, 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.
6. 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.
7. CERTAIN ACTS PROHIBITED
OWNER shall not make any sale, encumbrance (except for a purchase money 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 HOUSING AGREEMENT.
8. VIOLATION OF REGULATORY AGREEMENT BY THE OWNER
In the event of the violation of any of the provisions of this HOUSING 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 Section 16 below, 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 HOUSING 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 HOUSING AGREEMENT; for an injunction
against any violation by the OWNER of this HOUSING AGREEMENT; for the
appointment of a receiver to take over and operate the UNIT in accordance with the
terms of this HOUSING AGREEMENT; or for such other relief as may be appropriate, it
City of Encinitas-Affordable Housing Agreement 10
being agreed by the OWNER that the injury to the CITY arising from a default under any
of the terms of this HOUSING 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 DENSITY BONUS LAW.
9. AMENDMENT.
This HOUSING AGREEMENT shall not be altered or amended except by writing
executed between the parties.
10. SEVERABILITY.
In the event that any provision or covenant of this HOUSING 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 HOUSING AGREEMENT, which shall remain in full
force and effect.
11. BINDING ON SUCCESSORS.
This HOUSING AGREEMENT shall inure to the benefit of and be binding upon the
successors and assigns of the OWNER and the heirs, personal representatives,
grantees, tenants, successors-in-interest or assigns of the owners. This HOUSING
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
HOUSING 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 holds an ownership interest,
or any person or entity that holds an ownership interest in the PROPERTY.
12. GENDER.
The use of the plural in this HOUSING 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.
13. 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.
City of Encinitas-Affordable Housing Agreement 11
14. WAIVER.
No waiver by the CITY of any breach of or default under this HOUSING AGREEMENT
shall be deemed to be a waiver of any other or subsequent breach or default hereunder.
15. GOVERNING LAW.
This HOUSING AGREEMENT shall be construed in accordance with and governed by
the laws of the State of California.
16. 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 Robert H. Thorne
505 S. Vulcan Ave. California West
Encinitas, CA 92024 5927 Priestly Drive, Suite 110
Attn: Housing Management Analyst Carlsbad, CA 92008
City of Encinitas-Affordable Housing Agreement 12
IN WITNESS WHEREOF, OWNER has executed this HOUSING AGREEMENT as of the day
and year first above written.
OWNER
REQUEZA 13, L.P.,
a Delaware limited partnership
By: CWC REQUEZA, LLC, a California limited liability company
Its: General Partner
By:
Name: lr,,,, d. La gig"
Title: 9,ej
Date: hcq a g
(Notarization of signature must be attached)
CITY
City of , a mu i corporati n
By' ' Date:
Ka en P. r st, Manager
(Notarization of signature must be attached)
APPROV D AS TO FORM:
6�z �
Gle n Sabine, City Attorney Date
City of Encinitas-Affordable Housing Agreement 13
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document.
State of California )
County of�S _0% e4 e )
On W li before me, ce X10 ,
Date Here Ins rt Name anh Yitle of the Officer
personally appeared 1�ov,rz(c�• F'r.•1 a
Name(s)of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(o whose name(# is/aVe
subscribed to the within instrument and acknowledged to me that he/skkie/tl*y executed the same in
his/Rkr/th*r authorized capacity(i�k),and that by his/ftr/th�ir signature(If on the instrument the person,
or the entity upon behalf of which the person('(acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of Califomia that the foregoing paragraph
MK STUCK is true and correct.
Commission#21076
Z;°m Notary Public-California z WITNESS my hand and official seal.
Z o.
San Diego County n
My Comm.Expires May 16,2019
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Title or Type of Document: Document Date:
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Signer's Name: Signer's Name:
❑Corporate Officer — Title(s): ❑Corporate Officer — Title(s):
❑Partner — ❑Limited ❑General ❑ Partner — ❑ Limited ❑General
❑Individual ❑Attorney in Fact ❑Individual ❑Attorney in Fact
❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator
❑Other: ❑ Other:
Signer Is Representing: Signer Is Representing:
02014 National Notary Association •www.NationaiNotary.org • 1-800-US NOTARY(1-800-876-6827) Item#5907
ALL-PURPOSE ACKNOWLEDGMENT
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certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
' ,
County of 1n l SS.
On , before me, 1 Tr Ne10. J i�'1'�O 1� ,Notary Public,
DATE _y_
personally appeared K("ren z U r�1 ,who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s is// re subscribed to t within instrument
and acknow ged to me that he/sh they executed the
same in er their authorized capacity(ies), and that
by his er eir signature(s) on the instrument the
person s , or the entity upon behalf of which the
°' ANGELA A. SIMQN person(s) acted, executed the instrument.
COMM4 2182396 ►tnn
NOTARY PUBUC•CAUFORNU Vl
SAN DIEGO CWNTY — I certify under PENALTY OF PERJURY under the
MY Comm.ExP.MAR.$,2021 laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
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Exhibit A to Grant Deed
Real property in the City of Encinitas, County of San Diego, State of California,described as
follows:
PARCEL 1: APN 258-141-38&39
THE SOUTHERLY 742.50 FEET OF THE WESTERLY 518.00 FEET OF THE WEST HALF
OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 15,
TOWNSHIP 13 SOUTH,RANGE 4 WEST, SAN BERNARDINO BASE AND MERIDIAN,IN
THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
ACCORDING TO OFFICIAL PLAT THEREOF.
EXCEPTING THEREFROM THE EASTERLY 248.00 FEET AND THE NORTHERLY 175.00
FEET THEREOF.
ALSO EXCEPTING THEREFROM ALL MINERALS,MINERAL DEPOSITS,MINERAL
OILS AND NATURAL GASES OF EVERY KIND OR NATURE AS RESERVED BY DEED
RECORDED AUGUST 15, 1921 IN BOOK 860,PAGE 36 OF DEEDS.
PARCEL 2: APN 258-141-36
THE SOUTHERLY 190 FEET OF THE NORTHERLY 529 FEET OF THE SOUTHERLY
742.5 FEET OF THE EASTERLY 248 FEET OF THE WESTERLY 518 FEET OF THE WEST
HALF OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION
15,TOWNSHIP 13 SOUTH,RANGE 4 WEST, SAN BERNARDINO MERIDIAN,IN THE
CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
ACCORDING TO OFFICIAL PLAT THEREOF.
EXCEPTING THEREFROM ALL MINERALS,MINERAL DEPOSITS,MINERAL OILS
AND NATURAL GASES OF EVERY KIND AND NATURE CONTAINED IN OR UPON
THE ABOVE GRANTED PREMISES WITH THE RIGHT IN SAID GEORGE H.KETTELL
AND BESSIE MAUD KETTELL,HUSBAND AND WIFE AND THEIR SUCCESSORS AND
ASSIGNS, TO ENTER,UPON AND OCCUPY THE SAID PREMISES FOR THE PURPOSE
OF PROSPECTING,DRILLING, FOR MINING OR REMOVING MINERALS,MINERAL
OILS AND GASES,AS RESERVED BY GEORGE H. KETTELL AND BESSIE MAUD
KETTELL,HUSBAND AND WIFE BY INSTRUMENT RECORDED AUGUST 15,
1921 IN BOOK 860,PAGE 36 OF DEEDS.
6 4819-6336-9061 v.3
PARCEL 2A:
AN EASEMENT FOR RIGHT OF WAY FOR ROAD AND UTILITY PURPOSES,UPON,
OVER AND ACROSS THE WESTERLY 15.0 FEET OF THE NORTHERLY 154.0 FEET OF
THE SOUTHERLY 727.5 FEET OF THE EASTERLY 248.0 FEET OF THE WESTERLY
518.0 FEET OF THE WEST HALF OF THE SOUTHEAST QUARTER OF THE
NORTHEAST QUARTER OF SECTION 15,TOWNSHIP 13 SOUTH,RANGE 4 WEST, SAN
BERNARDINO MERIDIAN,ACCORDING TO OFFICIAL PLAT THEREOF.
PARCEL 2B:
AN EASEMENT FOR RIGHT OF WAY FOR ROAD AND UTILITY PURPOSES,UPON,
OVER AND ACROSS THE NORTHERLY 15.0 FEET OF THE SOUTHERLY 742.5 FEET
OF THE EASTERLY 248.0 FEET OF THE WESTERLY 518 FEET OF THE WEST HALF OF
THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 15,
TOWNSHIP 13 SOUTH,RANGE 4 WEST, SAN BERNARDINO MERIDIAN,ACCORDING
TO OFFICIAL PLAT THEREOF.
7. 4819-6336-9061 v.3