2020-636976 RECORDING REQUESTED BY:
First American Tide Company HomeBullder DOC# 2020-0636976
Services Division IIIIIIIIIIIIIVIIIIId�IIIVI�III�INIINI�GIIII�II�IN�II�I
WHEN RECORDED MAIL DOCUMENT TO: Oct 20, 2020 08:00 AM
City of Encinitas, City peck's Office
505 S. Vulcan Avenue OFFICIAL RECORDS
Ernest J.Dronenburg,Jr.,
Encinitas, CA 92024 SAN DIEGO COUNTY RECORDER
FEES: $0.00 (SB2 Atkins: $0.00)
PAGES: 18
Space Above This Line for Recorder's Use Only
A.P.N.: 260-580-29-00 File No.: DTR-5812366 (dm)
Property Address: 1412 Mackinnon Avenue, Encinitas, CA 92007
Affordable Housing Agreement(Density Bonus)
Tide of Document
(X ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of
Documentary Transfer Tax per GC 27388.1 (a) (2).
( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner-
occupier per GC 27388.1 (a) (2).
( ) Maximum fee of$225 has been reached per GC 27388.1 (a) (1).
{ ) Not related to real property GC 27388.1 (a) (1).
( }Transfer of real property subject to the imposition of Documentary Transfer Tax -GC 27388.1 (a)(2)
( )Transfer of real property that is a residential dwelling to an owner-occupier- GC 27388.1 (a)(2)
( ) Exempt from fee under GC 27388.1 due to being recorded in connection with a transaction that was subject to
documentary transfer tax which was paid on document recorded as Document No. of
Official Records
( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded
as Document No, of Official Records
( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that
is a residential dwelling to an owner-occupier. The recorded document transferring the dwelling to the owner-
occupier was recorded as document No. of Official Records.
( ) Exempt from fee under GC 27388.1 for the following reasons:
THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE
(SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies)
RECORDING REQUESTED BY:
First American Title Company HomeBuilder
Services Division
WHEN RECORDED MAIL DOCUMENT TO:
City of Encinitas, City Cleck's Office
505 S. Vulcan Avenue
Encinitas, CA 92024
Space Above This Line for Recorder's Use Only
A.P.N.: 260-580-29-00 File No.: DTR-5812366 (dm)
Property Address: 1412 Mackinnon Avenue, Encinitas, CA 92007
Affordable Housing Agreement(Density Bonus)
Title of Document
(X ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of
Documentary Transfer Tax per GC 27388.1 (a) (2).
( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner-
occupier per GC 27388.1 (a) (2).
( ) Maximum fee of$225 has been reached per GC 27388.1 (a) (1).
( ) Not related to real property GC 27388.1 (a) (1).
( )Transfer of real property subject to the imposition of Documentary Transfer Tax - GC 27388.1 (a)(2)
( )Transfer of real property that is a residential dwelling to an owner-occupier - GC 27388.1 (a)(2)
( ) Exempt from fee under GC 27388.1 due to being recorded in connection with a transaction that was subject to
documentary transfer tax which was paid on document recorded as Document No. of
Official Records
( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded
as Document No. of Official Records
( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that
is a residential dwelling to an owner-occupier. The recorded document transferring the dwelling to the owner-
occupier was recorded as document No. of Official Records.
( ) Exempt from fee under GC 27388.1 for the following reasons:
THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE
(SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies)
Recording Requested By
First American Title Company
HometimIder Services Division
NO FEE FOR RECORDING
PURSUANT TO GOV. CODE SECTION
27383
Recording Requested By:
City of Encinitas
Development Services Department
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas
City Clerk's Office
505 S. Vulcan Avenue
Encinitas, CA 92024
A.P.N. 260--$D•P)- 00
3b6
AFFORDABLE HOUSING AGREEMENT
(Density Bonus)
This Affordable Housing Agreement (hereinafter the "HOUSING AGREEMENT") is made and
entered into and is effective as of this ay of 6ckbc/ 2020 by and between the
City of Encinitas, a municipal corporation (hereinafter the "CITY"), and Kenneth L. Reed, a
married man as his sole and separate property, (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 OWNER is the owner of real property (hereinafter the "PROPERTY")
described in EXHIBIT A, attached hereto and made a part hereof;
C. Whereas, the CITY approved Tentative Map 14-111 by City Council Resolution
(Reso. 2016-47) on May 11, 2016. As part of the Tentative Map application, the
OWNER has sought and agreed to construct one unit (12.5 % 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)".
D. 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
City of Encinitas-Affordable Housing Agreement 1
market-rate units; (2) incentive(s) described as follows: none; (3) waivers or
modifications of development standards, as follows: increased floor area ratio,
reduced open space, and reduced setbacks, and (4) parking reductions: none;
E. Whereas, the OWNER has designated Lot Number two (2) of TM 14-111
(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;
F. 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 D, and to comply with DENSITY BONUS LAW, the OWNER has consented
to be regulated and restricted as provided herein;
G. Whereas, the TENANT HOUSEHOLD is an eligible household that rents the UNIT
(hereinafter `TENANT HOUSEHOLD");
H. Whereas, the HOMEBUYER HOUSEHOLD is an eligible household that purchases
the UNIT (hereinafter "HOMEBUYER HOUSEHOLD");
I. Whereas, the UNIT was previously subject to a certain Affordable Housing
Regulatory Agreement dated September 7, 2017 and recorded in the Official
Records of the County of San Diego on October 17, 2017 with document number
2017-0482128 (the "ORIGINAL REGULATORY AGREEMENT') and was an
agreement made between the CITY and New Pointe Investment 37, LLC
(hereinafter the "ORIGINAL OWNER");
J. Whereas, the ORIGINAL OWNER has fulfilled the obligations and requirements
under the ORIGINAL REGULATORY AGREEMENT;
K. Whereas, the ownership of the UNIT has changed since the ORIGINAL
REGULATORY AGREEMENT was entered into and recorded, and the UNIT has
been conveyed to the OWNER, necessitating a partial release from the ORIGINAL
REGULATORY AGREEMENT pertaining to the UNIT, and replacement of the
ORIGINAL REGULATORY AGREEMENT with this REGULATORY AGREEMENT
specific to the PROPERTY; and,
L. 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.
City of Encinitas-Affordable Housing Agreement 2
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, which occurred on April 15, 2019, 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. 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.
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 5.6 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
City of Encinitas-Affordable Housing Agreement 3
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.
3. OPTION TO SELL
A. QUALIFICATION OF ELIGIBLE HOMEBUYER HOUSEHOLD
i. Except as provided in Section 3.F, 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.
City of Encinitas-Affordable Housing Agreement 4
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
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.
City of Encinitas-Affordable Housing Agreement 5
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
"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 4.6 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 4.6 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
City of Encinitas-Affordable Housing Agreement 6
calculated in Section 5.6 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.
4. 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.
City of Encinitas-Affordable Housing Agreement 7
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.
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.
City or Encinitas-Affordable Housing Agreement 8
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
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.
City of Encinitas-Affordable Housing Agreement 9
5. 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.
6. 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.
7. 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
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.
8. AMENDMENT.
This HOUSING AGREEMENT shall not be altered or amended except by writing
executed between the parties.
9. 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.
10. 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,
City of Encinitas-Affordable Housmg Agreement 10
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.
11. 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.
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 Kenneth L. Reed
505 S. Vulcan Ave. Owner
Encinitas, CA 92024 1199 Barton Peak Drive
Attn: Management Analyst Chula Vista, CA 91913
City of Encinitas-Affordable Housmg Agreemenl 11
IN WITNESS WHEREOF, OWNER has executed this HOUSING AGREEMENT as of the day
and year first above written.
OWNER
Kenneth L. Reed, a married man as his sole and separate property
By: Date: to 16 (2,0 20
Kenn eed, Owner
(Notarization of signature must be attached)
CITY
City of Encinitas, a municipal corporation
n
By: Date:
Pamela Antil, City Manager
(Notarization of signature must be attached)
APPROVED AS TO FORM:
6#4§�La� 10/14/2020
Leslie Devaney, City Aftdmey Date
City of Encinitas-Affordable Housing Agreement 12
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 �v ) —
County of r ) CA
On �D 4 before me, ,
Date / yere Ins Na a Title of the Ofcer
personally appeared �t G
Name(s)of Signer(s)
who proved to me on the basis of satisfactory evidence to be the p r n(s) whose name( is are
spfi�cribed to the within instrument and ackn�ged to me that he/ ey executed the same in
((pI er/their authorized capacity(ies),and that b erAheir signature(s)on the instrument the person(s),
the entity upon behalf of which the person(s ted, 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.
CATHERINE R.AGUINALDO WITNESS my hand and official seal.
� COMM. #2165238 � �
p idOTARV PUBLIC-CALIFORNIA �
Ul SAN OIE00 COUNTY Signature
0,1 ♦ M Commission Expires
v
Sfignatulre o1r Notary Pub.
OCTOBER 17,2020
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Document Date:
Number of Pages: Signers) Other Than Named Above:
Capacity(ies)Claimed by Signer(s)
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.Nationa[Notary.org • 1-800-US NOTARY(1-800-876-6827) Item#5907
ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness,accuracy, or
validity of that document.
State of California
County of ffiao L)�n I SS.
On 10-16-ac&D before me � Notary Public,
DATE \\ 1
personally appeared �� ��Ck� �n Cl \ who proved to me on the
basis of satisfactory evidence to be the persons)whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(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.
DEANA GAY
coMM.#2206986 D I certify under PENALTY OF PERJURY under the
Z SAN DIEGO COUNTY D
4 NOTARY PUBLIC-CALIFORNIAZ laws of the State of California that the foregoing
Q MY COMMISSION EXPIRES -' paragraph is true and correct.
AUGUST 23,2021
WI S y hand and official seal.
PLACE NOTARY SEAL IN ABOVE SPACE NOTARY'S SIGNATURE
OPTIONAL INFORMATION
The information below is optional. However,it may prove valuable and could prevent fraudulent attachment
of this form to an unauthorized document.
CAPACITY CLAIMED BY SIGNER(PRINCIPAL) DESCRIPTION OFATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT
PARTNER(S) =E(S)
rl ATTORNEY-IN-FACT NUMBER OF PAGES
❑ GUARDIAN/CONSERVATOR
❑ SUBSCRIBING WITNESS
DATE OF DOCUMENT
E]
OTHER:
OTHER
El
SIGNER(PRINCIPAL)IS REPRESENTING: RIGHT
NAME OF PERSON(S)OR ENTITY(IFS) THUMOBFPRINT E
0
SIGNER
6
O
APA01/2015 NOTARY BONDS,SUPPLIESAND FOPMSATHTTP://WWW.VALLEY-SIERRA.COM ®2005-2019 VALLEY-SIERRA INSURANCE
Order Number: DTR-5812366 (CM)
Page Number: 8
LEGAL DESCRIPTION
Real property in the area of Cardiff by the Sea, City of Encinitas, County of San Diego, State of
California, described as follows:
PARCEL 1:
LOT 2 OF CITY OF ENCINITAS TM14-111, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16239 FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON DECEMBER 21, 2017("MAP"),AS AMENDED BY
CERTIFICATE OF CORRECTION RECORDED JUNE 18, 2019, AS INSTRUMENT NO. 2019-0238668.
RESERVING THEREFROM, ALL EASEMENTS DESCRIBED IN THE DECLARATION (DESCRIBED BELOW),
THE MAP AND ALL OTHER EASEMENTS OF RECORD AS OF THE DATE HEREOF;
FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE ASSOCIATION (DEFINED BELOW), A
NON- EXCLUSIVE EASEMENT IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE
REFERENCED LOT DESIGNATED IN THE DECLARATION AS AN ASSOCIATION MAINTENANCE AREA, IF
ANY, FOR THE PURPOSE OF MAINTENANCE AND REPAIR,TOGETHER SUCH RIGHTS OF ACCESS
NECESSARY TO PERFORM SUCH MAINTENANCE AND REPAIR, AS MORE FULLY PROVIDED IN THE
DECLARATION.
LLLNCLUDE ONLY FOR LOTS 6 AND 711 FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE
ASSOCIATION, A NON-EXCLUSIVE EASEMENT IN,TO, OVER, UNDER,THROUGH AND ACROSS THAT
PORTION OF THE ABOVE- REFERENCED LOT DESIGNATED IN THE DECLARATION AS A CROSS LOT
DRAINAGE EASEMENT AREA, FOR THE PURPOSE OF MAINTENANCE AND REPAIR,TOGETHER WITH
SUCH RIGHTS OF ACCESS NECESSARY TO PERFORM SUCH MAINTENANCE AND REPAIR, AS MORE
FULLY PROVIDED IN THE DECLARATION.
FURTHER RESERVING THEREFROM PARCEL 1 (TO THE EXTENT PARCEL 1 IS DESIGNATED AS A
SIDEYARD EASEMENT AREA BURDENED LOT IN THE DECLARATION), A NON-EXCLUSIVE EASEMENT ON,
OVER, UNDER,THROUGH AND ACROSS THAT PORTION OF THE LOT DESIGNATED IN THE
DECLARATION AS A SIDEYARD EASEMENT AREA, IF ANY, FOR THE BENEFIT OF THE ADJACENT
BENEFITED LOT FOR THE PURPOSE OF DRAINAGE, MAINTENANCE, AND REPAIR OF THE
IMPROVEMENTS LOCATED THEREIN AND OF THE ADJOINING BENEFITED LOT(S) BY THE OWNERS OF
SUCH BENEFITED LOTS, SUBJECT TO THE COVENANTS, CONDITIONS AND RESTRICTIONS SET FORTH
IN THE DECLARATION.
PARCEL 2:
A NON-EXCLUSIVE EASEMENT ON, OVER THROUGH AND ACROSS THAT PORTION OF THE BURDENED
LOT LOCATED ADJACENT TO THE BENEFITED LOT DESCRIBED IN PARCEL 1 ABOVE DESIGNATED IN
THE DECLARATION AND/OR SUPPLEMENTARY DECLARATION AS A SIDEYARD EASEMENT AREA FOR
THE BENEFIT OF THE LOT IDENTIFIED IN PARCEL 1 ABOVE, IF ANY, FOR THE PURPOSES DESCRIBED
IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1
ABOVE.
PARCEL 3:
A NON-EXCLUSIVE EASEMENT ON, OVER, UNDER,THROUGH AND ACROSS THAT PORTION OF THE LOT
LOCATED ADJACENT TO THE LOT DESCRIBED IN PARCEL 1 ABOVE WHICH HAS THE RIGHT TO USE
First American 77tle
Order Number: DTR-5812366 (CM)
Page Number: 9
THE CROSS LOT DRAINAGE EASEMENT AREA DESIGNATED IN THE DECLARATION AS A CROSS LOT
DRAINAGE EASEMENT AREA, IF ANY, FOR THE PURPOSES DESCRIBED IN THE DECLARATION, WHICH
EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1 ABOVE.
PARCEL 4:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND
EGRESS, ON, OVER, UNDER, THROUGH AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION
PROPERTY DESCRIBED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT
DESCRIBED IN PARCEL 1 ABOVE.
APN: 260-580-29-00
FirstAmencan 77tie
RECORDING REQUESTED BY:
First American Title Company HomeBuilder
Services Division
WHEN RECORDED MAIL DOCUMENT TO:
New Pointe Investment 37, LLC
16880 W. Bernardo Drive # 110
San Diego, CA 92127
Space Above This Line for Recorder's Use Only
A.P.N.: 260-580-29-00 File No.: DTR-5812366 (dm)
Property Address: 1412 Mackinnon Avenue, Encinitas, CA 92007
Substitution of Trustee and Full Reconveyance
Title of Document
(X ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of
Documentary Transfer Tax per GC 27388.1 (a) (2).
( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner-
occupier per GC 27388.1 (a) (2).
( ) Maximum fee of$225 has been reached per GC 27388.1 (a) (1).
( ) Not related to real property GC 27388.1 (a) (1).
( )Transfer of real property subject to the imposition of Documentary Transfer Tax -GC 27388.1 (a)(2)
O Transfer of real property that is a residential dwelling to an owner-occupier- GC 27388.1 (a)(2)
( ) Exempt from fee under GC 27388.1 due to being recorded in connection with a transaction that was subject to
documentary transfer tax which was paid on document recorded as Document No. of
Official Records
( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded
as Document No. of Official Records
( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that
is a residential dwelling to an owner-occupier. The recorded document transferring the dwelling to the owner-
' occupier was recorded as document No. of Official Records.
( ) Exempt from fee under GC 27388.1 for the following reasons:
THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE
(SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies)