HomeMy WebLinkAboutReso 138-11 Afford House Reg AgmtJ
RESOLUTION NO. 138 - 11
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVING AN AFFORDABLE HOUSING REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS BETWEEN THE CITY OF DUBLIN AND
PCCP CS II TRALEE VILLAGE, LLC, AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AGREEMENT AND TAKE OTHER NECESSARY AND APPROPRIATE
ACTIONS
WHEREAS, pursuant to the requirements of the Inclusionary Zoning Regulations of the
City of Dublin Zoning Ordinance (the "Ordinance"), on October 19, 2005, the City of Dublin (the
"City") and Pfeiffer Ranch Investors, Inc. ("Pfeiffer"), entered into an Affordable Housing
Agreement for the Construction of Inclusionary Units (the "Original Agreement") for the
construction of 233 residential units known as the Tralee project, including the construction of 13
Inclusionary Units on certain property it owned ("Phase I") and 16 Inclusionary Units in mixed
use buildings to be developed on adjacent property ("Phase II"); and
WHEREAS, subsequent to execution of the Original Agreement, PCCP CS II Tralee
Village, LLC, a Delaware limited liability company (the "Developer"), acquired the Phase II
property from Pfeiffer, and intends to complete the development of Phase II as a residential
rental project (the "Project"); and
WHEREAS, the Developer and the City have proposed to enter into an Affordable
Housing Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory
Agreement'), to supersede and replace the Original Agreement with respect to satisfying
Developer's obligation, pursuant to the Ordinance, for the 16 Restricted Units to be constructed
in the Project; and
WHEREAS, pursuant to the Ordinance, the Developer has proposed to provide sixteen
(16) rental Restricted Units, allocated as follows: construction of five (5) very low-income units,
three (3) low-income units, and eight (8) moderate-income Restricted Units; and
WHEREAS, the Developer shall rent the Restricted Units at rents that are affordable to
persons with very low-, low- or moderate-incomes, as applicable, as defined in the Ordinance;
and
WHEREAS, the Project has been found to be Categorically Exempt from the California
Environmental Quality Act (CEQA); and
WHEREAS, a Staff Report setting forth in further detail the background and terms of the
proposed Regulatory Agreement has been submitted to the City Council for consideration of this
request.
Page 1 of 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the Affordable Housing Regulatory Agreement and Declaration of Restrictive
Covenants, as described in Exhibit A.
BE IT FURTHER RESOLVED that the City Manager is authorized and directed to
execute the Regulatory Agreement and such other documents, and to take such other and
further action, as necessary and appropriate to carry out the Intent of this Resolution.
PASSED, APPROVED AND ADOPTED this 16th day of August, 2011, by the following
vote:
AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor Sbranti
NOES: None
ABSENT: None
ABSTAIN: None
N
J~-
Mayor
ATTEST:
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City Clerk
Reso No. 138-11, Adopted 8-16-11, Item No. 4.2 Page 2 of 2
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1
AFFORDABLE HOUSING REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
Tralee Apartment Project
This Affordable Housing Regulatory Agreement and Declaration of Restrictive
Covenants (this "Agreement") is entered into this day of , 2011 ("Effective
Date") by and between the City of Dublin, a municipal corporation ("City") and PCCP CS
II Tralee Village, LLC, a Delaware limited liability company (the "Developer"). City and
Developer are hereinafter collectively referred to as the "Parties."
Recitals
A. Developer is the owner of real property located in the City of Dublin, County
of Alameda, State of California generally located at 6601 and 6599 Dublin Boulevard, and
more particularly described in Exhibit A attached hereto and incorporated into this
Agreement by reference (the "Property").
B. Chapter 8.68 of the Dublin Zoning Ordinance ("Ordinance") requires
developers of residential projects consisting of 20 units or more to set aside 12.5% of the
units in the project as Inclusionary Units (defined below) and to execute and record an
affordable housing agreement against the project property prior to the issuance of building
permits
C. The City of Dublin adopted the Ordinance pursuant to Strategy I.B. of the
City's General Plan Housing Element, recognizing that the cost of new housing is so high
that persons with very low-, low- and moderate-incomes are increasingly unable to locate
affordable housing in the City. The purpose of the Ordinance is to achieve a balanced
community with housing available at all income levels.
D. The original cleveloper of the Property, Bancor Properties, proposed the
development of 233 residential units in a residential and retail development on land
consisting ofthe Property and other real property located immediately adjacent thereto.
E. In order to induce the City Council to approve the General Plan Amendment
that was necessary to appxo~e the project, Bancor committed to construct all 29 Inclusionary
Units required by the Ordinance. On 7uly 20, 2004, the City Council approved Site
Development Review (Reso. No. 143-04) and a tentative subdivision map (Reso. No.143 -
04) (the "Development Approvals") for the project. Based on 233 units and in accordance
with the Ordinance, the Development Approvals for the project require the developer to
construct 29 Inclusionary Units (12.5% of 233 = 29).
F. Subsequently, Pfeiffer Ranch Investors, Inc. obtained the project from Bancor.
Pfeiffer and the City entered into that certain "Affordable Housing Agreement for the
Construction of Inclusionary Units," dated October 19, 2005 (the "Original AgreemenY'):
The Original Agreement requires the construction of 13 Inclusionary Units on the adjacent
Affordable Housing Regulatory Agreement between
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EXHIBIT. A TO
ATTACHMENT 3
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property (referenced in the Original Agreement as"Phase I"), and 16 Inclusionary Units in
the mixed use buildings to be developed on the Property (referenced in the Original
Agreement as "Phase II"). The Original Agreement provided that a1129 units were
designated as affordable ownership units, including the 16 Inclusionary Units within Phase
II.
G. Developer has now acquired the Property and intends to complete the
development of Phase II as a residential rental project, hereinafter referred to as the
"Project." Another developer, Dublin Tralee II, LLC ("Dublin Tralee II"), has acquired the
Phase I property and intends to complete the development of Phase I.
H. City and Developer are entering into this Agreement to govern the 16
Inclusionary Units required by the Development Approvals to be constructed in Phase II.
Dublin Tralee TI and City have or will enter into a separate agreement governing the
construction of the 13 Inclusionary Units (defined below) required by the Development
Approvals to be constructed in Phase I.
I. City and Developer enter into this Agreement to satisfy the conditions
described in the foregoing Recitals. The purpose of this Agreement is to regulate and restrict
the sale, occupancy and rents of the Project's Restricted Units (defined below) for the benefit
of the Project occupants. The covenants in this Agreement are intended to run with the land
and be binding on Developer and its successors and assigns for the full term of this
Agreement. As to the Property, the parties intend that this Agreement shall supersede and
replace the Original Agreement.
NOW, THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the Parties hereby agree as follows:
1. Definitions. The following terms have the meanings set forth in this Section
wherever used in this Agreement or the attached exhibits.
"Area Median Income" or "AMI" means the area median income for Alameda
County, California, adjusted for household size, determined periodically by the California
Department of Housing and Community Development ("HCD") as published in Section .
6932 of Title 25 of the California Code of Regulations ("Regulations") or successor
provision published pursuant to California Health and Safety Code Section 50093(c). If
HCD ceases to make such determination, Area Median Income shall be the median income
applicable to Alameda County, with adjustments for household size, as determined from time
to time by the U.S. Department of Housing and Urban Development ("HUD") pursuant to
the United States Housing Act of 1937 as amended, or such other method of inedian income
calculation applicable to the City of Dublin that HCTD may hereafter adopt in connection with
such Act.
"Eligible Household" means a household whose income upon initial occupancy does
not exceed the ma~cimum income level for Very-Low Income, Low-Income or Moderate-
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income, as applicable, as specified in Section 2 and E~ibit B and who is otherwise eligible
to rent a Restricted Unit.
"Inclusionary Ordinance" means Chapter 8.68 of the Dublin Municipal Code, as it
existed on the Effective Date.
"Low-Income" means an annual gross income that is 51% to 80% of AMI, adjusted for
actual household size.
"Moderate-Income" means an annual gross income that is 81% to 120% of AMI,
adjusted for actual household size.
"ProjecY' means the development and construction of 130 residential units on the
Property, which consists of 114 market-rate units and 16 Restricted Units, as defined below.
"Property" means that certain real property located at 6601 Dublin Boulevard and
6599 Dublin Boulevard in the City of Dublin and more particularly described in Exhibit A
attached hereto and incorporated by this reference.
"Qualifying Rent" means a monthly rent, less a utility allowance as specified by the
Housing Authority of Alameda County, that shall not exceed: (i) for units that are restricted
for rental to Very Low-Income households, one-twelfth of thirly percent (30%) of fifty
percent (50%) of AMI, (ii) for units that are restricted for rental to Low-Income households,
one-twelfth of thirty percent (30%) of sixty percent (60%) of ANII and (iii) for units that are
restricted for rental to Moderate-Income households, a monthly rent which does not exceed
one-twelfth of thirty percent (30%) of one hundred ten percent (110%) of AMI, adjusted for
household size.
"Restricted Unit" means a one- or two-bedroom dwelling unit that is reserved for
occupancy at a Qualifying Rent by an Eligible Household in accordance with and as set forth
in Section 2 and Exhibit B.
"Transfer" means any sale, agreement to sell; assignment, encumbrance,
hypothecation, conveyance, license, lease (other than the leasing of commercial space or
individual residential units within the Project) or transfer of the whole or any part of
Developer's interest in the Properiy or the Project to any person or entity that is not an
Affiliate. For the purposes hereof, an "Affiliate" shall mean, with respect to any person, any
other person controlled by, controlling or under common control with such person. The term
"person" as used herein will be interpreted broadly to include, without limitation, any
individual, corporation, company, partnership, limited liability company or any other type of
entity. The term "control" (including all inflected forms thereo~ means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of any person, whether through ownership of voting securities or otherwise.
"Very Low-Income" means an annual gross income that is 50% or less of AMI,
adjusted for actual household size.
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2. Use and Affordabilitv Restrictions. Except as provided in Sections 2.4 and
2_6, Developer hereby covenants and agrees, for itself and its successors and assigns, that the
Property shall be used solely for the construction and operation of a 130-unit multi-family
rental housing development in compliance with the Development Approvals and the
requirements set forth herein. Developer represents and warrants that it has not entered into
any agreement that would restrict or compromise its ability to comply with the occupancy
and affordability restrictions set forth in this Agreement, and Developer covenants that it
shall not enter into any agreement that is inconsistent with such restrictions without the
express written consent of City. ~
2.1 Affordabilitv Reauirements. For a term of fifty-five (55) years
commencing upon the Effective Date, occupancy of the Restricted Units shall be limited to
Eligible Households in the number and in accordance with the income limitations set forth in
Exhibit B attached hereto and incorporated by this reference. The income levels and other
qualifications of applicants for Restricted Units shall be certified pursuant to Section 3 of
this Agreement. In the event that recertification of a tenant's household income indicates
that the number of Restricted Units actually occupied by Eligible Households falls below the
number reserved for each respective income group as specified in Exhibit B, Developer shall
rectify the condition by renting the next available Restricted Unit to an Eligible Household(s)
from that income group until the required income mix is achieved.
2.2 Effect of Changes in Tenant Income. Notwithstanding the foregoing,
no tenant qualifying for a Restricted Unit shall be denied continued occupancy of a unit in
the Project because, after admission, such tenant's adjusted household income increases to
exceed the qualifying limit for such tenant. If a tenant who at initial occupancy qualified as
Very Low-, Low- or Moderate-Income, such tenant shall be treated as continuing to be of
Very-Low, Low- or Moderate-Income, as applicable, so long as the tenant's household
income does not.exceed 140% of the applicable income limit. A tenant shall be deemed a
"Disqualified TenanY' when the tenant's household income exceeds 140% of the applicable
income limit. A Disqualified Tenant shall continue to qualify as a Very Low-, Low-, or
Moderate-Income tenant, as applicable, until Developer has notified the City of its
designation of another unit of comparable size within the Project as a Restricted Unit. Upon
such notification, the unit so designated shall unmediately (or at a subsequent time specified
in the notification) become a Restricted Unit, and the unit occupied by the Disqualified
Tenant shall no longer be. a.Restricted Unit.
2.3 Rents for Restricted Units. Rent charged to, and paid by, a tenant for
Restricted Units shall be not more than Qualifying Rent.
2.4 Restricted Unit Desi~n, Location, and Size. The Restricted Units shall
be of the same general design and appearance as the other market-rate units in the Project
approved by the City. Section 8.68.030.E of the Inclusionary Ordinance provides that the
Restricted Units shall be reasonably dispersed within the Project. The Diagram of Location of
Inclusionary Units, attached hereto as Exhibit C, shows the location of the Restricted Units
as proposed by the Developer, and the City hereby finds that the Restricted Units are
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reasonably dispersed within the Project. Developer may change the location of Restricted
Units either with the approval of the City's Community Development Director or pursuant to
the terms of Section 2.2. If as a result of such changes the City finds that the Restricted
Units are not reasonably dispersed throughout the Project, Developer shall promptly change
the location of the Restricted Units upon City's request.
2.5 Equal Access to Facilities and Services. Tenants of Restricted Units
shall have equal access to all services and facilities offered to tenants of dwelling units in the
Project that are not Restricted Units. .
2.6 Sale of Units. Developer shall not convert the Property or the Project
to condominium or cooperative ownership or sell condominium or cooperative conversion
rights to the Property or the Project during the term of this Agreement, other than in
conformity with the City's Condominium Conversion Regulations set forth in Chapter 8.54
of the Dublin Zoning Ordinance. In the event the Project is converted to condominium
ownership, this Agreement shall terminate and the Inclusionary Ordinance's requirements
applicable to ownership units shall apply for the full term specified in the Inclusionary
Ordinance.
2.7 Non-Discrimination• Compliance with Fair Housing Laws. There shall
be no discrimination against or segregation of a person or of a group of persons on account
of race, color, religion, creed, sex, sexual orientation, marital status, familial status, ancestry
or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of
the Property or the Project, nor shall Developer or any person claiming under or through
Developer establish or permit any such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or vendees in the Project. Developer shall ensure that language
prohibiting such discrimination shall be included in all deeds, leases and contracts executed
by Developer or its successors and assigns with respect to the Project and the Property.
Developer shall comply with state and federal fair housing laws in the marketing and rental
ofthe units in the Project.
3. Reporting Requirements.
3.1 Tenant Verification. Developer or its authorized agent shall obtain
from each household prior to initial occupancy of each Restricted Unit, and on every
anniversary thereafter, written documentation verifying each tenant's eligibility containing
all of the following, including additional documentation as City may reasonably require
(collectively hereinafter "Written Verification"):
a. Number of people in the household; and
b. Total household income.
Developer or its authorized agent shall retain Written Verification for not less than
three (3) years, and upon City's request, shall make the Written Verification available for
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inspection by City and shall provide copies of the Written Verification to City. Developer or
its authorized agent may require each Eligible Household to verify the Written Verification.
Absent manifest error by the tenant, Developer ~hall be entitled to rely upon the information
contained in a Written Verification and shall not be responsible for any factual inaccuracy
contained therein or in any other materials subrnitted to Developer by an Eligible Household.
3.2 Annual Report• Inspections. Developer shall submit an annual report
("Annual Report") to the City in conformity with the requirements of Section 8.68.OSOB of
the Inclusionary Ordinance, together with a verification that the Project is in compliance with
the requirements of this Agreement. The A.nnual Report shall, at a minimum, include the
following information for each Restricted Unit in the Project: (i) unit number; (ii) number of
bedrooms; (iii) current rent and other charges; (iv) dates of any vacancies in a Restricted Unit
for a period of more than 30 consecutive days during, the previous year; (v) number of people
residing in the unit as determined through the written verification; (vi) total household
income of residents as determined through the written verification; and (vii) documentation
of source of household income. Upon City's request, Developer shall include with the
Annual Report, copies of the Written Verif cation for each household Developer obtained
pursuant to Section 3.1 above, and such additional information as City may reasonably
request from time to time in order to show compliance with this Agreement. The Annual
Report shall conform to the format described in Exhibit 9 of the City's Guidelines to the
Inclusionary Zoning Ordinance Regulations, more particularly described in Exhibit D
attached hereto and incorporated herein by reference ("Guidelines"). Developer shall permit
representatives of City to enter and inspect the Restricted Unit, or Units, as the case may be,
during reasonable business hours in order to monitor compliance with this Agreement upon
24 hours advance notice of such visit to Developer or to Developer's management agent.
4. Term of Agreement.
4.1 Term of Restrictions. This Agreement shall remain in effect through
the SSth anniversary of the Effective Date.
4.2 Effectiveness Succeeds Convevance of Propertv. This Agreement shall
remain effective and fully binding for the full term hereof regardless of any sale, assignment,
transfer, or conveyance of the Property or the Project, unless this Agreement is terminated
earlier by City in a recorded writing.
4.3 Reconvevance. Upon the termination of this Agreement, the Parties
agree to execute and record appropriate instruments to release and discharge the terms of this
Agreement; provided, however, the execution and recordation of such instruments shall not
be necessary or a prerequisite to the termination of this Agreement in accordance with its
terms.
5. Bindin~Upon Successors; Covenants to Run with the Land. Developer
hereby subjects its interest in the Properiy and the Project to the covenants and restrictions
set forth in this Agreement. The City and Developer hereby declare their express intent that
the covenants and restrictions set forth herein shall be deemed covenants running with the
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land and shall be binding upon and inure to the benefit of the heirs, administrators, executors,
successors in interest, transferees, and assigns of Developer and City, regardless of any sale,
assignment, conveyance or transfer of the Property, the Project or any part thereof or interest
therein. Each reference in this Agreement to a specifically named party shall be deemed to
mean a reference to the successor of each such Party. Any successor-in-interest to
Developer, including without limitation any purchaser, transferee or lessee of the Property or
the Project (other than the tenants of the individual dwelling units within the Project) shall be
subject to all of the duties and obligations imposed hereb~ for the full term of this
Agreement. Each and every contract, deed, ground.lease or other instrument affecting or
conveying the Property or the Project or any part thereof, shall conclusively be held to have
been executed, delivered and accepted subject to the covenants, restrictions, duties and
obligations set forth herein, regardless of whether such covenants, restrictions, duties and
obligations are set forth in such contract, deed, ground lease or other instrument. If any such
contract, deed, ground lease or other instrument has been executed prior to the date hereof,
Developer hereby covenants to obtain and deliver to City an instrument in recordable forrn
signed by the parties to such contract, deed, ground lease or other instrument pursuant to
which such parties acknowledge and accept this Agreement and agree to be bound hereby.
Developer agrees for itself and for its successors that in the event that a court of
competent jurisdiction determines that the covenants herein do not ruri with the land, such
covenants shall be enforced as equitable servitudes against the Property and the Project in
favor of City.
The Parties hereby declare that it is their understanding and intent that the burden of
the covenants set forth herein touch and concern the land in that they restrict the use of the
Property. The Parties further declare tihat it is their understanding that the benefit of such
covenants touch and concern the land by enhancing and increasing the enjoyment and use of
the Project by Eligible Households. The covenants, conditions and restrictions hereof shall
apply uniformly to the Properry in order to establish and carry out a common plan for the
use, development and improvement of the Property.
6. Propert~ana~ement; Repair and Maintenance; Marketing.
6.1 Mana~;ement Responsibilities. Developer shall be responsible for all
management functions with respect to the Properiy and the Project, including without
limitation, the selection of tenants, verification and reverification of household income and
eligibility, evictions, collection of rents and deposits, maintenance, landscaping, routine and
extraordinary repairs, replacement of capital items, and security; subject to the Easement,
Joint Maintenance and Use Agreement dated July 3, 2008, executed by Pfeiffer Ranch
Investors, Inc. and recorded in the O~cial Records of Alameda County on July 10, 2008 as
Instrument No. 2008211866, as amended from time to time. Except as City may otherwise
agree in writing, City sha11 have no responsibility for management or maintenance of the
Property or the Project. The contracting of management services to a management entity
shall not relieve Developer of its primary responsibility for proper performance of
management duties.
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6.2 Mana~ement Entitv. City shall have the right to review and approve
the qualifications of the management entity proposed by Developer for the Project. The
contracting of management services to a management entity shall not relieve Developer
of its primary responsibility for proper performance of management duties. The City
approves Apartment Management Consultants as the initial management entity.
6.3 Repair and Maintenance. Throughout the term of this Agreement,
Developer shall at its own expense, maintain the Property and the Project in good physical
condition and repair, in conformity with all applicable state, federal, and local laws,
ordinances, codes, and regulations, and shall not commit waste with respect to the Project.
6.4 Inspection. Developer shall permit representatives of City to enter
upon and inspect the Property and the Project during reasonable business hours upon twenty-
four (24) hours advance notice to Developer or Developer's management agent.
6.5 Intentionally Omitted.
6.6 Marketing; Marketing and Managernent Plan• Approval and ..
Amendments. As soon as practicable following completion of Project construction,
Developer shall rent the Restricted Units to Eligible Households. Developer shall give
priority for Restricted Units to Eligible Households in accordance with the Marketing and
Management Plan described below and the selection criteria specified in Paragraph D of
Section 8.68.050 of the City's Inclusionary Ordinance, unless compliance with such criteria
is prohibited by state or federal sources of financing for the Project or state or federal law.
Within thirty (30) calendar days of Developer's first rental of a Restricted Unit,
Developer shall sutimit for City review and approval, a plan for marketing and managing the
Restricted Units ("Marketing and Management Plan") in accordance with Section 4.11 of
the Guidelines, which approval shall not be unreasonably withheld, conditioned or delayed.
The Marketing and Management Plan shall address in detail how Developer plans to market
the Restricted Units to Eligible Households in accordance with fair housing laws ancl the
tenant selection criteria specified in the Inclusionary Ordinance, and how Developer plans to
verify the eligibility of Eligible Households. The Plan shall also describe the management
team and shall address how the Developer and the management entity plan to manage and
maintain the Restricted Units. The Plan shall include the proposed management agreement
and the form of rental agreement that Developer proposes to enter into with tenants of
Restricted Units. Developer shall abide by the terms of the Marketing and Management Plan
in marketing, managing, and maintaining the Property and the Project and throughout the
term of this Agreement, and shall submit proposed modifications to City for its review and
approval.
If City has not responded to any submission of the Management and Marketing Plan,
the proposed management entity, or a proposed amendment or change to any of the
foregoing within 30 days following City's receipt of such plan, proposal or amendment, the
plan, proposal or amendment shall be deemed approved by City.
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6.7 Fees, Taxes, and Other Levies. Developer shall be responsible for
payment of all fees, assessments, taxes, charges, liens and levies, including without
limitation possessory interest taxes, if applicable, imposed by any public authority or utility
company with respect to the Property or the Proj ect, and shall pay such charges prior to
delinquency. However, Developer shall not be required to pay any such charge so long as(a)
Developer is contesting such charge in good faith and by appropriate proceedings, (b)
Developer maintains reserves adequate to pay any contested liabilities, and (c) on final
determination of the proceeding or contest, Developer immediately pays or discharges any
decision or,judgment rendered against it, together with all costs, charges and interest.
6.8 Insurance Covera~e. Throughout the term of this Agreement
Developer shall maintain at Developer's expense comprehensive general liability insurance
issued by a carrier licensed by the State of California with a Best's rating of not less than
A:VII providing aggregate limits of not less than Two Million Dollars ($2,000;000),
providing coverage for bodily injury, death and property damage, naming the Indemnified
Parties (as defined in Section 10) as additional insureds and providing for notice to City prior
to cancellation or reduction in coverage. Prior to first occupancy of the Project, Developer
shall provide City with evidence of such coverage in such form as City may reasonably
request.
6.9 Pr~e , Damage or Destruction. If any part of the Project is damaged ~
or destroyed, to the extent that the Developer repairs or restores damaged or destroyed
market-rate units, Developer shall similarly repair or restore damaged or destroyed Restricted
Units substantially concurrently therewith, consistent with the occupancy and rent
restriction requirements set forth in this Agreement.
6.10 Intentionally Omitted.
6.11 Intentionally Omitted.
7. Recordation of Memorandum of A~reement; No Subordination. Developer
and City shall execute and acknowledge a memorandum of this Agreement
("Memorandum") substantially in the form attached.hereto as Exhibit E. The City shall
record the Memorandum in the Official Records of Alameda County. Developer hereby .
represents, warrants and covenants that this Agreement shall not be subordinated in priority
to any lien (other than those pertaining to taxes or assessments), encumbrance, or other
interest in the Property or the Project, other than those liens, encumbrances or other interests
of record on the date of this Agreement. If at the time the Memorandum is recorded, a lien
securing Project fmancing has been recorded aga.inst the.Project in position superior to this
Agreement, upon the request of Ciiy, Developer hereby covenants and agrees to promptly
use all commercially reasonable efforts to obtain the lender's agreement to subordinate such
interest to this Agreement consistent with the intent of and in accordance with this Section,
and to provide such evidence thereof as City may reasonably request.'
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8. Transfer and Encumbrance.
8.1 Restrictions on Transfer. During the term of this Agreement, except as
permitted pursuant to this Agreement, Developer shall not make or permit the occurrence of
any conveyance, sale or lease (except as to individual dwelling units) of the Project or the
Properiy without the prior written consent of the City; provided, however, City shall not
withhold its consent to the sale, transfer or other disposition of the Project, in whole or iri
part, provided that (i) the Project is and shall continue to be operated in compliance with this
Agreement; and (ii) the transferee expressly assumes, in writing, all obligations of
Developer imposed by this Agreement. After any sale, transfer or other disposition of the
Project, or portion thereof, in which the transferee executes all documents reasonably
requested by the City with respect to the assumption of the Developer's obligations under
this Agreement with respect thereto, Developer shall be released from any obligations
hereunder with respect to the portion of the Project transferred.
8.2 Encumbrances. Developer agrees to use commercially reasonable
efforts to ensure that any deed of trust secured by the Proj ect shall contain each of the
following provisions: (i) the holder of such deed of trust shall use commercially reasonable
efforts to provide to City a copy of any notice of default issued to Developer concurrently
with provision of such notice to Developer (provided however, the failure to do so shall not
impair such holder's rights and remedies); and (ii) City shall have the reasonable right, but
not the obligation, to cure any default by Developer within the same period of time provided
to-Developer for such cure, extended by an additional thirty (30) days.
8.3 Mort~agee Protection. No violation of any provision contained herein
shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and
for value upon all or any portion of the Proj ect or the Property, and the purchaser at any
trustee's sale, foreclosure sale, or deed in lieu thereof, shall not be liable for any violation of
any provision hereof occurring prior to the acquisition of title by such purchaser. Such
purchaser shall be bound by and subject to this Agreement from and after such trustee's sale
foreclosure sa1e, or deed in lieu thereof. Promptly upon determining that a violation of this
Agreement has occurred, City shall give written notice to the holders of record of any
mortgages or deeds of trust encumbering the Project or the Property that such violation has
occurred.
9. Default and Remedies.
9.1 Events of Default. Developer's failure to cure any default in
performance of Developer's obligations under this Agreement within thiriy (30) days
following City's delivery of a notice of default shall constitute an Event of Default hereunder
and shal~l entitle the City to proceed with any of the remedies described below.
Notwithstanding the foregoing, if the default is such that it is not reasonably capable of being
cured within thirty (30) days, an Event of Default shall not arise hereunder if Developer
commences to cure the default within 30 days and thereafter prosecutes the curing of such
default to completion with due diligence and in good faith, but in no event later than ninety
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(90) days after receipt of City's notice of default or such longer period as City may agree to
in writing.
a. Bring an action for equitable relief seeking the specific
performance of the terms and conditions of this Agreement, and/or enj oining, abating, or
preventing any violation of such terms and conditions, and/or seeking declaratory relief;
b. For violations of obligations with respect to rents for Restricted
Units, impose as liquidated damages a charge in an amount equal to the actual amount
collected in excess of the Qualifying Rent;
c. Pursue any other remedy allowed at law or in equiry.
9.2 Remedies Cumulative. Each of the remedies provided herein is
cumulative and not exclusive. The City may exercise from time to time any rights and
remedies available to it under applicable law or in equity, in addition to, and not in lieu of,
any rights and remedies expressly provided in this Agreement. ~
10. Indemnification: Notwithstanding the insurance coverage required hereunder,
Developer shall defend (with counsel approved by City), indemnify and hold the City and its
officials, officers, directors, employees, and agents (collectively, the "Indemnified Parties")
harmless from and against any and all losses, damages, liabilities, claims, demands,
judgments, actions, court costs, and legal or other expenses (including reasonable attorneys'
fees) arising from or in connection with or in any way related to: (i) Developer's
performance or failure to perform any obligation required by this Agreement; or (ii) any act
or omission by Developer, or any of Developer's contractors, subcontractors, agents,
employees, licensees or suppliers related to the Project or the Property, except to the extent
arising from the gross negligence or willful misconduct of an Indemnified Party. The
provisions of this Section shall survive the expiration or earlier termination of this
Agreement.
11. Miscellaneous.
11.1 Amendments. This Agreement may be amended or modified only by a
written instrument signed by both Parties.
11.2 No Waiver. Any waiver by City of any term or provision of this
Agreement must be in writing. No waiver shall be implied from any delay or failure by City
to take action on any breach or default hereunder or to pursue any remedy. allowed under this
Agreement or applicable law. No failure or delay by City at any time to require strict
performance by Developer of any provision of this Agreement or to exercise any election
contained herein or any right, power or remedy hereunder shall be construed as a waiver of
any other provision or any succeeding breach of the same or any other provision hereof or a
relinquishment for the future of such election.
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11.3 Notices. Except as atherwise specified herein, all notices to be sent
pursuant to this Agreement shall be made in writir~g, and sent to the Farties at their respective
addresses specified ~elaw ar ta such oth~r addr~ss as a Farty may designate by written no~iee
delivered to the other parties ir~ accordance with this Section. All such nfltices shall be sent
by:
a. personat delivery, in which case notice is effective ~pon
delivery;
b. certified or registered mail, return receipt requested, in which
case notice shall be d~med delivered upon receipt if delivery is confirmed by a return
receipt;
c. nationally recognized overnight courier, with chazges prepaid or
charged to the sender's aceount, in ~vhich case notiee is effective an delivery if delivery is
confirmed by the delivery service;
d. facsimile transmission, in which case notice shall be deemed
delivered upon transmittal, provided tha# (a) a duplicate copy of the notice is promptly
delivered by first-cl~ss or certified mail or by overnight delivery, or (b) a transmission report
is generated reflecting the accurate transmission thereof. Any notice aiven by facsimile shall
be considered to have been received on the next business day if it is received a~ter 5:00 p.m.
recipient's time ar an a nanhusiness day.
City: City of Dublin
100 Civi~ Plaza
Dublin, CA 9456~
Attention: City Manager
Facsimile: (925) 833-665]
Developer: PCCP CS II Tralee Village, LLC
c/o Signature Development Group, Inc.
2201 Broadway, Suite 604
Oakland, CA 94612
Attention: Mr. Patrick Van Ness
Facsimile: ;510) 832-263~
11.4 ~urther ~s~urances. The Parties shall use commerciaily reasonable
efforts to execute, acknowledge and deliver to the other such other documents and
instruments, and shall use commercially reasonable efforts to take such other actions, as
either shall reasonably request as rr~ay be neeessary to carry out the intent of this Agreement.
11.5 Parties Not Co-Venturers. Nothing in this Agreement is intended to or
shall establish t}~e ~'at°ties as~artriet-s, co-vetiturel~s, or p~•inci~al and aaet~t with one,another.
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11.6 Action bv the City. Except as may be otherwise specifically provided
herein, whenever any approval, notice, direction, consent or request by the City is required or
permitted under this Agreement, such action shall be in writing, and such action may be
given, made or taken by the City Manager or by any person who shall have been designated
by the City Manager, without further approval by the City Council.
11.7 Non-Liability of Citv and Citv Officials Employees and A~ents. No
member, official, employee or agent of the City shall be personally liable to Developer or
any successor in interest, in the event of any default or breach by the City, or for any amount
of money which may become due to Developer or its successor or for any obligation of City
under this Agreement.
11.8 Non-Liability of Devel~er Emplovees and A~ents. No owner,
member, official, officer, director, employee or agent of the Developer shall be personally
liable to the City or any successor in interest, in the event of any default or breach by the
Developer, or for any amount of money which may become due to City or its successor or
for any; obligation of Developer under this Agreement.
11.9 Headin~s; Construction. The headings of the sections and paragraphs
of this Agreement are for convenience only and shall not be used to interpret this Agreement.
The language of this Agreement shall be construed as a whole according to its fair meaning
and not strictly for or against any Pariy.
11.10 Time is of the Essence. Time is of the essence in the perforniance of
this Agreement.
11.11 Governing Law. This Agreement shall be construed in accordance with
the laws of the State of California without regard to principles of conflicts of law.
11.12 Attornevs' Fees and Costs. If any legal or administrative action is
brought between the parties to interpret or enforce the terms of this Agreement, the
prevailing party shall be entitled to recover all reasonable attorneys' fees and costs incurred
in such action.
11.13 Severabilitv. If any provision of this Agreement is held invalid, illegal,
or unenforceable by a cot~t of competent jurisdiction, the validity, legality, and
enforceability of the remaining provisions shall not be affected or impaired thereby.
11.14 Entire Agreement; Exhibits. T'his Agreement, together with Exhibits A
through E, and the Development Approvals issued by the City for the Project contains the
entire agreement of Parties with respect to the subject matter hereof, and supersedes all prior
oral or written agreements between the Parties with respect thereto. The exhibits attached
hereto are incorporated herein by this reference.
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11.15 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be an original and all of which together shall constitute one
agreement.
SIGNATURES ON FOLLOWING PAGE.
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IN WITNESS Wf~REOF, the Parties have executed this Agreement effective as of
the date first written above.
CITY OF DUBLIN,
a municipal corporation
PCCP CS II TRALEE VILLAGE, LLC,
a Delaware limited liability company
By:
Joni Pattillo, City Manager
Attest:
Caroline Soto, City Clerk
Approved as to form
John Bakker, City Attorney
By:_
Name:
Its:
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Exhibit A
PROPERTY DESCRIPTION
Real property in the County of Alameda, State of California, described as follows:
Lot 4 of Tract 7457, Filed June 13, 2006, Book 291, Pages 29
through 37, inclusive, Alameda County Records.
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Exhibit B
a. OCC UPANCY AND RENT RESTRICTIONS
Restricted Unit Type Number of Maximum Initial Maximum
Required Income Limit* Affordable Rent
Restricted Units
1-Bedroom 3 VLI 50% of AMI 30% x 50% of AMI
2 LI 80% of AMI 30% x 60% of AMI
5 MOD 120% of ANII 30% x 110% of AIVII
2-Bedroom 2 VLI 50% of AMI 30% x 50% of ANB
1 LI 80% of A1VII 30% x 60% of ANII
~ 3 MOD 120% of AMI 30% x 110% of AMI
Total Restricted Units 16
Total Unrestf-icted 114
Units
Total Units 130
AMI =Area Median Income
VLI = Very Low-Income
LI = Low Income _
MOD = Moderate-Income
*M~imum Initial Income Limit: Maximum income for a household to qualify for initial
occupancy in the specified Restricted IJnit is established annually by HCD in the Regulations
(Section 6932 of Title 25 of the California Code of Regulations) and may differ from the stated
percentage of AMI. ~
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Exhibit C
DIAGRAM OF LOCATION OF INCLUSIONARY UNIT5
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Affordable Housing Exhibit
6601 Dublin Boulevard
Building A
Floor 2
BI~DIVG A
SECOND FtOOR PLAN
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; i ,•~ ;,,rT:1
TH~D FLOOR ~N
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BI~DING A
FOI~TH FLOOR PLAN
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BUILDWG B
SECOIm FLOOR PLAN
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~
B~ B
TF~tD FLC)C)R PLAN "
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Bu~~~ B
F~~ ~TM ~ ne~~ ~ an~
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Page C-7
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~ EXHIBIT D ~ ~ .~'~
GUIDELINES TO THE INCLUSIONARY ZONING ORDINANCE REGULATIONS
CITY OF DUBLIN
TABLE OF CONTENTS
1 LIST OF EXHIBITS 4
2 GUIDELINES TO THE INCLUSIONARY ZONING ORDINANCE
REGULATION 5
3 DEFINITION OF TERMS 6
4 REQUIREMENTS FOR DEVELOPERS 12
4.1 Overview of the Inclusionary Zoning Process 12
4.2 Determining the Number and Size of Units Required 12
4.3 How to Calculate the Inclusionary Obligation 13
4.4 How to Calculate How Many Units Must Be Constructed and How Many
Units of the Obligation May be Satisfied with an In-Lieu Fee 13
4.5 How to Calculate the Amount of the In-Lieu Fee 14
4.6 How to Calculate How Many BMR Units Must Be Provided for Each
Income Level 14
4.7 How to Determine the Size of BMR Units 15
4.8 How to Determine the Location of BMR Units_ Within the Development 16
4.9 Housing Agreements 17
4.10 Procedures for Initial Sale of BMR Units 18
4.10.1 The Marketing Plan far Ownership Units 18
4.10.2 Application and Screening Process 19
4.10.3 Sale price of BMR Units 22
4.11 Procedures for Initial Rental of BMR Units 23
4.11.1 The Management Plan for Rental BMR Units 23
4.11.2 Apptication. and Screening Process 24
4.11.3 Calculating Maximum Rent 25
4.11.4 Annual Report 25
4.11.5 Annual Monitoring by City 26
5 BUYER AND RENTER QUALIFICATIONS FOR BMR UNITS 27
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EXHIBIT D ~ ~~0 ~~ ~
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GUIDELINES TO THE 1NCLUSIONARY ZOI~tING ORDINANCE REGULATIONS
5.1 Buyer Qualifications 27
5.2 Renter Qualifications 28
5.3 Household Size 28
5.4 Total Household Income 29
5.4.1 Gross Household Income 29
5.4.2 Income Calculation 30
5.4.3 Assets 31
5.5 Credit Score 32
5.6 Alternative Credit History Parameters 32
5.7 Preference Points 33
6 REQUIREMENTS FOR BUYERS OF BMR UNITS 36
6.1 Financing Requirements 36
6.1.1 Acceptable Loan Products for Purchase and Refinancing of a BMR Unit36
6.1.2 Prohibited Loan Products 36
6.2 Down Payment 36
6.2.1 Down Payment Assistance 37
6.3 Debt to Income Ratio 37
6.4 First Mortgage Loan Value Ratio 37
6.5 Closing Costs and Deposits 37
6.6 Homebuyer Education Program 37
6.7 Documents that Each Buyer Must Sign 37
6.7.1 Highlights of the Resale Restriction Agreement 37
7 REQUIIZEMENTS FOR RESALE OF BMR UNITS 40
7.1 Resale Procedure 40
7.2 Calculating Restricted Resale Price 41
7.3 Fees Associated with the Selling of a BMR Unit 41
7.4 CapitalImprovements 41
7.4.1 Procedure for Receiving Approval of Capital Improvements 41
7.4.2 Special Assessments 43
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8 REQUIREMENTS FOR OWNER'S OF BMR SECONDARY UNITS 46
8.1 Rental Requirements
82 Reporting Requirements
8.3 Annual Report - Inspections
8.4 Management Responsibilities
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GUIDELINES TO THE INCLUSIONARY ZONING ORDINANCE REGULATIONS
7.4.3 Capital Improvements Cap 43
7.4.4 List of Eligible and Ineligible Capital Improvements 43
7.4.5 Building Permits 44
46
46
46
47
Page D-3
1 LIST OF EXHIBITS
Exhibit 1 Resale Restriction Agreement and Option to Purchase
Exhibit 2 Performance Deed of Trust
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Exhibit 3 Sample Application for Inclusionary Unit
Exhibit 4 Sample Ownership BMR Unit Application Packet
Exhibit 5 Sample Credit Report Authorization and Release
Exhibit 6 Excel Spreadsheet to Calculate Ownership Sale Prices
Exhibit 7 State of California Housing and Community Development Department Income
for Guidelines (Example 2008)
Exhibit 8 Current Alameda County Housing Authority Utility Allowance Sheet
Exhibit 9 Annual Report for Rental Units
Exhihit 10 Sample Marketing Plan
Exhibit 11 Internal Revenue Service (IRS) Code 26 USC, Section 61
Exhibit 12 Sample Management Plan
Exhibit 13 Reservation Instrument
Exhibit 14 Secondary Unit Regulatory Agreement and Declaration of Restrictive
Covenants
For a copy of the above-referenced Exhibits, please contact the City of Dublin
Community Development Department at (925) 833-6610.
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GUIDELINES TO THE INCLUSIONARY ZONING ORDINANCE
REGULATION
This document is the Guidelines (these "Guidelines") to the City's Inclusionary Zoning Ordinance
Regulations (the "Ordinance") set forth in the City's Municipal Code at Chapter 8.68. The City
Council's purpose in adopting the Ordinance is to increase the diversity of housing prices/rents in the
community and ensure that the range of prices/rents continues over time.
In general, the Ordinance requires that 12.5% of the units constructed in a Residential Development
project of 20 residential units or more be restricted in occupancy and in sale price or rent charged.
Such restricted units are referred to as Below Market Rate (BMR) Units. For for-sale units, 60% must
be affordable to moderate-income households and 40% to low-income households. For rental units,
50% must be affordable to Moderate-Income households, 20% to Low-Income households and 30%
to Very Low-Income households. (Section 8.68.030.B)
The purpose of these Guidelines is to assist the layperson in interpreting the Ordinance. The
Guidelines will assist developers early in the development process so that Residential Development
projects are sensitively designed from the beginning in compliance with the requirements of the
Inclusionary Zoning Ordinance. In addition, the Guidelines will inform developers, management
firms and owners of BMR Secondary Units of the procedures for selling and renting BMR Units and
Secondary Units. Furthermore, the Guidelines will provide households interested in renting or
purchasing a BMR Unit with an overview of the eligibility requirements, the application and
screening process, the restrictions on ownership BMR Units, and the procedures for reselling a BMR
Unit.
These Guidelines should be read in conjunction with the Ordinance. While every effort has been
made to ensure that these Guidelines are consistent with the Ordinance, if there is any conflict with
these Guidelines and the Ordinance, the terms of the Ordinance shall prevail. In addition, the
provisions of a Housing Agreement or Resale Restriction Agreement (or like Agreement) recorded
against a BMR Unit shall prevail over any general requirements of the Ordinance.
Users of these Guidelines are encouraged to seek their own legal counsel to aid in understanding the
requirements of the City's Inclusionary Program. For any general questions regarding the
Guidelines, users may call 925-833-6610.
The effective date of these Guidelines is January 2, 2009. The City will review and to the extent
necessary update these Guideli~es annually. The Community Development Director may make
interim revisions, interpretations or clarifications to these Guidelines provided that he or she
considers the revision, interpretation, or clarification to be minor and consistent with the purposes of
the Inclusionary Zoning Regulations and the Guidelines. Any such revision, interpretation, or
clarification shall not become effective until posted on the City's website
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2 DEFINITION OF TERMS ~ ~~ ~
As used in these Guidelines, the following terms shall be defined as follows:
Administration Fees
• A$1,500 fee charged by the City to the BMR Owner for all sales and re-sales of BMR Units,
• A$500 fee charged by the City to the developer/property manager for the annual review of
rental developments
• A$200 fee charged by the City to the BMR Owner for requests to subordinate the Resale
Restriction Agreement and/or Performance Deed of Trust or requests to refinance a BMR unit
Fees may be adjusted from time to time by the City.
Affordable Housing Agreement
An agreement between the developer and the City for an ownership Residential Development project
which is recorded against the property containing the BMR Units; sets forth the developer's
Inclusionary Obligation and the method by which the developer will comply with the requirements of
the Inclusionary Zoning Ordinance; and requires, among other things, that the 'developer require
purchasers of BMR Units to execute and record a Resale Restriction Agreement and Option to
Purchase and Performance Deed of Trust.
Affordable ~Iousing Regulatory Agreement and Declaration of Restrictive Covenants
An agreement between the developer and the City for a rental Residential Development project which
is recorded against the property containing the BMR Units; sets forth the developer's Inclusionary
Obligation and the method by which the developer will comply with the requirements of the
Inclusionary Zoning Ordinance; and requires, among other things, that the BMR Units are reserved
for occupancy by Very-Low, Low-, andlor Moderate-Income households at rents affordable to such
households for a period of not less than 55 years.
AMI or Area Median Income
The area median income adjusted for household size as published annually by the County of
Alameda's Department of Housing and Community Development (HCD).
Approved Capital Improvements
Capital improvements to BMR Units that have been approved by the City pursuant to the procedure
set forth in Section 7.4.1. The cost of such improvements may be added to the resale price of the
BMR Unit.
BMR Owner
A household that owns a BMR Unit.
Below 1Vlarket Rate (BMR) Units
A Below Market Rate or BMR Unit is a unit that is reserved for rent to Very-Low, Low, or
Moderate-Income households or for-sale to Low or Moderate Income households at a price or rent
that is affordable to such households. BMR Units have restrictions recorded against them to ensure
that they remain affordable for a period as set forth in the Housing Agreement or Resale Restriction
Agreement.
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• Rental units are deemed affordable if the annual rent does not exceed 30% of the maximum
income level for Very Low-Income, Low-Income, or Moderate-Income households, as
applicable, adjusted for household size.
• Owner-occupied units are deemed affordable if the sales price results in annual Housing
Expenses that do not exceed 35% of the maximum income level for Low- or Moderate-
Income households, as applicable, adjusted for household size.
CaIHFA -
The California Housing Finance Agency
City
The City of Dublin
Consent Agreement
An agreement between the City and a Qualified Household which authorizes the City to access and
review the Qualified Household's credit reports or other personal or financial information to verify a
Qualified Household's compliance with the Resale Restriction Agreement, the Ordinance and these
Guidelines. This agreement must be executed by purchasers of ownership BMR Units prior to the
close of escrow. .
Domestic Partner
A legal or personal relationship between individuals who live together and share a common domestic
life, but are not joined in a traditional marriage or a civil union as formalized through a local or state
registry.
Homebuyer
A person who has not owned any interest in real property during the three-year period prior to the
date of the household's application to qualify for purchase of a BMR Unit, including without
limitation, real property in which a household member's name appears on title regardless of whether
the member's interest in such property results in a financial gain, such property is located in another
state or country, or the member has occupied such property as his or her primary residence. If any
person has had his or her name on title of a property, but the property was sold more than three years
ago from the date of application, the person is considered a Homebuyer.
Homebuyer Education Workshop for Below Market Rate Buyers
A HUD approved 8-hour course designed to provide basic education specific to Below Market Rate
Homebuyers. Refer to the City's web site for organizations that may offer this course at
www.ci.dublin.ca.us . The date on the completion certificate for the class must be within 6 months
of the date of application for a Below Market Rate unit.
Gross Household Income
"Gross Household Income" means all income, from whatever source derived, of all adult household
members (18 years of age and older), whether or not such income is exempt from Federal income tax.
Such income includes, but is not limited to, the following:
• Compensation received from an employer
• Compensation includes, but is not limited to salary, overtime pay, and other pay
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• Other pay includes, but is not limited to, compensation for special workmg conditions or one
time pay-out of unused vacation and sick leave.
• Alimony, spousal and child support
• Cash
• Pensions, if at an age where pension is being received as income
• Public benefits including, but not limited to, CalWorks, SSI, and disability income
• All interest, dividends, and royalties
• Income derived from private businesses
• Rentallncome
• Income from pensions
• Compensation for services rendered including fees, fringe benefits, commissions, tips, and
bonuses
• Stipend received for participation in a mentor, learning or education opportunity
• Gains from dealings in private and/or commercial property
• Gambling Winnings
• Annuities, life insurance, and endowment contracts
• Income from discharge of indebtedness
• Gross partnership contributions or distributions
• Income from an interest in an estate or trust
Exceptions:
1) Gross Household Income does not include income earned by a household member who is between
the ages of 18-26 and meets both of the following criteria:
• Is claimed as a dependent of a household member on such member's federal income
taxes; and
• Is a full time student (12+ units - school transcript must be provided)
2) Gross Household Income does not include payments to a household member from a governmental
fund income if all of the following requirements are satisfied:
• The payments are based on the recipient's or the recipient's family's financial need;
• The payments do not represent compensation far services rendered; and
• The payments are part of a governmental housing subsidy program including, but not
limited to, Section 8 federal housing assistance payments
(These) Guidelines
These Guidelines to the Inclusionary Zoning Regulations
HCD
The California Department of Housing and Community Development.
HOA
Homeowner's Association
Housing Agreement
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An Affordable Housing Agreement, an Affordable Housing Regulatory Agreement and Dec arati n
of Restrictive Covenants or a Secondary Unit Regulatory Agreement and Declaration of Restrictive
Covenants or other Agreement that relates to Housing that may be adopted from time to time by the
City.
Housing Expenses
Principal, interest, taxes, insurances and HOA dues.
HUD
The United States Department of Housing and Urban Development.
Immediate Family Member
A mother, father, brother, sister, child, grandparent or grandchild.
Inclusionary Obligation
The number of BMR Units a developer is required to construct (or pay fees in lieu thereo fl in a
Residential Development project to comply with the Inclusionary Zoning Regulations.
Inclusionary Zoning Regulations
Chapter 8.68 of the City of Dublin Municipal Code.
In-Lieu Fee
A fee paid by a developer in lieu of constructing BMR Units to satisfy up to 40% of its inclusionary
obligation. .
Legal Resident
A citizen or other national of the United States or a qualified alien as defined by the Federal Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 ("PRWORA").
Low Income
Total Household Income that is 50% to 80% of AMI, adjusted for actual household size.
Management Plan
A plan required for rental Residential Developments that contains the information set forth in Section
4.11.1 of these Guidelines.
Marketing Plan ~
A plan required for ownership Residential Developments that contains the information set forth in
Section 4.10.1 of these Guidelines.
Maximum Income
The maximum income for an income category (Very-Low, Low-, or Moderate-Income) determined
periodically by HCD based on AMI. See Section 5.4 of these Guidelines for Maximum Incomes.
Moderate Income
Total Household Income that is 80% to 120% of AMI, adjusted for actual household size.
Performance Deed of Trust
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A deed of trust recorded against a BMR Unit by the City which secures a BMR Owner's complia e
with the Resale Restriction Agreement and Option to Purchase.
Preference Points
Points assigned to persons employed within the City of Dublin, public service employees working
within the City of Dublin, Dublin residents, Seniors (62+), persons who are permanently disabled
(with written verification from a physician or show receipt of SSI or SSDI), persons who are
immediate family members of a Dublin resident, and persons who are required to relocate from a
Dublin residence due to demolition of the residence or conversion of the residence from a rental to an
ownership unit. Persons with Preference Points are given priority over other Qualified Households in
the rental or purchase of a BMR Unit.
Principal Residence
The place where a person resides on a substantially full-time basis during not less than ten (10)
months per year. Children attending college and not living at home as their principal residence may
not be counted as a household member.
Priority List
A list which ranks Qualified Households based on the number of Preference Points received.
Qualified Household
A qualified household is defined in terms of financial relationships and can include any group of
persons, so long as such persons, when viewed as a whole, satisfy the eligibility requirements for a
household.
For an ownership BMR Unit or for a rental BMR Unit, a"qualified household" means a household
that satisfies the requirements listed in Section 5 of these Guidelines.
Resale Restriction Agreement and Option to Purchase, also known as "Resale Restriction
Ag~eement"
An agreement between the City and a BMR Owner that is recorded against the BMR Unit and ,
among other restrictions, requires the unit to remain affordable to Low- or Moderate-Income
households usually for a period of 55 years or as outlined in the Housing Agreement, restricts the
resale price of the BMR Unit, requires the BMR Owner to notify the City upon refinancing, reselling
or changing the title of a BMR Unit, and provides the City with an option to purchase the BMR Unit
upon the occurrence of certain events.
Residential Development ~
This includes, without limitation, detached single-family dwellings, multiple-dwelling structures,
groups of dwellings, condominium or townhouse developments, condominium conversions,
cooperative developments, mixed use developments that include housing units; and residential land
subdivisions intended to be sold to the general public.
Secondary Unit
A legal secondary dwelling unit that has been approved by the City and that is reserved for
occupancy by Very Low-, Low- or Moderate-Income households at rents affardable to such
households.
Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants
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An agreement between the City and the owner of a Secondary Unit which is recorded against t e
property containing the Secondary Unit and requires, among other things, that the Secondary Unit be
reserved for occupancy by Very-Low, Low-, or Moderate-Income households at rents affordable to
such households for an amount of time specified in the Affordable Housing Agreement or Affordable
Housing Regulatory Agreement and Declaration of Restrictive Covenants.
Senior
A person 62 years of age or older for the purpose of qualifying for preference points
Special Assessment
A proportional fee charged to the BMR Owner by an HOA to cover the cost of physical
improvements to the entire building.
Total Household Income
All Gross Household Income and assets received (as calculated pursuant to Sections 5.4.2 and 5.4.3).
Very-Low Income
Total Household Income that is fifty percent (50%) or less of AMI, adjusted for actual household
size.
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3 REQUIREMEN.TS FOR DEVELOPERS
3.1 Overview of the Inclusionary Zoning Process
i~~ ~~
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Residential Developments consisting of 20 residential units or more must comply with the
Inclusionary Zoning Regulations (Section 8.68.030(A)). In general, the Regulations require that
12.5% of the units constructed in a Residential Development be reserved for occupancy by For-Sale
Units to Moderate-Income households and Low-income households or rented at prices affordable to,
Very-Low-, Low-, and Moderate-Income households. Such restricted units are referred to as BMR
Units. (Section 8.68.030.A)
While the Regulations require that 12.5% of the units in the Residential Development be BMR Units,
the Regulations permit the developer to meet 5% of this obligation by paying an In-Lieu Fee. Thus,
there is a"must-build" requirement of 7.5% of the units in the Residential Development, and the
obligation with respect to the remaining 5% of the units may be satisfied by the payment of an In-
Lieu Fee. BMR Units must remain affordable for a period of 55 years, through affordability
restrictions recorded against the property.
In addition, the Inclusionary Zoning Regulations require that BMR Units:
• Be constructed concurrently with the market-rate units in the Residential Development;
• Have a similar range of bedrooms to the market-rate units in the Residential Development;
• Not be distinguished by design or materials from the market-rate units in the Residential
Development; and
• Be reasonably dispersed throughout the Residential Development.
A developer may also satisfy its Inclusionary Obligation by dedicating land or constructing BMR
Units off-site if the City Council makes the required findings. See Section 8.68.040 of the
Inclusionary Zoning Regulations for alternate methods of complying with the requirements of the
Ordinance.
3.2 Determinin~ the Number and Size of Units Required
Prior to submitting an application to the City for a Residential Development that includes 20 or more
residential units, the developer should begin thinking about how to comply with the Inclusionary
Obligation. As part of the initial project review, Housing Staff is available to discuss with the
developer options for meeting tl~e.. Inclusionary Obligation. For example, if a developer intends to
build only the minimum number of BMR Units and to pay an In-Lieu Fee for the remaining units,
Housing Staff can, for planning purposes, provide the developer with the preliminary number of
BMR Units the developer would be required to build, the income levels and sizes of the required
BMR Units, and the a~nount of the In-Lieu Fee under the then-current fee schedule.
After a Residential Development application is submitted to the Community Development
Department for review, a Project Review Committee meeting is generally held. In this meeting City
Staff and interested agencies involved in the development process review the Residential
Development and give preliminary comments to the developer.
Prior to or following the Project Review Committee (PRC) meeting, Housing Staff will send a letter
to the developer indicating the developer's Inclusionary Obligation for the Residential Development
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as preliminarily proposed. A copy of this letter will also be directed to the City s Pro~ect er
responsible for the Residential Development. The purpose of this letter is to provide the developer
information on the Inclusionary Obligation as early as possible in the development process. The City
recognizes that the Residential Development is likely to evolve over time and that the Residential
Development will likely change prior to obtaining City entitlements. However, this information is
provided early in the process as a service to the developer for planning purposes.
The developer's final Inclusionary Obligation will be formalized in an Affordable Housing
Agreement between the City and the developer, prior to the recordation of the first final map or the
issuance of the first building permit, whichever occurs first, for the development.
3.3 How to Calculate the Inclusionarv Obli~ation
Developers of projects subject to Section 8.68.030.A of the Inclusionary Zoning Regulations shall
construct 12.5% of the total number of dwelling units within the development as affordable units,
unless subject to an exception approved by the City Council. In making this calculation, any decimal
fraction less than or equal to 0.50 is disregarded, and a decimal fraction greater than 0.50 is construed
as a unit. Two examples of how the Inclusionary Obligation for a particular development is
calculated are shown in Figure 1.
FIGURE 1
Example 1: The developer proposes a 224-unit subdivision. 12.5% percent of 224 is 28.
The Inclusionary Obligation is 28 units of the origina1224 units.
Example 2: The developer proposes a 316-unit subdivision. 12.5% percent of 316 is 39.5.
Rounding the decimal fraction down, the Inclusionary Obligation is 39 units of the original
316 units.
3.4 How to Calculate How Manv Units Must Be Constructed and How Manv Units of the
Obli~ation Mav be Satisfied with an In-Lieu Fee
The Ordinance permits a Developer to pay an In-Lieu Fee for up to 5% of its Inclusionary Obligation.
When the calculation of the fee results in a decimal fraction, the rounding rules contained in Section
8.68.030A are used.
Using the same examples from Figure l, Figure 2 illustrates the calculation of the number of BMR
Units that may be subject to the In-Lieu Fee.
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FIGURE 2
Example 1: The developer proposes a 224-unit subdivision, for which the Inclusionary
Obligation is 28 units of the 224 units. 40% of 28 units =11.2 units. Disregarding the
fraction, the developer may pay an In-Lieu Fee for the remaining 11 units, and the
developer's "must-build" obligation would be 17 units. 11 + 17 = 28 units.
Example 2: The developer proposes a 316-unit subdivision, for which the Inclusionary
Obligation is 39 units of the 316 units. 40% of 39 units = 15.6 units. This number is
rounded up to 16 and In-Lieu Fees may be paid for this amount, instead of providing units.
The "must-build" obligation would be 23 units. 16 + 23 = 39 units.
3.5 How to Calculate the Amount of the In-Lieu Fee
The amount of the In-Lieu Fee is set by Resolution of the City Council. Resolution No. 56-02
provides that the In-Lieu Fee per BMR Unit is adjusted annually on July 1 to reflect the greater of the
percentage change either in a) the Bay Area Urban Consumer Price Index (CPI) as of February of
each year, or b) the United States Department of Housing and Urban Development (HUD) Fair
Market Rent limits for the Oakland Primary Metropolitan Statistical Area (PMSA) that are in effect at
the time. The fee as of July 1, 2008 is $ 91,916 per BMR Unit.
THE ENTIlZE IN-LIEU FEE AMOUNT FOR THE RESIDENTIAL DEVELOPMENT IS DUE
AND PAYABLE UPON ISSUANCE OF THE FIRST BUILDING PERMIT FOR THE
RESIDENTIAL DEVELOPMENT.
Using the examples from Figures 1 and 2, Figure 3 illustrates how to calculate the amount of the In-
Lieu Fee.
FIGURE 3
Example 1: The developer proposes a 224-unit subdivision. In-Lieu Fees may be paid for 11
units. 11 X$91,916 is $1,011,076 which is the amount of the In-Lieu Fee for the Residential
Development. This entire amount would be due prior to issuance of first building permit.
Example 2: The developer proposes a 316-unit subdivision. In-Lieu Fees may be paid for 16
units. 16 X$91,916 =$1,4?0~656 which is the amount of the In-Lieu Fee for the Residential
Development. This entire amount would be due prior to issuance of first building permit.
3.6 How to Calculate How Many BMR Units Must Be Provided for Each Income Level
Pursuant to Section 8.68.030.B of the Inclusionary Zoning Ordinance, the BMR Units included in
each Residential Development project must be allocated to households in the following manner:
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- tal nit . ~
For Sale Units : Ren U s .
^ 60% to moderate-income households ^ 50% to moderate-income households
^ 40% to low-income households ^ 20% for low-income households
^ 30% for very-low income households
Once again, if the allocation calculations results in a decimal fraction, the rounding rules contained in
Section 8.68.030.A apply. In addition, if the allocation calculation results in fewer units than would
otherwise be required; one additional unit should be allocated to the lowest income level with the
decimal fraction closest to 0.50. (Section 8.68.030.B)
Figure 4 illustrates how to calculate the number of units that must be provided at each income level
and how the rounding requirement is implemented:
FIGURE 4
FOR RENTAL BELOW MARI~T RATE UNIT
The Residential Development includes 200 units. The Inclusionary
Obligation is 25 units. The developer chooses to pay an In-Lieu Fee for
40% of the units, which equals 10 units. The developer's must-build
requirement (7.5%) is 15 units.
• 50% of those 15 units would need to be restricted for Moderate-
Income households, 50% of 15 = 7.5
• 20% of those 15 units would need to be restricted for Low-Income
households, 20% of 15 = 3
• 30% of those 15 units would need to be restricted for Very Low-
Income households, 30% of 15 = 4.5
7.5+3+4.5=15
Since two of these numbers are fractions at exactly .5, the City of Dublin
would require that the unit be provided in the lower income category.
In this example the income- unit mix would be:
• 7 Moderate-Income units
• 3 Low-Inco~E units
• 5 Very Low-Income units
3.7 How to Determine the Size of BMR Units
The Ordinance requires that the same proportion of bedrooms be reflected in the BMR Units as are in
the market rate units. Once again, the rounding conventions in Section 8.68.030.A are used, if the
allocations result in decimal fractions.
Figure 5 illustrates how to determine the number of BMR Units that must be provided at each unit
size:
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FIGURE 5
To determine bedroom reqa~irement:
The developer proposes a 200-unit rental Residential Development and is paying In-
Lieu Fees for 40% of the BMR Units. The must build obligation is 15 units.
The Residential Development includes:
• 50 one-bedroom units (25 % of total)
• 100 two-bedroom units (50% of total)
• 50 three-bedroom units (25% of total)
Therefore:
• 25% of the BMR Units are to be one-bedrooms
• 50% of the BMR Units are to be two-bedrooms
• 25% of the BMR Units are to be three-bedrooms
To determine bedroom requirement per income category:
If 5 of the units are Very Low-Income, using the percentages above the requirement
for bedrooms are: •
• 25% of 5= 1.25 one-bedroom units
• 50% of 5= Z.5 two-bedroom units
• 25% of 5= 1.25 three-bedroom units
Therefore, the development would be required to provide:
• 1 one-bedroom unit
• 3 two bedroom units
• 1 three bedroom unit
The same calculation is performed to determine the bedroom sizes of the Low-
Income and Moderate-Income units.
3.8 How to Determine the Location of BMR Units Within the Development
The Inclusionary Zoning Ordinance requires that BMR Units be reasonably dispersed throughout the
Residential Development. The purpose of this requirement is to avoid concentration of the BMR
Units in a particular location within a development, effectively segregating them from the rest of the
Residential Development. There are many ways in which to implement this requirement and
consultation with Community Development Department Staff is recommended prior to developing
the final site plan. Ultimately, the Planning Commission or City Council will determine, based on
Staff recommendation, if this requirement has been met.
Per section 8.68.040(E) of the Inclusionary Zoning Regulations, the City Council, at its discretion
may waive, wholly or partially, the requirements of this ordinance and approve alternate methods of
compliance with this Chapter if the developer demonstrates, and the City Council finds, that such
alternate methods meet the purposes of this Chapter.
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39 Housing Agreements
Section 8.68.50 of the Inclusioriary Zoning Regulations requires the developer to execute one of the
following Housing Agreements with the City:
Affordable Housing Agreement
An a~reement between the developer and the Citv for a Residential Development project that
includes ownership BMR units (and potentially Secondary Units). Such Agreements are
recorded against the property on which the Residential Development is being constructed; set
forth the developer's Inclusionary Obligation and the method by which the developer will
comply with the requirements of the Inclusionary Zoning Ordinance; and require, among
other things, that the developer require purchasers of BMR Units to execute a Resale
Restriction Agreement and Option to Purchase with the City.
Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants
An agreement between the developer ancl the City for a Residential Development project that
includes rental BMR units. Such agreements are recorded against the property containing the
BMR Units; set forth the developer's Inclusionary Obligation and the method by which the
developer will comply with the requirements of the Inclusionary Zoning Ordinance; and
requires, among other things, that the BMR Units are reserved for occupancy by Very-Low,
Low-, and/or Moderate-Income households at rents affordable to such households for a period
of not less than 55 years.
Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants
This Agreement is similar to a Resale Restriction Agreement and is executed after an
Affordable Housing Agreement or Affordable Housing Regulatory Agreement and
Declaration of Restrictive Covenants. This agreement is between the City and the owner of a
Secondary Unit and is recorded against the property containing the Secondary Unit and
requires, among other things, that the Secondary Unit be reserved for occupancy by Very-
Low, Low-, and Moderate-Income households at rents affordable to such households for the
period of time set forth in the agreement. -
The Housing Agreements set forth the legal requirements for the Residential Development project for
compliance with the Inclusionary Zoning Ordinance. The Housing Agreements are recorded against
the property on which the Residential Development is being constructed, run with the land, and
survive transfer or sale of the lanc~. The term of the Affordable Housing Regulatory Agreements is a
period of 55 years. The Affordable Housing Agreement is effective until all of the In-Lieu Fees are
paid; the BMR units are constructed, sold, and subject to a Resale Restriction Agreement. If a
developer executes a Housing Agreement for a particular Residential Development project but the
project is not built and new entitlements are sought for the applicable property, the developer must
execute a new Housing Agreement, which would replace the existing Agreement.
Among other things, the Housing Agreements must contain the following information:
1. A description of how the developer will comply with its Inclusionary Obligation (whether
through unit construction and/or payment of an In-Lieu Fee);
2. Whether the BMR Units will be ownership or rental units;
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3. The number of BMR Units the developer will construct for each income category;
4. The size of the BMR Units the developer must construct for each income category;
5. Depending on the nature of the development, the timing of construction of the units to
. ensure that the BMR Units are constructed concurrently with the market-rate units;
6. If the development proposes ownership BMR Units, a requirement that the developer
prepares and obtains City approval of a Marketing Plan, prior to issuance of any building
permits in the Residential Development, indicating how the developer plans to sell the
BMR Units. This requirement is discussed in additional detail in Section 4.10.1 below;
7. If the development proposes ownership BMR Units, there is a requirement that the
developer require the purchasers of such units to execute a Resale Restriction Agreement
or a Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants and
a Performance Deed of Trust. A sample Resale Restriction Agreement is attached as
Exhibit No. 1. A sample Performance Deed of Trust is attached as Exhibit No. 2. A
sample Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants
is attached as Exhibit No. 3.
8. If the development proposes rental BMR Units, a requirement that the developer provide a
Management Plan and Marketing Plan as described in Section 4.11.1 to the City for its
approval and prepare the Annual Report described in Section 4.11.4.
3.10 Procedures for Initial Sale of BMR Units
3.10.1 The Marketing Plan for Ownership Units
Prior to the issuance of building permits for any ownership BMR Units, the developer shall submit a
Marketing Plan to the City for approval. The Marketing Plan must contain the following:
A one-page narrative summary suitable for advertising the availability of the BMR Units
on the City web page and other locations, including a description of the total number of
BMR Units and market-rate units in the Residential Development; the HOA dues for each
BMR Unit; the amenities included in the unit, and a telephone number for interested
applicants to call for additional information;
2. An explanation of the application process and the deadline for submitting applications.
If the development is phased, the developer must establish deadlines for each phase of
the development that includes BMR Units;
3. An explanation of the selection process, including an explanation of the Preference
Point system;
4. Timelines for buyer selection. If the development is a phased project, information
must be provided on the number of phases and the timelines for those phases;
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Timeline for the developer s sales staff to meet with the City s Housing Staff to
receive training on the sale selection and application process;
6. Marketing materials;
7. An application packet which includes:
• Application for Inclusionary Unit
~ Disclaimer for BMR Application Qualification Questionnaire
• Credit Authorization and Release
• Signed Sample Resale D.isclosure Statement
• Required Supporting Documentation Submitted
• Highlights of Dublin Resale Restriction Agreement
• Written confirmation of pre-approval for the home which must be validated
through Developer's preferred lender.
See Exhibit No. 3 for a sample ownership BMR Unit application packet.
No marketing of the BMR Units shall begin until the developer has received written approval of the
Marketing Plan from the City and the developer's sales staff has met with the Housing Staff for
training so that the sales staff understands and can explain the application process.
3.10.2 Application and Screenin~ Process
The developer must require each applicant to complete the application that has been approved by the
City as part of the Marketing Plan and to provide the required supporting documentation by the
deadline set forth in the Marketing Plan. The developer should plan accordingly to assure that
applicants are not qualified more than 6 months before the move-in date of the unit.
Application packets should include at a minimum:
• Complete application;
• Income documentation set forth in Section 5.4.1;
• Reservation instrument showing the address, number of bedrooms and sales price;
• A loan pre-approval letter with Good Faith Estimate and Truth in Lending Statement;
• A signed Disclosure Statement (Exhibit F of the Resale Restriction Agreement);
• A signed credit report authorization and release or other consent and verification letter;
• Copy of tri-merge Credit Report; and
• Evidence of 3% available funds to be used as a down payment.
The developer must comply with the following process to sell the BMR Units:
Developer collects applications for the period of time set forth in the approved Marketing
Plan.
2. Developer screens applicants to determine whether they satisfy the requirements for
Qualified Households set forth in Section 5.1.
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3. Developer sorts and ranks the Qualified Households based on the Preference Points and
creates a Priority List with those applicants with the most Preference Points at the top
followed by all other applicants in descending order based on the number of Preference
Points received. If more than one qualified applicant receives the same number of
Preference Points or if some applicants receive no Preference Points, the developer shall
rank the Qualified Households based on other objective criteria outlined in its approved
Marketing Plan. For example, the developer may date stamp all applications and, in the
case of a tie, rank the Qualified Households based on who applied first, or the developer
may choose to hold a lottery to break ties. However, whichever criteria the developer uses
must be set forth in its approved Marketing Plan.
4. Developer completes the Priority List within 30 days of the application deadline and
submits the list to the City.
5. Developer reviews and sorts the application packets in order of the Priority List and
submits complete application packets of Qualified Households, together with supporting
documentation, to the City within forty-five (45) days prior to close of escrow.
6. The City reviews the application packets to verify the applicants are Qualified
Households. The City will make every effort to review the applications within 7 working
days of receiving a complete app~ication packet.
Once the City has verified that the applicant is a Qualified Household, the City will send
the developer a conditional approval letter (or similar document) indicating the applicant's
name, income level and the maximum sale price of the unit (see Section 4.10.3 for more
detail on establishing the sale price) and any requirements that must be met before moving
forward with the applicant. Once all the required information is received, the City will
then send a conditional qualification letter (or similar document) which is valid for 6
months from the date of the letter. A copy of the application packet, along with income
verification for the household will be retained by the City as proof of the buyer's
qualification to purchase the BMR Unit. If the City determines that the applicant is not a
Qualified Household, the City will send the developer an ineligibility letter. An applicant
who has been deemed to be ineligible may not reapply for a, period of one year from the
date of the ineligibility letter.
The developer bears the responsibilities of ensuring applicants are not qualified more than
6 months before a unit becomes available and closes escrow. Applicants must be re-
qualified if occupancy is to take place more than 6 months from the date of the conditional
qualification letter. Applicants may or may not qualify to purchase a BMR Unit upon re-
qualification. In addition, the price of the BMR Unit may change upon re-qualification.
If, upon re-qualification, an applicant does not qualify, it is the responsibility of the
developer to notify the applicant.
Conditional approvals are based on information which was supplied to the City by the
developer, or their agent. If there are any material changes to the financial conditions,
marital status, employment status ar other facts or information that is made known to the
City prior to loan closing, the developer, their agent or the lender must notify the City of
Dublin in writing of these changes. The City expressly reserves the right to re-verify the
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applicant(s) and may void or cancel this conditional approval or other approval at an .
time prior to the loan closing if these material changes affect the qualification status of the
buyer(s).
Qualification determinations may be appealed by the Developer to the Community
Development Director.
THE SALE CANNOT PROCEED UNTIL ALL REQUIRED DOCUMENTS ARE
PROVIDED TO THE CITY AND THE DEVELOPER RECEIVES A WRITTEN
QUALIFICATION LETTER FROM THE CITY.
7. The developer will offer .the unit to Qualified Households based on the Priority List,
offering the BMR Unit first to those applicants with the most Preference Points, then in
descending order.
8. The developer and applicant will enter into a purchasing agreement.
9. The developer will require the selected buyer to execute a Resale Restriction Agreement
and Option to Purchase and a Performance Deed of Trust.
10. The developer will provide the City with the name and address of the title company
closing the sale and the name of the escrow officer.
11. Prior to the City sending escrow instructions the City will review all final loan documents
for compliance to the Section 6.1 Financing Requirements.
12. The City will prepare and send escrow instructions to the Title Company.
13. The Title Company will submit the following documents to the City:
• Completed and Signed Residential Loan Application;
• Completed Truth in Lending Statement, Good Faith Estimate, and a estimated
HLTD-1 statement from the Title Company;
• Completed, executed, and notarized Resale Restriction Agreement and Option to
Purchase; and
• Completed, executed, and notarized Performance Deed of Trust.
14. The City will review the above documents for completeness, prepare the Request for
Notice of Default for each of the buyer's loans, secure the signature of the City Manager
or hislher designee on the necessary documents, and return the loan documents to the
lender.
15. The City will send the original Resale Restriction Agreement, Performance Deed of Trust
and Request(s) for Notice of Default to the escrow officer for recording.
If at any time during the application, screening, or sale process, an applicant requires translation
services, the developer shall provide such services at the developer's sole cost and expense.
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3.10.3 Sale price of BMR Units ~~ ~ ~
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Pursuant to Section 8.68.020A.2 of the Inclusionary Zoning Ordinance, Owner-occupied units are
deemed affordable units if the sales price results in annual housing expenses that do not exceed 35%
of the maximum income level for low-, and moderate-income households, adjusted for household
size.
Below Market Rate For-Sale units are priced based on a designated income point that is affordable to
a greater range of households in each applicable income category.
• For Low-Income Households (household income of between 50% and 80% of Area
Median Income), the sales price would be set at a level so that total monthly housing
payment would not exceed thirty-five percent (35%) of one-twelfth of seventy percent
(70%) of the Area Median Income for Alameda County.
• For Moderate-Income Households (household income of up to 120% of Area Median
Income), the sales price would be set at a level so that total monthly housing payment
would not exceed thirty-five percent (35%) of one-twelfth of one hundred and ten percent
(110%) of the Area Median Income.
In addition, the fixed sales price approach would be based upon the number of bedrooms in the home
instead of the number of persons in the particular household. For example, if a developer is selling a
two-bedroom unit, the sales price would be calculated under the "number of bedrooms, plus one" rule
for the assumed household size. In each case the sales price would be set based upon the following
assumed household sizes for the following sizes of residential units:
No. of Bedrooms Assumed Household Size
1 2
2 3
3 4
4 5
The assumptions below are used to calculate the maximum sale price for BMR Units. However, a
Qualified Household's actual Housing Expenses may differ from these assumptions.
• Interest - Prevailing rate (fixed rate for 30 years), secondary market fixed rate, Fannie
Mae or Freddie Mac, _as determined by staff, on the date that is 30 days prior to the
applicable application deadline.
• Mortgage Term - fixed rate for 30-years.
• Tczxes - 1.25% of the estimated sale price of the unit.
• Insurance - homeowner's insurance.
o Homeowner's Insurance - The cost of homeowner's insurance may be calculated
based on an estimate provided by the developer. (If the homeowner's insurance is
covered by an HOA structure, homeowner's insurance need not be included, but it
must be documented that the HOA will provide adequate insurance.)
• HOA dues, if any.
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Figure 6 shows how the sale price is calculated:
~5 ~ ~ ~~
~
FIGURE 6
TABULATION OF MAXIMUM SALE PRICE FOR A
MODERATE BMR UNITS
Household size
Max. allowable annual income
Annual household income
Gross monthly income (line 1 divided by 12)
% paid toward housing
Gross monthly housing experise (line 2 multiplied by 35%)
Less Interior Homeowner Insurance
Less Property Taxes (1.25% of line 6)
Less Homeowners Association Dues (HOA)
Net monthly housing expense
MAXIMUM MONTHLY MORTGAGE PAYMENT
Interest Rate
Term
Maximum Loan
~~~~r ~1~a~ ~~~r~
f~nly
5
102,300.00
, .... :..
, ; 102,3Q0.0.0
8, 525.00
35%
Enter
Amounts
2,983.75
50.00 2,933.75
447.02 2,486.73
117 2,369.73
2,369.73
2,369.73
2,369.73
5.25%
30
429,140.55
3.11 Procedures for Initial Rental of BMR Units
After the Housing Agreement is executed, and prior to the issuance of any building permits, the
developer must prepare and submit a Management Plan to the City of Dublin Housing Division for
approval. After the Management Plan has been approved by the City, and prior to the rental of any
units, the developer must screen, rank and qualify eligible tenants and send a priority list to the City
of Dublin's Housing Division. This should happen within 30 days, if possible. In addition, the rent
for a BMR Unit must be calculated pursuant to Section 4.11.3.
3.11.1 The Management Plan for Rental BMR Units
Prior to the issuance of building permits, the developer must submit a Management Plan to the City
for its approval. The Management Plan must contain the following information:
• a Plan outlining how the management firm will market and maintain the rental BMR
Units,
• how the firm will maintain a waiting list for the BMR Units;
• how the management firm will verify applicants' Total Household Income, both initially
and annually;
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. i~ ~
. ~~~ ~ tt~
• information on the units to be made available for the City to use on the City website;
• a contact telephone number;
• and the names of those individuals responsible for contact and communication with the
City.
3.11.2 Application and Screening Process
The management firm (which could be the owner or builder) is the entity that will be responsible for
occupant selection and documentation of rental BMR Units. The management firm's leasing staff
should be trained so the staff understands and can explain the rental application process to applicants.
The management firm must require each applicant to complete and return to the management
company a Rental BMR Unit Application packet. A sample Rental BMR Unit Application packet is
attached as an Exhibit to these Guidelines.
To lease the BMR Units the developer/management company must do the following:
1. Collect applications for a given time period.
2. Screen applicants to determine whether they satisfy the requirements for Qualified
Households set forth in Section 5.2.
3. Sort and rank the applications of Qualified Households based on the Preference Points and
produce a Priority List with those applicants with the most Preference Points at the top
followed by all other applicants in descending order based on number of Preference Points
received. If more than one applicant receives the same number of Preference Poirits or if
some applicants receive no points the developer shall use other objective criteria set forth
in the approved Management Plan to select occupants. For example, the management firm
may date stamp all applicant applications and, in the event of a tie, offer the unit to that
applicant that applied first, or the management firm may choose to hold a lottery to break
ties. However, whichever criteria the management firm uses must be set forth in the
approved Management Plan.
4. The Priority List must be completed within 30 days of the application deadline and
submitted to the City for approval;
5. Offer the BMR Units to applicants based on the Priority List, offering first to those
applicants with the most points, then in descending order;
6. Execute a Rental Agreement with the tenant that notifies the tenant that he or she may not
sublease the unit and that annual certification is required.
7. Maintain applications with income verification and re-certification for City to review at
annual onsite monitoring.
Qualification determinations rriay be appealed by the Developer to the Community Development
Director.
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3.11.3 Calculating Maximum Rent
l~~ ~~~
~
The Inclusionary Zoning Regulations state that maximum rents cannot exceed 30% of the Maximum
Income in a given income category. Affordable rents are calculation formula is listed below for Very
Low, Low and Moderate Income Households:
• Very Low Income Tenants, monthly rent not in excess of thirty percent (30%) of one-
twelfth of fifty percent (50%) of the annual Median Income for the Area;
• Low Income Tenants, monthly rent not in excess of thirty percent (30%) of one-twelfth of
sixty percent (60%) of the annual Median Income for the Area; and
• Moderate Income Tenants, monthly rent not in excess of thirty percent (30%) of one-
twelfth of one-hundred and ten percent (110%) of the annual Median Income for the Area,
with in each case based upon the following assumed household sizes for the following
sizes of residential units in the Project.
If tenant is required to pay for utilities, the maximum rent must be reduced to account for the cost of
such utilities (a utility allowance). Utilities include gas, electric, water, and trash disposal. In
addition, if tenants are required to provide their own stove, refrigerator, or washer and dryer, these
expenses are considered utilities, and the maximum rent is further reduced. If the tenant is
responsible for any of the above, the maximum rent must be reduced by the amounts listed in the
Utility Allowance Sheet* (See Exhibit No. 8).
~ i~~ustrates tne caicuianon or maximum rent:
FIGURE 7
~ ._.. ......_...~
2008 Rent limrts _... ..
~ .. _.._.._._._ . .. ...: . _
~ . . . _._ _
_~ ~
._ .. _. _ .. . _ ( _ .. . . ._._ .~ _
~ .
. .. _..._.. . _ ~~~__ ~. _ _.. ._ . . .
Bedroom Size
;Assumptions _ ;
0 bdrm - 1 person 1 bdrm = 2 eo le
p p
_. .
~
,,
2 bdrm 3 people ~
..
3 bdrm 4 people
_
50%
, £
60% ~ 110% ~ .
_ _.._.~_......
_.
._ _
.....
0 . ...._. ___ _ .
.
$754 _____ . .,_,.__.
$905 ._~..~. ___. .~. . ..._.. ._._
$1,658 i
~ __ ..._....
_
= ~
1 $861 S $1 034 $1 895 ~ _
.
.__
2 _~.~_ ... ..,
$969 ~.._. _ __.____.
$1,163
~ .~. ..~ ._ ..._~
$2,131
~ ~ . ...__.~.~._._.
~ . . .._..,. _.....
...
..
_
_ .
. __
3
$1 076
f$1 292
_._. .._.. _ . _
.. _. ~ .
$2 368 ~
._ _...._ . _..
. .
.
_...
.
~....
.._ _.. _
_.,_..
4 $1 163 ~ $1 395 . ._
$2 558 ~ .
~
If a tenants/households income increases to where the tenant/household is no longer income or
household size qualified for the BMR rental unit, the tenant/household will not be required to move;
however, the household will no 1Qnger be considered qualified for a BMR unit and the rent may be
increased to market rate rent. The developer/landlord will then offer the next available unit with the
same specifications (i.e. bathrooms and bedrooms) as a BMR rent restricted unit.
311.4 Annual Report
Pursuant to Section 8.68.OSO.B of the Inclusionary Zoning Regulations, the management entity for
the development must provide the City an annual report (See Exhibit No 9). The annual report must
include the following information:
+ The Utility Allowances are established by the Housing Authority of Alameda County and revised periodically. The
most current Utility allowances for Alameda County may be accessed at the following web site: http//www.haca.net., then
click on statistics.
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City of Dublin and PCCP CS II Tralee Village, LLC
~ Total Household Income for the prior year far each BMR Unit; ~ ~' ~~ ~~
• Number of people residing in each BMR Unit;
• Monthly rents charged and proposed to be charged for each BMR Unit; and
• Vacancy of BMR Units during the previous year.
The management firm must submit the report annually by October 31 st. The City of Dublin Housing
Staff will send a reminder letter to the management firm, with a copy of the Annual Report form for
completion and certification at least three months prior to the anniversary date. This form must be
completed and returned to the City by the anniversary date.
3.11.5 Annual Monitorin~v City
The City of Dublin may perform an annual site visit to monitor the records of all BMR Units. The
City will provide at least two-week's notice to the developer andlor management firm as to the date
of the site visit. Files for all BMR Units must be made available for review at the request of the City.
The purpose of the monitoring is to ensure compliance with the City's Inclusionary Zoning
Ordinance and these Guidelines.
If a Residential Development is financed through a government program that has stricter occupant
selection or occupant documentation requirements than the City, the City may elect to rely on those
requirements and associated documentation and not require additional documentation. The City will
require tenant income verification and restriction of the BMR units for 55 years; however, the
management firm may send to the City copies of the documentation that is required and produced for
other monitoring agencies.
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City of Dubiin and PCCP CS II Tralee Village, LLC
l
4 BUYER AND RENTER QUALIFICATIONS FOR BMR UNITS ~. D~ ~~~
4.1 Buyer Qualifications
A household is qualified to purchase a BMR Unit if it satisfies the following requirements:
1. The household's Total Household Income does not exceed the applicable Maximum
Income set forth in Section 5.4;
2. The household will occupy the unit as its Principal Residence within 30 days of the close
of escrow on the unit;
3. The household is of a size meeting the household size criteria set forth in Section 5.3;
4. All title holders of the property must take an 8-hour Homebuyer Education workshop and
receive a certificate of completion. Certificate of Completion must be dated within 6
months of the date of application;
5. All applicants have a minimum FICO credit score of 620 (See Section 5.5);
6. The City will require all household members to be either a citizen or national of the
United States or a qualified aliens defined by the federal Personal Responsibility and
Work Opportunity Reconciliation Act of 1996(PRWORA);
7. All members of the household are either:
a. persons who hold title to the BMR Unit„ appear on the mortgage, and have
executed a Resale Restriction Agreement and Performance Deed of Trust for the
unit; or
b. persons who are claimed as a dependent on the tax returns of a household member
who satisfies the requirements in subsection (a) above; and
8. All members of the household must meet the definition of a qualified homebuyer.
Qualified Households with Preference Points will receive priority over other Qual'ified Households.
For information on the application and screening process, see Section 4.10.2.
Once the City has verified that the applicant is a Qualified Household, the City will send the
developer a conditional approval letter (or similar document) indicating the applicant's name, income
level and the maximum sale price of the unit (see Section 4.10.3 for more detail on establishing the
sale price) and any requirements that must be met before moving forward with the applicant. Once
all the required information is received, the City will then send a conditional qualification letter (or
similar document) which is valid for 6 months from the date of the letter. A copy of the application
packet, along with income verification
Applicants who are determined ineligible will receive an ineligibility letter. Ineligible applicants may
not reapply to purchase any BMR Unit for a period of one year from the date of the City's
ineligibility letter.
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ualification determinations ma be a ealed b the Develo er to the Communit Dev o ment ~~
Q Y PP Y P Y p
Director.
4.2 Renter Qualifications
A household is qualified to rent a BMR Unit if it satisfies the following requirements:
1. The household's Total Household Income does not exceed the applicable Maximum
Income (See Section 5.4);
2. All members of the household are Legal Residents;
3. The household will occupy the unit as its Principal Residence within 30 days of executing
the lease; and
4. The household is of a size meeting the household size criteria set forth in Section 5.3).
5. The names of all non-dependent household members must appear on the lease for the
BMR Unit
6. No member of the Qualifying Household must own any interest in any real property,
including but not limited to, any dwelling unit, commercial real estate, or land.
Qualified Households with Preference Points will receive priority over other Qualified Households.
For information on the application and screening process, see Section 4.11.2.
Qualification determinations may be appealed by the Developer to the Community Development
Director. .
4.3 Household Size
The size of the household is determined by the number of people livin~ in a household at the time of
application. In the case of a pregnant person, the baby may not be included as a member of the
household until the baby is born.
To qualify for a BMR Unit, the size of a household must be compatible with the size of the unit being
rented or purchased.
The household size for each BMR Unit may not exceed two people for each bedroom and may not be
less than one person per bedroom, unless otherwise permitted by special financing sources. Consult
with the City of Dublin for further clarification. The chart below contains the household size
permitted for each BMR Unit based on the number of bedrooms:
Studio
One-bedroom units
Two-bedroom units
Three-bedroom units
Four-bedroom units
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City of Dublin and PCCP CS II Tralee Village, LLC
1-2 people households
1-2 people households
2-4 people households
3-6 people households
4-8 people households
Page D-28
4.4 Total Household Income
i ~
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To be eligible for a BMR Unit, the applicant's Total Household Income must not exceed the
applicable Maximum Income. Total Household Income means the household's Gross Household
Income (see Section 5.4.1 below) plus assets calculated pursuant to Section 5.4.3. Maximum Income
is determined periodically by HCD based on AMI. Below are the Maximum Incomes for Alameda
County for 2008.
Number of Persons in Household
Income Category 1 2 3 4 5 6 7 8
Very Low $ 30,150 $ 34,450 $ 38,750 $ 43,050 $ 46,500 $ 49,950 $ 53,400 $ 56,850
Low ~ 46,350 $ 53,000 $ 59,600 $ 66,250 $ 71,550 $ 76,850 $ 82,1.50 $ 87,450
Moderate $ 72,300 $ 82,600 $ 93,000 $ 103,300 $ 111,600 $ 119,800 ~ 128,100 $ 136,400
4.4.1 Gross Household Income
Gross Household Income means all income from all adult household members (18 years of age and
older) derived from all sources as provided in the Internal Revenue Code (Title 26, Subtitle A,
Chapter 1, Subchapter B, Parf I, Section 61), whether or not such income is exempt from Federal
income tax. Such income includes, but is not limited to, the following:
• Compensation received from an employer
• Compensation includes, but is not limited to salary, overtime pay, and other pay
~ Other pay can include, but is not limited to compensation for special working conditions
or one time pay-out of unused vacation and sick leave.
• Alimony, spousal and child support
• Cash
• Pensions, if at an age where pension is being received as income
• Public benefits including, but not limited to, CalWorks, SSI, and disability income
• All interest, dividends, and royalties
• Income derived from private businesses
• Rentallncome
• Income from pensions
• Compensation for services rendered including fees, fringe benefits, commissions, tips, and
bonuses
~ Stipend received for participation in a.mentor, learning or education opportunity
• Gains from dealings in private and/or commercial property
• Gambling Winnings
• Annuities, life insurance, and endowment contracts
• Income from discharge of indebtedness
• Gross partnership contributions or distributions
• Income from an interest in an estate or trust
Exceptions:
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1 Gross Household Income d I~~~ ~
) oes not mclude income household earned by a household member o~ f~~
is between the ages of 18-26 and meets both of the following criteria:
• Is claimed as a dependent of a household member on such member's federal income
taxes; and
• Is a full time student (12+ units - school transcript must be provided)
2) Gross Household Income does not include payments to a household member from a governmental
fund Income if all of the following requirements are satisfied:
• The payments are based on the recipient's or the recipient's family's financial need;
• The payments do not represent compensation for services rendered; and
• The payments are part of a governmental housing`subsidy program including, but not
limited to, so-called Section 8 federal housing assistance payments.
For purposes of determining Gross Household Income, each person, 18 years of age or older, must
present the following:
• a complete set of Federal and State Income Tax Returns far the past three years, including
all schedules (signed & dated) and W-2 forms; (in the case where. taxes have not been
filed for any of the past three years, a letter of verification of non-filing from the Internal
Revenue Service is required);
• four most recent and consecutive pay stubs; and
• three recent and consecutive statements for all financial accounts, including but not
limited to, savings accounts, checking accounts, retirement accounts, 401(K) accounts,
stock accounts and another accounts held in the applicant(s) name(s), whether held
individually or together.
If a household member is self-employed, in addition to the information above, the member must
submit profit and loss statements for the past 3 years (if applicable), and a current profit and loss
statement for the year.
4.4.2 Income Calculation
a. Wage and Salary
If an applicant is a full time employee (usually 30 to 40 hours) or an employee with consistent
regular hours or income, or income with overtime or adjustments as a regular part of their job,
one of the following formulas listed below in Section "a" will be used to determine the
applicant's salary. Bonuses and commissions may be calculated into the annual income
calculation. In the case of unclear income or income that is somewhat difficult to calculate,
please contact the City of Dublin Housing Division. The City of Dublin will make the final
determination which Income Calculation to use.
Monthly income x 12 months = annual income
Twice monthly x 24 = annual income
Bi-weekly income x 26 = annual income
Weekly income x 52 = annual income
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(~
~~ ~~
Hourly income x 40 (or whatever normal hours per week may be) x 52 = annual income -~~
An employee who works consistent hours, with some overtime, shall be calculated using the
above formula.
b. Variable Income
For applicants who are part-time employees or employees with variable hours every pay
period (or variable hours less than 40 hours per week), inconsistent income or hours,
overtime, bonuses and commissions, etc. their annual salary shall be calculated using year-to-
date income, plus previous year income (from same income source or employer), divided by
the number of months reviewed (UP TO BUT NOT EXCEEDING 12 MONTHS) times 12 to
arrive at their annual income. If there is no previous year income from same employer, or the
job was started mid-year, use current income year to date using the calculation explained in
(a) above shall be used. If an applicant works consistently 40 hours per week and has
occasional or regular overtime, use the calculation listed in "a" above to calculate income.
c. Inconsistent or Temporary change in Income Due to a Temporary Circumstance
If an applicant has a temporary situation (7 months or less) that makes income calculation
difficult, a Verification of Employment may be used to calculate applicant's income based on
a normal annual time period. Or, the income may be calculated based on the person's hourly
rate times their normal working hours (as shown in item "a" above).
d. Self-Employed or Non-Corporation
A self-employed applicant is also considered to have variable income. Gross annual income
calculations will be based on the previous two year's net income shown on Schedule C of the
federal income tax returns, plus net income before taxes from the applicant's signed, year-to-
date Profit and Loss Statement, divided by the appropriate number of months (NOT TO
EXCEED 12 MONTHS) times 12 to arrive at the annual income.
4.4.3 Assets
An asset test will be applied to all applicants to determine whether they satisfy the income
requirements. If an applicant has assets that exceed $30,000, the following amounts will be added to
the applicant's Gross Household Income to determine the household's Total Household Income:
• Ten percent (10%) of all assets between $30,001 and $130,000
• Thirty percent (30%) of all assets over $130,000
The maximum assets allowed are $250,000. Households with assets in excess of $250,000 will be
disqualified. Assets include, but are not limited to, cash, all savings and checking accounts, stocks,
bonds, real estate, gifts and other sources of money. Pensions and federally approved retirement
savings accounts, such as IR.A's, Roth IRA's and 401K's, are excluded; however, retired applicants
who receive income from their retirement account must include such income as Gross Household
Income on their application. .
Figure 8 illustrates the calculation for determining income with assets:
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6~ ~`~
~__ ~ __~_ _ ~._..~~ ,,,~`
Example:
FIGURE 8
Household of 3 earns $50,000 a year and has $150,000 in total household assets
$150,000 (minus) $30,000 = $120,000 (which equals less than $130,000)
10% of $120,000 = $12,000
New total household income: $50,000 + $12,000 = $62,000
Household of 3 earns $50,000 a year and has $200,000 in total household assets
$200,000 (minus) $30,000 = $170,000 (which equals more than $130,000)
10% of $130,000 = $13,000
30% of balance of $40,000 = $12,000
New total household income: $50,000 + $13,000 + $12,000 = $75,000
4.5 Credit Score
For ownership BMR Units, a credit check will be conducted on all adults (other than dependents) in
the household. Applicants must have sufficient creditworthiness to qualify. Creditworthiness means
that:
i) All household individuals shall have a minimum of three years since Chapters 7 or 13
bankniptcy discharge date and/or foreclosure and evidence of reestablished credit is
required; and
ii) All persons appearing on the mortgage shall have a minimum FICO credit rating of 620
points from all three credit agencies. The representative credit score is the middle score of
the three sets of repository scores reported for each household member. If more than one
eligible applicant is applying, all middle scores will be considered and the lowest of the
rriiddle scores shall be the scare used in qualifying the household (must be 620 or higher).
Figure 9 shows an example of how to calculate a representative credit score:
FIGURE 9
Lowest Middle Credit Highest Credit
Credit Score Score Score
Borrower 678 706 709
Co-Borrower 690 697 703
The Lowest Middle Credit 697
Score of Borrowers
4.6 Alternative Credit Historv Parameters
Alternative Credit History is permitted with a minimum of four trade lines and twelve-month of
satisfactory payment record. One of the trade lines must be a twelve-month verification of rent
(VOI~) history. `
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4.7 Preference Points
i~l~
~~~
Applicants will be screened by the developer or their designated party, for initial eligibility based on
the requirements set forth in Section 5.1 (for ownership units) or Section 5.2 (for rental units).
Qualified Households will then be ranked based on the number of Preference Points they receive.
The Preference Point system set out in the Inclusionary Zoning Ordinance (see Table 1) provides
priority to those persons who live in Dublin, work in Dublin, are public-service employees in Dublin,
are seniors age 62 and older, are permanently disabled, are an immediate family member of a Dublin
resident, and/or are being required to relocate from their current Dublin residence due to demolition
of their dwelling or conversion of their dwelling from rental to ownership. Each household may only
claim Preference Points once for any given category. The Ordinance provides that even if two
persons in the household qualify for Preference Points for the same category, the points are only
awarded for one person. For example, if a husband and wife are both employed in Dublin, the couple
receives only 3 Preference Points for being employed in Dublin, or if the applicant lives with a family
member in Dublin, the applicant will only be entitled to a total of 3 Preference Points. Similarly, if
two seniors make up a household, they would be entitled to only 1 Preference Point.
Table 1: The Preference Point System
Priority
Employed in Dublin for at least 6 months*
Public service employee in Dublin**
Has resided in Dublin for at least one year
Seniors (62 and over)
Permanently disabled
Has an immediate family member who is a Dublin
resident & who has continuously lived in Dublin for
at least one year
Must move because housing is to be demolished or
converted to condo
Points
3 points
1 additional point
3 points
1 point
1 point
1 point
1 point
*Newly hired teacher that will be working in Dublin may waive the six-month employment criteria by submitting a copy
of theu employment contract. Teacher must be credentialed and work as a school that is a State accredited school.
* If self-employed in Dublin, then the business must have a current City business license for at least 6 months at the time
of application
** A public service employee is a person who is employed by a public agency such as the City of Dublin, a fire fighter or
police officer assigned to work in Dublin, BART, DSRSD, or USPS working in Dublin.
Figure 10 demonstrates how Preference Points are calculated:
FIGURE 10
Example 1: An applicant for a BMR Unit both lives in Dublin (for at least one year) and
works in Dublin (for at least 6 months).
This individual will receive the
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City of Dublin and PCCP CS II Tralee Village, LLC ,
Lives in Dublin 3 points
Works in Dublin 3 points
Total number of points 6 points
Example 2: An applicant for a BMR Unit works in Dublin and is a schoolteacher.
This individual will receive the following points:
Works in Dublin 3 points
Public Service Employee 1 point
Total number of points 4 points
Example 3: An applicant for a BMR Unit is a senior citizen (62 years old) and lives in
the City of Dublin (for at least one year).
This individual will receive the following points:
Senior citizen 1 point
Lives in Dublin 3 oints
Total number of points 4 points
~
.~
If the household indicates on its application that it qualifies for Preference Points, the household will
be required to provide the following proof:
If Resident of Dublin:
• Copy of two utility bills (PG&E or water), one from at least one year ago and one most recent
utility bill both showing the applicant with a Dublin address; or
• Copy of a current rental agreement.
If Emploved in the City of Dublin:
• Copy of first and most recent pay stub establishing length of employment; or
• Letter from employer, on company letterhead, indicating continuous employment for the past
six months; or
• For a newly hired teacher that will be working in Dublin, a copy of employment contract.
• If self-employed in Dublin, then the business must have a current City business license for at
least 6 months at the time of application
If Public Service Emplovee workin~ in Dublin:
• Copy of first and most recent pay stub establishing length of employment; or
• Letter from employer, on company letterhead, indicating continuous employment for the past
six months; or
• For a newly hired teacher, at a State accredited school, that will be working in Dublin, a copy
of employment contract; and
• A letter from employer confirming employment and employer contact information.
If Senior Citizen:
• A valid California (or other state with photo ID.) driver license; or
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• A valid California (or other state with photo ID.) identification card; or
• A valid passport.
If Permanently Disabled Individual:
• Doctor's note confirming that applicant is permanently disabled; or
• Other verification from a State Agency establishing permanent disability status; or
• Verification of receipt of SSI or SSDI.
`
II,,I,~ ~~
lUW ~ .s~
If Person Who Has an Immediate Familv Member(s) That Are Dublin Residents:
• Copy of two utility bills (PG&E or water), one from at least one year ago and one most recent
utility bill both showing the immediate family member with a Dublin address; or
• Copy of the immediate family member's current~rental agreement; and
' • A copy of birth certificates for self and immediate family member, establishing relationship;
or
• Other legal document establishing relationship.
If Relocated Dublin resident due to Demolition or Condominium Conversion:
• Letter from apartment owner or management firm verifying either the imminent condominium
conversion or demolition of the unit; and
• Confirmation from the City's Community Development Department.
Where definitions are not explicitly stated in the Regulations, the City has developed these
definitions:
• A senior is defined as a person 62 years of age or older for the purpose of qualifying for
preference points;
• To qualify for the permanently disabled point, the person must be able to provide written
verification from a physician or show receipt of SSI.
• Immediate family is defined as a mother, father, brother, sister, child, grandparent or
grandchild currently living together for 6 months or more. ,
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I ~~ [~ ~~~~
. ~ ~
5 REQUIREMENTS FOR BUYERS OF BMR UNITS
5.1 Financing Requirements
All BMR buyers must be able to secure a loan through a lending institution for a BMR Unit. At the
time of application, the developer may require that all applicants get pre-approval from the
developer's preferred lender. However, once an applicant receives approval to purchase a unit, the
applicant may use a lender of its choice, provided that the lender is able to adhere to the City of
Dublin's Guidelines for acceptable loan products.
5.1.1 Acceptable Loan Products for Purchase and Refinancing of a BMR Unit
The City reserves the right to reject loan products if the City believes in its sole discretion that there
, is a stronger likelihood that the loan product would potentially result in loss of the BMIZ Unit due to
the purchasers' inability to comply with the terms of the loan.
Ca1HFA or CaIVA loan products for first mortgages are not available to purchase BMR units;
however a number of Ca1HFA loan products are permitted for second and third loans. Other loan
products may be evaluated upon request. From time to time, the City will make available a list of
acceptable loan products.
The following is an example of a non-exclusive list of the loan products that may be acceptable to the
City. The list is not intended to be exhaustive and other loan products may be evaluated upon request.
Acceptable lst Mortgage Loan Products
• Fixed Mortgages up to 40 years
• Maximum 100% combined loan to value
5.1.2 Prohibited Loan Products
• Interest-only loans
• Negative amortizing loans
• Adjustable rate loans
• Balloon payment loans
~ Some lines of credit that exceed the resale price of the unit
Unacceptable Mortgages Feat~rres
• Stated income loans
• Excessive points and fees
5.2 Down Payment
• Applicants must provide a minimum down payment equal to three percent (3%) of the
purchase price from their own funds.
• Funds must be seasoned (on deposit in a financial institution) for a minimum of three
months prior to the initial date of the application with documentation showing these funds
are available for use as down payment.
Affordable Housing Regulatory Agreement between
City of Dublin and PCCP CS II Tralee Village, LLC
Page D-36
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• Funds must be placed into escrow pnor to close of escrow and proof of availability of
funds must be given to the City before close of escrow.
5.2.1 Down Payment Assistance
The City reserves the right to reject down payment assistance products if the City believes in its sole
discretion that there is a stronger likelihood that the down payment assistance product would
potentially result in loss of the BMR Unit due to the purchasers' inability to comply with the terms of
the assistance.
5.3 Debt to Income Ratio
Homebuyer's total debt to income ratio will be set from time to time by the City based on current
financial or real estate market conditions.
5.4 First Mort~age Loan Value Ratio
Borrower must provide funds in an amount equal to a minimum of 3% of the purchase price for use
as a down payment. Buyer must deposit 3% of the purchase price of their own money into escrow
prior to the close of escrow. The 3% must be applied to the purchase price so the combined loan
to value does not exceed 100%. The 3% down payment may not be used towards closing costs.
5.5 Closin~ Costs and Deposits
• The buyer is responsible for all closing costs related to the purchase of the BMR Unit,
including but not limited to, title fees, escrow fees, and loan origination fees
(approximately 2-3% percent of the purchase price). Homebuyer may be "gifted" funds to
pay for closing costs.
• The buyer may take advantage of other down payment assistance programs to assist with
closing costs with the approval from the City.
5.6 Homebuyer Education Program
Homebuyer(s) must successfully complete a City approved Below Market Rate 8-hour Homebuyer
Education Class prior to the close of escrow and must provide the City with evidence of completion.
5.7 Documents that Each Buyer Must Sign
The Inclusionary Zoning Ordinance requires that all BMR Units be restricted for a period of 55 years.
As a result, BMR Unit buyers must execute a Resale Restriction Agreement with the City and a
Performance Deed of Trust. These documents must be signed by all titleholders and recorded.
5.7.1 Highli~hts of the Resale Restriction Agreement
The following list highlights some of the restrictions in the Resale Restriction Agreement. This list is
not intended to be exhaustive.
Principal Residence Requirement
Affordable Housing Regulatory Agreement between Page D-37
City of Dublin and PCCP CS II Tralee Village, LLC
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The umt must be owner-occupied and shall not be used as an investment or rental property. BMR
Owners are required to occupy the BMR Unit as their Principal Residence. BMR Owners are
prohibited from renting their unit without prior written approval from the City. The owner of an
ownership BMR Unit may rent his or her unit for a period not to exceed twelve (12) months upon
demonstration of hardship, as determined in the sole and absolute discretion of the City Manager, and
written approval from the City of Dublin. "Hardship" means circumstances in which a BMR Owner
is required to be absent from the unit for an extended period of time due to either a change in the
location of his or her employment or health problems of the BMR Owner or an Immediate Family
Member of the BMR Owner. Once the BMR Owner obtains written approval from the City to rent
his or her BMR Unit, the BMR Owner shall select a Qualified Household to rent the unit. The
monthly rental payment for the BMR Unit shall be calculated pursuant to Section 4.11.3.
The BMR Owner shall not execute a rental agreement for the BMR Unit without first obtaining the
City's approval of such agreement. The rental agreement shall clearly state (1) the term of the rental
(not to exceed the twelve month period rental is permitted pursuant to these Guidelines), (2) the
monthly rental payment, and (3) that the rental is for a limited period of time.
Any rental agreement in violation of these Guidelines is prohibited, and any BMR Owner who
violates these Guidelines shall be deemed to be in default under his or her Resale Restriction
Agreement.
Resale of BMR Unit
The City of Dublin is not responsible for locating or providing qualified buyers for BMR units;
however, all potential buyers must be qualified by the City before the sale can proceed. BMR owners
may only sell their units to a Qualified Household or to the City for a restricted price calculated
pursuant to Section 7.2. A BMR owner must follow the requirements set forth in Section 7.1 when
selling his or her unit. The City has the right of first refusal. •
Appreciation Share
Upon the first sale of the BMR Unit after the end of the 55-year term of the Resale Restriction
Agreement,~ the owner must pay to the City an amount equal to 25% of the difference between the
actual sale price and the adjusted resale price calculated pursuant to the formula set forth in Section
7.2. For example, if a unit is originally purchased for $200,000 (actual sale price) and at the end of
55 years sells for $500,000 (adjusted resale price), the equity of the unit is $300,000. The amount
owed to the City would be 25% of the $300,000 or $75,000.
Title Changes
A BMR Owner cannot make changes to the title on a BMR Unit without prior written approval from
the City of Dublin. BMR Owners must request changes to title in writing before making ~ changes
to the title of a BMR Unit and are responsible for all costs associated with adding or removing a
person to or from the title.
In the case of a change in the household makeup, due to either marriage, divorce, legal separation,
death or other occasion that will cause a person to move in or to vacate the BMR Unit, owners should
contact the City to ascertain how to add or remove names from the Resale Restriction Agreement and
Performance Deed of Trust.
City's Option to Purchase
Affordable Housing Regulatory Agreement between Page D-38
City of Dublin and PCCP CS II Tralee Village, LLC
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The City has the option to purchase a BMR Owner's unit upon the occurrence of certain events,
including but not limited to, the sale of the BMR Unit, bankruptcy of the BMR Owner, and
foreclosure. A BMR Owner must notify the City when it desires to sell its BMR Unit by submitting a
Notice of Intent to Transfer (Exhibit B to the Resale Restriction Agreement) to the City. If the City
decides not to purchase the unit, the City will send the BMR Owner a letter, along with a packet of
information that will assist the BMR Owner in finding another Qualified Household to purchase the
unit.
Refinancing BMR Units and Taking Cash Out
In general, BMR Owners may refinance their units only to take advantage of a new loan that benefits
the BMR Owner financially (e.g. a lower interest rate with lower monthly payments). BMR Owners
must contact the City in writing for prior written approval of all refinancing. Taking cash out of the
unit is not allowed unless the cash is going to be used for Approved Capital Improvements as
outlined in Section 7.4.
Annual Survey/Monitoring
Each year, the City of Dublin will monitor and require occupancy certification for all BMR Units.
An annual survey will be mailed to the owner(s) of each BMR Unit, usually around the anniversary
date of the purchase of the unit. Each owner must complete and return the survey along with
qualifying documentation. Failure to return the survey and documentation could place the owner(s)
in default of the Resale Restriction Agreement. In addition, pursuant to the Consent Agreement, the
City may access and review the BMR Owner's credit reports or other financial or personal
information to verify the BMR Owner's compliance with the Resale Restriction Agreement and these
Guidelines.
Estate Planning
Upon the death of a BMR Owner, the inheriting owner must notify the City of the BMR Owner's
death within 30 days of the date of death and must sell the BMR Unit to a Qualified Household at a
restricted resale price within 180 days (or longer if approved by the City of Dublin due to market
conditions) unless (i) the inheriting owner is the legal child or step-child of the BMR Owner; (ii) the
City verifies that legal child or step-child qualifies as a Qualified Household; and (iii) the legal child
or step-child signs a Resale Restriction Agreement and a Performance Deed of Trust.
Affordable Housing Regulatory Agreement between Page D-39
City of Dublin and PCCP CS II Tralee Village, LLC
6 Requirements for Resale of BMR Units
6.1 Resale Procedure
~~ y~
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An owner must comply with the following procedures when reselling an ownership BMR Unit:
1. The owner must inform the City of his or her intent to sell the unit by filling out a Notice
of Intent to Transfer (Exhibit B to the Resale Restriction Agreement) and submitting it,
along with any letters from the City for Approved Capital Improvements, to the City.
(The owner may still decide not to sell their unit after submitting these documents.)
2. The City may exercise its option to purchase the unit. If the City decides not to purchase
the unit, the City will send the BMR Owner a Conditional Consent to Transfer letter and a
packet of information that will assist the BMR Owner in finding another Qualified
Household to purchase the unit. The Conditional Consent to Transfer letter is valid for 90
days from the date of the letter.
3. The City will inform the owner of the permissible sale price of the unit and any other
conditions of sale within thirty (30) days following receipt of the Notice of Intent to
Transfer. The sale price will be calculated pursuant to the formula in Section 7.2.
4. The BMR Owner must market the unit and pay all fees associated with the sale of the unit.
The BMR Owner may resell the BMR Unit through a BMR Resale Program conducted by
a for-profit or non-profit organization, such as the Tri-Valley Housing Opportunity
Center. If the seller uses a Real Estate Agent, the Agent must contact the City to find out
requirements for listing the property, and proper contact information.
5. At least thirty (30) days prior to the anticipated date of the close of escrow, the
prospective buyer must submit the following documentation to the City Housing Staff for
approval:
a. The income documentation set forth in Section 5.4.1;
b. Evidence of completion of a Below Market Rate Homebuyer Education
Workshop;
c. Completed purchase agreement;
d. A loan pre-approval letter with Good Faith Estimate and Truth in Lending
Statement
e. A signed Disclosure Statement (Exhibit F of Resale Agreement)
f. A signed Credit Authorization and Release Form, or similar document
g. Name, address and phone number of Title Company handling the transaction along
with the name of the escrow officer
h. Copy of tri-merge Credit Report; and
i. Evidence of 3% available funds to be used as a down payment.
Affordable Housing Regulatory Agreement between Page D-40
City of Dublin and PCCP CS II Tralee Village, LLC
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6. The it shall notif the owner w m seven 7 da s of recei t of com lete acket of~~
C y y rth O y p p p
documentation as listed above of its approval or disapproval of the prospective buyer.
6.2 Calculatin~ Restricted Resale Price
The resale price of a BMR Unit is dependent on AMI at the time of sale and the value of Approved
Capital Improvements.
The resale price is equal to:
The lowest of the (i) original price paid by the owner for the BMR Unit, increased by an
amount equal to the original price multiplied by the percentage increase in AMI between
the effective date of the Resale Restriction Agreement and the date the City receives the
owner's Notice of Intent to Transfer. (For instance, if the original price of the unit was
$200,000 and the median income increases 2% between the effective date of the Resale
Restriction Agreement and the date the City receives the owner's Notice of Intent to
Transfer, the unit price will increase by 2%, or $4,000 to 204,000); or (ii) the fair market
value of the BMR Unit as determined by an appraiser approved in writing by the City;
plus
2. The cost of Approved (in writing by the City) Capital Improvements; minus
3. The cost to repair damage to the BMR Unit and to place the unit into saleable condition
(the determination of what is considered damage to a unit will be determined by the City).
Such items may include, but not limited to, ripped or torn carpet, damage to kitchen or
bathroom appliances or fixtures; broken light fixtures, broken or missing tiles and/or grout
around tiles, damage to floor or ways; minus
4. The amount of all costs advanced by the City for the payment of mortgages, taxes,
assessments, insurance premiums HOA dues and/or associated late fess, costs, penalties,
interest, attorneys' fees, pest inspections, resale inspections and other expenses related to
the BMR Unit, which the owner has failed to pay or has permitted to become delinquent.
6.3 Fees Associated with the Sellin~ of a BMR Unit
The BMR Owner is responsible for all fees associated with the sale of the unit including, but not
limited to, any real estate fees, and the City's Administration Fee of $1,500, which may be adjusted
from time to time. - ~
6.4 CapitalImprovements
As discussed in Section 7.2 above, the resale price of the BMR Unit will be increased by the amount
of Approved Capital Improvements. It is the responsibility of the BMR Owner to keep cost and
accounting records of all Approved Capital Improvements.
6.4.1 Procedure for Receivin~A~proval of Capital Improvements
In the exercise of reasonable discretion in accordance with regulations adopted by the City from time
to time, the City will approve capital improvements that improve the health and safety conditions of a
Affordable Housing Regulatory Agreement between ~ Page D-41
City of Dublin and PCCP CS II Tralee Village, LLC
BMR Unit. To receive such approval, the BMR Owner must:
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• submit evidence to the City showing the purpose and estimated cost of the capital
improvements;
• receive written approval from the City prior to commencing any improvements; and
• submit documentation to the City within 30 days of completion of the improvements
verifying that such improvements have been completed.
Upon receipt of the estimate for capital improvements, City Staff will review the request for
compliance with these Guidelines. The City will review all capital improvements claims and
cafegorize them into three distinct categories: 1) Eligible Capital Improvements; 2) Eligible
Replacement and Repair; and 3) Ineligible Costs. Each category is defined below.
1. Eligible Capital Improvements include major structural system upgrades, Special
Assessments, selected additions to the unit (where the new space is needed to meet the
size of a growing family) and improvements related to increasing the health, safety and
energy'efficiency of the BMR Unit. Improvements that meet these criteria will be given
100% credit.
2. Eligible Replacement and Repair includes in-kind replacement of existing
amenities, repairs and general maintenance that keeps the BMR Unit in good
working condition. Costs that meet these criteria will be given 50% credit.
3. Ineligible Costs include cosmetic enhancements, installations with limited useful life
spans and non-permanent fixtures. Homeowners may undertake these projects at their
discretion; however, they will not be given capital improvements credit.
The City will send a letter to the BMR Owner either approving or denying the submitted capital
improvements within 30 days of original receipt. The letter will be maintained in the BMR Unit's file
at the City of Dublin for use when the unit is resold.
Once the City has approved the capital improvements, the BMR Owner may then proceed with the
work, obtaining permits from the Building Division, if applicable. Within 30 days of completion of
the improvements and sign-off by the Building Division, if applicable, the BMR Owner must submit
the following information: "
• A copy of the receipt/invoice for each eligible improvement;
• Proof of payment, such as a cancelled check, bank account statement or credit card
bill;
• A copy of Building Permit, if required; and
• A picture or pictures of completed work.
The City may, at its discretion, visit the job site to visually view the completed work.
Affordable Housing Regulatory Agreement between ' Page D-42
City of Dublin and PCCP CS II Tralee Village, LLC
6.4.2 Special Assessments
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HOA- initiated Special Assessments are considered capital improvements and will be added to the
resale price of the BMR Unit. In order to receive credit for Special Assessments, homeowners must
submit the following documentation within 3-months of payment:
• Invoice for Special Assessment; and
• Proof of Payment, such as a cancelled check, bank account statement or credit card
bill.
6.4.3 Capital Improvements Cap
In order to maintain the affordability of the BMR Unit for subsequent buyers, at the time of sale, the
City of Dublin will cap all Approved Capital Improvements at 5% of the resale price.
6.4.4 List of Eligible and Ineli ibg le Capital Improvements
Eligible Capital Improvements include major structural system upgrades, some new additions to the
unit and improvements related to increasing the health, safety and energy efficiency of the BMR
Unit. Improvements that meet these criteria will be given 100% credit. Below is a non-exclusive list
of Eligible Capital Improvements:
• Major Electrical Wiring System Upgrade
• Major Plumbing System Upgrade
• Upgrade to Double Paned Windows
• Fireplace Glass Screen
• Room Additions (if room addition meets the criteria for the family size)
• Installation of Additional Closets and Walls
• Alarm System
• Removal of Toxic Substances such as Asbestos; Lead or Mold/Mildew
• Insulation
• Upgrade to Energy Star Built-In Appliances, as follows:
o Furnace
o Water Heater
o Stove/Range
o Dishwasher - -.
o Microwave Hood
Eligible Replacement and Repair includes in-kind replacement of existing amenities, repairs
and general maintenance that keeps the property in good working condition. Costs that meet
these criteria will be given 50% credit for repairs. Below is a non-exclusive list of Eligible
Replacement and Repair: ~
• Electrical Maintenance and Repair, such as:
o Switches
o Outlets
Affordable Housing Regulatory Agreement between
City of Dublin and PCCP CS II Tralee Village, LLC
Page D-43
• Plumbing Maintenance and Repair, such as:
o Faucets
o Supply Line
o Sinks
• Flooring
~ Countertops
~ Cabinets
• Bathroom Tile
• Bathroom Vanity
• Replacement of Built-In Appliances, as follows:
o Furnace
o Water Heater
o Stove/Range
o Dishwasher
o Microwave Hood
o Garbage Disposal
~ Window Sash
• Fireplace Maintenance or In-kind Replacement (Gas)
• Heating System
• Lighting System (Recessed)
7~ ~3~
~ ~ ~.~
Ineligible Costs include cosmetic enhancements, installations with limited useful life spans and non-
permanent fixtures. Owners may undertake these projects at their discretion, however they will not
be given capital improvements credit. Below is a non-exclusive list of Ineligible Costs:
• Cosmetic Enhancements, such as:
o Fireplace Tile and Mantel
o Decorative Wall Coverings or Hangings
o Window Treatments (Blinds, Shutters, Curtains, etc.)
o Installed Mirrors
o Shelving
o Refinishing of Existing Surfaces
• Non-Permanent Fixtures, such as:
o Track Lighting
o Door Knobs, Handles and Locks
o Portable Appliances (Refrigerator, Microwave, Stove/Oven, etc.)
• Installations with Limited Useful Life Spans, such as:
o Carpet
o Painting of Existing Surfaces
o Window Glass
o Light Bulbs ~
6.4.5 Building Permits
It is the responsibility of the BMR Owner to ascertain (and obtain if necessary) if the work to be
performed requires a City building permit. Any work that is done without the required permit will
automatically be deemed ineligible as a capital improvement expense whether or not it fits within the
Affordable Housing Regulatory Agreement between Page D-44
City of Dublin and PCCP CS II Tralee Village, LLC
~~~Q ~ ~
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definition of an Eligible Capital Improvement or Eligible Replacement and Repair. BMR Owners
may call (925) 833-6620 to inquire about building permits.
Affordable Housing Regulatory Agreement between Page D-45
City of Dublin and PCCP CS II Tralee Village, LLC
i~ ~~ ~~
7 REQUIREMENTS FOR OWNER'S OF BMR SECONDARY UN ~~
ITS
A Secondary Unit is a legal secondary dwelling unit on an owner's property that has been approved
by the City of Dublin as a rental BMR Unit for purposes of compliance with the Inclusionary Zoning
Ordinance and that is reserved for occupancy by, and at rents affordable to, Very-Low, Low-, and
Moderate-Income households. The City Council may approve such units as part of Developer's
proposal for an alternate method of compliance with the Inclusionary Zoning Regulations.
The owner of a Secondary Unit must sign a Secondary Unit Regulatory Agreement and Declaration
of Restrictive Covenants, which is recorded against the property containing the Secondary Unit and
requires, among other things, that the Secondary Unit be reserved for occupancy by, and at rents
affordable to, Very-Low, Low-, and Moderate-Income households for the length of the restrictions.
The Agreement will remain in effect regardless of any sale, assignment, or transfer of the property,
unless the Agreement is terminated by the City in writing.
7.1 Rental Requirements
If the owner rents the Secondary Unit, the owner shall rent the unit to a Qualified Household and
must follow the procedures set forth in Section 4.11. The rent charged to the Qualified Household
must not exceed one twelfth (1/12) of thirty percent (30%) of the applicable Maximum Income,
adjusted for household size, less a utility allowance as specified by the Housing Authority of
Alameda County. Owner shall ensure that all leases and contracts with tenants prohibit subleasing of
the Secondary Unit.
7.2 Reporting Requirements
Prior to a household's initial occupancy of a Secondary Unit, and on every anniversary thereafter,
the owner or its authorized agent shall obtain from each household written documentation verifying
each tenant's eligibility containing all of the following, including additional documentation as City
may reasonably require: .
• Number of people in the household; and
• Total household income.
The owner or its authorized agent shall retain this documentation for not less than three (3) years, and
upon City's request, shall make the documentation available for inspection by City and shall provide
copies of the documentation to City. The owner or its authorized agent may require each household
to certify the verifying documentation.
7.3 Annual Renort - Inspections
Owner shall submit an annual report to the City in conformity with the requirements of Section
8.68.OSO.B of the Inclusionary Zoning Regulations, together with a certification that the property is in
compliance with the requirements of the Secondary Unit Regulatory Agreement and Declaration of
Restrictive Covenants. The annual report shall, at a minimum, include the following information: (i)
the address of the Secondary Unit; (ii) the monthly rents charged and proposed to be charged; (v) the
number of people residing in the unit; and (vi) the total household income of residents. Upon City's
request, Owner shall include with the annual report, a copy of the verifying documentation described
in Section 8.3, and such additional information as City may reasonably request from time to time in
Affordable Housing Regulatory Agreement between Page D-46
City of Dublin and PCCP CS II Tralee Village, LLC
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order to show compliance with the Secondary Unit Regulatory Agreement and Declaration of
Restrictive Covenants.
Owner shall permit representatives of City to enter and inspect the property during reasonable
business hours in order to monitor compliance with the Secondary Unit Regulatory Agreement and
Declaration of Restrictive Covenants upon 24 hours advance notice of such visit to Owner.
7.4 Mana~ement Responsibilities
Owner shall be responsible for all management functions with respect to the Property, including
without limitation the selection of tenants, certification and recertification of household income and
eligibility, evictions, collection of rents and deposits, maintenance, landscaping, routine and
extraordinary repairs, replacement of capital items, and security. Except as City may otherwise agree
in writing, City shall have no responsibility for management or maintenance of the Property. The
contracting of management services to a management entity shall not relieve owner of its primary
responsibility for proper performance of management duties.
Affordable Housing Regulatory Agreement between Page D-47
City of Dublin and PCCP CS II Tralee Village, LLC
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Exhibit E
MEMORANDUM OF AFFORDABLE HOUSING REGULATORY AGREEMENT
AND DECLARATION OF RESTRICTIVE COVENANTS
Affordable Housing Regulatory Agreement between
City of Dublin and PCCP CS II Tra.lee Village, LLC Page E-1
I~b~ ~~~~
Recording requested by and when
recorded mail to:
City of Dublin
100 Civic Pla~a
Dublin, CA 94568
Attn: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE b27383
Space above this line
use
MEMORANDUM OF AFFORDABLE HOUSING REGULATORYAGREEMENT
AND DECLARATION OF RESTRICTIVE COVENANTS
This Memorandum of Affordable Housing Regulatory Agreement and Declaration of
Restrictive Covenants (the "Memorandum") is entered into on this _ day of , 2011,
by and between the City of Dublin, a municipal corporation (the "City") and PCCP CS II
Tralee Village, LLC, a Delaware limited liability company (the "Developer").
1. Pursuant to the Affordable Housing Regulatory Agreement and Declaration of
Restrictive Covenants dated as of , 2011 by and between City and
Developer (the "Agreement"), the Parties have set forth their respective obligations with .
respect to the provision of affordable rental units on lands presently owned by Developer
known generally as the Tralee Apartment Project and more specifically described in Exhibit
A attached hereto and incorporated herein by this reference (the "Property"). These
obligations run with the land.
2. With respect to the Property, the Agreement evidenced by this Memorandum
supersedes the prior Affordable Housing Agreement, dated October 19, 2005 between
Pfeiffer Ranch Investors, Inc., and City, a memorandum of which was recorded in the
Official Records of Alameda County on October 21, 2005 as Instrument No. 2005455428.
3. Developer and City have executed and recorded this ~nstrument to give notice
of the Agreement, and the respective rights and obligations of Developer and City
thereunder. The unrecorded.Affordable Housing Agreement and Declaration of Restrictive
Covenants is incorporated by reference in its entirety in this Memorandum.
4. This Memorandum shall bind and inure to the benefit of the parties and their
respective heirs, successors and assigns, subject however to restrictions set forth in the
Agreement regarding assigrunent.
Affordable Housing Regulatory Agreement between
City of Dublin and PCCP CS II Tralee Village, LLC Page E-2
~ ~ ~~
IN WITNESS WHEREOF, the parties hereto have caused this Memorandum to be
executed as of the date and year first above written.
CITY OF DUBLIN,
a municipal corporation
By:
Joni Patillo, City Manager
Attest:
Caroline Soto, City Clerk
Approved as to form:
John Bakker, City Attorney
PCCP CS II TR.ALEE VILLAGE, LLC,
a Delaware limited liability company
By:
Its:
SIGNATURES MUST BE NO?'ARIZED.
1687044
Affordable Housing Regulatory Agreement between ~
City of Dublin and PCCP CS II Tralee Village, LLC ' Page E-3
Ix~~ ~
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Exhibit A to Memorandum of A~reement
PROPERTY DESCRIPTION
Real property in the County of Alameda, State of California, described as follows:
Lot 4 of Tract 7457, Filed June 13, 2006, Book 291, Pages 29 Through 37, inclusive,
Alameda County Records. ~
Affordable Housing Regulatory Agreement between
City of Dublin and PCCP CS II Tralee Village, LLC Page E-4
,~ ~~
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STATE OF CALIFORNIA
COUNTY OF ALAMEDA
On , 20_, before me, ,(here insert name and title
of the officer), personally appeared , who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in, his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instxument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
STATE OF CALIFORNIA
COUNTY OF ALAMEDA
On , 20_, before me, ,(here insert name and title
of the officer), personally appeazed , who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that 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.
I certify under PENALTY OF PERTURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Affordable Housing Regulatory Agreement between
City of Dublin and PCCP CS II Tralee Village, LLC
(Seal)
Page E-5