HomeMy WebLinkAbout02-08-2005 Amd InclusionryZoningRegAGENDA STATEMENT
PLANNING COMMISSION MEETING DATE: February 8, 2005
SUBJECT: Public Hearing -Amendments to the Inclusionary Zoning
Regulations Clarifying the Sales Price for very Low-Income Units,
Adding Additional Priorities for Selection of Occupants of
Inclusionary Affordable Units, and Other Clarifying Amendments
Report Prepared by: Julia Abdala, Housing Specialist ~ ~,,~"..
ATTACHMENTS: 1. Resolution Recommending the City Council Adopt an
Ordinance Amending Chapter 8.68 of the Dublin Municipal
Code Relating to the Inclusionary Zoning Regulations with
draft Ordinance attached as Exhibit A
2. Layperson's Guide to the Inclusionary Zoning Ordinance
Regulations
RECOMMENDATION: 1. Open Public Hearing
2. Hear Staff Presentation
3. Take Public Testimony
4. Close Public Hearing
5. Deliberate
6. Adopt the Resolution (Attachment 1) Recommending the
City Council Adopt an Ordinance Amending Chapter 8.68 of
the Dublin Municipal Code Relating to the Inclusionary
Zoning Regulations
FINANCIAL STATEMENT: No fiscal impact in the listed amendments to the Inclusionary
Zoning Regulations
BACKGROUND:
On May 21, 2002, the City Council introduced an Ordinance amending the Inclusionary Zoning
Regulations (Chapter 8.68) of the Dublin Municipal Code requiring developers to construct 12.5% of
each residential project as affordable housing. On January 7, 2003, the City Council made certainly
clarifying amendments to the Regulations to the priorities used in the selection of occupants for
Inclusionary Affordable Units; the percentage of household income allowed for housing expenses; and the
land dedication requirements.
Staff has been working with the existing Inclusionary Zoning Regulations for over two years. Staff s
experience in applying the Regulations during this period has made it evident that several sections in the
existing Regulations need refinement or adjustment.
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COPIES TO: In House Distribution
PA File
G:APA#2001\01-038 Inclusionary ZOA\PC\PC Staff Report lncl Ord Amends 2-8-OS (2).DOC ~ '°)
ITEM NO.
Sales Prices of Very Low-Income Units
Under the Regulations, the sales prices of Inclusionary Units are established by direct reference to the
income level of the prospective purchaser. Basically, the Regulations provide that sales prices are set at
an amount that would result in no more than 35% of annual household income being devoted to housing
expenses. For example, if two four-person households qualified to purchase the same moderate-income
unit, and the households had household incomes of $98,650 and $90,000, respectively, the household with
the higher income would pay more-for the same unit-than the household with the lower income.
Calculating sales prices is complicated because of the numerous variables-such as mortgage terms,
interest rates, household income and size, insurance, and homeowners' association dues-and rather than
illustrating those calculations here we have attached the Layperson 's Guide to the Inclusionary Ordinance
Regulations. (See Attachment 2 pages 13, 14 & 15)
This means of establishing sales prices for Inclusionary Units works well in the moderate-income and
low-income categories. However, because the very-low income category has no minimum income level,
this means of establishing sales prices could result in requiring Inclusionary Units to be sold at prices that
are unrealistically low. The very low-income category is made up of those households with incomes of
50% or less of median income. Thus, a household with a yearly household income of $5,000 (or
approximately 6% of the median income in Alameda County) would be a very low-income household.
Because sales prices are a direct function of household income, as some developers have pointed out, this
could result in an Inclusionary Unit being sold at a price that is unrealistically low, such as $20,000 or
less.
To resolve this issue, staff recommends that, within the very low-income category, the sales prices be set
based-not on the household's actual income-but based on the maximum income level in the very low-
income category. The 2004 very low-income levels (on a yearly basis) published by the California
Department of Housing and Community Development are as follows:
One person $29,000
Two people $33,100
Three people $37,250
Four people $41,400
Five people $44,700
Six people $48,000
To give an example if the developer was selling a 3-bedroom unit to a very low-income family of 4, a
developer could sell the unit at a "fixed" sale price up to the price that would result by using the income at
the top of the very low-income category. For a family of four, the sales price would be approximately
$118,005 (based on the $41,400 maximum income level in the very low-income category). Households
with incomes of less than the maximum income level within the very low-income category may still
qualify to purchase the units, but the price would not be based on their income level. The result would be
that some households would be unable to qualify for financing at the resulting sales prices; although
previously they would have been able to qualify for such financing as the price was based on their income
level.
Staff considered other mechanisms for dealing with this issue. For example, staff considered establishing
a minimum income level for the very low-income category, such as 30% of median. We concluded that
using the maximum is preferable because using incomes as low as 30% of the area median still results in
sale prices that would not give the developer an acceptable return on their investment in developing the
unit.
2
Addition ofAdditional Priorities or Occupant Selection.
The Regulations include a provision that gives preferences in the occupant selection process to certain
categories of households. Households earn "priority points" for each criteria met by the household. For
example, if an applicant household contains a person that works in Dublin 3 priority points are provided
to the applicant. Priority points are also granted to Dublin residents (3 points, one per household), seniors
(1 point, one per household), and to the permanently disabled (1 point, one per household).
Staff is recommending adding two new preference categories. The first would grant one priority point to
applicant households (one per household) who is a member of the immediate family of a person that lives
in Dublin and has lived in Dublin for over a year. Staff has been receiving phone calls for over a year
from interested Dublin residents inquiring about residency requirements on the senior affordable projects
in Dublin. A large number of these inquiries are from residents interested in providing housing for an
aging parent. The purpose of this provision is to accommodate such needs.
The second additional preference category recommendation would grant one priority point to very low-,
low- and moderate-income households that would be required to relocate due to proposed demolition of
their housing or its conversion to condominiums.
Rental Unit Regulatory Agreements.
The Regulations require that developers of projects containing rental units enter into agreements with the
City that restrict occupancy to those whose incomes do not exceed certain income levels. (See Dublin
Mun. Code, § 8.68.OSO.B.) The section contains a typographical error in that it only mentions the
moderate-income category. Section 8.68.OSO.B would be amended to indicate that the agreement should
contain language that restricts occupancy to those whose monthly income level does not exceed very low-,
low- ormoderate-income levels as the case maybe.
RECOMMENDATION: Staff recommends that the Planning Commission open the public hearing,
hear the staff presentation, take public testimony, close the public hearing, deliberate and adopt the
resolution and recommend adding these amendments to the Inclusionary Ordinance.
RESOLUTION NO. OS -
A RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF DUBLIN
RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE OF THE CITY OF
DUBLIN AMENDING CHAPTER 8.68 OF THE DUBLIN MUNICIPAL CODE (THE
INCLUSIONARY ZONING REGULATIONS) RELATING TO SALES PRICES OF VERY LOW-
INCOME UNITS AND PREFERENCES FOR OCCUPANCY OF INCLUSIONARY UNITS
WHEREAS, the citizens of Dublin are experiencing a housing shortage for very low-, low- and
moderate-income households; and
WHEREAS, a goal of the Housing Element of the City's General Plan is to achieve a balanced
community with housing available for households at a range of income levels; and
WHEREAS, people with very low, low, and moderate incomes that currently live and/or work in
the City are increasingly unable to locate housing at affordable prices, and often become excluded from
living in the City; and
WHEREAS, Federal and State housing subsidy programs are insufficient, by themselves, to
satisfy the housing needs of very low-, low- and moderate-income households; and
WHEREAS, the high cost of newly constructed housing does not, to any appreciable extent,
provide housing affordable by very low-, low-, and moderate-income households, and continued new
development that does not include affordable housing will serve to further aggravate the current housing
shortage by reducing the supply of developable land; and
WHEREAS, it is a public purpose of the City, and a public policy of the State as mandated by the
requirements for a housing element of the City's General Plan, to make available an adequate supply of
housing for persons of all economic segments of the community; and
WHEREAS, accordingly, the City has adopted the Inclusionary Zoning Regulations ("the
Regulations"), set forth at Chapter 8.68 of the Dublin Municipal Code, which Regulations generally
require developers of residential housing in excess of 19 units in the City of Dublin to set aside 12.5% of
such units for very low-, low-, and moderate-income households, as defined; and
WHEREAS, staff has determined that the Regulations are in need of certain clarifying
amendments and has presented a draft ordinance amending the Regulations to the Planning Commission
at a public hearing for a recommendation to the City Council;
WHEREAS, proper notice of said public hearing was given in all respects as required by law; and
WHEREAS, the Planning Commission did hold a public hearing on February 8, 2005; and
WHEREAS, proper notice of said public hearing was given in all respects as required by law; and
BE IT FURTHER RESOLVED THAT THE Dublin Planning Commission does hereby
recommend that the City Council approve an Ordinance of the City of Dublin amending Chapter 8.68 of
the Dublin Municipal Code relating to Inclusionary Zoning regulations as set forth in Exhibit A.
ATTACHMENT j
PASSED AND ADOPTED BY the Planning Commission of the City of Dublin, on this 8th day
of February 2005, by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
Planning Commission Chairperson
ATTEST:
Planning Manager
ORDINANCE NO. - 05
AN ORDINANCE OF THE CITY OF DUBLIN AMENDING CHAPTER 8.68
OF THE DUBLIN MUNICIPAL CODE (THE INCLUSIONARY ZONING REGULATIONS)
RELATING TO SALES PRICES OF VERY LOW-INCOME UNITS AND PREFERENCES FOR
OCCUPANCY OF INCLUSIONARY UNITS
The City Council of the City of Dublin does hereby ordain as follows:
Section 1. Amendment of Section 8.68.020: Subdivision A of Section 8.68.020 of the Dublin
Municipal Code is amended to read as follows:
"A. "Affordable Unit" means an ownership or rental-housing unit, including senior housing,
affordable to households with very-low, low, or moderate incomes as defined in this chapter.
Rental units are deemed affordable units if the annual rent does not exceed 30% of
maximum income level for low- and moderate-income households, adjusted for
household size and as defined below.
2. Owner-occupied units are deemed affordable units if the sales price results in annual
housing expenses that do not exceed 35% of income level for very-low-, low-, and
moderate-income households, adjusted for household size and as defined below. For a
very low-income owner-occupied units, the unit shall be deemed an affordable unit if
the sales price results in annual housing expenses that do not exceed 35% of the
maximum in the very low-income level, adjusted for household size and as defined
helnw_"
Section 2, Amendment of Section 8.68.050. Subdivision B of Section 8.68.050 of the Dublin
Municipal Code is amended to read as follows:
"General Procedures for Implementing Intl usionary Zoning Requirements
A. Agreements. Prior to the issuance of a building permit for an affordable unit, resale
restrictions or rental controls, or both, as the case maybe, shall be set forth in an agreement
between the City and the developer, in a form consistent with the City Council-adopted form
agreement, which agreement shall be recorded against the property containing the affordable
units. The agreement shall be executed by the City Manager, and its requirements shall run
with the land and bind the applicant's successors.
B. Rental Units; Occupancy; Annual Report. Agreements involving rental units shall require
the owner of the affordable units to ensure that the units are occupied by tenants whose
monthly income levels do not exceed very low-, low-, or moderate income levels, as the case
may be, and shall preclude tenants from subletting or subleasing the unit. The agreement shall
also require the owner of the affordable unit to submit an annual report to the City Manager,
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in a format approved by the City. The report shall include, but not be limited to the following
information: an identification of the affordable units within the project; the monthly rents
charged and proposed to be charged; vacancy information for the prior year; and the monthly
income for tenants of each affordable unit throughout the prior year.
C. Ownership Units; Occupancy; City's Right of First Refusal. Agreements for ownership
units shall specify that the inclusionary units must be occupied by the owner or owners and
may not be leased or rented without the written approval of the City. The resale restrictions
shall provide that in the event of the sale of an affordable unit, the City shall have the right to
purchase any affordable owner-occupant unit at the maximum price that could be charged to
an eligible household.
D. Selection Criteria. No household shall be permitted to occupy a unit that is required under
this chapter to be affordable unless the City or its designee has approved the household's
eligibility. Eligible potential occupants of affordable units will be qualified on the basis of
household income, the median combined household income statistics for Alameda County
published periodically by the California Department of Housing and Community
Development, all sources of household income and assets, the relationship between household
size and the size of available units, and any further criteria required by law. The developer
shall use an equitable selection method established in conformance with the terms of this
chapter. The selection criteria may not distinguish between adults and children. Selection of
qualified person should be based on priorities established using the point system described
below:
• Employed within the boundaries of the City of Dublin (3 points, one per household)
• Public Service employee working in the City of Dublin (1 additional point)
• Dublin resident (3 points, one per household)
• Seniors (1 point, one per household)
• Permanently disabled (1 point, one per household)
• Immediate family member of Dublin resident (1 point, one per household)
• Required to relocate from current Dublin residence due to demolition of dwelling or
conversion of dwelling from rental to for-sale unit (1 point, one per household)
To qualify as "Employed within the boundaries of the City of Dublin", the person shall have
been employed with the City of Dublin for at least six months.
To qualify as a "Dublin resident," the person shall have been a resident of the City of Dublin
for at least aone-year period prior to the eligibility determination."
Section 3. Compliance with California Environmental Quality Act ("CEQA ): The City Council
declares that this ordinance is exempt from CEQA based on the following findings: This ordinance is not a
"project" within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential for
resulting in physical change in the environment, directly or ultimately. This ordinance does not, in itself,
allow the construction of any building or structure. This ordinance, therefore, has no potential for resulting
in physical change in the environment, directly or ultimately.
Section 4. Severability: In the event any section or portion of this ordinance shall be determined
invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or
portions hereof shall remain in full force and effect.
Section 5: Savings Clause: All code provisions, ordinances, and parts of ordinances in conflict
with the provisions of this chapter are repealed. The provisions of this chapter, insofar as they are
substantially the same as existing code provisions relating to the same subject matter shall be construed as
restatements and continuations thereof and not as new enactments. With respect, however, to violations,
rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this ordinance, under any
chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of
sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or
appeal.
Section 6. Effective Date and Posting of Ordinance: This ordinance shall take effect and be in force
thirty (30) days from and after the date of its passage. The City Clerk of the City of Dublin shall cause the
Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section
36933 of the Government Code of the State of California.
PASSED AND ADOPTED BY the City Council of the City of Dublin, on this day of
2005, by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
MAYOR
ATTEST:
CITY CLERK
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CITY OF DUBLIN
£.AFPERSON'S GUIDE TO
THE INCLUSIQNARY
ZONING ORDINA'.VCE
REGULATIONS
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INCLUSIONARY ZONING REGULATIONS
Chapter 8.68
CHAPTER 8.68 INCLUSIONARY ZONING REGULATIONS
8.68.010. Purpose. The purpose of this chapter is to:
A. enhance the public welfare and assure that further housing development contributes to the attainment
of the City's housing goals by increasing the production of residential units affordable by households
of very low, low, and moderate income.
B. assure that the limited remaining developable land in the City's planning area is utilized in a manner
consistent with the City's housing policies and needs.
8.68.020. Definitions. As used in this chapter, each of the following terms shall be defined as follows:
A. "Affordable Unit" means an ownership or rental-housing unit, including senior housing, affordable to
households with very-low, low, or moderate incomes as defined in this chapter.
1. Rental units are deemed affordable units if the annual rent does not exceed 30% of maximum
income level for very-low-, low-, and moderate-income households, adjusted for household
size and as defined below.
2. Owner-occupied units are deemed affordable units if the sales price results in annual housing
expenses that do not exceed 35% of income level for very-low-, low-, and moderate-income
households, adjusted for household size and as defined below.
B. "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any
entity or combination of entities that seeks city real property development permits or approvals.
C. "Dwelling unit" means a dwelling designed and intended for occupancy by one household.
D. "Very-low-, low-, and moderate-income levels" means those income and eligibility levels
determined periodically by the California Department of Housing and Community Development
based on Alameda County median income levels adjusted for family size. Such levels shall be
calculated on the basis of gross annual household income considering household size and number of
dependents, income of all wage earners, elderly or disabled family members, and all other sources of
household income and will be recertified as set forth by local standards, and state and federal housing
law.
"Very-low income" means 50% or less of the median income, adjusted for actual household
size.
2. "Low income" means more than 50% to 80% of the median income, adjusted for actual
household size.
"Moderate income" means more than 80% to 120°io of the median income, adjusted for actual
household size.
E. "Resale controls and/or rent restrictions" means legal restrictions by which the affordable units shall
be restricted to ensure that the unit remains affordable to very-low-, low-, or moderate-income
City of Dublin Zoning OrdJnance 68-1 September, 1997
Revised January 20Q3
INCLUSIONARY ZONING RI=GULATIONS
Chapter 8.68
households, as applicable, for a period of not less than 55 years. With respect to rental units; such
rent restrictions shall be in the form of a regulatory agreement recorded against the applicable
property. With respect to owner-occupied units, such resale controls shall be in the form of resale
restrictions, deeds of trust, and/or other similar documents recorded against the applicable property.
F. "Residential development'' 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.
8.68.Q30. General Requirements
A. 12.5% Affordability Requirement. All new residential development projects of 20 units or more
designed and intended for permanent occupancy shall construct 12.5% of the total number of
dwelling units within the development as affordable units, except as otherwise provided by this
chapter. The foregoing requirement shall be applied no more than once to an approved development
(and generally at the tentative map stage), regardless of the changes in the character or ownership of
the development, provided the total number of units does not change. In applying and calculating the
affordability requirement, any decimal fraction less than or equal to 0.50 maybe disregarded, and an}
decimal fraction greater than 0.50 shall be construed as one unit.
S. Allocation of Units to Income Levels. Affordable units provided pursuant to this section shall be
allocated to households with very-low, low-, and moderate-income levels as follows:
o
Very-low-income households ~0 /°
Low-income households 20%
Moderate-income households 50%
V~rhere the calculation of the allocation results in fewer units that would otherwise be required
pursuant to subdivision A above, one additional unit should be allocated to the income level with a
decimal fraction closest to 0.50.
C. Conditions of Approval: Any tentative map, conditional use permit, or site development review
approving residential development projects subject to this chapter shall contain conditions sufficient
to ensure compliance with the provisions of this chapter. Such conditions shall detail the number of
affordable units required, specify the schedule of construction of affordable units, set forth the
applicant's manner of compliance with this chapter, and require the execution of an agreement
imposing appropriate resale controls and/or rental restrictions on the affordable units.
D. Concurrent Construction. All affordable units in a project or phase of a project shall be constructed
concurrently with market-rate units, unless the City Manager determines in writing that extenuating
circumstances exist that make concurrent construction infeasible or impractical.
E. Design and Distribution of Affordable Units. All affordable units shall reflect the range of
numbers of bedrooms provided in the project as a whole and shall not be distinguished by exterior
design, construction, or materials. Affordable units maybe of smaller size than the units in the project
City of Dublin Zoning Ordinance 68-2 September, 1997
Revised January 2003
INCLUSIONARY ZONING REGULATIONS
Chapter 8.68
and may have fewer amenities than the market rate units in the project. All affordable units shall be
reasonably dispersed throughout the project.
8.68.040. Exceptions to 12.5% Affordability Requirement. Developers of projects subject to 8.68.030A
shall construct 12.5% of the total number of dwelling units within the development as affordable
units, unless subject to an exception set forth in this section. All exceptions require City Council
approval, which shall be obtained at or prior to the last discretionary approval for the project.
A. Payment of Fees In Lieu of Creation of Affordable Units. Upan request of the applicant, the City
Council shall permit the applicant to pay a fee in lieu of constructing up to 40% of the affordable
units that the developer would othervvise be required to construct pursuant to Section 8.68.030A. The
amount of the fee shall be as set forth in a resolution of the City Council, which maybe amended
from time to time to reflect inflation and changed conditions in the City and the region. In lieu fees
shall be paid at the time and in the amount set forth in the in lieu fee resolution in effect at the time of
issuance of the building permit.
B. Off-Site Projects. An applicant may construct the affordable units not physically within the
development in lieu of constructing some or all of the affordable units within the development, with
the approval of the City Council, if the City Council finds:
1. that construction of the units off-site in lieu of constructing units on-site is consistent with the
chapter's goal of creating, preserving, maintaining, and protecting housing for very Iow-, low-
and moderate-income households.
2. that the units to be constructed off site are consistent with Section 8.68.030E above.
3. that it would be infeasible or impractical to construct affordable units on-site.
4. that conditions of approval for the project require that the off-site affordable units would be
governed by the terms of a deed restriction and, if applicable, rental restrictions similar to that
used for the on-site affordable units.
5. that the conditions of approval for the project, or other security such as a cash deposit, bond,
or letter of credit, are adequate to require the construction of the off-site affordable units
concurrently with the completion of the construction of the residential development or within
a reasonable period (not to exceed 5 years).
C. Land Dedication. An applicant may dedicate land to the City or city-designated local non-profit
housing developer in Lieu of construction of some or all of the required affordable units, if the
Council finds that:
1. that dedication of land in lieu of constructing units is consistent with the chapter's goal of
creating, preserving, maintaining, and protecting housing for very-low, low- and moderate-
income households.
2. that the dedicated land is useable for its intended purpose, is free of toxic substances and
contaminated soils, and is fully improved, with infrastructure, adjacent utilities, grading, and
all development-impact fees paid excluding any inclusionary zoning ordinance fees.
City of Dublin Zoning Ordinance 68-3 September, 1997
Revised January 2003
INCLUSIONARY ZONING REGULATIONS
Chapter 8.68
3. that the proposed land dedication is of sufficient size to meet the following requirements:
a. the dedication includes land sufficient to construct the number of units that the
applicant would otherwise be required to construct by Section 8.68.030.A, based on
the size of lots in the subdivision for which the applicant is meeting its obligation; and
b. in addition, the dedication includes such additional land the market value for which is
equal to or exceeds the difference between the value of a market-rate, 1200-square
foot unit and the price at which such a unit could be sold as an Affordable Unit (which
amount shall be set forth in a resolution adopted from time to time by the City
Council) times the number of units required.
D. Credit transfers. An applicant may fully or partially satisfy the requirements of Section 8.68.030A
through the use of transfer credits created pursuant to Section 8.68.060. Credit certificates shall be
presented to the Community Development Director, who shall note at the time of project approval the
credit certificate by number. Credit certificates may only be used to satisfy the requirements for
Inclusionary Units for the income category (i.e., very low, low, or moderate) and number of
bedrooms for which they are issued.
E. Vvaiver of Requirements. 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
applicant demonstrates, and the City Council finds, that such alternate methods meet the purposes of
this Chapter.
8.68A50. General Procedures for Implementing Inclusionary Zoning Requirements
A. Agreements. Prior to the issuance of a building permit for an affordable unit, resale restrictions or
rental controls, or both, as the case maybe, shall be set forth in an agreement between the City and
the developer, in a form consistent with the City Council-adopted form agreement, which agreement
shall be recorded against the property containing the affordable units. The agreement shall be
executed by the City Manager, and its requirements shall run with the land and bind the applicant's
successors.
B. Rental Units; Occupancy; Annual Report. Agreements involving rental units shall require the
owner of the affordable units to ensure that the units are occupied by tenants whose monthly income
levels do not exceed moderate income levels and shall preclude tenants from subletting or subleasing
the unit. The agreement shall also require the owner of the affordable unit to submit an annual report
to the City Manager, in a format approved by the City. The report shall include, but not be limited to
the following information: an identification of the affordable units within the project; the monthly
rents charged and proposed to be charged; vacancy information for the prior year; and the monthly
income for tenants of each affordable unit throughout the prior year.
C. Ownership Units; Occupancy; City's Right of First Refusal. Agreements for ownership units
shall specify that the inclusionary units must be occupied by the owner or owners and may not be
leased or rented without the written approval of the City. The resale restrictions shall provide that in
the event of the sale of an affordable unit, the City shall have the right to purchase any affordable
owner-occupant unit at the maximum price that could be charged to an eligible household.
City of Dublin Zoning Ordinance 68-4 September, 1997
Revised January 2003
INCLUSIONARY ZONING REGUI..ATIONS
Chapter 8.68
D. Selection Criteria. No household shall be permitted to occupy a unit that is required under this
chapter to be affordable unless the City or its designee has approved the household's eligibility.
Eligible potential occupants of affordable units will be qualified on the basis of household income,
the median combined household income statistics for Alameda County published periodically by the
California Department of Housing and Community Development, all sources of household income
and assets, the relationship between household size and the size of available units, and any further
criteria required bylaw. The developer shall use an equitable selection method established in
conformance with the terms of this chapter. The selection criteria may not distinguish between adults
and children. Selection of qualified person should be based on priorities established using the point
system described below:
• Employed within the boundaries of the City of Dublin (3 points, one per household)
• Public Service employee working in the City of Dublin (1 additional point)
• Dublin resident (3 points, one per household)
• Seniors (1 point, one per household)
• Permanently disabled (1 point, one per household)
To qualify as a "Public Service Employee", the person shall be employed by a Public Agency.
To qualify as "Employed within the boundaries of the City of Dublin", the person shall have been
employed within the City of Dublin for at least six months.
To qualify as a "Dublin resident," the person shall have been a resident of the City of Dublin for at
least aone-year period prior to the eligibility determination.
8.68.060. Affordable Unit Credits.
A. Creation. Affordable unit credits maybe created by the City Council. One affordable unit credit
certificate shall be issued for each affordable unit constructed in excess of the number of affordable
units required to be constructed for the project by Section 8.68.030A. The certificate shall designate
a specific income category (i.e., very-low, low, or moderate income) and number of bedrooms for
which they are issued.
B. Ownership and use of credits. Affordable unit credit certificates are issued to and become the
possession of the project owner, who may then use them to satisfy the requirements of this chapter
for another project in the City. If a project owner proposes to sell credit certificates, the parties shall
first obtain the consent of the Community Development Director, who will document the transfer by
certificate number.
8.68.070. Incentives to Encourage On-Site Construction of Affordable Units. The City may, but shall
not be required to, offer incentives or financial assistance to encourage the on-site construction of
affordable units in excess of 12.5% of the total number of units in the project to the extent
resources for this purpose are available and approved for such use by the City Council or City
Manager. Such incentives may include, but shall not be limited to, the following:
City of Dublin Zoning Ordinance 68-5 September, 1997
Revised January 2003
INCLUSIONARY ZONING REGULATIONS
Chapter 8.66
A. Fee Deferral.
Development Processing Fees. The City.Manager may approve deferred payment of City
processing fees applicable to the review and processing of the project. The terms and
pa~nnent schedule of the deferred fees shall be subject to the approval of the City Manager.
2. Development Impact Fees. The City Council may authorize the deferred payment of
development impact fees applicable to the affordable units. Approval of this incentive
requires demonstration by the Applicant that the deferral increases the project's feasibility.
The applicant must provide appropriate security to ensure future payment of such fees.
B. Design Modifications. The City Council may approve design modifications to affordable units that
increase the feasibility of the construction of affordable units, including but not limited to, the
following:
Reduced lot size.
2. Reduced setback requirements.
Reduced open space requirements.
4. Reduced landscaping requirements.
Reduced interior or exterior amenities.
6. Reduction in parking requirements.
Height restriction waivers.
5.68.080. Inclusionary Zoning In Lieu Fee Fund. In Lieu Fees shall be depgsited into a fund known as
the ``Inclusionary Zoning In Lieu Fees Fund" ("Fund").
A. Use. All monies in the Fund, together with any interest earnings on such monies Less reasonable
administrative charges, shall be used or committed to use by the City for the purpose of providing
very-low, low-, and moderate-income ownership or rental housing in the City of Dublin.
B. Annual report. The City Manager shall prepare an annual report to the City Council identifying the
balance of monies in the Fund and the affordable units provided and any monies committed to
providing very-low-, low-, and moderate-income housing. The annual report shall also include a
review of administrative charges.
8.68.090. Violations. It shall be unlawful for any person, firm, corporation, partnership or other entity that
is subject to this ordinance pursuant to section 8.68.030A to violate any provision or to fail to
comply with any of the requirements of this chapter. A violation of any of the provisions or
failing to comply with any of the requirements of this Chapter shall constitute a misdemeanor;
except that notwithstanding any other provisions of this Code, any such violation constituting a
misdemeanor under this chapter, may in the discretion of the enforcing authority, be charged and
prosecuted as an infraction. Any person convicted of an infraction under the provisions of this
Code shall be punishable as provided by the Government Code of the State of California.
City of Dublin Zoning Ordinance 68-6 September, 1937
.Revised January 2003
INCLUSIONARY ZONING REGULATIONS
Chapter 8.68
8.68.100. Enforcement.
A. General. The City Manager shall enforce this chapter, and its provisions shall be binding on all
agents, successors, and assigns of an applicant. The City Manager may suspend or revoke any
building permit or approval upon finding a violation of any provision of this chapter. No land-use
approval, building permit; or certificate of occupancy shall be issued for any residential development
unless exempt from or in compliance with this chapter. The City may institute any appropriate legal
actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions
to revoke, deny, or suspend any permit or development approval.
B. Excessive rents/legal action. If the City Manager determines that rents in excess of those allowed
by operation of this chapter have been charged to a tenant residing in an affordable unit, the City may
take appropriate legal action to recover; and the project owner shall be obligated to pay to the tenant,
or to the City in the event the tenant cannot be located, any excess rents charged.
8.68.110. Appeals. Decisions of the City Manager under this Chapter maybe appealed as provided in
Chapter 8.136.
City of Dublin Zoning Ordinance 68-7 September, 1397
Revised January 20f13
CITY OF DUBLIN
TABLE OF CONTENTS
INTRODUCTION
1
1 THE INCLUSIONARY ZONING PROCESS 2
1.1 Determining the Number and Size of Units Required 2
1.2 How to Calculate the Inclusionary Unit Obligation 2
1.3 How to Calculate How Many Units Must Be Constructed and How Many Units
Will be Subject to the InLieu Fee 3
1.4 How to Calculate the Fee That May Be Paid in-lieu of Unit Construction 3
1.~ How to Calculate How Many Inclusionary Units Must Be Provided at Each of the
Three Income Levels 4
1.6 How to Determine the Unit Sizes and bedroom requirements for Inclusionary
Units 5
1.7 How to Determine the Location of Inclusionary Units Within the Development 6
2 AFFORDABLE HOUSING AGREEMENT
2.1 What is an Affordable Housing Agreement
7
7
3 FOR SALE PROJECTS 8
3.1 The Marketing Plan 8
3.2 Applications for Ownership Units 8
3.3 Screening Based on Household Size 10
3.4 Screening Based on Priority Preferences 11
3.~ Buyer Selection Process 12
4 ESTABLISHING SALES PRICE AND LOAN REQUIREMENTS FOR
OWNERSHIP UNITS 13
4.1 Sales Price of Affordable Units 13
i
4.2 Acceptable Home Loan Products for Inclusionary Zoning Units 15
4.3 Closing of Sale and Escrow 16
5 RENTAL PROJECTS 17
5.1 Preparation and Approval of Management Plan 17
5.2 Establishing Unit Rents for Inclusionary Units 17
5.3 Screening Based on Household Size 17
~.4 Screening Based on Priority Preferences 18
5.5 Occupant Selection for Rental Developments 19
~.6 Calculating Affordable Rents 20
5.7 Monitoring Rents 21
ii
LIST OF EXHIBITS
Exhibit 1 Resale Restriction Agreement and Option to Purchase
Exhibit 2 Sample Inclusionary Unit Application packet
Exhibit 3 Sample Application to Purchase Inclusionary Unit
Exhibit 4 Selection Preference Verification Letter
Exhibit ~ Excel Spreadsheet to Calculate Ownership Sale Prices
Exhibit 6 State of California Housing and Community Development
Department Income for Guidelines (Example 2004)
Exhibit 7 Current Alameda County Housing Authority Utility Allowance
Sheet
Exhibit 8 Below Market Rate Unit Monitoring Sheet
iii
LAYPERSON'S GUIDE TO THE INCLUSIONARY ZONING ORDINANCE
REGULATIONS
(Provision of For-Sale and Rental Inclusionary Units (below market rate units)
Introduction
This document is the Layperson's Guide to the City's Inclusionary Zoning Ordinance
Regulations ("the Regulations"), which are set forth in the City's Municipal Code at
Chapter 8.68. The City Council's purpose in adopting these Regulations is to increase
the diversity of housing prices/rents in the community and ensure that the range of
prices/rents continue over time.
The purpose of this Guide is to assist the layperson in interpreting these Regulations early
in the development process so that development projects are sensitively designed from
the beginning.
Development projects of 20 residential units or more must comply with the Regulations.
In general, the Regulations require that 12.x% of the units constructed in a project be
restricted in occupancy and in sale price or rent charged. Such restricted units are referred
to as Inclusionary Units or Below-Market-Rate (BMR) units. (Section 8.68.030.A)
Of these 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)
Moderate-income households, low-income households, and very low-income households
are defined as households that have an income level, respectively, of 120% to 80%, 80%
to 50%, and less than 50% of the median income for the County of Alameda adjusted for
household size. (Section 8.68.030.D.) The State of California Housing Community
Development Department (HCD) annually publishes income limits for each County. The
City uses the HCD income limits for Alameda County, which are available on the HCD
website (www.hcd.ca.gov), for setting income limits for the Inclusionary Zoning
Regulations (Section 8.68.030.D).
While the Regulations require that 12.5% of the units in the project be Inclusionary Units,
they permit the developer to meet 40% of this obligation by paying a fee in-lieu of
construction. Thus, there is a "must-build'' requirement of 7.5% of the units in the
project, and the obligation with respect to the remaining 5% may be satisfied by the
payment of a fee in-lieu of construction. Inclusionary 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 Inclusionary Units:
Be constructed concurrently with the market-rate units in the project
Have a similar range of bedrooms to the market-rate units in the project
Not be distinguished by design or materials from the market-rate units in the
project
May 18, 2004
• Be reasonably dispersed throughout the project.
The Regulations also contain other means of complying with the obligations it imposes.
Those alternatives are set forth in Section 8.68.040 of the Dublin Municipal Code.
THE INCLUSIONARY ZONING PROCESS
1.1 Determining the Number and Size of Units Re uired
Prior to submitting a preapplication to the City for projects that include residential units
of 20 or more, the developer should begin thinking about how the Inclusionary Units will
be built into the design of the project. Housing Staff is available to discuss options for
meeting the Inclusionary Requirements with the developer as part of the initial project
review. For example, if a Developer intends to build only the minimum number of
Inclusionary Units that the Regulations require it to build, Housing Staff can
preliminarily indicate for the developer's planning purposes the number of Inclusionary
Units the developer is required to build, the income levels and sizes of the required
Inclusionary Units, and the amount of the in-lieu fee under the then-current fee schedule.
After a project application is submitted to the Community Development Department for
review, a Planning Review Committee Meeting is generally held. In this meeting City
Staff and interested agencies involved in the development process review the project 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 Inclusionary Zoning Obligations of the
project as preliminarily proposed. A copy of this letter will be directed to the City
Planner responsible for the project as well. The purpose of this letter is to provide the
developer information on Inclusionary obligations as early as possible in the development
process. The City recognizes that the project is likely to evolve over time and that the
project will likely change prior to obtaining City entitlements. However, this information
is provided early in the process as a service to the developer for their planning purposes.
The actual Inclusionary Zoning Obligations will be formalized in an Affordable Housing
Agreement (AHA) between the City and the Developer, prior to recordation of a final
map for the development.
1.2 How to Calculate the Inclusionary Unit Obligation
The Regulations state that 12.5% of the total number of units within an applicable
development project be Inclusionary Units (Section 8.68.030.A.). In making this
calculation, any decimal fraction less than or equal to 0.50 is disregarded, and a decimal
fraction greater than 0.~0 is construed as a unit. Two examples of how the Inclusionary
Unit Obligation for a particular development are shown in Figure 1.
May 18, 2004 2
FIGURE 1
Example 1: The developer proposes a 224-unit subdivision. 12.5% percent of 224 is
28. The Inclusionary Obligation is therefore 28 units.
Example 2: The developer proposes a 3 l 6-unit subdivision. 12.5% percent of 316 is
39.5. Rounding the decimal fraction down, the Inclusionary Obligation is therefore
39 units.
1.3 How to Calculate How Manv Units Must Be Constructed and How Many Units
Will be Subiect to the In-Lieu Fee
The Regulations permit the developer to pay a fee in-lieu of constructing up to 40% of
the Inclusionary Unit Obligation. When the calculation of the fee results is a decimal
fraction, the rounding rules contained in Section 8.68.030A are used.
Using the same examples from Figure I, Figure 2 illustrates the calculation of the number
of Inclusionary Units that will be subject to the fee.
FIGURE 2
Example 1: The developer proposes a 224-unit subdivision, for which the
Inclusionary Obligation is 28 units. 40% of 28 units =11.2 units. Disregarding the
fraction, the developer may pay fees in-lieu of construction on the remaining I 1
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. 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.
1.4 How to Calculate the Fee That May Be Paid in-lieu of Unit Construction
The amount of the in-lieu fee is set by resolution of the City Council. Resolution No. 56-
02 establishes that the in-lieu fee per 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 March 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,
2003 is $79,754 per Inclusionary Unit.
May I8, 2004
THE ENTIRE IN-LIEU FEE AMOUNT FOR THE PROJECT IS DUE AND PAYABLE
AT ISSUANCE OF FIRST BUILDING PERMIT IN THE PROJECT.
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. Fees may be paid in
lieu of construction on 11 units. 11 X $79,754 = $877,294, which is the amount of
the in-lieu fee for the project. This entire amount would be due prior to issuance of
first building permit.
Example 2: The developer proposes a 316-unit subdivision. Fees may be paid in
lieu of construction on 16 units. 16 X $79,754 = $1,276,064, which is the amount of
the in-lieu fee for the project. This entire amount would be due prior to issuance of
first building permit.
1.5 How to Calculate How Many Inclusionarv Units Must Be Provided at Each of
the Three Income Levels
'The Regulations (Section 8.68.030.B) state that the Inclusionary Units included in each
development project shall be allocated to households in the following manner.
Very low•-income households 30%
Low-income households 20%
Moderate-income households 50%
100%
Once again, when the result of the allocation calculations includes a decimal fraction, the
rounding rules contained in Section 8.68.030.A are used. The Regulations indicate that,
where the allocation 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.
May 18, 2004 4
FIGURE 4
The project includes 200 units. The Inclusionary Unit obligation is, therefore, 25
units. The developer chooses to pay the in-lieu fee for 40% of the units, which
equals 10 units. The developer's must-build requirement (7.5%) is, therefore, 15
units.
• 50% of those I S units would need to be restricted for moderate-income
households, 50% of 15 = 7.5
• 20% of those I S units would need to be restricted for low-income
households, 20% of 15 = 3
• 30% of those 1 S 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:
• 7moderate-income units
• 3 low-income units
• 5 very low-income units
i.6 How to Determine the Unit Sizes and bedroom requirements for Inclusionary
Units
The Regulations require that the same proportion of bedrooms be reflected in the
Inclusionary 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 Inclusionary Units that must be
provided at each unit size.
May 18, 2004 5
FIGURE 5
To determine bedroom requirement:
The developer proposes a 200-unit condominium project and is paying in-lieu
fees for 40%. The must build obligation is 15 units.
The project includes:
• 50 one-bedroom units (25 % of total)
• 100 two-bedroom units (50% of total)
• SOthree-bedroom units (25% of total)
Therefore:
• 25% of the Inclusionary Units are to be one-bedrooms
• JO% of the Inclusionary Units are to be two-bedrooms
• 25% of the Inclusionary 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 = 1.2~ one-bedroom units
• JO% of 5 = 2.5 two-bedroom units
• 25% of 5 = l .25 three-bedroom units
Therefore, the development would be required to provide:
• lone-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.
1.7 How to Determine the Location of Inclusionary Units Within the Development
Section 8.68.030.E states that "All affordable units shall be reasonably dispersed
throughout the project." The purpose of this provision is to avoid concentration of the
Inclusionary Units in a particular location within a development, effectively segregating
them from the rest of the development project. 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 make a determination based on Staff recommendation
if this requirement has been met.
May 18, 2004 6
2 AFFORDABLE HOUSING AGREEMENT
The execution of an Affordable Housing Agreement ("Agreement") is required under
Section 8.68.0 of the Dublin Municipal Code. This requirement is generally repeated in
the Conditions of Approval for the Site Development Review or Tentative Map for the
development project for the developer's convenience.
2.1 What is an Affordable Housing Agreement
This agreement contains the legal requirements of the residential project for compliance
with the Inclusionary Zoning Ordinance regulations. This Agreement runs with the land
and survives transfer or sale of the land to another developer. The Agreement is for a
period of 55 years. If a project is not built and new entitlements are sought for a
property, a new Affordable Housing Agreement would be required, which would replace
the existing Agreement.
Among other things, the Agreement must contain the following items:
1. A description of how' the developer will comply with its Inclusionary Obligation
(whether through unit construction and/or partial payment);
2. An indication of whether the Inclusionary Units will be for-sale or rental units;
3. A requirement that the developer construct the number of Inclusionary Units
required to be constructed in each income category;
4. A requirement that the developer construct Inclusionary Units at particular unit
sizes (i.e., number of bedrooms) in each income category;
~. Depending on the nature of the development, requirements regarding the timing
of construction of the units to ensure that the units are constructed concurrently
with the development of the project as a v~rhole;
6. If the development proposes for-sale units, a requirement that the developer
prepare and obtain City approval of a Marketing Plan, prior to issuance of any
building permits in the project, indicating efforts to be made by the developer to
sell or rent the Inclusionary Units. This requirement is discussed in additional
detail in Section 3.1;
If the development proposes for-sale units, it is required that the developer ensure
that the purchaser of an Inclusionary Unit execute a resale agreement. A copy of
the form resale agreement is attached as Exhibit No. 1; and
If the development proposes rental units, the owner shall provide a Management
Plan and prepare the Annual Report required by Section 8.68.OSOB. The
Management Plan documents how the management firm markets the Inclusionary
Units. how the firm maintains a waiting list for the Inclusionary units, how the
management firm verifies the household income of applicants for the Inclusionary
Units, both initially and annually, provides information on the units to be made
available for the City of Dublin to use on the City website, provides a contact
telephone number and also identifies those responsible for contact and
communication with the City of Dublin. Upon approval of the City Staff, the
May 18, ?004 7
Management Plan may be produced and submitted after the Affordable Housing
Agreement is executed, but prior to the issuance of building permits.
3 FOR SALE PROJECTS
After the Affordable Housing Agreement is executed, and prior to the sale of any
affordable units in the project there is a process that must be followed that includes
preparation of a Marketing Plan, screening, ranking, qualifying and providing
documentation to Housing Staff for final verification of eligibility for an Inclusionary
Unit.
3.1 The Marketing Plan
Prior to the issuance of building permits for any for-sale Inclusionary Units, the
developer shall submit a Marketing Plan for the City's approval. The Marketing Plan
must contain the following:
A one-page narrative summary suitable for advertising the availability of the
Inclusionary Units on the City web page and other locations, including a
telephone number for interested applicants to call for additional information;
2. An explanation of the application process to be used. The Regulations require
that applicants be ranked based on preferences set forth in the ordinance (Section
8.68.050.D);
The developer must indicate the process by which it intends to accept applications
and rank applicant households. In order to establish an eligibility list, it will be
necessary that application deadlines be established for each phase of a
development that includes Inclusionary Units;
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; and
A requirement that the developer's sales staff meet with the City's Housing Staff
to receive training on the sale selection process and application. (See Exhibit
No. 2)
3.2 Applications for Ownership Units
Each applicant shall be required to complete an application. Exhibit No 3 is a sample
application for the purchase of an Inclusionary Unit.
An applicant receives:
• Explanation of the process used in occupant selection;
• Eligibility requirements for interested buyers;
May 18, ?004
• The income levels for the various units;
• The City preferences in occupant selection as established in the Regulations
(Section 8.68.OSO.D);
• Any floor plans for the offered units;
• The City's "Application for Inclusionary Unit"; and
• The Disclosure Statement from the Resale Agreement.
It is important that the developer's sales staff be able to understand the application
process. Pursuant to the Marketing Plan, the Housing Staff will have provided the
developer's sales staff with training so that they understand and can explain the
application process. The developer's sales staff should be able to explain the resale
restrictions that are contained in the Resale Agreement that each buyer would need to
execute.
The developer may rank applicants based on the criteria that are set forth in their
Marketing Plan. For example, the developer might only accept those applicants that are
mortgage pre-qualified by a lender or other methods. Once the applicants are ranked, the
developer must use this list and offer the units to the highest ranked household as long as
these households are able to verify that they are in the correct income category and are
able to obtain a loan for the unit. (Acceptable Home Loan Products are discussed in
Section 4.2). The sale prices of the units will vary depending on the income of each
prospective household offered a unit.
Figure 6 illustrates how the selection process works. (See following page)
May 18, ?004 9
FIGURE 6
Step 1. A developer decides to accept Inclusionary Unit applications for a
particular period of time and advertises; as set forth in the Marketing Plan.
Step 2. The developer makes application packets available to all who request them.
The developer will also provide application packets to the City for distribution at
City Hall and the Library.
Step 3. The applicant response period ends. The developer will. sort and establish
a list of all qualified applicants within one month followin cg losing of applicant
list.
This initial screening will qualify applicants based on low, very low or
moderate income as the case may be for the particular unit) and whether
the household is the appropriate size for the particular unit. If the developer
has established in the Marketing Plan that they will accept only mortgage
pre-qualified applicants, this will be reflected in the list as well.
Step 4. All qualified applicants within each income category will be ranked by the
preference categories in the Regulations. Those applicants with the highest number
of points are at the top of the list and others follow in descending order based on
the number of points given.
Step S. Units are offered to applicants beginning at the top of the list.
The developer may not pass over an applicant higher on a list in favor of
another because of a higher income. Applicants are to be taken in the order
ranked. The developer may only exclude ranked applicants because the
applicants were not successful in obtaining financing or were not able to
demonstrate their qualifying household income.
Step 6. If the applicant accepts the unit, the applicant's file, ready to enter into
escrow, is delivered to the City of Dublin Housing Staff for review and
confirmation.
Step 7. Applicant's files are returned to developer and escrow may begin for each
qualified applicant for the unit.
3.3 Screening Based on Household Size
For both rental and for-sale units, household size for each Inclusionary Unit may not
exceed two people for each bedroom and may not be less than one person per bedroom,
unless otherwise prohibited by special financing sources such as the California
Multifamily Housing Program. Selection of applicants will be limited to those
households that match the number of bedrooms in the units being constructed for sale.
The following household sizes for various units sizes are used:
May I8, 2004 10
One-bedroom units 1-2 people households
Two-bedroom units 2-4 people households
Three-bedroom units 3-6 people households
Four-bedroom units 4-8 people households
3.4 Screening Based on Priority Preferences
After being screened for initial eligibility based on household income and household size,
applicant households shall. be ranked and sorted based on the number of points the
applicant receives under the priorities set forth in the Regulations at Section 8.68.OSO.D.
If priority categories are checked on the application form, the developer will be required
to request verification of that claimed preference from the applicant and the form letter
requesting verification attached as Exhibit No. 4 may be used for this purpose. This
verification may be requested at the initial application or at a later date, after the
developer has performed a preliminary review of all applicants.
The point system set out in the Regulations (see Table 1) provides preferences to those
persons who live in Dublin, work in Dublin, are public-service employees in Dublin, are
seniors, and are permanently disabled. The Regulations provide that even if two persons
in the household may be eligible to receive priority points, 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 points for being employed in Dublin. Similarly, if two seniors
make up a household, they would be entitled to only 1 point.
Table 1: The Priority Point System
Priority Points
Employed in Dublin 3 points
Public service employee in Dublin 1 additional
point
Resides in Dublin 3 points
Seniors (62 and over) ]point
Permanently disabled 1 point
Definitions of the various priority categories are set forth in the Regulations, Section
8.68.050.D as follows:
• To qualify as employed in Dublin the person shall have been employed within the
City of Dublin for at least six months.
• To qualify as a public service employee the person shall be employed by a public
agency.
• To qualify as a Dublin resident, the person shall have been a resident of the City
of Dublin for at least aone-year period prior to the eligibility determination
Where definitions are not explicitly stated in the Regulations, the City has developed
definitions:
• A senior is defined as a person 62 years or older for the purpose of qualifying for
preference points.
May 18, 2004 11
• To qualify for the permanently disabled point, the person must be able to provide
written verification from a physician or show receipt of SSI.
Figure 7 demonstrates how the preference points are calculated.
FIGURE 7
Example 1: An applicant for an Inclusionary Unit both lives in Dublin (for at least
one year) and works in Dublin (for at least 6 months).
This individual will receive the following points:
Lives in Dublin 3 points
Works in Dublin 3 points
Total number of points 6 points
Example 2: An applicant for an Inclusionary 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 an Inclusionary 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 ]point
Lives in Dublin 3 pOlnts
Total number of points 4 points
3.5 Buyer Selection Process
The developer locates and finally selects purchasers pursuant to the Inclusionary Zoning
Regulations. The restricted units are to be made available to very low, low, and moderate
income households. The developer must verify that the prospective occupants' income
is/are appropriate for those categories. This verification must consist of evidence based
on some third party source such as income tax returns or W-2 statements. Proof that the
developer has requested and obtained this verification from prospective occupants will be
requested by the City Housing Staff prior to final approval of occupancy in any
Inclusionary unit.
The selection process requires the developer to use the following process:
May 18, 2004 12
Collect applications for a given time period. An initial qualification is made
based on household size (See Section 3.1) and household income (see Section
4.1).
Sort and rant: the applications based on the Inclusionary Zoning Regulations'
preferences for occupant selection. Complete the ranking process and produce a
list with those applicants with the most City of Dublin preference points at the top
followed by all other applicants in descending order based on number of points
received. If more than one applicant receives the same number of City preference
points or if some applicants receive no points, the developer shall use other
objective criteria in occupant selection. The criteria that the developer proposes to
use shall be submitted to City Staff ahead of time in the Marketing Plan. For
example, the developer may date stamp all applicant applications and, in the case
of a tie, will offer the unit to that applicant that applied first, or the developer may
choose to hold a lottery to break ties.
• The ranked list must be completed within 30 days of the application deadline.
• Offer the units to applicants based on the list established above, offering first to
those applicants with the most points, then in descending order.
• Provide application with income verification, executed Resale Agreement and
final sale price offered as well as loan product to be used to City for final
determination of eligibility. If all needed documents are included, the City will
return to developer or agent within a week if possible.
4 ESTABLISHING SALES PRICE AND LOAN REQUIREMENTS FOR
OWNERSHIP UNITS
4.1 Sales Price of Affordable Units
The Inclusionary Ordinance (Section 8.68.020A.2) states that the price at which the
Inclusionary Units are to be offered is the price that would allow an applicant in the
pertinent category to pay no more than 35% of their income toward housing expenses.
This requires that each and every qualified buyer pay no more than 35% of his or her
individual household income toward housing expenses.
As described below, a number of assumptions are used to calculate the maximum sale
price for inclusionary units. An individual homebuyer's actual expenses may differ from
the assumptions. For example, the actual interest rate may be lower if the homebuyer
obtains a variable interest rate mortgage. In addition, the actual downpayment may be
more or less than the assumed 5%, and the mortgage term may be less than 30 years.
The assumptions are used for the purpose of establishing a standardized method of
arriving at a sales price, and are not intended to limit the choices that a buyer may utilize
or to limit the mortgage products or downpayments that a developer may accept.
May 18, 2004 13
Following lending industry standards, housing expenses consist of "PITI," or principal,
interest, taxes and insurance. The City of Dublin also includes Homeowner Association
dues as a housing expense.
The maximum sale price is the price that will allow the homebuyer to purchase an
inclusionary unit by paying no more than 35% of their household income for PITI and
Homeowners Association Dues, based upon the following assumptions:
• Downpayment (For the purpose of calculating the sale price of a home or
condominium, it is assumed that the prospective buyer will make a 5%
downpayment. The developer may accept alternate amounts for actual
downpavments.)
• Interest (Based on the weekly 30-year fixed rate published by the Federal Home
Loan Mortgage Corporation, (703) 903-2446. The actual interest rate may vary.)
• Mortgage Term (A 30-year term is assumed. The actual term may differ.)
• Taxes (Calculated using 1.25% of the estimated sale price of the unit.)
• Insurance (Includes Private Mortgage Insurance (PMI), if any, and homeowners
hazard insurance.
PMI -For the purposes of calculating sale price. PMI may be calculated at 2% of the
estimated loan, or the amount actually required by a given loan product being offered.
o Homeowner's Insurance -The cost of homeowner's insurance may be
calculated based on information researched by each developer, as to what an
actual policy may cost a new homeowner. (If the homeowner insurance is
covered by a homeowner association structure, homeowners insurance need
not be included, but it must be documented that the HOA will provide
adequate insurance.)
Homeowners' association dues, if any.
The City has an Excel spreadsheet, available for public use, which can assist in the
calculation of the final sales price, based on the listed criteria and housing expenses
(Exhibit No 5). Each Inclusionary Unit may sell at a different sale price, depending on
the household income of the selected household.
Figure 8 shows how the sales price is calculated (see following page).
May 18, 2004 14
FIGURE 8
This example is of afour-person household qualifying to purchase atwo-bedroom unit. This
household's gross income is $89,000.
The maximum income for afour-person $98,650
moderate income household (using State HCD
2004 income limits)
Household's annual income (hypothetical) $89,000
Monthly income available for housing $2,595.83
expenses:
(3J% of $89,000 = $31,150; $31,150 divided
by 12 = $2,595.83)
Developer wishes to sell home at: $300,000
Down Payment (for calculation of sales price $ ] x.000
only - 5%)
Mortgage Required $ 285,000
Calculation
Monthly mortgage payment (based on $1,708.72
$285,000, 30-year fixed at 6% interest)
Other Monthly Housing Expenses:
• Private Mortgage Insurance $ 191.43
• Property Tax (1.2~% of sales price) $ 312.50
• Homeowners Insurance (based on $ 166.67
demonstrated market rates)
• Homeowners Association Dues $ 200.00
Total monthly expenses: $2,589.75
$2,589.75 is less than the buyer's monthly income available for housing expenses of $2,595.83,
therefore. the sales price is in accordance with the Inclusionary Zoning Ordinance requirements.
4.2 Acceptable Home Loan Products for Inclusionary Zoning Units
The City reserves the right to reject certain mortgage products because of the stronger
likelihood that some products could result in loss of the Inclusionary Unit due to a
foreclosure.
The following is anon-exclusive list of the loan products that are acceptable to the City.
The list is not intended to be exhaustive and other loan products may be evaluated upon
request.
97-100% Loan to Value Loans
May 18, 2004 15
2. 90-97% Loan to Value Loans
3. Up to 95% Loan to Value Loans
4. Adjustable Rate Mortgages
• Two-Step Mortgage (adjusts only once -depends on rate adjustment)
• Six Month ARM (Depending on initial interest rate, adjustment caps and
lifetime caps)
• One Year ARM (Depending on initial interest rate, adjustment caps and
lifetime caps)
• Fixed-Period Adjustment Rate Mortgages (Depending on adjustment rates,
caps and lifetime caps). In evaluating ARMS the City will consider the
effect of the mortgage provisions on the ability of the buyer to make
payments
• Pledged-Assets Mortgages
• Virtually all CaIHFA products available to First Time Homebuyers in
California
4.3 Closing of Sale and Escrow
Once the Inclusionary Unit buyer has been selected and price calculated, the necessary
documents must be completed and buyer fully qualified for the mortgage. When the
buyer is fully qualified and ready to enter into an agreement to purchase, the qualifying
packet is sent to the City of Dublin Housing Staff for review. The documents necessary
for Housing Staff review are the following:
1. Completed and Signed Application for Inclusionary Unit;
2. Completed and signed loan application;
3. Completed Truth in Lending Statement;
4. Complete Income Verification information on household;
~. Complete information on unit offered to prospective buyer, including unit size,
number of bedrooms and additional amenities;
6. Completed, executed, and notarized City of Dublin Resale Restriction Agreement
and Option to Purchase; and
7. If claiming an Inclusionary Preference, verification of that preference (covered in
Section 3.0).
City Staff will review the packet for completeness and compliance with the Inclusionary
Zoning Ordinance. The Application for Inclusionary Unit will be removed from the
packet and retained as part of City records. A copy of the income verification for the
household will be made and retained by the City as proof of the buyer's qualification to
purchase the Inclusionary Unit. The original signed Resale Agreement will also be
retained by the City and a copy returned to the lender. If the City receives a completed
packet, the review will be completed and file returned to developer within one week of
the submittal if possible. The Resale Agreement along with a Request for Notice of
Default will be recorded by the City of Dublin, on closing of each sale.
May 18, 2004 16
IF THE PACKET IS INCOMPLETE, THE SALE CANNOT PROCEED UNTIL
ALL NEEDED DOCUMENTS ARE PROVIDED.
The documents will be returned to the lender, with a copy of the City's Escrow
Instructions for the recording of the Resale Agreement. City Staff will contact the lender
to establish whom the escrow and/or title firm is that will be in charge of closing the sale.
City Staff will send the original Resale Agreement to that firm with the Escrow
Instructions for recordation on closing of the sale.
5 RENTAL PROJECTS
After the Affordable Housing Agreement is executed, and prior to the rental of any units
in the project there is a process that must be followed that includes preparation of a
Management Plan, screening, ranking and qualifying of eligible tenants.
5.1 Preparation and Approval of Management Plan
The Management Plan will outline for the City how the management entity plans to
recruit and maintain occupancy of the Inclusionary Units. The document will also
provide a brief history of the management entity and previous experience as well as list
other rental complexes that are under their management.
5.2 Establishing Unit Rents for Inclusionarv Units
The Inclusionary Ordinance (8.68.020A.1) states that rents for Inclusionary Units may
not exceed 30% of the maximum income level for very low, low and moderate income.
The City of Dublin uses the State of California Housing and Community Development
Income Guidelines by County. The Income Guidelines for 2004 are attached as Exhibit
No 6.
5.3 Screening Based on Household Size
For both rental and for-sale units, household size for each Inclusionary Unit may not
exceed two people for each bedroom and may not be less than one person per bedroom,
unless otherwise prohibited by special financing sources such as the California
Multifamily Housing Program. Selection of applicants will be limited to those
households that match the number of bedrooms in the units being constructed for sale.
The following units household sizes for various units sizes are used:
One-bedroom units
Two-bedroom units
Three-bedroom units
Four-bedroom units
1-2 people households
2-4 people households
3-6 people households
4-8 people households
May 18, 2004 17
5.4 Screening Based on Priority Preferences
After being screened for initial eligibility based on household income and household size,
applicant households shall be ranked and sorted based on the number of points the
applicant receives under the priorities set forth in the Regulations at Section 8.68.OSOD.
If priority categories are checked on the application form, the developer will be required
to request verification of that claimed preference from the applicant and the form letter
requesting verification attached as Exhibit No. 4 may be used for this purpose. This
verification may be requested at the initial application or at a later date, after the
developer has performed a preliminary review of all applicants.
The point system set out in the Regulations (see Table 1) provides preferences to those
that live in Dublin, that work in Dublin, that are public-service employees in Dublin, that
are seniors, and that are permanently disabled. The Regulations provide that even if two
persons in the household may be eligible to receive priority points, 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 points for being employed in Dublin. Similarly, if two
seniors make up a household, they would be entitled to only 1 point.
Table 2: The Priority Point System
Priority
Employed in Dublin
Public service employee in Dublin
Resides in Dublin
Seniors (62 and over)
Points
3 points
1 additional point
3 points
1 point
Permanently disabled
1 point
Definitions of the various priority categories are set forth in the Regulations, Section
8.68.OSO.D.
• To qualify as employed in Dublin the person shall have been employed within the
City of Dublin for at least six months.
• To qualify as a public service employee the person shall be employed by a public
agency.
• To qualify as a Dublin resident, the person shall have been a resident of the City
of Dublin for at least aone-year period prior to the eligibility determination.
Where definitions are not explicitly stated in the Regulations, the City has developed
definitions:
• A senior is defined as a person 62 years 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.
Figure 9 demonstrates how the preference points are calculated.
May 18, 2004 18
FIGURE 9
Example 1: An applicant for an Inclusionary Unit lives in Dublin (for at least one
year) and works in Dublin (for at least 6 months).
This individual will receive the following points:
Lives in Dublin 3 points
Works in Dublin 3_points
Total number of points 6 points
Example 2: An applicant for an Inclusionary 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 an Inclusionary 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 points
Total number of points 4 points
5.5 Occupant Selection for Rental Developments
In rental developments, the management firm (which could be the owner or builder) is
the entity that will be responsible for occupant selection and documentation.
The Management Plan for the development will outline how tenants will be selected and
prioritized to comply with the Regulations' preferences. Each applicant shall complete
the Application for Inclusionary Unit and return it to the management company.
Exhibit No 3 is a copy of the Application for Inclusionary Unit.
The management company's leasing staff should be trained to understand and explain the
Affordable Housing Application and process to applicants. To lease the Inclusionary
Units the developer/management company will need to do the following:
Collect applications for a given time period. An initial qualification is made
based on household size (See Section 5.3) and household income (see State of
California, Housing and Community Development Department website,
wwvw.hcd.ca.~ov);
May 18, 2004 19
Sort and rank the applications based on the Inclusionary Zoning Regulations'
preferences for occupant selection. Complete the ranking process and produce a
list with those applicants with the most City of Dublin preference points at the top
followed by all other applicants in descending order based on number of points
received. If more than one applicant receives the same number of City preference
points or if some applicants receive no points the developer shall use other
objective criteria in occupant selection. The criteria that the developer will use in
the event of a tie shall be submitted to City Staff ahead of time in the
Management Plan. For example, the developer may date stamp all applicant
applications and, in the event of a tie, will offer the unit to that applicant that
applied first, or the developer may choose to hold a lottery to break ties. The
ranked list must be completed within 30 days of the application deadline;
Offer the units to applicants based on the list established above, offering first to
those applicants with the most points, then in descending order; and
• Maintain application with income verification for City to review at onsite
monitoring.
If a project is financed through a program that has stricter occupant selection or occupant
documentation requirements than the City, the City may elect to defer to those
requirements and not require additional documentation. The City will require tenant
income verification and restriction of the units for 55 years for the three income
categories; however, the management firm may send to the City copies of the
documentation that is required and produced for other monitoring agencies.
5.6 Calculating Affordable Rents
Affordable rents are calculated by multiplying the annual household income of the
income-qualifying household by 0.30, then dividing by 12. The result is the maximum
monthly rent for the Inclusionary Unit if the tenant pays no utilities.
The Inclusionary Zoning Ordinance Regulations state that maximum rents cannot exceed
30% of household income for the maximum income in a given category. Following
rental programs such as HUD's Section 8 or the Tax Credit Allocation Committee rental
tables, reduction in rental amounts are taken if tenants are required to pay utilities.
If tenants pay for utilities, the maximum rent must be reduced to account for the cost of
utilities (a utility allowance). Utilities include gas, electric, water, and trash disposal. If
tenants are required to provide their own stove, refrigerator, or washer and dryer, those
expenses are considered utilities, and the maximum rent is further reduced. If the tenant
May 18, 2004 20
is responsible for any of the above, an allowance reduces the rent by the amounts listed in
Exhibit No. 7 .
Figure 10 illustrates the calculation of maximum rent.
FIGURE 10
Example l: A developer provides 2 bedroom rental units for moderate-income households.
The developer establishes a tenant eligibility list and for moderate-income the first
household on the list for atwo-bedroom unit is a family of four with an annual income of
$91,900. Thirty percent of $91,900 is $27,570, and 1/12 of $27,570 is $2297.50. This
would be the maximum monthly rent.
The maximum rent could be charged to this household if the household were not responsible for
any utilities.
Example 2: Following on Example 1, the maximum rent for the moderate-income unit for
a household of four was $2297.50, but this development requires tenants to pay electric, gas
and water and water heating (gas) bills. The heating and cooking are both gas. The
management pays for trash, provides the refrigerator and the stove.
Using the current Utility Allowance in Exhibit 7, the following amounts are to be deducted
from the maximum monthly rent.
$2,297.50
gas heating (2 bdrm) $ 12.00
gas cooking " $ 2.00
gas water heating " " $ 10.00
water $ 14.00
$2.259.50
The rent that may be charge to this household could not exceed $2,259.50 monthly.
5.7 Monitoring Rents
The Inclusionary Ordinance (Section 8.68.OSO.B) states that the management entity for
the development will provide the City of Dublin an Annual Report (Exhibit No 8). The
annual report will include the following information:
1. Income of BMR tenant households, reviewed annually;
2. Identification of all Inclusionary Units (very low-, low- and moderate-
income units) within the development;
3. Monthly rents charged to all BMR tenant households; and
4. Vacancy of Inclusionary Units during the previous year.
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.
May 18, 2004 21
This report will be due annually on October 31st. 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.
G:\PA#`,200P,01-038 Inclusionary ZOA1Inclusionary Guidelinesllnclusionary Guidelines - Fina] on 5-18-04.doc
May 18, 2004 22
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
CITY OF DUBLIN
100 Civic Plaza
Dublin, California 94561
Attn: City Clerk
To be recorded without fee.
(Gov. Code, §§ 6103 and 27383.)
(Space Above This Line For Recorder's Use Only)
RESALE RESTRICTION AGREEMENT
AND OPTION TO PURCHASE
Owner:
Property Address:
Dublin, California
Name of Development:
This RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE
("Agreement") is entered into by and between the CITY OF DUBLIN, a California
municipal corporation (the "City") and ("Owner")
regarding certain improved real property which is more particularly described in Exhibit
A_ attached hereto and incorporated herein and commonly known as ,Dublin,
CA, (the "Property") effective as of , 20_ ("Effective Date"). City and
Owner are hereinafter collectively referred to as the "Parties."
RECITALS
A. The City has Inclusionary Zoning Regulations (Dublin Municipal Code
Chapter 8.68) (the "Regulations") that require developers of rental and ownership
housing to construct within their projects units that are affordable to very low-, low-, and
moderate-income households ("the Program"). To further its goal of creating affordable
home ownership opportunities for very low-, low-, and moderate-income persons and
families, the City has initiated a program for the sale of some homes at a price below
their market rate ("Program"). Pursuant to the Program, developers of housing
developments agree to set aside a certain number of units for purchase or rent, as
applicable, by very low-, low-, and moderate-income persons and families, as defined
herein.
EXHIBIT 1
B. Owner is an eligible [very low-, low- or moderate-)income purchaser under the
Program, intends to live in the Property as an owner occupant, and agrees to maintain
the Property as Owner's principal residence.
C. In order to maintain and preserve the Property as housing affordable to
eligible [very low-, low-, or moderate-]income purchasers, it is necessary to restrict the
use and resale of the Property through imposition of the occupancy and resale
restrictions set forth herein. These restrictions are intended to prevent initial and
subsequent purchasers from using the Property for purposes incompatible with the
Program and realizing unwarranted. gains from sales of the Property at unrestricted
prices. The terms and conditions of this Agreement are intended to provide the
necessary occupancy and resale restrictions to ensure that the Property is used,
maintained, and preserved as housing affordable to eligible [very low-, low-, or
moderate-)income purchasers. To further serve the purposes of the Program, it is
necessary that the City be granted an option to purchase the property so that the
property may be resold by the City to an eligible household.
D. The Property constitutes a valuable community resource by providing decent,
safe, and sanitary housing to persons and families of [very low, low, or moderate]
income who otherwise would be unable to afford such housing. To protect and
preserve this resource it is necessary, proper, and in the public interest for the City to
administer occupancy and resale controls consistent with the Program and the
Regulations by means of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the substantial economic benefits
inuring to Owner and the public purposes to be achieved under the Program, Owner
and City hereby agree as follows:
1. Definitions.
a. "Affordable Unit Cost" shall be as defined in the Regulations, as follows:
"Owner-occupied units are deemed affordable units if the sales price results
in annual housing costs that do not exceed 35% of maximum income level for very-
low-, low-, and moderate-income households, adjusted for household size and as
defined below."
b. "Area [Very Low, Low, or Moderate] Income for Alameda County" means
those income and eligibility levels determined, updated, and published each year by the
California Department of Housing and Community Development, based on Alameda County
median income levels, adjusted for household size.
c. "Persons and families of [very low, low, or moderate] income" means
persons and families whose income does not exceed [fifty percent (50%); eighty percent
(80%); or one hundred twenty percent (120%)] of the Area Median Income for Alameda
bounty, as adjusted for household size.
^oa9a5 a -2- December 15, 2002
d. Persons and families meeting the definition set forth in Paragraph 1(b)
above shall be referred to as "Eligible Households."
2. Program Requirements.
a. Affordability Restrictions. Owner hereby covenants and agrees that
during the term of this Agreement all of the requirements and restrictions of this Agreement
shall apply, and the Property shall be sold or otherwise transferred only pursuant to the
terms and conditions of this Agreement and only to (i) Eligible Households at a price not to
exceed the Adjusted Resale Price, as defined in Paragraph 5, (ii) the City pursuant to
Paragraph 3, or (iii) a permitted transferee pursuant to Paragraph 9.
b. Disclosure. DURING THE TERM OF THIS AGREEMENT THERE
SHALL BE NO SALE OR OTHER TRANSFER OF THE PROPERTY WITHOUT THE
WRITTEN CERTIFICATION BY THE CITY THAT THE TRANSFEREE QUALIFIES AS AN
ELIGIBLE HOUSEHOLD AND THAT THE PROPERTY IS BEING TRANSFERRED AT A
PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE, WHICH IS CAPPED AT THE
AFFORDABLE UNIT COST AS DEFINED IN PARAGRAPH 1 a. ANY SALE OR OTHER
TRANSFER OF THE PROPERTY IN VIOLATION OF THIS COVENANT SHALL BE VOID.
c. Principal Residence Requirement. OWNER COVENANTS AND
AGREES THAT HE/SHE/THEY SHALL OCCUPY THE PROPERTY AS HIS/HER/THEIR
PRINCIPAL RESIDENCE FOR THE DURATION OF HIS/HER/THEIR OWNERSHIP AND
SHALL NOT RENT OR LEASE THE PROPERTY OR PORTION THEREOF DURING THE
TERM OF THIS AGREEMENT. Without limiting the generality of the foregoing, any
absence from the Property by Owner for a period of ninety (90) or more days shall be
deemed an abandonment of the Property as the principal residence of Owner in violation of
the conditions of this Paragraph. Upon request by the City made from time to time, the
Owner of the Property shall submit an affidavit to the City certifying that the Property is the
Owner's principal residence and provide such documents and other evidence as may be
requested to verify Owner's compliance with this requirement. Abandonment of the
Property shall constitute an Option Event (as defined in Paragraph 3.c below) and shall
entitle the City to exercise its Option to purchase the Property.
d. Hazard and Liability Insurance. At all times during the term hereof,
Owner shall keep the improvements and personal property now existing or hereafter
erected on the Property insured against loss by fire, vandalism and malicious mischief by a
policy of standard fire and extended all-risk insurance. The policy shall be written on a full
replacement value basis and shall name Beneficiary as loss payee. Upon request Owner
shall provide to City certificates evidencing carriage of the insurance policies required by
this Section.
3. Option to Purchase.
a. Grant of Option to Purchase. Owner hereby grants to the City an option
("Option") to purchase all of Owner's right, title and interest in and to the Property upon the
occurrence of an Option Event (defined in Paragraph 3.c below), subject to the terms and
conditions contained herein.
204945.4 -3- December 15, 2002
b. Assignment of the Option. The City may assign the Option to another
+c, ~ ~ r,~, ,~,r ent`y, anon-profit affordable housing provider or a person or family that
!~fi~;~ ~s ~:~n Ei~gible Household. The City's assignment of the Option shall not extend
ire lir. `~:} contained herein with respect to the exercise period of the Option or the
`~ ion, ~ns~t"?~ which the Property must be purchased.
Events Giving Rise to Right to Exercise Option. The City shall have
thy; ,ig`r~~ ~:, ~;.::+c-se its Option upon the occurrence of any of the following events (each, an
"O!: riot! E~.~ent"):
Receipt of a Notice of Intent to Transfer (defined in Paragraph
a. + i i,elow,~;
ii, Any actual, attempted or pending sale, conveyance, transfer,
,ease or other attempted disposition of the Property or of any estate or interest therein,
,,~c~P; ` ~s pr~avided in Paragraph 10 below;
iii. Any actual, attempted or pending encumbrance of the Property,
including without limitation by way of mortgage or deed of trust, or by judgment, mechanics,
tax ~r other lien, except as provided in Paragraph 9 below;
iv. Recordation of a notice of default and/or notice of sale pursuant
to California Civil Code section 2924 (or successor provisions) under any deed of trust or
mortgage with a power of sale encumbering the Property;
Commencement of a judicial foreclosure proceeding regarding
'he Property;
vi. Execution by Owner of any deed in lieu of foreclosure
transferring ownership of the Property;
vii. Commencement of a proceeding or action in bankruptcy,
whether voluntary or involuntary, pursuant to Title 11 of the United States Code or other
~ankn ~otcy statute, or any other insolvency, reorganization, arrangement, assignment for
~~ ,efit of credits r~, receivership or trusteeship, concerning the Owner; or
:iii ,4ny violation by Owner of any provision of this Agreement
;~,:._ ,; _.~s ;at ~~ ~tiun, the conditions set forth in Paragraph 2 above.
d. 11r~ethod of Exercising the Option.
Notice of Intent to Transfer. If Owner desires to sell, convey,
,;~r (othe°~ `!gar n' °-suant to Paragraph 9), lease, encumber (other than pursuant to
-- -`s i ~ :`-~._ ,prise dispose of the Property or of any estate or interest therein, no
~3r~~ 4:: c: to the date of such proposed sale, conveyance, transfer, lease,
- ~ ~= -~-,°~, Owner shall notify City in writing to that effect (the "Notice of
~_ce ;Intent to Transfer shall be in substantially the form
.d ,:~~~ ~ !~'j. In the case of a proposed sale of the Property to an identified
:±._
`=~ ~- shall submit to the City, together with the Notice of Intent
-4- December 15, 2002
to Transfer, a copy of the prospective purchaser's income certification, a list of all assets
owned by the prospective purchaser, and other financial information reasonably requested
by City along with the income certification to be provided to any lender making a loan to the
prospective purchaser. The City may require documentation evidencing and supporting the
income and other financial information contained in the certifications.
ii. Notice of Exercise. Upon the occurrence of any Option Event,
the City may exercise its Option by delivering notice, pursuant to Paragraph 16 and within
the time period specified in Paragraph 3(d)(iv), to Owner of City's intent to exercise such
Option pursuant to the terms of this Agreement ("Notice of Exercise"). The Notice of
Exercise may be in the form attached hereto and incorporated herein as Exhibit C, or in
such other form as the City may from time to time adopt. If the Option Event relates to the
potential foreclosure of a mortgage under Paragraphs 3.c.iv, 3.c.v, or 3.c.vi, then the City
shall also deliver the Notice of Exercise to the mortgagee or beneficiary under such
mortgage, at such mortgagee's or beneficiary's address of record in the Office of the
Recorder of Alameda County.
iii. Notice of Consent to Transfer. If the City does not exercise
the Option, it may give its consent to the occurrence of the Option Event ("Consent to
Transfer"). If the Option Event involves a proposed sale of the Property to a prospective
purchaser, the City's consent shall be conditioned upon (i) the proposed purchaser's
qualification as an Eligible Household; (ii) the sale of the Property at a price not to exceed
the Adjusted Resale Price; (iii) the proposed purchaser's execution of a Disclosure
Statement in the form attached hereto as Exhibit F or such other form or forms as may be
promulgated by the City; and (iv) the proposed purchaser's assumption of Owner's duties
and obligations under this Agreement pursuant to a written assumption agreement in a form
acceptable to City, or execution of an agreement substantially similar to this Agreement,
within thirty (30) days after the Consent to Transfer has been delivered to Owner and
recordation of such assumption agreement or substitute agreement. SELLER SHALL PAY
REAL ESTATE COMMISSIONS, IF ANY, WHICH SHALL NOT TO EXCEED 6% OF THE
ACTUAL SALES PRICE. If the prospective purchaser (i) fails to qualify as an Eligible
Household, (ii) fails to execute and deliver the Disclosure Statement to the City, or (iii) fails
to execute and deliver to the City an assumption agreement or an agreement substantially
similar to this Agreement within such thirty (30) day period, then the Consent to Transfer
shall expire and the City may, at its option, either notify Owner of the disqualification,
thereby entitling Owner to locate another purchaser who qualifies as Eligible Household, or
exercise the Option, as if no Consent to Transfer had been delivered.
iv. Time Period for Notice. The City shall deliver a Consent to
Transfer, if applicable, not later than thirty (30) days after the date that it receives
notification of an Option Event. The City shall deliver a Notice of Exercise, if applicable, on
or before the date which is the later to occur of the following: (i) thirty (30) days after the
date that the City receives notification of an Option Event or (ii) fifteen (15) days after a
Consent to Transfer has expired. For purposes of computing commencement of the
delivery periods, the City shall be deemed to have received notification of an Option Event
on the date of delivery of a Notice of Intent to Transfer, pursuant to the terms of Paragraph
16 below or on the date it actually receives notice of default, summons and complaint or
other pleading, or other writing specifically stating that an Option Event has occurred. The
City shall have no obligation to deliver a Notice of Exercise or Consent to Transfer, and the
2oasa5.a -5- December 15, 2002
applicable time period for exercise of the Option shall not commence to run, unless and
until the City has received notification of an Option Event in the manner specified in this
subparagraph. If there is a stay or injunction imposed by court order precluding the City
from delivering its Consent to Transferor Notice of Exercise within the applicable time
period, then the running of such period shall cease until such time as the stay is lifted or the
injunction is dissolved and the City has been given written notice thereof, at which time the
period for delivery of a Consent to Transfer or Notice of Exercise shall again begin to run.
v, Notice of Abandonment. If the City fails to deliver a Notice of
Exercise or Consent to Transfer within the time periods set forth in paragraph 3.d.iv, upon
request by Owner, the City shall cause to be filed for recordation in the Office of the
Recorder of Alameda County, a notice of abandonment, which shall declare that the
provisions of the Option are no longer applicable to the Property. Unless Owner requests
recordation of notice of abandonment within 30 days of the City's failure to deliver Notice of
Exercise or Consent to Transfer, the City shall have no obligation to record the notice of
abandonment. Upon recordation of a notice of abandonment, the Option shall terminate
and have no further force and effect. If the City fails to record a notice of abandonment, the
sole remedy of Owner shall be to obtain a judicial order instructing prompt recordation of
such a notice.
vi. Right to Reinstatement. If the Option Event is the recordation
of a notice of default, then the City shall be deemed to be Owner's successor in interest
under California Civil Code Section 2924c (or successor section) solely for purposes of
reinstatement of any mortgage on the Property that has led to the recordation of the notice
of default. As Owner's deemed successor in interest, the City shall be entitled to pay all
amounts of principal, interest, taxes, assessments, homeowners' association fees,
insurance premiums, advances, costs, attorneys' fees and expenses required to cure the
default. If the City exercises the Option, then any and all amounts paid by the City pursuant
to this Paragraph shall be treated as Adjustments to the Base Resale Price for the Property,
as defined in Paragraph 5 below.
vii. Inspection of Property. After receiving a Notice of Intent to
transfer or delivering a Notice of Exercise, the City shall be entitled to inspect the Property
one or more times prior to the close of escrow to determine the amount of any Adjustments
to the Base Resale Price. Before inspecting the Property, the City shall give Owner not less
than forty-eight (48) hours written notice of the date, time and expected duration of the
inspection. The inspection shall be conducted between the hours of 9:00 a.m. and 5:00
p.m., Monday through Friday, excluding court holidays, unless the parties mutually agree in
writing to another date and time. Owner shall make the Property available for inspection on
the date and at the time specified in the City's request for inspection.
viii. Escrow. Promptly after delivering a Notice of Exercise, the
City shall open an escrow account for its purchase of the Property. Close of escrow shall
take place on such date which is the later to occur of the following, (a) ninety (90) days after
a Notice of Exercise has been delivered, or (b) ten (10) days after Owner has performed all
acts and executed all documents required for close of escrow. Prior to the close of escrow,
the City shall deposit into escrow with a title company of City's choosing, the Adjusted
Resale Price as defined in Paragraph 5 below and all escrow fees and closing costs to be
paid by City. Commissions (not to exceed 6% of the actual sales price), closing costs and
2oasa5.a -6- December 15, 2002
title insurance shall be paid pursuant to the custom and practice in the County of Alameda
at the time of the opening of escrow, or as may otherwise be provided by mutual
agreement. Owner agrees to perform all acts and execute all documents reasonably
necessary to effectuate the close of escrow and transfer of the Property to the City.
ix. Proceeds of Escrow; Removal of Exceptions to Title. Prior to close of
escrow, Owner shall cause the removal of all exceptions to title to the Property that were
recorded after the Effective Date with the exception of (i) taxes for the fiscal year in which
the escrow for this transaction closes, which taxes shall be prorated as between Owner and
City as of the date of close of escrow; (ii) quasi-public utility, public alley, public street
easements, and rights of way of record, and (iii) such other liens, encumbrances,
reservations and restrictions as may be approved in writing by City ("Permitted Exceptions")
The purchase price deposited into escrow by the City shall be applied first to the
payment of any and all Permitted Encumbrances (as defined in Paragraph 10) recorded
against the Property in order of lien priority, and thereafter to the payment of Owner's share
of escrow fees and closing costs. Any amounts remaining after the purchase price has
been so applied, if any, shall be paid to Owner upon the close of escrow. If the purchase
price is insufficient to satisfy all liens and encumbrances recorded against the Property, the
Owner shall deposit into escrow such additional sums as may be required to remove said
liens and encumbrances. In the event that the City agrees to proceed with close of escrow
prior to the date that Owner has caused all exceptions to title recorded after the Effective
Date other than Permitted Exceptions to be removed, then Owner shall indemnify, defend
and hold City harmless from any and all costs expenses or liabilities (including attorneys'
fees) incurred or suffered by City that relate to such exceptions and their removal as
exceptions to Title to the Property.
4. Base Resale Price. Prior to adjustment pursuant to Paragraph 5 the base
resale price ("Base Resale Price") of the Property shall be the lowest of:
a. Median Income. The original price ("Base Price") paid by Owner for
acquisition of the Property pursuant to the Program, increased (but not decreased) by an
amount, if any, equal to the Base Price multiplied by the percentage increase in the median
household income ("Median Income") for Alameda County published by the California
Department of Housing and Community Development, Division of Housing Policy
Development, between the Effective Date and the date that the City receives notification of
an Option Event; or
b. Fair Market Value. The fair market value of the Property as determined
by an appraiser selected and paid for by Owner and approved in writing by the City.
To compute the Base Resale Price, the City may use the Base Resale Price Worksheet
attached as Exhibit D hereto, or such other form as the City may from time to time adopt.
5. Adjustments to Base Resale Price. Subject to the Affordable Unit Cost
restriction described in subparagraph (d) below, the Base Resale Price shall be increased
or decreased, as applicable, by the following adjustment factors ("Adjustment"):
2oasa5.a -7- December 15, 2002
a. Capital Improvements. An increase for capital improvements made to
the Property, but only if the amount of such improvements has been previously approved in
writing by the City after Owner has submitted original written documentation of the cost to
the City for verification. The amount of the Adjustment shall equal the original cost of any
such capital improvements. A "capital improvement" for the purposes of this section is an
upgrade to an existing interior or exterior component, such as replacing linoleum with wood
flooring or the addition of built in shelving or recessed lighting. A "capital improvement"
does not include regular or deferred maintenance such as roof replacement or plumbing or
electrical replacement or repair.
b. Damages. A decrease by the amount necessary to repair damage to the
Property, if any, and to place the Property into saleable condition as reasonably determined
by the City upon City's exercise of its Option under Section 3.d, including, without limitation,
amounts attributed to cleaning; painting; replacing worn carpeting and draperies; making
necessary structural, mechanical, electrical and plumbing repairs; and repairing or replacing
built-in appliances and fixtures. Owner hereby covenants to, at Owner's expense, maintain
the Property in the same condition as in existence on the date of City's Notice of Exercise,
reasonable wear and tear excepted.
c. Adjusted Resale Price Not to Exceed Affordable Unit Cost. The Base
Resale Price as adjusted, is hereinafter referred to as the "Adjusted Resale Price."
Notwithstanding any other provision hereof to the contrary, in no event shall the Adjusted
Resale Price exceed the Affordable Unit Cost or the market value of the property, whichever
is less.
6. Priority and Effectiveness of the Option.
a. Recordation. This Agreement shall be recorded in the Office of the
Recorder of the County of Alameda on or as soon as practicable after the Effective Date.
The Option shall have priority over any subsequent sale, conveyance, transfer, lease or
other disposition or encumbrance of the Property, or of any estate or interest therein, and in
the event of exercise of the Option by City, the City shall take the Property subject only to
Permitted Exceptions. Except as otherwise provided in Paragraph 7.a, the exercise of the
Option by the City at any time and from time to time shall not extinguish the Option or cause
a merger of the Option into any estate or other interest in the Property, and the Option shall
continue to exist and be effective with respect to the Property against any and all
subsequent owners in accordance with the terms and conditions hereof.
b. Request for Notice of Default. The City shall file a Request for Notice of
Default for recordation in the Office of the Recorder of the County of Alameda promptly
±~pon execution of this Agreement (see Exhibit E).
7. Survival of Option Upon Transfer.
a. In General. The City's right to exercise the Option shall survive any
transfer of the Property by Owner. Each transferee, assignee or purchaser of the Property
during the term hereof shall be required to execute an agreement substantially in the form
2oasa5.a -8- December 15, 2002
of this Agreement, provided that the term of any such agreement shall be for the duration of
the term hereof as of the date of any such transfer, assignment or sale. The Option may be
exercised against the Property throughout the term hereof, regardless of whether the
Property is owned, possessed or occupied by Owner or any successor, transferee,
assignee, heir, executor, or administrator of Owner, regardless of household income (if
applicable) including adebtor-in-possession, debtor or trustee pursuant to Title 11 of the
United States Code. Notwithstanding the foregoing, the Option shall not survive (i) the sale
and transfer of the Property to a third party purchaser pursuant to a judicial or non judicial
foreclosure or a deed-in-lieu of foreclosure under a power of sale contained in a mortgage
or deed of trust held by an institutional lender, provided that the City has received timely
notice of such Option Event and has failed to either reinstate said mortgage or deed of trust
or exercise its Option, or (ii) the recording of an instrument conveying Owner's interest in
the Property to the City, or its assignee, provided the conveyance is in accordance with the
terms of this Agreement.
b. HUD Insured Mortgage. If Owner has acquired the Property by a
mortgage insured by the Secretary of the United States Department of Housing and Urban
Development, and a notice of default has been recorded pursuant to California Civil Code
Section 2924 (or successor provisions), then this Option shall automatically terminate if title
to the Property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the insured
mortgage is assigned to the Secretary.
8. Voidable Transfers. As long as the Option has not been abandoned pursuant to
Paragraph 3.d.v, any actual or attempted sale, conveyance, transferor other disposition of
the Property, or of any estate or interest therein, in violation of the terms and conditions of
this Agreement, shall be voidable at the election of the City.
9. Permitted Transfers. Provided that the transferee assumes, within 30 days of a
written request by the City, all of Owner's duties and obligations under this Agreement
pursuant to a written assumption agreement in a form acceptable to City, or at City's
election, execution of an agreement substantially similar to this Agreement, the following
transfers ("Permitted Transfers") of title to the Property, or of any estate or interest therein,
shall not be subject to the City's prior approval, shall not trigger the exercise of the Option,
and shall not be considered Option Events: (a) a good-faith transfer by gift, devise or
inheritance to Owner's spouse or issue; (b) a taking of title by a surviving joint tenant; (c) a
court-ordered transfer of title to a spouse as part of a divorce or dissolution proceeding; (d)
a transfer by Owner into an inter vivos trust in which the Owner is a beneficiary and the
Owner continues to occupy the property as his/her primary residence; (e) an acquisition of
title, or of any interest therein, in conjunction with marriage; or (f) any good faith transfer to
an Eligible Household. Notwithstanding any Permitted Transfer, the Option shall remain
effective with respect to the Property for the duration of the term hereof.
10. Permitted Encumbrances and Refinancing. This Option shall not become
exercisable as the result of Owner's encumbering the Property for the purpose of securing
financing to purchase the Property pursuant to the Program, to refinance indebtedness
incurred to purchase the Property pursuant to the Program, or to make necessary repairs to
the Property in an amount approved by City pursuant to Paragraph 5a ("Permitted
Encumbrances"). The maximum aggregate amount of such encumbrances outstanding at
2oasa5.a -9- December 15, 2002
any time (the "Permitted Encumbrance Amount") shall not exceed an amount equal to
ninety percent (90%) of the Base Resale Price calculated as provided in Paragraph 4. The
Permitted Encumbrance Amount shall be calculated as if the City had received notification
of an Option Event on the earlier of (a) the date on which the deed of trust or mortgage
securing the indebtedness is filed for record in the Office of the Recorder of the County of
Alameda, or (b) the date the City receives Notice of Intent to Transfer pursuant to
Paragraph 3.d.i above. Owner hereby covenants and agrees that he/she/they shall use
his/her/their best efforts to ensure that any deed of trust or other agreement encumbering
the property shall include provisions providing for notice to be delivered to City of any
default thereunder and for City's right to cure such default at City's election.
11. Obligation of Owner After Option Abandonment. If the City records a notice
of abandonment of the Option, pursuant to paragraph 3.d.v, then the Property may be sold
by Owner to a third party without restriction as to price; however, upon such sale, Owner
shall pay to City an amount ("City's Share") equal to Twenty-five percent (25%) of the
difference between (a) the actual sales price net of reasonable and customary real estate
commissions paid (such commissions not to exceed six percent (6%) of the actual sales
price), and (b) the Adjusted Resale Price. The City's Share shall be paid to the City
concurrently with close of escrow on the sale of the Property, or upon receipt by Owner of
the sale price for the Property ,whichever shall first occur.
12. Limits on Liability. In no event shall the City become liable or obligated in any
manner to Owner by reason of the assignment of this Agreement or the Option, nor shall
City be in any way liable or obligated to Owner for any failure of the City's assignee to
consummate a purchase of the Property or to comply with the terms of this Agreement or
the Option, or any escrow instructions or agreement for the purchase of the Property.
13. Insurance Proceeds and Condemnation Award. In the event the Property is
destroyed and insurance proceeds are distributed to Owner instead of being used to rebuild
the Property, or, in the event of condemnation, if the insurance proceeds or award in
condemnation are distributed to Owner, any surplus of proceeds remaining after payment of
the senior liens and encumbrances on the Property shall be distributed as follows, subject
to the rights of any institutional lender. First, that portion of the surplus up to, but not to
exceed, the net amount Owner would have received pursuant to Paragraph 3.d.ix had the
City exercised its Option on the date of the destruction or on the condemnation valuation
date shall be distributed to Owner, and, second, the remaining surplus, if any, shall be
distributed to the City.
14. Effective Date. The rights and obligations of the City and Owner set forth in this
,agreement shall be effective as of the Effective Date.
15. Term of Agreement and Option. The restrictions contained herein and the
City's option to purchase the Property shall continue for a period of fifty-five (55) years
commencing on the Effective Date. Notwithstanding anything to the contrary in the
foregoing, the Agreement shall remain in effect until the first transfer on or after the
termination of the restrictions and option to purchase pursuant to this paragraph. Upon
such sale, Owner shall pay to City an amount ("City's Share") equal to Twenty-five percent
(25%) of the difference between (a) the actual sales price net of reasonable and customary
zoagas.a -10- December 15, 2002
real estate commissions paid (such commissions not to exceed six percent (6%) of the
actual sales price), and (b) the Adjusted Resale Price (as set forth in paragraph 5 above) on
the date of the termination of the restrictions and option to purchase pursuant to this
paragraph. The City's Share shall be paid to the City concurrently with close of escrow on
the sale of the Property, or upon receipt by Owner of the sale price for the Property,
whichever shall first occur. Following completion of a sale in compliance with this provision,
this Agreement shall terminate.
16. Notices. Except as otherwise specified in this Agreement, all notices to be sent
pursuant to this Agreement shall be made in writing, and sent to the Parties at their
respective addresses specified below or to such other address as a Party may designate by
written notice delivered to the other Party in accordance with this Section. All such notices
shall be sent by:
(a) personal delivery, in which case notice shall be deemed delivered upon receipt;
(b) certified or registered mail, return receipt requested, in which case notice shall be
deemed delivered two (2) business days after deposit, postage prepaid in the United States
mail;
(c) nationally recognized overnight courier, in which case notice shall be deemed
delivered one (1) day after deposit with such courier; or
(d) facsimile transmission, in which case notice shall be deemed delivered on
transmittal, provided that a transmission report is generated reflecting the accurate
transmission thereof.
City: City of Dublin,
100 Civic Center
Dublin, California 94568
Attn: City Manager
Owner: At the address of the Property
17. Remedies Upon Breach.
a. Specific Performance. Owner acknowledges that any breach in the
performance of its obligations under this Agreement shall cause irreparable harm to the
City. Owner agrees that the City is entitled to equitable relief in the form of specific
performance upon its exercise of the Option, and that an award of damages shall not be
adequate to compensate the City for Owner's failure to perform according to the terms of
this Agreement.
b. Other Remedies. City shall have all of the remedies provided for at law
or equity.
18. General Provisions.
2oasa5.a -11- December 15, 2002
a. Attorneys' Fees. If either party initiates legal proceedings to interpret or
enforce its rights under this Agreement, the prevailing party in such action shall be entitled
to an award of reasonable attorneys' fees and costs in additions to any other recovery to
which it is entitled under this Agreement.
b. No Joint Venture; No Third-Party Beneficiary. No joint venture or other
partnership exists or is created between the Parties by virtue of this Agreement. Except as
expressly stated herein, this Agreement does not benefit any third party.
c. Successors; Assignment. This Agreement shall inure to the benefit of
and shall be binding upon the Parties to this Agreement and their respective heirs,
executors, administrators, successors and assigns. City shall have the right to assign all of
its rights and obligations under this Agreement without the consent of Owner.
d. Entire Agreement; Amendment. This Agreement constitutes the entire
agreement of the Parties with respect to the subject matter hereof, and supersedes any and
all other prior negotiations, correspondence, understandings and agreements with respect
thereto. There are no representations, promises, agreements or other understandings
between the Parties relating to the subject matter of this Agreement that are not expressed
herein. This Agreement may be modified only by an instrument in writing executed by the
Parties or their respective successors in interest.
e. Survival; No Merger. All of the terms, provisions, representations,
warranties and covenants of the Parties under this Agreement shall survive the close of
escrow of any sale of the Property and shall not be merged in any deed transferring the
Property.
f. Authority And Execution. Each Party represents and warrants that
it has full power and authority to enter into this Agreement and to undertake all of its
obligations hereunder, that each person executing this Agreement on its behalf is duly and
validly authorized to do so.
g. Severability. The invalidity or unenforceability of any term or
provision of this Agreement shall not impair or affect the remainder of this Agreement, and
the remaining terms and provisions hereof shalt not be invalidated but shall remain in full
force and effect.
h. Waiver; Modification. No waiver or modification of this Agreement or
any covenant, condition, or limitation herein contained shall be valid unless in writing and
duly executed by the Party to be charged therewith. No evidence or any waiver or
modification shall be offered or received in evidence in any proceeding, arbitration, or
litigation between the Parties arising out of or affecting this Agreement or the rights or
obligations of any Party hereunder, unless such waiver or modification is in writing and duly
executed as aforesaid. The provisions of this section may not be waived except as herein
set forth. A waiver or breach of any covenant, condition or provision of this Agreement shall
not be deemed a waiver of any other covenant, condition or provision hereof.
2oasae.a -12- December 15, 2002
i. Construction. The section headings and captions used in this
Agreement are for convenience of reference only and shall not modify, define, limit or
amplify any of the terms or provisions hereof. This Agreement shall not be construed as if
it had been prepared by one of the Parties, but rather as if both Parties have prepared it.
j. Governing Law. This Agreement shall in all respects be governed by
and construed in accordance with the laws of the State of California.
k. Time of the Essence. Time is of the essence in this Agreement as to
each provision in which time is an element of performance.
I. Further Assurances. Each Party will, upon reasonable request of the
other Party, execute, acknowledge, and deliver, or cause to be executed, acknowledged,
end delivered, such further instruments and documents as may be reasonably necessary in
order to fulfill the intents and purposes of this Agreement.
m. Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, and all which together shall constitute one and
the same instrument.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed as of the date first written above.
OWNERS}:
ATTEST:
CITY:
CITY OF DUBLIN
By:
Its:
2oasas.a -13- December 15, 2002
City Clc ~ K
f~f'~-'~ °C.V`D EaS 1 ~~ 1=0RM:
t+~~r-~`
-14- December 15, 2002
STATE OF CALIFORNIA )
COUNTY OF )
On before me, a Notary Public
in and for said county and state, personally appeared
personally known to me (or
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/herltheir 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.
WITNESS my hand and official seal.
Signature
STATE OF CALIFORNIA
COUNTY OF
On before me,
in and for said county and state, personally appeared
(Seal)
a Notary Public
personally known to me (or
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.
WITNESS my hand and official seal.
Signature
(Seal)
zoa9a5.a -1- December 15, 2002
STATE OF CALIFORNIA
COUNTY OF
On before me, ,
in and for said county and state, personally appeared
personally known to me (or
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.
WITNESS my hand and official seal.
Signature
a Notary Public
(Seal)
2oasa5.a -1- December 15, 2002
CERTIFICATE OF ACCEPTANCE
(Pursuant to Government Code §27281)
This is to certify that the interest in real property conveyed by the Resale Restriction
Agreement and Option to Purchase dated from
to the City of Dublin, a California municipal corporation, is
hereby accepted by the undersigned office or agent on behalf of the City of Dublin pursuant
to authority conferred by the Resolution No. dated ;and the
grantee consents to recordation thereof by its duly authorized officer.
Dated:
By:
Its:
Attest:
City Clerk
2oasa5.a -1- December 15, 2002
EXHIBIT A
Legal Description
[To be inserted]
-1- December 15, 2002
EXHIBIT B
FORM: NOTICE OF INTENT TO TRANSFER
VIA CERTIFIED MAIL -RETURN RECEIPT REQUESTED
To: City of Dublin
100 Civic Center
Dublin, California _
Attn: City Manager
Date:
Re: Notice of Intent to Transfer
Pursuant to the terms of the Resale Restriction Agreement and Option to Purchase,
dated ,the undersigned Owner(s),
hereby gives} notice of his/her/their intent to transfer the property located at
,Dublin, California (the "Property").
Owner may be contacted at the Property or at the following address:
Owner's daytime telephone number is ~)
[!f applicable: The proposed transfer of the Property is to the following person(s):
Name:
Address:
Telephone: (~
The proposed transfer is (check one):
Sale
Other Specify:
Owner(s) signature(s):
2oasas.a -1- December 15, 2002
EXHIBIT C
FORM: NOTICE OF EXERCISE
Date
To~ _
},°~,~n~=~ or Transferee
Andress
Re: N~: tice of Exercise
The amity of Dublin ("City") hereby gives notice that it is exercising its option to
purchase the real property located at ,Dublin,
Carit~rnia. The option has been granted to the City pursuant to the Resale Restriction
Agreement and Option to Purchase between Owner and the City dated
anr' recociee, on as Instrument No. [The
City has assigned its option to purchase the real property to .] An
escrow for the purchase will be opened with the First American Title Company.
City of Dublin
By:
Its:
-1- December 15, 2002
EXHIBIT D
INCLUSIONARY ZONING HOMEOWNERSHIP PROGRAM
INCLUSIONARY ZONING BASE RESALE PRICE WORKSHEET
Date:
Owner:
Address:
Purchase Price ("Base Price"):
Date of Purchase:
Years Owned:
years
CALCULATION BASED ON INCREASE IN MEDIAN INCOME***
Present Median Income"`: $ Date of Notice of Option Event:
Family of four, County of Alameda
(at time of sale of unit)
Original Median Income*: $ Effective Date:
Family of four, County of Alameda
(at time of purchase of unit)
Increase in Median Income: $ divided by Original Median Income =
Percentage increase in median income:
Median household incomes for Alameda County are published annually by the California Department of Housing and Community
Development.
Base Price $ multiplied by the % (percentage increase in median income).
(i.e. unit price at the time of purchase)
_ $ Base Resale Price
The Base Resale Price is the maximum gross allowable sales prices (subject to any adjustments to the base resale prices pursuant
to section 5 of this agreement).
Based on the above, the base resale rice as of this date, , is:
By:
2oasa5.a -1- December 15, 2002
EXHIBIT E
REQUEST FOR NOTICE OF DEFAULT
Order No.
Escrow No.
Loan No.
WHEN RECORDED MAIL TO:
CITY OF DUBLIN
Dublin, California
Attn:
(Space Above This Line For Recorder's Use Only)
REQUEST FOR NOTICE UNDER SECTION 2924b CIVIL CODE
In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any Notice
of Default and a copy of any Notice of Sale under the Deed of Trust recorded as Instrument No.
on , in the Official Records of Alameda County,
California, and describing land therein as:
executed by
Dublin, California ,Attn:
as Trustor, in which
is named as Beneficiary, and
as Trustee, be mailed to the City of Dublin,
By:
NOTICE: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NOTICE OF SALE WILL BE SENT
ONLY TO THE ADDRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS
CHANGES, A NEW REQUEST MUST BE RECORED.
STATE OF CALIFORNIA
COUNTY OF
.~n before me,
:,aid county and state, personally appeared
a Notary Public in and for
personally known to me (or proved to me on the basis of
~arisfactory 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.
WITNESS my hand and official seal.
Signature (This area for official notarial seal)
ESas.a -1- December 15, 2002
Exhibit F
DISCLOSURE STATEMENT
THERE ARE RESTRICTIONS ON THE SALE OF THE
PROPERTY YOU ARE BUYING. EXCEPT FOR A TRANSFER
TO THE CITY FOLLOWING CITY'S EXERCISE OF ITS OPTION
TO PURCHASE, THIS PROPERTY MAY ONLY BE SOLD TO AN
"ELIGIBLE HOUSEHOLD" AT A PRICE NOT TO EXCEED THE
ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN
"AFFORDABLE HOUSING COST."
THIS MEANS THAT YOU MAY NOT SELL THE PROPERTY FOR MARKET VALUE TO
WHOMEVER YOU LIKE.
THESE RESTRICTIONS WILL BE IN EFFECT UNTIL
ANY SALE OF THE PROPERTY IN VIOLATION OF THE RESTRICTIONS, SHALL BE
VOIDABLE AT THE ELECTION OF THE CITY.
TO DETERMINE WHO AN ELIGIBLE HOUSEHOLD IS, AND WHAT THE ADJUSTED
RESALE PRICE AND AFFORDABLE HOUSING COST ARE, YOU SHOULD CONTACT
THE Housing Specialist OF THE CITY OF DUBLIN AT 925-833-6610.
YOU SHOULD ALSO READ THE RESALE RESTRICTION AGREEMENT AND OPTION
TO PURCHASE RECGRDED AGAINST THE PROPERTY. YOU MAY OBTAIN A COPY
OF THESE DOCUMENTS FROM THE CITY OF DUBLIN OR FROM THE ESCROW
COMPANY.
I HAVE READ THE FOREGOING AND I UNDERSTAND WHAT IT MEANS.
BUYER BUYER
zoasa5.a -1- December 15, 2002
~~ " ~1
J ~
~~~
~~
CITY OF DUBLIN
100 Civic Plaza, Dublin, California 94568
Website: http://vvww.ci.dublin.ca.us
AffORDABIE OWNERSIAP OPPORil111fY
Application and Information Packet
Sohn Doe, Inc., Developers of the Leprechaun Homes will be offering the first twenty-five (25)
below market rate (BMR) homes to eligible very low-, low- and moderate-income applicants.. 8
will be made available to very low-income households, 5 will be made available to low-income
households and 12 will be made available to moderate income households.
The following income limits are the maximum incomes allowed for each of the three category of
restricted sale price homes:
No. of people in 1 2 3 4 5
Household
Very low-income $28,050 $32,050 $36,050 $40,050 $43,250
Low-income $44,850 $51,250 $57,650 $64,100 $69,200
Moderate-income $64,350 $73,500 $82;700 $91,900 $99,250
To qualify for one of these homes you must complete the attached "Application for Inclusionary
Unit" and the "Qualification Questionnaire" and deliver to John Doe, Inc., at the Sales office
located at XXXX Nice Dav Drive. Dublin, California 94568.
If you have any questions, please contact John Doe, Inc. at (925) 111-1010. You may contact
the City at (925) 833-6610 for answers to questions, but John Doe, Inc. must receive all
completed applications at the above address by Friday, Month, Dav, Year.
The following steps will take place for buyer selection:
1. Interested applicants must be income qualified prior to being considered a possible buyer.
The application acceptance period will begin on Monday, Month, Da~Year. You must
EXHIBIT 2
Area Code (925) • City Manager 833-6650 ~ City Council 833-6650 ~ Personnel 833-6605 ~ Economic Development 833-6650
Finance 833-6640 ~ Public Works/Engineering 833-6630 ~ Parks & Community Services 833-6645 • Police 833-6670
Planningil-lousing/Code Enforcement 833-6610 • Building Inspection 833-6620 ~ Fire Prevention Bureau 833-6606
be returned to John Doe, Inc. for their review, along with a copy of your (latest year}
Federal and State Income Tax returns. If you are already pre-approved by a lender,
please include, with the above documents, confirmation, in writing, from your chosen
lender that you are pre-approved for a loan and the amount of loan for which you are pre-
approved.
2. Once all applicants have been reviewed and verified by John Doe, Inc., John Doe, Inc.
will begin offering the homes to applicants. The sale price of the home will be based on
the applicant's income. When an offer has been made and accepted, the following
documents will be submitted to the City of Dublin:
a) all household income verification,
b) the sale contract,
c) the lender "truth in lending statement"
d) the Loan Agreement
e) the "Application for Inclusionary Unit"
f) an executed Resale Agreement; and,
g) any verification for a City of Dublin preference
The City of Dublin will confirm any applicant claiming one or more of the City
established preferences for preference points, review all documents to confirm that
the developer is selling the unit to a household of adequate size, that the household is
in the correct income category and will review the loan product to assure it is
acceptable. If the City of Dublin receives a complete set of documents from the
developer, the City of Dublin will complete the review and return all documents to
the developer with the exception of the executed Resale Agreement and the
"Application for Inclusionary Unit," to the developer within 7 business days.
At this point the developer may enter into escrow for sale of the Inclusionary Units
with the City approved applicant.
4. The escrow closes and the Applicant becomes the owner of a new home in the City of
Dublin.
Exhibit 2
IL ELIGIBILITY REQUIREMENTS
To qualify for the purchase of a home in this project, the applicant must meet the following
criteria:
The household must be of adequate size. The City of Dublin states that the units be sold to
applicants based on the following unit and household size:
Studio 1 person household
1 bedroom 1-2 people household
2 bedroom 2-4 people household
3 bedroom 3-6 people household
The annual household income may not exceed the appropriate income limit of the Area
Median Income (AMI), adjusted for household size, as issued by the State Housing and
Community Development Department (HCD). (See page one of this packet)
Annual household income includes:
a. The income of all household members over the age of 18 years who will be
residing in the home. Annual household income includes all income listed in the
(most current year) Income Tax Return of all adult members, including all
schedules listing interest and dividends.
b. The full amount of periodic payments received from social security, annuities,
insurance policies, retirement funds, pensions, disability or death benefits and
other similar types of periodic receipts, whether or not they are declared on
Income Tax Return (most current year).
c. Payment in lieu of earnings, such as unemployment and disability compensation,
worker's compensation and severance pay, whether or not they are declared on
Income Tax Return (most current year)
d. Child Support Payments
e. Public Assistance payments of any type
Owner must occupy the property as the principal place of residence for at least nine (9)
months (cannot be absent for a period of ninety [90] days of more) of each calendar year.
T'iie property and improvement must be maintained in good condition and repair throughout
the period of ownership.
Buyer must be willing to enter into a Resale Restriction Agreement with the City of Dublin
which establishes, in part, residency requirements, home maintenance standards and restricts
the resale price and process for the resale of the homes.
Exhibit 2 3
III. GENERAL INFORMATION
Homes will be available to eligible purchasers with qualified financing and selected by John
Doe, Inc.
Pre-qualified applicants will be ranked according to the preferences listed in the Dublin
Inclusionary Ordinance Section 8.68.OSOD.
The ordinance specifies points for various preferences in occupant selection
Dublin Resident for over 1 year 3 points
Employed in Dublin for at least 6 month 3 points
• Public service employee working in Dublin 1 additional point
- Senior applicant 1 point
Disabled 1 point
Claiming any of the above preferences in the "Application for Inclusionary Unit" will require
verification by applicant. John Doe, Inc. will request the applicant provide proof within a given
time period (approximately one week). Failure to do so, within the given time period will
disqualify applicant from receiving claimed priority.
Exhibit 2 4
~,t F DU~
G~
~~~ APPLICATION FOR INCLUSIONARY UNIT
`~`~~~ PLEASE PROVIDE THE FOLLOWING INFORMATION:
(Please type or print clearly}
To apply for an Inclusionary Unit, you must list all members of your household: No. in household
1
Name:
Current Address:
City/Zip:
Employer:
Work Address:
City/Zip:
Social Sec. #
Age:
Home Phone #:
Work Phone #:
2
3
Name:
Employer:
Work Address:
City/Zip:
Name:
Employer:
Work Address:
CitylZip:
Social Sec. #_
Age:
Work Phone #:
Social Sec. #_
Age:
Work Phone #:
(If you need additional space please attach a sheet of paper.)
Total Annual Household Income: ~
(Line 3~ of 1040; Line 21 of 1040A; Line 4 of 1040EZ)
To assist us with the process, please check the statement below which applies to at lease one adult that will own the home.
Yes No
Are you over 62 years of age?
Are you permanently disabled? ^ ^
Currently work in Dublin and have continuously for the past 6 months?
And if so, are you a Public Service employee working in Dublin? ^ ^
Currently live in Dublin and have continuously for the past year or longer? ^ ^
I/Vv e certify that the information provided in this application is true and correct.
Signature/Date Signature/Date
Development _
G:~I•IOUSING1InclusionarylAPPL1CATION FOR INCLUSIONARY UN1T.doc
DISCLOSURE STATEMENT
THERE ARE RESTRICTIONS ON THE SALE OF THE
PROPERTY YOU ARE BUYING. EXCEPT FOR A TRANSFER
TO THE CITY FOLLOWING CITY'S EXERCISE OF ITS OPTION
TO PURCHASE, THIS PROPERTY MAY ONLY BE SOLD TO AN
"ELIGIBLE HOUSEHOLD" AT A PRICE NOT TO EXCEED THE
ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN
"AFFORDABLE HOUSING COST."
THIS MEANS THAT YOU MAY NOT S.LL THE PROPERTY FOR MARKET VALUE TO
WHOMEVER YOU LIKE.
THESE RESTRICTIONS WILL BE IN EFFECT UNTIL 55 YEARS. ANY SALE OF THE
PROPERTY IN VIOLATION OF THE RESTRICTIONS, SHALL BE VOIDABLE AT THE
ELECTION OF THE CITY.
TO DETERMINE WHO AN ELIGIBLE HOUSEHOLD IS, AND WHAT THE ADJUSTED
RESALE PRICE AND AFFORDABLE HOUSING COST ARE, YOU SHOULD CONTACT
THE Housing Specialist OF THE CITY OF DUBLIN AT 925-833-6610.
YOU SHOULD ALSO READ THE RESALE RESTRICTION AGREEMENT AND OPTION
TO PURCHASE RECORDED AGAINST THE PROPERTY. YOU MAY OBTAIN A COPY
OF THESE DOCUMENTS FROM THE CITY OF DUBLIN OR FROM THE ESCROW
COMP/RNY.
{ HAVE READ THE FOREGOING AND I UNDERSTAND WHAT (T MEANS.
BUYER BUYER
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Name:
Employer:
Work Address:
City,'Zip:
To apply for an Inclusionary unit, you must list al] members of your household
Name:
Current Address:
City/Zip:
Employer:
Work Address:
City/Zip:
Name:
Employer:
Work Address:
City/Zip:
3
Total Annual Household Income: $
(Line 35 of 1040; Line 21 of 1040A; Line 4 of 1040EZ)
To assist us with the process, please check the statement below which applies to at lease one adult that will own the home.
Yes No
Are you over 62 years of age? ^ ^
Are you permanently disabled? ^ ^
Currently work in Dublin and have continuously for the past 6 months? ^ ^
And if so, are you a Public Service employee working in Dublin? ^ ^
Currently live in Dublin and have continuously for the past year or longer? ^ ^
I/We certify that the information provided in this application is true and correct.
APPLICATION FOR INCLUSIONARY UNIT
PLEASE PROVIDE THE FOLLOWING INFORMATION:
(Please type or print clearly)
Social Sec. #
Age:
Home Phone #,
Work Phone #:
Social Sec. #
Age:
Work Phone #:
Social Sec. #
Age:
Work Phone #:
(If you need additional space please attach a sheet of paper.)
Signature/Date Signature/Date
Development
No. in household
G:ULOUSING\1nclusionarv~P.PPLICATION FOR INCLUSIONARY UNIT.doc EXHIBIT 3
DISCLOSURE STATEMENT
THERE ARE RESTRICTIONS ON THE SALE OF THE
PROPERTY YOU ARE BUYING. EXCEPT FOR A
TRANSFER TO THE CITY FOLLOWING CITY'S EXERCISE
OF ITS OPTION TO PURCHASE, THIS PROPERTY MAY
ONLY BE SOLD TO AN "ELIGIBLE HOUSEHOLD" AT A
PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE
WHICH IS CAPPED AT AN "AFFORDABLE HOUSING
COST."
THIS MEANS THAT YOU MAY NOT SELL THE PROPERTY FOR MARKET
VALUE TO WHOMEVER YOU LIKE.
THESE RESTRICTIONS WILL BE IN EFFECT UNTIL 30 years from first si~nin~ of
this agreement on sale of unit. ANY SALE OF THE PROPERTY IN VIOLATION
OF THE RESTRICTIONS, SHALL BE VOIDABLE AT THE ELECTION OF
THE CITY.
TO DETERMINE WHO AN ELIGIBLE HOUSEHOLD IS, AND WHAT THE
ADJUSTED RESALE PRICE AND AFFORDABLE HOUSING COST ARE, YOU
SHOULD CONTACT THE Housing_ Specialist OF THE CITY OF DUBLIN.
YOU SHOULD ALSO READ THE RESALE RESTRICTION AGREEMENT AND
OPTION TO PURCHASE RECORDED AGAINST THE PROPERTY. YOU MAY
OBTAIN' A COPY FROM THE CITY OF DUBLIN OR FROM THE ESCROW
COMPANY.
I HAVE READ THE FOREGOING AND I UNDERSTAND WHAT IT MEANS.
BUYER
BUYER
EXHIBIT 3
Page 2
DEVELOPER LETTERHEAD
Date
Dear Interested Applicant:
You have completed an Application.for Inclusionar}~ Unitas the first step to qualify to purchase an
Inclusionary or Below Market Rate (BMR) home or condominium in
Your application indicates that you are claiming a City of Dublin Selection Preference/s. We are writing
to verify that/those preference/s and allow for your application to continue for further processing.
Please provide us with the checked material no later than , SPM.
FAILURE TO PROVIDE THE REQUESTED DOCUMENTS BY THIS DEADLINE WILL NOT
DISQUALIFY YOU FROM THE BUYER SELECTION PROCESS, BUT YOU WILL NOT
RECEIVE THE POINTS ASSOCIATED WITH THE PREFERENCE CATEGORY/IES YOU
SELECTED.
If you have any questions please feel free to contact US at (925) xxx-xxxx.
You indicated that you or an adult member who will own and occupy the home:
Are 62 years of age or older
Please submit a copy of a photo identification card indicating birth date. You may use
^ A valid California (or other state with photo id) drivers license
^ A valid California (or other state with photo id) identification card
^ A valid Passport. in English
^ Other valid and official photo identification document
Are permanently disabled
Please provide one of the following documents:
^ A note from your doctor confirming that one adult applicant is permanently disabled
^ Other verification from a State Agency establishing permanent disability status
^ Verification of receipt of SSI
EXHIBIT ~
INCLUSIONARY ORDINANCE PREFERENCE POINT VERIFICATION LETTER
Project:
Page 2
Currently work in Dublin and have continuously for the past six (6) months.
Please submit a copy of both, a first and most recent paycheck stub establishing length of
employment.
Please submit a letter from your employer, on company letterhead, indicating continuous
employment for the past six months.
W2 for the last two years
**If you are a newly hired teacher working in Dublin, please bring in a copy of your
employment contract, to waive the 6 month employment requirement.**
Are a Public Service Employee working in Dublin
In addition to the above needed proof of employment please provide a letter from your
employer indicating your job title and a telephone contact, of an individual who would be
authorized to verify your job title.
***Newly hired teachers in Dublin to bring in a copy of employment contract***
Currently live in Dublin and have continuously for the past year
Please bring us a copy of one of the following:
^ Copy of two utility bills (PG&E or water), one from at least one year ago and the
most recent utility bill both showing the applicant with a Dublin address
^ A copy of a current apartment or house lease for a residence in Dublin, indicating
when you moved in to the apartment or house, and proof that you are still residing
there.
VG'e request that you submit the above documents at our office by in order that your
application for preferences might be considered.
Sincerely,
Josephine Smith
Developer
Area Code (92~ j City Manager 833-6650 City Council 833-6650 • Personnel 833-6605 Economic Development 833-6650
Finance 833-6640 ~ Public Works/Engineering 833-6630 Parks & Community Services 833-6645 • Police 833-6670
Planning,~HousinJCode Enforcement 833-6610 • Building Inspection 833-6620 ~ Fire Prevention Bureau 833-6606
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State income Limits for 2004
Number of Persons in Household
~ County Income Category 1 2 3 4 5 6 7 g
Alameda County Extremely Low 17,400. 19,850 22,350 24,850 26,850 28,600 30;800 32,600
Area Median income: Very Low Income 29,000 33,100. 37,250 41,400 44,700 48;000 51,350. 54,650
$82,200 Lower Income 46,350 53,000 59,600 66,250. .71,550 76.,850 82,150 87;450
Median Income 57,550 65,750 74,000 82,200 88,800. 95,350 101.,950 108,500
Moderate income 69,050 78,900 86,600 98,650 106,550 114;450 . '122,350 130,200
Alpine County Extremely Low 12,750 14,600 16,400 18,250 19;700 21,1.50 2260Q 24,100
Area Median Income: Very Low Income 21,300 24,300 27,350 30,400. 32,850 35,250 37.,700. 40,150
560,800 Lower Income 34,050 38,900 . 43,600 48,650 52,550 .56,400 60,300 64,200
Median income 42,550 48,650 54,700 60;800 .65,650 70,550 75,400 80,250
Moderate income 51,050 58,350 65.650 72,950 78,800 84,600 90,450 96,300
Amador County Extremely Low 12,850 14,700 16,500 18,350 19,850 21,300 22;750 24,250
Area Median income: Very Low income 21,400 24,500 27,550 30,600 33,050 35,500 37,950 40,400
$6"1,200 Lower {ncorne 34,250 39,150 44,050 48,950 52,900 56,800 60,700 64,650
Median Income 42,850 4$,950 55,100 63,200 66,100 71,000 75,900 BO,SOD
Moderate income 51,400 58,750 66,100 73,450 79,350 85,201) 91,100 96,950
Suite Counfiy Extremely Low 10,300 11,800 13,250 14,750 15;900 17;100 18,254 19,450
Area Median Income: Very Low Income 17,200 19,650 Z2,10D 24,550 26,500 28,500. 30,450 32,400
$49.1 DD Lowerlncome 27,500 31,400 35,350 39,300 42,400 45,550- 48,700 51,850
Median Incame 34,350 39,300 44,200 49,100 53,050 56,950 60,900 64,806
Moderate income 41,250 47,100 53,000 58,900 63,600 68,3DC 73,050 77,750
Caiaveras County Extremely Low i2,2DD 13,900 15,650 17,400 16,800 20,200 21,600 22,950
Area Median Income: Very Low Income 20,300 23,200 26,100 29,000 3Y,3D0 33;650 35,950 38,306
$58.000 Lower Income 32,500 37,100 41,750 46,400 50,100 53;800 57,550 61,250
Median income 40,600 .46,400 52,200 56,000 62,650 :67.,300 71,900 76,550
Moderate Income 48,700 55,700 62,650 ''69,600 75,150 60;750 86,300 91,850
Coiusa County Extremely Low 10,300 11,800 ; 13,250 14,750 15,900 17,100 18,250 19,4.50
Area Median Income: Very Low income 17.200 1.9,650 22,100 24,550 26,500 28,500 30,450 32,400
549,100 Lower income 27,500 31,400 35,350 39,300 42;400 45,550 48,700 51,850
Median Income 34,350 39,300 44,200 49,100 53,050 56,950 60,900 64,800
Moderate Income 41,250 47,100 53,000 58;900 63,600 68,300 73,050 77,750
Contra Costa County Extremely Low 17,400 19,850 22,350 24,850 26,850 28,800 30,800 32,800
Area Median Income: Very Low income 29,000 33,100 37.250 41,400 44,700 46,000 51,350 54,650
$82,200 Lower income 46,350 53,000 59,600 66,250 71,550 .76,850 62,150 87,450
Median Income 57,550 65,750 74,000 62,200 88,800 95,350 101,950 106,500
Moderate Income 69,050 78,900 88,800 98,650 106,550 114,450 122,350 130,200
DeI Norte County =xtreme~y Low 1 D,3D0 11.800 13,250 14,750 15,900 17,100 18,250 19,450
Area Median Income: Very Low income 17,200 19,650 22,100 24,550 26,500 28,500 30,450 32,400
$49,106 Lower income 27,500 31,400 35,350 39,300 42;400 45,550 48,700 51,850
Median Income 34,350 39,300 44.200 49,100 53,050 56,950 60,900 64,800
Moderate Income 41,250 47,100 53,000 58,900 63,600 68,300 73,050 77,750
El Dorado County Extremely Low 13,450 15,400 17,300 19,250 20,750 22,300 23,850 25,400
Area Median Income: Very Low Income 22,450 25,650 28,850 32,050 34,600 37,200 39,750 42.300
$64.100 Lower Income 35,900 41,000 46,150 51,300 55,400 59,500 63,600 67,700
Median Income 44,650 51,300 57,700 64,100 69,250 74,350 79,500 64,600
Moderate income 53,850 61,500 69,200 76,900 83,050 89,200 95,350 101,500
~~~i~[~ ~
Main
Utility Allowances as of 10/01/02
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GasHei bE ~ $1i ~~812 $15 ~ gl" ', $17
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Single FarruIy -Tomes=- ` . r'' '~ ~
'Utility' or Seivi~r ,i :,!'` OBR ', ~ 1,ER ''.2 BR 3~BR ~ ~ 4 ER ~ `~ 5 BR
Gas Hosting' $]0 $14 $1~' £21 525 $30
IIeotrc°Heatir~f ~ID,< ~ ~ '51'4 ~~ $2i ?~ $29 ~: I . "~~:..:; ' '.$5°. ',`
Gas Cookii~ ~ $2 ~ ;: €2 j ; $2 ' .:1; ~, $2. ; ~ $2 ~~; $2 ~':'
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ElectricK~'atariiearin,;. ~ 511.; , $`lo• 525 £3l" $32 $3?
'4~Tateri 5S' 'SIt- ,514 ~512~= ';525 ~ $29 _~
'Trz9h~ $1?',:f ~ r$17 ~i7 ' •'I'. $2? $?7 $44
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OtherIIec~. $14 ;, -~0 ~$2? $34 $3G r43
Back to Ton
22941 Atherton 5t., Hayward, CA 94541
(510) 538-887b Main
62003 Housing Authority of Alameda County. All rights reserved.
^~.as~cr-..,r--~-
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http:/iww~~.haca.net%stats.htm 5;'7/2004
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