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HomeMy WebLinkAboutItem 8.1 Fairway Ranch Affordable Housing CITY CLERK File # D~~[a]-~QJ AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 15, 2007 SUBJECT: ATTACHMENTS: 2) 3) ~COMMENDATION: ~ 1) . 2) c)/ 3) 4) FINANCIAL STATEMENT: PROJECT DESCRIPTION: Background Resolution approving the First Amendment to the Affordable Housing Regulatory Agreement for Fairway Ranch Senior Housing and authorizing the City Manager to execute the Agreement, with the Agreement attached as Exhibit A. Affordable Housing Regulatory Agreement for Fairway Ranch Senior Housing. Letter from Charter Properties dated April 23, 2007. Receive Staff presentation; Take testimony from the Applicant and the public; Deliberate; and Adopt Resolution approving the First Amendment to the Affordable Housing Regulatory Agreement for Fairway Ranch Senior Housing and authorizing the City Manager to execute the Agreement. None. The Fairway Ranch project is located in Dublin Ranch Area B within the Eastern Dublin Specific Plan (see Attachment 3). It is bounded by Central Parkway on the north, Dublin Boulevard on the south, Keegan Street on the west, and Lockhart Street on the east. Fairway Ranch is a 24.5 gross acre project approved in 2003 for development in three phases. The 3- phase project has been renamed and is now known as The Groves at Dublin Ranch. Phase 1 includes 322 units of senior citizen apartments known as Cedar and Pine Grove. Phase 2 is a 304-unit complex of family apartments (leased rental units) known as Oak Grove. Phase 3 is the proposed Sycamore Grove COPY TO: ApplicantlProperty Owner File In House Distribution ITEM NO. 8.1 Page 1 of3 G:\PA#\2003\03-010 Fairway Ranch Groves\StaffReports\CCSR Groves Amended AHA 5-15-07.doc G project, which would be comprised of 304 condominium (for sale) units. All three phases of Fairway Ranch include a number of affordable units under the City's Inclusionary Zoning Regulations and an Affordable Housing Agreement with the City that enables the Fairway Ranch project to provide the required affordable units for other neighborhoods within the greater Dublin Ranch project area. The Fairway Ranch project consists of 930 residential units of which 587 units would be affordable to very-low, low, and moderate income households for a period of 55 years. The project exceeds the requirements of the Inclusionary Zoning Ordinance, and is intended to satisfy the affordable housing requirements for 2,655 units of Dublin Ranch, by providing 63% of the 930 units as affordable. The following table provides a breakdown of the distribution of affordable and market rate units for the senior, multi-family and condominium portions of the project. AFFORDABLE AND MARKET-RATE UNIT DISTRIBUTION Senior A artments Multi-Family 61 (20%) 304 A artments For-Sale 0(0%) 0(0%) 52(17%) 252 (83%) 304 Condominiums Total Units 127 187 273 343 930 Percenta e 14% 20% 290/0 37% 100% In exchange for providing affordable housing above and beyond what the Inclusionary Zoning Ordinance requires, the City Council approved "affordable unit credits" for 332 of the affordable units pursuant to Dublin Municipal Code Section 8.68.060. This number of "affordable unit credits" satisfies the Inclusionary Zoning Ordinance requirements for the Fairway Ranch project and for 2,655 units developed in the rest of Dublin Ranch. The developer is also providing an additional 162 affordable units for which the developer did not request "affordable unit credits." The City Council approved other benefits from the City in consideration of the provision of an additional 162 affordable units. These benefits to the developer include: a. Concentration of affordable units on the project site contrary to the Ordinance's provisions; b. Reduced bedroom sizes for the affordable units; c. Different affordable mix between very-low, low and moderate incomes than required by the Ordinance; d. A loan in the amount of $4.5 million (split between the multi-family and senior phases); e. A waiver of possible commercial linkage fees for all future Dublin Ranch commercial areas; f. A reduction in required parking spaces; and g. A reduction in minimum setback requirements. These 162 additional units are not specifically designated in relation to senior, multi-family or for sale units. The senior project and multi-family project are constructed and partially occupied. Within the last few months, City Staff has been meeting with James Tong of Charter Properties, the authorized representative for Dublin Ranch Holdings, LLC, regarding The Groves' difficulties in renting the moderate units at the senior housing project. One of the conditions of Charter's tax credit financing that was used to finance the project is to have the project 90 percent rented by September 2007. Charter Properties believes that over time it will be easier to rent the moderate units and has therefore requested a five-year delay in Page 2 of3 renting 65 of the moderate units. These 65 units are not allocated to affordable housing credits and can be considered part of the 162 additional units referenced above. The City Attorney and Staff have reviewed the various approvals of the project to determine what would need to be amended to allow this five-year delay to occur. Based on Staffs research, only the Affordable Housing Agreement for the Senior Project would need to be amended. Staff has prepared that Amendment for the City Council's review (Attachment 1). The Amendment provides that: · The requirement to rent 65 of the units at the moderate income level is deferred for a period of five years. During this five-year time period, the moderate income units could be rented at a market rate or lower; . At the conclusion of five years, as any market unit becomes available for rent, it will be rented at a moderate rate until all 65 of the deferred units are rented at the moderate income level; and . The 65 deferred units would have a longer period of affordability. While the other affordable units are required to be affordable for 55 years, these 65 units would be affordable for a total of 60 years once the five-year deferral period ended. This additional time would allow for time to turn over 65 of the market units. While it is not known how long it will take to turn over 65 market units, Staff would like one cut-off time period for all the units so that each unit will not have to be monitored separately. RECOMMENDATION: Staff recommends that the City Council: 1) Receive Staff presentation, 2) Take testimony from the Applicant and the public; 3) Deliberate; and 4) Adopt Resolution approving the First Amendment to the Affordable Housing Regulatory Agreement for Fairway Ranch Senior Housing and authorizing the City Manager to execute the Agreement. Page 3 of3 11J '1=>" RESOLUTION NO. - 07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********************* APPROVING THE FIRST AMENDMENT TO THE AFFORDABLE HOUSING REGULATORY AGREEMENT FOR DUBLIN RANCH AREA B - FAIRWAY RANCH SENOR HOUSING WHEREAS, on July 1, 2003, the City Council approved a Site Development Review for P A 03- 010, Fairway Ranch Affordable Housing Community, on approximately 24.5 gross acres (19.4 net acres) of land located in Dublin Ranch Area B, within the Eastern Dublin Specific Plan, between Dublin Boulevard and Central Parkway, East of Keegan Street (APN 985-0027-001) for the development of930 residential dwelling units on three parcels of land, of which 322 are senior rental units, 304 are multi- family rental units, and 304 are for-sale condominiums; and WHEREAS, of the 294 affordable senior rental units, 64 units are restricted to very-low income households, 99 units are restricted to low income households, and 131 units are restricted to moderate income households all for a period of 55 years; and WHEREAS, an Affordable Housing Regulatory Agreement entitled "Affordable Housing Regulatory Agreement by and among Chang Su-O Lin, Hong Lien Lin, Dublin Ranch Senior Apartments, L.P. and the City of Dublin, Dublin Ranch Area B - Fairway Ranch Senior Housing" was approved on December 1, 2003, that contains the legal basis for securing this affordable housing and this Agreement is recorded on the property; and WHEREAS, there are three types of affordable units in the project, 93 Project Affordable Units which satisfy the City of Dublin Inclusionary Ordinance; 162 Excess Affordable Units for which the City has offered certain incentives and waivers; and 332 Affordable Credit Units which are units that have been provided that will result in the ability for the Developer to use these units towards the Inclusionary Zoning Ordinance requirements for 2,655 units in specified areas ofthe City; and WHEREAS, the City of Dublin has received a request from James Tong of Charter Properties, the authorized representative for Dublin Ranch Holdings, LLC, to defer the rental of 65 of the moderate units for five years; and WHEREAS, these 65 deferred moderate units are classified as "additional units"; and WHEREAS, the City Council reviewed Charter Property's request to defer the rental of the 65 moderate units for five years and is supportive of the request; and WHEREAS, an Amendment to the Affordable Housing Agreement has been prepared and is attached as Exhibit A to this Resolution. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby authorize the City Manager to execute the First Amendment to the Affordable Housing Agreement (Exhibit A) on behalf of the City. PASSED, APPROVED AND ADOPTED this 15th day of May 2007 by the following vote: 5" - (b-D 7 g. I ATTACHMENT 1 Page 1 of2 AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2"6 LJ.5 Mayor G:\PA#\2003\03-o10 Fairway Ranch Groves\Reso's & Ord's\RESO Amendment to AHA 5-07.doc Page 2 of2 ~1J 4-5 NO FEE DOCUMENT Recording requested by: City of Dublin When recorded mail to: City of Dublin 100 Civic Plaza Dublin, CA 94568 Attn: City Clerk Space above this line for Recorder's use. FIRST AMENDMENT TO AFFORDABLE HOUSING REGULATORY AGREEMENT by and among Chang Su-O Lin, Hong Lien Lin, Dublin Ranch Senior Apartments, L.P. and the City of Dublin Dublin Ranch Area B - Fairway Ranch Senior Housing EXHIBIT A L11] l.}6" This First Amendment to Affordable Housing Regulatory Agreement (this "First Amendment") is entered into effective as of May 15, 2007 ("Effective Date") by and among Chang Su-O Un (an individual, also known as Jennifer Un) and Hong Uen Un (an individual, also known as Frederic Un) (collectively "Landowner"), Dublin Ranch Senior Apartments, L.P., a California limited partnership (hereafter "Project Owner") and the City of Dublin, a municipal corporation ("City"). City, Landowner and Project Owner are collectively hereinafter referred to as the "Parties." Terms used herein without definition shall have the meaning ascribed to such terms in the Agreement (defined below). RECITALS A. Landowner, Project Owner and City entered into that certain Affordable Housing Regulatory Agreement (the "Agreement), dated as of December 1 , 2003, and recorded in the Official Records of Alameda County as Instrument No. 2003728506 on December 16, 2003. Landowner is the owner of the real property ("Property") located in the City of Dublin, County of Alameda, described in Exhibit A hereto. B. Among other provisions, the Agreement requires 131 units in the Project (the "Moderate-Income Units") to be offered for rent at affordable levels and occupied by households of Moderate-Income or less. C. The Parties desire to amend the Agreement to permit Landowner and Project Owner to defer for a period of five (5) years, the imposition of affordability restrictions for 65 of the Moderate-Income Units (the "Deferred Units") and to extend the time period during which affordability restrictions will apply to such units for an additional five-year period so that rent and occupancy requirements will apply to the Deferred Units for a total of sixty (60) years. NOW, THEREFORE, in consideration of the foregoing recitals (which are hereby incorporated into this Agreement) and the covenants and mutual obligations contained in this Agreement, the Parties hereby agree as follows. Section 1. The following new Section 3.1.1 is hereby added to the Agreement, to read as follows: "3.1.1 Deferral of Occupancy and Rent Restrictions and Extension of Term of Affordabilitv Restrictions for Certain Moderate-Income Units. Notwithstanding anything to the contrary set forth in this Agreement, until January 3, 2012, Landowner and Project Owner may rent sixty-five (65) of the Restricted Units (hereafter, the "Deferred Units"), which pursuant to Section 3.1 and Exhibit B are required to be rented to households of Moderate-Income, without rent restrictions to tenants of any income. Beginning on January 4, 2012, as the Deferred Units become vacant, Landowner 963925-2 2 5rf()t.t~ and Project Owner shall rent the Deferred Units and any vacant unrestricted units in the Project to tenants who qualify as Moderate-Income or less until all occupancy and rent restrictions set forth in Exhibit B have been met for the Project. Notwithstanding anything to the contrary set forth in this Agreement, this Agreement shall remain in full force and effect through January 3, 2072 with respect to the sixty- five (65) Deferred Units. Nothing in this Section 3.1.1 shall preclude Landowner and Project Owner from renting any vacant Deferred Units or unrestricted units to tenants who qualify as Moderate-Income prior to January 4,2012." Section 2. This First Amendment may be signed in multiple counterparts, each of which shall be an original and all of which taken together shall constitute one document. Except as expressly agreed above, the provisions of the Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties have executed this First Amendment to Affordable Housing Regulatory Agreement, effective as of the date first written above. LANDOWNER Chang Su-O Lin Hong Lien Lin PROJECT OWNER Dublin Ranch Senior Apartments, L.P., a California limited partnership By: KL Acquisition Management, LLC, A California limited liability company Its: General Partner 963925-2 3 (PUb4-~ By: Hong Yao Lin, Member CITY CITY OF DUBLIN By: 963925-2 Richard C. Ambrose, City Manager Attest: City Clerk Approved as to form: By: City Attorney SIGNATURES MUST BE NOTARIZED 4 rev Lt? Exhibit A PROPERTY DESCRIPTION (Attach legal description of Senior parcel.) All THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF DUBLIN, COUNTY OF ALAMEDA, STATE OF CALIFORNIA DESCRIBED AS FOllOWS: LOT 1 AS SAID LOT IS SHOWN ON THE MAP OF TRACT 7453, FILED FOR RECORD ON NOVEMBER 24,2003, IN BOOK 273 OF MAPS AT PAGES 52 THROUGH 56, INCLUSIVE, ALAMEDA COUNTY RECORDS. 963925-2 5 State of California County of Alameda On ,20_, before me, , a Notary Public, 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. (seal) Notary Public 963925-2 6 Y>Jb l..J? NO FEE DOCUMENT q11h t+6' 2003728506 12/16/2003 11:47 AM OFFICIAL RECORDS OF R~~MEDR COUNTY PATRICK O'CONNELL . RECO~DrNG FEE: 0.00 '. . __ ',,' t 6, \ "L 0.,)"1..- RECOROlNG HEOUESTEtl tW FIRST AMERICAN Tm..E Recording requested by: City of Dublin III UIIIIIIIIIIII 35 "GS When recorded mail to: City of Dublin 100 Civic Plaza Dublin, CA 94568 Attn: City Clerk <'7 .r ~S~ .J> RECElVEO Jf\N J ? :mM CITY Of U~.tt......cl\J: spaco above this line tot Recorder'S use. AFFORDABLE HOUSING REGULATORY AGREEMENT by and among Chang Su-O Un, Hong Lien Lin~ Dublin Ranch Senior Apartments, L.P. and the City of Dublin \ Dublin' Ranch Area B - Fairway Ranch Senior Housing 628841.12 ST(1 f\~ If'\. c.(A,,-t~ r Attachment 2 .\ l of1tJ ~ This Affordable HOLlsing Regulatory Agreement (this "Agreemenf') is entered into effective as of December 1, 2003 ("Effective Date") by and among Chang Su-O Un (an individual, also known as Jennifer Lin) and Hong Lien Un (an individual, also known as Frederic Un) (collectively "Landowner"), Dublin Ranch Senior Apartments, L.P., a California limited partnership (hereafter "Project Owner") and the City of Dublin, a municipal corporation ("Clty")~ City, Landowner and Project Owner are collectively hereinafter referred to as the "Parties." . RECITALS A. Landowner is the owner of certain real property (the "Property") located in the City of Dublin, County of Alameda, which property is designated as Lot 1 on Tract M.ap No. 7453 and which is more particularly described in Exhibit A attached hereto. B. Landowner has leased the Property to Project Owner pursuant to a ground lease dated as.ofDecember 1. 2003, a memorandum ofwhioh shall be recorded in the official records of Alameda County concurrently herewith. c. Project Owner proposes to develop on the Property a 322-unlt senior rental housing project ("Project") of which no fewer than 292 units shall be rented at prices affordable to certain income groups as specified herein (hereafter, "Affordable Units" or "Restricted Units"). D. This Agreement has been executed and recorded pursuant to the requirements of the City's Inolusionary zoning Ordinance (Dublin Municipal Code Chapter 8.68) (Hlnclusionary Zoning Ordinance") and the City's Density Bonus Ordinance (Dublin Municipal Code Chapter 8.52). E. City has agreed to provide Project Owner with a loan in the amount of $2.25 million (the "Loan") from the City Inclusionary Zoning In-Lieu Fee Fund to support development of the project in order to increase the community's supply of housing available to very low-, low- and moderate-income senior households. The Loan is being provided in order to help maximize the number of Affordable Units in the Project. Project Owner has executed or shall execute a promissory note evidencing the Loan and a loan agreement setting forth certain conditions related to the Loan. In addition, a deed of trust has been or shaH be recorded against certain collateral property to secure repayment of the Loan. F. As required by the Inclusionary Zoning Ordinance and in further consideration for the Loan, Landowner and Project Owner have agreed to enter into and record this Agreement. The purpose of this Agreement is to regulate and restrict the occupancy, rents, operation, ownership and management of the Affordable Units in the Project for the benefit of the Project occupants. The covenants in this Agreement are intended to run with the fand and be binding on Landowner, 2 . \- ,go f. II~~... Project OWner and their respective successors and assigns for the full term of this Agreement. NOW. THEREFORE, in consideration of the foregoing recitals (which are hereby incorporat3d into this Agreement) and the covenants and mutual obligations contained in this Agreement, and in reliance on the representations and warranties set forth herein, the Parties hereby agree as fallows. I. DEFINITIONS 1, DEFINED TERMS. The following terms have the meanings set forth in this section wherever used in this Agreement or the attached eXhibits. "Area Median Income" or "AMt" means the area median Income for Alameda county. California. adjusted for household size, determined periodically by the California Department of Housing and Community Development (UHCD") .as published in Section 6932 of Title 25 of the California Code of Regulations ("Regulations") or successor provision published pursuant to California Health and Safety Code Section 50093(c). If HeD ceases to make such determination, Area Median Income shall be the median income applicable to Alameda County, with adjustments for household site, as determined from time to time by the U.S. Department of Hqusing and Urban Development ("HUO") pursuant to the United States Housing Act of 1937 as amended, or such other method of median income calculation applicable to the City of Dublin that HUD may hereafter adopt in connection with such Act. "City" means the City of Dublin, a municipal corporation, along with any assigns, transferees, or successors -in-interest thereto. "Collateral Property" means the real property in which City shall be provided a security interest in accordance with the Loan Agreement and pursuant to the Deed of Trust described therein. "Deed of Trust" or "Deeds of Trust" means any deed of trust placed on the Collateral Property or City-approved substitute collateral for the benefit of City as security for the Loan, and any amendments to, modifications of, and restatements of such deed(s) of trust. "Eligible Household" means a household whose income upon initial occupancy does not exceed the maximum income level for a Restricted Unit as specified in Exhibit 8 attached hereto and incorporated herein and who otherwise is eligible to rent a Restricted Unit. "Eligible Senior Household" means a household consisting of only the following persons residing permanently in the project Unit: (I) at least one person who is at least fifty-five (55) years of age, and (ii) persons who qualify as a. "qualifying resident," a "qualified permanent resident" or a "permitted healthcare 3 e: . , resident" as such terms are used in California Civil Code Section 51.3 or successor provision. "Loan Agreement" means the loan agreement executed by Project Owner, the owners of the Collateral Property I and City with respect to the Loan, and any amendment, modification, or restatement thereof. The Loan Agreement shall be on file with the City Clerk. "Loan Documents" means collectively this Agreement, the commitment letter dated as of July 1, 2003, issued by City with respect to the Loan ("Loan Commitmenf'), the Loan Agreement, the Deed of Trust, and the Note, as each may be amended, modified,or restated from time to time. "Low-income" means an annual gross income that is not greater than 60%) of Area Median Income, as determined periodically by HCD on the basis of gross annual household income, adjusted for actual household size and other factors and published in the Regulations. If HCp should cease making such determination, "Low-Income" shall be defined as not greater than 60% of Area Median Income, adjusted for household size and other factors as determined by HUD. If both HCD and HUD cease to make such determinations, City in its reasonable discretion may designate another definition of "Low-Income" used by any other federal or state agencyso long as such definition is no more restrictive than that set forth herein. "Moderate-Income" means an annual gross income that is less than or equal to the greater of (i) the maximum income level for households of Moderate Income, as determined periodically by HCD for Alameda County on the basis of gross annual household income, adjusted for actual household size and other factors and published in the Regulations, or (ii) 120% of Area Median Income, adjusted for household size as published in the Regulations. If HCD should cease making such determination, "Moderate Income" shall be defined as not greater than 120% of Area Median Income, adjusted for household size and other factors as determined by HUD. If both HCD and HUD cease to make such determinations, City in its reasonable discretion may designate another definition of "Moderate-Income" used by any other federal or state agency so long as such definition is no more restrictive than that set forth herein. "Note" means the promissory note evidencing the Loan executed by Project Owner in favor of City, and any amendments, modifications, or restatements thereof. The Note shall be on file with the City Clerk. "Project Unit" means any housing unit developed on the Property as part of the Project. . "Property" means the real property described in the attached Exhibit A and any buildings or improvements now or hereafter situated on such real property. 4 12D() ~. . I' , '.Qualifying Rent" means (i) for units that are restricted for rental to Very Low-Income households, a monthly rent which does not exceed one-twelfth of thirty percent (30%) of the maximum income level for households of Very Low- Income, adjusted for household size, as published in the Regulations for Alameda County, (ii) for units that are restricted for rental to Low-Income households, a monthly rent which does not exceed one-twelfth of thirty percent (30%) of sixty percent (60%) of AMi, adjusted for household size, as published il1 the Regulations, and (Hi) for units that are restricted for rental to Moderate~ Income households, a monthly rent which does not exceed one-twelfth of thirty percent (30%) of the maximum income level for households of Moderate-Income, adjusted for household size, as published in the Regulations for Alameda county, provlded however, during any period during which rent and/or occupancy limitations based on household income apply to the Restricted Units pursuant to a regulatory agreement executeQ.4f:l.,.oonn.~lth e~h~r th_s tax-Etxempt financing of the Project or the use of ederallow-income housing tax credlla-T-br the Project, the rent and income limitation set forth in such regulatOry agreement shall prevail. "Restricted Unit" means a Project Unit which is reserved for occupancy at a Qualifying Rent by a Very Low-Income, Low-Income, or Moderate-Income household in accordance with and as set forth in Section 3.1 and Exhibit B. "Very Low-Income" means an annual gross income that is less than or equal to the greater of <I) the maximum income [eve! for households of Very Low- Income as determined periodically by HCD on the basis of gross annual household income, adjusted for actual household size and other factors and published in the Regulations for Alameda County, or (ii) 50Q/o of Area Median Income, adjusted far household size as published in the Regulations. If HCD should cease making such determination, "Very Low-Income'. shall be defined as not greater than 50% of Area Median [ncome, adjusted for household size and other factors as determined by HUD. If both HeD and HUD cease to make such determinations, City in its reasonable discretion may designate another definition of "Very Low- Income" used by any other federal or state agency so long as such definition is no more restrictive than that set forth herein. II. PROJECT OWNER'S OBLIGATIONS 2.1 Compliance with Loan Documents. Project Owner's actions with respect to the Property, the Project and the use of Loan funds shall at all times be in full conformity with the requirements of the Loan Documents. 2.2 Term of Aoreement. This Agreement shall commence upon the Effective Date and shall remain in full force and effect through the fifty-fifth anniversary of the issuance of the final certificate of occupancy for the Project. All provisions of this Agreement shall remain effective and fully binding for this full term regardless of any expiration of the term of the Loan, any payment or prepayment of 5 \3"b~ . the Loan, any assignment of the Note, any reconveyance of a Deed of Trust, or any sale, assignment, transfer, or conveyance of the Property or Project, unless terminated earlier by City in a recorded writing or extended by the mutual consent of the Parties. 2.3 Bindino Upon Successors: Covenants to Run with the Land. Subject to Section 5,1 , a II provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-in- interest, transferees, and assigns of Landowner, Project Owner and City, regardless of any assignment, payment, prepayment, expirajion, or extinguishment of the Loan or Note, any reconveyance of any Deed of Trust, or any conveyance or transfer of the Property, the Project or any part thereof or interest therein. Any successor-In-interest to Landowner or Project Owner including without limitation any purchaser, transferee or lessee of the Property or the Project (other than the Project tenants) shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or the Project shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or other instrument has been executed prior to the date hereof, Project Owner and Landowner hereby covenant to obtain and deliver to City an instrument in recordable form signed by the parties to such contract. deed, ground lease or other instrument pursuant to which such parties acknowledge and accept this Agreement and agree to be bound hereby. The Parties intend that the covenants, conditions and restrictions set forth in this Agreement shall be deemed covenants running with the land and shall bind the Property and every person having an interest in the Property or part thereof during the term of this Agreement. Landowner and Project Owner agree for itself and themselves and for the successors of each that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property in favor of City. The Parties hereby declare that it is their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Landowner and Project Owner's legal inter-est in the Property is rendered less valuable thereby. The Parties further declare that it is their understanding that the benefit of such covenants touch and concern the land by enhancing art:l increasing the enjoyment and use of the Project by Low- , Very-Low- and Moderate-Income tenants ofthe Restricted Units, and by furthering the public purposes of the Inclusionary Zoning Ordinance. The covenants, conditions and restrictions hereof shall apply uniformly to the Property in order to establish and carry out a common plan for the 'use, development and improvement of the Property. 6 J LfUfJ t+~w . III. RESTRICTED UNIT OCCUPANCY AND RENTS 3.1 . Occuoancy of Restricted Units. For the full term .of this Agreement, .occupancy of the Project shall belimitec.l t.oElIgible SeniorHousehalds, .and occupancy of the Restricted Units shall be limited t.o EWgible HOLJseho1dsin the number and in accordance with the income limItationS .$.9t farth in Exhibit B. The Restriotecj Units shall initially be dispersed within the Project as specified in the City-approved Site Deve~opment Revi ew for the Project. The income levels and other qualifications .of appligants for Restricted Units shall be certified prior to initiaJoccupan~y and recertified yearly by ProjeotOwneT in an annual report in conformance With Section8.68,050Bof the Inclusionary Zoning Ordinance.tn the event that r$certlfication of tenantincomesindicSltes that the number of Restricted thilts actuaHyoccupied by5ligJbieHousehgld$ flails below the number reserved for each respectivejncomegroupa$specifi~qin Exhibit 8, Project Owner shall rectify the condlti.on by renting the next available PrQject Unit or Units to Eligible Household(s) from that income group until the required income mix is achieved. Notwithstanding the foregoing. no tenant qualifying for a Restricted Unit shall be dehied contlniJed occupancy of a unit in the Projeot because, aft.er admission, such tenant's adjusted income increases to exceed the qualifying limit for suoh tenant If a tenantwhe>st initial QOcupancy qualified as Very Low, Low- or Moderate-Income, such tenant shall be treated as continuing to be of Very-,Low, Low- or Moderate-Incomei asappli.c@!'>.le,solong as the tenant's income does not exceed 140% of the applicable income limit. Notwithstanding the foregoing. the disqualified tenant (Le., one who$e income exceeds 140% of the ~pplicable income limit) shall be deern~d toquaUfy ~$ a Very Low-, Low-, or Moderate-Income tenant, as applicable. provided that the next available vacant unit of comparabliSl or smaller size as the unit with the disqualified tenant is rented to a tenant who qualifies at the applicable income level after which the. unit with the disqualified tenant will no longer qualify as a Restricted Unit. Restricted Units shall be of comparable design quallty as other Project Units. but may have reduced interi"or amenities. project Owner shall give priority for Restricted UnIts to Eligible Households in accordance with the selectian criteria specified in Paragraph D of Section 8.68.050 of the City's Inclustonary Zoning Ordinance attached hereto as Exhibit D to the extent permitted byappUCable federal and state fair housing laws. Tenants of RestrictedUnits shall have access to all common facilities of the Project eqwal to that often ants .of Project Units that are nofRestricted Units. 3.2 Rents for Restricted Units. Rents for Restricted Units shall be limited to Qualifying Rents. 7 /5dfJ y.5" ." 3.3 Condominium Conversion. Project Owner shall not convert Project Units to condominium or cooperative ownership or sell condominium or cooperative conversion rights to the F>roperty or project during the term of this Agreement. 3.4 Nondiscrimination. Project Owner shall not discriminate or segregate in the use, enjoyment, occupancy, conveyancer lease, sublease, or rental of Project Units on the basis of race, color, ancestry, national origin, religion, creed, sex. or marital status. 3.5 .$huttle Service. Project Owner shall provide a shuttle service for residents of the Project for 30 years from the date of Issuance of the first Certificate of Occupancy for the Project. The shuttle service shall be in accordance with the plan for service approved by the City's Community Development Director and shall outline the type and number of shuttles which wlll provide transportation for the residents of the project, the shuttle schedule, route, and hours and days of operation, and other necessary details as determined by the community Development Department. IV. PROPERTY MANAGEMENT 4.1 ManaQement Responsibilities. Project Owner shall be responsible for all management functions with respect to the Property and the Project, including without limitation the selection of tenants. certification and recertiiication of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security- City shall have no responsibility over management of the Property 0 r the Project. 4.2 Manaoement Entitv. Subject to Section 4.11, City shall have the right to review and approve the qualifications of any management entity proposed by Project Owner for the Property ("Management Firm"). Any contracting of management services py Project Owner shall not relieve Project Owner of its primary responsibilities for proper performance of management duties, At least 90 calendar days prior to the issuance of the first building permit forthe Project, Project Owner shall submit for City review and comment, a proposed management contract ("Management Contract") together with such information about the proposed Management Firm (including without limitation a description of the Management Firm's experience, staff and qualifications) as City may reasonably request. The Mana.gement Contract shall describe the services to be provided by the Management Finn, including without limitation, marketing. tenant qualification and certIfication, maintenance, and repairs. B \~~4~ ..,. " During the term of this Agreement, subject to Section 4.11, City shall have the right to review and approve any proposed amendments to the Management Contract, any new management contracts, and any new Management Firm proposed for the Project. 4.3 MarketinQ and Manaoement Plan. Not later than 180 calendar days after the Issuance of the first building permit for the Project, Project Owner shall submit to City for review and (subject to Section 4.11) City approval, a plan for marketing and managing the Property (the "Marketing and Management Plan"). The Marketing and Management Plan shall address in detail how Project Owner plans to market the availability of Restricted Units to prospective Eligible Households in accordance with the selection criteria specified in the City's lnclusionary Zoning Regulations, and how Project Owner plans to certify the eligibility of Eligible Households. The Plan shall also address how the Project Owner and the Management Firm plan to manage and maintain the Property and the Project, and shall include appropriate financial information and documentation. The Plan shall include a form rental agreement that Project Owner proposes to enter into with Project tenants. Project Owner shall abide by the terms of the Marketing and Management Plan in marketing, managing, and maintaining the Property and the Project, and subject to Section 4,11, throughout the term of this Agreement, shall submit proposed modifications to CitY for its review and approval. 4.4 ADoroval of Amendments. If City has not responded to any submission of the Management and Marketing Plan, the Management Contract, the proposed Management Firm, or a proposed amendment or change to any of the foregoing within 20 business days following City's receipt of such plan, contract, amendment, or proposal the plan, contract, amendment or proposal shall be deemed approved by City. 4.5 Maintenance and Security. Project Owner shall at its own expense maintain the Property and the Project in good condition, in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions for the benefit of Project Unit occupants. Project Owner shall not commit or permit any waste on or to the Property, and shaH prevent and/or rectify any physical deterioration of the Property and the Project. Project Owner shall provide adequate ongoing security equipment and services for Project Unit occupants. Project Owner shall maIntain the Property and the Project in conformance with all applicable state, federal, and local laws, ordinances, codes, and regulations and the Management and Marketing Plan, but Project Owner's maintenance obligations shall not be limited to the standards specified in such laws or the Marketing and Management Plan. . 4.6 Insoection and Records. Project Owner shall maintain records which clearly document Project Owner's performance of its obligations to operate the Project pursuant to the terms of this Agreement. Project Owner shall su bmit any such records to City within ten business days of City's request. Project 9 11 no 1../-5 ~ iI-' Owner shall permit representatives of City to enter and inspect the Property and the Project during reasonable business hours for compliance with obligations under this Agreement upon 24 hours advance notice of such visit to Project Owner or Project Owner's management agent, as permitted under applicable law. 4.7 Annual Report and Certification. Project Owner shall submitan annual report (UAnnual Report") to City in conformity with the requirements of Section 8.68.050B of the Inclusionary Zoning Ordinance together with a certification that the Project is in compliance with this Agreement, and that the income information supplied in the Annual Report is based upon information supplied by the tenants of the Restricted Units in certified statements. project Owner shall mai ntaln such tenant certificates and shall supply copies thereof to City upon request. The Annual Report shall include for each Restricted Unit the rental rate and the income and household size of the ocoupants. The Annual Report shall conform to the format requested by City: provided however, during such time that the Project is subject to a regulatory agreement restricting occupancy and/or rents pursuant to reqUIrements imposed in connection with the use of federal low-income housing tax credits or tax-exempt financing. Project Owner may satisfy the requirements of this section by providing City with a copy of compliance reports required in connection with such financing. 4.8 Fees. Taxes. and Other Levies. Project Owner shall be responsible for payment of all fees, assessments, taxes, charges, liens and levies imposed by any public authority or utility company with respect to the Property or the Project, and shall pay such charges prior to delinquency. However, project Owner shall not be required to pay any such charge so long as (a) the legality thereof is being contested in good faith and by appropriate proceedings. and (b) Project Owner maintains reserves adequate to pay any contested liabilities. . 4.9 Insurance Coveraqe. Project Owner shall maintain in full force and effect during the term of this Agreement insurance coverage as specified in Exhibit 0; provided however, during such time that lenders or IO\Moincome housing tax credit investors providing financing for the Project impose insurance requirements that are inconsistent with the requirements set forth in Exhibit D, Project Owner may satisfy the requirements of this Section by meeting the requirements of such lenders or low-income housing tax credit investors. Notwithstanding the foregoing, throughout the term hereof, Project Owner shall comply with the provisions of Exhibit D pertaining to (i) provision to City of proof of insurance for the Project, (ii) naming of City as an additional insured, and (Hi) provision to City of notice of cancellation or reduction in coverage. 4.10 PropertY Damaoe or Destruction. If any part of the Project is damaged or destroyed, Project Owner shall repair or restore the same, consistent with the requirement to provide Restricted Units as specified in Exhibit B. Such work shall be commenced within 120 days after the damage or loss occurs and shall be completed within one year thereafter, provided that 10 1 <6 Vb i..ftG ja... , insurance proceeds are avatlable to be applied to such repairs or restoration within such period. 4.11 Lender and Investor Approvals. During such time that lenders or low-income housing tax credit investors providing financing for the Project impose requirements that are inconsistent with the requirements of Sections 4.2 I 4.3.4.5, or 4,10, City's rights under su::h sections shall be suspended, and the requirements of such lenders and investors shall prevail: provided however, throughout the term hereof, the provisions of this Article IV requiring submission of proposed marketing and management plans and contracts for City review shall apply. v. GENERAL PROVISIONS 5.1 Recordation: Limited Subordination. This Agreement shall be recorded in the official records of Alameda County. Project Owner and Landowner hereby represent, warrant and covenant that with the exception of the Declaration of Covenants, Conditions and Restrictions executed by Landowner with respect to the Property for the benefit of City C'CC&Rs") and the applicable Development Agreements (as defined in the CC&Rs), absent the written consent of City, this Agreement shall not be subordinated in priority to any lien (other than those pertaining to taxes or assessments levied against the Property), encumbrance, or other interest in the Property, including without limitation, any lease of all or part of the Property pursuant to one or more ground leases. If at the time this Agreement is recorded, any interest, lien, ground lease, or encumbrance has been recorded against the Property in position superior to this Agreement, Landowner and Project Owner hereby covenant and agree to promptly undertake all action necessary to clear such matter from title or to subordinate such interest to this Agreement, and to provide such evidence thereof as City may reasonably request. Notwithstanding the foregoing, provided that the CC&Rs have been recorded in accordance with the Loan Commitment, this Agreement (but not the ce&Rs) may be subordinated to the interests and rights of senior lenders providing financing for the Project in a manner customary for a Fannie Mae or Freddie Mac credit enhanced tax~exempt bond transaction if and to the extent so required. 5.2 Transfer and Encumbrance of Property. Except as provided in this Section, during the term of this Agreement, neither Landowner nor Project Owner shall make or permit any sale, agreement to sell, assignment, conveyance, lease (including any ground lease of all or a portion of the Property) (other than the lease or rental of Project Units and the lease or rental of commercial space within the Project), or transfer. of the Project, or any part thereof, including the sale of any general or limited partnership interests, the removal of any general partner, or subject to the provisions of Article IV, including without limitation, Section 4.11 thereof, any substantial change in operational or management control over the project (collectively referred to as "Transfers"), without the prior written consent of the City Manager. Any such unauthorized Transfer shall be void. 11 I Cf t1[) 1f5' ..a The City shall not withhold its consent to the following assignments, . transfers of interest, and encumbrances: (i) a transfer from Project Owner to an entity which is under the direct control or under the common control of project Owner ("Controlled Affiliate"); (ii) a transfer from Project Owner to a limited partnership in which Project Owner or a Controlled Affiliate is the general partner ("Project Owner Limited Partnership"): (iii) transfer of the initial limited partner's interest in Project Owner or in a Project Owner Limited Partnership to an investor limited partner, (Iv) a transfer of the general partner's interest in Project Owner or in a Project Owner Limited Partnership to a Controlled Affiliate; (v) a transfer from a Project Owner Limited Partnership to Project Owner or a controlled Affiliate: (vi) a transfer to the construction or permanent lender for the Project or to a third party by foreclosure, deed in lieu of foreclosure or comparable conversion of any lien on the Property or to any subsequent transfer by such lender or third party following such foreclosure, deed in lieu of foreclosure or comparable conversion; and (vi) a transfer by an investor limited partner to Project Owner upon termination of the low-income housing tax credit compliance period; provided that prior to any of the foregoing transfers, Project Owner shall deliver to City a copy of the transferee's organizational documents and the final form of the assignment and assumption agreement effectuating such transfer. In addition, City shall not withhold its consent to the sale, transfer or other disposition of the Project, in whole or in part, provided that (1) Project Owner is not in default hereunder or under any of the Loan Documents; (2) the Project is and shall continue to be operated in compliance with this Agreement; (3) the transferee expressly assumes all obligations of Project Owner imposed by this Agreement and the Loan Documents; (4) the transferee executes all documents reasonably requested by the City with respect to the assumption of the Project Owner's obligations under this Agreement, including without limitation an instrument of assumption hereof, and delivers to the City an opinion of its counsel to the effect that each such document and this Agreement are valid, binding and enforceable obligations of suc h purchaser or assignee; (5) either (a) the transferee has at least three years' experience in the ownership, operation and management of senior mixed-income rentat housing prQJects of similar size to that of the Project, without any record of material violations of discrimination restrictions or other state or federal laws or regulations applicable to such projects, or (b) the transferee agrees to retain a property management firm with the experience and record described in subclause (a) above; and (6) in City's reasonable determination, the transferee has the financial and managerial capacity to comply with the terms of all agreements binding on the transferee relating to the Project. In the event a general partner of Project Owner or of a Project Owner Limited Partnership is removed by the limited partner thereof for cause following default under the partnership agreement, the City hereby approves the transfer of the general partner interest to another party that is selected by the limited partner and approved by the Project lender; provided that (i) following such transfer, the Project shall continue to be operated in compliance with this Agreement, and (ii) 12 (;) O-qj tf5' .' such party meets the requirements of clauses (5) and (6) of the preceding paragraph. 5.3 Default a nd Remedies. In the event of any breach or violation of any representation, covenant, agreement, obligation, or warranty under this Agreement, City shall give written notice of such event to the defaulting party. Such notice shall specify the nature of the act, omission, or deficiency giving rise to the default. In addltion, if the default is curable and does not give rise to an imminent danger to health or safety, ~he notice shall also specify the action required to cure the default, and a reasonable date, which shall not be less than 15 calendar days from the mailing of the notice, by which the defaulting party must take or t;ommence such action to cure. If the notioe specifies only a commencement date for the cure, Landowner or Project Owner, as applicable, shall commence such cure within the specified time and shall diligently pursue the cure to completion within a reasonable time thereafter. If the defaulting party fails to cure or commence to cure the breach or violation within the time frame specified in the notice, or if a cure is not possible, City may proceed with any of the following remedies: A. Bring an action for equitable relief seeking the specific performance of the terms and oonditions of this Agreement, and/or enjoining. abating, or preve nting any violation of suoh terms and conditions, and/or seeking declaratory relief; B. For violations of obligations with respect to occupancy restrictions for Restricted Units, maintenance, and Project Unit vacancies, impose as liquidated damages a charge in an amount of $25 per day for eaoh Project Unit that is not operated in compliance with this Agreement; C. For violations of obligations with respect to rents for Restricted Units, impose as liquidated damages a oharge in an amount equal to the actual amount collected from any Eligible Household in exc~ss of the Qualifying Rent; D. Pursuant to the Loan Agreement, accelerate and declare the balance of the Note and interest accrued thereon immediately due or foreclose on the Collateral Property pursuant to the Deed of Trust: or E. Pursue any other remedy allowed at law or in equity. The Parties agree that the sums and formulas designated herein as liquidated damages represent a reasonable approximation of the damages City is likely to suffer from violations of the respective terms. Project Owner agrees to pay In full any accrued liquidated damages to City within ten business days of a written 13 0<1~~ e" d'~~~ demand by City for such payment. Notwithstanding the foregoing, City shall suspend its right to pursue the remedies provided under paragraphs 8 and C above in a manner customary for a Fannie Mae or Freddie Mac credit-enhanced tax-exempt bond transaction if and to the extent so required. 5.4 . MortoaQee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Project or the Property, and the purchaser atany trustee's sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall be bound by and subject to this Agreement from and after such trustee's sale or foreclosure sale. Promptly upon determining that a violation of this Agreement has occurred, City shall give written notice to the holders of record of any mortgages or deeds of trust encumbering the Project or the Property that such violation has occurred. 5.5 Third Party Beneficiaries. The tenants of Project Units are intended to be third party beneficiaries of this Agreement, and shall have such rights and remedies to enforce any of Project Owner's obligations under this Agreement as may be available to third party beneficiaries under the law. 5.6 Non-Liabilitv of City Officials, Emplovees and Aoents. No officIal, officer, director, employee, or agent of the City shall be personally liable for any obligation created under the terms of this Agreement, except in the case of actual fraud or willful misconduct by such person. 5.7 Indemnit~ Notwithstanding the insurance coverage required herein, Project Owner and Landowner shall indemnify and hold the City and its officials, officers, directors, employees. and agents (collectively, the "Indemnified Parties") harmless from any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys' fees) which an Indemnified Party may incur as a result of (1) Project Owner's or Landowner's failure to perform any obligation as and when required by this Agreement; (2) any failure of Project Owner's or Landowner's representations or warranties to be true and complete; or (3) any act or omission by Project Owner, Landowner, or any contractor, subcontractor, management agent, or supplier with respect to the Project or the Property, except to the extent that such losses are caused solely by the gross negligence or willful misconduct of City. Project Owner or Landowner shall pay immediately upon an Indemnified Party's demand any amounts owing under this indemnity, The duty of the Project Owner and Landownerto indemnify includes the duty to defend the Indemnified Party in any court action, administrative action. or other proceeding brought by any third party arising from the Project or the Property with counsel selected by City. Project Owner's and Landowner's duty to indemnify the Indemnified Parties shall survive the expiration or earlier termination of this Agreement. 14 - . ,,' " 5.8 Governing Law. This Agreement shall in all respects be construed and enforced in accordance with laws of the State of California without regard to prJnciples of conflicts of laws. The Parties agree that, subject to the City's sole and absolute election, all suits, actions or other proceedings, arising out of or related to this Agreement or the other Loan Documents shall be subject to litigation in courts having situs within California. Project Owner and Landowner hereby consent and submit to the jurisdiction of any local, state or federal coLrt located within California. 5.9 Attornevs' Fees and Costs. In the event that a legal or administrative action is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action. 5.10 Time. Time is of the essence in the performance of this Agreement. 5.11 Consents a nd Approvals. Any consent or approval required under this Agreement shall not be unreasonably withheld, delayed, or conditioned. 5.12 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 Sectfon. AI! such notices shall be sent by: (a) pers~nal 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 Dublin, CA 100 Civic Center Drive Dublln, CA 94568 Attention: Community Development Director 15 d 3'1J ,+G:~. .... Project Owner: Dublin Ranch Senior Apartments, L.P. c/o Charter Properties 4690 Chabot Drive, Suite 100 Pleasanton. CA 94588 Attention: 'James Tong Landowner: Chang Su-O Un and Hong Lien Un c/o Charter Properties 4690 Chabot Drive, SuIte 100 Pleasanton, CA 94588 Attention: James Tong 5.13 Relationshil;? of Parties. The relationship of Project Owner l Land~wner and City shall not be construed as a joint venture, equity venture, or partnership. City neither undertakes nor assumes any responsibility or duty to Project Owner, Landowner, or any third party with respect to the Property, the construction or operation of the Project, or the actions of Project Owner or Landowner, or otherwise. Neither Landowner nor Project Owner shall have authority to act as an agent of City or to bind City to any obligation. 5.14 Waiver. Any waiver by City of any term or provision of thiS Agreement must be in writing. No waiver will be implied from any delay or failure by City to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time City grants with respect to the performance of any obligat.ion required pursuant to this Agreement shall not operate as a waiver of or r'elease from any term or provision of this Agreement or obligation of Landowner or Project Owner hereunder. City's consent to any act or omission by Landowner or Project Owner shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for City's written consent to future waivers. 5.15 Other Agreements. Project Owner and Landowner represent that neither has entered into any agreement that would restrict or compromise such party's ability to comply with the terms of this Agreement. Neither projact Owner nor Landowner shall enter into any agreement that is inconsistent with the terms of this Agreement without the express written consent of City, Notwithstanding the foregoing or anything to the contrary contained herein, if the terms of any financing for the Project require greater affordabHity restrictions than those imposed hereby, the requirements of such other financing shall prevail for the term of such financing. J6 2c.i-~'~ e' .. 5.16 ,A,.mendments and Modification~ Any amendments or modifications to this Agreement must be in writing, and shall be effective only if executed by the Parties. 5.-17 Severability; Caotions: Further Assurances., If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby, The captions of the sections and articles of this Agreement are for convenience only and are not intended to affect the interpretation or construction of the provisions herein contained. The Parties agree to execute, acknowledge and deliver such other documents and instruments, and take such other actions as any Party may reasonably request as may be necessary to carry out the intent of this Agreement. 5.18 Exhibits. The following Exhibits are attached to this Agreement and are hereby incorporated into this Agreement by reference: Exhibit A: Exhibit B: Exhibit C: Exhibit D: Property Description Occupancy Restrictions Inclusionary Zoning Ordinance Insurance Requirements 5.19 Counterparts. This Agreement may be signed in multiple counterparts, each of which shall be an original and all of which taken together shall constitute one document. J7 25~ct6' e.- 2&'l16Lf~ IN WITNESS. WHEREOF, the Parties have executed this Affordable Housing Regulatory Agreement, effective as of the date first written above. LANDOWNER ~ '-I' PROJECT OWNER DUblin Ranch Senior Apartments, L.P., a California limited partnership By: KL Acquisition Management, LLC, A California limit liability company Its; CITY CITY OF DUBLIN By: Richard C. Ambrose, City Manager Attest: City Clerk Approved as to form: By: City Attorney SIGNATURES MUST BE NOTARIZED. 18 2iDb '+6' IN WITNESS WHEREOF I the Parties have executed this Affordable Housing Regulatory Agreement, effective as of the date first written above. LANDOWNER Chang Su..o Un Hong Lien Un PROJECT OWNER Dublin Ranch Senior Apartments, L.P., a California limited partnership By: KL Acquisition Management, LLC, A California Iimi d liability compa Its: crTY ::~~~ ichard C. Ambros, ity Manager Approved as to form: By: , S,lv.4.(, 18 . e" n d/)Jft5 ACKNOWLEDGMENT TAIWAN ) CITYOF TAIPEI ) SS. AMERICAN INSTITUTE IN ) TAIWAN, TAIPEI OFFICE Mar{etta L. Davison ON _ _ f"\ ~ f'\ 9nn~ 2003, BEFORE ME Special Notary (PL96-S) , ~ Lien, Hong-Lien aRd Lill, Hong-Lien as Attorney-in-Fact PERSONALLY APPEARED of Chang Su-O Lin- PEI1S0fi,h^.LLV KtJO\N~J TG---ME (On PROVED TO ME ON THE BASIS OF SATiSFACTORY EVIDENCE) TO BE THE PERSON WHOSE NAME IS SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE EXECUTED THE SAME IN HIS AUTHORIZED CAPACITY, AND THAT BY HIS SIGNATURE ON THE INSTRUMENT THE PERSON, OR ENTITY UPON BEHALF OF WHICH THE PERSON :::::::CQli;;:;:;;ENT l ~ --""- NAME (PRINTED), M"rf~ttn 1" n~,~~1?'''l'!i ,-1""":,,,1 "'.f,; ,.. (PL9l.:-i" i:'\,.'.',.\.... J.'.,,)o,.,_lY v. ,)" SPECIAL NOTARY ( DulY AvvoiIltcd and Ciml.l.ified .My wmmisalon e.x.pires August 28, 2004 MY COMM1SSION EXPIRES: . ,- ." ~ 2-C1 '1J LfG ILLEGIBLE NOTARY SEAL. DECLARATION (Go-vernment Code 27361.7) I declare under penalty of perjury that the notary seal on the document to which this statement is attaehed, reads as follows: N~ OFNOTARY PUBLIC: fYlti ( i.e +tv. L Day; S 0 V) 'PL, '1 (0- <9 COMMISSION NUMBER: NOTARY PUBLIC STATE: ~: (Alo..,V\ COUNTY: ~q~\\ MYCOMM.EXPIRES: ([-2-8 -ot (DATE) 'I1IE ABOVE INFORMATION MUST BE LEGIBLE FOR sCANNING CALIFORNI~ ALL-PURPOSE ACKNOWLEDGMENT 3D tJA ~~ v' STATE OF CALIFORNIA COUNTY OF SAN FRANCISCO ) ) S8. ) On December 812003 before mel Paul Toland, Notary Public Oa\" Name and TnIa 01 Olfiaer (e.g, 'Jane Dw. NQtllry Pubti!l') personally appeared f/ffflltl Y~D t.:vn V o personally known to me - OR - iii proved to me on the basis of satisfactory evidence to be the person~ whose name(6) is/ere-subscribed to the within instrument and acknowledged to me that het8J~9/tbay executed the same in his!fler/tlleir authorized capacityttee1, and that by his,4,er/their signatur~ on the instrument-trre-- parseR{e), 'ef the entity upon behalf of which the pers~) acted t executed the instrument. Name or SIQIlllr(I) r.'""-'-....~........ft1..~.~.......-"-.'"~ :': I"~ I' " '\,' I It. . ,.or', ~\.1I, I .,~'; :,.,'1.. . .\..,D .' '. #~ J. '.~:~ . "'.~: . ..~.;~.~:~.:. ....~:.r :_.7;~;:~,..:~ ~ . 'f,. ....... . ",.,t..."laQ S;. L. .:. ~$ \;-:;.;,\:::-:; ~:Ql..'.~ty f ' ,~ ~; .. ':..,'.:,">,0':..iC1J:..orllazo,t ,'....'l\.\......."..,~.....:,......,~:Jy... ~~ .... ..... WITNESS my hand and official seal. ()....J- J:L.a Signature of Notary PUblic OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form, CAPACITY(fES) CLAIMED BY SlGNER{S) CJ Individual CJ Corporate Officer fill OiSC,IPTION OF ATTACltD DOCUMENT 0uLalJ1t !IotMA-1?1! ~ ~remlt4tv .. V Title or Type of Document T1tle(s) o Partner(s) 0 limited o General o Attorney-in-Fact Number of Pages o Trustee(s) o Guardian/Conservator o Other: Date of Document Signer is Representing: Name of Person(s) or Entity(ies) 5igner(s) Other Than Named Above ~- nOCSSFl ;552359,1 . . 31~~ ILLEGIBLE NOTARY SEAL DECLARATION (Government Code 27361.7) I declare under penalty of perjury that the notary seal on the docum'ent to which this statement is attached, reads as fonows: , ....,..." .. NAME OF NOTARY PUBLIC: ,.".1 COMMISSION NUMBER: NOTARY PUBLIC STATE: COUNTY: MY COMM. EXPIRES: PRINT NAME OF DECLARANT: It' 0 ::2.e.Yl5b ~ vY\.t. / .. l f./ CITY & STATE OF EXECUTION: f!t..A.J~ 12-411 CA- I /-&""/0-'0) SIGNATURE OF DECLARAN : DATE SIGNED: THE ABOVE INFORMATION MUST:BE LEGIBLE FOR SCANNING 3Zt LtG . CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT State. of California County of 1I L- A f1 E../JA }~. ~ ;;.;' ~ · .. ~; ~~- eo. - J _'I Commission 'It 12BXl69 z :l NoIay PUblIc - CaBfonia j; j' Alameda county f - - ~ ~~~":~~ -zre me, 1!i1'1 KEt;,g;{ orltR.'1 PI-! /2,LIL.. ILHfI ~ r;.nlH a:4i/6.;foscr' ~rf~UbIlO") ._. N'""II(..) 01 SlQner(5) M personally known to me ~ proved to me on the basis of satisfaotory evidence on~1-08 personally appeared to be the person~ whose name~ is/~ subscribed to the within instrument and acknowledged to me that he~'y executed the same In his~ir authorized capacity(tK}. and that by hisMfj.tt1e1r signature~n the instrument the person.(os') , or the entity upon behalf of which the persop(.sf acted, executed the instrument. Place N(>\,lfY s..,,1 /lobUoIe Signer(s) Other Than Named Above:~I!r...~ LI JJ. . 7/OiIc;.YAO 1-1 N I Capaclty(ies) Claimed by Signer Signer's Name: __. ... o Individual I ' Corporate Officer - litle(s): __ . o Partner -1.1 Limited 0 General o Attorney in Fact U Trustee lJ Guardi.m or Conservator -; Other: HIJNfT LlEN..... LI Ai . #' RlmnTlllJMBPRlN I OF SIGNER Top 01 thuml) hM'! Signer Is Representing; Prud. NQ, 5\lO7 Reorder' 09I11\lf1'Hn 1-800.s7l'o-6S27 o legS N.liomIf NoIary ~lIlnan'!l8!;l1 D. So<<> ,...., P.O. eo. ~402. CI\slewMh, CA 9131:1-2<102 . _MlIOnaInalllI'Y.or9 .' " Exhibit A PROPERTY DESCRIPTION (Attach legal description of Senior parcel.) ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF DUBLIN, COUNiY OF ALAMEDA, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS: LOT 1 AS SAID LOT IS SHOWN ON THE MAP OF TRACT 7453, FILED FOR RECORD ON NOVEMBER 24,2003, IN BOOK 273 OF MAPS AT PAGES 52. THROUGH 56, INCLUSIVE, ALAMEDA COUNTY RECORDS. ~Vb~ .., Exhibit B OCCUPANCY AND RENT RESTRICTIONS (SENIOR HOUSING COMPONENT) Restricted Unit Number of Maximum Initial Type Required Income Limit Restricted Units 1-Bedroom 64 VLI 50% of AMI 37 LI 60% of AMI 55 MOD 120% of AMI 2-Bedroom - 50% of AMI 60 LI 60% of AMI 76 MOD 120% of AMI 3-Bedroom . 60'% of AMI . 120% of AMI Total Restricted 292 Units Total 30 Unrestricted Units Total Project Units 322 AMI= Area Median Income VLI = Very Low-Income LI = Low Income MOD = Moderate-Income Maximum Init/allncome Limit:::; Maximum income for a household to qualify for initial occupancy in the specified Restricted Unit. 3~~~ .. ....." 3 tSAb ~ Exhibit C INCLUSIONARY ZONING ORDINANCE (Attach Dublin Municipal Code, Chapter 8.68) . 11. 314lJ}.. Lf ~ INCLUSIONARY ZONING REGULATIONS -U. , . Chapter B.68 - CIlAPTER 8.68 INCLUSIONARY ZO~'1NG REG1JLATIONS 8.68.010. Purpose. The purpose ohhis chapter is to: A-. enhance the public welfare and ~sure that further housing development contributes to the. attainment of the City's housing goals by increasing the production of residential units affordable by households ofvery-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 shaH be defined as follows; A. .'Affordable Unif'means an ownership or rental-housing unit, including senior housing} affordable to h01.lseholds 'With very-low-, low-, or :moderate incomes as defined in tbis chapter. 1. Rental units ate deemed affordable unit.. if the anouall'ent does not exceed 30% of maximum income level forvery-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 maximum income level for very~low~, lciw-, and moderate.-income households; .adjusted for household size and as dermed below. .'- ., 8. "Applicant" means any person, fum, partnership, association, joint venture, corporation; or any entity or combination of entities that seeks city real property development ~rmits or apprDva1s. C. "Dwelling unit" means a dweIling designed and intended for occupanc~ by one household. D. "Very-low-) low-, and moderate-income leyels" means those income and eligibility l.evels detennin.ed 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 dependen.ts, income of all wage earners, elderly or disabled family members, and all other SOUIces of household income and will be recertified as set forth by local standards,' and state and federal housing law. 1. "V ery~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. 3. "Moderate income" means more than &0% to 120% of the median inoome, adjusted for actual household size. City of Du~lIn Zoning OrciinaTlce 68-1 September, 1957 Revised~January 2003 I EXHIBIT C it. ,.' . 31rI{)cfG' INCLUSIONARY ZONING REGULA. TIONS Chapter 8.S8 - . nouseholds, as applicable, for a period'of Dot less than 55 years. With respect to rental units,such rent restrictions shall be in the form of a regulatorY agIeement recorded aga.inst the a.pplicable 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 propert)'. F, "Residential develcrpment" includes, without limitation, detached sh,1g1e.familY dwellings, multiple- d.welling structures, groups of dwellings, condon.nmum or townhouse developments, condominium conversions, coopemtive developments, mixed use developments that include housing units, and residential land subdivisions intended to be sold to the general public. . . . ,....... ':......, - S..68.030. General Requirements 12.5% AffordabUity 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 lJDits within the development as affordable units, except as otherwise provided by this chapter. The foregoing requirement shall be applied no more than once to a3:'l, appro-ved development (and generally at the tentative map stage), regardless of :the changes in the character or o~ership of the development, provided th.e total number of units does not change. In applying an~ calculating the affordability requirement. any decimal fraction less than or equal to O.50.may be disregarded, and any decimal fraction greater than 0.50 shall be constrUed as one unit. . Allocation of Units to IncODle Levels. Affordable units provided pursuant to this section shan be allocated to households with very-low, low-, and moderate..income levels as folloyvs: " ,A. ~ B. V e::ry~low-income households Low-income households . 30% 20% Moderate-income households 50% 'Wbere the calculation of the allocation results ill fewer u:nitS that would otherwise be required . pW'Suant to subdivision A above, one additional unit should be allocated to the income level with a decimal fra.ctiQo closest to 0.50. C. Conditions of Approval: An.y tentative map, conditional use permit, or site development review approving residential development projects subject to this chapter shall contain conditions sufficient to ensure cOI:o:pliance 'With the provisions oftbis chapter. Such conditions shall detail the number of afforda.ble units required. specify the schedule of construction of affordable units, set forth the applicant's manner of compliance with this cha.pter, and require 'the execution of-an agreement imposing appropriate resale controls and/or rental restrictions on the affordable units. . . D. Concurrent Construction. All affordable unitsm a project or phase of a project sh.all be construct::d 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 shan 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 may be of smaller size than the unitS in the project City of JJublln Zoning OrdInance 68-2 , SE.lptember, 1997" . Rev;sed;;January ZOOS ..si~ 'V' . . ?/6V(; ~ INCLUSIONARY ZONING REGULATIONS .. Chapter 8,&8 and may have fewer amenities than. the market ra.te units in the project. All affordable units shall be reasonably dispersed throughout the project. 8.68.040. E~c:eptions to 12.5% Affordability Requirement. Developers of projects subject to 8.68.030.A shall construct 12.5% of the total number of dwelling units within the development as affordable rmits, unless subject to an eJCception set forth in this section. J>Jl exceptions require City Council approval, which shall be obtained at or prior to the liSt discretionary a.pproval for the proJect.. A. Payment of Fees In-Lieu (}r Creation of Affordable Units. Upon request of the applicant, the City Council shall pennit the applicant to pay a fee in lieu of constrUcting up to 40 percent of the affordable units that the developer wou1d otherwise be required to constnlct purSUaJlt to section 8.68.030.A. The amount of the fee shall be as set forth in a resolution of the City Council, wbich may be amended from time to time to reflect in:flation and changed conditions in the City and the region. In-1ieuiees shall be paid a.t and the time and in the aroount set forth in the i1~.-lieu fee resolution in effect at the tim.e of issuance of the building permit B. Off-Site Projects. AJ1 applicant may construct the affordable units not physically within the development in lieu of constructing some or all of the affordable units within the developm.ent, with the approval of the City Council, if the City Council finds: 1. . that cop.strUction 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 fol" very low., low. and moderate-income households. " 2.. that the units to be co'OS'l::r1lcted off site are consistent 'With section 8.68.030.E aboye . . 3. that it would be infeasible or imp'~ctical to constnlct affordable units on-site. ~. . 4. that conditions of approval for the project require that the off~site affordable units would be gOVePled by the terms of a deed restriction and, if applicable, rental reStrictions similar to that used for the on-site affordable units. . . s. that the conditions of approval for the project, .or other security S'llch as a cash deposit~ bond, or letter of credit, are adequate to requrre the constrUction of the off-site affordable units concurrently with the completion oftbe constrUction of the residential deve1opm~ or withill a reasonable period (notto exceed 5 years). . C. Land Dedication. An applicant may dedica.te 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 c01IOciI fmds tha.t: 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 large enough and appropriately zoned to accommodate the number of units tb.at the applicant would oihe1Wise be required to construct by section 8.68.030.A, is useable for its intended purpose, is free 'of toxic substances and contaminated soils, and is City of Dublin ZonIng Orc:lJnan~e . 68-3 p-,"; . September, 1997 Revlsed:Januaty 2.003 - " . . 3cto/)~ INCL.USIONARY ZONING ReGULATION S Chap~~r 8.68 fully improved., with infrastructure, adjacent utilities.) grading, and all development-im.pact fees paid excluding any inclusionary zoning ordinance fees. t;i' 3, that the proposed land dedication is of sufficient size to meet the following requirements: a. the dedication includes land sufficient to con~truct the number of mnts that the applicant would otherwise be required to constrUct by Seotion B.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 'bei:Yleen the value of a market-rate 1200-square foot unit and the price a.t which such a unit could be sold as an Affordable UnitC$72, 176) times the nu.mbe:r of units required. D. Credit transfers. .An appliC8.Ilt may fully or partially satisfy the requirementS of section 8.68.030.A 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 approval1he credit certificate by number. Credit oertificates may only be used to satisfy the requirements for lIlciusionary Units for the income category (Le., very low, low, or moderate) md number of bedrooms for which they are issued. Waiver of Requirements. The City Council, at its discretion, 'may waive, wholly ot' partially, the requirements of this ol:dinance and approve alternate methods of compliance with this chapte4 if the applicant demonstrates, and the City Council finas. that such alterna.te methods meet the purposes of fuis~~~r- ' E. ' " 8.68.Q50. General,Proce.dures for Implementing Inclusionary Zoning Req~irements A. Agreements. Prior to the i~suance of a building permit for. an affordable uni~ resale restrictions or rental controls, or both, as the case may be, shall be set forth. in an agreement between the City and the d.ev:eloper, in' a form consistent with the City Council-adopted form agreement, Which agreement shall be recorded. against the prope:rty containing the affordable units. The agreement shall be executed by the City Manager, and its requirements shall run with the land and bind the a.pplicant's . successors. B. Rental Units; Occupancy; Annual Report. Agreements involying rental. units shall require the owner of 'the affordable' units to ensure that the units are occupied by t~nantS whose monthly income 1 e-vels do not exceed moderate income levels and shall preclude tenants from subletting or subleasing the unit The agreement'shall also require the owner of tb.e 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 infonnation for ,the prior year; and the monthly income for tenants of each affordable unit tbroughout 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 - CIty of Dublin Zoning Ordinance 68-4 - Sep'tembt;lf, 1997 Revised.Jarruary 2003 ... - D. LIDo/) ~ INCLUSrONARY ZONING ReG ULA TIONS Chapter B.aS the event of the sale of an affordable unit, the City shall ha.ve the right to purchase any affOTdable. I owner-occupant unit a.t the maximurn..price that could be charged to an eligible household. Selection Criteria. No household shall be permitted to occupy a unit that is req,uired under this chapter to be affordable unless the City or its designee has approved the household's eligibility. Eligible potential occupants of affordable units wi~ be qualified on .the basis of~usehold income, the median combined household income statimcs for Alameda County published periodically by th~ Califomia pepartment of Housing and Community Development, all SO'Ul'Ce$ 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 d.istinguish between adults and children. Selection of qualified person should be based on priorities established in the City's Affordable Housing Program. as noted below: . Employed within the boundaries of the City of Dublin (3 points. one per household) . Public Service employee working in the CiW of Dublio. (1 additional point) I: Dublin resident (3 points, one per household) Seniors (1 point, one per household) · Permanently disables (1 point, one per household) . . To qualify as "~ployed within the boundaries of the City of Dublin," the petSon shall have been employed with. the' City of Dublin for at least six months. To qualify as a "Dublin residen'4" the person shall have been a resident of the City of Dublin for at least a one-year period prior to the eligibility determmation; 8.68.060. Affordable Unit Credits. A. Creation. Affordable unit credits may be created by the City Council. One affordable unit credit certificate shall be issued for each affordable unit constructed in exc~sS oftbe number of afforda.ble units required to be constructed for the project by Section 8.68.030.A. Tbe certificate shall designate a specific income category (i.e., very-low-, low-, or moderate income) and number of bedrooms for which they axe issued. B. Ownership and use of credits. Affordable unit credit certificates are issued to and become the poss.ession 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 sen credit certifica.tes, the parties sb.a.ll first obtain the. consent of the C01:nmumty Development Director, who will do~ent the transfer by certificate. number. . 8.68.070. Incentives to Encourage On-Site Coi1Strnction of Affcrrdable Units. The City may, but shall not be required to, offer incentives or tinancial.assistance to encourage the on-site construction or affordable units in excess of 12.5% of the total number of units in the project to tbeextent resources for this purpose are av?til1ible and approved for such use by the City Council or City . Managa. Such incentives may include, but shill not. be limited to, the following: City of Dublin Zoning Ordinance 68.5. - September, 1997 Revised.January 2003 .", . . l/-I~ tf~" INCLUSIONARY ZONING REGULATrONS _" ". Chapter B.aS L ". ""1 Fee Deferral. 1. Development Pro.cessing Fees. The City Manager' may approve deferred payment of City processing fees applicable to the review, and processing of the project. The terms and . payment scbedule 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 ~e project's feasibility. The applicant must provide appropria.te security to ensure future pa.yment of s'\lch. fees. B. Design Modifi'cations. The City Council may a.pprove design modificationS to affordable units that increase the feasibility oftbe c.onstruction of affordable units, including but not limited.to, the fono~ng:. . 1. Reduced lot size. 2. Reduced setback requirements. 3. ~educed open space requirements. 4. Reduced land.s~aping requirements. . 5. Reduced interior or exterior amenities. 6. Reduction in parking requirements. 7~ Height restriction waivers. 8.68.080. Inclusionary Zoning In-Lieu Fee Fund. tn-Heu Fees shell be deposited into a fund known as the "lnclusionary Zotling h"'l.-Lieu Fees 'Fund'" ("~und"). A. Use. All monies in the Fund, together Vlith any interest earnings on such monies less reasonable administrative charges, shall be used or 'cotnmittecl to use by the City for the purpose of providing very-low-. low-, and moderate-income ownership or ren,tal housing in..the City of Dublin. . B. Annual report. The City Mana.ger shall prepare an annual report to the City Council identifying the balance of monies in the Fund end the: affordable units provided and any monies committed to providing very.low-~ low-. and moderate-income housing. The annual report sha.n also include a review of administrative charges. 8_68.090. Violations. It shall be unla;wful for any person, firm, corporation) partnership or other entity that is s'!1bject to tl?is ordinance pursuant to section 8.68.030.A to violate any provision cirto fail to . comply wi~ 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 Chap~er shall constitute a misdemeanor; except that notwithstanding any other p1'ovisions of this Code, my 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 i: . . September, 1957 RevJsed"January 2003 I. 4P. . \f20f; ~ INCL.USJONARY ZONING REGULATIONS Chlilpter 8.SB - 8.68.100. Enforcement. A.. General. The OityManager shall eclorcetlUs chllpter, and its provisionsshCill be bin4i~ on all agents~ successorsjand assigns of an applicEIIlt.The Ci'tY Manager may s~pend or revoke an,:y' building petlllit or approvaiupon flllding a violation of any provisiol1 of'tbj,s clJ.lapter.. No l~ci-l.'lse approval, building permit, or certificate of occupancy shall be issued for an)' residemial developmeat UDless exempt from orin cornpliancewithtWs chapter;. TJ:te, CltyIIlliY institute anyaPPX'opnate legal aotions orproceeQings nepessary to ensurecompJianceherewith,,'ip.cludin,g. but not limited to, actions to revoke, deny, or suspend any pemnt or developmentapproval. . B. Excessive rentsll~gal action. If the City Manager determines that rents in excess of those allowed by opera.tiol'l of tillS chapterhavebeenoharged to a tenant:residi:pg inaI:l. affordable unit the City ma.y take appropriate legal action to recover, and the projectownetsl1all bepbligatedto pay to the tenant, or to the City in the event the tenant cannot be located, any excesS rents char~ed. 8.68..110. Appeals. Decisions of the City Manager under this Chapter may be appe.llled as provided in. Chapter 8.136. .. C~ty of Dublin Zoning Ordinance 68.1 "'..... September, 1997 . RsVlsriid..January 2003 I ..... ~ Lf3lQ c6 Exhibit 0 INSURANCE REQUIREMENTS REQUIRED COVERAGE. Upon completion of Project construction, Project OWner shall obtain the following insurance coverage, and shall maintain such coverage in full force and effect during the term of this Agreement. Before completion of construction, Project Owner shall deliver to City certificate(s) of insurance, or a binder followed within 30 days by a certificate of insurance, evidencing the required coverage. (1) COMPREHENSIVE GENERAL LIABILITY. Minimum coverage: Bodily injury limits of $5,000,000 for each occurrence; property damage' limits of $5,000,000 for each occurrenoe. Adjustments: Limits to be adjusted every five years, as reasonably required by City. (2) PROPERTY (HAZARD) INSURANCE. Minimum coverage: 100% of replacement cost, adjusted on a regular basis for inflation. Deductible: $2,500 maximum per occurrence. Property covered: Structure and all insurable items within .the Property (including landscaping and common areas).. Perils covered: All risk, or fire and hazardous installation, vandalism and malicious mischief. ADDITIONAL INSUREDS. All liability, property damage, and automobile insurance policies required by this Agreement must name City of Dublin and its officers, agents and employees" as additional insureds or as additional loss payees. CANCELLATION CLAUSE. Each insurance policy shall contain a clause substantially in the following words: "It is agreed that this policy may not be canceled nor the coverage reduced until 30 days after receipt by the Community Development Director of the City of Dublin of written notice of such cancellation or reduction of coverage, as evidenced by receipt of a registered letter." QUALIFICATIONS OF INSURER. All insurance pOlicies shall be issued by an insurance company acceptable to City and authorized to issue such policy in the State of California. 4'4-UZJ .~ l.fS1:>~ April 23, 2007 CHARTER properties Ms. Jeri Ram Community Development Director City of Dublin 100 Civic Plaza Dublin, CA 94568 Re: Dublin Ranch Senior Apartments Request for Temporary relief of Affordability requirements Dear Jeri: With regard to the above referenced project, we would like to request a temporary relief and amendment to the Affordable Housing Regulatory Agreement; changing 65 housing units currently identified as "Moderate" units to "Market" rate units for a period of five years, effective immediately. After 5 years, any vacancy of a Market unit will be returned to a Moderate unit until all 65 units are returned to a Moderate rate. These 65 units will then remain affordable at the Moderate rate for a period of 55 years from the date returned to a Moderate rate. It is our hope that this request can be accomplished by an amendment to the existing Regulatory Agreement, and we are requesting that the City Attorney's office prepare the draft amendment at its earliest convenience. As mentioned in our meetings, time is of the essence if this temporary modification is to be of any help to the proj ect during this lease up period. Further, we would like to propose that the matter be put on the City Council agenda in May, 2007. Since this is not a planning issue, we request that a Planning Commission meeting be waived. Thank you for your assistance in this matter. Very truly yours, ~. Debby Milichichi Operations & Asset Manager :dlm cc: Rich Ambrose 4690 Chabot Drive, Ste 100 Tel: (925)463-1666 Pleasanton, CA 94588 Fax: (925)463-1861 ATTACHMENT 3