HomeMy WebLinkAboutItem 7.1 Positano Dev First Phase
CITY CLERK
File # D~[3]~-[i]~
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'-150- 30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 5, 2007
SUBJECT:
ATTACHMENTS:
RECOMMENDATION: /J..tV 1)
(\UV'"' 2)
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FINANCIAL STATEMENT:
Affordable Housing Agreement for the First Phase of the
Positano development (247 Residential Lots) located in Fallon
Village
Report prepared by Jeff Baker, Senior Planner
1)
Resolution approving the Affordable Housing Agreement
between the City of Dublin and Dublin RE Investors, LLC
for the First Phase of the Positano development and
authorizing the City Manager to execute the Agreement, with
the Affordable Housing Agreement attached as Exhibit A.
Vicinity Map.
City Council Staff Report dated October 18,2005, with
attachments.
City Council Meeting Minutes dated October 18,2005.
Applicant's Refined Affordable Housing Proposal.
Parking Exhibit.
2)
3)
4)
5)
6)
Receive Staff presentation;
Receive testimony from the Applicant and the public;
Deliberate; and
Adopt Resolution Approving Affordable Housing Agreement
between the City of Dublin and Dublin RE Investors, LLC
for the First Phase of the Positano development and
authorizing the City Manager to execute the Agreement
(Attachment 1), with the Affordable Housing Agreement
attached as Exhibit A); and
Direct Staff to prepare a minor administrative amendment to
the Fallon Village Stage 1 and Stage 2 PD to allow secondary
units on the 3,200 lots within the Positano development.
The costs of administering the Affordable Housing Agreement are
included in the administration fees that are charged with the sale of
each affordable unit.
COpy TO: Applicant
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Page 1 of6
ITEM NO. 7.1
G:\PA#\2005\05-038 B&L Stage 2 Fallon Village\Affordable Housing Agreement\ccsr 6.5.07 AHA. DOC
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PROJECT DESCRIPTION:
Background
Positano (aka Braddock & Logan Fallon Village) is a residential development consisting of 1,043 single-
family homes on a 488-acre project site. The project site is located within the northern portion of the
larger Fallon Village project area (formerly Eastern Dublin Property Owner's Annexation Area or EDPO),
east of Fallon Road and the Dublin Ranch project, west and southwest of the City Limits boundary with
Alameda County and Doolan Canyon (Attachment 2).
Existing Approvals
The Planning Commission approved Vesting Tentative Map 7586 (VTM) to create 1,043 residential lots
for the Positano development on November 8, 2005 (Resolution No. 05-61). On December 6,2005, the
City Council approved General Plan and Specific Plan Amendments (Resolution No. 223-05), and a Stage
1 Development Plan (Ordinance No. 32-05) for Fallon Village including the Positano development. The
City Council also approved a Stage 2 Development Plan (Ordinance No. 33-05), and a Development
Agreement (Ordinance No. 34-05) for the Positano project area. Condition No. 2 of the VTM for
Positano requires the project proponent to enter into an Affordable Housing Agreement (AHA) prior to
approval of a Site Development Review Permit (SDR) or recordation of the first phased Final Map.
Inclusionary Zoning Regulations
The Inclusionary Zoning Regulations of the City of Dublin Zoning Ordinance (Chapter 8.68) contains
affordable housing requirements for all new developments of 20 or more units. Residential developments
consisting of20 or more units are required to provide 12.5% of the units as affordable to households with
very-low, low, and moderate income levels as determined by the California Department of Housing and
Community Development for Alameda County. These affordable units are required to be constructed on-
site and integrated with the market rate units. The affordable units are required to be evenly distributed
throughout the project, include a range of bedrooms consistent with the overall project, and be
indistinguishable in exterior appearance from the market rate units. The Inclusionary Zoning Regulations
also provide the City Council with the ability to make exceptions to the regulations contained in the
Inclusionary Zoning Ordinance, including alternative methods of compliance with the Inclusionary Zoning
Regulations such as the development of off-site affordable units.
Braddock & Logan October 2005 Affordable Housing Proposal
In accordance with the Inclusionary Zoning Regulations, the Positano development has a requirement to
provide 130 affordable units.
Total
Units
1,043
Inclusionary
Requirement
12.5%
Inclusionary
Units
130
Braddock & Logan prepared an affordable housing proposal to address the affordable obligation for the
Positano development which was reviewed by the City Council on October 18, 2005. This affordable
housing proposal included a combination of on-site integrated units with a bedroom count that is
consistent with the overall project, secondary units, off-site apartments, and a $1,000,000 Community
Benefit Payment (Attachment 3). Please refer to Table 1 for a summary of the affordable units proposed
for construction as part of the affordable housing proposal.
Page 2 of6
J
a e . or a e OUSlD2 roposa coer
. ,
Unit Type Ownership Income Level Size of Units Affordability
/Rental Period
26 Single-family 50% moderate Same mix of
For sale 20% low bedroom size as In perpetuity
detached Units 30% very low market rate units
50% moderate All
26 Secondary Units Rental 20% low 1 bedrooin/ In perpetuity
30% very low 1 bath
78 Apartments* 50% moderate All
Rental 20% low 2 bedroom! In perpetuity
30% very low 2 bath
130 Total Units
T bl 1 An d bl H
P
lOt b 18 2005
* Plus 9 units to satisfy the Inclusionary Zoning requirements for the Anderson property & I manager's unit as defined in the Braddock
& Logan's affordable housing proposaL
Staff presented Braddock & Logan's affordable housing proposal to the City Council on October 18,
2005, and requested direction from the City Council on how to proceed with the proposal. The City
Council reviewed the proposal and directed Staff to work with ~raddock & Logan to refine the proposal
(Attachment 4) as follows:
1) Include landscaping for the rear yards of the affordable units and use energy-efficient measures in
the homes to reduce the cost of housing;
2) Work on timing issues and obtain the necessary security to ensure completion of the project on the
Anderson property;
3) Study the feasibility of integrating the 88 affordable apartment units into a larger project; and
4) Incorporate green building principles, as practical.
Since the October 18, 2005 City Council meeting, Staff and Braddock & Logan have been working to
prepare an Affordable Housing Agreement (AHA) for the entire 1,043 unit project. Due to uncertainties
about the off-site affordable units on the Anderson property, an AHA cannot be prepared for the entire
development at this time. Therefore, in order to allow the initial phases of the project to move forward,
the Applicant has proposed that the City initially enter into an AHA for the first phase ofthe project which
consists of 247 lots. As additional information becomes available, Staff will continue to work with the
Applicant to negotiate an AHA for the balance of the project. The additional AHA will be. reviewed by
the City Council at a future date.
ANALYSIS:
Refined Affordable Housing Proposal
Braddock & Logan has further refined the affordable housing proposal for Positano since it was presented
to the City Council in October 2005 (Attachment 5). In addition to the proposal to separate the affordable
housing agreement for the initial phase from the later phase (which would include the off-site project), the
refinements to the 2005 proposal include the following changes as further discussed below:
1) The bedroom count for the affordable single-family detached units;
2) The location ofthe affordable single-family detached units; and
3) The location of a portion ofthe proposed secondary units.
Page 3 of6
Design & Location of Single-family Detached Affordable Units
The Inclusionary Zoning Regulations (Section 8.68.030.E) require the design of the affordable units to
reflect the range of number of bedrooms as provided in the project. Braddock & Logan's original
affordable housing proposal was consistent with the Ordinance and included 26 single-family detached
homes with the same mix of bedrooms as the market rate units. The refined proposal states that all 26
single-family detached units will have 4 bedrooms. The proposed market rate homes within the first
phase of the project include a mix of 3 and 4 bedroom single-family detached homes. In addition, the
proposed affordable single-family detached units will be affordable in perpetuity rather than 55 years as
the Ordinance provides.
The 26 affordable single-family detached homes were originally proposed on 4,000 square foot lots.
Braddock & Logan's refined proposal designates 13 affordable single-family detached homes in the first
phase on 3,200 square foot lots. As discussed in the City Council Staff Report dated October 18, 2005
(Attachment 3), Staff is concerned with the size and the burden of upkeep associated with these detached
affordable units. Smaller homes on smaller lots will help to reduce the burden of ownership and
maintenance associated with these homes. The other 13 single-family detached homes will be a part of a
future phase.
Location of Secondary Units
Braddock & Logan further proposes to modify the location of the proposed secondary units. The original
affordable housing proposal that was presented to the City Council in 2005 included 26 secondary units
on 6,000 square foot lots in neighborhood C located in the northern portion of the overall project.
Braddock & Logan is currently proposing to construct 13 secondary units on 3,200 square foot lots within
the first phase ofthe project and 13 secondary units on 6,000 square foot lots in Neighborhood C. The 13
secondary units proposed as a part of neighborhood C would be part of a future phase.
The proposed secondary units would be located over the garage of the primary unit. Off-street parking for
the 13 secondary units in the first phase of the project will be provided in the driveway of the primary unit
as shown on the Parking Exhibit (Attachment 6).
The Positano development is subject to a Planned Development (PD) Zoning District. The proposal to
develop secondary units on 3,200 square foot lots instead of 6,000 square foot lots requires a minor
amendment to the Planned Development Zoning (PD). The PD amendment can be processed.
administratively, if so directed by the City Council.
Affordable Housing Agreement
The proposed draft AHA addresses the affordable housing obligation for the first 247 homes within the
Positano Development. A subsequent AHA would be required for the balance of the Positano
development and would address the remainder of the proposed on-site and off-site affordable housing to
satisfy. the Inclusionary Zoning Regulations. The subsequent AHA would be reviewed by the City
Council at a later date.
Braddock & Logan has a requirement to provide 31 affordable units in the first phase of construction.
Total
Units
247
Inclusionary
Requirement
12.5%
Inclusionary
Units
31
Page 4 of6
The Inclusionary Zoning Ordinance permits the developer to pay in-lieu fees for 40% of the affordable
requirement or 12 units. Braddock & Logan has a must build requirement of 19 units to satisfy the
requirement to provide 31 affordable units for the first 247 homes.
Braddock & Logan proposes to satisfy the obligation to provide 31 affordable units in the first phase of
construction by providing 13 single-family detached homes and 13 secondary units to be affordable in
perpetuity, payment of in-lieu fees for the remaining 5 units, and payment of a prorated share of the
$1,000,000 Community Benefit Payment on a per unit basis (i.e. $958.77 per unit) prior to issuance of
each building permit (for a total of $236,816 for 247 units). Details regarding the proposed affordable
units can be found in Table 2 below.
Table 2: Affordable Housin2 for Phase 1
Unit Type Ownership Income Level Size of Units Affordability
/Rental Period
13 Single-family 50% moderate
For sale 20% low All 4 bedroom In perpetuity
Detached Units 30% very low
50% moderate All
13 Secondary Units Rental 20% low 1 bedroom! In perpetuity
30% very low 1 bath
26 Total Affordable
Units
Rear Yard Landscaping
The City Council directed Staff to work with Braddock & Logan to provide rear yard landscaping for the
affordable single-family detached units. The AHA for the first phase ofthe project requires the Developer
to provide rear yard landscaping for the detached affordable units as directed by the City Council (AHA
Section 6.C) (including turf, shrubs, trees, irrigation, and a usable rear yard area). The Developer is
required to submit conceptual rear yard Landscape Plans for review as part of the SDR application for the
design ofthe homes.
Energy Efficiency and Green Building Principles
The AHA (Section 6.D) also obligates the developer to incorporate energy efficient measures and green
building practices for the detached affordable units. Braddock & Logan has submitted a checklist
outlining the measures that are proposed to address the City Council's direction. This checklist is
included as Exhibit 5 of Attachment 1 to the Staff Report.
Braddock & Logan has also submitted a "Single-Family GreenPoint Checklist" that identifies the energy
efficiency and green building measures that will be incorporated into the affordable units. This checklist
has been incorporated into the AHA (Section 6.D) and the agreement requires Braddock & Logan to meet
the minimum standards established by the checklist.
Anderson Property - 88 Off-site Affordable Units
The 88 off-site affordable units to be constructed on the Anderson property is not part of the current AHA.
Staff will continue to work with the Applicant to study the feasibility of incorporating market rate units
into the project on the Anderson property and address construction timing and obtain the necessary
security as we negotiate an AHA for the balance of the project. The additional AHA will be reviewed by
the City Council at a future date.
Page 5 of6
CONCLUSION:
Because the secondary units and the affordable single-family detached units are not strictly consistent with
the requirements in the Inclusionary Zoning Ordinance that states the affordable units should "reflect the
range of numbers of bedrooms provided in the project as a whole" and because the secondary units do not
satisfy the requirement that the units "not be distinguished by exterior design, construction, or materials,"
the City Council must find that Braddock & Logan's alternate proposal meets the purposes of the
Inclusionary Zoning Ordinance. Staff believes this finding can be made based on the affordability
characteristics of 4 bedroom homes (as opposed to 3 or 4-bedroom homes), the fact that the units will be
affordable in perpetuity rather than for 55 years, the addition of the Community Benefit Payment, and the
Developer's commitment to provide fully landscaped rear yards and energy efficiency measures which
reduce housing costs.
RECOMMENDATION:
Staff recommends that the City Council: 1) Receive Staff presentation; 2) Receive testimony from the
Applicant and the public; 3) Deliberate; and 4) Adopt Resolution Approving Affordable Housing
Agreement between the City of Dublin and Dublin RE Investors, LLC for the First Phase of the Positano
development and authorizing the City Manager to execute the Agreement (Attachment 1), with the
Affordable Housing Agreement attached as Exhibit A); and Direct Staff to prepare a minor administrative
amendment to the Fallon Village Stage 1 and Stage 2 PD to allow secondary units on the 3,200 lots within
the Positano development.
Page 6 of 6
I ~ J2:(;
RESOLUTION NO. XX - 07
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********************
APPROVING AN AFFORDABLE HOUSING AGREEMENT FOR THE FIRST PHASE OF THE
POSITANO PROJECT BETWEEN THE CITY OF DUBLIN AND DUBLIN RE INVESTORS,
LLC, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT
WHEREAS, Dublin RE Investors, LLC (the Developer) is the owner of two parcels of land
. within Fallon Village which together are known as Positano and consists of 1,043 residential units; and
WHEREAS, an Affordable Housing Agreement is required by the Inclusionary Zoning
Regulations of City of Dublin Zoning Ordinance (Chapter 8.68); and
WHEREAS, the Developer has proposed a comprehensive affordable housing proposal to address
the requirements of the Inclusionary Zoning Ordinance for the entire Positano development and said
proposal includes alternative methods of compliance with the Inclusionary Zoning Regulations; and
WHEREAS, the Developer's affordable housing proposal for the overall 1,043 unit Positano
development includes a combination of 26 on-site detached units and 26 on-site secondary units to remain
affordable in perpetuity, 78 off-site apartments to be affordable in perpetuity, and a $1,000,000
Community Benefit Payment; and
WHEREAS, the City Council held a public meeting on October 18, 2005, to review the
affordable housing proposal, and the City Council directed Staff to work with the Developer to refine the
affordable housing proposal; and
WHEREAS, Staff and Developer have been working to refine the proposal in accordance with the
direction from the City Council, but an agreement has not yet been reached due primarily to uncertainties
about the off-site apartment project; and
WHEREAS, to allow it to proceed with the initial phase ofthe project, the Developer proposes to
enter into an Affordable Housing Agreement to allow construction of 247 residential units in the first
phase of the project with an obligation to provide 31 affordable units; and
WHEREAS, the Developer proposes an alternate method of complying with the Inclusionary
Zoning Regulations and the obligation to provide 31 affordable units through a combination of
constructing 13 detached four bedroom homes including 4 very low income units, 3 low income units,
and 6 moderate income units to remain affordable in perpetuity; 13 secondary units including 4 very low
income units, 3 low income units, and 6 moderate income units to remain affordable in perpetuity;
payment of in-lieu fees for 5 units; and payment ofa prorated share of the $1,000,000 Community Benefit
Payment on a per unit basis ($958.77 per unit); and
WHEREAS, the First Phase Affordable Housing Agreement would require the Developer to enter
into a subsequent affordable housing agreement prior to any additional development beyond the initial
247 residential lots to address the Inclusionary Zoning Obligation for the remainder of the Positano
development; and
~=tt7'1 bl5107Mlff
Attachment 1
e>2 ~J J 2-C
WHEREAS, the project has been found to be Categorically Exempt from the California
Environmental Quality Act (CEQA); and
WHEREAS, a Staff Report was submitted to the City Council for consideration of this request;
and
WHEREAS, the City Council did hold a public hearing on said agreement on May 15, 2007; and
WHEREAS, the City Council did use its independent judgment and considered all said reports,
recommendations, and testimony.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby find that the alternate methods of compliance with the Inc1usionary Zoning Regulations contained
in the proposed Affordable Housing Agreement (which is included as Exhibit A), including the
combination of constructing 13 detached four-bedroom homes that will remain affordable in perpetuity,
and 13 secondary units that will remain affordable in perpetuity within Neighborhood A of the First Phase
of the project, payment of in-lieu fees for the equivalent of 5 units, and the payment of a prorated share of
the $1,000,000 Community Benefit Payment, meet the purposes of Inc1usionary Zoning Regulations.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council ofthe City of
Dublin does hereby approve the Affordable Housing Agreement between Dublin RE Investors, LLC, and
the City of Dublin for the first 247 units ofthe Positano development as described in Exhibit A.
BE IT FURTHER RESOLVED that the City Manager is authorized and directed to execute the
Affordable Housing Agreement.
PASSED, APPROVED AND ADOPTED this 5th day of June 2007 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
G:\PA#\2005\05-038 B&L Stage 2 Fallon Village\Affordable Housing Agreement\CC Reso AHA 5.15.07.DOC
2>~' 1~0.
AFFORDABLE HOUSING AGREEMENT
FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES
IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS
Dublin RE Investors, a California limited liability company.
First Phase (247 Residential Lots) of the Fallon Village Project
TillS AGREEMENT is hereby entered into this _ day of _, 2007 by and between
the City of Dublin ("the City") and Dublin RE Investors, L.L.C., a California limited liability
company ("the Developer").
Recitals
1. Chapter 8.68 ofthe Dublin Municipal Code contains Inclusionary Zoning Regulations
("the Regulations"). The Regulations were adopted pursuant to Strategy LB. of the City's
General Plan Housing Element, the purpose of which is to create affordable housing
opportunities in the City of Dublin for very low-, low- and moderate-income households.
2. The City of Dublin adopted the Regulations recognizing that the cost of new housing
is so high that persons with very low-, low- and moderate-incomes are increasingly unable to
locate affordable housing in the City. The purpose of the Regulations is to achieve a balanced
community with housing available at all income levels.
3. Accordingly, the Regulations require that residential projects with 20 or more
units/lots contain at least 12.5% very low-, low- and moderate-income units/lots. The
Regulations require that the units be constructed in the following proportions: 30% very low-
income, 20% low-income, and 50% moderate income. In lieu of constructing 40% of the
Inclusionary Units that the Regulations would otherwise require, the Regulations authorize
developers to pay a fee, currently set by the City through June 30, 2007 at $86,640 per unit
required but not built. If fees are paid in lieu of construction, developers are still required to
construct 60% of the obligation.
4. Developer is the owner of 488.2 acres of real property in the City of Dublin generally
located east of Fallon Road and more specifically described in Exhibit 1 (the "Property").
5. Developer desires to construct a residential project on the parcel that consists of 1,043
for-sale units (collectively "the Project"), and the Project is subject to the Regulations.
6. On November 8, 2005, the Planning Commission ("PC") approved a vesting tentative
subdivision map (P.C Reso. No. 05-61) ("the VTM Resolution") to create 1,043 residential lots,
and Developer has submitted an application for Site Development Review ("SDR") approval for
an initial phase, which includes 247 lots, and the City is processing the SDR ("the Approvals").
Developer also intends to shortly file the first of "multiple final maps" based on the tentative
subdivision map, which would create 247 residential lots.
Fallon Village (Initial Phase) Affordable Housing Agreernent_052 1 07 (2)
AffOJ
First Phase ofPositano Project
May 24, 2007
Exhibit A
4- ~ 12(,
7. Condition No.2 of the VTM Resolution provides as follows:
Inclusionary Zoning: Prior to approval of Site Development Review or
recordation of the first phased Final Map, whichever occurs first, the owner or
owners of all the property subject to this vesting tentative map shall enter into an
Affordable Housing Agreement with the City for the entire Vesting Tentative
Map area, which agreement shall be recorded against such area and against any
other property where Developer proposes to construct off-site affordable units if
approved by the City Council pursuant to Dublin Municipal Code section
8.68.040.B. Such agreement shall include but is not limited to providing detail
regarding the number of affordable units required, specify the schedule of
construction of affordable units, set forth the developer's manner of compliance
with City of Dublin Inclusionary Zoning Regulations and impose appropriate
resale controls and/or rental restrictions on the affordable units. Ifthe agreement
provides for construction of the units off-site, as provided in DMC section
8.68.040.B, it shall require City Council approval and Council findings as
required by said section and shall include provision for security adequate to assure
completion of the off-site affordable units concurrently with the completion of the
construction of the market rate units to be constructed on the lots created by the
vesting tentative map.
8. Under the Regulations, the City Council may wholly or partially waive the
requirements of the Regulations 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 the Regulations.
9. Based on 1,043 units, the Developer's inc1usionary zoning obligation under the
Regulations would be 130 units (1,043 times 0.125 equals 130.375), and it would be permitted to
pay fees in lieu of construction to satisfy the obligation as to 52 units (130 times 0.4 equals 52),
leaving a must-build obligation of 78 units.
10. In the fall of 2005, as means of satisfying its inclusionary housing obligations for the
entire 1,043 unit project, Developer proposed an alternative method of compliance that would
result in the construction of a total of 130 inc1usionary units.
11. Specifically, under its initial proposal, Developer would: (a) build 26 integrated units
on 4,000 square foot lots, which would be fully compliant with the Regulations, and would in
addition be affordable in perpetuity; (b) build 26 1 bedroom, secondary dwelling units on 6,000
square foot lots, which would be rental units and affordable in perpetuity; ( c) build an 88-unit
off-site affordable project, which would include 78 inclusionary units to satisfy the obligations of
the Project; and (d) contribute a $1,000,000 community benefit payment to the City.
12. On October 18,2005, the City Council conceptually approved the Developer's initial
proposal and directed City staff to work with the Developer to (a) refine the proposal to include
landscaping in the rear yards and using energy efficient measures for the integrated affordable
homes to bring down the cdst of ownership; (b) work on timing issues and obtain necessary
FaIlon ViIlage (Initial Phase) Affordable Housing Agreement_052 107 (2)
AffOJ
2
First Phase ofPositano Project
May 24, 2007
6~r~"
security for the completion of the off-site project; (c) study the feasibility of the integrating the
88 unit off-site project into a larger mixed income project; and (d) incorporate green building
principles in the project as practical.
13. In response to the direction from the City Council, Staff and the Developer have been
working diligently to prepare an affordable housing agreement that would set forth the
Developer's obligations as to the entire Project, but an agreement has not yet been reached due
primarily to uncertainties about the off-site affordable project.
14. The Developer has therefore proposed that the City initially enter into an affordable.
housing agreement for the first phase of the Project, which consists of 247 residential lots and the
location of which is shown on Exhibit 2 ("the First PhaSe"), and the parties would continue
negotiating the definitive affordable housing agreement for the Project.
15. The City is agreeable to such a phased approach, provided that the First Phase
agreement satisfies the entirety of the First Phase's obligations under the Regulations and
provided that Developer specifically agrees that the City may refuse to record additional final
maps for the Project that would create residential parcels in excess of the 247 residential parcels
in First Phase and that it will enter into an affordable housing agreement for the remainder of the
Project prior to any further development outside of the First Phase.
16. For the 247 units in the First Phase, the Developer's inclusionary zoning obligation
under the Regulations.would be 31 units (247 times 0.125 equals 30.875), and it would be
permitted to pay fees in lieu of construction to satisfy the obligation as to 12 units (31 times 0.4
equals 12), leaving a must-build obligation of 19 units.
17. Developer has proposed an alternate method to satisfy its 31 inc1usionary unit
obligation (a) by constructing in the First Phase (i) 13 integrated inclusionary units on 3,200
square foot lots, which would be affordable in perpetuity, rather than for 55 years as the
Regulations require ("the Integrated Units"), and (ii) 13 I-bedroom, secondary dwelling units,
which would be rental units and affordable in perpetuity, rather than for 55 years as the
Regulations require ("the Second Units"); (b) paying fees in lieu of construction for the
remaining 5 unit obligation; (c) making a community benefit payment prior to issuance of each
building permit equal to $958.77 (which amount is calculated based on the proposed $1,000,000
contribution divided by the 1,043 units proposed in the Project); Cd) including rear yard
landscaping and energy efficiency measures to reduce the homeowners' cost ofliving in the 13
integrated inclusionary units; and (e) incorporating green building principles into the 26
inclusionary units.
18. The City Council hereby finds that the alternate method of complying with the
Regulations for the 247-unit First Phase of the Project meets the purposes of the Regulations.
NOW, THEREFORE, in satisfaction of the requirements of Chapter 8.68 of the Dublin
Municipal Code, in partial satisfaction of condition 2 of the VTM Resolution ~d in
consideration of the City's approval of the Project, Developer and City for themselves and their
respective successors and assigns hereby agree as follows:
Fallon Village (Initial Phase) Affordable Housing Agreement_ 052107 (2)
AffoJ
3
First Phase ofPositano Project
May 24, 2007
6 e::f /26
1. Definitions and Interpretations. Terms used in this Agreement shall be defined
as set forth in Chapter 8.68 ofthe Dublin Municipal Code.
2. Limited Applicability of Affordable Housin2 Aueement. This Agreement
shall be deemed to satisfy the requirement under the Regulations and Condition 2 of the VTM
Resolution for the Developer to enter into an affordable housing agreement for the Project prior
to approval of Site Development Review and the recordation of the first phased final map,
provided, however, that in accordance with the Regulations and Condition 2 of the VTM
Resolution, development on, and approval of subsequent fmal maps that include, any portion of
the Property beyond the First Phase shall require either an amendment to this Agreement or a
subsequent affordable housing agreement ("the Subsequent Agreement") setting forth the
manner in which the Regulations will be complied with for the remainder of the Project.
Developer hereby agrees that it will not assert the provisions of Government Code section 66458
to require the City to approve additional phased final maps (beyond those for the creation of the
247 residential parcels in the First Phase) pursuant to the tentative map approved by the VTM
Resolution until such time as it has entered into the Subsequent Agreement.
3. Developer's Compliance with Affordable Housin2 Obli2ation. Developer
intends to complete the First Phase in fourteen sub phases plus a phase that includes 8 model
. homes. Section 8.68.030 of the Regulations requires that all affordable units in a project be
constructed concurrently with a project or phase of a project. Exhibit 3 shows the location, and
type, of the Inc1usionary Units to be constructed within the First Phase. All Inc1usionary Units
identified on Exhibit 3 shall be constructed concurrently with the market-rate units surrounding
the Inclusionary Units. The City finds that the preliminary construction schedule attached hereto
as Exhibit 4, which shows the completion ofthe 26 Inclusionary Units in the initial three phases
along with 78 market rate units, constitutes construction of the Inclusionary Units concurrently
with the market rate units as required by Section 8.68.030 of the Regulations. Notwithstanding
the foregoing, Developer shall be permitted to deviate from the attached preliminary construction
schedule, provided that the Inclusionary Units still are constructed concurrently with the market
rate units as required by Section 8.68.030 of the Regulations. If the Building Official or.
Community Development Director determines that the Inclusionary Units have not been or are
not being constructed concurrently with the market-rate units as required by this Section 2, the
Building Official shall withhold further issuance of building permits in the Project until
construction ofthe Inclusionary Units in the phase has been completed to the satisfaction of the
Community Development Director.
4. In-Lieu Fees. Developer shall pay in-lieu fees to fulfill its obligation to construct
5 of the 31 inc1usionary units at the time, in the amount, and as otherwise required by the
Regulations and Council Resolution No. 56-02. As required by the Regulations, the entirety of
the fee shall be paid at time of issuance of the first building permit in the First Phase.
Notwithstanding anything to the contrary in the foregoing, the parties agree that, should the
parties enter into the Subsequent Agreement, the monies paid by Developer pursuant to this
Section will be refunded to Developer, with the City retaining any accrued interest, from the
City's Affordable Housing Fl).nd, unless the Subsequent Agreement specifies otherwise.
Fallon Village (Initial Phase) Affordable Housing Agreement_052107 (2)
AffOJ
4
First Phase ofPositano Project
May 24, 2007
71 /~
5. Community Benefit Payment. Developer hereby agrees to make a $958.77
community benefit payment prior to .issuance of the building permit for each residential unit in
the First PhaSe. The community benefit payment required by this Section shall be in addition to
the $2,396.93 community benefit payment required by the Development Agreement for the
Fallon Village Project between Developer and the City, .dated December 20, 2006.
6. Inclusionarv Unit Desi2D. Location. and Size.
A. Exterior Materials and Exterior Architectural Desi2n. The exterior
materials and exterior architectural design ofthe Inclusionary Units shall be consistent with the
First Phase's market-rate units upon their review and approval through the Site Development
Review by the Planning Commission; provided, however, that minor changes to unit size may be
approved by the Community Development Director through a Site Development Review waiver.
B. Unit Location. Consistent with Section 8.68.030 of the Regulations, the
Inclusionary Units shall be dispersed throughout the individual phase in which they are
constructed. The "Diagram and Location of Inclusionary Units in the First Phase of the Project,"
attached hereto as Exhibit 3, shows the location of the Inclusionary Units as proposed by the
Developer, which the developer hereby agrees to construct as shown, and the City hereby fmds
that the units as shown are reasonably dispersed through the Project as required by Section
8.68.030.E of the Regulations.
C. Rear Yard Landscavin2. Developer's Site Development Review
submittal shows fully landscaped rear yards (including turf, shrubs, trees, irrigation, and a usable
pad area) for each ofthe Integrated Units shown in Exhibit 3, and Developer hereby agrees to
complete the rear yard landscaping as shown in the submittal (or as revised in the SDR approval)
prior to occupancy of the Integrated Units.
D. Green Buildin2 Principles. Construction of the Integrated Units and
Secondary Units shall incorporate Green Building Principles by meeting the minimum
requirements for a green home set forth in the "Single Family GreenPoint Checklist" attached
hereto as Exhibit 5.
7. Unit Bedrooms and Size. The size ofthe Inclusionary Units shall be consistent
with the Site Development Review approval of the Planning Commission, provided however,
that minor changes to unit size may be approved by the Community Development Director
through a Site Development Review Waiver. The developer proposes to provide:
A. 8 very low-income units (4 four-bedroom Integrated Units and 4 1-
bedroom Secondary Units);
B. 6 low-income units (3 four-bedroom Integrated Units, and 3 one-bedroom
Secondary Units); and
C. 12 moderate-income units (6 four-bedroom Integrated Units, and 6 one-
bedroom Secondary Units).
Fallon Village (Initial Phase) Affordable Housing Agreement_052107 (2)
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First Phase ofPositano Project
May 24, 2007
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The City hereby finds that, while this breakdown does not reflect the range of numbers of
bedrooms provided in the First Phase as a whole, as required by Section 8.68.030.E of the
Regulations, the Developer's alternate method of compliance meets the purposes of the
Regulations.
8. Ensurin2 Affordabilitv.
A. Inte2rated Units.
i. Sales Price and Marketing of Integrated Units. Developer shall
sell the Integrated Units at sales prices that are affordable, as applicable to the individual buyer,
to persons with very low-, low-, or moderate-incomes as defined in the Regulations. The
maximum sales price shall be adjusted for household size and income (except that the income for
very-low income households shall be assumed to be equal to the maximum income within the
very-low income category for the buyer's household size regardless of buyer's actual income).
Additional detail on the manner of calculating sales prices for the Inclusionary Units is set forth
in the Layperson's Guide to the lnclusionary Zoning Ordinance Regulations, adopted by the City
Council on June 1,2004 and attached hereto as Exhibit 6. All units shall be marketed and sold
consistent with the Regulations.
ii. Marketing Plan. Developer shall prepare and receive City
approval of a Marketing Plan as required by Section 3.1 of the Layperson's Guide to the
lnclusionary Zoning Ordinance Regulations, adopted by the City Council on June 1,2004 and
attached hereto as Exhibit 6, prior to issuance of the first building permit in the First Phase
(excluding building permits issued for model homes).
111. Resale Agreements. Developer shall require the initial buyer of
each Integrated Unit to execute, and record against the applicable property, a Resale Restriction
and Option to Purchase Agreement and Perforn1ance Deed of Trust (collectively "Resale
Agreement") in substantially the form attached hereto as Exhibit 7. This Affordable Housing
Agreement shall serve as the agreement required by Section 8.68.030 of the Regulations. In the
event that the initial buyer participates in other City housing programs, such as the first time
home buyer loan program, the City may approve the use of other resale restriction agreements.
B. Secondary Units.
i. Regulatory Agreements. Developer shall require the initial buyer
of each parcel on which one of the Secondary Units is located to execute, and record against the
parcel, a Secondary Unit Regulatory Agreement in substantially the form attached hereto as
Exhibit 8. Developer shall ensure that the initial buyer attends an orientation session, provided
by an independent third party approved by the City, that describes the requirements ofthe
Secondary Unit Regulatory Agreement.
C. City Administrative Fee. Prior to the City's execution of either the
Resale Agreement or Second Unit Regulatory Agreement, Developer shall pay the City a City
Fallon Village (Initial Phase) Affordable Housing Agreement_052 1 07 (2)
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First Phase ofPositano Project
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Administrative Fee, in an amount to be established from time to time by the City Council and
which is currently set at $1,500 per transaction.
9. Term. This Agreement shall be effective until all Inclusionary Units in the First
Phase are constructed, sold, and subjected to resale restrictions approved by the City pursuant to
the terms of this Agreement and the parties have entered into the Subsequent Agreement.
10. Memorandum of A2reement to be Recorded. Developer and City shall execute
and acknowledge a Memorandum of this Agreement ("Memorandum") substantially in the form
attached hereto as Exhibit 9, and City shall cause the Memorandum to be recorded in the
Official Records of Alameda County upon its execution.
11. Ae;reement Runs with the Land. All of the provisions, rights, terms, covenants,
and obligations contained in this Agreement shall be binding upon the Parties and their
respective heirs, successors and assignees, representatives, lessees, and all other persons
acquiring the Property, or any portion thereof, or any interest therein, whether by operation of
law or in any manner whatsoever. All of the provisions of this Agreement shall be enforceable
as equi"table servitude and shall constitute covenants running with the land pursuant to applicable
laws, including, but not limited to, Section 1468 of the Civil Code of the State of California.
Each covenant to do, or refrain from doing, some act on the Property hereunder (a) is for the
benefit of the Property and is a burden upon the Property, (b) runs with the Property, and (c) is
binding upon each Party and each successive owner during its ownership of the Property or any
portion thereqf, and shall be a benefit to and a burden upon each Party and the Property
hereunder and each other person succeeding to an interest in the Property.
12. Assi2nments and Transfers.
A. Right to Assign{tc "17.1 Right to Assign" \12}. Developer may wish
to sell, transfer or assign all or portions of its Property to other developers (each such other
developer is referred to as a "Transferee"). In connection with any such sale, transfer or
assignment to a Transferee, Developer may sell, transfer or assign to such Transferee any or all
rights, interests and obligations of Developer arising hereunder and that pertain to the portion of
the Property being sold or transferred, to such Transferee, provided, however, that: no such
transfer, sale or assignment of Developer's rights, interests and obligations hereunder shall occur
without prior written notice to City and approval by the City Manager, which approval shall not
be unreasonably withheld or delayed. Any such assignment shall specifically acknowledge the
obligation under Section 2 ofthis Agreement to enter into a Subsequent Agreement prior to any
development on and approval of subsequent final maps that include any portion of the Property
except for the First Phase. Notwithstanding the foregoing, provided notice is given as specified
in Section 19, no City approval shall be required for any transfer, sale, or assignment of this
Agreement, in whole or in part, to any entity or group, a majority interest of which is owned or
held under common control with Developer ("Affiliate"), provided that in the event of a partial
transfer, Developer has, at the time of the transfer, complied with all obligations of this
Agreement or provided evidence satisfactory to the City Manager demonstrating that the
remaining obligations have been allocated between Developer and Affiliate.
Fallon Village (Initial Phase) Affordable Housing Agreement_ 0521 07 (2)
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First Phase ofPositano Project
May 24, 2007
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B. Approval and Notice of Sale. Transfer or Assigmnent{tc "17.2
Release Upon Transfer" \12}. The City Manager shall consider and decide on
any transfer, sale or assignment within thirty (30) days after Developer's notice thereof, provided
all necessary documents, certifications and other information are provided to the City Manager to
enable the City Manager to determine whether the proposed Transferee can perform the
Developer's obligations hereunder. Notice of any such approved sale, transfer or assignment
(which includes a description of all rights, interests and obligations that have been transferred
and those which have been retained by Developer) shall be recorded in the official records of.
Alameda County, in a form acceptable to the City Manager, concurrently with such sale, transfer
or assignment.
C. Effect of Sale, Transfer or Assignment. Developer shall be released from
any obligations hereunder sold, transferred or assigned to a Transferee pursuant to Section l2.a
ofthis Agreement, provided that: a) such sale, transfer or assignment has been approved by the
City Manager pursuant to Sections 12.a and 12.b; and b) such obligations are expressly assumed
by Transferee and provided that such Transferee shall be subject to all the provisions hereof.
13. Successors. Except as specifically provided in this Agreement, this Agreement
shall bind and inure to the benefit of all successors and assigns of the parties and any associates
in interest, and their respective directors, officers, agents, servants, and employees, and the
successors and assigns of each of them, separately and collectively. Developer shall provide
notice to the City of the names and mailing addresses of any such successors or assigns.
14. Hold Harmless. Developer shall hold City, its elective and appointive boards,
commission, officers, agents and employees harmless from and against any or all loss, liability,
expense, claim, costs, suits, damages of every kind, nature and description directly or indirectly
arising from the performance of the obligations or undertakings of Developer pursuant to this
Agreement. Developer shall defend City and its elective and appointive boards, commission,
officers, agents and employees from any suits or actions at law or in equity for damages caused
or alleged to have been caused, by reason of any ofthe obligations or undertakings of Developer
pursuant to this Agreement. It is further provided that this hold harmless agreement shall apply
to all damages and claims for damages for every kind suffered, or alleged to have been suffered,
. by reason of any of the obligations or undertakings of Developer pursuant to this Agreement.
15. Enforcement. If the Developer defaults in the performance or observance of any
covenant, condition, restriction or obligation of the Developer as set forth in this Agreement, and
such default remains uncured for a period of thirty (30) days after notice thereof is given by the
City (or such longer period as may be necessary to cure the default, provided that Developer
commence the cure within the thirty (30) day period and diligently prosecutes the cure to
completion), the City may take anyone or more of the following steps:
A. By specific performance or other action or proceeding at law or in equity,
require the Developer to perform its obligations under this Agreement or enjoin any acts or
things which may be unlawful or in violation of the rights of the City hereunder.
Fallon Village (Initial Phase) Mfordable Housing Agreement_052107 (2)
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First Phase ofPositano Project
May 24, 2007
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B. Take such other action at law or in equity as may appear necessary or
desirable to enforce the obligations, covenants, conditions and restrictions of the Developer
under this Agreement.
C. If Developer transfers any portion of the project in bulk and a Transferee
defaults under this Agreement, the City shall exercise the foregoing remedies only with respect
to the defaulting Transferee and its portion of the project; and so long as Developer has not
otherwise defaulted hereunder, the City shall not seek to exercise any rights and remedies against
Developer.
16. Attorneys' Fees. Iflegal action is necessary to enforce any provisions of this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and legal costs.
17. Amendments. This Agreement shall be amended only by a written instrument
executed by the parties hereto or their successors in interest and duly recorded in the Official
Records of the County of Alameda, California.
In the event that Developer is unable to perform its obligations under Sections 3 and 6 of
this Agreement due to significant changes in circumstances, such as unanticipated delays in
construction within any of the neighborhoods, the City shall confer with Developer in an effort to
reach a mutually acceptable resolution, consistent with the terms of the affordable housing
conditions in the Approvals. If an agreement is reached, this Agreement shall be amended
accordingly. Developer shall pay the City its reasonable costs, including attorneys' fees,
incurred in such negotiations and in amending this Agreement, and Developer shall, if requested
by the City, provide the City with a reasonable deposit to cover the City's reasonable costs, upon
Developer initiating such negotiations.
18. Corporate Authority. If either party is a corporation, each individual signing
this Agreement on behalf of that corporation represents and warrants that each of them is duly
authorized to execute and deliver this Agreement on behalf of the corporation and that the
Agreement is binding on the corporation in accordance with its terms.
19. Noticesftc \11 "23. Notices}. All notices required or provided for under this
Agreement shall be in writing. Notices required to be given to CITY shall be addressed as
follows:
City Manager
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Notices required to be given to Developer shall be addressed as follows:
Jeff Lawrence
Dublin RE Investors
4155 Blackhawk Plaza Circle, Suite 201
Fallon Village (Initial Phase) Affordable Housing Agreement_052107 (2)
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First Phase ofPositano Project
May 24, 2007
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Danville, CA 94506
FAX No. (925) 648-5700
A party may change address by giving notice in writing to the other party and thereafter all
notices shall be addressed and transmitted to the new address. Notices shall be deemed given
and received upon personal delivery, or if mailed, upon the expiration of 48 hours after being
deposited in the United States Mail. Notices may also be given by overnight courier which shall
be deemed given the following day or by facsimile transmission which shall be deemed given
upon verification of receipt.
20. Exhibits. The following documents are referred to in this Agreement and are
attached hereto and incorporated herein as though set forth in full:
Exhibit 1
Exhibit 2 '
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7
Exhibit 8
Exhibit 9
Property Description of the Property
Diagram of the First Phase of the Project
Diagram of Location of Inc1usionary Units in the First Phase of the Project
Preliminary Construction Schedule
Single Family GreenPoint Checklist
Layperson's Guide to the Inclusionary Zoning Ordinance Regulations
Resale Restrictions and Option to Purchase Agreement
Secondary Unit Regulatory Agreement
Memorandum of Affordable Housing Agreement for the Construction of
Inc1usionary Units and the Payment of Fees In-Lieu of Constructing
Inclusionary Housing Units
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the date and year first above written.
Dated:
Attest:
CITY OF DUBLIN
By:
Richard C. Ambrose, City Manager
Fallon Village (Initial Phase) Affordable Housing Agreement_052107 (2)
AffOJ
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first Phase ofPositano Project
May 24, 2007
13 c;f J ~ '
Kay Keck, Interim City Clerk
Dated:
DUBLIN RE INVESTORS, LLC
By: Braddock and Logan Services, Inc.
a California corporation .
Its Manager:
C~
' By: -
.. _. - P~. I 0 ~,J1"
Fallon Village (Initial Phase) Affordable Housing Agreement_052 I 07 (2)
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First Phase ofPositano Project
May 24, 2007
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
~~~
State of California
County of Q.D,..(..,r<...A
On 5 )~5/ol
Date
CiJ STf\
before me,
NPrN FE. E:m8
Name and 11tle of Officer (e.g. "
\-P-. ~ R-€: ~Q.
Name(s) of Signer(s)
.p J (0 J-I C.
,
personally appeared
5E~~
!i'persOnallY known to me
o (or proved to me on the basis of satisfactory evidence)
J----------....-----....
NANCY E. EMBREY
i@Commlsslonit1578043. I
~ -.. Notary Publfc . California I
j confracOItacOIftvd
My Comm..ExpItes Jun 8.
------.....------..............
to be the person~ whose name~) isfat:e subscribed to the
within instrument and acknowledged to me that
he/slae/~"P-xecuted the same in his/h~r authorized
capacity~), and that by his~r signature~) on the
instrument the person~, or the entity upon behalf of
which the person(9( acted, executed the instrument.
WITNESS my hand and official seal.
Place Notary Seal Above
€. f
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent remova! and reattachment of ~his ~rm to another document.. \ . 0 l
Description of Attached Document ~'70 at O~. r- (:', M1- ~ I\....~
Title or Type of Document: Q<{t,....~b..-eJj /fcU4/~~- ~ \j .~.u~
Document Date:
Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
o Individual
o Corporate Officer - Title(s):
o Partner - 0 Limited 0 General
o Attorney in Fact
o Trustee
o Guardian or Conservator
o Other:
Top of thumb here
Signer's Name:
o Individual
o Corporate Officer - Title(s):
o Partner - 0 Limited 0 General
o Attorney in Fact
o Trustee
o Guardian or Conservator
o Other:
RIGHT THUMBPRINT
OF SIGNER
Top of thumb here
RIGHT THUMBPRINT
OF SIGNER
Signer Is Representing:
Signer Is Representing:
~~~~~~~~~~
@2006 National Notary Association' 9350 De Soto Ave., P.O. Box 2402' Chatsworth, CA 91313-2402 Item No. 5907 Reorder: Call Toll-Free 1-800-876-6827
,I) ~ 12~
EXHIBIT 1
Property Description of the Property
/6, 112-6
Order Number: 0150-5938928la
Page Number: 5
LEGAL DESCRIPTION
Real property in the City of Dublin, County of Alameda, State of California, described as follows:
PARCEL ONE:
A portion of the south 1/2 of Section 27 and a portion of the north 1/2 of Section 34, Township 2
South, Range 1 East, Mount Diablo Base and Meridian, described as follows:
Beginning at the northerly terminus of the center of Fallon Road in the southern boundary of the
Fallon Ranch; thence along the center of an existing roadway; North 180 40' West, 63.33 feet,
North 340 59' 21" West, 100.06 feet, North 210 15' West, 100.00 feet, North 30 00' West, 100.00
feet; and North 10 DO' East, 100.00 feet; hence leaving said center of said roadway and running
along a tangent 170.00 foot radius curve to the left through a central angle of 400 20' for an arc
distance of 119.67 feet to a point of Reverse Curvature in an eXisting fence line in the westerly
line of the westerly fork in said roadway; thence along said westerly line of aid roadway and said
fence line on 500.00 foot radius curve to the right, through a central angle of 350 45' for an arc
distance of 311.98 feet to a comer in said fence line; thence leaving said line of said roadway
and continuing along said fence line and its westerly prolongation, North 820 40' West, 200.00
feet; hence North 150 51' 43" West, 272.48 feet; thence North 13030' East, 453.59 feet; thence
East 470.00 feet to the hereinabove said westerly line of said roadway; thence along said line of
said roadway on the following courses: North 370 40' East, 177.15 feet, North 270 15' Eat,
182.90 feet, North 70 00' West, 100.00 feet, and North 110 00' West, 130.00 feet; thence the
following courses; from a tangent bearing North 680 00' West, running along a 160.00 foot radius
curve to the right through a central angle of 550 00' for an arc distance of 153.59 feet to a point
of Reverse Curvature; thence along a 100.00 foot radius curve to the left through a central angle
of 150 20' for an arc distance of 26.76 feet to a point of Reverse Curvature; thence along a
400,00 foot radius curve to the right through a central angle of 340 15' for an arc distance of
239.11 feet to a point of Reverse Curvature; thence along 170.00 foot radius curve to the left
through a central angle of 340 35' for an arc distance of 102.61 feet; thence North 280 40' West,
200.00 feet; thence along a tenant 165.00 foot radius curve to the right through a central angle
of 57000' for an arc distance of 164.15 feet; thence North 280 20' East, 250.00 feet North 200
30' West, 220.00 feet to the southerly line of an existing roadway; thence from a tangent bearing
South 860 35' West! running along said southerly line of said roadway on a 300.00 foot radius
curve to the left through a central angle of 190 35' for an arc distance of 102.54 feet; thence
North 230 00' West, 208.22 feet; hence East 660.80 feet; thence at right angles, North 1,781.78
feet; hence North 89043' 43" East, 2,258.55 feet; hence South 00 40' 34" West, 5277.52 feet;
thence West 2,640.35 feet to the point of beginning. . .
Excepting therefrom any portion thereof described in the Quitclaim Deed to Chang Su-O Lin, et
ai, recorded December 27, 1991, Series No. 91-344397, Official Records.
PARCEL TWO:
The land conveyed to Fallon Enterprises, Inc., a California Corporation by Quitclaim Deed
recorded December 27, 1991, Series No. 91-344396, Offidal Records.
PARCEL THREE:
An easement for ingress and egress, appurtenant to Parcel One above, granted to Fallon
Enterprises, Inc., a California corporation, recorded July 21, 1970, Series No. 77340, Reel 2658
Rrst American Title
Order Number: 0150-593892818
Page Number: 6
ORI Image 3351 over a portion of the southwestern 1/4 of Section 341 Township 2 Southl Range
1 Eastl Mount Diablo Base and Meridian described as follows:
Beginning at the northerly terminus of the center of Fallo~ Road in the southern boundary of
Fallon Ranch; thence west 31.67 feet along an existing fence line; thence leaving said fence line
and running North 18040' West 63.33 feet; thence parallel with said fence Iinel East 31.67 feet;
thence South 180 40' East 63.33 feet to the point of beginning., .
APN: 985-0028-002
Arst American Title
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Tract 7586 at
Fallon Village
LEGEND
--------------.....
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_ NEIGHBORHOOD A
..... NEIGHBORHOOD B
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RECENm
APR 3 0 Z001
DUBLlN PLANNING
"-"-"-..-..-..-.._..J
*
NORTH
0' 300' 600' 1200'
I
DlICDY. SORlPS
CIVIL ENGINEERING. LAND PLANNING.LAND SURVEYING
PLEASANTON, CA. 94588 925) 225 0690
Exhibit 2
<)fJ ~ 12f;
Positano First Phase Preliminary Construction Schedule
MODELS
Income Level Moderate Low Very Low Sub-Total BMR Market Total
Neighborhood A 4 4
Neighborhood B 4 4
Total 0 0 0 0 8 8
PHASE ONE
Income Level Moderate Low Very Low Sub-Total BMR Market Total
Market Rate - Neighborhood A 13 13
Market Rate - Neiahborhood B 11 11
,. Bedroom BMR 1 1 2 4 4
Secondary Unit 1 2 2 5 5
Total 2 3 4 9 24 33
Percantage of Phase Units 6% 9% 12% 27% 73% 100%
PHASE TWO
Income Level Moderate Low Very Low Sub-Total BMR Market Total
Market Rate - Neiahborhood A 14 14
Market Rate - NeighborhoOd B 12 12
,. Bedroom BMR 3 1 1 5 5
Secondary Unit 2 0 2 4 4
IT otal 5 1 3 9 26 35
Percantage of Phase Units 14% 3% 9% 26% 74% 100%
PHASE THREE
Income Level Moderate Low Very Low Sub-Total BMR Market Total
Market Rate - Neighborhood A 16 16
Market Rate.- Neighborhood B 12 12
4 Bedroom BMR 2 1 1 4 4
Secondary Unit 3 1 0 4 4
Total 5 2 1 8 28 36
Percantaae of Phase Units 14% 6% 3% 22% 78% 100%
PHASE FOUR
IIlncome Level Moderate Low Very Low Sub-Total BMR I Market I Total II
IIMarket Rate - Neighborhood B I 12 12 II
PHASE FIVE
Income Level I Moderate Low Very Low Sub-Total BMR Market Total "
Market Rate - Neighborhood B I 12 12 II
PHASE SIX
~B Moderate I Low I Very Low Sub-Total BMR Market Total
10 10
PHASE SEVEN
Moderate Low Very Low Sub-Total BMR I Market I Total II
Neighborhood B I I 12 12 II
Exhibit 4
2) 11~~
",Market
14
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PHASE TEN
'~Sub.. TQt,alBMR'
'~'lb;';TotaIB..
PHASE TWELVE
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Market Rate.. N:'
PHASE THIRTEEN
. 'Market
11
PHASE FOURTEEN
Income liivel!; .
Market Rale:-N@i
SQIf~19tar BMR
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2-'h~ 12-(p
Single Family GreenPoint Checklist
date: f,/1'1.) .7'-
~,... Buiild' ftt 1f,:'~~II"~~ri
~, YO B '%]0 ~~~ >J
( .-- Smart 50/&11011., From )11~ Ground Up
The GreenPoint checklist tracks green features incorporated into the home. The recommended mini-
mum requirements for a green home are Earn a total of 50 points or more; obtain the following minimum
points per category: Energy (11), Indoor Air Quality/Health (5), Resources (6), and Water (3); and meet
the prerequisites A.3a (50% construction waste diversion) and N.1 (Incorporate Green Points checklist
in blueprints).
The green building practices listed below are described in the New Home Constructicil Green Building
Guidelines, available at www.builditqreen.orQ
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A.SITE Possible Points
1. rotect Native Soil and Min. ize Disruption of Existing Plants & Trees
o a Protect Native Topsoil from Erosion and Reuse after Construction. }.--.I-.-- 'm. ..._... I 1
o b. Limit and Delineate Construction Footprint for Maximum Protection i"'j 1
..=-'0 __.I:Eecons.!.rUct In~teadOfDemolistiing Exi~lng Build~~_~~_Site_______________.._..______________..,______~_....L__.____'-__..L..J_____.
3. Recycle Job Site Construction Waste (Including Green Waste)
o a. Minimum 50% Wasle Diversion by Weigllt (Recycling or Reuse) - Required
o b. Minimum 65% Diversion by Weight (Recycling or Reuse)
_._...Q_.__ c Minimu~~~!~ Diversion by Weight (Re.~~~ng or R~~~.____.___...._..__._.._...._._._._.._.._.____.._...__..___.___.__
4. Use Recycled Content Aggregate (Minimum 25%)
o a. Walkway and Driveway
o b. Roadway Base
RLANDSCAPING , "" I possible Points
I
1. Construct Resource-Efficient landscapes
0 a. No Invasive Species Listed by Cal-IPC Are Planted 1
0 b No Piant Species Will Require Hedging 1
0 c. 75% of Plants Are Califomia Natives or Mediterranean Species i
'-cr2: Use Fi";Safe t.andstaping Techniques -..----. .----
1
3. Minimize Turf Areas in landscape Installed by Builder
0 a. All Turf Will Have a Water Requirement less than or Equal to Tall Fescue 2
0 b Turf Shall Not Be Installed on Slopes Exceeding 10% or in Areas less than 8 Feet Wide 2
0 c. T urlis <33% oflandscaped Area 2
0 d Turf is <"10% of landscaped Area 2
[J] 4. Plant Shade Trees 1 1
[ ] 5. Implement Hydrozoning: Group Plants by !,~~r Need~_____.____ I i 1
6. Install High-Efficiency Irrigation Systems
0 a System Uses Only low-Flow Drip, Bubblers. or low-flow Sprinklers I 1
0 b. System Has Smart (Weather-Based) Controllers 2
o 7. Apply Two Inches of Compost in the Top 6 to 12 Inches of Soil I , 2
l
--0'-..8: MUlch-AlipjantingBeds-io the Greiite~-Of2j;;~he;o;:Locili Water-Ordln-;;;;ce Reqiiiremeni---------. ..~_.. -~'--"""1 ,
I i 1
0 9. Use 50% Salvaged or Recycled-Content Materials for 50% of Non.Plant landscape Elements I 1 !
[ ] 10. Reduce light Pollution by Shielding Fixtures and/or Directing light Downward I 1 I :
!
c.FouNDAnON ____.
1. Incorporate Recycled Flyash in Concrete
a. Minimum 20% Flyash
b. Minimum 25% Flyash _..___________________
2. Use Frost-Protected Shallow Foundation in Cold Areas (C.E.C. Climate Zone 16)
-::JJ-- 3. Us~~~dori Resistant Construction (InAt-RiSiZLocations Onlyj-..-----------..-...--.-..-----
Possible Points
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D. STRUCTlJRALFRAME & BllILDING ENVEl.OPE
. 1, Apply Optimal Value Engineering ---.----.----.-.---.-.--.---------
o a. 2x4 Studs at 24-lnch On Center Framing
o b Door and Window Headers Sized for load
o c Use Only Jack and Cripple Studs Reqllire~ for load ___
Possible Points
1
Single-Family GreenPoint Checklist
2006 Edition
Page 1 of 4
Exhibit 5
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2. Use Engineered Lumber
[] a Beams and Headers
o b Insulated Engineered Headers
[] c Wood I-Joists or Web Trusses for Floors
o d Wood I-Joists or Rafters
o e. Engineer~d or_ Finger.Jointed Studs for Vertical Appl~calions
3. Use FSC-Certified Wood
o a Dimensional Studs: Minimum 40%
o b Dimensional Studs: Minimum 70%
o c Panel Products: Minimum 40%
o d. Panel Products: Minimum 70%
-O----4:-De;ig~ Energy Heels on T';;;;s (750/-:Of Aili~ Insulation Height at O~tsici;edge .of Exterior Wall)
./ 5. Design Trusses to Accommodate Ductwork
6. Use Oriented Strand Board (OSB)
[] a Subnoor
[] b Sheathing
--rr7'- Use Recycled.Content Steel Studs for 90% of Interior Wall Framing
8. Use Solid Wall Systems (Includes SIPs, ICFs, & Any Non-Stick Frame Assembly)
o a. Floors
o b Walls
o c. Roofs
9. Thermal Mass Walls: 5J8-lnch Drywall on Alllnterio! Walls or Walls Weigh m~~!I1_an ~.~~!.~u.~_.
10. Design and Build structural Pest Controls
[] a. Install Termite Shields & Separate All Exterior Wood-to-Concrete Connections
by Metal or Plastic Fasteners/Dividers .
[] b All New Plants Have Trunk, Base, or Stem Located At Least 36 Inches from Foundation
11. Reduce Pollution Entering the Home from the Garage
o a Tightly Seal the Air Barrier between Garage and Living Area
o b. Install Separate Garage Exhaust Fan
12. Install Overhangs and Gutters
o a. Minimum l6-lnch Overhangs and Gutters
o b. Min.~":l.'!.'!!.?4-lnch Overhangs and G~_~~._~_.._._.__....___.._._._..._.._.._..____.___.._.___
1
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E.:E:XTERIORFINIS~_ .. .. ~_-'- .... . __-"-_----'-~_._._
-U 1. Use Recycled.content (No Virgin Plastic) or FSC.Certlfied Wood Decking
./ 2. Install a Drainage Plane (Rain Screen Wall System)
./ 3. Use Durable ~!!~.~on-Combustible Siding Materials
'-0 4. ~~!.ect Durable and Non,Co!".!J~~le Roofing Materials
Possible Points
2
. . . 2
---__t~~--: -+-.j---i-t---
F. PL~mING
1. Distribute Domestic Hot Water Efficiently
a Insulate Hot Water Pipes from Water Heater to Kitchen
b Insulate All Hot Water Pipes OR Install On-Demand Hot Water Circulation System
in conjunction with F La Insulate Hot Water Pipes from Water Heater to Kitchen
o c Locate the Waler Heater within 25 feet of All Hot Water Fixtures and Appliances
o d Use E~gineered Paralle!!.'P!'.1L_.___._______ ____
_0_~:_!~stall OnIY_~.!['!..E..f!lcien~ Toilets (Dual:'2~~h_.~.:::~:~!!En.._..__.____________________
_I
. Possible Points
o
o
1
9;APPLIANCE~.___._.__
1. Install ENERGY STAR Dishwasher
[] a ENERGY STAR
[] b. Dishwasher Uses No More than 6.5 Gallons/Cycle
lZI---2.'Tr;"~tal~ ENERGY ST ARClothe~Wasii~!LMacj,i~e -~ith Water Faclor'0t6o~ L~;S---=----------'
3. Install ENERGY STAR Refrigerator
o a. ENERGY STAR: 15% above Federal Minimum
__ 0 b:...~uperi!f~ent Home Applianc~!!er 2: 3~~~~~~ederal Minimum ____..__._.__.._.._..__..___
TI 4. Install Built.ln Rec~\ing.~enter __ __._.____
Possible Points
1.
3
Single-Family GreenPoint Checklist
2006 Edition
Page 2 of 4
2t !f J2b
H.T~SUl..ATIO~_,_~-,~~___________._____-,~.~_-,.-,___.___,___._..__..._.....:......___
1. Install Insulation with 75% Recycled Content
a. Walls andlor Floors
b. Ceiling~_______ _____.
2. Install Insulation that is Low-Emitting (Certified Section 01350)
:: ~~::~:;d/or ::~: _._________._____ _________ ._.___________._.__ L -
3. Pre-Drywall Inspection Shows Quality Installation of Insulation .__ L.....:.._1
o
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~l:I.EATING,VENTILATION&AIR ~ONDI!!Q_NING __-'--__________, I
o 1. Design and 1.~~~VACSystem to A~!?~.~an~~~~~~~_~_~:~.r!lmend~~~:_._____.1
2. Install Sealed Combustion Units
a. Furnaces
b. Water Heaters
3. No Fireplace or Sealed Gas ~ireplace \!ith Efficiency Rating N~ Less_Than 60%
4. Install ENERGY STAR Ceiling Fans with CFLs in Living Areas and Bedrooms
5. Install Mechanical Ventilation sYstem for Nigilttime'CoOiing (Points are'Cum-ulatlve up to 3) ._..~~'__h_ .........- .
o a Whole House Fan
o b. Automatically Controlled Integrated System
o c. Integrated System with Variable Speed Control
1---'0---s.Tristall A!r...~~_~_~i~~ning wiih-No-ii:~~~ Ref;igeraiit~'---------'--'----'--------.-
7. Design and Install Effective Ductwork
o a Install HVAC Unit and Ductwork within Conditioned Space
o b. Use Duct Mastic on All Duct Joints and Seams
o c. Install Ductwork under Attic Insulation (Buried Ducts)
o d. Pressure Balance the Ductwork System for Master Bedroom
o e. Protect Ducts during Construction and Clean All Ducts before 9.~upancy ____..__._________
~_._ 8. Install Hig'!. Efficiency HVAC Filter !!,!!ER~ 6+) _____........__..._._._.._.__.
LJ 9. Install Zoned, Hydronic Radi~~~~~ting with Slab Edg~ Insulation _
10. Install Mechanical Ventilation System
a. Any Whole House Ventilation System That Meets ASHRAE 622
b Install ENERGY STAR Bathroom Fan
c. All Bathroom Fans Are on Timer or Humidistat
11. Use Low.Sone Range Hood Vented to the Outside
12. Install Carbon Monoxid~!-Iarm(s)
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;J.B1:JILDlN(;PERFORMANCE
0% 1. Design and Build High Performance Homes (2 points for each 1% above T.24, up to 30 pts)
Enter the percent above Ti!J!: 24 in the cell at left. Any value over 15% wilt!!.9!!!aticallyeam 30 poi~~:......___.__.
2. House Obtains ENERGY STAR !'.ith !!l~~~r Packa~~.g~'!ifi:~~~~~.__..__.._____.___.____ '_
3. Inspection and Diagnostic Evaluations
a. Third Party Energy and Green Building Review of Home Plans
b Blower Door Test Performed
_~:~~use Pa~~~ Co!!!~~~on Safety Backdraft Te~.
~-
K.RENEW ABLE El'.'ERGY _....______.__
o 1. Pre.Plumb for Solar Hot Water Heating
2. Install Solar Water Heating System
.'_ 3. Insta~Wiring Conduit for Futur~.~!!~!~~!!~.ic Installation !.F.'rovide 200 ft'.of Sot,!!!!:~acin!!. ROo!..._._._...........
4. Install Photovoltaic (PV) Panels
a 12 kW System
b 24 kW System
c. 3.6 kW or more
Single-Family GreenPoint Checklist
2006 Edition
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Q 1. Provide Permanent Walk-Off Mats .and Shoe Storage at ~c:.'!!:. Entra~ces
2. Use Low/No-VOC Paint
[] a Low.VaC Interior Wall/Ceiling Paints (<50 gpl VOCs (Flat) and <150 gpl VOCs (Non-Flat))
o b. Zero.VOC: Intelior Wall/Ceiling Paints (<5 gpl VOCs (Flat))
[] 3. Use Low VOC, Water-Based Wood Finishes (<150 gpl VOCs)
4. Use Low-VOC Construction Adhesives (<70 gpl VOCs) for All Adhesives
a----s. Use Recyc!ed.Content Paint_.._.-==-~~~=~---.------- -----.-
6. Use Environmentally Preferable Materials for Interior Finish: A) FSC.Certified Wood, B) Reclaimed Lumber,
C) Rapidly Renewable D) Recycled.Content or E) Finger-Jointed
At Least 50% of Each Matenal (1 pt each):
o a. Cabinets
o b. Interior T nm
o c. Shelving
o d. Doors
0_._..__ e. Countertop~_..__________________.__..___.__.....__._____
7. Reduce Formaldehyde in Interior Finish (Section 01350) for At Least 50% of Each Material Below:
o a. Cabinets
[] b Intenor Trim
[] c. Shelving
o d. Subfloor
U 8. After Installation of Finishes, Test of Indoor Air Shows Formaldehyde Level <27ppb
1
3
M.}t1..00RlNG Possible Points
1. Use Environmentally Preferable Flooring: A) FSC.certified or Reclaimed Wood, B) Rapidly Renewable
Flooring Materials, C) Recycled.Content Ceramic Tiles, D) Exposed Concrete as Finished Floor or E) Recycled-
Content Carpel Note: F/ooring Adhesives Must Have <50 gp/ VOCs.
o a. Minimum 15% of Floor Area
o b. Minimum 30% of Floor Area
o c Minimum 50% of Floor Area
o d. Minimum 75% of Floor Area
2. Thermal Mass Floors: Floor Covering Other than Carpet on 50% or More of Concrete Floors 1
__.2!.looring Me~~_Section ~135O_~~~~~~~I!..~bel Plus ~equir~!"~~..l50% Mini~!!!!.__....._._===.L__._L 2 L___L__
N.OTHER ..... . :....
-~Ocrporate Green Points Ch~~lclist j~-B'lueprints .. Required ------~------
-0 2. Develop Homeowner Manual of Green Features/Benefits 1 1 I
3. Community Design Measures & Local Priorities: See the Community Planning & Design section in Chapter 4 of the New Home Guidelines for measures
Maximum of 20 points for suggested measures Local requirements may also be listed here.
-..Enierdesclipiioo.here.--------.----.-.-..------......-....-....-.....--..--..-.-.....--.....-.........-----.------...---....-0--.--....--.. ...... ... ..........-....-...--...............-
Possible Points
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Enter descliption here
"-- ""Ente'r descilptlon'here--'------ "~_..~_,.___~~W_.'n.^~^'"..___._.___~.__~_.,.,._...._.,.,~__.._c_.' . _._..~-_.,~,_.~,.^.~..,.~......~....~..
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4. Innovation: Ust innovative measures that meet the green building objectives of the Guidelines. Enter up to a maximum combined total of 20 pts See Innovation
Checklist for suggested measures.
______w__
Innovation in Community: Enter descnption here
......"............_......................."..'........m......~__'"......_._"........_..__....k..__...........,..._...._.
Innovation in Energy: Enter descnption here
.ll1l1o;;aiionin.iAQiHeaith:Enterdescripiion~tiere~
..... __ _,"_." ..__.._ _._,. _ ...__,,_.._....._...._.._,_..+_".......~.h.. ..... ~.......... ._. .___... .k'_'_'",_'_'"
Innovation in Resources: Enter descliption here
innovation lIlWater:-i:riierdesCflpiion.here...
Points Achieved from Specific Categories
Total Points Achieved
Project Has Met All Recommended Minimum Requirements
Single-Family GreenPoint Checklist
2006 Edition
Page 4 of 4
2-tf. 0-/ /25
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. LAYPERSON'S GUIDE TO )~I
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I' THE INCLUSIONARY J!
. III /y,P
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., ZONING ORDINANCE ~
.. REGULATIONS 11
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.. APPROVED BY DUBLIN CITY COUNCIL ii
~';. ON JUNE 1, 2004 :~
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Revised in April 2005
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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 In-Lieu Fee 3
1.4 How to Calculate the Fee That May Be Paid in-lieu of Unit Construction 3
1.5 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
3 FOR SALE PROJECTS
3.1 The Marketing Plan
3.2 Applications for Ownership Units
3.3 Screening Based on Household Size
3.4 Screening Based on Priority Preferences
3.5 Buyer Selection Process
7
7
8
8
8
10
11
13
4 ESTABLISHING SALES PRICE AND LOAN REQUIREMENTS FOR
OWNERSHIP UNITS 13
4.1
Sales Price of Affordable Units
13
1
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4.2 Acceptable Home Loan Products for Inc1usionary Zoning Units 16
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 Inc1usionary Units 17
5.3 Screening Based on Household Size 17
5.4 Screening Based on Priority Preferences 18
5.5 Occupant Selection for Rental Developments 20
5.6 Calculating Affordable Rents 21
5.7 Monitoring Rents 22
11
LIST OF EXHIBITS
Exhibit 1
Resale Restriction Agreement and Option to Purchase
Exhibit 2
Sample Inc1usionary Unit Application packet
Exhibit 3
Sample Application to Purchase Inc1usionary Unit
Exhibit 4
Selection Preference Verification Letter
Exhibit 5
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
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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 12.5% 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 Cali fomi a 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 of7.5% ofthe 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
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· 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.
1 THE INCLUSIONARY ZONING PROCESS
1.1 Determinin2 the Number and Size of Units Required
Prior to submitting a pre application to the City for projects that include residential units
of 20 or more, the developer should begin thinking about how the Inc1usionary 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 ofInclusionary
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 ofthe
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 Inclusionarv Unit Obli2ation
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 0.50 is construed as a unit. Two examples of how the Inclusionary
Unit Obligation for a particular development are shown in Figure 1.
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FIGURE 1
Example 1: The developer proposes a 224-unit subdivision. 12.5% percent of224 is
28. The Inclusionary Obligation is therefore 28 units.
Example 2: The developer proposes a 316-unit subdivision. 12.5% percent of 316 is
39.5. Rounding the decimal fraction down, the Inclusionary Obligation is therefore
39 units.
1.3 How to Calculate How Manv Units Must Be Constructed and How Manv 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 1, 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 11
units, and the developer's "must-build" obligation would be 17 units. 11 + 17 = 28
units.
Example 2: The developer proposes a 316- unit subdivision, for which the
Inclusionary Obligation is 39 units. 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 Mav 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 ofthe 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 (PM SA) that are in effect at the time. The fee as of July 1,
2004 is $82,466 per Inclusionary Unit.
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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 Manv 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
Low-income households
Moderate-income households
30%
20%
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.
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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 15 units would need to be restricted for moderate-income
households, 50% of 15 = 7.5
. 20% of those 15 units would need to be restricted for low-income
households, 20% of 15 = 3
· 30% of those 15 units would need to be restricted for very low-income
households, 30% of 15 = 4.5
7.5 + 3 + 4.5 = 15
Since two of these numbers are fractions at exactly .5, the City of Dublin would require
that the unit be provided in the lower income category.
In this example the income- unit mix would be:
. 7 moderate-income units
. 3 low-income units
. 5 very low-income units
1.6 How to Determine the Unit Sizes and bedroom requirements for Inclusionarv
Units
The Regulations require that the same proportion of bedrooms be reflected in the
Inc1usionary 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 ofInc1usionary Units that must be
provided at each unit size.
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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% oftotal)
. 50 three-bedroom units (25% oftotal)
Therefore:
. 25% of the Inclusionary Units are to be one-bedrooms
. 50% 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 = 1.25 one-bedroom units
. 50% of 5 = 2.5 two-bedroom units
. 25% of 5 = 1.25 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 Inclusionarv 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.
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2 AFFORDABLE HOUSING AGREEMENT
The execution of an Affordable Housing Agreement ("Agreement") is required under
Section 8.68.50 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 Housine Aereement
This agreement contains the legal requirements of the residential project for compliance
with the Inc1usionary 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 Inc1usionary Obligation
(whether through unit construction and/or partial payment);
2. An indication of whether the Inc1usionary Units will be for-sale or rental units;
3. A requirement that the developer construct the number of Inc1usionary Units
required to be constructed in each income category;
4. A requirement that the developer construct Inc1usionary Units at particular unit
sizes (i.e., number of bedrooms) in each income category;
5. 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 whole;
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 Inc1usionary Units. This requirement is discussed in additional
detail in Section 2.2 below;
7. If the development proposes for-sale units, it is required that the developer ensure
that the purchaser of an Inc1usionary Unit execute a resale agreement. A copy of
the form resale agreement is attached as Exhibit No.1; and
8. If the development proposes rental units, the owner shall provide a Management
Plan and prepare the Annual Report required by Section 8.68.050B. The
Management Plan documents how the management firm markets the Inc1usionary
Units, how the firm maintains a waiting list for the Inc1usionary units, how the
management firm verifies the household income of applicants for the Inc1usionary
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
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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 Marketine 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:
1. 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);
3. 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. Time1ines for buyer selection. If the development is a phased project, information
must be provided on the number of phases and the time lines for those phases; and
5. 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;
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. The income levels for the various units;
. The City preferences in occupant selection as established in the Regulations
(Section 8.68.050.D);
. Any floor plans for the offered units;
. The City's "Application for lnclusionary Unit"; and
. The Disclosure Statement from the Resale Agreement.
It is important that the developer's sales staffbe 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 dependinf! on the income of each
prospective household offered a unit.
Figure 6 illustrates how the selection process works. (See following page)
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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 following closing 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 giv~n.
Step 5. 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 Screeninl! 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:
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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
3.4 Screenine 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 8.68.050.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, are permanently disabled, are an immediate family member of a Dublin resident,
and/or are being required to relocate from current Dublin residence due to demolition of
dwelling or conversion of dwelling from rental to for-sale (lpoint, one per household).
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
Employed in Dublin
Public service employee in Dublin
Resides in Dublin
Seniors (62 and over)
Permanently disabled
Have an immediate family who is a Dublin resident
& has continuously lived in Dublin the past year
Must move because housing is to be demolished or
converted to condo
Points
3 points
I additional
point
3 points
I point
1 point
I point
I 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 a one-year period prior to the eligibility determination.
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. To qualify as a relocated Dublin resident, the person shall have been relocated
from the current Dublin residence due to demolition of dwelling or conversion of
dwelling from rental to for-sale unit.
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.
. Immediate family is defined as a mother, father, brother, sister, child, grandparent
or grandchild.
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
Public Service Employee
Total number of points
3 points
1 point
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
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3.5 Buver 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:
. 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 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 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
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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. The only exception is very-low
income applicants. Units for very-low income applicants will be priced using the
maximum in the low income level adjusted for household size as total housing
expenditures.
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.
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. The only
exception is very-low income applicants. Units for very-low income applicants will be
priced using the maximum in the low income level adjusted for household size as total
housing expenditures.
· 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
downpayments. )
. 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
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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 lnclusionary 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).
FIGURE 8
This example is of a four-person household qualifying to purchase a two-bedroom unit. This
household's gross income is $89,000.
The maximum income for a four-person
moderate income household (using State HeD
2004 income limits)
Household's annual income (hypothetical)
Monthly income available for housing
expenses:
(35% of$89,000 = $31,150; $31,150 divided
by 12 = $2,595.83)
Developer wishes to sell home at:
Down Payment (for calculation of sales price
only - 5%)
Mortgage Required
Calculation:
Monthly mortgage payment (based on
$285,000, 30-year fixed at 6% interest)
Other Monthly Housing Expenses:
. Private Mortgage Insurance
· Property Tax (1.25% of sales price)
· Homeowners Insurance (based on
demonstrated market rates)
. Homeowners Association Dues
Total mouthly expenses:
$98,650
$89,000
$2,595.83
$300,000
$ 15,000
$ 285,000
$1,708.72
$ 191.43
$ 312.50
$ 166.67
$ 200.00
$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.
April 29, 2005
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4.2 Acceptable Home Loan Products for {nelusionarv Zonine: 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 a non-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.
1. 97 -100% Loan to Value Loans
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 CalHF A products available to First Time Homebuyers in
California
4.3 Closine: 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;
5. 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).
April 29, 2005
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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 on closing of each sale.
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 ofthe 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 Manal!ement 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 Establishinl! 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 2005 are attached as Exhibit
No 6.
5.3 Screeninl! 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,
April 29, 2005
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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
5.4 Screenine 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 8.68.050D.
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)
Permanently disabled
Have an immediate family who is a Dublin
resident and has continuously lived in Dublin the
past year
Must move because housing is to be demolished or 1 point
converted to condo
Definitions of the various priority categories are set forth in the Regulations, Section
8.68.050.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.
Points
3 points
I additional point
3 points
I point
1 point
I point
April 29, 2005
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. To qualify as a Dublin resident, the person shall have been a resident of the City
of Dublin for at least a one-year period prior to the eligibility determination.
. To qualify as a relocated Dublin resident, the person shall have been relocated
from the current Dublin residence due to demolition of dwelling or conversion of
dwelling from rental to for-sale unit.
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.
. Immediate family is defined as a mother, father, brother, sister, grandparent or
grandchild.
Figure 9 demonstrates how the preference points are calculated.
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
Works in Dublin
Total number of points
3 points
3 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
Public Service Employee
Total number of points
3 points
I point
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
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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 Inc1usionary Unit and return it to the management company.
Exhibit No 3 is a copy of the Application for Inc1usionarv 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 Inc1usionary
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,
www.hcd.ca.gov);
. Sort and rank the applications based on the Inc1usionary 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 lis(must be completed within 30 days ofthe 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.
April 29, 2005
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5.6 Calculatine: 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
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 1: 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 a two-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
$ 12.00
$ 2.00
$ 10.00
$ 14.00
$2,259.50
The rent that may be charge to this household could not exceed $2,259.50 monthly.
gas heating (2 bdrm)
gas cooking" "
gas water heating" "
water
* 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.
April 29, 2005
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5.7 Monitorine Rents
The Inclusionary Ordinance (Section 8.68.050.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 ofBMR 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 ofInclusionary Units during the previous year.
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:\P A#\2001\01-038 Inclusionary ZOA \Inclusionary Guidelines\Inclusionary Guidelines - Final on 4-29-05.doc
April 29, 2005
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5"11/2-VJ
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52, ~f2r:
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
CITY OF DUBLIN,
100 Civic Plaza
Dublin, California 94568
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: Positano
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.
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.
964846.2
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Form Revised May 21, 2007
Exhibit 7
53 '1 Jh~
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 expenses that do not exceed 35% of income level for very-Iow-,
low-, and moderate-income households, adjusted for household size and as defined
below. For 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 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
County, as adjusted for household size.
964846.2
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Form Revised May 21, 2007
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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, at a price not to exceed the Adjusted Resale Price, as defined in Paragraph 5,
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
VOIDABLE BY THE CITY.
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 PRIOR WRITTEN APPROVAL OF CITY.
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.
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.
b. Assignment of the Option. The City may assign the Option to another
government entity, a non-profit affordable housing provider or a person or family that
qualifies as an Eligible Household. The City's assignment of the Option shall not extend
any time limits contained herein with respect to the exercise period of the Option or the
period within which the Property must be purchased.
964846.2
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Form Revised May 21, 2007
~51 J2G
c. Events Giving Rise to Right to Exercise Option. The City shall have
the right to exercise its Option upon the occurrence of any of the following events (each, an
"Option Event"):
i. Receipt of a Notice of Intent to Transfer (defined in Paragraph
3.d.i below);
ii. Any actual, attempted or pending sale, conveyance, transfer,
lease or other attempted disposition of the Property or of any estate or interest therein,
except as provided in Paragraph 10 below;
Hi. 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 or 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;
v. Commencement of a judicial foreclosure proceeding regarding
the 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
bankruptcy statute, or any other insolvency, reorganization, arrangement, assignment for
the benefit of creditors, receivership or trusteeship, concerning the Owner; or
viii. Any violation by Owner of any provision of this Agreement
including, without limitation, the conditions set forth in Paragraph 2 above.
d. Method of Exercising the Option.
i. Notice of Intent to Transfer. If Owner desires to sell, convey,
transfer (other than pursuant to Paragraph 9 below), lease, encumber (other than pursuant
to Paragraph 10 below) or otherwise dispose of the Property or of any estate or interest
therein, no less than 45 days prior to the date of such proposed sale, conveyance, transfer,
lease, encumbrance or disposition, Owner shall notify City in writing to that effect (the
"Notice of Intent to Transfer"). The Notice of Intent to Transfer shall be in substantially the
form attached hereto as Exhibit B. In the case of a proposed sale of the Property to an
identified prospective purchaser, the Owner shall submit to the City, together with the Notice
of Intent 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, in a form approved by the 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.
964846.2
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Form Revised May 21, 2007
!Sf1~
ii. Notice of Exercise. Upon the occurrence of any Option Event,
the City may exercise its Option by delivering notice, pursuant to Paragraph 17 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; (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; (v) the proposed
purchaser's execution of a Performance Deed of Trust in the form attached hereto as
Exhibit G; and (vi) the seller's payment of the City's Affordable Home Ownership Unit Fee in
an amount to be established from time to time by the City Council and which is currently set
at $1,500 per transaction. SELLER SHALL PAY REAL ESTATE COMMISSIONS, IF ANY,
WHICH SHALL NOT 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, (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, or (iv) fails to execute and deliver to the City a Performance Deed of Trust in the
form attached hereto as Exhibit G, 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
17 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
applicable time period for exercise of the Option shall not commence to run, unless and until
964846.2
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Form Revised May 21, 2007
57112-~
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 Transfer or 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 2924(c) (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) sixty (60) 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
title insurance shall be paid pursuant to the custom and practice in the County of Alameda
964846.2
-6-
Form Revised May 21, 2007
5~ ~I~'-
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"):
964846.2
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Form Revised May 21, 2007
51 112.-
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.
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 hereunder, 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. Advances by the City. A decrease in an amount equal to the sum of all
costs advanced by the City for the payment of mortgages, taxes, assessments, insurance
premiums, homeowner's association fees and/or associated late fees, costs, penalties,
interest, attorneys' fees, pest inspections, resale inspections and other expenses related to
the Property, which Owner has failed to payor has permitted to become delinquent.
d. 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.
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 l.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
upon execution of this Agreement (see Exhibit E).
c. Subordination. The City agrees that in order to assist qualified
purchasers to secure purchase money financing for the acquisition of the Property, the City
will enter into a subordination agreement with a senior purchase money lender to
subordinate this Agreement under such terms as the City and the senior purchase money
lender shall negotiate. In the event that such a subordination agreement is required, Owner
964846.2
-8-
Form Revised May 21, 2007
(Pf) '1 J2{: -
shall pay the City a Refinance Charge Fee in an amount to be established from time to time
by the City Council and which is currently set at $200 per transaction.
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
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 a debtor-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-Iieu of foreclosure under a power of sale contained in a mortgage
or deed of trust held by an institutional lender, 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-Iieu 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, transfer or 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.
964846.2
-9-
Form Revised May 21,2007
~I 1J~-
10. Permitted Encumbrances. This Option shall not become exercisable as the
result of Owner's encumbering the Property (a) for the purpose of securing financing to
purchase the Property pursuant to the Program, (b) to refinance indebtedness incurred to
purchase the Property pursuant to the Program, provided that prior to refinancing the
Property Owner shall obtain City's approval of the refinancing pursuant to section 11 below,
which shall not be unreasonably withheld, or (c) 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 any time (the "Permitted
Encumbrance Amount") shall not exceed an amount equal to one-hundred percent (100%)
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. Refinancing; Junior Loans.
a. Initial Financing. Any prepayment and refinance of any financing used
to purchase the Property ("the Initial Financing") shall not be permitted unless expressly
approved by the City in writing, and the City may approve such refinancing only if all of the
following conditions are met:
i. the refinance reduces Owner's monthly payments of principal
and interest on the Initial Financing or shall be used to finance capital improvements
preapproved by the City ("Eligible Capital Improvements");
ii. the refinance does not cause the principal amount of all debt
secured by the Property to exceed the then outstanding balance (plus refinancing and
closing costs) of the Initial Improvements plus the cost of any Eligible Capital Improvements
that shall be made by Owner;
iii. the refinance does not result in Owner receiving any cash from
the refinance other than for Eligible Capital Improvements permitted pursuant to Paragraphs
11.a.i and 11.a.ii;
iv. the refinance does not cause the Property's loan to value ratio
(calculated by comparing the total debt secured by the Property to the Adjusted Resale
Price of the Home) to exceed the loan to value ratio for the Property at the time of initial
purchase by the Owner (calculated by comparing the total debt secured by the Property to
the Purchase Price paid by the Owner).
v. the total outstanding balance of principal and any accrued
interest on all loans secured by the Property does not exceed the Adjusted Resale Price,
calculated by the City pursuant to Paragraph 5 of this Agreement.
964846.2
-10-
Form Revised May 21,2007
62-1/~
b. Junior Loans. Mortgage loans or equity lines of credit junior in lien
priority to the Performance Deed of Trust are not permitted, except as when expressly
approved by the City in writing. The City shall only approve junior mortgage loans or equity
lines of credit as follows:
i. the loan or equity line of credit does not does not cause the
Property's loan to value ratio (calculated by comparing the total debt secured by the
Property to the Adjusted Resale Price of the Property) to exceed the loan to value ratio for
the Property at the time of initial purchase by the Owner (calculated by comparing the total
debt secured by the Property to the purchase paid by the Owner);
ii. the proceeds of such loan or equity line of credit are used only
for Eligible Capital Improvements; and
iii. the total outstanding balance of principal and any accrued
interest on all loans secured by the Property does not exceed the Adjusted Resale Price,
calculated by the City pursuant to Paragraph 5 of this Agreement.
c. Eligible Capital Improvements. In the event (i) the Owner refinances
the Initial Financing in accordance with Paragraph 11.a, or (ii) the Owner borrows a junior
loan or takes an equity line of credit in accordance with Paragraph 11.b, and the funds from
such refinance, loan, or line of credit shall be used for Eligible Capital Improvements, Owner
shall provide evidence to City, in a form acceptable to City in its sole and absolute
discretion, that any amount of funds received by Owner for such Eligible Capital
Improvements shall be and are used for the construction of such Eligible Capital
Improvements.
d. Affordable Housing Cost; Subordination. The City and the Owner
agree that the requirements of this Paragraph 11 are necessary to ensure the continued
affordability of the Property to Owner and to minimize the risk of loss of the Property by
Owner through default and foreclosure of mortgage loans. Owner further acknowledges
that violation of the provisions of this Paragraph 11 shall constitute a Default under this
Agreement. In no case shall this Agreement and the Performance Deed of Trust be in
lower than third lien position on the Property. Any subordination agreement to be executed
by City shall include notice and cure rights for City regarding any defaults in the mortgage to
which the City is subordinating.
12. Obligation of Owner After Option Abandonment. If the City records a notice
of abandonment of the Option, 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.
13. 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
964846.2
-11-
Form Revised May 21, 2007
03 ':f tl-t
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.
14. 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 proceeds thereof 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:. 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 of condemnation
valuation date shall be distributed to Owner, and the balance of such surplus, if any, shall
be distributed to the City.
15. Effective Date. The rights and obligations of the City and Owner set forth in
this Agreement shall be effective as of the Effective Date.
16. Term of Agreement and Option. The restrictions contained herein and the
City's option to purchase the Property shall continue in perpetuity commencing on the
Effective Date.
17. 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 Plaza
Dublin, California 94568
Attn: City Manager
Owner:
At the address of the Property
964846.2
-12-
Form Revised May 21 , 2007
b'~'12~
18. Remedies Upon Breach.
a. Specific Performance. Owner ac nowledges that any breach in the
performance of its obligations under this Agreement hall cause irreparable harm to the
City. Owner agrees that the City is entitled to equita Ie relief in the form of specific
performance upon its exercise of the Option, and tha an award of damages shall not be
adequate to compensate the City for Owner's failure 0 perform according to the terms of
this Agreement.
b. Other Remedies. City shall have II of the remedies provided for at law
or equity.
19. General Provisions.
a. Attorneys' Fees. If either party ini iates legal proceedings to interpret or
enforce its rights under this Agreement, the prevailin party in such action shall be entitled
to an award of reasonable attorneys' fees and costs i additions to any other recovery to
which it is entitled under this Agreement.
b. No Joint Venture; No Third-Party eneficiary. No joint venture or other
partnership exists or is created between the Parties virtue of this Agreement. Except as
expressly stated herein, this Agreement does not be efit any third party.
c. Successors; Assignment. This A reement shall inure to the benefit of
and shall be binding upon the Parties to this Agreem nt and their respective heirs,
executors, administrators, successors and assigns. ity shall have the right to assign all of
its rights and obligations under this Agreement witho t the consent of Owner.
d. Entire Agreement; Amendment. his Agreement constitutes the entire
agreement of the Parties with respect to the subject atter hereof, and supersedes any and
all other prior negotiations, correspondence, underst ndings and agreements with respect
thereto. There are no representations, promises, agr ements or other understandings
between the Parties relating to the subject matter of t is 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 ter s, provisions, representations,
warranties and covenants of the Parties under this A reement shall survive the close of
escrow of any sale of the Property and shall not be m rged in any deed transferring the
Property.
f. Authority And Execution. Each P rty 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
964846.2
-13-
Form Revised May 21, 2007
~5 ~ /2' '
remaining terms and provisions hereof shall 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.
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,
and 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.
[EXECUTION PAGE FOLLOWS]
964846.2
-14-
Form Revised May 21, 2007
bG1 J~~
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed as of the date first written above.
OWNER(S):
CITY:
CITY OF DUBLIN
Richard Ambrose, City Manager
ATTEST:
City Clerk
964846.2
-15-
Form Revised May 21, 2007
f7 ~ IUP
STATE OF CALIFORNIA
COUNTY OF
)
)
)
On before me,
in and for said county and state, personally appeared
, 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)
STATE OF CALIFORNIA
COUNTY OF
)
)
)
On before me,
in and for said county and state, personally appeared
, 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)
964846.1
Form Revised May 7,2007
G~ j 126
!
STATE OF CALIFORNIA
COUNTY OF
)
)
)
On before me,
in and for said county and state, personally appeared
, 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)
964846.1
Form Revised May 7, 2007
69 ;j I ~
CERTIFICATE OF ACCEPTANCE
(Pursuant to Government Code 927281)
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
964846.1
Form Revised May 7, 2007
70 ~ 12V
EXHIBIT A
LEGAL DESCRIPTION
964846.1
Form Revised May 7,2007
7f 1/2~-
EXHIBIT B
FORM: NOTICE OF INTENT TO TRANSFER
VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED
To: City of Dublin
100 Civic Center
Dublin, California 94568
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 give(s) 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 L>
[If applicable: The proposed transfer of the Property is to the following person(s):
Name:
Address:
Telephone: <-)
The proposed transfer is (check one):
o Sale
o
Other
Specify:
Owner(s) signature(s):
964846.1
Form Revised May 7, 2007
Il~ I~
EXHIBIT C
FORM: NOTICE OF EXERCISE
Date:
To:
Owner or Transferee
Address
Re: Notice of Exercise
The City of Dublin ("City") hereby gives notice that it is exercising its option to
purchase the real property located at , Dublin,
California. The option has been granted to the City pursuant to the Resale Restriction
Agreement and Option to Purchase between Owner and the City dated
and recorded on as Instrument No.
City has assigned its option to purchase the real property to
escrow for the purchase will be opened with the First American Title Company.
. [The
.] An
City of Dublin
By:
Its:
964846.1
Form Revised May 7, 2007
~3 ~..11.~ ~
EXHIBIT D
INCLUSIONARY ZONING BASE RESALE PRICE WORKSHEET
Date:
Owner:
Address:
Purchase Price:
Date of Purchase:
Years Owned:
years
CALCULATION BASED ON INCREASE IN MEDIAN INCOME***
Present Median Income: $
Family of four, County of Alameda
(at time of sale of unit)
Effective Date:
Effective Date:
Original Median Income: $
Family of four, County of Alameda
(at time of purchase of unit)
Amount of Increase:
Family of four, County of Alameda
(Present median income minus original median
income)
Increase in Price:
x
x
=
Method #1 Resale Price:
+
=
I Based on the above, the base resale price as of this d~te,
, is:
By:
964846.1
Form Revised May 7, 2007
71t f 12(.
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
, as Trustor, in which
is named as Beneficiary, and
, as Trustee, be mailed to the City of Dublin,
, Attn:
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
On before me,
said county and state, personally appeared
, a Notary Public in and for
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)
964846.1
Form Revised May 7, 2007
,t c;f ru
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 UNIT 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 OF THE CITY OF DUBLIN.
YOU SHOULD 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.
YOU SHOULD ALSO BE AWARE THAT A PERFORMANCE DEED OF TRUST WILL BE
RECORDED AGAINST THE PROPERTY TO ENSURE COMPLIANCE WITH THE
RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE. 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
790277.2
Form Revised May 7,2007
7~ 112.G-
EXHIBIT G
FORM: PERFORMANCE DEED OF TRUST
790277.2
Form Revised May 7, 2007
77 ~ /2-,'
RECORDING REQUESTED BY:
CITY OF DUBLIN
When Recorded Mail To:
City Clerk
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Fee Waived per GC 27383
Space above this line for Recorder's use
SECONDARY UNIT REGUL TORY AGREEMENT AND
DECLARATION OF RES RICTIVE COVENANTS
Owner:
Property Address:
Dublin, C lifornia
Name of Development: Posi ano
This Secondary Unit Regulatory Agre ment and Declaration of Restrictive
Covenants (this "Agreement") is entered int effective as of
("Effective Date") by and between the City 0 Dublin, a public body, corporate and
politic ("City") and
(the "Owner"). City and Owner are hereinaft r collectively referred to as the "Parties."
A. Owner is the owner of certain r al property that contains a secondary
dwelling unit, which is located in the City of ublin, County of Alameda, State of
California and more particularly described in xhibit A attached hereto and
incorporated herein by reference (the "Prop rty"). The Property is located within a
residential development project area (the "Pr ject") that was subject to the City's
Inclusionary Zoning Regulations (Chapter 8. 8 of the Dublin Municipal Code), which
requires that developments consisting of 20 r more residential units must include a
specified percentage of units that are subjec to affordability restrictions set forth in a
binding agreement recorded against the pro erty.
Secondary Unit Regulatory Agreement
Second Unit Regulatory Agreement 5.07.07.DOC
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Page 1 of 10
Exhibit 8
~B 1!U
B. The developer of the Project chose to satisfy its obligations through among
other things the construction of 13 secondary units on some of the residential lots in the
Project, including on the Property, and requiring the purchasers to enter into regulatory
agreements restricting the rents charges for the secondary units to affordable rents, in
accordance with the Inclusionary Zoning Regulations.
C. The Parties have agreed to enter into and record this Agreement in order
to satisfy the requirements described in the foregoing Recitals. The purpose of this
Agreement is to regulate and restrict the occupancy and rents of the Property's
Restricted Unit (defined below) for the benefit of the occupants. The covenants in this
Agreement are intended to run with the land and be binding on Owner and its
successors and assigns for the full term of this Agreement.
NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the Parties hereby agree as follows:
1. Definitions. The following terms have the meanings set forth in this Section
wherever used in this Agreement or the attached exhibits.
"Applicable Income level" means the annual gross income level specified
below:
D Very-low income: 50% or less of Area Median Income.
D Low-income: 50% to 80% of Area Median Income.
o Moderate-income: 80% to 120% of Area Median Income.
"Area Median Income" or "AMI" means the area median income for Alameda
County, California, adjusted for household size, published periodically by the California
Department of Housing and Community Development ("HCD") in Section 6932 of Title
25 of the California Code of Regulations ("Regulations") or successor provision
published.
"Eligible Household" means a household whose gross income does not exceed
the Applicable Income Level and that is otherwise eligible to rent a Restricted Unit.
"Qualifying Rent" means a monthly rent which does not exceed one-twelfth of
thirty percent (30%) of the Applicable Income Level adjusted for household size, less a
utility allowance as specified by the Housing Authority of Alameda County.
"Restricted Unit" means the secondary dwelling unit on the Property that is
depicted in Exhibit B and that is reserved for occupancy at a Qualifying Rent in
accordance with and as set forth in Section 2.
2. Use and Affordabilitv Restrictions. Owner represents and warrants that it has not
entered into any agreement that would restrict or compromise its ability to comply with
Secondary Unit Regulatory Agreement
Second Unit Regulatory Agreement 5.07.07.DOC
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Page 2 of 10
7q '1 /~
the occupancy and affordability restrictions set forth in this Agreement, and Owner
covenants that it shall not enter into any agreement that is inconsistent with such
restrictions without the express written consent of City.
2.1 Affordabilitv Requirements. The Restricted Unit, if it is rented, shall be
rented at not more than Qualifying Rent and occupied by Eligible Households. Owner
shall ensure that language is contained in all leases and contracts with tenants
executed by Owner that prohibits subleasing of the Restricted Unit.
2.2 Rents for Restricted Units. Rent charged to, and paid by, a tenant for
Restricted Units shall be not more than Qualifying Rent. Notwithstanding the foregoing,
no tenant qualifying for a Restricted Unit shall be denied continued occupancy of the
Restricted Unit because, after admission, such tenant's adjusted income increases to
exceed the qualifying limit for such Restricted Unit.
2.3 Non-Discrimination; Compliance with Fair Housinq Laws. Owner shall not
discriminate against persons or groups of persons on account of race, color, religion,
creed, sex, sexual orientation, marital status, familial status, ancestry or national origin
in the lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property,
nor shall Owner or any person claiming under or through Owner establish or permit any
such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the Property. Owner shall each ensure that language
prohibiting such discrimination shall be included in all deeds, leases and contracts
executed by Owner or its successors and assigns with respect to the Property. Owner
shall comply with state and federal fair housing laws in the marketing and rental of the
units in the Property.
3. Reportinq Requirements.
3.1 Tenant Verification. Owner or its authorized agent shall obtain from each
household prior to initial occupancy of each Restricted Unit, and on every anniversary
thereafter, written documentation verifying each tenant's eligibility containing all of the
following, including additional documentation as City may reasonably require
(collectively hereinafter "Written Verification"):
(a) Number of people in the household; and
(b) Total household income.
Owner or its authorized agent shall retain Written Verification for not less than three (3)
years, and upon City's request, shall make the Written Verification available for
inspection by City and shall provide copies of the Written Verification to City. Owner or
its authorized agent may require each Eligible Household to certify the Written
Verification.
3.2 Annual Report; Inspections. Owner shall submit an annual report
("Annual Report") to the City in conformity with the requirements of Section 8.68.050.8
Secondary Unit Regulatory Agreement
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Page 3 of 10
'So 1 )2'"
of the Inclusionary Zoning Regulations, together with a certification that the Property is
in compliance with the requirements of this Agreement. The Annual Report shall, at a
minimum, include the following information: (i) identification of the Restricted Unit by
address; (ii) the monthly rents charged and proposed to be charged; (v) the number of
people residing in the unit; and (vi) the total household income of residents. Upon City's
request, Owner shall include with the Annual Report, a copy of the Written Verification
Owner obtained pursuant to Section 3.1 above, and such additional information as City
may reasonably request from time to time in order to show compliance with this
Agreement. Owner shall permit representatives of City to enter and inspect the
Property during reasonable business hours in order to monitor compliance with this
Agreement upon 24 hours advance notice of such visit to Owner.
4. Term of AQreement.
4.1 Term of Restrictions. This Agreement shall remain in effect in perpetuity.
4.2 Effectiveness Succeeds Conveyance of Property. This Agreement shall
remain effective and fully binding for the full term hereof regardless of any sale,
assignment, transfer, or conveyance of the Property, unless this Agreement is
terminated earlier by City in a recorded writing.
4.3 Reconveyance. Upon the termination of this Agreement, the Parties
agree to execute and record appropriate instruments to release and discharge the terms
of this Agreement; provided, however, the execution and recordation of such
instruments shall not be necessary or a prerequisite to the termination of this
Agreement in accordance with its terms.
5. BindinQ Upon Successors: Covenants to Run with the Land. Owner hereby
subjects its interest in the Property to the covenants and restrictions set forth in this
Agreement. The City and Owner hereby declare their express intent that the covenants
and restrictions set forth herein shall be deemed covenants running with the land and
shall be binding upon and inure to the benefit of the heirs, administrators, executors,
successors in interest, transferees, and assigns of Owner and City, regardless of any
sale, assignment, conveyance or transfer of the Property or any part thereof or interest
therein. Each reference in this Agreement to a specifically named party shall be
deemed to mean a reference to the successor of each such Party. Any successor-in-
interest to Owner, including without limitation any purchaser, transferee or lessee of the
Property (other than the tenants of the individual dwelling units within the Property) 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 any part thereof, shall conclusively be held to have been
executed, delivered and accepted subject to the covenants, restrictions, duties and
obligations set forth herein, regardless of whether such covenants, restrictions, duties
and obligations are set forth in such contract, deed, ground lease or other instrument. If
any such contract, deed, ground lease or other instrument has been executed prior to
the date hereof, Owner hereby covenants to obtain and deliver to City an instrument in
recordable form signed by the parties to such contract, deed, ground lease or other
Secondary Unit Regulatory Agreement
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Page 4 of 10
g I 1/~"
instrument pursuant to which such parties acknowledge and accept this Agreement and
agree to be bound hereby.
Owner agrees for itself and for its successors 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.
6. Property Manaqement; Repair and Maintenance; Marketinq.
6.1 Manaqement Responsibilities. Owner shall be responsible for all
management functions with respect to the Property, including without limitation the
selection of tenants, certification and recertification of household income and eligibility,
evictions, collection of rents and deposits, maintenance, landscaping, routine and
extraordinary repairs, replacement of capital items, and security. Except as City may
otherwise agree in writing, City shall have no responsibility for management or
maintenance of the Property. The contracting of management services to a
management entity shall not relieve Owner of its primary responsibility for proper
performance of management duties.
6.2 Intentionally Omitted.
6.3 Repair. Maintenance and Security. Throughout the term of this
Agreement, Owner shall at its own expense, maintain the Property in good physical
condition, in good repair, and in decent, safe, sanitary, habitable and tenantable living
conditions in conformity with all applicable state, federal, and local laws, ordinances,
codes, and regulations. Without limiting the foregoing, Owner agrees to maintain the
Property (including without limitation, the residential units, common areas, landscaping,
driveways and walkways) in a condition free of all waste, nuisance, debris,
unmaintained landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal
activity, and shall take all reasonable steps to prevent the same from occurring on the
Property. Owner shall prevent and/or rectify any physical deterioration of the Property
and shall make all repairs, renewals and replacements necessary to keep the Property
and the improvements located thereon in good condition and repair.
6.4 Intentionally omitted.
6.5 Intentionally omitted.
6.6 Intentionally omitted.
6.7 Intentionally omitted.
6.8 Property Damaqe or Destruction. If any part of the Property is damaged
or destroyed, Owner shall repair or restore the same as soon as practicable, consistent
with the occupancy and rent restriction requirements set forth in this Agreement.
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g).- ~ /2?
7. Recordation; No Subordination. This Agreement shall be recorded in the Official
Records of Alameda County. Owner hereby represents, warrants and covenants that
with the exception of easements and restrictions of record, 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), encumbrance, or other interest in the Property. If
at the time this Agreement is recorded, any interest, lien, or encumbrance has been
recorded against the Property in position superior to this Agreement, upon the request
of City, Owner hereby covenants and agrees to promptly undertake all action necessary
to clear such matter from title or to subordinate such interest to this Agreement
consistent with the intent of and in accordance with this Section, and to provide such
evidence thereof as City may reasonably request.
8. Transfer and Encumbrance.
8.1 Restrictions on Transfer. During the term of this Agreement, except as
permitted pursuant to this Agreement, Owner shall not make or permit the occurrence of
any conveyance, sale or lease (except as to individual dwelling units) of the Property
without the prior written consent of the City; provided however City shall not withhold its
consent to the sale, transfer or other disposition of the Property, in whole or in part,
provided that (i) the transferee expressly assumes all obligations of Owner imposed by
this Agreement; (ii) the transferee executes all documents reasonably requested by the
City with respect to the assumption of the Owner's obligations under this Agreement;
and (iii) the Owner has paid the City a Affordable Home Ownership Fee to cover the
City's costs associated with the transaction. The amount of the Affordable Home
Ownership Fee is currently $1,500 per transaction, and the applicable amount shall be
as established from time to time by the City Council
8.2 Encumbrances. Owner agrees to use best efforts to ensure that any deed
of trust secured by the Property shall contain each of the following provisions: (i) the
holder of such deed of trust shall use its best efforts to provide to City a copy of any
notice of default issued to Owner concurrently with provision of such notice to Owner
(provided however, the failure to do so shall not impair such holder's rights and
remedies); and (ii) City shall have the reasonable right, but not the obligation, to cure
any default by Owner within the same period of time provided to Owner for such cure,
extended by an additional thirty (30) days.
8.3 MortQaQee 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 Property, and the purchaser at any 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 Property that such violation has occurred.
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8~ 11210
9. Default and Remedies.
9.1 Events of Default. Owner's failure to cure any default in performance of
Owner's obligations under this Agreement within thirty (30) days following City's delivery
of a notice of default shall constitute an Event of Default hereunder and shall entitle the
City to proceed with any of the remedies described below. Notwithstanding the
foregoing, if the default is such that it is not reasonably capable of being cured within
thirty (30) days, an Event of Default shall not arise hereunder if Owner commences to
cure the default within 30 days and thereafter prosecutes the curing of such default to
completion with due diligence and in good faith, but in no event later than ninety (90)
days after receipt of City's notice of default or such longer period as City may agree to
in writing.
(a) Bring an action for equitable relief seeking the specific performance
of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing
any violation of such terms and conditions, and/or seeking declaratory relief;
(b) For violations of obligations with respect to rents for Restricted
Units, impose as liquidated damages a charge in an amount equal to the actual amount
collected in excess of the Qualifying Rent;
(c) Pursue any other remedy allowed at law or in equity.
9.2 Remedies Cumulative. Each of the remedies provided herein is
cumulative and not exclusive. The City may exercise from time to time any rights and
remedies available to it under applicable law or in equity, in addition to, and not in lieu
of, any rights and remedies expressly provided in this Agreement.
10. Indemnification. Owner shall defend (with counsel approved by City), indemnify
and hold the City and its officials, officers, directors, employees, and agents
(collectively, the "Indemnified Parties") harmless from and against any and all losses,
damages, liabilities, claims, demands, judgments, actions, court costs, and legal or
other expenses (including reasonable attorneys' fees) arising from or in connection with
or in any way related to: (i) Owner's performance or failure to perform any obligation
required by this Agreement; or (ii) any act or omission by Owner, or any of Owner's
contractors, subcontractors, agents, employees, licensees or suppliers related to the
Property, except to the extent arising from the gross negligence or willful misconduct of
such Indemnified Party. The provisions of this Section shall survive the expiration or
earlier termination of this Agreement.
11. Miscellaneous.
11.1 Amendments. This Agreement may be amended or modified only by a
written instrument signed by both Parties.
11.2 No Waiver. Any waiver by City of any term or provision of this Agreement
must be in writing. No waiver shall be implied from any delay or failure by City to take
action on any breach or default hereunder or to pursue any remedy allowed under this
Secondary Unit Regulatory Agreement
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84 r:I g, .
Agreement or applicable law. No failure or delay by City at any time to require strict
performance by Owner of any provision of this Agreement or to exercise any election
contained herein or any right, power or remedy hereunder shall be construed as a
waiver of any other provision or any succeeding breach of the same or any other
provision hereof or a relinquishment for the future of such election.
11.3 Notices. Except as otherwise specified herein, 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 parties in accordance with this
Section. All such notices shall be sent by:
(a) personal delivery, in which case notice is effective upon delivery;
(b) certified or registered mail, return receipt requested, in which case
notice shall be deemed delivered upon receipt if delivery is confirmed by a return
receipt;
(c) nationally recognized overnight courier, with charges prepaid or
charged to the sender's account, in which case notice is effective on delivery if delivery
is confirmed by the delivery service;
(d) facsimile transmission, in which case notice shall be deemed
delivered upon transmittal, provided that (a) a duplicate copy of the notice is promptly
delivered by first-class or certified mail or by overnight delivery, or (b) a transmission
report is generated reflecting the accurate transmission thereof. Any notice given by
facsimile shall be considered to have been received on the next business day if it is
received after 5:00 p.m. recipient's time or on a nonbusiness day.
City:
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Attention: City Manager
Facsimile: (925) 833-6651
Owner:
At the address of the property
11.4 Further Assurances. The Parties shall execute, acknowledge and deliver
to the other such other documents and instruments, and take such other actions, as
either shall reasonably request as may be necessary to carry out the intent of this
Agreement.
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[;6 ~ ):;.,'
11.5 Parties Not Co-Venturers. Nothing in this Agreement is intended to or
shall establish the Parties as partners, co-venturers, or principal and agent with one
another.
11.6 Action by the City. Except as may be otherwise specifically provided
herein, whenever any approval, notice, direction, consent or request by the City is
required or permitted under this Agreement, such action shall be in writing, and such
action may be given, made or taken by the City Manager or by any person who shall
have been designated by the City Manager, without further approval by the City Council.
11.7 Non-Liability of City and City Officials. Employees and Aqents. No
member, official, employee or agent of the City shall be personally liable to Owner or
any successor in interest, in the event of any default or breach by the City, or for any
amount of money which may become due to Owner or its successor or for any
obligation of City under this Agreement.
11.8 Headinqs; Construction. The headings of the sections and paragraphs of
this Agreement are for convenience only and shall not be used to interpret this
Agreement. The language of this Agreement shall be construed as a whole according
to its fair meaning and not strictly for or against any Party.
11.9 Time is of the Essence. Time is of the essence in the performance of this
Agreement.
11.10 Governinq Law. This Agreement shall be construed in accordance with
the laws of the State of California without regard to principles of conflicts of law.
11.11 Attorneys' Fees and Costs. If any 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.
11.12 Severability. 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.
11.13 Entire Aqreement; Exhibits. This Agreement contains the entire
agreement of Parties with respect to the subject matter hereof, and supersedes all prior
oral or written agreements between the Parties with respect thereto. The exhibits
attached hereto are incorporated herein by this reference.
11.14 Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be an original and all of which together shall constitute one
agreement.
SIGNA TURES ON FOLLOWING PAGE.
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g,(, 112~
IN WITNESS WHEREOF, the Parties have executed this Agreement effective as
of the date first written above.
OWNER
CITY OF DUBLIN
By:
Richard C. Ambrose
City Manager
Attest:
Kay Keck
Interim City Clerk
Approved as to form:
Elizabeth H. Silver
City Attorney
SIGNA TURES MUST BE NOTARIZED.
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Exhibit A
PROPERTY DESCRIPTION
(Attach legal description.)
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CITY OF DUBLIN. 100 CIVIC PLAZA. DUBLIN. CA 94568
Owner Name:
Location of Property:
Daytime Phone Number:
Your second unit is designated to be rented to a
Very Low Low Moderate income household.
The maximum rent that can be charged for the second units is $
***************************************************************************************
1. Is the second unit being rented at this time?
YES NO
2. What is the current rent being charged? (Attach copy of most recent rent check) $
3. Current household size of second unit? (circle one): 1 2 3 4 people.
4. Total annual household income of second unit?
$
I understand that there are restrictions on my property and in choose to sell or refinance this coming year, I
must first contact the City of Dublin Housing Staff at (925) 833-6610.
If I choose to sell the property. a City Administration fee of $1.500 will be assessed to the seller at the
time of sale of the unit. In addition. if the City is asked to subordinate. a $200 fee will be assessed for
document preparation.
In affixing my/our signature/s below, I/We affirm that all information provided in this form is true and
correct. I/We understand that if any information is falsely reported, the City of Dublin may take legal action
against me/us.
Signature of owner
PRINT NAME
date
Signature of owner
PRINT NAME
date
HAVE YOU FILLED OUT THE TOP PART OF THIS FORM??
Exhibit C
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STATE OF CALIFORNIA )
)
COUNTY OF ALAMEDA )
On ,20_ before me,
Notary Public, the undersigned, personally appeared
(
(
)
)
personally known to me
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
CV/':( }~(~
RECORDING REQUESTED BY:
CITY OF DUBLIN
When Recorded Mail To:
City Clerk
City of Dublin
100 Civic Plaza
Dublin, CA 94568.
Fee Waived per GC 27383
Space above this line for Recorder's use
MEMORANDUM OF AFFORDABLE HOUSING AGREEMENT
FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES
IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS
Dublin RE Investors, a California limited liability company.
First Phase (247 Residential Lots) of the Fallon Village Project
This Memorandum of Affordable Housing Agreement for the Construction of
Inclusionary Units and the Payment of Fees In-Lieu of Constructing Inclusionary Units (this
"Memorandum") is entered into on this _ day of _, 2007, by and between the City of
Dublin, a Municipal Corporation (hereafter "City") and Dublin RE Investors, L.L.C., a
California limited liability company, ("the Developer")
1. Pursuant to the Affordable Housing Agreement for the Construction of
Inclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units,
dated as of _ _, 2007 by and between City and Developer (the "Agreement"), the Parties
have set forth their respective obligations with respect to the provision of affordable units on
lands presently owned by Developer known generally as the Fallon Village Project and more
specifically described in Exhibit A (the "Property"). These obligations run with the land.
2.. The Agreement sets out the specific obligations for the construction of
Inclusionary Units and payment of fees in lieu thereof in conjunction with the initial 247-
residential parcel phase of the development of the Property ("the First Phase"). It also obligates
the Developer to make a Community Benefit Payment, as described in the Agreement, prior to
issuance of building permits for each residential unit. Development on, and the City's approval
of subsequent final maps that include, any portion of the Property beyond the First Phase shall
require either an amendment to this Agreement or a subsequent affordable housing agreement
("the Subsequent Agreement") setting forth the manner in which the Regulations will be
complied with for the remainder of the Project. The Agreement also contains the Developer's
covenant, on behalf of itself, and its successors and assigns, that it will not assert the provisions
of Government Code section 66458 to require the City to approve additional phased final maps
Exhibit 9
~~~ Iz:~ '
(beyond those for the creation of the 247 residential parcels in the First Phase) until such time as
it has entered into the Subsequent Agreement.
3. Developer and City have executed and recorded this instrument to give notice of
the Agreement, and the respective rights and obligations of Developer and City. The
unrecorded Affordable Housing Agreement for the Construction of Inc1usionary Units and
Payment of Fees in Lieu of Constructing Inclusionary Housing Units is incorporated by
reference in its entirety in this Memorandum.
4. This Memorandum shall b;nd and inure to the benefit of the parties and their
respective heirs, successors and assigns, subject however to restrictions set forth in the
Agreement regarding assignment.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the date and year first above written.
CITY OF DUBLIN
Dated:
By:
Richard C. Ambrose, City Manager
Attest:
, City Clerk
Dated:
DUBLIN RE INVESTORS, LLC
By: Braddock and Logan Services, Inc.
a California corporation
Its Manager:
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** Applicant's Signature shall be notarized prior to returning signed agreement to the City
of Dublin Community Development Department.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
~.
State of California
County of 6.bN'1''I!-r\
On 5/~/o-'
Date
~f..TA
E. E:Jr.l3 ~ is
10B.i...../c..
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personally appeared
before me,
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Name and Title 01 Officer ( .
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Name(s) of Signer(s)
h/persOnallY known to me
.-...................---...-...-...-.
. NANCY E. EMBREY ~
Commission # 1578043
Notary Public .. California f
Contra Costa County -
My Comm. Expires Jun 8, 2009
o (or proved to me on the basis of satisfactory evidence)
to be the person~) whose name($) is/afe subscribed to the
within instrument and acknowledged to me that
he/1M II '1R&Y executed the same in hi~ir authorized
capacity~), and that by his/t.:lel'.,'tl,,:,;, signature'(ot) on the
instrument the person(\(}, or the entity upon behalf of
which the person("!!jf acted, executed the instrument.
WITNESS my hand and official seal.
Y;b~CJ- L~
OPTIONAL ~
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent r~~achment of this form to ~ther document. /-f UA ,I . 1+l.'i/YJo '-J-..
Description of Attached Document, ~i?'\./ c1J ~(&-z~ 0 ~ d~''''
Title or Type of Document: ~a.J 4"'" "d20..~ - ~:A.,.r'\- f~ - ~+o ~ W)u..b..-Q.',,-
Document Date: Number of Pages:
Place Notary Seal Above
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
D Individual
D Corporate Officer - Title(s):
D Partner - D Limited D General
D Attorney in Fact
D Trustee
D Guardian or Conservator
D Other:
Top of thumb here
Signer's Name:
D Individual
D Corporate Officer - Title(s):
D Partner - D Limited D General
D Attorney in Fact
D Trustee
D Guardian or Conservator
D Other:
RIGHT THUMBPRINT
OF SIGNER
Top of thumb here
RIGHT THUMBPRINT
OF SIGNER
Signer Is Representing:
Signer Is Representing:
~.~~~.
@2006 National Notary Association' 9350 De Soto Ave., P.O. Box 2402 . Chatsworth, CA 91313-2402 Item No. 5907 Reorder: Call TolI.Free 1-800.876-6827
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Braddock & Logan
Properties at Fallon Village
VICINITY MAP
October 2004
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q~ f4.") 26
CITY CLERK
File # D~ceJ[Q]-~~
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: October 18,2005
SUBJECT:
ATTACHMENTS:
RECOMMENDATION:.,/"' 1.
r'V i:
4.
FINANCIAL STATEMENT:
Braddock and Logan Affordable Housing Proposal to Comply with
Inclusionary Zoning Regulations for the Braddock and Logan
development at Fallon ViJIage
Report Prepared by Julia Abdala/Housing Specialist
1.
2.
3.
Braddock and Logan Affordable Housing Proposal
Proposed Stage 1 Development Map
Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning
Regulations)
Receive Staff Presentation
Hear Public Testimony
Deliberate
Direct Staff to:
(a) Inform Braddock & Logan that the Council will not
waive the requirements of the Inclusionary Zoning
Regulations required by the proposal; OR
(b) By consensus, direct Staff to work with Braddock &
Logan to refine the proposal including, in particular, the
timing of construction of: and security for, the proposed
affordable units.
No fiscal impact at this time.
DESCRIPTION:
The eleven property owners of the Fallon Village area have submitted a request for a Stage 1
Development Plan. At the same time Braddock and Logan has submitted a request for a Stage 2
Development Plan and a Vesting Tentative Map for the Braddock and Logan property, consisting of the
northernmost 486 acres of Fallon Village. (See Attachment 2) The Stage 2 submittal is for the creation of
1,043 single-family units at this site.
COPY TO:
--~._----------------------------~-__________M_...__________________________________________________________
Page 1 of7
G:\PA#\2005\05-038 B&L Stage 2 FallolI Village\CCSR 10-1-05 B&L Housing Proposa1.l;)OC
Attachment 3
Approval ora Stage 2 Development Plan and Vesting Tentative Map will trigger the requirements ;~~J26
City ofDubJin Jnclusionary Zoning Regulations, Chapter 8.68 ofthe Zoning Ordinance (Attachment 4),
Chapter 8.68's stated purpose is to enhance the public welfare and assure further housing development
contributes to the attainment ofthe City's housing goals by increasing production of affordable units, and
to assure that the limited remaining developable land is utilized in a manner consistent with the City's
housing policies and needs. (Section 8.68.010.)
The ordinance requires developers constructing residential units in the City to provide 12.5% ofthe
development as affordable housing. The Inclusionary Zoning Regulations break down the affordable
requirements to production of 50% of the affordable units for moderate-income households, 20% of the
units for low-income households. and 30% of the units for very low-income households as defined for the
County of Alameda by the State of California Housing and Community Development Department. The
Tnc1usionary Regulations further treat the development oruror saleH housing and rental housing similarly,
with the same affordable unit requirement and the same income level breakdown.
The Inclusionary Zoning Regulations provide that the affordable units - both rentals and "for sale" Wlits --
reflect the range of the number of bedrooms as the market rate development and not be distinguished by
exterior design or materia.ls. The affordable units ma.y, however, be smaller in size and may have fewer
amenities. Finally, the affordable units are to be dispersed throughout the development (Section
8.68.030.E).
The Zoning Regulations state that an applicant may fulfill the Inclusionary affordable housing requirement
by constructing the affordable units off-site ifthe City Council makes the following five findings:
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 low-, low-
and moderate-income households.
2. that the units to be constructed off-site arc consistent with Section 8.68.030.E (same range and
number of bedrooms as provided in the project as a whole, consistent in design, construction
and material and are reasonably dispersed throughout the project).
3. that it would be infeasible or impractical to construct affordable units on-site.
4. that conditions of approval for the project requi.te 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 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 ofthe construction ofthe residential development or within a
reasonable period (not to exceed 5 years).
The fuclusionary Zoning Regulations provide the City Council the option to waive the requirements of
the regulations. Section 8.68.040.E states 'The City Council, at its discretion, may waive, wholly ~r
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 alternative methods meet
the purpose ofthis Chapter." .
Page 2 of7
ANALYSIS:
q71/~
Braddock and Logan has presented a proposal to provide the number of allbrdahlc units required for
the construction of 1043 single-family units at the 486-acre property they currently own (See
Attachment 1). Per the Inclusionary Zoning Regulations a development of 1043 units would require
130 affordable units. The ordinance allows a developer to pay fees in lieu of constructing 40% of the
required affordable units, which equates to 5% ofthe total units. Braddock & Logan could, thus, pay
fees for 52 units which are currently $84,198 for each unit not constructed. This would produce an in
lieu fee total of $4,390,925.70, Braddock and Logan's proposal is to build a1l130 affordable units
required for the 486-acre property they currently own.
The proposal is not consistent with the requirements of the Inclusionary Zoning Regulations in several
ways. Because ofthese differences Staffis presenting the proposal and requesting direction from the
City Council.
Summary of Proposal:
The proposal presented by Braddock and Logan involves two parcels. The fIrst is the 486-acre
property which is the subject of the Stage 2 Development Plan and Vesting Tentative Map and would
include 1043 units. The second property is the Anderson Property (See Attachment 2), which is
proposed to be designated multi-family medium density. Braddock & Logan does not own the
Anderson property at this time.
The proposal is to construct 88 units on the Anderson Property; 78 would he off-site affordable units
for the 486-acre Fallon Villages property, 9 would satisfy the lnclusionary ordinance requirement for
the 78 units on the Anderson property and one would be a manager's unit. The total number of
affordable units Braddock and Logan proposes to construct would he 139 units between the two sites.
The proposal is as follows:
I. 26 Integrated Units. 26 affordable units for sale would be built on 4,000 square foot lots of Fallon
Village. These would be identical in appearance, materials and bedroom count to the market rate
homes and would meet all of the requirements of Chapter 8.68. The units would be affordable in
perpetuity.
2. 26 &condary Units. 26 affordable units would be secondary dwelling units, attached to 26 ofthe
homes on 6,000 square foot lots. All units would be rentals and would he attached to the main
dwelling. They would be one-bedroom units. The units would be affordable in perpetuity.
3. 88 Multi-family Units. These would be constructed off-site on the Anderson property as part of an
apartment complex with two-bedroom, two-bathroom units. There would also be 9 affordable
writs to satisfy the Inclusionary requirements for the Anderson property and one manager's unit,
that would be market rate. The 87 units would be affordable in perpetuity.
4. Braddock & Logan would make a payment of $1 million to the City for affordable housing or
community benefit.
The following Table represents a summary of Braddock & Logan's Affordable Housing Proposal:
Page 3 of7
...........--...... .__...ro"'_
TVDe of Ownership Income mix Size of units Afford,aJJi)itv Period
Unit IRental
26 For sale 50% mod-income Same mix of In perpetuity
Integrated units 20% low-income bedroom size as
Units 30% very low inc. market nlte dev.
26 Rental units 50% mod-income All In perpetuity
Secondary 20% low-income I bedroom
Units 30% very low inc. I bath
78 Rental units 5()% mod-income All In perpetuity
Apartments 20% low-income 2 bedroom
plus the 9 30% very low inc. 2 bath
units fOT
the
Anderson
property
Timing of Construction and Security
q~ ~ 12t
The timing of construction in the proposal is different for the 26 integrated units. the 26 secondary units
and the 88 off-site units. Staff believes that the timing included in the proposal, and the security
proposed, do not meet the purpose or requirements of the ordinance in that construction of the affordable
units would not be guaranteed concurrent with construction of market rate units. Staff is prepared to wOTk
with the applicant; however. to modify the timing and security proposed if the Council is interested in
considering the proposal. For example, some security measures would need to be in place, until Braddock
and Logan obtains ownership of the Anderson property and then pulls building permits to construct the
multifamily complex. A regulatory agreement would need to be in place tying the issuance of building
pennit for the market rate units to the number offuclusionary Wlits under construction. The conditions
and regulatory agreement would also need to explicitly indicate that should the developer be unsuccessful
in obtaining the Anderson property and obtaining the required approvals and financing; the requirements
of the Inclusionary Zoning Regulations would apply; that is, all TnclusionaryUnits are to be built
throughout the subject site, of the same bedroom mix as the whole development and would be evenly
dispersed throughout the development.
Waivers Requested
Braddock and Logan is requesting waivers from the lnclusionary Zoning Regulations. Waivers would be
required from:
· The bedroom mix of the 26 secondary and 78 off-site Inelusionary Units because they would not
mirror what is being constructed at the market rate homes.
. The requirement that the Wlits be dispersed throughout the project because the 88 units would be
concentrated on the Anderson property.
. The requirement that all ofInclusionary units be built concurrent with the remainder of the
development.
Two factors that the Council could consider in granting wai vers are that the developer is offering to
provide $1 million to the City's Mfordable Housing Fund or other Community Benefit Fund in addition
to providing the 12.5% required units and that the units would remain affordable in perpetuity, rather than
for 55 years. .
Page 4 of7
Issues Relating to the Three Types of AfftJrdahle Units Being Proposed:
~1~
I. 26 Integrated Units
PTOviding units along with the market rate units at the site ofthe development is consistent with the
lnc1usionary Zoning Ordinance. The developer is further indicating that the units would be marketed to
the income-range mix that is specified in the lnclusionary Zoning Ordinance.
The issues that arise with this part of the proposal are subtle. The homes to be built are large homes and
the market rate homes will be expenS1ve to purchase. All of the homes will be expensive to maintain.
Along with the purchase of the large home arc expenses such as landscaping, maintenance, heating, etc.
The policy issue is whether it is the Council's desire and the intent ofthe Inclusionary Zoning Regulations
to provide homes of this size to very low-, low- and moderate-income households. If the intent of the
lnclusionary Zoning Regulations is, rather, to provide entry-level homes for lower-income households to
enter the homeownershjp market then perhaps this is not an ideal solution being proposed.
2. 26 Secondary Units
The secondary units, sometimes referred to as "granny flats/' may be of several types. They could be over
the garage as in the Bernal development in Pleasanton or they could be attached to the main home and
have a separate entrance. The proposal that Braddock and Logan is presenting indicates that these would
be one-bedroom, one-bath units and they would be attached to the house.
The Council would have to grant the applicant a waiver from the requirement of the Inclusionary Zoning
Regulations that the affordable units reflect the same number of bedrooms as the market rate units. A
waiver can be granted pursuant to section 8.68.040.E.
The main issue with granny units is that it is not feasible to require the individual single-family
homeowners to rent out the granny units. lfthe units are not rented out to the specified income category
household, then the required number of Inclusionary Units is not being provided. The owners of these
units would be able to rent out the unit to lower-income households, keep them unoccupied and for their.
pelSonal use, or allow for family members to occupy the units. If the property owners decide not to rent
the units out, then the required 26 units that are required, per the Inclusionary Zoning Regulations, would
not be available and the number of units available for lower-income households would be less than the
139 proposed.
Staff believes there are other issues tied to secondary units that the COWlcil should consider. Providing
one-bedroom units will limit the s1ze ofthe households that could occupy the units to one or two person
households. These units may not be able to be administered in any meaningful way by City Housing
Staff. Currently, and per the Inc1usionary Ordinance and the "Layperson's Guide to the Inclusionary
Zoning Ordinance Regulations~', Housing Staff monitors all rental units that are restricted to lower-income
households annually. So far all of these are apartment complexes with professional management staffs.
Nonetheless, it sometimes requires several attempts to have the management staffs provide the required
infonnation on the lower-income tenants. If City Housing Staff is going to be contacting each private
single-family home owner and requesting information on 1) whether they are renting our their units, and
2) the income of the tenant, it may be substantially more difficult to secure the required information. If
Staff does not receive the information needed within a reasonable amount oftime and after repeated
efforts, Staff may involve the City Attorney's office and Council in seeking compliance with the
regulatory agrecment.
Page 5 of7
3.
88 Apartments (78 off-site inclusionary units and 9 on-site inclusionary units, plus a
manager's unit)
I~ ;f)~
The proposal is for the off-site development of87 units to house moderate-) low- and very low-income
households, in the same ratio required by the Tnclusionary Ordinance.
For the Council to allow the applicant to satisfy the Inclusionary requirements by constructing units ofT-
site, it would have to make the five findings discussed above. Staff does not believe the proposal. as
presented, allows the Council to make all five findings. Tfthe Council is interested in considering the
proposal for off-site construction of units and believes the five findings can be made with revisions to the
proposal, Staff can work with the applicant to refine the proposal. One refinement that Staff would
recommend is a trigger point for construction ofthe 88 units or construction of the units on-site. given the
fact that the applicant does not own the Anderson property.
In order to make the five findings, the Council would need to grant a waiver from the bedroom count
requirement of the ()rdinance and a waiver from the dispersal requirement or the ordinance.
The construction of apartments off-site to satlsfy the requirements of the Inclusionary Zoning Regulations
has been allowed before in the City of Dublin. Staff knows how to work with both the developers and the
management entity to enforce the provisions of the executed Affordable Housing Agreement. Before any
building permits are allowed for an affordable development such as an apartment complex~ Staff assures
that the appropriate Affordable Housing Agreement is executed and that the developer has provided a
management plan, indicating the method of marketing the development to the households intended, the
procedures that will be in place to verify the income of the income restricted tenants, and the manner in
which the City of Dublin occupancy preferences will be administered in the selection of tenants. The
apartment complex proposed by Braddock and Logan would be required to provide the same items.
Braddock and Logan has further indicated to Staff that the construction of this apartment complex would
be .fully funded by Braddock and Logan proceeds. The developer does not intend to apply for tax credits
or tax exempt bonds or other fimds available to lower-income rental developments. As such. the
developer would not request any gap funding from the City of Dublin. This is not part of the formal
proposal, however.
OPTIONS:
Braddock and Logan has indicated that if the above described proposal is not satisfactory to the City
Council that the firm would provide 78 Inc1usionary Units (7.5%) on the Fallon Villages site, mixed in
with the market-rate for sale units and pay the required in lieu fee for the other 5%. While this may seem
similar in approach to all other "for sale" developments with Inclusionary Units the City has approved
there arc some differences. First, the homes being considered in this development are larger than any
other homes so far developed with affordable units. As noted above, to provide a 4000 or 6000 square
foot lots to a lower-income household may present a household with a home that they cannot afford to
maintain. Along with the restricted sale price will come a number of expenses, including property taxes,
homeowners' insurance, landscaping, heating and cooling and general long-term maintenance. The
additional housing costs may exceed what the lower-income household may be able to pay. The results
may be a well-intended mismatch of ownership to for sale product.
Other options can be explored to provide Inclusionary Units on-site, but any variation from the
Inclusionary Zoning Regulations would require waivers. Most of the other developers of "for sale"
housing have found innovative ways to accommodate the Inclusionary requirements of the City of Dublin.
Page 60f7
Pinn Brothers will be offering eight of the smaller "Manor" cluster homes to moderate-income
households, with the low- and very low-income households offered homes in the condominiums.
Greenbriar developed town homes in the m.idst of the larger single-family homes specifically for the
Inclusionary Units. Duplexes and Triplcxes may also be incorporated into single-family neighborhoods
without changing the character of the tracts.
) tr1 :r J1-h
If the City Council dctermines that Braddock and Logan's Proposal should be modified in some way, it
would be beneficial to provide that direction to both Staff and Bnlddock and Logan at this meeting.
There would be no guarantee that Braddock and Logan's offer to construct t 30 units rather than paying in
lieu fees for 52 units, to make all units affordable in perpetuity and to donate $1 million to the City would
be part of any other proposal that required the City Council to waive requirements of the ordinance.
However, Staff and Braddock and Logan could explore these other options that would be more consistent
with the City's Inclusionary Zoning Regulations.
RECOMMENDATION:
Staff recommends that the City Couneill) Receive Staff presentation; 2) Hear public testimony; 3)
Deliberate and; 4) Direct Staff to: (a) Inform Braddock & Logan that the Council will not waive the
requirements of the Inclusionary Zoning Regulations required by the proposal; or (b) By consensus, direct
Staff to work with Braddock & Logan to refine the proposal including, in particular, the timing of
construction of the proposed affordable units.
Page 7 of7
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,
.
JO? ~f }2G
Braddock & Logan's
Affordable Housing Proposal
The following is Braddook and Logan's affordable housing proposal for meeting .the
InclusioDiil'Y Zoning requiretnents set forth in Chapter 8.68. Braddock and Logan is
proposing to bundle the folJowing four proposals in order provide the highest number of
units in the most logical place and to meet housing needs not currently being provided. for
in the City. Specially the four. proposed programs are as follows:
(1) 26lntegated Units. This proposal would provide 26 units on the Bankhead property
(at 300/.J for Very Low; 20% Low, and 5OG.Io Moderate). These units would be integrated
within the 4,000 square foot lots of Fallon Village and would be in identical in
appearance, materials, and bedroom count and would be consistent with every portion of
the requirements of Chapter 8.68.
. Timing
Braddock and Logan vvould be agreeable to a condition of project approval that requires
the developer to begin constlUcting the Intergraded units at no later than the 17S'ltl
building permit, with completion of these affordable units at a ratio of 1 affordable unit
completion to every 20 market rate units being completed. This would result in the
Intergraded affordable units being completed prior to the entire project being 2/3
complete. In addition, Braddock and Logan would be agreeable placing a security bond,
guaranteeing the on-time completion of the affordable units.
(2): 26 Se.condary Dwellin~ Unit. This propo5lll would provide 26 Secondary Dwelling
Units spread throughout the project on lots which are 6,000 square feet or latger (at 300Al
fot Very LoW; 20% Low. and 50% Moderate). These units would be one-bedroom and
would be attached to the primary unit. These units would appear integrated into the
design of the primary unit; howevec the second unit would be completely self contained.
These units would be designed to accommodate housing needs that are currently not
being met, such as college/career age children living at home; multi-genera.tional
fanrilies; and or older parents living with children.
nining
The Sec:ondary Affurdable units would be completed concurrent with units fol' the lots
that are 6.000 square feet or lager. In addition, Braddock and Logan would be agreeable
placing a security bond. guaranteeing the on-time completion of the Secondary Units.
(3): 87 Medium-High Density Affordable Units. This proposal would provide 87
affordable units (and one manager's unit) to be placed upon the Anderson property.
These units wo-u!d be located on property designated medium density residential (at 30%
for Very Low; 20% Low, and 50% Moderate). The Anderson Property is located to the
east of Central Parkway and Croak Road, immediately east of the proposed Village
Center to be located on the Jordon Property. The property is idea.lly suited in that it is
{O ... l '5-.06""' {3. \
ATTACHMENT I
'.
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both located in close proximity to existing and proposed transportation infrastrUCture.
existing and proposed job centers and retail development as well as open space. parks,
schools, and semi public uses.
The affordable units proposed on the Anderson property would contain 2 bedrooms and 2
"hathrooms. Section 8.68.030(E) states the affordable units should reflect the range of
bedrooms provided in the project. However, the unit configuration and bedroom count
on the Anderson property is constrained by the natUre of th~ higher density product and
as a result Braddock and Logan is. requesting a waiver from this requirement of Chapter
8.68.'
Timing .
Braddock and Logan would be agreeable to a condition o,f project approval that requires
the developer to begin constructing the Medium~ High Density Affordable Units no later
than the no later than 5 years from the date of the approval of the Tentative Map for the
Braddock and LoganlBankhead properties. In addition, Braddock and Logan would be
agreeable placing a security bond, guaranteeing the on-time completion of the Medium-
High Density Affordable Units affordable units.
(4) Community Benefit Provision. In addition to the other aforementioned a:ffordable
units Braddock and Logan is proposing to provide a million dollars ($1,000,000) to the
City. The City Council can determine the best use of the funds. The monies' could be
placed into the mordable bousing in~lieu fee program, or could be utilized for capital
improvements such as reconstruction of Shannon Center or other City Park or facility.
Braddock and Logan is proposing to provide the City all of the aforementioned proposals
in meeting its affordable housing obligation. The combined approach would provide a
total of 139 wordable units. which is 56 units more tlum required by Chapter 8.68,
Additionally, these units would contain rent'and resale restrictions tha:t ensured the unit's
affordabilityas proposed, indefinitely (Bs opposed to the required S5 year requirement set
by Section 8.68.030E).
Braddock and Logan feels this combination of proposals will further the Citi s goal of
providing housing and providing wits to households that are not currently served by the
marketplace. These affordable units would integrlrted throughout the 480 acre project
area and would designed, constmcted, and managed in a way to ensure healthy and
vibrant neighborhoods for years to come.
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'KEY PRINCIPLES OF INCWSIONARY HOUSING
In its most basic tenm, inclusional)' housing requires or encOllrages market-rate
hOLlSing dwelopments to include it percentage (usually 10 to.20 percent) of
homes aftorc1able to lower- and moderate-lncome households. lnclusionary poll.
oles take tile form of eith.,r a local ordinance, a G.n~ral Plan policy, or a permit
approvals process that requIres or rewards affordable hooalng projects, While
NPH and HBANC hold differing views on the merits of irx;losionary housing. the
following are key principles upon whlOtl our organizations agree;
. Providing an adequate supply of housing is B societal responsibinty.
. Local communities with inclusionary hoosing progral11$ have a respoosibility to
contribute tangible and substantial resources 80 that the cost of providing
affordable !'lousill:l is spread fairly aefOP the community.
A.ffordable housing pollcle$ that maximIZe resources by providing more hous-
ing opportunities or deeper levels or affordability at the same or less oost
$l'JoUld be encouraged.
. Traditional inclusionsry housing policies mat require the development of 'like-
for.llke" units distributed unifonnly throughout the market-rate dellelopment are
often not the mo$t effective or efficient way of providing affordable housing,
. To Increase effectiveness and efficiency, incluslonary h<:Juslng programs
shOUld provide ftexibility and allow a range of attemative methods of providing
affordable units.
RECOMMENDATIONS FOR JURISOICTIONS WITH INCLUSIONARY
HOUSING PROGRAMS
Market-rate builders should be providld wtth Ii choice of $ElVeral options for producing
the affordable homes. The builder should not be required to demonw-ate the financial
infeasibility of traditional inQlusionary requirements in order to use one of these options
and, 50 long 3$1he relevant emeriti f()f a particular option are met, the builder $houlcl
not be required to obtain approval by the local jurisdiction on a case-by-oase basis.
HOUSING TVPI!: AND DESIGN FL~IIIILJ1'Y
Market-rate builders shOLlld be able to satmy an inclusicnary requirement by providing
alternative for~IEI hOlJ&lng types. such as dUers, townhouses, ot COndominiums.
Buildars should have the option of clustering the unitlil onslte or building ~e (see
Offsffe Construction, page 4).
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Market-rate builders should be able to satisfy an lncluslonary requirement by providing rental
housing, provided that the proj.ct meets the incluslonary percentage and income targets
applicable to rental projects. Again, the builder should have the option or clustering the unib
on the project t;ite or proViding for the unIts offsite (see Off$ite ConstnJction, below).
LAND Dg,ICATION
Market-rate builders stlould be able to satilllfy an Incll.l$lonary requirement by donating land to
the local government or Ii non-profit hOlJsing developer, subject to the follcming:
. The bullder and city should ensure that through an upzoning or density bonus the dedicat-
ed site will accommodate more affordable units or units at a deeper affordllblllty level than
the inclusionatyrequirement VIOuld have provided:
. Whare rental housing Is to be constructed on the dedicated site, the site should accommo--
date at least 40 affordable units;
. 't tI'1e dedicated site is such that it requires "extra"
col16lructlon costs--Guch . ttle need to (to podium
development or steel c:onstl'UQtlon-in order to accom-
modate the required number of units, ihe market~rate
builder should bear the extrQ cost, including any offslte
, Improvements, environmental remediation or provision
of utilities. In mO$t other situations, the land dedi<:ation
itself will satisfy the incluslonary requirement,
. The dedicated site is located within the same jurilKiic-
tion 3$ the project or Withl" a defined subregion;
. The dedicated site should have allland...use entitle-
ments secured prior to completion of the markelrtate
unlw. If the local jurisdictIon unreasonably
refIJses to apprD\l& the necessary entitle~
ments. the builder should be able to pay
in-lillilu fees.
Ot=nrra CoNSTRUCTlOH
Market-rate bullder5 should be able to chOOGe
to satisfy an lnclusionary requirement by pro.
viding for the units to be con$lructed outside
the project location, subject to the following:
4
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AJ 'aronll R"ndl 01 ~CA, rbr Mori:e1of1lfll build!!. JIf/lllfdwd /wid :
tQ E4cn HoosI/If lII<~ 0( &-eaIy d~'" flltl ~d'I)' ,-=, !
m~ If. jlOII()bk t(> ~ 74 ~rr1mem. "IfO/dab. ,., ftIm~ tGf11iqJ
bdm' 60 pw'CMl of _1!K'diPn jlImmo (129,000. $SJ. OO~J. o~
n'e rdllJ'lnt tAutl S427 lit $lI6/ pit; monlll (i&~.
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" The offsite looatlon is either comparable
to the prDject site Qr will result in either
greater levels of affordablllty or a greater
number of affordable unit$ than the inciu-
slionSlry requirement would ha'le provided;
· The affordable units should be develDped
concurrently with the rna~-rate homes.
POOLING AND CRIiClT TMAN"~IiAS
~ 0.8 9f \~
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· TWo or more market-rate builders should
be able to p()Ol res~rces to satisfy their
Incluslonary requirement through a single
affordable housll1g project;
· Market-r&te builders that build "extra"
affordable housing units (i.e., more than
required by the inclusionary ordinance)
should be able to use the additional unit$
as crecli1s for meeting future il'lclusionary
requirements in the jurisdiction or a
defined subregion;
· Markel.rate b\.Iilders that build "extra" affordable housing unItS should be able to sell the
additionlill units as credits to other builders in the same JlIr1sd1ct1on or a defined subregion;
QIfi!lI--'O~/::J31m1 4T Wz
VlI.b Loom.r '-Ill< '''''' mau" p,w-1llJe brormlR' 11M CIty of C:ar/d>or.l ell
l1f1mn,d lize h~ m llottll8r Pith dJ" nOI'1'rn6t SltIPGE HIlUIlIIf 'C1:J
dlw~ tile ~cllnlcllNl'>' """"'" otp-u. bur nefN 1M INII'~' iNI"ll,""- .
Sl'<~ HDtltl~l c,r<!!JllM 1.1. 3 ood of ~ ~ f;r 3441100it .,
IloIdt ecImlllJ CIt or b4tIow.:;o ",,<I 61) ~nl ..(tIll! lll'~ mtd"'llMrml.. !
. The "extra' units should" be built before they can be treated as credits;
· Non-profit builders should aleo De able to sell credits to market-rate bUilders for projects
and/or units that are not being funded by the local government. The affordable homes
shOUld be entitled before or ccnourrently with the market-rate development aoquiring
the credits;
" Non~profrt builders should be able to acquire and improve existing market-rate d8Velop~
IT'lElnts and restrk:l Mure rents to very-low' income households Qnd sell the units as credil8
to other bullde/'5 in the ssme jurisdiction or a defined subregion. This option should only
be allowed if: it} households served are at or below 50 percent of median income;
b) the property undergoes extensive renovations; 0) number of units acquired ami renovat-
ed is at least double that of the standard inclusionary requirement; d) affordability is
guaranteed tor a period of at least 55 years; and e) tenant relocation is appropriately
addressed,
5
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~ n/lni)~t .IIwbank H/IIl'litlt
Drl.:/ojJlll..m Cotporaflrl.n 11'1111 /iM"..!Il,
_d. ~Ie Will_ ftlIIl ,lJIMred
irom vlll"kw.... m"''''~'''lc! ~/I~
It. t!!SU/!od In ~ aff~ tMll .
"''I''irw''" rk ",dinar";,,. 01<1 Elm VlIrlp ;
$I~ 87 f1/fOnIuI>k 11_ AlllEq .
from 'Illd~ III ~1!o)IIl4J,~~ _n.
bottSl:< f'" d 01111I 0( m.-i>>1d!. ...:t7Ifnt
30.40, SO. 60, IIIId to ~M' <1(
d/'C<l m~1I ~ I71\'i>rdnbl8 t/)
silll.~ /)e/1l)M ...i1h ~ m. .w-
CB :$:/3,000 aN t/lu""')' lip IQ
/Gmim ",.iI: ..;r/, iwl;lJfI1ll1 '"
ebr;>ur l5!1,OlfO.l! Mtc.;.~ /1
belt fl{ ~DIl'Im~ru.z1 B/)OCfI dIItl tlnI-
tiJlr,J. fifth. <J>I1'-" is ~wa <!
5l~" rVlJq tnn fm;/J/tr SOfll .
1111 fclm/Jit,~ (/!,11ft Old Elm OM me:
"""oulldmr nrtllf,j"l!o.ld.
IN-WI) F~
Market-tate builders Of projects with 50 units or fewer $hould be able to C::h(ll)88 to satisfy an
inclusionary requirement by paying a fee in lieu of directly developing the units. Thi. option
shDuld be available to the develDper without having to demornstrate that other optlon$ are
infeasible..
R!;c;aMMENDED LocAL eo"'"VNtTY CoNTRIBUTIONS
Local governments fulfill Ii crucial role in the creation of affordable housing. BelDVi are SOme
key actions that local governments should take to demonstlllle ill broader commitment to
addressing the afl'ordsble housing shortage.
t. Funding
. Make consistent efforts to paas IOQaI affordable housing assistance bonds or other meas-
ures to meet the existing community's fair share of the burden of providing affordable
housing.
. Either waive development Impact fees and processing fees tor incluslonary units or pay for
them through discretionary local funds such as redevelopment funds or the general fund.
II HIANC rill" NI'H do noC _ . I;4/IMIIN1 /IOIlIirHI M ;" .... /iots lot pmjem ~ mort !IIOII.50 UIlIg.
6
. {df Qj IJt
i
-/ to 1/;"
. Where a redevelopment agenoy exists, in cruse to at leasl50 percent the tax increment
davot$d to affordable housing programs. (Currenllaw requires .. 20 percent lOW. to moder.
ate-income set.aslde for housing.)
2. Zoning
. prOVIde at least one density bonus for each unit of affordable housing required.
. Exemj:t Inclusionary units from bullcling permit caps and growth allocation processes.
. Proactlvely .pre-entitle" (general plan and zoning) the sites Identified in the hQl.I$ing ele-
ment as affordable housing $/te$.
. Make a.pproprlate surplus publicly owned land available for affordable housing.
3. Program Administration
. Local governments should provide a dedloated staff and budget to administer the program
or contract with a comp~ent entity to do $0.
· This responsibility includes up-front a_tance to homebuilders and prospective
buyerslrentef$ in the sales/rental prooess as well as long.tfJrm monitoring of the incluslon-
ary homes.
. 10 the case of fOr-sale InCluslonary unll:5, in which the developer makes a good faith effort
to ull the unit but it remains unsold after 90 days, the local government should either. a)
purcha&e 1he unit atthe restTlcted ptioe and take over marketing; or b) give permission to
sell the unit at market-rate and capture the difference. For option A. the local govemment
must clm;e on the unit within 120 days from completion. For option B, the progJ1llm should
be &tnJctured so that there will be an incentive to obtain true market value for ttle unit.
. The cost of program administration $hould net come from fees or other exactions imposed
on builders.
CONCLUSION
Throughout CliIliforniQ, public; officials and private citizens are struggling to find ways to
address the affordable housing crisi$. Together, NPH and HBANC want to ensure that the
dialogue about solutions Is being Informed by a eet of principles effective and el'llelent at .
shaping public policies thai; wiA work for builders, cities and residents. California has long lee!
the nBtion in innovative approaches to addressing the affordable housing crisis, and, by
workil'l9 together, NPH and HBANC believe that we can find common ground to help solve
the problem in the near future_
7
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LEGEND
M.y 31 . <NO~.
KEY
He/co
ue
vc
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MH
*
liS
NS
NP
Cf>
RR1A
os
LANU U~E
General CoromercWl Commercinl Office
Gcn.cnlI Commercia!
Village Commercial
Low Density Residential
Medium DcruDly Residential
M...diUIll I Iigh I )en.~ily R~'8i<k:ntial
Public / Semi-Puhlic (see Nol.c below)
Elcmcnltuy School
Neighborhood SqIWC
Neighborhood Park
Cununwlity Park
Rurnl Residential I Agri...ulture
Open Space
TOTAL
*' NO'IH: I'ubliw'Swli-T'uhHc lands overlay ok \llIClc o:k:sign;
Alllirilk dcnollll Rquind. ""ru8$" on ellllh propt.'lty .''''n''....1I
.... o.,..,/b)S }la/Ion Vil1l1p C~ntLD' Precise Plan NOlI. fU,fwan
.
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.'
INCLUSIONARY ZONING REGULA ~l~s ~~ .p..~
~tl4lpWr 8.68
~ .'..... .........',.,. '.......................,.........,,, . ...
. ',;...
CHAPTER 8.68
INClJUSIONARY ZONING REGULATIONS
8.68.010. Purp'oie., The purpose of this chapter.is to;
':c
A. enlJ.ance the public wel~ and assure that furth~ housing development contriblllte:;J to the attaUunent
of the City!s housing gofils by increasing the production ofresidBIltial units affordable by households
of very Ip\V) low, and moderate inCome.
B. assure that.the limited remaining developable land in the City's planning area. is utilized in ~ manner
consistent with the City's' housmg polioj~ and needs.
. 8.68.020. Definitions. As used in this chapter. each of the following terms shall.b.e defiP.t~,as,follows:
A. uAffordable Unit'~ means 811 ownership or rental..housUlg unit, .inc1~g s(llipf~~gf,affordable to
households with'very4ow, low, Or modexate inoomes.~ defin~.in this cha~t
1. R~tal ~ts ar~ d.~~ed affordable units if.the~uai rc;Lli does not' e,xQeed 30% 6tln~um
incQ;r:n!;:loYetfor very-low.., low~, and ~oc1erate..jp.come householQs, adjusted for houSehold
size anq as"d~.&ned below. . .
2. Owner..occupied units are deem,eel affordable;. ~ts if the sales price results in aqniliil hoUsing
expenses that do not exceed' 35% of income level for'very-low.,low~, and mode.rate-lnOOme
households, adjus~ed for l1ous~olQ. size and as defin.~ below. For ~ very low-in~ome owner-
occuPied units, the unit shall be deemed ~ affQrdabic' unit if the sales price resuits in annual
housing expenses that do not exceed 35% of the maximum in the very low-income level,
adjusted for household size and as defined below.
B. "Applicant" means any person, firm, partnership, associ$on, joint venture, corporation, or any
entity or combination of entities that seeks city real property development penni~ or approvals.
c. "Dwelling unit" means a dwelling designed and intended for occupancy by one household
D. "Very-low-, low-, and modeJ;'ste-income levels" means those inC011),e ap.d eligibility levels
determined periodically by the California Departmcn.1: 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 oth~ sources of
household income and will be recertified as set forth by local standards', and state and..federal housing
lavv. .
1. ''Yery..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 incomet adjusted for actual
household size.
"Moderate inCome" means more than 80% to 120%,oftbe median mcoIJle, adjusted fQr actual
househo14 size.
.. ."" . "1 .
~. .. . . .
City of Dribl/':i Zoning Ordinance
3.
68.1
....... ..T". .. ......... ., "
.' .$.~~~.r;199t..
. ATTACmrr;s
F.
INCLUSIONARY ZONING REGU~~gQJ'b
Chapter 8.68
"Resale controls and/or rent restrictionsl! 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
households. as applicable, for a period of not less than S5 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.
"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' inchide housing units, and
residential land subdivisions intended to be sold to the general public.
8.68.030. General Requirements
-
E.
A. 12.5% Affordability Requirement. All new residential development projects of 20 units or more
designed and intended for pCIIIllUlent occupancy shall construct 12.5% of the total number of
dwelling units within the develop.ment as affordable units, ex.cept 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 may be disregarded, and any
decimal fraction greater than 0.50 shall be construed as one unit.
B. 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:
Very-low-income households
30%
Low-income households
20%
Modera.te~income households
50%
'Where 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 constroction 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 11 project or phase of a proj~ct shall be constructed
concurrently with market -rate lmits, unless the City Manager detennines 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
City of Dublin Zoning Ordinance 68-2 September, 1997
R.vised March 2005
~
INCLUSIONARY ZONING REGUJ.;rO~J ~
Chapter 8.68
design, construction, or materials. Affordable units may be of smaller size than the units in the project
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 ofprojects subject to8.68.030A
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. Upon request of the applicant, the City
Council shall pennit the applicant to pay a fee in lieu of constructing up to 40% of the affordable
units that the developer would othe1Wise be required to constlUct pursuant to Section 8.68.030A. The
amount of the fee shall be as set forth in a resolution of the City Council, which may be amended
from time to time to reflect inflation and changed conditi.9ns 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 physica1lywithin 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 low..~ 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.'
S. 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 constTuction of the residential development or within
a reasonable period (not to exceed 5 years).
C. Land Dedication. An applioant 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, preservingl 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 infras1ructurel adjacent utilities, grading, and
all development-impact fees paid excluding any inc1usionary zoning ordinance fees.
City of Dublin Zoning Ordinance 68-3 September. 1997
Revised Marr:h 2005
.. .) ".(iDl.> J~~
I NCLUSIONARY ZONING REGULATIONS
.;. . ,,_ 1'.' " ' ,....." "'" . ,Oh.~r 8.68
... . ' . .'. , . . .. ... . . .
that lhe ptoposed.liuid dedication is of sufficient size to meet the following requirements:.
',' "..', .',
:t
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.~ based on
the size. of lots iri the ~ubdivision for which the.applicimt is ineetingits obligation; and
b. fu addition, the dedicatioh includes. Such iK:lditlonal1and the' market value for which is
equai to or exCeeds th.e difference betWeen the value of a niatk:et..:riite, 1200-square
foot unit a.t1d the price at which ~~ch a unit could "Qe sold as ~ Affordable Unit (which
auiount s~ be set f9rth~ a tesoltitiOlJ ~opted from'time:t~ tiine by th,e 'CIty .
CoUncil) times the number ofliliits required. .
',' ':\~ " .
D. Cr~d.it transfers. An.llppH~t may ftiiiyor parti81ly ~t:isfy the requirem.enis of Section 8.68.030A
throl1ghHtl1e tJ.s~ of tranSfer. Credits ~re,#~~d p~uarit:tO:Sectiori 8.6S;060. Credit certificates sballbe
presented to the ComniuIiity Developm.ent DireCtor, who.shlill note$tthe time of project approval the
credit certificate by number. Credit certificates may only be used to satisfY the requirements for
Inclusionary UIdts for the income ca~gpry (i.e., Vel)' low,. law. or moderate) and number of
bedrooms (pr whlch th~y are is~ued. .
E. Waiver of Requirements. The City Council, at its dis.cretia~ may waive, wholly 6rpartially, the
requircm1en~ oftbis ordinance and $ppr~ve alternate m~thods of cOmpliance with this Chapter if the
applicant demonstrates, aile! the City COUn~il finds, that such .altetna,te methods meet the purposes of
thls Chapter. '.
8.68.050. General Procedures. f~r ~p'l~m~~UJ).g In~lusionary Zoning l,{equirements
A. Agreements. Prior to. the issuanc.e of ap~ding permit for 81;1. affordable unit, resale restrictions or
rental controls, or both, as the case may be, shall be set" forth in aD. agreement between the City and
the. 4leveloper, in a form cal1$i8toot with the City CQuncil..adopted form agreentent, which agreement
shall be recorded against the propertY containing the afi'qrdable units. The agreemeD,t shall be
executed by the City Manager, and its requirements shall run with the l~d and bind the applicant's
successors.
B. Rental UItits; Q.CC.~PaDCY; Annual Report. Agreements mVQlVing r.ental Units shall require the
owner of the affordable units to ensure that the unitS m.-e occupt~ llY ten~ts whose monthly income
levels do not exceed very Jow-, low-,or moderate. income levers, as t,he 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 repo~ to the City Manager, in.a form~t ~pproved by the
City. The report sbali include, hut not be limited to the followil1g information: an identification of the
affordable units within the praject; the monthly rents charged and proposed to be c~.ged; VI!lcancy
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 ofthe sale oran affordable unit, the City shall have the right to purchase any affordable
owner~occupant .Unit at the lIl8Ximum. price that could b~ .charged to an eligible hal.18ehalp..
'. ..." 'l' 1-.. .\. . ,.1" ," ',... .~, .
Cfty of Dubll~ 20nl;'9 Ordinance
684 . .
..Septemb8r,..1997 .
Revised March 2005
INCuJSIONARY ZONING REGUJ~~1?s/J~(
Chapter 8.68
D. Selection Criteria. No household shall 'be pennitted 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 Coooty published periodically by the
California Department of Rousing and Conununity 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 tenus 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 residen.ce due to demolition of dwelling or
conversion of dwelling from rental to for-sale unit (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 h,ave been
employed within the City of Dublin for at least six months.
To qualify as a UDublin residentt" the person shall have been a resident of the City of Dublin for at
least a one-year period prior to the ~ligibility determination.
8.68.060. Affordable Unit Credits.
A. Creation. Affordable 1ll1it credits may be 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. Qwuenhip 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
foi' 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 nwnber.
City of Dublin Zoning Ordinance
68-5
September, 1997
Revised MarGh 2005
INCLUSIONARY ZONING REGuJ~~~~s';'
Chapter 8.68
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% ofllie total number of units in the project to the extent
resources for this pmpose are available and approved for such use by the City Councilor City
Manager. Such incentives may include, but shall not be limited to, the following:
A. Fee Deferral.
1. 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 .
payment 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 defett'al increases the project's feasibility.
The applicant must provide appropriate security to ensure future payment of such fees.
B. Design Modifications. The City COWlcil may approve design modifications to affordable units that
increase the feasibility of the construction of affordable units, including but not limited to, the
following:
1. Reduced lot size.
2. Reduced setback requirements.
3. Reduced open space requirements.
4. Reduced landscaping 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. In Lieu Fees shall be deposited into a fund known as
the IJlnc1usionary Zoning In Lieu Fees Fund" ('~und").
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-Iow-, 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
City of Dublin Zoning Ordlmmce
68-6
September, 1997 .
Revised March 2005
. J J q IJ,.Jn6
INCLUSIONARY ZONING REGULATIONS' I
Chapter 8.68
-
comply with any of the requirem~ts 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 Codet any such violation constituting a
misdemeanor under. this chapter, may in the discretion ofthe 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 Govemment Code of the State of California.
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 tOt actions
to revoke, deny, or suspend any permit or development approval.
B. Excessive rents/legal action. Ifthe 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 may be appealed as provided in
Chapter 8.136.
City of Dublin Zoning Ordinance
68.7
September, 1997
Revised March 2005
1u) 11~~
NEW BUSINESS
Braddock and Logan
Affordable Housing Proposal to Comply with Inclusionary
Zoning Regulations for the Braddock and Lpgan Development at Fallon Village
10:34 p.m. 8.1 (430-80/450-20)
Housing Specialist Julia Abdala presented the Staff Report and advised that the 11
property owners of the Fallon Village area have submitted a request for a Stage 1
Development Plan. At the same time, Braddock and Logan has submitted a request for a
Stage 2 Development Plan and a Vesting Tentative Map for the Braddock and Logan
property, consistinz of the northernmost 486 acres of Fallon Village. The Stage Z
submittal is for the creation of 1,043 single-family units. Approval of a Stage Z
Development Plan and Vesting Tentative Map will tri&ger the requirements of the City's
Inclusionary Zoning Regulations. Staff is asking the Council to provide direction as to
whether the City should: 1) Inform Braddock & Logan that the Council will not waive the
requirements of the Inclusionary Zoning Regulations required by the proposal; or 2) By
consensus, direct Staff to work with Braddock & Logan to l'efiJ1e the proposal including,
in particular, the timing of construction of the proposed affordable units.
Ms. Abdala noted that the Staff Report stated that Braddock & Logan did not own the
Anderson property; however, she would like to clarify that they had an option on the
property.
Mayor Lockhart confirmed that the 26 integrated units would be single-family, and
asked how many bedrooms and baths each unit would have.
Ms. Abdala advised that they would be 3,..4 bedrooms because the ordinance required
that affordable units be built similarly to the market rate.
Vm. Zika asked how the Developer intended to insure that the 26 secondary units, 01'
granny flats, were rented out to low income people, and could not envision that someone
paying $600,000-$800,000 for a home and then rent out a granny unit to a low-income
participant.
Jeff Lawrence, Braddock & Logan, advised they did not envision that that would actually
be the case. The size of the unit would dictate what could be charged for rent. In
addition, the secondary granny flat unit was envisioned to be a product that did not exist
DUBLIN CITY COUNCIL MINUTES
VOLUME 24
REGULAR MEETING
October 18, 2005
PAGE 398
www.ci.dublin.ca... s
Attachment 4
12-111J1~
today in Dublin. It was envisioned to be something to provide an opportunity to the
young people, a family member that wanted to stay in the City, to be home but have their
own space as they got on their financial feet. Or, it would be available to a senior family
member. The unit itself could not command a hu.ge rent and, therefore, provided. itself to
a low~ and very..low opportunity for those people.
Mayor Lockhart stated that. whether it was replacing somebody else's need for low
income housing or a family member's needs for low income housing, it was still taking a
senior out of the mix of needing senior housing or one young person out of the mix of
going in with two or three other people to rent.
Mr. Lawrence advised that the project was developed to provide three different prexiuct
types to allow affordability. There were items brought up in the presentation that talked
about landscaping and energy expenses, etc. Braddock & Logan has decided that it would
be a good idea to complete the landscaping in the rear yards and provide some energy-
saving appliances to cut costs, specifically in those units.. Instead of feeing their way out
of it, they would provide an opportunity to build out 12.5% of the total units in a
different, diverse product type that met different social needs.
Vm. Zika disagreed, stating that it was an interesting plan but very far away from what
Dublin's Housing Ordinance for workforce housing was designed and intended to do.
em. Hildenbrand asked is Vm. Zika was referring to granny flats only.
Vm. Zika stated yes, and advised that he was willing to work with the other ideas, but the
granny units did not work for him. He would rather have the money so the City could
build some adequate housing.
Mayor Lockhart stated that she was always hearing complaints from constituents whose
adult children could not afford to live in Dublin. This plan added a different element. It
would allow parents to help their children get on their financial feet, as well as allow
handicap and seniors citizens some independent living. Different alternatives for living
in our community need to be offered.
em. Hildenbrand concurred and stated that a variety of options, other than multi-unit,
needed to be provided. The granny unit proposal almost addressed the controversial
condominium conversion issue as an alternative option. She asked if the 88 unit
apartment complex would be a mix of market rate and affol'(iable.
~
DlJBLIN CITY COUNCIL MINUTES
VOI.lUME 24
REGULAR MEETING
October 18, 2005
PAGE 399
www.ci.dublin.ca.lIs
} 1-J-~ )'kh
Mr. Lawrence advised that all of the units were proposed to be affordable. Braddock &
Logan would own and operate the complex without state or local assistance.
em. Hildenbrand objected to that plan, stating that it went against the Council's plan not
to have an area where all of the affordable apartments could be identified.
Mr. Lawrence advised that there was additional area on that property in order to
accommooate more units, but it was not included as part of this prop:>sal because it was
on the Anderson properly and part of the Stage Z plan. In preliminary design, they had
the opportunity to build closer to 120-125 units at market rate. It was not part of the
affordable proposal for tonight.
em. Hildenbrand reiterated her concern about the apartment complex being grouped
together and having residents stigmatized in that manner. She hoped that the second
phase would have market rate around it to make it mixed in.
Mr. Lawrence stated that there was additional area to accommodate additional units as
market rate. The 88 units would be integrated within the 120-125 units.
em. McCormick stated that the granny flats would meet a need.
Vm. Zika reiterated his concern that the gt'anny unit idea did not meet the needs of the
Inclusionary Housing Ordinance.
em. Oravetz noted that the Affordable Housing Ordinance purposely induded the
flexibility for a Developer to present different alternatives to meet the 12.5%
requirement. This was a good plan that provided opportunities for many needs.
City Manager Ambrose advised that the practical problem at hand was timing. As Staff
went through the Toll projects, market rate units were not allowed to be released. until
the affordable units were secured because they were not affordable until they were built
and the City had the security it needed. If the majority of the Council were in support of
the proposal, Staff would still need to work on the "belt and suspenders" with the
Applicant to work something that satisfied the City's concerns and worked for the
property owner.
Mayor Lockhart suggested that Staff work with the Applicant to include the landscaping
and energy-saving options on the 26 integrated units, which might set a precedent for
other affordable projects. There would be opportunities for Staff to work with the
DUBLIN CITY COUNCIL MINUTES
VOLUME 24
REGULAR MEETING
October 18, 2005
PAGE 400
www.ci.dublin.ca.us
1'0 1Ju,'
Applicant regarding timJng issues, knowing that it was important to the Council to get
those affordable units built as soon as possible. It was also important to enlarge the
apartment product into a larger complex that dealt with people of all income levels.
em. McCormick suggested that Green Building principles be used.
On motion of Mayor Lockhart, seconded Cm. McCormick and by majority vote (Vrn. Zika
opposed), the Council directed Staff to work with Braddock & Logan to: 1) refine their
proposal to include landscaping the rear yards and using energy-efficient measures in
the homes to bring down the cost of living; 2) work on timing issues and obtain
necessary security; 3) study the feasibility of integrating the 88' affordable apartment
units into a lar:ger project; and 4) incorporate green building principles, as practical.
..
After Action Report on July 4, Z005 Public Safety Activities
11 :07 p.m. 8.2 (650-60)
Assistant City Manager Joni Pattillo presented the Staff Report and advised that the City
Council would recejve an informational report on the Public Safety Activities associated
with the past July 4, 2005 holiday. There was a reduction in calls of service in 2005
compared to 2004.
The Council commended Fire and Police Services for their attention to the safety of
Dublin citizens during the holiday season.
.
Consideration of a Commemorative
Inscription in Recognition of Col. James Doty, Camp Parks Commander
11:1Zp.m.8.3 (610-50)
City Managel' Richard Ambrose presented the Staff Report and advised that Mayor
lockhart requested that the City Council consider commissioning a commemorative
inscription in recognitjon of outgoing Camp Parks Commander, Col. James Doty. The
inscription, which would cost $100, would be engraved on a concrete bench leading up
to the Public Safety Memorial located in the courtyard of the Civic Center.
DUBLIN CITY COUNCIIJ MINUTES
VOLUME 24
REGULAR MEETING
October 18, 2005
PAGE 401
www.ci.duhlin.cfi.us
I 'UJ ~}'),6
JII~
BRADDOCK & LOGAN SERVICES, INC.
BUILDERS - DEVELOPERS
ESTABLISHED 1947
P. O. BOX 5300
DANVILLE, CALIFORNIA 94526-1076
TELEPHONE (925) 736-4000
FACSIMILE (925) 648-5700
"
April 11, 2007
Hand Delivered
Jeff Baker
Senior Planner
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Re:
Dear Jeff:
Pursuant to the City Council meeting of October 18, 2005, Braddock & Logan
obtained approval from the Council to proceed with an Affordable Housing Agreement
that would work out minor details such as I) refine the proposal to include landscaping
the rear yards and using energy-efficient measures in the homes to bring down the cost of
living, 2) work on timing issues and obtain necessary security, 3) study the feasibility of
integrating the 88 affordable apartment units into a larger project, and 4) incorporate
green building principles, as practica1.
In a meeting with all of Staff almost three months ago, we agreed that we would
proceed forward with an Affordable Housing Agreement in two parts. The first part
would deal with 26 SFD affordable units which would be located in Neighborhood A.
The second part would deal with 26 secondary units and 88 offsite apartments units at a
future date.
After preparing a Site Plan, it became obvious that 26 Plan l's "Affordable Units"
did not make sense. We looked for a solution. The solution was remove 13 Plan l' s and
add 13 secondary units "Plan 3' s". We believe this would create a much better
streetscape and provide an opportunity for the secondary units, which would be located in
the most affordable product of this project, to help supplement the home buyer through
rental income.
MCEtVED
APR 1 1 ZOO1
DUBLIN PLANNING
Attachment 5
12-5 DJ)J~
April 11, 2007
Page 2
In order to do this, however, it is necessary to amend the Stage 1 P.D. as the Stage
1 P.D. recognizes secondary units to be placed on the 6000 square foot lots. Our
proposal now is as follows:
13 Secondary units located in Cantara, Neighborhood A
13 SFD units located in Cantara, Neighborhood A
Braddock & Logan's commitment to build 26 SFD units still exists. We will
build the balance of the 13 SFD units in Neighborhood D2 as shown on the Phasing
Exhibit & Neighborhood Lot Size Key exhibit attached hereto. The balance ofthe 13
secondary units will be built in conformance with the current Stage 1 on the 6000 square
foot lots located in Neighborhood C on the Phasing Exhibit & Neighborhood Lot Size
Key exhibit attached hereto.
Additional exhibits are attached showing an overall site plan for Neighborhood A
Cantara, which has 26 Plan 1 's, affordable SFD. There is a secondary site develop plan
for Neighborhood A, which shows 13 Plan l' s affordable and 18 Plan 3' s, 13 of those 18
have secondary affordable units.
Braddock & Logan is extremely hopeful that Staff will proceed with the site
development review based upon the submittal of both site development plans prior to the
Council meeting where the Stage 1 Amendment would be considered. I am extremely
sorry for any inconvenience this might have caused Staff over the last few months and I
am hopeful that this is a proposal that will be acceptable.
Sincerely,
awrence
Vice President
lUn
Enclosures
~ito
oS
~
58
. ,
*,~
'V
~
<~
"
NOT APART
2
-
3-27-2007
13:49:21
>
)33 <
l(A~
{
Required Parking.
Resident Parking
(2 spaces/unit)
Resident Parking
Secondary Units- in Driveway
(1 space/unit)
On-street Guest Parking
(1 space/primary unit) =
Total Required
144 spaces
13 spaces
72 spaces
229 spaces
Parking Plan Summary
Location
Resident/Garage
Guest/On-street
Resident Second
Driveway
Total
Proposed
144
97
Required
144
72
ary Units/
13
254
13
229
Legend
11IIIII Guest Parking Space
[E] Excess Parking Space
* Secondary Unit Resident
Parking Space - in Driveway
CEEJ No Parking Zone
",/ Comer Visibility Area
l' Fire Hydrant
} 2-"h } 2-G
Cantara
at {Positano
DUBLIN, CALIFORNIA
BRADDOCK & LOGAN SERVICES, INC.,
4155 BLACKIIAWK PLAZA CIRCLE. SUITE 201,
DANVn.LE, CA 94506
TEL: (925)7364000 FAX: (925) 648~5701
SITE
DEVELOPMENT
REVIEW
PARKING EXHIBIT
March 2007
0'
I
~
50' 100'
200'
I
_i'...
~~~SURWlYlfrG
~ CA (mJ - 28-011O
, .
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~ :
.), ,. ~ ...
SHEET NUMBER
P4 Attachme t 6
19319-0