2005/10/25 City Council Resolution (7)RESOLUTION NO. 2005 -319
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK,
CALIFORNIA, APPROVNG AN AFFORDABLE HOUSING AGREEEMENT
BETWEEN
THE CITY OF ROHNERT PARK AND WATT COMMUNITIES AT CENTRE VILLE
LLC FOR THE CENTRE VILLE PROJECT
WHEREAS, the City's Inclusionary Housing Ordinance requires that all new for -sale
residential projects reserve a minimum of 15 percent of the units for low- and moderate - income
households;
WHEREAS, the "Centre Ville" project was approved in 2003 to allow up to 76 units on
property located at the northwest corner of State Farm Drive and Padre Parkway (PL2002 -046
RZ/UP /SR);
WHEREAS, Condition #4 of that project's approval requires that at least twelve (12) of
the units be reserved for sale to low- and moderate - income households for a minimum period of
30 years;
WHEREAS, Condition #4 of the project's approval further states that an affordable
housing agreement shall be prepared to indicate the standards for maximum qualifying household
incomes for the affordable units, the party responsible for verifying incomes, how vacancies will
be marketed and sold, restrictions binding on the property upon sale or transfer, maintenance
provisions, and any other information required by the City to comply with the conditions of
approval for this project.
WHEREAS, Staff has prepared an Affordable Housing Agreement between the City of
Rohnert Park and Watt Communities at Centre Ville LLC for the Centre Ville project;
WHEREAS, the City Council of the City of Rohnert Park has reviewed and considered
the information contained in the Staff Report and all relevant materials regarding the Affordable
Housing Covenant between the City of Rohnert Park and Watt Communities at Centre Ville LLC
for the Centre Ville project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that it does hereby authorize and approve an Affordable Housing Agreement between the
City of Rohnert Park and Watt Communities at Centre Ville LLC project.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed
to execute the Agreement, negotiate future changes necessary to the Agreement, and execute any
future Amendments necessitated by those changes for and on behalf of the City of Rohnert Park.
JH- s:05 -d
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute
the Exhibit D of the Affordable Housing Agreement and all attachments to such Exhibit D,
including establishment of the transfer fee, negotiate any future changes, and execute any future
Amendments necessitated by those changes, for and on behalf of the City of Rohnert Park.
DULY AND REGULARLY ADOPTED by the Council of the City of Rohnert Park this
date of October 25, 2005.
CITY OF ROHNERT PARK
Mayor
ATTEST:
BREEZE: AYE FLORES: AYE SMITH: AYE VIDAK- lYIARTINEZ: AYE MACKENZIE: AYE
AYES: (S) NOES: (0) ABSENT: (0) ABSTAIN: (0)
(2)
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Rohnert Park
Planning Department
6750 Commerce Boulevard
Rohnert Park, CA 94928 -2486
(Space Above This Line for Recorder's Use Only)
[Exempt from recording fee per Gov. Code § 27383]
AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT ( "Agreement ") is entered into as of the
day of October, 2005 ( "Effective Date "), by and between the CITY OF
ROHNERT PARK, a municipal corporation ( "City ") and Watt Communities at CentreVille LLC,
a California limited liability company ( "Developer ").
RECITALS
A. Developer is the owner of that certain real property located in the City of Rohnert
Park, County of Sonoma, State of California, more particularly described in Exhibit A attached
hereto ( "Site "). The Site is part of a residential development ( "Project ") being developed by
Developer in accordance with City of Rohnert Park Planning Commission Resolution No.
2003 -39 ( "Resolution "). Housing has not yet been constructed on the Site. As such, this
Agreement is being recorded against the Site to provide notice of and secure the obligation to
construct the Affordable Units. The location of the Affordable Units shall be as set forth in
Exhibit B, and housing constructed on the remainder of the Site shall not be subject to
affordability restrictions.
B. City issued the approval for the Project subject to certain conditions of approval.
Condition of Approval No. 4 requires that the Developer reserve at least twelve (12) units in the
Project for sale to low and moderate- income households.
C. City is acting to carry out its obligations under Rohnert Park Municipal Code
Section 17.07.020(N) ( "Ordinance ") and any implementing regulations (collectively, the "City
Inclusionary Housing Requirements "), and Developer agrees to comply with the City
Inclusionary Housing Requirements. All terms and definitions not otherwise defined herein shall
have the same definitions as included in said Section 17.07.020(N).
D. Developer and City desire to set forth Developer's obligations to provide
affdrdable housing in a recorded document. Developer and City hereby agree that twelve (12)
units on the Site (each an "Affordable Unit" and, collectively, the "Affordable Units ") as
described in Legal Description of Affordable Units, attached as Exhibit B hereto and
incorporated herein by reference, shall be subject to the conditions, restrictions, and rights of
City as specified below. The remaining units on the Site shall be referred to as "Market Rate
Units."
340756v8 80078/0022
1.2 Affordabilitv Requirements and Restrictions
A. Developer shall construct twelve (12) Affordable Units in the Project, each of
which will be sold to and occupied by an Eligible Household. Six (6) of the Affordable Units
will be sold by Developer to Low Income Households and six (6) of the Affordable Units will be
sold by Developer to Moderate Income Households.
B. The Annual Household Income shall be considered for purposes of calculating the
applicable income of the Eligible Household. "Annual Household Income" means the combined
gross income for all adult persons living in a dwelling unit as calculated for the purpose of the
Section 8 program under the United States Housing Act of 1937, as amended, or its successor.
C. Affordable Units shall be comparable in number of bedrooms, exterior
appearance and overall quality of construction to Market Rate Units in the Project. Subject to
the prior written approval of the planning and community development director and city
manager, square footage of Affordable Units and interior features in Affordable Units may not
be the same as or equivalent to those in Market Rate Units in the Project, so long as they are of
good quality and are consistent with contemporary standards for new housing. Affordable Units
shall be dispersed throughout the Project or, subject to the approval of the planning and
community development director and city manager, may be clustered within the Project when
this furthers affordable housing opportunities.
D. City shall not approve any final inspection, permit any occupancy, or authorize
the release of utilities for any of Buildings 101, 102, or 109 (as shown on Exhibit C attached
hereto and incorporated herein by reference), any unit therein, or any portion thereof, until the
final inspection of all Affordable Units that are required to be constructed has been approved.
E. Developer shall make a written designation to City, at the time the final
subdivision map for the Site is recorded, of those Units that shall be Affordable Units, which
designation shall be consistent with the terms of this Agreement, including without limitation
Exhibit A. The total number of Affordable Units being offered for sale in accordance with this
Article 1 shall be as required by Section 1.2.A. above. During the Term (as defined in Section
3.3) of this Agreement, the Affordable Units shall be subject to all of the requirements of this
Agreement, including without limitation the following additional restrictions and requirements:
1. Each Affordable Unit shall only be sold to and be occupied by an Eligible
Household. Six (6) of the Affordable Units shall only be sold to and occupied by Low Income
Households at a price that does not exceed the Affordable Sales Price for such Households. Six
(6) of the Affordable Units shall only be sold to and be occupied by Moderate Income
Households at a price that does not exceed the Affordable Sales Price for such Households.
2. The Affordable Units shall only be sold to Eligible Households approved
by City in accordance with this Agreement, the City Inclusionary Housing Requirements and the
City's Affordable Housing Program. Developer shall work with City to obtain names of Eligible
Households certified or maintained by City in accordance with City's Affordable Housing
Program. In the event City does not maintain a list of Eligible Households, at least thirty (30)
calendar days prior to any proposed sale or other transfer of any Affordable Unit during the
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840756v8 80078/0022
PROVIDED THAT DEVELOPER HAS COMPLIED WITH THE TERMS OF THIS
AGREEMENT.
1.3 Alternative Equivalent Action. As to any Affordable Unit which is either (i) not under a
sales contract with six (6) months after the issuance of a certificate of occupancy, with pre -
approved financing, or (ii) for which escrow has not closed, within nine (9) months after
issuance of a certificate of occupancy and the sales contract has been terminated ( "Unsold
Affordable Unit "), Developer may petition the City Council to consider an "Alternative
Equivalent Action" as set forth in and in conformance with the City Inclusionary Housing
Requirements.
ARTICLE 2
MAINTENANCE AND MARKETING
2.1 Maintenance and Management. During the Term (as defined in Section 3.3 below), the
Site and the Project shall be maintained by the homeowners association formed to manage,
operate and maintain the Project. The maintenance obligations will include maintenance of the
improvements and landscaping. Developer agrees to maintain the Affordable Units in a clean
and orderly condition and in good condition and repair, including the maintenance of
improvements and landscaping, and to keep the Affordable Units free from accumulation of
debris and waste materials, until the close of escrow of each Affordable Unit. Upon the sale and
close of escrow on an Affordable Unit, the Eligible Household which purchased the Affordable
Unit will be a member of the Homeowners' Association and will be responsible for the payment
of Homeowners' Association assessments as provided in the Covenants, Conditions and
Restrictions ( "CC &R's ") for the Project. Developer represents and warrants that such
Homeowners' Association assessments will equal $217.56 per Affordable Unit per year until
sales of Phase 2 of the Project are completed, at which point the Homeowners' Association
assessments will be reduced to $172.84 per Affordable Unit per year, subject to increases as
provided for in the CC &R's.
2.2 Marketing and Sales Program and Marketing Reports. To the extent permitted by law,
Developer and Certifying Agency shall work together to design a marketing and sales program
that gives preference in the sale of Affordable Units to persons and households who meet the
following criteria: (1) persons who live and work in Rohnert Park; (2) persons who live in
Rohnert Park; (3) persons who work in Rohnert Park; (4) all others. Within ten (10) days of
City's request, Developer shall deliver to City marketing and sales information for the Affordable
Units in form and substance reasonably acceptable to the City.
2.3. Verification of Citizenship or Qualified Alien Status. At the time of sale, Developer shall
verify the citizenship or qualified alien status of all adult buyers as required under the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law No. 104 -193, 8
U.S.C. § 1621). Developer shall verify the citizenship or qualified alien status by causing the
applicants for purchase to complete and sign under penalty of perjury the HCD Benefit Status
Form 1 (2/98) or such other form provided by HCD for this purpose. The signed forms shall be
forwarded by Developer to City.
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840756v8 80078/0022
subject to any shorter time limitations specifically set forth herein, shall be enforceable by the
City and its successors and assigns, for a period of thirty (30) years from the later of (a) initial
occupancy of the Project or (b) issuance of a Certificate of Completion for each of the
Affordable Units ( "Term "). Developer and City shall confirm the commencement and expiration
dates of the Term in a written, recordable instrument. The parties agree that for the Term, all
future deeds for or transfers of interest in the Affordable Units shall show or reference the
applicable restrictions of this Agreement. Upon recordation of the Limitation Agreement as to a
particular Affordable Unit, this Agreement shall have no further force or effect as an
encumbrance against the particular Affordable Unit to which such Limitation Agreement
pertains, and Developer shall have no further obligations or liabilities with respect to such
Affordable Unit, including without limitation, any responsibility for compliance by the buyer or
its successors with the terms and conditions of the Limitation Agreement, provided that
Developer has complied with the terms of this Agreement.
3.4 No Discrimination. Developer covenants by and for itself and any successors in interest
that there shall be no discrimination against or segregation of any person or group of persons on
account of race, color, creed, religion, sex, physical or mental disability, age, marital status,
national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the Affordable Units, nor shall the Developer itself or any person claiming under or
through it establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of the Affordable Units.
3.5 Amendment. This Agreement may be amended only in writing by City and Developer.
3.6 No Impairment of Lien. No violation or breach of the covenants, conditions, restrictions,
provisions or limitations contained in this Agreement shall defeat or render invalid or in any way
impair the lien or charge of any mortgage, deed of trust or other financing or security instrument;
provided, however, that any successor of Developer to the Site shall be bound by such covenants,
conditions, restrictions, limitations and provisions, whether such successor's title was acquired
by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise.
3.7. Successors and Assigns.
A. Binding Effect; Covenants Run with Land. The covenants contained in this
Agreement shall inure to the benefit of the City and its successors and assigns and shall be
binding upon Developer and any successor in interest as owner of fee title to the Site, or any part
thereof. Upon the transfer by Developer of all or any portion of its interest in the Site, all
references in this Agreement to Developer thereafter shall mean and refer to such successor in
interest of Developer as may then be the owner of the Site or such portion thereof, or interest
therein. In the event that Developer transfers the Site or any portion thereof or interest therein to
more than one successor in interest, all successors in interest shall be collectively required to
comply with the provisions of this Agreement and shall be jointly and severally liable for any
breach or failure to comply, unless each successor and City enter into an agreement outlining the
specific obligations of each successor for compliance with this Agreement. The covenants in
this Agreement shall run in favor of City and its successors and assigns for the entire period
during which such covenants shall be in force and effect. City, and its successors and assigns, in
the event of any breach of any such covenants, shall have the right to exercise all of the rights
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840756v8 80078/0022
C. Any failure or delay by City in asserting any of its rights or remedies as to any
Event of Default shall not operate as a waiver of any Event of Default or of any such rights or
remedies or deprive City of its right to institute and maintain any actions or proceedings which it
may deem necessary to protect, assert or enforce any such rights or remedies.
D. In the event of an Event of Default under this Agreement, City shall have the right
to exercise all of the rights and remedies, and to maintain any actions under this Agreement, the
Ordinance, at law, in equity, or other remedy proceedings.
E. Notwithstanding the foregoing, in the event that Developer fails to comply with
the terms of this Agreement, City may suspend issuance of building permits for Market Rate
Units, building inspections of Market Rate Units, or issuance of occupancy permits for Market
Rate Units, or pursue any other remedy available to it.
3.11 California Law. This Agreement shall be construed in accordance with and be governed
by the laws of the State of California.
3.12 Sever-ability. Should any provision of this Agreement be found invalid or unenforceable
by a court or other body of competent jurisdiction, said invalidity, unenforceability or
ineffectiveness shall not affect the validity of the remaining provisions which shall remain in
force and effect pursuant to the limitations and duration agreed to herein.
3.13 Entire Agreement. This Agreement constitutes the entire agreement between the parties
and no modification hereof shall be binding unless reduced to writing and signed by the parties
hereto. The exhibits attached to this Agreement are incorporated by reference.
[Signature page follows]
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840756v8 80078/0022
IN WITNESS WHEREOF, City and Developer have caused this instrument to be
executed on their behalf by their respective officers thereunto duly authorized.
Date
ATTEST:
City Clerk
APPROV D AS TO FORM:
By: SKI
City Attorney
Date
CITY:
THE CITY OF ROHNERT PARK
By:
Name:
Its: City Manager
Per Resolution No. 2005- adopted by the
City Council on 72005
DEVELOPER:
WATT COMMUNITIES AT CENTREVILLE
LLC, a California limited liability company
By: Watt Developers LLC,
a California limited liability company
dba Watt Communities
Its: Sole Member
By:
Jeffrey B. Lawrence
Its: Senior Vice President
SIGNATURES MUST BE NOTARIZED
-10-
840756v8 80078/0022
State of California )
ss.
County of )
On before me, , personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal. (Seal)
Signature
State of California
ss.
County of
On before me, , personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his/her /their authorized capacity(ies), and that by his/her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
Signature
840756A 80078/0022
(Seal)
State of California
ss.
County of
On before me, _ , personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by his/her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
Signature
840756v8 80078/0022
(Seal)
EXHIBIT A
Legal Description of Site
Subdivision Map entitled "City Center Town }-tomes ", filed December 9, 2004, in Book
670 of Maps, at Pages 19 through 23, inclusive, Sonoma County Records
EXHIBIT B
Legal Description of Affordable Units
Low Income Affordable Units: Units U62, U64, U65, U67, U68 and U72 within
Condominium Plan for Parcel C of subdivision map entitled "City Center Town Homes,"
December 9, 2004, in Book 670 of Maps, at Pages 19 through 23, inclusive, Sonoma County
Records.
Moderate Income Affordable Units: Units U63, U66, U69, U71, U73 and U74 within
Condominium Plan for Parcel C of subdivision map entitled "City Center Town Homes,"
December 9, 2004, in Book 670 of Maps, at Pages 19 through 23, inclusive, Sonoma County
Records.
Exhibit B
840756v8 80078/0022
E-4
f--i
Pa
Site Plan
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Rohnert Park
Planning Department
6750 Commerce Boulevard
Rohnert Park, CA 94928 -2486
EXHIBIT D
(Space Above This Line for Recorder's Use Only)
[Exempt from recording fee per Gov. Code § 27383]
REFINANCE AND RESALE LIMITATION AGREEMENT
AND OPTION TO PURCHASE
For valuable consideration, the receipt of which is hereby acknowledged,
_ (individually or collectively,
"Owner "), and THE CITY OF ROHNERT PARK ( "City ") agree as follows, with reference to
the following facts:
RECITALS
A. Owner owns that certain real property located at , Rohnert Park,
California and more particularly described in Attachment 1 attached hereto and
incorporated herein. The real property, which includes the land, the residence and all
other improvements thereon, and all membership and other rights appurtenant thereto,
is referred to in this Agreement as the "Affordable Unit." The Affordable Unit is part
of a residential community referred to herein as the "Project.
B. City has acted to enforce the inclusionary housing requirements set forth in Rohnert
Park Municipal Code Section 17.07.020(N) ( "Ordinance ") and any implementing
regulations (collectively, the "City Inclusionary Housing Requirements ") by
establishing an affordable housing program for the City of Rohnert Park. As part of the
affordable housing program, City has procured assurances that the Affordable Unit will
be sold, owned and occupied only by members of an Eligible Household (as defined
below), and will be sold only for a price that does not exceed the Affordable Sales Price
(as defined below).
C. Owner has received the benefit of these assurances in purchasing the Affordable Unit,
and is providing the same assurances for the benefit of the City by entering into this
Agreement. Owner and City therefore agree that the Affordable Unit shall be subject to
the terms, conditions and restrictions, and the rights of City, as specified in this
Agreement.
Exhibit D
840756v8 80078/0022
determining eligibility for occupancy, which may include an evaluation of the
applicant's ability to pay mortgage, employment status and credit history. These
standard criteria may vary from time to time, but must be uniformly applied at
all times.
C. "Owner - Occupied Monthly Housing Payment" means the sum equal to the
principal, interest, property taxes, homeowner's insurance and homeowner's
association dues paid on an annual basis divided by twelve (12).
d. "Median Income" shall mean the area -wide median gross yearly income in
Sonoma County, adjusted for household size, as established from time.to time
by the U.S. Department of Housing and Urban Development ( "HUD "), or, by
the California Department of Housing and Community Development ( "HCD ")
if HUD ceases to establish such income standards. In the event that neither
HUD nor HCD are establishing such income standards, the City shall provide
Owner with income standards which are determined in a manner reasonably
similar to the methods of calculation previously used by HUD or HCD.
e. Notwithstanding any other provision in this section: (1) the maximum sales
price permitted on resale of an Affordable Unit intended for owner- occupancy
shall not exceed the seller's purchase price, adjusted for the percentage increase
in Median Income since the seller's purchase, plus the value of substantial
structural or permanent fixed improvements to the property, plus the cost of
reasonable seller's broker fee as determined by the city manager; (2) the resale
restrictions shall provide that in the event of the sale of an affordable unit
intended for owner- occupancy, the city shall have the right to purchase or assign
its right to purchase such affordable unit at the maximum price which could be
charged to an eligible household.
f. Designation of Unit. The Affordable Unit is designated for ownership by a [Low
Income Household or Moderate - Income Household] [select original
designation of affordable unit] . Except as expressly permitted under this
Agreement, the Affordable Unit can be sold only to an Eligible Household with
income limitations that do not exceed those of a [Low Income Household or
Moderate - Income Household] [select original designation of affordable unit,
as that term is defined in this Agreement.
6. Submission of Resale Information to City. Not less than forty -five (45) days prior to
any proposed sale or other transfer of the Affordable Unit during the Term, Owner shall
submit to City: (a) a Notice of Intent to Transfer in the form attached hereto as
Attachment 5, (b) a copy of the written agreement of purchase and sale, (c) the
prospective purchaser's /transferee's income certification, evidence of the
purchaser's /transferee's status as an Eligible Household, a list of all assets owned by the
prospective purchaser /transferee and any information reasonably necessary to enable
City to determine compliance with the terms of this Agreement, in a form reasonably
approved by the City, and (d) the income certification to be provided to any lender
making a loan on the Affordable Unit. City may require documentation reasonably
Exhibit D
840756v8 80078/0022 -3 -
9. Effect of Sale. THE PURCHASER OF THE AFFORDABLE UNIT FROM OWNER
SHALL ENTER INTO AND RECORD AT THE CLOSE OF ESCROW A NEW
REFINANCE AND RESALE LIMITATION AGREEMENT AND OPTION TO
PURCHASE, IN A FORM SIMILAR TO THIS AGREEMENT, SUPPLIED AND
APPROVED BY THE CITY, AND FOR THE BENEFIT OF THE CITY. IF THE
PURCHASER FAILS TO EXECUTE A NEW AGREEMENT, PURCHASER WILL
REMAIN SUBJECT TO THIS AGREEMENT. UPON THE CLOSING, AND
RECORDATION OF THE NEW REFINANCE AND RESALE LIMITATION
AGREEMENT AND OPTION TO PURCHASE, OWNER SHALL HAVE NO
FURTHER OBLIGATIONS OR LIABILITIES TO THE CITY WITH RESPECT TO
THE AFFORDABLE UNIT, INCLUDING WITHOUT LIMITATION ANY
RESPONSIBILITY FOR COMPLIANCE BY THE PURCHASER OR ITS
SUCCESSORS WITH THE TERMS AND CONDITIONS OF THE NEW
REFINANCE AND RESALE LIMITATION AGREEMENT AND OPTION TO
PURCHASE.
10. City's Option to Purchase.
a. Option Notice. If Owner cannot in good faith, and despite using best
commercially reasonable efforts, locate an Eligible Household to purchase the
Affordable Unit at an Affordable Sales Price, Owner shall have the right, but
not the obligation, to give the City written notice of such circumstances
( "Option Notice "). However, the Owner shall not sell the Affordable Unit for a
price that exceeds the Affordable Sales Price or to a non- Eligible Household
without first giving the City an Option Notice so that the City has the
opportunity to exercise the option granted by this Section 10.
b. Qption. In the event Owner gives City an Option Notice or Owner is in default
under Section 15 below, the City may purchase the Affordable Unit at a price
equal to the lesser of (1) the fair market value of the Affordable Unit (as
determined by agreement of the parties or in the absence of an agreement, by an
appraisal acceptable to the City), or (ii) the Affordable Sales Price, using the
maximum housing cost for the Eligible Household, as adjusted for the
applicable unit size as defined in Health and Safety Code Section 50052 or any
successor thereto. This option shall be exercised by the City giving the Owner
notice, no later than ninety (90) days following City's receipt of the Option
Notice or Owner's Default, of the City's intent to purchase the Affordable Unit
( "Exercise Notice "). The City may designate another governmental entity, a
nonprofit organization or an Eligible Household to purchase the Affordable
Unit. If City or its designee does not exercise the option to purchase the
Affordable Unit, then the terms of Section 12 below shall apply.
11. Escrow. If the City exercises its rights under Section 10 above, the closing of the
purchase and sale of the Affordable Unit to the City or its designee shall be effectuated
in accordance with the following provisions:
Exhibit D
840756v8 80078/0022 - 5 -
the Owner itself or any person claiming under or through it 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 or vendees
in the Affordable Unit.
b. Maintenance. During the duration of this Agreement, Owner shall keep the
Affordable Unit in good condition, order and repair and shall not commit waste
or permit impairment, demolition or deterioration of the Affordable Unit. City
shall have the right to inspect the Affordable Unit, provided notice is given to
the owner prior to any such inspection.
C. Taxes and Assessments. Owner shall pay at least ten days before delinquency,
all taxes and assessments on the Affordable Unit.
d. No Liens. Owner shall keep the Affordable Property free from mechanic's and
other liens.
15. Defaults and Remedies.
a. Default. Failure or delay by Owner to perform any term, provision or covenant
of this Agreement which is not cured within thirty (30) days after receipt of
notice from City constitutes a default under this Agreement ( "Default ").
b. Misdemeanors. It shall be unlawful, a public nuisance and a misdemeanor for
any person to sell or rent an affordable unit at a price or rent exceeding the
maximum allowed under this chapter or to a household not qualified under this
chapter, and such person shall be subject to a fine of five hundred dollars ($500)
per month from the date of original noncompliance until the affordable unit is in
compliance with this section.
b. Remedies. The Rohnert Park city attorney's office or the Sonoma County
district attorney, as appropriate, shall be authorized to abate violations of this
chapter and to enforce the provisions of this chapter and all implementing
regulatory agreements and resale controls placed on affordable units by civil
action, injunctive relief, and any other proceeding or method permitted by law.
City, in the event of any breach of any terms, provisions or covenants contained
herein, shall have the right to exercise all of its rights and remedies allowed by
this Agreement and by law, including the right to exercise the option set forth in
Section 10, and to maintain any actions at law or suits in equity or other proper
proceedings to enforce the curing of such breach.
16. Notices. Notices required to be given to the City or to Owner shall be given by hand
delivery, recognized overnight courier (such as UPS, DHL or FedEx) or by certified
mail, return receipt requested, to the following addresses, or to such other address(es)
as a party may designate from time to time by written notice to the other:
Exhibit D
840756v8 80078/0022 - % -
21. No Third Party Beneficiaries. Notwithstanding anything in this Agreement to the
contrary, there are no third party beneficiaries of this Agreement.
22. California Law. This Agreement shall be construed in accordance with and be
governed by the laws of the State of California.
23. Severability. Should any provision of this Agreement be found invalid or
unenforceable by a court or other body of competent jurisdiction, said invalidity,
unenforceability or ineffectiveness shall not affect the validity of the remaining
provisions which shall remain in force to the maximum extent possible.
[Signature page follows]
Exhibit D
840756v8 80078/0022 - 9 -
IN WITNESS WHEREOF, the City and the Owner have caused this Agreement to be
executed on their behalf by their respective officers thereunto duly authorized.
Dated for reference purposes only as of , 20
Date:
ATTEST:
C
City Clerk
APPROVED AS TO FORM:
City Attorney
Date
SIGNATURES MUST BE NOTARIZED
CITY:
THE CITY OF ROHNERT PARK
By:
Name:
Its:
OWNER:
By: _
Name:
By:
Name:
City Manager
Exhibit D
840756v8 80078/0022 - i U -
State of California
ss.
County of
On before me, _, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by his/her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official sea]. (Seal)
Signature
State of California
ss.
County of
On before me, , personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose names) 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
840756v8 80078/0022
(Seal)
State of California
ss.
County of
On before me, , personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
Signature
840756v8 80078/0022
(Seal)
ATTACHMENT 1
Legal Description of Affordable Unit
[to be inserted]
Attachment 1
to Exhibit D
840756v8 80078/0022
ATTACHMENT 2
DISCLOSURE STATEMENT
THERE ARE RESTRICTIONS ON THE SALE OF THE PROPERTY
YOU ARE BUYING. YOU MAY NOT SELL THE PROPERTY FOR
MARKET VALUE TO WHOMEVER YOU LIKE. YOU MUST SELL THE
PROPERTY TO AN "ELIGIBLE HOUSEHOLD" AT AN "AFFORDABLE
SALES PRICE." IF YOU CANNOT DO SO, YOU MUST NOTIFY THE
CITY, WHICH HAS AN OPTION TO PURCHASE THE PROPERTY.
THERE ARE ALSO RESTRICTIONS ON OBTAINING AND
REFINANCING LOANS IN CONNECTION WITH THE PROPERTY. YOU
MAY NOT OBTAIN OR REFINANCE ANY EXISTING LOAN THAT
CAUSES YOUR INDEBTEDNESS TO EXCEED THE "AFFORDABLE
SALES PRICE," EXCEPT AS OTHERWISE APPROVED IN WRITING BY
THE CITY OF ROHNERT PARK.
THESE RESTRICTIONS WILL BE IN EFFECT UNTIL
, 20_. IF YOU SELL THE PROPERTY IN VIOLATION
OF THE RESTRICTIONS; THE SALE SHALL BE VOID.
TO DETERMINE WHO IS AN ELIGIBLE HOUSEHOLD AND WHAT
AN AFFORDABLE SALES PRICE IS, YOU SHOULD CONTACT THE CITY
OF ROHNERT PARK'S HOUSING MANAGER.
I HAVE READ THIS DISCLOSURE STATEMENT AND THE RESALE
AND REFINANCE LIMITATION AGREEMENT AND OPTION TO
PURCHASE AND I UNDERSTAND WHAT THEY MEAN.
Owner
Owner
I HAVE REVIEWED THE ABOVE DISCLOSURE STATEMENT AND
THE RESALE AND REFINANCE LIMITATION AGREEMENT AND OPTION
TO PURCHASE WITH THE OWNER.
City Housing Manager
Attachment 2
to Exhibit D
840756v8 80078/0022
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Rohnert Park
Planning Department
6750 Commerce Boulevard
Rohnert Park, CA 94928 -2486
ATTACHMENT 3
(Space Above This Line for Recorder's Use Only)
[Exempt from recording fee per Gov. Code § 27383]
DEED OF TRUST AND SECURITY AGREEMENT
APN: Ito be inserted]
THIS DEED OF TRUST AND SECURITY AGREEMENT ( "Deed of Trust ") is made
this day of , 20, among
( "Trustor "), whose address is ,
( "Trustee "), whose address is , and the City of
Rohnert Park ( "Beneficiary "), whose address is 6750 Commerce Boulevard, Rohnert Park, CA
94928
Trustor irrevocably grants, conveys, transfers and assigns to Trustee in trust, with power of sale
and right of entry and possession, all of Trustor's right, title and interest now owned or hereafter
acquired in and to the real property in Sonoma County, California, described on Exhibit A
attached hereto and incorporated herein by this reference, together with all buildings, structures
and improvements now existing or hereafter constructed thereon ( "Improvements ") and all other
property and interests of any kind or character which may be reasonably necessary or desirable
to promote the present and future beneficial use and enjoyment of such real property and
improvements ( "Property ").
1. Secured Obligations. Trustor makes the grant, conveyance, transfer and assignment
herein for the purpose of securing Trustor's obligations under that certain Refinance and Resale
Limitation Agreement between Trustor and Beneficiary dated ( "Secured
Obligations ").
2. Maintenance and Repair. Trustor shall (a) keep the Property in good condition and
repair and not remove or demolish any building; (b) complete or restore promptly and in good
and workmanlike manner any building which may be constructed, damaged or destroyed; (c) pay
when due all claims for labor performed and materials furnished; (d) comply with all laws
affecting the Property or requiring any alterations or improvements to be made; (e) not commit
or permit waste; and (f) cultivate, irrigate, fertilize, fumigate, prune and do all other acts which
from the character or use of the Property may be reasonably necessary.
3. Insurance. Trustor shall maintain hazard insurance against loss by fire, hazards included
with the term "extended coverage," and any other hazards for which Beneficiary requires
insurance, and liability insurance. The insurance carrier and the insurance policies and amounts
Attachment 3
to Exhibit D
840756v8 80078/0022 - i -
may instruct Trustee to proceed with a sale of the Property under the power of sale granted in
this Deed of Trust, noticed and held in accordance with California Civil Code Sections 2924,
et seq., as such statutes may be amended from time to time. Trustor waives all rights it may have
to require marshaling of assets or to require sales of assets in any particular order, including any
rights under California Civil Code Sections 2899 and 3433.
11. Substitution of Trustee. Beneficiary, or any successor beneficiary of the Secured
Obligations or of any indebtedness secured hereby, may from time to time, by instrument in
writing, substitute a successor or successors to any Trustee named herein or acting hereunder,
which instrument executed by the Beneficiary and duly acknowledged and recorded in the office
of the recorder of the county or counties where the Property is situated, shall be conclusive proof
of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from
the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument
must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and
page where this Deed of Trust is recorded and the name and address of the new Trustee.
12. Successors and Assigns. This Deed of Trust applies to, inures to the benefit of, and
binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and
assigns. The term 'Beneficiary" shall mean the holder, including pledgees, of the covenants set
forth in the Resale and Refinance Restrictions and Option to Purchase, whether or not named as
Beneficiary herein.
13. Trustee Acceptance. Trustee accepts this trust when this Deed of Trust, duly executed
and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify
any party hereto of pending sale under any other deed of trust or of any action or proceeding in
which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee.
14. Further Assurances. Trustor shall, at its own cost and expense, do, execute,
acknowledge, and deliver all and every such further acts, deeds, conveyances, mortgages,
assignments, notices of assignments, transfers, and assurances as Trustee or Beneficiary shall
from time to time require; for better assuring, conveying, assigning, transferring, and confirming
unto Trustee the Property and rights hereby conveyed or assigned or intended now or hereafter
so to be, or which Trustor may be or may hereafter become bound to convey or assign to Trustee,
or for carrying out the intention or facilitating the performance of the terms of this Deed of Trust,
or for filing, registering, or recording this Deed of Trust. Trustor shall, on demand, execute and
deliver, and hereby authorizes Trustee and Beneficiary, or either of them, to execute in the name
of Trustor, to the extent it may lawfully do so, one or more financing statements, chattel
mortgages, or comparable security instruments, to evidence more effectively the lien hereof.
Immediately upon the execution and delivery of this Deed of Trust, and thereafter from time to
time, Trustor shall cause this Deed of Trust, and any security instruments creating a lien or
evidencing the lien hereof upon any personal property and each instrument of further assurance,
to be filed, registered, or recorded in such manner and in such places as may be required by any
present or future law in order to publish notice of and fully to protect the lien hereof upon, and
the title of Trustee to, the Property encumbered hereby.
15. Condemnation and Insurance Proceeds. Immediately upon obtaining knowledge of
the institution of any proceedings for the condemnation or other taking of all or any portion of
Attachment 3
to Exhibit D
840756v8 80078/0022 = 3 =
The undersigned Trustor requests that a copy of any Notice of Default and of any Notice of
Sale hereunder be mailed to Trustor at Trustor's address hereinbefore set forth.
TRUSTOR:
By:
Name:
By:
Name:
Attachment 3
to Exhibit D
840756v8 80078/0022 -
Exhibit A
Situated in the State of California, City of Rohnert Park, County of Sonoma, and described as
follows:
[insert legal description]
840756v8 80078/0022
State of California
ss.
County of
On before me, _, personally appeared .
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal. (Seal)
Signature
State of California
County of
}
ss.
On before me, , personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by his /her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal. (Seal)
Signature
840756v8 80078/0022
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City ofRohnert Park
Planning Department
6750 Commerce Boulevard
Rohnert Park, CA 94928 -2486
ATTACHMENT 4
(Space Above This Line for Recorder's Use Only)
[Exempt from recording fee per Gov. Code § 27383]
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 Sonoma County, California, and
describing land therein as:
executed by
as Trustor, in which
is named as Beneficiary, and , as
Trustee, be mailed to the City of Rohnert Park, 6750 Commerce Boulevard, Rohnert Park, CA
94928, Attn:
By:_
Name:
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 RECORDED.
Attachment 4
to Exhibit D
840755v8 30078/0022
State of California )
ss.
County of )
On before me, , personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is /are subscribed to the within instrument and acknowledged to me that
he /she /they executed the same in his /her /their authorized capacity(ies), and that by his/her /their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand and official seal.
Signature
8407560 80078/0022
(Seal)
ATTACHMENT 5
Notice of Intent to Transfer
VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED
To: City of Rohnert Park
6750 Commerce Boulevard
Rohnert Park, CA 94928
Attn: Housing Manager
Date:
Re Notice of Intent to Transfer
The undersigned Owner(s),
hereby give(s) notice of his /her /their intent to transfer the property located at
Rohnert Park, California ( "Property "). Owner may be contacted
at the Property or at the following address:
Owner's daytime telephone number is
The proposed transfer of the Property is to the following person(s):
Name:
Address:
Telephone:
The proposed transfer is (check one):
❑ Sale
❑ Other Specify:
Owner(s) signature(s):
Attachrnerlt 5 to Exhibit D
840756v8 80078/0022