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HomeMy WebLinkAboutPlanning Commission Resolution 2019-06 04/09/2019A .0] 11H [0104 _ 1 ,1. RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A DENSITY BONUS HOUSING AGREEMENT FOR THE DECRISTO MULTI -FAMILY PROJECT LOCATED AT 109 ELLIS STREET APN: 007-361-03 FILE NO. PLSR-18-0030 WHEREAS, Jerry A. Kler submitted, on behalf of property owner , an application for Site Plan and Architectural Review including requests for a Residential Density Bonus and a Development Concession/Incentive for the construction of a new multi -family residential project containing three, three-story buildings comprised in total of 13 residential units, 22 off-street vehicular parking spaces, and site improvements including landscaping within the Residential 4 (R4) zone with Flood Plain -Combining (FP -C) Overlay, located on a 0.705 -acre site at 109 Ellis Street (APN 007-361-003) (the "Project"); and WHEREAS, on April 9, 2019, the Planning Commission reviewed the California Environmental Quality Act (CEQA) evaluation and by Resolution No. 2019-05 dated April 9, 2019, recommended to the City Council adoption of a Mitigated Negative Declaration (MND) in accordance with CEQA; and WHEREAS, the Planning Commission held a duly noticed public hearing to consider the Project, including the Site Plan and Architectural Review request and requests for a Residential Density Bonus and a Development Concession/Incentive on April 9, 2019, at which time all interested parties had the opportunity to be heard; and WHEREAS, at said hearing, the Planning Commission considered the staff report dated April 9, 2019, analyzing the Project, including the related Mitigated Negative Declaration; and WHEREAS, public notice of the Planning Commission hearing was published in the Petaluma Argus -Courier and mailed to residents and occupants within 1,000 feet of the Project site in compliance with state and local law; and WHEREAS, Petaluma's Implementing Zoning Ordinance Chapter 27 (Residential Density Bonus) provides for provision of a local Residential Density Bonus and Development Incentives/Concessions program consistent with California state density bonus law; and WHEREAS, the intent of IZO Chapter 27 is to provide incentives for the production of housing for very low, low, moderate income or senior housing in accordance with California state law and facilitate the development of affordable housing consistent with the goals, policies, and programs of the City's Housing Element; and WHEREAS, the project applicant submitted a request for a Residential Density Bonus and a Development Incentive/Concession as allowed under IZO Chapter 27; and WHEREAS, the project proposes to provide one on-site multi -family unit affordable at the very low income level (approximately 8 percent of the proposed units); and WHEREAS, IZO Section 27.030 states that the City shall grant either a Density Bonus or a Planning Commission Resolution No, 2019-06 Page 1 Density Bonus with a Concession or Incentive to an applicant who agrees to provide at least five percent of the total units of the housing development as restricted affordable units affordable to a very low income household; and WHEREAS, consistent with IZO Section 27.040.D, the inclusion of one on-site unit affordable to a very low income household as part of the subject project entitles the project to a residential density bonus of up to 27.5 percent above the base maximum density of 18.0 units per acre; and WHEREAS, IZO Section 27.070 states that a housing development that provides at least five percent of the units affordable to very low income households shall entitle the developer to one concession or incentive; and WHEREAS, IZO Section 27.070 further provides that the City may grant a waiver or modification of site development standards to reduce on-site parking standards, including the number of spaces; and WHEREAS, consistent with IZO Sections 27.040.D and 27.070, the applicant has requested a density bonus to increase the residential density to 18.43 percent and reduce onsite parking by three spaces; and WHEREAS, the reduction in the required onsite parking results in cost savings to the applicant which further subsidizes the provision of the unit available to the very low income household and is not anticipated to have a specific adverse impact upon the public health and safety or physical environment or any real property that is listed on the California Register of Historic Resource, and is not contrary to state or federal law; and WHEREAS, the full onsite parking requirement creates challenges for development of the site at the requested density and may require decrease in the proposed density of over 18 units per acre; and WHEREAS, IZO Section 27.050 provides for development standards for affordable units, all of which have been incorporated into the draft Density Bonus Housing Agreement for the project; and WHEREAS, Chapter 27.090 of the Implementing Zoning Ordinance requires applicants for a Density Bonus, Incentive or Concession to enter into a Density Bonus Housing Agreement with the City, approved by the City Council; and WHEREAS, Chapter 27.090 provides the requirements for a Density Bonus Housing Agreement, which have been incorporated into the draft Density Bonus Housing Agreement for the project. Planning Commission Resolution No. 2019-06 Page 2 NOW THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION AS FOLLOWS: 1. The foregoing recitals are true and correct and incorporated herein by reference. 2. Based on its review of the entire record herein, the Planning Commission makes the following findings: a. The Project is consistent with the General Plan 2025 Medium Density Residential land use designation in that the Medium Density Residential provides for a variety of dwelling types, including single- family and multi -family housing at a density of 8.1 to 18.0 units/acre. b. The Project is, for the reasons discussed in the April 9, 2019 Planning Commission staff report, consistent with the following General Plan policies: Policy 1-P-2 (Efficient Land Use), Policy 1-P-6 (Encourage Mixed -Use Development), Goal2-G-3 (Payran-McKinley Neighborhood Character), Policy 4 -P -I.0 (Creek Setbacks), Policy 5-P-15 (Bikeway Implementation), Policy 5-P-26 (Creek Trail Access), and Housing Element Policies 1.1 (Encourage Residential Development), 1.2 (Optimize Development Potential), and 4.2 (Affordable Housing Production). c. The Project is consistent with all development standards of the Residential 4 (R4) zoning district, including but not limited to, those pertaining to uses, setbacks, building height, floor area ratio, and parking. d. The Project is consistent with all requirements for a Density Bonus with a Concession as outlined in IZO Chapter 27 (Residential Density Bonus) and California state density bonus law. 3. Based on its review of the entire record herein, including the April 9, 2019 Planning Commission staff report, all supporting, referenced, and incorporated documents, and all comments received, the Planning Commission hereby recommends that the City Council approves the Density Bonus Housing Agreement attached as Exhibit 1 hereto and incorporated herein by reference. Planning Commission Resolution No. 2019-06 Page 3 ADOPTED this 9th day of April, 2019, by the following vote: Commission Member Aye, No Absent Abstain Councilmember McDonnell X Chair Marzo X Vice Chair Alonso X Bauer X Gomez X Streeter X Wolpert X ATTEST: Richard Marzo, Chair APPROVED AS TO FORM: Lisa Tennenbaum, Assistant City Attorney Planning Commission Resolution No. 2019-06 Page 4 EXHIBIT 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Petaluma 11 English Street Petaluma, CA 94952 Attn: City Manager EXEMPT FROM RECORDING FEES PER GOVERNMENT CODE §§6103,27383 Space above this line for Recorder's use. APN: 007-361-003 AFFORDABLE HOUSING REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS by and between THE CITY OF PETALUMA and LANDS OF DECRISTO FAMILY TRUST Density Bonus Housing Agreement OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 5 This Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (this "Agreement") is entered into effective as of 12019 ("Effective Date") by and between the City of Petaluma, a California municipal corporation and charter city ("City") and the Lands of DeCristo Family Trust("Owner") The City and the Owner are collectively referred to herein as the "Parties." RECITALS A. Owner is the owner of the real property located at 109 Ellis Street in the City of Petaluma, California, known as Sonoma County Assessor's Parcel No. 007-361- 003, and more particularly described in Exhibit A attached hereto (the "Property"). B. Owner intends to construct, own and operate a residential development on the Property consisting of thirteen (13) apartments (the "Project"). C. On , 20_, the Planning Commission of the City of Petaluma ("Planning Commission") considered Site Plan and Architectural Review and Density Bonus for the project and recommended approval of the Density Bonus to the City Council as outlined in Planning Commission Resolution No. 2019 -XX. D. On , 2019, the City Council of the City of Petaluma ("City Council") considered the Planning Commission's recommendation and the Density Bonus as requested by the Owner and approved the Density Bonus for the Project subject to subsequent Planning Commission approval of Site Plan and Architectural Review and the execution and recordation of this Agreement. D. This Agreement implements California Government Code Section 65915 et seq. (the "Density Bonus Statute") and Petaluma Implementing Zoning Ordinance Chapter 27 (the "Density Bonus Ordinance"). Pursuant to the Density Bonus Statute and the Density Bonus Ordinance, Owner has agreed to provide one (1) two-bedroom unit in the Project as a below market -rate unit that will be available to Very Low Income Households at Affordable Rent (the "BMR Unit"). Pursuant to the Density Bonus Ordinance, Owner is required to enter into and record this Agreement in the Official Records of the County of Sonoma for the benefit of City. E. The purpose of this Agreement is to satisfy the requirements of the Density Bonus Ordinance and Condition No. of Approval granted for the Project by the Planning Commission on , 20_, and to regulate and restrict the rental of the BMR Unit. The Parties intend the covenants set forth in this Agreement to run with the land and to be binding on the Project, the Owner and Owner's successors and assigns for the full term of this Agreement. NOW THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows. 2 OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 6 I . Incoraoration of Recitals; Definitions. 1.1 Incorporation of Recitals; Acknowledgement. The Parties acknowledge the truth of the foregoing Recitals which are hereby incorporated into this Agreement. Owner acknowledges and agrees that the City has granted incentives and concessions for the Project, including a reduction in required parking spaces and a density bonus, and that therefore, the City has the legal authority to impose rent and income eligibility requirements on the BMR Unit pursuant to the Density Bonus Statute and the Density Bonus Ordinance. 1.2 Definitions. The following terms shall have the meanings set forth in this Section wherever used in this Agreement or the attached exhibits. "Actual Household Size" means the actual number of persons in the applicable household. "Affordable Rent" means a monthly housing expenses, including a reasonable allowance for utilities, for Rental Restricted Affordable Units reserved for Very Low Income Households, shall not exceed the following calculations: 50 percent of the area median income for Sonoma County, adjusted for household size, multiplied by 30 percent and divided by 12. "Area Median Income" or "AMI" means the area median income for Sonoma County, California, adjusted for Actual Household Size, as determined by the United States Department of Housing and Urban Development ("HUD") and as published from time to time by the State of California Department of Housing and Community Development ("HCD") in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). "Assumed Household Size" means with respect to the BMR Unit, a two- bedroom unit would accommodate a household up to a maximum of 5 persons. (two people per bedroom plus 1). "BMR Unit" means the two-bedroom unit in the Project of approximately 1,115 net square feet in size that is required to be rented to Eligible Households at Affordable Rent in accordance with the Density Bonus Ordinance and this Agreement. "Claims" is defined in Section 11. "Density Bonus Ordinance" means the City of Petaluma Implementing Zoning Ordinance Chapter 27. "Density Bonus Statute" means California Government Code Section 65915 et seq. "Effective Date" is the date set forth in the preamble to this Agreement. OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 7 "Eligible Household" means a household that qualifies as a Very Low -Income Household. "Gross Income" shall have the meaning set forth in Section 6914 of Title 25 of the California Code of Regulations as such section may be revised from time to time. "Indemnitees" is defined in Section 11. "Marketing and Management Plan" is defined in Section 3.7. "Official Records" means the Official Records of the Sonoma County Recorder. "Project" is defined in Recital B. "Property" is defined in Recital A. "Very Low -Income Household" means a household whose Gross Income does not exceed the qualifying limit applicable to Sonoma County for very low-income households as determined by the U.S. Department of Housing & Urban Development pursuant to Section 8 of the United States Housing Act of 1937 and as published from time to time by the State of California Department of Housing and Community Development ("HCW) in Section 6932 of Title 25 of the California Code of Regulations or successor provision published pursuant to California Health and Safety Code Section 50093(c). 2. Affordability Restrictions. 2.1 Affordability Requirements. For a term of fifty-five (55) years commencing upon the date of issuance of a final certificate of occupancy or equivalent for the Project, one of the residential units in the Project (the BMR Unit) shall be rented at Affordable Rent and occupied (or if vacant, available for occupancy) by Eligible Households. [Note City Ordinance §27.050.8 and §27.090 D.4 refers to 30 year term; however, Govt Code §65915(c) requires 55 years for low- and very low-income density bonus rental units.] In the event that following initial occupancy of the BMR Unit, a tenant's household Gross Income increases so that the tenant no longer qualifies as an Eligible Household, Owner may raise the tenant's rent to an amount net of utilities, that is the lesser of the rent for a comparable market -rate unit in the Project or one -twelfth (1/12th) of thirty percent (30%) of the tenant's household Gross Income; provided however, Owner must rent the next available unit in the Project to an Eligible Household at an Affordable Rent. 2.2 Rent for Restricted Unit. Rent for the BMR Unit shall be limited to Affordable Rent. 2.3 No Condominium Conversion; No Short -Term Rentals. Owner shall not convert the BMR Unit to condominium or cooperative ownership or sell condominium or cooperative rights to the BMR Unit during the term of this Agreement. The BMR Unit must be occupied as the tenant's principal residence. Subleases and assignments are OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 8 not permitted except to Eligible Households at an Affordable Rent. 2.4 Design; Amenities. The design, appearance, and general quality of the BMR Unit shall be comparable to that of the unrestricted residential units in the Project. The BMR Unit may have different interior finishes and features than market -rate units in the Project so long as such finishes and features are durable, of good quality, compatible with market -rate units, and consistent with contemporary standards for new housing. The BMR Unit must contain a dishwasher, refrigerator, garbage disposal, cooking facilities and laundry facilities. The BMR Unit need not contain optional upgrades and luxury items, and Developer may install such optional upgrades and luxury items in market -rate units in the Project. The City shall have the right to inspect the BMR Unit to determine whether it has been constructed in accordance with this Section. Occupants of the BMR Unit shall have access to all Project amenities and recreational facilities available to occupants of the Project's market -rate units. 3. Tenant Selection. 3.1 Marketing BMR Unit; Use of City and County Lists of Prospective Tenants. Owner shall offer the BMR Unit for rent at the same time or sooner than the market -rate units in the Project are offered for rent. If the City maintains a list of potential Eligible Households, Owner agrees to use such list in marketing the BMR Unit, and agrees to honor any priorities established by such list or otherwise specified in this Agreement; provided however, Owner shall retain responsibility to verify prospective tenants' income and eligibility. If the City does not maintain a list of Eligible Households, then Owner agrees to use any similar list maintained by the Sonoma County Housing Authority for the Section 8 Housing Choice Voucher program or similar program. 3.2 Preferences. Subject to Section 3.4 below, Owner shall offer the BMR Unit for rent first to those Eligible Households that include at least one member who lives or works in the City of Petaluma or that works for a school district, fire district, or as a police officer or public safety officer serving residents living in the City of Petaluma. 3.3 Income Verification. Prior to entering into a commitment to rent or lease the BMR Unit, Owner shall provide a certification to City in form approved by City pursuant to which Owner shall certify that Owner has obtained and reviewed information provided by the prospective tenant regarding the prospective tenant's household income and status as an Eligible Household, and that Owner has no knowledge that the prospective tenant does not qualify as an Eligible Household. In connection with such certification, prospective tenants shall be required to provide written certification of household income, including without limitation, such documents as income tax returns for the previous calendar year, W-2 statements, and pay stubs to Owner, and City shall have the right to inspect such documentation pursuant to Section 4.4 below. California Tax Credit Allocation Committee income verification forms will be used to verify tenants for the BMR Unit. (Attachment C) 3.4 Compliance with Fair Housing Laws. Owner shall comply with all state and federal fair housing laws, rules, regulations and guidelines in the marketing and 5 OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 9 rental of the units in the Project. Owner shall accept as tenants of the BMR Unit, on the same basis as all other prospective tenants, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto. Owner may require prospective tenants to complete an application and credit and background check provided that the prospective tenants of market -rate units in the Project are subject to the same application and credit and background check. 3.5 Non -Discrimination. Owner shall not restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, 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, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith. 3.6 Marketing and Management Plan; Restrictions on Subleasing and Assignment. In marketing the BMR Unit, Owner shall comply with Section 3.1 above. Owner shall provide to City the form of rental agreement that Owner proposes to use in renting the BMR Unit for City's review and approval prior to marketing the BMR Unita The lease or rental agreement for the BMR Unit shall include a provision that prohibits subleasing or assignment of the lease or rental agreement other than to an Eligible Household at an Affordable Rent. 3.7 No Short -Term Rentals. Prospective tenants of the BMR Unit must sign a written statement acknowledging their agreement that the BMR Unit must be occupied as the tenant's principal residence, that the unit may not be subleased except to an Eligible Household at an Affordable Rent, that the tenant may not make the unit available for short term rental, and that the tenant is required to annually sign a written statement certifying compliance with all of the foregoing requirements. 4. Reportinq Requirements_; Access to Information; Inspections. 4.1 Tenant Certification. Owner or Owner's authorized agent shall obtain from each household prior to initial occupancy of the BMR Unit, and on every anniversary thereafter, a written certificate containing all of the following in such format and with such supporting documentation as City may reasonably require: (a) the C1 OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 10 identity of each household member; (b) the tenant's total household Gross Income; and (c) a certification that the tenant is occupying the BMR Unit as the tenant's principal residence. Owner shall retain such certificates for not less than five (5) years, and upon City's request, shall make the originals available for City inspection. 4.2 Annual Report; Inspections. Following completion of Project construction, by not later than April 30 of each year during the term of this Agreement, Owner shall submit an annual report ("Annual Report") to the City in form satisfactory to City, together with a certification that the Project is in compliance with the requirements of this Agreement. The Annual Report shall, at a minimum, include the following information for the BMR Unit: (i) unit number; (ii) current rent and other charges; (iii) dates of any vacancies during the previous year; (iv) the number of people residing in the unit; (v) total household Gross Income of the tenant; and (vi) documentation of source of household income. Owner shall include with the Annual Report, an income certification for each household based upon documentation verifying tenant eligibility as described in Section 4.1, and.such additional information as City may reasonably request from time to time in order to demonstrate compliance with this Agreement. 4.3. Maintenance of Records. (1) Owner shall maintain tenant leases, income certifications and other matters related to the leasing of the BMR Unit for a period of five (5) years after the final date of occupancy by the tenant. (2) Records must be kept accurate and up-to-date. City shall notify Owner of any records it deems insufficient. Owner shall have fifteen (15) calendar days from such notice to correct any specified deficiency in the records, or, if more than fifteen (15) days shall be reasonably necessary to correct the deficiency, Owner shall begin to correct the deficiency within fifteen (15) days and diligently pursue the correction of the deficiency as soon as reasonably possible. 4.4 Access to Records; Inspections. (1) With at least 48 hours' notice, during normal business hours, Owner shall provide City and its authorized agents and representatives access to any books, documents, papers and records of the Project relating to the BMR Unit for the purpose of making audits, examinations, excerpts and transcriptions. (2) With at least 48 hours' notice, during normal business hours and as often as may be deemed necessary, City and its authorized agents and representatives shall be permitted access to, and the right to examine, the Project and the Property, and to interview employees and tenants, of the Project, for the purpose of verifying compliance with applicable regulations and compliance with the conditions of this Agreement. 5. Term of Agreement. OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 1 1 5.1 Term of Restrictions. This Agreement shall remain in effect until the fifty- fifth (55th) anniversary of the issuance of the final certificate of occupancy or equivalent for the Project, unless the term is extended by written agreement of the Parties. 5.2 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 or the Project or any part thereof or interest therein. 5.3 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term. 6. Binding Upon Successors Covenants to Run with the Land. The City and the Owner hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall be binding upon all successors in title to the Property, regardless of any sale, assignment, conveyance or transfer of the Property, the Project or any part thereof or interest therein. Any successor -in -interest to Owner, including without limitation any purchaser, transferee or lessee of the Property or the Project (other than the tenants of the individual dwelling units or commercial space within the Project) shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or the Project 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; provided, however, that upon the expiration of the term of this Agreement, said covenants and restrictions shall expire. This Agreement shall bind any successor, heir or assign of the Owner, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise. Owner agrees for itself and 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 and the Project in favor of City. Without limiting the generality of the foregoing, Owner and City hereby declares their understanding and intent that: (a) The covenants and restrictions contained in this Agreement shall be construed as covenants running with the land pursuant to California Civil Code section 1468 and not as conditions which might result in forfeiture of title by Owner; OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 12 (b) The burden of the covenants and restrictions set forth in this Agreement touch and concern the Property in that the Owner's legal interest in the Property and all improvements thereon are rendered less valuable thereby; (c) The benefit of the covenants and restrictions set forth in this Agreement touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the BMR Unit tenants; and (d) All covenants and restrictions contained herein without regard to technical classification or designation shall be binding upon Owner and its successors in interest for the benefit of the City, and such covenants and restrictions shall run in favor of the City for the entire period during which such covenants and restrictions shall be in force and effect, without regard to whether the City is an owner of any land or interest therein to which such covenant and restrictions relate. 7. Property Management; Repair and Maintenance. 7.1 Management Responsibilities. Owner shall be responsible for all management functions with respect to the Property and the Project, including without limitation the selection of tenants, certification and recertification of household income and eligibility, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. City shall have no responsibility for management or maintenance of the Property or the Project. 7.2 Repair, Maintenance and Security. Throughout the term of this Agreement, Owner shall at its own expense, maintain the Property and the Project 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 Project and the Property (including without limitation, the residential units, common areas, meeting rooms, landscaping, driveways, parking areas 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 or at the Project. Owner shall prevent and/or rectify any physical deterioration of the Property and the Project and shall make all repairs, renewals and replacements necessary to keep the Property and the improvements located thereon in good condition and repair. Owner shall provide adequate security measures for the Project, including without limitation, the installation of adequate lighting and deadbolt locks. 7.3 Fees, Taxes, and Other Levies. Owner shall be responsible for payment of all fees, assessments, taxes, charges, liens and levies applicable to the Property or the Project, including without limitation possessory interest taxes, if applicable, imposed by any public entity, and shall pay such charges prior to delinquency. However, Owner shall not be required to pay any such charge so long as (a) Owner is contesting such charge in good faith and by appropriate proceedings, (b) Owner maintains reserves OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 13 adequate to pay any contested liabilities, and (c) on final determination of the proceeding or contest, Owner immediately pays or discharges any decision or judgment rendered against it, together with all costs, charges and interest. 7.4 Insurance Coverage. Throughout the term of this Agreement Owner shall comply with the insurance requirements set forth in Exhibit B, and shall, at Owner's expense, maintain in full force and effect insurance coverage as specified in Exhibit B. 7.5 Property Damage or Destruction. If any part of the Project is damaged or destroyed, Owner shall repair or restore the same, consistent with the occupancy and rent restriction requirements set forth in this Agreement. Such work shall be commenced as soon as reasonably practicable after the damage or loss occurs and shall be completed within one year thereafter or as soon as reasonably practicable, provided that insurance proceeds are available to be applied to such repairs or restoration within such period and the repair or restoration is financially feasible. If this provision conflicts with the requirements of senior lenders, the requirements of such lenders shall prevail. 8. Recordation; No Subordination. This Agreement shall be recorded in the Official Records of Sonoma County. Owner hereby represents, warrants and covenants that with the exception of easements 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 or the Project. If at the time this Agreement is recorded, any interest, lien, or encumbrance has been recorded against the Project 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 8, and to provide such evidence thereof as City may reasonably request. 9. Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Project or the Property, and the purchaser 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 Project or the Property that such violation has occurred. 10 OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 14 10. Default and Remedies. 10.1 Events of Default. The occurrence of any one or more of the following events shall constitute an event of default hereunder ("Event of Default"): (a) Owner's failure to maintain insurance on the Property and the Project as required hereunder, and the failure of Owner to cure such default within five (5) days; (b) Subject to Owner's right to contest the following charges, Owner's failure to pay taxes or assessments due on the Property or the Project or failure to pay any other charge that may result in a lien on the Property or the Project, and Owner's failure to cure such default within twenty (20) days of delinquency, but in all events prior to the imposition of any such tax or other lien; (c) A default arises under any loan secured by a mortgage, deed of trust or other security instrument recorded against the Property and remains uncured beyond any applicable cure period such that the holder of such security instrument has the right to accelerate repayment of such loan; (d) Owner's default in the performance of any term, provision or covenant under this Agreement (other than an obligation enumerated in this Section 10.1), and unless such provision specifies a shorter cure period for such default, the continuation of such default for ten (10) days in the event of a monetary default or thirty (30) days in the event of a non -monetary default following the date upon which City shall have given written notice of the default to Owner, or if the nature of any such non - monetary default is such that it cannot be cured within thirty (30) days, Owner's failure to commence to cure the default within thirty (30) days and thereafter prosecute the curing of such default with due diligence and in good faith, but in no event longer than sixty (60) days from the date of delivery of the notice of default. 10.2 Remedies. Upon the occurrence of an Event of Default and its continuation beyond any applicable cure period, City may proceed with any of the following remedies: 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 the BMR Unit, impose as liquidated damages a charge in an amount equal to the actual amount collected in excess of the Affordable Rent; C. Bring an action for damages or pursue any other remedy allowed at law, or in equity; 11 OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 15 D. Pursue any remedy available under the Density Bonus Ordinance. 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. 11. Indemnity. To the greatest extent permitted by law, Owner shall indemnify, defend (with counsel approved by City) and hold the City and its elected and appointed officers, officials, employees, agents, consultants, contractors and representatives (collectively, the "Indemnitees") harmless from and against all liability, loss, cost, expense (including without limitation attorneys' fees and costs of litigation), claim, demand, action, suit, judicial or administrative proceeding, penalty, deficiency, fine, order, and damage (all of the foregoing collectively "Claims") arising directly or indirectly, in whole or in part, as a result of or in connection with Owner's construction, management, or operation of the Property and the Project or any failure to perform any obligation as and when required by this Agreement. Owner's indemnification obligations under this Section 11 shall not extend to Claims to the extent resulting from the gross negligence or willful misconduct of Indemnitees. The provisions of this Section 11 shall survive the expiration or earlier termination of this Agreement. 12. Miscellaneous. 12.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by both Parties. 12.2 No Waiver. Any waiver by City of any term or provision of this Agreement must be in writing. No waiver shall be implied from any delay or failure by City to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. No failure or delay by City at any time to require strict performance by 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. 12.3 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: (i) personal delivery, in which case notice is effective upon delivery; (ii) 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; or (iii) 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. 12 OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 16 City: City of Petaluma 11 English Street Petaluma, CA 94952 Attention: City Manager Owner: Lands of DeCristo Family Trust 7356 Country Club Drive San Diego, CA 92037 12.4 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. 12.5 Parties Not Co -Venturers; Independent Contractor; No Agency Relationship. Nothing in this Agreement is intended to or shall establish the Parties as partners, co -venturers, or principal and agent with one another. The relationship of Owner and City shall not be construed as a joint venture, equity venture, partnership or any other relationship. City neither undertakes nor assumes any responsibility or duty to Owner (except as expressly provided in this Agreement) or to any third party with respect to the Project. Owner and its employees are not employees of City but rather are, and shall always be considered independent contractors. Furthermore, Owner and its employees shall at no time pretend to be or hold themselves out as employees or agents of City. Except as City may specify in writing, Owner shall not have any authority to act as an agent of City or to bind City to any obligation. 12.6 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 of the City of Petaluma or by any person who shall have been designated by the City Manager, without further approval by the City Council 12.7 Non -Liability of City and City Officials, Employees and Agents. 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. 12.8 Headings; Construction; Statutory References. 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. All 13 OAK #4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 17 references in this Agreement to particular statutes, regulations, ordinances or resolutions of the United States, the State of California, or the City of Petaluma shall be deemed to include the same statute, regulation, ordinance or resolution as hereafter amended or renumbered, or if repealed, to such other provisions as may thereafter govern the same subject. 12.9 Time is of the Essence. Time is of the essence in the performance of this Agreement. 12.10 Governinq Law; Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of Sonoma County, California or in the Federal District Court for the Northern District of California. 12.11 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. 12.12 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. 12.13 Entire Agreement; Exhibits. This Agreement, together with the Loan Agreement, the Note and the Deed of Trust 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. Exhibits A and B attached hereto are incorporated herein by this reference. 12.14 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. SIGNATURES ON FOLLOWING PAGES. 14 OAK #k4819-2913-4472 v2 Planning Commission Resolution No. 2019-06 Page 18 IN WITNESS WHEREOF, the Parties have executed this Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants as of the date first written above. OWNER: a By: Print Name: Title: CITY: City of Petaluma, a California municipal corporation and charter city City Manager ATTEST: Claire Cooper, City Clerk APPROVED AS TO FORM: Eric W. Danly, City Attorney SIGNATURES MUST BE NOTARIZED. OAK #4819-2913-4472 v2 15 Planning Commission Resolution No. 2019-06 Page 19 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On before me, (here insert name and title of the officer), personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) OAK 84819-2913-4472 v2 16 Planning Commission Resolution No. 2019-06 Page 20 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On before me, (here insert name and title of the officer), personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) OAK 44819-2913-4472 v2 17 Planning Commission Resolution No. 2019-06 Page 21 Exhibit A PROPERTY Real property situated in the City of Petaluma, County of Sonoma, State of California, State of California described as follows: Insert legal description. APN: OAK 44819-2913-4472 v2 18 Planning Commission Resolution No. 2019-06 Page 22 Exhibit B INSURANCE REQUIREMENTS OAK #4819-2913-4472 v2 19 Planning Commission Resolution No. 2019-06 Page 23 EXHIBIT C Income Verification Form TENANT INCOME CERTIFICATION Effective Date: ❑ Initial Certification ❑ Recertification ❑ Other Move -In Date; MM•DD•1'YYY — _ PART I - DEVELOPMENT DATA Property Name: County; --�— _- TCAC#: B1N#: Address: If applicable, CDLAC#: Unit Number; # Bedrooms; Square Footage: PART II. HOUSEHOLD COMPOSITION ❑ Vacant (Check if unit tvas vncnni on December 31 of the F,frective Date Year) III -1 Mbr It Last Nwnu First Nannu Middle Initial Relationship to Head of Household Dote of [firth (MM/DD/YYYY) P/T Student (Y or N) Last 4 digits of Social Security N 1 BEAD 2 3 d 5 PART III. GROSS ANNUAL, INCOME, USE ANNUAL AMOUNTS fill Mbr r/ (A) En�rloymenl or Wages (t3) Soo. Security/Poatsions (C) Public Assistance (D) Other Income TOTALS $ $ Add totals from (A) through (D), above TOTAL INCOME (R , �— PART' IV. INCOME FROM ASSETS 1III (F) (0) — – (11) (I) Mbr # Type of Asset (:!f Cash Vrdue of Asset Annual Income front Asset TOTALS: Enter Column (H) Totul Passbook R:rte Ifover $5000 5 — X 0.06% _ (J) Imputed Income 5 Enter the grenter of the total of column I, or .I: imputed income 'TOTAL INCOME, hR011J ASSETS (IO (L) Total Annual Household Income from all Sources [Add (E) + (K)] 1 $ _ HOUSEHOLD CER'ITPICA'I'ION & SIGNATURES The information on this fort will be used to detennine nwhount income eligibility. Uwe have provided for each person(s) set forth in Part 11 acccpinble verification of current anticipated annuul incouta. 1Ave agree to notify the laud lord immediately upon any mcmber or the household proving out of the unit or any now mernbcr moving in. IAve agree to notify the lundlord immediately upon any mcmber becoming a fld) lime student. Under penalties of perjury, attire certify !flat the inrormation presented in this (JcrtiOeation is true. and accurate to the best or my/our knowledge and belief. 'Ihe undersigned further understands that providing false representations herein constitutes an act of fraud. Fulse, misleading or incomplete infomtation may result in the lertination of the lease ogrecment. Signature (Date) Signature (Dale) Signature OAK $4819-2913-4472 v2 (Dale) Signature I 20 Planning Commission Resolution No. 2019-06 (Date) CI'CAC Tonant Income Certification (May 2018) Page 24 ----� PART V. Dt l'LRMINA`I'ION OF INCOME ELIG11311.ITY '1'0'1'AI, ANNUAI, i IOIJSEIIOLD INCOME FROM ALI, SOURCES: Front item (L) on page I Current Federal LhIIITC Income I,hnit per Family Size: $ If Applicable, Current Federal Bond income limit per Ilaunily Sire: Household Income as of Move -in: PART VI. 'tenant Paid Monthly Rent: _$ Monthly Utility Allowance: $ Other Monthly Noo-optional charges: $ GROSS MONTHLY RENT FOR UNiT: ('tenant paid rent plus Utility Allowance & other non -optional charl,cs) $ Mnxinuun Federal i,II-ITC Rent Unlit t'or this unit: $ ffApplicnble, Maxianum Federal & Slate LII iTC Bond Rent Limit for this unit: Unit Meets Federal Rent Restriction at: ❑ 60% ❑ 50% IiApplicabie, Unit Meets Bond Rent Rostriction at: ❑ 60% ❑ 50% Unit Meets Dceper Targeting Rent Restriction at: ❑ Other:, ARE ALI, OCCUPANTS 11Ul,L'1'iMF. STUDENTS? ❑ yes ❑ no Ilousehold Size at Move -in: Federal Rent Assistance: $_ _ *Source:.- _ Non -Federal Rcnl Assistance: $ (*0-8) Total Monthly Tient Assistance: $� *Source o1' Pcderal Assistance I **HIJD Multi -family Project Based Rental Assistance (PBRA) 2 Section 8 Moderate Rehabilitation 3 Public Housing Operating Subsidy 4 HOME Rental Assistanco 5 1-811) Housing Choice Voucher (I ICV), tenant -based C 11UD Project -Based Voucher (PBV) 7 USDA Section 521 Rental Assistance Program 8 Other Federal Rental Assistance 0 Missing ** (MMA) Includes: Section 8 NwvConstnuclio»/Subairtnlinl Rehabilitation; Section 8 Loan Managaunenl; Section 8 Property Disposition; Section 202 Project Rental Assistance Contracts (PRAC) PARI' VII. STUDENT If yes, Enter student explanation* (also attach documentation) *Student Explanation: I AFDC / TANF Assistance 2 Job Training Program 3 Single parent/Dependent Child 4 Married/Joint Return 5 Fortner Poster Care Murk the programs) listed below (a. through e.) for which this household's unit will be counted toward the property's occupancy requiremenls. Under each program marked, indicate the household's inconne status as established by this certificattion/rece-lification. a, Tax Credit ❑ RECERTiI+ICATION ONLY: Unit Meets Federal Current Federal LIiITC laconic Restriction tit: Incene Lirnit x 140% ❑ 60% ❑ 50% $ Unit Meets Deepin-Targoting 1-fouschold Income exceeds Income Restriction at; 1,10% tit recertification: ❑ Other % ❑ Yes ❑No Ilousehold Size at Move -in: Federal Rent Assistance: $_ _ *Source:.- _ Non -Federal Rcnl Assistance: $ (*0-8) Total Monthly Tient Assistance: $� *Source o1' Pcderal Assistance I **HIJD Multi -family Project Based Rental Assistance (PBRA) 2 Section 8 Moderate Rehabilitation 3 Public Housing Operating Subsidy 4 HOME Rental Assistanco 5 1-811) Housing Choice Voucher (I ICV), tenant -based C 11UD Project -Based Voucher (PBV) 7 USDA Section 521 Rental Assistance Program 8 Other Federal Rental Assistance 0 Missing ** (MMA) Includes: Section 8 NwvConstnuclio»/Subairtnlinl Rehabilitation; Section 8 Loan Managaunenl; Section 8 Property Disposition; Section 202 Project Rental Assistance Contracts (PRAC) PARI' VII. STUDENT If yes, Enter student explanation* (also attach documentation) *Student Explanation: I AFDC / TANF Assistance 2 Job Training Program 3 Single parent/Dependent Child 4 Married/Joint Return 5 Fortner Poster Care Murk the programs) listed below (a. through e.) for which this household's unit will be counted toward the property's occupancy requiremenls. Under each program marked, indicate the household's inconne status as established by this certificattion/rece-lification. a, Tax Credit ❑ b, I IOME ❑ c. Tax Exenpt Bond ❑ See Part V above. /11colne Slrlflls hico ie Status ❑ < 50% AMGI ❑ 50% AMGi ❑ S 60% AM01 ❑ 60% AMGI ❑ 80% AMGI ❑ 80% AMGI ❑ OI" ❑ 0i" ""Upon recertification, household was determined over-ineono (OI) according to e d, ABUT' ❑ 1 c. ❑ pvnnm / r -"'g. n/ htcolne ,51afus ❑ 50% AMGi hicoave Status ❑ 80% AMGi ❑ ❑ Ol"" ❑ Oi" SIGNATURE OF OWNEII/Rla'RESI+ N'I'ATIVE Based on the representations herein and upon file proof and (locunton(tit tell requircd to be submitted, the individual(s) nemod in Part II of this Tenant Income Certification is/are eligible under the provisions of Section r12 ofthe Internal Revenue Code, its wounded, and the Land Use Restriction Agreement (WapplIcabie), to live in at unit fn this Project. SiGNA'I'URF. 011 C)WNI?R/It1 PR1iSi'.NT'A'I'IVI; DATR 2 CTCAC Tenant Inconie C ortiftcation (May 2018) OAK #4819-2913-4472 v2 21 Planning Commission Resolution No. 2019-06 Page 25 PART IX" SUPPLEMEN'T'AL INFORMATION FORM The California Tax Credit Allocation Committee (CTCAC) requests the following information in order to comply with the Housing and Economic Recovery Act (t1.ERA) of 2008, which requires all Low Income Housing Tax Credit (LIHTC) properties to collect and submit to the US, Department of Housing and Urban Development (I ND), certain demographic and economic information on tenants residing in LIH'I'C financed properties. Although the CTCAC would appreciate receiving this information, you may choose not to furnish it, You will not be discriminated against on the basis of this information, or on whether or not you choose to furnish it. if you do not wish to furnish this information, please check the box at the bottom of the page and initial, n.,+,.r knik F1hn;r;ry and Rnn e dnc far onnh hou zehold member (see below for codes). TENANT DEMOGRAPHiC PI2011I11F. HH Mbr N Last Name First Name Middle Initial Race Ethnicity _ Disabled 1 2 3 4 5 6 The Following Race Codes should be used: I - White - A person having origins in any of the original people of Europe, the Middle East or North Africa, 2 - Illack/African American - A person hanging origins in any of the black racial groups of Africa, Terms such as "Haitian" apply to this category. 3 _. American Indian/Alaska Native - A person having origins in any of the originnl peoples of North and South America (including Central America), and who maintain tribal affiliation or community attachment. 4 - Asian - A person having origins in any of the original peoples of the Fa• East, Southeast Asia, or the Indian subcontinent; 4a- Aslan India 4e -Korean 4b -Chinese 4f -Vietnamese 4c --Filipino 4g -Other Asian 4d - Japanese 5 - Native I lawaiian/Other Pacific Islander- A person having origins in any of the original peoples of FlawaiI, Guam, Samoa, or other Pacific Islands; 5a -Native Hawaiian 5c- Samoan 51) -- Civaaianian or Chamorro Sd - Other Pacific Islander 6 - Other 7 - Did not respond. (Please initial below) Note, r4lnitlple racial categories nigi, be indicated as such: 31 - liner scan hidianlAlaska Na(lve & ii title, 14b -- While & Asian (Chinese), etc. The Following Ethnicity Codes should be used: I •- Hispanic - A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. Terms such as "Latino" or "Spanish Origin" apply to this category, 2 - Not Hispanic -- A person not of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. 3 - Did not respond. (Please initial below) Disability Status: 1 -Yes if any member of the household is disabled according to Fair Housing Act definition for handicap (disability): • A physical or mental impairment which substantially limits one or more major life activities; a record of such an impairment or being regarded as having such an impairment, For a definition of"physical or mental impairment" and other terms used, please see 24 CFR 100.201, available at htt l/l'ahhousing,coallegalacsearch/bud-regulations(24-cfr-100201-definitions. • "Handicap" does not include current, illegal use of or addiction to a control led substance. • An individual shall not be considered to have a handicap solely because that individual is transgender, 2 -No 3 - Did not respond (Please initial below) 0 Resident/Applicant: I do not wish to furnish information regarding ethnicity, race and other household composition. (Initials) _ (111tH) i. CTCAC Tenant Income Certification (May 2018) OAK #4819-2913-4472 v2 22 Planning Commission Resolution No. 2019-06 Page 26 INSTRUCTIONS FOR COMPLETING TENANT INCOME CERTIFICATION 7hisfoon is it) be completed by the owner or an arriboriaed reprererriative. Part 1- Devehopauent Data Enter the type of tenant certification: Initial Certification (move -in), Recertification (annual recertification), or Other. Ifother, designate the purpose ofthe recertification (i.e., it unit transfer, a change in household composition, or other state -required recertification). L iTedive Date Enter the effective date orthe certification. For stove -in, this should be the move -in date, For annual income reeertification's, this effective date should be no Inter thun one year from the 0*1ective date ofthe previous (re)certification. Move -hl Date Enter the most recent (laic the houschold tax credit qualified. This could be the move -in date or in ail acquisition rehab properly, this is nut the date the tenant moved into the unit, it Is the most recent date the management company income qualified the unit for tax credit purposes. Property Norne How tie home or tile development. County Filter the county lot, equivalent) fit which the building is located. TCAC11 linter the project inunber assigned to lite property by TCAC. Please include hyphens between lite state abbreviation, four digit allocating year, and project specific number. For e;eatnpie: CA -2010-12.3 RLN 11 Enter the building number assigned to the building (from IRS Fonn 8(09). Address Isnter the physical address ofthe building, including street number and aisle, city, state, and zip code, Irappiicable, CDLACN Uproject is awarded 4%bonds please enter the project number assigned to the property by CDLAC. Please include hyphens between the state abbreviation, four digit allocating year, and project specific another. For example: 16-436 Unit Number Enter the unit number. 8 Bedrooms Enter the number of bedrooms lu the unit. Square Footage Enter the square footage for the entire unit. Vacant Unit C fleck If unit was vacant on December 31 of requesting year. For example, for the collection of 201 I data, this would refer to December 31, 2011, Fart If - Household Composition List all occupants orthe unit. State each household mcnnber's rehitfonship to the head or houschold by using one ofthe following definitions: 11 Head of Household S Spouse U Unborn Child/Anticipated A Adult Co -Tenant O Other Family Nfennber Adoption or Foster C Child F troster child(ren)/odult(s) L Live-in Caretaker N None of the above Date of Birth Enter caeh houschold ntenlber's date of birth. student Status linter "Yes" if the houschold ntennber is it full-time student or "NO" if the household member is not It Full -tine student. Last hour Digils of Social Security For caeh tenant 15 yeti s of age or older, enter lite last four digits of lac social security Number another or the last fhur digits ofthe Illicit registration number. If the last four digits of SSN or alien registration is missing, enter 0000. Vor temtnls under age 15, social security number not required, although please enter 0000, If there are more than 7 occupants, use au additional sheet ofpaper to list the remaining household ntentbcrs and ttach it to the certification. CrCAC Tenant Income Certification (Mary 2018) OAK $4819-2913-4472 v2 23 Planning Commission Resolution No. 2019-06 Page 27 Part III - Annual Income See HUD Handbook 4350.3 for complete instruct tons ou verifying null calculating income, including acceptable forms of verification. from the third party verification ('mats obtained from each income source, enter the gross amount anticipated in be received fin' the twelve months from the offecdve rifle of the (re)certification. Complete a separaw line for each income -earning member. hist each respective household member number from Part 11. Include anticipated income only it'docunientation exists verifying pending employment, Ifany adult states zero-inconic, please note "zero" in the columns of Part Ill. Column (A) Enter the annual amount of swages, salaries, tips, commissions, bonuses, and otter income tion employment; distributed profits and/or mel Income from it business. Column (13) Enter the annual amount of Social Security, Supplemental Security income, pensions, military retirement, etc. Column (C) Enter the annual amount of income received from public assistance (i.e.,'FAN', general assistance, disability, etc,). Column (f)) Enter the annual amount ofaliniony, child support, unemployment benclits, or any other income regularly received by tine household. Row (E) Add the totals from columns (A) through (1)), above. Entcr this amount. Part IV - Income frorn Assets See HUD Handbook 4350.3 fat, complete instructions on verifying and calculating income from assets, including acceptable farms of verification. From the third pity, verification ibrnts obtained front each asset source, list the gross amount anticipated to be received during the twelve months from the effective (lute of the certification, if individual household member income is provided, list the respective household member number from Pnr(11 and complete it separate line Ibr each member. Column (F) list the type of asset (i.e., checking account, savings account, etc.) Column (G) Enter C (for current, if tine family currently owns or holds the asset), or i (for imputed, if the family has disposed of the asset for less than fair market value within levo years of the effective date of(re)certification), Column (11) (inter (he cash value of the respective asset. Column (1) Enter the anticipated annual income front the asset (i.e,, savings account balance multiplied by the annual interest rate), TOTALS Add the total ofColunn (Ii) and Cultural (I), respectively. if the total in Column (11) is greater than $5,000, you must do nn imputed calculation of asset income, Enter the'i'otai Cash Value, multiply by 0.06% and enter the anxtunl in (.l), Imputed income. Ron, (K) Enler the greater of the total to Column (1) or (,1) Rost, (L) I nlnl (Inas/ Household btcome Nrom all Sources Acid (E) and (1:) enol eater the total HOUSEHOLD CERTIFICATION AND SIGNATURES Ancr nil verifications of income and/or assets have been received and calculated, each household member age 18 or older must sign and date the Tenant Income Certification. For move -in, it is recommended that the'fenant Income Certification be signed no earlier than 5 days prior to the effective (late of the certification. Part V — Determination of Income Eligibility 'Total Annual Household Income from Linter the number from item (L). nil Sources Current LII ITC Income Limit per Enter the Current Movc-in Income Limit for tine household size— specifically, the max Family Size income limit for the federal 50% at, 60% set aside. Current Bond income Limit per Family Enter the Current most restrictive Move -in income Limit for the household size — specifically, Size the max income linnit incorporating both federal and in some instances more restrictive state standards as reflected in the 50% or 00% set aside detailed in the hood Regulatory Agreement, 5 CTCAC Tenant inconic Certification (May 2018) OAK #4819-2913-4472 v2 24 Planning Commission Resolution No. 2019-06 Page 28 I ousehold income at Move -ill For rceerliFicalions only. linter the household income. front the move -in certification, Household Size tit ivlove-in Enter the number of household members trent the move -in certification. Current federal 1,111 TC Income Limit x For recerlifications only. Multiply lite current Ll11TC Maxinuun Move -in income Limit by 140% 140% and enter the total. 1409/6 is haled on the Federal Set -Aside ol'20/50 or 40/60, its eleetcd by the owner for (lie property, not deeper largeling elections of 30"/,, 40%,45%, 50%, etc, Below, Indicate whether the hooschold income exceeds that total, If the Gross Annual Income it( recertification is greater than 140%ofihe LIIiTC Income Limit per Family Size it Move -in date (above), then the available unit rule Hurst be followed. Unit Mects Federal Income Restriction Check the appropriate box for the income restriction that the household meets according to at NOW is required by the federal set-aside(s) Ibr file project. Unit Meets Deeper Targethng Income If your agency requires int income restriction lower than the federal Nmit, enter the percent Restriction required. Part. YI - (tent: Tenant paid Monthly Rent Enter the amount the tenant pays toward rent (not including rent assistance payments such as Section 8). Federni Rent Assistance F.nter (lie amount of tent assistance received from it rederal program, if any. Non-lTdcr l Rent Assistance Enter the amount of ton -federal rent assistance received, if any. Total Monthly Rent Assistance (inter the tanounl of total rent aS5iStaaCC received, irony, Source of Federal Rent Assistance If federal rent assistance is received, indicate the single program source. Monthly Utility Allowance Enter the utility allowance, if the owner pays all utilities, enter zero, Other Monthly Non -Optional Charges Enter the amount of non -0 )tJq l charge,, such as mandatory garage rent, storage lockers, charges fill- services provided by the development, oto, Gross bfonthly Rent for Unit Enter the total ofTanant Paid Rent plus Utility Allowance and other non -optional charges, The total cony NOT include mounts other thnn Tenant Paid tient, Utility Allowances and other non -optional charges. In accordance with the definition of Gross Rent in lite §42(g)(2)(B), it cony not include any rent assistance amount. Maxhnurn LiHTC Rent Limit for this Enter the maxinuun allowable gross rent for the ani(. This amount must be the mnxinom limit annount allowed by the Current Income Limit per Fandly Size— specifically, the inax rent limit for the federal 50% or 00% scl aside, Maxinnan 1,111TC Bond Rent Limit for Ernter the maxinann allowable gross rent fm' the unit. 'itis announl must be the maximmn this unit amount allowed by the Current Income Limit per Family Size—specifically, file max rent incorporating both federal and in some instances more restrictive state standards as reflected in the 50% at- 60% set aside detailed in the Bond Regulatory Agrecncnl. Unit Meas Federal Rent Restriedon at Indicate the appropriate rent restriction that the unit meets according to what is re uirei by the tedoral set-itsidc(s) for the project. Unit Meets Bond Rent Restriction at Indicate the approprinte rent restriction that (he unit meets according to what is reg tit red by the federal and stale low for the project. Unit Meets Deeper'Targeting Rent iryottr agency requires it rent restriction lower than the federal limit, enter (he percent Res(riction at required. Part VII •. Student status [fall household members tire Rill time" students, Check "yes", Full-tinnc status is determined by the school the student attends. trill lensl one hooschold member is not it fill -lime stidcnl, check "no." 11 -yes" is checked, the appropriate exemption mus be listed in tate box to the right. tf tone of the exemptions apply, the household is ineligible to rent the unit, CTCAC Tenant Income Certification (May 2018) OAK 44819-2913-4472 v2 25 Planning Commission Resolution No. 2019-06 Page 29 Part VIII - Program Type Mark the program(s) for which this household's unit will be counted toward the property's occupancy requirements. Undcr each program marked, indicate the household's income status as established by this certificationtrecerti[ication. If the property does not participate in the HOME, 'Fax - Exempt Bond, A(Tordabic housing Disposition, or other housing program, leave those sections blank. Tax Credit See Part V above. HOME If the property participates in the HOME program and the unit this household will occupy will count towards the HOME program set -asides, mark the appropriate box indicting the household's designation. Tax Exempt Irthe property participates in the Tax Exempt Bond program; mark the appropriate box indicating lite household's designation. Bond AI DP If the property participates in the Affordable Housing Disposition Program (AIIDP), and this household's unit will count towards the set-aside requirements, select (lie appropriate box to indicate if the household is a VLI, Li or 01 (at recertirication) household. Other Ifthe property participates in any other anbrdabie housing program, complete the inronnnlion as appropriate, SiGNA'I'IIRF, 01� OWNUR/REPRESENTA'I'IVG It is the responsibility of the ornrcr or the owner's representative to sign and date this document immediately following execution by the resident(s), 'Ilnc responsibility of documenting and determining eligibility (including completing and signing the'i'enant Income Certification t'orm) and ensuring such documentation is kept in the tenant file is extremely impotiant and should be conducted by someone well trained in tax credit compliance, 'i'hcse instructions should not be considered a complete guide on tax credit compliance. The responsibility for compliance with federal program regulations lies with the owner of the building(s) for which the credit is allowable. PART IX. SUPPLEMENTAL INFORMATION Complete this poalon of the fornt at more -in and at meerNfteation's (only ifhonsehold composition has changed front the previous ,year's certiflcafion), 'I'cnant Demographic Profile Resident/Applicant initials Complete for each member of the household, including minors. Use codes listed on supplemental form for Race, Ethnicity, and Disability Stains. Ail tenants who wish not to furnish supplemental information should initial this section. Parent/Guardian may complete and initial for minor child(ren). CTCAC'fenant Income Certification (May 2018) OAK #4819-2913-4472 v2 26 Planning Commission Resolution No. 2019-06 Page 30