HomeMy WebLinkAboutStaff Report 4.E 10/21/2019DATE:
TO:
FROM:
SUBJECT:
- • i
October 21, 2019
Honorable Mayor and Members of the City Council through City Manager ' J -
Heather Hines, Planning Manager
Resolution Approving a Residential Density Bonus Housing Agreement for
the East Washington Commons Project located at 817, 821, and 825 East
Washington Street.
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving a Residential Density Bonus
Housing Agreement and Development Concession to increase the residential density of the
previously approved East Washington Commons multi -family project at 817, 821, Ind 825 East
Washington Street.
BACKGROUND
On May 10, 2016 the Planning Commission approved the East Washington Commons residential
project, including a Conditional Use Permit (CUP) allowing multi -family residential in the MU1 A
zoning district and Site Plan and Architectural Review (SPAR) construction of a 24 -unit apartment
building with associated landscaping, parking, and site amenities. Please see the Planning
Commission staff report at Attachment 3 for more project specific details.
Two one-year extensions have subsequently been approved administratively which have allowed
the approvals to remain valid. Prior to expiration of the second extension, the applicant applied
for a building permit for both the demolition and the construction. Subsequently the applicant
identified financial barriers to the construction of the project and submitted a request for a project
amendment to increase the residential density. All previous approvals remain valid at this time.
Project Description
The current project includes a Density Bonus and Development Concession, a Minor Use Permit
(MUP) and Administrative SPAR to amend the previously approved project. Each entitlement is
described in detail below. The project proposes to increase the overall density of the project by
adding four additional units within the approved building footprint. The resulting density of 38
units per acre exceeds the allowed density within the Mixed Use land use designation, and
therefore a 25% density bonus is requested.
Page 1
Density Bonus and DeveloBynent Concession
A Density Bonus has been requested to allow for an increased density of 38 units per acre in
exchange for offering two units at the very low-income level. Additionally, an associated
Development Concession has been requested to reduce the number of onsite parking spaces from
the 41 required by code to 38 spaces as provided for in the previously approved project.
The approval of a Density Bonus Housing Agreement is at the discretion of the City Council with
recommendation of the Planning Commission. The associated entitlements for the project as
discussed below cannot be approved until the Density Bonus Housing Agreement is approved and
recorded.
Minor Use Perinit
The project site is located within the boundaries of the MUTA zoning district, which specifies that
"Dwelling, Multiple" requires approval of a CUP. When the project was initially approved in
2016 the Planning Commission approved a CUP for the proposed multi -family development and
specifically for 24 multi -family units.
If the City Council approves the Density Bonus and Development Concession, the MUP will be
processed administratively to amend the previously approved CUP to provide for the increase to
28 multi -family units.
Administrative Site Plan and Architectural Review
Also, in 2016, the Planning Commission approved SPAR for the East Washington Commons
project. The applicant is proposing minor modifications to the originally approved project to
accommodate the increase of four units in the project. These changes are considered minor and
fall within the scope of Administrative SPAR as an amendment to a previously approved project.
If the City Council approves the Density Bonus and Development Concession, the Administrative
SPAR will be processed administratively. All conditions of approval included in the original
approval resolution will be carried forward in the amended SPAR approval.
Planning Commission Hearing
On September 24, 2019 the Planning Commission considered the project and approved Resolution
No. 2019-013 (Attachment 2) recommending the City Council approve the Residential Density
Bonus Housing Agreement associated with the proposed amendments to the East Washington
Commons residential project. The resolution was approved unanimously by the seven
commissioners present at the September 24, 2019 hearing.
There were several public comments provided at the Planning Commission hearing, including
those written comments provided in Attachment 6 and verbal comments that expressed parking
and traffic concerns related to the increased density. The consensus of the Planning Commission
was that the project was designed and situated well to increase housing density and provide
affordable units within proximity to transit and commercial uses. Commissioners supported the
minor design modifications to increase housing production and affordability.
Page 2
DISCUSSION
IZO Chapter 27
This chapter is intended to provide incentives for the production of housing for Very Low, Low
Income, Moderate or Senior Housing in accordance with California state law. By virtue of
providing for certain levels of affordable housing in a development project, a project is eligible to
exceed the density allowed by the applicable zoning and General Plan land use designation and
receive a prescribed number of development incentives or concessions. The IZO defines a
development incentive/concession as follows:
Concession or Incentive. Used interchangeably paeans such regulatory
concessions as specified in California Government Code Section 65915
subdivisions (d) and (h) including, but not limited to, the reduction of site
development standards or zoning code requirements, direct financial assistance,
approval of mixed use zoning in conjunction with the Housing Development, or ally
other regulatoa`v incentive which would result in identifiable cost avoidance or
reductions that are offered in addition to a Densitv Bonus. See Section 27.070 of
this chapter.
IZO 527.070 identifies development concessions or incentives that a project can utilize including
the following: reduced minimum lot sizes and/or dimensions; reduced minimum lot setbacks;
reduced minimum outdoor and/or private outdoor living area; increased maximum lot coverage;
increased maximum building height and/or stories; reduced on-site parking standards, including
the number or size of spaces and garage requirements; reduced minimum building separation
requirements; reduced street standards, e.g., reduced minimum street widths.
IZO §27.040 establishes the potential development bonus and number of incentives that a project
could receive by providing on-site affordable units at certain levels of affordability. Figure 10
found immediately below shows how the inclusion of a very affordable unit(s) can yield
development bonuses and incentives for project.
Percentage Verb Lora Income
Unit
5%
6%
....
%
20%
22.6%
25%
27.a
Ary+G
3 5%
—55%"
55 b
1
1
1
2
2
In accordance with State law, neither the granting of a Concession or Incentive, nor the granting
of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment,
zoning change, variance, or other discretionary approval.
Page 3
The project proposes to utilize the residential density bonus provisions allowed by California state
law and Chapter 27 of the IZO by providing for two on-site affordable units at the very -low income
level — an amount equal to eight percent of the base number of units (26 units) allowed by the
zoning/land use designation at the project site. The inclusion of the on-site very affordable unit
also allows the project to request one development concession or incentive and a residential density
bonus of 27.5 percent as allowed by IZO §27.040. A parking reduction has been sought by the
applicant as the development concession/incentive. Table 2 summarizes how Chapter 27 applies
to the project.
TABLE 2 — RESIDENTIAL DENSITY BONUS SUMMARY
Standard Project Description
Base Project Size (Number 22 The number of units proposed in the
of Units) project prior to receiving an eligible
density bonus
Affordable Units Proposed 2
The number of units in the base project
(Very Low)
that shall be dedicated for the required
term pursuant to CA Government Code
§65915(c) to very low-income
households (i.e. those earning up to 50%
of the Area Median Income Level as
published and periodically updated by
the CA Department of Housing and
Urban Development)
Amount of Density Bonus 25%
The amount of density bonus, calculated
Available (6 market rate DB
pursuant to CA Government Code
units allowed; 6
§65915 and IZO, for which the applicant
market -rate DB
is eligible.
unit proposed)
Available 1
The number of incentives/concessions
Incentives/Concessions
for which the project is eligible.
Eligible Parking Ratio 1 Bdnn 1
Reduced parking equal to four parking
space/unit
spaces has been requested by the
applicant, which would reduce the
2 Bdrm 2
required off-street vehicular parking
spaces/unit
requirement for the project from 41 to 38
spaces.
Supporting information for The project includes a request for the following
requested Incentives/Concessions that result in identifiable and actual
Incentives/Concessions cost reductions to provide for affordable housing costs:
• Reduced total vehicular parking space requirement
from 41 total spaces to 38 total spaces.
Page 4
The City shall grant Incentive(s) or Concession(s) requested by the applicant unless the City can
make a written finding, based upon substantial evidence, of any of the following:
1) The Incentive or Concession is not required in order to provide for affordable housing to
Very Low, Low, or Moderate -Income Households;
2) The Incentive or Concession would have a specific adverse impact, as defined in paragraph
(2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public
health and safety or physical environment or any real property that is listed on the
California Register of Historical Resources and for which the City determines there is no
feasible method to satisfactorily mitigate or avoid the specific adverse impact without
rendering the Housing Development unaffordable to Very Low, Low, and/or Moderate
Income Households; and,
3) The Incentive or Concession would be contrary to state or federal law.
The applicant must provide evidence as to why the Concession or Incentive is necessary to provide
the Restricted Affordable Units in accordance with Section 27.070 of this Chapter. Such evidence
shall include, but is not limited to, an explanation as to the actual cost reduction achieved through
the concession or incentive and how the cost reduction allows the applicant to provide the
Restricted Affordable Units, and any supporting documentation. The amount of actual cost
reduction is not stipulated by IZO Chapter 27 or state law. The reduction of required parking results
in cost savings to the applicant which further subsidizes the provision of the unit available to very
low-income household. Furthermore, the requested Incentive/Concession is not anticipated to have
a specific adverse impact upon public health and safety or physical environment or any real
property that is listed on the California Register of Historical Resources and would not be contrary
to state or federal law.
State density bonus law also establishes that in no case may the City apply any development
standard that will have the effect of physically precluding the construction of a development at the
densities or with the concessions or incentives permitted by state density bonus law. The full
parking requirement of 41 on-site spaces challenges the site and requires decrease in building area
to site the three additional parking spaces. Therefore, the full parking standard on the project site
could preclude the applicant from successfully building the project at the proposed density of over
30 units per acre.
Applicants for a density bonus, incentive/concession shall enter into a Density Bonus Housing
Agreement (Agreement) with the City that is subject to approval by the City Council. The approval
of the Agreement shall take place prior to approval of Minor Conditional Use Permit or
Administrative Site Plan and Architectural Review. Related to this project, the City Council must
first approve the Agreement prior the City acting of the project's MUP and SPAR request. The
Agreement must run with the land to be developed and be binding on all future owners and
successors in interest. Notably, the Agreement must stipulate that the term of use restrictions for
restricted affordable units for at least 30 years for Very Low units. Following execution of the
Agreement by all parties, the completed Agreement shall be recorded on the parcel to be
developed.
Page 5
IZO Chapter 27 stipulates that the affordable units must be consistent with the general size and
layout of market rate units in the proposed project. Therefore, the agreement includes the
requirement that the affordable units shall be one one -bedroom unit and one two-bedroom unit
consistent with the majority of units proposed in the project.
Staff believes all requirements of the Density Bonus ordinance have been addressed with the
proposed project. A draft resolution recommending approval of the Density Bonus and
Concession/Incentive is provided at Attachment I for the City Council's consideration.
Ia009[KK17UIU130
A notice of public hearing was published in the Argus Courier on September 10, 2019 and mailed
to all property owners and occupants within 1,000 feet of the project site. A public hearing sign
was also posted on the project site consistent with local requirements. One public comment has
been received in response to this noticing and is included at Attachment 7.
Written comments received prior to the Planning Commission hearing are included in Attachment
6.
ENVIRONMENTAL REVIEW
When the initial project was approved in 2016 the project was found to be categorically exempt
from the provisions of CEQA under CEQA Guidelines 15332 (In -Fill Development).
Additionally, the project was determined to not trigger any of the exceptions to the exemption
outlined in CEQA Guidelines Section 15300.2. The detailed discussion of the exemption that was
part of the original project is included for reference at Attachment 4.
The proposed Density Bonus, MUP, and Administrative SPAR include minor modifications to the
previously approved project to accommodate an additional four multi -family units. There is no
change proposed to the footprint of the building or the site layout from the project previously
analyzed. The addition of four units within the approved building is not considered a significant
change to the analysis and the exemption remains applicable. No further CEQA analysis is
warranted.
FINANCIAL IMPACTS
The project is a cost recovery project with time and materials paid for the applicant in line with
the cost recovery agreement on file for the project.
ATTACHMENTS
Attachment 1: Draft Resolution Approving the Density Bonus Housing Agreement
Exhibit 1: Density Bonus Housing Agreement
Attachment 2: PC Resolution No. 2019-013
Attachment 3: PC Staff Report, September 24, 2019
Attachment 4: Class 32 CEQA Exemption
Page 6
Attachment 5:
Application Narrative, August 6, 2019
Attachment 6:
Public Comments prior to PC meeting
Attachment 7:
Public Comment after PC meeting
Attachment 8:
Revised Plan Set
Page 7
ATTACHMENT 1
RESOLUTION OF THE CITY OF PETALUMA CITY COUNCIL APPROVING
OF A RESIDENTIAL DENSITY BONUS HOUSING AGREEMENT
FOR THE EAST WASHINGTON COMMONS PROJECT
LOCATED AT 817, 821, and 825 EAST WASHINGTON STREET
APN: 007-022-058, 007-022-055, and 07-022-033
FILE NO. PLSR 2019-0015
WHEREAS, On May 10, 2016 the Planning Commission approved Resolutions 2016-04 and
2016-05 approving a Conditional Use Permit and Site Plan and Architectural Review for the East
Washington Commons project, a 24 -unit apartment complex located at 817, 821, and 825 East
Washington Street (APN 007-022-058, 007-022-055, and 007-022-033); and
WHEREAS, At the same hearing on May 10, 2016 the Planning Commission reviewed the
California Environmental Quality Act (CEQA) evaluation and found the project to be categorically
exempt from CEQA under Guidelines 15332 (Infill Development); and
WHEREAS, on April 18, 2017 the City issued a one year extension for the project consistent
with the provisions of Implementing Zoning Ordinance Sections 24.010.) and 24.030.L; and
WHEREAS, on April 12, 2018 the City issued a one year extension for the project, consistent
with the provisions of hnplementing Zoning Ordinance Sections 24.010.) and 24.030.L; and
WHEREAS, Jerry A. Kler submitted, on behalf of property owner, an application for
modifications to previously approved Conditional Use Permit and Site Plan and Architectural Review
and including a request for a Residential Density Bonus and a Development Concession/Incentive to
modify the previously approved project to accommodate 28 units, an increase of four units (the
"Project"); and
WHEREAS, the Planning Commission held a duly noticed public hearing to consider the
requests for a Residential Density Bonus and a Development Concession/Incentive on September
24, 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
September 24, 2019, analyzing the Project, including the related CEQA exemption; 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, the Planning Commission reviewed the Residential Density Bonus Agreement
and by Resolution No. 2019-013 dated September 24, 2019, recommended to the City Council
approval of the Density Bonus Housing Agreement; and
WHEREAS, the City Council held a duly noticed public hearing to consider the Residential
Density Bonus and A Development Concession/Incentive on October 21, 2019 at which time all
interested parties had the opportunity to be heard; and
ATTACHMENT I
WHEREAS, at said hearing, the City Council considered the staff report dated October 21,
2019, analyzing the project, and including the exemption under CEQA guidelines; and
WHEREAS, public notice of the City Council 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 two on-site multi -family affordable units at
the very low-income level (approximately 7 percent of the proposed units); and
WHEREAS, IZO Section 27.030 states that the City shall grant either a Density Bonus or a
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 27.040.1), the inclusion of two on-site units
affordable to a very low-income household as part of the subject project entitles the project to a
residential density bonus of up to 25 percent above the base maximuin density of 30.0 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 27.040.1) and 27.070, the applicant has requested a
density bonus to increase the residential density to 38 units per acre 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 two units 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
Im
ATTACHMENT 1
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 38 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.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL 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 City Council makes the following findings:
a. The Project is consistent with the General Plan 2025 Mixed Use land use designation in that
the Mixed Use designation provides for a robust mix of uses, including residential at a
density of up to 30 units per acre
b. The Project is, for the reasons discussed in the September 24, 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), Policy 1-P-11 (Land Use
Intensification), Policy 1-P-27 (Innovative Design) Policy 2-P-5 (Aesthetic Character),
Policy 2-P-22 (Active Ground Level Spaces), Policy 2-P-23 (Urban Edge) 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 MUTA 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 October 21, 2019 staff report, all
supporting, referenced, and incorporated documents, and all comments received, the City Council
hereby approves the Density Bonus Housing Agreement attached as Exhibit I hereto and
incorporated herein by reference.
1-3
RESOLUTION 2019-13
CITY OF PETALUMA PLANNING COMMISSION
RECOMMENDING TO THE CITY COUNCIL APPROVAL
OF A RESIDENTIAL DENSITY BONUS HOUSING AGREEMENT
FOR THE EAST WASHINGTON COMMONS PROJECT
LOCATED AT 817' 821, and 825 EAST WASHINGTON STREET
APN: 007-022-058' 007-022-055' and 07-022-033
FILE NO. PLSR-19-0015
WHEREAS, On May 10, 2016 the Planning Commission approved Resolutions 2016-04 and 2016-
05 approving a Conditional Use Permit and Site Plan and Architectural Review for the East Washington
Commons project, o24 -unit apartment complex located ot8l7'82l'and 825East Washington Street
(/\PNOO7-022-058.007-O22-O55.and 007-O22-O33);and
WHEREAS, Atthe same hearing on May lO' 2016 the Planning Commission reviewed the
California Environmental Quality Act (CE{DA) evaluation and found the project to be categorically
exempt from CEQAunder Guidelines l5332(Infill Deve|opment);and
WHEREAS, onApril l8'2Ol7the City issued aone year extension for the project cnnsistontwith
the provisions ofImplementing Zoning Ordinance Sections 24.OlOj and 24.0301; and
WHEREAS, onApril l2'2Ol8the City issued oone year extension for the project, consistontvith
the provisions ofImplementing Zoning Ordinance Sections 24.OlOJand 24.0301; and
WHEREAS, Jerry A. K|er submitted, on behalf of property owner' on application for
modifications to previously approved Conditional Use Permit and Site Plan and Architectural Review
and including a request for a Residential Density Bonus and a Development Concession/incentive to
modify the previously approved project to accommodate 28 units, on increase offour units (the
"Project"); and
WHEREAS, the Planning Commission held oduly noticed public hearing toconsider the
requests for a Residential Density Bonus and a Development Concession/Incentive on September
24, 2019, at which time all interested parties had the opportunity to be heard; and
WHEREAS, otsaid hearing, the Planning Commission considered the staff report dated
September 24'20l9'analyzing the Project, inc|udingthena|o1edCEQAexemption;ond
WHEREAS, public notice ofthe Planning Commission hearing was published inthe 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, Peto|umu'sImplementing 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
ofthe City's Housing Element; and
WHEREAS, the project applicant submitted a request for a Residential Density Bonus and a
Planning Commission Resolution No. 2U|9'|3 Page
Development Incentive/Concession as allowed under IZO Chapter 27; and
WHEREAS, the project proposes to provide two on-site multi -family affordable units at
the very low income level (approximately 7 percent of the proposed units); and
WHEREAS, IZO Section 27.030 states that the City shall grant either a Density Bonus or a 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 two on-site units affordable to a
very low income household as part of the subject project entitles the project to a residential density
bonus of up to 25 percent above the base maximum density of 30.0 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 38 units per acre and reduce onsite parking by four
spaces; and
WHEREAS, the reduction in the required onsite parking results in cost savings to the applicant
which further subsidizes the provision of the two units 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 30 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. 2019-13 Page 2
2-2
NOW THEREFORE, BEkRESOLVED BY THE PLANNING COMMISSION AS FOLLOWS:
l. 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
u. The Project isconsistent with the General Plan 2025 Mixed Use land use designation hn
that the Mixed Use designation provides for a robust mix of uses, including residential
at o density of up to 30 units per acre
b. The Project is, for the reasons discussed in the September 24' 2019 Planning
Commission staff report, consistent with the following General Plan policies: Policy 1
P-2 (Efficient Land Use), Policy l -P-6 (Encourage Mixed -Use Oeve|opment)'Policy l -P -
ll (Land Use Intensification), Policy I -P-27 (innovative Design) Policy 2-P-5 (Aesthetic
Chonxctod' Policy 2-P-22 (Active Ground Level Spaces), Policy 2-P-23 (Urban Edge)
and Housing Element Policies 1.1 (Encourage Residential Development), 12
(Optimize Development Potential), and 4.2 (Affordable Housing Produotion).
c. The Project is consistent with all development standards of the MU 1 A zoning district,
including but not limited to, those pertaining to uses, setbacks, building height, floor
area ratio, and parking.
d. The Project bconsistent with all requirements for o Density Bonus with V Concession
as outlined in |ZO Chapter 27 (Residential Density Bonus) and California state density
bonus |Vvv.
3. Based onits review ofthe entire record herein, including the September 24.2Ol9Planning
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 I hereto and
incorporated herein by reference, and including a modification to the agreement to specify
that only one ofthe affordable units shall beonthe first floor.
Planning Commission Resolution No. 20/Y-/3 Page
2-3
ADOPTED this 24th day of September, 2019, by the following vote:
Commission Member
Councilmember
McDonnell
Chair Marzo
Vice Chair Alonso
Bauer
Gomez
Potter
Streeter
ATTEST:
Aye
R
Heather Hines, Commission Secretary
No Absent
Scott Alonso, Chair
APPROVED AS TO FORM:
GlUirtl"i1
Lisa Tennenbaum, Assistant City Attorney
Planning Commission Resolution No. 2019-13
Page 4
2-4
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: 007-022-058, 007-022-055, and 007-022-033
AFFORDABLE HOUSING REGULATORY AGREEMENT
/_1►J 17
DECLARATION OF RESTRICTIVE COVENANTS
by and between
THE CITY OF PETALUMA
and
STEPHEN BEREZIN
Density Bonus Housing Agreement
Planning Commission Resolution No. 2019-13 Page 5
2-5
This Affordable Housing Regulatory Agreement and Declaration of Restrictive
Covenants (this "Agreement") is entered into effective as of
("Effective Date") by and between the City of Petaluma, a California municipal
corporation and charter city ("City") and Stephen Berezin ("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 817, 821, and 825 East
Washington Street in the City of Petaluma, California, known as Sonoma County
Assessor's Parcel Nos. 007-022-058, 007-022-055, and 007-022-033, 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 twenty-eight (28) apartments (the "Project").
C. On May 10, 2016 the Planning Commission of the City of Petaluma
("Planning Commission") approved a Conditional Use Permit and Site Plan and
Architectural Review for the East Washington Commons Project with 24 units as
outlined in Planning Commission Resolution Nos. 2016-04 and 2016-05.
D. On August 8, 2019, the Owner submitted an application for a Density
Bonus and modifications to the previously approved Conditional Use Permit and Site
Plan and Architectural Review to increase the project to 28 units, including two units
affordable to very low income households.
E. On September 24, 2019, the Planning Commission considered the
Density Bonus for the modified project and recommended approval of the Density
Bonus to the City Council as outlined in Planning Commission Resolution No. 2019-13.
D. On October 21, 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 administrative approval of modifications to the previously
approved Conditional Use Permit and Site Plan and Architectural Review and the
execution and recordation of this Agreement.
E. 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) one -bedroom
unit and 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 Units").
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.
F. The purpose of this Agreement is to satisfy the requirements of the
Planning Commission Resolution No. 2019-13 Page 6
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Density Bonus Ordinance and a future CUP and SPAR condition of approval that will be
considered administratively at future date, 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.
Incorporation 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 one (1) one -bedroom (approximately 997 square feet)
and one (1) two-bedroom unit (approximately 1,052 square feet) in the Project that are
required to be rented to Eligible Households at Affordable Rent in accordance with the
Planning Commission Resolution No. 2019-13 Page 7
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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.
seq.
"Density Bonus Statute" means California Government Code Section 65915 et
"Effective Date" is the date set forth in the preamble to this Agreement.
"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 ("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).
2. Affordability Restrictions.
2.1 Affordabilitv 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, two 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 Units, 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
Planning Commission Resolution No. 2019-13 Page 8
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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 Units to condominium or cooperative ownership or sell condominium
or cooperative rights to the BMR Units during the term of this Agreement. The BMR
Units must be occupied as the tenant's principal residence. Subleases and
assignments are not permitted except to Eligible Households at an Affordable Rent.
2.4 Desiqn; Amenities. The design, appearance, and general quality of the
BMR Units shall be comparable to that of the unrestricted residential units in the Project.
The BMR Units 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 Units must contain a dishwasher, refrigerator, garbage disposal,
cooking facilities and laundry facilities. The BMR Units 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 Unitss 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 Marketinq BMR Units; Use of City and County Lists of Prospective
Tenants. Owner shall offer the BMR Units 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
Units, 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
Units 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 Units, Owner shall provide a certification to City in form approved by City
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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 Units. (Attachment C)
3.4 Compliance with Fair Housinq Laws. Owner shall comply with all state
and federal fair housing laws, rules, regulations and guidelines in the marketing and
rental of the units in the Project. Owner shall accept as tenants of the BMR Units, 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 anv 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 garaaraah (1) of subdivision
(a) 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 Marketinq and Manaqement Plan; Restrictions on Subleasinq and
Assignment. In marketing the BMR Units, 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 Units for City's review and approval prior to marketing the BMR Units.
The lease or rental agreement for the BMR Units 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.
Planning Commission Resolution No. 2019-13 Page 10
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3.7 No Short -Term Rentals. Prospective tenants of the BMR Units must sign a
written statement acknowledging their agreement that the BMR Units 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. Reporting 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 Units, 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 identity of each
household member; (b) the tenant's total household Gross Income; and (c) a
certification that the tenant is occupying the BMR Units 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 each of the BMR Units: (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 Units 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.
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(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 Units 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.
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 Convevance of Propertv. 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 Reconvevance. 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. Bindinq 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
Planning Commission Resolution No. 2019-13 Page 12
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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;
(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. Propertv Manaqement; Repair and Maintenance.
7.1 Manaqement 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
Planning Commission Resolution No. 2019-13 Page 13
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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
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 Coveraqe. Not required for this agreement.
7.5 Property Damaqe 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. Mortaagee 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.
Planning Commission Resolution No. 2019-13 Page 14
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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,
Planning Commission Resolution No. 2019-13 Page 15
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or in equity;
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. Indemnitv. 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.
Planning Commission Resolution No. 2019-13 Page 16
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City: City of Petaluma
11 English Street
Petaluma, CA 94952
Attention: City Manager
Owner: Stephen Berezin
529 Michael Drive
Sonoma, CA 95476
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 Agencv
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 Citv. 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, Emplovees and Aqents. No
member, official, employee or agent of the City shall be personally liable to Owner or
any successor in interest, in the event of any default or breach by the City, or for any
amount of money which may become due to Owner or its successor or for any
obligation of City under this Agreement.
12.8 Headinqs; 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
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
Planning Commission Resolution No. 2019-13 Page 17
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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 Attornevs' 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 Aqreement; 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.
Planning Commission Resolution No. 2019-13 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.
A r
RTJ ki 1:4
W
By:
Print Name:
Title:
CITY:
City of Petaluma, a California municipal corporation and charter city
M
Peggy Flynn, City Manager
ATTEST:
Claire Cooper, City Clerk
Eric W. Danly, City Attorney
SIGNATURES MUST BE NOTARIZED.
Planning Commission Resolution No. 2019-13 Page 19
2-19
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)
Planning Commission Resolution No. 2019-13 Page 20
2-20
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)
Planning Commission Resolution No. 2019-13 Page 21
2-21
Exhibit A
Real property situated in the City of Petaluma, County of Sonoma, State of California, State of
California described as follows:
APN: 007-022-058, 007-022-055, and 007-022-033
Planning Commission Resolution No. 2019-13 Page 22
2-22
Income Verification Form
TENANT INCOME CERTIFICATION Effective Date:
1-1 fnitiall Certirication 0 Recertification 0 Other Move -in Date:
(M,%l,DD-Y)'YY) - -----
PART I - DEVELOPMENTI)AIA
Property Name: Count -v: TCAC/k BIN 4:
Address; If applicable, CDI,A('#:
jUnit Number A Fledrociins: — . Square Footage:
PART 11. 1101 ISEHOLD COMPOSITION
0 Vacant (Cheek if unit ms vacunt on Ducembut 31' of the Effective Date ftw)
fill Middle Rcheiorrsh%p to Head Date of 13 u1b F/7" Student Last 4 digits of"
Mbr # Last Name First Name Initial i ol'Household (t,1M/f)l),,YYYY) fY or N) Social Security
I IFA D
2
3
4
5
6
7
L PART Ill. GROSS ANNUAL INCOME (USE ANNUAL AMOUNTS)
fill (A) (B) (Cl
NIbr# Employmeot or wagws, Soo. securimpemsions Public Assistance I Other Irrempe
11
TOJ'Al,S, 1 $
Add totals ftoin (A) through (r)), above
TOTA 1, FINCOME (E): III's
I
PART' 11; INWdAmp 17Df1kA4 A QQU1rQ
a T)
!tarter # f lype of Aqscl of Cash Value DfAset Annual Income from Asso
TOTALS:
Unter Colunin (H) load Passbook, Rate
ll,nver $5000 $ x 0,061N, (J) troputed fricartle S
EnWr thL preater ol'the total oftolumn 1, or J: imputed incorue TOTM, INCOME FRONI ASSETS (K)
(1)'1'utal Annual Housebold income frown all SOLIMCS [Add (F) + (K,)]
HOUSEHOLD CERTIFICATION & SIGNATURES
'the infionvation ren this K-rRi wM he used todemwinc maximum incurne el±gjbflfly.
t'[4iTCnk anklCltbrltCfl anilEFal 9niter11C- tfl4 L' atT,rCC in e30Ettfj' t1:Cle1SA4lltrrtl ntl1144e(liitC'ly' tiglnEt a:1}' E7:CYf711Cr ea° ills I?k'AICCI".Oldl t17aAa'krlg; ePS1t ,tf }rt R, t1r11t 411' ;In}' Dtt't}' fti<.*.r1717C1'
moving; in,
Under penalties of'perjury, 11wc certity that the inforniatior, pru.tnted in this Certification is taw and accuraw to the bcst ofmylonr knowledge wiJ befief. "lire
furthel toolersionds that ploviding filke hCzoin cons"ituTcs ao ac°'OffiZHJL FflW, T11"gleading or incomplete inronnatior. IS result in the
leTrooration elf the (ease agrevinew
Sig nature (F)WO SiRnatwe
Signaolic (Dao�) signatxv
eDure,
(Dwe)
(_"l (° A(" "Tenant Income Certification (May 2018)
Planning Commission Resolution No. 2019-13 Page 23
2-23
PART V. DE,rERMINATION OF INCOME ELIGIBITATY
TOTAI, ANNUAL I IOUSE1 f0l,U)
a. Tax Credit 0 b, FIOMF 11
INCOME FROM A1,1, SOURCHS:
(L AJTDP 0 e. n
From item (U) on page I
Current Federal IJJJTC Income Uimit per
See Part V above. hicowe Status
Family Size:
Income Status
IfApplicible, Current federal Bond
0 50% AMG1
Income 1,imit per Fninily Size:
S
Household Income as of'Move-in:
$
Tenant Paid Monthly Rent: $
Monflilythility AdoNvance: $
Other Monthly Non -optional charges:
a. Tax Credit 0 b, FIOMF 11
GROSS MONTHLY RENT FOR
(L AJTDP 0 e. n
(Tenant paid rent plus Utility Allowance
c
�j
other non -optional c; nirges)
See Part V above. hicowe Status
Maximum Federal UJHTC Rent I.imit for
Income Status
this unit:
0 50% AMG1
If Applicable, Maximum Federal & State
11 60% Adv G1
1,11117C Bond Rent I.inrt for this unit:
$
Unit Meets Federal Rent Restriction at; ❑ 60% El 500%
IfApplicable, Unit Meets Bond Rent
Restriction at: 60% 11 5(F`,.
Unit Meets DectrerTarguling Rent
Restriction at: M Other: — - %
Unit Mects Federal
Income Restriction at:
El 60% El 50 % .
Unit Meets Deeper Targeting
Income Restriction ,W
n Other 11,10
RECERTIFICATION ONLY:
Curt -cut Federal LJITTC
Income Limb x 1,10%:
Household Size al move -in:
Household Income exceeds
140% at recertification:
F1 Yes nNo
Federal Rent Assistance: $_ *Sourcc:__
Non -Federal Rent Assistance: $ (*0-8)
Total Monthly Rent Assistance; $
*Source of Federal Assistance
I **ITUD Muld-Family Project Based Rental Assistance (PBRA)
2 Scininn 8 Moderate Rehabilitation
3 Public Housing Operating Subsidy
4 FI0Mh Rental Assistance
5 HU D Housing Choice Voucher (1ICV), tenant -based
6 1 IUD Project -Based Voucher (PBV)
7 USDA Section 521 Rental Assistance Program
8 Other Federal Rental Assistance
0 Missing*
'* (PBRA) Includes: Section 8 New Construction/Substantial Rehabilitation;
Section 8 Loan Management-, Section 8 Property Disposition; Section M2
Project Rental Assistance Contiacts (FRAC)
PART VII. STUDENT STATUS
*Student 1-,xplanatiow
ARFAJ,l, OCCUPANTS FUUI TIMF STUDF.NTS? lfyes, Enter student explanation* I AFDC / TANF Assistance
(also attach documentation) 2 Job Training Program
El yes 1:1 no 3 Single Parent/Dependent Child
4 Mairied/Joad Return
Enter 5 Former Foster Care
1.5
PART VIII. PROGRAM TYPE
Mark the prograin(s) listed below (a. through c.) for which this household's unit will be counted toward the property's occupancy
requirements. Under each program marked, indicate the household's income status as established by this
a. Tax Credit 0 b, FIOMF 11
c. Tax Exempt Band 11
(L AJTDP 0 e. n
f7vanlp of Program)
See Part V above. hicowe Status
Income Status
Income Status
11 < 50% AMGI
0 50% AMG1
0 50% AMGI Ineonle 9012(s
11 60% Adv G1
0 60% ANIG 1
0 80% AMGI 0
11 80% AMCI
0 80% AMGI
0 01* 0 01"
0 of**
0 of**
"Upon recertification, household was determined over-ineome
(01) according to eligibility
requirements ofthe prograni(q) marked above.
I SIGNATURE OF OWNEIVREPRE SENTATI VE I
Based on she, representations herein and upon the proofand documentation required to be submitted, the individual(s) named in Part 11 ofthisTenant
Income Certification ix/are eligible tinder the provisions of Section 42 offlic Internal Revenue Code. as amended, and the Land Use Restriction
Agrecimni (irapocabic), to live in a unit in this Project.
SIGNATURE. OFOWNEWREPRESENTATIVE DATE
14
Planning Commission Resolution No. 2019-13
CTCAC Tenant Income Certification (May 2018)
Page 24
2-24
PART IX. SUPPLEMEMA L INFORMA 770N FORM
The California Tax Credit Allocation Committee (CTCAC) requests the following information in order to comply with the Housing
and Economic Recovery Act (FIRRA) of 2008, which requires all Low Income Housing Tax Credit (LIHTC) properties to collect and
submit to the U.S. Department of I tousillf; and Urban Development (IfUD), certain demographic and economic information on tenants
residing in LTHTC rinanced 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 riot wish to furnish this information, Please check the box at the bottom of the page and initial.
Enter both Ethnicity and Race codes for each household member (see below for codes).
TENANT DEMOG . RkPH IC PROFILE
HH Middle
lvtbr 11 -Last Name First Name Initial Race Ethnicilv Disabled
4
5
6
7
The Following Race Codes should be used:
1 --White A person having origins in any ofthe original people of Europe, the Middle East or North Africa.
2 , B lack/A frican American —A person having origins in any of the Mack racial groups or Africa. Terms s lich as "Haitian" apply to this
catogory,
3 American Indian/Alaska Native —A person having origins many ofthe original peoples of'North and South America (including Central
America), and Avfio maintain tribal afflitiation or community attachment.
4 — Asian — A person having origins in any of the original people-, of the Far East, Southeast Asia, or the Indian subcontinent:
4a—Asian India 4e—Korean
,lb- Chinese 41', - Vietnamese
4c - Filipino 4g-- Other Asian
4d Japanese
5 -- Native Ilawaiian/OtherPacific Islander -A person having origins in any of the original peoples of Flawaii, Guam, Samoa, or other
Pacific Islands:
5a—Native Flawarian 5c. Samoan
5b (hainianian or Charnorro 5d - Other Pacific Iflaader
6 — Other
7 — Did not respond. (Please initial below)
Note:11tiltiple racial caiegorics niaY be indiceliedas such: 31— Rmerican Indian/WaskaNadve & 11421te, 14b - 11,70e & dsian (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 culturc, or origin, regardless ofrace.
Terms such as "Latino" or "Spanish Origin" apply to this category.
2 — Not Hispanic A person not ofCuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless
o P race.
3 -- Did not respond. (Please initial below)
Disability Status:
I Yes,
If any inernbcr or the hotischold is disabled according to Fail' Housing Act dermition for handicap (disability):
• A physical or mental impairaleal which substantially limits (inc at 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 1014.241, available at 10020 1 -definitions.
• "Handicap" does not include current, illegal use ofor addiction to a controlled substance.
• An individual shall not be considered to have handicap solely because that individual is transgender.
2- No
3 — Did not respond (Please initial below)
Cl Resident/Applicant: I do not wish to furnish information regarding ethnicity, race and other household composition.
(initials)
(1111#) 1. 2, 3. 4. 5, 6a
Planning Commission Resolution No. 2019-13
CTCACTenant Income Certification (May 2018)
Page 25
2-25
INSTRUCHONS FOR ('OMPLETING
TENANT INCOME CERTIFICATION
This Ewell is to he contpielcel lndic onorter or on alilhori":ed pVpresenhlriev.
Vert I - Develtiplitc-111 Dala
Enter the type Of tellaill cell ificalion: Initial Cerlificaite-In (Ilwvc-in), Rccrrtifierifical (alinnal recerrifictil ion ), or Oilier. I fnflicr, designate the purpose
OF 1ho recut tifrearion fix, a unit transirl" a change in holischold composition, or other nate-required recertificadmi).
Effective Dale
Enter the e1kctivc dale orthe ueilifi(3ifilrn. For nelve-in, this should be the niove-in dale,
For annual income recertification's, this efibetive date should be no Liter linin one year
From the efi6clive dale of prcvious (rc)cer6fiwAion,
Move -11i ]),lie.
Enter the gnosi rt" cra lki1v the houscliold lax credit quatified. This could be the Trarve-in
dale or in air acquisition rchah property'. this is net the (Nite tile tenant moved into the
Iran, it is the niost reccid date ffic nitinappmenf company incona! qualified the unit for
bikx cickik purpows,
Property Naine
Filter file Ininic of deveiopillent.
Finer the cotinty for cqoivalent) fit which fire huMing is located,
"l-CA01'
Friber the prqiect number assigned to the properly by TCACPlefisc include hyrrhow,
buiNveen the aate abbreviation, four digit allocating year. and project Specific number.
For _ C!,\,_ 'A-2010-1 23
BIN 4
1iincr thu building number ilS.Sigrud to the building (front IRS FoRn 8609).
Address
Enwr the physic"ll ilddrese, cif huilding, including strect number anti nainc� vity, sltac.
i Ind zip code,
Itapplicable, (,'Dl,A(.*
Iffli-qjeci is awardvil 4%bonds please enter file prqjcct number assigned tel the property
by CDFAC. Plexw hichide hyphens hetween the smite abbreviation, Four dig il alloenfing
)Tar, alld J)R�jCCI S,JlVeifk 1111albUr, FOr VXaMj)1e: 16-430
Unit Munlict
Filter the Imit Inullber,
it Bedronars
Filter (lie rjundwr of bedr000rs in the unit,
`quart= 17oonige
Fwer the square f6otage fior the endiv, unit,
Vacant Unit
Check ifanit NNas vacant on Dueernhur 31 of ic(luvAing year. For exanipic, l6r Ifiv.
e,peetion ojj�
, vVotlkl IrCie, to I)OUVniber 31, 201),
Part 11 - Housdivid ( I olliflosition
Li"a all occupants ofthe ludf, State ellull household Itlen)[wr's rehitionship to the head ol'houschold by usinlit one of1he lblIoNvint, definitions:
Il I Icad of flouschold S Spouse tj I hiborn Child!Aliticipated
A Adult Co -Tenant 0 Other Fandly Meniber Adoption or Foster
C Olild I' Foster cl1fld(rc1))/tId"lt(s)
L, Live-in Caretiker N None of the above
Date ofltith Filter cach homehold inctnber's khte ofbirlh.
Student Status Filler "Ycs" ifthe 11mlsellold member is a fitill-time snident or "I`)()'" il'ilic houschoid
ineinbct, is not a filfl-tine sttldcn!.
I .tisl Fuur Dig
!iis ofSocial Security For cach tcnaW 15 N cars ofage or oider, entcr tire last tbor digils of the social &ccurily
Nuniber nuothcr Or the luel lbur kliviis oftlic alien regisiration number, If elle last tour digits of
SqN (it, alien Tegisnation is inis-anti, enter 0000, For tevaras under age 15, social m,urity
number not requh,U although please enter- 00W
fthere are Inure than 7 occupants, use ,III addidonal gh"cl of paper to list tile remaining, holischohl Illembers and attaell it to the certification.
11
Planning Commission Resolution No. 2019-13
C FCA( "Tenant Income Ccitificalion (May 2018)
Page 26
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Part III - Annual Income
See ITUD Handbook 43503 for complete instructions on verifying and calculating income, including acceptable farms ofverification.
From the third party verification forms obtained from each income source, enter the gross amount anticipated to lie received for the t-vvelve months
from the effective date ofthe (re)certification. Complete a separate line for each income-carning member. List cacti respective household member
number from Part Ili Include anticipated income only i f documentation exists verifying pending employment. Ifany adult states aero -income, please
note "zero" in the columns of Part [11.
Column (A.) Enter the annual arnount ofwages, salaries, tips, corrumissions, bonuses, and other incorne from employment:
distributed profits and/or net income from a business,
Coluirm (B) Enter the annual amount of Social Security, Supplemental Security Income, pensions, military` retirement, etc.
Colman (C) Enter the annual amount of income received from public assistance (i.e., TANF, general assistance, disability,
cic.).
Column (D) Enter the annual amount of alimony, child support, unemployment benefits, or any other income regularly
received by the household.
Row (E) Add the totals from columns (A) through (1)), above. Enter this amount,
Part IV - Income from Assets
See HUD Handbook 4350.3 for complete instructions on verifying and calculating income from assets, including acceptable forms of
verification.
From the third party verification forms obtained from each asset source, list the gross amount anticipated to be received during the twelve months
from the effective date ofthe certification. If individual housclund member income is provided, list the respective household tnerribur number from
Part 11 and complete a separate line for each member.
Column (F) Listflie type ofasset (i.e.r checking account., savings account, etc.)
Column (G) Enter C (for current, if the family currently owns or holds the asset). or I (for imputed, if the flarnily his disposed
ofthe asset for less than fair market value within two years ofthe effective date of
Column (11) Enter the cash value ofthe respective asset.
Column (1) Enter the anticipated annual income from the asset (i.e., savings account balance multiplied by the annual
interest rate).
TOTALS Add the total of Column (IT) and Column (1), respectively.
Ifthe total in Column (11) is greater than 55,000, you must do an imputed calculation ofasset income. Enter the Total Cash Value, multiply by
0.06% and enter the amount in (.1), Imputed Income.
Rou, (X.) Enter the grealor oj'lhe total h? Cohonn (7) or (Y)
Rost, (L) 7Wal Ilanual Housed uld hicome b'rom all Sources Add (g) and (K) ajid enter the total
HOUSHIOLD CERTIFICATION AND SIGNATURES
After all 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 Tenant Income Certification be signed no earlier than 5 days prior to the
effective date ofthe certification.
Part V — Determination of Income Eligibility
Total Annual Household Income front Enter the number front item (,).
all Sources
Current LITFFC Income Limit per Enter the Current Move -in Income I.bah for the household size — specifically, the max
Family Size income limit for the federal 50% or 60%sctaside,
Current Bond Income Limit per Finally Enter the Current inost restrictive Move -in Income Limit for the household size -- specifically,
Sirs the max income Inuit Incorporating both federal and in some instances more restrictive state
standards as ref1cctud in the 50% or 60% set aside detailed in the Bond Regulatory
Agreement,
CTCAC Tenant Income Certification (Ni lay 2018)
Planning Commission Resolution No. 2019-13 Page 27
2-27
Household Income at Move -in For recurlifiQations only. Enter the household incturre frorn the rnove-in Ucrtificalion,
Household Size at Move -in Enter [lie number of household members from the move -in certification.
Current Federal 1,11FIV Income Limit x For recertifications only. Multiply the current Jjljrf(', MtrXinfula Move -in Income Limit by
140%
140% and enter the total. 140% is based on the Federal Set -Aside of 201,90 of- 40160, as
elected by the owner for the property, not deeper targeting elections crt`30%, 40%, 45%,
50%, etc, Below, indicate whether tire household income exceeds that total. If file (4-0,Ss
Annual Inconic at recertification is greater than 140% ofthe 1,,1111 t � income I,imit per Family
Size fit Move -in date (above), their tire available unit rate must be fifflowed.
Unit Meets Federal Incorne Restriction
Check the appropriate box for tire income restriction that the household niects according to
at
what is required by the Ueral set-aside(s) for the project.
Bait Mears DeeporTni-peflup, income
if gout' agency rcqkiir(:% an mcallic restriction lower than the Federal finol, enter the percent
Restriction
required.
Part 111- Rent
Tenant Paid Monthly Rent
Filter the arriould tile tenant pays to%vard rent (not including rent assistancv Payments such Is
Section 8).
Federal Kent Assistance
Farcr the amount offend, assistance rccuived front a fedunfl progralri, irany,
Non-federal Rent Assistance
Enter the amount offron-federal refit assistancu received, ifary,
Tolal Monthly Rent Assistance
hinter the arnount of lotal refit assistance received, ifany.
Source of ederal Refit Assistance
If federal rent assistance is received, iudicate the single program source.
Monthly I Itilily Allowance
Enter the utility allowance, If the own" pays all utilities, enter zero,
Other Monthly Noci-Optional Charges
Enter the amount charpes, such as mandatory garage refit, storage lockers,
charges for services provided by the development, etc.
Gross Nlonflity Refit for Unit
Enter the total of-Ccriant Paid Rent phis Utility A1107WRTICC and other non -optional charges.
']'he total may NOT include ranoutu,; other than 'Tarrant Paid Refit, I Itifity Allowances and
other non -optional charges, 11) accordance with the definition of(lross Rent in LRC
§42(g)(2)(B), it may not include any rent assistance aniount.
Maximum JAHTC Rent Limat for this
Enter the inaximurn allowable gross refit for the unit Thiq amount trarst be the maximum
unit
amount allowed by the; C.urre.tit Income Limit per FaTody S17e specifically, the nraN rent
fivoit for the 50% of- 60% set asidv_
Maximum 1,111'1'(' [lend Rent Limit for
Enter the inaxinfuni allowable gros�s refit lbr the an 11isantount must be life ina\lraulri
this unit
amount allowed by the Correct Income Lifilit par balmily Size - Specifically, the roax refit
incorporating both federal and in some instances more restrictive state t,tandards as reflected
in the $ V/6 or 60% set as de dchn led iii the Bond Rego latory Agreement.
Unit Meets Federal Rent Roqtrio(imi at
indicate the appropriate iefu restriction that the fruit meets acemding to what k—neAquKd try
the federal sct-aside(s) for the protect,
Unit Meets Bond Rent Restriction at
Indicate the appropriate refit re%iriction that the unit fricersaccording to what is CCcytilred by
the federal and slate kriv for the, projcol.
Unit Meets Deeper Targeting Rent
If your agency requires a refit restriction lower than [be federal limit, enter the Percent
Restrict inn at
required,
part it - Stwitirl Status
Fall household finernbors are fill time* students, check "yes". Full-time status is determined by the school the student intends. Val least one
household mcinher is not a Full-time student. clrcck "no."
11"yes" is checked, the appropriate exemption must he listed in the box to the right ifrionc ofthe exemptions apply, the household is inctigibjeto
rent the unit.
Planning Commission Resolution No. 2019-13
CTCAC Teener Income Certificalion (May 2018)
Page 28
2-28
Part Vill — Program Type
Mark the program(s) for which this household's unit Nvill be counted toward the property's occupancy requirements. Under each program marked,
indicate the household's income status as established by this coilificationlrecurtification. Ifthe property does not participate in the 110 IE, Tax -
Exempt Bond, Affordable Housing Disposition, or other housing program. leave those sections blank.
lax Credit See Part V above.
I TOME If the property participates in the I IOME program and the unit this household %vi II occupy will count towards the HOME program
set -asides, mark the appropriate box indicting the household's designation.
Fax Excropt if the property participates in the Tax Exempt Bond program; mark the appropriate box indicating the household's designation.
Bond
AI DP Ifthe property participates in the Affordable Housing, Disposition Program (AI IDP)„ and this honschold's unit will count towards
the set-aside requirements, select the appropriate box to indicate ifilic household is a VLI, LI or Of (at recertification) household.
Other Ifthe properly participalus, in any other affordable housing prograrn, complete the information as appropriate,
SIGNATURE OF ONVINER/REPIZESENTATIVE
11 is the responsihility of the owner or the oiwier's representative to sign and date this document immediately following execution by 11W TCsidcnt(s).
The responsibility ofdocurnenting and determining eligibility (including completing and signing the Tenant income Certification form) and ensuring
such documentation is kept in the tenant file is extremely important and should be conducted by someone well trained in tax credit compliance.
These instructions should not be considered a complete guide on tax credit compliance. I'lic responsibility for compliance Nvith federal program
regulations lies with the owner of the building(s) for which the Credit is allowable.
PART IX, SUPPLEMENTAL INFORMATION
Complete this portion of theforin at njore-in and at recertification's (only if household composition has changeelftrint theprevious
year '.v certificaffint),
Tentru Demographic Profile Complete for each member oCthe household, including minor,,. I Pse codes listed on
supplemental form for Race. Ethnicity, and Disability Status,
Resident/Applietint Initials All tenants who wish not to furnish supplemental infoirnation should initial this section.
Parvirt/Guardian may complete and initial liar minor child(rcu).
Planning Commission Resolution No. 2019-13
CTCAC Tenant Income Certifitcation (May 2018)
Page 29
2-29
DATE: September 24, 2019 AGENDA ITEM NO. 8A
TO: Planning Commission
FROM: Heather Hines, Planning Manager
SUBJECT: EAST WASHINGTON COMMONS AMENDMENT
Density Bonus and Development Concession
817, 821, 825 East Washington Street
File# PLSR-19-0015
RECOMMENDATION
It is recommended that the Planning Commission adopt a resolution recommending that the City
Council approve a Density Bonus with one Development Concession to increase the residential
density of the previously approved East Washington Commons multi -family project.
As required by Chapter 27 of the Implementing Zoning Ordinance (IZO), a Density Bonus
Housing Agreement must be approved by the City Council and recorded prior to formal action
being taken on the other requested entitlements for the East Washington Commons Amendment
project. In addition to the Density Bonus and Development Concession, the application includes
requests for a Minor Conditional Use Permit and Administrative Site Plan and Architectural
Review for modifications to the previously approved project. The City Council will take formal
action on the Density Bonus Housing Agreement and the MUP and Administrative SPAR will be
subsequently considered at the staff level.
BACKGROUND
On May 10, 2016 the Planning Commission adopted Resolution No. 2016-04 and 2016-05 for the
East Washington Commons project (Attachments B and Q. Resolution No. 2016-04 approved a
Conditional Use Permit allowing multi -family residential in the MUTA zoning district. Resolution
No. 2016-04 approved SPAR for demolition of the existing home on the property and construction
of a 24 -unit apartment building with associated landscaping, parking, and site amenities.
Two one-year extensions have subsequently been approved administratively which have allowed
the approvals to remain valid. Prior to expiration of the second extension, the applicant applied
for a building permit for both the demolition and the construction. Subsequently the applicant
identified financial barriers to the construction of the project and submitted the request for
amendment to increase the residential density. All previous approvals remain valid at this time.
3-1
Site Context
The project site is located on three parcels (two undeveloped parcels and one developed with a
small residence) along East Washington Street between Payran and Ellis Streets, across from the
Petaluma Regional Library on Fairgrounds Drive (Figure 1). The project site is located within
walking distance to McKinley Elementary School, Sonoma -Marin Fairgrounds, Petaluma Swim
Center, and East Washington Place Shopping Center.
Figure 1 — Project Location and Surrounding Vicinity
Vehicular and pedestrian access to the project site is provided off of East Washington Street,
between Ellis Street and Payran Street. East Washington Street provides two vehicular travel lanes
in each direction and, at the project frontage, a singular left-hand (southbound) turn lane leading
onto Fairgrounds Drive. Vehicular access to the project site is possible from East Washington from
the westbound direction only. A continuous sidewalk network exists in the area with stripped
crosswalks at both Ellis and Payran Streets.
Approved Project
The approve project is a 24 -unit apartment building on a .74 -acre site with onsite parking and
tenant amenities at the ground floor, residential units on the second and third floors, a new one-
way driveway, landscaping, public seating, bicycle parking, an open-air public courtyard at the
front, and a covered trash enclosure (Figure 2).
3-2
The approved building elevations are of a simple massing with strong horizontal lines interrupted
by regular vertical plane breaks. Proposed building materials consist of stucco, metal, and concrete.
A metal cornice defines the top of the building, vertical wall plane breaks define individual units,
outdoor balconies with translucent glass line the second and third floors, breezeways are viewable
at side elevations, and broad expanses of brushed aluminum windows define the fagade.
Remaining wall surfaces consist of yellow and grey stucco surfaces (Figure 3).
3-3
, U} WU1 1•' IN VCNIC Al 1101 VAIJ
—OMC—FW� ll AT—,VA-Wa:Pr-
Nr'n�
,GiArl-FRONC.tPS,t/AYLTFPCTNCIGPP.CIAS
DWO D
Figure 3 — Project Renderings
6 W'(M ClK.M 1E a Al ll VAR IM4V 'I INF
3-4
The approved floor plan shows a mixture of one- and two-bedroom units at the second and third
levels. Each floor includes 12 units (6 one -bedroom and 6 two-bedroom units). All units are flats
and each includes an approximate 47 square foot balcony. The ground floor provides residential
amenities, such as a tenant gym, clubhouse/recreation room, and a lobby, as well as covered
parking facilities.
The approved project has a one-way driveway through the site, including an entry driveway located
at the northeastern end and an exit driveway at the southeastern edge, both connecting to East
Washington Street. Curb cuts currently exist at both locations however they would be widened to
accommodate the required drive isle/fire access road width of 26 feet. The project would not alter
traffic or turn lane configuration along East Washington Street. Tenants and visitors of the site
enter and exit the site with right-hand turns from westbound travel at East Washington Street.
The project provides 23 covered parking spaces beneath the building and 15 uncovered parking
spaces placed at the rear of the site, with a total of 38 parking spaces proposed. Bicycle parking is
provided within the building in an enclosed bike locker room, which provides a total of 7 vertical
wall -mounted bike rack spaces on the interior of the site.
The approved project includes the following green building and sustainability measures:
• Skylights to provide daylight to the third floor breeze way, therefore reducing electric and
cooling demand;
• Breezeway corridors on the second and third floor to encourage natural ventilation and to
further reduce electric and cooling demand;
• Approximately 5,471 square feet of solar thermal and solar electric panels on the roof to
provide onsite renewable energy for tenants;
• Installation of three (3) designated electric vehicle charging stations to allow tenants to
recharge their car with onsite renewable energy;
• Approximately 4,716 square feet of pervious pavers at the entry and exit portions of the
drive isle to reduce storm water runoff,
• Native, adaptive, and drought -tolerant landscaping throughout the site;
• Storm water retention area to aid in removing silt and pollution from runoff water; and
• Smart appliances with solar hot water supply.
Project Description
The current project submitted to the City includes a Density Bonus and Development Concession,
a Minor Use Permit and Administrative Site Plan and Architectural Review, each described in
detail below. The project proposes to increase the overall density of the project by adding four
additional units within the approved footprint. The resulting density of 38 units per acre exceeds
the allowed density within the Mixed Use land use designation, and therefore a 25% density bonus
is requested. Additionally, the project includes requests for a Minor Use Permit and
Administrative Site Plan and Architectural Review for the minor modifications to the previously
approved project to accommodate the four additional units.
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Densitv Bonus afzd Development Concession
A Density Bonus has been requested to allow for an increased density of 38 units per acre in
exchange for offering two units at the very low-income level. Additionally, an associated
development concession has been requested to reduce the number of onsite parking spaces from
the 41 required by code to 38 spaces as provided for in the previously approved project.
The approval of a Density Bonus Housing Agreement is at the discretion of the City Council with
recommendation of the Planning Commission. The associated entitlements for the project as
discussed below cannot be approved until the Density Bonus Housing Agreement is approved and
recorded.
Minor Use Permit
The project site is located within the boundaries of the MUTA zoning district, which specifies that
"Dwelling, Multiple" requires approval of a Conditional Use Permit. When the project was
initially approved in 2016 the Planning Commission adopted Resolution No. 2016-04 which
approved a CUP for the proposed multi -family development and specifically for 24 multi -family
units.
If the City Council approves the Density Bonus and Development Concession, the MUP will be
processed administratively to amend the previously approved CUP to provide for the increase to
28 multi -family units.
Administrative Site Plan and Architectural Review
Also, in 2016, the Planning Commission adopted Resolution No. 2016-05 approving Site Plan and
Architectural Review for the East Washington Commons project. The applicant is proposing some
minor modifications to the originally approved project to accommodate the increase of four units
in the project. These changes are considered minor and fall within the scope of Administrative
SPAR as an amendment to a previously approved project. If the City Council approves the Density
Bonus and Development Concession, the Administrative SPAR will be processed
administratively. All conditions of approval included in the original approval resolution will be
carried forward in the amended SPAR approval.
The amended project as proposed does not modify the site layout or building footprint as
previously approved. The scope of modifications includes:
Interior changes to construct one two-bedroom unit and one one -bedroom unit in the
residential amenity space on the ground floor. No changes to the exterior elevations are
proposed as a result of this modification.
Removal of metal security gates and fencing across the vehicular access points and at the
front elevation.
Replacement of internal lobby staircase with active gathering space within the ground floor
lobby.
3-6
• Addition of two studio units on the third floor in an area that was previously an open multi-
story lobby. The addition of these two units creates modifications to the front elevation by
filling in the open class fagade on the third floor with paneling and windows consistent
with the character of the other third floor residential units.
The only action before the Planning Commission for consideration and action is the Density Bonus
and Development Concession. The Planning Commission may also provide feedback on the
requested MUP and Administrative SPAR for consideration as part of those entitlements that will
be processed administratively after the approval and recordation of the Density Bonus Housing
Agreement.
DISCUSSION
With the original project approval, the Planning Commission made all required findings for
consistency with the General Plan and Implementing Zoning Ordinance and including all required
findings for both the CUP and SPAR. The amended project as proposed does not significantly
alter any aspect of the project outside of what was previously analyzed. The discussion below is
focused on the consistency of the proposal with IZO Chapter 27 related to density bonus.
IZO Chapter 27
This chapter is intended to provide incentives for the production of housing for Very Low, Low
Income, Moderate or Senior Housing in accordance with California state law. By virtue of
providing for certain levels of affordable housing in a development project, a project is eligible to
exceed the density allowed by the applicable zoning and General Plan land use designation and
receive a prescribed number of development incentives or concessions. The IZO defines a
development incentive/concession as follows:
Concession or Incentive. Used interchangeably means such regulatory
concessions as specified in California Government Code Section 65915
subdivisions (d) and (h) including, but not limited to, the reduction of site
development standards or zoning code requirements, direct financial assistance,
approval of mixed use zoning in conjunction with the Housing Development, or any
other regulatoi), incentive which would result in identifiable cost avoidance or
reductions that are offered in addition to a Density Bonus. See Section 27.070 of
this chapter.
IZO §27.070 identifies development concessions or incentives that a project can utilize including
the following: reduced minimum lot sizes and/or dimensions; reduced minimum lot setbacks;
reduced minimum outdoor and/or private outdoor living area; increased maximum lot coverage;
increased maximum building height and/or stories; reduced on-site parking standards, including
the number or size of spaces and garage requirements; reduced minimum building separation
requirements; reduced street standards, e.g., reduced minimum street widths.
IZO §27.040 establishes the potential development bonus and number of incentives that a project
could receive by providing on-site affordable units at certain levels of affordability. Figure 10
3-7
found immediately below shows how the inclusion of a very affordable unit(s) can yield
development bonuses and incentives for project.
Percentage Near Low Income
Units
5%
6%
8%
10%
11 ^'.0
ZZ -D70
2y' %
32 5�'10
3.15%.
35%
q1
I
1
2
2
In accordance with State law, neither the granting of a Concession or Incentive, nor the granting
of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment,
zoning change, variance, or other discretionary approval.
The project proposes to utilize the residential density bonus provisions allowed by California state
law and Chapter 27 of the IZO by providing for two on-site affordable units at the very -low income
level — an amount equal to eight percent of the base number of units (26 units) allowed by the
zoning/land use designation at the project site. The inclusion of the on-site very affordable unit
also allows the project to request one development concession or incentive and a residential density
bonus of 27.5 percent as allowed by IZO §27.040. A parking reduction has been sought by the
applicant as the development concession/incentive. Table 2 summarizes how Chapter 27 applies
to the project.
TABLE 2 - RESIDENTIAL DENSITY BONUS SUMMARY
Standard Project
Description
Base Project Size (Number 22
The number of units proposed in the
of Units)
project prior to receiving an eligible
density bonus
Affordable Units Proposed 2
The number of units in the base project
(Very Low)
that shall be dedicated for the required
term pursuant to CA Government Code
§65915(c) to very low-income
households (i.e. those earning up to 50%
of the Area Median Income Level as
published and periodically updated by
the CA Department of Housing and
Urban Development)
Amount of Density Bonus 25%
The amount of density bonus, calculated
Available
pursuant to CA Government Code
The City shall grant Incentive(s) or Concession(s) requested by the applicant unless the City can
make a written finding, based upon substantial evidence, of any of the following:
1) The Incentive or Concession is not required in order to provide for affordable housing to
Very Low, Low, or Moderate -Income Households;
2) The Incentive or Concession would have a specific adverse impact, as defined in paragraph
(2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public
health and safety or physical environment or any real property that is listed on the
California Register of Historical Resources and for which the City determines there is no
feasible method to satisfactorily mitigate or avoid the specific adverse impact without
rendering the Housing Development unaffordable to Very Low, Low, and/or Moderate
Income Households; and,
3) The Incentive or Concession would be contrary to state or federal law.
The applicant must provide evidence as to why the Concession or Incentive is necessary to provide
the Restricted Affordable Units in accordance with Section 27.070 of this Chapter. Such evidence
shall include, but is not limited to, an explanation as to the actual cost reduction achieved through
the concession or incentive and how the cost reduction allows the applicant to provide the
Restricted Affordable Units, and any supporting documentation. The amount of actual cost
reduction is not stipulated by IZO Chapter 27 or state law. The reduction of required parking results
in cost savings to the applicant which further subsidizes the provision of the unit available to very
low-income household. Furthermore, the requested Incentive/Concession is not anticipated to have
a specific adverse impact upon public health and safety or physical environment or any real
property that is listed on the California Register of Historical Resources and would not be contrary
to state or federal law.
3-9
(6 market rate DB §65915 and IZO, for which the applicant
units allowed; 6 is eligible.
market -rate DB
unit proposed)
Available
I The number of incentives/concessions
Incentives/Concessions
for which the project is eligible.
Eligible Parking Ratio
I Bdrm 1 Reduced parking equal to four parking
space/unit spaces has been requested by the
applicant, which would reduce the
2 Bdrm 2 required off-street vehicular parking
spaces/unit requirement for the project from 41 to 38
spaces.
Supporting information for
The project includes a request for the following
requested
Incentives/Concessions that result in identifiable and actual
Incentives/Concessions
cost reductions to provide for affordable housing costs:
• Reduced total vehicular parking space requirement
from 41 total spaces to 38 total spaces.
The City shall grant Incentive(s) or Concession(s) requested by the applicant unless the City can
make a written finding, based upon substantial evidence, of any of the following:
1) The Incentive or Concession is not required in order to provide for affordable housing to
Very Low, Low, or Moderate -Income Households;
2) The Incentive or Concession would have a specific adverse impact, as defined in paragraph
(2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public
health and safety or physical environment or any real property that is listed on the
California Register of Historical Resources and for which the City determines there is no
feasible method to satisfactorily mitigate or avoid the specific adverse impact without
rendering the Housing Development unaffordable to Very Low, Low, and/or Moderate
Income Households; and,
3) The Incentive or Concession would be contrary to state or federal law.
The applicant must provide evidence as to why the Concession or Incentive is necessary to provide
the Restricted Affordable Units in accordance with Section 27.070 of this Chapter. Such evidence
shall include, but is not limited to, an explanation as to the actual cost reduction achieved through
the concession or incentive and how the cost reduction allows the applicant to provide the
Restricted Affordable Units, and any supporting documentation. The amount of actual cost
reduction is not stipulated by IZO Chapter 27 or state law. The reduction of required parking results
in cost savings to the applicant which further subsidizes the provision of the unit available to very
low-income household. Furthermore, the requested Incentive/Concession is not anticipated to have
a specific adverse impact upon public health and safety or physical environment or any real
property that is listed on the California Register of Historical Resources and would not be contrary
to state or federal law.
3-9
State density bonus law also establishes that in no case may the City apply any development
standard that will have the effect of physically precluding the construction of a development at the
densities or with the concessions or incentives permitted by state density bonus law. The full
parking requirement of 41 on-site spaces challenges the site and requires decrease in building area
to site the three additional parking spaces. Therefore, the full parking standard on the project site
could preclude the applicant from successfully building the project at the proposed density of over
30 units per acre.
Applicants for a density bonus, incentive/concession shall enter into a Density Bonus Housing
Agreement (Agreement) with the City that is subject to approval by the City Council. The approval
of the Agreement shall take place prior to approval of Minor Conditional Use Permit or
Administrative Site Plan and Architectural Review. Related to this project, the City Council must
first approve the Agreement prior the City acting of the project's MUP and SPAR request. The
Agreement must run with the land to be developed and be binding on all future owners and
successors in interest. Notably, the Agreement must stipulate that the term of use restrictions for
restricted affordable units for at least 30 years for Very Low units. Following execution of the
Agreement by all parties, the completed Agreement shall be recorded on the parcel to be
developed.
IZO Chapter 27 stipulates that the affordable units must be consistent with the general size and
layout of market rate units in the proposed project. Therefore, the agreement includes the
requirement that the affordable units shall be one one -bedroom unit and one two-bedroom unit
consistent with the majority of units proposed in the project.
Staff believes all requirements of the Density Bonus ordinance have been addressed with the
proposed project. A draft resolution recommending approval of the Density Bonus and
Concession/Incentive is provided at Attachment A for the Planning Commission's consideration.
I' AZO 1 u_U 0 _I
A notice of public hearing was published in the Argus Courier on September 12, 2019 and mailed
to all property owners and occupants within 1,000 feet of the project site. A public hearing sign
was also posted on the project site consistent with local requirements. Staff received no written or
verbal comments prior to this meeting.
ENVIRONMENTAL REVIEW
When the initial project was approved in 2016 the project was found to be categorically exempt
from the provisions of CEQA under CEQA Guidelines 15332 (In -Fill Development).
Additionally, the project was determined to not trigger any of the exceptions to the exemption
outlined in CEQA Guidelines Section 15300.2. The detailed discussion of the exemption that was
part of the original project is included for reference at Attachment D.
The proposed Density Bonus, Minor Use Permit, and Administrative Site Plan and Architectural
Review include minor modifications to the previously approved project to accommodate an
additional four multi -family units. There is no change proposed to the footprint of the building or
K
the site layout from the project previously analyzed. The addition of four units within the approved
building is not considered a significant change to the analysis and the exemption remains
applicable. No further CEQA analysis is warranted.
ATTACHMENTS
Attachment A:
Draft Resolution Recommending Approval of Density Bonus
Exhibit 1: Density Bonus Housing Agreement
Attachment B:
PC Resolution No. 2016-04
Attachment C:
PC Resolution No. 2016-05
Attachment D:
Class 32 CEQA Exemption
Attachment E:
Application Narrative, August 6, 2019
Attachment F:
Revised Plan Set
3-11
May 10, 2016
Subject: Class 32 In -Fill Exemption Justification
East Washington Commons Project
817, 821, and 825 East Washington Street
Petaluma, CA
The applications for Site Plan and Architectural Review (SPAR) and a Conditional Use Permit
(CUP) of the proposed East Washington Commons apartment building (project) meets the
conditions for the In -Fill categorical exemption pursuant to Section 15332 of the California
Environmental Quality Act (CEQA) Guidelines, as described below.
Class 32 Exemption
The project meets the following categorical exemption conditions as described in CEQ
Guidelines Section 15332:
a) The project is consistent with the applicable General Placa Designation, applicable policies
and applicable zoning designation and regulations.
The project site is designated Mixed Use (MU) per the City of Petaluma General Plan 2025
and zoned Mixed Use IA (MU 1 A) per the City's Implementing Zoning Ordinance (IZO).
The MU designation is intended to promote a robust combination of uses, including
commercial and residential, along corridors such as Washington Street. The General Plan
also recognizes that this mix of uses may occur horizontally across parcels rather than being
required to provide a mixture of uses on smaller individual parcels.
The project site fronts onto East Washington Street, which serves as a major arterial corridor
leading to Downtown and Central Petaluma. The project proposes a 24 -unit apartment
building, incorporating onsite parking and tenant amenities at the ground floor, residential
units on the second and third floors, a new one-way driveway, landscaping, public seating,
bicycle parking, and an open air public courtyard at the front.
The East Washington Commons project conforms to the intent, goals, and policies of the
Petaluma 2025 General Plan, including policies for the Washington Core Subarea, in that the
project: 1) provides residential uses within a mixed use corridor intended to reflect a wide
range of uses spread horizontally along arterial corridors with a diversity of uses across
parcels rather than within single parcels, 2) meets the intended Floor Area Ratio (FAR) and
residential density of the MU land use designation, 3) encourages infill development at equal
or higher density and intensity than surrounding uses, and within the Urban Growth
Boundary, 4) strengthens the visual and aesthetic character of a major arterial corridor, while
also providing an active ground level public courtyard with associated public amenities, 5)
Eff
East Washington Commons Project
encourages the development of housing on underutilized land, and 6) promotes the use of
energy conservation features in the design of residential development.
The East Washington Commons project is also consistent with the IZO for the MUTA zoning
district in that the project complies with all development standards for the MUI zone,
including setbacks, building height, parking requirements, FAR, and usable open space, and
would introduce an apartment building on a site that allows multiple -dwelling residential as a
conditional use and would be consistent with the intent of the City's General Plan, as
discussed above.
b) The project is located within Citv limits on a site that is less than five acres and is
substantially surrounded by established urban uses.
The project site consists of approximately 0.74 acres located in the Washington Core Subarea
of the General Plan and within the Urban Growth Boundary. The site is surrounded by
established public, retail, commercial, and residential uses, as well as roadways and the
nearby Highway 101.
c) The site is void of'natural vegetation and there is no habitat that would support endangered,
rare or threatened species.
The site is primarily undeveloped, however the site does not exhibit any value as habitat for
endangered, rare, or threatened species. It is located within an urbanized area of central
Petaluma surrounded by roadways and public, retail, commercial, and residential uses. The
site has few trees and shrubs that would be removed as a result of development, however
none of the onsite trees qualify as protected trees per the City's IZO.
d) The project would not result in any significant effects relating to traffic, noise, air quality, or
water quality
The following discussion describes the project as it relates to traffic, noise, air quality and
water quality concerns:
Traffic
The project would construct a 24 -unit apartment building with associated circulation
improvements, including a new one-way driveway through the site, entry and exit driveways
connecting to East Washington Street, and the expansion of existing curb cuts. The project
would not alter traffic or turn lane configuration along East Washington Street. Tenants and
visitors of the site would enter and exit the project site with right-hand turns, thereby
avoiding traffic or circulation impacts on a major arterial roadway. The project would
provide adequate queuing space between East Washington Street and the entry/exit gates, so
'EA
N
East Washington Commons Project
as not to create backup hazards into the street. Although the introduction of 24 residential
units may result in a slight increase in trips, the incremental change in trips due to the
proposed project is considered to be adequately mitigated through the payment of traffic
impact fees. It should be noted that the size, use, and unit count of the proposed project did
not warrant a traffic study under city guidelines.
Noise
As a residential use, the project is not expected to generate noise that exceeds established
noise levels, particularly due to the project's small size and location on a major arterial
roadway. Noise levels onsite would be generated by vehicles, doors, car alarms, and people
talking, all of which is typical of the noise environment within an urban area. Noise
generating activities associated with construction will be short term and end once
construction is complete. Additionally, the project will be conditioned to comply with the
City's Noise Ordinance and will not exceed acceptable limits. At operation, the new
apartment building will not introduce substantial new noise sources relative to the existing
condition.
Air Quality
At 24 units, the proposed project is substantially below the Bay Area Air Quality
Management District's (BAAQMD) screening level of 325 units indicating when a project -
specific air quality analysis should be performed. The project is also below the BAAQMD
screening level of 78 units for greenhouse gas emissions. Therefore, it can be conservatively
concluded the project would not have a significant effects under the topic of air quality or
greenhouse gas emissions.
Water quality
As proposed, the project complies with the City's storm water requirements and Low Impact
Development Measures (e.g. bio -retention areas and permeable pavers). The project does not
propose any changes to the drainage such that flows would be redirected and water quality
impacted. At operation the proposed building will be fully plumbed and will connect to the
City's wastewater system and treatment facility. As proposed the design is consistent with
the current LID standards and requirements for water quality control.
Construction activities within the City of Petaluma are covered by the Construction General
Permit (2009-0009-DWQ). As the project will result in disturbance to less than 1 acre of land
the requirements for a Storm Water Pollution Prevention Plan (SWPPP) is not triggered and
potential water quality impacts are generally considered to be minimal. Nonetheless,
application of uniformly applied development standards require erosion and sediment control
to be implemented during all stages of construction. Typical Best Management Practices
(BMP) that are generally applied during construction activities include use of fiber filter
4-3
3
East Washington Commons Project
rolls, sand bags or interceptors at storm drain inlets, track pads at access points, and spill
prevention, amongst others. Therefore, there is no expectation that construction activities
would significantly impact water quality.
e) The project is adequately served by all required utilities and public services.
The project is located in an urbanized area within the Urban Growth Boundary and is well
served by existing utilities and public services. There will be a negligible increase in the
demand for water, wastewater, storm drain facilities and police and fire protection as a result
of the proposed project, however development is consistent with the City's General Plan and
is anticipated under the General Plan EIR. The applicant submitted existing/proposed
sanitary sewer flow calculations to the City's Department of Public Works and Utilities,
whereas existing sewer infrastructure was determined to be adequate to serve the project.
Thus, there would be no significant impacts due to utilities and public services resulting from
the project.
Review of Exception to Exemptions
It has been further considered whether or not the project is subject to any of the exceptions
outlined in CEQA Guidelines Section 15300.2. An exemption would be prohibited pursuant to
Section 15300.2 if any of the following circumstances are found to exist:
a) For certain classes of projects (Classes 3, 4, 5, 6 and 11) due to location where the project
may impact an environmental resource or hazardous or critical concern.
Section 15300.2(a) does not apply to the infill exemption.
b) When the cumulative impact of successive projects of the same type in the same place, over
time, is significant.
Since the project is located in an urbanized area with pedestrian and bicycle access and is
expected to be complimentary to the existing land uses there is no expectation that the project
will contribute to cumulative impacts.
c) Where there is a reasonable possibility that the activity will have a significant effect on the
environment due to unusual circumstances.
There is no expectation that the project would have a significant effect on the environment
resulting from unusual circumstances. The proposed project involves the introduction of a
24 -unit apartment building on a .74 -acre parcel within an urban area of central Petaluma that
is surrounded by established development and uses. Therefore, no significant effects
generated by the presence of unusual circumstances would result from the proposed project.
4
East Washington Commons Project
d) Where the project nzay result in damage to scenic resources, including but not limited to,
trees, historic buildings, rock outcroppings, or sinzilar resources, within a highwayofficially
designated as a state scenic highway.
Section 15300.2(d) is not applicable; the project is not located adjacent to a State Designated
Highway, nor is it located in the vicinity of a locally recognized or designated Scenic
Corridor.
e) Where the project is located on a state designated hazardous waste site.
The site is not identified as a contaminated or spill site, nor is it located adjacent to such a
site. The Envirostor and Geotracker databases were referenced on January 14, 2016 and no
on-site contaminated or spill sites were identified. The closest site identified to the project
site was a Leaking Underground Storage Tank (LUST) cleanup site at the Shell Service
Station at the corner of Payran and East Washington streets, however review of the case's
field points and monitoring information did not provide any potential issues or concerns in
relation to project construction. The project site is not located on a State designated
hazardous waste site. Thus, there would be no potential for exposure due to contamination.
J) Where the project may cause a substantial adverse change in the significance of a historical
resource.
The project proposes to demolish an existing structure on the project site, which was built in
1949 and is located at 825 East Washington Street. In order to further understand the
structure's possible historical significance, a Historic Resource Evaluation (HRE) was
prepared for the building in order to determine if the building meets the CEQA definition of a
Historical Resources as defined in CEQA Guidelines Section 15064.5.
The HRE included a review of archival information for the property, results of a field survey
performed on January 26, 2016 to evaluate the level of integrity that remains, and an
assessment to determine eligibility of the property to meet California Register Criteria for
listing. The structure had not been previously evaluated and is not listed on any National,
State, or Local Register of Historic Resources, and has not been reviewed as part of a
Historic Resources Inventory.
The findings of the HRE indicated that the building is a Colonial Revival residence that is not
eligible for listing on the California Register of Historic Resources based on its failure to
meet one or more of the four significance criterion. Accordingly, the subject residence is not
considered a historic resource for the purposes of CEQA.
4-5
5
August 6,2019
Heather Hines
Planning Manager
if City of Petaluma
11 English St.
Petaluma, CA
RE: 817 East Washington
PLMA-16-0004
Heather:
As we discussed in a previous meeting with you and Sue Castelluccl., we are asking for a Density
Bonus to add 4 additional units to the project and a waiver from the required parking ratio.
HISTORY
At present we have a project of 24 -units consisting of one and two-bedroom apartments that has
gone through SPAR and been approved. Subsequent to that, we applied for a building permit and
received our plan check corrections. At that point, the cost of construction gave pause to the project
and it was put on hold pending an attempt to bring the costs down.
COST ENGINEERING.
We have had to ask for extensions in order to attempt to get better costs for the project's
construction. Both the fires that ravaged so many homes as well as the flooding have hampered this.
Not only have costs skyrocketed but also it has put a premium on finding subcontractors who are
available to work.
UNIT COUNTS
The approved project we have consists of an entry lobby, elevator, landscaping, parking and a
concrete podium with two stories of 24 residential above, each with their own extefior deck.
REQUEST FOR AN AMENDMENT TO AN EXISTING SPAR APPROVAL
What we are asking for is an increase in the number of units from 24 to 28, an additional 4 units. It
should be noted this doesn't change any aspect of the footprint, setbacks, height or the substantial
appearance of the project. To achieve this, we need an exception for the parking required through a
density bonus,
DESCRIPTION OF ADDITIONAL UNITS
The four additional units are as follows:
Third Floor
1. Two of the units would be studios on the third level of the entry lobby. One studio is 500
sq.ft and the other is 373 sq.ft. Instead of the lobby being three stories tall, it would be two stories
With the two studios filling the space at that level. That is the only change to the elevation at the front
entry, and the rest of the project is as approved.
Ground Floor
2. one unit would be in the space now designated as the fitness center. This would be a 2 -
bedroom
ea2-
bedroom unit of 1050 sq.ft. There would be no visible change to the existing elevation since windows
were already part of that space,
3. one unit would be in the space designated as the clubhouse. This is a one -bedroom unit of
668 sq.ft, which also has no visible changes to the existing exterior elevations. ,
5-1
CONCESSIONS
We need a reduction in the number of required parking spaces to accommodate the increased units.
We are requesting this through the application of a Density Bonus.
With 24 units, we were required to provide 36 parking spaces based on the requirement of 1.5
spaces per unit. We provided 38 spaces, two over the required amount. With 28 units, we will be
providing 1.35 spaces per unit. It should be noted that there still would be at least one parking space
for each unit but not the required 1.5 spaces for the project
LEVEL OF AFFORDABILITY
Based on Sue Castellucci's email of June 11, 2019, we would be using the very low-income rent level
which is 5010 of HUD published rental rates. We are providing 2 very low-income rate units, which is
7.14% of the total units in exchange for a density bonus. IZO Section 27.070 does allow the City to
grant a waiver of site development standards to reduce on-site parking standards including the
number of spaces. That is not a guarantee but it does allow us to request the waiver.
SPECIFIC VERY LOW INCOME UNITS
The affordable units will be a one -bedroom from the already existing project at the second or third
level. The other affordable unit will be the two-bedroom at the ground level in the previously
designated space for the fitness center.
PROCESS
It is my understanding that we first have to go to SPAR with a formal application for the architectural
changes as well as the proposal for the Density Bonus. SPAR, at that time can approve or recommend
changes. Additionally SPAR has to review the Density Bonus requirement also with or without
recommendations. Pending that outcome, we go to the City Council for an approval of the Density
Bonus and Neg Dec and then we return back to the Planning Commission for a final approval or
required changes.
I assume this is a 6-9 month process with all the notification time frames. It is important that we get
clarity as to your best guess on this, In order to ascertain where we are. That time line would put us
up against another Planning extension request and we need to plan for that
Please let me know if any of this is incorrect or you want to make any additions.
Thank you, as always, for your help.
Jerry Kler
5-2
From: Elliot Levine <levineer@vahoo.com>
Sent: Monday, September 23, 2019 7:45 PM
To: Hines, Heather <hhines@citvofpetal uma.org>
Subject: East Washington Commons Project File # PLSR-19-0015
---Warning: Use caution before clicking any attachments. THIS EMAIL IS FROM OUTSIDE OUR EMAIL
SYSTEM. ---
Dear Ms. Hines,
I am sending comments for the subject development project because I will be unable to attend in
person. I am asking that the Planning Commission consider requiring the developer of this project to use
5% (total 2) of the parking spaces of the development for the charging of electric vehicles. This would
mean that the developer would include in the project the installation of the spaces, electrical
infrastructure, and Level 2 - 220V chargers and the property manager would cover the costs for an
ongoing operations and maintenance agreement for the chargers.
Petaluma, like many cities in California, faces grave threats from climate change, brought on in large part
by the emissions of internal combustion engines. Encouraging and someday perhaps requiring new
developments in Petaluma to have EV charging facilities for residents and visitors, will reduce the
pollution and improve conditions in our neighborhoods.
Thank you for forwarding my comments to the Planning Commission.
Elliot Levine
w/Patricia Landgraf-Levine
941 Martin Circle
Petaluma, CA 94952
-----Original Message -----
From: Joann Fabian <ioannmfabian@hotmail.com>
Sent: Monday, September 23, 2019 6:04 PM
To: Hines, Heather <hhines@cityofpetaluma.org>
Subject: East Washington Street Commons
---Warning: Use caution before clicking any attachments. THIS EMAIL IS FROM OUTSIDE OUR EMAIL
SYSTEM. ---
We are residents of Alma Ct and were involved with the initial proposal in 2016.
We are against the density bonus.
The property owners on Alma Ct.would like RESIDENTS ONLY PARKING signs posted on Alma Ct.
Sincerely,
Stuart Curtis
Joann
The Sent from my iPad
M
From: "Stuart Brody" <stuartbrodv@gmail.com>
Date: September 21, 2019 at 5:26:08 AM PDT
To: <hhines@citvofpetaluma.org>
Subject: 817,821,825 East Washington St
---Warning: Use caution before clicking any attachments. THIS EMAIL IS FROM OUTSIDE OUR EMAIL
SYSTEM. ---
Hello,
I am writing about the proposed project at the above address. I live on Alma Ct just around the corner
from this project. I have no problem with development. My biggest problem is the density of the of the
population and the amount of cars that need to find parking spaces. We already have an extreme
parking problem. lust come down my block any night and see all the overflow cars parked from the
apartments on Ellis packing into Alma Ct. Every available and many illegal parking spots are taken
making it impossible for a fire truck to turn in the street. I want to remind you that you have already
approve, just around the corner on Ellis, a massive project. Does it have adequate parking? Every night
the school is completely full with cars parked in no parking zones.
As I stated, I love diversity and the ability for people to have a place to live, but is this the right spot? Is
there much more parking for all the new residence? Does the city have enough water to support all
these families and those in all the other construction projects around Petaluma?
Stuart Brody
22 Alma Court
Petaluma, California 94952
415.699.0015
stuartbrodv(@grnail.com
Begin With The End in Mind -
W
From: Elliot Levine <levineer@vahoo.com>
Sent: Monday, September 23, 2019 7:45 PM
To: Hines, Heather <hhines@citvofpetal uma.org>
Subject: East Washington Commons Project File # PLSR-19-0015
---Warning: Use caution before clicking any attachments. THIS EMAIL IS FROM OUTSIDE OUR EMAIL
SYSTEM. ---
Dear Ms. Hines,
I am sending comments for the subject development project because I will be unable to attend in
person. I am asking that the Planning Commission consider requiring the developer of this project to use
5% (total 2) of the parking spaces of the development for the charging of electric vehicles. This would
mean that the developer would include in the project the installation of the spaces, electrical
infrastructure, and Level 2 - 220V chargers and the property manager would cover the costs for an
ongoing operations and maintenance agreement for the chargers.
Petaluma, like many cities in California, faces grave threats from climate change, brought on in large part
by the emissions of internal combustion engines. Encouraging and someday perhaps requiring new
developments in Petaluma to have EV charging facilities for residents and visitors, will reduce the
pollution and improve conditions in our neighborhoods.
Thank you for forwarding my comments to the Planning Commission.
Elliot Levine
w/Patricia Landgraf-Levine
941 Martin Circle
Petaluma, CA 94952
-----Original Message -----
From: Joann Fabian <ioannmfabian@hotmail.com>
Sent: Monday, September 23, 2019 6:04 PM
To: Hines, Heather <hhines@cityofpetaluma.org>
Subject: East Washington Street Commons
---Warning: Use caution before clicking any attachments. THIS EMAIL IS FROM OUTSIDE OUR EMAIL
SYSTEM. ---
We are residents of Alma Ct and were involved with the initial proposal in 2016.
We are against the density bonus.
The property owners on Alma Ct.would like RESIDENTS ONLY PARKING signs posted on Alma Ct.
Sincerely,
Stuart Curtis
Joann
The Sent from my iPad
M
From: "Stuart Brody" <stuartbrodv@gmail.com>
Date: September 21, 2019 at 5:26:08 AM PDT
To: <hhines@citvofpetaluma.org>
Subject: 817,821,825 East Washington St
---Warning: Use caution before clicking any attachments. THIS EMAIL IS FROM OUTSIDE OUR EMAIL
SYSTEM. ---
Hello,
I am writing about the proposed project at the above address. I live on Alma Ct just around the corner
from this project. I have no problem with development. My biggest problem is the density of the of the
population and the amount of cars that need to find parking spaces. We already have an extreme
parking problem. lust come down my block any night and see all the overflow cars parked from the
apartments on Ellis packing into Alma Ct. Every available and many illegal parking spots are taken
making it impossible for a fire truck to turn in the street. I want to remind you that you have already
approve, just around the corner on Ellis, a massive project. Does it have adequate parking? Every night
the school is completely full with cars parked in no parking zones.
As I stated, I love diversity and the ability for people to have a place to live, but is this the right spot? Is
there much more parking for all the new residence? Does the city have enough water to support all
these families and those in all the other construction projects around Petaluma?
Stuart Brody
22 Alma Court
Petaluma, California 94952
415.699.0015
stuartbrodv(@grnail.com
Begin With The End in Mind -
W