HomeMy WebLinkAboutResolution 2019-170 N.C.S. 10/21/2019Resolution No. 2019-170 N.C.S.
of the City of Petaluma, California
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.J 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 Implementing 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
Resolution No. 2019-170 N.C.S. Page 1
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
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.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
Resolution No. 2019-170 N.C.S. Page 2
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 27.040.13 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 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 BV 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
Resolution No. 2019-170 N.C.S. Page 3
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-
2-23 (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 MUlA 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 1 hereto
and incorporated herein by reference.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved to
Council of the City of Petaluma at a Regular meeting on the 215' day of October
2019, by the following vote: ;—
s
/Assistant C' Attorney
AYES: Mayor Barrett; Fischer; Healy; Kearney; King; Vice Mayor McDonnell; Miller
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
Jput
Deputy City Clerk
Mayor
Resolution No. 2019-170 N.C.S. Page 4
EXHIBIT 1
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Petaluma
11 English Street
Petaluma, CA 94952
Attn: City Manager
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383
Space above this line for Recorder's use.
APN: 007-022-058, 007-022-055, and 007-022-033
AFFORDABLE HOUSING REGULATORY AGREEMENT
AND
DECLARATION OF RESTRICTIVE COVENANTS
by and between
THE CITY OF PETALUMA
and
STEPHEN BEREZIN
Density Bonus Housing Agreement
Resolution No. 2019-170 N.C.S. Page 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. 2019-06.
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.
Resolution No. 2019-170 N.C.S. Page 6
F. The purpose of this Agreement is to satisfy the requirements of the
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
Resolution No. 2019-170 N.C.S. Page 7
required to be rented to Eligible Households at Affordable Rent in accordance with the
Density Bonus Ordinance and this Agreement.
"Claims" is defined in Section 11.
"Density Bonus Ordinance" means the City of Petaluma Implementing Zoning
Ordinance Chapter 27.
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 Affordability Requirements. For a term of fifty-five (55) years commencing
upon the date of issuance of a final certificate of occupancy or equivalent for the
Project, 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
Resolution No. 2019-170 N.C.S. Page 8
Eligible Household, Owner may raise the tenant's rent to an amount net of utilities, that
is the lesser of the rent for a comparable market -rate unit in the Project or one -twelfth
(1/12th) of thirty percent (30%) of the tenant's household Gross Income; provided
however, Owner must rent the next available unit in the Project to an Eligible Household
at an Affordable Rent.
2.2 Rent for Restricted Unit. Rent for the BMR Unit shall be limited to
Affordable Rent.
2.3 No Condominium Conversion: No Short -Term Rentals. Owner shall not
convert the BMR 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 Design; 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 Marketing 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
Resolution No. 2019-170 N.C.S. Page 9
the BMR Units, Owner shall provide a certification to City in form approved by City
pursuant to which Owner shall certify that Owner has obtained and reviewed
information provided by the prospective tenant regarding the prospective tenant's
household income and status as an Eligible Household, and that Owner has no
knowledge that the prospective tenant does not qualify as an Eligible Household. In
connection with such certification, prospective tenants shall be required to provide
written certification of household income, including without limitation, such documents
as income tax returns for the previous calendar year, W-2 statements, and pay stubs to
Owner, and City shall have the right to inspect such documentation pursuant to Section
4.4 below. California Tax Credit Allocation Committee income verification forms will be
used to verify tenants for the BMR Units. (Attachment C)
3.4 Compliance with Fair Housing Laws. Owner shall comply with all state
and federal fair housing laws, rules, regulations and guidelines in the marketing and
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 any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision
(p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof,
nor shall Owner or any person claiming under or through Owner establish or permit any
such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in, of, or for the Property or part thereof. Owner shall include
such provision in all deeds, leases, contracts and other instruments executed by
Owner, and shall enforce the same diligently and in good faith.
3.6 Marketing and Management Plan; Restrictions on Subleasing and
Assignment. In marketing the BMR 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
Resolution No. 2019-170 N.C.S. Page 10
Household at an Affordable Rent.
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.
Resolution No. 2019-170 N.C.S. Page 11
4.4 Access to Records; Inspections.
(1) With at least 48 hours' notice, during normal business hours,
Owner shall provide City and its authorized agents and representatives access to any
books, documents, papers and records of the Project relating to the BMR 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 Conveyance of Property. This Agreement shall
remain effective and fully binding for the full term hereof regardless of any sale,
assignment, transfer, or conveyance of the Property or the Project or any part thereof or
interest therein.
5.3 Reconveyance. Upon the termination of this Agreement, the Parties
agree to execute and record appropriate instruments to release and discharge this
Agreement; provided, however, the execution and recordation of such instruments shall
not be necessary or a prerequisite to the termination of this Agreement upon the
expiration of the term.
6. Binding Upon Successors; Covenants to Run with the Land. The City and the
Owner hereby declare their express intent that the covenants and restrictions set forth
in this Agreement shall run with the land, and shall be binding upon all successors in
title to the Property, regardless of any sale, assignment, conveyance or transfer of the
Property, the Project or any part thereof or interest therein. Any successor -in -interest to
Owner, including without limitation any purchaser, transferee or lessee of the Property
or the Project (other than the tenants of the individual dwelling units or commercial
space within the Project) shall be subject to all of the duties and obligations imposed
hereby for the full term of this Agreement. Each and every contract, deed, ground
lease or other instrument affecting or conveying the Property or the Project or any part
thereof, shall conclusively be held to have been executed, delivered and accepted
subject to the covenants, restrictions, duties and obligations set forth herein, regardless
of whether such covenants, restrictions, duties and obligations are set forth in such
contract, deed, ground lease or other instrument; provided, however, that upon the
expiration of the term of this Agreement, said covenants and restrictions shall expire.
This Agreement shall bind any successor, heir or assign of the Owner, whether a
Resolution No. 2019-170 N.C.S. Page 12
change in interest occurs voluntarily or involuntarily, by operation of law or otherwise.
Owner agrees for itself and its successors that in the event that a court of competent
jurisdiction determines that the covenants herein do not run with the land, such
covenants shall be enforced as equitable servitudes against the Property and the
Project in favor of City.
Without limiting the generality of the foregoing, Owner and City hereby declares their
understanding and intent that:
(a) The covenants and restrictions contained in this Agreement shall be construed
as covenants running with the land pursuant to California Civil Code section
1468 and not as conditions which might result in forfeiture of title by Owner;
(b) The burden of the covenants and restrictions set forth in this Agreement touch
and concern the Property in that the Owner's legal interest in the Property and all
improvements thereon are rendered less valuable thereby;
(c) The benefit of the covenants and restrictions set forth in this Agreement touch
and concern the land by enhancing and increasing the enjoyment and use of the
Property by the BMR Unit tenants; and
(d) All covenants and restrictions contained herein without regard to technical
classification or designation shall be binding upon Owner and its successors in
interest for the benefit of the City, and such covenants and restrictions shall run
in favor of the City for the entire period during which such covenants and
restrictions shall be in force and effect, without regard to whether the City is an
owner of any land or interest therein to which such covenant and restrictions
relate.
7. Property Management; Repair and Maintenance.
7.1 Management Responsibilities. Owner shall be responsible for all
management functions with respect to the Property and the Project, including without
limitation the selection of tenants, certification and recertification of household income
and eligibility, evictions, collection of rents and deposits, maintenance, landscaping,
routine and extraordinary repairs, replacement of capital items, and security. City shall
have no responsibility for management or maintenance of the Property or the Project.
7.2 Repair, Maintenance and Security. Throughout the term of this
Agreement, Owner shall at its own expense, maintain the Property and the Project in
good physical condition, in good repair, and in decent, safe, sanitary, habitable and
tenantable living conditions in conformity with all applicable state, federal, and local
laws, ordinances, codes, and regulations. Without limiting the foregoing, Owner agrees
to maintain the Project and the Property (including without limitation, the residential
units, common areas, meeting rooms, landscaping, driveways, parking areas and
walkways) in a condition free of all waste, nuisance, debris, unmaintained landscaping,
graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take all
Resolution No. 2019-170 N.C.S. Page 13
reasonable steps to prevent the same from occurring on the Property or at the Project.
Owner shall prevent and/or rectify any physical deterioration of the Property and the
Project and shall make all repairs, renewals and replacements necessary to keep the
Property and the improvements located thereon in good condition and repair. Owner
shall provide adequate security measures for the Project, including without limitation,
the installation of adequate lighting and deadbolt locks.
7.3 Fees, Taxes, and Other Levies. Owner shall be responsible for payment
of all fees, assessments, taxes, charges, liens and levies applicable to the Property or
the Project, including without limitation possessory interest taxes, if applicable, imposed
by any public entity, and shall pay such charges prior to delinquency. However, Owner
shall not be required to pay any such charge so long as (a) Owner is contesting such
charge in good faith and by appropriate proceedings, (b) Owner maintains reserves
adequate to pay any contested liabilities, and (c) on final determination of the
proceeding or contest, Owner immediately pays or discharges any decision or judgment
rendered against it, together with all costs, charges and interest.
7.4 Insurance Coverage. Not required for this agreement.
7.5 Property Damage or Destruction. If any part of the Project is damaged or
destroyed, Owner shall repair or restore the same, consistent with the occupancy and
rent restriction requirements set forth in this Agreement. Such work shall be
commenced as soon as reasonably practicable after the damage or loss occurs and
shall be completed within one year thereafter or as soon as reasonably practicable,
provided that insurance proceeds are available to be applied to such repairs or
restoration within such period and the repair or restoration is financially feasible. If this
provision conflicts with the requirements of senior lenders, the requirements of such
lenders shall prevail.
8. Recordation: No Subordination. This Agreement shall be recorded in the Official
Records of Sonoma County. Owner hereby represents, warrants and covenants that
with the exception of easements of record, absent the written consent of City, this
Agreement shall not be subordinated in priority to any lien (other than those pertaining
to taxes or assessments), encumbrance, or other interest in the Property or the Project.
If at the time this Agreement is recorded, any interest, lien, or encumbrance has been
recorded against the Project in position superior to this Agreement, upon the request of
City, Owner hereby covenants and agrees to promptly undertake all action necessary to
clear such matter from title or to subordinate such interest to this Agreement consistent
with the intent of and in accordance with this Section 8, and to provide such evidence
thereof as City may reasonably request.
9. Mortgagee Protection. No violation of any provision contained herein shall
defeat or render invalid the lien of any mortgage or deed of trust made in good faith and
for value upon all or any portion of the Project or the Property, and the purchaser at any
trustee's sale or foreclosure sale shall not be liable for any violation of any provision
hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall
Resolution No. 2019-170 N.C.S. Page 14
be bound by and subject to this Agreement from and after such trustee's sale or
foreclosure sale. Promptly upon determining that a violation of this Agreement has
occurred, City shall give written notice to the holders of record of any mortgages or
deeds of trust encumbering the Project or the Property that such violation has occurred.
10. 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
Resolution No. 2019-170 N.C.S. Page 15
collected in excess of the Affordable Rent;
C. Bring an action for damages or pursue any other remedy allowed at law,
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. Indemnity. To the greatest extent permitted by law, Owner shall indemnify,
defend (with counsel approved by City) and hold the City and its elected and appointed
officers, officials, employees, agents, consultants, contractors and representatives
(collectively, the "Indemnitees") harmless from and against all liability, loss, cost,
expense (including without limitation attorneys' fees and costs of litigation), claim,
demand, action, suit, judicial or administrative proceeding, penalty, deficiency, fine,
order, and damage (all of the foregoing collectively "Claims") arising directly or
indirectly, in whole or in part, as a result of or in connection with Owner's construction,
management, or operation of the Property and the Project or any failure to perform any
obligation as and when required by this Agreement. Owner's indemnification
obligations under this Section 11 shall not extend to Claims to the extent resulting from
the gross negligence or willful misconduct of Indemnitees. The provisions of this
Section 11 shall survive the expiration or earlier termination of this Agreement.
12. Miscellaneous.
12.1 Amendments. This Agreement may be amended or modified only by a
written instrument signed by both Parties.
12.2 No Waiver. Any waiver by City of any term or provision of this Agreement
must be in writing. No waiver shall be implied from any delay or failure by City to take
action on any breach or default hereunder or to pursue any remedy allowed under this
Agreement or applicable law. No failure or delay by City at any time to require strict
performance by Owner of any provision of this Agreement or to exercise any election
contained herein or any right, power or remedy hereunder shall be construed as a
waiver of any other provision or any succeeding breach of the same or any other
provision hereof or a relinquishment for the future of such election.
12.3 Notices. Except as otherwise specified herein, all notices to be sent
pursuant to this Agreement shall be made in writing, and sent to the Parties at their
respective addresses specified below or to such other address as a Party may
designate by written notice delivered to the other parties in accordance with this
Section. All such notices shall be sent by: (i) personal delivery, in which case notice is
effective upon delivery; (ii) certified or registered mail, return receipt requested, in which
Resolution No. 2019-170 N.C.S. Page 16
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.
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 Agency
Relationship. Nothing in this Agreement is intended to or shall establish the Parties as
partners, co -venturers, or principal and agent with one another. The relationship of
Owner and City shall not be construed as a joint venture, equity venture, partnership or
any other relationship. City neither undertakes nor assumes any responsibility or duty
to Owner (except as expressly provided in this Agreement) or to any third party with
respect to the Project. Owner and its employees are not employees of City but rather
are, and shall always be considered independent contractors. Furthermore, Owner and
its employees shall at no time pretend to be or hold themselves out as employees or
agents of City. Except as City may specify in writing, Owner shall not have any
authority to act as an agent of City or to bind City to any obligation.
12.6 Action by the City. Except as may be otherwise specifically provided
herein, whenever any approval, notice, direction, consent or request by the City is
required or permitted under this Agreement, such action shall be in writing, and such
action may be given, made or taken by the City Manager of the City of Petaluma or by
any person who shall have been designated by the City Manager, without further
approval by the City Council.
12.7 Non -Liability of City and City Officials, Employees and Agents. No
member, official, employee or agent of the City shall be personally liable to Owner or
any successor in interest, in the event of any default or breach by the City, or for any
amount of money which may become due to Owner or its successor or for any
obligation of City under this Agreement.
12.8 Headings: Construction: Statutory References. The headings of the
Resolution No. 2019-170 N.C.S. Page 17
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
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 Governing Law; Venue. This Agreement shall be construed in
accordance with the laws of the State of California without regard to principles of
conflicts of law. Any action to enforce or interpret this Agreement shall be filed and
heard in the Superior Court of Sonoma County, California or in the Federal District
Court for the Northern District of California.
12.11 Attorneys' Fees and Costs. If any legal or administrative action is brought
to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled
to recover all reasonable attorneys' fees and costs incurred in such action.
12.12 Severability. If any provision of this Agreement is held invalid, illegal, or
unenforceable by a court of competent jurisdiction, the validity, legality, and
enforceability of the remaining provisions shall not be affected or impaired thereby.
12.13 Entire Agreement; Exhibits. This Agreement, together with the Loan
Agreement, the Note and the Deed of Trust contains the entire agreement of Parties
with respect to the subject matter hereof, and supersedes all prior oral or written
agreements between the Parties with respect thereto. Exhibits A and B attached hereto
are incorporated herein by this reference.
12.14 Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be an original and all of which together shall constitute one
agreement.
SIGNATURES ON FOLLOWING PAGES.
Resolution No. 2019-170 N.C.S. Page 18
IN WITNESS WHEREOF, the Parties have executed this Affordable Housing
Regulatory Agreement and Declaration of Restrictive Covenants as of the date first
written above.
OWNER:
a
By:
Print Name:
Title:
CITY:
City of Petaluma, a California municipal corporation and charter city
A
Peggy Flynn, City Manager
ATTEST:
Claire Cooper, City Clerk
APPROVED AS TO FORM:
Eric W. Danly, City Attorney
SIGNATURES MUST BE NOTARIZED.
Resolution No. 2019-170 N.C.S. Page 19
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or
validity of that document.
STATE OF CALIFORNIA
COUNTY OF
On before me, (here insert name and title of the
officer), personally appeared who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature
(Seal)
Resolution No. 2019-170 N.C.S. Page 20
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or
validity of that document.
STATE OF CALIFORNIA
COUNTY OF
On before me, (here insert name and title of the
officer), personally appeared who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature
(Seal)
Resolution No. 2019-170 N.C.S. Page 21
Exhibit A
PROPERTY
Real property situated in the City of Petaluma, County of Sonoma, State of California,
State of California described as follows:
APN: 007-022-058, 007-022-055, and 007-022-033
Resolution No. 2019-170 N.C.S. Page 22
Income Verification Form
TENANTINCOME CERTIFICATIONI?&x(Ne
❑ Initial Certification ❑ Recertification ❑ Other
J
Date:
Move -In Date:
MM-UD-YYYY
PART I - DEVELOPMENT DATA
Property Name: County: TCAC/k�i BIN#:
Address: _ If applicable, CDLAC/I:
Unit Number; # Bedrooms: Square Footage:
PART IL IiOUSEHOLD COMPOSITION
E) Vacant (Check if uric was vnetml on December 31 of the Effbelivo hate Year)
III1
Mbr# LastNamc
I-irstNanro
Middle
Initial
Relationship to Head
ofHouschold
-
Date ofBirth
(MWDD/YYYY)
-----
P/T Student
(Y or N)
Lost 4 digits of
Social Security #
r
HEAD
2
3
4
5
6
7
PART III. GROSS ANNUAL INCOMEU5[, ANNUAL AMOUNTS
Hl?
Mbr #
(A) (B)
Em to meat or Wages sec. Securil (Pensions
(C) (D)
—Public -Assistance Other Income
TOTAI.S
$ s
$ $
Add totals :from (A) through (D), above TOTAL INCOME
PART IV. INCOME FROM ASSETS
Ipi (I) (CI)
Mbr # 7fype of Asset C/I
_
(H)
Cash Value of Asset
(1}
Annual Income from Asset
-- TOTALS: $
Enter Column (H) Toad Passbook Bate
Ifover$5000 $• X 0,06% _ (J) Imputed Income
)Enter the greater of the total of colunm 1, or J: imputed income TOTAL INCOMh: TROM ASSETS (IC)
$
$
$ -
(L) Total Annual Household Income from all Sources [Add (E) + (K)]
$
HOUSEHOLD CERTI CATION &SIGNATURES
'[he information onthis foinm will be used to determine maximum income eligibility. Vwe have provided for each person(s) set forth in Part It acceptable verification of
current anticipated annual income. l/wo agree to notify the landlord immediately upon any member Ortho household moving out of the unit or any new member
moving in. Ihve agree to notify the landlord inmmediolely upon any mcnmber becoming a 4dl time student.
Under penalties of perjury, I1%vc certify that the informnlion presented in this Certification is true and accurate to the best of my/our knowledge and belief. The
undersigned further understands that providing falso representations herein constitutes an act of fraud. Passe, misleading or incomplete infgnnation may result in the
termination of tho lease agreement.
Signature (Date)
Signature (Date)
Signature (Date) Signature (nate)
Resolution No. 2019-170 N.C.S.
C'CAC TenmmtIncome Certification (May 20111)
Page 23
TOTAL ANNUAL, i1OUSEHOLD
INCOME FROM ALI, SOURCES:
From item (L) on page I
Current Federal LL TIT Income Limit per
Family Size:
If Applicable, Current Federal Bond
Income Until per Family Size: $ v
Household Income its of Move -in: $
PART VIII, PROGRAM TYPE
Mark the program(s) listed below (a. through e.) for which this household's unit will be counted toward the property's occupancy
requirements. Tinder each program marked, indicate the household's income status as established by this certification/recertification.
it. Tax Credit ❑ b. HOME ❑ e. Tax Exempt Bond ❑ d, AHDP ❑ c. ❑
(Nouse olTrogram)
See fart V above. Drcome Status Imome Stelt"s Income Slolus
❑ S50%AMGI ❑ 50%AMGi ❑ 50%AMGI GrcomeSkilus
❑ X 60% AMGI ❑ 60% AMGI ❑ 80% AMGi ❑
❑ S80%AMGI ❑ 80%AMGI ❑ OI** ❑ 01'
❑ 01** ❑ 01**
',*Upon recorliftcation household was determined over -income 01according to ell ibllity requirements of the program(s) marked above.
SIGNATURE OF OWNEWREPRESENTATIVE,
Based on the representations herein and upon the proof ani dommontation required to be submitted, (fie individual(s) named in Part II of this Tenant
Income Certification is/are eligible under the provisions of Section 42 orthe internal Revonuc Code, its amended, and the Land Use Restriction
Agreement (if applicable), to live in a unit in this Project,
SiGNA ruit1? OIrOWN1:It1R131'RI?SkN'I'A'I'IVG DATE
CTCAC Tenaut Income Certification (May 2018)
Resolution No. 2019-170 N.C.S. Page 24
RECiCRT11FICATION ONLY:
Unit Meets Fedcrol
Current Federal LIIITC
Income Restriction at:
income Limit x 140%:
❑ 60%1:150%
$
Unit Meets Deeper Targeting
household Income exceeds
Income Restriction at:
140% at revortitication:
❑ Other %
❑ Yes ❑No
Ilousehoid Size at Move -in:
I **IIUD Multi -Family Project Based Rentai Assistance (PBRA)
PART VIII, PROGRAM TYPE
Mark the program(s) listed below (a. through e.) for which this household's unit will be counted toward the property's occupancy
requirements. Tinder each program marked, indicate the household's income status as established by this certification/recertification.
it. Tax Credit ❑ b. HOME ❑ e. Tax Exempt Bond ❑ d, AHDP ❑ c. ❑
(Nouse olTrogram)
See fart V above. Drcome Status Imome Stelt"s Income Slolus
❑ S50%AMGI ❑ 50%AMGi ❑ 50%AMGI GrcomeSkilus
❑ X 60% AMGI ❑ 60% AMGI ❑ 80% AMGi ❑
❑ S80%AMGI ❑ 80%AMGI ❑ OI** ❑ 01'
❑ 01** ❑ 01**
',*Upon recorliftcation household was determined over -income 01according to ell ibllity requirements of the program(s) marked above.
SIGNATURE OF OWNEWREPRESENTATIVE,
Based on the representations herein and upon the proof ani dommontation required to be submitted, (fie individual(s) named in Part II of this Tenant
Income Certification is/are eligible under the provisions of Section 42 orthe internal Revonuc Code, its amended, and the Land Use Restriction
Agreement (if applicable), to live in a unit in this Project,
SiGNA ruit1? OIrOWN1:It1R131'RI?SkN'I'A'I'IVG DATE
CTCAC Tenaut Income Certification (May 2018)
Resolution No. 2019-170 N.C.S. Page 24
PART VI. RENT
Tenant Paid Monthly tient;
$
Federal hunt Assistance: $ *Source:
Monthly Utility Allowance:
$
Non-Pedcral Rent Assistance:
Other Monthly Non -optional charges:
$
'i'otal Monthly Ream Assistance: $
GROSS MON'1'I1LY RENT FOR UNIT:
*Source of Federal Assistance
(Tcmmt paid rentplusUtility Allowance &
I **IIUD Multi -Family Project Based Rentai Assistance (PBRA)
other non -optional charges)
$
2 Section 8 Moderate Rehabilitation
3 Public Housing Operating Subsidy
Maximum Federal LIHTC Rcnt Limit for
4 HOME Rental Assistance
this unit:
$
5 HUD Housing Choice Voucher (IICV), tonaut-based
—_—
61IUD Project -Based Voucher (PBV)
If Applicable, Maximum Fcdcral & Stale
7 USDA Section 521 Rental Assistance Program
LRITC Bond Rent Limit for this unit:
$
8 Other Federal Rental Assistance
0 Missing
Unit Meets Federal Rent Restriction at:
El60% El50%
If Applicable, Unit Meets Bond Rent
" (PBRA) includes; Section 8 New Construction/Subsiantial Rehabilitation;
Section 8 Loan Management; Section 8 Property Disposition; Section 202
Restriction aC
❑ 60% 1150%
Project Rental Assistance Conlrnets (PRAC)
Unit Meets Deeper Targeting Real
Restriction at:
❑ Other;
PART VIL STUDENT STATUS
*Student Explanation:
ARI; ALL OCCUPANTS FULIAIME S'I'UDLrN,rs?
Ifyos, Enter student explanation* I AFDC / TANF Assistance
(also attach documonlation) 2 Job Training Program
❑ yes ❑ no
3 Single Parent/Dependent Child
4 Married/Joint Return
Enter 5 Former Foster Care
1-5-
PART VIII, PROGRAM TYPE
Mark the program(s) listed below (a. through e.) for which this household's unit will be counted toward the property's occupancy
requirements. Tinder each program marked, indicate the household's income status as established by this certification/recertification.
it. Tax Credit ❑ b. HOME ❑ e. Tax Exempt Bond ❑ d, AHDP ❑ c. ❑
(Nouse olTrogram)
See fart V above. Drcome Status Imome Stelt"s Income Slolus
❑ S50%AMGI ❑ 50%AMGi ❑ 50%AMGI GrcomeSkilus
❑ X 60% AMGI ❑ 60% AMGI ❑ 80% AMGi ❑
❑ S80%AMGI ❑ 80%AMGI ❑ OI** ❑ 01'
❑ 01** ❑ 01**
',*Upon recorliftcation household was determined over -income 01according to ell ibllity requirements of the program(s) marked above.
SIGNATURE OF OWNEWREPRESENTATIVE,
Based on the representations herein and upon the proof ani dommontation required to be submitted, (fie individual(s) named in Part II of this Tenant
Income Certification is/are eligible under the provisions of Section 42 orthe internal Revonuc Code, its amended, and the Land Use Restriction
Agreement (if applicable), to live in a unit in this Project,
SiGNA ruit1? OIrOWN1:It1R131'RI?SkN'I'A'I'IVG DATE
CTCAC Tenaut Income Certification (May 2018)
Resolution No. 2019-170 N.C.S. Page 24
PART IX, SUPPLEMENTAL INFORMATION FORM
The California Tax Credit Allocution Committee (C'fCAC) requests the following information in order to comply with tite Housing
and Economic Recovery Act (HERA) of 2008, which requires all Low Income Housing Tax Credit{LIHTC) properties to collect and
submit to the U.S. Department of Housing and Urban Development (IIUD), certain demographic and economic information on tenants
residing in LIHTC financed properties. Although the CTCAC would appreciate receiving this information, you may choose not to
furnish it. You will not be discriminated against on the basis of this information, or on whether or not you choose to furnish it. If you
do not wish to furnish this information, please check the box at the bottom of the page and initial.
Rnter hoth'F.thnicity and Race codes for each household member (see below for codes').
TENANT DEMOGRAPHIC PROFILE
HH
Mbr1!
Last Name
First Name
Middle
initial
Race
Ethnicity
Disabled
1
--- —
2
3
5
6
The Following Race Codes should he used:
1- White- A person having origins in any of the original people of Europe, the Middle East or North Africa,
2 - Black/African American -A person having origins in any ofthe black racial groups of Africa. Terms such as "Ilaitiao" apply to this
category.
3 - American Indian/Alaska Native - A person having origins in any of the original peoples ofNorth and South America (including Central
America), and who maintain tribal affiliation or community attachment.
4 - Asian - A person having origins in any of the original peoples o£the Far Fast, Southeast Asia, or the Indian subcontinent:
4a -Asian India 4e -Korean
4b -Chinese 4f -Vietnamese
4c -Filipino 4g-01herAsian
4d - Japanese
5 -Native Ilawaiian/Other Pacific Islander -A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other
Pacific Islands:
5a -Native Hawaiian 50 -Samoan
5b--GuamauianorCbamorro 5d- Other Pacific Islander
6 - Other
7 -Did not respond, (Please initial below)
Note., Multiple racial calegorles may be indicaled as such: 31- American Indlan4,11aska Native & While, 14b - IYhite & Asian (Chinese), ele.
The Following Ethnicity Codes should he used:
1 •- Hispanic -A person of Cuban, Mexican, Puerto Ricim, South or Central American, or other Spanish culture or origin, regardless of race.
Terms such as "Latino' or "Spanish Origin" apply to this category.
2 - Not hispanic - A person not of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless
of race.
3 -Did not respond. (Please initial below)
Disability Status:
1 -Yes
if any member of the household is disabled according to fair Housing Act definition for handicap (disability):
• A physical or mental impairment which substantially limits one or more major life activities; a record of such an impairment or
being regarded as having such an impairment, For a definition of"physical or mental impairment" and other terms used, please
see 24 CFR 100.201, available at httpaHairhousing,com/legal-rescurclVhud-regulations/24-c6--100201-definitions.
• "Handicap" does not include current, illegal use of or addiction to a controlled substance.
An individual shall not be considered to have a handicap solely because that individual is transgender.
2 -No
3 - Dict not respond (Please initial below)
❑ Resident/Applicant: I do not wish to furnish information regarding ethnicity, race and other household composition.
(Initials) ,
(HHf1) I.
Resolution No. 2019-170 N.C.S.
CTCAC Tenant income Certification (Map 2018)
Page 25
INSTRUCTIONS FOR COMPLETING
TENANT INCOME CE11TIFICATION
This form is to be completed by the owner or air aalhoriaed representative.
Par( 1 - Development Data
Enter the type of tenant certification: Initial Certiflcalion (move -in), Recertification (armual recertification), or Other. ifother, designate the purpose
of the recertification (ix,, a unit tmnstcr, a change in household composition, or other state -required recertification).
Effective Date
Enter the effective date of the certification. For move -in, this should be the move -in date.
For annual income recertification's, this effective date should be no later than one year
from the effective date of the previous (re)cprlification.
Move -In Date
Enter file most recent date the household tax credit qualified. This could be the move -in
date or in an acquisition rehab property, this is not the date file tenaatmoved into the
unit, it is the most recent date the management company income qualified the unit for
tax credit purposes.
Property Name
linter the name of the development.
County
Enter the county (or equivalent) in which the building is located,
TCACII
Enter the project number assigned to the property hy'I'CAC, Please include hyphens
bctween the stete abbreviation, four digit allocating year, and projcel specific number.
For example: CA -2010-123
BiN ft
Later the building number assigned to the building (from iRS Form 8609).
Address
Enter the physical address of the building, including street number and name, city, state,
and zip code.
If applicable, CDLAC#
If project is awarrdcd 4% bonds please enter the project number assigned to the property
by CDLAC. Please include hyphens between the state abbreviation, four digit allocating
year, and project speeifue number. For example: 16-436
Unit Number
Enter the unit number.
# Bedrooms
Enter the number of bedrooms in the unit,
Square Footage
Enter the square footage for the entire unit,
Vacant Unit
Check if unit was vacant on December 31 of requesting year. For example, for the
collection of 2011 data, this would refer to December 31, 2011.
Part It—Household Composition
List all occupants ofthe unit. State each household member's relationship to the head of household by using one of tltc following definitions:
II head of Household
A Adult Co -Tenant
C Child
L Live-in Caretaker
Date of Birilt
Student Status
Last Four Digits of Social Security
Number
S Spouse
O Other Family Member
F Poster child(rcn)/adult(s)
N Mone of the above
Enter each household member's date of birth,
U Unborn Child/Anticipated
Adoption or Foster
Enter "Yes" if the household member is a fiull-time student or "NO" if the household
member is not it fill -time student.
For each tenant 15 years of age or older, enter the last tour digits of the social security
number or the last four digits of the alien registration number, irifle last four digits of
SSN or alien registration is missing, enter 0000. For tunants under ago 15, social security
number not required, although please enter 0000.
If there are more than 7 occupants, use all additional sheet of paper to list the remaining household members and attach it to the certification.
CTCAC Tenant income Cartifieation (May 2018)
Resolution No. 2019-170 N.C.S.
Page 26
Part III - Annual Income
See IIt1D Handbook 4350.3 for complete instructions on verifying and calculating income, including acceptable forms of verification.
From the third party verification forms obtained from eaeli income source, enter the gross amount anticipated to be received for the twelve months
from the effective date of the (re)certification. Complete it separate line for each income -earning member. List cacti respective household member
number 6-mn Pill( It. Include anticipated income only if documentation exists verifying pending employment, If any adult states zero-hiconic, please
note "zero" in the columns of Part 111,
Colum (A) Enter the annual amount of wages, salaries, tips, commissions, bonuses, and other income from employment;
distributed profits and/or net income from a business.
Column (B) Enter the annual amount of Social Security, Supplemental Security income, pensions, military retirement, etc,
Column (C) Eitter the annual amount of income received from public assistance (i,c., TANh, general assistance, disability,
etc.).
Column (D) Enter the € nnual 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 - Ineonic from Assets
See HUD Ifandbook 4350,3 for complete instructions oil verifying and Calculating income from assets, including acceptable forms of
verification.
From the third party verification forms obtained front cacti asset source, list the gross amount anticipated to be received during the twelve months
from the effective date of the certification. If individual household member income is provided, list the respective household member number from
Part 11 and complete a separate line for cath member.
Cultural (F) List the type of asset (i.e., checking account, savings account, etc.)
Colu€ a (0) Enter C (for current, if the family currently owns or holds the asset), or I (for imputed, if the family has disposed
of the asset for less than fair market value within two years of the effective (into of (re)ccrtification).
Column (H) Enter the cash value of the respective asset.
Column (1) linter the anticipated annual income from the asset (i.e,, savings account balance multiplied by the € nnual
Interest rate),
TOTALS Add the total of Column (I-1) and Column (1), respectively,
If lite tot€ l in Column (H) is greater than $5,000, you must do an imputed calculation of asset income. Enter the Total Cash Value, multiply by
0.06% and enter the amount in (J), Imputed Income.
Row (K) Enter the greater oflhe total in Column (1) or (.9
Row (L) Total linnual Household Income Prom all Sources Add (r) and (K) and enter the total
HOUSEHOLD CERTIFICATION AND SIGNATURES
After all verifications of Income and/or assets have been received and calculated, each household member ago 18 or older must sign and date die
Tenant income Certification, For move -in, it is recommended that the Tenant Income Certification be signed no earlier than 5 days prior to the
offective date of the certification,
Part V — Determination of Income Eligibility
Total Annual Household Income from. Enter the number from item (L).
all Sources
CurrentL111TC Income Limit per Enter the Current Move -in income Limit for the household size — specifically, the max
Family Size income limit for the federal 50% or 60% set aside.
Current Bond Income Limit per Family Euler the Current most restrictive Move -in Income Limit for the household size- specifically,
Size the max income limit incorporating both federal and in some instances more restrictive state
standards as reflected in the 50% or 60% set aside detailed in the Bond Regulatory
Agreement.
CfCAC Tenant Income Certification (May 2018)
Resolution No. 2019-170 N.C.S. Page 27
i louschold Income at move -in For recerfifications only, inter the household income front the move -in certification.
Household Size al Move -in Enter file number of household members from the trove -in certification,
Current Federal 1.11 ITC Income Limit x For reeertifications only. Multiply file current LAIITC Maxitntun Movc-fn Income Limit by
140%
140% and enter the total. 140% Is based on the Federal Set -Aside of20/50 or 40/00, as
elected by the owner ror the properly, not deeper targeting elections of 30%, 40%, 45%.
50%, etc, Below, indicate whether the household incomo exceeds that total, If the Gross
Amoral Income at recertification is greater that 140%ofthe LIIiTC income Limit per Family
Size at Move -in date (above), then the available unit rile must be followed.
Unit Meets Federal Income Restriction
Check the appropriate box for the income restriction (hat the household meets according to
Fit
what is required by (he federal wl-aside(s) liar the project,
unit Meets Deeper TargOing Income
if your agency requires un income restriction lower than the federal limit, enter the percent
Restriction
required.
Part F! - Herrn
Tenant Paid Monthly ]tent
Enter the amount the tenant pays toward rent (not including rent assistance payments such as
Section 8),
Federal Ren( Assistance
tinter the amount of rent assistance received from it federal program, Wally.
Non -Federal Renu Assistance
linter the amount of man -federal rent assistance received, if any.
Total Monthly Itent Assistance
linter the innounf of total rent assistance received, Wally,
Source of'Federal Rent Assistance
V tederai rent assistanec is received, indicate the single program source,
Monthly Utility Allowance
Enter the utility allowance. If the owner pays all utilities, enter zero.
Other Monthly Non -Optional Charges
Enter the amount oftion-optional charges, such as mandatory garage rent, storage lockers,
charges for services provided by the dcvelopmcol, cle.
Gross Monthly [tent for Unit
Enter the total of'I'cnant Paid Rent plus Utility Allowance and other non -optional charges.
The total niny NOT include amounts other than Tenant Paid Rent, Utility Allowances and
other non -optional charges. in accordance with the definition of Gross Rent in IRC
§42(g)(2)(B), it may not include any rent assistance amount,
Maxinuun LiFiTC Rent l.hnil lbr this
Enter the maximum allowable gross rout for the unit. This amount must be file maximunn
knit
amount allowed by (lie Current income Linda per Family size -- specifically, (he max rent
limit for the federal 50% or 60% set aside,
Maximum I.iIJTC Bond Rent Limit for
Filter the inaxinuun allowable gross rent 0x the unit, This amount must be the nmximum
this unit
amount allowed by the Current Income limit per Family Size -- specifically, the max rent
incorporating both federal and in some instances more restrictive state standards as reflected
in the 50"/0 or 60% set aside detailed in the Bond Regulatory Agreement.
Unit Meets Federal Rent Restriction at
indicate the appropriate rent restriction (lint the unit meets according to what is required fired by
the federal scl-asides) for the project.
Unit Meets Bond Rent Restriction to
Indicate the appropriate rent restriction that the unit meets according to what is ree int rcd by
the federal and state law for the project,
Unit Meets Deeper Targeting Rent
If your agency requires a rent restriction Io"vr than the federal limit, enter the percent
Restriction at
required,
Part VII - Student Status
if til household members are full time* students, check "yes". Full-time status is determined by the school the student uttcnds. if at least one
household member is not a fill -time student, check "no."
It'"yes" is checked, rho upl>ropriate exemption must be listed in the box io the right. II'none of the exemptions apply, the household is ineligible to
rent the unit,
CTCAC Tenant Income Certification (Miry 2018)
Resolution No. 2019-170 N.C.S. Page 28
Part VIII — Program Type
Mark the program(s) 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 cerlifrcation/recertification. If the property does not pariicipate. in the HOME, Tax -
Exempt Bond, AtTordable Housing Disposition, or other housing program, leave those sections blank.
Tax Credit See Part V above,
HOlvIE If the property participates in the HOME program and the unit this household Will occupy will count towards the HOME program
set -asides, mark the appropriate box indicting the household's designation.
Tax Exempt If tho properly participates in the Tax Exempt Bond program; mark the appropriate box indicating the household's designation.
Bond
AHDP if the property participates in the Affordable Housing Disposition Pro&qiun (AHDP), and this household's unit will count towards
the set-aside requirements, select the appropriate box to indicate if the household is a VLI, Lt or OI (at recertification) household;
Other if the property participates in any other affordable housing program, complete the information m appropriate.
SIGNATURE. OF OWNh,R/REPRESENTATIVG
It is the responsibility of the owner or the oNvner's representative to sign and date this document immediately following execution by the residont(s).
The responsibility ofdocumenting 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,
7lrese instructions should not be considered a complete guide on lax credit compliance. 'rhe responsibility for compliance with federal program
regulations lies with the owner of the building(s) for which the credit is allowable.
PART IX, SUPPLEMENTAL. INFORMATION
Complete lids portion of llrefortn of stove -in and at recerliftcallon's (only if household coutposttlon llas clianged front the prerlous
year's cerliflcation).
Tenant Demographic Profile Complete for each member ofthe household, including minors. Use codes listed on
supplemental form for Race, Ethnicity, and Disability Status.
Resident/Applicant Initials All tenants who wish not to furnish supplemental information should initlal.this section.
PurenUGuardian may complete and initial for minor child(ren),
CTCAC Tenant Income Certification (May 2018)
Resolution No. 2019-170 N.C.S. Page 29