HomeMy WebLinkAboutRESOLUTION 2025-054 N.C.S. 05/25/2025Resolution No. 2025-054 N.C.S Page 1 of 3
Resolution No. 2025-054 N.C.S.
of the City of Petaluma, California
RESOLUTION APPROVING A RESIDENTIAL DENSITY BONUS AGREEMENT FOR THE 100%
AFFORDABLE DEVELOPMENT PROJECT AT 2 ROVINA LANE, IN COMPLIANCE WITH
PETALUMA IMPLEMENTING ZONING ORDINANCE SECTION 27.090
WHEREAS, the proposed 2 Rovina Lane Apartments project consists of a 32-unit, 100% affordable
multifamily residential development on a ±1-acre infill site located at 2 Rovina Lane in the City of Petaluma; and
WHEREAS, the project qualifies for an 80% density bonus pursuant to California Government Code Section
65915 and Petaluma Implementing Zoning Ordinance (IZO) Chapter 27, having committed to restricting 100%
of its units (excluding one manager’s unit) to households earning between 30% and 80% of Area Median Income
(AMI); and
WHEREAS, on April 23, 2024, the Planning Commission held a duly noticed public hearing to consider the
request for Site Plan and Architectural Review and a Residential Density Bonus, at which time all interested
parties had the opportunity to be heard; and
WHEREAS, on April 23, 2024, the Planning Commission considered the staff report and all public
comments, and adopted a resolution to make findings to approve Site Plan and Architectural Review and to make
a recommendation to the City Council to approve a Residential Density Bonus Agreement; and
WHEREAS, Petaluma Implementing Zoning Ordinance Section 27.090 requires applicants for a Density
Bonus, concession and/or incentive to enter into a Residential Density Bonus Agreement with the City, and that
this agreement be approved by the City Council; and
WHEREAS, IZO Section 27.090 provides the requirements for a Residential Density Bonus Agreement,
which have been incorporated into the draft Residential Density Bonus Agreement (DBHA) for the project,
attached hereto and incorporated into this resolution as Exhibit A, and memorializes affordability restrictions,
implementation of State-allowed development incentives, a schedule for unit production, and annual compliance
reporting requirements to ensure the long-term affordability and administration of the deed-restricted units; and
WHEREAS, the terms of the DBHA are substantially similar to those the City has executed with other
developers as part of previous density bonus entitlements and reflect the City’s standard agreement structure used
to implement State Density Bonus Law; and
WHEREAS, execution of the DBHA is also a necessary step to allow the developer to obtain external
financing, as lenders and public funding agencies require executed affordability agreements as part of their
underwriting and due diligence processes; and
WHEREAS, approval of the Density Bonus Housing Agreement is in the public interest and consistent with
the goals, policies, and programs of the Petaluma General Plan and Housing Element; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows:
1.Declares the above recitals to be true and correct and are incorporated into this resolution as findings of the
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Resolution No. 2025-054 N.C.S Page 2 of 3
City Council.
2.Finds that the Project, as demonstrated in the CEQA Exemption Memo included as Attachment 2 to the
concurrent staff report, is exempt pursuant to CEQA Guidelines Section 15194 (Affordable Housing
Exemption). As detailed therein, the project meets the eligibility requirements set forth in Section 15192
(Threshold Requirements for Exemptions for Affordable Housing) and is consistent with the criteria set forth
in Section 15194. This is the same finding that Planning Commission made on April 23, 2024, and the time
to challenge the City's CEQA determination has lapsed. Moreover, the execution of the Density Bonus
Housing Agreement is an administrative action undertaken to implement State-mandated affordability
requirements and, as such, does not constitute a "project" under CEQA pursuant to Guidelines Section 15378.
It falls squarely within the scope of the City’s prior CEQA determination and does not trigger additional
environmental review.
3.Based on its review of the entire record herein, including the May 16, 2022, City Council staff report, all
supporting, referenced, and incorporated documents, and all comments received, the City Council hereby
approves the Residential Density Bonus Agreement attached as Exhibit A hereto and incorporated herein by
reference and authorizes the City Manager or her designee to execute the Residential Bonus Agreement.
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
Council of the City of Petaluma at a Regular meeting on the 5th day of May 2025,
by the following vote:
Approved as to
form:
__________________________
City Attorney
AYES: McDonnell, Barnacle, Cader Thompson, Nau, Quint, Shribbs
NOES: DeCarli
ABSENT: None
ABSTAIN: None
ATTEST: ______________________________________________
City Clerk
______________________________________________
Mayor
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EXHIBIT A
Space above this line for Recorder’s use. APN: 006-051-076-000
AFFORDABLE HOUSING & DENSITY BONUS
REGULATORY AGREEMENT
AND
DECLARATION OF RESTRICTIVE COVENANTS
by and between
THE CITY OF PETALUMA
AND
Petaluma Pacific Associates, LLP
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
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This Affordable Housing & Density Bonus Regulatory Agreement and Declaration of Restrictive Covenants (this “Agreement”) is entered into effective as of Enter Date (“Effective
Date”) by and between the City of Petaluma, a California municipal corporation and charter city
(“City”) and the Petaluma Pacific Associates LP, a California limited partnership (“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 2 Rovina Lane in the City of
Petaluma, California, known as Sonoma County Assessor’s Parcel No. 006-051-076- 000, and more particularly described in Exhibit A attached hereto (the “Property”).
B.The proposed 2 Rovina Lane Apartments project consists of a 32-unit, 100%affordable multifamily residential development on a ±1-acre infill site located at 2 Rovina Lane in the City of Petaluma (the “Project”).
C.The Project qualifies for an 80% density bonus pursuant to California Government
Code Section 65915 and Petaluma Implementing Zoning Ordinance (IZO) Chapter 27, having committed to restricting 100% of its units (excluding one manager’s unit) to Lower Income households as defined by the Health and Safety Code 50079.5 earning at or below 80% and of Area Median Income (AMI).
D.On April 23, 2024, the Planning Commission held a duly noticed public hearing to
consider the request for Site Plan and Architectural Review and a Residential Density Bonus, at which time all interested parties had the opportunity to be heard.
E.On April 23, 2024, the Planning Commission considered the staff report and allpublic comments, and adopted planning commission resolution NO. 2024-04, which has been
adopted herein to make findings to approve Site Plan and Architectural Review and to make a
recommendation to the City Council to approve a Residential Density Bonus Agreement.
F.Petaluma Implementing Zoning Ordinance Section 27.090 requires applicants for aDensity Bonus, concession and/or incentive to enter into a Residential Density Bonus Agreement with the City, and that this agreement be approved by the City Council
G.IZO Section 27.090 provides the requirements for a Residential Density Bonus
Agreement, which have been incorporated into the draft Residential Density Bonus Agreement (DBHA) for the project, attached hereto and incorporated into this resolution as Exhibit A, and memorializes affordability restrictions, implementation of State-allowed development incentives, a schedule for unit production, and annual compliance reporting requirements to ensure the long-term affordability and administration of the deed-restricted units
H.The terms of the DBHA are substantially similar to those the City has executedwith other developers as part of previous density bonus entitlements and reflect the City’s standard agreement structure used to implement State Density Bonus Law.
I.Execution of the DBHA is also a necessary step to allow the developer to obtainexternal financing, as lenders and public funding agencies require executed affordability
agreements as part of their underwriting and due diligence processes.
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J.Approval of the Density Bonus Housing Agreement is in the public interest andconsistent with the goals, policies, and programs of the Petaluma General Plan and Housing Element.
K.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 a total of thirty-one (31) units in the Project as below market-rate dwelling units of which 31 units will be available for Lower Income (LI) Households
at Affordable Rent (the “BMR Units”) per California Health and Safety Code section 50079.5 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.
L.The purpose of this Agreement is to satisfy the requirements of the Density BonusOrdinance and to regulate and restrict the rental of the BMR Units. 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.
1. Incorporation of Recitals; Definitions.
1.1 Incorporation of Recitals; Acknowledgement. The Parties acknowledge the truth ofthe foregoing Recitals which are hereby incorporated into this Agreement. Owner acknowledges and agrees that the City has granted concessions and or waivers for the Project, as stated in attachment 2 to the April 23, 2024, Planning Commission public hearing, 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 Lower Income Households as defined by California Health and Safety Code section 50079.5, shall not exceed the following calculations: 80 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, two people per bedroom
plus one.
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“BMR Unit” means any one of the 31 units in the Project (as approved April 23, 2024, by the Planning Commission) that are required to be rented to Eligible Households at Affordable Rent in accordance with the Density Bonus Ordinance and this Agreement.
“Claims” is defined in Section 11.
“Density Bonus Ordinance” means the City of Petaluma Implementing Zoning Ordinance Chapter 27.
“Density Bonus Statute” means California Government Code Section 65915 et seq.
“Effective Date” is the date set forth in the preamble to this Agreement.
“Eligible Household” means a household that qualifies as a Lower-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.
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“Project” is defined in Recital B.
“Property” is defined in Recital A.
“Lower Income Household” means a household whose Gross Income does not exceed the qualifying limit applicable to Sonoma County for 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, the Project’s
BMR Unit shall be rented at Affordable Rent and occupied (or if vacant, available for occupancy) by Eligible Households. In the event that following initial occupancy of the BMR Unit, a tenant’s household Gross Income increases so that the tenant no longer qualifies as an Eligible Household, Owner may raise the tenant’s rent to an amount net of utilities, that is the lesser of the rent for a comparable market-rate dwelling 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 that complies with the definition of BMR Unit to an Eligible Household at an Affordable Rent.
2.2 Rent for Restricted Units. Rent for BMR Units 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 market rate dwellings in the Project. The BMR Units may have different interior finishes and features than market-rate dwellings in the Project so long as such finishes and features are durable, of good quality, compatible with market-rate dwellings, and consistent with contemporary standards for new housing. The BMR Units must contain a dishwasher, refrigerator, garbage disposal, and cooking facilities. The BMR Units need not
contain optional upgrades and luxury items, and Owner may install such optional upgrades and luxury items in market-rate dwellings in the Project. The City shall have the right to inspect the BMR Units to determine whether it has been constructed in accordance with this Section. Occupants of the BMR Units shall have access to all Project amenities and recreational facilities available to occupants of the Project’s market-rate dwellings.
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3.Tenant Selection.
3.1 Marketing BMR Units; Use of County List of Prospective Tenants. Owner shall
offer the BMR Units for rent at the same time or sooner than the market-rate dwellings in the
Project are offered for rent. Owner agrees to use any list maintained by the Sonoma County Housing Authority for the Section 8 Housing Choice Voucher program or similar program.
3.2 Income Verification. Prior to entering into a commitment to rent or lease the BMR Units, Owner shall obtain and review information provided by the prospective tenant regarding the
prospective tenant’s household income and status 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)
3.3 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 dwellings 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 dwellings in the Project are subject to the same application and credit and background check.
3.4 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.
3.5 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 Unit. The lease or rental agreement for the BMR Units
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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.
4. Reporting Requirements; Access to Information; Inspections.
4.1 Tenant Certification. Owner or Owner’s authorized agent shall obtain from eachhousehold prior to initial occupancy of the 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 require: (a) the identity of each household member; and (b) the tenant’s total
household Gross Income;. Owner shall retain such certificates for not less than five (5) years, and upon City’s request, shall make the originals available for City inspection.
4.2 Annual Report; Inspections. Following completion of Project construction, by not later than April 30 of each year during the term of this Agreement, Owner shall submit an annual report (“Annual Report”) to the City in form satisfactory to City, together with a certification that
the Project is in compliance with the requirements of this Agreement. The Annual Report shall, at
a minimum, include the following information for the BMR Units: (a) unit number; (b) current rent and other charges; (c) dates of any vacancies during the previous year; (d) the number of people residing in the unit; (e) total household Gross Income of the tenant; and (f) 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 request from time to time in order to demonstrate compliance with this Agreement. The Owner shall be responsible for paying project monitoring fees as outlined in the City of Petaluma fee schedule.
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 ofany 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 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 possible.
4.4 Access to Records; Inspections.
(1)With at least 48 hours’ notice, during normal business hours, Owner shallprovide City and its authorized agents and representatives access to any books, documents, papers,
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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 herebydeclare their express intent that the covenants and restrictions set forth in this Agreement shall runwith 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 dwellings orcommercial space within the Project) shall be subject to all of the duties and obligations imposedhereby for the full term of this Agreement. Each and every contract, deed, ground lease or otherinstrument 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 andobligations are set forth in such contract, deed, ground lease or other instrument; provided, however,that upon the expiration of the term of this Agreement, said covenants and restrictions shall expire.This Agreement shall bind any successor, heir or assign of the Owner, whether a change in interest
occurs voluntarily or involuntarily, by operation of law or otherwise. Owner agrees for itself and
its successors that in the event that a court of competent jurisdiction determines that the covenantsherein do not run with the land, such covenants shall be enforced as equitable servitudes against theProperty 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 covenantsrunning with the land pursuant to California Civil Code section 1468 and not as conditions
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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 concernthe land by enhancing and increasing the enjoyment and use of the Property by the BMRUnit tenants; and
(d)All covenants and restrictions contained herein without regard to technical classification ordesignation shall be binding upon Owner and its successors in interest for the benefit of theCity, and such covenants and restrictions shall run in favor of the City for the entire periodduring which such covenants and restrictions shall be in force and effect, without regard towhether 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 managementfunctions 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 dwellings, common areas, meeting rooms, landscaping, driveways, parking areas and walkways) in a condition free of all waste, nuisance, debris, unmaintained landscaping, graffiti, disrepair,
abandoned vehicles/appliances, and illegal activity, and shall take all reasonable steps to prevent
the same from occurring on the Property or at the Project. Owner shall prevent and/or rectify any physical deterioration of the Property and the Project and shall make all repairs, renewals and replacements necessary to keep the Property and the improvements located thereon in good condition and repair. Owner shall provide adequate security measures for the Project, including
without limitation, the installation of adequate lighting and deadbolt locks.
7.3 Fees, Taxes, and Other Levies. Owner shall be responsible for payment of all fees, assessments, taxes, charges, liens, and levies applicable to the Property or the Project, including without limitation possessory interest taxes, if applicable, imposed by any public entity, and shall pay such charges prior to delinquency. However, Owner shall not be required to pay any such
charge so long as (a) Owner is contesting such charge in good faith and by appropriate proceedings,
(b) Owner maintains reserves adequate to pay any contested liabilities, and (c) on final determination of theproceeding or contest, Owner immediately pays or discharges any decision or judgment rendered against it,together with all costs, charges and interest.
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7.4 Insurance Coverage. Throughout the term of this Agreement Owner shall comply with the insurance requirements set forth in Exhibit B, and shall, at Owner’s expense, maintain in
full force and effect insurance coverage as specified in Exhibit B.
7.5 Property Damage or Destruction. If any part of the Project is damaged or destroyed, Owner shall repair or restore the same, consistent with the occupancy and rent restriction requirements set forth in this Agreement. Such work shall be commenced as soon as practicable after the damage or loss occurs and shall be completed within one year thereafter or as soon as
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 Citibank, N. A. and Wilmington Trust, National Association, 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 request.
9. Mortgagee Protection. No violation of any provision contained herein shall defeat or render
invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any
portion of the Project or the Property, and the purchaser at any trustee’s sale or foreclosure sale shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall be bound by and subject to this Agreement from and after such trustee’s sale or foreclosure sale. Promptly upon determining that a violation of this Agreement
has occurred, City shall give written notice to the holders of record of any mortgages or deeds of
trust encumbering the Project or the Property that such violation has occurred.
10. 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;
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(c)A default arises under any loan secured by a mortgage, deed of trust or othersecurity 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 underthis 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-monetarydefault 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 thereafterprosecute 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 theterms 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 to be deposited into the city housing fund;
(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 reasonableattorneys’ 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 withOwner’s construction, management, or operation of the Property and the Project or any failure toperform any obligation as and when required by this Agreement. Owner’s indemnificationobligations 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.
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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: (a) personal delivery, in which case notice is effective upon delivery; (b) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; or (c) nationally recognized overnight courier, with charges prepaid or charged to
the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the
delivery service.
City: City of Petaluma 11 English Street Petaluma, CA 94952
Attention: City Manager
Owner: Petaluma Pacific Associates, LP 430 E State Street, Suite 100
Eagle, ID 83616
Attn: Caleb Roope
Eagle, ID 86316
Attn: Caleb Roope
With copies to:
Central Valley Coalition for Affordable Housing, a
California
nonprofit public benefit corporation
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3351 M Street, Suite 100 Merced, CA 95348 Attn: Christina Alley
And
Petaluma Pacific HCDC Investor, LLC 7777 Bonhomme Ave, Suite 1400 St. Louis, MO 63105
Attention Asset Manager
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 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.
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12.6 Action by the City. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by the City is required or permitted
under this Agreement, such action shall be in writing, and such action may be given, made or taken
by the City Manager of the City of Petaluma or by any person who shall have been designated by the City Manager, without further approval by the City Council.
12.7 Non-Liability of City and City Officials, Employees and Agents. No member, official, employee or agent of the City shall be personally liable to Owner or any successor in
interest, in the event of any default or breach by the City, or for any amount of money which may become due to Owner or its successor or for any obligation of City under this Agreement.
12.8 Headings; Construction; Statutory References. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair
meaning and not strictly for or against any Party. All 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 A, B, and C 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 THE FOLLOWING PAGES.
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IN WITNESS WHEREOF, the Parties have executed this Affordable Housing & Density Bonus Regulatory Agreement and Declaration of Restrictive Covenants as of the date first written
above.
OWNER:
, a
PETALUMA PACIFIC ASSOCIATES, LP, a California limited partnership
By: TPC Holdings IX, LLC, an Idaho limited liability company
Its: Administrative General Partner
By: Pacific West Communities, Inc. an Idaho corporation Its: Manager
By: ____________________ Name: Caleb Roope Its: President and CEO
By: CENTRAL VALLEY COALITION FOR AFFORDABLE HOUSING, a California Nonprofit Public Benefit Corporation Its: Managing General Partner By: ____________________ Name: Christina Alley
Its: Chief Executive Officer
CITY:
City of Petaluma, a California municipal corporation and charter city
By:
Peggy Flynn, City Manager
ATTEST:
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Caitlin Corley City Clerk
APPROVED AS TO FORM:
Eric W. Danly, City Attorney
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Exhibit A
PROPERTY
Real property situated in the City of Petaluma, County of Sonoma, State of California, State of California described as follows:
Insert legal description.
APN: 006-051-076-000
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Exhibit B
INSURANCE REQUIREMENTS
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EXHIBIT C
Income Verification Form
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TENANT INCOME CERTIFICATION D Initial Certification D Recertification D Other Effective Date: Move-In Date: (MM-DD-YYYY) PART I-DEVELOPMENT DATA Property Name: County: TCAC#: BIN#: Address: If applicable, CDLAC#: Unit Number: #Bedrooms: Square Footage:
HOUSEHOLD CERTIFICATION & SIGNATURES
The information on this form will be used to determine maximum income eligibility. Vwe have provided for each person(s) set forth in Part □ acceptable verification ofcurrent anticipated annual income. 1/we agree to notify the landlord immediately upon any member of the household moving out of the unit or any new member moving in. I/we agree to notify the landlord immediately upon any member becoming a full time student.
Under penalties of perjury, I/we certify that the information presented in lhis Certification is true and accurate to the best of my/our knowledge and belief The undersigned further understands that providing false representations herein constitutes an act of fraud. False, misleading or incomplete information may result in the termination of the lease agreement
Signature (Dale) Signature (Da1e)
Signature (Da1e) Signature (Date)
CTCAC Tenant Income Certification (May 2018)
PART II. HOUSEHOLD COMPOSITION D Vacant (Check if unit was vacant on December 31 of the Effective Date Year)
HH
1
3
5
6
7
HEAD (MM/DD/YYYY)
PART HI. GROSS ANNUAL INCOME (USE ANNUAL AMOUNTS) HH
Add totals from (A) through (D), above $
TOTAL INCOME (E):
$
PART IV. INCOME FROM ASSETS
TOTALS:
$ X 0.06%
$ $
=
(L) Total Annual Household Income from all Sources [Add (E) + (K)] $
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PART V. DETERMINATION OF INCOME ELIGIBIUTY
TOTAL ANNUAL HOUSEHOLID IrNCOME FROM ALL SOURCES:
From item (L) onpage•I •$ ------------ •
RECERTIFICATION ONLY:
Unit Meets Federal Current Federal Lil-ITC Income Restriction at: Income Limit x 140%:D 60%0 50% $
Current Federal LIHTC fncome Limit per
Family Size: _$
ff Applicable, Current Federal Bond
Income Limit per FamiJy Size: _$ _
Unit Meets Deeper Targeting Income Restriction at: D Other %
Household Income exceeds 140% ttt recertification: D Yes ONo
Household Income as ofMove-io: -$---------Household Size nt Move-in:
PART VI. RENT
Tenant Paid Moothly Rent: $ Federal Rent Assistance: $ •source: ---
Monthly Utility AllowaInce: $ Non-Federal Rent Assistance: $ (*0-8) Other Monthly Non-optional charges: $ Total Monthly Rent Assistance: $
GROSS MONTHLY RENT FOR UNIT, I •source of Federal Assistance (To••m p,id rem pl U.Hicy Allo™ & I .. HUD Multi-Family Project Based Rental Assistance (PBRA) other non-optional charges) $ 2 Section 8 Moderate Rehabilitation 3 Public Housing Operating Subsidy
Maximum Federal LIHTC Rent Limit for 4 HOMERe11tal Assistance
this unit: $ 5 HUD Housing Choice Voucher (I-ICV), tenant•based 6 HUD Project-Based Voucher (PBV) [f Applicable, Maximum Federal & State 7 USDA Section 521 Rental Assistance Program LIHTC Bond Rent Limit for tilis unit: $ 8 Other Federal Rental Assistance 0 Missing Unit Meets Federal Rent Restriction at: 0 60% 0 50%
If Applicable, Unit Meets Dond Rent .. (PBRA) Includes: Section 8 NewConslruction/Substantial Rehabilitation;
Restr.iction at: D 60% 050%Section 8 Loan Management; Section 8 Property Disposition; Section 202 Project Rental Assistance Contracts (PRAC) Unit Meets Deeper Targctiag Rent
Restriction at: D Other:%
PARTVIJ. STUDENT STATUS
•student Explanation:
ARE ALL OCCUPANTS FU L TIME STUDENTS? If yes, Enter student explanation• I AFDC I TANF Assistance(also attach documentation) 2 Job Trai.ning Program
Dyes Ono 3 Single Parent/Dependent Cltild4 Married/Joint RetumI Enter 15 Former Foster Care 1-5
SIGNATURE OF OWNER/REPRESENTATIVE
Based on the representations herein and upon the proof and documentation required to be submitted, the i.ndividual(s) named in Part ll of this Tenant Income Certification is/are eligible under the provisions of Section 42 of the Internal Revenue Code, us amended, and th.e Land Use Restriction Agreement (if applicable), to live in a unit in this Project.
SIGNATURE OF OWNER/REPRESENTATIVE DATE
2 CTCAC Tenant Income Certification (May 2018)
"*Upon recertification household was determined over-income (01) accordini:o: to eli11:ibility reQuircments of the program(s) marked above.
PART VIU. PROGRAM TYPE
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PART IX. SUPPLEMENTAL INFORMATION FORM
The California Tax Credit Allocation Committee (CTCAC) requests the following information in order to comply with the 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 (HUD), 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 infonnation, or on whether or not you choose to furnish it. Tfyou
do not wish to furnish this information, please check the box al the bottom of the page and initial.
Enter both Ethnicity and Race codes for each household member (see below for codes). TENANT DEMOGRAPHIC PROFILE
HH Mbr# Last Name First Name Middle faitial Race Ethnicity Disabled
I
2
3
4
5
6
7
The Following Race Codes should be 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 of the black racial groups of Afiica. Terms such as "Haitian" apply to this category.
3-American Indian/Alaska Native-A person having origins in any of the original peoples ofNorth and South America (iucluding Central America), and who maintain tribal affiliation or community attachment.
4-Asian -A person having origins in any of the original peoples of the Far East, Southeast Asia, or the lndian subcontinent:
4a - Asian India 4b-Chinesc 4c- Filipino 4d - Japanese
4e-Korean 4f - Vietnamese 4g - Other Asian
s - Native Hawaiian/Other Pacific Islander-A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands:
5a - Native Hawaiian
5b - Guamanian or Chamorro
6 -Other
5c-San1oan 5d- Other Pacific Islander
7 - Did not respond. (Please initial below)
Note: Multiple racial categories may be indicated as such: 3 I - American Indian/Alaska Native & White, 14b- White & Asian (Chinese), e/c.
Tbe Following Ethnicity Codes should be used: 1 - Hispanic -A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. Terms such as "Latino" or "Spanish Origin" apply to this category. 2 - Not Hispanic- A person not of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. 3 -Did not respond. (Please initinl below)
Disability Status:
l- Yes If any member of the household is disabled according to Fair Housing Act definition for handicap (disability): •A physical or mental impairment which substanlialJy limits one or mol'e 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 I 00.201, available at http://fairhousing.com/legal-research/hud-regulations/24:cfr- I 00201-dclinitions."Handicap" does not include cwTcnt, 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-Did not respond (Please initial below}
D Resident/Applicant: l do not wish to furnish information regarding etl:micity, race and other household composition.
(Initials) _
(I-IH/1) I. 2. 3. 4. 5. 6. 7.
3 CTCAC Tenant Income Certi:I:ication (May 2018}
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INSTRUCTIONS FOR COMPLETING TENANT INCOME CERTIFICATION
This/om, is lo be completed by the owner or an authorized representative.
Part I - Development Data
Enter the type of tenant certification: Initial Ce11ification (move-in), Recertification {annual recertification), or Other. If other, designate tbe purpose oflhe recertification (i.e., a unit transfer, a change in household composition, or other state-required rece1tification).
Effective Date
Move-In Date
Property Name
County
TCAC#
BlN#
Address
If applicable, CDLAC#
Unit Number
# Bedrooms
Square Footage
Vacant Unit
Enter the effective date of the certification. For move-in, this should be the move-in date. Fa,· annual income recertification's, this effective date should be no later than one year from the effective date of the previous (rc)ccrtification.
Enter tbe most recent date the household tax credit qualified. This could be the move-in
date or in an acquisition rehab prope1ty, this is not the date the tennnt moved into the unit, it is the most recent date the management company income qualified the unit for tax credi.t purposes.
Enter the name of the development.
Enter the county (or equivalent) in which the building is located.
Enter the project number assigned to the property by TCAC. Please include hyphens between the state abbreviation, four digit allocating year, and project specific number. For example: CA-2010-123
Enter the building number assigned to the building (from IRS Fann 8609).
Enter the physical address oftbe building, including street number and name, city, state, and zip code.
If project is awarded 4% bonds please enter the project number assigned to the property by CDLAC. Please include hyphens between the state abbrevintion, four digit allocating year, and project specific number. For example: 16-436
Enter the unit number.
Enter the number of bedrooms in the uuit.
Enter the square footage for the entire unit.
Check ifunit was vacant on December 31 ofrequesting year. For example, for tbe co.llection of20l1 data, this would ,·efer to December 31,201l.
"Part IT - Household Composition
List all occupants of the unit. State each household member's relationship to the head of household by using one of the following definitions:
H Head ofHousehold A Adult Co-Tenant
C Child L Live-in Caretaker
s Spouse
0 Olber Family Member F Foster child(ren)/adult(s) N None of the above
u Unborn Child/Anticipated
Adoption or Foster
Date of Birth
Student Status
Last Four Digits of Social Security
Number
Enter each household member's date ofbirtb.
Enter "Yes" if the household member is a full-time student or "NO" if the household member is not a full-time student.
For each tenant 15 years of age or older, enter the last four digits of the social security
number or the last four digits of the alien registration number. "If the last four digits of
SSN or alien registration is missing, enter 0000. For tenants under age 15, social security number not required, although please enter 0000.
If there are more than 7 occupants, use an additional sheet of paper to list the remaining household members and attach it to the certification.
4 CTCAC Tenant Income Certification {May 2018)
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Pa1·t lll - Annual Income
See HUD Handbook 4350.3 for complete instructions on verifying and calculating income, including acceptable forms of verification.
From lbe third party verification forms obtained from each income source, enter the gross amount anticipated to be received for the twelve months from the effective date of the (re)certification. Complete a separate line for each income-earning member. List each respective household member
number from Part n. Include anticipated income only if documentation exists verifying pending employment. lfany adult states zero-income, pleasenote "zero" in the columns of Part Ill.
Column (A)
Column (B)
Column (C)
Enter the annual amount of wages, salaries, tips, commissions, bonuses, and other income from employment; distributed profits and/or net income from a business.
Enter the annual amount of Social Security, Supplemental Security .Income, pensions, military retirement, etc.
Enter the annual amount of income received from public assistance (i.e., TANF, general assistance, disability, etc.).
Column (D)
Row(E)
Enter the annual amount of alimony, child support, unemployment benefits, or any other income regularly received by the household.
Add 1he totals from columns (A) through (D), above. Enter this amount.
Part IV - Income from Assets
Sec HUD Handbool< 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 tbe twelve months from the effective date of the certification. If individual household member income is provided, list the respective household member number from Part U and complete a separate line for each member.
Column (F)
Column (G)
Column (H)
Column([)
List the type of asset (i.e., checking account, savings account, etc.)
Enter C (for current, if the family currently owns or bolds the asset), or I (for imputed, iftbe family has disposed of the asset for less than fair market value within two years of the effective date of(re)certi:fication).
Enter the cash value of1he respective asset.
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 (H) and Column (I), respectively.
lfthe total in Column (I-I) 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 lncorne.
Row (K)
Row (L)
Enter the greater of the total in Column(/) or (J)
Total Annual Household income F)·om all Sources Add (E) and (K) and en/er the total
HOUSEHOLD CERTIFICATION AND SIGNATURES
After all verifications of income and/or assets have been received and calculated, each household member age 18 or older .!!1l!fil 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 pr'ior t'o the effective date of the certification.
Part V - Determination of Income Eligibility
Total Annual Household locome from all Sources
Current LIHTC Income Limit per Family Size
Current Bond Income Limit per Famjjy
Size
Enter the number from item (L).
Enter the Current Move-in Income Limit for the household size - specifically, the max
income limit for the federal 50% or 60% set aside.
Enter the Current most restrictive Move-in Income Limit for the household size- specifically,
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 RegulatoryAgreement.
5 CTCAC Tenant Income Certification (May 2018)
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Household Income at Move-in
Household Size at Move-in
For recertifications only. Enter the household income from the move-in certification.
Enter tl1e number of household members from the move-in certification.
Current Federal UH.TC rncome Limit x
140%
Unit Meets Federal Income Restriction at
Unit Meets Deeper Targeting Income Restriction
Tenant Paid Monthly Rent
Federal Rent Assistance
Non-Federal Rent Assistance
Total Monthly Rent Assistance
Source of Federal Rent Assistance
Monthly Utility Allowance
Other Monthly Non-Optional Charges
Gross Monthly Rent for Unit
Maximum LIHTC Rent Limit for this unit
Maximum LTHTC Bond Rent Limit fo1·
this unit
Unit Meets Federal Rent Restriction at
Unit Meets Bond Rent Restriction at
Unit Meets Deeper Targeting Rent Restriction at
For recertifications only. Multiply the current LIHTC Maximum Move-in Income Limit by I 40% and enter the total. .140% is based on the Federal Set-Aside of 20/50 01· 40/60, as elected by the owner for the property, not deeper targeting elections of 30%, 40%, 45%, 50%, etc. Below, indicate whether the household income exceeds that total. If the Gross Annual Income at recertification is greuter than 140% of the LIHTC Income Limit per Family Size at Move-in date (above), then the available unit rule must be followed.
Check the appropriate box for the income restriction that the household meets according to what is required by the federal set-aside(s) for the project.
If your agency requires an income restriction lower than the federal limit, enter tbe percent required.
Part Vl - Rent
Enter the amount the tenant pays toward rent (not including rent assistance payments such as Section 8).
Enter the amount of rent assistance received from a federal program, if any.
Enter the amount of non-federal rent assistance received, if any.
Enter the amount of total rent assistance received, if any.
1f federal rent assistance is received, indicate the single program source.
Enter the utility allowance. lfthe owner pays all utilities, enter zero.
Enter the amount of non-optional charges, such as mandatory garage rent, storage lockers, charges for services provided by the development, etc.
Enter the total of Tenant Paid Rent plus Utilily Allowance and other non-optional charges. The total may NOT include amounts other than Tenant Paid Rent, Utility Allowances and other non-optional charges. Tn accordance with the definition of Gross Rent in IRC §42(g)(2)(B), it may not include any rent assistance amount.
Enter the maximum allowable gross rent for the unit. This amount must be the maximum amount allowed by the CmTent Tncome Limit per Family Size - specifically, the max rent limit for the federal 50% or 60% set aside.
Enter the maximum allowable gross rent for the unit. This amount must be the maximum 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% or 60% set aside detailed in the Bond Regulatory Agreement.
Indicate the appropriate rent restriction that the unit meets according to wbat is required by the federal set-aside(s) for the project.
Indicate the appropriate rent restriction that the unit meets according to what is required by the federal and state law for the project.
If your agency requires a rent restriction lower than the federal limit, enter the percent
required.
Part VU - Student Status
If all household members are full time* students, check "yes". Full-time status is determined by the school the student attends. If at least one household member is not a full-time student, check "no."
Jf"yes" is checked, the appropriate exemption must be listed in the box to the right. If none of the exemptions apply, the household is ineligible to rent the unit.
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Pa rt 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 certification/recertification. If the property does not participate in the HOME, Tax- Exempt Bond, Affordable Housing Disposition, or other housing program, leave those sections blank.
Tax Credit
HOME
Tax Exempt
Bond
See Part V above.
If the property participates in tbe HO,\1E program and the unit thjs household will occupy will counttowards the HOME program set-asides, mark the appropriate box indicting the household's designation.
lfthe prope11y participates in the Tax. Exempt Bond program; mark the appropriate box indicating the household's designation.
AHDP
Other
Jfthe property participates in tbe Affordable Housing Disposition Program (AHDP), and this household's unit will count towards the set-aside requirements, select the appropriate box to indicate if the household is a YLI, LI or 01 (at recertification) household.
If the property participates in any other affordable housing program, complete the information a appropriate.
SIGNATURE OF OWNER/REPRESENTATIVE
It is the responsibility of the owner or the owner's representative to sign and date thfa document immediately following execution by the resident(s).
The responsibility of documenting and determining eligibility (including completing and signing the Tenant Income Certification form) and ensudng 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. The responsibility for compliance with federal program regulations lies with the owner of the building(s) for which the credit is allowable.
PART IX. SUPPLEMENTAL INFORMATION
Complete this portion of the form al 111ove-i11and at recertification's (only if houselro/d composition has changed fl'Om the previous year's certijicatio11).
Tenant Demographic Profile
Resident/Applicant Initials
Complete for each member of the household, including minors. Use codes listed on supplemental form for Race, Ethnicity, and Disability Status.
All tenants who wish not to furnish supplemental infonnation should initial.this section.
Parent/Guardian may complete and initial for minor child(ren).
7 CTCAC Tenant Income Certification (May 2018)
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