HomeMy WebLinkAboutCA Manor Regulatory/Development Agmt ADMINISTRATION BUILDING
CITY ATTORNEY
!0ST OFFICE BOX 747
ATASCADERO, POST OFFICE BOX 749CALIFORNIA 93423 ATASCADERO, CALIFORNIf93423
PHONE: (805) 466-8000 PHONE: (805) 466-5673
CITY COUNCIL •+-
CITY CLERK
CITY TREASURER POLICE DEPARTMENT
ase lie]ce
POST OFFICE BOX 747
CITY MANAGER INCORPORATED JULY 2, 1979 ATASCADERO, CALIFORNIA 93423
FINANCE DEPARTMENT PHONE: (805) 466-8600
PERSONNEL DEPARTMENT
PLANNING DEPARTMENT ~
PUBLIC WORKS DEPARTMENT FIRE DEPARTMENT
RECREATION DEPARTMENT 6005 LEWIS AVENUE
ATASCADERO, CALIFORNIA 93422
PHONE: (805) 4`66,-21!41.w
`...• L• � ' N �r ISA
MAK 15 i
March 15, 1985 CITY MGR.
Ms. Darlene Yuzuk
Department of Housing and
Community Development
921 10th Street, Room 402
Sacramento, CA 95814-2774
Dear Darlene:
Enclosed herewith are executed regulatory and development
agreements for the Atascadero senior congregate rental units
CDBG project. The agreements were authorized for execution
by the City Council on March 11, 1985, and reflect your Feb-
ruary 22nd revisions to the draft submitted by the City on
February 13th.
Please call if you should have any questions.
Sincerely,
HENRY ENGEN
Planning Director
HE-'oh
Enclosure: Agreements
cc: Mike Hicks, Acting City Manager L
Judy & Ed Young
6
(2/22/85)
CITY OF ATASCADERO
Housing and Community Development Agreement
(Development Agreement)
TITLE OF PROJECT: Atascadero Senior Congregate Rental Units
MEMORANDUM OF CONTRACT entered into this %25f-4 day of 10444Y4 , 1985
BY AND BETWEEN CALIFORNIA MANOR, a limited partner-
ship, hereinafter referred to as CM.
CITY OF ATASCADERO, an incorporated
City of the State of California,
hereinafter referred to as CITY.
WHEREAS, The State of California' s Department of. Housing and Community
Development (HCD) has informed the CITY that it has been awarded funds
in the amount of $600, 000 to accomplish these activities under the Hous-
ing and Community Development Act of 1974 , as amended (the ACT) .
NOW, THEREFORE, IT IS AGREED by all and between all parties that the
following provisions as well as all applicable Federal, State and City
laws and regulations are a part of this contract.
I. CM Agrees.
A. That any proposed amendment (s) to this contract shall be sub-
mitted in writing to the CITY prior to completion by CM of
construction of the PROJECT.
B. To transfer to the CITY the fee simple title CM currently holds
on the PROJECT site and be reimbursed with CDBG funds by the
CITY pursuant to Section II A of this agreement. CM shall bear
the fees of transfer of title to the CITY.
C. To purchase from the CITY the PROJECT site for the amount of
one dollar plus any and all escrow expenses which are incurred
by the CITY immediately following CITY reimbursement pursuant
to Section II A of this agreement.
D. To have a preconstruction conference with FmHA and the contractor
and to begin construction of the project within 30 days of acqui-
sition of the site from the CITY and notice to proceed from FmHA.
E. To cooperate with FmHA and the CITY for the timely completion
of the PROJECT and to comply with the provisions of Attachment
B regarding allowable rent changes.
F. In order to ensure compliance with this agreement and the
terms of Attachment B, CM shall execute a recordable regula-
tory agreement. Said regulatory agreement shall be binding
on any and all successors for a period of thirty (30) years
following execution of that agreement and shall be recorded
with the County Recorder.
G. To affirmatively market the PROJECT to tenants who work or live
in Atascadero prior to any region-wide marketing program.
H. To expeditiously and diligently process the FmHA PROJECT through
FmHA and take all necessary measures to ensure completion and
successful operation of this PROJECT.
I. To comply with all conditions of Conditional Use Permit 3-84
granted by the Planning Commission for the PROJECT (Attachment C) .
J. To expeditiously and diligently process the PROJECT through the
CITY' S building permit process.
K. Upon acquisition of the site, CM shall cause improvements to be
made on the site in conformance to conditions of approval for
Conditional Use Permit 3-84 and approved building permits in
preparation for construction of the rental units upon conveyance
of the site by CITY to CM (Attachment C) .
L. In addition to the above described on-site improvements, CM
agrees to cause off-site improvements in conformance to con-
ditions of approval for Conditional Use Permit 3-84 and approved
building permits to be made in support of the PROJECT (Attach-
ment C)
M. To process at the earliest possible date the final application,
construction plans and specifications and bid documents for the
PROJECT with FmHA.
N. In the event that the PROJECT does not proceed to completion
after the CITY has expended grant funds, CM agrees to indemnify
the CITY for any and all repayments to HCD which may be required
by HCD due to a failure to meet the CITY'S contractual commit-
ments to HCD. CM agrees to furnish to the CITY, prior to the
close of escrow by the CITY to purchase the site, either a
Performance Bond or Letter of Credit in an amount equal to 10%
of the CITY'S grant award to be used to offset any potential
liability of the CITY due to CM' s failure to perform.
O. To submit an annual report to the CITY to facilitate an annual
evaluation by CITY to ensure the provision of rental units
affordable to persons and families of low income. CM shall
cooperate fully in such evaluation.
2
II. CITY agrees:
A. To, as soon as programatically feasible after receipt of CM' s
fee simple title to the PROJECT site reimburse CM, utilizing
$577,500 of the awarded Community Development Block Grant
funds for said fee simple title in the FmHA approved site at
10165 El Camino Real as described in Attachment A.
Funds are to be transferred to the seller of the site upon
close of escrow provided that an independent appraisal of the
site reflects the above amount to be the Fair Market value of
the site. CITY shall arrange and pay for the independent
appraisal out of CDBG money.
B. To assume responsibility for the California Environmental
Quality Act and National Environmental Policy Act compliance.
C. The CITY Manager shall report the findings of each evaluation
to CM and the Atascadero City Council. If it is determined by
the City Council that performance or progress on performance
is unsatifactory, the City Council may authorize appropriate
legal proceedings to compel performance. CM hereby acknow-
ledges that Specific Performance is an appropriate remedy to
meet the purposes of this contract in the event of an unexcused
failure to provide low income rental units in .accordance with
the terms of this agreement. In the event legal proceedings
are necessary to enforce the terms of this agreement, or any
other mechanism necessary to accomplish the goals of this
agreement, the prevailing party shall be entitled to attorney
fees and costs as may be set by the court.
III. CITY shall not be liable for any costs which exceed the approved
grant amount for each work item which the CITY has received from
HCD.
IV. Neither CITY nor any officer nor employee thereof shall be re-
sponsible for any damage or liability occurring by reason of any
action or omission of CM or its agents, associates, contractors,
subcontractors, materialmen, laborers, or any other persons, firms,
or corporations furnishing or supplying work service, materials,
or supplies in connection with CM' s performance of this agreement.
CM agrees to fully indemnify, defend and hold CITY harmless from
any liability imposed for injury occurring by reason of any action
or omission of CM.
V. In the event of CM' s failure to comply with the provisions of this
contract, CITY may, at its discretion, withhold the expenditure
of any funds or withhold performance of this .agreement.
3
VI. In the event that CM has failed to execute the "Notice to Proceed" ,
which authorizes the general contractor to commence construction,
within 180 days of the execution of this contract, CITY may, at its
discretion, declare this agreement null and void or exercise any
remedy made available to CITY by this agreement.
These conditions and restrictions shall expire on oiAo�ed 15 1,615
, thirty (30) years following the execution of this
agreement.
The parties agree that this agreement is entered into as part of and in
consideration of a community development block grant, administered by
the City of Atascadero, and shall be recorded.
CITY OF ATASCA�DE�RO CALIFORNIA MANOR
By
Acting City Manager Owner
Planning D ' rector ner
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO ) SS,
On March 15, 1985 before me, the undersigned, a notary
public in and for said state, personally appeared Edward H. ' Young
and Jud J. Youn *J=rxmxkmxxw to be the person (s) whose
name (s) 2Lm (are) subscribed to the within instrument and acknowledged
that they executed the same. *proved to me on the basis of satisfactory
evidence
Witness my and and official seal. ,\
OcFICdAL SEAL,
t' FftANCEE L. RIOS
NOTARY PUBLIC-CALIFORNIA
1 # t 4 SAN LUIS OBISPO COUNTY
\� My Comm.Expires Sept.26,1986
Notary se,,nqfnature
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO ) SS,
Ori March 15, 1985 before me, the undersigned, a notary
public in and for said state, personally appeared Mike Hicks,
Actino City Manager, and Henry Engen, Planning Director
of the City of Atascaderc, a municipal corporation,
The corporation that executed the within instrument, known to me to be
the persons who executed the within instrument on behalf of the corpor-
ation therein named, and acknowledged to me that such corporation executed
the within instrument pursuant to its by-laws or a resolution of its board
of directors.
Witness my hand jand official seal. oFFICIALSEAL
FRANCEE L. RIOS
NOTARY PUBLIC-CALIFORNIA
SAN LUIS OBISPO COUNTY
my Comm.Expires Sept.26,1986
ary ignature
4g�i
ATTACHMENT A
That real property situated in the City of Atascadero, County
of San Luis Obispo, State of California, described as:
Parcel A of Parcel Map AT 81-183, in the City of Atascadero,
County of San Luis Obispo, State of California, filed for record
November 25, 1981 in the Office of the County Recorder of said
County in Book 31 at Page 26 of Parcel Maps.
(10165 El Camino Real; APN 30-461-13)
ATTACHMENT B
Community Development Block Grant funds used to purchase the
site shall be applied on a dollar-for-dollar basis to reduce
the Farmers Home Administration (FmHA) mortgage.
Rents shall be calculated, according to applicable FmHA pro-
cedures based on the resultant mortgage amount to construct
the project. Both parties understand that the resultant rents
will incorporate savings associated with reduced mortgage pay-
ments, reserve deposits, management fees, vacancy allowances
and any other operational/maintenance expense savings.
CM agrees to comply with applicable Farmers Home Administration
(FmHA) regulations regarding FmHA approvals of rent changes (cur-
rently stated by FmHA Instructions 1930-C, Exhibit C) for a per-
iod of thirty (30) years even if CM or its successor should payoff
the FmHA loan. CM agrees not to prepay the loan for at least
twenty (20) years.
ATTACHMENT C
Conditional Use Permit 3-84 (Young)
(As amended December 3, 1984)
FINDINGS
1. The applicant has applied for a Farmer ' s Home Administration re-
duced loan to build the congregate senior citizens housing and
the City is preparing a Community Development Block Grant applica-
tion to assist in the potential development of the project.
2. The application together with the recommended conditions conforms
to the policies of the General Plan.
3. The application as presented will not have a significant adverse
effect upon the environment and the preparation of an Environmen-
tal Impact Report is not necessary.
4. The project consists of the minimum number of units for a density
bonus and performance and management guarantees have been pro-
vided to demonstrate that the bonus dwelling units will be avail-
able to the targeted income group for a minimum of 15 years.
5. The granting of this density bonus serves to support goals and ob-
jectives set forth in the Housing Element of the General Plan.
6. The establishment and conduct of a multiple family residential use
which includes a density bonus will not be detrimental to the
health, safety or welfare of the general public or persons resid-
ing in the neighborhood, nor will it be detrimental to property or
improvements in the vicinity.
7. The proposed multiple family project will not generate traffic
beyond the safe capacity of roads in the vicinity or beyond the
full development capacity of the area.
8. The proposed use will not be inconsistent with the character of
the immediate neighborhood nor be contrary to its orderly
development.
9. The reduced parking at a rate of one per unit plus handicapped
stalls and employees will be able to accommodate the needs of the
congregate senior housing.
10. The proposed use of senior housing has characteristics that are
different than those of a standard multi-family project.
�qw
1"W
CONDITIONS OF APPROVAL:
1. Site development including buildings, driveways, parking, land-
scaping and other features shall be consistent with plans submit-
ted including modifications required herein and all provisions of
Title 9.
2. Submit four (4) copies of landscape plans in conformance with Sec-
tion 9-4.124 et seq. of Title 9 prior to issuance of building
permits.
3. In the event that archeological resources are discovered on the
subject site, Section 9-4.162 of Title 9 shall be complied with.
4. Building architecture shall be consistent with the elevations sub-
mitted. Any mechanical equipment used shall be screened in accor-
dance with Section 9-4.128 of Title 9.
5. Provision shall be made for additional enclosed trash storage
areas conforming to Section 9-4.129 of Title 9 requiring that
trash enclosures be within 100 feet of unit.
6. Roof materials for all structures shall be Class C rating or
better .
7. Fencing and screening shall comply with Section 9-4.128 of Title
9.
8. On-site signing shall comply with Sections 9-4. 130 through 9-4.136
of Title 9 .
9. The applicant shall provide 104 parking spaces in conformance with
Sections 9-4.114 through 9-4. 119 with eight to be handicapped
spaces.
10. If the project is not funded with Farmers Home Administration Sec-
tion 515 Loan, the application shall establish Covenants, Condi-
tions, and Restrictions (CC&Rs) for the regulation of land use,
control of nuisances and occupancy of density bonus units.
a. These CC&Rs shall be submitted to and approved by the City
Attorney and Planning Department prior to approval of build-
ing permits.
b. The City of Atascadero shall be a party to these CC&Rs for
the duration of the density bonus provisions and shall hold
final approval for prospective tenants meeting the income
requirement for the 19 bonus units.
11. All units shall be conveyed only to persons who have been certi-
fied as having household incomes which are 120% or less of the
median income of San Luis Obispo County, as such income is deter-
mined from time to time by the Housing Authority of San Luis
Obispo County. the Planning director shall certify eligibility
with this criteria upon application by a prospective tenant. The
err+'
CC&Rs shall specify the application procedure and all eligibility
requirements which shall not be modified or revised without ap-
proval by the City of Atascadero.
12. Provision shall be made for this project to connect to community
water and sewer facilities. A letter shall be obtained from the
Atascadero Mutual Water Company stating that they are willing and
able to serve this project and submit the same to the Planning
Department.
13. All other utilities not already in place shall be extended under-
ground at the time of building permit.
14. Efforts shall be made to minimize grading that would be disruptive
to the natural topography. All grading and drainage shall conform
with Sections 9-4. 138 through 9-4. 154 of Title 9.
15. Tree removal shall comply with Section 9-4.155 et seq. of Title 9.
16. Curbs, gutter , sidewalk and paveout shall be installed along the
E1 Camino Real frontage. Drainage and street improvements shall
also be installed along El Camino Real to protect existing public
improvements. These may include, but not be limited to, asphalt
curbing and culvert improvements. All improvements are to be
approved by the City Engineer.
17. Fire suppression facilities shall be provided as required by the
Fire Department and shall include, but not be limited to, upgrad-
ing of the existing fire hydrant and the installation of addi-
tional hydrants.
18. All conditions of approval herein shall be complied with prior to
occupancy of any structure.
19. This Conditional Use Permit approval is granted for a maximum
period of one year from the date of final approval unless an ex-
tension is granted pursuant to Section 9-2.118 of Title 9.
7
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CITY OF ATASCADERO
Housing and Community Development Agreement
(Regulatory Agreement)
TITLE OF PROJECT: Atascadero Senior Congregate Rental Units
MEMORANDUM OF CONTRACT entered into this 1.74day of
BY AND BETWEEN CALIFORNIA MANOR, a limited partner-
ship, hereinafter referred to as CM.
and CITY OF ATASCADERO, an incorporated
City of the State of California,
hereinafter referred to as CITY.
WHEREAS, the State of California' s Department of Housing and Community
Development (HCD) has informed the CITY that it has been awarded funds
in the amount of $600 ,000 to accomplish these activities under the
Housing and Community Development Act of 1974 , as amended (the ACT) ;
and
WHEREAS, CM has executed a development agreement with the CITY on
Ings f- r`�� r4' which calls for the CITY to provide financial assis-
tance to CM' s Farmers Home Section 515 rental project known as
Atascadero Senior Congregate Rental Units (hereinafter referred to as
"the Project") ; and
WHEREAS, said development agreement calls for CM to "execute a record-
able regulatory agreement" which shall serve to bind CM to the speci-
fied rents; and
WHEREAS, the CITY has met its commitments under said contract;
I. CM shall:
A. Manage the PROJECT at all times in conformance with Attach-
ment B, State law, and the Farmers Home Administration pro-
gram requirements, rules and regulations pertaining thereto,
as amended and in effect at any given time for a period of
thirty (30) years.
B. Comply with Attachment B regarding reduction of PROJECT rents
to reflect the reduction of PROJECT mortgage by the amount of
CDBG funds used to provide land writedown.
C. Forward to the CITY an annual report showing the incomes of
each tenant by apartment number and the rents charged to each
apartment. Each report shall also clearly show the distribu-
1
**M01 err/
tion of the monthly savings to applicable units and shall
contain CM' s certification under penalty of perjury that the
information therein contained is accurate.
D. Forward to City any request to Farmers Home Administration
for rent increases.
II . CITY shall:
A. Be responsible for administering the fiscal and programmatic
aspects of the subject grant. In the event the CITY deter-
mines that CM has not adequately complied with the terms of
the grant, the CITY shall notify, in writing, CM and the
California Department of Housing and Community Development
(HCD) .
III. General:
A. Transfer of the Development. Express prior written
approval of both the CITY Council and HCD is required for the
sale, transfer or conveyance of the Project by CM (1) .
Such approval shall be given provided that the following
terms are incorporated into any transfer agreement:
1. That CM' s successor in interest agrees to assume the
obligations of CM relating to this agreement for the
duration of this agreement.
2. That CM' s successor in interest is an eligible sponsor
and demonstrates to the satisfaction of both the CITY
and HCD that it can successfully own and operate the
PROJECT in accordance with the terms of the contract
and HCD grant.
B. Violation of Regulatory Agreement by CM. In the event of
the violation of any of the fiscal provisions of the grant by
CM, the CITY shall give written notice thereof to HCD, Farm-
ers Home Administration and CM by registered or certified
mail.
If such violation is not corrected to the satisfaction of the
CITY within thirty (30) days after the date such notice is
mailed (or within such further time as the CITY, in its sole
discretion, may permit) , the CITY may, without further prior
notice, declare in writing a default under this Agreement
effective on the date of such declaration of default. Upon
any such declaration of default the CITY or HCD may apply to
any court, State or Federal, for specific performance of this
Agreement; for an injunction against any violation of this
Agreement by CM; requiring repayment of excess rentals to
(1)
Except if required by the Farmers Home Administration for loan
servicing purposes.
2
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tenants; requesting judicial appointment of a receiver to
take over and operate the property in accordance with the
terms of the Agreement; or for such other relief as may be
appropriate, it being agreed by CM .that the injury to the
CITY arising from a default under any of the terms of this
Agreement would be irreparable and that it would be extremely
difficult to ascertain the amount of compensation to the CITY
which would afford adequate relief in light of the purposes
and policies of the Program.
C. Amendment. This Agreement shall not be altered or amended
except by writing executed between the parties. No such
amendment shall be effective without the prior approval of
HCD and City Council and without meeting the requirements of
the Community Development Block Grant Program.
D. Partial Invalidity. If any provision of this Agreement
shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions
thereof shall not in any way be affected or impaired thereby.
E. Binding on Successors. This Agreement shall bind, and the
benefits thereof shall inure to, the respective parties here-
to, their legal representatives, executors, administrators,
successors in office or interest; provided, however , that CM
may not assign this Agreement or any of its obligations here-
under , voluntarily or by operation of law, without the prior
approval of the CITY and the HCD.
F. Recording Agreement. This Agreement shall, at the expense
of the PROJECT, be acknowledged by each of the parties and
recorded in the official records of the county in which the
PROJECT is situated. This Agreement shall be indexed in the
grantee index to the name of CM and in the grantor index to
the name of the CITY.
G. Election of Remedies: Event of Default. The remedies of
the CITY hereunder and under any other instrument providing
for or evidencing the financial assistance provided for the
PROJECT by HCD or the CITY are cumulative, the exercise of
one or more of such remedies shall not be deemed an election
of remedies and shall not preclude the exercise by the CITY
of any one or more of its other remedies.
H. Waiver . No waiver by the CITY or any breach of or default
under this Agreement shall be deemed to be a waiver of any
other or subsequent breach there or default hereunder.
I. Captions. The captions used in this Agreement are inserted
only as a matter of convenience and for reference and in no
way defines, limits, or describes the scope or the intent of
the Agreement.
3
%AW
J. Governing Law. This Agreement shall be construed in ac-
cordance with, and governed by, the laws of the State of Cal-
ifornia, unless otherwise governed by Federal Law.
K. Notices. Written notices and other written communications
by and between the parties hereto shall be addressed as fol-
lows unless, and until a party hereto has, in writing, com-
municated a different address to the other party hereto.
L. Third Party Beneficiaries. For the purpose of this Agree-
ment, HCD, FmHA, or any other governmental financing agency
which has provided financial commitments for the PROJECT, are
acknowledged as third party beneficiaries by the parties to
this Agreement.
M. Attorneys Fees. In the event of any controversy, claim, or
dispute between the parties or third party beneficiaries
hereto, arising out of or relating to this Agreement or
breach thereof, the prevailing party shall be entitled to
recover from the losing party reasonable expenses, attorneys
fees and costs.
These conditions and restrictions shall expire on 14,4jCcq 15
fo/s , 30 years following the execution of this
agreement.
The parties agree that this agreement is entered into as part of
and in consideration of a Community Development Block Grant,
administered by the City of Atascadero and shall be recorded.
CITY OF ATASCADERO CALIFORNIA MANOR
By 6:,L"
Acting City Manager Owner
AA��q_� zsn '�_ 12
Planningirector O er
r
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO ) SS,
On March 15, 1985 before me, the undersigned, a notary
public in and for said state, personally appeared Edward H. Young
and Judy J. Young *Aw=vrxA=zze to be the person (s)
whose name (s) Am (are) subscribed to the within instrument and
acknowledged that the y executed the same.
*proved to me on the basis of satis-
factory evidence
4
- - ----- -- --- -
Witness my hand a dofficial seal. OrFlczA>.SEAL
FRANCFE L. R:OS
NOTARY FUZXk,-CALIFORNIA
SAN LU S 0315PO COUNTY
•. My Comm.Expros Sept.26,1986
Notary' s g0rifature
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO ) SS,
On March 15, 1985 , before me, the undersigned, a notary
public in and for said state, personally appeared Mike Hicks,
Acting City Manager, and Henry Engen, Planning Director
of the City of Atascadero, a municipal corporation,
The corporation that executed the within instrument, known to me
to be the persons who executed the within instrument on behalf of
the corporation therein named, and acknowledged to me that such
corporation executed the within instrument pursuant to its by-laws
or a resolution of its board of directors.
Witness my hand pd official seal. OFFICIAL.SEAL
FRANCEE L. RIOS
NOTARY PUBLIC•CPI.IFORNIA
SAN LUIS QBISPC COUNTY
My Comm.Expires Se .26,1986
Notary' s ignature
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ATTACHMENT A
That real property situated in the City of Atascadero, County
of San Luis Obispo, State of California, described as:
Parcel A of Parcel Map AT 81-183, in the City of Atascadero,
County of San Luis Obispo, State of California, filed for record
November 25, 1981 in the Office of the County Recorder of said
County in Book 31 at Page 26 of Parcel Maps.
(10165 El Camino Real; APN 30-461-13)
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ATTACHMENT B
Community Development Block Grant funds used to purchase the site
shall be applied on a dollar-for-dollar basis to reduce the Farm-
ers Home Administration (FmHA) mortgage.
Rents shall be calculated, according to applicable FmHA procedures
based on the resultant mortgage amount to construct the project
Both parties understand that the resultant rents will incorporate
savings associated with reduced mortgage payments, reserve de-
posits, management fees, vacancy allowances and any other oper-
ational/maintenance expense savings.
CM agrees to comply with applicable Farmers Home Administration
(FmHA) regulations regarding FmHA approvals of rent changes (cur-
rently stated by FmHA Instructions 1930-C, Exhibit C) for a period
of thirty (30) years even if CM or its successor should payoff the
FmHA loan. CM agrees not to prepay the loan for at least twenty
(20) years.
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C +CIL MFETI NG: 1/28/85
AGETA ITEM N0, : D - 1
M E M O R A N D U M
TO: City Council "1= CG'' c°v.c" ' January 28, 1985
VIA: Ralph H. Dowell, Jr . , Acting City Manager
FROM: Henry Engen, Planning Director W,
RE: Status Report: Housing and Community- Development Agreement
BACKGROUND
As part of the $600 ,000 Community Development Block Grant for a 95
unit senior citizens housing project, there is need for an agreement
to define responsibilities pursuant to the grant. The attached agree-
ment was forwarded by the Housing and Community Development (HCD) for
the City' s consideration and has been rejected by staff as being eith-
er ambiguous or implying responsibilities and commitments by the City
beyond those envisioned in accepting the grant. This particular lan-
guage was offered by HCD as a model that had been approved by them and
the Farmer ' s Home Administration for a similar type project for anoth-
er city in the State.
Staff is in the process of re-writing a proposed agreement which lim-
its City liabilities to playing a role in reporting any violations in
the rental agreement, and we anticipate utilizing the type of agree-
ment used in the past for conditional use permit projects which had
received density bonuses. These also require commitments to lower
rents.
WHAT'S NEXT
Staff will prepare a draft agreement to submit to the Department of
Housing and Community Development and Farmers Home Administration for
their response and return to City Council prior to executing such
agreement. The other basic prerequisite for the grant is the Housing
Element, which is in hearing before the Planning Commission.
ATTACHMENT: Draft Regulatory Agreement
HE:ps
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CITY OF ATASCADERO
Housing and Community Development Agreement
(Regulatory Agreement)
TITLE OF PROJECT: Atascadero Senior Citizens 95 Unit
Congregate Rental Housing Units Section 515
MEMORANDUM OF CONTRACT entered into this day of
1985.
BY AND BETWEEN California Lenders, A limited
partnership hereinafter referred
to as CL.
AND
CITY OF ATASCADERO, an incorporated
City of the State of California,
hereinafter reffered to as CITY.
WHEREAS, CL has submitted to the CITY a proposal for funding
assistance to ensure the feasibility of a 95 unit Farmers
Home Administration (FmHA) Section 515 rental housing project
(the PROJECT) , and demonstrated a substantial need for assistance
to make said PROJECT feasible and affordable to persons of low
incomes, and
WHEREAS, in order to assist this PROJECT the CITY has applied for
funding through the State of California' s Department of Housing
and Community Development (HCD) Community Development Block
Grant Program (CDBG) to provide land writedown, in support of
the PROJECT, and
WHEREAS, HCD has informed the CITY that is has been awarded funds
in the amount of $ to accomplish these activities under
the Housing and Community Development Act of 1974, as amended
(the ACT) ,
WHEREAS, CL has executed a contract with the CITY on
1985, which calls for the CITY to provide financial assistance
to CL' s Farmers Home Section 515 rental project known as
Atascadero Senior Citizens Congregate Rental Housing Units
(hereinafter "the Project") and
WHEREAS, Said contract calls for CL to "execute a recordable
regulatory agreement which shall serve to bind CL to the
specified rents " and
WHEREAS, the CITY has met its committments under said contract;
NOW THEREFORE, the parties hereto agree as follows:
I. CL Shall:
A. Manage the PROJECT at all times in conformance with
State law and the Farmers Home Administration program
requirements, rules and regulations pertaining thereto, y
as amended and in effect at any given time.
B. Comply with Attachment B regarding reduction of PROJECT
rents to reflect the reduction -of PROJECT mortgage by
the amount of CDBG funds used to provide land writedown,
C. Forward to the CITY'S City Manager a quarterly report
showing the incomes of each tenant by apartment number
and the rents charged to .each apartment. Each report
shall also clearly show the distribution of the monthly
savings to applicable units and shall contain CL' s
certification under penalty of perjury that the informa-
tion therein contained is accurate.
II. CITY Shall:
A. Review each quarterly report for compliance with this
agreement. The City Manager shall report to the City
Council CL' s progress in complying with this agreement.
In the event the CITY determines that CL has not
adequately complied with the terms of this agreement,
the CITY shall notify, in writing, CL and the
California Department of Housing and Community Develop-
ment (HCD) .
III. General
A. Transfer of the Development. Express written approval
of both CITY and CL is required for sale, transfer or
conveyance of the Project by CL. Such approval shall
be given provided that the following terms are
incorporated into any transfer agreement:
1. That CL's successor in interest agrees to assume the
obligations of CL relating to this agreement for the
duration of this agreement.
2. That CL' s successor in interest is eligible sponsor
and demonstrates to the satisfaction of both the
CITY and HCD that it can successfully own and operate
the PROJECT.
(1) Except if required by the Farmers Home Administration for
loan servicing purposes
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B. Violation of Regulatory Agreement by CL. In the event
of ,any of the provisions of this Agreement by the CL,
the City shall make an immediate -report thereof to HCD.
Additionally, the CITY may give written notice of said
violation to the CL by registered or certified mail, and
if such violation is not corrected to the satisfaction
of the CITY within thirty (30) days after the date such
notice is mailed (or within such further time as the
CITY, in its sole discretion, may permit) , the CITY
may, without further prior notice, declare in writing a
default under this Agreement effective on the date of
such declaration or default. Upon any such declaration
or default the CITY or HCD may apply to any court, State
or Federal, for specific performance of this Agreement;
for an injunction against any violation of this
Agreement by CL; or for such relief as may be
appropriate, it being agreed by the CL that the injury
to the CITY arising from a default under any of the
terms of this Agreement would be irreparable and that it
would be extremely difficult to ascertain the amount of
compensation to the CITY which would afford adequate
relief, in light of the purposes and policies of the
Program.
C. Amendment. This Agreement shall not be altered or
amended except by writing executed between the parties.
No such amendment shall be effective without the prior
approval of HCD and without meeting the requirements of
the Community Development Block Grant Program.
D. Partial Invalidity. If any provision of this Agreement
shall be invalid, illegal or uneforceable, the validity,
legality and enforceability of the remaining provisions
thereof shall not in any way be affected or impaired
thereby.
E. Binding on Successors. This Agreement shall bind, and
the benefits thereof shall inure to, the respective
parties hereto, their legal representatives, executors,
administrators, successors in office or interest;
provided, however , that CL may not assign this Agreement
-or any of its obligations hereunder, voluntarily or by
operation of law, without the prior approval of the
CITY and the HCD.
F. Recording Agreement. This Agreement shall, at the
expense of the PROJECT, be acknowledged by each of the
parties and recorded in the official records of the
county in which the PROJECT is situated. This Agreement
shall be indexed in the grantor index to the name of -CL
and in the grantee index to the name of the CITY.
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G. Election of Remedies; Events of Default. The remedies
of the CITY hereunder and under any other instrument
providing for or evidencing the financial assistance
provided for the PROJECT by HCD or the CITY are
cumulative, the exercise of one or more of such remedies
and shall not preclude the exercise by the' CITY of any
one or more of its other remedies.
H. Waiver. No waiver by the CITY or any breach or default
under this Agreement shall be deemed to be a waiver of
any other or subsequent breach there or default
hereunder.
I. Captions. The captions used in this Agreement are
inserted only as a matter of convenience and for
reference and in no way define, limits or describe the
scope or intent of the Agreement.
J. Governing Law. This Agreement shall be construed in
accordance with, and governed by, the laws of the State
of California, unless otherwise governed by Federal Law.
K. Notices. Written notices and other written
communications by and between the parties hereto shall
be addressed as follows unless, and until a part hereto
has, in writing, communicated a different address to the
other party hereto.
L. Third Party Beneficiaries. For the purpose of this
Agreement, HCD, FmHA, or any other governmental
financing agency which has provided financial
commitments for the PROJECT, are acknowledged as third
party beneficiaries by the parties to this Agreement.
H. Attorneys Fees. In the event of any controversy, claim,
or dispute between the parties or third party - ---
beneficiaries hereto, arising out of or relating to this
Agreement or breach thereof, the prevailing party shall
be entitled to recover from the losing party reasonable
expenses, attorneys fees and costs. -
CALIFORNIA LENDERS CITY OF ATASCADERO
Name Name
Address Address P.O. Box 747
Atascadero, CA
By By
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