HomeMy WebLinkAbout2006-018 Centex Homes Dove Creek - Affordable Housing Agmt. JULIE RODEWALD CRNC
San Luis Obispo County—Clerk/Recorder 11/21/2006
Recorded at the request o1 2:35 PM
RECORDING REQUESTED BY AND Public
WHEN RECORDED MAIL TO: D o C#: 2006082941 Titles: 1 Pages: 22
City of Atascadero Fees 70.00
6907 EI Camino Real Taxes 0.00
Atascadero, CA. 93422 Others 0.00
Attn: Community Development Director PAID $70.00
f-m/o 05 --vi/0
No fee for recording pursuant to (Space above for Recorder's Use)
Government Code Section 27383
AFFORDABLE HOUSING AGREEMENT
(Inclusionary For-Sale Inclusionary and Density Bonus Units—On-Site—No Public
Financing)
Dove Creek
This AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into as
of this 31-4� day of 200_b by and between the CITY OF
ATASCADERO, a municipal corporation (the "City"), and rCentex Homesl, a rNevada
General Partnershipl (the "Developer"), with reference to the following facts:
A. The Atascadero City Council has an Inclusionary Housing Policy,
adopted on June 24, 2003, and amended November 25, 2003 (the "Inclusionary
Policy") to increase homeownership opportunities available and affordable to moderate-
income households. The City has also adopted a Density Bonus Ordinance,
Atascadero Municipal Code Section 9-3.175(f) (the "Ordinance") to conform with State
Density Bonus Law (Government Code section 65915), which allows a density bonus
for the provision of housing affordable to very low income and lower income
households.
B. Developer is the owner of certain real property in the City of Atascadero,
California described in Exhibit A attached hereto and incorporated herein by this
reference (the "Property").
C. Developer has received a discretionary approval from the City to construct
a total of [two-hundred seventy nine] [279] residential units known as [Dove Creek]
(hereinafter referred to as the "Development") on the Property. Pursuant to the
Ordinance and the Inclusionary Policy, the Development includes, and City has
granted, Owner a density bonus of [Seventy] [70] units (the "Density Bonus") in
exchange for Owner's provision of [Twenty] [20] units which will be affordable and sold
to very low income households (the "Affordable Units") and will remain affordable for
a term of thirty (30) years. Developer shall build the Affordable Units pursuant to the
Affordable Housing Phasing Schedule attached hereto as Exhibit B and incorporated
3/1/04
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D. Pursuant to the Inclusionary Policy, the Ordinance, and Government Code
Section 65915, Developer is required to execute this Agreement prior to the approval of
any final or parcel map for the Development and prior to the issuance of any building
permit for the Development. Developer and City intend to set forth in greater detail and
specificity within this Agreement the terms and conditions for producing and selling the
Affordable Units in the Development.
NOW, THEREFORE, in consideration of the benefits received by the Developer
and the City, the Developer and City agree as follows:
Section 1. Definitions. In addition to those terms defined in the Recitals, the
following terms are specially defined in this Agreement:
(a) "Administering Agency" means the San Luis Obispo Housing
Authority, the City, or another agency as determined by the Community Development
Director that has experience in the administration of affordable housing programs.
(b) "Affordable Ownership Price" means the maximum sales price as
shown on the San Luis Obispo County's Affordable Housing Standards, published
monthly or if calculated by the City of Atascadero, a sales price that includes a
reasonable down payment and results in a Monthly Housing Payment during the first
calendar year of a household's occupancy that, (i) for Very Low Income Households, is
equal to or less than one-twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of
Area Median Income, as adjusted for Appropriately-Sized households; (ii) for Lower
Income Households, is equal to or less than one-twelfth (1/12) of thirty percent (30%) of
seventy percent (70%) of Area Median Income, as adjusted for Appropriately-Sized
households; and (iii) for Moderate Income Households, is equal to or less than one-
twelfth (1/12) of thirty percent (30%) of one hundred twenty percent (120%) of Area
Median Income, as adjusted for Appropriately-Sized households. If the City of
Atascadero discontinues the use of the San Luis Obispo County's Affordable Housing
Standards, then Affordable Ownership Price shall be calculated by the City as shown in
Exhibit D.
(c) "Affordable Unit Property" means the legal parcel(s) of land on
which the Affordable Units will be constructed.
(d) "Appropriately-Sized" shall be consistent with California Health and
Safety Code Section 50052.5(h), as amended from time to time, and shall be based on
presumed maximum occupancy levels of one person in a studio apartment, two (2)
persons in a one-bedroom unit, three (3) persons in a two-bedroom unit, and one
additional person for each additional bedroom thereafter.
(e) "Area Median Income" means median yearly income in San Luis
Obispo County as published pursuant to California Code of Regulations, Title 25,
Section 6932, or successor provision.
(f) "City Deed of Trust" means the deed of trust, in the form provided
by the City, executed by each buyer of an Affordable Unit at the time of purchase of the
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Affordable Unit, securing the buyer's performance under the Resale Agreement and the
City Note.
(g) "City Note" means the promissory note, in the form provided by the
City, executed by each buyer of an Affordable Unit at the time of purchase of the
Affordable Unit.
(h) "Eligible Household" means a household that is qualified by the
Administering Agency as i) a First-Time Homebuyer and ii) with Household Income not
exceeding the household income level established for each Affordable Unit as shown in
Exhibit E and as defined for the applicable income category in this Section 1.
(i) "First-Time Homebuyer" means a person who does not currently
hold an ownership interest in any real estate (as verified by a credit report) and who has
not had an ownership interest in his or her primary residence during the past three (3)
years; except that any person who is a Displaced Spouse may not be excluded from
consideration as a First Time Homebuyer on the basis that the individual, while a
homemaker, owned a home with his or her spouse. "Displaced Spouse" means a
person who is separated or divorced from his or her spouse.
Q) "Initial Fair Market Value" means the sales price that the Developer
could receive for an Affordable Unit if the City did not restrict the amount that the
Developer may receive to the Affordable Ownership Price. The City may, at its option,
require that the Initial Fair Market Value be established through an appraisal by an MAI
or other qualified appraiser.
(k) "Household Income" means the combined adjusted gross income
for all adult persons living in a dwelling unit, as calculated for the purpose of the Section
8 Program under the United States Housing Act of 1937, as amended, or its successor.
(1) "Lower Income Household" means a household with a Household
Income that does not exceed the United States Department of Housing and Urban
Development's annual determination for lower income households with incomes of
approximately 80 percent of Area Median Income, adjusted for household size.
(m) "Lower Income Affordable Unit" means an Affordable Unit reserved
for purchase at the completion of construction by Lower Income Households at an
Affordable Ownership Price.
(n) "Moderate Income Household" means a household with a
Household Income that does not exceed 120 percent of Area Median Income, adjusted
for household size in accordance with adjustment factors adopted and amended from
time to time by the United States Department of Housing and Urban Development
pursuant to Section 8 of the United States Housing Act of 1937.
(o) "Moderate Income Affordable Unit" means an Affordable Unit
reserved for purchase at the completion of construction by Moderate Income
Households at an Affordable Ownership Price.
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(p) "Monthly Housing Payment" includes mortgage interest and
principal, property taxes, mortgage insurance, homeowner's insurance, homeowners'
association dues, assessments paid by homeowners, and a reasonable allowance for
property maintenance costs, as determined by the Administering Agency.
(q) "Resale Agreement" means the Resale and Refinancing Restriction
Agreement and Option to Purchase, in the form provided by the City, executed by each
buyer of an Affordable Unit and the City at the time of purchase of the Affordable Unit.
(r) "Very Low-income Household" means a household with an annual
income which does not exceed the United States Department of Housing and Urban
Development's annual determination for very low income households with incomes of
approximately 50 percent of Area Median Income, adjusted for household size.
(s) "Very Low-Income Affordable Unit" means an Affordable Unit
reserved for purchase at the completion of construction by Very Low-Income
Households at an Affordable Ownership Price.
Section 2. Satisfaction of Inclusionary Housing Obligation and Conditions of
Approval. The requirements of the Inclusionary Policy shall be satisfied with respect to
the Property if the Developer constructs or causes to be constructed the Affordable
Units meeting the requirements of Sections 3 through 5 below, in compliance with the
schedule set forth in Section 6 below, and the Affordable Units are sold to homebuyers
in compliance with Sections 7 through 9 below. An amendment to this Agreement will
be required to receive final or parcel map or other City approval for additional housing
units on the Property above the requested total of 259 Market Rate Units included in the
Development, to make any changes to the Affordable Units as they are described in
Sections 3 through 5 of this Agreement, or to otherwise change the terms of this
Agreement.
Section 3. Number of Affordable Units. Developer shall construct, or cause to
be constructed, at least [Twenty] [20] Affordable Units, of which [None] [0] shall be
Moderate Income Affordable Units, [None] [0] shall be Lower Income Affordable Units,
and [Twenty] [20] shall be Very Low Income Affordable Units.
Section 4. Location of Affordable Units. The Affordable Units shall be
constructed on the Property in the location(s) shown or described in the attached
Exhibits C and F. The legal parcel(s) of land on which the Affordable Units will be
constructed, together with any Affordable Units and appurtenant improvements
constructed on the land, is the "Affordable Unit Property."
Section 5. Appearance Size and Bedroom Count. The Affordable Units shall
be of the same general quality of exterior appearance and overall quality of construction
as the Market Rate Units. Interior features and finishes of the Affordable Units shall be
durable, of good quality, and consistent with contemporary standards for new housing.
The Affordable Units shall include the number of bedrooms and square footage
indicated in Exhibit E to this Agreement.
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Section 6. Schedule for Developing Affordable Units. Developer shall provide
the Affordable Units pursuant to the following schedule:
(a) Prior to recordation of any final or parcel map or issuance of any
building permit for the Property, other than Model Permits, this Agreement shall be duly
executed by the City and the Developer and recorded against the Property.
(b) Building permits for Market Rate Units and Affordable Units shall be
issued pursuant to the attached Phasing Schedule. If no Affordable Units are to be
construed in a Phase, then the City shall issue building permits for Market Rate Units of
that Phase, upon Developer's satisfaction of all City rules regarding issuance of building
permits. For any Phase which includes Affordable Units, all building permits, Market
Rate and Affordable Rate, shall be issued prior to issuance of any building permit for
any subsequent phase
(c) Certificates of occupancy for the Market Rate Units and the
Affordable Units shall be released pursuant to the Phasing Schedule. If no Affordable
Units are to be constructed in a Phase, then the City shall issue certificates of
occupancy for the Market Rate units of that Phase, upon Developer's satisfaction of all
City rules regarding issuance of certificates of occupancy. Final occupancy of Market
rate Units shall not be held in any phase unless progress on the affordable units falls
substantially behind the market rate units. No occupancies will be issued in the last
Phase of Market Rate Units until the last occupancy is issued to the last Affordable Unit.
Section 7. Sale by Developer to Eligible Households. Following completion of
construction, the Developer shall sell [None] [0] Affordable Units to Moderate Income
Households, [None] [0] Affordable Units to Lower Income Households, and [Twenty]
[20] Affordable Units to Very Low Income Households, at the Affordable Ownership
Price established by the City of Atascadero as described in Section 8 below.
(a) At least thirty (30) days before offering an Affordable Unit for sale,
the Developer shall provide the City with written notice of the availability of the
Affordable Unit, including the number of bedrooms and required income level of the unit.
No later than thirty (30) days after receipt of such notice, the City shall provide
Developer with the Affordable Ownership Price for the Affordable Unit and the income
limits for Eligible Purchasers.
(b) For Moderate-Income Affordable Units, Developer shall also
provide City with Developer's proposed Initial Fair Market Value of the Affordable Unit at
least thirty (30) days before offering an Affordable Unit for sale. No later than thirty (30)
days after receipt of such notice, the City shall indicate the City's agreement, or not, with
Developer's proposed Initial Fair Market Value of the Affordable Unit. The City may, at
its option, require that the Initial Fair Market Value be established through an appraisal
by an MAI or other qualified appraiser.
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(c) Developer shall follow the procedures and comply with the
requirements of the Inclusionary Policy and applicable fair housing laws in marketing
and selling the Affordable Units. No occupancies will be issued in the last Phase of
Market Rate Units until the last occupancy is issued to the last Affordable Unit.
(d) Prior to close of escrow for all Affordable Units, the Administering
Agency shall provide verification to City and Developer that the purchaser of the
Affordable Units is an Eligible Household. Purchase contracts between Developer and
prospective buyers shall include requirements that buyers are verified as Eligible
Households prior to close of escrow, and that buyers execute documents for the benefit
of the City as described in Section 9 below.
Section 8. Affordable Ownership Price.
(a) The Affordable Units shall be sold to Eligible Households at prices
that do not exceed the Affordable Ownership Price established by the City of
Atascadero for Moderate Income, Lower Income, and/or Very Low Income Affordable
Units, as applicable. The method of calculating the Affordable Ownership Price is
included in Exhibit B attached hereto. Developer shall notify the City at least thirty (30)
days prior to offering an Affordable Unit for sale to allow the City adequate time to
calculate and notify the Developer of the Affordable Ownership Price applicable to the
Affordable Units offered for sale.
(b) Developer acknowledges and agrees that the Affordable Ownership
Price is determined based on Area Median Income in San Luis Obispo County,
changes to which are published annually by the State of California, Department of
Housing and Community Development, and other housing cost factors included in
Exhibit B, which change from time to time. Developer agrees that the City may
calculate the Affordable Ownership Price for the Affordable Units in its reasonable
discretion and that the City's calculation of Affordable Ownership Price shall be binding
upon the Developer.
(c) The Affordable Ownership Price established for each Affordable
Unit by the City shall be the absolute maximum price that the Developer or any other
person may receive as compensation for the Affordable Unit. The Developer or other
seller may not charge or receive any additional compensation for an Affordable Unit
regardless of whether the additional amount is (a) for options, upgrades, or additional
improvements to the unit, (b) paid through escrow or outside of escrow, (c) paid prior to,
after, or as part of the purchase escrow or (d) paid in cash or in kind.
Section 9. City Approval of Documents. The following documents, to be
approved in writing by the City, shall be used in connection with the development and
sale of the Affordable Units. Approval of the following documents by the City shall be
required prior to the issuance of occupancy permits for the Affordable Units and the
offering for sale of the Affordable Units.
(a) Form of Purchase and Sale Agreements for sale of the Affordable
Units (to be prepared by Developer and submitted to the City).
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(b) Form of Resale Agreement, City Note, City Deed of Trust, Request
for Notice of Default and Sale, and Borrower's Disclosure (to be prepared by the City,
following Developer's request).
(c) The preliminary Department of Real Estate public report for the
Development, including the Affordable Units (to be obtained by the Developer and
submitted to the City).
Section 10. Homebuyer Documents and Security Instruments. Prior to the sale
of each Affordable Unit, Developer shall ensure that:
(a) The Eligible Household and the City execute the Resale Agreement
in the form provided by the City. The Resale Agreement shall be recorded against the
Affordable Unit Property at close of escrow on the sale to the Eligible Household. The
Resale Agreement shall be recorded junior only to the lien of the deed of trust securing
the Eligible Household's first mortgage loan obtained by the homebuyer to finance the
purchase of the Affordable Unit if required by the lender (and second mortgage loan if
such loan is provided by a public agency which requires such subordination), unless
otherwise approved in writing by the City.
(b) The Eligible Household signs the City Note in the form provided by
the City. For Moderate-Income Affordable Units, the City Note shall be equal to the
difference between the Affordable Ownership Price and the Initial Fair Market Value of
the Affordable Unit.
(c) The Eligible Household signs the City Deed of Trust to secure
performance of the Eligible Household's covenants under the Resale Agreement and
payment of the amounts due under the City Note. The City Deed of Trust shall be
recorded against the Affordable Unit, subordinate only to the Resale Agreement and the
lien for the first mortgage loan obtained by the homebuyer to finance the purchase of
the Affordable Unit (and second mortgage loan if such loan is provided by a public
agency which requires such subordination), unless otherwise approved in writing by the
City.
(d) A Request for Notice of Default and Sale is recorded for each deed
of trust recorded at close of escrow.
(e) The Eligible Household signs the Borrower's Disclosure in the form
provided by the City.
Section 11. Compliance Inspections, Monitoring. Within five (5) days following
the closing of any Affordable Unit by the Developer, Developer shall forward to the City
copies of the buyer's and seller's settlement statement and all closing documents,
including Resale Agreement, City Note, City Deed of Trust, Request(s) for Notice of
Default and Sale, and Borrower's Disclosure executed in connection with the sale.
Developer shall retain all records related to compliance with obligations under this
Agreement and the Inclusionary Policy for a period not less than two (2) years from the
date of sale of all units in the Development and make them available to City employees
or others designated by the City for inspection and copying on five (5) business days'
1442\02\318438.2 2.2.2006 7
written notice.
Section 12. Release of Property From Agreement. The covenants and
conditions herein contained shall apply to and bind, during their respective periods of
fee ownership, Developer and its heirs, executors, administrators, successors,
transferees, and assignees having or acquiring any right, title or interest in or to any part
of the Property and shall run with and burden such portions of the Property until
terminated in accordance with this Section 12. Until portions of the Property are
released from the burdens of this Agreement pursuant to this Section 12, the owners of
fee title to the Property shall expressly make the conditions and covenants contained in
this Agreement a part of any deed or other instrument conveying any interest in such
property. Upon issuance of final certificates of occupancy for each phase of the
Affordable Units, as specified in the Phasing Schedule, then the portions of the Property
in each such completed Phase of Affordable Units, without Affordable Units, shall be
released from the burdens of this Agreement. As Affordable Units are sold to Eligible
Households in compliance with this Agreement, and Resale Agreements and City
Deeds of Trust are recorded against the Affordable Units, the portions of the Affordable
Unit Property sold to Eligible Households shall be released from the burdens of this
Agreement.
Section 13. Default and Remedies. Failure of the Developer to cure any default
in the Developer's obligations under the terms of this Agreement within thirty (30) days
after the delivery of a notice of default from the City will constitute a default under this
Agreement and the requirements of the Inclusionary Policy and, in addition to remedies
for breach of this Agreement, the City may exercise any and all remedies available to it
under the Subdivision Map Act, the Inclusionary Policy, the Atascadero Municipal Code,
or otherwise, with respect to the Developer's failure to satisfy the terms of this
Agreement and the requirements of the Inclusionary Policy, including but not limited to:
(a) withholding, conditioning, suspending, or revoking any permit, license,
subdivision approval or map, or other entitlement for the Development, including without
limitation final inspections for occupancy and/or certificates of occupancy;
(b) instituting against the Developer, or other parties, a civil action for
declaratory relief, injunction or any other equitable relief, or relief at law, including
without limitation an action to rescind a transaction and/or to require repayment of any
funds received in connection with such a violation;
(c) where one or more persons have received financial benefit as a result of
violation of this Agreement or of any requirement imposed under the Inclusionary Policy,
the City may assess, and institute legal action to recover as necessary, a penalty in any
amount up to and including the amount of financial benefit received, in addition to
recovery of the benefit received;
(d) prosecuting a misdemeanor against any person who has sold a residential
unit at a price exceeding the maximum allowed under this Agreement or to a household
not qualified under this Agreement, or who has otherwise violated the Inclusionary
Policy, or any other agreement, restriction or requirement authorized or imposed under
the Inclusionary Policy; or
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(e) any other means authorized under the City of Atascadero Municipal Code.
Section 14. Remedies Cumulative. No right, power, or remedy given to the City
by the terms of this Agreement or the Inclusionary Policy is intended to be exclusive of
any other right, power, or remedy; and each and every such right, power, or remedy
shall be cumulative and in addition to every other right, power, or remedy given to the
City by the terms of any such document, the Inclusionary Policy, or by any statute or
otherwise against Developer and any other person. Neither the failure nor any delay on
the part of the City to exercise any such rights and remedies shall operate as a waiver
thereof, nor shall any single or partial exercise by the City of any such right or remedy
preclude any other or further exercise of such right or remedy, or any other right or
remedy.
Section 15. Attorneys Fees and Costs. The City shall be entitled to receive
from the Developer or any person violating the requirements of this Agreement, in
addition to any remedy otherwise available under this Agreement or at law or equity,
whether or not litigation is instituted, the costs of enforcing this Agreement, including
without limitation reasonable attorneys' fees and the costs of City staff time.
Section 16. Appointment of Other Agencies. At its sole discretion, the City may
designate, appoint or contract with any other public agency, for-profit or non-profit
organization to perform some or all of the City's or Administering Agency's obligations
under this Agreement.
Section 17. Hold Harmless and Indemnification. Developer will indemnify and
hold harmless (without limit as to amount) City and its elected officials, officers,
employees, and agents in their official capacity (hereinafter collectively referred to as
"Indemnitees"), and any of them, from and against all loss, all risk of loss and all
damage (including expense) sustained or incurred because of or by reason of any and
all claims, demands, suits, actions, judgments and executions for damages of any and
every kind and by whomever and whenever made or obtained, allegedly caused by,
arising out of or relating in any manner to the Development, the Affordable Units, or
Developer's performance or non-performance under this Agreement, including without
limitation the construction or sale of any unit in the Development, and shall protect and
defend Indemnitees, and any of them with respect thereto, except to the extent arising
from the gross negligence or willful misconduct of the City. The provisions of this
section shall survive expiration or other termination of this Agreement or any release of
part or all of the Property from the burdens of this Agreement, and the provisions of this
section shall remain in full force and effect.
Section 18. Insurance Requirements. Until all Affordable Units have been sold
to Eligible Households in compliance with this Agreement, Developer and its successors
and assigns acquiring title to the Property shall obtain, at their expense, comprehensive
general liability insurance for development of the Affordable Units, naming Indemnitees
as additional named insureds, with aggregate limits of not less than Two Million Dollars
($2,000,000), for bodily injury and death and property damage, including coverage for
contractual liability and products and completed operations, purchased by Developer or
its successors or assigns from an insurance company duly licensed to engage in the
1442\02\318438.2_2.2.2006 9
business of issuing such insurance in the State, with a current Best's Key Rating of not
less than A-V, such insurance to be evidenced by an endorsement which so provides
and delivered to the City prior to the issuance of any building permit for the Affordable
Units.
Section 19. Notices. All notices required pursuant to this Agreement shall be in
writing and may be given by personal delivery or by registered or certified mail, return
receipt requested, to the party to receive such notice at the addresses set forth below:
TO THE CITY:
City of Atascadero
6907 EI Camino Real
Atascadero, CA. 93422
Attn: Community Development Director
TO THE DEVELOPER:
Centex Homes
735 Tank Farm Road
San Luis Obispo, CA 93401
Attn: Andrea Bradford
Any party may change the address to which notices are to be sent by notifying the other
parties of the new address, in the manner set forth above.
Section 20. Integrated Agreement. This Agreement constitutes the entire
Agreement between the parties and no modification shall be binding unless reduced to
writing and signed by the Parties.
Section 21. Duration and Amendment of Agreement. This Agreement shall
remain in effect for so long as the Property is subject to inclusionary housing obligations
pursuant to the Inclusionary Policy. This Agreement, and any section, subsection, or
covenant contained herein, may be amended only upon the written consent of the City
Council.
Section 22. No Joint Venture or Partnership. Nothing contained in this
Agreement or any document executed pursuant to this Agreement shall be construed as
creating a joint venture or partnership between City and Developer. Nothing contained
in this Agreement shall create or justify any claim against the City by any person that
Developer may have employed or with whom Developer may have contracted relative to
the purchase of materials, supplies or equipment, or the furnishing or the performance
of any work or services with respect to the Property or the construction of the
Development.
Section 23. Applicable Law and Venue. This Agreement shall be governed by
California law. Venue for any dispute arising out of this Agreement shall be San Luis
Obispo County.
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Section 24. Waivers. Any waiver by the City of any obligation or condition in
this Agreement must be in writing. No waiver will be implied from any delay or failure by
the City to take action on any breach or default of Developer or to pursue any remedy
allowed under this Agreement or applicable law. Any extension of time granted to
Developer to perform any obligation under this Agreement shall not operate as a waiver
or release from any of its obligations under this Agreement. Consent by the City to any
act or omission by Developer shall not be construed to be a consent to any other or
subsequent act or omission or to waive the requirement for the City's written consent to
future waivers.
Section 25. Title of Parts and Sections. Any titles of the sections or
subsections of this Agreement are inserted for convenience of reference only and shall
be disregarded in interpreting any part of the Agreement's provisions.
Section 26. Multiple Originals; Counterpart. This Agreement may be executed
in multiple originals, each of which is deemed to be an original, and may be signed in
counterparts.
Section 27. Recording of Agreement. The Developer shall cause this
Agreement to be recorded against the Property, in the Official Records of the County of
San Luis Obispo.
Section 28. Severability. In the event any limitation, condition, restriction,
covenant, or provision contained in this Agreement is to be held invalid, void or
unenforceable by any court of competent jurisdiction, or if any provision of this
Agreement is rendered invalid or unenforceable pursuant to any California statute which
became effective after the effective date of this Agreement, the remaining portions of
this Agreement shall nevertheless remain in full force and effect.
Section 29. Exhibits. The following exhibits are attached to this Agreement:
Exhibit A Legal Description of the Property
Exhibit B Affordable Housing Phasing Schedule
Exhibit C Site Plan
Exhibit D Calculation of Affordable Ownership Price
Exhibit E Income Level, Size, and Bedroom Count of Inclusionary
Units
Exhibit F Location of Affordable Units
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
1442\02\318438.2 2.2.2006 11
OWNER: CITY:
Centex Homes, a Nevada general City of At ero ipal corporation
partnership
By: P01Z wrt W,c1c�a►J�(
By: Centex Real Estate Corporation, WADE MCKINNEY, City Manager
A Nev a Corp tion
Its ark � e ral P er
By: '-1
Print Name: �� �►�/�
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APPROVEH�AS TO FORM AND LEGAL
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By: -'
PATRICK EN HT, City Attorney
a
STATE OF CALIFORNIA )
) SS.
CITY OF ATASCADERO )
On 10 200(o , before me, LINA Ate' personally
appeared 3eu)1 and, personally known tome (or proved tome on the
basis of satisfactory evidence) to be the person whose nae( a�e subscribed to
the within instrument and acknowledged to me that misye/toy executed the same in
< i ` r/th#r authorized capacity( s), and that by r/tpkir signatureO on the
instrument the persono, or the entity upon behalf of which the personas') acted,
executed the instrument.
4tary
S my Zand cial seal.
44
RQXANNA FULLER
ublicin for said State commission #1400915
Notary Public
C mia
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(SEAL) SANTA 13AH ARA COUNTY 18.2DO7
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STATE OF CALIFORNIA )
) SS.
CITY OF ATASCADERO )
On 3L,200 , before me,t�b (� a±ckL �(Y5personally
appeared W(j ren I�l.�n[�C'and, personally known to me
to be the person*whose name(s) is/,affe subscribed to
the within instrument and acknowledged to me that he/s4effhey executed the same in
his/fie #ieirauthorized capacity(is4, and that by his/heptteir-signature(s)-on the
instrument the personfs�, or the entity upon behalf of which the persons- acted,
executed the instrument.
WITNESS my hand and official seal.
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1442\02\318438.2_2.2.2006
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
TRACT 2626 IN THE CITY OF ATASCADERO, COUNTY OF SAN LUIS OBISPO,
STATE OF CALIFORNIA, ACCORDING TO THE MAP RECORDED ON r1I ,
200-(p IN BOOK tQ E2 AT PAGE(S) _F--, gAM.OF MAPS, IN THE OFFICE
OF THE COUNTY RECORDED OF SAID COUNTY.
1442\02\318438.22.2.2006 A_1
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EXHIBIT B
CENTEX HOMES
DOVE CREEK CONSTRUCTION TIMELINE
Affordable Housing Program
Revised October 26,2006
%of Units Complete
Construction Phase Estimated COO Date` #Units #Affordable Units at AFH Completion
Cottages Phase 1 October-06 6
Collection Phase 1 October-06 7
Villas Phase 1 November-06 5 2 6.5%
Cottages Phase 2 November-06 5
Collection Phase 2 November-06 7
Villas Phase 2 December-06 9 2 14.0%
Cottages Phase 3 December-06 5
Collection Phase 3 December-06 7
Villas Phase 3 January-07 8
Cottages Phase 4 January-07 6
Collection Phase 4 January-07 7
Villas Phase 4 February-07 8
Cottages Phase 5 February-07 6
Collection Phase 5 February-07 7
Villas Phase 5 March-07 8
Cottages Phase 6 March-07 6
Collection Phase 6 March-07 8
Villas Phase 6 April-07 9
Cottages Phase 7 April-07 6
Villas Phase 7 May-07 8
Cottages Phase 8 May-07 6
Villas Phase 8 June-07 9 2 54.84%
Cottages Phase 9 June-07 6
Villas Phase 9 July-07 8 2 59.86%
Cottages Phase 10 July-07 6
Villas Phase 10 August-07 8
Cottages Phase 11 August-07 6
Villas Phase 11 September-07 9
Cottages Phase 12 September-07 6
Villas Phase 12 October-07 10 4 75.99%
Cottages Phase 13 October-07 6
Villas Phase 13 November-07 10 4 81.72%
Cottages Phase 14 November-07 6
Villas Phase 14 December-07 9 2 87.10%
Cottages Phase 15 December-07 6
Villas Phase 15 January-08 9 2 92.47%
Cottages Phase 16 January-08 6
Model Build Out February-08 15
279 20
*Certificate of Occupancy Dates are estimated and may vary
*All dates subject to final map recordation and building permits
EXHIBIT D
CALCULATION OF AFFORDABLE OWNERSHIP PRICE
The Affordable Ownership Price for Affordable Units shall be calculated using the
procedures and formulas described below. The current City of Atascadero Moderate,
Lower, and Very Low Income Limits as established pursuant to the Inclusionary Policy
shall be used in these calculations. The interest rate used in these calculations shall be
determined by the City at its sole discretion.
1. Determine the area median income for a household size that is one person larger
than the number of bedrooms in the affordable unit.
2. Multiply the income limit as follows to obtain the annual housing allowance;
Very Low Income: 30% of 50% of the area median income, adjusted for
household size appropriate to the unit.
Lower Income: 30% of 70% of the area median income, adjusted for
household size appropriate to the unit.
Moderate Income: 30% of 120% of the area median income, adjusted
for household size appropriate to the unit.
3. Divide the annual housing allowance determined in the previous step by twelve
(12) to determine the monthly housing allowance;
4. Calculate the average monthly cost of property taxes, mortgage insurance,
homeowner's insurance, homeowners' association dues, assessments paid by
homeowners, utilities (excluding telephone), and a reasonable allowance for property
maintenance costs.
5. Subtract the amount calculated in Step 4 from the monthly housing allowance to
compute the amount available for mortgage payments.
6. Using a standard amortization table or formula, calculate the loan amount that
can be repaid over thirty (30) years with equal monthly payments equal to the amount
available for mortgage payments using the prevailing interest rate for thirty (30) years,
and assuming a fully amortized fixed rate mortgage.
7. Divide the loan amount calculated in the previous step by 0.95 to determine the
Affordable Ownership Price assuming a five percent (5%) down payment.
The following calculations are for a three (3) bedroom Moderate-Income Affordable Unit
based on the maximum income limits for San Luis Obispo County as of July 2004.
These calculations illustrate how the price of a Moderate Income Affordable Unit is
calculated.
1442\02\318438.22.2.2006 B-1
Step 1 Annual Moderate Income Limit for a 4 person household $74,050
Step 2 30% of the Income Limit determined in Step 1 $22,215
Step 3 One twelfth of the amount calculated in Step 2 $1,851
Step 4 Calculate monthly cost of property taxes, mortgage insurance,
homeowner's insurance, homeowners' association dues,
assessments paid by homeowners, utilities, and a reasonable
allowance for property maintenance costs (est.) $611
Step 5 Amount remaining for mortgage payments $1,240
Step 6 Amount that can be financed with payment calculated in Step 5 $201,400
with a 30 year fixed-rate loan at a 6.25% interest rate
Step 7 Loan amount in Step 6 divided by 95% = Affordable Ownership $212,000
Price
1442\02\318438.22.2.2006 B-2
EXHIBIT E
INCOME LEVEL, SIZE, AND BEDROOM COUNT_
OF AFFORDABLE UNITS
INCOME TYPE OF NUMBER NUMBER OF SQUARE ASSUMED
LEVEL OF UNIT OF BEDROOMS FOOTAGE HOUSEHOLD
BUYERS (single family UNITS SIZE
detached,
single family
attached, or
condominium
Very Low condominium 20 2 1431 3
Income
1442\02\318438.22.2.2006 C-1
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EXHIBIT F
LOCATION OF AFFORDABLE UNITS
UNITS 221-222, 201-202 AS DESCRIBED IN CONDO PLAN P Air.3RECORDED AS
DOCUMENT ' ,ON , 20 BEING A CONDOMINIUM SUBDIVISION OF
LOT HOA-3 Or TRACT 2626 IN THE CITY OF ATASCADERO, COUNTY OF SAN LUIS
BISPO, STATE OF CALIFORNIA, ACCORDING TO THE MAP RECORDED ON
pg,l ( 2,v., 200L IN BOOK AT PAGE(S) 9-37, OF MAPS, IN
T E OFFICE OF THE COUNTY RECORDED OF SAID COUNTY.
UNITS 276-277, 272-273 AS DESCRIBED IN CONDO PLAN IRECORDED AS
DOCUMENT ON , 20 BEING A CONDOMINIUM SUBDIVISION OF
LOT HOA-1 OF TRACT 2626 IN THE CITY OF ATASCADERO, COUNTY OF SAN LUIS
2 BISPO, STATE OF CALIFORNIA ACCORDING TO THE MAP RECORDED ON
,0&1l lo., 200 (o IN BOOK Z AT PAGE(S) 8 - 3 2 OF MAPS, IN
THE OFFICE OF THE COUNTY RECORDED OF SAID COUNTY.
UNITS 253-254, 247-248, 242-243, 238-239, 257-258, 267-268 AS DESCRIBED IN
CONDO PLAN Ph4w9RECORDED AS DOCUMENT ON , 20 BEING
A CONDOMINIUM SUBDIVISION OF LOT HOA-4 OF TRACT 2626 IN THE CITY OF
ATASCADERO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA,
ACCORDING TO THE MAP RECORDED ONAorzil 20, 200—(aIN BOOK 7-8
AT PAGE( ) 3
S Z OF MAPS, IN THE OFFICE OF THE COUNTY
RECORDED OF SAID COUNTY.
1442\02\318438.2 2.2.2006 D-1
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DOCUMENT*AlWAS PR AGED BY CANNON ASSOCIATES
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END OF DOCUMENT