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HomeMy WebLinkAbout4.07 Positano Ph 1 Afford HouseG~~~ OF DU~~2 ~///~~ 19 (~1= =710,82 ~\\771 1~/ O~LIFO~~~ STAFF REPORT CITY CLERK DUBLIN CITY COUNCIL File # ^®®®-©® DATE: October 20, 2009 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJECT: Positano Affordable Mousing Agreement -Amendment No. 4 to the Affordable Housing Agreement for the First Phase of Positano Prepared By: Jeff Baker, Planning Manager EXECUTIVE SUMMARY: Braddock and Logan has proposed an amendment to the Affordable Housing Agreement for the First Phase of the Positano Project, which consists of a total of 1,043 single-family lots east of Fallon Road. The amendment proposes a minor change to the location of two of the Inclusionary secondary units and a non-substantive change to the provisions requiring construction of the Inclusionary Units concurrently with the market-rate units. FINANCIAL IMPACT: The costs to administer Affordable Housing Agreements are included in administration fees that are charged with the sale of each affordable unit. RECOMMENDATION: Adopt Resolution approving Amendment No. 4 to the Affordable Housing Agreement for the First Phase (416 Units) of Positano to modify the location of the inclusionary units within Part One of the First Phase of the project. S bmitted By Community evelopment Director eviewed Assistant City Manager Page 1 of 3 ITEM NO. `T G:\PA#\2005\OS-038 B&L Slage 2 Fallon VillageWffordable Housing AgreementWHA Phase 1 Amend #4\ccsr Amend 4.DOC G DESCRIPTION: Background Braddock & Logan's Positano development is a residential development consisting of 1,043 single-family homes on approximately 488-acres. The project site is located within the northern portion of the larger Fallon Village project area, east of Fallon Road and the Dublin Ranch development, west and southwest of the City Limits boundary with Alameda County and Doolan Canyon (see Map 1 to the right). Braddock & Logan has received approval of Site Development Review (SDR) to construct the first phase of the development consisting of 247 homes. Construction of the homes in the first phase is currently underway. Map 1: Positano Vicinity Map Affordable Housing Agreement Inclusionary Zoning Regulations The Inclusionary Zoning Regulations of the City of Dublin Zoning Ordinance (Chapter 8.68) contains affordable housing requirements for all new developments of 20 or more units. Residential developments consisting of 20 or more units are required to provide 12.5% of the units as affordable to households with very-low, low, and moderate income levels as determined by the California Department of Housing and Community Development for Alameda County. These affordable units are required to be constructed on-site and integrated with the market rate units. The affordable units are required to be evenly distributed throughout the project, include a range of bedrooms consistent with the overall project, and be indistinguishable in exterior appearance from the market rate units. The Inclusionary Zoning Regulations also provide the City Council with the ability to make exceptions to the regulations contained in the Inclusionary Zoning Ordinance, including alternative methods of compliance with the Inclusionary Zoning Regulations such as the development of off-site affordable units. In the case of the Positano development, the City Council has granted exceptions to the method of compliance with the Inclusionary Zoning Ordinance as discussed below. The Braddock and Logan Affordable Housing Proposal and the Existing Agreements Braddock and Logan proposed an alternative means of compliance, and the City and Braddock and Logan negotiated two agreements that set out those alternative means of compliance. The first agreement, known as the First Phase Affordable Housing Agreement, sets out the obligations as to the initial 416-lots in the project. The second agreement, known as the Subsequent Phase Affordable Housing Agreement, sets out the obligations as to the subsequent 627 lots in the remainder of the project. The First Phase Agreement has been amended three times, and the details and history of the agreements and Braddock and Logan's affordable housing proposal are detailed in the June 16, 2009 staff report (attached hereto as Attachment 1). Amendment No. 3 to the First Phase Agreement, approved at the June 16, 2009 meeting, is attached as Attachment 2. Proposed Amendment to the First Phase Agreement Braddock and Logan has recently negotiated two sales of property within the First Phase of the Positano Project. The first sale involves forty lots south of Positano Parkway to be sold to KB Home. The second involves 43 lots north of Positano Parkway to be sold to DR Horton. In conjunction with the latter sale, Braddock and Logan and DR Horton desire that two secondary Page 2 of 3 Inclusionary units be moved to the 43 lots to be developed by DR Horton (See Attachment 3). If the relocation were approved, Staff believes that the inclusionary units would be "reasonably dispersed" throughout the First Phase as required by the Inclusionary Zoning Regulations. The First Phase Agreement includes a preliminary construction schedule, and it indicates that if Braddock and Logan adheres to that construction schedule it will be deemed to be constructing the Inclusionary Units concurrently with the market rate units, as required by the Inclusionary Zoning Regulations. Due to the various changes in its development plans and economic conditions, Braddock and Logan's construction schedule has been in a state of flux. Furthermore, with the land sales, other developers are responsible for constructing both market rate and affordable units, and they will be setting their own construction schedules. Because of these circumstances, .Braddock and Logan has requested that the construction schedule be eliminated so as to avoid confusion in the future. Under the terms of the First Phase Agreement, staff will still have the authority to withhold building-permit issuance if it finds that the Inclusionary Units are not being constructed concurrently with the market rate units. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None required. ATTACHMENTS: 1. City Council Staff Report, dated June 16, 2009, with attachments. 2. Amendment No. 3 to Affordable Housing Agreement for the First Phase of Positano, dated June 16, 2009. 3. Diagram showing the proposed and existing locations of the two secondary inclusionary units that are proposed to be relocated. 4. Resolution Approving Amendment No. 4 to the Affordable Housing Agreement for the First Phase (416 Units) of Positano to Modify the Location of the Inclusionary Units within Part One of the First Phase of the Project (PA 05-038 and PA 07-005) [with the amendment attached as Exhibit A]. Page 3 of 3 orllUB~~ CITY CLERK File # ^~,~,~, ~® ~ 11~ ~1-~ 82 ~ lD ~ ~ \~ ~C'~ t .,.._r,~11~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 16, 2009 SUBJECT: Positano Affordable Housing Agreement -Amendment No. 3 to the Affordable Housing Agreement for the First Phase of Positano. Report Prepared by Jeff Baker, Acting Planning Manager ATTACHMENTS: 1) City Council Staff Report dated October 18, 2005, with attachments. 2) City Council Meeting Minutes dated October 18, 2005. 3) Affordable Housing Agreement for the First Phase of Positano. 4) Amendment No. 1 to the Affordable Housing Agreement for the First Phase of Positano. 5) Amendment No. 2 to the Affordable Housing Agreement for the First Phase of Positano. 6) Subsequent Phase Affordable Housing Agreement. 7) Resolution approving Amendment No. 3 to the Affordable Housing Agreement for the First Phase (416 units) of Positano to modify the unit mix and income affordability level of the Inclusionary units and authorizing the City Manager to execute the Amendment, with the Amendment attached as Exhibit A. RECOMMENDATION: 1) Receive Staff presentation; ~~ 2) Take testimony from the Applicant and the public; 4 3) Deliberate; and 4) Adopt the Resolution approving Amendment No. 3 to the Affordable Housing Agreement for the First Phase (416 units) of Positano to modify the unit mix and income affordability level of the Inclusionary units and authorizing the City Manager to execute the Amendment. FINANCIAL STATEMENT: The costs to administer these Affordable Housing Agreements are included in the administration fees that are charged with the sale of each affnrrlahle nnit_ DESCRIPTION: Background Braddock & Logan's Positano development is a residential development consisting of 1,043 single-family homes on approximately 488-acres. The project site is located within the ;`~..;. v,, ~~~ -'~ ~, ~ Af ~l~ ~ tl i ;~ ~ 4 ~` ~. , , ; ' F ~ ._ _...... . - . r Map 1: Positano Vicinity Map COPY TO: Jeff Lawrence, Braddock & Logan Attachment 1 File PA OS-038 Page 1 of 6 ~ ~ - ~~~G'L~ ~' ~ ~~~'' ~-"~~ L? G:\PA#\2005\OS-038 B&L Stage 2 Fallon VillageWffordable Housing AgreementWHA Phase I Amend #3\CCSK AHA Amd 3.doe ~i- ~~V northern portion of the larger Fallon Village project area, east of Fallon Road and the D~51in Rch development, west and southwest of the City Limits boundary with Alameda County and Doolan Canyon (see Map 1 above). Braddock & Logan has received approval of Site Development Review (SDR) to construct the first phase of the development consisting of 247 homes in the Salerno and Cantara neighborhoods. Construction of the homes in the first phase is currently underway. Affordable Housing Agreement Inclusionary Zoning Regulations The Inclusionary Zoning Regulations of the City of Dublin Zoning Ordinance (Chapter 8.68) contains affordable housing requirements for all new developments of 20 or more units. Residential developments consisting of 20 or more units are required to provide 12.5% of the units as affordable to households with very-low, low, and moderate income levels as determined by the California Department of Housing and Community Development for Alameda County. These affordable units are required to be constructed on- site and integrated with the market rate units. The affordable units are required to be evenly distributed throughout the project, include a range of bedrooms consistent with the overall project, and be indistinguishable in exterior appearance from the market rate units. The Inclusionary Zoning Regulations also provide the City Council with the ability to make exceptions to the regulations contained in the Inclusionary Zoning Ordinance, including alternative methods of compliance with the Inclusionary Zoning Regulations such as the development of off-site affordable units. In the case of the Positano development, the City Council has granted exceptions to the method of compliance with the Inclusionary Zoning Ordinance as discussed below. Affordable Housing Proposal In accordance with the Inclusionary Zoning Regulations, the Positano. development has a requirement to provide 130 affordable units. Table 1: Positano Inclusionarv Zoning Requirements Total Units Inclusionary Re uirement Inclusionary Units 1,043 12.5% 130 Braddock & Logan prepared an affordable housing proposal to address the affordable obligation for the Positano development which was reviewed by the City Council on October 18, 2005 (Attachment 1). The 2005 affordable housing proposal included a combination of on-site integrated units, secondary units, off- site apartments on the Anderson property, and a $1,000,000 Community Benefit Payment on a per unit basis (i.e. $958.77 per unit) prior to issuance of each building permit in Positano. The City Council reviewed the proposal and directed Staff to work with Braddock & Logan to refine the proposal (Attachment 2) to include: 1) rear yard landscaping, energy efficient measures, and green building principles into affordable units; 2) study feasibility of integrating market rate units into the proposed off- site affordable apartment project; and 3) address the timing and security necessary to ensure completion of the off-site apartments. Staff worked with Braddock & Logan to prepare an Affordable Housing Agreement (AHA) to address the direction from the City Council. As requested by the Applicant, the affordable requirement is addressed through a phased approach and consists of a First Phase AHA and a Subsequent Phase AHA as described below. Please refer to Map 2 (below) for the location of the various phases of the Affordable Housing Agreements. This phased approach allowed Braddock & Logan to proceed with the initial phases of development while the terms of the AHA were finalized for the remaining portions of Positano. 2 of 6 ----, _ Poarana Par, : of Fi.;t ?base (_'3 ~ ion) ,~ „ Posiraoa Par. ~ of Firs; Phase l~ il'.91xn~ ® Su'vsegxcsPhaae t83 4otci 0 Finat P.sse t.`39 ;or„ Map 2: Affordable Housing Agreement Phases of Positano 3 ~ a~~ First Phase Affordable Housing Agreement: The First Phase consists of 416 lots and is broken down into two parts. Part One consists of 247 lots in the Salerno and Cantara neighborhoods. Part Two consists of the remaining 169 lots within the First Phase. Please refer to Map 2 (above) for the location of the Part One and Two of the First Phase AHA. The First Phase AHA was approved by the City Council on June 5, 2007 (Attachment 3). Since that time, two Amendments have been approved which modified the unit mix and affordability of the Inclusionary Units. Amendment No. 1 was approved on June 17, 2008 (Attachment 4) and Amendment No. 2 was approved,on November 4, 2008 (Attachment 5). Braddock & Logan is currently requesting approval of Amendment No. 3 to this Agreement as discussed below. Subsequent Phase Affordable Housing Agreement.• This Agreement addresses the inclusionary requirements for the remaining 627 lots in Positano (Attachment 6). This Agreement consists of two phases, a Subsequent Phase and a Final Phase. Please refer to Map 2 (above) for the location of the Subsequent and Final Phases. The developer will satisfy the inclusionary zoning requirements for the 627 lots by constructing 78 off-site affordable apartments (2 bedroom/2 bathroom units) on the Anderson property. The Anderson property is generally located north of Interstate 580 and east of Croak Road near the eastern City limits in Fallon Village (see Map 3 to the right). ., ,, ...:~ ~ , r+, ~ +~ srrt~: _-- '~, _; rtzt_ ~~,r: :. .,,: _. i r t ~ .` . :, t ~,• ~. /~ . ~ ~~ .~ 4 _ ~ ;t, Map 3: Anderson Vicinity Map Table 2 below illustrates the unit mix and affordability level under the current Affordable Housing Agreement for Positano (First Phase Agreement Amendment No. 2 and Subsequent Phase Agreement). 3 of 6 ,- i anie ~: A roves A>o<oraan>le rious m unit Ivi~x Unit Type Ownership Income Level Size of Units Affordability /Rental period 18Single-family For sale 83°% moderate (15 units) 4 bedroom units In perpetuity detached Units 17 /o low (3 units) 34 Secondary Units Rental 26% low (9 units) 1 bedroom/ In perpetuity ° 74 /o very low (25 units) 1 bath 50% moderate (39 units) 2 bedroom! 78 Apartments* Rental 20% low (16 units) In perpetuity 30% ve low (23 units) 2 bath 130 Total Units * Plus 4 units to satisfy the Inclusionary Zoning requirements for the Anderson property. Current Request Braddock & Logan is currently requesting approval of Amendment No. 3 to the First Phase Affordable Housing Agreement for Positano (Attachment 7) to modify the unit mix and income affordability of the Inclusionary units as discussed below. ANALYSIS: Part One of the First Phase AHA includes a total of 247 lots within two neighborhoods (Cantara and Salerno). These 247 lots generate an inclusionary zoning requirement to provide 31 affordable units. Part Two includes a total of 169 lots. These lots generate an Inclusionary Zoning Requirement to provide 21 affordable units (please refer to Table 3 below). Tahle 3: First Phase Inclusionarv Reauirement (Part Onel Phase of AHA Total Units Inclusionary Re uirement Inclusions Units Part One 247 12.5% 31 Part Two 169 12.5% 21 Revised Unit Mix Under the Agreement, as previously amended, Braddock & Logan would satisfy this requirement in Part One by constructing 26 affordable units and paying fees in-lieu of constructing the 5 additional units in this phase (please refer to Table 4 below) and in Part Two by constructing 26 affordable units (please refer to Table 5 below). Under the terms of the Agreement, the in-lieu fee would be refunded at the point at which the location of the Inclusionary units in Part Two were approved by the City. Braddock & Logan proposes to construct 31 affordable units in the Part One of the First Phase, rather than 26 units, which will avoid the necessity of paying the in-lieu fee for the additional 5-unit obligation. It would also result in 5 fewer affordable units being constructed in Part Two of the First Phase. In addition, Braddock and Logan proposes to modify the unit mix and affordability of the affordable units in Parts One and Two. Under the current proposal Braddock & Logan would introduce a new secondary unit size - 275 square foot secondary units as studio units (rather than 437 square foot one bedroom units). The Studio and one bedroom secondary units are attached the primary residence. The proposal would: 1) eliminate seven of the 4 bedroom detached homes affordable to low and moderate income households; 2) eliminate nine of the 1 bedroom secondary units affordable to very-low and low income households; and 3) add twenty-one studio secondary units affordable to very-low income households (Attachment 7). The Applicant would continue to pay a prorated portion of the $1,000,000 Community Benefit Payment prior to issuance of each building permit. Tables 4 and 5 below provide a comparison of the existing and proposed unit mix and affordability level in, respectively, Parts One and Two of the First Phase. G~ aAd ~ k 4of6 ~ ~... Table 4: Existing and Proposed Affordable Unit Mix for Part One of Expanded First Phase Ta'. Existin A ffordable Unit Mix Pro osed Affordable Unit Mix Unit T e Income Level Unit T e Income Level 9 Single-family 67% moderate (6 units) 2Single-family 50% moderate (1 unit) detached Units 33% low (3 units) detached Units 50% low (1 unit) 17 One Bedroom 47% low (9 units) 8 One Bedroom 88% low (7 units) Seconda Units 53% ve low (8 units) Seconda Units 12% very low (1 unit) 0 Studio 21 Studio __ 100% very low (21 units) Secondary Units Seconda Units Total: 26 units* -- Total: 31 Units -- *Plus Inclusionary Zoning In-lieu fee for five units. ale 5: Existin and Pro osed Affordable U nit Mix for Part Two of Ex anded First Pb Existin A ffordable Unit Mix Pro osed Affordable Unit Mix Unit T e Income Level Unit T e Income Level 9 Single-family detached Units 100% moderate (9 units) 9Single-family detached Units 100% moderate (9 unit) 17 One Bedroom Secondary Units 100% very low (17 units) 12 One Bedroom Secondary Units 100% very low (12 units) 0 Studio Seconda Units __ 12 Studio Secondary Units __ Total: 26 units* -- Total: 21 Units -- ase The Applicant has indicated that in the current economic climate it is not feasible to sell the 4-bedroom homes to very-low-, low-, and moderate-income households. The Applicant has indicated that currently the price of these homes is not competitive with homes that are available on the resale market. The Applicant believes that the proposed Amendment to provide studio secondary rental units available to very-low income households satisfies the intent of the Inclusionary Zoning requirements and is better suited for the current market. The proposed change also results in "deeper" affordability in that the total number of very low income units has increased from 25 to 34 and the number of moderate-income units has decreased from 15 to 10, and the number of low-income units has decreased from 12 to 8. However, because the 275 square foot studios will replace the 437 square foot one bedroom units, the secondary units would generally be smaller than the units produced under the current agreement. Rear Yard Landscaping The City Council directed Staff to work with Braddock & Logan to provide rear yazd landscaping for the affordable single-family detached units. The First Phase AHA (Attachment 3 - AHA Section 6.C, Page 5) requires the Developer to provide reaz yard landscaping for all of the detached affordable units as directed by the City Council (including turf, shrubs, trees, irrigation, and a usable rear yard area). The Developer is required to submit conceptual reaz yazd Landscape Plans for review as part of the SDR application for the design of the homes. Energy Efficiency and Green Building Principles The First Phase AHA (Attachment 3 - AHA Section 6.D, Page 5) also obligates the developer to incorporate energy efficient measures and green building practices for all of the affordable detached units and secondary units. Braddock & Logan also submitted a "Single-Family GreenPoint Checklist" that identifies the energy efficiency and green building measures that will be incorporated into the affordable units. This checklist was incorporated into the First Phase AHA (Attachment 3, Exhibit 5), and the Agreement required that each unit obtain 50 points on the checklist. The amendment would require that each unit obtain 52 points on the checklist. 5 of 6 (o Q ~ ~~ Subsequent Phase Affordable Housing Agreement As previously discussed, Braddock & Logan proposed to satisfy a portion of the affordable housing obligation through the construction of 78 off-site affordable apartments on the Anderson property. The Subsequent Agreement prevents development of the last 539 residential lots in the 1,043-unit project until either the Anderson Project is under construction or the Subsequent Agreement is amended. Braddock & Logan no longer controls the Anderson property. Therefore, it is likely that in the future the Applicant will request an Amendment to the Subsequent Phase Affordable Housing Agreement to address the affordable obligation through an alternative to creation of inclusionary units on the Anderson property. CONCLUSION: Braddock & Logan is requesting approval of Amendment No. 3 to the First Phase Affordable Housing Agreement for Positano to modify the unit mix and income affordability of the Inclusionary units (Attachment 7). Because the secondary units (i.e. studio and 1 bedroom units) and the affordable single- family detached units are not strictly consistent with the requirements in the Inclusionary Zoning Ordinance that states the affordable units should "be allocated to households with very-low, low, and moderate income levels" as defined in the Ordinance, and should "reflect the range of numbers of bedrooms provided in the project as a whole" and because the secondary units do not satisfy the requirement that the units "not be distinguished by exterior design, construction, or materials," the City Council must find that Braddock & Logan's alternate proposal meets the purposes of the Inclusionary Zoning Ordinance. Staff believes this finding can be made based on the affordability characteristics of 4 bedroom homes and the secondary units, the fact that the units will be affordable in perpetuity and the Developer's commitment to provide fully landscaped rear yards and energy efficiency measures which reduce housing costs. RECOMMENDATION: Staff recommends that the City Council: 1) Receive Staff presentation; 2) Take testimony from the Applicant and the public; 3) Deliberate; and 4) Adopt the Resolution approving Amendment No. 3 to the Affordable Housing Agreement for the First Phase (416 units) of Positano to modify the unit mix and income affordability level of the Inclusionary units and authorizing the City Manager to execute the Amendment. 6of6 ~o>aDU~~ CITY CLEr~r~ J ~ Ul File # ~®~L~ 1'~®~~ ~i~82 XW3o--S~ ~~ ~ K W ~v-- ~p AGENDA STATEMENT GITY GQUNCIL MEETING DATE: Qctober '18, 2005 SUB.IECT: Braddock and Logan Affordable Housing Proposal to Comply with IncIusionary Zoning Regulations for the Braddock and Logan dcvclopment at Fallon Village Report Prepared by Julia Abdala/Housin~ Specialist ATTACHMENTS: 1. Braddock and Logan Affordable Housing Proposal 2. Proposed Stage 1 Development Map 3. Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning Regulations) RECOMMENDATION: 1. Receive Staff Presentation 2. 3. Hear Public Testimony Deliberate 4. Direct Staff to: (a) Inform Braddock & Logan that the Council will not waive the requirements of the InClusionary Zoning Regulations required by the proposal; OR (b) By consensus, direct Staffto work with Braddock 8c Logan to refine the proposal including, in particular, the timing of construction ot; and security for, the proposed affordable units. FINANCIAL STATEMENT: DESCRIPTION: No fiscal impact at this time. The eleven property owners of the Fallon Village area have subntted a request for a Stage 1 Development Plan. At the same time Braddock and Logan has submitted a request for a Stage 2 llcvelopment Plan and a Vesting Tentative Map for the Braddock and Logan property, consisting ol'the northernmost 486 acres of Fallon Village. (See Attachment 2) The Stage 2 submittal- is for the creation of 1,043 single-family units at this site. ca~Y To: Page 1 of 7 G:1PfW12U051U5-U38 P6tL Stage 2 Fallon Vitlaga\GCSR lU-i-US t3R1. Housing l'tUposat,l)OC Approval of a Stage 2 Development Plan and Vesting Tentative Map will trigger the requirements of~e ~ ~ a City of Dublin inclusiouary7.oning Regulations, Chapter 8.68 of the Zoning Qrdinance (Attachment 4). Chapter 8.G8's stated. purpose is to enhance the public welfare and assure further housing development contributes to the attainment of the City's housing goals by increasing production of a .ffordable units, and to assure that the limited remaining developable land is utilized in a manner consistent with the City's housing policies and needs. (Section 8.b8.010.) The ordinance requires developers constructing residential units in the City to provide 12.5% of the development as affordable housing;. The Inclusioiuuy Zoning Regulations break down the affordable requirements to production of SO% of the affordable units for moderate-income households, 2U% of the units for low-income households, and 30% of the units for very low-income households as defned for the County of Alameda by the State of California Housing and Community Development Department. The inclusionary Regulations further treat the development of"for sale" housing and rental housing similarly, with the same affordable unit requirement and the same income level breakdown. The Inclusionary Zoning Regulations provide that the affordable units -both rentals and "for sale" units -- reflect the range of the number of bedrooms as the market rate development and not be distinguished by exterior design or materials. The affordahle units may, however, be smaller in size and may have fewer amenities. Finally, the affordable units are to be dispersed throughout the development (Section 8.G8.030.E). The Zoning Regulations state that an applicant may fulfill the lnclusionary affordable housing requirement by coztsttucting the affordable units off-site if the City Council makes the following five findings: 1. that construction of the units off-site in lieu of constructing units on-site is consistent with the chapter's goal of creating, preserving, maintaining, and protecting, housing for very low-, low- andmoderate-income households. 2. that the units to be constructed off-site arc consistent with Section 8.68.030.E (same range and number of bedrooms as provided in the project as a whole, consistent in design, construction and material and are reasonably dispersed throughout the project). 3. that it would be infeasible or impractical to construct affordable units on-site. 4. that conditions of approval for the project require that the off-site affordable units would be governed by the terms of a deed restriction and, if applicable, rental restrictions similaz to that used for the on-site affordable units. 5. that conditions of approval for the project, or other security such as a cash deposit, bond, or Ietter of credit, are adequate to require the construction of the off-site affordable units concurrently with the completion of the construction of the residential development or within a reasonable period (not to exceed S years). The Inclusionary Zoning Regulations provide the City Council the option to waive the requirements of the regulations. Section 8.68.040.E states "The City Council, at its discretion, may waive, wholly or partially, the requirements of this ordinance and approve alternate methods of compliance with this Chapter if the applicant demonstrates, and the City Council finds, that such alternative methods meet the purpose of this Chapter." Page 2 of 7 ANALYSYS: '~ ' t. , `,~ ~ ~. v'''' Braddock and Logan has presented a proposal to provide the number of affordable units required for the construction of 1043 single-family units at the 486-acre property they currently own (See Attachment 1). Per the lnclusionary Zoning Regulations a development of 1043 units would require 130 affordable units. The ordinance allows a developer to pay fees in lieu of constructing 40% of the required affordable units, which equates to 5% of the total units. Braddock & Logan could, thus, pay fees for 52 units which are currently $84,198 for each unit not constructed. This would produce an in lieu fee total of $4,390,25.70. Braddock and Logan's proposal is to build all 130 affordable units required for the 486-acre property they currently own. The proposal is not consistent with the requirements of the lnclusionary Zoning Regulations in several ways. Because of these differences Staff is presenting the proposal and requesting direction from the City Cotmcil. Summary of Proposal: The proposal presented by Braddock and Logan involves two parcels. The fast is the 486-acre propertywhich is the subject of the Stage 2 Development Plan and Vesting Tentative Map and would include 1043 units. The second property is the Anderson Property (See Attachment 2), which is proposed to be designated multi-family medium density., Braddock &. Logan does not own the Anderson property at this time. The proposal is to construct 88 units on the Anderson Property; 78 would be off-site affordable units for the 486-acre Fallon Villages property, 9 would satisfy the lnclusionary ordinance requirement for the 78 uzuts on the Anderson property and one would be a manager's unit. The total number of affordable units Braddock and Logan proposes to construct would be 139 units between the two sites. The proposal is as follows: 1. 261ntegrated Units. 26 affordable units for sale would be built on 4,000 square foot lots of Fallon Village. These would be identical in appearance, materials and bedroom count to the market rate homes and would meet all of the requirements of Chapter 8.68. The units would be affordable in perpetuity. 2. 26 Secondary Units. 26 affordable units would be secondary dwelling units, attached to 26 of the homes on 6,000 square foot lots. All units would be rentals and would be attached to the main dwelling. They would be one-bedroom units. The units would be affordable in perpetuity. 3. 88 Multi family Units. These would be constructed off-site on the Anderson property as part of an apartment complex with two-bedroom, two-bathroom units. There would also be 9 affordable units to satisfy the Inclusionary requirements for the Anderson property and one manager's unit, that would be market rate. The 87 units would be affordable in perpetuity. 4. Braddock & Logan would make a payment of $1mi11ion to the City for affordable housing ar community benefit. The following Table represents a summary of Braddock & Logan's Affordable Housing Proposal: ^ Page 3 of 7 Tvae of Ownership Income mix Size of units Affordability Period Unit /Rental 26 For sale 50% mod-income Same mix of In perpetuity Integrated units 20%low-income bedroom size as Units 30% ve low inc. market rate dev. 2G Rental units 50%mod-income All In perpetuity Secondary 20%low-income 1 bedroom Units 30% ve low inc. 1 bath 78 Rental units 50%mod-income All In perpetuity Apartments 20% low-income 2 bedroom plus the 9 30% very low inc. 2 bath units for the Anderson ro e Timing of Construction and Security l The timing of construction in the proposal is different for the 2G integrated units, the 2G secondary units and the 88 off-site units. Staff believes that the timing included in the proposal, and the security proposed, do not meet the purpose or requirements of the ordinance in that construction of the affordable units would not be guaranteed concurrent with construction of market rate units. Staff is prepared to work with the applicant; however, to modify the timing and security proposed if the Council is interested in considering the proposal. For example, some security measures would nced to be in place, until Braddock and i,ogan obtains ownership of the Anderson property and then pulls building permits to construct the multifanuly complex. A regulatory agreement would need to be in place tying the issuance of building permit for the market rate units to the number of Inclusionary units under construction. The conditions and regulatory agreement would also need to explicitly indicate that should the developer be unsuccessful in obtaining the Anderson property and obtaining the required approvals and financing, the requirements of the Inclusionary Zoning Regulations would apply; that is, all inclusionary Units are to be built throughout the subject site, of the same bedroom mix as the whole development and would be evenly dispersed throughout the development. Waivers RequesteJ Braddock and Logan is requesting waivers from the lnelusionary Zoning Regulations, Waivers would be required from: The bedroom mix of the 26 secondary and 78 off site Inclusionary Units because they would not mirror what is being constructed at the market rate homes. The requirement that the units be dispersed throughout the project because the 88 units would be concentrated on the Anderson property. The requirement lhai all of Znclusionary units be built concurrent with the remainder of the development. Two factors that the Council could consider in granlitag waivers are that the developer is offering to provide $1 million to the City's Affordable Housing Fund or other Community Benefit Fund in addition to providing the 12.5% required units and that the units would remain affordable in perpetuity, rather than far 55 years. Page 4 of 7 Issues Reciting to the Three Types ofAf,~brdrible Units Being Proposed: } ~f y ` ` .J 1. 26 Integrated Units Providing units along with the market rate units at the site of the development is cansistenl with the lnclusionary Zoning Ordinance. The developer is further indicating that the units would be marketed to the income-range mix that is specified in the Inclusionary Zoning Ordinance. The issues that arise with this part of the proposal are subtle. The homes to be built are large homes and the market rate homes will be expensive to purchase. All of the homes will be expensive to maintain. Along with the purchase of the large home arc expenses such as landscaping, maintenance, heating, etc. The policy issue is whether it is the Council's desire and the intent of the Inclusionary Zoning Regulations to provide homes of this size to very low-, low- and moderate-income households. If the intent of the lnclusionary Zoning Regulations is, rather, to provide entry-level homes for lower-income households to enter the homeownership market then perhaps this is not an ideal solution being proposed. 2. 26 Secondary Units The secondary units, sometimes referred to as "granny flats," maybe of several types. They could be over the garage as in the Bernal development in Pleasanton or they could be attached to lire maim home and have a separate entrance. The proposal that Braddock and Logan is presenting indicates that these would be one-bedroom, one-bath units and they would be attached to the house. The Council would have to grant the applicant a waiver from the requirement of the Inclusionary Zoning Regulations that the affordable orals reflect the same number of bedrooms as the market rate units. A waiver can be granted pursuant to section 8.68.040.E. The main issue with granny units is that it is not feasible to require the individual single-family homeowners to rent out the granny units. !f the units are not rented out to the specified income category household, then the required number of Inclusionary Units is not beir-g provided. The owners of these units would be able to rent out the unit to lower-income households, keep them unoccupied and for their personal use, or allow for family members to occupy the units. If the property owners decide not to rent the units out, then the required 26 units that are required, per the .inclusionary Zoning Regulations, would not be available and the number of units available for lower-income households would be less than the 139 proposed. Staffbelieves there are other issues tied to secondary units that the Council should consider. Providing one-bedroom units will limit the size of the households that could occupy the units to one or two person households. These units may not be able to be adnunistered in any meaningful way by City Housing Staff. Currently, and per the Inclusionary Ordinance and the "Layperson's Guide to the lnclusionary Zoning Ordinance Regulations", Housing Staffmonitors all rental units that axe restricted to lower-income households annually. So far all of these are apartment complexes with professional management staffs. Nonetheless, it sometimes requires several attempts to have the management staffs provide the required information on the lower-income tenants. If City Housing Staff is going to be contacting each private single-family home owner and requesting information on 1) whether they are renting our their units, and 2) the income of the tenant, it maybe substantially more difficult to secure the required information. if Staff does not receive the information needed within a reasonable amount of time and aRer repeated efforts, Staff may involve the City Attor'ney's office. and Council in seeking compliance with the regulatory agreement. Page 5 of 7 3. $$ Apartments (7$ off-site inclusionary units and 9 on-site inclusionary units, plus a }~-r.~ ~;~~~` manager's unit) e,,~ The proposal is for the off-site development of 87 units to house moderate-, low- and very low-income households, in the wine ratio required by the Tnclusionary Ordinance. For the Council to allow the applicant to satisfy the inclusionary requirements by constructing units oi'f- site, it would have to make the five findings discussed above. Staff' does not believe the proposal, as presented, allows the Council to make all five findings. Tf the Council is interested in considering the proposal for off-site construction oFunits and believes the five findings can be made with revisions to the proposal, Staff can work with the applicant to refine the proposal. One refinement that Staff would recommend is a trigger point for construction of the 88 units or construction of the units on-site, given the fact that the applicant does not own the Anderson property. Tn order to make the five findings, the Council would need to grant a waiver from the bedroom count requirement of the ordinance and a waiver from the dispersal requirement or the ordinance. The construction of apartments off-site to satisfy the requirements of the inclusionary Zoning Regulations has been allowed before in the City of Dublin. Staffknows how to work with both the developers and the management entity to enforce the provisions of the executed Affordable Housing Agreement. Before any building permits are allowed for an aftbrdablc development such as an apartment complex, Staff assures that the appropriate Affordable )'`sousing Agreement is executed and that the developer has provided a management plan, indicating the method of marketing the developtrnent to the households intended, the procedures that will be in place to verify the income of the income restricted tenants, and the manner in which the City of Dublin occupancy preferences will be administered in the selection of tenants. The apartment complex proposed by Braddock and Logan would be required to provide the same items. Braddock and Logan has further indicated to Staff that the construction of this apartznent complex would be fully funded by Braddock and Logan proceeds. The developer does not intend to apply for tax credits or tax exempt bonds or other funds available to lower-income rental developments. As such, the developer would not request any gap funding from the City of Dublin. This is not part of the formal proposal, however. OPTIONS: $raddock and Logan has indicated that if the above described proposal is not satisfactory to the City Council that the firm would provide 7S inclusionary Units (7.5%) on the Falcon Villages site, mixed in with the market-rate for sale units and pay the required in lieu fee for the other S%. While this may seem similar in approach to all other "for sale" developments with inclusionary Units the City has approved there arc some differences. First, the homes being considered in this development are larger than any other homes so far developed with affordable units. As noted above, to provide a 4000 or 60(}0 square foot lots to a lower-income household may present a household with a home that they cannot afford to maintain. Along with the restricted sale price will come a number of expenses, including property taxes, homeowners' insurance, landscaping, heating and cooling and general long-term maintenance. The additional housing costs may exceed what the lower-income household maybe able to pay. The results may be awell-intended mismatch of ownership to for sale product. Other options can be explored to provide inclusionary Units on-site, but any variation from the inclusionary Zoning Regulations would require waivers. Most of the other developers of "for sale" housing have found innovative ways to accommodate the inclusionary requirements of the City of Dublin. Page fi of 7 Pinn Brothers will be offering eight of the smaller "Manor" cluster homes to moderate-income ~`N°' ~ ~ ~~ households with the low- and v low-income households offered homes in the condominiums. ~ - > ~' Greenbriar developed town homes in the zn.idst of the larger single-family homes specifically for the Inclusionary Units. Duplexes and Triplexes may also be incorporated into single-family neighborhoods without changing the character of the tracts. If the City Council determines that Braddock and Logan's Proposal should be modified in some way, it would be beneficial to provide that direction to both Staffand Braddock and Logatt at this meeting. There would be no guarantee that $raddock and Logan's offer to construct 130 units rather than paying in lieu fees for 52 units, to make all units affordable izt perpetuity and to donate $1 million to the City would be part of any other proposal that required the City Council to waive requirements of the ordinance. However, Staff and Braddock and Logan could explore these other options that would be more consistent with the City's Inclusionary Zoning Regulations. RECOMMENDATION: Staff recommends that the City Council 1) Receive Staff presentation; 2) Hear public testimony, 3) Deliberate and; 4} Direct Staffto: (a) Inform Braddock & Logan that the Council will not waive the requirements of the Inclusionary Zoning Regulations required by the proposal; or (b) By consensus, direct Staff to work with Braddock & Logan to refine the proposal including, in particular, the tinting of construction of the proposed affordable units. Page ? of 7 1L/VJ/4uua to:uc rns Y~O~aMV4.•..~..•.+Ow. ~ ~~ Braddock & Logan's Affordable Housing Proposal The following is Braddock and Logau's affordable housing proposal for meeting the Inclusionary Zoning requirements act forth m Chapter 8.68. Braddock sect Lagaa is proposing to bundle the following four proposals in order provide the highest number of units in the most logical place sad to meet bossing needs not curretrtly being provided for in the City. Specially the four proposed programs are as follows: (1) Z6_ nt+eQrated Units. This proposal would provide 26 units on t~ $aankhead property (at 30% for Very J.,ow; 20°/a Low, and 50% lulodexate). These unite would be integrated within the 4,000 square foot lots of Fallon Village and would be in identical in appearance, materials, and bedroom count and would be consistent with every portion off' the requirerneuts of Chapter 8.68. Timing Braddock anal Logan would be agreeable to a condition of project approval that requires the developer to begin constructing the Intergtaded units at no later than the I75a' building permit, with completion of these affordable units at a ratio of 1 affordable unit completion tti every 20 market rate amts being completed. This would result in the Intergrada3 affordable units being completed prior to the entire project being 2/3 complete. In addition, Braddock and Logan would be agreeable placing a security band, guaraanteeing the on-time completion of the aBordable units. (2): 2 on elfin Uni This proposal would provide 26 Secondary Dwelling Units aaprrad throughout the project on lots which are 6,000 square fit or lager (at 30% for Very Low; 20% Low, sand 509 Moderate). These units would be one-bedroom and would be attached to the primary unit. These units would appear integrated into the desigsz of the primary unit; however the second unit would be completely self contained. These units would be designed to accommodate housing needs that are ctnretltly not being met, such as college%areer age children living at home; multi-gcneratio~nal families; and or older parents living with children. Timtng The Secondary Afl'vrdable units would be completed concurrent with u>Aits for the lots that are 6,000 square feet or lager. In addition, Braddock and Logan would be agreeable placing a ascetuity bond, guaranteeing the on--time completion of the Secondary Units. {3): 87 ~ediwrHt_yh pet_rsity .4~ordable Units. This proposal would provide 87 affordable units (and one manager's unit) to be placed upon the Anderson property. Thcsc units would be looted on property designated medium density residential (nt 30% for Very Low; 20% Low, and 50010 Moderate). The Anderson Property is located to the east of Central parkway and Croak Road, immediately east of the proposed Village Center to be located on tb~e 7ordon Property. The property is ideally suited In that it is lY/VJ/Luua io.vc rAA "•"""""`~''~e~ 15~~ ~~ both located in closo proximity to existing ~ proposed transportation infiastructure, existing and proposed job comers and retail development as well as open space, parks, schools, and semi public uses. The affordable units proposed on the Amdersoa property would contain Z bedrooms and 2 bathrooms. Section 8.68.030(E) stairs the affordable units should reflect the range of bedrooms provided in the project. However, the wait configuration and bedroom count on the Andersoon property is consh~ained by the nature of the higher density product and as a result Braddock and Logan is requesting a waiver from this requirement of Chapter 8.68.' Timing . Braddock and Logan would be agreeable to a condition of project approval that requires the developer to begin constructing the Medium-H'igh Hof ~ Te~tatNe Map ~ rhea the no later than 5 years from the ease ~>~~ Bt~oek and Logan would be Braddock and l,,ogan/Bankhead propcrti agreeable placing a security bond, guaranteeing the on-time comp]etion of the Medium- High Density Affordable Units affordable units, (4) Co-r~muniN $enei4r Provision. In addition to the other aforemerrtioaed affordable units Braddock and Logan is proposing to provide a million dollars (SI,000,000) to the City. The City Council can deiocaruiae the best use of the funds. Tkte monies could be placed into fire affordable housing is lieu fee program, or could be utilized for capital improvements such as reeonstructioa of Shannon Center or other City Park or facility. Braddock and Lvgea is proposiutg to provide the City all of the aforeaientioncd proposals in mietting its affordable housing obligation. The combiuned approach would > ~ 8.68. total of 139 affordable units, which is 56 units more than required by P Additionally, these units would contain rent and resale t+GStrictions that ensured the unit's affordability as proposed, indefinitely (as opposed to the roc~rcd 55 year raquirtmeat set by Section 8.6$.030E). Br3ddack and Logan feels this combination of proposals will further the City's goal of providiwg housing and providing units to households that are not cuc~rentiy served by the marketplace. These af~'oraable units would integrated throughout the 480 acre project area and would designed, co,~ucted, and managed in a way to ensure healthy and vibrant neighborhoods far years to come. lU/UJ/LUU~ lD:VL CAS +iaowwwnw+..n~~ I~ ~--7 +~ [! . lU/US/zUUb 1tl:U3 r'AA ncauuw:nawao~+ .d.._... ___ i~ ~. ~~~ ;.~ .__.~ 1 i l ~~ ~H~+iodtiyp~f~pA°r'~ ~~a~~rad~ ~ ~~ ~,~ or MIS ~ ~~r~laioln~ ~ t~'t+an~s~~d~~+ii~~ ~sau~Ow~°eMr ' ~ ~, Ao~in¢ ~ ~ bor b rIPH rd ~ ~ ~ ~,p ~s~s 1Mk ~~ krlt td~ a ~+ ?in ~o~rp farrirs. ll~+N ~d ~d~~,s~es to ~1+~0'~ ~ Id tram w~ r.'r ~ ~ oA~n t~dlh/ b 1oa~ ~ ~ ~ p~lprs. In ~~ ~~ dMd as ii~t ptw~ i ~ ~ ~~. ~iMN~C ohm yee~t~ P+~ ~ N°°N ~ ~ br oor~~ ~~~~ 1~a~rgD~'~~~h ~ a~ d~W ~w~ ¢~~~ ~~ vrl~n halh fi~ P~ ~d i ~s~~ ~~~~ sedtl ~~ i ro1~~ b~++'~eu~ ~ N I .: ~~ ,• t _ i ~~ ~~~ 1V/VJ~LUUp aV:u4'rns Y-MNNVN~~-NN~~~ ~-~ -- ~ ~ ~~' a-~ ~.i -- KEY PRINCIPLES 4F INCWSfONARY HODS;Nt: In its most basic tem-s, indusionary housing requires or encourages ntai'ket{ate housiing $evelopmenia tD include a percentage (usually 1D to ZI) percent} of homBS affordable to lower- and moderate-Income households. Induslonary pafi- Ges take the form of either 8 vocal ordinance, a General Plan pokey, or a permit a}yprovala process that requires or rewards affordable housing projecti$. While NPH end HBANC hold differing views on the merits of indusionary housing, the fogawing are key principles upon which our organizations agree: Providing an adequate supply of housing t a societal responwribiGty. • Local communities whir indusanary housing programs have a responsitrility to contribute tangible and substantial resources so that the cost of providing atfor~dable housing is spread fairly across the community. • Wbrdable housing pclidea that maximize resources by providing more hous- ing opporbinltias or deeper levels o1 affordability at the same or less cost should be encouraged. . .. ~ J y. _ ,. • Trad~b'onal indusionary haualrig policies that require the development Of "lgce- for-eke` units dlstrlbuted uniformly throughout the market-rate development are orten not the mast eilective or efiasnt way of prWkiiiAg affordable housing. • To Increase effectiveness and efBtiency, inelusbnary housing programs should provide flexibility and allow a range of altemetive methods of providing aRordable unlCS. RStOMMENDAYtON9 FOR ~URISpICTIOtrl5 WI71{ 1NGLUSIOIKpRY HOUSING I?gOGRAMS Market-rate builders should be provided with a choice of Several options for produGns the affordable homes. The builder should r-ot be requlrod to demonstrate the financial infeasibility of traditional invlusionary requirement in order tv use one of these options and, so Ions as the relevant criteria far a particular optlo0 are met, the builder should not be required to obtain approval by the local jurisdiction an a case-by-case basis. I~IOtISING'tYPfe MID D6s~aN FLp[~s1t,ITY MarKet rate builders should be able to satisfy an inolusionary requirement by providing alternative for~ala housing types, such as duet, townhouses, of coneominiums, Builders should have the option of cwstering the units onalte or building offslte (see Otfslte tbnetru~xron, page 4). 3 1U/U3/LUUD J.D:u4 ins aiaowv~vva~warw~ """•• -~~ r°I 4~ •' Market-rate builders should be able to satiety an lncluslanary requirernerrt by p-aviding rental housing, provided that the proJod meets the induslonary porcentage and income targets applicable to rental projects. Again, the bullder should have tfie option of clustering the units an the project site or providing for the unlb otfsite (~ p~fsite ConStNdion, bebw?• t.AH!? L?£o1CATaON Market-rate builders should be able to satiety an tnduslonary requirement by donating land to the local government or a non-profit housing developer, subject to the tollowing: The bullder and c'rly should ensure that through an upzorring or density bonus the dedloat- ed alts will accot»modate more aBordable units or units at a deeper affordablllty lever than the indusionaty.requirsment would have provided; • Where rental housing is to be constnrcted on the dedicated sfie, the site should accommo- date at least 40 afforriable units; if the dedicated site is such that it requires "extra' cor>struetlon cogOS-such as the need to do podium development or steel consiructlon--in orderto accom- modate the required number of units, tl-e market-rate builder should bear tha extr=a cost, including any oftslte Improvements, env(ronrnental remedialion or prr- -`° of utilities. In most other situations, the land dad Al Geroea Ronrb:~ 4 eA ~' mwkwyorR lyise~ p+ovid~! 6mC u Edai Picador hrto•d e f ~ecdy dx1eW^! A+~ fxl's-•'°°~f' Aomc'~ ' nrokiK k porrJbk ro 4~• 7•i aprtbnrAe Of ftlfdabk ro ~~ ~m~ ~ i~~ 80 yccenl ofeno mcdtvi pKano tTla00o. ssaoooa •f/c"k~t Irne~ rnxler (~ 5427 !n X61 pM ~fontM (i6R-i01q. itself will satisfy the induslonary requirerent•, The dedicated site is located within the acme ju lion as the project w wrthln a defined subreglan The dedicated site should have all land-use ent merrb secured Prior to completion of the marke~ units. Ilthe k=cal jurisdiction unreasonabry refuses to approve the necessary erstitle- ments, the builder should be able to pay in-ITeu fae6. O~srTn CoksT~euenory Market-rate builders should be r;bie to choose to satisfy an indusionary t+equlrement by pro- viding for the antra to be wrrstrticted outside the project bCation, sut~jed to the foNowirq: LV/VY/iVVJ {V. V'• l'AA u•uu~vvr+uv~v,w v ~~ ~-- V - V- ~~'. +~ ` mow" ...~ 'uJ Ef • The offs~le looatian is either comparabb to the project site or wilt result in either greater levels of albrdabllNy or a greater number of affordable units than the irwtu- 9ionary requirement would have provided; The affordable units should be developed concurrently with the marital-rate homes POaLtNG ~p t:uanrr Tnarrsr~sas • 71nro or more market"rate builders should be able to pool resources to satisfy their Inclusfonary requirement through a single affordable housing project] • Market-rate builders that build 'extra" affordable housing units (l.e,, more than required by the indusionary ordinance) should be able to use the addlUonal un~s as credits for meeting tutors indusianary requirementh in the jurisdiction or a defined subregion; • Market-rate builders that buidd 'extra' affordable housing units should be able to seU the additional units as credits to other builders in the same jurisdotion or a defined eutxegion; • The extra' unis shook! tx built before they can be treaded as credits; • Non-profit bugdera shook! also be able to sell credits to marlset~aLe bulldero for projects andJor units that are not being funded try the local government. The affordable homes should be antkled before or oonCUffently with the market-rate development acquiring the credits; • Non-profit builders should be able to acquire and improve existing m8fk6t-rata develop- ments and resbtct fUbrra rents to very-low income households and sell the units as credits to other builders in the same jurisdiction or a defined subregion This optior- should only be itlowed if a) households served aro at or below 50 percent of median income; b) the property undergoes extensive renovations; c) number of units acquired and renovat ed is al lead doubts that of the standard indusianary req~sremarrt; d) affordability is guaranteed for a psrkx! of at least 55 year; and e) tenant relocation is appropriately addressed, s ~~,CerZ:~a~-raw a wyN,; v10v LannANarv~ona »a: nex~posbk Jwca,re tlN city e/CoASod CA ! olla.ed ti6e ha+u6Wfder to par4r- vfh rbe ~r"l1O1F M1pGE FlwsJnt m dwel•p Iatie Isde~inaary Acmes of~iia her nmur the w IMmes. iWDC~ kwnlee neared t, 2, 3 and f 6eaFwm n~wtm•n~ fr' l~~ i~aue . ~ 6efds eamlrK d a Mdow Sa ie~d 60 earns o/fAe aroe melon hooeaR •, ~~,~w ~: ofd m. ~.. >ht ~ e ja?~efal preyidad aoerpeofr bue6enk :+« 9ednpmw, Gorporotba waUr (eeor need- ~eaei~M Mr lo-alw fees jntk tram veriwu morJmt..me devebprta h taadxd b deeps of(ardeiiilfty ~ nq~+ee.~18f the o~dveanm Old f1m Iro plorides tl7 ol~ardahk home+ can jrora sWdeer m ~-GrdMUm dupioa t houses (o-a mar oJreaariakk ee- 30, ~R S0, 40. and 10 pars rnr o f orre rnedlon tnearre; on6rdabh to sarVde! pereom wish aecoroe: m bw oa ii~GaM allthe way up w fomiu c f .a »eh ieWraea o j' doer tS4,DDC. h MeeepevaeK a hds o(t>Memertbl epos end dr- th+ids of der spear i drepc+/ to 4 eubeidsred e{dad care {ocaa~iav Jnt firnlJies from Ofd Elm and the surYwnd'rrt ae;'b6avlwed tN-uEZJ FeEs Market-rate builders of protects with 50 units or fewer should be able to choose to saisty atln inclusionary rerauir~errient by paying a fee in lieu of directly developing the ue'its. Thi8 option should ba available to the daweioper without having to demonstrate that othef options are infeasible.' tZECOMM6NDED t-oCAL COMMIrNiTY CONTRIBUTIONS Local govemmefrt9 tulfili B onictal tale in the cxeatlon of aaffordable housing. Below are some key actions that local governmentB should take to demonstrate o broader commttment to addressing the affordable nouBing shortage. 7. Funding - Make r~nslstenR efforts to pass IOCaI afrOrclable housing assistance bonds or other meas- ures to meet the existing oommunity's fair share of the burden of providing affordable houa~ing, - Either v,rah+e developmsrJt Impact fees and processing fees for incluslonary unAB tx pay for them through discretionary local furxie Such as redevelopment turxts or the general fund, • HMML and PMFf do sot Mae • eronemore poedthen ea b kw fees fee Welemr Wtla m6r! dada 34 rnrJS. s ~"` Where a redevelopment agency exists, Increase to ai least SO percent the tax Increment devoted to afbrdable housing programs. (Current law requkae a 20 percent Ivw- to moder- atr~-inwme sat-aside ror housing.), Z. Zoning • Provide at least one density bonus for each unit of affordable housing required. • Exempt Inclusionary units horn twdldinp permit caps and growth allocation processes. - Proactjvely'pre-entitle" (general plan and zoning) the sites identi5ed in the housing ele- ment as affordable housing srces. • Make appropriate surplus publicly owned land avallabie for affordable housing. 3. Program Adminlatratlon • laocal governments should provtde a~Cedlcated staff and budget to admint6terthe program or contrail with a competent entity to do so. • This responslbilKy indudes up-front assistance to homebuilders and prospec~lve buyers/renters in the sales/rer>faI process as well as long-tens monitoring of the incluslon- ary homes: In the case at for-saws incluslonary units, In whbh the devabper makes a good faith effort to sap the unit but it remains unsold after 90 days, the bocal povemment should either a} purchase the unR atlt-o rt~Gricted puce and take over marketjng; or b) give permiBelon to sell the unit at market rate and capture the difference. For option A, the local gwemment must close on the unit within 120 days from oompietion. For option t3, the program should be structured so that there will De an incentive to obtain true market value for the unit • The cost of program administration should not come from fees or other exactions imposed oh txrilders. C~•7`. C~~~~3L~1~] Throughout Califorrriii, public ofldals and private atizens arc struggling to find ways to address the affordable housing rxisis. Together, NPH and Hf3ANC want to ensure that the dialogue about solutions b belrg informed by a set of principles effective and elCrdent at shaping public polices that wiA work for builders, cities and residents. Califomie has long kd the nation in innovative approaches to addressing the affordable hauaing erfsls, and, by working together, NPH and HBANC believe that we can find common ground to harp solve tf,e problem in the near future. lU/U.f/LVUa 10'ua rns ~ ..............,.......,w. ~.e") ~, .... ~~~ ~r I 1 I t P2oF~-7'~G rw.~`0 -"'Jl~~ .u 1, . ~~ L~ Fallon Village Stage I PI7 Amendment Stte Plan LEGEND ""'Y"•~ inlvia KFY y~J~r ACRF.AGL DU/SQ17' AGCO G~atrdl:aammcieYCammeroiollNfix 1:14.0 I,G34,371SF (x: GrnaalCuornemiol 72.1 7SS,1695F VC: Villrp: Camweltial 6.4 96 DU/83,633:tF L i.owDcmclyRaldeaial 417.4 1,7391)11 M h4edium Duwry Reridetial 60.1 601 pU MH 1d~tEumILR111xmilyl4rikaW 2%.3 6721111 ~ Pubes ' ~ is (s<cTJolc bt*rw) 26. o ~ ~)~~ 7G Hv Naishlwrbaau pstY 23.6 t:N Cummtmiry Ilk IR.3 RR/A Real Residgltial / Agicultwe 139.4 Gg q~,~ 203.8 TV'fAL 1]32.0 3,IOSDU 2,A13,I73 SF Nt71N:1'.~4d'.l~i-Ails Iwb wv~) oiw au d +MeYM or wd~ pn~y, AWik daolw Iwptwl.a,ya 4 a~dl poa.lT ww/~ Fe16rF ....p,.,wr Yrlbr Vfitly.C.wr Ae,is Nw Nw. WG,rr, AaymTk.aptiorf dMil una.ni~~fi tea. 14NDE ILSp~~ Pre.vF~~Y C7 Z ,. :. ~Iy i~ ..... ~Y~~s M1wY1 4 {Yy - _ ~ a~~~~ ~,. ~ ~ tNCLU5IQNARY ZpNING R~tiUl.~11'~O~dS~-- :~:.;:., ~ Chapter 8.68 CHAPTER 8.68 INGLUSIONAIItY ZONI1vG REC3ULA'x')CQ1VS 8.68.010. Put~pbse. The purpose of this chapter is to: 't A. enhance the public welfare and ~asstue that further housing development contn'b>~es m the atttunment of the City's housing goals by increasing the production of resid®tial units affordable by households of very low, low, and moderate isioome. B. assure that~the limitedremaining developable land in the City's planning area is utilized in a manner consistent with the City's housing polieaes and needs. 8.b8.020. Dei~itians. As used in this chapter, each of the following terms shall.be defined.as. foUvws: A "Affordable Unit''• means ea.vwnership or rental mousing unit, :incluiding senip~.hvusing,~af~£ordable to households wifh very-low, low, or moderate incott~es ~as defined in this chaptex, 1. Rental units are deemed affordable units if.the.aanual ra_ it fives not exceed 30Y o£lna7utnw7o inaomg:lovel:foruary-Iow-, low-, and moderate-income household, adjusted for household size anct as, defined below. z. (htmer~occupied worts are deemed affordabl4. units if the sales puce results in annual Housing expenses that do not exceed 35"/0 of income level for very-low-, low=, and moderat~iiiicome households, adjusted for household size and es defined bdow. For a very law-ineome owner- occupied units, the unit shall be deemed an affordable unit if the sales price results in annual housing expenses that do not exceed 35% of the maximum in the very low-income level, adjusted for household size and as defined below. B. "Applicant" means any person, firm, partnership, association, joist venture, corporation, or any entity or combination of entities that seeks city teat property developtrxent permits or approvals. C. "Dwelling unit" means a dwelling designed and intended for occ2tpancy by one household D. "Very-low-, low-, and moderate-income levels" meads those income sad eligibility levels determuned periodically by the California pepartmeni of Housing and Community Development based on Alameda county marina income levels adjusted for family size. Such levels shall be calculated on the basis of gross annual household income considering bousehold~size and number of dependents, income of all wage earners, elderly or disabled family mennbcrs; and all other sources of household income acid will be recertified as set forth by local standards, and state ssid. federal housing law. 1. "Very~low income" means 50% or less of'the median income, adjusted for actual household size, 2. ~ "I,ow income" mesas more than 50% to 80% of the median income, adjusted for actual household size. 3. "Moderate income" means more thaw 80% to 120%~of the median income, adjusted far actual household size. C1[y of puBlln ZanlnQ O~o0nance 66-1 •$eipt~bor, ~'~~?, ._ Oe:.leoi~i bfsnch 2005 tNCLUSIONARY ZONING REC3ULATIDbS ~.~ Chapter 6.68 E. "Resale controls andlor rent restrictions" means legal restrictions by which the affordable units shall be restricted to ensure that the unit remains affordable to very-low-, Iow-, or modexate~income households, as applicable, for a period of not less than 55 years. With respect to rental units, such rant restrictions shaII be in the form of a regulatory agreement recorded against the applicable property. Withrespect to owner-occupied units, such resale controls shall be in the form of resale restrictions, deeds of trust, andfor other similar documents recorded against the applicable property. F. "Residential development" includes, without limitation, detached single-family dwellings, multiple- dwelling stiuctwres, groups of dwellings, condominium or townhauge developments, condominium conversions, cooperative developments, mixed use developments that include housing units, and residential laud subdivisions intended to be sold tv the general public. 8.68.030.. General Requirements A. 12.5% Affprdab6ity Regairement. All new residential development projects of 20 units or more designed and intended for permanent occupancy shall construct 12.5% of the total number of dwelling units within the development as affordable units, except as otherwise provided by this chapter. Tlie foregoing require~oaent shall be applied no more than once to an approved development (and generally at the tentative map stage), regardless of the changes in the c$aracter or ownership of the development, provided the total number of units does not change. In applying and calculating the affordability requirement, azy decimal fraction less than or equal to 0.50 maybe disregarded, and any decimal fraction greater than 0.50 snail be construed as one unit, B. Allocation of Units to Income )<.evels. Affordable units provided pt~*~~Ant to this section shall be allocated to households with very-low, low-, and moderate-income levels as follows: Very-low-income households 30% Low-income households 20% Moderate•income households 50% Where the calculation of the allocation results in fewer units that would otherwise be required pursuant to subdivision A above, one additional unit should be allocated to the income level with a decimal fraction closest to O.SO. G. Con ' 'ens of Approval: Any tentative map, conditional use permit, oz site development revica- approving residential development pro}acts subject to this chapter shell contain conditions sufficient to ensure compliance with the provisions of this chapter. Such conditions shall detail the number of affordable units required, specify the schedule of construction of affordable units, set forth the applicant's manner of compliance with this chapter, and require the execution of an agreement imposing appropriate resale controls andlor rental restrictions an the affordable units. D. Concurrent Construction. A11 affordable units in a project or phase of a project shall be constructed coneurrendy with market-rate units, unless the City Manager determines in writing that extenuating circumstances exist that make concurrent construction infeasible or impz'actical. E. Design and Distribution of Affordable Units. All affordable units shall reflect the range of numbers of bedrooms provided im the project as a whale and shall not be distinguished by extezior City of Dublin Zonfng Ordinance 68.2 September, 1997 Revised Mer+ch 2005 INCI.USIONARY ZONING REGUI.AT~.,,v~ Chapter 8.88 design, construction, or materials. Affordable units maybe of smaller size than the units in the project and may have fewer amenities thaw the market rate units in the project. All affordable units shall be reasonably dispersed throughout the project. 8.68.040. Ezceptions to 12.5% Affordability Requirement. Developers of projects subject to $.68.030A shaII construct 12.5% of the total number of dwelling units within the development as affordable units, unless subject to an exception set forth in this section. Ail exceptions require City Council approval, which shall be obtained at or prior to the last discretionary approval for the project. p. Payment of Fees lih Lieu of Creation of Affordable Units. upon request of the applicant, the City Council shall permit the applicant to pay a fee in lieu of constructing up to 40% of the affordable units that the developer would otherwise be required to construct pursuant to Section 8.68.030A. 7'he amount of the fee shall be as set forth in a resolution of the City Council, which maybe amended from time to time to reflect inflation and changed conditions in the City and the region. Tn lieu fees shall be paid at the time and in the amount set forth in the in lieu fee resolution in effect at the time of issuance of the building permit. B. Off-Site Projects. An applicant may construct the affordable units not physically within the development in lieu of constructing some or all of the affordable units within the development, with the approval of the City Council, if the City Council finds: 1. that construction of the units off site in lieu of constructing units on-site is consistent with the chapter's goal of creating, preserving, maintaining, and protecting housing for very low-, low- andmoderate-income households. 2. that the units to be constructed off site are consistent with Section 8.68.030E above. 3. that it would be infeasible or impractical to construct affordable units on-site. 4. that conditions of approval for the project require that the off-site affordable units would be governed by the terms of a deed restriction and, if applicable, rental restrictions similar to that used for the on-site affordable units. 5. that the conditions of approval for the project, or other security such as a cash deposit, bond, or letter of credit, are adequate to require the construction of the off-site affordable units concuirent}y with the completion of the construction of the residential development or within a reasonable period (not to exceed 5 years). C, Land Dedicat[on. An applicant may dedicate land to the City or city-designated local non-profit housing developer in lieu of construction of some. or all of the required affordable units, if the Council finds that: 1. that dedication of land in lieu of constructing units is consistent with the chapter's goal of creating, preserving, maintaining, and protecting housing far very-low, low- and moderate- income households. 2. that the dedicated land is useable for its intended purpose, is free of toxic substances and contaminated soils, and is fully improved, with infrastructure, adjacent utilities, grading, and all development-impact fees paid excluding any inclusionary zoning ordinance fees. City of Dublin Zo»ing Ordinance 66.3 Soptambar. 1997 Revfs~d March 2003 ,~ 1 INCLUStONARY ZONING REGULATIONS .. Chaprtsr 6.66 3. that the proposed•laxid dedication is of sufficient sire to meet the following requirements: a. the dedication includes land sufficient to construct the number of units that the appIieattt would otherwise be required to construct by Section 8.68A30.A, based on the size of lots in the subdivision for which fire applicant is meeting its obligation; and b. in addition, the dedication includes Such additional land the market value for which is squat to or exceeds the difference between the yarns of a market=raft, 1200-square foot unit and the price at which such a unit could be sold as an Affordable Unit (which amount shall be set forth~in a resolution adopted from~time to time by the ~C;ity Council) tunes the nti~ber of units required. D. Credit transfers. An. applicant may fully'.or paY'tialiy satisfy the requirements of Section 8.66.030A through the use of trai:9fer credits cr~'ted pursuanf tb ~Sention 8.6.8:050. Credit certifcates shall be presented to the Com~uriity pevelop~nerit ~iractor, who shad note at~the time of project approval the credit certificate by number. Credit certificates may only be used to satisfy the requirements for ~nclusionary Units for tine income category {i.e., very. low, Iow, or moderate) and nwnber of bedrooms for which they are issued. • E. Waiver of Requirements. The Ciry Council, at its discretion, may waive, wholly or partially, the requirements of this ordinance and approve alternate methods of compliance with this Chapter if the applicant demonstrates, and the City Council finds, that such alternate methods meet the purposes of this Chapter. 8.68.050. General Procedures for Ymplementing Incluaionsry Zoning Requirements A. Agreements. Prior to the issuance of a building permit for an, aff. orciable unit, resale restrictions or rental controls, or both, as the case maybe, shall be set forth in an agreement between the City and the developer, in a foIm consistent with the City Council-adopted form agreement, which agreement shall be recorded against the grogeriy containing the. affordable units. The agreement shall be executed by the City Manager, and its requirements shall run with the Laud and bind the applicant's successors. B. Rental Units; Q.ccnpancy; Anneal Report. Agreements involving rental units 9hall~requirc the owner of the affordable.utlits to ensure that the units are orcupted by tenants whose monthly income levels d.o not exceed very low-, low-,or moderate. income levels, as the case may be, and shall preclude tenants from subletting or subleasing the unit. The agreement shall also require the owner of the affordable unit to submit an annual report to the City Maaage~r, in a. format approved by the City. The report shall include, but not be limited to the following information: as identification of the affordable units within the project; the monthly rents. charged and proposed to be charged; vaeaucy information for floe prior year; and the monthly income for tenants of each affordable unit throughout the prior year. C. pwnerslup Units; Occupancy; City's Right of First Refusal. Agreements for-ownership units shall specify that the inclusionary units must be occupied by the owner or owners and may not be leased or rented without the written approval of the City. The resale restrictions shall provide that in the event of:the.sale of an affordable unit, the City shall have the right to purchase any affordable owneroccupantunit at the meximutu. price that could be.Charged to su eligible household. City Hof Dutflln •2onlny Ordinance 68-4 • • • September; a 997 Revised March 2005 INCLUSIpNARY ZONtNC3 ItEGULATIpNS Chapter 8.68 D, Selection Criteria. No household shall'be pernutted to occupy a unit that is required under this chapter to be affordable unless the City or its designee has approved the household's eligibility. Eligible potential occupants of affordable units will be qualified on the basis of household income, the median combined household income statistics far Alameda County published periodically by the California T.?epartment of Housing and Community Development, all sources of household income and assets, the relationship between household size and the size of available units, and any further criteria required by Iaw. The developer shall use an equitable selection method established in conformance with the terms of this chapter. The selection criteria may not distinguish between adults and children. Selection of qualified person should be based on priorities established usixig the point system described below: • Employed within the boundaries of the City of Dublin (3 paints, one per household} • Public Service employee working in the City of Dublin (1 additional point} • Dublin resident (3 points, one per household) • Seniors (1 point, one per household) • Permanently disabled (1 point, one per household) • immediate family member of Dublin resident (l point, one per household) • Required to relocate from current Dublin residence due to demolition of dwelling or Conversion of dwelling from rental to for-sale unit (] point, one per household) To qualify as a "Public Service Employee", the person shall be employed by a Public Agency. To qualify as "Employed within the boundaries of the City of Dublin", the person shall have been employed within the City of Dublin for at least six months. To qualify as a "Dublin resident," the person shall have been a xesident of the City of Dublin for at least aone-year period prior to the eligibility determination. 8.68.Ob0. Affordable Unit Credits. A. Creation. Affordable unit credits maybe created by the City Council. One affordable unit credit certificate shall be issued for each affordable unit constructed in excess of the number of affordable units required to be constructed for the project by Section 8.68.030A. The certificate shall designate a Specific income category (i.e., very-low, low, or moderate income) and number of bedrooms for which they are issued. B. Ownership and use of credits. Affordable unit credit certificates are issued to and become the .possession of the project owner, who may then use tbem to satisfy the requirements of this chapter for another project in the City. If a project owner proposes to sell credit certificates, the parties shall f rst obtain the consent of the Community Development Director, who will document the transfer by certificate number. City of Dublin Zort/rtq nndtnance 68-5 SeptanbQr, t 997 RevJsed March 20D5 v INCLUSIONARY ZONING REGUI..ATIOt~i5 Chapter 8.66 8.68.070. Incentives to Encoarage On-Site Canstructian of Affordable Units. 'The Ciry may, but shall not be required to, offer incentives or fxnanciel assistance to encourage the on~site construction of affordable units in excess of 12.5% of the total number of units in the project to the extent resources for this purpose are available and approved for such use by the City Council or City . Manager. Such incentives may include, but shall not be limited to, the following: A. Fee Deferral. 1. Development processing Feces. The City Manager may approve deferred payment of Ciry processing fees applicable to the review and processing of the project. The terms and payment schedule of the defected fees shall be subject to the approval of the City Manager. 2. Development Lnpact Fees. The City Council may authorize the deferred payment of development impact fees applicable to the affordable units. Approval of this incentive requires demonstration by the Applicant that the deferral increases the project's feasibility. The applicant must provide appropriate security to ensure future payment of such fees. B. Design Modifications. The City Council may approve design modifications to affordable units that increase the feasibility of the construction of affordable units, including but not limited to, the following: 1. Reduced lot size. 2. Reduced setback requirements. 3. Reduced open space requirements. 4. Reduced landscaping requirements. 5. Reduced interior or exterior amenities. 6. Reduction in parking requirements. 7. Height restriction waivers. 8.68.OS0. inciusionary Ironing Ira Lieu Fee Fund. In Lieu Fees shall be deposited into a fund Imown as the "Inclusionary Zoning In Lieu 1~ees Fund" ("Fund'. A. Uae. All monies in.the Fund, together with any interest earnings on such monies less reasonable administrative charges, shall be used or committed to use by the City for the purpose of providing very-low, low-, and moderate-income ownership or rental housing in the City of Dublin. B. Annual report. The City Manager shall prepare an annual report to the City Council identifying the balance of monies in the Fund and the affordable units provided and any monies committed to providing very-Iow-, low-, and moderate-inca:ane housing. The annual report shall also include a review of administrative charges. 8.68.090. Violations. It shall be unlawful for any person, firm, corporation, parrtmership or other entity that is subject to this ordinance pursuant to section 8.G8.030A to violate any provision or to fail to City of DubJJn Zoning Draflnsnce 6$-6 SeptembQ~,1997 Revised March 2005 ~~ ~ ~ ~~ INCIUSIbNARY ~bNING REGUL~-TION~ Chapter 8.68 comply with any of the requirements of this chapter. A violation of any of the provisions ar failing to comply with any of the requirements of this Chapter shall constitute a misdemeanor, except that notwithstanding any other provisions of this Code, any such violation constituting a misdemeanor under this chapter, may in the discretion of the enforcing authority, be charged and prosecuted as an infraction. Any person convicted of an infraction under the provisions of this Gode shall be punishable as provided by the Government Cade of the State of California. 8.68.100. Enforcement. A. General, The City Manager shall enforce this chapter, and its provisions shall be binding on all agents, successors, and assigns of an applicant. The City Manager may suspend or revoke any building permit or approval upon finding a violation of any provision of this chapter. No land-use approval, building permit, or certificate of occupancy shall be issued for any residential development unless exempt from or in compliance with this chapter. The City may institute any appropriate legal actions or proceedings. necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, or suspend any permit or development approval. B. Excessive rents/legal aehoa If the City Manager determines that rents in excess of those allowed by operation of this chapter have been charged to a tenant residing in an affordable unit, the City may take appropriate legal action to xecover, and the project owner shall be obligated to pay to the tenant, or to Lhe Gity in the event the tenant cannot be located, any excess rents charged. 8.68.110. Appeals. Decisions of the City Manager under this Chapter may be appealed as provided in Chapter 8.136. City of Dublin Zon-ng Qniinance 88-7 Septeritbsr. i 99T Reviae[I March Z0~05 ~~ NBW BUSIN>;.SS Braddock and Logan Affordable Housing Proposal to Comply with Inclusiionary ZoningRegulations for the Braddock and Logan Develovment at Fallon Village 70:34 p.m. 8.Y (430-80/450-ZO) Housing Specialist Julia Abdala presented the Staff Report and advised that the 11 property owners of the Fallon Village area have submitted a request for a Stage 1 Development Plan. At the same time, Braddock and Logan has submitted a request for a Stage Z Development Plan and a Vesting Tentative Map for the Braddock and Logan property, consisting of the northernmost 486 acres of Fallon Village. The Stage Z submittal is for the creation of 1,043 single-family units. Approval of a Stage Z Development Plan and Vesting Tentative Map will trigger the requirements of the City's Inclusionary Zoning Regulations. Staff is asking the Council to provide direction as to whether the City should: 1) Inform Braddock & Logan that the Council will not waive the requirements of the Inclusionary Zoning Regulations required by the proposal; or 2) By consensus, direct Staff to work with Braddock & Logan to refine the proposal including, in particular, the timing of construction of the proposed affordable units. Ms. Abdala noted that the Staff Report stated that Braddock & Logan did not own the Anderson property; however, she would like to clarify that they had an option on the property. Mayor Lockhart confirmed that the 26 integrated units would be single-family, and asked how many bedrooms and baths each unit would have. Ms. Abdala advised that they would be 3~4 bedrooms because the ordinance required that affordable units be built similarly to the market rate. Vm. Zika asked how the Developer intended to insure that the 26 secondary units, or granny flats, were ren#ed au# to low income people, and could not envision that someone paying $600,000-$800,000 for a home and then rent out a granny unit to aloes-income participant. Jeff Lawrence, Braddock & Logan, advised they did not envision that that would actually be the case. The size of the unit would dictate what could be charged for rent. In addition, the secondary granny flat unit was envisioned to be a product that did not exist DtJBLIN CITY (:OUNCIL MINUTES voLUME 24 REGULAR MEETING Qctaber 18, 240.5 PA(; E 39S www.ci.dttblin.ca.as ~~~; today in Dublin. It was envisioned to be something to provide an opportunity to the young people, a family member that wanted to stay in the City, to be home but have their own space as they got on their financial feet. Or, it would be available to a senior family member. The unit itself could not command a huge rent and, therefore, provided itself to a low and very~low opportunity for those people. Mayor Lockhart stated that whether it was t~eplacir~g somebody else's need for low income housing or a family member's needs for low income housing, it was still taking a senior out of the mix of needing senior housing or one young person out of the mix of going in with two or three other people to rent. Mr. Lawrence advised that the project was developed to provide tk~ree different product types to allow affordability. There were items brought up in the presentation that talked about landscaping and energy expenses, etc. Braddock & Logan has decided that it would be a good idea to complete the landscaping in the rear yards and provide some energy- saving appliances to cut costs, specifically to those units. Instead of feeing their way out of it, they would provide an opportunity to build out 12.5% of the total units in a different, diverse product type that met different social needs. Vm. Zika disagreed, stating that it was an interesting plan but very far away from what Dublin's Housing Ordinance for workforce housing was designed and intended to do. Cm. Hildenbrand asked is Vm. Zika was referring to granny flats only. Vm. Zika stated yes, and advised that he was willing to work with the other ideas, but the granny units did not work for him. He would rather have the money so the City could build some adequate housing. Mayor Lockhart stated that she was always hearing complaints from constituents whose adult children could not afford to live in Dublin. This plan added a different element. It would allow parents to help their children get on their financial feet, as well as allow handicap and seniors citizens some independent living. Different alternatives for living in our community need to be offered. Lm. Hildenbrand concurred and stated that a variety of options, other than multi-unit, needed to be provided. The granny unit proposal almost addressed the controversial condominium conversion issue as an alternative option. She asked if the 88 unit apartment complex would be a mix of market rate and affordable. DUBLIN CI'T'Y COUNCIL MINUTES VOLUME Z4 REGULAR MEETING October I ti, X005 I'AGF 399 www.ci.dublin.ca.tts ~ a~ o Mr. Lawrence advised that all of the units were proposed to be affordable. Braddock & Logan would own and operate the complex without state or local assistance. Cm. Hildenbrand objected to that plan, stating that it went against the Council's plan not to have an area where all of the affordable apartments could be identified. [Vir. Lawrence advised that there was additional area on that property in order to accommodate more units, but it was not included as part of this proposal because it was on the Anderson property and part of the Stage 2 plan. In preliminary design, they had the opportunity to build closer to 120-125 units at market rate. It was not part of the affordable proposal for tonight. Cm. Hildenbrand reiterated her concern about the apartment complex being grouped together and having residents stigmatized in that manner. She hoped that the second phase would have market rate around it to make it mixed in. Mr. Lawrence stated that there was additional area to accommodate additional units as market rate. The 88 units would be integrated within the 120-125 units. Cm. McCormick stated that the granny flats would meet a need. Vm. Zika reiterated his concern that the granny unit idea did not meet the needs of the Inclusiona.ry Housing Ordinance. Cm. Oravetz no#ed that the Affordable Housing Ordinance purposely included the flexibility for a Developer to present different alternatives to meet the 12.5 requirement. This was a good plan that provided opportunities for many needs. City Manager Ambrose advised that the practical problem at hand was timing. As Staff went through the Toll projects, market rate units were not allowed to be released until the affordable units were secured because they were not affordable until they were built and the City had the security it needed. if the majority of the Council were in support of the proposal, Staff would still need to work on the "belt and suspenders" with the Applicant to work something that satisfied the City's concerns and worked for the property owner. Mayor Lockhart suggested that Staff work with the Applicant to include the landscaping and enet~y-saving options on the Z6 integrated units, which might set a precedent for other affordable projects. There would be opportunities for Staff to work with the Dl1BLIN CITY COUNCYL MINUTES VOLUME 24 REGULAR MEETING October 113, 2005 PAGE 400 www.ci.dublin.ca.us ~- a~n Applicant regarding timing issues, knowing that it was important to the Council to get those affordable units built as soon as possible. It was also important to enlarge the apartment product into a larger complex that dealt with people of all income levels. Cm. McCormick suggested that Green Building principles be used. On motion of Mayor Lockhart, seconded Cm. McCormick and by rnajorify vote (Vm. Zika opposed), the Council directed Staff to work with Braddock & Logan to: 1) refine their proposal to include landscaping the rear yards and using energy-efficient measures in the homes to bring down the cost of living; 2) work on timing issues and obtain necessary security; 3) study the feasibility of integrating the 88 ~ affordable apartment units into a larger project; and 4) incorporate green building principles, as practical. After Action Report on July 4, 2005 Public Safety Activities 71:07 p.m. 8.2 (650-60) Assistant City Manager Joni Pattillo presented the Staff Report and advised that the City Council would receive an informational report on the Public Safety Activities associated with the past July 4, 2005 holiday. There was a reduction in calls of service in 2005 compared to 2004. The Council commended Fire and Police Services for their attention to the safety of Dublin citizens during the holiday season. Consiideration of a Commemorative Inscription in Recognition of Cal. James Doty, Camp Parks Commander l 1:12 p.m. 8.3 (610-50) City Manager Richard Ambrose presented the Staff Report and advised that Mayor Lockhart requested that the City Council consider commissioning a commemorative inscription in recognition of outgoing Cramp Parks Commander, Col. James Doty. The inscription, which would cost $100, would be engraved on a concrete bench leading up to the Public Safety Memorial located in the courtyard of the Civic Center. DUBLIN CITY COUNCIL A'IiNUTES VOLUME 24 REGULAR MEETING October 18, 2005 PAGE 401 www.Ci.dutyiin.ct~.us ~~, ~~~~ ~ AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS Dublin RE Investors, a California limited liability company. First Phase (247 Residential Lots) of the Fallon Village Project THIS AGREEMENT is hereby entered into. this~day of,~y~ 2007 by and between the City of Dublin ("the City") and Dublin RE Investors, L.L.C., a California limited liability company ("the Developer"). Recitals 1. Chapter 8.b8 of the Dublin Municipal Code contains Inclusionary Zoning Regulations ("the Regulations"). The Regulations were adopted pursuant to Strategy I.B. of the City's General Plan Housing Element, the purpose of which is to create affordable housing opportunities in the City of Dublin for very low-, low- and moderate-income households. 2. The City of Dublin adopted the Regulations recognizing that the cost of new housing is so high that persons with very low-, low- and moderate-incomes are increasingly unable to locate affordable housing in the City. The purpose of the Regulations is to achieve a balanced community with housing available at all income levels. 3. Accordingly, the Regulations require that residential projects with 20 or more units/lots contain at least 12.5% very low-, low- and moderate-income units/lots. The Regulations require that the units be constructed in the following proportions: 30% very low- income, 20%low-income, and 50% moderate income. In lieu of constructing 40% of the Inclusionary Units that the Regulations would otherwise require, the Regulations authorize developers to pay a fee, currently set by the City through June 30, 2007 at $86,640 per unit required but not built. If fees are paid in lieu of construction, developers are still required to construct 60% of the obligation. 4. Developer is the owner of 488.2 acres of real property in the City of Dublin generally located east of Fallon Road and more specifically described in Exhibit 1 (the "Property"). 5. Developer desires to construct a residential project on the parcel that consists of 1,443 for-sale units (collectively "the Project"), and the Project is subject to the Regulations. 6. On November 8, 2005, the Planning Commission ("PC") approved a vesting tentative subdivision map (PC Reso. No. OS-61) ("the VTM Resolution") to create 1,043 residential lots, and Developer has submitted an application for Site Development Review ("SDR") approval for an initial phase, which includes 2471ots, and the City is processing the SDR ("the Approvals"). Developer also intends to shortly file the first of "multiple final maps" based on the tentative subdivision map, which mould create 247 residential lots. ;v Fallon Village (Initial Phase) Affordable Housing Agreement_052107 (2) Affoi First Phase of Positano Project 1 May 24, 2007 .~ 7. Condition No. 2 of the VTM Resolution provides as follows: Inclnsionary Zoning: Frior to approval of Site Development Review or recordation of the first phased Final Map, whichever occurs first, the owner or owners of all the property subject to this vesting tentative map shall enter into an Affordable Housing Agreement with the City for the entire Vesting Tentative Map azea, winch agreement shall be recorded against such area and against any other property where Developer proposes to construct off-site affordable units if approved by the City Council pursuant to Dublin Municipal Code section 8.68.040.B. Such agreement shall include but is not limited to providing detail regarding the number of affordable units required, specify the schedule of construction of affordable units, set forth the developer's manner of compliance with City of Dublin Inclusionary Zoning Regulations and impose appropriate resale controls and/or rental restrictions on the affordable units. If the agreement provides for construction of the units off-site, as provided in DMC section 8.68.040.B, it shall require- City Council approval and Council findings as required by said section and shall include provision for security adequate to assure completion of the off-site affordable units concurrently with the completion of the construction of the market rate units to be constructed on the lots created by the vesting tentative map. 8. Under the Regulations, the City Council may wholly or partially waive the requirements of the Regulations and approve alternate methods of compliance with this Chapter if the applicant demonstrates and the City Council finds that such alternate methods meet the purposes of the Regulations. 9. Based on 1,043 units, the Developer's inclusionary zoning obligation under the Regulations would be 130 units (1,043 times 0.125 equals 130.375), anal it would be permitted to pay fees in lieu of construction to satisfy the obligation as to 52 units (130 times 0.4 equals 52), leaving amust-build obligation of 78 units. 10. In the fall of 2005, as means of satisfying its inelusionary housing obligations for the entire 1,043 unit project, Developer proposed an alternative method of compliance that would result in the construction of a total of 130 inclusionary units. 11. Specifically, under its initial proposal, Developer would: (a) build 26 integrated units on 4,000 squaze foot lots, which would be fully compliant with the Regulations, and would in addition be affordable in perpetuity; (b) build 26 1 bedroom, secondary dwelling units on 6,000 square foot lots, which would be rental units and affordable in perpetuity; (c) build an 88-unit. off-site affordable project, which would include 78 inclusionary units to satisfy the obligations of the Project; and (d) contribute a $1,000,000 community benefit payment to the City. 12.On October 18, 2005, the City Council conceptually approved the Developer's initial proposal and directed City. staff to work with the Developer to (a) refine fire proposal to include landscaping in the rear yazds and using energy efficient measures for the integrated affordable homes to bring down the cost of ownership; (b) work on timing issues and obtain necessary Fallon Village (initial Phase) Affordable Housing Agrcement 052107 (2) Affoi First Phase of Positano Project 2 May 24, 2007 38 ~ ago security for the completion of the off=site project; (c} study the feasibility of the integrating the 88 unit off-site project into a larger mixed income project; and (d) incorporate green building principles in the project as practical. 13. In response to the direction from the City Council, Staff and the Developer have been working diligently to prepare an affordable housing agreement that would set forth the Developer's obligations as to the entire Project, but an agreement has not yet been reached due primarily to uncertainties about the off-site affordable project. 14. The Developer has therefore proposed that the City initially enter into an affordable housing agreement for the first phase of the Project, which consists of 247 residential lots and the location of which is shown on Exhibit 2 ("the First Phase"), and the parties would continue negotiating the definitive affordable housing agreement for the Project. 15. The City is agreeable to such a phased approach, provided that the First Phase agreement satisfies the entirety of the First Phase's obligations under the Regulations and provided that Developer specifically agrees that the City may refuse to record additional final maps for the Project that would create residential pazcels in excess of the 247 residential pazcels in First Phase and that it will enter into an affordable housing agreement for the remainder of the Project prior to any further development outside of the First Phase. 16. For the 247 units in the First Phase, the Developer's inclusionary zoning obligation under the Regulations would be 31 units (247 times 0.125 equals 30.875), and it would be permitted to pay fees in lieu of construction to satisfy the obligation as to 12 units (31 times 0.4 equals 12), leaving amust-build obligation of 19 units. 17. Developer has proposed an alternate method to satisfy its 31 inciusionary unit obligation (a) by constructing in the First Phase (i) 13 integrated inclusionary units on 3,200 square foot lots, which would be affordable in perpetuity, rather than for 55 years as the Regulations require("the Integrated Units"), and (ii) 13 1-bedroom, secondary dwelling units, which would be rental units and affordable in perpetuity, rather than for 55 years as the Regulations require ("the Second Units"); (b) paying fees in lieu of construction for the remaining 5 unit obligation; (c) making a community benefit payment prior to issuance of each building permit equal to $958.77 (which amount is calculated based on the proposed $1,000,000 contribution divided by the 1,043 units proposed in the Project); (d} including reaz yard landscaping and energy efficiency measures to reduce the homeowners' cost of living in the 13 integrated inclusionary units; and (e) incorporating green building principles into the 26 inclusionary units. 18. The City Council hereby fords that the alternate method of complying with the Regulations for the 247-unit First Phase of the Project meets the purposes of the Regulations. NOW, THEREFORE, in satisfaction of the requirements of Chapter 8.68 of the Dublin Municipal Code, in partial satisfaction of condition 2 of the VTM Resoluticjn and in consideration of the City's approval of the Project, Developer and City for themselves and their respective successors and assigns hereby agree as follows: Fallon Village (initial Phase) Affordable Housing Agreement_052107 (2) Affo~ First Phase of Positano Project 3 May 24, 2007 ~~ p.(? ~ `~ `~ 1. Definitions and Interpretations. Terms used in this Agreement shall be defined asset forth in Chapter 8.68 of the Dublin Municipal Code. 2. Limited Applicability of Affordable Housing Agreement. This Agreement shall be deemed to satisfy the requirement under the Regulations and Condition 2 of the VTM Resolution for the Developer to enter into an affordable housing agreement for the Project prior to approval of Site Development Review and the recordation of the first phased final map, provided, however, that in accordance with the Regulations and Condition 2 of the VTM Resolution, development on, and approval of subsequent final maps that include, any portion of the Property beyond the First Phase shall require either an amendment to this Agreement or a subsequent affordable housing agreement ("the Subsequent Agreement")setting forth the manner in which the Regulations. will be complied with for the remainder of the Project. Developer hereby agrees that it will not assert the provisions of Government Code section 66458 to require the City to approve additional phased final maps (beyond those for the creation of the 247 residential pazcels in the First Phase) pursuant to the tentative map approved by the VTM Resolution until such time as it has entered into the Subsequent Agreement. 3. Developer's Compliance with Affordable Housing Obligation. Developer intends to complete the First Phase in fourteen sub phases plus a phase that includes 8 model homes. Section 8.68.030 of the Regulations requires that all affordable units in a project be constructed concurrently with a project or phase of a project. Exhibit 3 shows the location, and type, of the Inclusionary Units to be constructed within the First Phase. All Inclusionary Units identified on Exhibit 3 shall be constructed concurrently with the mazket-rate units surrounding the Inclusionazy Units. The City fords that the preliminary construction schedule attached hereto as Exhibit 4, which shows the completion of the 26 Inclusionary Units in the initial three phases along with 78 market rate units, constitutes construction of the Inclusionary Units concunrently with the mazket rate units as required by Section 8.68.030 of the Regulations. Notwithstanding the foregoing, Developer shall be permitted to deviate from the attached preliminary construction schedule, provided that the Inclusionary Units still aze constructed concurrently with the mazket rate units as required by Section 8.68.030 of the Regulations. If the Building Official or Community Development Director determines that the Inclusionary Units have not been or are not being constructed concurrently with the market-rate units as required by this Section 2, the Building Official shall withhold further issuance of building permits in the Project until construction of the Inclusionary Units in the phase has been completed to the satisfaction of the Community Development Director. 4. In-Lieu Fees. Developer shall pay in-lieu fees to fulfill its obligation to construct 5 of the 31 inclusionary units at the time, in the amount, and as otherwise required by the Regulations and Council Resolution No. 56-02. As required by the Regulations, the entirety of the fee shall be paid at time of issuance of the frst building permit in the First Phase. Notwithstanding anything to the contrary in the foregoing, the parties agree that, should the parties enter into the Subsequent Agreement, the monies paid by Developer pursuant to this Section will be refunded to Developer, with the City retaining any accrued interest, from the City's Affordable Housing Fund, unless the Subsequent Agreement specifies otherwise. Fallon Villagc (Initial Phasc) Affordable I-lousing Ageement_052107 (2) ,q~'o~ First Phase of Positano Project 4 May 24, 2007 5. Community Benefit Payment. Developer hereby agrees to make a $958.77 community benefit payment prior to.issuance of the building permit for each residential unit in the First Phase. The community benefit payment required by this Section shall be in addition to the $2,396.93 community benefit payment required by the Development Agreement for the Fallon Village Project between Developer and the City,.dated December 20, 2006. 6. Inclnsionary Unit Design, Location, and Size. A. Exterior Materials and Exterior Architectural Design. The exterior materials and exterior azchitectural design of the Inclusionary Units shall be consistent with the First. Phase's mazket-rate units upon their review and approval through the Site Development Review by the Planning Commission; provided, however, that minor changes to unit size may be approved by the Community Development Director through a Site Development Review waiver. B. Unit Location. Consistent with Section 8.68.030 of the Regulations, the Inclusionary Units shall be dispersed throughout the individual phase in which they are constructed. The "Diagram and Location of Inclusionary Units in the First Phase of the Project," attached hereto as Exhibit 3, shows the location of the Inclusionary Units as proposed by the Developer, which the developer hereby agrees to construct as shown, and the City hereby finds that the units as shown aze reasonably dispersed through the Project as required by Section 8.68.030.E of the Regulations. C. Rear Yard Landscaping. Developer's Site Development Review submittal shows fully landscaped reaz yards (including turf, shrubs, trees, irrigation, and a usable pad area) for each of the Integrated Units shown in Exhibit 3, and Developer hereby agrees to complete the rear yazd landscaping as shown in the submittal (or as revised in the SDR approval) prior to occupancy of the Integrated Units. D. .Green Buildine Principles. Construction of the Integrated Units and Secondary Units shall incorporate Green Building Principles by meeting the minimum requirements for a green home set forth in the "Single Family CrreenPoint Checklist" attached hereto as Exhibit 5. 7. Unit Bedrooms and Size. The size of the Inclusionary Units shall be consistent with the Site Development Review approval of the Planning Commission, provided however, that minor changes to unit size may be approved by the Community Development Director through a Site Development Review Waiver. The developer proposes to provide: A. 8 very low-income units (4 four-bedroom Integrated Units and 4 1- bedroom Secondary Units); B. 61ow-income units (3 four-bedroom Integrated Units, and 3one-bedroom Secondary Units); and C. 12 moderate-income units (6 four-bedroom Integrated Units, and 6 one- bedroom Secondary Units). Fallon Village (Initial Phase) Affordable Housing Agrcemcnt_052107 (2) Affo~ First Phase of Positano Project S May 24, 2007 y~ ~ ~~o The City hereby finds that, while this breakdown does not reflect the range of numbers of bedrooms provided in the First Phase as a whole, as required by Section 8.68.030.E of the Regulations, the Developer's alternate method of compliance meets the purposes of the Regulations. 8. Ensuring Affordability. A. Integrated Units. i. Sales Price and Marketing of Integrated Units. Developer shall sell the Integrated Units at sales prices that are affordable, as applicable to the individual buyer, to persons with very low-, low-, or moderate-incomes as defined in the Regulations. -The maximum sales price shall be adjusted for household size and income (except that the income for very-low income households shall be assumed to be equal to the maximum income within the very-low income category for the buyer's household size regazdless of buyer's actual income). Additional detail on the manner of calculating sales prices for the Inclusionary Units is set forth in the Layperson's Guide to the Inclusionary Zoning Ordinance Regulations, adopted by the City Council on June 1, 2004 and attached hereto as Exhibit 6. All units shall be mazketed and sold consistent with the Regulations. ii. Marketing Plan. Developer shall prepare and receive City approval of a Mazketing Plan as required by Section 3.1 of the Layperson's Guide to the Inclusionary Zoning Ordinance Regulations, adopted by the City Council on June 1, 2004 and attached hereto as Exhibit 6, prior to issuance of the first building permit in the First Phase (excluding building permits issued for model homes). iii. Resale Agreements. Developer shall require the initial buyer of each Integrated Unit to execute, and record against the applicable property, a Resale Restriction and Option to Purchase Agreement and Performance Deed of Trust (collectively "Resale Agreement") in substantially the form attached hereto as Exhibit 7. This Affordable Housing Agreement shall serve as the agreement required by Section 8.68.030 of the Regulations. In the event that the initial buyer participates in other City housing programs, such as the first time home buyer loan program, the City may approve the use of other resale restriction agreements. B. Secondary Units. i. Re ator~greements. Developer shall require the initial buyer of each pazcel on which one of the Secondary Units is located to execute, and record against the parcel, a Secondary Unit Regulatory Agreement in substantially the form attached hereto as Exhibit 8. Developer shall ensure that the initial buyer attends an orientation session, provided by an independent third party approved by the City, that describes the requirements of the Secondary Unit Regulatory Agreement. C. City Administrative Fee. Prior to the City's execution of either the Resale Agreement or Second Unit Regulatory Agreement, Developer shall pay the City a City Fallon Village (Initial Phase) Afi'ordablc Housing Agrcetnent 052107 (2) ASo~ First Phase of Positano Project 6 May 24, 2007 ~ ~ .~~-~~ Administrative Fee, in an amount to be established from time to tithe by the City Council and which is currently set at $1,500 per transaction. 9. Term. This Agreement shall be effective until all Inclusionary Units in the First Phase are constructed, sold, and subjected to resale. restrictions approved by the City pursuant to the terms of this Agreement and the parties have entered into the Subsequent Agreement. 10. .Memorandum of Agreement to be Recorded. Developer and City shall execute and acknowledge a Memorandum of this Agreement ("Memorandum") substantially in the form attached hereto as Exhibit 9, and City shall cause the Memorandum to be recorded in the Official Records of Alameda County upon its execution. 11. Agreement Runs with the Land. All of the provisions, rights, terms, covenants, and obligations contained in this .Agreement shall be binding upon the Parties and their respective heirs, successors and assignees, representatives, lessees, and all other persons acquiring the Property, or any portion thereof, or any interest therein, whether by operation of law or in any manner whatsoever. All of the provisions of this Agreement shall be enforceable as equitable servitude and shall constitute covenants running with the land pursuant to applicable laws, including, but not limited to, Section 1468 of the Civil Code of the State of California. Each covenant to do, or refi-ain from doing, some act on the Property hereunder (a) is for the benefit of the Property and is a burden upon the Property, (b) runs with the Property, and (c) is binding upon each Party and each successive owner during its ownership of the Property or any portion thereof, and shall be a benefit to and a burden upon each Party and the Property hereunder and each other person succeeding to an interest in the Property. 12. Assignments and Transfers. A. Ri t to Assign{tc "17.1 Right to Assign "u 2}. Developer may wish to sell, transfer or assign all or portions of its Property to other developers (each such other developer is referred to as a "Transferee"). In connection with any such sale, transfer or assignment to a Transferee, Developer may sell, transfer or assign to such~.Transferee any or all rights, interests and obligations of Developer arising hereunder and that pertain to the portion of the Property being sold or transferred, to such Transferee, provided, however, that:. no such transfer, sale or assignment of Developer's rights, interests and obligations hereunder shall occur without prior written notice to City and approval by the City Manager, which approval shall not be unreasonably withheld or delayed. Any such assignment shall specifically acknowledge the obligation under Section 2 of this Agreement to enter into a Subsequent Agreement prior to any development on and approval of subsequent final maps that include any portion of the Property except for the First Phase. Notwithstanding the foregoing, provided notice is given as specified in Section 19, no City approval shall be required for any transfer, sale, or assignment of this Agreement, in whole or in part, to any entity or group, a majority interest of which is owned or held under common control with Developer ("Affiliate"), provided that in the event of a partial transfer, Developer has, at the time of the transfer, complied with all obligations of this Agreement or provided evidence satisfactory to the City Manager demonstrating that the remaining obligations have been allocated between Developer and Affiliate. Fallon Village (Initial Phase) Affordable Housing Agreement 052107 (2) Affoi First Phase of Positano Project 7 May 24, 2007 4~ ~ ..~ B. Approval and Notice of Sale, Transfer or Assi>nment{tc "17.2 Release Upon Transfer "112}. The City Manager shall consider and decide on any transfer, sale or assignment within thirty (30) days after Developer's notice thereof, provided all necessary documents, certifications and other information are provided to the City Manager to enable the City Manager to determine whether the proposed Transferee can perform the Developer's obligations hereunder. Notice of any such approved sale, transfer or assignment (which includes a description of a1i rights, interests and obligations that have been transferred and those which have been retained by Developer) shall be recorded in the official records of Alameda County, in a form acceptable to the City Manager, concurrently with such sale, transfer or assignment. C. Effect of Sale, Transfer or Assignment. Developer shall be released from any obligations hereunder sold, transferred or assigned to a Transferee pursuant to Section 12.a of this Agreement,.provided that: a) such sale,. transfer or assignment has been approved by the City Manager pursuant to Sections 12.a and 12.b; and b) such obligations are expressly assumed by Transferee and provided that such Transferee shall be subject to all the. provisions hereof. 13. Successors. Except as specifically provided in this Agreement, this Agreement shall bind and inure to the benefit of all successors and assigns of the parties and any associates in interest, and their respective directors, officers, agents, servants, and employees, and the successors and assigns of each of them, separately and collectively. Developer shall provide notice to the City of the names and mailing addresses of any such successors or assigns. 14. Hold Harmless. Developer shall hold City, its elective and appointive boards, commission, officers, agents and employees harmless from and against any or all loss, liability, expense, claim, costs, suits, damages of every kind, nature and description directly or indirectly arising from the performance of the obligations or undertakings of Developer pursuant to this Agreement. Developer shall defend City and its elective and appointive boards, commission, officers, agents and employees from any suits or actions at law or in equity for damages caused or alleged to have been caused, by reason of any of the obligations or undertakings of Developer pursuant to this Agreement. It is further provided that this hold harmless- agreement shall apply to all damages and claims for damages for every kind suffered, or alleged to have been suffered, by reason of any of the obligations or undertakings of Developer pursuant to this Agreement. 15. Enforcement. If the Developer defaults in the performance or observance of any covenant, condition, restriction or obligation of the Developer as set forth in this Agreement, and such default remains uncured for a period of thirty (30) days after notice thereof is given by the City (or such longer period as may be necessary to cure the default, provided that Developer commence the cure within the thirty (30) day period and diligently prosecutes the cure to completion), the City may take any one or more of the following steps: A. By specific performance or other action or proceeding at law or inequity, require the Developer to perform its obligations under this Agreement or enjoin any acts or things which may be unlawful or in violation of the rights of the City hereunder. Fallon Village (Initial Phase) Affordable Housing Ageement_052107 (2) Affoi First Phasc of Positano Project 8 May 24, 2007 r; B. Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants, conditions and restrictions of the Developer under this Agreement. C. If Developer transfers any portion of the project in bulk and a Transferee defaults under this Agreement, the City shall exercise the foregoing remedies only with respect to the defaulting Transferee and its portion of the project; and so long as Developer has not otherwise defaulted hereunder, the City shall not seek to exercise any rights and remedies against Developer. 16. Attorneys' Fees. If legal action is necessary to enforce any provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and legal costs. 17. Amendments. This Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in interest and duly recorded in the Official Records of the County of Alameda, California. In the event that Developer is unable to perform its obligations under Sections 3 and 6 of this Agreement due to significant changes in circumstances, such as unanticipated delays in construction within any of the neighborhoods, the City shall confer with Developer in an effort to reach a mutually acceptable resolution, consistent with the terms of the affordable housing conditions in the Approvals. If an agreement is reached, this Agreement shall be amended accordingly. Developer shall pay the City its reasonable costs, including attorneys' fees, incurred in such negotiations and in amending this Agreement, and Developer shall, if requested by the City, provide the City with a reasonable deposit to cover the City's reasonable costs, upon Developer initiating such negotiations. 18. Corporate Authority. If either party is a corporation, each individual signing this Agreement on behalf of that corporation represents and warrants that each of them is duly authorized to execute and deliver this Agreement on behalf of the corporation and that the Agreement is binding on the corporation in accordance with its terms. 19. Notices tc X11 " 23. Notices .All notices required or provided for under this Agreement shall be in writing. Notices required to be given to CITY shall be addressed as follows: City Manager City of Dublin 100 Civic Plaza Dublin, CA 94568 Notices required to be given to Developer shall be addressed as follows: Jeff Lawrence Dublin RE Investors 4155 Blackhawk Plaza Circle, Suite 2D1 Fallon Village (Initial Phasc) Affordablc Housing Agcement_052107 (2) Affo~ First Phase of Positano Project 9 May 24, 2007 f_ Danville, CA 94506 FAX No. (925) 648-5700 A party may change address by giving notice in writing to the other party and thereafter all notices shall be addressed and transmitted to the new address. Notices shall be deemed given and received upon personal delivery, or if mailed, upon the expiration of 48 hours after being deposited in the United States Mail. Notices may also be given by overnight courier which shall be deemed given the following day or by facsimile transmission which shall be deemed given upon verification of receipt. 20. Exhibits. The following documents are referred to in this Agreement and are attached hereto and incorporated herein as though set forth in full: Exhibit 1 Properly Description of the Property Exhibit 2 . Diagram of the First Phase of the Project Exhibit 3 Diagram of Location of Inclusionary Units in the First Phase of the Project Exhibit 4 Preliminary Construction. Schedule Exhibit 5 Single Family GreenPoint Checklist Exhibit 6 Layperson's Guide to the IncIusionary Zoning Ordinance Regulations Exhibit 7 Resale Restrictions and Option to Purchase Agreement Exhibit 8 Secondary Unit Regulatory Agreement Exhibit 9 Memorandum of Affordable Housing Agreement for the Construction of Inclusionary Units and the Payment of Fees In-Lieu of Constructing Inclusionary Housing Units IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written. i CITY OF DUBLIN Dated: ~~ By: Ric and C. Ambrose, Manager Attest: Fallon Village (Initial Phase) Affordable Housing Agrccmcnt_052107 (2) 10 First Phase of Positano Project May 24, 2007 Affo~ Kay Dated: DUBLIN RE INVESTORS, LLC By: Braddock and Logan Services, Inc. a California corporation ' Its Manager: By: _ Pis roE.~ Fallon Viltagc (initial Phase) Affordable Housing Agreement 052107 (2) Affo~ First Phase of Positano Project 11 May 24, 2007 _ _~ ~ ~~ CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of Calitomia County of CCir7fs"rf2.~i On 5 ~a.5 /07 before me, N ~~ >E ElfYlt32~t.I . ~ nI CSR-c.~ ~J ~,~t C. Cate ~C Name and Troa d officer (e.g. Doe, Notary Putilic~ personally appeared ~ y FF 1--~ ~ ink tSC..~ Name(s) d Signer(s) personally known to me NAMCY E. tJNlREI- ConxrtUNon 1187E0~.7 ~Y f~~bNc - CcMbrntct ConMo t;wl~ Cary, INt-Car>wn. ExpY~Junti. ^ (or proved to me on the basis of satisfactory evidence) to be the persons whose name(t;) is/ere subscribed to the within instrument and acknowledged to me that he/executed the same in hisht?~411~tr authorized capacity(ies), and that by his/lterllheir signatureek) on the instrument the person(, or the entity upon behalf of which the person(9~ acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above g . slgnaw.a d Notary Pubic OPTIONAL Though the infom-atwn below is not required by law, it may prove valuable to persons retying on the document and could prevent fraudulent removal and reattachment of this form to another document f ~ . _ ~, ~ r; Description of Attached Document G ~~'~ ~~ prof' ~' ""O~-~ Tttle or Type of Document: ~ ~ ; ~' t ~~ Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ^ Individual ^ Corporate Officer -Title(s): ^ Partner - ^ Limited ^ General ^ Attorney in Fact Top of thumb here ^ Trustee ^ Guardian or Conservator ^ Other: Signer Is Representing: u Number of Pages: Signer's Name: ^ Individual ^ Corporate Officer -Title(s): _ ^ Partner - ^ Limited ^ General ^ Attomey in Fact ^ Trustee ^ Guardian or Conservator ^ Other: Signer Is Representing Top of thumb here O 2008 National Notary Assodation •9350 De SWO Ave., P.O. Bwc 2402 • Chalsvrorth, CA 91313-2402 kem fJO. 5907 Reorder: Cai TdFFree 1-80D878-6827 ~~ ~ ~ ,~~ E~~IT 1 Property Description of the Property %~ ~~ ~ L.._ :1 '~ /r 1 I ~~~ ~ ' }~ ~-..--~. i , i ~ Fi -ec~r Pt+adc ~~ ~~ ~ X70 :~ - ., a _ ,.J -. 7 ~~~~ \ '.. Ai J / :. ~\'v \ ,. erg ,.. :.-~ ~~- ~ 1~ ;•~ ~ t c t-~i\In i ~ __ .- =~ , ; . : ~ ~ 'vlodcratc Inanne - l :? unit: r ~ ~. I _ ,' ~ r',% .,. P~:111 L X71 168~•~ x ..~ l~ Lol r IX ?, r ~R A~. i°! ~; ~ {~~ ., - Plan ~ Suan~lal~ t ~~ n /. bG ~ Lott 16.<U;?~1_,a .~8ca / '/ Y 'i ~,~' ;~~ i l..ow•-income - 6 units ~~ / ~54 '~,CQ~~" E: ~ Plan ~ ur»r ~'' w ~1 f'~an'3 Scc:miarv lirrt % i v'„ ~ t , ,,~ -/ ,t~ ?~ ~ ; ~ tt) 1 ins Income - R unit // ~~ /~ /,'' i ~ a % /5 ~ ~- \ r ialr t Si:;rn ~; ti t;ru _~ .~ -.~j ./ ~ '~ .n ~~\• ,\• 1.011'(1, qi. 54 ~.{,4 ~~~~~~% homes wit)t Below Market Ratc 5cconda-v L!nits k•ft Y •`------_ ___- All lots without above svntholc arc market-rate. 7 l.,ttt Nuotber * Resident Parkint* in I)rivewav for Aft~n'd<iblc Secondary t.nit \, Models « t'tlit Phase l -''2l.=nits Jiixicl~ttc ^. ; 1-flan I c~ 1-I'lar L.c»v 3 -' I -flan I & 3 1'1»n .~ Vrrv t.rnv ~ ~-Plan f ~ 2-Plat Phase 2 - 2? lhuts hlcxicratr, S :'-Plan 1 ~~ + I'lar l.ow ~ r I ~1'lan ! c4i !-I'I,+n 3 ~'i~ry 1_e»r 1 i 1-flan 1 & ti-Pl;tl Phasrr :; - 3:3 Units A4oderatc ~ ; :i-flan I ~\ ;?-I'lar 1 ~»ti~ I 1 -Tian 1 X. (?-I'I;+,rl '3 \•'erv i.-oa ~:' t-Plan I A ''_-Plat 5I o~ ~,D -~. • ~ o ~ , .:~~ a,:t~.. / 7 ~ A;yyy ~. Y)~ ~1~ '_ . \ :~. ._.. \ * ~ ~r*'.*,~c it * * ~*~k ~r~~- ... - ~x~` ... ~ .~ '' ar"~;'t y.~ ii iy~i' ~}} - 3~' ~'~ ~, k -. ~.~ ` r ~ r .:i S _~ _. ~ ~ ~~~~ ~ Y~ i~ %~ ~~ S 1 ' it a ~ a .. „r~y,,,.~.+: 1 `:~Y ~ `~. Z x $ 4 ~ k i I:1 i. ~ ~ i ~ ! ~ ~'~ ._; ~q '~~ t P P P F F F t f } ^f 1 ~~ ~ ~~ t `- I # ~ ~~~ ~ --.. a 4 Positano First Phase Preliminary Construction Schedule MODELS _ .. ,, , _ ~.. -._ ... _. i ~A 4 4 PHASE ONE ,~ ~. t ..~ ,, '~~~ ~ . 4 4 ~ t 3.. 12 12 _ _ - ~ 3 1 1 5 5 ~~1; ~~~ ~Ea ~ ~~ ~ ~ 5 1 3 9 26 35 dS~/, _'' ~, ,'r~ 14% 3% 9% 26% 74% 100% PH~iSE THREE - - ~~ - A, ~ 16 16 ~~ '- ~" 2 1 1 4 4 _"~~;"_' _~ '` + ~ 3 1 0 4 4 ~y~ 1 '" F ~ " 5 2 1 8 28 36 'w t~"' 14% 6% 3% 22% 78% 100% PHASE FOUR PHASE FIVE C~ ~ _ .tl_niea-art=E ii ~ a ~ ~tsa..i'~,r v.~a. ~ ~.,..: ,d'-.,~~i - - 8 ~ i t 9 i '~-- ®® PHASE SIX PHASE SEVEN -, aNecF Twn ~~ ~. ~ ~ PHASE EIGHT PHASE NINE PHASE TEN PHASE ELEVEN PHASE TWELVE PHASE FOURTEEN LIN LOTS ~jLf ~ ;~- 7tJ ~, Single Family GreenPoint Checklist dam: '~~ ~ ~~ Buiad It ~~'ee~ Ttre GreenPant dteckgsl tracks green feabxes incorporated info the hors. The recommended mini- mart Sckrtions:rom the Grrnr. rd Up mum requirements for a green tame are: Earn a total of 50 points or more; obtain the folbwing minimum '°-'~ - points per category: Energy (1 !), Itxloer Air QuatilyMeaHh (5), Resources (6), end Water (3); and meet the prarequ"sites A.3-a (50% construction waste drversan) and N.1 (Incorpon~te Green Points check8st i Ut blueprints). The green building practices listed below are described in the Me•H Home ConstruGiai Green Building GtrideGnes. availattla al www.buAditareen.ao. z c ~.. ~ ~ ~ ~ ~ l E U m ~ g K '~ .., ,, ;: ., ,. , . ' ~ ~ .~ ~ ~ , ' !' :.: Rossrbie t?oints :: 1. tact NbWe Sol end Mtn DlsrupUon o} Extstfng Plano d Trees ~ a Protect Natlve Tapsait from Erosiar and Reuse slier Construction 1 I ' 1 ( ^ b. Limit and Delineate Corrsbuniorl Footprint br Mtmdnrum Protection _--- r-~ - ( 1 2. Daeonstrrret lrntead of Dam~khMg Exladng Butdirrgs On sea I ! 3 i 3. Reryda Job Sib Constnrctiarti Wade (Including Green Waste) Q a A~rimrm 5096 Walls Ofveraion by Weiyl>t (RecycFng or Reuse) -Required I I Y ^ b. trirtimum 65°b DMrersiarr by Weight (Re~rdug a Reuse) ~2 ^ c. MrnMnum 80% Dlversian by Weight (Recyding «Reuse) I z _ 4. Use Rer.~rcled Conbnt Aggrsgab (Nlirirrwm 25X) ^ a. Walkway arrd ' 1 I.~. ^ b. Roadway Bese ~ 1 I B~ LANDSCAPING:.` _. ;:. _,: ; :; - . , . ; _ , Pos§~Ie Pohrts . 'ir _ .. ._,!. 1. Condruct Resource•EtCidant l.andccapas a. No invasive Spades Listed by CaHPC Are Planted ~ 1 ^ b. No Plait Species Wrt Requre tiedgirg 1 Q c. 759r. d Plant Are Catlfarria Natlva « Medtarenear spades I 1 2 Uss Fin-Sab Landaa Techni ues 1 3. Mlnlmlxe Turf Areae M landscape Insbtled by Balder ^ a Atl Turf WiI Fleve a Water Requirdngrt Less tltert «Equsl b Teti Fesdre ~ 2 ^ b- TuA Shat lVol Be Inddled an Slopes Exceeding 1076 «in Areas Las then 8 Fcet IMde _ ~ .~ ~ 2 -- [~ c Turf is c9396 of Landscaped Mee _ _ ~ ~ I Z ^ d. Turf is <1076 0(tadscaped Area I ( 2 ~ 4. Plant Shade Trees 1 I i 1 5. Implement Hydraaoning: Group PtaMs by Water Needs I 1 6. Indall Hklh•Elfldenry Irripatlon Systems ^ a. System Use Ordy Low-Row Dn~, Bubblers, «Low•tlav Sprinklers i ^ b. System lies smart (Weather-Based) Contrapas 2 ~ T. Apply Two krelres of Compost in the Top 6 to 12 Inches of Sot j I i 2 ~ S. Mulch At Plerging Bede to ttw Greater of 2 Inches or Local Water Ordlnarra RerpriremaN I I 1 9. Uae 5076 Salvaged or lteeyded•Contsrk fvlaterlab for 5076 of Non•Plant ttrrduape Elemenrts I I i I 10. Redoes tJgftt PolMtfion by Sitieldtrg Fbdures ardfor Direcfing l.lglrt Downward 1 I I I I ~FOUNDA?iON .:-: ~ . , ; ~ Possible Prints ; ;. 1. ~corprxate Recycled Flyash In Concrete ^ a hPormum 2076 F1yasM I L~. 1 ^ b. -~nknu„ 25s6 ash -! j i 2. Use Frod•Proteeled Shdlow Foundatbn fn CoM Arses (C.6C. Climde Zone 16) , 3 3. tlse Radon Restdad Constnxtion pn At-Rlak t.ocatbrrs 0 ) f I 1 I ). S'I'RUG11)ItAL ]FRAME & BUl3.DING ENVEL(?PE ~ :::::" `1 'Possiible Points :~:~. . 1. Apply OptlmN Value Ergf nearing ^ a 2x4 5bds at 24-Indr On Center Framing f I 1 ~_ Q b Door and Window Headers Sized for Load , (~1 I ^ c Use Only Jack end Cripple Shrds Required fa foal I I I 1 1~ Single-Family GreenPoint Checklist 2006 Edition Page i of 4 L' G t N ~ D w U W s ~ n Ti 2 the Engineered Lumber Q a B~nx and Headers - - ~ -.- - 1.. ~_.__-- ^ b. Irtsulelt~ Engineered Headers _ 1 _ _ _ ~,- ~ __-- j ^ c Wood I,loists «web Tntssa for Floors -- - j _. i 1 ~ ^ a wood l-Joists«Raders __ ' _~ -1 ~__- ^ e. Engk~eaed a F'inger,ldnled Studs to Vertical AppC~ations I I 1 3: the FSGCerliried Waod ^ a Dlmaaiaial Surds: Minlnartf 40% - % ~__ 2 - ~ ^ b Dimeneicnal sti,ds: Minimum i<o96 I I ? 1. ^ c Panel Produris: hfininxan 409E I j- 1 __L_-_ ^ d Panel Products: M'srineatn 7096 ~ 1 j 4. Hsek on Truseec of Attic lmulation tbi ht at Outside E of Fxbcior Wall) 1 j ~ 5. n Tnasse >b Aeconnradate Dtfdwrork 1 1 ~ ~ 6. the Oriented Strand hoard (058) p b. sneau,ina ' 7. the Recycled-Contend Steel Studs for lI096 of IMedor Wall Fremirg I j I 1 ~ 8. Use Solid lAlall Syatema (Indudes SIPS, ICFs, & Arty Noo-Stfek Frame Asaetnlrfy) ^ a Ftoas 2 _ ? I---- D b wags z i ~ ^ Q. RoOfe Z 2 I 9. Thwmal Mace Walis: 5181nctt Drywall on All hMarior Wads or Walh Weigh more than 401Wcutt. I 1 I I 10. Dedgn and Budd Pest Cortrols O a Mwfad Temrile Slields 8 Separate Ad Exterior Wood-to-Concxete Cannedfais 1 by Metal «Plasdc FastanensJDNiders _ Q b. All New Plar~ flare Tnwk, t3ase, a Slem Located Al Least 36 lndres fran Fauaiadon i 11. Reduce Pdludon the Hone from the C,arage ^ a Tightly seat fine A'r l3errier betereern ~ and living area _ ~- 11 ~_ ~ ^ b. loafed Sepertnte Garage Fxhanit Fan I I 1 i I 12 Mstall Ovefiangs and Outface ^ a tfirnimun 1 Glnch Overhangs and Cutlers - ~ ,--- (_ 1 - --- ~--- ^ b Mnmum 2Mnrh Ovednargs and GrAtac 1 1 j ~ E:?F.XTERIOR FIlQI6H ,_ .:.... _ - - ; 'Possible Pdnis ' ::. 1. the R ad~Cerrlsnt )No Plastic) or FSC-Cerdfled Wood Dedctng I ~ ~ 2 j 2 Irrctall a Drainage Plane (Belo 3Crsen Wall System) I i 2 ! ~ 3. Use Durable and Noft'Com6r~le Siding Materfala !. 1 i 4. Select Durdbia and NarCombustibk Roofing Matertalc I Z I F PLUHiBIIVG. - ` ~'.Poss~le Points :: 1. Distribute Domestic Hot Water E}Ticwntly ^ a Insulate Hot Water Pipes [ran Water Heaisr to IOtdten ( I__y.~_ ^ b. Insulate All Hot Wffier Pipes OR Install drDemard Hof Water Cirarlatlon System 1 + I I 1 in argundim with F. t.a Insulate Hd Water Pipes tiom Water Heater to 10tchen _ i ^ c Corals the Water Haehx wktnin 25 fed of AI Fbt Water Fixtures and Appfsnas ~ j ~- ^~ 1 u ^ d lJSe Erngineered Parallel Rpbg I i (-1 2 lrwtaA Dniy H1gh ENkierncy TdIMs (Dublflush a ea~1.3 gpQ ' ; I 3 .., G: APPLIANCES .. '~.:':Ross+~lePoints !~- . 1. brsfall ENERGY STAR Dhttwastwr ~ a ENERGY STAR 1 I j Q b Dishwasher flees No Mae than 6.5 GalbnsK,ycle _ - ~ 1 ~ -- 1 - -;- 1 ~ 21nda11 ENEMY STAR Clothes Washing Machirne with Water Factor of 6 or t.ess I 1 j 1 I 3 3. Instal ENBtGY STAR Refrigerator ^ a ENERGY STAR: 1596 oboe Federal tvlnNnum 1 1. , ~ ^ b. -EtddaM Hone ApplMax Tier 22596 above Federal Minimum ~_. _ 1 I I I 4. hnstall Bufttdn Rec ing Centro I I 2 ~ Single-Family GreenPoint Checklist 2006 Edition Page 2 of 4 ~~ ~, l `~-~ L`HEATIlYG' VENTILATION & AIR °CONDI'TIONIIYG • , ` . ,: `Possible Pants ` . :. 1. Design and Instill HVAC System to ACCA Manual J, D, and S Recornrnendations I 4 i ^ ^ 2 Install Seated Combixtlon Units a Fumaas a water Beaters ~ _ ~_~ ~ Z _I__ I z I 3. No Fireplace or S~kd Oas Replace with Effiaency Rating Not Less Than 60'~ I I 1 I 4. Mstell B~tERGY STAR Ceiling Fans wkh CFIs In Lining Areas and Bedroonn I 1 ! I ^ ^ ^ 5. Install Mectwtf W Ventilation System for N1glNtlme Cooling (Point are Cumulative up to 3} a Whde House Fan b. Autamatiagy GonhoBed Integrated System c. Inegrated System with variable Speed Contrd -..1 1 I___~ l _..__ 2 _ I 3 1 I ~ 6. Install Ak Corrdiffoning wkh Non-HCFC Refrigerants 1 I I ~. Design and ItntaM Effective Ductwork ^ a krsm9 HVAC lkal and Urclrrork within Car dared Space --1 3 ~ -~_- O b. llse Dirt Maatlc on AA Dud Joints aui seems 1 ^ c krstei Dudwak un~r AtSc Insrdatlon (Beefed Duds) 1 ~J ~ ^ d. Bassos Bafarrce the Duchaork System for Nester Bedroan 1 J I II ^ e. Prated Duds during Carsbucdar and Clean A0 Ducts befoe Oxupancy - - - I 1 1 I & Insgll Fggh EBidarcy HVAC Fker (MERV 6*) 1 1 i 9. ~I Zoned, c Rodent Heating with slab Edge Insulation ! 1 1 I ^ ^ ^ 1a Install Ilecl>anical Ventllation system a Any woos va~mation system rn~ wrests ASHRAE ez. z b InstaA ENERGY STAR liatlroom fan c Ab Batlxoom Fars Are an Teter or Humidlstat i 1 I I 2 !_ ? 1 'T _! i 1 I I 11. Ute LowSom Hood Vented fa the Outside ~ 1 ! I 12 InafaN Carbon Monooride Alarm(s) I i l I I 7~I3UQ:DIIVG=EERFORMANCE Poss(ble Pohis .:=. 0'~ 1. Design and Bulid Hfgh Pertonrorres Homes (2 points for each 1% above T-24, up 10.30 pre} I 30 F.Mx the percent above 11th 29 h the o61f of left Any value offer 15tL w91 arrtanetlcayy eam 30 poirds. 2 House Obtains ENBtGY STAR wkh Indoor Air Package Csrtlflcation I I 5 I 2 i 3. Inapaetlon and Dlagnostk: Cwalualfone ~ a Third Party Enagy ant Green BuNding Review d Home Plans ; 1 ! 1 1 '' ^ b. Biows Door Tat Performed __ __ I 1 ) - ~ ! ^ c. Hacse Passes Combustion Safety Barkdrak Test _ ~__ I- i IfI2ENEW~BLE ENERGY `:" _ , ; - Possible PdMs , !. Pe-Womb for Solar Hot water Heating 4 I I I z. Imwl SotarwaterHaating System I 10 I ! 3. Install Wiring Conduk for Future Photovokaic Inata0adon b Provide 200 ft' of SoutirFeeing Roof ! 2 i ^ ^ ^ 4. InshO Photovokafe (PY) Panels e t.2 kW System b. 24 kW System o3.6kwormae ; 6 - ~+~_~_ ! 6 ~ ~_~_^ j 6 ~ i Single-Family GreenPoint Checklist 2006 Edition Page 3 of 4 5~ °~ ~ ~n $~ ..., ~ ~ o e a U W Q K .~. L:;F,iPiIS$ibS 'Possible Points . 1. Provide Permanent Walk-Off Mats and Shoe Storage at Home Entrances ( i I i 2 Use LowMo-VOC Paint ^ a. Low-VOC Interior W7mg Paints (<50 gpl VOCs (Flat) and <150 gpl VOCs (Hon-Flat)) ` i_ 1 _+___._.._!__ - --..-. ^ h. ZertrVl7C: kderior WaiUCegng PaSds lc5 gq VOCs (Fiat)) + ~ 3 i i ~ a Use Low VOC, waRK-Based wood finishes (<t50 vt~Cs} ! z f 4. Use Lo+r•Vtx Constrtx~laf Adhesives (c70 gpl Vixs} for All Adhesives 2 i i 5. Use Racyded•Cwtmnt Paint i i ~ 1 i b. lka Emironmenfaily Proferable Matadals for Interior Finish: A) FSGCarfifiad Wood, B) Reclaimed Lurrd~ar, C) Rapidly RenawaMa D) Recyded~Cwderrt or E) FrgwJoirtted Al feast 50% of F~fi Material (1 pt ~J: ^ a. cabkrets i I i . I Q 6. kNerlor Trim ~ ~ 1 i - ^ d. Doors ~ _ i 1 L__ -- - ^ a Corx,tertops 1 i 7. Raduw Fdrrraldehyde in Irrberfor Flnish (Section O'I356y for At leas1511% of Each Material Bebw: ^ a Cebinds _ .- - 1 L_ .__i-_ .-- b. Interior Trim _ - 1 ~ ___-L ^' G Shelling - ~1 ^ d $11b1t00t ~ 1 1 i & After InstaOatlon of Flnfshes, Test of Indoor Air Shows Formaldehyde Lwel Q1ppb i 3 I ,. - _.. :.. 113: F1OORIlYG - , -' :Poss~le Points 1. lhta ErnironntarUfly Prefsr'able Flooring: A) FSC~CWfkd w Redelmed wood 8} Rspidy Ranawa6le flooring Materials, C} RecydedConbnt Ceramic Tike, D) Exposed Conaeta es Flnlehed Floor w E}Recycled- Conterd Carpet. Rote: Rowing Adhesives Must Hare <5p gpl VOCs. ^ a. h1rdrnum 15% of Floor Area ~L 1 ^ b. MinYnum 30%of FioorArea ~ 1 ^ c. Minmum 50% d Fkxx Area 1 ^ d Minhnum 7596 of Root Area ! i ~ 2. Thermal Mass Rows: Floor Covering l)tlter than Carpet on 50% or Mon of Concrete Floors ! 1 ! i 3. Flooring Meats Section Ot950 w CRI Omen Label Plus Requirarnerrts (50% Minimum) i 2 i i _ , Ni-OTHEl3. - ~~ - - ' ;Possible Points .: Required ~ 1. Inco-poraOe C,nen Poi~r[s CfwckRst In Biwprlnts - I l ~ Y i 2 Develop HomeownarManuai of Orean FeetureslBenefits 1 1 1 i i 1 3. Community Design Meaarras b Local Priortges: See the CommuMty Plmnirrg b Design secOrn in Chaplet 4 of Ore New Home GrrdeMnes to meacuroc. Ma:drtsen o120 polMa br suggested measrxes. lACel requremertts may also be fisted here. p Fntet description hae . p Enter deco here p Enter descrpbon Irate ---- -- p Enter deeaiption here 4. Innovation: 11s1 kvroveWe meaguresthat maelthe(~een builcYng ob)edhms otOre Grddei'nes. Easier aP m a maximum combined total of 20 pls. See Innovation Cheddlst (ot suggested measuros. p Innovatlon H Comrtrumity. Fster desaipliom here ' p Inaratlm in Enmgy: Enter desrrfpOon here N...~_----_._~_.______._-----_--._.._--.--.. _ _._- _ 0 ~ Inruovelian in IAgihkalth: Faster desaiption here p Imoyatim is Resources: Enter desaiptionhere - - -- p Irrrrnratiouu k Water: Enter desaiptim here Points Achieved from Specftc Categories Total Points Achieved Projoct Has Met Ail Recommended Minimum Requirements Single-Family Grt:enPoint Checklist 2t)O6 Edition Page 4 of 4 :: ~- ~ ~ all I;a it ~ .~ I! Itr j X11 ~~ li l/ a~! •4 ~~Lf.~OR~~~ , I ~ :~ a~ s e• it ~ ~ III CITY C)F DUBLIN ~' ~~^ .!! a ~i . :! ~, „~ ~~ ~~~ L.AY~'ER.SC~N' S GUIDE T4 ~{' ~! ~ TIE INCLUSIfJNA~Y ,; E -, ~ ZONING C~RDINANC ii' REGUIJA'~'IQNS ~ ~ l~ .a~ ;.a ~i, ~' y a.~ li `li ,~ . II .: ~. II ~ ~ APPROVED BY DUBLIN CITY COUNCIL a' ~~ ON JUNE 1, 2004 .~, li ~~ ~, a •. :• `~ ~ Revised in Apri12005 a~~ :a ~I .:A ~ 4 i' CITY OF DUBLIN TABLE OF CONTENTS INTRODUCTION 1 1 THE INCLUSIONARY ZONING PROCESS 2 1.1 Determining the Number and Size of Units Required 2 1.2 How to Calculate the Inclusionary Unit Obligation 2 1.3 How to Calculate How Many Units Must Be Constructed and How Many Units Will be Subject to the In-Lieu Fee 3 1.4 How to Calculate the Fee That May Be Paid in-lieu of Unit .Construction 3 1.5 How to Calculate How Many Inclusionary Units Must Be Provided at Each of the Three Income Levels 4 1.6 How to Determine the Unit Sizes and bedroom requirements for Inclusionary Units 5 1.7 How to Determine the Location of Inclusionary Units Within the Development 6 2 AFFORDABLE HOUSING AGREEMENT 7 2.1 What is an Affordable Housing Agreement 7 3 FOR SALE PROJECTS 8 3.1 The Marketing Plan 8 3.2 Applications for Ownership Units 8 3.3 Screening Based on Household Size 10 3.4 Screening Based on Priority Preferences 11 3.5 Buyer Selection Process 13 4 ESTABLISHING SALES PRICE AND LOAN REQUIREMENTS FOR OWNERSHIP UNITS 13 4.1 Sales Price of Affordable Units 13 i 60 67 4.2 Acceptable Home Loan Products for Inclusionary Zoning Units 16 4.3 Closing of Sale and Escrow 16 5 RENTAL PROJECTS 17 5.1 Preparation and Approval of Management Plan 17 5.2 Establishing Unit Rents for Inclusionary Units 17 5.3 Screening Based on Household Size 17 5.4 Screening Based on Priority Preferences 18 5.5 Occupant Selection for Rental Developments 2U 5.6 Calculating Affordable Rents 21 5.7 Monitoring Rents 22 ii LIST OF EXHIBITS Exhibit 1 Resale Restriction Agreement and Option to Purchase Exhibit 2 Sample Inclusionary Unit Application packet Exhibit 3 Sample Application to Purchase Inclusionary Unit Exhlbit 4 Selection Preference Verification Letter Exhlbit 5 Excel Spreadsheet to Calculate Ownership Sale Prices Exhlbit 6 State of California Housing and Community Development Department Income for Guidelines (Example 2004) Exhibit 7 Current Alameda County Housing Authority Utility Allowance Sheet Exhibit 8 Below Market Rate Unit Monitoring Sheet lll LAYPERSON'S GUIDE TO THE INCLUSIONARY ZONING ORDINANCE REGULATIONS (Provision of For Sale and Rental Inclusionary Units (below market rate units) Introduction This document is the Layperson's Guide to the City's lnclusionary Zoning Ordinance Regulations ("the Regulations', which are set forth in the City's Municipal Code at Chapter 8.68. The City CounciPs purpose in adopting these Regulations is to increase the diversity of housing prices/rents in the community and ensure that the range of prices/rents continue over time. The purpose of this Guide is to assist the layperson in interpreting these Regulations early in the development process so that development projects are sensitively designed from the beginning. Development projects of 20 residential units or more must comply with the Regulations. In general, the Regulations require that 12.5% of the units constructed in a project be restricted in occupancy and in sale price or rent charged. Such restricted units are referred to as Inclusionary Units or Below-Market-Rate (BMR) units. (Section 8.68.030.A) Of these units, 50% must be affordable to moderate-income households, 20% to low- income households and 30% to very low-income households. (Section 8.68.030.B) Moderate-income households, low-income households, and very low-income households are defined as households that have an income level, respectively, of 120% to 80%, 80% to SO%, and less than 50% of the median income for the County of Alameda adjusted-for household size. (Section 8.68.030.D.) The State of California Housing Community Development Department (HCD) annually publishes income limits for each County. The City uses the HCD income limits for Alameda County, which are available on the HCD website (www.hcd.ca.gov), for setting income limits for the Inclusionary Zoning . Regulations (Section 8.68.030.D). While the Regulations require that 12.5% of the units in the project be Inclusionary Units, they permit the developer to meet 40% of this obligation by paying a fee in-lieu of construction. Thus, there is a "must-build" requirement of 7.5% of the units in the project, and the obligation with respect to the remaining 5% may be satisfied by the payment of a fee in-lieu of construction. Inclusionary Units must remain affordable for a period of 55 years, through affordability restrictions recorded against the property. In addition, the Inclusionary Zoning Regulations require that Inclusionary Units: • Be constructed concurrently with the market-rate units in the project • Have a similar range of bedrooms to the market-rate units in the project Not be distinguished by design or materials from the market-rate units in the project Apri129, 2005 1 ~~ ~ ~ r M~, t~~ ~~ • Be reasonably dispersed throughout the project. The Regulations also contain other means of complying with the obligations it imposes. Those alternatives are set forth in Section 8.68.040 of the Dublin Municipal Code. 1 THE INCLUSIONARY ZONIlVG PROCESS 1.1 DeterminiriQ the Number and Size of Unfts Required Prior to submitting a preappiication to the City for projects that include residential units of 20 or more, the developer should begin thinking about how the Inclusionary Units will be built into the design of the project. Housing Staff is available to discuss options for meeting the Inclusionary Requirements with the developer as part of the initial project review. For example, if a Developer intends to build only the minimum number of Inclusionary Units that the Regulations require it to build, Housing Staff can preliminarily indicate for the developer's planning purposes the number of Inclusionary Units the developer is required to build, the income levels and sizes of the required Inclusionary Units, and the amount of the in-lieu fee under the then-current fee schedule. After a project application is submitted to the. Community Development Department for review, a Planning Review Committee Meeting is generally held. In this meeting City Staff and interested agencies involved in the development process review the project and give preliminary comments to the developer. Prior to or following the Project Review Committee (PRC) meeting, Housing Staff will send a letter to the developer indicating the Inclusionary Zoning Obligations of the project as preliminarily proposed. A copy of this letter will be directed to the City Planner responsible for the project as well. The purpose of this letter is to provide the developer information on inclusionary obligations as early as possible in the development process. The City recognizes that the project is likely to evolve over time and that the project will likely change prior to obtaining City entitlements. However, this information is provided early in the process as a service to the developer for their planning purposes. The actual Inclusionary Zoning Obligations will be formalized in an Affordable Housing Agreement {AHA) between the City and the Developer, prior to recordation of a final map for the development. 1.Z How to Calculate the Inclusionarv Unit Oblieation The Regulations state that 12.5% of the total number of units within an applicable development project be Inclusionary Units (Section 8.68.030.A.). In making this calculation, any decimal fraction less than or equal to 0.50 is disregarded, and a decimal fraction greater than 0.50 is construed as a unit. Two examples of how the Inclusionary Unit Obligation for a particular development are shown in Figure 1. April 29, 2005 2 v k FIGURE I Example 1: The developer proposes a 224-unit subdivision. 12.5% percent of 224 is 28. The Inclusionary Obligation is therefore 28 units. Example 2: The developer proposes a 316-unit subdivision. 12.5% percent of 316 is 39.5. Rounding the decimal fraction down, the Inclusionary Obligation is therefore 39 units. 1.3 How to Calculate How Many Units Must Be Constructed and How Many Units Will be Subiect to the In-Lieu Fee The Regulations permit the developer to pay a fee in-lieu of constructing up to 40% of the Inclusionary Unit Obligation. When the calculation of the fee results is a decimal fraction, the rounding rules contained in Section 8.68.030A aze used. Using the same examples from Figure 1, Figure 2 illustrates the calculation of the number of Inclusionary Units that will be subject to the fee. FIGURE 2 Eaample 1: The developer proposes a 224-unit subdivision, for which the Inclusionary Obligation is 28 units. 40% of 28 units =11.2 units. Disregazding the fraction, the developer may pay fees in-lieu of construction on the remaining 11 units, and the developer's "must-build" obligation would be 17 units. 11 + 17 = 28 units. Eaample 2: The developer proposes a 316-unit subdivision, for which the Inclusionary Obligation is 39 units. 40% of 39 units = 15.6 units. This number is rounded up to 16 and in-lieu fees may be paid for this amount, instead of providing units. The "must-build" obligation would be 23 units. 16 + 23 = 39 units. 1.4 How to Calculate the Fee That May Be Paid in-lien of Unit Construction The amount of the in-lieu fee is set by resolution of the City Council. Resolution No. 56- 02 establishes that the in-lieu fee per unit is adjusted annually on July 1 to reflect the greater of the percentage change either in a) the Bay Area Urban Consumer Price Index (CPI) as of March of each yeaz, orb) the United States Department of Housing and Urban Development (HUD) Fair Market Rent limits for the Oakland Primary Metropolitan Statistical Area (PMSA) that aze in effect at the time, The fee as of July 1, 2004 is $82,466 per Inclusionary Unit. Apri129, 2005 ~~ ,__ ,~, THE ENTIRE IN-LIEU FEE AMOUNT FOR THE PROTECT IS DUE AND PAYABLE AT ISSUANCE OF FIRST BUILDING PERMIT IN THE PROJECT. Using the examples from Figures 1 and 2, Figure 3 illustrates how to calculate the amount of the in-lieu fee. FIGURE 3 Ezample 1: The developer proposes a 224unit subdivision. Fees may be paid in lieu of construction on 11 waits. 11 X $79,754 = $877,294, which is the amount of the in-lieu fee for the project. This entire amount would be due prior to issuance of first building permit. Ezample 2: The developer proposes a 316-unit subdivision. Fees may be paid in lieu of construction on 16 units. 16 X $79,754 = $1,276,064, which is the amount of the in-lieu fee for the project. This.entire amount would be due prior to issuance of first building permit. 1.5 How to Calculate How Marv Inclusionary Units Must Be Provided at Each of the Three Income Levels The Regulations (Section 8.68.030.B) state that the Inclusionary Units included. in each development project shall be allocated to households in the following manner. Very low-income households 30% Low-income households 20% Moderate-income households 50%' 100% Once again, when the result of the allocation calculations includes a decimal fraction, the rounding rules contained in Section 8.68.030.A are used. The Regulations indicate that, where the allocation results in fewer units than would otherwise be required; one additional unit should be allocated to the lowest income level with the decimal fraction closest to 0.50. (Section 8.68.030.B) Figure 4 illustrates how to calculate the number of units that must be provided at each income level and how the rounding requirement is implemented. April 29, 2005 4 ~~ ~ ~ -~ FIGURE 4 The project includes 200 units. The Inclusionary Unit obligation is, therefore, 25 units. The developer chooses to pay the in-lieu fee for 40% of the units, which equals 10 units. The developer's must-build requirement (7.5%) is, therefore, 15 units. 50% of those 15 units would need to be restricted for moderate-income households, 50% of 15 = 7.5 20% of those 15 units would need to be restricted for low-income households, 20% of 15 = 3 30°/v of those 15 units would need to be restricted for very low-income households, 30% of 15 = 4.5 7.5+3+4.5=15 Since two of these numbers are fractions at exactly .5, the City of Dublin would require that the unit be provided in the lower income category. In this example the income- unit mix would be: • 7moderate-income units • 31ow-income units • 5 very low-income units 1.6 How to Determine the Unit Sizes and bedroom requirements for Inclusionary Units The Regulations require that the same proportion of bedrooms be reflected in the Inclusionary units as are in the market rate units.'Once again, the rounding conventions in Section 8.68.030.A are used, if the allocations result in decimal fractions. Figure 5 illustrates how to determine the number of Inclusionary Units that must be provided at each unit size. Apri129, 2005 ~~ ~ ~ ~~ ~. FIGURE 5 To determine bedroom requirement: The developer proposes a 200-unit condominium project and is paying in-lieu fees for 40%. T'he must build obligation.is 15 units. The project includes: • 50 one-bedroom units (25 % of total) • 100 two-bedroom units (50% of total) • 50 three-bedroom units (25% of total) Therefore: • 25% of the Inclusionary Units are to be one-bedrooms • 50% of the Inclusionary Units are to be two-bedrooms • 25% of the Inclusionary Units are to be three-bedrooms To determine bedroom requirement per Income category: If 5 of the units are very low-income, using the percentages above the requirement for bedrooms aze: • 25% of 5 = 1.25 one-bedroom units • 50% of 5 = 2.5 two-bedroom units • `25% of 5 = 1.25 three-bedroom units Therefore, the development would be required to provide: • lone-bedroom unit • 3 two bedroom units • l three bedroom unit The same calculation is performed to determine the bedroom sizes of the low- income and moderate-income units. 1.7 Iiow to Determine the Location of Inclusionarv Units Within the Development Section 8.68.030.E states that "All affordable units shall be reasonably dispersed throughout the project." The purpose of this provision is to avoid concentration of the Inclusionary Units in a particular location within a development, effectively segregating them from the rest of the development project. There are many ways in which to implement this requirement and consultation with Community Development Department Staff is recommended prior to developing the final site plan. Ultimately, the Planning Commission or City Council will make a determination based on Staff recommendation if this requirement has been met. Apri129, 2005 6 ~~ ~ ~~ . 2 AFFORDABLE HOUSING AGREEMENT The execution of an Affordable Housing Agreement ("Agreement") is required under Section 8.68.50 of the Dublin Municipal Code. This requirement is generally repeated in the Conditions of Approval for the Site Development Review or Tentative Map for the development project for the developer's convenience. 2.1 What is an Affordable Housing Agreement This agreement contains the legal requirements of the residential project for compliance with the Inclusionary Zoning Ordinance regulations. This Agreement runs with the land and survives transfer or sale of the Iand to another developer. The Agreement is for a period of 55 years. If a project is not built and new entitlements aze sought for a property, a new Affordable Housing Agreement would be required, which would replace the existing Agreement. Among other things, the Agreement must contain the following items: 1. A description of how the developer will comply with its Inclusionary Obligation (whether through unit construction and/or partial payment); 2. An indication of whether the Inclusionary Units will be for-sale or rental units; 3. A requirement that the developer construct the number of Inclusionary Units required to be constructed in each income category; 4. A requirement that the developer construct Inclusionary Units at particular unit sizes (i.e., number of bedrooms) in each income category; 5. Depending on the nature of the development, requirements regarding the timing of construction of the units to ensure that the units are constructed concurrently with the development of the project as a whole; 6. If the development proposes for-sale units, a requirement that the developer prepare and obtain City approval of a Marketing Plan, prior to issuance of any building permits in the project, indicating efforts to be made by the developer to sell or rent the Inclusionary Units. This requirement is discussed in additional detail in Section 2.2 below; 7. If the development proposes for-sale units, it is required that the developer ensure that the purchaser of an Inclusionary Unit execute a resale agreement. A copy of the form resale agreement is attached as Exhibit No. 1; and 8. If the development proposes rental units, the owner shall provide a Management Plan and prepare the Annual Report required by Section 8.68.OSOB. The Management Plan documents how the management firm mazkets the Inclusionary Units, how the firm maintains a waiting list for the Inclusionary units, how the management firm verifies the household income of applicants for the Inclusionary Units, both initially and annually, provides information on the units to be made. available for the City of Dublin to use on the City website, provides a contact telephone number and also identifies those responsible for contact and communication with the City of Dublin. Upon approval of the City Staff, the Apri129, 2005 7 . ~ ~„~ .. Management Plan may be produced and submitted after the Affordable Housing Agreement is executed, but prior to the issuance of building permits. 3 FOR SALE PROJECTS After the Affordable Housing Agreement is executed, and prior to the sale of any affordable units in the project there is a process that must be followed that includes preparation of a Mazketing Plan, screening, ranking, qualifying and providing documentation to Housing Staff for final verification of eligibility for an Inclusionary Unit. 3.1 The Marketing Plan Prior to the issuance of building permits for any for-sale Inclusionary Units, the developer shall submit a Marketing Plan for the City's approval. The Marketing Plan must contain the following: 1. A one-page narrative summary suitable for advertising the availability of the Inclusionary Units on the City web page and other locations, including a telephone number for interested applicants to call for additional information; 2. An explanation of the application process to be used. The Regulations require that applicants be ranked based on preferences set forth in the ordinance (Section 8.68.OSO.D); 3. The developer must indicate the process by which it intends to accept applications and rank applicant households. In order to establish an eligibility list, it will be necessary that application deadlines be established for each phase of a development that includes Inclusionazy Units; 4. Timelines for buyer selection. If the development is a phased project, information must be provided on the number of phases and the timelines for those phases; and 5. A requirement that the developer's sales staff meet with the City's Housing Staff to receive training on the sale selection process and application. (See Exhibit No. 2) 3.Z Appiications for Ownership Units Each applicant shall be required to complete an application. Ezhihit No 3 is a sample application for the purchase of an Inclusionary Unit. An applicant receives: • Explanation of the process used in occupant selection; Eligibility requirements for interested buyers; Apri129, 2005 • The income levels for the various units; • The City preferences in occupant selection as established in the Regulations (Section 8.68.OSO.D); • Any floor plans for the offered units; • The City's "Application for Inclusionary Unit"; and • The Disclosure Statement from the Resale Agreement. It is important that the developer's sales staff be able to understand the application process. Pursuant to the Marketing Plan, the Housing Staff will have provided the developer's sales staff with training so that they understand and can explain the application process. The developer's sales staff should be able to explain the resale restrictions that are contained in the Resale Agreement that each buyer would need to execute. The developer may rank applicants based on the criteria that are set forth in their Mazketing Plan. For example, the developer might only accept those applicants that are mortgage pre-qualified by a lender or other methods. Once the applicants are ranked, the developer must use this list and offer the units to the highest ranked household as long as these households are able to verify that they are in the correct income category and are able to obtain a loan for the unit. (Acceptable Home Loan Products are discussed in Section 4.2). The sale prices ofthe units will varYdeyendi~ on the income o each prospective household offered a unit. Figure 6 illustrates how the selection process works. (See following page) Apri129, 2005 9 ~~~ ~:: FIGURE 6 Step 1. A developer decides to accept Inclusionary Unit applications for a particular period of time and advertises, as set forth in the Marketing Plan. Step 2. The developer makes application packets available to all who request them The developer will also provide application packets to the City for distribution at City Hall and the Library. Step 3. The applicant response period ends. The developer will sort and establish a list of all qualified applicants within one month following closin¢ of applicant list. This initial screening will qualify applicants based on low, very low or moderate income as the case may be for the particulaz unit) and whether the household is the appropriate size for the particular unit. If the developer has established in the Marketing Plan that they will accept only mortgage pre-qualified applicants, this will be reflected in the list as well. Step 4. All qualified applicants within each income. category will be ranked by the preference categories in the Regulations. Those applicants with the highest number of points are at the top of the list and others follow in descending order based on the number of points given. Step S. Units are offered to applicants beginning at the top of the list. The developer ma not pass over an applicant higher on a list in favor of another because of a higher income. Applicants are to be taken in the order ranked. The developer may only exclude ranked applicants because the applicants were not successful in obtaining financing or were not able to demonstrate their qualifying household income. Step 6. If the applicant accepts the unit, the applicant's file, ready to enter into escrow, is delivered to the City of Dublin Housing Staff for review and confirmation. Step 7. Applicant's files are returned to developer and escrow may begin for each qualified applicant for the unit. 3.3 Screenins? Based on Honse6old Slze For both rental and for-sale units, household size for each Inclusionary Unit may not exceed two people for each bedroom and may not be less than one person per bedroom, unless otherwise prohibited by special financing sources such as the California Multifamily Housing Program. Selection of applicants will be limited to those households that match the number of bedrooms in the units being constructed for sale. The following household sizes for various units sizes are used: Apri129, 2005 10 ~a ~ a7o One-bedroom units 1-2 people households Two-bedroom units 2-4 people households Three-bedroom units 3-6 people households Four-bedroom units 4-8 people households 3.4 Screening Based on Priority Preferences After being screened for initial eligibility based on household income and household size, applicant households shall be ranked and sorted based on the number of points the applicant receives under the priorities set forth in the Regulations at Section 8.68.OSO.D. If priority categories are checked on the application form, the developer will be required to request verification of that claimed preference from the applicant and the form letter requesting verification attached as Exhibit No 4 may be used for this purpose. This verification maybe requested at the initial application or at a later date, after the developer has performed a preliminary review of all applicants. The point system set out in the Regulations (see Table 1) provides preferences to those persons who live in Dublin, work in Dublin, are public-service employees in Dublin, are seniors, are permanently disabled, are an immediate family member of a Dublin resident, and/or are being required to relocate from current Dublin residence due to demolition of dwelling or conversion of dwelling from rental to for-sale (lpoint, one per household). The Regulations provide that even if two persons in the household may be eligible to receive priority points, the points are only awarded for one person. For example, if a husband and wife are both employed in Dublin, the couple receives only 3 points for being employed in Dublin. Similarly, if two seniors make up a household, they would be entitled to only 1 point. Table 1: The Priority Point System Priority Points Employed in Dublin 3 points Public service employee in Dublin 1 additional • point Resides in Dublin 3 points Seniors (62 and over) 1 point Pem~attently disabled 1 point Have an immediate farrrily who is a Dublin residrnt 1 point & has continuously lived in Dublin the past year Must move because housing is to be demolished or 1 point converted to condo Definitions of the various priority categories are set forth in the Regulations, Section 8.68.OSO.D as follows: • To qualify as employed in Dublin the person shall have been employed within the City of Dublin for at least six months. • To qualify as a public service employee the person shall be employed by a public agency. • To qualify as a Dublin resident, the person shall have been a resident of the City of Dublin for at least cone-year period prior to the eligibility determination. Apri129, 2005 11 • To qualify as a relocated Dublin resident, the person shall have been relocated from the current Dublin residence due to demolition of dwelling or conversion of dwelling from rental to for-sale unit. Where definitions are not explicitly stated in the Regulations, the City has developed definitions: A senior is defined as a person 62 years or older for the purpose of qualifying for preference points. To qualify for the permanently disabled point, the person must be able to provide written verification from a physician or show receipt of SSI. Immediate family is defined as a mother, father, brother, sister, child, grandparent or grandchild. Figure 7 demonstrates how the preference points are calculated. FIGURE 7 Ezample 1: An applicant for an Inclusionary Unit both lives in Dublin (for at least one year) and works in Dublin (for at least 6 months). This individual will receive the following points: Lives in Dublin 3 points Works iII Dublin 3 points Total number of points 6 points Ezample 2: An applicant for an Inclusionary Unit works in Dublin and is a schoolteacher. This individual will receive the following points: Works in Dublin 3 points Public Service Employee 1 point Total number of points 4 points Ezample 3: An applicant for an Inclusionary Unit is a senior citizen (62 years old} and lives in the City of Dublin (for at least one year). This individual will receive the following points: Senior citizen 1 point Lives in Dublin 3 points Total number of points 4 points Apri129, 2005 12 ~~ ~ ~4-~~ 3.5 Buver Selection Process The developer locates and finally selects purchasers pursuant to the Inclusionary Zoning Regulations. The restricted units are to be made available to very low, low, and moderate income households. The developer must verify that the prospective occupants' income is/are appropriate for those categories: This verification must consist of evidence based on some third party source such as income tax returns or W-2 statements. Froof that the developer has requested and obtained this verification from prospective occupants will be requested by the City Housing Staff prior to final approval of occupancy in any Inclusionary unit. The selection process requires the developer to use the following process: • Collect applications for a given time period. An initial qualification is made based on household size (See Section 3.1) and household income'(see Section 4.1). Sort and rank the applications based on the Inclusionary Zoning Regulations' preferences for occupant selection. Complete the ranking process and produce a list with those applicants with the most City of Dublin preference points at the top followed by all other applicants in descending order based on number of points received. If more than one applicant receives the same number of City preference points or if some applicants receive no points, the developer shall use other objective criteria in occupant selection. The criteria that the developer proposes to use shall be submitted to City Staff ahead of time in the Marketing Plan. For example, the developer may date stamp all applicant applications and, in the case of a tie, will offer the unit to that applicant that applied first, or the developer may choose to hold a lottery to break ties. • -The ranked list must be completed within 30 days of the application deadline. • Offer the units to applicants based on the list established above, offering first to those applicants with the most points, then in descending order. • Provide application with income verification, executed Resale Agreement and final sale price offered as well as loan product to be used to City for final determination of eligibility. If all needed documents are included, the City will return to developer or agent within a week if possible. 4 ESTABLISHING SALES PRICE AND LOAN REQUIREMENTS FOR OWNERSHIP UNITS 4.1 Sales Price of Affordable Units The Inclusionary Ordinance (Section 8.68.020A.2) states that the price at which the Inclusionary Units are to be offered is the price that would allow an applicant in the Apri129, 2005 13 r;,~ ,~ kta 7~~ pertinent category to pay no more than 35% of their income toward housing expenses. This requires that each and every qualified buyer pay no more than 35% of his or her individual household income toward housing expenses. The only exception is very-low income applicants. Units for very-low income applicants will be priced using the maximum in the low income level adjusted for household size as total housing expenditures. As descnbed below, a number of assumptions aze used to calculate the maximum-sale price for inclusionary units. An individual homebuyer's actual expenses may differ from the assumptions. For example, the actual interest rate may be lower if the homebuyer obtains a variable interest rate mortgage. In addition, the actual downpayment may be more or less than the assumed S%, and the mortgage term may be less than 30 years. The assumptions are used for the purpose of establishing a standardized method of amving at a sales price, and are not intended to limit the choices that a buyer may utilize or to limit the mortgage products or downpayments that a developer may accept. Following lending industry standards, housing expenses consist of "PITT," or principal, interest, taxes and insurance. The City of Dublin also includes Homeowner Association dues as a housing expense. The maximum sale price is the price that will allow the homebuyer to purchase an incIusionary unit by paying no more than 35% of their household income for PITT and Homeowners Association dues, based upon the following assumptions. The only exception is very-low income applicants. Units for very-low income applicants will be priced using the maximum in the low income level adjusted for household size as total housing expenditures. • Downpayment (For the purpose of calculating the sale price of a home or condominium, it is assumed that the prospective buyer will make a 5% downpayment. The developer may accept altenYate amounts for actual downpayments.) • Interest (Based on the weekly 30-year fixed rate published by the Federal Home Loan Mortgage Corporation, (703) 903-2446. The actual interest rate may vary.) • Mortgage Term (A 30-year term is assumed. The actual tenor may differ.) • Taxes (Calculated using 1.25% of the estimated sale price of the unit.) . • Insurance (Includes Private Mortgage Insurance (PMT), if any, and homeowners hazard insurance. PMI -For the purposes of calculating sale price, PMI may be calculated at 2% of the estimated loan, or the amount actually required by a given loan product being offered. o Homeowner's Insurance -The cost of homeowner's insurance may be calculated based on information researched by each developer, as to what an Apri129, 2005 14 ~ ~ ~7 actual policy may cost a new homeowner. (If the homeowner insurance is covered by a homeowner association structure, homeowners insurance need not be included, but it must be documented that the HOA will provide adequate insurance.) Homeowners' association dues, if any. The City has an Excel spreadsheet, available for public use, which can assist in the calculation of the final sales price, based on the listed criteria and housing expenses (Exhibit No 5~. Each Inclusionary Unit may sell at a different sale price, depending on the household income of the selected household. Figure 8 shows how the sales price is calculated (see following page). FIGURE 8 This. example is of afour-person household qualifying to purchase atwo-bedroom unit, This household's gross income is $89,000. The maximum income for afour-person $98,650 moderate income household (using State HCD 2004 income limits) Household's annual income (hypothetical) $89,000 Monthly income available for housing $2,595.83 expenses: (35% of $89,000 = $31,150; $31,150 divided by 12 = $2,595.83) Developer wishes to sell home at: $300,000 Down Payment (for calculation of sales price 15 000 only - S%) Mortgage Required $ 285,000 Calculation: Monthly mortgage payment (based on $1,708.72 $285,000, 30-year fixed at 6% interest) Other Monthly Housing Expenses: • Private Mortgage Insurance $ 191.43 • Property Tax (1:25% of sales price) $ 312.50 • Homeowners Insurance (based on $ 166.67 demonstrated market rates) • Homeowners Association Dues 200.00 Total monthly expenses: $2,589.75 $2,589.75 is less than the buyer's monthly income available for housing expenses of $2,595.83, therefore, the sales vrice is in accordance with the Inclusionarv Zonine Ordinance requirements, kxF ~'f ba+~' Apri129, 2005 15 _ r r .rte - 4.2 Acceatable Home Loan Products for Inclusionarv Zoning Units The City reserves the right to reject certain mortgage products because of the stronger likelihood that some products could result in loss of the Inclusionary Unit due to a foreclosure. The following is anon-exclusive list of the loan products that are acceptable to the City. The List is not intended to be exhaustive and other loan products may be evaluated upon request. 1. 97-100% Loan to Value Loans 2. 90-97% Loan to Value Loans 3. Up to 95% Loan to Value Loans 4. Adjustable Rate Mortgages • Twa-Step Mortgage (adjusts only once -depends on rate adjustment) • Six Month ARM (Depending on initial interest rate, adjustment caps and lifetime caps) • One Year ARM (Depending on initial interest rate, adjustment caps and lifetime caps) • Fixed-Period Adjustment Rate Mortgages (Depending on adjustment rates, caps and lifetime caps): In evaluating ARMS the City will consider the effect of the mortgage provisions on the ability of the buyer to make payments • Pledged-Assets Mortgages • Virtually all CaII~A products available to First Time Homebuyers in California 4.3 Closine of Sale and Escrow Once the Inclusionary Unit buyer has been selected and price calculated, the necessary documents must be completed and buyer fully qualified for the mortgage. When the buyer is fully qualified and ready to enter into an agreement to purchase, the qualifying packet is sent to the City of Dublin Housing Staff for review. The documents necessary for Housing Staff review are the following: 1. Completed and Signed Application for Inclusionary Unit; 2. Completed and signed loan application; 3. Completed Truth in Lending Statement; 4. Complete Income Verification .information on household; 5. Complete information on unit offered to prospective buyer, including unit size, number of bedrooms and additional amenities; 6. Completed, executed, and notarized City of Dublin Resale Restriction Agreement and Option to Purchase; and 7. If claiming an Inclusionary Preference, verification of that preference (covered in Section 3.0). April 29, 2005 16 City Staff will review the packet for completeness and compliance with the Inclusionary Zoning Ordinance. The ApnIication for Inclusionar~Unit will be removed from the packet and retained as part of City records. A copy of the income verification for the household will be made and retained by the City as proof of the buyer's qualification to purchase the Inclusionary Unit. The original signed Resale Agreement will also be retained by the City and a copy returned to the lender. If the City receives a completed packet, the review will be completed and file returned to developer within one week of the submittal if possible. The Resale Agreement along with a Request for Notice of Default will be recorded on closing of each sale. IF THE PACKET IS INCOMPLETE, THE SALE CANNOT PROCEED UNTIL ALL NEEDED DOCUMENTS ARE PROVIDED. The documents will be returned to the lender, with a copy of the City's Escrow Instructions for the recording of the Resale Agreement. City Staffwill contact the lender to establish whom the escrow and/or title firm is that will be in charge of closing the sale. City Staffwill send the original Resale Agreement to that firm with the Escrow Instructions for recordation on closing of the sale. 5 RENTAL PROJECTS After the Affordable Housing Agreement is executed, and prior to the rental of any units in the project there is a process that must be followed that includes prepazation of a Management Plan, screening, ranking and qualifying of eligible tenants. 5.1 Preuaration and Annroval of Management Plan The Management Flan will outline for the City how the management entity plans to recruit and maintain occupancy of the Inclusionary Units. The document will also provide a brief history of the management entity and previous experience as well as list other rental complexes that are under their management. 5.2 Establishing Unit Rents for Inclusionarv Units The Inclusionary Ordinance (8.68.020A.1) states that rents for Inclusionary Units may not exceed 30% of the maximum income level for very low, low and moderate income. The City of Dublin uses the State of California Housing and Community Development Income Guidelines by County. The Income Guidelines for 2005 are attached as Exhibit No 6. 5.3 Screening Based on Household Size For both rental and for-sale units, household size for each Inclusionary Unit may not exceed two people for each bedroom and may not be less than one person per bedroom, April 29, 2005 17 M ~~~?~~~ unless otherwise prohibited by special financing sources such as the California Multifamily Housing Program. Selection of applicants will be limited to those households that match the number of bedrooms in the units being constructed for sale. The following units household sizes for various units sizes are used: One-bedroom units 1-2 people households Two-bedroom units 2-4 people households Three-bedroom units 3-6 people households Four-bedroom units 4-8 people households 5.4 Screening Based on Priority Preferences After being screened for initial eligibility based on household income and household size, applicant households shall be ranked and sorted based on the number of points the applicant receives under the priorities set forth in the Regulations at Section 8.68.OSOD. If priority categories are checked on the application form, the developer will be required to request verification of that claimed preference from the applicant and the form letter requesting verification attached as Exhibit No. 4 may be used for this purpose. This verification may be requested at the initial application or at a later date, after the developer has performed a preliminary review of all applicants. The point system set out in the Regulations (see Table 1) provides preferences to those that live in Dublin, that work in Dublin, that are public-service employees in Dublin, that are seniors, and that are permanently disabled. The Regulations provide that even if two persons in the household maybe eligible to receive priority points, the points are only awarded for one person. For example, if a husband and wife are both employed in Dublin, the couple receives only 3 points for being employed in Dublin. Similarly, if two seniors make up a household, they would be entitled to only 1 point. Table 2: The Priority Point System Priority Points Employed in Dublin 3 points Public service cmployee in Dublin 1 additional point Resides in Dublin 3 points Seniors (62 and over) 1 point Penroanently disabled 1 point Have an immediate family who is a Dublin 1 point resident and has continuously lived in Dublin the past year Must move because housing is to be demolished or 1 point converted to condo Definitions of the various priority categories are set forth in the Regulations, Section 8.68.OSO.D. • To qualify as employed in Dublin the person shall have been employed within the City of Dublin for at least six months. • To qualify as a public service employee the person shall be employed by a public agency. Apri129, 2005 18 ~~ . • • To qualify as a Dublin resident, the person shall have been a resident of the City of Dublin for at least aone-year period prior to the eligibility determination. • To qualify as a relocated Dublin resident, the person shall have been relocated from the current Dublin residence due to demolition of dwelling or conversion of dwelling from rental to for-sale unit. Where definitions are not explicitly stated in the Regulations, the City has developed definitions: A senior is defined as a person 62 years or older for the purpose of qualifying for preference points. To qualify for the permanently disabled point, the person must be able to provide written verification from a physician or show receipt of SSI. Immediate family is defined as a mother, father, brother, sister, grandparent or grandchild.. Figure 9 demonstrates how the preference points are calculated. FIGURE 9 Ezample 1: An applicant for an Inclusionary Unit lives in Dublin (for at least one year) and works in Dublin (for at least 6 months). This individual will receive the following points: Lives in Dublin 3 points Works in Dublin 3 uoints Total number of points 6 points Ezample 2: An applicant for an Inclusionary Unit works in Dublin and is a schoolteacher. This individual will receive the following points: Works in Dublin 3 points Public Service Employee point Total number of points 4 points Ezample 3: An applicant for an Inclusionary Unit is a senior citizen (62 years old) and lives in the City of Dublin (for at least one year). This individual will receive the following points: Senior citizen 1 point Lives in Dublin 3 points Total number of points 4 points Apri129, 2005 19 5.5 Occupant Selection for Rental Developments In rental developments, the management firm (which could be the owner or builder) is the entity that will be responsible for occupant selection and documentation. The Management Plan for the development will outline how tenants will be selected and prioritized to comply with the Regulations' preferences. Each applicant shall complete the Application for Inclusionary Unit and return it to the management company. Exhibit No 3 is a copy of the Application for Inclusionary Unit. The management company's leasing staff should be trained to understand and explain the Affordable Housing Application and process to applicants. To lease the Inclusionary Units the developer/management company will need to do the following: • Collect applications for a given time period. An initial qualification is made based on household size (See Section 5.3) and household. income (see State of California, Housing and Community Development Department website, www.hcd.ca. og_v); Sort and rank the applications based on the Inclusionary Zoning Regulations' preferences for occupant selection. Complete the ranking process and produce a list with those applicants with the most City of Dublin preference points at the top followed by all other applicants in descending order based on number of points received. If more than one applicant receives the same number of City preference points or if some applicants receive no points the developer shall use other objective criteria in occupant selection. The criteria that the developer will use in the event of a tie shall be submitted to City Staff ahead of time in the Management Plan. For example, the developer may date stamp all applicant applications and, in the event of a tie, will offer the unit to that applicant that applied first, or the developer may choose to hold a lottery to break ties. ~ The ranked list must be completed within 30 days of the application deadline; • Offer the units to applicants based on the list established above, offering first to those applicants with the most points, then in descending order; and • Maintain application with income verification for City to review at onsite monitoring. If a project is financed through a program that has stricter occupant selection or occupant documentation requirements than the City, the City may elect to defer to those requirements and not require additional documentation. The City will require tenant income verification and restriction of the units for 55 years for the three income categories; however; the management firm may send to the City copies of the documentation that is required and produced for other monitoring agencies. Apri129, 2005 20 8z~ ~~~.~ 5.6 Calculatin¢ Affordable Rents Affordable rents are calculated by multiplying the annual household income of the income-qualifying household by 0.30, then dividing by 12. The result is the maximum monthly rent for the Inclusionary Unit if the tenant pays no utilities. The Inclusionary Zoning Ordinance Regulations state that maximum rents cannot exceed 30% of household income for the maximum income in a given category. Following rental programs such as HUD's Section 8 or the Tax Credit Allocation Committee rental tables, reduction in rental amounts are taken if tenants are required to pay utilities. If tenants pay for utilities, the maximum rent must be reduced to account for the cost of utilities (a utility allowance). Utilities include gas, electric, water, and trash disposal. If tenants are required to provide their own stove, refrigerator, or washer and dryer, those expenses are considered utilities, and the maximum rent is further reduced. If the tenant is responsible for any of the above, an allowance reduces the rent by the amounts listed in Exhibit No. 7'. Figure 10 illustrates the calculation of maximum rent. FIGURE 10 Example is A developer provides 2 bedroom rental units for moderate-income households. The developer establishes a tenant eligibility list and for moderate-income the first household on the list for atwo-bedroom unit is a family of four with an annual income of $9.1,900. Thirty percent of $91,900 is $27,570, and 1112 of $27,570 is $2297.50. This would be the maximum monthly rent. The maximum rent could be charged to this household ijthe household were not responsible jor any utilities. Example 2: Following on Example 1, the maximum rent for the moderate-income unit for a household of four was $2297.50, but this development requires tenants to pay electric, gas and water and water heating (gas) bills. The heating and cooking are both gas. The management pays for trash, provides the refrigerator and the stove. Using the current Utility Allowance in Exhibit 7, the following amounts are to be deducted from the maximum monthly rent. $2,297.50 gas heating (2 bdrm) $ 12.00 gas cooking " $ 2.00 gas water heating " " $ 10.00 water $ 14.00 ' $2,259.50 The rent that may be charee to this household could not exceed $2.259.50 monthly. The Utility Allowances are established by the Housing Authority of Alameda County and revised periodically. The most current Utility allowances for Alameda County may be accessed at the following web site: http//www.hacanet., thrn click on statistics. Apri129, 2005 21 5.7 Monitoring Rents The Inclusionary Ordinance (Section 8.68.OSO.B) states that the management entity for the development will provide the City of Dublin an Annual Report (Exhibit No 8). The annual report will include the following information: 1. Income of BMR tenant households, reviewed annually; 2. Identification of all Inclusionary Units (very low-, low- and moderate- income units) within the development; 3. Monthly rents charged to all BMR tenant households; and 4. Vacancy of Inclusionary Units during the previous year. This report will be due annually on October 31st. The City of Dublin Housing Staff will send a reminder letter to the management firm, with a copy of the Annual Report form for completion and certification at least three months prior to the anniversary date. This form must be completed and returned to the City by the a~iversary date. G:~PAAA2001~A1-0381~rclusionary ZOAUnclusionuy Guidelinesllmlusionary Guidelmes -Final on 429-0S.doc Apri129, 2005 22 g~~ _~~~ RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF DUBLIN, 100 Civic Plaza Dublin, Califomia 94568 Attn: City Clerk To be recorded without fee. (Space Above This Une For Recorders Use Only) (Gov. Code, §§ 6103 and 27383.) RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE Owner: Property Address: Dublin, Califomia Name of Development: Positano This RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE ("Agreement°) is entered into by and between the CITY OF DUBLIN, a Califomia municipal corporation (the "City") and ("Owners) regarding certain improved real property which is more particularly described in Exhibit A attached hereto and incorporated herein and commonly known as ,Dublin, CA, (the "Property") effective as of , 20 ("Effective Date"). City and Owner are hereinafter collectively referred to as the "Parties." RECITALS A. The City has Inclusionary Zoning Regulations (Dublin Municipal Code Chapter 8.68) (the "Regulations") that require developers of rental and ownership housing to construct within their projects units that are affordable to very low-, low-, and moderate- income households ("the Program"). To further its goal of creating affordable home ownership opportunities for very low-, low-, and moderate-income persons and families, the City has initiated a program for the sale of some homes at a price below their market rate ("Program"). Pursuant to the Program, developers of housing developments agree to set aside a certain number of units for purchase or rent, as applicable, by very low-, low-, and moderate-income persons and families, as defined herein. B. Owner is an eligible [very low-, low- ormoderate-]income purchaser under the Program, intends to live in the Property as an owner occupant, and agrees to maintain the Property as Owner's principal residence. ssas4s.2 -1- Form Revised May 21, 2007 Exhibit 7 ~~ ~ ~~ ~.~ s~w~^ C. {n order to maintain and preserve the Property as housing affordable to ,eligible [very low-, low-, or moderate-)income purchasers, it is necessary to restrict the use and resale of the Property through imposition of the occupancy and resale restrictions set forth herein. These restrictions are intended to prevent initial and subsequent purchasers from using the Property for purposes incompatible with the Program and realizing unwarranted gains from sales of the Property at unrestricted prices. The terms and conditions of this Agreement are intended to provide the necessary occupancy and resale restrictions to ensure that the Property is used, maintained, and preserved as housing affordable to eligible [very low-, low-, ormoderate-)income purchasers. To further serve the purposes of the Program, it is necessary that the City be granted an option to purchase the property so that the property may be resold by the City to an eligible household. D. The Property constitutes a valuable community resource by providing decent, safe, and sanitary housing to persons and families of [very low, low, or. moderate] income who otherwise would be unable to afford such housing. To protect and preserve this resource it is necessary, proper, and in the public interest for the City to administer occupancy and resale controls consistent with the Program and the Regulations by means of this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the substantial economic benefits inuring to Owner and the public purposes to be achieved under the Program, Owner and. City hereby agree as follows: 1. Definitions. a. "Affordable Unit Cost" shall be as defined in the Regulations, as follows: "Owner-occupied units are deemed affordable units if the sales price results in annual housing expenses that do not exceed 35% of income level for very-low-, low-, and moderate-income households, adjusted for household size and as defined below. For very low-income owner occupied units, the unit shall be deemed an affordable unit if the sales price results in annual housing expenses that do not exceed 35% of the maximum in the very low-income level, adjusted for household size and as defined below." b. "Area [Very Low, Low, or Moderate] Income for Alameda County" means those income and eligibility levels determined, updated, and published each year by the California Department of Housing and Community Development, based on Alameda County median income levels, adjusted for household size. c. "Persons and families of [very low, low, or moderate) income" means persons and families whose income does not exceed jfifty percent (50%); eighty percent {80%); or one hundred twenty percent (120%)] of the Area Median Income for Alameda County, as adjusted for household size. 9sasas2 -2- Form Revised May 21, 2007 d. Persons and families meeting the definition set forth in Paragraph 1.b above shall be referred to as "Eligible Households." 2. Program Requirements. a. Affordability Restrictions. Owner hereby covenants and agrees that during the term of this Agreement all of the requirements and restrictions of this Agreement shall apply, and the Property shall be sold or otherwise transferred only pursuant to the terms and conditions of this Agreement and only to (i) Eligible Households at a price not to exceed the Adjusted Resale Price, as defined in Paragraph 5, (ii) the City pursuant to Paragraph 3, at a price not to exceed the Adjusted Resale Price, as defined in Paragraph 5, or (iii) a permitted transferee pursuant to Paragraph 9. b. Disclosure. DURING THE TERM OF THIS AGREEMENT THERE SHALL BE NO SALE OR OTHER TRANSFER OF THE PROPERTY WITHOUT THE WRITTEN CERTIFICATION BY THE CITY THAT THE TRANSFEREE QUALIFIES AS AN ELIGIBLE HOUSEHOLD AND THAT THE PROPERTY IS BEING TRANSFERRED AT A PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE, WHICH IS CAPPED AT THE AFFORDABLE UNIT COST AS DEFINED IN PARAGRAPH 1.a. ANY SALE OR OTHER TRANSFER OF THE PROPERTY IN VIOLATION OF THIS COVENANT SHALL BE VOIDABLE BY THE CITY. c. Principal Residence Requirement. OWNER COVENANTS AND AGREES THAT HE/SHE/THEY SHALL OCCUPY THE PROPERTY AS HIS/HERlTHEIR PRINCIPAL RESIDENCE FOR THE DURATION OF HIS/HERlTHEIR OWNERSHIP AND SHALL NOT RENT OR LEASE THE PROPERTY OR PORTION THEREOF DURING THE TERM OF THIS AGREEMENT WITHOUT PRIOR WRITTEN APPROVAL OF CITY. Without limiting the generality of the foregoing, any absence from the Property by Owner for a period of ninety (9Q) or more days shall be deemed an abandonment of the Property as the prinapal residence of Owner in violation of the conditions of this Paragraph. Upon request by the City made from time to time, the Owner of the Property shall submit an affidavit to the City certifying that the Properly is the Owner's principal residence and provide such documents and other evidence as may be requested to verify Owner's compliance with this requirement. Abandonment of the Property shall constitute an Option Event (as defined in Paragraph 3.c below) and shall entitle the City to exercise its Option to purchase the Property. 3. Option to Purchase. a. Grant of Option to Purchase. Owner hereby grants to the City an option ("Option") to purchase all of Owner's right, title and interest in and to the Property upon the occurrence of an Option Event (defined in Paragraph 3.c below), subject to the terms and conditions contained herein. b. Assignment of the Option. The City may assign the Option to another government entity, anon-profit affordable housing provider or a person or family that qualifies as an Eligible Household. The City's assignment of the Option shall not extend any time limits contained herein with respect to the exercise period of the Option or the period within which the Property must be purchased. ssas4s.2 -3- Form Revised May 21, 2007 $-,~ :~ ,f:;~ c. Events Giving Rise to Right to Exercise Option. The City shall have the right to exercise its Option upon the occurrence of any of the following events (each, an "Option Event"): i. Receipt of a Notice of Intent to Transfer (defined in Paragraph 3.d.i below); ii. Any actual, attempted or pending sale, conveyance, transfer, lease or other attempted disposition of the Property or of any estate or interest therein, except as provided in Paragraph 10 below; iii. Any actual, attempted or pending encumbrance of the Property, including without limitation by way of mortgage or deed of trust, or by judgment, mechanics, tax or other lien, except as provided in Paragraph 9 below; iv. Recordation of a notice of default and/or notice of sale pursuant to California Civil Code section 2924 (or successor provisions) under any deed of trust or mortgage with a power of sate encumbering the Property; the Property; v. Commencement of a judicial foreclosure proceeding regarding vi. Execution by Owner of any deed in lieu of foreclosure transferring ownership of the Property; vii. Commencement of a proceeding or action in bankruptcy, whether voluntary or involuntary, pursuant to Title 11 of the United States Code or other bankruptcy statute, or any other insolvency, reorganization, an'angement, assignment for the benefit of creditors, receivership or trusteeship, concerning the Owner; or viii. Any violation by Owner of any provision of this Agreement including, without limitation, the conditions set forth in Paragraph 2 above. d. Method of Exercising the Option. i. Notice of Intent to Transfer. If Owner desires to sell, convey, transfer (other than pursuant to Paragraph 9 below), lease, encumber (other than pursuant to Paragraph 10 below) or otherwise dispose of the Property or of any estate or interest therein, no less than 45 days prior to the date of such oroposed sale, conveyance, transfer, lease, encumbrance or disposition, Owner shall notify City in writing to that effect (the "Notice of Intent to Transfer"). The Notice of Intent to Transfer shall be in substantially the form attached hereto as Exhibit B. In the case of a proposed sale of the Property to an identified prospective purchaser, the Owner shall submit to the City, together with the Notice of Intent to Transfer, a copy of the prospective purchasers income certification, a list of all assets owned by the prospective purchaser, and other financial information reasonably . requested by City, in a form approved by the City, along with the income certification to be provided to any lender making a loan to the prospective purchaser. The City may require documentation evidencing and supporting the income and other financial information contained in the certifications. ssaeas.2 --4-- Form Revised May 21, 2007 ~~~ ~~. ., ii. Notice of Exercise_ Upon the occurrence of any Option Event, the City may exerdse its Option by delivering notice, pursuant to Paragraph 17 and within the time period specified in Paragraph 3.d.iv, to Owner of City's intent to exercise such Option pursuant to the terms of this Agreement ("Notice of Exercise"). The Notice of Exercise may be in the form attached hereto and incorporated herein as Exhibit C, or in such other form as the City may from time to time adopt. If the Option Event relates to the potential foredosure of a mortgage under Paragraphs 3.c.iv, 3.c.v, or 3.c.vi, then the City shall also deliver the Notice of Exercise to the mortgagee or beneficiary under such mortgage, at such mortgagee's or beneficiary's address of record in the Office of the Recorder of Alameda County. iii. Notice of Consent to Transfer. If the City does not exerdse the Option, it may give its consent to the occunrence of the Option Event ("Consent to Transfer"). If the Option Event involves a proposed sale of the Property to a prospective purchaser, the City's consent shall be conditioned upon (i) the proposed purd~aser's qualification as an Eligible Household; (ii) the sale of the Property at a price not to exceed the Adjusted Resale Price; (iii) the proposed purchaser's execution of a Disclosure Statement in the form attached hereto as Exhibit F or such other form or forms as may be promulgated by the City; {iv) the proposed purchaser's assumption of Owner's duties and obligations under this Agreement pursuant to a written assumption agreement in a form acceptable to City, or execution of an agreement substantially similar to this Agreement, within thirty (30) days after the Consent to Transfer has been delivered to Owner and recordation of such assumption agreement or substitute agreement; (v) the proposed purchaser's execution of a Performance Deed of Trust in the form attached hereto as Exhibit G; and (vi) the seller's payment of the City's Affordable Home Ownership Unit Fee in an amount to be established from time to time by the City Council and which is currently set at $1,500 per transaction. SELLER SHALL PAY REAL ESTATE COMMISSIONS, IF ANY, WHICH SHALL NOT EXCEED 6% OF THE ACTUAL SALES PRICE. If the prospective purchaser (i) fails to qualify as an Eligible Household, (ii) fails to execute and deliver the Disclosure Statement to the City, (iii) fails to execute and deliver to the City an assumption agreement or an agreement substantially similar to this Agreement within such thirty (30) day period, or (iv) fails to execute and deliver to the City a Performance Deed of Trust in the form attached hereto as Exhibit G, then the Consent to Transfer shall expire and the City may, at its option, either notify Owner of the disqualification, thereby entitling Owner to locate another purchaser who qualifies as Eligible Household, or exercise the Option, as if no Consent to Transfer had been delivered. iv. Time Period for Notice. The City shall deliver a Consent to Transfer, if applicable, not later than thirty (30) days after the date. that it receives notification of an Option Event. The City shall deliver a Notice of Exercise, if applicable, on or before the date which is the later to occur of the following: (i) thirty (30) days after the date that the City receives notification of an .Option Event or (ii) fifteen (15) days after a Consent to Transfer has expired. For purposes of computing commencement of the delivery periods, the City shall be deemed to have received notification of an Option Event on the date of delivery of a Notice of Intent to Transfer, pursuant to the terms of Paragraph 17 below or on the date it actually receives notice of default, summons and complaint or other pleading, or other writing specifically stating that an Option Event has occurred. The City shall have no obligation to deliver a Notice of Exercise or Consent to Transfer, and the applicable time period for exercise of the Option shall not commence to run, unless and until 96a84s.2 -5- FoRn Revised May 2t, 2007 the City has received notification of an Option Event in the manner specified in this subparagraph. If there is a stay or injunction imposed by court order preGuding the City from delivering its Consent to Transferor Notice of Exercise within the applicable time period, then the running of such period shall cease until such time as the stay is lifted or the injunction is dissolved and the City has been given written notice thereof, at which time the period for delivery of a Consent to Transfer or Notice of Exercise shall again begin to run. v. Notice of Abandonment. If the City fails to deliver a Notice of Exercise or Consent to Transfer within the time periods set forth in Paragraph 3.d.iv, upon request by Owner, the City shall cause to be filed for recordation in the Office of the Recorder of Alameda County, a notice of abandonment, which shall declare that the provisions of the Option are no longer applicable to the Property. Unless Owner requests recordation of notice of abandonment within 30 days of the City's failure to deliver Notice of Exercise or Consent to Transfer, the City shall have no obligation to record the notice of abandonment. Upon recordation of a notice of abandonment, the Option shall terminate and have no further force and effect. If the City fails to record a notice of abandonment, the sole remedy of Owner shall be to obtain a judicial order instructing prompt recordation of such a notice. vi. Right to Reinstatement. If the Option Event is the recordation of a notice of default, then the City shall be deemed to be Owner's successor in interest under California Civil Code Section 2924(c) (or successor section) solely for purposes of reinstatement of any mortgage on the Property that has led to the recordation of the notice of default. As Owner's deemed successor in interest, the City shall be entitled to pay all amounts of prinapal, interest, taxes, assessments, homeowners' association fees, insurance premiums, advances, costs, attorneys' fees and expenses required to cure the default. If the City exercises the Option, then any and all amounts paid by the City pursuant to this Paragraph shall be treated as Adjustments to the Base Resale Price for the Property, as defined in Paragraph 5 below. vii. Inspection of Property. After receiving a Notice of Intent to transfer or delivering a Notice of Exercise, the City shall be entitled to inspect the Property one or more times prior to the close of escrow to determine the amount of any Adjustments to the Base Resale Price. Before inspecting the Property, the City shall give Owner not less than forty-eight (48) hours written notice of the date, time and expected duration of the inspection. The inspection shall be conducted between the hours of 9:00 a.m. and 5:00 p.m., Monday through Friday, excluding court holidays, unless the parties mutually agree in writing to another date and time. Owner shall make the Property available for inspection on the date and at the time speafied in the City's request for inspection. viii. Escrow. Promptly after delivering a Notice of Exercise, the City shall open an escrow account for its purchase of the Property. Close of escrow shall take place on such date which is the later to occur of the following, (a) sixty (60) days after a Notice of Exercise has been delivered, or (b) ten (10) days after Owner has performed all acts and executed all documents required for close of escrow. Prior to the close of escrow, the City shall deposit into escrow with a title company of City's choosing, the Adjusted Resale Price as defined in Paragraph 5 below and all escrow fees and closing costs to be paid by City. Commissions (not to exceed 6% of the actual sales price), closing costs and title insurance shall be paid pursuant to the custom and practice in the County of Alameda ssa8as.2 -6- Form Revised May 21, 2007 Ro~~~ at the time of the opening of escrow, or as may otherwise be provided by mutual agreement. Owner agrees to perform all acts and execute all documents reasonably necessary to effectuate the close of escrow and transfer of the Property to the City. ix. Proceeds of Escrow;. Removal of Exceptions to Title. Prior to dose of escrow, Owner shall cause the removal of all exceptions to title to the Property that were recorded after the Effective Date with the exception of (i) taxes for the fiscal year in which the escrow for this transaction closes, which taxes shall be prorated as between Owner and City as of the date of dose of escrow; (ii) quasi-public utility, public alley, public street easements, and rights of way of record, and (iii) such other liens, encumbrances, reservations and restrictions as may be approved in writing by City (°Permitted Exceptions"). The purchase price deposited into escxow by the City shall be applied first to the payment of any and all Permitted Encumbrances (as defined in Paragraph 10) recorded against the Property in order of lien priority, and thereafter to the payment of Owner's share of escrow fees and dosing costs. Any amounts remaining after the purchase price has been so applied, if any, shall be paid to Owner upon the close of escrow. If the purchase price is insufficient to satisfy all liens and encumbrances recorded against the Property, the Owner shall deposit into escrow such additional sums as may be required to remove said liens and encumbrances. In the event that the City agrees to proceed with close of escrow prior to the date that Owner has caused all exceptions to title recorded after the Effective Date other than Permitted Exceptions to be removed, then Owner shall indemnify, defend and hold City harmless from any and all costs expenses or liabilities (including attorneys' fees) incurred or suffered by City that relate to such exceptions and their removal as exceptions to title to the Property. 4. Base Resale Price. Prior to adjustment pursuant to Paragraph 5 the base resale price (°Base Resale Price") of the Property shall be the lowest of: a. Median Income. The original price ("Base Price") paid by Owner for acquisition of the Property pursuant to the Program, increased (but not decreased) by an amount, if any, equal to the Base Price multiplied by the percentage increase in the median household income ("Median Income") for Alameda County published by the California Department of Housing and Community Development, Division of Housing Policy Development, between the Effective Date and the date that the City receives notification of an Option Event; or b. Fair Market Vatue. The fair market value of the Property as determined by an appraiser selected and paid for by Owner and approved in writing by the City. To compute the Base Resale Price, the City may use the Base Resale Price Worksheet attached as Exhibit D hereto, or such other form as the City may from time to time adopt. 5. Adjustments to Base Resale Price. Subject to the Affordable Unit Cost restriction described in subparagraph (d) below, the Base Resale Price shall be increased or decreased, as applicable, by the following adjustment factors ("Adjustment"): 9G48as.2 -7- Form Revised May 21, 2007 a. Capital Improvements. An increase for capital improvements made to the Property, but only if the amount of such improvements has been previously approved in writing by the City after Owner has submitted original written documentation of the cost to the City for verification. The amount of the Adjustment shall equal the original cost of any such capital improvements. b. Damages. A decrease by the amount necessary to repair damage to the Property, if any, and to place the Property into saleable condition as reasonably determined by the City upon City's exercise of its Option hereunder, including, without limitation, amounts attributed to cleaning; painting; replacing wom carpeting and draperies; making necessary structural, mechanical, electrical and plumbing. repairs; and repairing or replacing built-in appliances and fixtures. Owner hereby covenants to, at Owner's expense, maintain the Property in the same condition as in existence on the date of City's Notice of Exercise, reasonable wear and tear excepted. c. Advances by the City. A decrease in an amount equal to the sum of all costs advanced by the City for the payment of mortgages, taxes, assessments, insurance premiums, homeowner's association fees and/or associated late fees, costs, penalties, interest, attorneys' fees, pest inspections, resale inspections and other expenses related to the Property, which Owner has failed to pay or has permitted to become delinquent. d. Adjusted Resale Price Not to Exceed Affordable Unit Cost. The Base Resale Price as adjusted, is hereinafter referred to as the "Adjusted Resale Price " Notwithstanding any other provision hereof to the contrary, in no event shall the Adjusted Resale Price exceed the Affordable Unit Cost. 6. Priority and Effectiveness of the Option. a. Recordation. This Agreement shall be recorded in the Office of the Recorder of the County of Alameda on or as soon as practicable after the Effective Date. The Option shall have priority over any subsequent sale, conveyance, transfer, lease or other disposition or encumbrance of the Property, or of any estate or interest therein, and in the event of exercise of the Option by City, the City shall take the Property subject only to Permitted Exceptions. Except as otherwise provided in Paragraph 7.a, the exercise of the Option by the City at any time and from time to time shall not extinguish the Option or cause a merger of the Option into any estate or other interest in the Property, and the Option shall continue to exist and be effective with respect to the Property against any and all subsequent owners in accordance with the terms and conditions hereof. b. Request for Notice of Default. The City shall file a Request for Notice of Default for recordation in the Office of the Recorder of the County of Alameda promptly upon execution of this Agreement (see Exhibit E . c. Subordination. The City agrees that in order to assist qualified purchasers to secure purchase money financing for the acquisition of the Property, the City will enter into a subordination agreement with a senior purchase money lender to subordinate this Agreement under such terms as the City and the senior purchase money lender shall negotiate. In the event that such a subordination agreement is required, Owner ssa846.2 $ Form Revised May 21, 2007 a~ ~ ~~~ shall pay the City a Refinance Charge Fee in an amount to be established from time to time by the City Council and which is currently set at $200 per transaction. 7. Survival of Option Upon Transfer. a. In General. The City's right to exercise the Option shall survive any transfer of the Property by Owner. Each transferee, assignee or purchaser of the Property during the term hereof shall be required to execute an agreement substantially in the form of this Agreement, provided that the term of any such agreement shall be for the duration of the term hereof as of the date of any such transfer, assignment, or sale. The Option may be exercised against the Property throughout the term hereof, regardless of whether the Property is owned, possessed or occupied by Owner or any successor, transferee, assignee, heir, executor, or administrator of Owner, regardless of household income (if applicable) including adebtor-in-possession, debtor or trustee pursuant to Title 11 of the United States Code. Notwithstanding the foregoing, the Option shall not survive (i) the sale and transfer of the Property to a third party purchaser pursuant to a judicial or non judicial foreGosure or a deed-in-lieu of foreclosure under a power of sale contained in a mortgage or deed of trust held by an institutional lender, or (ii) the. recording of an instrument conveying Owner's interest in the Property to the City, or its assignee, provided the conveyance is in acxordance with the terms of this Agreement. b. HUD Insured Mortgage. ff Owner has acquired the Property by a mortgage insured by the Secretary of the United States Department of Housing and Urban Development, and a notice of default has been recorded pursuant to California Civil Code Section 2924 (or successor provisions), then this Option shall automatically terminate if title to the Property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the insured mortgage is assigned to the Secretary. 8. Voidable Transfers. As long as the Option has not been abandoned pursuant to Paragraph 3.d.v, any actual or attempted sale, conveyance, transfer or other disposition of the Property, or of any estate or interest therein, in violation of the terms and conditions of this Agreement, shall be voidable at the election of the City. 9. Permitted Transfers. Provided that the transferee assumes, within 30 days of a written request by the City, all of Owner's duties and obligations under this Agreement pursuant to a written assumption agreement in a form acceptable to City, or at City's election, execution of an agreement substantially similar to this Agreement, the following transfers ("Permitted Transfers") of title to the Property, or of any estate or interest therein, shall not be subject to the City's prior approval, shall not trigger the exercise of the Option, and shall not be considered Option Events: (a) a good-faith transfer by gift, devise or inheritance to Owner's spouse or issue; (b) a taking of title by a surviving joint tenant; (c) a court-ordered transfer of title to a spouse as part of a divorce or dissolution proceeding; (d) a transfer by Owner into an inter vivos trust in which the Owner is a benefiaary and the Owner continues to occupy the property as his/her primary residence; (e) an acquisition of title, or of any interest therein, in conjunction with marriage; or (f) any good faith transfer to an Eligible Household. Notwithstanding any Permitted Transfer, the Option shall remain effective with respect to the Property for the duration of the term hereof. ssaaasz -9- Form Revised May 21, 2007 -~`~ ~r,~ 10. Permitted Encumbrances. This Option shall not become exercisable as the result of Owner's encumbering the Property (a) for the purpose of securing finandng to purchase the Property pursuant to the Program, (b) to refinance indebtedness incurred to purchase the Property pursuant to the Program, provided that prior to refinancing the Property Owner shall obtain City's approval of the refinancing pursuant to section 11 below, which shall not be unreasonably withheld, or (c) to make necessary repairs to the Property in an amount approved by City pursuant to Paragraph 5a ("Permitted Encumbrances"). The maximum aggregate amount of such encumbrances outstanding at any time (the "Permitted Encumbrance Amount") shall not exceed an amount equal to one-hundred percent (100%) of the Base Resale Price calculated as provided in Paragraph 4. The Permitted Encumbrance Amount shall be calculated as if the City had received notification of an Option Event on the earlier of (a) the date on .which the deed of trust or mortgage securing the indebtedness is filed far record in the Office of the Recorder of the County of Alameda, or (b) the date the City receives Notice of Intent to Transfer pursuant to Paragraph 3.d.i above. Owner hereby covenants and agrees that he/she/they shall use his/her/their best efforts to ensure that any deed of trust or other agreement encumbering the property shall indude provisions providing for notice to be delivered to City of any default thereunder and for City's right to cure such default at City's election. 11. Refinancing; Junior Loans. a. Initial Financing. Any prepayment and refinance of any financing used to purchase the Property ("the Initial Financing") shall not be permitted unless expressly approved by the City in writing, and the City may approve such refinancing only if all of the following conditions are met: i. the refinance reduces Owner's monthly payments of prindpal and interest on the Initial Finandng or shall be used to finance capital improvements preapproved by the City ("Eligible Capital Improvements"); ii. the refinance does not cause the prindpal amount of all debt secured by the Property to exceed the then outstanding balance (plus refnandng and dosing costs) of the Initial Improvements plus the cost of any Eligible Capital Improvements that shall be made by Owner; iii. the refinance does not result in Owner receiving any cash from the refinance other than for Eligible Capital Improvements permitted pursuant to Paragraphs 11.a.i and 11.a.ii; iv. the refinance does not cause the Property's loan to value ratio (calculated by comparing the total debt secured by the Property to the Adjusted Resale Price of the Home) to exceed the loan to value ratio for the Property at the time of initial purchase by the Owner (calculated by comparing the total debt secured by the Property to the Purchase Price paid by the Owner). v. the total outstanding balance of principal and any accrued interest on all loans secured by the Property does not exceed the Adjusted Resale Price, calculated by the City pursuant to Paragraph 5 of this Agreement. 9648as.2 ~ -10- Form Revised May 21, 2007 b. Junior Loans. Mortgage loans or equity lines of credit junior in lien priority to the Performance Deed of Trust are not permitted, except as when expressly approved by the City in writing. The City shall only approve junior martgage loans or equity lines of credit as follows: i. the loan or equity line of credit does not does not cause the Property's loan to value ratio (calculated by comparing the total debt secured by the Property to the Adjusted Resale Price of the Property) to exceed the loan to value ratio for the Property at the time of initial purchase by the Owner (calculated by comparing the total debt secured by the Property to the purchase paid by the Owner); ii. the proceeds of such loan or equity line of credit are used only for Eligible Capital Improvements; and iii. the total outstanding balance of principal and any accrued interest on all loans secured by the Property does not exceed the Adjusted Resale Price, calculated by the City pursuant to Paragraph 5 of this Agreement. c. Eligible Capital Improvements. In the event (i) the Owner refinances the Initial Financing in accordance with Paragraph 11.a, or (ii) the Owner borrows a junior loan or takes an equity line of credit in accordance with Paragraph 11.b, and the funds from such refinance, loan, or line of credit shall be used for Eligible Capital Improvements, Owner shall provide evidence to City, in a form acceptable to City in its sole and absolute discretion, that any amount of funds received by Owner for such Eligible Capital Improvements shall be and are used for the construction of such Eligible Capital Improvements. d. Affordable Housing Cost; Subordination. The City and the Owner agree that the requirements of this Paragraph 11 are necessary to ensure the continued affordability of the Property to Owner and to minimize the risk of loss of the Property by Owner through default and foreclosure of mortgage loans. Owner further acknowledges that violation of the provisions of this Paragraph 11 shall constitute a Default under this Agreement. In no case shall this Agreement and the Performance Deed of Trust be in lower than third lien position on the Property. Any subordination agreement to be executed by City shall include notice and cure rights for City regarding any defaults in the mortgage to which the City is subordinating. 12. Obligation of Owner After Option Abandonment. If the City records a notice of abandonment of the Option, then the Property may be sold by Owner to a third party without restriction as to price; however, upon such sale, Owner shall pay to City an amount (°City's Share") equal to twenty-five percent (25%) of the difference between (a) the actual sales price net of reasonable and customary real estate commissions paid (such commissions not to exceed six percent (6%) of the actual sales price), and (b) the Adjusted Resale Price. The City's Share shall be paid to the City concurrently with close of escrow on the sale of the Property, or upon receipt by Owner of the sale price for the Property, whichever shall first occur. 13. Limits on Liability. In no event shall the City become liable or obligated in any manner to Owner by reason of the assignment of this Agreement or the Option, nor shall 964846.2 -11- Form Revised May 21, 2007 a~ ~ a-m City be in any way liable or obligated to Owner for any failure of the City's assignee to consummate a purchase of the Property or to comply with the terms of this Agreement or the Option, or any escrow instructions or agreement for the purchase of the Property. 14. Insurance Proceeds and Condemnation Award. In the event the Property is destroyed and insurance proceeds are distributed to Owner instead of being used to rebuild the Property, or, in the event of condemnation, if the proceeds thereof are distributed to Owner, any surplus of proceeds remaining after payment of the senior liens and encumbrances on the Property shall be distributed as follows: that portion of the surplus up to, but not to exceed, the net amount Owner would have received pursuant to Paragraph 3.d.ix had the City exercised its Option on the date of the destruction of condemnation valuation date shall be distributed to Owner, and the balance of such surplus, if any, shall be distributed to the City. 15. Effective Date. The rights and obligations of the City and Owner set forth in this Agreement shall be effective as of the Effective Date. 16. Term of Agreement and Option. The restrictions contained herein and the Cit}rs option to purchase the Property shall continue in perpetuity commencing on the Effective Date. 17. Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses speafied below or to such other address as a Party may designate by written notice delivered to the other Party in accordance with this Section. All such notices shall be sent by: a. personal delivery, in which case notice shall be deemed delivered upon receipt; b. certified or registered mail, return receipt requested, in which case notice shall be deemed delivered two (2) business days after deposit, postage prepaid in the United States mail; c. nationally recognized overnight courier, in which case notice shall be deemed delivered one (1) day after deposit with such courier, or d. facsimile transmission, in which case notice shall be deemed delivered on transmittal, provided that a transmission report is generated reflecting the accurate transmission thereof. City: City of Dublin, 100 Civic Plaza Dublin, California 94568 Attn: City Manager Owner: At the address of the Property 96484x.2 -12- Form Revised May 21, 2007 ~~ ~ ~~ 18. Remedies Upon Breach. a. Specific Performance. Owner acknowledges that any breach in the performance of its obligations under this Agreement shall cause irreparable harm to the City. Owner agrees that the City is entitled to equitable relief in the form of specific performance upon its exercise of the Option, and that an award of damages shall not be adequate to compensate the City for Owner's failure to perform according to the terms of this Agreement. or equity. b. Other Remedies. City shall have all of the remedies provided for at law 19. General Provisions. a. Attorneys' Fees. If either party initiates legal proceedings to interpret or enforce its rights under this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorneys' fees and costs in additions to any other recovery to which it is entitled under this Agreement. b. No Joint Venture; No Third-Party Beneficiary. No joint venture or other partnership exists or is created between the Parties by virtue of this Agreement. Except as expressly stated herein, this Agreement does not benefit any third party. c. Successors; Assignment. This Agreement shall inure to the benefit of and shalt be binding upon the Parties to this Agreement and their respective heirs, executors, administrators, successors and assigns. City shall have the right to assign all of its rights and obligations under this Agreement without the consent of Owner. d. Entire Agreement; Amendment. This Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof, and supersedes any and all other prior negotiations, correspondence, understandings and agreements with respect thereto. There are no representations, promises, agreements or other understandings between the Parties relating to the subject matter of this Agreement that are not expressed herein. This Agreement may be modified only by an instrument in writing executed by the Parties or their respective successors in interest. e. Survival; No Merger. All of the terms, provisions, representations, warranties and covenants of the Parties under this Agreement shall survive the close of escrow of any sale of the Property and shall not be merged in any deed transferring the Property. f. Authority And Execution. Each Party represents and warrants that it has full power and authority to enter into this Agreement and to undertake all of its obligations hereunder, that each person executing this Agreement on its behalf is duly and validly authorized to do so. g. Severability. The invalidity or unenforceability of any term or provision of this Agreement shall not impair or affect the remainder of this Agreement, and the ssaeas•2 -13- Form Revised May 21, 2007 ~,~ ~ ~~ ~~ remaining terms and provisions hereof shall not be invalidated but shall remain in full force and effect. h. Waiver; Modification. No waiver or modification of this Agreement or any covenant. condition, or limitation herein contained shall be valid unless in writing and duly executed by the Party to be barged therewith. No evidence or any waiver or modification shall be offered or received in evidence in any proceeding, arbitration, or litigation between the Parties arising out of or affecting this Agreement or the rights or obligations of any Party hereunder, unless such waiver or modification is in writing and duly executed as aforesaid. The provisions of this section may not be waived except as herein set forth. A waiver or breach of any covenant, condition or provision of this Agreement shall not be deemed a waiver of any other covenant, condition or provision hereof. i. Construction. The section headings and captions used in this Agreement are for convenience of reference only and shall not modify, define, limit or amplify any of the terms or provisions hereof. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if both Parties have prepared it. j. Governing Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of the State of California. k. Time of the Essence. Time is of the essence in this Agreement as to each provision in which time is an element of performance. (. Further Assurances. Each Party will, upon reasonable request of the other Party, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such further instruments and documents as may be reasonably necessary in order to fulfill the intents and purposes of this Agreement. m. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all which together. shall constitute one and the same instrument. [EXECUTION PAGE FOLLOWS] al&~~~~ IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first v+rritten above_ OWNER(S): CITY: CITY OF DUBLIN Richard Ambrose, City Manager ATTEST: City Clerk ssasas.2 -15- Form Revised May 21, 2007 4 STATE OF CALIFORNIA COUNTY OF On before me, , a Notary Public in and for said county and state, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) COUNTY OF ) On before me, , a Notary Public in and for said county and state, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose. name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) 96aaas•~ Form Revised May 7, 2007 ~ onv~ ~~~ STATE OF CALIFORNIA COUNTY OF On before me, , a Notary Public in and for said county and state, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) X6.1 Form Revised May 7, 2007 tDt'~`~ CERTIFICATE OF ACCEPTANCE (Pursuant to Government Code §27281) This is to certify that the interest in real property conveyed by the Resale Restriction Agreement and Option to Purchase dated from to the City of Dublin, a California municipal corporation, is hereby accepted by the undersigned office or agent on behalf of the City of Dublin pursuant to authority conferred by the Resolution No. dated ;and the grantee consents to recordation thereof by its duly authorized officer. Dated: By: Its: Attest: City Clerk Form Revised May 7, 2007 (p~~1 tea _ EXHIBIT A LEGAL DESCRIPTION 96aeas.t Form Revised May 7, 2007 ~ o ~ x-70 Jerry Haag Urban Planner 2029 University Ave. Berkeley, CA 94704 (510) 644-2106 October 5, 2009 Mr. Mike Porto City of Dublin Planning Department 100 Civic Plaza Dublin CA 94568 Re: Invoice for Services-Sorrento East CEQA documentation Invoice No 6 FCN # 775 Period Ending: 10/30/09 Tasks Performed: • Reactivate Initial Study • Update project description J. Haag 24 hr. @ $100/hr. _ $2400 Total Due: $2400 Billing Summary Contract Value: $ 37,800.00 Billing To Date 6800.00 Remaining: 31,000.00 ~~~~f ~~ ocl 0 s coos ®11BLIIV PL,41~F~o-~~~ 10 ~-l ~j EXHIBIT B FORM: NOTICE OF INTENT TO TRANSFER VIA CERTIFIED MAIL -RETURN RECEIPT REQUESTED To: City of Dublin 100 Civic Center Dublin, California 94568 Attn: City Manager Date: Re: Notice of Intent to Transfer Pursuant to the terms of the Resale Restriction Agreement and Option to Purchase, dated the undersigned Owner(s), hereby give(s) notice of his/her/their intent to transfer the property located at ,Dublin, Califomia (the "Property"). Owner may be contacted at the Property or at the following address: Owner's daytime telephone number is (~ [If applicable: The proposed transfer of the Property is to the following person(s): Name: Address: Telephone: ~ (___) ~ The proposed transfer is (check one): ^ Sale O Other Specify: Owner(s) signature(s): 96aeas.~ Form Revised May 7, 2007 EXHIBIT C FORM: NOTICE OF EXERCISE Date: To: Owner or Transferee Address Re: Notice of Exercise The City of Dublin ("City") hereby gives notice that it is exercising its option to purchase the real property located at ,Dublin, California. The option has been granted to the City pursuant to the Resale Restriction Agreement and Option to Purchase between Owner and the City dated and recorded on as Instrument No. [The City has assigned its option to purchase the real property to .j An escrow for the purchase will be opened with the First American Title Company City of Dublin sy:. Its: ss4eas•~ Form Revised May 7, 2007 LD(a ~ .:,~. ~,~,~ EXHIBIT D INCLUSIONARY ZONING BASE RESALE PRICE WORKSHEET Date: Owner. Address: Purchase Price: Date of Purchase: Years Owned: years CALCULATION BASED ON INCREASE IN MEDIAN INCOME"*"' Present Median Income: $ Effective Date: Family of four, County of Alameda (at time of sale of unit) Effective Date: Original Median Income: $ Famly of four, County of Alameda (at time of purchase of unit) Amount of Increase: Family of four, County of Alameda (Present median income minus original median income) Increase in Price: Method #1 Resale Price: x x = Based on the above, the base resale rice as of this date, , is: BY= ssa8as•~ Form Revised May 7, 2007 EXHIBIT E REQUEST FOR NOTICE OF DEFAULT Order No. Escrow No. Loan No. WHEN RECORDED MAIL TO: CITY OF DUBLIN Dublin, California Attn: (Space Above This Line For Recorder's Use Only) REQUEST FOR NOTICE UNDER SECTION 2924b CIVIL CODE In accordance with Section 2924b, Civil Code, request, is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded as Instrument No. on , in the Official Records of Alameda County, California, and describing land therein as: executed by Dublin, California ,Attn: as Trustor, in which is named as Beneficiary, and as Trustee, be mailed to the City of Dublin, By: NOTICE: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NOTICE OF SALE WILL BE SENT ONLY TO THE ADDRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS CHANGES, A NEW REQUEST MUST BE RECORED. STATE OF CALEFORNIA COUNTY OF On before me, said county and state, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacrty(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature a Notary Public in and for (Seal) ssasas-~ Form Revised May 7, 2007 l o ~. ~ };~ EXHIBIT F DISCLOSURE STATEMENT. THERE ARE RESTRICTIONS ON THE SALE OF THE PROPERTY YOU ARE BUYING. EXCEPT FOR A TRANSFER TO THE CITY FOLLOWING CITY'S EXERCISE OF ITS OPTION TO PURCHASE, THIS PROPERTY MAY ONLY BE SOLD TO AN "ELIGIBLE HOUSEHOLD" AT A PRICE NOT TO EXCEED THE ADJUSTED RESALE PRICE WHICH IS CAPPED AT AN "AFFORDABLE UNIT COST." THIS MEANS THAT YOU MAY NOT SELL THE PROPERTY FOR MARKET VALUE TO WHOMEVER YOU LIKE. THESE RESTRICTIONS WILL BE IN EFFECT UNTIL ANY SALE OF THE PROPERTY IN VIOLATION OF THE RESTRICTIONS, SHALL BE VOIDABLE AT THE ELECTION OF THE CITY. TO DETERMINE WHO AN ELIGIBLE HOUSEHOLD IS, AND WHAT THE ADJUSTED RESALE PRICE AND AFFORDABLE HOUSING COST ARE, YOU SHOULD CONTACT THE OF THE CITY OF DUBLIN. YOU SHOULD READ THE RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE RECORDED AGAINST THE PROPERTY. YOU MAY OBTAIN A COPY FROM THE CITY OF DUBLIN OR FROM THE ESCROW COMPANY. YOU SHOULD ALSO BE AWARE THAT A PERFORMANCE DEED OF TRUST WILL BE RECORDED AGAINST THE PROPERTY TO ENSURE COMPLIANCE WITH THE RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE. YOU MAY OBTAIN A COPY FROM THE CITY OF DUBLIN OR FROM .THE ESCROW COMPANY. t HAVE READ THE FOREGOING AND f UNDERSTAND WHAT IT MEANS. BUYER BUYER ~9o2n.2 Fam Revised May 7, 2007 EXHIBIT G FORM: PERFORMANCE DEED OF TRUST ~n~ ~ A~ 790277.2 Form Revised May 7, 2007 I ~'` ~ <<°~~ ~ RECORDING REQUESTED BY: CITY OF DUBLIN When Recorded Mail To: City Clerk City of Dublin 100 Civic Plaza Dublin, CA 94568 Fee Waived per GC 27383 Space above this line for Recorders use SECONDARY UNIT REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS Owner. Property Address: Dublin, Califomia Name of Development: Positano This Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants (this "Agreement") is entered into effective as of ("Effective Date") by and between the City of Dublin, a public body, corporate and politic ("City") and (the "Owner")_ City acid Owner are hereinafter collectively referred to as the "Parties." Recitals A. Owner is the owner of certain real property that contains a secondary dwelling unit, which is located in the City of Dublin, County of Alameda, State of Califomia and more particularly described in Exhibit A attached hereto and incorporated herein by reference (the "Property"). The Property is located within a residential development project area (the "Project")that was subject to the City's Inclusionary Zoning Regulations (Chapter 8.68 of the Dublin Municipal Code), which requires that developments consisting of 20 or more residential units must include a specked percentage of units that are subject to affordability restrictions set forth in a binding agreement recorded against the property. Secondary Unit Regulatory Agreement Second Unit Regulatory Agreement 5.07.07.DOC DRAFT: May 7, 2007 Page 1 of 10 Exhibit 8 r .. ~ ~i I~1~a~ro B. The developer of the Project chose to satisfy its obligations through among other things the construction of 13 secondary units on some of the residential lots in the Project, inGuding on the Property, and requiring the purchasers to enter into regulatory agreements restricting the rents charges for the secondary units to affordable rents, in accordance with the Inclusionary Zoning Regulations. C. The Parties have agreed to enter into and record this Agreement in order to satisfy the requirements described in the foregoing Recitals. The purpose of this Agreement is to regulate and restrict the occupancy and rents of the Property's Restricted Unit (defined below) for the benefit of the occupants. The covenants in this Agreement are intended to run with the land and be binding on Owner and its successors and assigns for the full term of this Agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the Parties hereby agree as follows: 1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement or the attached exhibits. below: °Applicable Income Level" means the annual gross income level specified ^ Very-low income: 50% or less of Area Median Income. ^ Low-income: 50% to 80% of Area Median Income_ ^ Moderate-income: 80% to 120% of Area Median Income. "Area Median Income" or "AMI" means the area median income for Alameda County, Califomia, adjusted for household size, published periodically by the Califomia Department of Housing and Community Development ("IiCD") in Section 6932 of Title 25 of the Califomia Code of Regulations ("Regulations") or successor provision published. "Eligible Household" means a household whose gross income does not exceed the Applicable Income Level and that is otherwise eligible to rent a Restricted Unit. "Qualifying Rent" means a monthly rent which does not exceed one-twelfth of thirty percent (30%) of the Applicable Income Level adjusted for household size, less a utility allowance as specified by the Housing Authority of Alameda County. "Restricted Unit" means the secondary dwelling unit on the Property that is depicted in Exhibit B and that is reserved for occupancy at a Qualifying Rent in accordance with and as set forth in Section 2. 2. Use and Affordability Restrictions. Owner represents and wan-ants that it has not entered into any agreement that would restrict or compromise its ability to comply with Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 second unit Regulatory Agreement 5.07.07.DOC Page 2 of 10 r l ~. ~ ~...r~ the occupancy and affordability restrictions set forth in this Agreement, and Owner covenants that it shall not enter into any agreement that is inconsistent with such restrictions without the express written consent of City. 2.1 Affordability Requirements. The Restricted Unit, if it is rented, shall be rented at not more than Qualifying Rent and occupied by Eligible Households. Owner shall ensure that language is contained in all leases and contracts with tenants executed by Owner that prohibits subleasing of the Restricted Unit. 2.2 Rents for Restricted Units. Rent charged to, and paid by, a tenant for Restricted Units shall be not more than Qualifying Rent. Notwithstanding the foregoing, no tenant qualifying fora Restricted Unit shalt be denied continued occupancy of the Restricted Unit because, after admission, such tenant's adjusted income increases to exceed the qualifying limit for such Restricted Unit. 2.3 Non-Discrimination: Compliance with Fair Housing Laws. Owner shall not discriminate against persons or groups of persons on account of race, color, religion, creed, sex, sexual orientation, marital status, familial status, ancestry or national origin in the lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, 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 the Property. Owner shall each ensure that language prohibiting such discrimination shall be included in all deeds, leases and contracts executed by Owner or. its successors and assigns with respect to the Property. Owner shall comply with state and federal fair housing laws in the marketing and rental of the units in the Property. 3. Reporting Requirements. 3.1 Tenant Verification. Owner or its authorized agent shall obtain from each household prior to initial occupancy of each Restricted Unit, and on every anniversary thereafter, written documentation verifying each tenant's eligibility containirig all of the following, including additional documentation as City may reasonably require (collectively hereinafter "Written Verification"): (a) Number of people in the household; and (b) Total household income. Owner or its authorized agent shall retain Written Verification for not less than three (3} years, and upon City's request, shall make the Written Verification available for inspection by City and shall provide copies of the Written Verification to City. Owner or its authorized agent may require each Eligible Household to certify the Written Verification. 3.2 Annual Report; Inspections. Owner shall submit an annual report (°Annual Report") to the City in conformity with the requirements of Section 8.68.050.6 Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 SecaW Unit Regulatory Agreement 5.07.07.DOC Page 3 of 10 of the Inclusionary Zoning Regulations, together with a certification that the Property is in compliance with the requirements of this Agreement. The Annual Report shall, at a minimum, include the following information:. (i) ident~cation of the Restricted Unit by address; (ii) the monthly rents charged and proposed to be charged; (v) the number of people residing in the unit; and (vi) the total household income of residents. Upon City's request, Ownec shall include with the Annual Report, a copy of the Written Verification Owner obtained pursuant to Section 3.1 above, and such additional information as City may reasonably request from time to time in order to show compliance with this Agreement. Owner shall permit representatives of City to enter and inspect the Property during reasonable business hours in order to monitor compliance with this Agreement upon 24 -hours advance notice of such visit to Owner. 4. Term of Agreement. 4.1 Term of Restrictions. This Agreement shall remain in effect in perpetuity. 4.2 Effectiveness Succeeds Conveyance of Property. This Agreement shall J remain effective and fully binding for the full term hereof regardless of any sate, assignment, transfer, or conveyance of the Property, unless this Agreement is terminated earlier by City in a recorded writing. 4.3 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge the terms of this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement in accordance with its terms. 5. Binding Upon Successors: Covenants to Run with the Land. Owner hereby subjects its interest in the Property to the covenants and restrictions set forth in this Agreement. The City and Owner hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of Owner and City, regardless of any sale, assignment, conveyance or transfer of the Property or any part thereof or interest therein. Each reference in this Agreement to a spec~cally named party shall be deemed to mean a reference to the successor of each such Party. Any successor-in- interest to Owner, including without limitation any purchaser, transferee or lessee of the Property (other than the tenants of the individual dwelling units within the Property) shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or other instrument has been executed prior to the date hereof, Owner hereby covenants to obtain and deliver to City an instrument in recordable form signed by the parties to such contract, deed, ground lease or other Secondary 1Jnit Regulatory Agreement DRAFT: May 7, 2007 Second Unit Regulatory Agreement 5.07.07.DOC Page 4 of 10 instrument- pursuant to which such parties acknowledge and accept this Agreement and agree to be bound hereby. Owner agrees for itself and for its successors that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property in favor of City. 6. Property Management; Repair and Maintenance Marketing. 6.1 Management Responsibilities. Owner shall be responsible for all management functions with respect to the Property, 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. Except as City may otherwise agree in writing, City shalt have no responsibility for management or maintenance of the Property. The contracting of management services to a management entity shall not relieve Owner of its primary responsibility for proper performance of management duties. 6.2 Intentionally Omitted. 6.3 Repair, Maintenance and Security. Throughout the term of this Agreement, Owner shall at its own expense, maintain the Property 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 Property (including without limitation, the residential units, common areas, landscaping, driveways 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. Owner shall prevent and/or rectify any physical deterioration of the Property and shall make all repairs, renewals and replacements necessary to keep the Property and the improvements located thereon in good condition and repair. 6.4 Intentionally omitted. 6.5 Intentionally omitted. 6.6 Intentionally omitted. 6.7 Intentionally omitted. 6.8 Property Damage or Destruction. if any part of the Property is damaged or destroyed, Owner shall repair or restore the same as soon as practicable, consistent with the occupancy and rent restriction requirements set forth in this Agreement. Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 Second Unit Regulatory Agreement 5.07.p7.DOC Page 5 of 10 l l 5 d~j ,~ ~ ~:~ 7. Recordation: No Subordination. This Agreement shall be recorded in the Official Records of Alameda County. Owner hereby represents, warrants and covenants that with the exception of easements and restrictions 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. If at the time this Agreement is recorded, any interest, lien, or encumbrance has been recorded against the Property 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, and to provide such evidence thereof as City may reasonably request. 8. Transfer and Encumbrance. 8.1 Restrictions on Transfer. During the term of this Agreement, except as permitted pursuant to this Agreement, Owner shall not make or permit the occurrence of any conveyance, sale or lease (except as to individual dwelling units) of the Property without the prior written consent of the City; provided however City shall not withhold its consent to the sale, transfer or other disposition of the Property, in whole or in part, provided that (i) the transferee expressly assumes all obligations of Owner imposed by this Agreement; (ii) the transferee executes all documents reasonably requested by the City with respect to the assumption of the Owner's obligations under this Agreement; and (iii) the Owner has paid the City a Affordable Home Ownership Fee to cover the City's costs associated with the transaction. The amount of the Affordable Home Ownership Fee is currently $1,500 per transaction, and the applicable amount shall be as established from time to time by the City Council 8.2 Encumbrances. Owner agrees to use best efforts to ensure that any deed of trust secured by the Property shall contain each of the following provisions: (i) the holder.of such deed of trust shall use its best efforts to provide to City a copy of any notice of default issued to Owner concurrently with provision of such notice to Owner (provided however, the failure to do so shall not impair such holder's rights and remedies); and (ii) City shall have the reasonable right, but not the obligation, to cure any default by Owner within the same period of time provided to Owner for such cure, extended by an additional thirty (30) days. 8.3 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 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 Property that such violation has occurred. Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 Second Unit Regulatory A®reement 5.07.07.DOC Page 6 of 10 I~r~~.: 9. Default and Remedies. 9.1 Events of Default. Owner's failure to cure any default in performance of Ownets obligations under this Agreement within thirty (30) days following City's delivery of a notice of default shall constitute an Event of Default hereunder and shall entitle the City to proceed with any of the remedies described below. Notwithstanding the foregoing, if the default is such that it is not reasonably capable of being cured within thirty (30) days, an Event of Default shall not arise hereunder if Owner commences to cure the default within 30 days and thereafter prosecutes the curing of such default to completion with due diligence and in good faith, but in no event later than ninety (90) days after receipt of City's notice of default or such longer period as City may agree to in writing. (a) Bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief; (b) For violations of obligations with respect to rents for Restricted Units, impose as liquidated damages a charge in an amount equal to the actual amount collected in excess of the Qualifying Rent; (c) Pursue any other remedy allowed at law or in equity. 9.2 Remedies Cumulative. 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. 10. Indemnification. Owner shall defend (with counsel approved by City), indemnify and hold the City and its officials, officers, directors, employees, and agents (collectively, the "Indemnified Parties") harmless from and against any and all losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys' fees) arising from or in connection with or in any way related to: (i) Owners performance or failure to perform any obligation required by this Agreement; or (ii) any act or omission by Owner, or any of Owner's contractors, subcontractors, agents, employees, licensees or suppliers related to the Property, except to the extent arising from the gross negligence or willful misconduct of such Indemnified Party. The provisions of this Section shall survive the expiration or earlier termination of this Agreement. 11. Miscellaneous. 11.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by both Parties. 11.2 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 Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 Second Unit Regulatory Agreerr~ent 5.07.07.DOC Page 7 of 10 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. 11.3 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; (c) nationally recognized ovemight courier, with charges prepaid or charged to the sender's acxount, in which case notice is effective on delivery if delivery is confirmed by the delivery service; (d} facsimile transmission, in which case notice shall be deemed delivered upon transmittal, provided that (a) a duplicate copy of the notice is promptly delivered by first-class or certified mail or by ovemight delivery, or (b) a transmission report is generated reflecting the accurate transmission thereof. Any notice given by facsimile shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient's time or on a nonbusiness day. City: City of Dublin 100 Civic Plaza Dublin, CA 94568 Attention: City Manager Facsimile: (925) 833-6651 Owner: At the address of the property 11.4 Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to cany out the intent of this Agreement. Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 Second Unk Regulatory Agreement 5.07.O7.DOC Page 8 of 10 ~,~~ ~~~ 11.5 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. 11.6 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 or by any person who shall have been designated by the City Manager, without further approval by the City Council. 11.7 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. 11.8 Headings: Construction. 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. 11.9 Time is of the Essence. Time is of the essence in the performance of this Agreement. 11.10 Goveming Law. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. 11.11 A_ ttomeys' 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. 11.12 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. 11.13 Entire Agreement; Exhibits. This Agreement contains the entire agreement of Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto. The exhibits attached hereto are incorporated herein by this reference. 11.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. SIGNATURES ON FOLLOWING PAGE. Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 Second Unit Regulatory Agreemen15.07.07.000 Page 9 of 10 t a~ ~~P., IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first written above. OWNER CITY OF DUBLIN By. Richard C. Ambrose City Manager Attest: . Kay Keck Interim City Clerk Approved as to form: Elizabeth H. Silver City Attorney S/GNATURES MUST BE NOTARIZED. Secondary Unit Regulatory Agreement DRAFT: May 7, 2007 Second Unit Regulatory Agreement 5.07.o7.DOC Page 10 of 10 Exhibit A PROPERTY DESCRIPTION (Attach legal description.) ..-'' l 1 /~ - 1x ) f - ~i ~ . ,j'. C~ --`ter l r., ' _ ~ ., .//,', - ~ t~ ~ '~. ,.'~ i ~ 6~ ~ ,.-.% /' - ~ ` ,. '! ~ ~-' cad' ,l ,~~: •;,. ~' ~~ ~' I ' ~ ' i f ~~ ~ ~~ ' '~ ~'-5 ~ ,~ ~ ~, "/~ 't' ~~' ~ ~ c, r :tit{///) t ~ t I + i z :~ it n cr ,, { utl-Int_ort c - ct units I „. t C ti. ~\ r j'f ~ f~ - ~~. ~'tt\ '{_fl~t { iCOflll h ~.r`1 / / ' r`) .il / I~t11 /// ~ , ~ ~ t . ~ _ ,r~ ~~~ f I m . ti Laoit _- ~ ~ ;.. '%~ ~ - :~ / ~~- ~~~ r~ '' r i f~,') ~.~ G\`' ,.+ , ~ _ t ~ i tf\ ; ~ f {XC)117~~ 1~ II{t f.i jt)\'. iV / ~. ~~.' tf ~ ~ F •'` ~'1C2rket {Z.11:. '.5i i'011L{:3'~ -. . _.~`~~ \ ,~~-''. /'' ._ t 'tri ;r ~._ ~..~.. ~i~}-.`.~`-' ~~ ./^:.\`\ %~i~ ~OC It Itl'tHtt a'~,~U4~' _ ___ _~ :, ~ 33..E ; ~ T, S .-i~ ~ ~}~rri{~oi5 ,.try rtr~rr Oct r,t.,, .., # ~ - \ - _. k ~ , ~ ~ ~ ~I' - ~~ ~~~~ ~ Rt,rc:er Ptrkin~7 tit ~~ ~ 30 i ~._ :~ i_ ~,53_~ ~ ~~ ~~ , , ~~~ t ~ ~~ ..i' . ~ yc.t.0~lc{ i' t. I"'Sf ,, .,._ f ,,. ~~ ~- ~~ ' t ~ l ii{ i~' ,~, ~. _ t 1 I ~ , ,, C .~ ti . , -:~. ~ ~ ~ .,.. °- ~ - ~_ '"'"'~~~ ;% '~ ? ~ % ,~- , ~, .t"tip 3!i __ -_. - -- ~~ - - _, tiiLC+,...at~ ', ~ =tn 1 ~ 'I "' t * . ,, Y _ I ' ~.~ _ , l i~ ' `G [ I 1` ~~~ 6~ t l i c ~~ t `Cll. `~~ E \ iii ~ ~ !I_ ~ 'fit ~ ra '+ .'.i'I ~~ i `i a F' ,:; ,.,. f~ ~ I ._ ~ f t~xti tl,mr ti1il c. f,~,.v t ? i'Ian I ~ ti fi,.c, ,.... .. , ~ 2 z~ ~z =~ o SECOND UNIT ANNUAL SURVEY PLEASE FILL OUT FORM COMPLETELY AND RETURN TO CITY AT: CITY OF DUBLIN,100 CIVIC PLAZA, DUBLIN, CA 94568 Owner Name• Location of Property: Daytime Phone Number: Your second unit is designated to be rented to a Very Low The maximum rent that can be charged for the second units is $ *************************************************************************************** 1. Is the second unit being rented at this time? YES NO 2. What is the current rent being charged? (Attach copy of most recent rent check) $. 3. Current household size of second unit? (circle one): 1 2 3 4 people: 4. Total annual household income of second unit? $ I understand that there are restrictions on my property and if I choose to sell or refinance this coming year, I must first contact the City of Dublin Housing Staff at (925) 833-6610. Low 'Moderate income household. In affixing my/our signatures below, UWe affirm that all information provided in this form is true and correct. I/We understand that if any information is falsely reported, the City of Dublin may take legal action against me/us. Signature of owner PRINT NAME date Signature of owner PRINT NAME HAVE YOU FILLED OUT THE TOP PART OF THIS FORM?? date Exhibit C STATE OF CALIFORNIA ) COUNTY OF ALAMEDA ) On , 20 before me, _ Notary Public, the undersigned, personally appeared personally known to me proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that (he/she/they) executed the same in (his/her/their) authorized capacity(ies), and that by (his/her/their) signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature r E~TT 9 ~ ~ ~ a~ ~ Memorandum of Affordable Housing Agreement for the Constnzction of Inclusionary Units and the Payment of Fees In-Lieu of Constructing Inclusionary Housing Units ~~~ ~ ~ `~ C~~) ~ c.,c.~ RECORDING REQUESTED BY: CITY OF DUBLIN When Recorded Mail To: City CIerk City of Dublin 100 Civic Plaza Dublin, CA 94568 Fee Waived per GC 27383 re~~ ~ a~-r~ Space above this_line for Recorder's use MEMORANDUM OF AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS Dublin RE Investors, a California limited Lability company. First Phase (247 Residential Lots) of the Fallon, Village Project This Memorandum of Affordable Housing Agreement for the Construction of Inclusionary Units and the Payment of Fees In-Lieu of Constructing Inclusionary Units (this "Memorandum") is entered into on this ,day of , 2007, by and between the City of Dublin, a Municipal Corporation (hereafter "City") and Dublin RE Investors, L.L.C., a California limited liability company, ("the Developer") 1. .Pursuant to the Affordable Housing Agreement for the Construction of Inclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units,. dated as of _, 2007 by and between City and Developer (the "Agreement"), the Parties have set forth their respective obligations with respect to the provision of affordable units on lands presently owned by Developer known generally as the Fallon Village Project and more specifically described in Exhibit A (the "Property"). These. obligations run with the land. 2.: The Agreement sets out the specific obligations for the construction of Inclusionary Units and payment of fees in lieu thereof in conjunction with the initial 247- residential parcel phase of the development of the Property ("the First Phase"}. It also obligates the Developer to make a Community Benefit Payment, as described in the Agreement, prior to issuance of building permits for each residential unit. Development on, and the City's approval of subsequent final maps that include, any portion of the Property beyond the First Phase shall require either an amendment to this Agreement or a subsequent affordable housing agreement ("the Subsequent Agreement") setting forth the manner in which the Regulations will be complied with for the remainder of the Project. The Agreement also contains the Developer's covenant, on behalf of itself, and its successors and assigns, that it will not assert the provisions of Government Code section 66458 to require the City to approve additional phased final maps (beyond those for the creation of the 247 residential parcels in the First Phase) until such time as it has entered into the Subsequent Agreement. 3. Developer and City have executed and recorded this instrument to give notice of the Agreement, and the respective rights and obligations of Developer and City. The unrecorded Affordable Housing Agreement forthe -Construction of Inclusionary Units and Payment of Fees in Lieu of Constructing Inclusionary Housing Units. is incorporated by reference in its entirety in this Memorandum. . 4. This- Memorandum shall bind and inure to the benefit of the parties and their respective heirs, successors and assigns, subject however to restrictions set forth in the Agreement regarding assignment. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year fu~st above written. CITY OF DUBLIN Dated: ~ e7`7 (~ By: ~, Richard C. Ambrose, ity ager Attest: C- ~~- Ca;vvlinC ~ S~fo ,City Clerk o~P~~-y DUBLIN RE INVESTORS, LLC By: Braddock and Logan Services, Inc. a California corporati n Its Manager: , )e~ ~;W ~ eye cC y~___.--_.~ Dated: _ ~ Z5 p / ~ Bp-~---.. ~' ~ c.E P rc.~g , o ~-,r ** Applicant's Signature shall be notarized prior to returning signed agreement to the City of Dublin Community Development Department. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of L'Ut~'2 fk CcSTt9 ~ t On Jr" I~.$ I o y before me, I`l A ~c~ E . E ~~~ , ~ t~TiRR-CJ ~ y f31--t c- . hate 1 Name and Title of OKxx (.g-, Jane Doe, Notary Pu ic") personally appeared personally known to me ~ (or proved to me on the basis of satisfactory evidence) to be the persons whose narne~) is/are subscribed to the within instrument and acknowledged to me that t~Cr ~- eMti~ he/sheRhey executed the same in his/k~eNthetr authorized Commb~lon s 1576043 CapaCity(ips), and that by hislbe-~eir signatureEd) on the ~ ~ ~,bNc ~ caerotrra ~ instrument the rson ty po con4ro Costo cotnty Pe (s); or the enti u n behalf of Nty comm. Exptrea,t,r, a, which the person( acted, executed the instrument. WITNESS my hand and official seal. Plaoe Notary seal Alwve a~ ~ ' Sgnature or Notary Public OPTIONAL Though the information below is not required by taw, it may prove valuable fo persons relying on the document and could prevent lraudulent rgmq~ and reattachment of this form to another doqume~ n~1: , /- 1 f ~, _ rN, Description of Attached Document'' ~" -h'`_ ,~•,1V/ •Q,~bJ -/~'~f('r„ f~'~u4 ~ Title or Type of Document: ~~R.(t.~11~. ~(:..~-~~ - ~ M"t" T ~a~ - l._,r.`~L~. cY~_~~r~~~ Document Date: Signers} Other Than Named Above: Capacity(iesj Claimed by Signer(s) Signer's Name: ^ Individual ^ Corporate Officer - Tttle(s): ^ Partner - ^ Limited ^ General ^ Attorney in Fact • Top of thumb here ^ Trustee ^ Guardian or Gonservator ^ Other: Signer Is Representing: Number of Pages: Signer's-Name: O lndividuat O Corporate Officer - Tdle(s): ^ Partner - O Limited O General O Attorney in Fact ^ Trustee ^ Guardian or Conservator ^ Other: Signer Is Representing: Top of thumb here ®2006 NatiorW Notary Assaciatbn •9350 De solo Ave., P.O. Box 2402'• Chatsworth, CA 91313-2402 kem No. 5907 Reorder: Call ToB-Free 1-1100-876.6827 lo~~'~ 270 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California Ala:~ti~t~~. ~ SS. County of /~** I On J~'n~ Z7, LCa07 before me, t.~Yc~liYte P Sp}~~ ND+ui-'r~ ~vb~rL , Date ~ Name and T~}le of Officer (e.g., 'Jane Doe, Note ubFc~ personally appeared Neme(s) d L~3'personally known to me ~a,tv~ a soro +~ )b9i~21 CdKontio Alamodo MNGorrrp, ~P1tis ~P 2.201 r p proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and. that by his/her/their signature(s) on the instrument the person(s), or the entity. upon behalf of which the person(s) acted, executed the instrument. WITNESS y hand and gfficial se . /JC~ Place Notary Seal Aoove (~ ( c ~ v " Signature d Notary Public OPT/ONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ^ Individual D Corporate Officer -Title(s): ^ Partner - O Limited ^ General ^ Attorney in Fact ^ Trustee ^ Guardian or Conservator ^ Other: Signer Is Representing: Top of thumb here Number of Pages: Signer's Name: ^ Individual ^ Corporate Officer -Title(s): _ D Partner - ^ Limited ^ General O Attorney in Fact ^ Trustee O Guardian or Conservator ^ Other: Signer Is Representing: Top of thumb here O 2(104 National Notary Asracradon • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313.2402 Item No. 5907 Reorder. Call Tdl-Free 1-800-876.6827 - ~ Braddock & Logan, - Properties at Fallon Village VICIl~IITY MAP ' Orsabr 20D/ t91~}IM PLEASANTON ~X4~ Ie IT A - N011TM NJf TD G1ti wa-..~nwe~~ mow! +..~ ~wr r.~ ww.w.~.. s.~w...r.,~ ~30~.~~~ AMENDMENT NO. 1 TO AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS Dublin RE Investors, a California limited liability company. First Phase (247 Residential Lots) of the Fallon Village Project THIS FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT is hereby entered into this 17th day of June, 2008 by and between the City of Dublin ("the City") and Dublin RE Investors, L.L.C., a California limited Iiability company ("the Developer"). Recitals 1. City and Developer are parties to an Affordable Housing Agreement for the Construction of Inclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units, dated June 5, 2007 ("the Agreement"), which agreement sets forth an alternate method of the Developer's compliance with the Inclusionary Zoning Regulations contained in Chapter 8.68 of the Dublin Municipal Code ("the Regulations") for the first 247 of the 1043 residential lots in the Project. 2. The Agreement refers to the initia1247 residential units in the Project as "the First Phase," and provides that Developer will satisfy its 31-Inclusionary unit obligation in the First Phase (a) by constructing (i) 13 integrated Inclusionary units (single-family homes) on 3,200 square foot lots, which would be affordable in perpetuity, rather than for 55 years as the Regulations require ("the Integrated Units"), and (ii) 13 1-bedroom, secondary dwelling units, which would be rental units and affordable in perpetuity, rather than for 55 years as the Regulations require ("the Second Units"); (b) paying fees in lieu of construction for the remaining 5 unit obligation, which Developer has previously satisfied by paying $447,060 to City on January 30, 2008; (c) making a community benefit payment prior to issuance of each building permit equal to $958.77 (which amount is calculated based on the proposed $1,000,000 contribution divided by the 1,043 units proposed in the Project); (d} including rear yard landscaping and energy efficiency measures to reduce the homeowners' cost of living in the 13 integrated Inclusionary units; and (e) incorporating green building principles into the 26 Inclusionary units. 3. The Regulations provide that 50% of the Inclusionary units shall be allocated to moderate-income households, 20% to low-income households, and 30% to very low-income households, and, pursuant thereto, the 13 integrated units would be allocated as follows: 6 moderate-income units; 3low-income units; and 4 very low-income units. 4. Because of concerns about the difficulty that very low-income purchasers would have in qualifying for financing and paying the high costs of owning single-family homes in the Project (including homeowners' association dues, geologic hazard abatement district assessments, landscaping and lighting assessments, landscape maintenance on the property, utilities, and long term maintenance), Developer has proposed amending the Agreement to Amendment No. 1 Affordable Housing Agreement First Phase of Positano Project June 17, 2008 -3~~ ~~ replace the 4 very low-income integrated inclusionary units with 4 very low-income secondary units. 5. For the same reasons, the City is agreeable to the proposed amendment, and the City Council hereby finds that the alternate method of complying with the Regulations for the 247- unit First Phase of the Project meets the purposes of the Regulations. NOW, THEREFORE, Developer and City for themselves and their respective successors and assigns hereby agree as follows: Section l . Amendment of Section. 7 of the Agreement. Section 7 of the Agreement is amended to read as follows: "7. Unit Bedrooms and Size. The size of the Inclusionary Units shall be consistent with the Site Development Review approval of the Planning Commission, provided however, that minor changes to unit size maybe approved by the Community Development Director through a Site Development Review Waiver. The developer proposes to provide: A. 8 very low-income units (~ four bc~~~~~~ '~ T i 'r ,a ~ 4 1-bedroom Secondary Units); i~ B. 61ow-income units (3 four-bedroom Integrated Units, and 3 one- bedroom Secondary Units); and C. 12 moderate-income units (6 four-bedroom Integrated Units, and 6 one-bedroom Secondary Units). The City hereby finds that, while this breakdown does not reflect the range of numbers of bedrooms provided in the First Phase as a whole, as required by Section 8.68.030.E of the Regulations, the Developer's alternate method of compliance meets the purposes of the Regulations." Section 2. Amendment of Exhibit 3 and Exhibit 4. Exhibit 3 and Exhibit 4 of the Agreement are hereby replaced with Exhibit A and Exhibit B to this Agreement. Section 3. All other provisions of the Agreement shall remain in effect. [EXECUTION PACE FOLLOWS) Amendment No. 1 Affordable Housing Agreement First Phase of Positano Project June 17, 2008 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written. CITY OF DUBLIN Dated: 6 ~ ~ By: ~ ~ ' Richard C_ Ambrose, City ager Attest: -P City Clerk t I~v Dated: Lv Z3 ~ DUBLIN RE INVESTORS, LLC By: Braddock and Logan Services, Inc. a California corporation By: ~ Its anager: a. ~. l.,l 1103324.2 Amendment No. 1 Affordable Housing Agreement First Phase of Positano Project June 17, 2008 i t33~ ~~~ EXHIBIT A Revised Exhibit 3 to the Agreement ("Diagram of Location of Inclusionary Units in the First Phase of the Project"] t3~v~, ~~c~ _ ~/ LEGEND `~~ ®Moderate Income - 12 un _vr_`11 P' ~y Plan 1 -Unit 4 P+t"_ T? '~ Lou 8, 18, 23, 31, 38 & 72 71 ~ Q Plan 3 -Secondary Unit ® 70 s_,, ,~ Lots l6, 20, 30, 33, 35 & 64 ~+ OLow-Income - 6 units 68 ~ Plan I -Unit © Lots 25, 57 & 62 66 '~ Plan 3 -Secondary Unit s Lots Sl, 60 & 67 6© ~ti~ Q Very-Low Income - 8 uni $~ Plan 3 -Secondary Unit ~O 63 ~~ ~ Lots 26, 41,43,47,52, 34,59 & 69 oS~~P 62 - 4 61 f~7 ~~ s 58 t ~ytiO 57 4tiS~ 5® GP za ~9. NOT A PART ~-® Homes with Below Mazket Rate Secondary Units All lots without above symbols are market-rate. # Lot Number * Resident Parking in Driveway for Affordable Secondary Unit ~ Plan and Elevation 1 ~ID 2 m ~ oJ4~ 0 CA~`4R.9 G ® GPti ~ ~ ~~ RIVE T `~ 14 6~ ~U ~ ® 15 17 4 13 ~ ® p ® ~ 11 ,~ ~ 12 N m +-:aoe ice.. u~ y..~ ry. iuiy~~moom nw~ouwn nwac i35 ~ ~~~~ EXHIBIT B Revised Exhibit to the Agreement ["Preliminary Construction Schedule"] l3vOb'L~o Positano First Phase Preliminary Construction Schedule MODELS [ tliU ~~:~ =y . ,,~ ' ~ Moderate` . ~ t taw;. , -Ve L'ow' SubrFot~t Itk@t : w Tot~i ~r ~~ _: K. yq .p Y_ 4 4 ,~ ,:-~,~~:~_ 4 4 .~ _~ ~ .~.= _ t'~ ' 0 0 0 0 8 8 PHASE ONE .. ,., . ' ~,.~;~~"~,°~~~` ~ ~ ~."~ :Mode~dte = Lo~r:a ~:Ve . La_wr F Sub-'["otal-:SM ~ ~!lfAarke~ ~_ ~TotBi '~"~ t1A=~= 13 13 blo~tuoci`~ ~ ~ 11 11 o~idi ~~ ~ ` ~ 2 3 4 9 24 33 PBS, -f? ~=~sb'ijltfi>s :`'~`~x ~ 6% 9% 12% 27% 73% 100% PHASE TWO lt~lri z , .. ~'' ~~: ~~~'~-~ .~ ~ .Moderate' -. ~ ' kow Ve Low `Sub-Toi~,t; BMR :~ IWarket- -, Tota[~ _, -~ f~botfio6c['A.~~ 14 14 . 1~ l!~e b~'rt~od B ~ : ' 12 12 ~"~s 3 1 0 4 4 26 /0 74% 100% PHASE THREE ~< ,~'~' ,~ r Moderate ~~~ Cow;! , rVe'~ .Lover Silb~=Total BMF~ ` Matl~et _`- Total' `- tilaorhood A~'. 16 16 .. , - i~'u '' 12 12 ~'~~' {~a' 2 1 0 3 3 +'"" ~~~ 3 1 1 5 5 ~~~'~t t~'': ~ ~ 5 2 1 8 28 36 i1lfs~' ' ~ ~' 14% 6% 3% 22% 78% 100% PHASE FOUR PHASE FIVE Lott PHASE SlX PHASE SEVEN _~.e_,_, -:~~. _ . _ 12 12 1 12 Exhibit B 13? ~Z ~ PHASE EIGHT PHASE NINE ~,ca :' ~~_ '`:' .Moderate ~.~E~y ~,~ °.X ` Laws; ~Suts=TotaF~ M~~Cef~ ~~°Tota~l; PHASE TEN PHASE ELEVEN in~a'triek~ "` . ~~."`'~ ... ti mMosterate x~a~r'~- Ve" Low SubE-o~a~B . a~ketr ~ =Totat..~; Ma~et ~a'tB~~NOf "hi~roc~B:,;9 8 8 PHASE TWELVE PHASE THIRTEEN fnco~rale '. „~. ..,~`~:: Moderale~ z. Lauir =.,. =Ve . Lover, =Subs-Tota~:BM ~~Mark.`e~: >;~-Total; MarketRatr~ tVei hbtt~fliood-B :{~ 11 11 PHASE FOURTEEN LIN LOTS ,~g~~~~ AMENDMENT N0.2 TO AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES IN LIEU OF CONSTRUCTING INCLUSIONARY HOUSING UNITS Dublin RE Investors, a California limited liability company. First Phase (416 Residential Lots) of the Fallon Village Project THIS SECOND AMENDMENT TO AFFORDABLE HOUSING AGREEMENT is hereby entered into this ~ day of Ato/ , 2008 by and between the City of Dublin ("the City") and Dublin RE Investors, LLC, a California limited liability company and Braddock & Logan Group II, L.P., a California limited partnership (collectively, "the Developer"). Recitals 1. City and Dublin RE Investors are parties to an Affordable Housing Agreement for the Construction of Inclusionazy Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units, dated June 5, 2007, as amended by the First Amendment to said agreement, dated June 17, 2008 ("the Agreement"), which agreement sets forth an alternate method of the Developer's compliance with the Inclusionazy Zoning Regulations contained in Chapter 8.68 of the Dublin Municipal Code ("the Regulations") for the first 247 of the 1043 residential lots (the "Project"). Dublin RE Investors has conveyed some of the residential units subject to this Agreement to Braddock & Logan Group II, L.P., which has become a party to this Agreement. 2. The Agreement refers to the initia1247 residential units in the Project as "the First Phase," and provides that Developer will satisfy its 31-inclusionary unit obligation in the First Phase (a) by constructing (i) 9 integrated inctusionazy units (single-family homes) on 3,200 square foot lots, which would be affordable in perpetuity, rather than for 55 yeazs as the Regulations require ("the Integrated Units"), and (ii) 17 1-bedroom, secondary dwelling units, which would be rental units and affordable in perpetuity, rather than for 55 years as the Regulations require ("the Second Units"}; (b) paying fees in lieu of construction for the remaining 5 unit obligation, which Developer has previously satisfied by paying $447,060 to City on January 30, 2008; (c) making a community benefit payment prior to issuance of each building permit equal to $958.77 (which amount is calculated based on the proposed $1,000,000 contribution divided by the 1,043 units proposed in the Project); (d) including rear yard landscaping and energy efficiency measures to reduce the homeowners' cost of living in the 13 integrated inclusionary units; and (e) incorporating green building principles into the 26 inclusionary units. 3. The Agreement provides that Developer will provide 8 very low-income units (8 1- bedroom Secondary Units); 6low-income units (3 four-bedroom Integrated Units, and 3 one- bedroom Secondary Units); and 12moderate-income units (6 four-bedroom Integrated Units, and 6 one-bedroom Secondary Units) for the 247 unit First Phase. 4. Developer, following further discussions with City staff, has proposed to increase the number of residential lots subject to the terms of the Agreement to 416 units (the "Expanded First Phase"). The Expanded First Phase is depicted in Exhibit A attached to this Amendment. Amendment No. 2 Affordable Housing Agreement First Phase of Positano Project ~~~~ ~-~~ 5. Based on 416 units, the Developer's inclusionazy zoning obligation under the Regulations for the Expanded First Phase would be 52 units (416 times 0.125 equals 52). Developer has proposed to satisfy its 52 unit inclusionary unit obligation for the Expanded First Phase by (a) constructing a total of 52 inclusionary units as follows: (i) 18 integrated inclusionary units, which would be affordable in perpetuity, rather than for 55 years as the Regulations require ("the Integrated Units"), (ii) 34 I-bedroom, secondary dwelling units, which would be rental units and affordable in perpetuity, rather than for 55 years as the Regulations require ("the Second Units"); (b) making a community benefit payment prior to issuance of each building permit equal to $958.77 (which amount is calculated based on the proposed $1,000,000 contribution divided by the 1,043 units proposed in the Project); (c) including reaz yard landscaping and energy efficiency measures to reduce the homeowners' cost of living in the 18 integrated inclusionazy units; and (d) incorporating green building principles into the 130 inclusionary units. 6. To provide deeper affordability than required by the Regulations and the Agreement, Developer has proposed that the inclusionazy units be provided as follows: fifteen (15) 4- bedroom, moderate-income Integrated Units: three (3) 4-bedroom, low-income Integrated Units; nine (9) one-bedroom, low-income Secondary Units; twenty-five (25) one-bedroom, very low- income Secondary Units. 7. The City is agreeable to the proposed amendment, and the City Council hereby finds that the alternate method of complying with the Regulations for the 416-unit Expanded First Phase meets the purposes of the Regulations. NOW, THEREFORE, Developer and City for themselves and their respective successors and assigns hereby agree as follows: Section 1. Amendment of Section 2 of the Agreement. The last sentence of Section 2 is amended to read as follows: "Developer hereby agrees that it will not assert the provisions of Government Code section 66458 to require the City to approve additional phased final maps (beyond those for the creation of the 416 residential parcels in the Expanded First Phase) pursuant to the tentative map approved by the VTM Resolution until such time as it has entered into the Subsequent Agreement." Section 2. Amendment of Section 3 of the Agreement. Section 3 of the Agreement is amended to read as follows: 3. Developer's Compliance with Affordable Housingligation. Developer intends to complete the Project in multiple phases, including a phase that includes 8 model homes. Section 8.68.030 of the Regulations requires that all affordable units in a project be constructed concurrently with a project or phase of a project. The City hereby finds that adherence to the following schedule of conswetion for the Inclusionary Units would constitute construction of the Inclusionazy Units concurrently with the market rate units in the Project as required by Section 8.68.030 of the Regulations. a. Part One of Expanded First Phase (initial 247 Residential Parcels). Amendment No. 2 Affordable Housing Agreement First Phase of Positano Project ~~~~ ~~ (i} Developer has identified a 247-lot portion of the Project, which is depicted in Exhibit 2, that is referred to herein as "Part One of the Expanded First Phase." Developer will satisfy its Affordable Housing Obligation for Part One of the Expanded First Phase by (a) constructing 26 Inclusionary Units (8 1-bedroom, very low- income, Second Units; 3 4-bedroom, low-income Integrated Units; 9 I-bedroom, low- income, Second Uni[s; and 6 4-bedroom, moderate-income Integrated Units); (b) making a $958.77 community benefit payment prior to issuance of each building permit in Part One of the First Phase as provided in Section 5 of the Agreement. Exhibit 3 shows the location and type of the Inclusionary Units to be constructed within Part One of the Expanded First Phase. The City finds that the preliminary construction schedule attached hereto as Exhibit 4, which shows the completion of the 26 Inclusionary Units in the initial three phases along with 78 market rate units, constitutes construction of the Inclusitinary Units concurrently with the market rate units as required by Section 8.68.030 of the Regulations. (ii) Notwithstanding the foregoing, however, Developer will not be permitted to pull permits for more than 208 units in Part One of the Expanded First Phase until Developer has satisfied one of the following requirements: (A) Pay in-lieu fees to fulfill its obligation to construct 5 inclusionary units in Part One of the Expanded First Phase beyond the first 208 units (247 times 0.125 equals 30.875; 30.875 less 26 affordable units constructed equals 4.75), in the amount required by the Regulations and Council Resolution No. 56-02. As required by the Regulations, the entirety of the fee shall be paid at time of issuance of the 209`h building permit in Part One of the Expanded First Phase. Instead of paying the in-lieu fee payments required by this Subsection, Developer may elect to provide an irrevocable standby letter of credit in an amount equal to the in-lieu fee payment required by this section and in a form acceptable to the City Manager and City Attorney, or such other financial security as the City Manager and City Attorney deem adequate to secure payment of the in-lieu fee required by this section. OR (B) Satisfy the requirements set forth in Section 3.b. below by providing the Subsequent Location Diagram and the Subsequent Construction Schedule, which shall have been approved by the City, as provided immediately below. (iii) Conditions for Release of In Lieu Fee. If Developer elects to pay the in-lieu fee, or provide the security in lieu thereof, as provided in Section 3.a.(ii)(A) above, the City shall refund to Developer any monies paid as in-lieu fees pursuant to such subsection and/or release or return any letter of credit or financial security provided to City in place of such in-lieu fees, with the City retaining any accrued interest, upon the Developer's satisfaction of the requirements set forth in Subsection 3.b below, by providing the Subsequent Location Diagram and the Subsequent Conswction Schedule, which shall have been approved by the City. Amendment No. 2 Affordable Housing Agreement First Phase of Positano Projcet ~~~ ~ ~~~ b. Pan Two of Expanded First Phase (Subsequent 169 Residential Parcels). Developer has identified a 169-lot portion of the Project, which is depicted in Exhibit 2, that is referred to herein as the "Part Two of the Expanded First Phase." Prior to development on, and approval of subsequent final maps that include, Part Two of the Expanded First Phase, Developer shall have received the approval of the Community Development Director of (a) a Diagram of Location of Additional Inclusionary Units in the Expanded First Phase of the Project, in a form similar to Exhibit 3 attached hereto ("the Subsequent Location Diagram") and (b) a preliminary construction schedule for the subsequent phase of the Project ("the Subsequent Conswction Schedule"), in a form similar to Exhibit 4 attached hereto. Upon the Community Development Director's approval, the Subsequent Location Diagram and the Subsequent Construction Schedule shall be added to, respectively, Exhibit 3 and Exhibit 4 to this Agreement with respect to the Integrated Units to be constructed in connection with Part Two of the Expanded First Phase. In approving the revised Exhibits 3 and 4, the Community Development Director shall find (a) that the revised Exhibit 3 shows 17 additional very low-income, Second Units and 9 additional moderate-income, Integrated Units; (b) that adherence to the revised Location Diagram and the revised Construction Schedule would constitute construction of 26 additional Inclusionary Units concurrently with Part Two of the Expanded First Phase and (c) that the 26 Inclusionary Units are "reasonably dispersed" throughout the Expanded First Phase, as required by Section 8.68.030.E of the Regulations. Developer hereby agrees that it will not assert the provisions of Government Code section 66458 to require the City to approve additional phased final maps (beyond those for the creation of the 416 residential parcels in the Expanded First Phase) until such time as it has satisfied the requirements of this Subsection. c. If the Building Official or Community Development Director determines that the Inclusionary Units have not been or are not being constructed concurrently with the market-rate units as required by this Section 3, the Building Official shall withhold further issuance of building permits in Part Two of the Expanded First Phase until construction of the Inclusionary Units in the phase has been completed to the satisfaction of the Community Development Director. Notwithstanding the foregoing, Developer shall be permitted to deviate from the preliminary construction schedule in Exhibit 4, provided that Community Development Director finds that the Inclusionary Units are constructed concurrently with the market rate units as required by Section 8.68.030 of the Regulations. Section 3. Amendment of Section 4 of the Agreement. Section 4 of the Agreement is amended by adding the following at the end of such Section: "Upon execution and acceptance by all parties of Amendment No. 2 to the Agreement, the City shall refund to Developer all monies paid to City pursuant to this Section 4 in the amount of $447,060, with the City retaining any accrued interest." Section 4. Amendment of Section 6 of the Agreement. Section 6 of the Agreement is amended by adding the following at the end of such Section: Amendment No. 2 Affordable Housing Agrccment First Phase of Positano Project _ ,,. "E. Se~azate Utilities and Systems for Second Units. The Second Units shall contain sepazate gas and electrical meters, water heaters, and HVAC systems that are separate from the primary unit on the lot." Section 5. Amendment of Section 7 of the Agreement. Section 7 of the Agreement is amended to read as follows: "7. Unit Bedrooms and Size. The size of the Inclusionary Units shall be consistent with the Site Development Review approval of the Planning Commission, provided however, that minor changes to unit size may be approved by the Community Development Director through a Site Development Review Waiver. The Developer proposes to provide in Part One of the Expanded First Phase: A. 8 very low-income units (8 1-bedroom Secondary Units); B. 121ow-income units (3 four-bedroom Integrated Units, and 9 one- bedroom Secondary Units); and C. 6moderate-income units (6 four-bedroom Integrated Units). The developer proposes to provide in Part Two of the Expanded First Phase: A. 17 very low-income units (17 1-bedroom Secondary Units); B. 9low-income units (9 one-bedroom Secondary Units). The City hereby finds that, while this breakdown does not reflect the range of numbers of bedrooms provided in the First Phase as a whole, as required by Section 8.68.030.E of the Regulations, the Developer's alternate method of compliance meets the purposes of the Regulations." Section 6. Amendment of Section 8 of the Agreement. The following subparagraph is added to Section 8.A.i. of the Agreement: "a. The City is presently in the midst of considering altering the manner in which sales prices are calculated under the Regulations. Accordingly, notwithstanding anything to the contrary in this Agreement, in the event that such a change is made, the Developer may elect to calculate sales prices for Integrated Units pursuant to the amended Regulations effective immediately upon the date when such Regulations become effective." Section 7. Amendment of Section 9 of the Agreement. All references in Section 9 to the "First Phase" shall be changed to the "Expanded First Phase". Section 8. Amendment of Section 10 of the Agreement. Developer and City shall execute and acknowledge a revised Memorandum of this Agreement ("Memorandum") substantially in Amendment No. 2 Affordable Housing Agrccment First Phase of Positano Project ~~3~~~-~ the form attached hereto as Exhibit D, and City shall cause the Memorandum to be recorded in the Official Records of Alameda County upon its execution. This Memorandum shall supersede and replace the Memorandum referenced in the Original Agreement. Section 9. Amendment of Exhibit 2, Exhibit 3 and Exhibit 4. Exhibit 2, Exhibit 3, and Exhibit 4 of the Agreement are hereby replaced with Exhibit A, Exhibit B, and Exhibit C to this Agreement. Section 10. All other provisions of the Agreement shall remain in effect. [EXECUTION PAGE FOLLOWS) Amendment No. 2 Affordable Housing Agreement First Phasc of Positano Project ~~~~ z~~ IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written. CITY OF DUBLIN y By: Joni Pattillo, City Manager Attest: I l~ Cazoline Soto, City Clerk Approved as to form Jo akker, City Attorney DUBLIN RE INVESTORS, LLC a California limited liability company By: Braddock and Logan Services, Inc. a California corporation Its Manager ame: Its: BRADDOCK & LOGAN GROUP II, L.P. A California limited partnership By: Braddock and Logan Services, Inc. a California corporation Its General Partner ~.. ame: its: . 1160189.5 Amendment No. 2 Affordable Housing Agreement Firsl Phase of Positano Project l f-1-5 Jb ~'~ ~ EXHIBIT A Revised Exhibit 2 to the Agreement ["Diagram of the First Phase of the Project"] J- i 1 ®Positano Part I of First Phase (247 lots) Positano Part II of First Phase (l 691ots) Subsequent Phase ®(881ots) Final Phase I ~ (5391ots) ~'~'.t, ~__-------------------~ `.,,2 :'`~~ ~ ~ ~, :_~ ~ 't .-., _ , , i - _, `. I _ -~ .! ,_ ~ ~_ _ _ ~,.~~, / ~ ,t` ~,, ~ 1 1 . -, .,~ ~ , `Y ~ -, =.~ ~ ~ _l r~ _: ~,: _ c, ~ it ' _~, I i ~~ -, ~ , . - , ----------J------------------~ i0 17 2009 5.00:12 ~nn•ttbucn -:\19.T y\~xk~hlls\lKh-'csitono amre'IY Dc, aipFo^ Scbseq xn! Phose.0+y ~-~ ~~ ~ EXHIBIT B Revised Exhibit 3 to the Agreement ["Diagram of Location of Inclusionary Units in the First Phase of the Project") «~ \71 ' 70 '" O • 68 \ 66 s 65m ~~~'C S \~So NOT A PART ss \® y 6~ .may. 62. 49 61 + 50 ~ * ~ ' ®' [~ ~ 53 • ~~~~ ~S~ G~ q s 34 MAT~C ~~ F 1 ®:. 2 ~ 4~ GoJ SG~vP C,gHr ~8, G\ 9~ F ~~'o LEGEND ® Moderate Income - 6 units Plan I -Unit Lots 8, 18, 23, 31, 38 & 72 ® Low-Income - 12 units Plan 1 -Unit (3) Lots 25, 57 & 62 Plan 3 -Secondary Unit (9) Lots 47, S I , 52, 54, 59, 60, 64, 67 & 69 Q Very-Low Income - 8 units Plan 3 - Secondary Unil Las 16, 20, 26, 30, 33, 35, 41 & 43 ~-• Homes with Below Market Rate Secondary Units All lots without above symbols are market-rate. # Lot Number * Resident Parking in Driveway for Affordable Secondary Unit _~• Plan and Elevation DRIVE 9 ~ 6® ~® ~ 14p 15 17 Q' 13 (z-le ~I1 ~ I® t~~~~~ EXHIBIT C Revised Exhibit 4 to the Agreement ["Preliminary Construction Schedule"] r i~~4.~ Positano First Phase Preliminary Construction Schedule MODELS Income Level Moderate Low Ve Low Sub-Total BMR Market Total Nei hbofiood A 4 4 Nei hbofiood B 4 4 otal 0 0 0 0 8 8 PHASE ONE Income Level Moderate Low Ve Low Sub-Total BMR Market Totai Market Rate -Nei hbofiood A 13 13 Market Rate -Nei hbofiood B 11 11 Bedroom BMR 1 1 0 2 2 econda Unit 0 7 0 7 7 otal 1 8 0 9 24 33 Perca a of Phase Units 3% 24% 0% 27% 73% 100% PHASE TWO Income Level Moderate Low Ve Low Sub-Total BMR Market Total Market Rate - N hbofiood A 14 14 Market Rate -Nei hbofiood B 12 12 Bedroom BMR 2 1 0 3 3 econda Unit 2 0 3 5 5 o~ Percanta a of Phase Units a 12% 1 3% 3 9% 8 24°k 26 78% 34 100% PHASE THREE Income Lsvel Moderate Low Ve Low Sub-Total BMR Market Total Market Rate -Net hbofiood A 16 16 Market Rate - N hbofiood B 12 12 Bedroom BMR 3 1 0 4 4 Seconds Unit 0 0 5 5 5 otal 3 2 5 10 28 38 P e of Phase Units 8% 5% 13% 26% 74% 100% PHASE SIX Income Level Moderate Low Ve Low Sub-Total BMR Market Total Market Rate -Nei hbofiood B 10 10 PHASE EIGHT Income Level Moderate Low Ve Low Sub-Total BMR Market Total Market Rate -Nei hborhood B 9 9 PHASE NINE Income Level Moderate Low Ve Low Sub-Total BMR Market Total Market Rate -Nei hborhood B 14 14 PHASE ELEVEN PHASE TWELVE Low Sub-Total BMR I Market Total PHASE THIRTEEN Income Level Moderate Low Ve Low Sub-Total BMR Market Total Market Rate -Nei hborhood B 11 11 PHASE FOURTEEN LIN LOTS ~ ~ 2 0~ ~'7 EXHIBIT D Memorandum of Agreement for the Construction of Inclusionary Units ~~~~~~ RECORDING REQUESTED BY: CITY OF DUBLIN When Recorded Mail To: City CIerk City of Dublin 100 Civic Plaza Dublin, CA 94568 Fee Waived per GC 27383 Space about this lint for Recorder's use MEMORANDUM OF AFFORDABLE HOUSING AGREEMENT FOR THE CONSTRUCTION OF INCLUSIONARY UNITS AND PAYMENT OF FEES IN LIEU OF CONSTRUCTING INCLUSIONARY ROUSING UNITS Dublin RE Investors, a California limited liability company. First Phase (416 Residential Lots) of the Fallon Village Project This Memorandum of Affordable Housing Agreement for the Construction of Inclusionary Units and the Payment of Fees In-Lieu of Constructing Inclusionazy Units (this "Memorandum") is entered into on this _ day of , 2008, by and between the City of Dublin, a municipal corporation (hereafter "City") and Dublin RE Investors, LLC, a California limited liability company, and Braddock & Logan Group II, L.P., a California limited partnership (collectively,."the Developer"). 1. Pursuant to the Affordable Housing Agreement for the Construction of Inclusionary Units and Payment of Fees In Lieu of Constructing Inclusionary Housing Units, dated as of June 5, 2007, and as amended on June 17, 2008, by and between City and Developer (the "Agreement"), the Parties have set forth their respective obligations with respect to the provision of affordable units on lands presently owned by Developer, a portion of the 1043 residential parcel Positano Project (the "Project") ,and more specifically described in Exhibit A (the "Property"). These obligations run with the land. 2.. The Agreement sets oui the specific obligations for the construction of Inclusionary Units and payment of fees in lieu thereof in conjunction with the initia1416-residential parcel phase of the development of the Project ("the Expanded First Phase"). It also obligates the Developer to make a Cpmmunity Benefit Payment, as described in the Agreement, prior to issuance of building permits for each residential unit (excepting Second Units) within the Expanded First Phase. Development on, and the City's approval of subsequent final maps that include, any portion of the Property beyond the Expanded First Phase shall require either an amendment to this Agreement or a subsequent affordable housing agreement ("the Subsequent Agreement") setting forth the manner in which the Regulations will be complied with for the remainder of the Project. The Agreement also contains the Developer's covenant, on behalf of itself, and its ~~~ ~~ successors and assigns; that it will not assert the provisions of Government Code section 66458 to require the City to approve additional phased final maps (beyond those for the creation of the 416 residential pazcels in the Expanded First Phase) until such time as it has entered into the Subsequent Agreement. 3. Developer and City have executed and recorded this instrument to give notice of the Agreement, and the respective rights and obligations of Developer and City. The unrecorded Affordable Housing Agreement for the Construction of Inclusionary Units and Payment of Fees in Lieu of Constructing Inclusionary Housing Units is incorporated by reference in its entirety in this Memorandum. 4. This Memorandum shall bind and inure to the benefit of the parties and their respective heirs, successors and assigns, subject however to restrictions set forth in the Agreement regazding assignment. [EXECUTION PAGE FOLLOWS] IN WITNESS WI~REOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written. CITY OF DUBLIN By: ~ ~ ~~~~aJ~=O oni Pattillo, City Manager Attest: ~~~ Cazoline Soto, City Clerk Approved as to form Bakker, City Attorney DUBLIN RE IlvVESTORS, LLC a California limited liability company By: Braddock and Logan Services, Inc. a California corporation Its Manager Name: BRADDOCK & LOGAN GROUP II, L.P. A California limited partnership By: Braddock and Logan Services, Inc. a California corporation Its General Partner By: Name: Its: ~ Y 1i 5(.0 ~ '~a~ CALIFORNIA ALL-PURPOSE ACICNOMiLEDCaIIAEN`I• State of Califomia County of Co/ntra Costa On ~~ Z 5 1 ~ ~ before me, Nancy E. Embrey, Notary Public °"• ~\ (~ ~ rbre Insen me ane a ale Dakar ' personally appeared J e--~T {~~,(~,^,G~ -~ hIM1Cy E. EIIABRE1f Cwmnbvon #E 1578043 • CorMta Cogs 141y Comm. t3tpirst+ Jun rlJun , ZOpp r who proved to me on the basis of satisfactory evidence to be the person(~whose name(~'j dare subscribed to the within instrument and acknowledged to me that ®/she/they executed the same in his/herAheir authorized capaaty(ip~), and that by hisJherRheir signature(! on the instrument the person'($), or the entity upon behalf of which the person( acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS y nd and official seal. v~ ~, ~~ ~ Signature ~- ``~~ ' s or Morsry Puoac Descrfption of Attached Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) P Signer's Name: ^ Individual O Corporate Officer -Title(s): - ^ Partner - ^ Limited O General ^ Attorney in Fact ^ Trustee ^ Guardian or Conservator ^ Other: OPTIONAL Though the inlormatlon below fs not required by law, if may prove valuable to persons relying on the document and ~ Prevent fraudulent rerrroval and reattachment of this lone to another document. IS RE ..k Number of Pages: Signer's Name: O Individual ^ Corporate Officer -Title(s): ^ Partner - ^ Limited ^ General _ ^ Attorney in Fact ^ Trustee Top d thumb here O Guardian or Conservator O Other. _ Signer Is Representing: , 02007 Na16a,a1 Ndary Asaodslon• 9350 Da Solo Anw P.0 Soa 202 •Chsravorh, G flt313.2~¢• wrwA4ardgeJOle 7aD Men, asacr Flaarcler: Cal To1l~kaa 1-BOeS7g.E8z7 ;5~~ ,~~~ • ~ 19149-10 • 1021/2008 TT. wA» MYV/SK Page 1 of 4 FAL. LON VII.LAGE PROPERTY ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF DUSTIN, COUNTY OF ALAMEDA, STATE OF CALIFORNIA, BEING ALL OF THE NORTHWEST QUARTER OF SECTION 35 AS DESCRIBED IN SERIES No. 2003-10$250, AT-AMEDA COUNTY RECORDS, AS WELL AS p PORTION OF THE SOUTH HALF OF SECTION 27 AS SHOWN ON PARCEL MAP 9208 RECORDED ITT BOOK 292 OF MAPS PAGES 16-17, AI.AMEDA COUNTY RECORDS AND A PORTION OF TFIE NORTH HALF OF SECTION 34 AS SHOWN ON SAID PARCEL MAp 9208, LYING WITHIlV TOWNSHIP 2 SOUTH, RANGE 1 EAST, MOUNT DIABLO BASE AND I~RIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL Z BEGIM~iING AT THE COMMON QUARTER'CORNER OF SECTIONS 26 AND 27 AS SHOWN ON S~-ID PARCEL MAP 9208, ALONG THE SECTION TINE COMMON TO SAID SECTIONS 26 AND 27, SAID SECTION LINE BEING ALSO THE WESTERLY LINE OF ~ LANDS OF MUEHLHAUSER, RECORDED IN SERIES Na 2002-097480, ALAMEDA COUNTY RECORDS, 5017TH 00°48'41" WEST 2,642.65 FEET, TO THE COMMON SECTION CORNER OF SECTIONS 26, 27, 34, AND 35; • . THENCE ALONG THE COMMON SECTION LINE OF SECTIONS 34 AND 35, SAID SECTION LINE BEING ALSO THE WESTERLY LINE OF DUBLIN RE INVESTORS, I.LC, SERIES Na 2003-108250, AT.AMEDA' COUNTY RECORDS, SOUTH 00°44'28" WEST 2,635.93 FEET, TO TILE COMMON • QUARTER CORNER OF SECTIONS 34 AND 35; THENCE ALONG THE EAST WEST QUARTER SECTION LINE • EAST-WEST QUARTER SECTION LAVE BEING ALSO THE NORTHI:RLGY LINE OFFIRST '~ME~C'~ TITLE GUARANTY CO., SERIES No. 98388140, AT.AMEDA CO NORTH 89°51'52" WEST 2,651.00 FEET. TO THE SOUTHWEST CORNER OF PARCEL q~, SHOWN ON SAID PARCEL MAP 9208; •• ,• THENCE LEAVING SAID EAST-WEST QUARTER SECTION LINE ALONG THE WESTERLY LINES OF SAID PARCEL ..A ~ THE FOLLOWING SIX (6) COURSES: l) NORTH 33°45'20" WEST 12$.91•FEET; • 2) NORTH 22°56'58" WEST 83.13 FEET; • 3) NORTH 10°41'42" WEST 61.76 FEET; 4) NORTH 03°58'13" WEST 101.75 BEET; ~ NORTH 03 °49' 18" EAST 159.00 FEET; AND • • ' 6) NORTH 30°3S37" WEST 33.48 FEET; THITICE LEAVING SAIp WESTERLY LINE OF SAID PARCEL "A"ALONG THE OF PARCEL, "A", PER No. LLA 07-01 SERIES No. 2007-200949, ALgMEDA COUNTY ItE ORIjS THE.FOIZOWING'THIRTy_N1TTE (39) COURSES: A119149Ve~ayVORDAN:AGMI'-LEGALS\1,EGAI,-0V1?tAi.Ldoc ,~~o~~~~ 19149-10 l OR 1!2008 MW/SK EXFIIBIT "A" Page 2 of 4 1) SOUTH 66°40'50" WEST 9239 FEET TO THE BEGINNING OF ANON-TANGENT CURVE TO THE LEFT; 2) ALONG SAID NON-TANGENT CURVE TO THE LEFT, FROM WHICH THE RADIUS POINT BEARS SOUTH 66°40'50" WEST, HAVING A RADIUS OF 1,100.00 FEET; THROUGH A CENTRAL ANGLE OF p5°l9'S2", FOR AN ARC DISTANCE OF 10235 FEET; 3) NORTH 28°39'03" WEST 58.57 FEET TO Tf~ BEGINNING OF A CURVE TO THE RIGHT; 4) ALONG SAID CURVE TO THE RIGHT HAVING A' RADIUS OF 80.00 FEET, THROUGH A CENTRAL ANGLE OF 11°4T55"; FOR AN ARC DISTANCE OF 16.47 FEET; TO A POINT OF REVERSE CURVATURE; 5) ALONG SAID REVERSE CURVE HAVING A RADIUS OF 150.00 FEET, THROUGH A CENTRAL . ANGLE OF 54°01'09", FOR AN. ARC DISTANCE OF 141.42 FEET; 6) NORTH 70°52'17" WEST 655 FEET TO THE BEGINNING OF A CURVE TO THE LEFT '~ ALONG SAID CURVE TO THE LEFT HAVING A RADIUS OF I20.00 FEET, THROUGH A CENTRAL ANGLE OF 19°OT43", FOR AN ARC DISTANCE OF 40.06 FEET; • 8) NORTH 90°00'00" WEST 189.85 FEET TO THE BEGINNING OF ANON-TANGENT CURVE TO THE LEFT; 9) ALONG SAID NON-TANGENT CURVE TO THE LEFT, FROM WHICH THE RADIUS POINT BEARS SOUTH 89°57'24" WEST; HAVING A RADIUS OF 886.00 FEET; THROUGH A CENTRAL ANGLE OF 32°31'05", FOR AN ARC DISTANCE OF 502.85.FEET; 10) NORTH 53°02'51" EAST 195.67 FEET; . 11) NORTH 28°OT47" EAST 284.00 FEET; 12) NORTH 49°41'57" EAST 122.85 FEET; TO THE BEGINNING OF A CURVE TO THE RIGHT; 13) ALONG SAID CURVE TO THE RIGHT HAVING A RADIUS OF 42.00 FEET, THROUGH A CENTRAL ANGLE Ok' S9°26'40", FOR AN ARC DISTANCE OF 43.58 FEET; 14) SOUTH 70°51'23" EAST 49.05 FEET; 15) SOUTH 75°22'09" EAST 45.89 FEET; 16) NORTH 90°00'00" EAST 58.47 FEET; 17) NORTH 69°08'47" EAST 3I.73 FE)rT; ] 8) NORTH 58°52'28" EAST 119.88 FEET; 19) NORTH 10°47' 11 "WEST 268.63 Fl•ET; 20) NORTH 07°19'39" WEST 250.02 FEET; 21) NORTH 20°43'33" WEST 90,89 FEET; F.~19149Ue~]sVORDi1N-AGMI'_I.EGAySV.EGAL-0vEltwL.i..doc i~~ ~ z~~ • 19149-10 10!21/2008 . Ivl<WSK E.~IBIT "A" . • ~ . Page 3 of 4 • 22) NORTH 12°41'35" WEST 30.86 FEET; Z3) NORTH 00°44'30" WEST 120.97 FEET; 24) NORTH 17°41'12" WEST 147.19 FEET; 25) NORTH 00° 19'22" WEST 106.46 FEET; 26) NORTH 17°Sd 10" EAST 64.19 FEET; 27) NORTH 02°18'30" EAST 8136 FEET; 28) NORTH 16°41' 10" EAST 51.40 FEET; • 29) NORTH 37°18'42" EAST 65.35 FEET; 30) NORTH Z 1°23'28" EAST 200.71 FEET; 31) NORTH 71°06'39" WEST 99.04 FEET; 32) NORTH 50°42'23" WEST 48.07 FEET; 33) NORTH 21 °32' 10" WEST 88.40 FEET; 34) NORTH 14°25'13" WEST 134.28 FEET; 35) NORTH ]0°57'46" WEST 96.03 FEET; •• 36) NORTH 00°39'Z4" EAST 140.60 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 37) ALONG SAID CURVE TO THE RIGHT HAVING A RADIUS OF 291.02 FEET, THROUGH A CENTRAL ANGLE OF 49°58'40", FOR AN ARC DISTANCE OF 253.85 FEET; 38) NORTH 71°2452" EAST 82.06 FEET; AND 39) SOUTH 52°39'14" EAST 39.69 FEET; TO THE WESTERLY LINE OF PARCEL "D" AS SHOWN ON SAID PARCEL MAP 9208; THENCE ALONG SAID WESTERLY LINE OF PARCEL "D"THE FO] LOWING TWO (2) COURSES: l) • NORTH 48°46'28" EAST 1,739.56 FEET; • 2) NORTH 00°09'11" WEST 235.96 FEET TO A.POINT ON THE QUARTER SECTION LINE OF SAID SECTION 27, SAID QUARTER SECTION LINE BEING ALSO THE SOUTHERLY LINE OF ACACIA PARTNERS II, SERIES No. 2005-037868, AI-AMEDA COUNTY RECORDS, AND THE NORTHERLY LINE OF SAID PARCEL `U"; THENCE ALONG SAID QUARTER SECTION LINE SOUTH 89°40'26" FAST 1,485.76 FEET; TO SAID POINT OF BEGINNWG. • CONTAINING 328.58 ACRES, MORE OR LESS. P.V9149VepIsVDRDAN-AGMT-I.1;GALSII.gGAL-0VERAl1_doc tLop~2-~o • 19149-10 10/21/2008 MW1SK . EXf~BIT "A" . Page 4 of 4 PARCEL 2 BEGINNING AT THE COMMON CORNER OF SECTIONS 26, 27, 34, AND 35 ALONG TH8 SECTION LAVE COMMON TO SECTIONS 26 AND 35, SAID SECTION LINE ALSO BEING THE SOUTHERLY LINE OF THE LANDS OF MIJEHLHAUSER, RECORDED IN SERIES No. 2002-097480, AI.AMEDA COUNTY RECORDS, SOUTH 88°43'28" EAST 2640.61 FEET TO THE NORTH QUARTER CORNER OR SECTION 35; THENCE ALONG THE NORTH SOUTH QUARTER SECTION LINE OF SAID SECTION 35, SAID . QUARTER SECTION LINE BEING ALSO THE WESTERLY LINE. OF ACACIA PARTNERS I, LLC. RECORDED IN SERIES No. 2005-037867, AI.AMEDA COUNTY RECORDS, SOUTH 00°55'27" WEST 2636.26 FEET TO THE CENTER QUARTER CORNER OF SECTION 35; TI-TENCE ALONG THE EAST-WEST QUARTER SECTION LIIVE OF SAID SECTION 35, SAID QUARTER' SECTION LINE BEING ALSO THE NORTHERLY LINE OF. THE LANDS OF CROAK, RECORDID IN SERIES No. 79-229985, AI.AMEDA COUNTY RECORDS; NORTH 88°4~'T9" WEST 2631.95 FEET TO THE WEST QUARTER CORNER OF SECTION 35; THENCE ALONG THE COMMON SECTION LINE OF SAID SECTIONS 34 AND 35, BEING ALSO THE EASTERLY LINE OF PARCELS "C" AND "D° OF PARCEL MAP 9208 RECORDED•IN BOOK . 292 OF MAPS. PAGES 16-17, ALAMEDA COUNTY RECORDS; NORTH 00°44'09" EAST 263621 I7;ET TO SAID POINT OF BEGINNING. 'BEARINGS, DISTANCES AND ARI3A CALCULATION ARE BASED ON RECORD OF SURVEY No. 1675, BOOK 25 RECQRD OF. SURVEYS PAGES 31-32 ALAMEDA COUNTY RECORDS. CONTAIIVING 159.54 ACRES, MORE OR LESS. END OF DESCRIPTION. Tffi5 DESCRIPTION IS FOR 7'gE PURPOSE OF AN Ea~ICT ONLY AND DOES NOT CONSTITUTE A LEGAL DESCRIPTION FOR TEE PURPOSES OF CREATING NEW DIVISIONS OF LAND OR CONVEYANCE. IIfACKAY& comps CNR, ENGINEB2ING~LAND PVWNUV(U~IAND 518i'VEYING 5142 Fronldn CkNe Stile B. Pleacrntort CA 94588-9355 (925j 225-0690 P.\1914911ega1sVORDAN-,1~GM7'-L,EGALS1I.gGAL-0VERA(,Ldo° ~~~~~ NOTE: BEARINGS AND DISTANCES 11 DAB AI . WITHOUT ~AN ASTERISK(.) WERE TAKEN 22 ~ 23 FROM RECORD OF SURVEY N0. 1005 ' ---~--- ACACIA PARTNERS Ii, LLC. ' ' 27 ~ 2B SERIES No. 2005-03785a .~ ~ ACACIA PARTNER5 ~ APN 905-0003-014-03 ~ SERIE5 No. 2005--037353 ~~ ~ APN say-o0za-001 ;y POB ~ N89°40'26'W 1_48_5.76' i PARCEL i PMR 8327 ~~6 ~ 235.96' ~ 1/4 CORNER OF ~ ~~~~ SECTIONS 26 & 27 BK. 29$ PM P. 14-1 ~~~~ PARCEL 'D' NI ' '^--- ~ ,`~~' ~~ ~~ .r ~ MJEHLHAUSER D.S.R.S.D. ~ ~ py 9208 ' N 1 SERIES N~. 2002-097430 ~ ---- :~------- I „~ ~ti HB292 Y PG18-17 ~,,, APN 905-Q003-012 PARCEL F ~ ~ 813.911 AC. '~ I ~ ~ ' TRACT 7253 ~ ~ ~ MOTE BEARINGS ANO DISTANCES WITH ~ BK.253 M P.73-7a I PARCEL A $ AN ASTERISK(.) FOR THE NW 1/4 OF ~ ~~-~ ,_____ ~~. No. LI.A, 07-01 zI SECTION 35 WERE TAKEN fROM ~ . ~ - ~~ ~ ;~ SERIES No. 2007-200949. ~ .RECORD OF SURVEY N0. 1675s ~ 14.87f AC. ~ ~ DUBLIN ~ ~ `~ ~ 27 26 •N88`43'28'W ~ ~ ~ 1 1PARCEL B' s .. ~~ ~ _ 2640.61 • I ~ t RANCH ; ~ ~ ~ , ~ PO$ PARCEL' 2 ~,yor ~ ~ ' DDHLiN' BS INV&STORS ~ ~ ~ `,tn `g~ ~ I '^ •SI~RIES No. 2003-1082610 r 1 *~ ,' ~,,,,,~ ~ ,'' _ ~ ~ ~ • ~ ~ ROS N0. 1876 i.°, I ~ ~ :•- • r.' ~r----- ~', ~ `'i ~ ~ ~ ~4 R.0.9. PG31-S2 ~o ~ ; ,^~ ~° ~~ / ; ~ ~ ~ N ~ APN 905-0002-009 • ~ 1 U, 4 N ' ~ ~ I W I ~ 169.S4t AC. `~ x "' O • ~ ~_-__.N ; o NW 1 /4 SECTION 35 h I -Z- $ o PARCEL 'C' '~°' ~' ~ T. 2 5. R: 1 E. ,N 1 Q o 0 t::, PARCEL 'A' ~`. z°. z2a' M.D.B. do M. ~ ~ ~ s N z ~` I w O U W d 1/4 CORNER OF ~ ~~ ; SECTIONS 34 Ec 35 Z~ a N~ a _ _ N89'S1'S W~ 2651.00' ~ ~ ---~.~..~~_..... _ ~N88'43'19"W 2631.95'• F1R5T AMERICAN TITLE i CROAK - GUARANTY CO. i SERIES No. 79--229935 • ~ • SERIES No. 933aa140 i APN 905-ObOZ-002 ' APN gas-0027-005 ; .APN 905-0002-002-01 (JORDAN RANCHI ~ • ~ LEGEND: `' -'-- BOUNDARY LINE 0' 500' 1 OOO' 2000' ----------- EXISTING LOT UNE - P08 POINT OF BEGINNING . ~~+ ! PAGE 1 OF 1 • ~ ~~ ~ ~~ FAI,LON VILLAG$ PROPERTY c~ ENGINEEtENG~lJ1ND PLANMNG~uwD SURVEYING • Rleoaonton, G ro~s~ _ ~.,. ..___ CITY OF DUBLIN ~ COUNTY OF AUWEDA ~p~y~