HomeMy WebLinkAboutThe Sands Apts - Affordability Restrictions & Regulatory AgmtSTAFF REPORT
CITY OF PALM DESERT
HOUSING DEPARTMENT
MEETING DATE: December 13, 2018
PREPARED BY: Jessica Gonzales, Senior Management Analys
REQUEST:
Recommendation
Approve an Affordability Restrictions and Regulatory Agreement
by and between the City of Palm Desert and New Cities
Investment Partners, LLC
By Minute Motion, that the City Council,
1) Approve the Affordability Restrictions and Regulatory Agreement (the
"Agreement") in accordance with the conditions of approval of the New
Cities Investment Partners, LLC ("New Cities") project known as "The
Sands Apartments," substantially as to form; and
2) Authorize the City Manager and/or legal counsel to negotiate and finalize
the Agreement materially consistent with the Project approvals and take any
action necessary to effectuate the Agreement; and
3) Authorize the Mayor or her designee to execute the finalized Agreement
and any documents necessary to facilitate the Agreement.
Strategic Plan
One of the priorities of the City's Envision Palm Desert Strategic Plan, as part of Land
Use, Housing and Open Space, is to facilitate development of high quality housing for
people of all income levels. This request meets that objective by diversifying the City's
housing stock for low income households.
Executive Summary
New Cities will be the developer of the project known as "The Sands Apartments" (the
"Project"). The Project was previously approved by Resolution 2018-18. As a condition
of the Project's approval, New Cities shall enter into the Agreement by which New Cities
shall restrict seventy-eight (78) units of the 388-unit Project to Very Low Income
Households.
This is in compliance with California Government Code Section 65915 et seq. and the
City's Zoning Ordinance (Palm Dessert Municipal Code Section 25.34.040).
P6401-0001\2239492v3.doc
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December 13, 2018 - STAFF REPORT
City - Approve an Affordability Restriction and Regulatory Agreement with New Cities
Investment Partners, LLC (The Sands)
Page 2 of 2
Background Analysis
On April 26, 2018, the City Council approved the Project by adopting Resolution No. 2018-
18, Case No: PP/CUP/EA 16-394. As a condition of the Project's approval, the developer
is required to enter into the Agreement for the affordable housing requirement noted in
condition No. 4 (Exhibit B). The Agreement is required to be executed and recorded in
order for the developer to obtain building permits.
The Project will include 388 total rental units (which is less than the number of units
allowed by Government Code Section 65915 et seq. and the City's Zoning Ordinance).
Seventy -Eight (78) of the rental units (the "Units") will be made available to households
of very low income earning no more than 50% of the Riverside County area median
income ("AMI"), and will be comprised of a blend of one, two and three bedroom units to
be determined at the time the Agreement is finalized. The Units will be dispersed
throughout the development, will remain affordable for 55 years, and will transfer to any
successors -in -interest in the real property during that term.
The Project is being developed as part of a mixed -use high -density residential
neighborhood, and has convenient access to schools, parks, and commercial services.
In addition, a number of amenities are being provided within the Project for the residents
of the entire development.
Staff, therefore, recommends approval of the draft Agreement substantially as to form to
satisfy the requirement of the affordable housing condition of the Project.
Fiscal Analysis
There is no direct fiscal impact with this request. Some costs that may be incurred would
be staff's time to record, implement and monitor compliance of the Agreement.
LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
Robert W. Hargreaves Jan:
City Attorney CtM0e
'' -ctor of Finance
Moore ` - Lauri Aylaia
ctor of Finance City Manager
CONTRACTOR: Lee Newell
New Cities Investment Partners, LLC
1850 Mt. Diablo Boulevard, Suite 337
Walnut Creek, CA 94596
ATTACHMENTS: Agreement Draft
Resolution 2018-18
P6401-0001 \2239492v3.doc -2-
RESOLUTION NO. 2018-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, FOR THE ADOPTION OF A MITIGATED
NEGATIVE DECLARATION, AND APPROVAL OF A DENSITY BONUS,
PRECISE PLAN AND CONDITIONAL USE PERMIT, FOR THE
CONSTRUCTION OF A 388-UNIT APARTMENT PROJECT WITH
CLUBHOUSE, RECREATIONAL AMENITIES, AND ROADWAY
IMPROVEMENTS
CASE NO: PP/CUP/EA 16-394
WHEREAS, New Cities Investment Partners, LLC propose to develop 388 dwelling
units on an undeveloped 18.13 acre site, abutting James Carter Elementary School and
Venezia to the west with site improvements consisting of new two- and three-story
apartments, clubhouse building, and on -site recreational amenities ("Project"); and
WHEREAS, vehicular access to the site is provided along Hovley Lane East and
street improvements include the signalization of the intersection of Hovley Lane East and
Jasmine Court; and
WHEREAS, the site's proximity to an elementary school, public park, transit lines,
and employment centers is ideal for the development of an apartment project with an
affordable housing component; and
WHEREAS, the applicant has agreed to provide 20 percent (20%) of all units within
the development for very -low income qualified persons, and as such is eligible for a density
bonus provided by AB 2222 (Government Code section 65915 et seq.) and Palm Desert
Municipal Code Section (PDMC) 25.34.040; and
WHEREAS, 20 percent (20%) of the total units are reserved for lower -income
households; and
WHEREAS, under the density bonus provisions of the PDMC, the applicant is
entitled to a density bonus of 111 units, for a total of 426 units, which is more than the 388
units proposed for this project. The Code also allows the applicant to request up to three (3)
concessions from the City's Zoning Ordinance; the agreed upon concessions incorporated
into the project entitlements are: 1) a reduced parking requirement; and 2) elimination of
certain development impact fees on the affordable units; and
WHEREAS, final approval of the project is contingent on developer entering into a
housing agreement (HA) with the City's Housing Department to finalize affordable housing
requirements as specified in project entitlements. The HA shall be signed and completed by
both the City and the developer prior to issuance of a Building Permit.
WHEREAS, the project complies with the goals and policies contained in the City's
General Plan that promote affordable housing, promote a variety of neighborhoods, and
promote a mix of housing choice for current and future residents; and
RESOLUTION NO. 2018-18
WHEREAS, pursuant to section 21067 of the Public Resources Code, Section
15367 of the State California Environmental Quality Act (CEQA) Guidelines (Cal. Code
Regs., tit. 14, § 15000 et seq.), and the City of Palm Desert's ("City's") Local CEQA
Guidelines, the City is the lead agency for the proposed Project; and
WHEREAS, City staff reviewed the Project and prepared an Initial Study pursuant to
State CEQA Guidelines section 15063 to determine if the Project could have a significant
effect on the environment; and
WHEREAS, on the basis of the Initial Study, which concluded that the Project would
have potentially significant impacts but that those impacts could be reduced to less than
significant levels with implementation of the proposed mitigation measures, the City
determined that a subsequent Mitigated Negative Declaration ("MND") should be prepared
for the Project, and an MND was prepared pursuant to Public Resources Code sections
21064.5 and 21080, subdivision (c), and the State CEQA Guidelines section 15070 et seq.;
and
WHEREAS, the City distributed a Notice of Intent to Adopt a MND pursuant to State
CEQA Guidelines section 15072 on July 25, 2017; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
the 20th day of June 2017, the 15th day of August 2017, and the 20th day of February 2018,
previously hold duly noticed public meetings where members of the public were afforded an
opportunity to comment on the Project; and
WHEREAS, the City determined that after public notice of availability of the MND
had been given, but prior to its adoption, new information was added to the MND to clarify
and amplify the MND, and revisions were added in response to comments on the Project's
effects identified in the proposed MND which are not new avoidable significant effects; and
WHEREAS, although revisions to the subsequent MND do not constitute substantial
revisions as the revisions did not identify any new, avoidable significant effects or require
new measures or revisions to reduce effects to less than significant, the City decided to
recirculate the MND pursuant to CEQA Guidelines section 15073.5 in an abundance of
caution; and
WHEREAS, on February 1, 2018, the City recirculated the subsequent MND for
public review by distributing a second Notice of Intent to Adopt a subsequent MND pursuant
to State CEQA Guidelines section 15072; and
WHEREAS, the City provided copies of the revised draft subsequent MND and Initial
Study to the public and the State Clearinghouse for at least a 30-day review and comment
period beginning on February 2, 2018 and ending on March 5, 2018, pursuant to Public
Resources Code section 21091(b); and
WHEREAS, in order to align the public comment period with that of state agencies
and address public comment, the City extended the public comment period through March
14, 2018, and provided notice of the same; and
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RESOLUTION NO. 2018-18
WHEREAS, pursuant to Public Resources Code section 21081.6 and State CEQA
Guidelines section 15074(d), the City has prepared a program for reporting on or monitoring
the changes which it has either required in the project or made a condition of approval to
mitigate or avoid significant environmental effects (the "Mitigation Monitoring and Reporting
Program" or "MMRP"), which is attached hereto as Exhibit "A"; and
WHEREAS, as contained herein, the City has endeavored in good faith to set forth
the basis for its decision on the proposed Project; and
WHEREAS, the City has endeavored to take all steps and impose all conditions
necessary to ensure that impacts to the environment would not be significant, which are
attached hereto as Exhibit "B"; and
WHEREAS, all of the findings and conclusions made by the City pursuant to this
Resolution are based upon the oral and written evidence before it as a whole; and
WHEREAS, the Planning Commission has reviewed the MND, Initial Study, and all
other relevant information contained in the record regarding the Project; and
WHEREAS, on February 20, 2018, at its regular scheduled meeting, the public was
afforded an opportunity to comment on the Project and the MND and the Initial Study, and
the Planning Commission discussed and continued the Project, the MND and the Initial
Study until March 20, 2018; and
WHEREAS, on March 20, 2018, the Planning Commission, the public was afforded
an opportunity to comment on the Project and the MND and the Initial Study, and the
Planning Commission discussed and considered the Project and the MND and Initial Study;
and
WHEREAS, the Planning Commission took action recommending approval of the
project to the City Council subject to Building No. 4, identified in the Site Plan, being
reduced from three stories to two stories in height; and
WHEREAS, the City Council held a public hearing on April 12, 2018, and continued
the public hearing to April 26, 2018, to allow for community meeting to be held between the
applicant and surrounding property owners; and
WHEREAS, the City Council met on April 26,2 018, and at said public hearing, upon
hearing and considering all testimony and arguments, if any, of all interested persons
desiring to be heard, the City Council did make the following findings to justify the approval
of said request:
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
3
RESOLUTION NO. 2018-18
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, AS FOLLOWS:
SECTION 1. Recitals. The City Council hereby finds that the foregoing recitals are
true and correct and are incorporated herein as substantive findings of this Resolution.
SECTION 2. Compliance with the California Environmental Quality Act. As the
recommending body for the Project, the Planning Commission and City Council have reviewed
and considered the information contained in the MND, Initial Study, and administrative record
on file with the City and available for review at 73510 Fred Waring Drive, Palm Desert,
California. The City Council finds that the MND and Initial Study have been completed in
compliance with the CEQA (Pub. Res. Code § 21000 et seq.: "CEQA") and the State CEQA
Guidelines.
SECTION 3. Findinas on Environmental Impacts. In the City's role as the lead agency
under CEQA, the City Coucnil finds that the MND and Initial Study contain a complete and
accurate reporting of the environmental impacts associated with the Project. The City Council
further finds that the documents have been completed in compliance with CEQA, the State
CEQA Guidelines, and City of Palm Desert local CEQA guidelines. The City Council further
finds that all environmental impacts of the Project are either insignificant or can be mitigated to
a Tess than significant level pursuant to the mitigation measures outlined in the MND, Initial
Study, and the Mitigation Monitoring and Reporting Program. The City Council further finds
that there is no substantial evidence in the record supporting a fair argument that the Project
may result in significant environmental impacts, and that any comments received to date
regarding the Project have been examined and determined not to modify the conclusions of
the MND or the City Council. Furthermore, the City Council finds that the MND has not been
substantially revised after public notice of its availability and recirculation is not required.
(State CEQA Guidelines, § 15073.5.) The City Council finds that the MND contains. a
complete, objective, and accurate reporting of the environmental impacts associated with the
Project and reflects the independent judgment of the City Council.
SECTION 4. Findinas on Conditional Use Permit. In recommending approval of this
project, the City Council makes the following findings in accordance with PDMC
Section 25.72.050:
1. That the proposed location of the conditional use is in accord with the objectives
of this title and the purpose of the district in which the site is located.
The purpose of the Planned Residential (PR) zoning district is to provide areas
flexibility in residential development by encouraging creative and imaginative
design for the development of residential projects with densities between 4.0 to
40 dwelling units per acre and allows multi -family developments to be considered
through a Conditional Use Permit (CUP). The proposal to develop multi -family
housing with integrated affordable units at this location complies with the City's
goals and the objectives of the zoning designation, and the project's density
complies with the density limits established under the PR zoning district. In
1989, the City approved a development agreement for the development of a 55-
acre community with an affordable housing component. Portions of the
development agreement (DA) have been executed and this portion of that project
is undeveloped. Development of the project site complies and exceeds the
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RESOLUTION NO. 2018-18
minimum requirements established in the development agreement by providing
additional affordable housing units in compliance with the State's density bonus
provisions.
2. That the proposed location of the conditional use and the conditions under which
it would be operated or maintained will not be detrimental to the public health,
safety, or welfare, or be materially injurious to properties or improvements in the
vicinity.
The proposed location and development of this project at this site will be
monitored and cared for by an on -site manager. Maintenance issues or resident
complaints can be addressed on -site. As designed, and as conditioned, the
project will not be detrimental to the public health, safety, or welfare, as the
project is designed below the maximum height permitted by the zone, contains
significant landscape screening along the southern property line to limit visual
intrusion into surrounding communities, and has landscape setbacks along the
single-family community bordering the project to the west. Similar multi -family
apartments have been constructed in the City and none have been detrimental to
public health and safety. Adequate off-street parking is provided at the site and
the proximity of the project to employment centers, schools, and City parks
encourages walking and non -motorized transportation. Roadway improvements
along Hovley Lane East ensure efficient traffic movements near the project site.
3. That the proposed conditional use will comply with each of the applicable
provisions of this title, except for approved variances or adjustments.
The proposed development complies with the development standards of the PR
zoning district, including maximum building height, minimum unit sizes, and
setbacks. The City's parking requirements, listed under PDMC Section 25.46.040
requires a parking ratio of two (2) parking space per unit for 768 total parking
spaces. The project proposes a parking ratio of 1.82 space per unit, resulting in
699 total parking space. The applicant has requested a modification to the
parking standards in accordance with the State and City density bonus
provisions. Other apartment complexes have parking standards that are below
the required 2 space per unit, including the adjacent Canterra Apartments. To
date, staff is not aware of any on -going parking issues at existing apartment sites
and the 1.82 ratio is adequate to meet the parking needs of the proposed
community.
4. That the proposed conditional use complies with the goals, objectives, and
policies of the City's General Plan.
The proposed development complies with goals and objectives of the City's
General Plan, in that it provides affordable housing units in accordance with the
City's Land Use & Community Character and Housing Elements. The project
complies with the General Plan intent and purpose of the Town Center
Neighborhood designation by developing multi -family housing within walking
distance of commercial activities and meets several long-range goals of multi-
family housing by including the following: mixed affordability, recreational
5
RESOLUTION NO. 2018-18
amenities, a pedestrian focus, and affordable housing in proximity to transit and
educational facilities.
SECTION 5. Adoption of the Mitiaated Neaative Declaration. The City Council
approves and adopts the subsequent MND prepared for the Project.
SECTION 6. Adoption of the Mitigation Monitorina and Reportina Proaram. The City
Council approves and adopts the Mitigation Monitoring and Reporting Program prepared for
the Project, attached hereto as Exhibit "A".
SECTION 7. Approval. The City Council hereby approves the applied density bonus,
the Precise Plan, and Conditional Use Permit applications for the Project.
SECTION 8. Approval. The City Council hereby approves and adopts the Project
subject to the Conditions of Approval attached hereto as Exhibit "B".
SECTION 9. Custodian of Records. The documents and materials that constitute the
record of proceedings on which these findings are based are located at the City's office at 73-
510 Fred Waring Drive, Palm Desert, CA 92260. Rachelie Klassen, the City Clerk, is the
custodian of the record of proceedings.
SECTION 10. Notice of Determination. The City Council approves the Project, and
directs Staff to file a Notice of Determination with the County of Riverside and the State
Clearinghouse within five (5) working days of any Project approval.
SECTION 11. Execution of Resolution. The Mayor of the City Council signs this
Resolution and the City Clerk shall attest and certify to the passage and adoption thereof.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm
Desert, California, at its regular meeting held on the 26th day of April 2018, by the following
vote, to wit:
AYES: HARNIK, KELLY, NESTANDE, WEBER, and JONATHAN
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ATTEST:
RA ELL D. ITY CLERK
CITY OF PALM DESERT, CALIFORNIA
SABB%NA I HAN, MAYOR
6
RESOLUTION NO. 2018-18
Section
Number
4. Biological
Resources
Sectlnn
Number
5. Cultural
Resources
Mitigation Measures
BIO-1: The applicant shall ensure that any
construction activities that occur during the nesting
season (February through August) will require that
all suitable habitats be thoroughly surveyed for
presence of nesting birds by a qualified biologist
before commencement of clearing. If any active
nests are observed. construction activities must he
prohibited within a 500-foot buffer around the nest
until the nestlings have fledged. All construction
activity within the vicinity of active nests must be
conducted in the presence of a qualified biological
monitor. Construction activity may encroach into the
buffer area at the discretion of the biological
monitor.
Mitigation Measures
CR-1: If during the course of grading or
construction, artifacts or other cultural resources are
discovered. all grading on the site shall he halted and
the applicant shall immediately notify the City
Planner. A qualified archaeologist shall be called to
the site by. and at the cost of. the applicant to
identify the resource and recommended mitigation if
the resource is culturally significant. The
archaeologist will he required to provide copies of
any studies or reports to the Eastern Infomtation
Center for the State of California located at the
University- of California Riverside and the Aqua
C'aliente'I'rihal Historic Preservation Office (TI-PO)
for permanent inclusion in the Agua Caliente
Cultural Register.
CR-2: Thc presence of an approved Native
American Cultural Resource Monitor(s) shall be
required during any ground disturbing activities
(including archaeological testing and surveys).
Should buried cultural deposits be encountered, the
monitor may request that destructive construction
halt and the monitor shall notify a qualified
archaeologist (Secretary of the Interior's Standards
and Guidelines) to investigate and, if necessary.
EXHIBIT "A"
MITIGATION MONITORING AND REPORTING PROGRAM
The Sands Apartments
Mitigation Monitoring and Reporting Program
Responsible for
Monitoring
Developer
Planning
Department
Qualified Biologist
Timing
Prior to any
ground
disturbance
Impact after
Mitigation
Less than
significant
Thc Sands Apartmcnts
Mitigation Monitoring and Reporting Program
Initial Study -'Mitigated Negative Declaration
January 201 g
Responsible for Impart after
\1 'coring Mitigation
Developer
Planning
Department
Qualified
Archaeologist
Developer
Planning
Department
Qualified Native
American Cultural
Resource Monitor
riming
During grading
and other
ground
disturbing
activities
Less than
significant
nt
During grading Less than
and other significant
ground
disturbing
activities
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RESOLUTION NO. 2018-18
Section
Number
I6.
Transportation
Mitigation Measures
prepare a mitigation plan for submission to the State
ltistonc Preservation Office and the Agua Caliente
Tribal Historic Preservation Office (THPO). The
archaeologist will he required to provide copies of
any studies or reports to the Eastern information
Center for the State of California located at the
University of Rivenidc and the Agua Caliente
'MP() for permanent inclusion in the Agua Caliente
Cultural Register.
TRA 1: The applicant is responsible for the
installation of the traffic signal at Hovley Lane East
and the Project's entrance, prior to completion of
Project construction.
'I'RA 2:'Ihe applicant will participate itt the funding
or construction of off --site improvements through the
payment of the 'Transportation Uniform Mitigation
Fees (TUMF) and City of Palm Desert Development
Impact Fees (DIF), or a fair share contribution as
directed by the City. These fees, required as standard
conditions, assist in alleviating cumulative impacts.
The Sands Apartment,
Mitigation Monitoring and Reporting Program
Initial Study/Mitigated Negative Declaration
January 2018
Responsible for Impact after
Monitoring Mitigation
Developer
Planning
Department
Developer
Planning
Department
Timing
Prior to project Less than
completion Significant
Prior to 1.ess than
grading and Significant
other ground
disturbing
activities
8
RESOLUTION NO. 2018-18
EXHIBIT "B"
CONDITIONS OF APPROVAL
CASE NO. PP/CUP/EA 16-394
DEPARTMENT OF COMMUNITY DEVELOPMENT:
1. The development of the property shall conform substantially with exhibits on file with
the Department of Community Development, as modified by the following conditions.
2. The applicant agrees that in the event of any administrative, legal or equitable action
instituted by a third party challenging the validity of any of the procedures leading to the
adoption of these Project Approvals for the Project, or the Project Approvals
themselves, Developer and City each shall have the right, in their sole discretion, to
elect whether or not to defend such action. Developer, at its sole expense shall defend,
indemnify, and hold harmless the City (including its agents, officers and employees)
from any such action, claim, or proceeding with counsel chosen by the City, subject to
Developer's approval of counsel, which shall not be unreasonably denied, and at
Developer's sole expense. If the City is aware of such an action or proceeding, it shall
promptly notify Developer and cooperate in the defense. Developer upon such
notification shall deposit with City sufficient funds in the judgment of City Finance
Director to cover the expense of defending such action without any offset or claim
against said deposit to assure that the City expends no City funds. If both Parties elect
to defend, the Parties hereby agree to affirmatively cooperate in defending said action
and to execute a joint defense and confidentiality agreement in order to share and
protect information, under the joint defense privilege recognized under applicable law.
As part of the cooperation in defending an action, City and Developer shall coordinate
their defense in order to make the most efficient use of legal counsel and to share and
protect information. Developer and City shall each have sole discretion to terminate its
defense at any time. The City shall not settle any third party litigation of Project
Approvals without Developer's consent, which consent shall not be unreasonably
withheld, conditioned or delayed, unless Developer materially breaches this
indemnification requirement.
3. The development of the property described herein shall be subject to the restrictions and
limitations set forth herein which are in addition to the approved development standards
listed in the PDMC, and state and federal statutes now in force, or which hereafter may be
in force.
4. The applicant shall enter into a Housing Agreement (HA) with the City's Housing
Department to finalize affordable housing requirements as part of this project. No Tess
than 20 percent (20%) of all units within the project shall be available at affordable rents
as specified in the HA. The HA shall be signed and completed by both the City and the
applicant prior to issuance of a Building Permit.
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RESOLUTION NO. 2018-18
5. Prior to issuance of a building permit for construction of any use or structure
contemplated by this approval, the applicant shall first obtain permits and/or clearance
from the following agencies:
Coachella Valley Water District (CVWD)
Public Works Department
Fire Department
Evidence of said permit or clearance from the above agencies shall be presented to the
Department of Building & Safety at the time of issuance of a building permit for the use
contemplated herewith.
6. Access to trash/service areas shall be placed so as not to conflict with parking areas.
Said placement shall be approved by the applicable waste company and Department of
Community Development and shall include a recycling program.
7. All sidewalk plans shall be reviewed and approved by the Department of Public Works.
8. The project is subject to the Art in Public Places program. The applicant is encouraged
to utilize the fee for installation of an on -site art piece. Please contact Ms. Deborah
Glickman at (760) 346-0611 to discuss the Art in Public Place process.
9. In the event that Native American cultural resources are discovered during project
development/construction, all work in the immediate vicinity of the find shall cease and
a qualified archeologist meeting Secretary of Interior standards shall be hired to assess
the find. Work on the overall project may continue during this assessment period. If
significant Native American cultural resources are discovered that require a Treatment
Plan, the developer or his archeologist shall contact the Morongo Band of Mission
Indians. If requested by the Tribes, the developer or archeologist shall, in good faith,
consult on the discovery and its disposition.
10. Lighting plans shall be submitted in accordance with PDMC Section 24.16 for any
landscape, architectural, street, or other lighting types within the project area.
11. A minimum of an eight -foot landscape setback shall be provided along the shared
property tine with the Venezia community to the west. A living hedge of landscape shall
be planted in this area and shall be maintained at a height no Tess than fifteen feet. No
carports, garages, or other physical parking structures shall be installed within this
landscape setback.
12. All mitigation measures identified in the CEQA Environmental Assessment and Initial
Study shall be incorporated into the planning, design, development, and operation of
the project.
13. Final landscape plans shall be submitted to the City's Department of Community
Development and the CVWD for review and approval. The landscape plan shall
conform to the landscape palate contained in the preliminary landscape plans prepared
as part of this application, and shall include dense plantings of landscape material. All
plants shall be a minimum of five gallons in size, and trees shall be a minimum of 24-
inch box sizes.
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RESOLUTION NO. 2018-18
14. The applicant shall plant a double -row of shade trees in the landscape setback abutting
the southern property line of the project. The double row of trees shall be identified on
the landscape plan.
15. All perimeter landscape shall be installed during Phase 1 construction of the site.
16. The applicant shall comply with the recommendations made by the City's Architectural
Review Commission (ARC) and as specified in the ARC Notice of Action dated March
31, 2017.
17. Building No. 4, as identified in the site plan, maybe increased to three stories in height.
Building Nos. 8 and 11 shall be reduced to two -stories in height.
18. The applicant shall provide the Community Development Department sufficient
evidence that adjoining residential properties abutting the project are named as
additionally insured during construction of the project.
19. The applicant shall install a block wall at a minimum height of eight (8) feet within the
southern landscape area abutting Portola Country. Final wall placement and design
shall be approved by the Community Development Department.
DEPARTMENT OF PUBLIC WORKS:
20. The applicant shall submit a grading plan to the Department of Public Works for review and
approval. Any changes to the approved civil or landscape plans must be reviewed for
approval prior to work commencing.
21. The grading plan shall identify all proposed and existing utilities.
22. The applicant shall submit a PM10 application for approval. The applicant shall comply with
all provisions of PDMC Section 24.12 regarding Fugitive Dust Control.
23. The applicant shall abide by all provisions of City of Palm Desert Ordinance 843, Section
24.20 Stormwater Management and Discharge Ordinance.
24. The applicant shall submit a final Water Quality Management Plan (WQMP) for approval.
The WQMP shall identify the Best Management Practices (BMPs) that will be used on the
site to control predictable pollutant runoff. Prior to the issuance of a grading permit, the
Operation and Maintenance Section of the approved final WQMP shall be recorded with the
County's Recorder Office and a conformed copy shall be provided to the Department of
Public Works.
25. The applicant shall pay the appropriate signalization fee in accordance with City of Palm
Desert Resolution Nos. 79-17 and 79-55 and drainage fee in accordance with Section 26.49
of Palm Desert Municipal Code and Palm Desert Ordinance Number 653.
26. The applicant shall enter into an agreement and post security, in a form and amount
acceptable to the City Engineer, guaranteeing the construction of all off -site improvements.
Improvements shall include, but are not limited to:
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RESOLUTION NO. 2018-18
A. The installation of a deceleration Zane on Hovley Lane East.
B. The installation of a traffic signal at the intersection of Hovley Lane East and Jasmine
Lane. This intersection shall accommodate crosswalks. The applicant shall intercept
existing fiber optic cable from Portola Avenue to Corporate Way.
C. Remove existing median island between The Sands entry and the existing Canterra
Apartments entry, reconstruct a pavement section, and install a two-way left turn
lane.
D. The eastern access to The Sands should provide a stacking distance for a minimum
of four exiting vehicles and still maintain adequate circulation for inbound traffic.
E. Curb returns on Hovley Lane East must have a minimum radius of 25 feet.
F. The width of the exit lane at the eastern access of The Sands shall be a minimum of
24 feet.
BUILDING AND SAFETY DEPARTMENT:
27. This project shall comply with the latest adopted edition of the following codes:
A. 2016 California Building Code and its appendices and standards.
B. 2016 California Residential Code its appendices and standards.
C. 2016 California Plumbing Code and its appendices and standards.
D. 2016 California Mechanical Code and its appendices and standards.
E. 2016 California Electrical Code.
F. 2016 California Energy Code.
G. 2016 California Green Building Standards Code.
H. 2016 California Administrative Code.
I. 2016 California Fire Code and its appendices and standards.
28. Provide building height and area analysis to determine compliance with CBC Section
503. Justify any area increases to height and area as permitted per CBC Sections 504
and 506.
29. Submit an exit plan that labels and clearly will show compliance with all required egress
features such as, but not limited to, common path of travel, the required number of exits
and separation, occupant load, required width, continuity, travel distance, elevators, etc.
CBC 1001.1.
30. An approved automatic fire sprinkler system shall be installed as required per the City of
Palm Desert Code Adoption Ordinance 1265.
31. A disabled access overlay of the precise grading plan is required to be submitted to the
Department of Building and Safety for plan review of the site accessibility requirements
as per 2013 CBC Chapters 11A & B (as applicable) and Chapter 10.
32. All exits must provide an accessible path of travel to the public way. (CBC 1027.5 &
11 B-206).
33. Detectable warnings shall be provided where required per CBC 11 B-705.1.2.5 and 11 B-
705.1.2.2. The designer is also required to meet all ADA requirements. Where an ADA
requirement is more restrictive than the State of California, the ADA requirement shall
supersede the State requirement.
12
RESOLUTION NO. 2018-18
34. Provide an accessible path of travel to the trash enclosure. The trash enclosure is
required to be accessible. Please obtain a detail from the Department of Building and
Safety.
35. Public pools and spas must be first approved by the Riverside County Department of
Environmental Health and then submitted to the Department of Building and Safety.
Pools and Spas for public use are required to be accessible.
36. All contractors and subcontractors shall have a current City of Palm Desert Business
License prior to permit issuance per PDMC, Title 5.
37. All contractors and/or owner -builders must submit a valid Certificate of Workers'
Compensation Insurance coverage prior to the issuance of a building permit per
California Labor Code, Section 3700.
38. Address numerals shall comply with Palm Desert Ordinance No. 1265 (Palm Desert
Municipal Code 15.28. Compliance with Ordinance 1265 regarding street address
location, dimension, stroke of line, distance from the street, height from grade, height
from the street, etc. shall be shown on all architectural building elevations in detail. Any
possible obstructions, shadows, lighting, landscaping, backgrounds or other reasons
that may render the building address unreadable shall be addressed during the plan
review process. You may request a copy of Ordinance 1265 or Municipal Code Section
15.28 from the Department of Building and Safety counter staff.
39. Please contact Department of Building & Safety Building at (760) 776-6420) regarding
the addressing of all buildings and/or suites.
FIRE DEPARTMENT:
40. Fire Department emergency vehicle apparatus access road locations and design shall
be in accordance with the California Fire Code, City of Palm Desert Municipal Code, and
Riverside County Fire Department Standards. Plans must be submitted to the Fire
Department for review and approval prior to building permit issuances,
41. Fire Department water system(s) for fire protection shall be in accordance with the
California Fire Code, City of Palm Desert Municipal Code, and Riverside County Fire
Department Standards. Plans must be submitted to the Fire Department for review and
approval prior to building permit issuances.
13
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RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn:
with a copy to:
Attn:
Space Above This Line for Recorder's Use Only
This document is exempt from the payment of a recording
fees pursuant to California Government Code Sections 27383
and 6103.
AFFORDABILITY RESTRICTIONS AND
REGULATORY AGREEMENT
(Density Bonus)
By and Between
THE CITY OF PALM DESERT
And
NEW CITIES INVESTMENT PARTNERS, LLC
DATED AS OF , 2018
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TABLE OF CONTENTS
ARTICLE 1. DEFINITIONS AND INTERPRETATION 1
1.1 Definitions 1
1.2 Rules of Construction 2
ARTICLE 2. ONGOING PROJECT OBLIGATIONS 3
2.1 Affordable Units 3
2.2 Residential Rental Property 3
2.3 Income Qualified Households. 4
2.4 Affordable Rent 5
2.5 Rent Increases 5
2.6 Income Recertification of Affordable Units 5
2.7 Lease or Occupancy Agreement 6
2.8 Security Deposits 7
2.9 Additional Information; Books and Records 7
2.10 Specific Enforcement of Affordability Restrictions 7
2.11 Audit 7
2.12 Management Agent 7
2.13 Binding for Term 8
ARTICLE 3. TERM AND RECORDATION 8
3.1 Term of Agreement 8
3.2 Agreement to Record 8
3.3 Early Termination of Restrictions 8
ARTICLE 4. DEFAULT; REMEDIES 9
4.1 An Event of Default 9
4.2 City's Option to Lease 10
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4.3 Specific Performance 10
4.4 Action at Law; No Remedy Exclusive 10
ARTICLE 5. GENERAL PROVISIONS 11
5.1 Limitations on Recourse 11
5.2 Maintenance, Repair, Alterations 11
5.3 Notice 11
5.4 Relationship of Parties 12
5.5 No Claims 12
5.6 Conflict of Interests 12
5.7 Non -Liability of City Officials, Employees and Agents 13
5.8 Unavoidable Delay; Extension of Time of Performance 13
5.9 Hold Harmless 13
5.10 Rights and Remedies Cumulative 13
5.11 Applicable Law 14
5.12 Severability 14
5.13 Legal Actions 14
5.14 Binding Upon Successors 14
5.15 Time of the Essence 14
5.16 Approval by the City 14
5.17 Complete Understanding of the Parties 14
5.18 Burden and Benefit 15
5.19 Counterparts 15
5.20 Amendments 15
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AFFORDABILITY RESTRICTIONS AND
REGULATORY AGREEMENT
(Density Bonus)
THIS AFFORDABILITY RESTRICTIONS AND REGULATORY AGREEMENT
(Density Bonus) (the "Agreement") is dated as of , 2018, and is by and
between the CITY OF PALM DESERT, a municipal corporation (the "City"), and NEW
CITIES INVESTMENT PARTNERS, LLC, a limited liability company (the
"Owner"). City and Owner are sometimes referred to herein individually as a "Party"
and collectively as "Parties".
RECITALS
This Agreement is predicated upon the following facts:
A. The Owner is the owner of certain real property located within the City of
Palm Desert, California, which property is described in "Exhibit A" attached hereto and
made a part hereof (the "Property").
B. The City Council adopted Resolution No. 2018-18, approving a density
bonus, precise plan, conditional use permit, and mitigated negative declaration (the
"Approvals") for the construction on the Property of a 388-unit apartment development
consisting of a mix of ten two-story buildings and five three-story buildings together with
a clubhouse, recreational amenities, and roadway improvements (the "Project").
C. The Owner has agreed to reserve 78 units in the Project for Very Low
Income Households at an Affordable Rent (each as defined herein), making the Project
eligible for a density bonus and other concessions pursuant to California Government
Code Section 65915 et seq. and the City's Zoning Ordinance (Palm Desert Municipal
Code Section 25.34.040). Accordingly, the Approvals entitle the Owner to a density
bonus of 111 units, for a total of 426 units, which is more than the 388 units proposed
for the Project, contingent upon the Owner, prior to the issuance of a building permit for
the Project, entering into an agreement with the City to set forth the affordability
restrictions for the Project as specified in the Approvals and the recordation of such
agreement in the real property records of Riverside County.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings
set forth herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the City and the Owner hereby agree as follows:
ARTICLE 1. DEFINITIONS AND INTERPRETATION,
1.1 Definitions
Capitalized terms used herein shall have the following meanings unless the
context in which they are used clearly requires otherwise.
"Affordable Unit" shall mean any of the 388 units in the Project available to and
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occupied by, or held vacant for occupancy only by, Very Low Income Households, and
rented at an Affordable Rent.
"Affordable Rent" shall mean rent, including a reasonable allowance for utilities,
determined pursuant to California Health and Safety Code Section 50053(b) and the
state regulations adopted by the California Department of Housing and Community
Development pursuant thereto, as amended from time to time, based upon the AMI
adjusted for a Household Size Appropriate to the Affordable Unit.
"AMI" shall mean the area median income for Riverside County as published by
the Department of Housing and Community Development pursuant to Health and Safety
Code Section 50052.5, or the most closely related successor statute, as adjusted for
family size in accordance with the state regulations adopted pursuant to California
Health and Safety Code Section 50052.5.
"Household Size Appropriate to the Affordable Unit," in the absence of pertinent
federal statutes applicable to the Project, shall have the meaning set forth in California
Health and Safety Code Section 50052.5(h), as amended from time to time.
"Required Covenant Period" shall mean the period commencing on the date all
units in the Project have been completed as evidenced by the City's issuance of a final
Certificate of Occupancy for the Project, and ending as of the fifty-fifth (55th)
anniversary thereof.
"Very Low Income Household" shall mean persons and families who meet the
income qualification limits set forth in California Health and Safety Code Section 50105
and the state regulations adopted by the California Department of Housing and
Community Development pursuant thereto, as amended from time to time.
1.2 Rules of Construction.
1.2.1 The singular form of any word used herein, including the terms defined
herein shall include the plural and vice versa. The use herein of a word of any gender
shall include correlative words of all genders.
1.2.2 Unless otherwise specified, references to articles, sections, and other
subdivisions of this Agreement are to the designated articles, sections, and other
subdivisions of this Agreement as originally executed. The words "hereof," "herein,"
"hereunder," and words of similar import shall refer to this Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to effectuate the
purposes set forth in this Agreement and to sustain the validity hereof.
1.2.4 Headings or titles of the several articles and sections hereof and the table
of contents appended to copies hereof shall be solely for convenience of reference and
shall not affect the meaning, construction, or effect of the provisions hereof.
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ARTICLE 2. ONGOING PROJECT OBLIGATIONS
2.1 Affordable Units
The Owner shall develop the Project on the Property in conformity with the
Approvals and shall commence construction in accordance with the Approvals.
Thereafter, during the Required Covenant Period, the Owner agrees that not less than
78 units in the Project shall be Affordable Units, meaning that such units shall be
continually available to and occupied by, or held vacant for occupancy only by, Very
Low Income Households. All of the units in the Project shall be similarly constructed
and all of the Affordable Units shall be generally constructed at the same time as those
units which are available to other tenants, and distributed in terms of location throughout
the Project. The Affordable Units shall be of comparable quality to those units which
are available to other tenants. The Owner agrees that, to the extent possible,
Affordable Units will not be underutilized. No persons shall be permitted to occupy any
Affordable Unit in excess of applicable limit of maximum occupancy set by the City
Code and the laws of the State of California. Thirty-six (36) of the Affordable Units shall
be one bedroom/one bathroom units, thirty-seven (37) of the Affordable Units shall be
two bedroom/two bathroom units, and five (5) of the Affordable Units shall be three
bedroom/two bathroom units.
2.2 Residential Rental Property
The Owner represents, warrants, and covenants to operate the Project as
residential rental property. During the Required Covenant Period, Affordable Units will
be held and used for the purpose of providing residential living, and the Owner shall
own, manage and operate, or cause the management and operation of, the Project to
provide such affordable rental housing. All of the units in the Project will be available for
rental on a continuous basis to members of the general public and the Owner will not
give preference to any particular class or group in renting the units in the Project, except
as required under this Agreement.
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2.3 Very Low Income Households.
2.3.1 Income Qualification: Initial Certification. Subject to the applicable
provisions hereof, throughout the Required Covenant Period, Affordable Units will be
exclusively occupied by, or available for occupancy only by, Very Low Income
Households on a continuous basis. Prior to the rental or lease of an Affordable Unit, the
Owner will obtain and maintain on file a Household Income Certification ("Income
Certification") substantially in the form attached hereto as Exhibit "B" and incorporated
herein by reference for each Very Low Income Household, and shall provide copies of
same to the City at such times as the City may, from time to time, require. In addition,
the Owner will provide such further information as may be required in the future by the
City. The Income Certification shall be dated immediately prior to the household's initial
occupancy of an Affordable Unit. It is the Owner's responsibility to determine each
household is a qualified household and shall make a good faith effort to verify pursuant
to Title 25, that the income provided by an applicant in an Income Certification is
accurate by taking any one or more of the following steps as part of the verification
process for all household members over the age of 18 as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods;
(ii) Obtain a true copy of an income tax return for the most recent tax
year in which a return was filed;
(iii) Obtain an income verification form from the applicant's current
employer;
(iv) Obtain an income verification form from the Social Security
Administration and/or the State Department of Social Services, or its equivalent, if the
applicant receives assistance from either of those agencies;
(v) If the applicant is unemployed and has no tax return, obtain another
form of independent verification; or
(vi) Obtain such other documentation as may be reasonably acceptable
pursuant to Title 25 to verify income.
2.3.2 Certificate of Continuing Program Compliance: Annual Report.
Throughout the Required Covenant Period, the Owner will prepare and submit to the
City, at such periodic frequency as it might require, but not less than annually, a
Certificate of Continuing Compliance in substantially the form attached hereto as Exhibit
"C" and incorporated herein by reference, executed by the Owner.
The Owner will also prepare and submit to the City each year for the preceding
calendar year a report in form and substance reasonably satisfactory to the City,
summarizing the vacancy rate of the Project, including the number of Affordable Units
held vacant for occupancy by Very Low Income Households for such calendar year.
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2.3.3 Participation in Federal Programs. The Owner will accept as tenants of
the Project, on the same basis as all other prospective tenants, Very Low Income
Households who are recipients of Federal certificates and/or vouchers for rent subsidies
pursuant to an existing program under Section 8 of the United States Housing Act of
1937 or its successor, and shall not apply selection criteria to Section 8 certificate
holders that are more burdensome than the criteria applied to all other prospective
tenants.
2.4 Affordable Rent
Throughout the Required Covenant Period, an Affordable Rent, as defined in
Section 1.1 herein, shall be charged to the Very Low Income Household occupants of
Affordable Units.
2.5 Rent Increases
Rents for Affordable Units may be increased only once per year. The rents
charged following such an increase, or upon a vacancy and new occupancy by a Very
Low Income Household, shall not exceed an Affordable Rent, as defined in Section 1.1
herein. The Owner shall give proper written notice to tenants of all rent increases, and
upon written request, provide the City with reasonable detail concerning the amount of
and rationale for such rent increases.
2.6 Income Recertification of Affordable Units
Annually, on the anniversary date of occupancy of an Affordable Unit by a Very
Low Income Household, the Owner shall income qualify as well as obtain and maintain
on file an annual income certification from each household occupying an Affordable Unit
in a form satisfactory to the City, based upon the current income of each occupant of
the unit. The Owner shall make a good faith effort to verify that the income provided by
the household is accurate in accordance with Section 2.3.1.
2.6.1 A unit occupied by a household that qualifies as a Very Low Income
Household at the time the household first occupies an Affordable Unit shall be deemed
to continue to be so occupied until (i) a recertification of such household's income
demonstrates that such household no longer qualifies as a Very Low Income
Household, and (ii) thereafter an available unit with the same number of bedrooms in
the Project is occupied by a new household other than a Very Low Income Household.
At such time as a household ceases to qualify as a Very Low Income Household based
on income recertification, the Owner shall designate the next available unit (one that is
not occupied by a tenant) with at least the same number of bedrooms as an Affordable
Unit. For purposes of this Agreement, such designated unit will be considered an
Affordable Unit if it is held vacant and available solely for occupancy by a Very Low
Income Household, and, upon occupancy, the income eligibility of the household as a
Very Low Income Household is verified and the unit is rented at Affordable Rent.
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2.7 Lease or Occupancy Aareement
Prior to the rental or lease of an Affordable Unit to a Very Low Income
Household, the Owner shall require the tenant to execute a written lease or occupancy
agreement. The Owner shall maintain on file throughout the Required Covenant Period,
each tenant's executed lease or occupancy agreement. The form of lease or rental
agreement used by the Owner for the lease or rental of Affordable Units shall be that
which is reasonable and customary in residential leasing. Each lease or rental
agreement for an Affordable Unit shall provide that the tenants of such Affordable Unit
shall also be subject to annual recertification of income and subject to rental increases
in accordance with Section 2.5 of this Agreement. In addition, each lease or rental
agreement shall contain a provision to the effect that the Owner has relied on the
income certification and supporting information supplied by the Very Low Income
Household in determining qualification for occupancy of the Affordable Unit, and that
any material misstatement in such certification (whether or not intentional) may be
cause for immediate termination of such lease or rental agreement.
2.7.1 The Owner shall refrain from restricting the rental or lease of Affordable
Units on the basis of race, color, religion, sex, marital status, disability, ancestry or
national origin of any person. All leases or occupancy agreements shall contain or be
subject to substantially the following nondiscrimination or non -segregation clauses:
"There shall be no discrimination against or segregation of, any person or
group of persons on account of any basis listed in subdivision (a) or (d) of
Section 12955 of the Government Code, as those bases are defined in Sections
12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section
12955, and Section 12955.2 of the Government Code, in the sale, transfer, use,
occupancy, tenure, or enjoyment of the premises which are the subject of the
Agreement, nor shall the grantee or any person claiming under or through him or
her, establish or permit any 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 premises herein conveyed.
The foregoing covenants shall run with the land."
"Notwithstanding the immediately preceding paragraph, with respect to
familial status, the immediately preceding paragraph shall not be construed to
apply to housing for older persons, as defined in Section 12955.9 of the
Government Code. With respect to familial status, nothing in the immediately
preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4,
51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens.
Subdivision (d) of Section 51 and Section 1360 of the Civil Code and
subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall
apply to the immediately preceding paragraph."
2.7.2 The covenants established herein shall, without regard to technical
classification and designation, be binding for the benefit and in favor of City, and its
successors and assigns.
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2.7.3 The City is deemed to be the beneficiary of the terms and provisions of the
covenants herein, both for and in its own right and for the purposes of protecting the
interests of the community and other parties, public or private, for whose benefit these
covenants running with the land have been provided. The City shall have the right if the
covenants are breached, to exercise all rights and remedies, and to maintain any
actions or suits at law or in equity or other proper proceedings to enforce the curing of
such breaches to which it or any other beneficiaries of these Restrictions and covenants
are entitled.
2.8 Security Deposits
The Owner may require security deposits on Affordable Units in amounts which
are consistent with applicable law.
2.9 Additional Information; Books and Records
The Owner shall provide any additional information concerning the Affordable
Units reasonably requested by the City. The Owner will maintain complete and
accurate records pertaining to the Affordable Units. The City shall have the right to
examine and make copies of all books, records or other documents maintained by the
Owner or by any of the Owner's agents which pertain to any Affordable Unit, including
all executed leases or rental agreements and all Income Certifications.
2.10 Specific Enforcement of Affordability Restrictions
The Owner hereby agrees that specific enforcement of the Owner's agreement to
comply with the allowable rent and occupancy restrictions of this Article 2 is one of the
reasons for the issuance of the Approvals and that, in the event of the Owner's breach
of such requirements, potential monetary damages to the City, as well as to prospective
Very Low Income Households, would be difficult, if not impossible, to evaluate and
quantify. Therefore, in addition to any other relief to which the City may be entitled as a
consequence of the breach hereof, the Owner agrees to the imposition of the remedy of
specific performance against it in the case of any event of default by the Owner in
complying with the allowable rent, occupancy restrictions or any other provision of this
Article 2.
2.11 Audit
The City shall have the right to perform an audit of the Project to determine
compliance with the provisions of this Agreement. Such audit shall not be undertaken
more often than once each calendar year. All costs and expenses associated with the
audit shall be paid by the Owner.
2.12 Management Agent
The Owner and/or the management agent (if not the Owner) shall operate the
Project in a manner that will provide decent, safe and sanitary residential facilities to the
occupants thereof, and will comply with provisions of this Agreement. Upon the written
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request of the City, the Owner shall cooperate with the City in the periodic review of the
management practices and financial status of the Affordable Units. The purpose of
each periodic review will be to enable the City to determine if the Affordable Units are
being operated and managed in accordance with the requirements and standards of this
Agreement. Results of such City review shall be provided to the Owner, and the City
shall have the authority to require the Owner to make modifications necessary to ensure
the objectives of this Agreement are met.
2.13 Binding for Term
It is intended by the Parties that the provisions of this Agreement shall apply to
the Project throughout the entire term hereof, as established in Section 3.1 below. The
Parties agree that in the event of a default by the Owner which is not remedied, within
any time periods for such remedy or cure which are specified herein, the City shall be
entitled to all relief to which it would be entitled by virtue of a default under any of the
provisions hereof.
ARTICLE 3. TERM AND RECORDATION
3.1 Term of Agreement
This Agreement shall remain in full force and effect for the Required Covenant
Period, unless the Owner and the City agree, in writing, to terminate this Agreement.
The Parties intend that the provisions and effect of this Agreement, and specifically of
Article 2 hereof, shall remain in full force and effect for the entire Required Covenant
Period.
3.2 Agreement to Record
The Owner represents, warrants, and covenants that this Agreement will be
recorded in the real property records of Riverside County.
3.3 Early Termination of Restrictions
Notwithstanding the generality of the foregoing provisions of this Article 3 or any
other provisions hereof, this Agreement and all of the terms and restrictions contained
herein shall terminate and be of no further force and effect in the event of involuntary
noncompliance as a result of unforeseen events such as fire or act of God which leaves
the entire Project uninhabitable, or a change in a federal or state law or an action by the
federal government, the State or a court of competent jurisdiction, after the date of
recordation hereof, that prevents the City from enforcing the provisions of this
Agreement, or a condemnation or a similar event. Upon termination of this Agreement,
the Parties or their successors, as applicable, agree to execute, deliver and record
appropriate instruments of release and discharge of the terms hereof; provided,
however, that the execution and delivery of such instrument shall not be necessary or a
prerequisite to termination of this Agreement in accordance with its terms.
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ARTICLE 4. DEFAULT: REMEDIES
4.1 An Event of Default
Each of the following shall constitute an "Event of Default" by the Owner under
this Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any of the
conditions, terms, or covenants of any agreement with the City concerning the Project,
or of this Agreement, if such failure remains uncured thirty (30) days after written notice
of such failure from the City to the Owner in the manner provided herein or, with respect
to a default that cannot be cured within thirty (30) days, if the Owner fails to commence
such cure within such thirty (30) day period or thereafter fails to diligently and
continuously proceed with such cure to completion. However, if a different period or
notice requirement is specified under any other section of this Agreement, then the
specific provision shall control.
4.1.2 Any representation or warranty contained in this Agreement or in any
application, financial statement, certificate, or report submitted by the Owner to the City
proves to have been incorrect in any material respect when made.
4.1.3 A court having jurisdiction shall have made or rendered a decree or order
(i) adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a
petition seeking reorganization of the Owner or seeking any arrangement on behalf of
the Owner under the bankruptcy laws or any other applicable debtor's relief law or
statute of the United States or of any state or other jurisdiction; (iii) appointing a
receiver, trustee, liquidator, or assignee of the Owner in bankruptcy or insolvency or for
any of its properties; or (iv) directing the winding up or liquidation of the Owner,
providing, however, that any such decree or order described in any of the foregoing
subsections shall have continued unstayed or undischarged for a period of ninety (90)
days.
4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or
suffered a sequestration or attachment or execution on any substantial part of its
property, unless the property so assigned, sequestered, attached, or executed upon
shall have been returned or released within ninety (90) days after such event (unless a
lesser time period is permitted for cure hereunder) or prior to sale pursuant to such
sequestration, attachment, or execution. If the Owner is diligently working to obtain a
return or release of the Property and the City's interests hereunder are not imminently
threatened in its reasonable business judgment, then the City shall not declare a default
under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or dissolved.
4.1.6 The condemnation, seizure, or appropriation of all or, in the opinion of the
City a substantial part of the Project, except for condemnation initiated by the City.
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4.1.7 There should occur any default declared by any lender under any loan
document or deed of trust relating to any loan made in connection with the Project,
which loan is secured by a deed of trust or other instrument senior to this Agreement.
4.2 Citv's Option to Lease
Upon the occurrence of an Event of Default, and to cause the Project to meet the
requirements of this Agreement, the Owner hereby grants to the City the option to lease
up to all of the units as necessary to achieve compliance with the provisions of Article 2
of this Agreement, for the purpose of subleasing such units in accordance with the
requirements of this Agreement. Any net rental paid under any such sublease shall be
paid to the City without obligation to pay any such rent to the Owner during the
pendency of the Owner's default.
4.3 Specific Performance
The City shall have the right to mandamus or other suit, action or proceeding at
law or in equity to require the Owner to perform its obligations and covenants under this
Agreement or to enjoin acts or things which may be unlawful or in violation of the
provisions hereof.
4.4 Action at Law; No Remedy Exclusive
The City may take whatever action at law or in equity as may be necessary or
desirable to enforce performance and observance of any obligation, agreement or
covenant of the Owner under this Agreement. No remedy herein conferred upon or
reserved by the City is intended to be exclusive of any other available remedy or
remedies, but each and every such remedy shall be cumulative and shall be in addition
to every other remedy given under this Agreement or now or hereafter existing at law, in
equity or by statute. No delay or omission to exercise any right or power accruing upon
any default shall impair any such right or power or shall be construed to be a waiver of
such right or power, but any such right or power may be exercised from time to time and
as often as the City may deem expedient. In order to entitle the City to exercise any
remedy reserved to it in this Agreement, it shall not be necessary to give any notice,
other than such notice as may be herein expressly required or required by law to be
given.
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ARTICLE 5. GENERAL PROVISIONS
5.1 Limitations on Recourse
Notwithstanding anything to the contrary contained in this Agreement, except in
the event of fraud, waste, illegal acts or gross negligence, or with regard to any
indemnity obligations imposed upon the Owner under the terms of this Agreement,
(i) no officer or director of the Owner (each, an "Owner Affiliate") shall have any direct,
indirect or derivative personal liability for the obligations of the Owner under this
Agreement, and (ii) the City shall not exercise any rights or institute any action against
any Owner Affiliate directly, indirectly or derivatively for the payment of any sum of
money that is or may become payable hereunder.
5.2 Maintenance, Repair, Alterations
The Owner shall maintain and preserve the Project in good condition and repair
and in a prudent and businesslike manner. The Owner shall comply with all laws,
ordinances, rules, regulations, covenants, conditions, restrictions, and orders of any
governmental authority now or hereafter affecting the conduct or operation of the
Project and of the Owner's business on the Project or any part thereof or requiring any
alteration or improvement to be made thereon. The Owner shall not commit, suffer, or
permit any act to be done in, upon, or to the Project or any part thereof in violation of
any such laws, ordinances, rules, regulations, or orders. The Owner hereby agrees that
the City may conduct from time to time through representatives, upon reasonable
notice, on -site inspections and observation of: (i) the maintenance and repair of the
Project, including a review of all maintenance and repair programs and practices and all
reports and records pertaining thereto, including records of expenditures relating
thereto; and (ii) such other facilities, practices, and records of the Owner relating to the
Affordable Units as the City reasonably deems to be necessary or appropriate in order
to monitor the Owner's compliance with the provisions of this Agreement.
5.3 Notice
All notices (other than telephone notices), certificates or other communications
(other than telephone communications) required or permitted hereunder shall be
sufficiently given and should be deemed given when personally delivered, when sent by
telegram, or when sent by facsimile (if confirmed by sending a copy of such
transmission by mail the same calendar day), or forty-eight (48) hours following mailing
by registered or certified mail, postage prepaid, or twenty-four hours following
transmission of such notice by express mail, Federal Express or similar commercial
carrier, addressed as follows:
P6401-0001\2227790v4.doc 11 Affordability Agreement - The Sands Project
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If to the City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn:
Phone: (760) 346-0611
Fax: (760) 341-6372
If to the Owner:
New Cities Investment Partners, LLC
Attn:
Phone:
Fax :
5.4 Relationship of Parties
Nothing contained in this Agreement shall be interpreted or understood by any of
the Parties, or by any third persons, as creating the relationship of employer and
employee, principal and agent, limited or general partnership, or joint venture between
the City and the Owner or the Owner's agents, employees or contractors, and the
Owner shall at all times be deemed an independent contractor and shall be wholly
responsible for the manner in which it or its agents, or both, perform the services
required of it by the terms of this Agreement for the operation of the Project. The Owner
has and hereby retains the right to exercise full control of employment, direction,
compensation and discharge of all persons assisting in the performance of services
hereunder. In regards to the on -site operation of the Project, the Owner shall be solely
responsible for all matters relating to payment of its employees, including compliance
with Social Security, withholding and all other laws and regulations governing such
matters. The Owner agrees to be solely responsible for its own acts and those of its
agents and employees.
5.5 No Claims
Nothing contained in this Agreement shall create or justify any claim against the
City by any person the Owner may have employed or with whom the Owner may have
contracted relative to the purchase of materials, supplies or equipment, or the furnishing
or the performance of any work or services with respect to the operation of the Project.
5.6 Conflict of Interests
No member, official or employee of the City shall make any decision relating to
this Agreement which affects his or her personal interests or the interests of any
corporation, partnership or association in which he or she is directly or indirectly
interested. No officer or employee of the Owner shall acquire any interest in conflict
P6401-0001 \2227790v4.doc 12
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with or inimical to the interests of the City.
5.7 Non -Liability of City Officials. Employees and Agents
No member, official, employee or agent of the City shall be personally liable to
the Owner, or any successor in interest, in the event of any default or breach by the City
or for any amount which may become due to the Owner or successor or on any
obligation under the terms of this Agreement.
5.8 Unavoidable Delay; Extension of Time of Performance
In addition to specific provisions of this Agreement, performance by either Party
hereunder shall not be deemed to be in default where it is due to an "Unavoidable
Delay." "Unavoidable Delay" means a delay due to the elements (including
unseasonable weather), fire, earthquakes or other acts of God, strikes, labor disputes,
lockouts, shortages of construction materials experienced generally in the construction
industry in the local area, acts of the public enemy, riots, insurrections or governmental
regulation of the sale or transportation of materials, supply or labor; provided, however,
that to the extent a delay is caused by any other reason that the Owner reasonably
believes is beyond its control, the Owner may request, on a case -by -case basis, that the
City excuse any such delay as an Unavoidable Delay and the City shall make its
determination as to whether such delay constitutes an Unavoidable Delay using its
reasonable judgment.
5.9 Hold Harmless
The Owner shall defend the City and all officials, employees and agents of City
(with counsel reasonably satisfactory to the City) against any claims or litigation of any
nature whatsoever brought by third parties and directly or indirectly arising from the
Owner's ownership or operation of the Project, or the Owner's performance of its
obligations under this Agreement, and in the event of settlement, compromise or
judgment hold the City free and harmless therefrom.
5.10 Rights and Remedies Cumulative
Except as otherwise expressly stated in this Agreement, the rights and remedies
of the Parties are cumulative, and the exercise or failure to exercise one or more of
such rights or remedies by either Party shall not preclude the exercise by it, at the same
time or different times, of any right or remedy for the same default or any other default
by the other Party. No waiver of any default or breach by the Owner hereunder shall be
implied from any omission by the City to take action on account of such default if such
default persists or is repeated, and no express waiver shall affect any default other than
the default specified in the waiver, and such wavier shall be operative only for the time
and to the extent therein stated. Waivers of any covenant, term, or condition contained
herein shall not be construed as a waiver of any subsequent breach of the same
covenant, term or condition. The consent or approval by the City to or of any act by the
Owner requiring further consent or approval shall not be deemed to waive or render
unnecessary the consent or approval to or of any subsequent similar act. The exercise
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Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
of any right, power, or remedy shall in no event constitute a cure or a waiver of any
default under this Agreement, nor shall it invalidate any act done pursuant to notice of
default, or prejudice the City in the exercise of any right, power, or remedy hereunder or
under any agreements ancillary or related hereto.
5.11 Applicable Law
This Agreement shall be interpreted under and pursuant to the laws of the State
of California.
5.12 Severability
If any term, provision, covenant or condition of this Agreement is held in a final
disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall continue in full force and effect unless the rights and
obligations of the Parties have been materially altered or abridged by such invalidation,
voiding or unenforceability.
5.13 Legal Actions
In the event any legal action is commenced to interpret or to enforce the terms of
this Agreement or to collect damages as a result of any breach thereof, the Party
prevailing in any such action shall be entitled to recover against the Party not prevailing
all reasonable attorneys' fees and costs incurred in such action (including all legal fees
incurred in any appeal or in any action to enforce any resulting judgment).
5.14 Binding Upon Successors
This Agreement shall be binding upon and inure to the benefit of the permitted
heirs, administrators, executors, successors in interest and assigns of each of the
Parties. Any reference in this Agreement to a specifically named Party shall be deemed
to apply to any successor, heir, administrator, executor or assign of such Party who has
acquired an interest in compliance with the terms hereof or under law.
5.15 Time of the Essence
In all matters under this Agreement, time is of the essence.
5.16 Approval by the City.
Any approvals required under this Agreement shall be made by the City Manager
or his or her designee, and shall not be unreasonably withheld or made, except where it
is specifically provided that another standard applies, in which case the specified
standard shall apply.
5.17 Complete Understanding of the Parties
This Agreement and the attached Exhibits constitute the entire understanding
P6401-0001 \2227790v4.doc 14
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and agreement of the Parties with respect to the matters described herein.
5.18 Covenants to Run With the Land
The Owner hereby subjects the Project to the covenants, reservations, and
restrictions set forth in this Agreement. The City and the Owner hereby declare their
express intent that the covenants, reservations, and restrictions set forth herein shall be
deemed covenants running with the land and shall pass to and be binding upon the
Owner's successors in title to the Project; provided, however, that on the termination of
this Agreement said covenants, reservations and restrictions shall expire. Each and
every contract, deed or other instrument hereafter executed covering or conveying the
Project or any portion thereof shall conclusively be held to have been executed,
delivered and accepted subject to such covenants, reservations and restrictions,
regardless of whether such covenants, reservations and restrictions are set forth in such
contract, deed or other instruments. No breach of any of the provisions of this
Agreement shall defeat or render invalid the lien of a mortgage or deed of trust made in
good faith and for value encumbering the Project Site or any interest of the Owner
therein.
5.19 Burden and Benefit
The City and the Owner hereby declare their understanding and intent that (i) the
burden of the covenants, reservations, restrictions, and agreements set forth herein
touch and concern the Property and the Project, in that Owner's legal interest in the
Project is rendered less valuable thereby, (ii) the covenants, reservations, restrictions,
and agreements set forth herein directly benefit the Property and the Project (a) by
enhancing and increasing the enjoyment and use of the Project by certain Very Low
Income Households, the intended beneficiaries of such covenants, reservations,
restrictions, and agreements, (b) by making possible the obtaining of advantageous
financing for the Property and the Project, and (c) by furthering the public purposes
advanced by the City, and (iii) the covenants, reservations, restrictions and agreements
set forth herein shall run with the Property and shall be binding for the benefit of and
enforceable by the City and its successors and assigns for the entire term of this
Agreement.
5.20 Counterparts
This Agreement may be executed in two or more counterparts, each of which
shall be an original, but all of which shall constitute one and the same instrument.
5.21 Amendments
This Agreement may be amended only by the written agreement of the City and
the Owner.
P6401-0001 \2227790v4.doc 15
Affordability Agreement - The Sands Project
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WHEREFORE, the undersigned has executed this Agreement as of the date
first -above written.
ATTEST:
Rachelle D. Klassen,
City Clerk
APPROVED AS TO FORM:
Richards, Watson & Gershon,
a Professional Corporation
By:
Agency Attorney
OWNER:
NEW CITIES INVESTMENT PARTNERS,
LLC, a Limited Liability
Company
By:
Name:
Its:
CITY:
CITY OF PALM DESERT,
A Municipal Corporation
By:
Name:
Title:
P6401-0001 \2227790v4.doc 16 Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
State of California
County of Los Angeles
On , 20_, before me,
Notary Public, personally appeared (insert name and title of the officer)
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
P6401-0001\2227790v4.doc Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
State of California
County of Los Angeles
On , 20_, before me,
(insert name and title of the officer)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
P6401-0001 \2227790v4.doc Affordability Agreement - The Sands Project
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EXHIBIT A
Legal description of the Property
P6401-0001 \2227790v4.doc Exhibit A-1
Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
EXHIBIT B
HOUSEHOLD INCOME CERTIFICATION
HOUSEHOLD INCOME CERTIFICATION
Initial Certification Recertification _ Other
Property name:
Address:
Effective Oale:
Moe In Dale
[MIOTYYYY}
Unit No. # Bedrooms:
Pursuant lo a Housing Agreement wilh the Cily of Palm Desert. Palm Desert Redevelopment Agency. or the Housing Authority. Program Eligibility
and Affordability verifications for Low and Moderate Income Households shall he performed as required by Title 25 subject lo eligibdity verification
procedures and requirements described therein. and as amended from time to time. The following whines how annual income is calculated to
determine household income eligibility. which is required prior to the household residing in an affordable housing unit and every year thereafter for the
compliance period.
The following questions will assist you in completing the HOUSEHOLD INCOME CERTIFICATION. When ehtrwering the questions answer 'Yes- if
any of the information requested or Income source pertains to any tenant. to -tenant, or adult individual member of the household tindividuals 18
years and older) during the 12 months fdlvuing the date of the certification or recertification.
INCOME INFORMATION
YES NO (all sources are ro be disclosed below unless otherwise excluded by MONTHLY GROSS INCOME
Title 25 Section)
IM,e am self employed. (List nature of self employment)
J
IMe have a job and receive wages, salary, overtime pay, commissions, fees,
tips, bonuses, and/or other compensation: List the businesses and/or
companies that pay you:
Name of Employer;
(use net income from business)
s
(use grcss income; amount
before any pay deductions)
1) I
TOTAL INCOME (BOX A) 1$
❑ U live recerve periodic social security payments. S
O 0 IMe receive Supplemental Security Income (SS)
TOTAL INCOME (BOX B) I $
1-1 I 1 I/we receive cash contributions of gifts' including rent or utility payments, on
an ongoing basis from persons not living with merus.
• La Uwe receive Public Assistance Income
Other
5
TOTAL INCOME (BOX Cl I $
L I LI IMre receive unemployment benefits. S
Ifwe receive Veteran's Administration. GI Bill, or National Guard/Military
benefts/income
U LJ The household receives unearned income from family members age 17 or
under (example Social Security, foster care. etc.) $
LI LJ Uwe receive periodic disability or death benefits other than Social Security. $
11 11 Uwe am entitled to receive child support payments, but am not currently
receiving payments.
L3 LJ Ifwe am currently receiving child support payments.
If yes. from how many persons do you receive support? $
L1 LJ Uwe receive alimonyfspousal support payments
7J Ll IMe receive periodic payments from trusts, annuities, inheritance, retirement
funds or pensions. insurance policies, workers compensation and
severance, Interest and dividends, or lottery winnings.
If yes, list sources:
11
P6401-0001\2227790v4.doc Exhibit B-1
nq.2 um.:
Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
HOUSEHOLD INCOME CERTIFICATION
PAGE 2 OF 3
LI
I/we receive income from rental, real or personal property. 5
Any other income? Describe source: $
TOTAL INCOME (BOX D) 15
YES NO ASSET INFORMATION CASH VALUE
LI J I/we have a checking account
If yes, list bank
1) 5
L Cl I/we have a savings account
If yes, list bank
1) 5
L I I llwe have a revocable trust
If yes, list bank
11
fl n Ifwe own real estate.
If yes, provide description
C7 ❑ I/we own stocks, bonds, or Treasury Bills
If yes, list sources/bank names
$
J J I/we have Certificates of Deposit (CD) or Money Market Account
If yes, list sources/bank names
1'i 5
ry Itwe have an IRA/Lump Sum Pension/Keogh Account/401 K
If yes, list bank
1)
r ) Itwe have a whole life insurance policy,
If yes. :'row many policies $
❑ J I/we have disposed. of assets (i.e. gave away maneylassets) for less than
the fair market value in the past 2 years
If yes; list items and date disposed:
1}
I/we receive other forms of capital investments.
If yes. describe source: $
YES NO STUDENT STATUS
Does the household consist of persons who are all full-time students
(Examples: CotlegellJnNersity, trade school, etc.)
• n Is student receiving financial aid (public or private, not including student
loans) $
1 I 1s student married and filing a pint fax return
LI L Is student a single parent with a dependent child or children and neither you
nor your chlld(ren) are dependent of another individual
TOTAL INCOME (BOX F) I $
P6401.000112227790v4.dac Exhibit B-2
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Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
HOUSEHOLD INCOME CERTIFICATION
PAGE 3 OF 3
HH
Mbr #
Last Name
H H (A)
Mbr # Employment or Wages
PART I. HOUSEHOLD COMPOSITION
First Name
& Middle Initial
Relationship to Date of Birth
Head of Household (WDTYYYY)
Self
FIT
Student
Y or N1
TOTAL HOUSEHOLD MEMBERS:
PART II. GROSS ANNUAL INCOME (USE ANNUAL AMOUNTS)
[g) (C) U]
Social Security/Pensions Public Assistance Other Incon-.e
Social Security
cr Allen Req. No
HFI {F)
Mbr # Type of Asset
ALL $5000 Asset Waiver
Add totals from (A}through ID). above TOTAL INCOME: (E)
PART 111 - INCOME FROM ASSETS
(G) I (id) (I1
C/1 Cash Value of Asset Annual Income from Asset
TOTALS:
Enter Column (H) Total mputed income ���
It over $5.000 $ X 10.00%
Enter the tolal otcdumn (I), or imputed Income (J)., whichever is greater, TOTAL INCOME FROM ASSETS: (K)
Tole! Annual Household income from all Sources [Add {El + lK}]: IL)
HOUSEHOLD CERTIFICATION & SIGNATURES
The information on this form will be used to determine maximum income eligibility. I/we have provided each person(s) set forth in Pert I acceptable
verification of current anticipated annual income. !Ave agree to notify the landlord immediately upon any member or the household moving out of
the unit or any new member moving in. !Awe agree to nolify the landlord immediately upon any member becoming a full-time student.
Under penalty of perjury of the laws of the Stare of California, Ilwe certify that the information presented in the Cerlification is true and accurate to
the best of mylour knowledge and belief. The undersigned further understands that providing false representations herein constitutes an act of
fraud False. misleading cr incomplete information may result in the termination of the lease agreement.
Signature
Date Signature Date
Signature Date Signature Date
Rev 2Ra2Wa
P6401-000112227790v4.doc Exhibit B-3
Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
EXHIBIT C
CERTIFICATE OF CONTINUING COMPLIANCE
OWNER'S CERTIFICATE OF CONTINUING COMPLIANCE
To: City of Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Director of Housing
Certification Dates:
Project Name:
Project Number.
Project Address:
Tax Id # of Ownership Entity:
From:
To:
The undersigned on behalf of
("the Owner, hereby certifies that:
❑ No buildings have been Placed in Service
❑ Other
1. The project meets the minimum requirements of:
0
2. There has been change / no change for any building in the project:
O NO CHANGE 0 CHANGE
If "Change," please list:
3. The owner has received annual Tenant Income Certification from all low-income households and
documentation to support that certification.
❑ YES 0 NO
4. All low-income units in the project have been rent -restricted under the terms of Agreement No.:
❑ YES ❑ NO
5. All low-income units in the project have been and are being for used by the general public on a non -transient
basis:
❑ YES 0 NO
6. No finding of discrimination under the Fair Housing Act, 42 U.S.0 3601-3619, has occurred for this project.
A finding of discrimination includes an adverse final decision by the Secretary of Housing and Urban
Development (HUD), 24CFR 180.680, an adverse final decision by a substantially equivalent state or local
fair housing agency, 42 U.S.0 3616a(a)(1), or and adverse judgment from a federal court:
O YES 0 NO
List Finding if occurred:
G'RDAISTACI KOLBECKWESSICA GONZALESkOVvNERS CERTIFICATE OF CONTINUING COMPLIANCE -EXHIBIT D DOC
P6401-0001\2227790v4.doc Exhibit C-1
Affordability Agreement - The Sands Project
DRAFT FOR DISCUSSION PURPOSES ONLY
7. Each building and low-income unit in the project is and has been suitable for occupancy, taking into account
local health, safety, and building codes (or other habitability standards), and the state or local government
unit responsible for making building code inspections did not issue a report of a violation for any building or
low-income unit in the project:
O YES 0 NO
If "No" state nature of violation: Attach
a copy of the violation report as required by 26 CFR 1.42- and any documentation of correction.
8. All tenant facilities, such as swimming pools, other recreational facilities, parking areas, washer/dryer
hookups, and appliances were provided on a comparable basis, without charge, to at tenants in the
buildings:
O YES 0 NO
9. If any of the low-income units in the project has been vacant during the year, reasonable attempts were or
are being made to rent that unit or the next available unit of comparable size to households having a
qualifying income before any units were or will be rented to tenants not having a qualifying income:
O YES 0 NO
10. If the income of a household of a low-income unit in any building increased above the qualifying limit allowed
by the Agreement NO. the next available unit of comparable size in that building was or will be
rented to tenants having a qualifying income:
O YES 0 NO
11. There has been change / no change in the ownership or management of the project:
O NO CHANGE 0 CHANGE
If "Change," attach a copy detailing information of the changes in ownership or management of the project.
Note: Failure to complete this form in its entirety will result in non-compliance with program requirements.
In addition, any individual other than an owner or general partner of project is not permitted to sign this form.
The project is otherwise in compliance with Agreement No. and all other applicable
laws, rules and regulations. This Certification and any attachments are made UNDER PENALTY OF PERJURY of
the Laws of the State of California.
(Ownership Entry)
By:
Title:
Date:
Place:
G WDA\STACI KOLBECKWESSICA GONZALES\OWNER'S CERTIFICATE OF CONTINUING COMPLIANCE -EXHIBIT D.DOC
P6401-0001\2227790v4.doc Exhibit C-2
Affordability Agreement - The Sands Project
TO:
CITY OF PALM DESERT
FINANCE- HOUSING DEPARTMENT
CITY COUNCIL MEMORANDUM
Honorable Mayor and Members of the City Council
Lauri Aylaian, City Manager
Robert Hargreaves, City Attorney
FROM: Jessica Gonzales, Senior Management Anal
DATE: December 12, 2018
SUBJECT: THE SANDS APARTMENT PROJECT
New Cities Investment Partners, LLC, the owner of the Sands Apartments Project, has
requested that the owner name listed in the staff report and Affordability Restrictions and
Regulatory Agreement ("Agreement") be corrected and identified as:
THE SANDS APARTMENTS, LP, a California limited partnership
Staff supports ownership change to the project in order to reflect the correct entity that the
Agreement will be by and between with the City, and responsible to the terms and
conditions therein. If the Agreement is approved the correct owner name will be reflected
in the finalized Agreement.
cc: Janet Moore, Director of Finance
Rachelle Klassen, City Clerk