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HomeMy WebLinkAboutORD 393ORDINANCE NO. 393 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT RELATING TO TERMS AND CONDITIONS FOR THE MANAGEMENT OF A 12 UNIT APARTMENT PROJECT CONTAINING 3 UNITS AFFORDABLE BY MODERATE INCOME HOUSEHOLDS. RELATED CASE NO. PP 84-22 WHEREAS, the City Council of the City of Palm Desert, California, did on the 13th day of September, 1984, hold a duly noticed public hearing to consider a request by RALPH SANTOPIETRO for approval of a development agreement specifying terms and conditions for the management of a 12 unit apartment project containing 3 "moderate affordable" units to be developed under the density bonus provisions of Section 65915 of the California State Government Code. WHEREAS, the Planning Commission, by Resolution No. 977 has recommended approval; WHEREAS, said application has complied with requirements of the "City of Palm Desert Procedures to Implement the California Environmental Quality Act, Resolution No. 80-89", in that the director. of environmental. services had determined the project has been previously assessed in connection with PP 84-22 for which a negative declaration of environmental impact has been certified. WHEREAS, at said public hearing, upon hearing and considering the testimony and arguments of all persons desiring to be heard, said city council did find the following facts to justify its action as described below: 1. The development agreement is consistent with the general plan, zoning ordinance and specifically implements policies contained within the housing element. 2. The proposed agreement complies with Section 65915 of the California Government Code. The City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN as follows: 1. That the above recitations are true and correct and constitute the findings of the city council in this case. 2. That it does hereby approve the Santopietro Development Agreement labeled in Exhibit "A." 3. The City Clerk is directed to publish this Ordinance once in the Palm Desert Post, a newspaper of general circulation, published and circulated in the City of Palm Desert, and shall certify to the passage of adoption of this ordinance, shall submit the agreement to the Riverside County Recorder for recordation, and the same shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Palm Desert, California, held on this 27th day of September, 1984, by the following vote, to wit: AYES: JACKSON, PULUQI, WILSON, AND SNYDER NOES: NONE ABSENT: KELLY ABSTAIN: NONE WALTER H. SNYDER, Wyor N-1/1Aw SHEILA R. MILLIGAWity Cie City of Palm Desert, alifornia Am ORDINANCE NO. 393 EXHIBIT "A" RALPH SANTOPIETRO AFFORDABLE HOUSING AGREEMENT This agreement, made as of this 27th day of Sevtember , 1984, between the City of Palm Desert, a California municipal corporation (hereinafter "CITY") and Ralph Santopietro, (hereinafter "DEVELOPER") provides: Recitals 1. DEVELOPER is owner of certain real property located within the City of Palm Desert, California, which property is described in Exhibit 1, attached hereto and made a part hereof (hereinafter "PROPERTY"). DEVELOPER has applied for and been granted a precise plan (PP 84-22) to construct 12 residential rental units on the PROPERTY. a 2. As a condition of said approvals, CITY has required that a specified number of units within Precise Plan 84-22 (hereinafter "PROJECT") be set aside for moderate income occupants subject to restrictions necessary to insure the continued joccupancy of said units by moderate income households. 3. DEVELOPER and CITY desire to further memorialize and implement the conditions of said approval and do hereby agree to the following terms and conditions. Agreement 1. DEVELOPER has been conditionally granted permission by the CITY to construct 12 rental residential units on the PROPERTY by Precise Plan 84-22 and Planning Commission Resolution No. 977 . As a condition of said approvals DEVELOPER is required, and hereby agrees to reserve for rent 3 units for moderate income households. Hereinafter these 3 units shall be referred to as "AFFORDABLE UNITS". These AFFORDABLE UNITS shall consist of three (3) two bedroom two bath units. ORDINANCE NO. 393 2. As used herein, "moderate income households" shall refer to families or individuals whose gross income does not exceed the Riverside County median income based upon financial and demographic information received from the United States Department of Housing and Community Development (HUD) or its successor agency. This information is contained in "Exhibit 2" and shall be updated automatically as information is obtained from HUD. If in the future more relevant data is made available by other officially recognized agencies, the applicant may request amendment of this agreement to include such data. 3. Rent for AFFORDABLE UNITS shall not exceed 30% of the gross income of moderate income households. The maximum rent for the three (3) two bedroom, two bath units shall be based on income figures for 3 person households, resulting in the following maximum initial rents. These rents shall be adjusted per Article 2 of this agreement. 3 - 2 bedroom 2 bath $564 4. The DEVELOPER or his assigned management agent shall be responsible for determining elgibility of prospective tenants. Prior to opening the project the DEVELOPER shall submit for approval a plan to the CITY describing the procedure for determining and enforcing eligibility requirements. This plan shall include annual qualification by all eligible households and a semi- annual audit at the DEVELOPER'S cost by the CITY or its assigned agents determining compliance with all aspects of this agreement. 5. The DEVELOPER shall not discriminate on the basis of race, creed, sex, national origin, or age. The AFFORDABLE UNITS shall be equipped in the same fashion and their exterior shall be identical in quality and desirability as other units in the project. The AFFORDABLE UNITS shall be evenly dispersed throughout the project. The exact location of the AFFORDABLE UNITS shall be changed from time to time as vacancies permit. 6. The DEVELOPER shall maintain the quality of the buildings, grounds and recreation facilities consistent with their condition at the time of issuance ORDINANCE NO. 393 of certificate of occupancy. The DEVELOPER shall post a $2,500 bond or other satisfactory security assuring the performance of any work the CITY feels is necessary to meet this requirement in a form satisfactory to the CITY. 7. The term of this agreement shall run for thirty years during which period 3 aforementioned AFFORDABLE UNITS shall be reserved for moderate income households. This agreement has been prepared based on the premise that the PROJECT would be operated as rental housing. The DEVELOPER or his .successor may .apply to amend this agreement to allow conversion to condominium. The DEVELOPER' will be required to conform to all applicable zoning and building regulations in effect at this time. The amendment shall include a program to maintain the availability of the AFFORDABLE UNITS for moderate income households throughout the remaining term of the agreement. 8. The provisions of this agreement shall run with, burden and bind the DEVELOPER and his successors. The provisions hereof shall be enforceable by .appropriate legal action brought by the CITY. In the event legal action is brought to enforce any provision hereof, the prevailing party shall be entitled to reasonable attorney's fees together with other legally allowable costs. 9. This agreement shall be reviewed by the CITY planning commission every 6 months, at which time the applicant or his successor shall be required to demonstrate good faith compliance with the terms of the agreement. If as a result of this review, the commission finds and determines, on the basis of substantial evidence, that the applicant has not complied in good faith with terms or conditions of the agreement, it shall recommend to the city council that the agreement be modified or terminated. If the city council concurs with the planning commission recommendation the agreement shall be modified or terminated. Proceeding before the city council shall be a noticed public hearing. If at the time of the hearings substantial improvements have not yet occurred on the site, termination of the AGREEMENT will also involve revocation of all previous approvals and ORDINANCE NO. 393 permits associated herewith and the zoning of the property shall revert to the base R-2. If substantial improvements are already in place and modifications acceptable to the CITY cannot be negotiated, then enforcement of provisions of this agreement shall be pursued through legal action per No. 8 of this AGREEMENT. 10. The AGREEMENT shall be construed according to the laws of the State of California. If any portion of the AGREEMENT is for any reason held to be unenforceable, such determination shall not affect the validity of the remaining portions. 11. Each of the parties hereto covenants and agrees that it has the legal capacity to make the AGREEMENTS herein contained, that each AGREEMENT is binding upon that party and that this AGREEMENT is executed by a duly authorized official acting in his official capacity. IN WITNESS WHEREOF the parties have executed this Agreement the year and date first above written. THE CITY OF PALM DESERT By DEVELOPER (Notarized) A TTL^QT_ ORDINANCE NO. 393 STATE OF CALIFORNIA lss. COUNTY OF On November 28, 1984 --before me, the undersigned, a Notary Public in and for said State, personally appeared Ralph J. Santopietro II k t dt h b f persona y nown o me or prove o me on t e asis o s, factory evidence) to be the person(s) whose name(s) is/are, scribed to the within instrument and acknowledged to m,3 he/she/they executed the same. WITNESS my hand and official seal. 11 Signatur _ ___�. MARY p RAZIER ORICIAL SEAL MARY P. FRAZIER NOTARY PUKIC—CAUFORNIA %V NOTARY BOND FILED IN RIVERSIDE COUNTY My Coalmits*n Expires Jvm 6. 190 (This area for official notarial seal) r ORDINANCE NO. 393 EXHIBIT "1" Property Description Lots 1 and 4, Palma Village Groves, Map Book 10/31. ORDINANCE NO. 393 EXHIBIT "2" Income Limits Median Family Income Persons in the Family Riverside/San Bernardino Counties 3 Definition: Moderate Income: $22,562 Households with incomes above 80% of the Median Family Income for the number of persons in the family, but below the median delineated above.