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HomeMy WebLinkAboutRestrictive Covenant-Documents for Carlos Ortega Villas 825-11PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: AUTHORIZE STAFF TO RECORD A RESTRICTIVE COVENANT AND ASSOCIATED DOCUMENTS FOR THE CARLOS ORTEGA VILLAS (PROJECT NO. 825-11) SUBMITTED BY: Heather Buck, Project Administrator DATE: August 27, 2015 CONTENTS: DRAFT Restrictive Covenant DRAFT Notice of Affordability Restrictions on Transfer of Property Recommendation By Minute Motion, that the Authority Board: 1. Approve the draft Restrictive Covenant and the draft Notice of Affordability Restrictions on Transfer of Property, herein after ("Restrictive Documents") for the Carlos Ortega Villas (Project No. 825-11), substantially as to form; 2. Authorize the Authority Secretary to record the Restrictive Documents; 3. Authorize the payment of the transaction costs necessary for any customary fees associated with the recording of documents herein referenced; 4. Authorize the Authority Chairman and/or the Executive Director to finalize and execute the Restrictive Documents and any ancillary documents necessary to effectuate the actions taken herewith; and 5. Authorize the Authority to participate in the New Solar Homes Partnership program. Fiscal impact with this action is minimal. Commission Recommendation The Housing Commission will receive and file at its September meeting. Background On April 10, 2014, the Palm Desert Housing Authority ("Authority") authorized the Chairman to execute a Certificate of Acceptance for the property to be known as Carlos Ortega Villas (COV) through recordation of a Grant Deed. This action effectuated the transfer of the property from the Successor Agency to the Palm Desert Redevelopment Agency (SARDA) to the Authority. The document was recorded in July 2015 following the confirmation that pending easements with the utilities had been recorded. Staff Report Authorize staff to file the Restrictive Covenant for the Carlos Ortega Villas project Page 2 of 2 August 27, 2015 California Health and Safety Code Section 33334.3 requires that the COV rental units provided by the Authority be rented to and occupied on a continuous basis for a period of 55 years from the Certification of Occupancy by income eligible households at an affordable rent as defined in the attached documents. The Restrictive Documents (attached) are intended to be recorded with the Riverside County Recorder's office to restrict the use of this property for the purpose of providing affordable housing to Very Low and Low income households. The Restrictive Documents also meet one of the requirements established by the California Energy Commission (CEC) to participate in the New Solar Homes Partnership (NSHP). NSHP The CEC's NSHP provides financial incentives and other support to encourage the construction of new, energy efficient solar homes that save residents money on electric bills and protect the environment. Under this program, a solar home is a highly energy efficient residence that uses photovoltaic modules to generate electricity from the sun. The Authority may participate in this program, reducing the overall cost of the systems and utility bills at the COV project, if administrative time allows. Fiscal Analysis The fiscal impact associated with this action is minimal and would be related to fees required to record the restrictive documents. If the financial incentives are received, this will reduce the overall cost of the project. Submitted By: Hest er Buck, Project Administrator R Paul S. ibso , Director of Finance hn M. Wohlmuth, Executive Director ore, Director of Housing Aparl, `BY HOUSG AUTH ONM� VERIFIED BY: Original on file with City Clerk's Officf �a J' Nay nA(ciCnCrf1 , 4(,eA't- RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, California 92260 APN: 637-071-003, 637-170-003 637-170-004,637-170-053 RESTRICTIVE COVEN The undersigned declares that this Restrictive pursuant to California Government Code Section 27, Tax pursuant to California Revenue and Taxatio ant is exem d exempt from Section 11922. Recording Fees entary Transfer THIS RESTRICTIVE COVENANT is dat of , 2 executed by the PALM DESERT HOUSING AUTH A. Prior to its dissolution, the "Agency") acquired and ow - s e real pr described on Exhibit A to (the B. The Moderate Income , and is lopment Agency (the al "' Desert, California which is ith moneys from the Agency's Low and C. ant t 26 (whim e effective in June 2011) and the California P Su rem n m ornia Redevelopment Association, et al. v. Ana Matosantos, et Suprem � al., 54th 231 (► ~the y was dissolved as of February 1, 2012 and a Successor Age the Palm Desedev ent Agency (the "Successor Agency") was designated. D. . Pursuant to th and Safety Code Section 34175(b) and the California Supreme Court's deci =:,'n Matosan.;`, on February 1, 2012, all assets, properties, contracts, leases, books and reco �uildi Vcnd equipment of the former Agency transferred to control of the Successor Agenc : you of law. E. Pursuan to Health and Safety Code Section 34176(b), the City Council of the City of Palm Desert (the "City") adopted Resolution No. 2012-07, electing for the City to not retain the responsibility for performing housing functions previously performed by the former Agency, and determining that all of the assets, as allowed by law, and all rights, powers, liabilities, duties, and obligations associated with the housing activities of the former Agency be transferred to the Palm Desert Housing Authority (the "Housing Authority", and when acting in the capacity as housing successor to the former Agency, the "Housing Authority" or the "Housing Successor"). P6401-0001\ 1836368v7.doc F. Pursuant to Health and Safety Code Section 34176(a)(2), the Housing Successor submitted to the State Department of Finance (the "DOF") a list of all housing assets (the "Housing Assets") and the DOF approved such list. G. Health and Safety Code Section 34181(c) provides that the oversight board of the Successor Agency (the "Oversight Board") shall direct the Successor Agency to transfer the Housing Assets to the Housing Successor, and Health and Safety Code Section 34177(g) directs the Successor Agency to effectuate the transfer of housing functions and the Housing Assets pursuant to Health and Safety Code Section 34176. H. On , 2012, the Oversight Boar directing the Successor Agency to transfer housing functions Housing Successor pursuant to Health and Safety Code Se I. On , 2012, the Board of t No. , approving the transfer to the Housing Su powers, duties, and obligations associated with related to the Housing Assets, and on the accepting such transfer. J. By Grant Deed dated to the Housing Authority. K. The Housing Authority is units (the "Units") (64 on together with function "Project"). L. For the unit) shall b -; ed to continuo herei units a ted Resolution No. ousing Assets to the 2). censor Agenc r of the Housing As using activ. ies of the fo sing A y adopted Res Resolution d all rights, gency ion No. 2015, the essor Agency granted the Property 72 multi -family rental ts) and one manager's unit, equipmen and fixtures (collectively, the all of the Units (excluding the manager's by, , held open and made available on a y, Persons an. amilies of Low or Moderate Income, as defined ined herein. ccessires to record this Restrictive Covenant in the Official Records a_:verside Count„ alifornia with respect to the Project. NOW REFO' e Housing Authority hereby covenants as follows: 1. De >< Capitalized terms used herein shall have the following meanings unless the context in ch they are used clearly requires otherwise. Such terms are further defined in Title 25 of the California Code of Regulations, Section 6910, et seq., as amended from time to time, and any successor regulations thereto. "Affordable Rent" means rent, including a reasonable allowance for utilities, determined in accordance with California Health and Safety Code Section 50053, as amended from time to time, based upon the Area Median Income. -2- P6401-0001\1836368v7.doc "Area Median Income" means the area median income for the Riverside -San Bernardino Statistical Area, as determined and published annually by the Department of Housing and Community Development pursuant to California Health and Safety Code Section 50093, or the most closely related successor thereto. The Area Median Income shall be adjusted for family size appropriate to the Unit in accordance with Health and Safety Code Section 50052.5(h), as amended from time to time. "Lower Income Households" means, based on the Area Median Income, persons and families whose income exceeds the maximum income for Very Low I ome Households but does not exceed the qualifying income limits for lower income per d families set forth in time to time. California Health and Safety Code Section 50079.5, as amended Very Low Income Households" means, based on t ea..•n Income, persons and families whose income does not exceed the qualifyiincome li or very low income families set forth in California Health and Safety Co ction 50105, as °n., ded from time to time. 2. Use. The Housing Authority cove Covenant, 36 of the Units shall be rented to and o available on a continuous basis for occ .• cy by, Affordable Rent; and 36 of the Units -nt and made available on a continuous bas Affordable Rent. The Housing Authorit operated, the Project as resi . • al propert Units in the Project will used fo the Housing Authorit own, age an of, the Project to p such affor' le rental manager's unit) sha �, sed by �ersons an Housing Authority wil the Units. (55) Notwi and comp are available Moderate Inco developed with m Authority, or as othe Term. following the ding the foreg cc Ver ed to an cy by, that d he term of this ? ` trictive if vacant, held open and made ncome Households at an pied by, or, if vacant, held open r Income Households at an erate, or cause to be this Restrictive Covenant. ing affordable housing, and ate, or cause the management and operation sing. All of the Units (excluding the ilies as their principal residence, and the sient or commercial use or subletting of ve Covenant shall remain in effect for not less than fifty-five ertificate of occupancy for the final Unit in the Project. ing Authority may replace Units with equally affordable nother location within the community if the replacement units r to the displacement of any Persons or Families of Low or e Units to be replaced and comparable replacement units are not the Low and Moderate Income Housing Asset Fund of the Housing permitted by applicable law. 4. Nondiscrimination Covenants. The Housing Authority agrees, for itself and its successors and assigns, to refrain from restricting the transfer of the Units on the basis of race, color, creed, religion, ancestry, sex, marital status, national origin or age of any person. All such deeds and leases entered into with respect to the Project shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: -3- P6401-0001 \ 1836368v7.doc (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that 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 California 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 California Government Code, in the sale, transfer, use, occupancy, tenure or enjoyment of the premises herein conveyed, nor shall the Grantee himself or herself, or any person claiming under or through him or her, establish or permit any practice or practices of dis ination or segregation with reference to the selection, location, number, use or occupancy ' ndees in the premises herein conveyed. The foregoing covenants shall run with the la Notwithstanding the immediately preceding status, said paragraph shall not be construed to apply to Section 12955.9 of the California Government Code said paragraph shall be construed to affect Sectio the California Civil Code, relating to housing f and Section 1360 of the California Civil Code an of the California Government Code shall apply to sai (b) In contracts: " himself or herself and their respective s discrimination against or segregation of listed in subdivision (a) or ection 1 bases are defined in Sec (p) of Section 12955 transfer, use, occu parties, any subcont permit any such practic statu Sect said p the Califo and Section of the Californi paragraph 955.9 of the h shall be con ivil Code, re of the Cal' 12926. 5.2 of yment o es, or th cting ap ing for of respect to fam 51.3, 51.4, 51.10, or citizens ubdivision ( ivisio . (o) and (p) h respect to familial sons, as defined in tatus, nothing in and 799.5 of ection 51 f tion 12955 rties hereby covenant by and for there shall be no s, on account of any basis vernment Code, as those paragraph (1) of subdivision alifornia Government Code, in the sale, premises, nor shall the contracting party or spective assigns or transferees, establish or or segregation. e immediately preceding paragraph, with respect to familial strued to apply to housing for older persons, as defined in ent Code. With respect to familial status, nothing in ed to a -ct Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of g to housing for senior citizens. Subdivision (d) of Section 51 is Civil Code and subdivisions (n), (o) and (p) of Section 12955 ode shall apply to said paragraph." The foregoing shall b < ' ovenant running with the land for the benefit of, and as a burden upon the Project, and shall remain in effect in perpetuity. 5. Successors and Assigns; Runs With Land. The covenants established in this Restrictive Covenant shall bind the Housing Authority and successors and assigns of the Housing Authority, and shall bind and encumber the Project such that they "run with the land," and shall be for the benefit and in favor of the Housing Authority, the Successor Agency, the City, and Alphonso Sanchez the real party in interest under that certain Stipulation for Entry of Judgment, Riverside County Superior Court Case No. INDIO 51124 ("Sanchez"). The -4- P6401-0001\1836368v7.doc covenants in this Restrictive Covenant shall be enforceable against the Housing Authority and each successor in interest who continues the violation, by the City, Successor Agency, Sanchez and any of the persons or entities set forth in Health and Safety Code Section 33334.3(f). IN WITNESS WHEREOF, the Housing Authority has executed this Restrictive Covenant as of the date first set forth above. PALM DESERT HOUSING AUTHORITY By: ATTEST: Secretary Palm Desert Housing Authority -5- P6401-0001 \ 183 6368v7. doc 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 On before me, personally appeared Place Notary Seal Above Though the information and could Description of Attached Doc Title or Type of Do Documen Signer(s) Oth Capacity(ies) clai Signer's Name: ❑ Individual ❑ Corporate Officer — Title ❑ Partner — 0 Limited ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: is not rey t fraudulent r, Signer is Representing: who proved to me person(s) whose and acknowl d his/her/the' signatur behal I Stat e me * • t 'zed capa e instrument ch the person(s) acte th under PEN aliforni, WITNES by law, z val and re 0 General . Notary Public asis of satisfactory evidence to be the e subscribed to the within instrument she/they executed the same in d that by his/her/their on(s), or the entity(ies) upon uted the instrument. Y OF PERJUR r the laws of the e foregoing parag d and official seal. Notary Public is true and correct. prove valuable to persons relying on the document ment of this form to another document. Number of Pages: RIGHT THUMBPRINT OF SIGNER Top of thumb here P6401-0001 \ 1836368v7.doc -6- EXHIBIT A Parcel 1 of Parcel Map No. 36363, as per map filed in Book 237, Pages 91 to 93 inclusive, of Parcel Maps in the office of the County Recorder of the County of Riverside, California. -7- P6401-0001 \1836368v7.doc RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, California 92260 APN: 637-071-003, 637-170-003 637-170-004, 637-170-053 NOTICE OF AFFORDABI ON TRANSFE Address: The undersigned declares th Recording Fees pursuant to California G Documentary Transfer Tax .ursuant to 11922. Important notice to and other persons, this Notice: Affordab described b . , _ eferre limit th Prop occ ("Covenant The Cov Records of Riversi s li 'rope ty. rs, tena ble housi RESTRICTIONS ROPERT Secti sand enant is exempt from 383 and exempt from ation Code Section enders, brokers, escrow and title companies, strictions on the real property described in en recorded with respect to the property Noti 3 roperty"). These restrictions may effectively y to an amoun which is less than the fair market value of the e income of persons and households who are permitted to taining Affordable Housing Restrictions: Restrictive Covenant rded substantially concurrently with this Notice, in the Official Legal Description of Property: See Exhibit "A" attached hereto and incorporated herein by this reference. Property Location: , Palm Desert, California. Assessor's Parcel Number of Property: 637-071-003, 637-170-003, 637-170-004, and 637-170-053. 12812-0001\1836809v5.doc -1- Summary of Covenant: The Housing Authority covenants that during the term of the Restrictive Covenant, as defined therein, 36 of the Units shall be rented to and occupied by, or, if vacant, held open and made available on a continuous basis for occupancy by, Very Low Income Households, as defined therein, at an Affordable Rent, as defined therein; and 36 of the Units shall be rented to and occupied by, or, if vacant, held open and made available on a continuous basis for occupancy by, Lower Income Households, as defined therein, at an Affordable Rent, as defined therein. The Housing Authority covenants and agrees to operate, or cause to be operated, the Project, as defined therein, as residential property during the entire term of the Restrictive Covenant. All of Units in the Project (excluding the man �. 's Unit) will be held and used for the purpose of providing affordable housing, and the g Authority shall own, manage and operate, or cause the management and operatio e Project to provide such affordable rental housing. All of the Units (excluding the , nit) shall be used by such persons and families as their principal residence, and the , 'ty will not knowingly permit any transient or commercial use or subletting of This Notice does not contain a full des of the details of a the terms and conditions of the Covenant. You will need to •: and read Covenant tom understand the restrictions and requirements which apply to Date ATTEST: , 2015 PALM D ,F'. HOUSING AUTHORITY: 12812-0001\1836809v5.doc -2- CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT 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 before me, . Notary Public personally appeared Place Notary Seal Above Though the informatio and could prey Description of Title or Type Documen Signer(s) Other Tha Capacity(ies) claime Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — 0 Limited ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: >v is not re udul who prow person(s) and ac his/he st I certi State of proved to-> _ • the w e ame(s) is/a ged to me that authorized capacit s) on the instrument the per of which the d b law, it m .,'atta 0 General AL on(s) acted, exe of satisfactory evidence to be the scribed to the within instrument e/they executed the same in d that by his/her/their or the entity(ies) upon e instrument. TY OF PERJURY under the laws of the that the foregoing paragraph is true and correct. nd official seal. otary Public ove valuable to persons relying on the document ent of this form to another document. Number of Pages: RIGHT THUMBPRINT OF SIGNER Top of thumb here 12812-0001\1836809v5.doc EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY Parcel 1 of Parcel Map No. 36363, as per map filed in Book 237, Pages 91 to 93 inclusive, of Parcel Maps in the office of the County Recorder of the County of Riverside, California. 12812-0001\ 1836809v5.doc