HomeMy Public PortalAboutMICHAEL PADILLA AND BERTHA C. PADILLA (CARSON REDEVELOPMENT AGENCY) - Affordable Housing AgreementAFFORDABLE HOUSING AGREEMENT
By and Between
THE CARSON REDEVELOPMENT AGENCY
Agency,
and
MICHAEL PADILLA AND BERTHA C. PADILLA,
Developer.
TABLE OF CONTENTS
Page
I. [§
100]
SUBJECT OF AGREEMENT . . . . . . . . . . . .
. 1
A.
[§
101]
Definitions . . . . . . . . . . . . . .
. 1
B.
[§
102]
Purpose of the Agreement . .. . . . . .
. 3
C.
[§
103]
The Site . . . . . . . . . . . . . . .
. 3
D.
[§
104]
Parties to the Agreement . . . . . . .
. 3
1.
(S
105 ] The Agency . . . . . . . . . . . .
. 3
2.
[§
106] The Developer . . . . . . . . . .
. 4
E.
[§
107]
Prohibition Against Transfer . . . . .
. 4
II. (S
2 00 ]
FINANCING . . . . . . . . . . . . .
. 5
A.
[§
201]
Agency Assistance . . . . . . . . . . .
. 5
B.
[§
202]
Terms and Conditions of Agency
Assistance . . . . . . . . . . . . .
. 5
C.
[§
203]
Recordation of Documents . . . . . . .
. 6
III. [§
300] USE OF THE SITE . . . . . . . . . . . . . .
. 7
A.
[§
301]
Uses . . . . . . . . . .
7
B.
[§
302]
Obligation to Refrain from Discrimina-
tion . . . . . . . . . . . . .
. 8
C.
[§
303]
Form of Nondiscrimination and
Nonsegregation Clauses . . . . . . . .
. 8
D.
[§
304]
Effect and Duration of Covenants . . .
. 9
E.
[§
305]
Effect of Violation of the Terms and
Provisions of this Agreement . . . . .
. 9
IV. [§
400]
DEFAULTS, REMEDIES AND TERMINATION . . . . .
. 9
A.
[§
401]
Defaults - General . . . . . . . . . .
. 9
B.
[§
402]
Legal Actions . . . . . . . . . . . . .
. 10
1.
[§
403] Institution of Legal Actions . . .
. 10
2.
[§
404] Applicable Law . . . . . . . . . .
. 10
3.
[§
405] Acceptance of Service of Process . .
10
C.
[§
406]
Rights and Remedies are Cumulative . . .
10
D.
[§
407]
Damages; Specific Performance . . . .
it
E.
[§
408]
Remedies and Rights of Termination . . .
11
1.
[§
409] Termination by Developer . . . . . .
11
2.
[§
410] Termination by Agency . . . . .
11
V. [§ 500]
GENERAL PROVISIONS . . . . . . . . . . .
12
A.
[§
501]
Notices, Demands, and Communications
Between the Parties . . . . . . . . . . .
12
B.
[§
502]
Conflict of Interests . . . . . . . . . .
12
C.
[§
503]
Warranty Against Payment of
Consideration for Agreement o o
12
D.
[§
504]
Nonliability of Agency Officials and
Employees . . . . . . . . . . . . . . . .
12
E.
[§
505]
Enforced Delay jForce Majeurel:
Extension of Time of Performance . . . .
13
F.
[§
506]
Inspection of Books and Records . . . . .
13
G.
[§
507]
Right of Access . . . . . . . . . . . . .
13
940222 C1371-01009 Isj 1091469.3 0 — i —
940222 C1371-01009 Isj 1091469.3 0 — ii —
Page
H.
[§
508]
Approvals . . . . . . . . . . . . . . .
. 13
I.
[§
509]
Attorneys' Fees . . . . . . . . . . . .
. 14
J.
[§
510]
Calendar Days . . . . . . . . . . . . .
. 14
K.
[§
511]
Schedule of Performance . . . . . . . .
. 14
L.
[§
512]
Indemnification During Construction
Bodily Injury, Property Damage and
Worker's Compensation Insurance . . . .
. 14
M.
[§
513]
Local, State, and Federal Laws . . . .
. 15
N.
[§
514]
Taxes, Assessments, Encumbrances and
Liens. . . . . . . . . . . . . . . . .
. 15
VI. [§ 600]
ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS . .
. 15'
ATTACHMENT
NO. 1
- SITE MAP
ATTACHMENT
NO. 2
- LEGAL DESCRIPTION
ATTACHMENT
NO. 3
- AGREEMENT CONTAINING COVENANTS
940222 C1371-01009 Isj 1091469.3 0 — ii —
AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT is entered into by and between the CARSON
REDEVELOPMENT AGENCY, a public body, corporate and politic (the
"Agency"), and MICHAEL PADILLA AND BERTHA C. PADILLA, husband and
wife (the "Developer") , as of November 16 , 1993. The
Agency and the Developer covenant and agree as follows:
I. [§ 100] SUBJECT OF AGREEMENT
A. [§ 101] Definitions
For purposes of this Agreement, the following capitalized
terms shall have the following meanings:
"Affordable Rent" shall be as defined in Health and Safety
Code Section 50053(b)(2). For those lower income households with
gross incomes that exceed 60 percent of the area median income
adjusted for family size, affordable rent shall be a rent that
does not exceed 30 percent of the gross income of the household.
"Agency" shall have the meaning set forth in Section 105.
"Agency Assistance" shall refer to the Agency financial
assistance described in Section 201 of this Agreement.
"Agency Units" shall refer to the twenty-two units to be
rented at an Affordable Rent, including a reasonable utility
allowance, to Qualified Tenants.
"Agreement Containing Covenants" shall mean the Agreement
Containing Covenants Affecting Real Property attached hereto as
Attachment No. 3 and incorporated herein by this reference.
"City" shall mean the City of Carson, State of California.
"Conditions" shall mean, with respect to any parcel of
property, the condition of the soil, geology, the presence of
known or unknown faults or defects, or Hazardous Substances, the
suitability of the property for its intended uses, or the
condition of any related public improvements.
"Development" shall mean the operation on the Site of a
rental housing project for elderly households.
"Elderly household" shall mean households consisting solely
of individuals fifty-five (55) years of age or older, or a single
person who is fifty-five (55) years of age or older.
"Force Majeure" shall have the meaning described in Section
505 hereof.
940222 C1371-01009 Isj 1091469.3 0 — 1 —
"Hazardous Substances" shall include, without limitation,
any flammable explosives, radioactive materials, asbestos,
polychlorinated biphenyls, chemicals known to cause cancer or
reproductive toxicity, substances described in Civil Code Section
2929.5(e)(2), as it now exists or as subsequently amended,
pollutants, contaminants, hazardous wastes, toxic substances or
related materials.
"Improvements" shall mean all of the buildings, structures,
facilities and spaces located on the Site.
"Lower income" shall have the same meaning as "lower income
households", as defined by Health and Safety Code Section 50079.5
"Maximum Rent", including the cost of utilities except
telephone service, shall be $683 per month per unit, escalated at
a rate of four percent $4% per year, as set forth in Section
301(3) of this Agreement.
"Project Area" shall mean the area of the Carson Redevelop-
ment Project Area No. 1, as more particularly described in the
Redevelopment Plan.
"Qualified Tenant" shall mean a lower income elderly
household, that is not receiving assistance pursuant to Section 8
of the United States Housing Act of 1937.
"Redevelopment Plan" shall mean the Redevelopment Plan for
the Carson Redevelopment Project Area No. 1, approved and adopted
by the City Council of the City by Ordinance No. 71-205 on
December 20, 1971, and most recently amended on July 9, 1984 by
Ordinance No. 84-696.
"Redevelopment Project" shall mean the Carson Redevelopment
Project Area No. 1.
"Site" shall have the meaning described in Section 103.
"Site Map" shall refer specifically to Attachment No. 1
hereof. .
B. (S 102] Purpose of the Agreement
(1) The Developer has recently completed construction of a
forty-five unit housing project on the Site, consisting of one -
bedroom units. The purpose of this Agreement is to effectuate
the Redevelopment Plan for the Carson Redevelopment Project Area
No. 1 by providing a subsidy to the Developer to operate on the
Site forty-five units for elderly households, at least twenty-two
of which will be restricted to lower income elderly households,
at affordable rents. The subsidy is contingent upon the
Developer obtaining permanent financing. The operation of the
Site pursuant to this Agreement, and the fulfillment generally of
the Agreement, are in the vital and best interest of the City of
940222 C1371-010091sj 1091469.3 0 — 2 —
Carson and the health, safety, morals, and welfare of its
residents, and in accord with the public purposes and provisions
of the applicable federal, state and local laws and requirements
under which the development has been undertaken and is being
assisted. This Agreement is in furtherance of the provisions of
the Redevelopment Plan for the Project.
(2) In approving this Agreement, the Agency and City
Council have found that the Agency Assistance is of benefit to
the Project Area, as required by Health and Safety Code Section
33334.2(g).
C. [§ 103] The Site
The "Site" is that certain property shown on the "Site
Map" attached to this Agreement as Attachment No. 1, and legally
described in Attachment No. 2 hereto, which attachments are
incorporated herein by this reference. The Site is located at
21731 S. Main Street in the City of Carson, outside the Project
Area.
D. [§ 104] Parties to the Agreement
105] The Agency
(a) The Agency is a public body, corporate and
politic, exercising governmental functions and powers, and
organized and existing under Chapter 2 of the Community
Redevelopment Law of the State of California. The principal
office of the Agency is located at 701 E. Carson Street, Carson,
California 90745.
(b) "Agency" as used in this Agreement includes
the Carson Redevelopment Agency and any assignee of or successor
to its rights, powers and responsibilities.
2. (S 106) The Developer
(a) The Developer is Michael Padilla and Bertha C.
Padilla, husband and wife. The principal office of the Developer
for purposes of this Agreement is 224 N. Trotwood Avenue, Rancho
Palos Verdes, California, 90732.
(b) "Developer" as used in this Agreement includes
Michael Padilla and Bertha C. Padilla, and any assignee of or
successor to its rights, powers and responsibilities.
E. [S 107] Prohibition Against Transfer
(1) The Developer represents and agrees that its
undertakings pursuant to this Agreement are, and will be used,
for the purpose of redevelopment of the Site and not for
speculation in land holding. The Developer further recognizes
that, in view of
940222 C1371-01009 Isj 1091469.3 0 - 3 -
(a) the importance of the redevelopment of
the Site to the general welfare of the
community;
(b) the public aids that have been made
available by law and by the Agency and
the City for the purpose of making such
redevelopment possible; and
(c) the fact that a change in ownership or
control of the Developer or of a
substantial part thereof, or any other
act or transaction involving or
resulting in a significant change in
ownership or control of the Developer or
the degree thereof, is for practical
purposes a transfer or disposition of
the property then owned by the
Developer;
the qualifications and identity of the Developer and its
principals are of particular concern to the City and the Agency.
It is because of those qualifications and identity that the
Agency has entered into this Agreement with the Developer. No
voluntary or involuntary successor in interest of Developer shall
acquire any rights or powers under this Agreement except as
expressly set forth herein.
(2) The Developer shall not, except as permitted by
this Agreement, assign or attempt to assign this Agreementorany
right herein, nor make any total or partial sub -lease, sale,
transfer, conveyance or assignment of the whole or any part of
the Site or the improvements thereon, without prior written
approval of the Agency. This prohibition shall not be deemed to
prevent the granting of easements or permits to facilitate the
development of the Site or to prohibit or restrict the renting
for occupancy of residential units to be constructed on the Site,
nor shall it prohibit granting any security interests permitted
in this Agreement for financing the development of the Site.
(3) Any such proposed transferee shall have the
qualifications and financial responsibility necessary and
adequate as may be reasonably determined by the Agency, to
fulfill the obligations undertaken in this Agreement by the
Developer. Any such proposed transferee, by instrument in
writing satisfactory to the Agency and in form recordable among
the land records, for itself and its successors and assigns, and
for the benefit of the Agency shall expressly assume all of the
obligations of the Developer under this Agreement and agree to be
subject to all conditions and restrictions to which the Developer
is subject. There shall be submitted to the Agency for review
all instruments and other legal documents proposed to effect any
such transfer; and if approved by the Agency its approval shall
be indicated to the Developer in writing.
940222 C1371-01009 Isj 1091469.3 0 - 4 -
(4) In the absence of specific written agreement by
the Agency, no unauthorized sale, sub -lease, transfer, conveyance
or assignment of the Site, or approval thereof by the Agency,
shall be deemed to relieve the Developer or any other party from
any obligations under this Agreement.
II. [S 200] FINANCING
A. [S 201] Agency Assistance
The Agency hereby agrees to pay the Developer rental
assistance payments for each Qualifying Tenant, subject to the
terms and conditions set forth in Section 202. Assistance
payments shall be made by the Agency monthly, in arrears, based
upon a detailed tenant rent and income report, in a form
acceptable to the Agency, listing units rented, Qualifying
Tenant's incomes, and rents for the previous month. Adjustments
shall be made in subsequent assistance payments to account for
over or underpayments resulting from tenant changes occurring
during the previous month. Assistance payments shall be made
within ten working days of receipt of the report from the
Developer.
B. [S 202] Terms and Conditions of Agency Assistance
1. Terms of Agency Assistance
The Agency Assistance will be paid for six years from the
date of this Agreement, at a rate of not more than $295 per month
per unit occupied by a Qualified Tenant, up to a maximum of 22
units. The precise amount of the Agency Assistance per unit per
month will be the amount needed to pay the difference between the
Affordable Rent for the Qualified Tenant, and the Maximum Rent.
2. Conditions of Aqencv Assistance
The Agency agrees to disburse the Agency Assistance in
accordance with standard Agency procedures and the provisions of
this Agreement, upon the satisfaction of the following
conditions:
(a) The Developer delivers to the Agency evidence
satisfactory to the Agency Executive Director that permanent
financing has been secured;
(b) The Developer executes, notarizes and
delivers to the Agency the Agreement Containing Covenants;
(c) A title insurance company acceptable to the
Agency shall have issued to the Agency a preliminary title
report, showing the Agreement Containing Covenants recorded no
lower then second position, subordinate only to a deed of trust
securing permanent financing for the Site and the Improvements;
940222 C1371-01009 Isj 1091469.3 0 - 5 -
(d) Developer has submitted and the Agency has
approved a preliminary toxics assessment for the Site, acceptable
to the Agency, showing that the Site is free of any Hazardous
Substances;
(e) The Developer provides, maintains and
delivers to the Agency a certificate of insurance or copy of the
insurance policy as set forth in Section 511 hereof, satisfactory
to the Agency, with loss payable to the Agency in addition to the
Developer;
(f) The Developer is not otherwise in default of
its obligations to the Agency.
C. CS 203] Recordation of Documents
The Agency shall be authorized to record the Agreement
Containing covenants in second position on title to Site,
subordinate only to a deed of trust securing permanent financing
for the Site and Improvements.
f§ 300) USE OF THE SITE
A. CS 301] Uses
The Developer covenants and agrees for itself, its
successors, its assigns and every successor in interest to the
Site or any part thereof, that the Developer, such successors and
such assigns shall use the Site as follows:
(1) Developer shall use the Site exclusively for those
uses specified in this Agreement and the Agreement Containing
Covenants.
(2) The Developer covenants and agrees that the Site
shall be used exclusively as an apartment building with forty-
four residential dwelling units occupied by Elderly households,
and one unit occupied by an on-site manager who need not be
Elderly. Twenty-two of the units (the "Agency Units") shall be
rented at an Affordable Rent, including a reasonable utility
allowance, to Qualified Tenants.
(3) The Maximum Rent to be charged for each of the
Agency Units shall be $683 per month per unit, which includes the
cost of all utilities except telephone. The Maximum Rent may be
increased by a maximum of four percent (0) per year, commencing
November 1, 1994 and each November 1 thereafter.
(4) Developer shall obtain and maintain or cause to be
obtained and maintained on file reasonable verification in
written form as to the income of each Low and Moderate Income
940222 C1371-01009 Isi 1091469.3 0 - 6 -
household, and as to the age of each head of household, residing
in the Development.
(5) Priority in filling vacancies will be provided to
individuals who have resided in Carson at least two years prior
to submitting the application for senior housing.
(6) Developer shall submit an annual report (the
"Annual Report") to the Agency, in a form acceptable to the
Agency Executive Director, which contains the information
required by Health and Safety Code Section 33418. The Annual
Report shall include for each rental unit the rental rate and the
income and family size of the occupants. The income information
shall be'supplied by the tenant in a certified statement on a
form provided by the Agency. The age of the head of household
shall be included in the Annual Report. The Developer shall
submit the Annual Report prior to February 1 of each year.
(7) Developer shall manage or cause the Development to
be managed in a prudent and businesslike manner, consistent with
similar housing projects in the State of California and the
purposes of this Agreement.
(8) The Developer shall maintain the Development, keep
the Site and the improvements thereon free from any accumulation
of debris, waste materials, or graffiti and maintain the
landscaping in a healthy and attractive condition.
B. [S 302] Oblicfation to Refrain from Discrimination
There shall be no discrimination against or segregation of
any person, or group of persons, on account of race, color,
creed, religion, national origin, ancestry, sex, or marital
status in the sale, lease, sublease, transfer, use, occupancy,,
tenure or enjoyment of the Site, or any part thereof, nor shall
the Developer himself or any person claiming under or through him
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the Site.
C. [S 303] Form of Nondiscrimination and Nonsegregation
Clauses
The Developer shall refrain from restricting the rental,
sale or lease of the Site on the basis of race, color, creed,
religion, ancestry, national origin sex, sexual orientation or
marital status of any person. All such deeds, leases or
contracts shall contain or be subject to substantially the
following nondiscrimination or nonsegregation clauses:
1. In deeds: "The grantee herein covenants by and
for himself, his heirs, executors, administrators and assigns,
and all persons claiming under or through him, that there shall
940222 C1371-01009 Isj 1091469.3 0 - 7 -
be no discrimination against or segregation of, any person or
group of persons on account of race, color, creed, religion,
national origin, ancestry, sex, or marital status in the sale,
lease, sublease, transfer, use, occupancy, tenure or enjoyment of
the land herein conveyed, nor shall the grantee himself or any
person claiming under or through him, establish or permit any
such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of
tenants, lessees, subtenants, sublessees or vendees in the land
herein conveyed. The foregoing covenants shall run with the
land."
2. In leases: "The lessee herein covenants by and for
himself, his heirs, executors, administrators and assigns, and
all persons claiming under or through him, and this lease is made
and accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation
of any person or group of persons, on account of race, color,
creed, religion, national origin, ancestry, sex, or marital
status in the leasing, subleasing, transferring, use, occupancy,
tenure or enjoyment of the land herein leased nor shall the
lessee himself, or any person claiming under or through him,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy, of tenants, lessees,
sublessees, subtenants, or vendees in the land herein leased."
3. In contracts: "There shall be no discrimination
against or segregation of•any person, or group of persons on
account of race, color,,creed, religion, national origin,
ancestry, sex, or marital status in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the land, nor
shall the transferee himself or any person claiming under or
through him, establish or permit any such practice or practices
of discrimination or segregation with reference to the lessees,
subtenants, sublessees or vendees of the land."
D. [S 304] Effect and Duration of Covenants
The covenants set forth in Sections 301 through 303,
inclusive, shall be contained in the Agreement Containing
Covenants, which shall be executed by Developer and recorded
against fee title to the Site. The covenants established in this
Agreement shall, without regard to technical classification and
designation, be binding for the benefit and in favor of the
Agency, its successors and assigns, and the City. The covenants
contained in Section 301 shall remain in effect for the longest
feasible time, but not less than thirty (30) years from the date
of this Agreement. The covenants contained in Sections 302 and
303 shall remain in perpetuity.
940222 C1371-01009 lsj 1091469.3 0 — 8 —
E. [§ 305] Effect of Violation of the Terms and
Provisions of this Agreement
The Agency and the City are deemed beneficiaries of the
terms and provisions of this Agreement and the covenants herein,
both for and in their own right and for the purposes of
protecting the interests of the community and other parties,
public or private, for whose benefit this Agreement and the
covenants running with the land have been provided. The
Agreement and the covenants shall run in favor of the Agency.
The Agency 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 this Agreement and covenants are entitled.
IV. [§ 400] DEFAULTS, REMEDIES AND TERMINATION
A. [§ 401] Defaults - General
Subject to the extensions of time set forth in Section 505,
failure or delay by either party to perform any term or provision
of this Agreement or the Agency Note constitutes a default under
this Agreement.
The injured party shall give written notice of default to
the party in default, specifying the default complained of by the
injured party and the actions required to cure the default. Delay
in giving such notice shall not constitute a waiver of any
default nor shall it change the time of default.
No action may be taken against the defaulting party so long
as it endeavors to cure, correct or remedy the default with
reasonable diligence, provided such cure, correction or remedy is
completed within thirty (30) days from receipt from the injured
party of a written demand to cure.
Any failures or delays by either party in asserting any of
its rights and remedies as to any default shall not .operate as a
waiver of any default or of any such rights or remedies. Delays
by either party in asserting any of its rights and remedies shall
not deprive either party of its right to institute and maintain
any actions or proceedings which it may deem necessary to
protect, assert, or enforce any such rights or remedies.
B. [§ 402] Legal Actions
1. [§ 403] Institution of Legal Actions
In addition to any other rights or remedies, either party
may institute legal action to cure, correct, or remedy any
default to recover damages for any default, or to obtain any
other remedy consistent with the purpose of this Agreement. Such
940222 C1371-010091aj 1091469.3 0 — 9 —
legal actions must be instituted in the Superior Court of the
County of Los Angeles, State of California, in any other
appropriate court in that County, or in the Federal District
Court for the Central District of California.
2. [S 404] Applicable Law
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
3. [S 405] Acceptance of Service of Process
In the event that any legal action is commenced by the
Developer against the Agency, service of process on the Agency
shall be made by personal service upon the Executive Director or
Chairman of the Agency, or in such other manner as may be
provided by law.
In the event that any legal action is commenced by the
Agency against the Developer, service of process on the Developer
shall be made by personal service upon Developer, or in such
manner as may be provided by law, and shall be valid whether made
within or without the State of California.
C. [S 406] Rights and Remedies are Cumulative
Except with respect to rights and remedies expressly
declared to be exclusive in this Agreement, the rights and
remedies of the parties are cumulative and the exercise by either
party of one or more of such rights or remedies shall not
preclude the exercise by it, at the same or different times, of
any other rights or remedies for the same default or any other
default by the other party.
D. [§ 407] Damages; Specific Performance
If either party defaults with regard to any of the
provisions of this Agreement, the nondefaulting party shall serve
written notice of such default upon the defaulting party. If the
default is not cured by the defaulting party within thirty (30)
days after service of the notice of default, or if the default is
not commenced to be cured within thirty (30) days after service
of the notice of default and is not cured promptly within a
reasonable period of time after commencement, the defaulting
party shall be liable to the other party for damages caused by
such default, and the nondefaulting party, at its option, may
also institute an action for specific performance of the terms of
this Agreement.
940222 C1371-01009 Isj 1091469.3 0 — 10 —
E. [§ 408) Remedies and Rights of Termination
1. [§ 409] Termination by Developer
The Developer at its option may terminate this Agreement in
the event of the following:
(a) The Developer may terminate this Agreement
prior to disbursement of the Agency Assistance, if the Developer
is unable, despite its diligent best efforts, to satisfy the
conditions set forth in Section 202(2):
(b) Subject to Force Majeure, the Developer may
terminate this Agreement if the Agency is in default of any of
its obligations under this Agreement, and such default is not
cured within thirty (30) days after written notice by the
Developer.
2. [§ 410] Termination by Agency
The Agency at its option may terminate this Agreement in the
event of the following:
(a) If the Developer assigns or attempts to
assign this Agreement, or any rights therein, or makes any total
or partial sale, sub -lease, transfer or conveyance of the whole
or any part of the Site or the improvements thereon or to be
developed thereon, except as permitted by this Agreement.
(b) Subject to Force Majeure, the Agency at its
option may terminate this Agreement if the Developer is in
default of any provision of this Agreement, and such default is
not cured within thirty (30) days after the date of written
demand therefor by the Agency.
(c) Subject to Force Majeure, the Agency may
terminate this Agreement if the Developer violates the terms of
this Agreement, or if the Agreement Containing Covenants is
terminated for any reason.
V. [§ 500] GENERAL PROVISIONS
A. [§ 501] Notices, Demands, and Communications Between
the Parties
Formal notices, demands, and communications between the
Agency and the Developer shall be sufficiently given if
dispatched by registered or certified mail, postage prepaid,
return receipt requested, to the principal offices of the Agency
and the Developer as designated in Section 105 and Section 106
hereof. Such written notices, demands, and communications may be
sent in the same manner to such other addresses as either party
may from time to time designate by mail as provided in this
Section 601.
940222 C1371-010091sj 1091469.3 0 — 11 —
B. [§ 502] Conflict of Interests
No member, official or employee of the Agency shall have any
personal interest, direct or indirect, in this Agreement nor
shall any such member, official or employee participate in any
decision relating to the 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.
C. [§ 503] Warranty Against Payment of Consideration for
Agreement
The Developer warrants that it has not paid or given, and
will not pay or give, any third party any money or other
consideration for obtaining this Agreement.
D. [§ 504] Nonliability of Agency Officials and
Employees
No member, official, or employee of the Agency shall be
personally liable to the Developer or any successor in interest,
in the event of any default or breach by the Agency or for any
amount which may become due to the Developer or to its successor,
or on any obligations under the terms of this Agreement.
E. [§ 505] Enforced Delay [Force Majeure]: Extension of
Time of Performance
Notwithstanding specific provisions of this Agreement,
performance by either party hereunder shall not be deemed to be
in default where delays or defaults are due to war; insurrection;
strikes; lock -outs; riots; floods; earthquakes; fires;
casualties; acts of God; acts of the public enemy; epidemics;
quarantine restrictions; freight embargoes; lack of
transportation; governmental restrictions or priority; litigation
including litigation challenging the validity of this transaction
or any element thereof; unusually severe weather; inability to
secure necessary labor, materials or tools; delays of any
contractor, subcontractor, or suppliers; acts of the other party;
acts or failure to act of the City or any other public or
governmental agency or entity (other than that acts or failure to
act of the Agency or the City shall not excuse performance by the
Agency); or any other causes beyond the control or without the
fault of the party claiming an extension of time to perform. An
extension of time for any such cause shall be for the period of
the enforced delay and shall commence to run from the time of the
commencement of the cause, if notice by the party claiming such
extension is sent to the other party within thirty (30) days of
the commencement of the cause. Times of performance under this
Agreement may also be extended in writing by the Agency and the
Developer.
940222 C1371-01009 Isj 1091469.3 0 — 12 —
F. [S 506] Inspection of Books and Records
The Agency has the right at all reasonable times to inspect
the books and records of the Developer pertaining to the Site as
pertinent to the purposes of this Agreement.
G. [S 507] Right of Access
The Agency, for itself and other public agencies, at their
sole risk and expense, reserves the right to enter the Site or
any part thereof at all reasonable times during ordinary business
hours for the purpose of construction, reconstruction,
maintenance, repair or service of any public improvements or
public facilities located on the Site, or monitoring Developer's
compliance with the terms and conditions of this Agreement. Any
such entry shall be made only after reasonable notice to
Developer.
H. CS 508] Approvals
Approvals required of the Agency or the Developer shall not
be unreasonably withheld and approval or disapproval shall be
given within the time set forth in this Agreement, or, if no time
is given, within a reasonable time.
I. [S 509] Attorneys' Fees
If either party hereto should retain legal counsel for the
purpose of enforcing any term or condition of this Agreement, the
prevailing party shall be entitled to recover costs and expenses,
including but not limited to reasonable attorneys' fees.
J. [S 510] Calendar Day
All references in this Agreement to a number of days in
which either party shall have to consent, approve or perform
shall mean calendar days unless specifically stated to be
business days.
K. 511] Indemnification: Bodily Iniury and Property
Damage Insurance
(1) During the period that this Agreement is in
effect, the Developer agrees to, and shall, defend, indemnify and
hold the Agency and the City harmless from and against all
liability, loss, damage, costs, or expenses (including attorneys'
fees and court costs) arising from or as a result of the death of
any person or any accident, injury, loss and damage whatsoever
caused to any person or to the property of any person which shall
occur on or adjacent to the Site and which shall be directly or
indirectly caused by any acts done thereon or any errors or
omissions of the Developer and its agents, servants, employees
and contractors.
940222 C1371-01009 Isj 1091469.3 0 - 13 -
(2) Prior to disbursement of the Agency Assistance,
the Developer shall furnish or shall cause to be furnished, to
the Agency, duplicate originals or appropriate certificates of
Comprehensive General Liability Insurance, insuring the Agency
and City against losses, costs, liabilities, claims, causes of
action and damages for bodily injury and property damage on the
Site in the amount of at least One Million Dollars ($1,000,000)
combined single limit coverage, naming the Agency as an
additional or co-insured. Such insurance shall include Blanket
Contractual Liability coverage. All such policies shall be
written to apply to all bodily injury, property damage, personal
injury and other covered loss, however occasioned, occurring
during the policy term, shall be,endorsed to add the Agency and
the City as additional insureds, and to provide that such
coverage shall be primary and that any insurance maintained by
the Agency and/or the City shall be excess insurance only. Such
coverage shall be endorsed to waive the insurer's rights of
subrogation against the Agency and the City.
All insurance policies required by this Section shall
be nonassessable and shall contain language to the effect that
(a) the policies are primary and noncontributing with any in-
surance that may be carried by Agency or City, (b) the policies
cannot be canceled or materially changed except after thirty (30)
days written notice by the insurer to Agency, and (c) neither
Agency nor City shall be liable for any premiums or assessments.
All such insurance shall have deductibility limits reasonably
satisfactory to Agency and shall contain cross liability
endorsements.
L. (S 514] Taxes Assessments Encumbrances, and Liens
The Developer shall pay when due all real property taxes and
assessments assessed and levied on or against the Site.
Developer shall remove, or shall have removed, any levy or
attachment made on the Site, or shall assure the satisfaction
thereof within a reasonable time but in any event at least 15
days prior to a scheduled sale thereunder. Nothing herein
contained shall be deemed to prohibit the Developer from
contesting the validity or amounts of any tax assessment,
encumbrance or lien, nor to limit the remedies available to the
Developer in respect thereto.
VI. (S 600) ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS
This Agreement shall be executed in three (3) duplicate
originals each of which is deemed to be an original. This
Agreement includes fifteen (15) pages and three (3) attachments
which constitute the entire understanding and agreement of the
parties.
This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all
940222 C1371-01009 Isj 1091469.3 0 — 14 —
negotiations or previous agreements between the parties with
respect to all or any part of the Site. All waivers of the
provisions of this Agreement must be in writing and signed by the
appropriate authorities of the Agency and the Developer, and all
amendments hereto must be in writing and signed by the
appropriate authorities of the Agency and the Developer.
Date: 1994
Attest:
,"
Agency Secretar
Date: ' Z --2-9°` , 1994
Date: -61 ,
Approved as to form:
CARSON REDEVELOPMENT AGENCY
By:
cha iiVnan
MICHAEL PADILLA AND BERTHA C.
PADILLA, husband and wife
By:
1994 t44)a�
Agency Attorney
940222 C1371-010091sj 1091469.3 0 • — 15 —
a i\— A ,♦ A _
'— 21735 S.MAIN STREET -5 U Ia
CARSON _..�._._�� „, - _ �- ! 'v = fJ�
N►'l►:
LEGAL DESCRIPTION
EL CAMINO VILLAGE SENIOR CITIZEN PROJECT
The northerly 110' -0" of lot 44 tract 3612 as per map recorded in book 40, paves 5 & 6
in the office of the County Recorder of Los Angeles County. Except the westerly 846' -0"
thereof.
ATTACHMENT NO. 3
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
Carson Redevelopment Agency
701 E. Carson Street
Carson/ California 90745.
Attn: Redevelopment Manager
FREE RECORDING REQUESTED
(Gov't Code Section 6103)
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY
THIS AGREEMENT (the "Agreement Containing Covenants") is
entered into this day of , 1994, by and
between MICHAEL PADILLA AND BERTHA C. PADILLA, husband and wife
(the "Developer"), and the CARSON REDEVELOPMENT AGENCY, a public
body, corporate and politic ("Agency").
WHEREAS, Developer is the owner of fee title to that certain
real property (the "Site") located in the City of Carson more
particularly described in Exhibit "All attached hereto and
incorporated herein by this reference; and
WHEREAS, for the purpose, among others, of effectuating the
Redevelopment Plan for the Carson Redevelopment Project No. 1
(the "Project"), the Agency and Developer have entered into that
certain Affordable Housing Agreement, dated A,
1994 (the "Agreement"), which provides for the operation on the
Site and the development thereon of housing for elderly
households (the "Development"); and
WHEREAS, the Agreement contains certain provisions relating
to the use of the Site, with respect to which the parties have
agreed to execute and record this Agreement Containing Covenants.
NOW, THEREFORE, AGENCY AND DEVELOPER COVENANT AND AGREE AS
FOLLOWS:
1. The Developer covenants and agrees (for itself, its
successors, its assigns, and every successor in interest to the
Site or any part thereof) that the Developer, such successors,
and such assigns shall devote the Site (or any part thereof), to
the uses specified therefor in the Redevelopment Plan, the
Agreement and this Agreement Containing Covenants.
2. The Developer covenants and agrees that the Site shall
be used exclusively as an apartment building with forty-four
residential dwelling units occupied by Elderly households, and
one unit occupied by an on-site manager who need not be Elderly.
940222 C1371-01009 Isi 1091469.3 0 Page 1 of 5
Twenty-two of the units (the "Agency Units") shall be rented at
an Affordable Rent, including a reasonable utility allowance, to
Qualified Tenants.
3. The Maximum Rent to be charged for each of the Agency
Units shall be $683 per month per unit, which includes the cost
of all utilities except telephone. The Maximum Rent may be
increased by a maximum of four percent (4%) per year, commencing
November 1, 1994 and each November 1 thereafter.
4. For purposes of this Agreement:
(a) "Affordable Rent" shall be as defined in Health and
Safety Code Section 50053(b)(2). For those lower income
households with gross incomes that exceed 60 percent of the area
median income adjusted for family size, affordable rent shall be
a rent that does not exceed 30 percent of the gross income of the
household.
(b) "Elderly household" shall mean households
consisting solely of individuals fifty-five (55) years of age or
older, or a single person who is fifty-five (55) years of age or
older.
(c) "Lower income" shall have the same meaning as
"lower income households",.as defined by Health and Safety Code
Section 50079.5
(d) "Qualifying Tenant" shall mean a lower income
elderly household, that is not receiving assistance pursuant to
Section 8 of the United States Housing Act of 1937.
4. Developer shall obtain and maintain or cause to be
obtained and maintained on file reasonable verification in
written form as to the income of each Low and Moderate Income
household, and as to the age of each head of household, residing
in the Development.
5. Priority in filling vacancies will be provided to
individuals who have resided in Carson at least two years prior
to submitting the application for senior housing.
6. Developer shall submit an annual report (the "Annual
Report") to the Agency, in a form acceptable to the Agency
Executive Director, which contains the information required by
Health and Safety Code Section 33418. The Annual Report shall
include for each rental unit the rental rate and the income and
family size of the occupants. The income information shall be
supplied by the tenant in a certified statement on a form
provided by the Agency. The age of the head of household shall
be included in the Annual Report. The Developer shall submit the
Annual Report prior to February 1 of each year.
940222 C1371-01W91sj 1091469.3 0 Page 2 of 5
7. Developer shall manage or cause the Development to be
managed in a prudent and businesslike manner, consistent with
similar housing projects in the State of California and the
purposes of this Agreement.
8. The Developer shall maintain the Development, keep the
Site and the improvements thereon free from any accumulation of
debris, waste materials, or graffiti and maintain the landscaping
in a healthy and attractive condition.
9. Developer covenants and agrees for itself, its
successors, its assigns and every successor in interest to the
Site or any part thereof, that there shall be no discrimination
against or segregation of any person, or group of persons, on
account of race, color, religion, creed, national origin,
ancestry, physical handicap, medical condition, age, marital
status, or sex in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the Site nor shall the
Developer itself, or any person claiming under or through it,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the Site.
10. The Developer shall refrain from restricting the sale,
lease, sublease, rental, transfer, use, occupancy, tenure, or
enjoyment of the Site (or any part thereof) on the basis of race,
color, religion, creed, national origin, ancestry, physical
handicap, medical condition, age, marital status, or sex of any
person. All such deeds, leases, orcontractspertaining thereto
shall contain or be subject to substantially the following
nondiscrimination or nonsegregation clauses:
(a) In deeds: "The grantee herein covenants by and
for itself, its successors 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 race, color, religion, creed, national origin,
ancestry, physical handicap, medical condition, age, marital
status, or sex in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land herein conveyed, nor
shall the grantee itself or any person claiming under or through
it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees in the land herein conveyed.
The foregoing covenants shall run with the land."
(b) In leases: "The lessee herein covenants by and
for itself, its successors and assigns, and all persons claiming
under or through them, and this lease is made and accepted upon
and subject to the following conditions: That there shall be no
discrimination against or segregation of any person or group of
persons, on account of race, color, religion, creed, national
940222 C1371-OI009Isj 1091469.3 0 Page 3 of 5
origin, ancestry, physical handicap, medical condition, age,
marital status, or sex in the leasing, subleasing, renting,
transferring, use, occupancy, tenure or enjoyment of the land
herein leased, nor shall lessee itself, or any person claiming
under or through it, establish or permit such practice or
practices of discrimination or segregation with reference to the
selection, location, number, or occupancy of tenants, lessees,
sublessees, tenants, or vendees in the land herein leased."
(c) In contracts: "There shall be no discrimination
against or segregation of, any person or group of persons on
account of race, color, religion, creed, national origin,
ancestry, physical handicap, medical condition, age, marital
status, or sex in the sale, lease, sublease, rental, transfer,
use, occupancy, tenure or enjoyment of the land, nor shall the
transferee itself or any person claiming under or through it,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the land."
11. In amplification and not in restriction of the
provisions set forth hereinabove, it is intended and agreed that
Agency shall be deemed a beneficiary of the covenants and
agreements provided hereinabove both for and in its own right and
also for the purposes of protecting the interests of the
community. All covenants without regard to technical
classification or designation shall be binding for the benefit of
Agency, and such covenants shall run in favor of Agency for the
entire period during which such covenants shall be in force and
effect, without regard to whether Agency is or remains an owner
of any land or interest therein to which such covenants relate.
Agency shall have the right, in the event of any breach of any
such covenant or agreement, to exercise all the rights and
remedies, and to maintain any actions at law or suits in equity
or other proper proceedings to enforce the curing of such breach
of covenant or agreement.
12. No violation or breach of the covenants, conditions,
restrictions, provisions or limitations contained in this
Agreement Containing Covenants shall defeat or render invalid or
in any way impair the lien or charge of any mortgage or deed of
trust or security interest permitted by the Agreement, provided,
however, that any subsequent owner of the Site shall be bound by
such remaining covenants, conditions, restrictions, limitations,
and provisions, whether such owner's title was acquired by
foreclosure, deed in lieu of foreclosure, trustee's sale or
otherwise.
13. Only the Agency, its successors and assigns, and
Developer and the successors and assigns of Developer in and to
all or any part of the fee title to the Site shall have the right
to consent and agree to changes in, or to eliminate in whole or
in part,,any of the covenants, easements, or other restrictions
940222 C1371-01009 tsj 1091469.3 0 Page 4 of 5
contained in this Agreement Containing Covenants, or to subject
the Site to additional covenants, easements or other
restrictions. Agency, its successors and assigns, and Developer
and the successors and assigns of Developer in and to all or any
part of the fee title to the Site shall have the right to consent
and agree to changes in, or to eliminate in whole or in part, any
of the covenants, easements, or restrictions contained in this
Agreement Containing Covenants or to subject the Site to
additional covenants, easements, or other restrictions without
the consent of any tenant, lessee, easement holder, licensee,
mortgagee, trustee, beneficiary under a deed of trust or any
other person or entity having any interest less than a fee in the
Site.
14. The covenants established in this Agreement, shall,
without regard to technical classification and designation, be
binding on the Developer and any successor in interest to the
Site or any part thereof for the benefit and in favor of the
Agency, its successors and assigns, and the City. Except as set
forth below, the covenants contained in this Agreement shall
remain in effect for the longest feasible time, but not less than
thirty (30) years from the date of this Agreement. The covenants
against discrimination (as described in Paragraphs 9 and 10)
shall remain in perpetuity.
IN WITNESS WHEREOF, the Agency and the Developer have
executed this Agreement Containing Covenants.
Date:
APPROVED AS TO FORM:
RICHARDS, WATSON, & GERSHON
Agency Counsel
THE CARSON REDEVELOPMENT AGENCY
By:
Executive Director
By:
MICHAEL PADILLA AND BERTHA C.
PADILLA, husbanA and wife
Date: 1994 By: K
Date: /2 1994 By;
940222 C1371-01009 Isj 1091469.3 0 Page 5 of 5
/,�h./Irs-�t���1-� re-U3,,�-,nom..'-'�-�-�-b,,, ,�_•-, . ,.- - - ---
_.___—
CITY _ ���� AGENDA
OF CATEGORY:........... ..........................
New business
MEETING DATE: .................
CARSON -- November 16, 1993
REPORT TO REDEVELOPMENT AGENCY
CHAIRMAN AND DIRECTORS
SUBJECT: REQUEST FOR CITY ASSISTANCE FOR SENIOR CITIZEN PROJECT
(MIRE AND BERTHA PADILLA) yy iiII�jj
SUBMITTED BY: .............................................. ....... APPROVED BY:..lf'...A^ ` ``� ....N:....... v�
PATRICK D. BROWN EXECUTIVE DIRECTOR
I. SUMMARY
Property owners Michael and Bertha Padilla have requested
Redevelopment Agency assistance from the yearly 201- housing
set-aside fund for their senior citizen housing project
located at 21735 South Main Street, Carson, CA. 90745. The
City's Senior Housing Subcommittee has twice met and
discussed the project and has recommended approval by the
full Agency. The recommended maximum subsidy would be for 6
years at $295 per unit, per month for up to 22 units
occupied by qualified low income tenants who are not
otherwise receiving a Section 8 subsidy. The subsidy is
contingent upon the applicant's obtaining permanent
financing for the completed project.
II. RECOMMENDATION
Take the following actions:
1. Approve the Negative Declaration.
2. Approve the Affordable Housing Agreement and Authorize
the Agency Chairman to sign the Agreement after final
review by the Agency Attorney.
III. BACKGROUND
Owner/Developer/Contractor Michael and Bertha Padilla have
constructed a 45 unit, three story, wood and stucco senior
housing structure. The project contains 36 one bedroom, one
bath units and 9 efficiency units, which are slightly
smaller than the standard one bedroom, one bath units. The
Padilla's requested Agency assistance through the City's
Senior Housing Subcommittee and have received the
subcommittee's approval pending the satisfaction of all
conditions.
The recommended conditions are as follows: 1) the five
recommendations which were adopted by the subcommittee and
listed on page 2 of 6 of the subcommittee minutes of 8/26/93
(Exhibit No. 5); 2) the Carson resident preference noted in
the motion on page 3 of 6 of the subcommittee minutes of
8/26/93 (Exhibit No. 5); 3) the conditions listed in the
Affordable Housing Agreement pages 5 and 6, (Exhibit No. 7);
4) the documented clear title to the project site; 5) the
procedure to be used for selecting prospective tenants; and
6) upon the final review by the Agency Attorney of all
documents used to satisfy the above listed conditions.
3
t0.16�0582
REPORT TO REDEVELOPMENT AGENCY PAGE ..2... ... .... OF...52
.............
AGENDA ITEM NO.. ...............
The subcommittee has recommended funding for up to six years
for 22 of the units at a maximum subsidy of $295 per unit,
per month for the one bedroom one bath units occupied by
qualified low income tenants who are not otherwise receiving
a Section 8 subsidy.
An Initial Study for this funding project has been prepared
in accordance with the California Environmental Quality Act
(CEQA)(Exhibit No. 1). Staff has reviewed the potential
environmental impacts of the proposed project and finds that
there would not be a significant effect on the environment.
Staff has prepared a negative declaration pursuant to
Section 15071 of the California Environmental Quality Act
(Exhibit No. 2).
IV. BUDGET IMPACT
The maximum yearly subsidy for this project will be $77,880
a year for the next six years from the 20% housing set-aside
fund (low and moderate income housing fund).
V. EXHIBITS
1.
Initial Study for El Camino
Village.
(pgs. 3-13)
2.
Negative Declaration for El
Camino Village. (pg. 14)
3.
Tract Map. (pg. 15)
4.
Grant Deed. (pg. 16)
5.
Senior Housing Subcommittee
Minutes
of 8/26/93. (pgs.
17-20)
6.
Senior Housing Subcommittee
Minutes
of 10/28/93. (pgs.
21-23)
7.
Affordable Housing Agreement.
(pgs.
24-51')
PD: AR: kf
5/SR-ELCAM
Page 19
CITY OF CARSON
COMMUNITY DEVELOPMENT DEPARTMENT
ENVIRONMENTAL INFORMATION AND CHECKLIST FORM
(INITIAL STUDY) .
GENERAL INFORMATION
1. Name and address of developer or project.sponsor:
Carson Redevelopment Agency
2. Address of project: _ 21 731 -21 735 S Main Street
Assessor's Block and Lot Number:
3. Name, address, telephone number of person to be
contacted concerning this project:
Adolfo Reyes Redevelopment Project Manager
701 E. Carson Street Carson CA 90745
(310) 830-7600
4. List and describe any other related permits and other
public approvals required for this project, including
those required by city, regional, state and federal
agencies: Zone Change No.'115-91 Conditional Use Permit No 376-91
Design Overlay Review 538-91 Variance 338-91
5. Existing zoning district: RM 25 D
6. Proposed use of site (Project for which this form is
filed) : _ _ 45 Senior Housing Units
PROJECT DESCRIPTION
7. Site size: 31,330 square feet
8. Square footage: _29.444 square feet
9. Number of floors of construction: 3 stories
10. Amount of off-street parking: 27
li. (Attach plans).
12. Proposed scheduling of construction: Completed
13. Associated projects:
EXHEBET NO. 1
(X)
3.
Page 20
14. Anticipated incremental development: None
15. If this is a residential project, indicate the number
of units qg , schedule of unit sizes _
36 - 1 bedroom 9 - efficigr�,y units _ _ ,
range of sales prices or rents, $ 683 ,
and type of household size expected 1 senior citi en
16. If this is a commercial project, indicate the r.�Fpe of
project, whether neighborhood, city or regionally
oriented, square footage of sales area, and loading
facilities: NA
17. If this is an industrial project, indicate the type of
project, estimated employment per shift, and loading
facilities: NA
18. If this is an institutional project, indicate the
major function, estimated employment per shift,
estimated occupancy, loading facilities, and community
benefits to be derived from the project: NA
19. If the project involves a variance, conditional use permit
or rezoning application, state this and indicate clearly
why the application is required.
Variance 339-91 Conditional Use Permit 376-91 Zone Change 115-91
Brief ly explain: Density bonus senior housing project
Answer each of the following items of effect. Discuss below
all items checked "yes" (attach additional sheets as necessary):
YES NO
X_ 20. Change in existing features of any
bays, tidelands, beaches, lakes or
hills, or substantial alteration of
ground contours.
X_ 21. Change in scenic views or vistas from
existing residential areas or public
lands or roads.
X_ 22. Change in pattern, scale or character
of general area of project.
X_ 23. Significant amount of solid waste or
litter generation.
X_ 24. Change in dust, ash, smoke, fumes or
odors in vicinity.
M
Page 21
YES NO
X 25. Change in ocean, bay, lake, stream or
ground water quality or quantity, or
alteration of existing drainage
patterns.
X 26. Substantial change in existing noise or
vibration levels in the vicinity.
X 27. Site on filled land or on slope of 10
percent or more.
X 28. Use or disposal of potentially
hazardous materials, such as toxic sub-
stances, flammables or explosives.
X 29. Substantial change in demand for
municipal services (police, fire, water,
sewage, etc.).
X 30. Substantially increase fossil fuel con-
sumption (electricity, oil, natural gas,
etc.).
X 31. Relationship to a larger project or
series of projects.
Provision of subsidized units for an existing project.
Environmental setting
(Questions 32 and 33 must be answered)
32. On a separate page, describe the project site as it
exists before the project, including information on
topography, soil stability, plants and animals, and
any cultural, historical, or scenic aspects. Describe
any existing structures on the site, and the use of
the structures. Attach photographs or slides of the site.
33. On a separate page, describe the surrounding proper-
ties, including information on plants and animals and
any cultural, historical, or scenic aspects. Indicate .
the type of land use (residential, commercial, etc.),
intensity of land use (one -family, apartment homes,
shops, department stores, etc.), and scale of develop-
ment (height, frontage, set -back, rear yard, etc.).
Attach photographs or slides of the vicinity.
Environmental Impacts
(Please explain all "yes" and "maybe" answers on separate sheets;
explain all "no" answers as necessary.)
YES MAYBE NO
34. EARTH. Will the proposal result in:
a. Unstable earth conditions or
changes in geologic substructures? X
b. Disruptions, displacements, com-
paction of overcovering of the
soil? X
c. Change in topography or ground
surface relief features? X
g. Exposure of people or property to
geologic hazards such as earth-
quakes, landslides, mudslides,
ground failure, or similar hazards?
35. AIR. Will the proposal result in:
a.
Page 22
d. The destruction, covering or
YES MAYBE NO
modification of any unique geo-
X
logic or physical features?
X
e. Any increase in wind or water;
erosion of soils, either on
or off the site?
X
f. Changes in deposition or erosion
c.
of beach sands, or changes in
siltation, deposition or erosion
or temperature, or any change in
which may modify the channel of
a river or stream or the bed of
the ocean or any bay, inlet or
ally?
lake?
X
g. Exposure of people or property to
geologic hazards such as earth-
quakes, landslides, mudslides,
ground failure, or similar hazards?
35. AIR. Will the proposal result in:
a.
Substantial.air emissions or de-
terioration of ambient air quality?
X
b.
The creation of objectionable
odors?
X
c.
Alteration of air movement, moisture
or temperature, or any change in
climate, either locally or region --
ally?
X
36. WATER. Will the proposal result in:
a.
Changes in currents, or the course
or direction of water movements,
in either marine or fresh waters?
X
b.
Changes in absorption rates,
drainage patterns, or the rate
and amount of surface water run-
off?
-
- _X_
c.
Alterations to the course or
.flow
of flood waters?
X
d.
Change in the amount of surface
water in any water body?
X
e.
Discharge into surface waters, or
in any alteration of surface water
quality, including but not limited
to temperature, dissolved oxygen or
turbidity?
X
f. Alteration of the direction or
rate of flow of ground waters? X
g. Change in the quantity of ground
waters, either through direct addi-
tions or withdrawals, or through
interception of an aquifer by cuts
or excavations? X
(X)
Page 23
40. LIGHT AND GLARE. Will the proposal
produce new light or glare? X
YES
MAYBE NO
h.
Substantial reduction in the
amount of water otherwise
available for public water
supplies?
X
i.
Exposure of people or property
to water -related hazards such as
flooding or tidal waves?
X
j.
Significant changes in the
temperature, flow, or chemical
content of surface thermal springs?
X
37. PLANT
LIFE. Will the proposal result
in:
a.
Change in the diversity of species, or
number of any species or plans (including
trees, shrubs, grass, crops, microflora
and aquatic plants)?
X
b.
Reduction of the numbers of any
unique, rare or endangered species
of plants?
X
c.
Introduction of new species of
plants into an area, or in a
barrier to the normal replenish-
ment of existing species?
_ X_
d.
Reduction in acreage of any
agricultural crop?
X
38. ANIMAL LIFE. Will the proposal
result in:
a.
change in the diversity of
species, or numbers of any species
of animals (birds, land animals
including reptiles, fish and
shellfish, benthic organisms,
insects or microfauna)?
_X
b.
Reduction of the numbers of any
unique, rare or endangered species
or animals?
_X_
c.
Introduction of new species of
animals into an area, or result
in a barrier to the migration or
movement of animals?
X
d.
Deterioration of existing fish or
wildlife habitat?
X
39. NOISE. Will the proposal result in:
a.
Increases in existing noise levels?
X
b.
Exposure of people to severe noise
levels?
X
40. LIGHT AND GLARE. Will the proposal
produce new light or glare? X
Page 24
YES MAYBE NO
41. LAND USE. Will the proposal result
in a substantial alteration of the
present or planned land use of an
area? X
42. NATURAL RESOURCES. Will the proposal
result in:
a. Increase in the rate of use of any
natural resource? X
b. Substantial depletion of any
nonrenewable natural resource? X
43. RISK OF UPSET. Will the proposal
involve:
a. A risk of an explosion or the
release of hazardous substances
(including, but not limited to,
oil, pesticides, chemicals or
radiation) in the event of an
accident or upset conditions? X
b. Possible interference with an
emergency response plan or an
emergency evacuation plan? X
44. POPULATION. Will the.proposal
alter the location, distribution,
density, or growth rate of the
human population of an area? X
45. HOUSING. Will the proposal affect
existing housing, or create a demand
for additional housing? X
46. TRANSPORTATION/CIRCULATION. Will the
proposal result in:
a. Generation of substantial addi-
tional vehicular movement?
b. Effects on existing parking
facilities, or demand for new
parking?
c. Substantial impact upon existing
transportation systems?
d. Alterations to present patterns
of circulation or movement of
people and/or goods?
e. Alterations to waterborne, rail
or air traffic?
f. Increase in traffic hazards to
motor vehicles, bicyclists or
pedestrians?
(X)
X
X
X
X
X
_ X
47. PUBLIC SERVICES. Will the proposal
have an effect upon, or result in a
need for new or altered governmental
services in any of the following
areas:
a. Fire protection?
b. Police protection?
C. Schools?
d. Parks or other recreational
facilities?
Page 25
YES MAYBE NO
X
X
X
X
e. Maintenance of public facilities,
including roads? X
f. Other governmental services? X
48. ENERGY. Will the proposal result
in:
a. Use of substantial amounts of
fuel or energy?
b. Substantial increase in demand
upon existing sources of energy,
or require the development of
new sources of energy?
49. UTILITIES. Will the proposal result
in
a need for�new systems, or sub-
stantial alterations to the following
utilities:
a.
Power or natural gas?_
b.
Communications systems?
X
c.
Water?
X
d.
Sewer or septic tanks?
X
e.
Storm water drainage?
X
f.
Solid waste disposal?
X
50. HUMAN HEALTH. Will the proposal
result in:
a. Creation of any health hazard or
potential health hazard (excluding
mental health)? X
b. Exposure of people to potential
health hazards? X
51. AESTHETICS. Will the proposal
result in the obstruction of any
scenic vista or view open to the
public, or will the proposal result
in the creation of an aesthetically
offensive site open to public view? X
(X)
Page 26
YES MAYBE NO
52. RECREATION. Will the proposal result
in an impact upon the quality or
quantity of existing recreational
opportunities?
X
53. CULTURAL RESOURCES.
a. Will the proposal result in the
alteration of or the destruction
of a prehistoric or historic
archaeological site?
X
b. Will the proposal result in
adverse physical or aesthetic
effects to a prehistoric or
historic building, structure,
or object?
X
c. Does the proposal have the
potential to cause a physical
change which would affect
unique ethnic cultural values?
X
d. Will the proposal restrict
existing religious or sacred
uses within the potential impact
area?
X
54. MANDATORY FINDINGS OF,SIGNIFICANCE.
a. Does the project have the poten-
tial to degrade the quality of
the environment, substantially
reduce the habitat of a fish or
wildlife species, cause a fish
or wildlife population to drop
below self-sustaining levels,
threaten to eliminate a plant or
animal community, reduce the
number or restrict the range of a
rare or endangered plant or
animal or eliminate important
examples of the major periods of
California history or prehistory?
b. Does the project have the potential
to achieve short-term, to the dis-
advantage of long-term, environmental
goals? (A short-term impact on the
environment is one which occurs in
a relatively brief, definitive period
of time while long-term impacts will
endure well into the future.)_
c. Does the project have impacts which
are individually limited, but cumu-
latively considerable? (A project
may affect two or more separate
resources where the impact on each
resource is relatively small, but
where the effect of the total of
those impacts on the environment is
significant.) X
Page 27
YES MAYBE NO
d. Does the project have environmental
effects which will cause substantial
adverse effect on human beings, either
directly or indirectly? X
CERTIFICATION
I hereby certify that the statements furnished above and in the
attached exhibits present the data and information required for
this initial evaluation to the best of my ability, and that the
facts, statements, and information presented are true and correct
to the best of my knowledge and belief.
Date Applica 's signatur
(X)
Page 28
CITY OF CARSON
COMMUNITY DEVELOPMENT DEPARTMENT
LEAD AGENCY
ANALYSIS AND DETERMINATION
OF THE
ENVIRONMENTAL INFORMATION AND CHECKLIST FORM
(INITIAL STUDY)
ANALYSIS
DETERMINATION
On the basis of this initial evaluation:
X I find the proposed project COULD NOT have a
significant effect on the environment, and a
NEGATIVE DECLARATION will be prepared.
I find that although the proposed project could have
a significant effect on the environment, there will
not be a significant effect in this case because the
mitigation measures described on the attached sheet
have been added to the project. A NEGATIVE DECLARA-
TION WILL BE PREPARED.
I find the proposed project MAY have a significant
effect on the environment, and an ENVIRONMENTAL
IMPACT REPORT is requited.
Date Project Planner
(X)
Environmental Sections
32. At the north side there is a large one story Commercial Development with
stores, restaurants and parking. At the south there is a 10-10" storm drain
easement and a large Senior Citizen Project (100 units).
33. At the west side there are several R-1 lots with two story houses in good
conditions, and at the east side is Main St. and across the street there is more
commercial parking area and 218th Street. All the area is flat, with stable
soil, with no plants or animal of significance, and with no cultural or historical
value. The site is currently developed with 45 residential units at a density
of 69 units per acre.
613.
CITY of CARSON
PUBLIC NOTICE
NEGATIVE DECLARATION
The City of Carson hereby gives notice that pursuant to the .authority and criteria contained in
the California Environmental Quality Act (CEQA) and the CEQA Guidelines of the City of
Carson, the Community Development Department has analyzed the request for:
El. Camino Village Carson Redevelopment Agency suhsidi7pd cpnior housing
(project title and permit number)
proposed to be located at: , 21 731 - 2173S S- Main Street
The proposal is briefly described as follows:
The Carson Redevelopment Agency maysubsidize a maximum of 22 low
income units for 6 years at no more than $295 per unit per month. At
least 5096 of the units must be made available and occupied by Section
8 eligible candidates. The projects consists of 45 senior housing units.
After reviewing the Initial Study and any applicable mitigating measures for the project, the
Community Development Department has determined that this project will not have a
significant effect on the environment. Accordingly, a Negative Declaration has been prepared.
A Public Hearing will be held by the: Redevelopment Agency to consider this proposed
Negative Declaration on : November 2 , 19 93 , at fi•nn a M
in the Council Chambers, City Hall, 701 E. Carson Street, Carson, California 90745. Public
comments will be received by the City prior to final approval of the Negative Declaration and
action on the project, through October 28 , 19_,U.
A copy of all relevant material, including the project specifications, Initial Study and the
Negative Declaration, is on file in the offices of the Community Development Department,
City Hall, 701 E. Carson Street, Carson California 90745. Phone No. (310) 830-7600, x330.
Date: / e, - h - q 3
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EXHIBIT NO. 4
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INTERNAL MEMORANDUM �Ml,
CITY OF CARSON
TO: Mayor and City Council FROM: Patrick Brow
Community Development Director
VOJC1-
Senior Housing Subcommittee Minutes, August 26, 1993 DATE September 1, 1993
Following are summary minutes from the Senior Housing Subcommittee Meeting held on
Thursday, August 26, 1993 at 10:00 a.m. in the City Council Executive Conference Room.
The meeting was called to order at 10:03 a.m.
The first item discussed on the agenda was the Request for Agency Assistance from Michael
and Bertha Padilla for the Senior Housing Project located at 21735 S. Main Street, Carson,
California.
Present were the following: Peter Fajardo, Subcommittee Member
Kay A. Calas, Subcommittee Member
Patrick Brown, Community Development Director
Adolfo Reyes, Redevelopment Project Manager
Sheri Repp, Senior Planner
Felise Acosta, Rosenow Spevacek Group, Inc.
John Yonai, Rosenow Spevacek Group, Inc.
Michael Padilla, El Camino Realty
Bertha Padilla, El Camino Realty
Daniel Cartagena, Cartagena and Associates
Willmina Randolph, R & W Financial
Kelly Guzman, Redevelopment Stenographer Clerk
Community Development Director Brown introduced Felise Acosta and John Yonai,
representatives from Rosenow Spevacek Group, Inc. (RSG), the City's redevelopment
consultant.
Ms. Acosta reported that she reviewed the Request for Assistance from Michael and Bertha
Padilla for the Senior Housing Complex constructed at 21735 S. Main Street, Carson,
California. She briefly described the project to the subcommittee members as follows:
• Developer has constructed a 45 unit, three story wood and stucco structure building at the
referenced location.
• The gross size of the lot is 31,330 square feet.
• Project has been dedicated as a senior citizen housing development.
• The gross building square footage is 29,444 square feet with the approximate residential
living area equating to 26,180 square feet. The remaining 3,264 square feet was dedicated
for common area facilities such as recreational room, game room and sun decks.
EXHIBIT NO. 5
r`
1
Senior Housing Subcommittee Minutes
August 26, 1993
Page 2 of 6
• The project contains 36 one bedroom, one bath units, with the remaining nine classified as
efficiency units, which are slightly smaller than the standard one bedroom one bath unit.
Ms. Acosta stated that she also reviewed the appraisal, project pro forma and the
Developer's request for Agency subsidy/assistance. She offered the following observations
and opinions:
1. The appraisal of the property, completed in March of 1992, indicates the project may be
worth $3,025,000 with the land component being valued at approximately $1,350,000.
Due to the age of the appraisal and market conditions, she indicated that in her opinion, the
land was overvalued. She further stated that the approximate land value is more likely to
be $12 - $15 per square foot. This would equal a land value of $375,960 - $469,950. At
$1,350,000 the land would carry a value of $43.10 a square foot.
2. The project pro forma appeared to be reasonable and quite accurate. She further stated
that significant cost savings were achieved by the Developer due to his personal
involvement as the Developer and Contractor for the project.
3. Based upon the information provided, RSG ran their own pro forma model that indicated
the project loses a total of $147,840 over the first 6 years after which the project maintains
a positive cash flow. Return to the Developer is good as long as the units can be rented at
market rates and vacancy is not a problem.
Recommendations
Ms. Acosta reported that overall the project is a good one. She suggested that the
Subcommittee move forward and negotiate an appropriate Owner Participation Agreement
(OPA). She further recommended a subsidy amount equitable to all parties as follows:
1. All 22 low income units must be reserved and remain affordable for a 30 year timeframe.
2. Developer should receive for the first six years a subsidy of not more that $295 per unit on
each of the 22 units occupied by qualified low income tenants who are not otherwise
receiving a Section 8 subsidy. This recommendation could amount to a maximum subsidy
of $77,880 per year or $467,280 over a six year period. However, the subsidy amount
could also be less if more of the units are occupied by tenants with Section 8 certificates.
3. No subsidy would be provided until permanent financing is secured.
4. If the property is transferred because of default, all subsidies would end.
5. Deed restrictions would be required per Redevelopment Law.
Ms. Acosta clarified that if the City were to provide an average subsidy of $295 per unit on 22
units, the tenants would pay an average of $388 per month.
Senior Housing Subcommittee Minutes
August 26, 1993
Page 3 of 6
a
I
i
W
7
John Yonai, representing RSG, stated that the $388 per month rents would increase by 4% per
year, therefore, tenants could pay up to $430 per month at the end of the six year period if the
income of the qualified low income individual also raises at the same rate.
Daniel Cartagena reported that the Section 8 qualifying process takes approximately 3 - 5
years.
Ms. Acosta explained that the Developer will be required to maintain and provide the Agency
with monitoring reports and proper documentation including income verification records
related to his tenants, should the Agency provide assistance. She stated that the project would
need a capable manager to provide the necessary information.
Subcommittee Member Fajardo asked the status of financing for the project.
Mr. Padilla replied that proof of Agency subsidization for the 22 units must be provided to the
bank before the loan can be approved.
Redevelopment Project Manager Reyes questioned the financial institution being used to secure
financing.
Bertha Padilla replied that Southern California Savings had been contacted to provide financing
for the project.
Subcommittee Member Fajardo referred to Recommendation No, 2 which states that the
subsidy be provided for six years. He asked how the six year period was formulated.
Ms. Acosta replied that the project has a negative cash flow for the first six years and only
after the six year period does the project achieve a positive cash flow.
Subcommittee Member Fajardo asked that an additional provision be included in the agreement
that the Developer must provide priority housing for Carson residents.
Subcommittee Member Calas made a motion to accept the recommendations of the
redevelopment consultant with an additional provision that priority housing will be provided to
individuals who have resided in Carson at least two years prior to submitting the application
for senior housing. The motion was seconded and carried by Subcommittee Member Fajardo.
Subcommittee Member Fajardo questioned the number of tenants currently living in the
complex.
Mr. Padilla responded that 14 units are currently occupied and four more will be moving in by
September 1, 1993.
Senior Housing Subcommittee Minutes
August 26, 1993
Page 4 of 6
Community Development Director Brown reported that he will direct the Agency Attorney's
Office to prepare an Owner Participation Agreement (OPA) for submittal on the Agency
agenda for final approval/consideration during the first meeting in October.
The Subcommittee Members agreed to meet once more regarding this item on September 23,
1993 at 10:00 a.m. in the City Council Executive Conference Room.
The second item on the agenda was the Request for Agency Assistance from Mario Mera &
Associates, Inc. for Carson Terraces, a proposed 60 unit Senior Citizen Apartment Complex at
632 East 219th Street, Carson, California.
Present were the following: Peter Fajardo, Senior Housing Subcommmittee Member
Kay A. Calas, Senior Housing Subcommittee Member
Patrick Brown, Community Development Director
Adolfo Reyes, Redevelopment Project Manager
Sheri Repp, Senior Planner
Felise Acosta, Rosenow Spevacek Group, Inc.
John Yonai, Rosenow Spevacek Group, Inc.
Mario E. Mera, President of Mario Mera & Associates, Inc.
L. Del Castillo, V.P. of Mario Mera & Associates, Inc.
Gil S. Magno, Counsel
Abe Caparros, Architect
Renato D. Cagnaid, General Contractor
Ed Pascual, Investor
Arlene Staana, Investor
Dr. Rey Landero, Investor
Jesus Alex Cainglet, American International Bank
Kelly Guzman, Redevelopment Stenographer Clerk
Abe Capparos, Architect for the project introduced himself to the membership. He briefly
described Carson Terraces as a proposed three-story 60 unit Senior Citizen Apartment
Complex to be constructed at 632 East 219th Street, Carson, California.
Mr. Capparos further described the technical design of the project and reviewed floor plan and
height elevation maps with the Subcommittee Members. He provided the following additional
information on the project:
• Each unit will be approximately 532 square feet in size and will have its own
terrace/balcony.
• Amenities include: two elevators, recreation room, meeting room, all units are convertible
to handicapped units, excessive open spaces for recreational purposes and gardening,
laundry facilities, automatic fire sprinklers and security is provided.
i
s
,
V
IOQTIQy.
niTV AC /' AA ^n..
�0� Mayor and City Council Patrick Bro
`;n�k
FROM:
Community Development Director
SUBJECT: DATE:
Senior Housing Subcommittee Minutes - October 28, 1993 November 3, 1993
On Thursday, October 28, 1993, the Senior Housing Subcommittee met in the Community
Development Conference Room of Carson City Hall at 2:00 p.m.
The meeting was called to order at 2:20 p.m.
The first item on the agenda was the Request for Agency Assistance from Michael and Bertha
Padilla for the El Camino Senior Housing Complex at 21735 S. Main Street, Carson,
California.
Present were the following: Mayor Pro -Tem Peter Fajardo
Councilmember Kay A. Calas
Patrick Brown, Community Development Director
Adolfo Reyes, Redevelopment Project Manager
Felise Acosta, RSG, Inc. (Redevelopment Consultant)
Daniel Cartagena, Cartagena & Associates
Michael Padilla, El Camino Realty
Bertha Padilla, El Camino Realty
Kelly J. Guzman, Redevelopment Stenographer Clerk
Redevelopment Project Manager Reyes reported that at the Senior Housing Subcommittee
Meeting held on August 26, 1993, Mr. Padilla had indicated that he was in the process of
securing a loan from American Savings Bank. He asked about the status of financing for the
project.
Daniel Cartagena, representing Cartagena & Associates, questioned the status of the Owner
Participation Agreement (OPA) for the project. He clarified that at the August 26, 1993
Senior Housing Subcommittee Meeting, §taff was directed to prepare an OPA for submittal on
the Redevelopment Agency agenda during October, 1993. He expressed. concerns that he had
not seen a copy of the OPA, nor was it submitted on the agenda during October for
consideration and/or approval.
Subcommittee Member Fajardo asked the status of the OPA.
Redevelopment Project Manager Reyes replied that although a draft OPA has been prepared by
the Agency Attorney's Office, permanent financing needs to be addressed within the
agreement. He further stated that since permanent financing has not been secured, there are
many blanks existing within the document.
EXHIBrr NO. 6
Senior Housing Subcommittee Meeting
October 28, 1993
Page 2 of 5
Community Development Director Brown referred to the August 26, 1993 Senior Housing
Subcommittee Minutes which indicate that Agency assistance would not be provided until
financing for the project is secured.
Mr. Cartagena explained that out of common courtesy, staff should provide him with a copy of
the draft OPA for his review and/or comment before it is submitted on the agenda for
consideration and/or approval. He further stated that if he could present a copy of the draft
OPA to the bank it would help him to secure financing.
Michael Padilla, representing El Camino Realty and the Developer for the project, reported
that although Community Development Director Brown prepared a letter for the bank
indicating that the Subcommittee was in support of the project, it was not sufficient to secure
permanent financing.
Community Development Director Brown reported. that a draft OPA could be provided to Mr.
Cartagena the following week for his review and comments. He asked Redevelopment Project
Manager Reyes if the OPA would be completed in time for submittal on the November 16,
1993 Agency agenda for consideration and/or approval by the Agency Members.
Redevelopment Project Manager Reyes replied that the OPA would be ready for the November
16, 1993 Redevelopment Agency Meeting.
Mr. Cartagena then asked about the Negative Declaration Notice that was posted on Mr.
Padilla's property.
Redevelopment Project Manager Reyes reported that when financing is proposed for a project,
CEQA requires an Initial Study/Negative Declaration Notice which is posted at the affected
property location.
Mr. Cartagena replied that he was not aware this was a requirement and expressed
disappointment that he was not contacted regarding this procedure.
Mr. Padilla stated he was not satisfied with the brief description ofhis project on the Negative
Declaration Notice. He reported that on the Notice it reported that at least 50% of his tenants
must be Section 8 occupants. He clarified that there is no possible way for him to comply
with the requirement. He asked that the following language be added to the Negative
Declaration Notice as follows:
"50% of his tenants must be Section 8 occupants provided that the Housing Authority can
refer sufficient occupants with Section 8 certificates."
i
Senior Housing Subcommittee Minutes
October 28, 1993
Page 3 of 5
Community Development Director Brown reported that he would follow-up on the Negative
Declaration posting requirements. He also indicated re -posting of the Notice may be necessary
if the new language is added.
The second item on the agenda was a Request for Agency Assistance from Mario Mera &
Associates for Carson Terraces Senior Citizen Apartment Complex to be located at 632 E.
Realty Street, Carson, California.
Present were the following: Mayor Pro -Tem Peter Fajardo
Councilmember Kay A. Calas
Patrick Brown, Community Development Director
Adolfo Reyes, Redevelopment Project Manager
Felise Acosta, RSG, Inc. (Redevelopment Consultant)
Mario Mera, Mario Mera & Associates
L. Del Castillo, Mario Mera & Associates
Abe Caparros, Mario Mera & Associates
Kelly J. Guzman, Redevelopment Stenographer Clerk
Redevelopment Project Manager Reyes reported that a copy of the proposal from Mario Mera
& Associates was provided to Felise Acosta of Rosenow Spevacek Group, Inc. (RSG), the
City's redevelopment consultant, for analysis.
Community Development Director Brown provided a status report on the Planning
Commission's action on the proposed senior citizen apartment complex. He clarified that the
Commission continued the matter indefinitely until permanent financing and/or Agency
Assistance for the project has been approved.
Redevelopment Stenographer Clerk Guzman distributed a copy of the analysis of the proposal
from Mario Mera & Associates, prepared by RSG, Inc.
Felise Acosta summarized her analysis as follows:
Amount Requested from the Redevelopment AEecy -
1. Construction and permanent loan financing from the Agency in the amount of $3.4 million
at an annual interest rate of 3.25 % and 3 % respectively.
2. Annual rent subsidy payments for 29 units at $295 per month for 30 years ($3,079,800).
M
AFFORDABLE HOUSING AGREEMENT
By and Between
THE CARSON REDEVELOPMENT AGENCY
Agency,
and
Developer.
EXHIBIT NO. 7
TABLE OF CONTENTS
Page
I. (§
100)
SUBJECT OF AGREEMENT . . . . . . .1
A.
[§
101]
Definitions . . . . . . , . ..
1
B.
[§
102]
Purpose of the Agreement . . . . . . .
, 3
C.
[§
1031
The Site* , , , , , ,
3
D.
[§
104]
Parties tothe Agreement . . . . . . .
. 3
1.
[§
1051 The Agenc . . . . . . . . . . .
3
2.
[§
106] The Developer . . . . . . . . . .
. 4
E.
[§
107)
Prohibition Against Transfer . . . . .
. 4
II. (§
200)
FINANCING . . . . . . . . . . ..
. 5
A.
[§
201]
Agency Assistance . . . . . . . . . .
5
B.
[§
202]
Terms and Conditions of Agency
Assistance ., . . , .
5
C.
[§
203]
Recordation ofDocuments . . . . . . .
. 6
III. [§
300) USE OF THE SITE . . . . . . . . . . . .-
. 7
A.
[§
301)
Uses , , , , , .
7
B.
[§
302]
Obligation to Refrain from Discrimina-•
Discrimina-
tion . . . . . . .
8
C.
[§
303]
Form of Nondiscrimination and
Nonsegregation Clauses8
D.
[§
304]
Effect and Duration of Covenants9
E.
[§
305]
Effect of Violation of the Terms and.
Provisions of this Agreement . . . . .
, 9
IV. [§
400]
DEFAULTS, REMEDIES AND TERMINATION . . . . .
. 9
A.
[§
401]
Defaults - General . . . . . . . .
9
B.
[§
402]
Legal Actions. . . . .
. 10
1.
[§
403) Institution of Legal Actions . . .
. 10
2.
[§
404) Applicable Law . . . . . .
10
3.
[§
4051 Acceptance of Service of Process
10
C.
[§
4061
Rights and Remedies are Cumulative
10
D.
[§
407]
Damages; Specific Performance . . .
. 11
E.
[§
408]
Remedies and Rights of Termination . .
. it
1.
[§
409] Termination by Developer . . . . . .
11
2.
[§
410] Termination by Agency . . . . . . .
11
V. [§ 500]
GENERAL
PROVISIONS . . . . . ..
12
A.
[§
501]
Notices, Demands, and Communications
Between the Parties . . . . . . .• . .
12
B.
[§
502)
Conflict of Interests . . . , ,
12
C.
[§
503]
Warranty Against Payment of
Consideration for Agreement12
D.
[§
504]
Nonliability of Agency officials and*
Employees . . . . . . . . . .
12
E.
[§
505]
Enforced Delay [Force Majeurej•
Extension of Time of Performance
13
F.
[§
506]
Inspection of Books and Records
13
G.
[§
507)
Right of Access . . . . . . . . . . . . .
13
931110 C1371-01009
lsj 1091469.20
— i —
Page
H.
[§
508]
Approvals . . . . . . . . . . . . . ..
13
I.
[§
5091
Attorneys' Fees . . . . . . . . . . . .
• 14
J.
[§
510]
Calendar Days . . . . . . . . .
14
K.
[§
511]
Schedule of Performance .
14
L.
[§
512]
Indemnification During Construction
Bodily Iniury Property Damage and
Worker's Compensation Insurance . . .
14
M.
[§
513]
Local, State, and Federal Laws .
. 15
N.
[S
514]
Taxes, Assessments Encumbrances and
Liens . . . . . . . . . . . . . . . . .
. 15
VI. [§ 600]
ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS . .
. 15
ATTACHMENT
NO. 1
- SITE MAP
ATTACHMENT
NO. 2
- LEGAL DESCRIPTION
ATTACHMENT
NO. 3
- AGREEMENT CONTAINING COVENANTS
931110 C1371-010091aj 1091469,2 0 — 11 —
AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT is entered into by and between the CARSON
REDEVELOPMENT AGENCY, a public body, corporate and politic (the
"Agency"), and (the
"Developer"), as of ,.-1993. The Agency and the
Developer covenant and agree as follows:
I. [§ 100] SUBJECT OF AGREEMENT
A. [§ 101] Definitions
For purposes of this Agreement, the following capitalized
terms shall have the following meanings:
"Affordable Rent" shall be as defined in Health and Safety
Code Section 50053(b)(2). For those lower income households with
gross incomes that exceed 60 percent of the area median income
adjusted for family size, affordable rent shall be a rent that
does not exceed 30 percent of the gross income of the household.
"Agency" shall have the meaning set forth in Section 105.
"Agency Assistance" shall refer to the Agency financial
assistance described in Section 201 of this Agreement.
"Agency Units" shall refer to the twenty-two units to be
rented at an Affordable Rent, including a reasonable utility
allowance, to Qualified Tenants.
"Agreement Containing Covenants" shall mean the Agreement
Containing Covenants Affecting Real Property attached hereto as
Attachment No. 3 and incorporated herein by this reference.
"City" shall mean the City of Carson, State of California.
"Conditions" shall mean, with respect to any parcel of
property, the condition of the soil, geology, the presence of
known or unknown faults or defects, or Hazardous Substances, the
suitability of the property for its intended uses, or the
condition of any related public improvements.
"Development" shall mean the operation on the Site of a
rental housing project for elderly households.
"Elderly household" shall mean households consisting solely
of individuals fifty-five (55) years of age or older, or a single
person who is fifty-five (55) years of age or older.
"Force Maieure" shall have the meaning described in Section
505 hereof.
931110 C1371-01009 1nj 1091469.2 0 — 1 —
"Hazardous Substances" shall include, without limitation,
any flammable explosives, radioactive materials, asbestos,
polychlorinated biphenyls, chemicals known to cause cancer or
reproductive toxicity, substances described in Civil Code Section
2929.5(e)(2), as it now exists or as subsequently amended,
pollutants, contaminants, hazardous wastes, toxic substances or
related materials.
"Improvements" shall mean all of the buildings, structures,
facilities and spaces located on the Site.
"Lower-income" shall have the same meaning as "lower income
households", as defined by Health and Safety Code Section 50079.5
"Maximum Rent", including the cost of utilities except
telephone service, shall be $683 per month per unit, escalated at
a rate of four percent $4% per year, as set forth in Section
301(3) of this Agreement.
"Proiect Area" shall mean the area of the Carson Redevelop-
ment Project Area No. 1, as more particularly described in the
Redevelopment Plan.
"Qualified Tenant" shall mean a lower income elderly
household, that is not receiving assistance pursuant to Section 8
of the United States Housing Act of 1937.
"Redevelopment Plan" shall mean the Redevelopment Plan for
the Carson Redevelopment Project Area No. 1, approved and adopted
by the City Council of the City by Ordinance No. 71-205 on
December 20, 1971, and most recently amended on July 9, 1984 by
Ordinance No. 84-696.
"Redevelopment Pro-lect" shall mean the Carson Redevelopment
Project Area No. 1.
wrr, "Site" shall have the meaning described in Section 103.
"Site Map" shall refer specifically to Attachment No. 1
hereof.
B. [§ 102] Purpose of the Agreement
(1) The Developer has recently completed construction of a
forty-five unit housing project on the Site, consisting of one -
bedroom units. The purpose of this Agreement is to effectuate
the Redevelopment Plan for the Carson Redevelopment Project Area
No. 1 by providing a subsidy to the Developer to operate on the
Site forty-five units for elderly households, at least twenty-two
of which will be restricted to lower income elderly households,
at affordable rents. The subsidy is contingent upon the
Developer obtaining permanent financing. The operation of the
Site pursuant to this Agreement, and the fulfillment generally of
the Agreement, are in the vital and best interest of the City of
931110 C1371-01009 lej 1091469.2 0 — 2 —
2�.
Carson and the health, safety, morals, and welfare of its
residents, and in accord with the public purposes and provisions
of the applicable federal, state and local laws and requirements
under which the development has been undertaken and is being
assisted. This Agreement is in furtherance of the provisions of
the Redevelopment Plan for the Project.
(2) In approving this Agreement, the Agency and City
Council have found that the Agency Assistance is of benefit to
the Project Area, as required by Health and Safety Code Section
33334.2(g).
C. [S 103] The Site
The "Site" is that certain property shown on the "Site
Map" attached to this Agreement as Attachment No. 1, and legally
described in Attachment No. 2 hereto, which attachments are
incorporated herein by this reference. The Site is located at
21735 S. Main Street in the City of Carson, outside the Project
Area.
D. [S 104] Parties to the Agreement
1. [S 1051 The Agency
(a) The Agency is a public body, corporate and
politic, exercising governmental functions and powers, and
organized and existing under Chapter 2 of the Community
Redevelopment Law of the State of California. The principal
office of the Agency is located at 701 E. Carson Street, Carson,
California 90745.
(b) "Agency" as used in this Agreement includes
the Carson Redevelopment Agency and any assignee of or successor
to its rights, powers and responsibilities.
2. [S 106] The Developer
(a) The Developer is
California The principal office �of the
Developer for purposes of this Agreement is
, Carson, California,
(b) "Developer" as used in this Agreement includes
, and any assignee of or successor to its
rights, powers and responsibilities.
E. [S 107] Prohibition Aqainst Transfer
(1) The Developer represents and agrees that its
undertakings pursuant to this Agreement are, and will be used,
for the purpose of redevelopment of the Site and not for
speculation in land holding. The Developer further recognizes
that, in view of
931110 C1371-01009 Isj 1091469.2 0 — 3
(a) the importance of the redevelopment of
the Site to the general welfare of the
community;
(b) the public aids that have been made
available by law and by the Agency and
the City for the purpose of making such
redevelopment possible; and
(c) the fact that a change in ownership or
control of the Developer or of a
substantial part thereof, or any other
act or transaction involving or
resulting in a significant change in
ownership or control of the Developer or
the degree thereof, is for practical
purposes a transfer or disposition of
the property then owned by the
Developer;
the qualifications and identity of the Developer and its
principals are of particular concern to the City and the Agency.
It is because of those qualifications and identity that the
Agency has entered into this Agreement with the Developer. No
voluntary or involuntary successor in interest of Developer shall
acquire any rights or powers under this Agreement except as
expressly set forth herein.
(2) The Developer shall not, except as permitted by
this Agreement, assign or attempt to assign this Agreement or any
right herein, nor make any total or partial sub -lease, sale,
transfer, conveyance or assignment of the whole or any part of
the Site or the improvements thereon, without prior written
approval of the Agency. This prohibition shall not be deemed to
prevent the granting of easements or permits to facilitate the
development of the Site or to prohibit or restrict the renting
for occupancy of residential units to be constructed on the Site,
nor shall it prohibit granting any security interests permitted
in this Agreement for financing the development of the Site.
(3) Any such proposed transferee shall have the
qualifications and financial responsibility necessary and
adequate as may be reasonably determined by the Agency, to
fulfill the obligations undertaken in this Agreement by the
Developer. Any such proposed transferee, by instrument in
writing satisfactory to the Agency and in form recordable among
the land records, for itself and its successors and assigns, and
for the benefit of the Agency shall expressly assume all of the
obligations of the Developer under this Agreement and agree to be
subject to all conditions and restrictions to which the Developer
is subject. There shall be submitted to the Agency for review
all instruments and other legal documents proposed to effect any
such transfer; and if approved by the Agency its approval shall
be indicated to the Developer in writing.
931110 C1371 -010091,j 1091469.2 0 - 4 -
(4) In the absence of specific written agreement by
the Agency, no unauthorized sale, sub -lease, transfer, conveyance
or assignment of the Site, or approval thereof by the Agency,
shall be deemed to relieve the Developer or any other party from
any obligations under this Agreement.
II. [§ 200) FINANCING
A. (§ 201) Agency Assistance
The Agency hereby agrees to pay the Developer rental
assistance payments for each Qualifying Tenant, subject to the
terms and conditions set forth in Section 202. Assistance
payments shall be made by the Agency monthly, in arrears, based
upon a detailed tenant rent and income report, in a form
acceptable to the Agency, listing units rented, Qualifying
Tenant's incomes, and rents for the previous month. Adjustments
shall be made in subsequent assistance payments to account for
over or underpayments resulting from tenant changes occurring
during the previous month. Assistance payments shall be made
within ten working days of receipt of the report from the
Developer.
B. [§ 202) Terms and Conditions of Agency Assistance
1. Terms of Agency Assistance
The Agency Assistance will be paid for six years from the
date of this Agreement, at a rate of not more than $295 per month
per unit occupied by a Qualified Tenant, up to a maximum of 22
units. The precise amount of the Agency Assistance per unit per
month will be the amount needed to pay the difference between the
Affordable Rent for the Qualified Tenant, and the Maximum Rent.
2. Conditions of Agency Assistance
The Agency agrees to disburse the Agency Assistance in
accordance with standard Agency procedures and the provisions of
this Agreement, upon the satisfaction of the following
conditions:
(a) The Developer delivers to the Agency evidence
satisfactory to.the Agency Executive Director that permanent
financing has been secured;
(b) The Developer executes, notarizes and
delivers to the Agency the Agreement Containing Covenants;
(c) A title insurance company acceptable to the
Agency shall have issued to the Agency a preliminary title
report, showing the Agreement Containing Covenants recorded no
lower then second position, subordinate only to a deed of trust
securing permanent financing for the Site and the Improvements;
931110 C1371-010091aj 1091469.2 0 — 5 —
31.�
(d) Developer has submitted and the Agency has
approved a preliminary toxics assessment for the Site, acceptable
to the Agency, showing that the Site is free of any Hazardous
Substances;
(e) The Developer provides, maintains and
delivers to the Agency a certificate of insurance or copy of the
insurance policy as set forth in Section 511 hereof, satisfactory
to the Agency, with loss payable to the Agency in addition to the
Developer;
(f) The Developer is not otherwise in default of
its obligations to the Agency.
C. [§ 203] Recordation of Documents
The Agency shall be authorized to record the Agreement
Containing Covenants in second position on title to Site,
subordinate only to a deed of trust securing permanent financing
for the Site and Improvements.
III. [§ 300] USE OF THE SITE
A. [§ 301] Uses
The Developer covenants and agrees for itself, its
successors, its assigns and every successor in interest to the
Site or any part thereof, that the Developer, such successors and
such assigns shall use the Site as follows:
(1) Developer shall use the Site exclusively for those
uses specified in this Agreement and the Agreement Containing
Covenants.
(2) The Developer covenants and agrees that the Site
shall be used exclusively as an apartment building with forty-
four residential dwelling units occupied by Elderly households,
and one unit occupied by an on-site manager who need not be
Elderly. Twenty-two of the units (the "Agency Units") shall be
rented at an Affordable Rent, including a reasonable utility
allowance, to Qualified Tenants.
(3) The Maximum Rent to be charged for each of the
Agency Units shall be $683 per month per unit, which includes the
cost of all utilities except telephone. The Maximum Rent may be
increased by a maximum of four percent (4%) per year, commencing
November 1, 1994 and each November 1 thereafter.
(4) Developer shall obtain and maintain or cause to be
obtained and maintained on file reasonable verification in
written form as to the income of each Low and Moderate Income
931110 C1371-01009 Isj 1091469,2 0 — 6 —
household, and as to the age of each head of household, residing
in the Development.
(5) Priority in filling vacancies will be provided to
individuals who have resided in Carson at least two years prior
to submitting the application for senior housing.
(6) Developer shall submit an annual report (the
"Annual Report") to the Agency, in a form acceptable to the
Agency Executive Director, which contains the information
required by Health and Safety Code Section 33418. The Annual
Report shall include for each rental unit the rental rate and the
income and family size of the occupants. The income information
shall be supplied by the tenant in a certified statement on a
form provided by the Agency. The age of the head of household
shall be included in the Annual Report. The Developer shall
submit the Annual Report prior to February 1 of each year.
(7) Developer shall manage or cause the Development to
be managed in a prudent and businesslike manner, consistent with
similar housing projects in the State of California and the
purposes of this Agreement.
(8) The Developer shall maintain the Development, keep
the Site and the improvements thereon free from any accumulation
of debris, waste materials, or graffiti and maintain the
landscaping in a healthy and attractive condition.
B. [§ 302] Obligation to Refrain from Discrimination
There shall be no discrimination against or segregation of
any person, or group of persons, on account of race, color,
creed, religion, national origin, ancestry, sex, or marital
status in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the Site, or any part thereof, nor shall
the Developer himself or any person claiming under or through him
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the Site.
C. [§ 303] Form of Nondiscrimination and Nonsegregation
Clauses
The Developer shall refrain from restricting the rental,
sale or lease of the Site on the basis of race, color, creed,
religion, ancestry, national origin sex, sexual orientation or
marital status of any person. All such deeds, leases or
contracts shall contain or be subject to substantially the
following nondiscrimination or nonsegregation clauses:
1. In deeds: "The grantee herein covenants by and
for himself, his heirs, executors, administrators and assigns,
and all persons claiming under or through him, that there shall
931110 C1371-010091aj 1091469.2 0 — 7 —
I
X1-
.,
be no discrimination against or segregation of, any person or
group of persons on account of race, color, creed, religion,
national origin, ancestry, sex, or marital status in the sale,
lease, sublease, transfer, use, occupancy, tenure or enjoyment of
the land herein conveyed, nor shall the grantee himself or any
person claiming under or through him, establish or permit any
such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of
tenants, lessees, subtenants, sublessees or vendees in the land
herein conveyed. The foregoing covenants shall run with the
land."
2. In leases: "The lessee herein covenants by and for
himself, his heirs, executors, administrators and assigns, and
all persons claiming under or through him, and this lease is made
and accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation
of any person or group of persons, on account of race, color,
creed, religion, national origin, ancestry, sex, or marital
status in the leasing, subleasing, transferring, use, occupancy,
tenure or enjoyment of the land herein leased nor shall the
lessee himself, or any person claiming under or through him,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy, of tenants, lessees,
sublessees, subtenants, or vendees in the land herein leased."
3. In contracts: "There shall be no discrimination
against or segregation of any person, or group of persons on
account of race, color, creed, religion, national origin,
ancestry, sex, or marital status in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the land, nor
shall the transferee himself or any person claiming under or
through him, establish or permit any such practice or practices
of discrimination or segregation with reference to the lessees,
subtenants, sublessees or vendees of the land."
D. [§ 304) Effect and Duration of Covenants
The covenants set forth in Sections 301 through 303,
inclusive, shall be contained in the Agreement Containing
Covenants, which shall be executed by Developer and recorded
against fee title to the Site. The covenants established in this
Agreement shall, without regard to technical classification and
designation, be binding for the benefit and in favor of the
Agency, its successors and assigns, and the City. The covenants
contained in Section 301 shall remain in effect for the longest
feasible time, but not less than thirty (30) years from the date
of this Agreement. The covenants contained in Sections 302 and
303 shall remain in perpetuity.
931110 C1391-01009 tej 1091469.2 0 — 8 —
E. [S 305] Effect of Violation of the Terms and
Provisions of this Agreement
The Agency and the City are deemed beneficiaries of the
terms and provisions of this Agreement and the covenants herein,
both for and in their own right and for the purposes of
protecting the interests of the community and other parties,
public or private, for whose benefit this Agreement and the
covenants running with the land have been provided. The
Agreement and the covenants shall run in favor of the Agency.
The Agency 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 this Agreement and covenants are entitled.
IV. [§ 400] DEFAULTS, REMEDIES AND TERMINATION
A. [§ 401] Defaults - General
Subject to the extensions of time set forth in Section 505,
failure or delay by either party to perform any term or provision
of this Agreement or the Agency Note constitutes a default under
this Agreement.
The injured party shall give written notice of default to
the party in default, specifying the default complained of by the
injured party and the actions required to cure the default. Delay
in giving such notice shall not constitute a waiver of any
default nor shall it change the time of default.
No action may be taken against the defaulting party so long
as it endeavors to cure, correct or remedy the default with
reasonable diligence, provided such cure, correction or remedy is
completed within thirty (30) days from receipt from the injured
party of a written demand to cure.
Any failures or delays by either party in asserting any of
its rights and remedies as to any default shall not operate as a
waiver of any default or of any such rights or remedies. Delays
by either party in asserting any of its rights and remedies shall
not deprive either party of its right to institute and maintain
any actions or proceedings which it may deem necessary to
protect, assert, or enforce any such rights or remedies.
B. [§ 402] Legal Actions
1. [S 403] Institution of Legal Actions
In addition to any other rights or remedies, either party
may institute legal action to cure, correct, or remedy any
default to recover damages for any default, or to obtain any
other remedy consistent with the purpose of this Agreement. Such
931110 C1371-010091si 1091469.2 0 — 9 —
legal actions must be instituted in the Superior Court of the
County of Los Angeles, State of California, in any other
appropriate court in that County, or in the Federal District
Court for the Central District of California.
2. (S 404] Applicable Law
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
3. [§ 405] Acceptance of Service of Process
In the event that any legal action is commenced by the
Developer against the Agency, service of process on the Agency
shall be made by personal service upon the Executive Director or
Chairman of the Agency, or in such other manner as may be
provided by law.
In the event that any legal action is commenced by the
Agency against the Developer, service of process on the Developer
shall be made by personal service upon Developer, or in such
manner as may be provided by law, and shall be valid whether made
within or without the State of California.
C. [§ 4061 Rights and Remedies are Cumulative
Except with respect to rights and remedies expressly
declared to be exclusive in this Agreement, the rights and
remedies of the parties are cumulative and the exercise by either
party of one or more of such rights or remedies shall not
preclude the exercise by it, at the same or different times, of
any other rights or remedies for the same default or any other
default by the other party.
D. [S 407] Damages; Specific Performance
If either party, defaults with regard to any of the
provisions of this Agreement, the nondefaulting party shall serve
written notice of such default upon the defaulting party. If the
default is not cured by the defaulting party within thirty (30)
days after service of the notice of default, or if the default is
not commenced to be cured within thirty (30) days after service
of the notice of default and is not cured promptly within a
reasonable period of time after commencement, the defaulting
party shall be liable to the other party for damages caused by
such default, and the nondefaulting party, at its option, may
also institute an action for specific performance of the terms of
this Agreement.
931110 C1371-01009 hj 1091469.2 0 - 10 -
E. [§ 408) Remedies and Rights of Termination
1. (§ 409) Termination by Developer
The Developer at its option may terminate this Agreement in
the event of the following:
(a) The Developer may terminate this Agreement
prior to disbursement of the Agency Assistance, if the Developer
is unable, despite its diligent best efforts, to satisfy the
conditions set forth in Section 202(2):
(b) Subject to Force Majeure, the Developer may
terminate this Agreement if the Agency is in default of any of
its obligations under this Agreement, and such default is not
cured within thirty (30) days after written notice by the
Developer.
2. [S 410] Termination by Agency
The Agency at its option may terminate this Agreement in the
event of the following:
(a) If the Developer assigns or attempts to
assign this Agreement, or any rights therein, or makes any total
or partial sale, sub -lease, transfer or conveyance of the whole
or any part of the Site or the improvements thereon or to be
developed thereon, except as permitted by this Agreement.
(b) Subject to Force Majeure, the Agency at its
option may terminate this Agreement if the Developer is in
default of any provision of this Agreement, and such default is
not cured within thirty (30) days after the date of written
demand therefor by the Agency.
(c) Subject to Force Majeure, the Agency may
terminate this Agreement if the Developer violates the terms of
this Agreement, or if the Agreement Containing Covenants is
terminated for any reason.
V. [§ 5001 GENERAL PROVISIONS
A. (S 501) Notices, Demands, and Communications Between
the Parties
Formal notices, demands, and communications between the
Agency and the Developer shall be sufficiently given if
dispatched by registered or certified mail, postage prepaid,
return receipt requested, to the principal offices of the Agency
and the Developer as designated in Section 105 and Section 106
hereof. Such written notices, demands, and communications may be
sent in the same manner to such other addresses as either party
may from time to time designate by mail as provided in this
Section 601.
931110 C1371-01009 lej 1091469.2 0 — 11 —
B. [S 502] Conflict of Interests
No member, official or employee of the Agency shall have any
personal interest, direct or indirect, in this Agreement nor
shall any such member, official or employee participate in any
decision relating to the Agreement which affects his or her
personal interests or the interests oV any corporation,,
partnership or association in which he or she is, directly or
indirectly, interested.
C. [§ 503) Warranty Against Payment of Consideration for
Agreement
The Developer warrants that it has not paid or given, and
will not pay or give, any third party any money or other
consideration for obtaining this Agreement.
D. [§ 504) Nonliability of Agency officials and
Employees
No member, official, or employee of the Agency shall be
personally liable to the Developer or any successor in interest,
in the event of any default or breach by the Agency or for any
amount which may become due to the Developer or to its successor,
or on any obligations under the terms of this Agreement.
E. [§ 505) Enforced Delay [Force Majeure): Extension of
Time of Performance
Notwithstanding specific provisions of this Agreement,
performance by either party hereunder shall not be deemed to be
in default where delays or defaults are due to war; insurrection;
strikes; lock -outs; riots; floods; earthquakes; fires;
casualties; acts of God; acts of the public enemy; epidemics;
quarantine restrictions; freight embargoes; lack of
transportation; governmental restrictions or priority; litigation
including litigation challenging the validity of this transaction
or any element thereof; unusually severe weather; inability to
secure necessary labor, materials or tools; delays of any
contractor, subcontractor, or suppliers; acts of the other party;
acts or failure to act of the City or any other public or
governmental agency or entity (other than that acts or failure to
act of the Agency or the City shall not excuse performance by the
Agency); or any other causes beyond the control or without the
fault of the party claiming an extension of time to perform. An
extension of time for any such cause shall be for the period of
the enforced delay and shall commence to run from the time of the
commencement of the cause, if notice by the party claiming such
extension is sent to the other party within thirty (30) days of
the commencement of the cause. Times of performance under this
Agreement may also be extended in writing by the Agency and the
Developer.
931110 C1371-01009 lej 1091469.2 0 — 12 —
63r.
F. [§ 506] Inspection of Books and Records
The Agency has the right at all reasonable times to inspect
the books and records of the Developer pertaining to the Site as
pertinent to the purposes of this Agreement.
G. [§ 507] Right of Access
The Agency, for itself and other public agencies, at their
sole risk and expense, reserves the right to enter the Site or
any part thereof at all reasonable times during ordinary business
hours for the purpose of construction, reconstruction,
maintenance, repair or service of any public improvements or
public facilities located on the Site, or monitoring Developer's
compliance with the terms and conditions of this Agreement. Any
such entry shall be made only after reasonable notice to
Developer.
H. [§ 508] Approvals
Approvals required of the Agency or the Developer shall not
be unreasonably withheld and approval or disapproval shall be
given within the time set forth in this Agreement, or, if no time
is given, within a reasonable time.
I. [$ 509] Attorneys' Fees
If either party hereto should retain legal counsel for the
purpose of enforcing any term or condition of this Agreement, the
prevailing party shall be entitled to recover costs and expenses,
including but not limited to reasonable attorneys' fees.
J. [§ 5101 Calendar Days
All references in this Agreement to a number of days in
which either party shall have to consent, approve or perform
shall mean calendar,days unless specifically stated to be
business days.
K. [S 511] Indemnification: Bodily- Injury and Property
Damage Insurance
(1) During the period that this Agreement is in
effect, the Developer agrees to, and shall, defend, indemnify and
hold the Agency and the City harmless from and against all
liability, loss, damage, costs, or expenses (including attorneys'
fees and court costs) arising from or as a result of the death of
any person or any accident, injury, loss and damage whatsoever
caused to any person or to the property of any person which shall
occur on or adjacent to the Site and which shall be directly or
indirectly caused by any acts done thereon or any errors or
omissions of the Developer and its agents, servants, employees
and contractors.
931110 C1371-01009 ]ej 1091469/0 — 13 —
(2) Prior to disbursement of the Agency Assistance,
the Developer shall furnish or shall cause to be furnished, to
the Agency, duplicate originals or appropriate certificates of
Comprehensive General Liability Insurance, insuring the Agency
and City against losses, costs, liabilities, claims, causes of
action and damages for bodily injury and property damage on the
Site in the amount of at least One Million Dollars ($1,000,000)
combined single limit coverage, naming the Agency as an
additional or co-insured. Such insurance shall include Blanket
Contractual Liability coverage. All such policies shall be
written to apply to all bodily injury, property damage, personal
injury and other covered loss, however occasioned, occurring
during the policy term, shall be endorsed to add the Agency and
the City as additional insureds, and to provide that such
coverage shall be primary and that any insurance maintained by
the Agency and/or the City shall be excess insurance only. Such
coverage shall be endorsed to waive the insurer's rights of
subrogation against the Agency and the City.
All insurance policies required by this Section shall
be nonassessable and shall contain language to the effect that
(a) the policies are primary and noncontributing with any in-
surance that may be carried by Agency or City, (b) the policies
cannot be canceled or materially changed except after thirty (30)
days written notice by the insurer to Agency, and (c) neither
Agency nor City shall be liable for any premiums or assessments.
All such insurance shall have deductibility limits reasonably
satisfactory to Agency and shall contain cross liability
endorsements.
L. [S 514) Taxes, Assessments, Encumbrances and Liens
The Developer shall pay when due all real property taxes and
assessments assessed and levied on or against the Site.
Developer shall remove, or shall have removed, any levy or
attachment made on the Site, or shall assure the satisfaction
thereof within a reasonable time but in any event at least 15
days prior to a scheduled sale thereunder. Nothing herein
contained shall be deemed to prohibit the Developer from
contesting the validity or amounts of any tax assessment,
encumbrance or lien, nor to limit the remedies available to the
Developer in respect thereto.
VI. [S 600) ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS
This Agreement shall be executed in three (3) duplicate
originals each of which is deemed to be an original. This
Agreement includes ( ) pages and three (3)
attachments which constitute the entire understanding and
agreement of the parties.
This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all
931110 C1371-01009 hi 1091469.2 0 - 14 -
negotiations or previous agreements between the parties with
respect to all or any part of the Site. All waivers of the
provisions of this Agreement must be in writing and signed by the
appropriate authorities of the Agency and the Developer, and all
amendments hereto must be in writing and signed by the
appropriate authorities of the Agency and the Developer.'
CARSON REDEVELOPMENT AGENCY
Date: , 1993 By:
Chairman
Date: , 1993 By:
Date"
931110 C1371-010091sj 1091469.2 0 _ 15 _
ATTACHMENT NO. 1
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ATTACHMENT NO. 2
LEGAL DESCRIPTION
The land referred to in this report is situated in the State of California,
County of LOS ANGELES and is described as follows:
THE NORTHERLY 110 FEET OF LOT 44 OF TRACT 3612, IN THE CITY OF CARSON, COUNTY
OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 40 PAGES 5
AND 6 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT THEREFROM THE WESTERLY 846 FEET THEREOF.
ATTACHMENT NO. 3
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO
Carson Redevelopment Agency
701 E. Carson Street
Carson, California 90745.
Attn: Redevelopment Manager
WITH A COPY TO:
FREE RECORDING REQUESTED
(Gov't Code Section 6103)
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY
THIS AGREEMENT (the "Agreement Containing Covenants") is
entered into this day of , 1993, by and
between (the
"Developer"), and the CARSON REDEVELOPMENT AGENCY, a public body,
corporate and politic ("Agency").
WHEREAS, Developer is the owner of fee title to that certain
real property (the "Site") located in the City of Carson more
particularly described in Exhibit "A" attached hereto and
incorporated herein by this reference; and
WHEREAS, a Negative Declaration has been prepared for the
project on the property described in Exhibit "A". The
Redevelopment Agency has reviewed and considered the Negative
Declaration prepared for the proposed project prior to -making its
decision to enter into the Affordable Housing Agreement. The
Agency finds that the project will not have a significant effect
on the environment and hereby approves the Negative Declaration.
WHEREAS, for the purpose, among others, of effectuating the
Redevelopment Plan for the Carson Redevelopment Project No. 1
(the "Project"), the Agency and Developer have entered into that
certain Affordable Housing Agreement, dated ,
1993 (the "Agreement"), which provides for the operation on the
Site and the development thereon of housing for elderly
households (the "Development"); and
WHEREAS, the Agreement contains certain provisions relating
to the use of the Site, with respect to which the parties have
agreed to execute and record this Agreement Containing Covenants.
NOW, THEREFORE, AGENCY AND DEVELOPER COVENANT AND AGREE AS
FOLLOWS:
1. The Developer covenants and agrees (for itself, its
successors, its assigns, and every successor in interest to the
Site or any part thereof) that the Developer, such successors,
93111001371-010091ej 1091469.20 Page 1 of 5
and such assigns shall devote the Site (or any part thereof), to
the uses specified therefor in the Redevelopment Plan, the
Agreement and this Agreement Containing Covenants.
2. The Developer covenants and agrees that the Site shall
be used exclusively as an apartment building with forty-four
residential dwelling units occupied by Elderly households, and
one unit occupied by an on-site manager who need not be Elderly.
Twenty-two of the units (the "Agency Units") shall be rented at
an Affordable Rent, including a reasonable utility allowance, to
Qualified Tenants.
3. The Maximum Rent to be charged for each of the Agency
Units shall be $683 per month per unit, which includes the cost
of all utilities except telephone. The Maximum Rent may be
increased by a maximum of four percent (4%) per year, commencing
November 1, 1994 and each November 1thereafter.
4. For purposes of this Agreement:
(a) "Affordable Rent" shall be as defined in Health and
Safety Code Section 50053(b)(2). For those lower income
households with gross incomes that exceed 60 percent of the area
median income adjusted for family size, affordable rent shall be
a rent that does not exceed 30 percent of the gross income of the
household.
(b) "Elderly household" shall mean households
consisting solely of individuals fifty-five (55) years of age or
older, or a single person who is fifty-five (55) years of age or
older.
(c) "Lower income" shall have the same meaning as
"lower income households", as defined by Health and Safety Code
Section 50079.5
(d) "Qualifying Tenant" shall mean a lower income
elderly household, that is not receiving assistance pursuant to
Section 8 of the United States Housing Act of 1937.
4. Developer shall obtain and maintain or cause to be
obtained and maintained on file reasonable verification in
written form as to the income of each Low and Moderate Income
household, and as to the age of each head of household, residing
in the Development.
5. Priority in filling vacancies will be provided to
individuals who have resided in Carson at least two years prior
to submitting the application for senior housing.
6. Developer shall submit an annual report (the "Annual
Report") to the Agency, in a form acceptable to the Agency
Executive Director, which contains the information required by
Health and Safety Code Section 33418. The Annual Report shall
931110C1371 -01009W1091469.20 Page 2 of 5
45.
include for each rental unit the rental rate and the income and
family size of the occupants. The income information shall be
supplied by the tenant in a certified statement on a form
provided by the Agency. The age of the head of household shall
be included in the Annual Report. The Developer shall submit the
Annual Report prior to February 1 of each year.
7. Developer shall manage or cause the Development to be
managed in a prudent and businesslike manner, consistent with
similar housing projects in the State of California and the
purposes of this Agreement.
8. The Developer shall maintain the Development, keep the
Site and the improvements thereon free from any accumulation of
debris, waste materials, or graffiti and maintain the landscaping
in a healthy and attractive condition.
9. Developer covenants and agrees for itself, its
successors, its assigns and every successor in interest to the
Site or any part thereof, that there shall be no discrimination
against or segregation of any person, or group of persons, on
account of race, color, religion, creed, national origin,
ancestry, physical handicap, medical condition, age, marital
status, or sex in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the Site nor shall the
Developer itself, or any person claiming under or through it,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the Site.
10. The Developer shall refrain from restricting the sale,
lease, sublease, rental, transfer, use, occupancy, tenure, or
enjoyment of the Site (or any part thereof) on the basis of race,
color, religion, creed, national origin, ancestry, physical
handicap, medical condition, age, marital status, or sex of any
person. All such deeds, leases, or contracts pertaining thereto
shall contain or be 'subject to substantially the following
nondiscrimination or nonsegregation clauses:
(a) In deeds: "The grantee herein covenants by and
for itself, its successors 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 race, color, religion, creed, national origin,
ancestry, physical handicap, medical condition, age, marital
status, or sex in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land herein conveyed, nor
shall the grantee itself or any person claiming under or through
it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees in the land herein conveyed.
The foregoing covenants shall run with the land."
931110C1371 -010091,j 1091469.20 Page 3 of 5
46.
(b) In leases: "The lessee herein covenants by and
for itself, its successors and assigns, and all persons claiming
under or through them, and this lease is made and accepted upon
and subject to the following conditions: That there shall be no
discrimination against or segregation of any person or group of
persons, on account of race, color, religion, creed, national
origin, ancestry, physical handicap, medical condition, age,
marital status, or sex in the leasing, subleasing, renting,
transferring, use, occupancy, tenure or enjoyment of the land
herein leased, nor shall lessee itself, or any person claiming
under or through it, establish or permit such practice or
practices of discrimination or segregation with reference to the
selection, location, number, or occupancy of tenants, lessees,
sublessees, tenants, or vendees in the land herein leased."
(c) In contracts: "There shall be no discrimination
against or segregation of, any person or group of persons on
account of race, color, religion, creed, national origin,
ancestry, physical handicap, medical condition, age, marital
status, or sex in the sale, lease, sublease, rental, transfer,
use, occupancy, tenure or enjoyment of the land, nor shall the
transferee itself or any person claiming under or through it,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the land."
il. In amplification and not in restriction of the
provisions set forth hereinabove, it is intended and agreed that
Agency shall be deemed a beneficiary of the covenants and
agreements provided hereinabove both for and in its own right and
also for the purposes of protecting the interests of the
community. All covenants without regard to technical
classification or designation shall be binding for the benefit of
Agency, and such covenants shall run in favor of Agency for the
entire period during which such covenants shall be in force and
effect, without regard to whether Agency is or remains an owner
of any land or interest therein to which such covenants relate.
Agency shall have the right, in the event of any breach of any
such covenant or agreement, to exercise all the rights and
remedies, and to maintain any actions at law or suits in equity
or other proper proceedings to enforce the curing of such breach
of covenant or agreement.
12. No violation or breach of the covenants, conditions,
restrictions, provisions or limitations contained in this
Agreement Containing Covenants shall defeat or render invalid or
in any way impair the lien or charge of any mortgage or deed of
trust or security interest permitted by the Agreement, provided,
however, that any subsequent owner of the Site shall be bound by
such remaining covenants, conditions, restrictions, limitations,
and provisions, whether such owner's title was acquired by
foreclosure, deed in lieu of foreclosure, trustee's sale or
otherwise.
931110C1371-0I0091ej 1091469.20 Page 4 of 5
13. Only the Agency, its successors and assigns, and
Developer and the successors and assigns of Developer in and to
all or any part of the fee title to the Site shall have the right
to consent and agree to changes in, or to eliminate in whole or
in part, any of the covenants, easements, or other restrictions
contained in this Agreement Containing Covenants, or to subject
the Site to additional covenants, easements or other
restrictions. Agency, its successors and assigns, and Developer
and the successors and assigns of Developer in and to all or any
part of the fee title to the Site shall have the right to consent
and agree to changes in, or to eliminate in whole or in part, any
of the covenants, easements, or restrictions contained in this
Agreement Containing Covenants or to subject the Site to
additional covenants, easements, or other restrictions without
the consent of any tenant, lessee, easement holder, licensee,
mortgagee, trustee, beneficiary under a deed of trust or any
other person or entity having any interest less than a fee in the
Site.
14. The covenants established in this Agreement, shall,
without regard to technical classification and designation, be
binding on the Developer and any successor in interest to the
Site or any part thereof for the benefit and in favor of the
Agency, its successors and assigns, and the City. Except as set
forth below, the covenants contained in this Agreement shall
remain in effect for the longest feasible time, but not less than
thirty (30) years from the date of this Agreement. The covenants
against discrimination (as described in Paragraphs 9 and 10)
shall remain in perpetuity.
IN WITNESS WHEREOF, the Agency and the Developer have
executed this Agreement Containing Covenants.
"AGENCY"
THE CARSON REDEVELOPMENT AGENCY
Date•
By:
Executive Director
APPROVED AS TO FORM:
RICHARDS, WATSON, & GERSHON
Agency Counsel
By:
93111001371-01009Jsj1091469.20 Page 5 of 5
"Developer"
Date: , 1993 By:
931110C1371 -010091,j 1091469.20 Page 6 of 5
STATE OF CALIFORNIA }
)ss.
COUNTY OF LOS ANGELES )
On , 1993, before me, the undersigned, a Notary
Public, personally appeared
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed
the same in his authorized capacity, and that by his signature on
the instrument the entity upon behalf of which the person acted
executed the instrument.
WITNESS my hand and official seal.
STATE OF CALIFORNIA )
) ss.
COUNTY OF LOS ANGELES )
On , 1993, before me, the undersigned, a Notary
Public, personally appeared
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed
the same in his authorized capacity, and that by his signature on
the instrument the entity upon behalf of which the person acted,
executed the instrument.
WITNESS my hand and official seal.
Signature
931110 C1371-01009 13j 1091469.2 0
SD.,
e
EXHIBIT A
LEGAL DESCRIPTION
The land referred to in this report is situated in the State of California,
County of LOS ANGELES and is described as follows:
THE NORTHERLY 110 FEET OF LOT 44 OF TRACT 3612, IN THE CITY OF CARSON, COUNTY
OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 40 PAGES 5
AND 6 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY,
EXCEPT THEREFROM THE WESTERLY 846 FEET THEREOF.