SR-407-003-013 (2)
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Santa Monica, California, December 3, 1980
TO: Housing Authority
FROM: City Staff
SUBJECT: Proposed Agreement With One Pico Enterprises, Incorporated.
Background/Discussion
The Coastal Commission has approved a development permit to One Pico Enterprises,
Inc., which among other provisions, obligates the developer to provide twelve (12)
low and moderate income rental units as part of the development.
In order to assure compliance with this particular aspect of the permit. the
Coastal Commission has required the developer to enter into the attached three
way agreement between the developer, Coastal Commission. and Housing Authority
Under the terms of this agreement the Housing Authority's sole function is to
refer eligible prospective tenants from the local Existinq Section B waiting list.
when the Authority is notified of vacancies by the developer.
Recomm~ndation
It is recommended the Housing Authority approve the attached a9reement with One
Pico Enterprises, Inc., and authorize the Chairman to execute the document.
Prepared by: John Herner
JH:sh
Attachments
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Recordlng Re~ested By:
~ ~essor Parcel No. _
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Space Above ThlS Llne For Recorder's Use
When Recorded Mail To:
Callfornla Coastal GommlSS1on
631 Howard Street~ 4th Floor
San Franclsco, Callfornia 94105
Attentlon: Legal Department
AGREEMENT IMPOSING RESTRICTIONS
ON REAL PROPERTY
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THIS AGREEMENT lS made by and between the CALIFOR-
NIA COASTAL COMMISSION (herelnafter "Coastal Commission"),
the HOUSING AUTHORITY OF THE CITY OF SANTA MONICA (herein-
after the "Hous~ng Author~tylf), and ONE PICO ENTERPRISES,
INC.
(here~nafter "Developer"), as of the 21st day of
NOVE!:.33...1.
, 1980.
WHEREAS, Developer is the owner of property In the
Coastal Zone located at One Pleo Boulevard (more partlcular-
ly described in Exhibit A) and 1815 Appian Way (more partic-
ularly described in Exhiblt B) in Santa Monica, Los Angeles
County (together referred to hereafter as the "subject prop-
erty"), upon which they wlsh to construct thlrty- two (32)
unlts of housing; and
WHEREAS, pursuant to the California Coastal Act of
1976 (Publ~c Resources Code S 3000 et seq.), Developer has
sought in Permit No. 141-80 a permit for said housing from
the Coastal Commisslon; and
w~EREAS, the Coastal CommlSSlon has determlned to
lssue a permlt for this development subject to cond~tlons
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wh~ch are imposed for the public and surround~ng lando~~ers,
and wlthout agreement to wh~ch by Developer, no perm~t could
be lssued; and
WHEREAS, the Housing Authority has been requested
by Developer, the Coastal Commlssion and California Depart-
ment of Housing and Communlty Development (herelnafter "De-
partment") to admln1ster the affordabi11ty program provlded
in th1S agreement;
NOW, THEREFORE, in consideration of the issuance
of the development permit and of the benefit conferred
thereby on the subject property, Developer hereby covenants
and agrees with the Coastal CommlSSlon and the Housing
Authority to the following terms, condltlons and
restrlct10ns upon the posseSS1on, use and enjoyment of the
subject property, which terms. cond~tlons and restrlctlons
shall be attached to and become a part of the deed to the
subject property.
A. Developer agrees as follows:
(1) To construct and rent twelve (12) apartment
units (hereinafter "Affordable Units"), and 17 on-site park-
lng spaces at 1815 Applan Way, more particularly descrlbed
1n Exhlbit B, to persons earn~ng not more than e1ghty per-
cent (80%) of the current annual medlan income for the Los
Angeles Metropol~tan Stat~stlcal Area, as def~ned by the
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U.s. Department of Houslng and Urban Development (HHUDH) and
as adjusted for unit Slze (described below in
paragraph A(2)(b)); provided, however, that if a subsidy
program under Section 8 of the Housing Act of 1937, as
amended, or any other comparable subsidy programJ is avail-
able to Developer, then Developer shall rent four (4) of the
Affordable Unlts to'persons earning not more than fifty per-
cent (50%) of the then current annual medlan income for the
Los Angeles Metropolltan Statistlcal Area, as defJ.ned by HUD
and as adjusted for UDlt size (described below in para-
graph A(2) (b)) .
(2) To rent the Affordable Unlts at a monthly
rental rate equal to the current fair market rent for exist-
ing housing establlshed by HUD under Sectlon 8 of the Hous-
ing Act of 1937, as arnendedJ If a subSldy program under
Section 8 or any other comparable subsldy program is avail-
able to Developer. If no Section 8 or comparable SUbSldy
program lS avallable, then Developer agrees to rent the
Affordable Vnlts at a monthly rate equal to not more than
twenty-fJ.ve percent (25%) of the gross monthly lucorne of a
person earnlng not more than eighty percent (80%) of the
current annual medJ.an lncorne for the Los Angeles Statlstical
Area for a family of four as defined by HUD, and as adjusted
for unlt Slze as follows: the median lucorne for a family of
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four shall be multiplied by 0.70 for a studio unit; by 0.80
for a one-bedroom unlt; by 0.95 for a two-bedroom unit; by
1.085 for a three-bedroom unlt; and 1.22 for a four-bedroom
unlt. Thus, for example, assuming a median lncorne for a
famlly of four of $18,000, a one-bedroom unit would rent for
the lower of the falr market rent or 0.8 (80%) x $18,000 x
0.8 (unlt size adjustment) x 0.25 (25%) ~ 12 (months) = $240
per month rental.
(3) To not~fy the Housing Authority ln writlng of
rental vacancies in the Affordable Units.
(4) To rent the Affordable Units to persons
referred by the Houslng Authorlty, subject to Developer
approving sald person(s), quallflcations to rent the Afford-
able Unlts lncludlng, but not limlted to, the abllity and
hlstory of timely payment of rent, ablllty and hlstory of
malntainlng property, which approval shall not be unreason-
ably withheld.
(5) To rent the Affordable Unlts pursuant to the
terms and condltlons of the form of lease attached hereto as
Exhiblt c.
(6) That four (4) of the unlts shall be con-
structed as one-bedroom, one-bath un~ts of at least 600
square feet; four (4) of the Ulllts shall be constructed as
two-bedroom, one-bath unlts of at least 800 square feet; and
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four (4) of the unlts shall be constructed as three-bedroom,
two-bath units of at least l~OOO square feet.
(7) That Developer wlll not close escrow on the
20 condominlum units constructed at One Pica Boulevard~
described in Exhiblt A, unt~l they have notified the Housing
Author~ty in writlng that rental vacancies exist in the
Affordable Units constructed at 1815 ApPlan Way, described
in Exhiblt B. Once Developer so notifies the Agency, this
Agreement shall terminate and become of no further force and
effect wlth respect to, and shall no longer be a restriction
on or against, run wlth and burden, or otherwise affect, the
property described in Exhlblt A, and thereafter the legal
owners of sald property shall have no responsibll1ty whatso-
ever for the covenants and obllgatlons of Developer
hereunder.
B. The Houslng Authorlty agrees as follows:
To refer persons to the Developer for the Afforda-
ble Vnlts who meet the requlrements set forth in para-
graph A(l) hereof and who qual1fy for the benefits under
Section 8 of the Houslng Act of 1937, as amended.
c. General Terms and Condltlons:
(1) In the event of any controversy, claim or
dlspute between the partles hereto~ arising out of or relat-
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lng to this agreemant or breach thereof, the prevaillng par-
ty shall be entltled to recover from the losing party
reasonable expensesJ attorneys' fees and costs.
(2) The Housing Authority may asslgn all or part
of this agreement to any other publlC agency upon thlrty
(30) days' written notice to the Developer.
(3) In the event any llmitatlon, condition,
restrictlon, covenant or provislon contained in this agree-
ment is to be held luvalid, void or unenforceable by any
Court of competent ]urisdlction, the remainlng portlons of
this agreement shall, nevertheless, be and remaln in full
force and effect.
(4) All notlces required under thlS agreement
shall be sent by certlfled mail/return recelpt requested, to
the followlng addresses:
To Reglonal Commission: South Coast Regional Commisslon
P. O. Box 1450
666 East Ocean BoulevardJ Room 3107
Long Beach, Callfornla 90801
To Houslng Authorlty:
Housing Authority of the Clty
of Santa Monlca
1685 Maln Street
Santa Monlca, Callfornla 90401
To Developer:
One Pleo Enterprlses, Inc.
12838 Evanston Street
Los Angeles, Callfornia 90049
To Coastal Commisslon:
Ca11fornla Coastal Commlssion
631 Howard Street, 4th Floor
San Franclsco, Callfornla 94105
Attentlon: Legal Department
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To Department:
Cal~fornia Department of Housing
and Community Development
921 - 10th Street
Sacramento, Ca1iforn~a 95814
Any party may change the address to which notices are to be
sent by not~fying the other part~es of the new address, ~n
the manner set forth above.
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(5) As between the Hous~ng Authority and Develop-
er, Developer is deemed to assume responsibility and liabil-
ity for, and Developer shall ~ndemnify and hold harmless the
Housing Authority and any and all of 1ts officers, agents,
servants or employees from and against any and all claims,
loss, damage, charge or expense, whether direct or 1nd1rect,
to which the Hous~ng Author1ty or such officers, agents,
servants or employees may be put or subjected, by reason of
any damage, loss or injury of any kind or nature whatever to
persons or property caused by or resulting from or 1n con-
nection w1th any negligent act or act1on, or any neglect,
Offi1ssion or fa11ure to act when under a duty to act, on the
part of Developer or any of h1s off1cers, agents, servants,
employees or subcontractors in h1S or the1r performance her-
eunder.
(6) The covenants and cond1t1ons here1n contained
shall apply to and b1nd the he1rs, successors and ass1gns of
all the parties hereto and shall run w1th and burden the
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subject property untl1 term2nated ln accordance with the
provlsions hereof.
(7) In the event the standards for establ~shlng
the monthly rental rate of the Affordable Vnlt set forth in
subparagraph A(2) above cease to eXlst, the partles shall
substitute a sim2lar standard established by HUD or its suc-
cessor governmental agency. If the partles are unable to
agree upon a substitute standard, the partles shall refer
the chOlce of the substitute standard to binding arbitration
In accordance with the rules of the American Arbitratlon
Associat2on.
(8) The Houslng Authority shall have the right to
termlnate its obl1gations under th1S agreement pr20r to the
date of terminat20n hereinafter set forth, by providing not
less than six (6) months' prior wr1tten notlce to Developer,
the Coastal Commi5sion. the Regional Comm1ssion and the
Department. For purposes of th1S agreement, each of the
sa2d agencles is hereby deemed a representat2ve of the class
of persons to be benefited under thls agreement, and 15 fur-
ther deemed to be a third-party beneflc2ary of thlS
agreement.
(9) Developer agrees not to dlscrlmlnate agalnst
any lessee or potentlal lessee because of race. color, reli-
glon. sex or natlonal origin Developer further agrees to
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take aff1rmat1ve action to ensure that no such person is
discrlffilnated against for any of the aforementioned reasons.
(10) Vlolation of thlS agreement may be enjoined,
abated or remedled by appropriate legal proceedings by the
partles hereto, the Regional Commission, and/or the Depart-
ment or thelr respectlve successors, heirs, and assigns.
Damages at law for any such violatlon are hereby declared to
be inadequate.
(11) ThlS agreement const1tutes the entlre agree-
ment between the partles and no modificatlon hereof shall be
blndlng unless reduced to writlng and slgned by the parties
hereto.
(12) All questions pertalning to the valldity and
lnterpretatlon of this agreement shall be determlned 1n
accordance with the laws of Callfornia appllcable to con-
tracts made and to be performed wlthin the State.
D. Termlnation:
ThlS a$reement shall terminate and become null and
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void thlrty (3q years from the date of recordat1on hereof
unless earller term1nated pursuant to the provislons of
subparagraph A(7) above as to the property descr1bed in
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Exhlbit A or to the provlsions of subparagraphs C(8) and/or
C(ll) above.
IN WITNESS WHEREOF, the part1es hereto have caused
thlS agreement to be entered into as of the day and year
flrst above written.
CALIFORNIA COASTAL COMMISSION
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By j
ONE PICO EKTERPRISES, INC.
By
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APPROVED AS TO
LEGAL FORM:
HOUSING AUTHORITY OF THE
CITY OF SANTA MONICA
St~SLlllAe\~t~~
Actlng City Attorney
By
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STATE OF CALIFO~~IA
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COm~TY OF SAN FRt.,XCISCO
day of
NOYE!.f3ER.
I 1980, befor~ me, the
On this 21st
undersigned Notary Public, person~lly appeared
TIHOTHY
EIC~Nd:!:RG
known to me to be the LEGAL COUHS2L
of the California Coastal Commission ~nd known
to 8E to be the person who executed the within instrument on
behalf of said Co~~ission, and executed the same fOT the
purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
OFFICIAL SEAL
ALFQEDO D CARREON
NOTARY PUBLIC - CAUFORNlA '
':.... l ~~N~c's:::a COLlNTY
Mf oom'11 expHCS JUl. 12. 1981 ;-
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Notary ~gnature
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JUr~ 12, 1981
Date of Cou~ission Ex~irat~on
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STATE OF CALIFORL~IA )
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COt:1'lTY OF LOS &"fGELES )
~'1 7 L /'cJ~/)
On ~~; 77 /l/V
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before me, the undersigned, a
Notary Public in and for said State, personally appeared
(;l3;?~1 t!-c./l HtJ/-lc , known to me to be the
President of the corporation that executed
the within instrument, known to me to be the person who executed
the within instrument on behalf of the corporation therein
na~ed, and acknowledged to me that such corporation executed
the within instrument pursuant to its by-laws or a resolution
of its board of directors.
and official seal.
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OFflCIAt ~tAL
LISA J. McBRIDE
NOTAilV PUBliC CALIfORNIA.
PRINCIPAL OFFICE IN
lOS ANnElES COUNTY
My CommiSSion Exl! JU1e 17 198'1
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STATE OF CALIFORNIA )
) 55.
COUNTY OF LOS ANGELES )
On
before me, the unde~signed. a
:
Notar~ Public in and for said State, personally appeared
. known to me to be
the Chairman of the Housing Authority of the City of Santa Monica
which executed the within instr~~ent, know~ to me to be the
person who executed the within instrument on behalf or the
Housing Authority and acknowledged to me chat such Housing
Authority executed the within lnstrument pursuant to a resolution
of the Housing Authority.
WITNESS my hand and official seal
C?ignature)
(N~~e)
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EXHIBIT A
Lot 31, also all of that portion of Vicente Terrace, 40 feet
~lde, In the Ci ty of Santa t1o:nca, County of Los Angeles,
State of California, as shown on the map of Tract No. llll,
recorded ln Book 17, Pages 154 and 155 of ~aps, In the office
of the County Recorder of saId County, lying Southeasterly of
the centerline of said Vicente Terrace, vacated by Resolution
Ko. 1433 of the City or Santa Monica, a certIfied copy thereof
being recorded July 5, 1955 In Book 48253, Page lID, OffIcial
Reco=ds, as Instrument No. 2714, and vacated by Resolution
No. 2844, a certified copy thereof being recorded June 19, 1963,
in Book D2C71, Page 464, Official Records, as Instrument
x? 3050, ti~l~ to WhiCh w~~Jd pass by a conveyance of said
Lot 31, cnd Lots 32, 33, 34 and 35 of Tract No. 1111, in the
Clty 0~ Santa Monica, County of Los Angeles, State of
Callfornla, as per map recorded In BOOK l7, Pages l54 and 155
of ~!aps, in t:Je offlce of the County Recorder of said CO\Jnty.
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EXHIBIT B
Lots 10, 11 and 12 of Tract 1111, in the City
of Santa Monica, County of Los Angeles, State of California,
as per map recorded in Book 17, Pages 154 and 155 of Maps,
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in the office of the County Recorder of said County.
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HOUSi"G AL """t..jOaJTI' OF n1Ee\iTI' OF LOS "'~GELES
SECll0-.. 8 HOL"SI~JG ASS[ST~"CE ?"'Y"jE~TS ?ROGR-\.".i
EXIS'i:-':G HOLSi".;G
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uv iJ" Ihe Coc~P~' ei L(J~ "'\'n~eles In~ ,rot .:.,t.'. --'il'l:h 1""- a oubhe:: hOUSPllt ~.,!..cv al!i dd~nec Ir ~"'i!! l D.tl~d S',jues H'CIus~"lr ~e~
o( 193":'. 4~ t: S c !,;:;.- l!'L 5t':1J i~"'~et"\ ~I ""rV'Ot1 J~3".a(6) The H--\.roL-\ L5 'lCllng purs"-i1::;~'c ar -\'\nu.~ CD1lLrlb~[~ons
Co:uracL ....nh tJ.e- Go-..ehJi1iftH.
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The rlnancul oDi.g....Jon 0: Ihi;: t'-\CoL.\ 1.& J'-'TlUe11 to naklng "'Io'l.uanig a.ssun.aace r-.avmr~..s.o"'\ oe....aif c-f t.he- ram.lv '1'\ acco'~
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