Loading...
SR-407-003-08 e ~(/ '1--CJ(!J 3-0 t e C/ED:HD:ML:Jt Housing AuthorIty Meeting 3/27/84 Santa MonIca, Oll/IM - I CalI for n ~~R 2 7 1984 TO: HousIng AuthorIty FROM: Staff SUBJECT: RecommendatIon to Approve Amendment to DeclaratIon of Coastal Use RestrIctIons and Covenants and to AuthorIze the Executive Director to Execute the Document INTRODUCTION ThIS report transmIts a proposed Amendment to DeclaratIon of Coastal Use RestrIctIons and Covenants governing the use of resIdentIal rental property located at 724 PacIfic Street, Santa Monica. It is recommended that the HousIng AuthorIty approve the document and authorIze Its executIon by the EXecutIve D1rector. BACKGROUND On February 14, 1984, the Redevelopment Agency approved the commitment of deferred loan funds for the acquIsItIon of eight rental unIts located at 724 PacIfIc Street by CommunIty CorporatIon of Santa MonIca. The Agency1s loan was subject to a number of condItIons, includIng takIng actIons necessary to provide for complIance with the Coastal CommISSIon deed restr 1 ct i on currently recorded agaInst the property. As noted In the February 14th staff report to the Agency, the eXIstIng deed restrIction does not contain prOVISIons to allow easy enforcement of condItIons nor does it adequately regulate rents to assure long term occupancy by low and moderate income households at an affordable cost. The Amendment to DeclaratIon 1 eel HA - , MAR 2 7 1984 e e of Coastal Use Restrlctlons proposed for approval includes the fOllowlng terms and condltlons to address ldentlfled deflclencies as follows: o Includes the Houslng Authorlty as a party to the restrlction for enforcement purposes; o Provldes for annual reportlng on occupancy and rent levels to permlt monltorlng for compllance; o Modlfies the rental formula to assure affordabllity and explicltly permlts the use of Sectlon 8 Moderate Rehabilltatlon SubsIdles; o Requires that vacant unIts be offered to the Houslng AuthorIty for rent to Sectlon 8 ellgible tenants; and o Adds non-dlscrimlnatlon clauses. FINANCIAL BUDGETARY IMPACT The Amendment does requlre the Houslng Authorlty to certlfy and refer ellgible tenants to the owner as apartments become vacant. No fInanclal Impacts are antlcIpated because the Housing AuthorIty of the County of Los Angeles regularly performs these tasks on behalf of the CIty'S HOUSIng AuthorIty and currently receIves adequate administratIve fundlng for thls purpose. 2 e e RECOMMENDATION The Clty'S Housing Commission reviewed the proposed Amendment at its March IS, 1984 meeting and recommended that the Housing Authority approve the attached document. Staff recommends that the Houslng Authority: 1. Approve the Amendment to Declaration of Coastal Use Restrictions and Covenants; and 2. Authorize the Executive Director to execute the document. Prepared by: Mlndy Leiterman Manager Housing Division Department of Community and Economic Development 3 e e RECORDING REQUESTED BY: ) Assessor's Parcel No.: ) CALIFORNIA COASTAL COMMISSION ) ) WHEN RECORDED MAIL TO: ) ) CalIfornIa Coastal CommISSIon ) 631 Howard Street, Fourth Floor ) San FranCISCO, CalIfornIa 94105 ) Attn: Legal Department ) ) Space above for Recorder's use AMENDMENT TO DECLARATION OF COASTAL USE RESTRICTIONS AND COVENANTS THIS AGREEMENT is made by and between the CALIFORNIA COASTAL COMMISSION (hereinafter "CommissIon") COMMUNITY CORPORATION OF SANTA MONICA a CalIfornIa non-profIt public benefIt corporatIon, (hereInafter "Owner") and the HOUSIng AuthorIty of the CIty of Santa MonIca (hereInafter "AuthorIty") as of thIS day of , 198 . WHEREAS, Owner is the owner of certain real property located at: 724 PaCIfic Street, Santa Monica, CalIfornia more partIcularly descrIbed In ExhIbIt A attached and Incorporated hereIn by reference (hereInafter "subJect property"); and WHEREAS, the subject property IS located in the coastal zone as defined In CalIfornIa Coastal Act of 1976, PublIC Resources Code Section 300'0'0 et seq. (hereInafter the "Act"); and WHEREAS, the CommISSIon has found In Permit No. 67-79 (Incorporated hereIn by reference) that a permIt for thIS development may only be Issued upon satisfactIon of condItIons assurIng the proviSIon of hOUSIng opportunIties for low and moderate-Income persons In order to meet the polICIes of the 1 e e Coastal Act, and that wlthout such provISIon, thIS development would be inconsIstent wIth the Coastal Act, and no permIt could lssue; and WHEREAS, In PermIt No. 67-69 a permIt from the CommIssIon was Issued to carry out the following development: The demolitIon of a 9-unIt apartment bUIlding and the constructIon of an ll-story office and commercIal bUIldIng. WHEREAS, the permi t applIcant {Teleklew Product ions, Inc.} and the CommISSIon executed and recorded a DeclaratIon of Coastal PermIt Use RestrIctIons and Covenants on AprIL 4, 1979, (incorporated hereIn by reference) guaranteeIng the provIsIon of affordable housIng pursuant to PermIt No. 67-79, WIthout WhICh the applIcant's development could not proceed; and WHEREAS, Owner has subsequently purchased subJect property and succeeds to the applicant's dutIes to provIde affordable housIng pursuant to Coastal PermIt No. 67-79; and WHEREAS, the eIght (8) unlts on the subJect premises meet aSSIgnee's responsIbIlity under Coastal PermIt No. 67-79 for the prOVIsion of affordable housIng; and WHEREAS, the II-story offIce bUIldIng has been constructed but the provISIon of the affordable housIng has not been adequately secured pursuant to Permit No. 67-79 and the DeclaratIon; and WHEREAS, It 15 the IntentIon of the partIes to set forth the covenant, conditIons and restrIctIons applicable to the requIrements of the Coastal Act; 2 e - NOW, THEREFORE, 1n conslderation of the Issuance of the development permit and the benefit conferred thereby to the Appllcant and the Owner, Owner hereby covenants and agrees wlth the CommissIon to the followIng terms, conditIons and restrlctIons upon the possesslon, use and enJoyment of the subJect property, which terms, cond1tIons and restrIctlons shall be attached to and become a part of the deed to the property and shall modify and amend the Declaration of Coastal PermIt Use RestrlctIons and Covenants. A. Owner agrees as follows: 1. To offer 8 unIts of hOUSIng located on the subject property to the Santa MonIca Hous1ng Authorlty or other agency acceptable to the ExecutIve DIrector of the CommISSIon to be used as affordable hOUSIng in the follOWIng manner: (a) All unIts currently vacant shall be offered to the AuthorIty at the current FaIr Market Rent for eXIsting housing establlsed by the Department of HOUSIng and Urban Development (HUD) under the SectIon 8 program; or, If the vacant unIt is covered by a HOUSIng ASSIstance Payment Contract under the SectIon 8 Moderate Rehabllltatlon program, the unIt shall be offered at the rent determined to be approprlate by the AuthorIty under that program; or, If the SectIon 8 EXIstlng program 15 not available to the AuthorIty, and the un1t 15 not covered by a contract under the Moderate RehabIlitatlon program, the vacant unIt may be offered to the Authority under the terms of any other comparable rent subsidy program admInIstered by or available to the AuthorIty; prOVIded that the Authority or other agency refers 3 e . a person to the Owner who qualIfies for the benefits under the applIcable program. The Owner shall rent such vacant unit to persons referred by the AuthorIty and approval of such tenants by the Owner shall not be unreasonably withheld. (b) If the Authority does not refer to the Owner tenants elIgIble for the program establIshed under SectIon A(l)(a) above the maXImum rent for a vacant unIt shall be the rent determIned by the AuthorIty to be affordable to persons earning less than 80% of the medIan Income established by HUD for the Standard MetropolItan StatIstIcal Area In WhICh the subJect property IS located, adJusted for famIly SIze. "Affordable" shall mean 25% of gross income of a household earning 80% of the area medIan as establIshed by HUD as noted above. The AuthorIty shall refer persons meetIng such criterIa to the Owner for the vacant unIt and Owner approval of these tenants shall not be unreasonably withheld. Any subsequent Owner shall pay for all costs, If any, incurred by the Authority In selectIng and qualIfYIng tenants if the SectIon 8 program 15 no longer avaIlable, but such costs are not applIcable to CommunIty CorporatIon of Santa MonIca. The Housing AuthorIty shall have the rIght to waive thIS reqUIrement for subsequent owners of the subJect premIses In approprIate SItuatIons. 2. All units currently occupied shall contInue to be occupIed by the present tenants provided that when any vacancy occurs, the AuthorIty shall be notIfied ImmedIately and the procedures noted in subsectIon A(l) above shall be utilized. All current tenants shall be ImmedIately notIfIed of this procedure and that upon any change in tenancy their unIt shall be offered 4 e . to the AuthorIty as noted above. 3. A list of all current tenants and rental levels shall be submItted to the Authority. The difference (if any) between the current rental levels of all occupied unIts and the HUD FaIr Market Rent as establIshed by the AuthorIty for those unIts shall be paId to the AuthorIty to be used for the prOVISIons of affordable hOUSIng In the coastal zone untIl a vacancy occurs. Upon such vacancy, the procedures noted In subsectIon A(l) above shall be utIlIzed. B. General Terms and CondItions: 1. In the event of any controversy, claIm or dIspute between the partIes hereto, arising out of or relatIng to thIS agreement or breach thereof, the prevaIlIng party shall be entItled to recover from the losing party reasonable expenses, attorney's fees and costs. 2. AuthorIty may assIgn all or part of this agreement to any other publIc agency upon nInety (90) days wrItten notIce to the Owner and the CommISSIon. 3. In the event any limItatIon, condItIon, restrIctIon, covenant or prov i SI on conta I ned In thI s agreement is to be held InvalId, vOId or unenforceable by any Court of competent JurISdIctIon, the remaInIng portIons of thIS agreement shall, nevertheless be and remaIn In full force and effect. 4. All notices required under this agreement shall be sent certIfIed mall/return receIpt requested, to the follOWIng addresses: 5 e . To AuthorIty: HousIng AuthorIty of the CIty of Santa Monica 1685 MaIn Street Santa MonIca, CA 90401 To Owner: Community CorporatIon of Santa MonIca 2219 Main Street Santa MonIca, CalifornIa 90404 To Coastal CommISSIon CalIfornIa Coastal CommIssIon 631 Howard Street, Fourth Floor San FranCISCO, CA 94105 Any party may change the address to WhICh notIces are to be sent by notIfYIng the other parties of the new address, In the manner set forth above. 5. As between Au thor 1 ty and Owner, Owne r I s deemed to assume responsIbIlIty and lIabIlIty for, and Owner shall IndemnIfy and hold harmless AuthorIty and any and all of Its officers, agents, servants or employees from and against any and all claIms, loss, damage, charge or expense, whether direct or indirect, to whIch Authori ty 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 In connectIon WIth any neglIgent act or actIon, or any neglect, omiSSIon or failure to act when under a duty to act, on the part of Owner or any of Its offIcers, agents, servants, employees or subcontractors In Its or theIr performance hereunder. 6 e . 6. The covenants and condItIons hereIn contaIned shall apply to and bind the heIrs, successors and assIgns of all the partIes hereto and shall be convenants runnIng WIth the land. Acceptance of any deed to property constItutes acceptance of the covenants contaIned hereln. 7. The AuthorIty or ItS designee shall have the rIght to termInate Its oblIgatIons under thIS agreement prIor to the date of termInatIon hereInafter set forth, by prOVIdIng not less than six (6) months' prior wrItten notice to Owner, and the CommIssIon. For purposes of this agreement, each of the saId agencies IS hereby deemed a representatIve of the class of persons to be benefIted under thIS agreement. The AuthorIty and the Commission shall have the rIght to substitute another agency for the AuthorIty or Its designee In the event the Authority seeks to termInate this agreement. 8. Owner agrees not to dIscrImInate against any purchaser or potential tenant because of race, color, relIgIon, sex or natIonal orIgIn. Developer further agrees to take affIrmatIve actIon to ensure that no such person IS dIscriminated agaInst for any of the aforementIoned reasons. 9. VIolatIon of this agreement may be enJoIned, abated or remedIed by appropriate legal proceedIngs by the AuthorIty, and the CommISSIon theIr respectIve successors, heIrs and aSSIgns. Damages at law for any such VIolation are hereby declared to be Inadequate. 7 e . 10. ThIS agreement constItutes the entIre agreement between the partIes and no modIfIcatIon hereof shall be bIndIng unless reduced to wrIting and sIgned by the parties hereto. 11. All questions pertaInIng to the valIdIty and Interpretation of thIS agreement shall be determIned In accordance wIth the laws of CalIfornIa applIcable to contracts made and to be performed wIthIn the State. c. TermInatIon: Owner's oblIgatIons under thIS agreement, shall termInate and become null and vOId thIrty (30) years from the date of recorda tl on hereof. IN WITNESS THEREOF the partIes hereto have caused this agreement to be granted into as of the day and year fIrst above WrItten. CALIFORNIA CO'ST~L COMMISSION By SANTA MONICA HOUSING AUTHORITY By APPROVED AS TO FORM: n..,(.tJ-~ ft '-- \..--;...,- -:..--1 Robert M. Myers CIty Attorney OWNER By____ 8 e . eXHIBIT A Legal DescrIptIon -- 724 PacIflC Street, Santa MonIca LOTS 4 AND 5 BLOCK 6 or AFCADIA TRACT, IN THE CITY OF SANTA BONICA, COUl~TY OF LOS ANGELES, STATE OF CALIFOR~IA, AS PER ~~p RECORDED IN BOOK 16 PAGE 96 or MISCELLANEOPS RECORDS IN THE OFFICE OF THE COUNTY ReCORDER OF SAID COUNTY.