SR-407-003-08
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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
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MAR 2 7 1984
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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.
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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
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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
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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;
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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
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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
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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:
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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.
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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.
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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:
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Robert M. Myers
CIty Attorney
OWNER
By____
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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.