24449916 - Regulatory Agreemetn and Declaration of Restrictive Coventants - First American Title Company - Recorded 04/08/2020RECORDING REQUESTED BY:
First American Title Company
WHEN RECORDED MAIL DOCUMENT TO:
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020-6141
Attn: City Clerk
**This document was electronically submitted
to Santa Clara County for recording"
24449916
Regina Alcomendras
Santa Clara County - Clerk -Recorder
04/08/2020 09:31 AM
Titles:1 Pages..19
Fees: $0.00
Tax: $0
Total: $0.00
Space Above This Line for Recorder's Use Only
A.P.N.: 808-18-003 and 808-19-022 and File No.: 0131-622425ala (tb)
808-19-023
Property Address: Parcel 3 of Parcel Map 923 M 50, Gilroy, CA
REGULATORY AGREEMENT AND DECLARATION OF RESTRICRVE COVENTANTS
Title of Document
The undersigned declares that the document to which this page is affixed and made a part of is exempt from the
fee imposed by the Affordable Housing & Job Act (SB2) (GC 27388.1)
(X ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of
Documentary Transfer Tax per GC 27388.1 (a) (2).
( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner -
occupier per GC 27388.1 (a) (2).
{ j Maximum fee of $225 has been reached per GC 27388.1 (a) (1).
{) Not related to real property GC 27388.1 (a) (1).
{ } Transfer of real property subject to the imposition of Documentary Transfer Tax - GC 27388.1(a)(2)
() Transfer of real property that is a residential dwelling to an owner -occupier - GC 27388.1(a)(2)
THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE
(SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies)
-ECORDING REQUESTED BY:
First ,American Title Company
WHEN RECORDED MAIL DOCUMENT TO:
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020-6141
Attn: City Clerk
Space Above This Line for Recorder's Use Only
A.P.N.: 808-18-003 and 808-19-022 and File No.: 0131-622425ala (tb)
808-19-023
Property Address: Parcel 3 of Parcel Map 923 M 50, Gilroy, CA
REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENTANTS
Title of Document
The undersigned declares that the document to which this page is affixed and made a part of is exempt from the
fee imposed by the Affordable Housing & Job Act (SB2) (GC 27388.1)
(X ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of
Documentary Transfer Tax per GC 27388.1 (a) (2).
( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner -
occupier per GC 27388.1 (a) (2).
() Maximum fee of $225 has been reached per GC 27388.1 (a) (1).
{) Not related to real property GC 27388.1 (a) (1).
( ) Transfer of real property subject to the imposition of Documentary Transfer Tax - GC 27388.1(a)(2)
( ) Transfer of real property that is a residential dwelling to an owner -occupier - GC 27388.1 (a)(2)
THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE
(SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies)
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020-6141
Attn: City Clerk
NO FEE PER GOVERNMENT CODE
SECTIONS 6103 AND 27383
REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS
This Regulatory Agreement and Declaration of Restrictive Covenants ("Agreement") is
made and entered into this 220J day of AFL, 2020, by and between the City of Gilroy, a
municipal corporation (the "City"), PACIFIC WEST COMMUNITIES, INC., WHICH WILL
DO BUSINESS IN CALIFORNIA AS IDAHO PACIFIC WEST COMMUNITIES, INC., AN
IDAHO CORPORATION and COMMUNITY RESOURCES, INC., AN IDAHO NONPROFIT
CORPORATION (collectively referred to herein as "Owner/Developer").
RECITALS
A. Owner/Developer is the owner of certain real property located in the City of
Gilroy, Santa Clara County, California, more particularly described in Exhibit "A" attached
hereto and incorporated herein by this reference (the "Property").
B. The City has enacted Section 50.60 of the City of Gilroy Zoning Ordinance,
which encourages responsible growth in the community, and restricts the amount of housing
which may be constructed each year (the "Residential Development Ordinance" or "RDO").
C. The Project (as defined herein) is part of the Glen Loma Ranch development and
is subject to the Glen Loma Ranch Specific Plan prepared by Ruggeri -Jensen -Azar & Associates,
originally adopted December, 2005, and revised May 19, 2014 (Ordinance No. 2014-07)
(collectively, the "Specific Plan") and the Development Agreement Between City of Gilroy and
Glen Loma Ranch entered into between the City, Glen Loma Corporation, a California
corporation ("GLC"), and the Glen Loma Ranch property owners, dated November 21, 2005,
and recorded on October 26, 2006, as Document No. 19158828 in the records of Santa Clara
County, California (the "Development Agreement"). GLC is the master developer of Glen Loma
Ranch. Under the terms of the Specific Plan and the Development Agreement, Glen Loma
Ranch is to have a designated number of affordable units. Owner/Developer acquired the
Property from the prior owners subject to the condition that Owner/Developer construct an
affordable housing multi -family housing development project on the Property and the purpose of
this Agreement is to satisfy a portion of the affordability requirements set forth in the Specific
Plan and the Development Agreement. GLC and the sellers of the Property to Owner/Developer
are relying on this Agreement to serve this purpose.
D. The City has approved the Owner/Developer's application for Architectural and
Site Approval File No. A/S 17-37 (the "A/S Permit") and granted the RDO "Special Exceptions"
Exemption under Section 50.60(c)(3) of the Gilroy City Code by Resolution No. 2005-82, to
allow the construction of a one hundred fifty-eight (158) unit apartment project, of which one
hundred fifty-six (156) units will be income restricted. Notwithstanding any other provision of
this Agreement, future amendments to this Agreement, or changes to City Guidelines and
pursuant to Section 4.4.9 of the Development Agreement, City and Owner/Developer agree that
the Project, will provide ninety-four (94) units that are affordable under the City's Guidelines,
sixty-two (62) units that are restricted to seniors and affordable under the City's Guidelines and
two (2) units that are senior non -restricted units that shall be designed and constructed so as to
encourage affordability by design.
E. Units are to be rented at affordable levels, in accordance with the AS Permit, the
RDO "Special Exceptions" Exemption, the Development Agreement, and adopted City policies,
including without limitation the "Neighborhood District Policy" and the "Senior Citizen Housing
Policy", or as otherwise permitted by the City pursuant to a possible "Special Exception"
Exemption to the City's current "RDO Affordable Housing Exemption Procedure" and
satisfying the same allocation of affordable housing obligations under the Development
Agreement. Pursuant to section 4.4.9, entitled "Senior/Affordable Housing," of the Development
Agreement, all affordable units required under the Development Agreement are to be allocated
among Very Low- and Low -Income Households, in accordance with the City's current "RDO
Affordable Housing Exemption Procedure." (the "AHEP"), or as otherwise permitted by the City
pursuant to a possible "Special Exception" Exemption to the City's current "RDO Affordable
Housing Exemption Procedure" and satisfying the same allocation of affordable housing
obligations under the Development Agreement.
F. Pursuant to AHEP, forty-two (42) of the Units (27%) shall be affordable to
households with incomes sixty percent (60%) or less of the County median income (the "60%
Units") and seventy-six (76) of the Units (48%) shall be affordable to households with incomes
fifty percent (50%) or less of the County median income (the "50% Units"). Thirty-eight (38) of
the Units (24%) shall be affordable to households with incomes eighty percent (80%) or less of
the County median income (the "80% Units"). Two (2) of the Units (1 %) are manager's units
and shall be affordable within the categories described in Recital D of this Agreement.
G. The parties are entering into this Agreement to ensure that the Project will be used
and operated in accordance with the A/S Permit, the RDO "Special Exceptions" exemption, the
AHEP, and adopted City policies.
H. These Recitals are hereby incorporated into and made a part of this Agreement.
NOW, THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, City and Owner/Developer agree as follows:
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1. Definitions. The following terms shall have the respective meanings assigned to
them in this Section 1:
(a) "Certificate of Occupancy Date" means the date of issuance by the City
of a fully executed and complete Building Clearance Form for the Project.
(b) "Closing Date" means the date this Agreement is recorded in the Official
Records of the Recorder's Office of Santa Clara County, California (the "Official Records").
(c) "Gross Income" means the total of current adjusted gross income, as
calculated for federal income tax purposes and relevant HUD guidelines, of all adult
persons who intend to reside permanently in a household intending to occupy a Unit.
(d) "HUD" means the United State Department of Housing and Urban
Development.
(e) "Low -Income Household" shall refer to a person or persons whose
incomes do not exceed the qualifying limits for low income individuals established for Santa
Clara County, California, as amended from time to time, pursuant to Section 8 of the United
States Housing Act of 1937, adjusted for family size. In the event such federal standards are
discontinued, income limits for Low Income Households shall be those set by the California
Department of Housing and Community Development for Santa Clara, California as below
eighty percent (80%) of Median Income, adjusted for family size.
(f) "Very Low -Income Household" shall refer to a person or persons whose
incomes do not exceed the qualifying limits for very low income individuals established for
Santa Clara County, California, as amended from time to time, pursuant to Section 8 of the
United States Housing Act of 1937, adjusted for family size. In the event such federal standards
are discontinued, income limits for Very Low Income Households shall be those set by the
California Department of Housing and Community Development for Santa Clara, California as
below fifty percent (50%) of Median Income, adjusted for family size.
(g) "Project" means the Project to be constructed on the Property as described
in Recitals C and D of this Agreement, together with all landscaping, parking spaces and
appurtenances thereto, and the Property upon which it is constructed, as the same may from time
to time be modified or replaced, as further described in the A/S Permit.
(h) "Project Approvals" means all governmental approvals obtained by
Owner/Developer for the development and construction of the Project, including without
limitation the A/S Permit.
(i) "Rent" means the total of monthly payments by a tenant for a Unit for the
following: use and occupancy of a Unit and associated facilities; any separately charged fees or
service charges assessed by Owner/Developer which are required of all tenants, other than
security deposits, laundry facility fees, late payment fees, insufficient funds fees and special
event or room rental fees; the cost of an adequate level of service for utilities paid by the tenant,
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if any, including garbage collection, sewer, water, electricity, gas and other heating, cooling and
refrigeration fuel, but not telephone service, cable television and any other tenant ordered
service; any other interest, taxes, fees or other charges for use of the Unit, land or associated
facilities and assessed by a public or private entity other than Owner/Developer, and paid by the
tenant. The City may determine the cost of utilities by using the utility allowance promulgated
by the United States Department of Housing and Urban Development under the Section 8
Program (i.e., the program administered under Section 8 of the United States Housing Act of
1937, as revised or replaced from time to time) for Santa Clara County, California or the County
of Santa Clara established maximum monthly allowances for utilities and services.
0) "Senior By Design" means the units described in Section 4.4.9 of the
Development Agreement as "senior non -restricted units that shall be designed and constructed so
as to encourage affordability by design.".
(k) "Term" means the period of time beginning on the Closing Date and
ending on the later of (i) fifty-five (55) years following the Certificate of Occupancy Date, or (ii)
the date of expiration of the longest running occupancy and rent affordability restriction placed
on the Property with respect to any source of debt or equity financing for the Project.
(1) "Units" (referred to individually as a "Unit") means the dwelling units to
be constructed on the Property as part of the Project.
2. The Owner/Developer hereby acknowledges and agrees that the Project shall be
developed, owned, managed and operated to provide one hundred fifty-six (156) Units, which
shall be rented and occupied during the Term of this Agreement as set forth in Exhibit "B"
hereto. To that end, and for the Term of this Agreement, the Owner/Developer hereby
represents, covenants, warrants and agrees as follows:
(a) Development and Use as Rental Housing. Owner/Developer shall
complete construction of the Project in accordance with all Project Approvals and all loans and
encumbrances encumbering the Property. Owner/Developer shall own, manage and operate the
Project to provide the one hundred fifty-six (156) Units, which shall be rented and occupied as
set forth in Exhibit "B" hereto during the Term of this Agreement. If at any time during the
Term of this Agreement, there are less than the required number of rental Units to be rented to
and occupied by Very Low- and Low -Income Households, Owner/Developer shall market
available Units within the Project only for rent to individuals which meet the target household
income category necessary to bring the Project into compliance with the requirements of this
Agreement, until such time as the Units of the Project are rented to and occupied by the requisite
number of Very Low- and Low -Income Households.
(b) Compliance With Laws. Each Unit, and all common areas, shall be
maintained in conformity with applicable building codes and regulations and all other applicable
laws.
(c) Prohibition of Use for Transient Housing. None of the Units on the
Property shall at any time be utilized on a transient basis, or as a hotel, motel, dormitory,
in
fraternity house, sorority house, rooming house, nursing home, hospital, sanitarium, rest home,
retirement home, or trailer court or park.
(d) Nondiscrimination. The Owner/Developer shall not give preference to
any particular class or group of person in renting the Units, except to the extent that all of the
Units are required to be leased to Low and/or Very Low Income persons provided such
limitation is allowed by applicable laws. The Owner/Developer agrees that there shall be no
discrimination against or segregation of any person or group of persons, on account of race,
color, creed, religion, sex, sexual preference, marital status, national origin, or ancestry, in the
leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Project nor shall the
Owner/Developer, or any person claiming under or through the Owner/Developer, 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 of the Project or in connection with the employment of persons for the operation and
management of the Project. All deeds, leases or contracts made or entered into by
Owner/Developer as to the Units or the Project or any portion thereof during the Term shall
contain a prohibition against discrimination or segregation as set forth in this subsection (d)
above. Notwithstanding the foregoing, without limiting any of Owner/Developer's obligations
under generally applicable law, nothing in this subsection (d) is intended to require
Owner/Developer to change the character, design, use or operation of the Project from, or to
require Owner/Developer to obtain licenses or permits other than those required for, a rental
housing development for persons capable of independent living.
(e) Taxes and Assessments. Owner/Developer shall pay all real and personal
property taxes, assessments and charges and all franchise, income, employment, withholding,
sales, and other taxes assessed against Owner/Developer or the Project, or otherwise payable by
Owner/Developer, at such times and in such manner as to prevent any penalty from accruing, or
any lien or charge from attaching to the Project; provided, however, that Owner/Developer shall
have the right to contest in good faith, any such taxes, assessments or charges. If
Owner/Developer exercises its right to contest any tax, assessment or charge against it or the
Project, Owner/Developer, on final determination of the proceeding or contest, shall immediately
pay or discharge any decision or judgment rendered against it or the Project, together with all
costs, charges and interest.
(f) Maintenance. Owner/Developer shall at all times maintain the Project in
good repair and working order, reasonable wear and tear excepted, and in a safe and sanitary
condition, and from time to time shall make all necessary and proper repairs, renewals and
replacements in order to keep the development in a good, safe and sanitary condition.
3. Occupancy and Rent Restrictions. Owner/Developer hereby represents, warrants,
and covenants as follows:
(a) Occupancy by Very Low- and Low -Income Households.
Owner/Developer agrees to exert diligent efforts to see that the Project provides residential rental
housing, the requisite number of which shall be rented and occupied solely by Senior By Design,
Very Low- and Low -Income Households during the Term of this Agreement. Attached hereto as
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Exhibit "B" is a listing of the number of Units within the Project and the number of bedrooms in
each Unit. If, at any time during the Term of this Agreement, less than the required number of
Units are rented to and occupied by Very Low- and Low -Income Households, Owner/Developer
agrees to market the available Units in the Project only for rent to households which meet the
target household income category necessary to bring the Project into compliance with the
requirements of the Agreement, until the required number of Units in the Project are rented to
and occupied by the requisite number of Very Low- and Low -Income Households. The
marketing requirements set forth in this subsection (a) above shall apply regardless of the reason
for less than the required number of Units being rented to and occupied by Very Low- and Low -
Income Households at any given time during the Term of this Agreement, including without
limitation where such situation exists as the result of income increases of any tenant who may at
one time have qualified for the targeted household income category.
(b) Allowable Rent. The rent payable for each of the 50% Units shall be
affordable to households with incomes fifty percent (50%) or less of the County median incomes
adjusted for imputed household size, as determined by HUD. The rent payable for each of the
60% Units shall be affordable to households with incomes sixty percent (60%) or less of the
County median incomes adjusted for imputed household size, as determined by HUD. The rent
payable for each of the 80% Units shall be affordable to households with incomes eighty percent
(80%) or less of the County median incomes adjusted for imputed household size, as determined
by HUD. The AHEP requires that rental rates shall be equivalent to the California Tax Credit
Allocation Committee (CTCAC) 50% income level rental rates for Santa Clara County on Very
Low -Income Units. Rent for any Unit may only be increased one (1) time per year, and the Rent
levels following an increase, or upon a new occupancy, shall not exceed the applicable Rent
levels required pursuant to this Subsection (b). A tenant shall not be required to pay a cleaning
and/or security deposit totaling in the aggregate more than the monthly Rent for a Unit plus an
allowable pet deposit.
(c) Effect of Increase in Income. City reserves the right to review all
documents and materials related to tenant eligibility, and to verify the continuing eligibility of all
tenants and prospective tenants. All prospective tenants shall have their eligibility verified by
the Owner/Developer prior to rental of the Unit. Owner/Developer shall re -certify tenant
incomes annually thereafter.
(d) Advertising and Outreach. Owner/Developer shall advertise the existence
and terms of this rental program to the general public, coordinate specific outreach efforts to
Very Low- and Low -Income Households through cooperation with social service agencies, City
agencies, and other entities serving such Very Low- and Low -Income Households, and accept
applications from prospective tenants. Owner/Developer shall keep a list of all qualified tenants,
and shall make this list, along with all relevant financial data pertaining to prospective tenants,
available to City upon request. All tenants shall be selected off of this list. Owner/Developer
shall provide the City with a detailed outreach and advertising plan acceptable to City not less
frequently than annually during the Term of this Agreement, in order to insure that the housing
needs for Very Low- and Low -Income Households are met.
got
(e) Compliance with A/S Permit. Rental of the Units within the Project shall
be subject to and shall comply with the criteria for occupancy standards set forth in the A/S
Permit, as the same may be amended from time to time. No deviation from such criteria for
occupancy standards shall be allowed except as expressly agreed to by the City on application of
Owner/Developer, determined in City's sole discretion.
4. Income Certification and Reporting.
(a) Tenant Certifications.
(i) During any period that income and household size and
composition certifications from each tenant and household are required to be submitted to any
federal, state and/or county agencies under the terms of any loan from such agencies recorded
against the Project, Owner/Developer shall submit copies of those certifications to City at the
same time that submittal of such certifications are required to be made to the applicable federal,
state and/or county agencies.
(ii) During any period when income and household size and
composition certifications from each tenant and household are not required to be submitted to
any federal, state, and/or county agencies under the terms of any loans from such agencies
recorded against the Project, the requirements of this subsection (ii) shall apply. Immediately
prior to initial occupancy by such tenant household and annually thereafter, Owner/Developer
shall obtain income and household size and composition certifications by each tenant household
obtained in such form required by City from time to time. Owner/Developer shall obtain
updated forms for each tenant household on request by the City, but in no event less frequently
than once a year. Owner/Developer shall verify that the income information provided by an
applicant or occupying household in an income certification is accurate by taking one or more of
the following steps as part of the verification process; (1) obtain pay stubs for the three (3) most
recent pay periods; (2) obtain an income tax return for the most recent tax year; (3) obtain an
income verification form from the applicant's current employer; (4) obtain an income
verification form from the Social Security Administration and/or the California Department of
Social Services if the applicant receives assistance from either of such agencies; or (5) if the
applicant is unemployed and has no such tax return, obtain another form of independent
verification. Copies of tenant income certifications and documents verifying income shall be
maintained during the entire occupancy of a Unit by a household and for a period of not less than
five (5) years thereafter and shall be available to the City within five (5) days after request.
(b) Annual Report to City. Each year the Owner/Developer shall submit an
annual report to the City on a form to be provided by the City, except that to the extent that an
annual report containing the information required by this subsection (b) below is required to be
submitted to any federal, state and/or county agencies under the terms of any loans from such
agencies recorded against the Project, the annual report to be submitted to the City shall be on
the same forms as is required to be submitted to such federal, state and/or county agencies.
The annual report shall include for each Unit, the Rent and the income and family size
and composition of the household occupying the Unit. The report shall also state the date the
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tenancy commenced for each Unit. The income and household size and composition information
shall be as supplied by each tenant household in the certification form required by Section 4(a)
above. A true copy of each such form, signed by the tenant, shall be attached to the
Owner/Developer's annual report to the City. For each calendar year during the Term, an annual
report shall be filed with the City not later than September 30 of the following calendar year.
(c) Additional Information. The Owner/Developer shall provide to the City
any additional information required by the laws of the City, the State of California and the
United States, as the same may be amended from time to time.
(d) Lease. To the extent not in conflict with the requirements of any loan to
which this Agreement has been expressly subordinated by written agreement of the City, the
provisions of this subsection (d) shall apply. Owner/Developer shall include in leases and rental
agreements for all Units, provisions which authorize Owner/Developer to immediately terminate
the occupancy of any individual who misrepresented any fact material to the household's
qualification as a Very Low- or Low -Income household. Each lease or rental agreement shall
also provide that the household is subject to annual certification in accordance with Section 4(a)
above. Owner/Developer shall specifically refer to this Agreement in any lease of a Unit and to
any purchase and sale contract with respect to any portion of the Project, provided that failure to
do so shall not invalidate or otherwise affect the effectiveness of this Agreement. Every grant
deed for all or any portion of the Project shall specifically state that the grant is made subject to
all of the terms and conditions set forth in this Agreement, provided that Owner/Developer's
failure to comply with these requirements shall not invalidate or otherwise affect the
effectiveness of this Agreement.
(e) Cooperation. City acknowledges and agrees that Owner/Developer will be
obtaining financing for the Project with assistance from the California Tax Credit Allocation
Committee, California Housing Finance Agency, California Municipal Finance Authority, Santa
Clara County, and other state or federal housing agencies, which financing will be secured by
deeds of trust and/or regulatory agreements to be recorded prior to the lien of this Agreement. In
addition, the City agrees to subordinate this Agreement to the lien of the deed of trust and
regulatory agreement required in connection with the Owner/Developer's receipt of Multi -family
Housing Program financing from the State Department of Housing and Community
Development.
5. Indemnification. The Owner/Developer hereby covenants and agrees that it shall
defend, indemnify, and hold harmless, through counsel approved by City (which approval will
not be unreasonably withheld), the City and the City's officers, members, commissioners,
directors, officials, employees, and agents (collectively, the "Indemnified Parties"), from and
against any and all claims arising directly or indirectly from this Agreement and the construction,
ownership, operation or management of the Project; and all reasonable costs and counsel fees
incurred by the Indemnified Parties in defense of such a claim, or in order to assert its rights
under this Section 5, except to the extent such claims arise from the sole negligence or willful
misconduct of an Indemnified Party.
6. Term. This Agreement shall become effective upon its execution and delivery
and shall remain in full force and effect for the Term. This Agreement shall bind any successor,
heir or assign of Owner/Developer, whether a change in interest occurs voluntarily or
involuntarily, by operation of law or otherwise, with or without the approval of the City, except
as expressly released by the City. This Agreement shall inure to the benefit of the City and its
successors.
7. Covenants to Run with the Land. The City and Owner/Developer hereby declare
their express intent that the covenants and restrictions set forth in this Agreement are covenants
running with the land, and that the covenants shall be binding upon all successors in title to the
Project and Property or any portion thereof for the Term hereof. Each and every contract, deed
or other instrument hereafter executed covering or conveying the Project or any portion thereof
shall be held conclusively to have been executed, delivered and accepted subject to such
covenants and restrictions, regardless of whether such covenants and restrictions are set forth in
such contract, deed or other instrument.
The Owner/Developer and the City hereby declare their understanding and intent that:
(a) The covenants and restrictions contained in this Agreement shall be
covenants running with the land pursuant to California Civil Code section 1460 et seq.; and
(b) The burden of the covenants and restrictions set forth in this Agreement
touch and concern the Project in that the Owner/Developer's legal interest in the Property and all
improvements thereon may be rendered less valuable thereby; and
(c) The benefit of the covenants and restrictions set forth in this Agreement
also touch and concern the Project by enhancing and increasing the enjoyment and use of the
Project and Units by Very Low- and Low -Income Households, furthering the public purpose for
which exemption from the RDO was granted to Owner/Developer.
Notwithstanding the foregoing, all covenants and restrictions contained herein without
regard to technical classification or designation shall be binding upon the Owner/Developer and
its successors in interest for the benefit of the City, and such covenants and restrictions shall run
in favor of City for the entire Tenn, without regard to whether the City is an owner of any land
or interest therein to which such covenant and restrictions relate.
8. Uniformity, Common Plan. The covenants and restrictions set forth in this
Agreement shall apply uniformly to all Units, in order to establish and carry out a common plan
for the use of the Property.
9A. Enforcement by the Citx. If the Owner/Developer defaults in the performance of
any of the Owner/Developer's obligations under this Agreement, City shall have the right to
pursue any or all of the following actions, or any other remedy provided by law or in equity:
(a) Action to Compel Performance. The City may bring an action at law or in
equity to compel the Owner/Developer's performance of its obligations under this Agreement
0
and/or to prevent the violation of the terms and conditions of this Agreement by
Owner/Developer.
(b) Action for Damages. The City may bring an action to collect damages
from the Owner/Developer due to Owner/Developer's default.
(c) All Remedies Available and Cumulative. City shall have the right to
exercise all available rights and remedies, and to maintain any action at law or suits in equity or
other proceedings, including without limitation, specific performance, to enforce the terms,
covenants and restrictions of this Agreement. No delay in enforcing the provisions hereof as to
any breach or violation shall impair, damage or waive the right of the City to enforce the
provisions hereof in the future for any continuing or new breach or violation of any of the terms,
covenants or restrictions contained in this Agreement. All rights and remedies, including
without limitation those set forth in this Section 9A above, of any party legally entitled to
enforce this Agreement shall be cumulative and the exercise of any such right or remedy shall
not impair or prejudice and shall not be a waiver of the right to exercise any other such rights and
remedies.
9B. Enforcement by GLC. Owner/Developer and City agree that GLC is a third -party
beneficiary to this Agreement with full right, power and authority, but without any obligation, to
enforce the terms and conditions of this Agreement; provided, however, that GLC's sole and
exclusive remedy as to the City would be injunctive relief (and in no event would GLC be
entitled to recover monetary damages, including attorney's fees).
10. Lienor's Remedies. The provisions of this Agreement do not limit the right of any
obligee to exercise any of its remedies for the enforcement of any pledge or lien upon the
Property; provided, however, that in the event of any foreclosure, under any mortgage, deed of
trust or other lien or encumbrance, or a sale pursuant to any power of sale included in any such
mortgage or deed of trust, or in the case of a deed in lieu of foreclosure, the purchaser (or other
transferee) and their successors in interest and assigns and the Property shall be, and shall
continue to be, subject to all of the covenants and restrictions set forth in this Agreement. The
provisions of this Section 10 shall not apply with respect to any loan to which this Agreement
has been expressly subordinated pursuant to a separate written instrument executed by City.
Notwithstanding the foregoing, in the event of a foreclosure, deed in lieu of foreclosure, or other
involuntary transfer of the Project, all provisions of this Agreement shall be modified to provide
that one hundred fifty six (156) of the Units shall be available to and occupied by households
whose gross income does not exceed 80% of county median income adjusted for family size at
rents that are affordable to households whose income does not exceed 80% of County median
income for Santa Clara County, adjusted for imputed household size, as determined by HUD.
11. Right of Inspection. City shall have the right from time to time during the Term
of this Agreement, and for a period of five (5) years thereafter, upon giving Owner/Developer
reasonable notice, to examine and make copies of all books, records or other documents of the
Owner/Developer which pertain to the Project. All such books, records and other documents
-10-
pertaining to the Project shall be maintained at the office of the Owner/Developer or
management agent. All such books, records and documents shall be maintained by
Owner/Developer for a period of not less than five (5) years, or such longer period as required by
this Agreement.
12. Attorneys' Fees and Costs. In any action brought to enforce or interpret this
Agreement, the prevailing party shall be entitled to all costs and expenses of suit, including
reasonable attorneys' fee.
13. Recording and Filing. City and Owner/Developer shall cause this Agreement and
all amendment and supplements to it, to be recorded in the Official Records, at
Owner/Developer's cost.
14. Governing. This Agreement shall be governed by and construed in
accordance with the laws of the State of California without regard to the conflict of laws
provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all
disputes arising hereunder shall be in State and Federal courts located in Santa Clara County,
California.
15. Amendments. Except as otherwise provided herein, the following shall apply:
This Agreement shall be amended only by a written instrument executed by the parties hereto or
their successors in title, and duly recorded in the Official Records. The City and its successors
and assigns, on the one hand, and the Owner/Developer and its successors in interest and assigns,
on the other, shall have the right to consent and agree to changes in, or to eliminate in whole or
in part, any of the covenants or restrictions contained in this Agreement 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 Property. This
Agreement shall not be amended, modified or terminated except upon the written consent of the
City and upon the recordation of an amendment hereto duly executed and acknowledged by City
and Owner/Developer. Whenever any approval, amendment, request or other action by the City
is required or permitted under this Agreement, such action may be given, made or taken by the
City Administrator, or his designee, in his/her discretion without further approval by the City
Council and such action shall be in writing. The City Administrator is authorized, in his or her
sole and absolute discretion to (i) approve non -material modifications to the terms of the
instrument and agreements to be executed to implement this Agreement, and (ii) approve
requests by the Owner/Developer for reasonable extensions of time deadlines set forth in this
Agreement. Amendments to the Agreement authorized by the City Administrator shall not
reduce the Term or affect the affordability requirements, number of Units or otherwise affect the
restrictions and/or covenants for affordability. Notwithstanding any other provision of this
Agreement, City and Owner/Developer agree not to terminate, rescind or modify this Agreement
in any manner that would reduce the number of affordable units required under this Agreement,
materially change the terms and conditions set forth herein applicable to the affordable units or
revise Recitals C and D and Sections 9B and 15 of this Agreement without the prior written
consent of GLC, which consent shall not be unreasonably withheld.
16. Notice. All notices shall be given personally or by first class mail, postage
prepaid, addressed as shown on the signature page of this Agreement. Notices shall be deemed
given on the earlier of the date delivered or the second day following the date on which the same
have been mailed in the manner required by the prior sentence. Any of the parties may, by
notice given in the manner required by this Section 16, designate any further or different
addresses to which subsequent notices shall be sent.
17. Severability. If any provision of this Agreement (or portion or application
thereof) are held to be invalid or unenforceable by any court of competent jurisdiction, City and
Owner/Developer shall negotiate an equitable adjustment in the provisions of this Agreement
with a view toward effecting the purpose of this Agreement, and the validity and enforceability
of the remaining provisions or portions of this Agreement (or applications thereof) shall not in
any way be affected or impaired thereby.
18. Assignment. This Agreement may be assigned with the written consent of the
City, not to be unreasonably withheld, to an entity created by the Owner/Developer for the sole
purpose of developing, owning, managing and operating the Project in which the
Owner/Developer shall remain as general partner or managing partner. Notwithstanding any
other provision of this Agreement, no other duties or obligations of the Owner/Developer under
this Agreement may be assigned by the Owner/Developer without the prior written consent of
City, in the sole and absolute exercise of City's discretion.
19. Other Agreements. The parties acknowledge and agree that the operation of the
Units in accordance with this Agreement satisfies the Owner/Developer's obligations under the
A/S Permit, the AHEP and the RDO "Special Exceptions" Exemption, granted, with respect to
the income, rent and length of stay restrictions applicable to the Units. In the event of any
inconsistency between this Agreement and the foregoing documents and approvals with respect
to the income and rent restrictions applicable to the Project, this Agreement shall control.
20. Counterparts. The parties hereto agree that this Agreement may be executed in
counterparts, each of which shall be deemed an original, and said counterparts shall together
constitute one and the same Agreement, binding all of the parties hereto, notwithstanding that all
of the parties are not signatories to the original or the same counterparts. For all purposes,
including, without limitation, recordation, filing and delivery of this instrument, duplicate,
unexecuted and unacknowledged pages of the counterparts may be discarded and the remaining
pages assembled as one document.
IN WITNESS WHEREOF, the City and the Owner/Developer have executed this
Agreement by duly authorized representatives on the date and year shown below.
CITY OF ROY am uni ipal corporation
By:
Timmy TAri or-F5 Tr.
Its: Z-' C;+ r r
Address: 7�7�J �D5anl1A s}
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Approved As to Fo
G1111fi/u�sr9frUFA PUMM�
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7351 Rosanna Street
Gilroy, CA 95020-6141
PACIFIC WEST COMMUNITIES, INC., WHICH WILL DO
BUSINESS IN CALIFORNIA AS IDAHO PACIFIC WEST
COMMUNI ES, INC. AN IDAHO CORPORATION
By:
By: C I.E6 RooPe
Its: PRESIDENT r 80
COMMUNITIY RESOURCES, INC. AN IDAHO
NONPROFIT CORPORATION
By: L, ANDR6A e4AR1C
Its: gre Po l
-13-
GAI I ,anr IA &ILL-PURPOSR &CKNOWLIEDOMMY CIVIL CODE
w� � _ v.✓.w . .wNw .w
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of Srr1+0 I(Ara ) A� I1
On Afr1) 2, 2020 before me, SO,ndrA E I�aVG AIGfln 'eilbG
Date Here Insert Name and Title of the Offic r
personally appeared
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(>4} whose name,( is/a(e
subscribed to the within instrument and acknowledged to me that he//IJ dy executed the same in
his/Iber/tt)efr authorized capacity*), and that by his/hdr/tWir signature(sy on the instrument the person(s);
or the entity upon behalf of which the persons) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
SANDRA E. NAVA WITNESS my hand and official seal.
Notary Public - California
Santa Clara County Q J �` .
CommissionM12i2752 Signature > ��1 Z
tAy comm. Expires Nov 11,1012
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document Declarat',on Df ies-hr'C ,Ve (ovenaniS
Title or Type of Document: Re�ulator� !1nl-ternen} cnr) Document Date:-4 (- ,t) 2 f 20Z.0
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
rl nthac
Signer Is Representing:
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
ri nthPr•
Signer Is Representing:
02014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907
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GENERAL ACKNOWLEDGMENT
STATE OF IDAHO )
) ss
COUNTY OF A_)
On this day ofMAK&, in the year of 2020, before me, a notary public,
personally appeared L-�}ylGi{�PA0,gV�, 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.
[SEAL] Lzl�dj It
Notary OubliY
My commission expires:
KATIE CALLEN
COMMISSION #65899
NOTARY PUBLIC
STATE OF IDAHO
My COMMISSION EXPIRES 07/08/2021
EXHIBIT "A"
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Gilroy, County of Santa Clara, State of California,
described as follows:
PARCEL 3, AS SHOWN ON PARCEL MAP, FILED FOR RECORD
JUNE 49 201 % IN BOOK 923 OF MAPS, AT PAGES 50-54, OF COUNTY
RECORDS.
-1-
EXHIBIT "B"
IDENTIFICATION OF UNITS RESERVED FOR
LOW-INCOME HOUSEHOLDS
Number of Units
Number of Bedrooms
11
1 bedroom
17
2 bedroom
14
3 bedroom
The initial income levels of each household occupying a Unit shall not exceed sixty
percent (60%) of County median income.
IDENTIFICATION OF UNITS RESERVED FOR
VERY LOW-INCOME HOUSEHOLDS
Number of Units
Number of Bedrooms
22
1 bedroom
30
2 bedroom
24
3 bedroom
The initial income levels of each household occupying a Unit shall not exceed sixty
percent (50%) of County median income.
IDENTIFICATION OF UNITS RESERVED FOR
SENIOR BY DESIGN UNITS
Number of Units
Number of Bedrooms
34
1 bedroom
2
2 bedroom
2
3 bedroom
The income levels of each household occupying a Unit shall not exceed eighty
percent (80%) of County median income.