KB Home South Bay - Affordable Housing Agreement Oak CreekRECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Gilroy
Attn: Community Development Director
7351 Rosanna Street
Gilroy, CA 95020
DOCUMENT: 22687625 Pages: 50
Fees.... 172.00
Taxes...
Copies..
AMT PAID 172.00
REGINA ALCOMENDRAS RDE # 025
SANTA CLARA COUNTY RECORDER 8/26/2014
Recorded at the request of 9 :14 AM
County Agency
(Space Above For Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
Ownership Units, City of Gilroy
PROJECT NAME: Oak Creek Master Plan
City of Gilroy
Attention: Community Development Director
Gilroy, California 95020
RECITALS
A. The undersigned, KB Home South Bay, Inc., a California corporation, ( "Owner ")
is the owner(s), or entitlement entity of, and the developer of certain real property located at the
intersection of Monterey Road and Luchessa Avenue in the City of Gilroy ( "City "), County of
Santa Clara, State of California, more particularly described in the attached Exhibit A
( "Property").
B. The Vesting Tentative Map for the Property contemplates the authorization of
Two Hundred Thirty Seven (237) housing units and the Master Plan (hereinafter defined)
contemplates the construction of Two Hundred Thirty Six (236) housing units. Thirty-Six (36)
units shall be designated and provided as below - market -rate housing units, and which are
required to be offered for sale on terms and at prices deemed to be affordable to Low and
Moderate Income Households ( "Affordable Housing Units ") as further set forth herein.
C. On January 12, 2009, the City Council approved the Project as a Master Plan
development that conforms to the City General Plan Land Use and Zoning designation and
development standards of the Neighborhood District via Resolution No. 2009 -01 granting the
Owner Architectural and Site Approval (the Architecture & Site Approval) of a Planned Unit
Development (the "PUD ") Master Plan of the Property (the "Master Plan").
D. On April 18, 2011, the City Council approved Resolution 2011 -21 amending the
Master Plan/PUD approval to be consistent with a revised project as described in Tentative Map
approval TM 07 -11 and Architectural and Site Review approval A/S 10 -22.
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E. On December 10, 2012, the City Council approved the reinstatement of one
hundred seventy -eight (178) Residential Development Ordinance allocations via the Residential
Development Ordinance Performance Agreement (RD 06 -02) and 'awarded thirty -six (36)
Affordable Housing Units through AHE 07 -01, and amended the RDO Performance Agreement
to allow a Final Map deadline of April 18, 2015 by Resolution No. 2012 -54, granting the Owner
affordable housing unit allocations for the Property and approving the residential development of
the Property.
F. This Affordable Housing Agreement ( "Agreement ") is intended to, and shall be
deemed to, fulfill and satisfy the City's applicable policies, plans, and requirements regarding the
provision of affordable housing by this Project, including the requirement of the City's April 18,
2011 Resolution 2011 -22, that the parties enter into an affordable housing agreement prior to
issuance of building permits that complies with the City's "RDO Affordable Housing Exemption
Procedure of 2006" as amended , attached hereto as Exhibit B (the "Procedure "). The parties
acknowledge that this Agreement fulfills that requirement and other conditions of approval
requiring the provision of affordable housing.
G. Notwithstanding anything to the contrary herein or in the Procedure, until such
time that the City, with Owner- provided market data, determines market -rate home prices have
increased above affordable home prices, the requirements of the Procedure shall be waived, as
more particularly set forth in Agreement Section 5.
H. This Agreement is intended to, and shall be presumed to, conform to applicable
law, including Building Industry Assn. of Central California v. City of Patterson (2009) 171
Ca1.AppAth 886 and Palmer /Sixth Street Properties, L.P. v. City of Los Angeles (2009) 175
Cal.AppAth 1396.
The parties hereby agree as follows:
AGREEMENTS:
1. Recitals as Covenants: That the foregoing Recitals are true, and constitute
covenants and conditions of the parties' Agreement as set forth herein.
2. Provision and Sale of "Affordable Housing" Units: In consideration of certain
valuable land use approvals and economic benefits conferred and vested by the City upon the
Property, the Owner(s), for itself or themselves, its successors, heirs, grantees and assigns,
hereby obligates itself to designate, construct and offer the above - described Thirty -Six (36)
Affordable Units for sale and occupancy as below - market -rate, price - restricted, residential
dwelling units as further defined in City Municipal Code Section 30.2.20 (the City Zoning
Ordinance), in accordance with the provisions thereof and in accordance with the City's General
Plan Housing Element and the City's Neighborhood District Policy, and administrative
guidelines pertaining to the implementation and management of the Affordable Housing
Program and the Procedure as have been and may be amended from time to time, and as set
forth below in this Agreement or Exhibits thereto.
3. Designation of Affordable Housing Units: The Affordable Housing Units
called for by this Agreement shall include those residential dwelling units described herein (and
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more specifically described in the attached Exhibit - C — MARKET RATE AND BELOW
MARKET RATE HOUSING MIX), and which are hereby designated as Affordable Housing
Units, and those Affordable Housing Units shall be subject to the terms and conditions herein set
forth. In the event that the Property shall be subdivided, into condominium "airspace" units or
otherwise, the terms and conditions hereof shall apply exclusively to said designated Affordable
Housing Units, and not to any common area or other undesignated units or portions of the
Property.
4. Allocation of Affordable Housing Units by Reference to Median Household
Income Levels: The Master Plan and the Procedure require that the total of Thirty-Six (36)
Affordable Housing Units to be included in this Project, which shall be comprised as follows: (i)
Fourteen (14) units shall be affordable to households which meet the household income standard
of Sixty Percent (60 %) of Median Income of Santa Clara County; (ii) three (3) units shall meet
the household income standard of Seventy Percent (70 %) of Median Income of Santa Clara
County; (iii) two (2) units shall meet the household income standard of Eighty Percent (80 %) of
Median Income of Santa Clara County; (iv) three (3) units shall meet the household income
standard of Ninety Percent (90 %) of Median Income of Santa Clara County; (v) two (2) units
shall meet the household income standard of One Hundred Percent (100 %) of Median Income of
Santa Clara County; (vi) six (6) units shall meet the household income standard of One Hundred
Ten Percent (110 %) of Median Income of Santa Clara County; and, (vii) six (6) units shall meet .
the household income standard of One Hundred Twenty Percent (120 %) of Median Income of
Santa Clara County, as more particularly described in the attached Exhibit C - MARKET RATE
AND BELOW MARKET RATE HOUSING MIX, specifying the "affordability mix" of the lots
or units subject to the affordability requirements of this Agreement.
5. Waiver of Procedure. In accordance with condition no. 4 of the Final
Conditions of Approval of Architectural and Site Review approval A/S 10 -22, and
notwithstanding anything to the contrary herein or in the Procedure, until such time that the City
determines that market -rate home prices have increased above the Purchase Prices (as defined in
Agreement Section 6), the requirements of the Procedure, shall be waived and not apply to any
sale of residences at the Project. The City shall make its determination (the "Determination ")
with respect to each income category separately and based on the quarterly reports provided by
Developer pursuant to Agreement Section 8. Revenues allocable to lot premiums, options and
upgrades that are approved by the City, which approval shall not be unreasonably withheld, and
that are clearly itemized on the closing statements for units sales included in Developer's
quarterly reports, shall not be included in revenues for purposes of making each Determination.
Until the City has made the Determination with respect to an income category, each sale of a
residence that is below the applicable Purchase Price shall be deemed to be the sale of an
Affordable Housing Unit and shall be included in determining Owner's satisfaction of this
Agreement pursuant to Agreement Section 10. Consistent with the Procedure, Affordable
Housing Units and market -rate units shall be constructed with the same quality of design.
6. Restricted Purchase Prices for Affordable Housing Units: The purchase
prices for each of the designated Affordable Housing Units (the "Purchase Prices ") shall be as
set forth in Exhibit C - MARKET RATE AND BELOW MARKET RATE HOUSING MIX.
The Purchase Prices, when escrow closes, shall be at or lower than the Purchase Prices set forth
on Exhibit C - MARKET RATE AND BELOW MARKET RATE HOUSING MIX. The
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Purchase Prices initially set for the Affordable Housing Units shall be adjusted annually,
beginning on the first anniversary of the execution of this Agreement, to reflect changes in the
"annual interest rate," the median income as published by U.S. Department of Housing and
Urban Development ( "HUD ") for Santa Clara County (which is $105,500 as of the date hereof),
real property taxes and assessments, homeowner's dues for the Project, premiums for property
and mortgage insurance and a down payment equal to the FHA minimum requirement. In
making such annual adjustments to the Purchase Prices, using the methodology as depicted in
Exhibit C - MARKET RATE AND BELOW MARKET RATE HOUSING MIX, the "Interest
Rate" shall be adjusted using the FHA loan rate on 30 year fixed rate mortgages at the time of
the annual update.
7. Length of Restriction: The designated Affordable Housing Units shall remain
affordable housing for thirty (30) years from date of initial sale. Transfer of the Affordable
Housing Units shall be to Low, and Median Income households, and will be subject to the same
resale restrictions applied to the original sale. Transfers by gift, devise, or inheritance to an
existing spouse, surviving joint tenant, or a spouse as part of a dissolution proceeding, or in
connection with marriage shall not be considered a transfer for the purpose of this provision. A
deed restriction in the form of EXHIBIT D — FORM OF DEED RESTRICTION shall be
recorded at the initial closing of the sale of an Affordable Housing Unit that is not exempted
from compliance with the Procedure pursuant to Agreement Section 5 ,
8. Quarterly Reports: The Owner or successor developer of the residential units in
the Project will provide the City with a quarterly report of sales in the Project, once sales have
commenced, which shall include comparisons of market -rate sales prices and sales prices for
Affordable Housing Units of similar sizes and similarly situated within the Project. The quarterly
reports the Owner provides shall include sufficient market data for the City to determine whether
the market -rate sales home prices remain lower than affordable home prices of an Affordable
Housing Unit.
9. Marketing and Sale of Affordable Housing Units: At least sixty (60) days
prior to completion of an Affordable Unit, the Owner will provide the City's designated Housing
Officer with a written notice as to the unit available for purchase. Notice shall be addressed to:
Housing Officer, City of Gilroy, Gilroy, California. Owner shall provide the earliest dates that
Affordable Unit(s) may be shown to prospective purchasers, and include the Purchase Price as
calculated pursuant to Agreement Section 6, as well as information for sales contact. The City
shall have the right and opportunity, but no -duty, to refer prospective purchasers meeting the
appropriate household income standards to the designated sales agent for the Affordable Unit(s).
Owner shall exercise commercially reasonable diligence in offering each Affordable Unit for
sale on the terms and at the price provided by this Agreement for a period of at least eight (8)
months from the date of the City- issued Certificate of Occupancy or building final. The Owner
shall provide the City with a report on the marketing efforts for the Affordable Units, which shall
be just as extensive as marketing efforts for market rate units prior to the end of the eight (8)
month period. In the event that any particular Affordable Unit has not been sold, and escrow
closed, on the restricted terms of sale provided by this Agreement, within eight (8) months of the
City- issued Certificate of Occupancy or building final, the Owner shall be allowed to sell the
particular Affordable Housing Unit to any person, without regard to income levels. The
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Affordable Housing Unit, however, must be sold at no greater than the applicable Purchase
Price established hereby, and shall remain affordable, in accordance with the Procedure.
10. Satisfaction of Affordable Housing Obligations: The obligations of the Owner
or successor developer to construct and sell the Affordable Housing Units under this Agreement
or any other condition of approval shall be deemed to be fulfilled, satisfied, and discharged upon
Owner or successor delivering to the City a statement or statements in the form approved by the
HUD confirming the sale of at least 36 housing units in the Project at or below the prices and
values as established in conformity with Exhibit C to this Agreement. In the event that Owner
has attempted to sell one (1) or more designated Affordable Unit(s) at the price prescribed by
Agreement Section 6 and as required by Paragraph 9 above, for a period of at least eight (8)
months, without success, such unsold Affordable Housing Unit(s) shall be included in
determining Owner's satisfaction of this Agreement. The unsold Affordable Unit(s) must be
sold, however, at the applicable Purchase Price established hereby and shall remain affordable, in
accordance with the Procedure.
11. Enforcement: The City or its designee may specifically enforce the terms and
conditions contained herein; by any means or process, permitted by law. Administrative
guidelines pertaining to the City's affordable housing policies and requirements and further
information related to the administration and enforcement of the City Municipal Code provisions
pursuant to which the terms of this Agreement have been applied may be obtained from the
Housing Division, Department of Community Development, City of Gilroy, California.
12. Obligations Run With the Land/Release of Encumbrances: The terms and
conditions set forth herein are intended to run with the title to the subject Property and shall bind
Owner and all successors, heirs, grantees, and assigns. The City may, at its own election and
expense, record a memorandum of this Agreement against the Property. Any such recorded
encumbrance or other restriction referenced in this Agreement shall be deemed to become null
and unenforceable, and subject to cancellation, following the satisfaction of this Agreement as
provided in Agreement Section 10, and in any event no more than thirty (3 0) years from the date
of initial sale. At such time as the Owner has designated the Affordable Housing Units to be
sold, the City shall execute, deliver and cause to be recorded a release from this Agreement as to
all units and all portions of the Property that are not designated as Affordable Housing Units, and
such release shall be suitable for recording so as to remove any encumbrance related to this
Agreement from the undesignated portions of the Property. The City shall execute, deliver and
cause to be recorded (i) a release as to an Affordable Housing Unit upon the close of escrow for
each such Affordable Housing Unit and (ii) a Release as to all of the Property upon the
satisfaction of Owner's obligations under this Agreement pursuant to Agreement Section 10 .
13. Default by Owner: The faithful and prompt performance by the Owner of each
and every material term and condition contained herein is made an express condition precedent
to the duty of the City to perform any act in connection with this Agreement, and the failure,
neglect or refusal of the Owner to so perform shall constitute default of Owner, and the City, at
its election, may enforce the performance of any provision herein, or any right accruing to the
City or may pursue any remedy whatsoever it may have under applicable laws or the Codes,
Ordinances, Resolutions, Rules and Regulations of the City, in the event of any such default by
Owner. Notwithstanding anything to the contrary herein, neither party shall be in default unless
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the other party has first delivered to such party a written notice of the default, and the party
receiving such notice has not cured the default within thirty (30) days after receipt of the notice;
provided however, that if the default cannot reasonably be cured within such 30 -day period, then
such party shall have such additional reasonable time as may be necessary to cure the default
provided such party commences the cure within the thirty (30) -day period and diligently
prosecutes such cure to completion. None of the terms set forth herein neither is intended nor
shall be construed to prohibit, extend time periods, or otherwise regulate any foreclosure or
transfer of title occasioned by the default of the Owner. Any notice of default shall constitute a
notice of intent to sell by the Owner, and the City reserves the right to cure any such default in
order to preserve the agreed or designated Affordable Unit(s) in the City's Affordable Unit
program.
14. Foreclosure: In the event of foreclosure or transfer of deed in lieu thereof for an
Affordable Housing Unit, title to such Affordable Housing Unit shall be taken subject to these
restrictions.
15. No Liability of City Affordable Housing Program: The City, including all of
its elected and appointed officials, officers, attorneys, agents, employees, servants, and
volunteers shall have no liability to Owner or successor(s) and are hereby unconditionally and
forever released from any and all liability whatever in connection with the purchase and sale of
any Affordable Unit pursuant to this Agreement, and does not undertake any responsibility or
liability for any claim, demand, cause of action, damage, cost, expense, loss, or liability, in law
or in equity, of any kind and nature whatsoever, that in any way arises from or is in any way
connected to the execution of or performance of this Agreement except for the City's breach of
its obligations under this Agreement. Owner and City expressly acknowledge that each of them
intends the City and its Affordable Housing Program to be the beneficiary of such release.
16. Non- Discrimination: The Owner and all successors; heirs, grantees, and assigns
shall comply with Title VI of the Civil Rights Act of 1964 (P.L. 88 -352) and in accordance with
Title VI of the Act, no person in the United States shall, on the grounds of race, color, or national
origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to
discrimination under any program.
a. Federal Fair Housing laws prohibit discrimination in, the sale, rental, lease
or negotiation for real property based on race, color, religion, sex national origin, familial status,
and disability. California Fair Housing laws built on the federal laws and added marital status,
ancestry and "any arbitrary discrimination" as the protected categories under the law.
b. Fair Housing is defined by HUD in 24 CFR 570.904I(1) to mean the
ability of persons of similar income levels to have the same housing choices regardless of race,
color, religion; sex, handicap, familial status or national origin. Discrimination in the sale or
rental of housing is prohibited against these protected classes. Fair housing laws are intended to
further equal opportunity in housing, mortgage lending and purchase of mortgage insurance.
17. Indemnification and Hold Harmless: Owner shall defend (with counsel the
City selects), indemnify, and hold harmless the City, its elected and appointed officials; officers,
attorneys, agents, employees, servants, volunteers, and each of them, from any and all loss or
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damage and from any and all liability for any and all loss or damage, and from any an d all suits,
actions or claims filed or brought by any and all person or persons because of or resulting from
implementing the Agreement.
18. No Vesting of Rights: Performance by Owner of this Agreement shall not be
construed to vest Owner's rights with respect to any change in any zoning or building law or
ordinance.
19. Entire Agreement: This Agreement, including all recitals and exhibits hereto,
constitutes the entire agreement between the parties with respect to the subject matter hereof and
supersedes any and all prior or contemporaneous understandings, negotiations, representations,
promises and agreements, oral or written, by or between the parties, with respect to the subject
matter of this Agreement. No representations, inducements, promises, or agreements have been
made in connection with this Agreement by any party, or anyone acting on behalf of any party,
other than those expressly set forth herein.
20. Notices: Formal notices, demands, and communications to be given under this
Agreement by any party shall be in writing, and shall be personally delivered or sent by
registered or certified mail, postage prepaid, return receipt requested, or by Federal Express or
other courier service which provides a written receipt of delivery, or delivered or sent by
facsimile transmission to the addresses set forth below. The notices and other communications
shall be deemed received and effective upon: (i) if personally delivered, the date of delivery to
the address of the person to receive such notice; (ii) if mailed, the date of delivery or refusal to
accept delivery indicated in the certified or registered mail receipt; or (iii) if given by courier
service, on the date of delivery evidenced by the receipt for delivery provided by the courier
service; or (iv) if faxed, on the date and time shown on the fax confirmation sheet. Any notice,
request, demand, direction or other communication sent by fax must be confirmed within forty-
eight (48) hours by letter mailed or delivered in accordance with the foregoing.
Notice required to be given to City shall be addressed as follows:
City of Gilroy
Attention: Community Development Director
7351 Rosanna Street.
Gilroy, California 95020
With copies to:
William D. Ross, Special Counsel and City Attorney, City of Gilroy
Law Offices of William D. Ross 7351 Rosanna Street
400 Lambert Avenue Gilroy, California 95020
Palo Alto, California 94306
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Notice required to be given to Owner shall be addressed as follows:
KB Home South Bay, Inc.
Attn: Jeff McMullen
5000 Executive Parkway, Suite #125
San Ramon, CA 94583
With a copy to:
KB Home South Bay, Inc.
Attn: Lauren Boro, Esq.
5000 Executive Parkway, Suite #125
San Ramon, CA 94583
21. Waiver: No waiver of any provision of this Agreement shall be binding unless
executed in writing by the party making the waiver. No waiver of any provision of this
Agreement shall be deemed to constitute a waiver of any other provision, whether or not similar,
nor shall any waiver constitute a continuing waiver unless the written waiver so specifies.
22. Counterparts: This Agreement may be executed in counterparts, each of which
shall constitute an original and all of which, when taken together, shall constitute one and the
same instrument.
23. Governing Law: This Agreement is entered into in and shall be governed by and
construed in accordance with the laws of the State of California.
24. Choice of Law and Venue: This Agreement shall be administered and
interpreted under the laws of the State of California. Jurisdiction of litigation arising from this
Agreement shall be in California and venue shall be in Santa Clara County, California.
25. Severability: If any term or provision of this Agreement is ever determined to be
invalid or unenforceable for any reason, such term or provision shall be severed from this
Agreement without affecting the validity or enforceability of the remainder of this Agreement.
26. Interpretation: Section headings in this Agreement are for convenience of
reference only and shall not affect the meaning or interpretation of any provision of this
Agreement. As used herein: (a) the singular shall include the plural (and vice versa) and the
masculine or neuter gender shall include the feminine gender (and vice versa) where the context
so requires; (b) locative adverbs such as "herein," "hereto," and "hereunder" shall refer to this
Agreement in its entirety and not to any specific section or paragraph; (c) the terms "include,"
"including," and similar terms shall be construed as though followed immediately by the phrase
"but not limited to;" and (d) "shall" is mandatory and "may" is permissive. The parties have
jointly participated in the negotiation and drafting of this Agreement and this Agreement shall be
construed fairly and equally as to the parties, 'without regard to any rules of construction relating
to the party who drafted a particular provision of this Agreement.
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27. Exhibits and Recitals: The exhibits attached to and referenced in this
Agreement and the Recitals at the beginning of this Agreement are incorporated and made a part
of this Agreement.
28. Assignment: No party to this Agreement may assign or transfer any right or
obligation pursuant to this Agreement without the prior written consent of all parties, which
consent shall not be unreasonably withheld or delayed. Any attempt or purported assignment or
transfer of any right or obligation pursuant to this Agreement without all parties' written consent
shall be void and of no effect. Upon the sale or transfer of all or a portion of the Property by
Owner, Owner shall be fully released of all obligations and liabilities under this Agreement
affecting the Property, or portion thereof, so transferred including, without limitation, the
obligation to construct, market and sell any Affordable Housing Units that are required to be
constructed on the Property so transferred. In the event of any such sale or transfer of a portion
of the Property, Owner's obligations hereunder shall be deemed satisfied upon the construction,
marketing and sale of the Affordable Housing Units contemplated to be constructed on the
portion of the Property retained by Owner and any breach or default by a transferee of a portion
of the Property shall not constitute a breach or default by Owner hereunder. Any assignee or
transferee shall assume liability for the contractual performance of this Agreement with respect
to the portion of property transferred or assigned, including but not limited to the performance of
or provision of Affordable Housing Units contained in this Agreement and its exhibits applicable
to the portion of the property transferred. Any transferee of the Property or a portion of the
Property shall have no liability as to the performance or satisfaction of this Agreement or any
obligation to provide any Affordable Housing Units as to the portion of the Property retained by
the Owner, or as to the performance of this Agreement or the construction, marketing or sale of
any Affordable Units that are required to be constructed on any portions of the Property other
than that which is transferred to the transferee, or any liability for any contractual performance
or provision of Affordable Housing Units pursuant to any other agreement between the Owner
and the City or others which is not expressly accepted and assumed by the transferee in writing
and signed by the transferee. Any agreement between Owner and an assignee or transferee shall
provide for the number of Affordable Housing Units to be provided.
29. Successors and Assigns: This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective heirs, personal and legal representatives,
successors and assigns. All references herein to "City" and "Owner" shall include their
respective heirs, representatives, successors and assigns. The obligations of the Owner under this
Agreement shall be the joint and several obligations of each and all of the parties comprising
Owner, if Owner consists of more than one individual and/or entity.
30. Further Actions: Each of the parties agrees to execute and deliver all further
documents and to take all further actions reasonably necessary or appropriate to effectuate the
purposes of this Agreement.
31. No Partnership or Third Party Beneficiary: This Agreement and any further
documents or actions executed by the parties in connection herewith shall not create nor be
deemed under any circumstances to create any joint venture or partnership between the parties or
to render the parties joint venturers or partners. This Agreement is made solely for the benefit of
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the parties to this Agreement and their respective successors and assigns, and no other person or
entity shall have or acquire any rights or remedies under this Agreement.
32. References to Laws: All references in this Agreement to laws shall be
understood to include such laws as they may be subsequently amended or recodified, unless
otherwise specifically provided.
33. References to Days: All references to days herein are to calendar days, including
Saturdays, Sundays and holidays, except as otherwise specifically provided. Unless otherwise
required by a specific provision of this Agreement, time hereunder is to be computed excluding
the first day and including the last day.
34. Time of Essence: Time is of the essence of this Agreement and of every part of
this Agreement. No extension or variation of this Agreement will operate as a waiver of this
provision.
35. Term: This Agreement shall become effective only when signed by the parties,
and the term of this Agreement shall continue in perpetuity, unless otherwise agreed in writing
by all parties.
36. Financing. Owner shall be responsible for providing all funds and/or financing
for the construction of the Affordable Housing Units.
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5814408.3 a05/0 +W4
"O WI`1ER"
KB Homcs South Bay, Inc.
A California corporation
By
Name:.
Iis: 4t/r7
Date
to °`/' /`/
CITYjQlffROY
By:
Tom f glund, Ci M na er Date
A'
s, City Clerk
APPROVED AS TO FORIM:
William D. Ross, Special City Attorney
26. 441030734 -0001
5814408.3 a05J%1IW1.1 - 11-
"OWNER"
KB Homes South Bay, Inc.
A California corporation
By:
Name:
Its:
CITY OF GILROY
Un
Date
Tom Haglund, City Manager Date
ATTEST:
Shawna Freels, City Clerk
APPROVED AS TO FORM:
k�ll" '�� 44e�
William D. Ross, Special City Attorney
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Affix Notarization of Signatures
State of California )
County of 10 aYI� CIG� )
On �� 1 �� before me, ��-
' �� C aersonN ame and itk ol'tlx otlicer) '
Notary Public personally appeared V� >���
who proved to me on the basis of satisfactory evidence to bet whose name(
subscribed to the within instrument and acknowledge me that lte ttmy executed the same
i hi h it authorized capacity(iW, and that by his / eth�itir signature(4on the instrument
the person , or the entity upon behalf of which the person(9) 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.
WITNESS my hand and official seal.
Sign
ature Z"b&::2
State of California
County of
On
before me,
(Seal)
INGA ALONZO
Com dulon * 1931989
Notary Pubk - CWOMIa
Santa Clara County
my Comm. e: r 15, 2015
(insert name and title or the ot'ficed
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she /they executed the same
in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) 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.
WITNESS my hand and official seal.
Signature
22644 00-734-0001
5314408.? a05 1111) 14 - 1 -
(Seal)
W11110111.M
KB Homes South Bay, Inc.
A California) corporation
By: 11 f
Name: v 3—P U, �0 c04, -, tr
Its: S vD
CITY OF GILROY
Date
Tom Haglund, City Manager Date
ATTEST:
Shawna Freels, City Clerk
APPROVED AS TO FORM:
William D. Ross, Special City Attorney
2644/030734 -0001
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� -30- iy
APPROVED,AS TO FO
Lauren
2644/030734 -0001
5814408.3 a05/4119/14
KB Home South Bay, Inc.
-12-
Affix Notarization of Signatures
State of California )
County of 6px4 &)sfgL. )
On ,-TL 3 o . ao / U , before me, S6WA- L. R6bhv'nS ,
(insert name and title of the officer)
Notary Public, personally appeared Se "P. /'1'1Cl' Al jot, ,
who proved to me on the basis of satisfactory evidence to be the person( -&) whose name(o) is /me
subscribed to the within instrument and acknowledged to me that he /may executed the same
in his /hefAheir authorized capacity4es), and that by his/ke;4hoir signature(-&) on the instrument
the person(s), or the entity upon behalf of which the person(..) 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.
WITNESS my hand and official seal.
i,ignature
State of California
County of
(Seal)
SARA L. ROBBINS
Commission #F 2002126
r Notary Public - California D
Contra Costa County
M Comm. Expires Jan 22, 2017
On , before me,
(insert name and title of the officer)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she /they executed the same
in his/her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) 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.
WITNESS my hand and official seal.
Signature (Seal)
2644/030734 -0001
5814408.3 05/'4B/14 -13-
Attachments: —
a. Exhibit A — LEGAL DESCRIPTION OF THE PROPERTY AND MAP CONFIRMING
LEGAL DESCRIPTION
b. Exhibit B — CITY AFFORDABLE HOUSING EXEMPTION PROCEDURE OF 2006
C. Exhibit C — MARKET RATE AND BELOW MARKET RATE HOUSING MIX
d. Exhibit D - FORM OF DEED RESTRICTION
2644/0307340001
5814408.3 05 /041TM -14-
EXHIBIT — A
LEGAL DESCRIPTION
Real property in the City of GILROY, County of SANTA CLARA, State of CALIFORNIA,
described as follows:
THE SOUTHEASTERLY PART OF LOT 5 AS SHOWN ON THAT CERTAIN MAP
ENTITLED "MAP OF MASSEY THOMAS' SENIOR SUBDIVISION OF LAS ANIMAS
RANCH LOT NO. 15" WHICH WAS FILED IN THE OFFICE OF THE RECORDER OF THE
COUNTY OF SANTA CLARA, STATE OF CALIFORNIA ON APRIL 15, 1893 IN BOOK
"G" OF MAPS, PAGE 59, AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT A BURIED %2" PIPE AT THE NORTHEASTERLY CORNER OF THE
ABOVE MENTIONED LOT 5, AT THE INTERSECTION OF THE WESTERLY LINE OF
MONTEREY ROAD WITH THE SOUTHERLY LINE OF THE THOMAS LANE, FROM
WHICH PIPE, THE BURIED GRANITE MONUMENT AT THE INTERSECTION OF THE
WESTERLY LINE OF MONTEREY ROAD AND THE CENTER LINE OF THE THOMAS
LANE BEARS N. 180 00'W. 20.94 FEET; THENCE FROM SAID POINT OF BEGINNING
WESTERLY ALONG THE SOUTHERLY LINE OF THE THOMAS LANE N. 890 02' WEST
1863.80 FEET TO A' /z INCH PIPE; THENCE AT RIGHT ANGLES SOUTHERLY S. 00
58'W. 180 FEET TO A %2 " IRON PIPE; THENCE AT RIGHT ANGLES WESTERLY AND
PARALLEL WITH THE THOMAS LANE, N. 89° 02'W., 412.34 FEET, MORE OR LESS,
TO A POINT IN THE CARNADERO CREEK ON THE LINE BETWEEN LOTS 5 AND 9, AS
SHOWN ON THE ABOVE MENTIONED MAP (AT 265 FEET ON THIS COURSE AND ON
THE BANK OF THE CARNADERO CREEK, IS A' /2 INCH PIPE INSIDE A 2 INCH PIPE);
THENCE SOUTHERLY ALONG THE CHANNEL OF CARNADERO CREEK AND ALONG
THE LINE DIVIDING LOT 5 FROM LOTS 9 AND 10, SOUTH 520 00' EAST 304.51 FEET,
MORE OR LESS; AND S. 150 30'E. 348.90 FEET, MORE OR LESS, TO A COMMON
CORNER TO LOTS 5, 6 IN THE EASTERLY LINE OF LOT 10 OF THE ABOVE
MENTIONED SUBDIVISION; THENCE EASTERLY ALONG THE LINE BETWEEN LOTS
5 AND 6, S. 89° 09'E., 1093.62 FEET, MORE OR LESS, TO A BURIED %2 INCH PIPE
(BACK 1049.40 FEET ON THIS COURSE, AND ON THE BANK OF THE CARNADERO
CREEK IS THE 4" BY 4" REDWOOD WITNESS POST), SAID LAST MENTIONED 1/2
INCH PIPE BEING S.720 00'W. 1021.02 FEET FROM A Y21NCH PIPE AT THE EASTERLY
COMMON CORNER FOR SAID LOTS 5 AND 6; THENCE
EASTERLY ON THE LINE BETWEEN LOTS 5 AND 6, N. 720 00' E. 1021.02 FEET TO A
BURIED %2 INCH PIPE IN THE WESTERLY LINE OF THE AFOREMENTIONED
MONTEREY ROAD, SAID PIPE BEING ALSO THE COMMON CORNER BETWEEN
LOTS 5 AND 6; THENCE NORTHERLY ALONG THE WESTERLY LINE OF THE SAID
MONTEREY ROAD, N. 180 00'W. 384.78 FEET TO THE POINT OF BEGINNING,
SURVEYED AND MONUMENTED ON FEBRUARY 19, 1941, AT THE REQUEST OF MR.
LEON THOMAS, BY W. J. HANNA, GILROY REGISTERED CIVIL ENGINEER NO.
3704. EXCEPTING THEREFROM THAT CERTAIN PARCEL CONVEYED TO THE
PACIFIC TELEPHONE AND TELEGRAPH COMPANY, A CORPORATION BY DEED
2644/030734.0001
5814408.3 a05/419/14
RECORDED JANUARY 12, 1954 IN BOOK 2792, PAGE 326 OF OFFICIAL RECORDS,
BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE SOUTHERLY LINE OF THOMAS ROAD DISTANT
THEREON N. 880 57' 15 W. 125.04 FEET FROM THE INTERSECTION THEREOF WITH
THE ORIGINAL WESTERLY LINE OF MONTEREY ROAD AS SHOWN ON SAID MAP,
AND RUNNING THENCE ALONG THE SOUTHERLY LINE OF THOMAS ROAD N. 880
57' 15 W. 54.75 FEET; THENCE AT RIGHT ANGLES S. 1'02'45'W. 35.00 FEET;
THENCE PARALLEL WITH THE SOUTHERLY LINE OF THOMAS ROAD S. 880 57' 15 E.
104.27 FEET, MORE OR LESS, TO THE WESTERLY LINE OF THE NEW STATE
HIGHWAY IV- SCI -2C AS CONSTRUCTED IN 1951; THENCE NORTHWESTERLY
ALONG SAID WESTERLY LINE OF SAID STATE HIGHWAY 1.45 FEET; THENCE
ALONG A CURVE TO THE LEFT WITH A RADIUS OF 50.00 FEET FROM A TANGENT
THAT BEARS N. 180 04' 01.3 THROUGH AN ANGLE OF 700 53' 13.7 SECONDS FOR A
DISTANCE OF 61.86 FEET TO THE POINT OF BEGINNING.
ALSO EXCEPTING THEREFROM THAT CERTAIN PARCEL CONVEYED TO HOME
GAS AND APPLIANCE INCORPORATED, A CORPORATION BY DEED RECORDED
JULY 15, 1955 IN BOOK 3225, PAGE 285 OF OFFICIAL RECORDS, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT A 6" BY 6" CONCRETE MONUMENT SET IN THE SOUTHWESTERLY
LINE OF THE MONTEREY ROAD (STATE HIGHWAY IV -SC 1 -2C) AS SAID LINE WAS
ESTABLISHED BY PARCEL 6- SECOND IN THAT CERTAIN FINAL ORDER OF
CONDEMNATION ENTERED IN THE SUPERIOR COURT OF THE STATE OF
CALIFORNIA IN AND FOR THE COUNTY OF SANTA CLARA IN THAT CERTAIN
ACTION ENTITLED THE PEOPLE OF THE STATE OF CALIFORNIA ACTING BY AND
THROUGH THE DEPARTMENT OF PUBLIC WORKS, PLAINTIFF VS. G. BARBERI &
SON, INC. A CALIFORNIA CORPORATION, ET AL, DEFENDANTS" CASE NO. 73965, A
CERTIFIED COPY OF WHICH ORDER WAS FILED FOR RECORD IN THE OFFICE OF
THE RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, ON
JUNE 17, 1954, IN BOOK 2897 OF OFFICIAL RECORDS, AT PAGE 362; SAID
MONUMENT BEING AT STATION C13 528 +57.67 E.C.; RUNNING THENCE FROM SAID
POINT OF BEGINNING ALONG THE SOUTHWESTERLY LINE OF SAID HIGHWAY
SOUTH 170 58' 15 EAST 140.47 FEET TO AN IRON PIPE; THENCE LEAVING SAID
HIGHWAY LINE NORTH 880 57' 15 WEST 181.68 FEET TO AN IRON PIPE; THENCE
NORTH 10 02'45 EAST 198.00 FEET TO AN IRON PIPE IN THE SOUTHERN LINE OF
THOMAS ROAD, AS SAID ROAD IS SHOWN UPON THE MAP ABOVE REFERRED TO:
THENCE ALONG THE SOUTHERLY LINE OF THOMAS ROAD SOUTH 880 57' 15 EAST
23.00 FEET TO AN IRON PIPE AT THE NORTHWESTERLY CORNER OF THAT
CERTAIN PARCEL OF LAND DESCRIBED IN THE DEED FROM G. BARBERI & SONS,
INC. A CORPORATION TO PACIFIC TELEPHONE AND TELEGRAPH
COMPANY, A CORPORATION, DATED OCTOBER 30, 1953, RECORDED JANUARY 12,
1954, IN BOOK 2792 OF OFFICIAL RECORDS, PAGE 326, SANTA CLARA COUNTY
RECORDS; THENCE ALONG THE WESTERLY LINE OF LAND SO DESCRIBED IN THE
DEED TO SAID PACIFIC TELEPHONE AND TELEGRAPH COMPANY, SOUTH 1- 02'45
2644/030734-0001
5814408.3 a0510+19/14 -16-
WEST 35.00 FEET TO AN IRON PIPE AT THE SOUTHWESTERLY CORNER THEREOF;
THENCE ALONG THE SOUTHERLY LINE OF LAND SO DESCRIBED IN THE DEED TO
PACIFIC TELEPHONE AND TELEGRAPH COMPANY; SOUTH 88° 57' 15" EAST 102.47
FEET TO A 2" BY 3" STAKE AT THE SOUTHEASTERLY CORNER THEREOF ON THE
SAID LINE OF SAID HIGHWAY; THENCE ALONG THE SOUTHWESTERLY LINE OF
SAIDHIGHWAY SOUTHERLY ALONG A CURVE TO THE RIGHT WITH A RADIUS OF
19,917.00 FEETFOR A DISTANCE OF 31.99 FEET TO THE POINT OF BEGINNING.ALSO
EXCEPTING THEREFROM THAT CERTAIN PARCEL CONDEMNED TO THE STATE
OFCALIFORNIA BY FINAL ORDER OF CONDEMNATION RECORDED JUNE 17, 1954
IN BOOK 2897,PAGE 362 OF OFFICIAL RECORDS.ALSO EXCEPTING THEREFROM
THAT CERTAIN PARCEL CONVEYED TO THE SANTA CLARAVALLEY WATER
DISTRICT, A PUBLIC CORPORATION BY DEED RECORDED FEBRUARY 11, 1988IN
BOOK K443, PAGE 633 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
BEING A PORTION OF THE LANDS SHOWN AS LOT 5 ON THE MAP ENTITLED
"MASSEY THOMAS SUBDIVISION OF LAS ANIMAS RANCH, LOT NO. 15" FILED IN
BOOK "G" OF MAPS AT PAGE 59, AND DESCRIBED IN THE DEED RECORDED IN
BOOK B814 OF OFFICIAL RECORDS, AT PAGE 359, BOTH DOCUMENTS ARE IN THE
OFFICE OF THE RECORDER, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA,
TO WIT: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT; THENCE
ALONG THE SOUTHWESTERLY LINE OF SAID LOT N 15° 30' 00" W 348.9 FEET;
THENCE CONTINUINGALONG SAID LINE N 520 00'00" W 304.51 FEET, THENCE
LEAVING SAID LINE S 890 02'00 E,285.93 FEET; THENCE ALONG A CURVE TO THE
RIGHT, FROM A TANGENT WHICH BEARS S. 37-50'29" E., HAVING A RADIUS OF
900.00 FEET, THROUGH A CENTRAL ANGLE OF 220 20' 29 "FOR AN ARC DISTANCE
OF 350.94 FEET; THENCE S. 150 30' 00" E. 218.00 FEET TO THE GENERAL SOUTHERLY
LINE OF SAID LOT; THENCE ALONG SAID LINE N. 89° 02' 00" W 167.50
FEET TO THE POINT OF BEGINNING.ALSO EXCEPTING THEREFROM THAT
CERTAIN PARCEL CONVEYED TO THE CITY OF GILROY, AMUNICIPAL
CORPORATION BY DEED RECORDED AUGUST 13, 2004 AS DOCUMENT NO.
17949017 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS: BEING A PORTION OF THAT CERTAIN PARCEL OF LAND SHOWN AS
"LOT 5 -EMMA THOMAS TO G. BARBERI AND SONS INC." AS SHOWN ON THAT
CERTAIN RECORD OF SURVEY, WHICH WAS FILED IN THE OFFICE OF THE
RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA.ON
MARCH 22, 1941 IN BOOK 6 OF MAPS, PAGE 7 AND BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE NORTHWESTERLY BOUNDARY OF SAID "LOT 5 -
ET AL ", SAID BOUNDARY BEING ALSO THE SOUTHEASTERLY BOUNDARY OF
THAT CERTAIN PARCEL OF LAND SHOWN AS "PORTION OF LOT 5 TO BE
RETAINED BY EMMA E. THOMAS ", AS SHOWN ON SAID RECORD OF SURVEY, SAID
POINT BEING N890 02' 00" W 67.05 FEET FROM THE MOST SOUTHEASTERLY
CORNER OF SAID "PORTION OF LOT 5 TO BE RETAINED BY EMMA E. THOMAS
THENCE LEAVING SAID NORTHWESTERLY AND SOUTHEASTERLY BOUNDARY
2644/030734 -0001
5814408.3 45/4M4 -17-
S25 54' 19" E 129.55 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT, HAVING
• RADIUS OF 710.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE, THRU
• CENTRAL ANGLE OF 80 31' 15 ", AN ARC DISTANCE OF 105.59 FEET; THENCE S 170
23'04" E 147.54 FEET TO THE BEGINNING OF A CURVE TO THE LEFT, HAVING A
RADIUS OF 690.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE,
THROUGH A CENTRAL ANGLE OF 50 39'02", AN ARC DISTANCE OF 68.05 FEET;
THENCE S 230 02'06" E 110.69 FEET TO A POINT ON THE LINE BETWEEN LOTS 5
AND 6 AS SHOWN ON THAT CERTAIN MAP ENTITLED "MAP OF MASSEY THOMAS
SENIOR SUBDIVISION OF LAS ANIMAS RANCH LOT NO. 15" AND RECORDED IN
BOOK "G" OF MAPS, PAGE 59 OF THE OFFICIAL RECORDS OF SAID COUNTY, LYING
DISTANT THEREON S 890 09' 00" E 51.08 FEET FROM THE INTERSECTION OF SAID
LINE WITH THE MOST SOUTHEASTERLY CORNER OF A PORTION OF LAND
DESCRIBED IN A GRANT DEED TO THE SANTA CLARA VALLEY WATER DISTRICT
IN BOOK K443 OF OFFICIAL RECORDS AT PAGE 633; THENCE N 890 09' 00" W 51.08
FEET ALONG SAID LINE BETWEEN LOTS 5 AND 6 TO SAID SOUTHEASTERLY
CORNER; THENCE LEAVING SAID LINE AND CORNER ALONG THE EASTERLY
BOUNDARY OF SAID PORTION OF LAND N 150 30'00" W 217.62 FEET TO THE
BEGINNING OF A CURVE TO THE LEFT AND HAVING A RADIUS OF 900.00'; THENCE
NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 220 20'29",
AN ARC DISTANCE OF 350.94 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID
PORTION OF LOT 5 TO BE RETAINED BY EMMA E. THOMAS AND THE MOST
NORTHEASTERLY CORNER OF SAID PORTION OF LAND; THENCE LEAVING SAID
CORNER ALONG SAID SOUTHERLY LINE S 890 02'00" E 59.37 FEET TO THE POINT
OF BEGINNING.
2644/03073"001
5814408.3 05/4�IW14 -18-
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GpNER'S STATEMENT
E HERE Y ME MAT E AE M OP HERS R E NNE SOME APR, TDE CAM; �pa1p1A,ID ro M
PEAL' P4OPEA7T OPSIMFD M SUBOIMSIM IIDSM OI TH6 MA► FNTR ®'IRAtf 1HN�E ARE
aMF 4TInlSIOIM. R SEE H 91Ra. 7NS SMIEYFI/f BEM M BEEF OE TIRIER`
E XF1E9Y OWSENf W M ENE10 R ND 51na1®A1 i'a III11M aE aiBt111E1EAT
DODOEI ICE Alp All OFnGTMR AD OFTFPi R DEDICAiNa T619L
M PEN. PRREEr 09EHEF BBCR n OFFERED FOR OMMMON W'M att R EWY BY of FOR
wEMD PMRPClSES48 -PVtTM R A 119D SOEET (i!T WOEEA A`IF1PE1 MDT NEMOl9.Y EBOINO /d
THE MAP Iff" SAO aRYFaw EA4Nait! IW'NIP AID NL wale WES O�PA Ral NO
E Am PERM am , W RIa1Q0AEy,�E,AEA 6MMA M AMY Nn AIL "D b51REE FALLI6
O i1DE LM —Rw D EaWA�IEA m Z-i wRIFMNICEB m M IBCE aMARRN OR AM simievim
REP ROW PA. OF AM SOND EXCEPT KOM SEANCE SMMCRMES ""VION SMMM AM
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ACCESS
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MODEM OF TnE MILS MIOOMD GOI'SUOI DIIDIEIT. 1NEM Dftllii$ MD mm AND M"m
SAID AREAS READ MNML E M sOIE MLTPO®S/M1 R M Im,wRRS E[INFfIW. m ERR1YEC
BY TIE APPROPRIATE CQONMR' 00� � aMESECDOFi TIES EASEMENTS ARE NOT OPFBN4 ME vw ARE THEY ADCPI® TOR EDf.ATW GUM
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AEE4J MD E9ESS EAgE@AE ro E RERRSED'AS PRAAE ADCSS'LL4LBIR TCR M AE UE
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'AD DEA lw p TSY�A E SSMEEr "�M c � I ➢E PIPq�YBMHiS CCiPIMIEDE�
AAA ljg�X68' ES GF THE MC EONNOW ASSOCIATION AND ARE NOT OED® NM
BeD1YDEn BHAIi DEER RDOMRr Mo xaD 11AHMEM M OE. tIR an aRML PINNMD
OCIRMSSOIL AHDII$ M CD! AM IPMEDYCS FTM AC CAR /COON E PROC9IN ADAOnT M On
M HIS OTY PW11aD GaDR55101L AMRS, CPam E tPP1D1IIR W ATTAE( E'r ASDE, VOID
E NOLL M MPROVAL Or M CTf. CIY COMC. RADMD OR RNST1Ol L OD61 DOAIR ADMEORY
ANY M OMR PROCEPONO YMf O .ED° `Lroa SSE FuuYY 0 THE DEPEREM B mm1O
M RMOPD AMBMNT W CAIIFBMA eO1EDN6O CODE SECOM MMTII
LOTS LTNO ■AM 100 FEET R M�MOpR6plM� R M A ANCENT SHIMMM'PROPAE FALLIT SHALL NOT
Bill DING CEASED
SMALL Ct YM TO LOTS 45-54. UPON NPICAVON TO M CITY R
IK PROPANE MIM M OTY MHL CON MUM, COW CIDGT3 OF COMPLIANCE PO SUCH
TOa
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TRUSIEE'S STATEMENT
ERCOM6 RF ICR C EPw. M A CNM WM OFi6AL RECODS M R SANTA OAU 7DEM CID OF TART
0TR9MOAIYB9 pMD M UM T1M69 N S . DW OCR P99T OO@!HT ON PEN" R M m
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not been wa:yAreu ,.wn Hl,:.x,;,;.w -
SANTACIARA000YrYCLERK4 DORM
OWNER
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THE 94110409M
I Conn UNDER PENALTY R PEUM CDFR M LAW R THE STATE R qA FORMA THAT M FM9mD
PMAORAI H THE AID COMECE
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PANED IDNRYS MAZE - S'e a L E6l6/AMR
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EMDATW DATE .RROTAPAWIaOeOI �•ATAh
NOTARY 0006MM NUMBER .7IAJlI AL
TRUSTEE T
SNE R
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_7IE m.E2, XE00E NS LMNN wi:.elALNiNDTAIr P1HUO
P9MONALY'AWGRC Ix"'LTISi�icTE HDEAE ro E M PEPEO MFOSE E1A�g� D(AE
suosmm �qTO THE ai1M INSURA M1rTDme A10C�EDCD m YE T �EygpM ERiRM TE 6WE THE MMURAPENT
nc P900PIf0. a'M tl1A°NOINi v *M THEWS) Ac E. PntaA"t
1 CRIPr UNDER F9 Vf W 1ERANY IMd M IARR R M 6A R WO PA TNT M WEAOMIM
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COUNTY R MEMO PNIICPA. PLACE R a19EE
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ROTARY CNDpSCi MAIM
SURVEYOR'S STATEMENT
T6 NAP,MB PREPARED BY ME OR 1RDER w aE =Al B BOW IPOI A FOLD fIMEY N
=MM R MI MI NOE MMO MK NG N AK�R"k I NORM ACT AND LOCAL GROMANCE TNT TO AT M
WMANUALY O MM m M PPPROAED M COLD OCA"T nP01® TFi1gTK YM v Allr: TIMr
M SLMTY D TRUE AD COM EE AS ppDp THAT ALL MWYMR AE R M CIIMlCDT'ANO
OCMM INE % R DEW IM E THAT THEY EL BE MET a THE —PCPR WOR MOORE CCIOOOL
2011 TNT M IIMCEMn ARE. OR R1 EE BWiCDIT m FNAaE M BRIET W BE PETRACER
T1N®E/
BATE /I• /5•},013 E4 �"Fjg$,
L aM BAD
IlC11E FAOBY OD-] f1 -
MB wa
PLANNING -- ,COMMISSION STATEMENT
KAMMM8 OMAN" OF MNOiY 6 MAP MaMM%MMI• R/l�. DO GIA.Y APPIICIED BY M
TRACT 10184
OAK PLACE
OONSM M IS R H BEER
BEAM A SUIND SIGN OF IM RE& PNOPFRTII DESK AP
OCOOOIWYR . A HO ZA9 OnTXHE Y F OP R B AOS : Of
SANTA dAR&
STALE OF CMAONAA
OCTOBER 4013
1900rY.dr.d BnJ —CAPMa
CM ENGINEERS STATEMENT
I POESY SCE THAT I HAW EENDED THE HELM FMML YIP R'CAOT
M1 D EDP. ANTi111 BsO X B XMDII �w R4 AODMG 'EA9 AIm�DEY
SEMVISOT HOWN SUIY9 SAME AST D T M
AD
�� �OIOaM12 APPI1GIaE AT M ME R APP�:R M 1ElIFDA1E IYP HATE 9D1
PAID
DATE H T!
p pYEO
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CERTEICA7E OF THE CM CLERK
cAS`I
4Ir R EROY CAFECIDMA
LKENSE PMEIY 1i�71 -15
MAP OF -TRACT IDIM/. RYE CAE'. AND THAT 1
a
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IN BOOK bd &. R HAPS.AT PAO{S) .4/i _ 33 SANTA CAN COW" FIEU DS
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TRACT 10184
OAK PLACE
caE�oN aF to NEE1M
MM A 41EIYL90N OF lli REAL PROPERTY OESCREED 81
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OAK PLACE
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BE1N0 A SI1Bd\19O11 W A� REAL PN0PFRIY OESCIitBFD N
- - - - -_
COUNTY. AND LYO10. I71M IM CRY OF GILROY. CMWTY OF
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EXHIBIT B
CITY AFFORDABLE HOUSING EXEMPTION PROCEDURE
2644/030734 -0001
5814408.3 a05/4B114 -19-
EXHIBIT A
City Of Gilroy:
Revised December 4, 2OQ6'
.SeCtloI3 L00 Statement of Intent
It I* , thO: - ,of this pollcyto. set -forth the specific 'xit'' d gUlddIjniEit;'for 1h0
:intent ena an
affordable in exemption peo_jd d in the
City
of Gilroy Zoning na.
Si000, 50iQ
(b)' 40 (4)'. The 0061 0 this tx6rhp t enh c
f Von is 0 an. publ
n
welfare '.Oy Mee ng -the current and a id future hoUsIng,.pq'ed s of all segments of the
community. This exemption Is Intended to encourage private e developers to
lconstruct : houtinsi that is affordable to Very Low, Lcw and Moderate Income
households, as specified in this document..
�� gn- i.61 Definitions
Affordable
A dwelling unit, either rented or owned, which LIS affordable. W households,:
with Very Low-, Low, or Moderate incomes, as specified by this document.
Agnlid6nt
Y Pg partnership; corporation, firm, 6r: any` ,entity
or combination of
6h. which seek permits Orbppr6val f0t residential development in' the
City of Glir,
Dwelling Uol,:�
r occUDanc' Mdeqc
Ho
yas:a. te 0� by one
household. Th. . Ps term, Inctudes, condomini um-;.,, tbwnhoui�tt, singe
homes, multi-tam lly homes and' apartments.
U61tid. States, Department of Housing and Urban Development.
on . .
Re le Con
trols:
Legal restrictions s mpose d upon pro pe!rtyowners by the City to ensure that
�file dwelfing, units will remain, affordable to Very, Low, LOW, and. M.Od6ilte<
income e . households, as, defined in this docUmeht, for a specified time.
Pai .'
_gel of
Residential- Development, (-ROgj:
All devmlopmgn t th a t Incl q des, sin
glefamil) dwellings,: multi - .family
c qn ObminIUm $t t w GO! cooperative and
subdivisions, intended jo b - -_ "I'd to the bll�clo r re
e:
4identia use:
Residential DOvOldgMeht: Ordinance..
Sectlon tOA of the d W of Oil rD Y Zoning D t dinann_ce
that encourages
responsible growth in the conimbhity, and .restricts the 6rnoua.of housing
Whlitfi) may be constructed each year.
Vem Low.. Low and Modiptkd "Mcbme' LAvels:
1. . , 1. fbttahta. a ery, Low zAd
I cornie t established. it! racou County. V L
n -ca egoe nes.
'L Median - household -size ,�and
Low Income: ve ls are.- 'calcul'aied based: w,
income.
Section .1.02 Gereral Requirements
QO' A & . -d p dht,('�Q* �bfjhe, hpuMn4 . 'Its granted' an exemption
h
from the Residential )iVeldp n -
6h Ordin, antV ' u nd. .e. r this program
must be
told and/bt :rented at prices that are affordable to. -y L or
,
se-CU '101 and 1�,.04, 'The
Moderate I households; as -specified,. by Js �.. ..1 6"
income ouse
procedure for this ex'-e'm'pt* as follows:
exemption A.
,. s.
Orocedure:
(A) The applicant apply for ;an ".RDO. Anrd able: Housin Exenotion," znd
must, submit all required the: `time of appi!Oti on. ,'�Consideration 'for
,
;approvral of -this, application: -shall be, mader. In accordance with. 'the criteria
.contained ,within ,within Zoning, Ordinance section '50M.
M. the time f lk.". tion for the, Ox th
e:0F'C q 1)0 Oppljcaht�� must.,! pe,,jfy: e
1ppcO _giffi.p 0
The identify the
f! units �t Opp, ...
constructed, P P. 7.q._! tP!P 40M must �6
boUsthoids with very Low,,, Ow, and
:n'umbtt'of.un-it,s;t.hat,will'bie, affordable to
Moderate f incomes, as defined by this; document.
(3) Rental and/or sale. pricesi of" all. vnits; shall', be reviewed and approved, by
the City, and shall be affordable to households with' `Very Low,,'Lowl and
Moderate incomes; as specifl"ad', by sections.- 1.63. and 1.04.
application
(4) APProval pf"thel will be based upon: compliant with this policy'
and all ,other 'City requirements;
� eq uirements ;as may be updated fom, time to tl m
e The
I
applicahtnv§t recei ve
approvM of the .RRDO exemption OrioT tor , TO '
ntati ve
P60 2:6f,6
Map approval. situations where a Tentative . Map: is not required,
,th e
:I 6 PP h' I most approval of th6l RDO exemption Oridr
to
Architectural and Site Revlewapproval:
...
'(S") After approval, of thin application, and prOt �td receiving; Tentative Mab.
00, _9
approval. Or Architectural' and Sft Review " approval in MtUaWhS Whdtf��,
T m
entative Maps a, not required), he applicant 'must ''enterinto a contract
''
with the, City (hereafter referred to as :Agreement). agreeing to provide
affordable housing, a& dOlneated in this, pdllcy,
and as ,.approved by the
City uncA., This Agreement, will assure: � affordability of the u e
y' 1 0 Agreement .. � a rdability e nits. ;Fallur
to comply with the terms, of the Agreement wlll vo[d all, approvals; °and the
project w_jIj not be, to proceed; without% ro m
complying with the
.Residential 'Development qqrnpOOQn p mce00res ofZonI
ng Ordinance
section" 50.00 regardless the stage of construction of t he project:
G The appilctint h 11 d' it-,ltii! the and termg,., 'f 't 1 1" th,
existence, 91. h.$ p ity to the:
00!pl u 9 pbl_ic and a'- CP.p...t . OPP from
pr pspq t ., I
ve purchasers and;
tenants, The applicant shall ke'
0p a list of till 4u6lih.ed Ourc asers and tenants, and 'S' ha I I mak6 this! list, tt, along with Oditftht f1hahic,Ja,,I data,:
avallabl6to -the City upon. request.
(C I All tentative. maps, archite'durat and site :reviews, or other development
permits approving :reside"ntial development con 'fn conditi ons ons ,
,
to qensure com pliance Wit h the reuiremenset fDrt in this pojicy Th ese;
conditions .shall Include bu t
not I t be limited to :conditions "that, specify the;
number of Afforclable, unjjt.s, (whether prices and'
ether for sa rental), their
or r pri
]ROO10 -C-00trols.,
Alid dwelling
,:U, 1-t,S . prop p'sed ' Ph l
d' t this program must b ' constructed wit,h
same construction and Ma t i J4 is required. Jbt m"
*p t
Tae6 housing. T hi s f6jUfth6ht t16 11
apply to P O&S:1 consist <$OIOY' Of
lford' le housing units, as well com bIne affordable hOUM i
ng af
with markdt rate housing.
Page I ,a ',,,
, rqf§
(F Resale controls shall- be icb, rated as part r
bf -the Agreeme nt r sign
ed by
lrdIVIdUil purch' ers 6fthA96 units. P h 19: Agreement shall be recorded
:
against the property,, with the :county recorder- of 5.6h`ta Clara t6un
The d'evellopers I hail provide 'the City
plan, 41h ,order to. . Insure thew. l',hoursing
and Moderate Income residents are
vvith a detailed ;outreach and advertislnQ
needs, of existing Gilroy Very: Low; Low,
Met.
Sectl'bri'li,03 Procedo,ure'for Renting; Affordable, Units
iA) The Qty'�**Nes
ve- : te-n)a . h, he
� right t); review documents -'d verify 'the c:Lli§iOjlity:Of all
;h the event an 'Income :increase" disqualifies 6 tenant heteo-n r01000;
to as er= ncome hle Tenan meeting the Income requirements' .refit
unit- through lthi' 8'ptograrh, ihe,, fallowing . miles shall, apply:
(4) The property ;.Owner shall re-certify incomes annually. If a fenant'45
m
fq=6 to mallfyasa
:make morelhanA, of the: maximum Inc me to;q
Low Income househrold- the tenant will be given up.. 'to 90 days to
relocate.,
�(2 ) .During the. time 'the Over - Income Tenant continues to: rent t
1rh, e
unit
t be rental rate of the unit, may , n sd above,
l
ra t: ppe bedroom size which are determined b the City
:
Appendix);:,
(0, -The .developer shall specify; in the Agreement entered into with the City, th6
-h m "bedrooms' l n,
-r'of' units .that �ateito -, be constructed and the . number of',
nurnb�e
each tunit:.
(b) Oost of Housing:
Ucteol through ;this: Rental 'housing tqnstT-, is, prqgra Ms.h .11. be affordable to
V ry L Low,: 4-1 d: M QA—t f t Income hmuse h o'-Id' s, consistent witft the
intent of th1-l1s- policy. ig- hta, l tat shall 66 bqpv;I en
the California
Tax
Cre it, A ll ocatiOn
Committee i'(CTCAC) 50%.1-hcome IeVel' rental: rates for
Santa ,'Clara County. The'tdhtal tates'shall, be revised VItKevey published'
revision of California' la' Tak Or edif Allocation Committee 'CTCAO rental'
rates.. (Seel Appendix")
Tenants1n this program - May be required: to pay a clearil'Og.; and /or security
deposit of - not more I than the cost of the. monthly rent:. .
'p.1 - f,,r
age...:4 of
Procedure for Sell frig Affbtdable Dwelling Units
(A) All saleable dwelling units constructed through this program shall- be sold, to,%
households that quail for `affordable housing; as defined In this: do.cument
'hirty years . from the t the:sales Oatej resale of these homes shall be subject
to a resale .Agreement thak will e nsure that these units remain afford$ I WA
:
housing for a period of years as specified, in the Agreement. The 9W 'ard
time period fbr Affor0abil-Ity should be no les& than 30 yea S . TrOrsfOr of
thptp - homes be to Very LoWj LoW, and Income households,
and will bd. subject ,t the same resale
restrictions poolled to the btiolhal
Transfers by gift., devise, be Inheritance to an eXIstln9.sppu,si.B, surviving
JO!ht tenant, , or a Pbus'e as pa rt of a dissolution procee I d.
ngi or in ,connection
with MaitladL tNl 11 not: be considered a transfer fpr. the p.Urp6sd of this',
policy:
(3) The City reserves the 'he.rloht to review and approve documents verifying the;
.
eligibility of a lihon 6buyers,
priorto sale and transfer rof �each property.
All dwelling, w Its constructed under the termsofthis program, shall be told,
to owners who occupy L the. residences as their princip'
al place of residence;
(0) 116tale, of these units shall,Oe. conducted rbvided for )n this P oil cyo. Po
n
resale, the purchaser's income r_ - . - .- - must correspond � to the Initial' Income
.cate I-- .for
gory established
thIlt, unit by the .0ev'd-166er.
Ak! -b shall enter Into an Agreemett, recorded the roperty
pme Vyqrs
reco: e(� on , e p..
which id s that.1hehohie. shall be�subs ' ct o P, 16 Controls.
proved es� o , esa
Cost of 'Housing-;
a. Houses: constructed in this program, should be affordable to Low and'
Moderate Income
households the
se fol lowing ratJos:.
11i At: least :40% df the lunits should tie affordable to households earning
below 600/60 Median :Income.
Z. At least 150/opf the units I-shouldbe affordable to households earning,
above 6.0% UP to,8 01,0/16 of Median JnOtne.,
3. At least, i /6 -of the, units, should be aftl1dable to hoUseholds,earhfha aboVe'0 up to 1`66%` of ".the Median, inco Me.,
4. Not more than 3016/6 of the units, should be sold to households 'damihg-
,above Median 1nicomA.
Pagel:S. of 6
The Medlar
llddme h a
ll be as' published by the California Department' of
Housing and C6mnUhlty,D6velbpM htfoeSanta Cl ara
County.
b,. kesidences constructed in this program .shall be sold at or 'below below the City
of:dllroy r
g published sales1prites, or pnC 1 1 hg, structure approved by'
the Clty,, prior to Initiating outreach and marketing efforts required ''in
Section 1-02.6 of thls°document.
(4) If the. eveloper 'is, unable to find Low and .Moderate Income :buyers, who ara-
qualified': to purchase homes; through this program, the developer shall 'be,
required to: continue to solicit pokent-dal -Low and Moderate Income ',buyers, fdr
eight '(8) months after the date of Issuance of the: C er. rtifl Occupancy: _
cate of
Alter this
s time the developer shall be allowed to the homes ..".-WO th any
person, without regard to 1" levels. These hbMOs:thallj:,ho-,W b-
ric-orne eve s.
LdjAf and Moderate _everk � e
determined' by the City-, and
sold' at d ncqme p qpsi as v
shall a otda
blO; 'In accordance with this policy. The applicant
shall
on... 14 mo In g efforts _y, the tk6b— e
106th City .1 ff rts of 010 projects,
a: repo
#Mbetb:'the end of the eight period.
(tf) For sale homes constructed through this program shall not be leased or
rented unless, exceptional circumstances are established by the owner, that,
the leasing or renting of the home it necessary and approved by the City
'Planning Divislon,and Division -of Housing and tommunity Development: Any
such cease or rental: sh
alf be consistent with the rental rates as established
by 'this policy for Very. Lo Low, and: Moderate: Income households: and
wj .1 . der Tnc
limited. In'timel-to not more tharivne. year.
Page§ of 6
.AP,PE,N,DIIX,
FWta& rates: will be hosed �Qnl unit; size; and willnq.t. ;distinguish: between the jhtdrh6
Unldl Oy� Ut, the following
of ;the renterse. The rental rate :fora V61t is found,
j, T t PJOW 'I household, size each un I.t .. can Is determined by
using AlO 100 1,- aitho.ugh the mNg of people a tpg y
pAPd "
each unit
Will
f-'y 7" h, y Z`JtWhistah
...
�2. Rental .rates be ,equivalent " t
6 the California Tbk Oedit Allocation
I
Whhlttde (CTCAC) 50 income -level ren 61- Santa Cara County.
Figures
om in TVO -- '-- h' I'J'S"
Bedrooms 0014401-9 ll 4o
P"lpft: Uhlltrll
Single e tO CY
R-s 40 enti al- tc'uOah--'
-StOdlpt;
2 .3
,3.
11 4
The project manager shall provide he City with January, a reOta-IrTgpQrt �n . Ap !
ij
July d, October df , each year Th
!Sr report; shall provide
th6 follo
wing :elem en
ts'
:14 N— - f t
oMe. q, the prpj!eq
2. Ndftei tbf-V 'Its - the eLt-.
n . in
3'. Rdh
01 rate .of each: Unit
Name,,
R'60e 1 i6f: 2!
FOR-SALE MNITS:
HUD. Mdorhe limits shall be used to 'determine . . eligibility` l , 1 . for partidpation in this
Rouses. constructed, in this program should be affordable 'to: Low and 'MeOlan,
Income households In the following :ratios;
earning �50% t
lw, At Jeatt-4 ': earn ng
0% of the' 0014 ,Should:. be affordable' to households
60% Of Santa clah3 County Median Income as defined In th
2. to 100% ,of
30% of the should b .... 1 . ff b I t h-
. .... -e.a..or.la e ouse:o s:earnngi up,
.§dfita Clara ldtq C6UhtV- Medlah -Income, ', . a . s . defined In th# Policy:
1 Not M`r b re-tha'h 36/ of the 'units ; should b6sdld'tb households e anng "66tween
a f!" d I
100% and 120% b S6M6- Clara, county. Median n'r ificorne,. as defined n� the
p6l: ICY.
T,he dty.: 1CO the
Uncil �may�permjtan, exception to.the above- ratios and
c
cation of:ma rket- rate units� from the Market 7,11-ate.'Exempt pool, not to exceed'
15% of ;the:, total units in-a. development; if � the development meets the ng f0floW Win,
criteria
ri �Ia:,
:a} Total Afford - 6.15le.U.nits In a,proj. M1-eOt.:th,6:fjlown§:$ff r,06.0111ty levels` '
Ul", n ts. i�
d of tile, It I Off 0010 01
(caLic
4 percentage SQT6 �of Santa Clara Income
i5%' between 5.0% and -,80%,.df-: Santa : -di '6616
e - an, Inft,
Into-Me
25% between: 80% and 100% of Santa Clara Kediah
30%,betWeeft 106% -,and 120% of Santa Clara Median. Income
-b) The project COMP1169 with the' requirements of the. N619pborhood 'District
policy.
,C), A-Master Pfairvis required
The development , -'provides 1 e,substantial I public and /.,or private Infrastructure;
Improvemen, ts, beyond. those required, by the "Neighborhood Qlstnct Policy!'
as negotiated ;through :.'a.'[.)e - lop-Ont:.Agree'Ment.
The
2 4.....p.. . p j
i d67ht shall. submit propos ed se
d
s aI 6 s rates to staff, with th 0 dk
p
40du hen t a tl qn d em hstt6tIh#t� to ,uh It sw ill be iff ordibie t o buy eft id each
income category In the< specified per ten tage5.
Th6 folloWlrngprovisions 'Will apply
t o all hones old under:th:1sPrqg,ram..!
• 'a t
PHO$ for NMAS SOU In thl' M WIR be ba" dd the ft"' b tU 6
maximum of a 10% down -41 program s ok_� ej home buyer er p
_q �-qng
payment on'the home.
sh'll. 1, PM
monthly :M'9itg'Pge shall np, Q,, e!
• 6f th
A, 'roii:�U:c"onttt�ULti�d'through " , ,"thlt* itm� must - a hiinirftrn' 'e-66
bedrooms in m
P .,
en,, .percent (�,Q% of! the Units.
• ret'06ftiblia foe financing aftino their Units.
Ap-lk-ahtt.061 n
.Applicants: I
EXHIBIT C
MARKET RATE AND BELOW MARKET RATE HOUSING MIX
2644/030734-0001
5814408.3 a05/41V14 EXHIBIT C
HOUSING AFFORDABILITY CALCULATIONS (BMR) Jobe 4,1(114
TOTAL UNITS IN PROJECT 237
GILROY, CA
AK CREEK SUBDIVISION AFFORDABLE HOUSING REQUIREMENT 159E
County: Santa Clara County TOTAL AFFORMABLE UNIT'S. REQUIRED 36
Area Median Income: $105,500 (4 person)
Incwne.0 o 1
VERY.LOWiAW%zim
LOWER:
7.5%
E ' :t r' OWER Ica
7.5%
MEDffQT r
7.5%
b05WMWMEDlANftWw,4W
7.5%
L _MOD TEi
15.0%
am MODERATE'��Mi>11TP
16.0%
6
W Z*%0 8
100.0%
39
% of Total Affordable Units / Income Category
40.0%
No. of8MR units / Intone Categm
14
3
2
3.
2
8
Number of Bedrooms
NumtlerofPersorlsAlbvied
3•Bed 4-Bod
4 5
ed -
4��
443ed
5
-- 3-Bed 4-Bed
4 5
� 3 -Had 4 4 Sed
�34W 4 -Bed
5
V343od
48ed
5
3- Hoed .: -.
4 -Bed
Percentage DUe to Income Category (0 4 personalHH)
t', 807 80%
0096• 108%
70%
n r100%.
70%
108%---
i_- ,,..,.809E 6096
X. ?"A70096 108%
90% 90%
100 %. 108%
1 W96i 100%
w �100%t 108%
110%
108 %.
,
.,.-�.
120%
108%
Percentage Due to No. of Persons/HH (O Median)'
Percentage of Area Median for Given Scenario
80%i BS%
X70%
78%
80% 86%
9096 97%
f100 . 100%
r
X170 %_
119%
u 1209G]
130%
Income Um 8 Based on Given Scenario
Lim: For Purposes BMR Price Calculation
iS&9 300. $68,350
E63 300; $68,350
$73850
`T' 573,850
$79 750
E79 750
,� S84 400 $91,150
$84;400( $91,150
� S94 950 $102,550
;59496 $102 550
x $105,500 $1131
( X5105.500; $113950
Ei 18050
(. 5118051]
$125,350
$725 350
s #5128,609
5728,800
$ 738,750
$138,750
Irroome of
Housing
304 o'j 309E
° 30%
30%
= ( 30%
35%
35 %r 35%
.. �_ 35K
35%
t: - � %.
35%
Percent of Irxbrne AFoted to
Amt: Alloted /year (based on Nall Mod.)
_
( i8 990 20.505
.
22 155:
23 925
- F '26 320 27,345
T y.
gc3516-
-- X33 2331 35.8931
-_
-?, 36925= 39,883
— =.
�:_. `—�
`40,819.
- p_
s
43,873
3
j35
` 44,310•
3
47,863
989
-
Amount of Irteeme Allotedlmo. to
z.:: _.1- 1 709
1
i g94
a
'�' 'F t1A 2279
1
v. 2789 991
077-. 9
.y,
_
Percentage ( %)Taxes/yr (% of Sales Price)
1.22%
"'
'.
122%
083%
-- a 1r22% 122%
- 0.8396 0.83%
�
r : 72296 7.22%`
8396_ 063%
122% 1.22%
M 0.63%
# . 1429E
0839
1.22%
0.83%
- 1.22%
083%1
1.7296
0.63%
Percentage ( %) Private Mtg. Insr.(PMI) (% of Loan Amt)
083%1 0.63%
D 8396
,•i0
,�,
i ,-t-
.,�
Taxes per month.
t 238 259
as !-e"'r 282?
307
§ "' 32,51jjJ 353
x`24$-
`'
319
Private Mtg: Mar. Premium (PM0 per month
Ass.
# 11_9;: 129
150 1501
, ; € 141-
r 16a`•.
153
160
t - 183,'! 177
} 150 150
=237. 235.
_
._ 150;
263
' 150
88
4 {
�,� m150 =11
297
150
'/; 294'
150'}j
150
Home Owners Dues per month
`50`l<
%_x'.�?r'ia73?
,1
838x 880
= =z 858'.
#x,160:
�_ -.�-. 878' 940.'r_3`i068:'1
1.023
032
] 1,106
Total Floe Expenses Month•m
MeximumPal.Peymerwme.
538
,. MA $1171
h6 i&'gat473
.810'.
$1364
. •-'
, $1`4721 $1599
.8a2�
$1,96ZR $21337
,5.' -'yr� Y.
52,18$ $2304
1'1"'-+11
r"i$2A2s
$2633
„f,. 32897
$2,883
Mortgage Assumptions
loan in Years
�.,,,. .
30
5~., -# �. 4T4 .
'�
30u
3ti; 30
ti's 3Q 30
.-,3•( 30
�';L'ka 30
30
*_. 30
30
Term of
IDOwPeymen %A Fixed 30 year),
h`30
.98% F ie 3 60%� 3.60%
is x.30
�s 41 ly�3:50 %1
3.50%
93%
. k,= 360%1 350%,
�:,
""3.i 3.50%
'31
',A € 43,1509:' 3.50%
}'�z 360%
3.60%
3.50%
Supportable Mon
♦>Pe 9a9e
$226 82L $245.820
'$287342;
$290.643
,5309 071 $ 335. 686
$41$ 0�8 $447,871
'r'i
$981 627,. $500,468
!•= .a-
a$6pg 989':
$652855
„� 5858 820v?{i
i4` I'"r�,.";F
$805242
�.�an'�9�.k'a:
Affordable Price (Maximum)l
",.,. '$234 011 1 264 738
r . �:. ,088°
-i $901 081
F:_, :$320 891; 5347 882
to f ..28,088!1 $484,118
:�, $4711 677 $5111 19
--Ys6
3 72,908
=..x .$678 801 >I
5827193
EXHIBIT D
FORM OF DEED RESTRICTION
RECORDING REQUESTED BY AND
WHEN RECORDED, MAIL TO:
City Administrator
City of Gilroy
7351 Rosanna St.
Gilroy, California 95020
No fee for recording pursuant to
Government Code Section 27383
8P.
S LwFOR REC0I8R'S USE
This RESALE RESTRICTI EX"` AND OPTION TO PURCHASE
w
(the "Agreement ") is entered into ast111Sww c �cl f , 20 , by
and between the CIT 4ywunidi.'alwcorpo ation of the State of California
+ w wr
(the "City''), and wwr www'ww ww"r:ti (the "Owner ").
THE DESIG° QED AFFO LwwING UNIT WHICH IS THE SUBJECT
OF THE AC YING:.. NTpj'D IS HEREBY SUBJECT TO THE
RESTRICTIOQ1�i LLE _y OCCUPANCY SET FORTH BELOW:
Owneby�arlts and gives to the City a right to purchase the real property
cony � d & improvements thereon (the "Premises ") under conditions
w www .,
hereinafter set forth X 1t "may designate a governmental or nonprofit organization to
exercise its ri ght o,. first refusal provided that the right may be exercised only for
purposes con sit th the City's RDO Affordable Housing Exemption Procedure of
2006, as amen�w he "Procedure ") and in favor of occupants or owners meeting the
City's eligibility qualifications under the Procedure ( "Eligible Occupants "). City or its
designee may assign this right to Eligible Occupants. After the exercise of said right by
City, its designee or assignee in the manner hereinafter- prescribed, City, its designee or
assignee may assign said right to purchase to any Eligible Occupant and is approved by
the City; provided, however, that such subsequent assignment shall not extend any time
limits contained herein. Any attempt to transfer title or any interest therein in violation
of these covenants shall be void.
2644/030734-9"40U
4944409 q1M25R(U a05 /"19J14
B. Procedure on Sale.
1. Whenever the Owner ( "Owner" refers to the above -named Owner and all
successors -in- interest) of said Premises desires to transfer, sell or convey the Premises,
owner shall notify City in writing to that effect. Such notice shall be personally
delivered or deposited in the United States mail, postage prepaid, first class, certified,
addressed to City Administrator, City of Gilroy, 7351 Rosanna Street, Gilroy, CA
95020, with a copy to the Gilroy Department of Housing and Community Development,
7351 Rosanna Street, Gilroy, CA 95020. The City, its designee or assignee, shall then
have the right to exercise its right to purchase said Premises by delivery of written
notice, by personal delivery or certified mail, to the Owner thereof at any time within
thirty (30) days from the receipt by City of such written notice from Owner of intent to
sell or dispose of the Premises.
2. If the City, its designee or assignee timely exercises its right to purchase
said Premises, the City shall designate a real estate agent to process the transaction, and
shall open escrow concurrently with the delivery of the City's exercise notice to the
Owner, or as soon thereafter as possible. The Closing shall occur within sixty (60) days
of the opening of escrow.
3. Closing costs and title insurance shall be paid pursuant to the custom and
practice in the County of Santa Clara at the time of the opening of such escrow. The
Buyer shall be responsible for payment of any prepayment fees imposed by any lender
by reason of the sale of the Premises. The purchase price shall be paid in cash at the
close of escrow or as may be otherwise provided by mutual agreement of Buyer and
Seller. The purchase price of the Premises shall be fixed at the lesser amount arrived at
via the following two methods:
a. City or its designee shall have an appraisal made by an appraiser
of its choice to establish the market value. The Owner may also have an appraisal made
by an appraiser of Owner's choice to establish the market value. If agreement cannot be
reached, the average of the two appraisals shall be termed the market price.
b. Dollars ($�
(plus the amount of any prepayment fees paid by the selling Owner at the time said
Owner purchased the Premises (base price)), plus an amount, if any, to compensate for
any increase in the cost of living as measured by one -third (1/3) of the Consumer Price
Index, All Urban Consumers, for the San Francisco - Oakland -San Jose area published by
the U.S. Department of Labor, Bureau of Labor Statistics (hereinafter "the Index "). For
that purpose, the Index prevailing on the date of the purchase by the selling Owner of
said Premises shall be compared with the latest Index available on the date of receipt by
City of notice of intent to sell. The percentage increase in the Index, if any, shall be
computed and the base price shall be increased by one -third (1 /3) of that percentage;
provided, however, that the price shall in no event be lower than the purchase price paid
by the selling Owner when he purchased the Premises. This adjusted price shall be
increased by the value of any substantial structural or permanent fixed improvements
which cannot be removed without substantial damage to the Premises or substantial or
-2-
total loss of value of said improvements and by the value of any appliances, fixtures, or
equipment purchased to replace appliances, fixtures, or equipment which were originally
acquired as part of the Premises by Owner; provided that such price adjustment for
replacement appliances, fixtures, or equipment shall be allowed only when the
expenditure is necessitated by the non- operative or other deteriorated condition of the
original appliance, fixture, or equipment. If at the time of replacement the original
appliance, fixture, or equipment had in excess of twenty percent (20 %) of its original
estimated useful life remaining, Owner shall document to the City's satisfaction the
condition of the appliance, fixture, or equipment which necessitated its replacement. No
such price adjustment shall be made in excess of the reasonable cost to replace the
original appliance, fixture, or equipment with a new appliance, fixture, or equipment of
comparable quality as hereinafter provided. No such adjustment shall be made except
for improvements, appliances, fixtures, or equipment made or installed by the selling
Owner. No improvements, appliance, fixture, or equipment shall be deemed substantial
unless the actual initial cost thereof to the Owner, in the aggregate, exceeds one percent
(1.0 %) of the purchase price paid by the Owner for the Premises; provided that this
minimum limitation shall not apply in either of the following situations:
(i) Where the expenditure was made pursuant to a mandatory
assessment levied by the Homeowners' association for the development in which the
Premises is located, whether levied for improvements or maintenance to the Premises,
the common area, or related purposes.
(ii) Where the expenditure was made for the replacement of
appliances, fixtures, or equipment which were originally acquired as part of the Premises
by Owner. No adjustment shall be made for the value of any improvements, appliances,
fixtures, or equipment unless the Owner shall present to the City valid written
documentation of the cost of said improvements. The value of such improvements by
which the sale price shall be adjusted shall be determined as follows:
(iii) The value of any improvement, appliance, fixture, or
equipment, the original cost of which was less than Five Thousand Dollars ($5,000),
shall be the depreciated value of the improvement, appliance, fixture or equipment
calculated in accordance with principles of straight -line depreciation applied to the
original cost of the improvement, appliance, fixture or equipment based upon the
estimated original useful life of the improvement, appliance, fixture or equipment.
(iv) The value of any improvement, appliance, fixture, or
equipment, the original cost of which was Five Thousand Dollars ($5,000) or more, shall
be the appraised market value of the improvement, appliance, fixture or equipment when
considered as an addition or fixture to the premises (i.e., the amount by which said
improvement, appliance, fixture or equipment enhances the market value of the
premises) at the time of sale. Said value shall be determined in the same manner as the
market value of the premises in method l above.
(v) On January 1, 2014, and every two years thereafter,
regardless of the date of execution or recordation hereof, the amount of Five Thousand
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Dollars ($5,000) referred to in paragraphs (a) and (b) immediately above shall be
automatically adjusted for the purpose of those paragraphs in the following manner. On
each adjustment date, the Consumer Price Index, All Urban Consumers, for the San
Francisco - Oakland area published by the U.S. Department of Labor, Bureau of Labor
Statistics ( "Index ") prevailing on January 1, 2014, shall be compared with the Index
prevailing on the date of recordation of this deed. The percentage increase in the Index,
if any, shall be computed and the sum of Five Thousand Dollars ($5,000) shall be
increased in the same percentage. In no event shall the sum be reduced below Five
Thousand Dollars ($5,000).
No price adjustment will be made except upon presentation to City of written
documentation of all expenditures made by Owner for which an adjustment is requested.
Any sale price determined through the use of this method number 2 (base price adjusted
by Consumer Price Index and value of improvements, appliances, fixtures or equipment
added) shall be adjusted by decreasing said price by an amount to compensate for
deferred maintenance costs, which amount shall be determined as follows:
Upon receipt of notice of Owner's intent to sell, City or its designee shall be entitled to
inspect the Premises. City or its designee shall have an opportunity to determine whether
all plumbing, electrical, and heating systems are in working order; whether any
violations of applicable building, plumbing, electric, fire, or housing codes exist;.
whether all appliances which were originally furnished to Owner as part of the Premises,
or any replacements thereof, are in working order; whether walls, ceilings and floors are
clear and free of holes or other defects (except for holes typical of picture hangers);
whether doors, windows, screens and similar appurtenances are cracked, broken or torn;
and whether carpets, drapes and similar features which were originally furnished to
Owner as part of the premises, or any replacement thereof, are clean and free of holes,
tears or other defects. In the event deficiencies are noted, the Real Property
Administrator of City shall obtain estimates to cure the observed deficiencies. The
Owner shall cure the deficiencies in a reasonable manner acceptable to City or designee
within sixty (60) days of being notified of the results of the inspection, but in no event
later than close of escrow. Should owner fail to cure such deficiencies prior to the
scheduled date of close of escrow, at the option of City, its designee or assignee, escrow
may be closed, title passed and money paid to the selling Owner subject to the
condition that such funds as are necessary to pay for curing such deficiencies (based
upon written estimates obtained by City) shall be withheld from the money due the
selling Owner and held by the escrow holder for the purpose of curing such deficiencies.
City, its designee or assignee shall cause such deficiencies to be cured and upon
certification of completion of work by City, escrow holder shall utilize such funds to pay
for said work. Any remaining funds shall be paid to the selling Owner. No other
payment shall be due said Owner.
4. In no event shall City become in any way liable to Owner or any potential
or actual Buyer of the Premises in connection with any sale or other conveyance of the
Premises. Nor shall City become obligated in any manner to Owner or any potential or
actual Buyer by reason of the assignment of City's right to purchase. Nor shall City be
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in any way obligated or liable to Owner or any potential or actual Buyer for any failure
of City's assignee to consummate a purchase of the Premises or to comply with the
terms of any purchase and sale agreement.
5. Until such time as the City's right to purchase is exercised, waived, or
expired, the Premises and any interest in title thereto shall not be sold, conveyed or
transferred to any person or entity except with the prior express written consent of City
or its designee, which consent shall be consistent with City's goal of creating,
preserving, maintaining, and protecting housing in the City for persons of low and
moderate income. Any encumbering of title of the Premises in connection with securing
any financing or loan may only be accomplished with City's prior express written
consent; however, in the event of foreclosure or transfer by deed in lieu of foreclosure,
the provisions of Section D of this instrument shall govern.
6. Notwithstanding anything to the contrary herein, the following transfers
of title or any interest therein are not subject to the right of first refusal provisions of this
deed: transfer by gift, devise, or inheritance to Owner's spouse or issue; taking of title
by surviving joint tenant or surviving spouse of community property; transfer of title to
spouse as part of divorce or dissolution proceedings; acquisition of title or interest
therein in conjunction with marriage; provided, however, that these covenants shall
continue to run with the title to said Premises following said transfers.
C. Termination of Right of First Refusal:
The provisions set forth in this deed relating to City's right to purchase shall
terminate and become void automatically thirty (30) years following the date of
recordation of this deed. Upon termination of this Agreement, on request of the Owner,
the City shall execute, acknowledge, and record a termination of this Agreement. To the
extent permitted by law, any unfulfilled obligations of the Owner shall survive the
termination of this Agreement, but this Agreement shall no longer affect title to the
Premises.
D. Default.
1. Owner covenants to cause to be filed for record in the Office of the
Recorder of the County of Santa Clara a request for a copy of any notice of default and
of any notice of sale under any deed of trust or mortgage with power of sale
encumbering said Premises pursuant to Section 2924 (b) of the Civil Code of the State
of California. Such request shall specify that any such notice shall be mailed to the City
Administrator, City of Gilroy, 7351 Rosanna Street, Gilroy, CA 95020. Any notice of
sale given pursuant to Civil Code Section 2924 (f) shall constitute a notice of intent to
sell hereunder and City or its designee or assignee may exercise its preemptive right
prior to any trustee's sale, judicial foreclosure sale, or transfer by deed in lieu of
foreclosure, provided, however, notwithstanding any language contained in this
instrument to the contrary regarding the rights of the lien holder, the City, or its designee
or assignee, must complete such purchase no later than the end of the period established
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by California Civil Code Section 2924 ( c ) for reinstatement of a monetary default
under the deed of trust or mortgage..
2. In the event of default . and foreclosure, the City, or its designee or
assignee, shall have the same right as the Owner to cure defaults and redeem the
Premises prior to foreclosure sale. Such redemption shall be subject to the same fees,
charges and penalties as would otherwise be assessed against the Owner. Nothing herein
shall be construed to create any obligation on the part of the City to cure any such
default, nor shall this right to cure and redeem operate to extend any time limitations in
the default provisions of the underlying deed of trust or mortgage. The City, or its
designee or assignee, shall be entitled to recover from Owner all costs incurred in curing
any such default.
3. In the event City elects not to exercise its right to purchase upon default,
any surplus to which Owner may be entitled pursuant to Code of Civil Procedure
Section 727 shall be paid as follows: That portion of surplus (after payment of
encumbrances), if any, up to but not exceeding the net amount that Owner would have
received after payment of encumbrances under the formula set forth above had City
exercised its right to purchase the property on the date of the foreclosure sale, shall be
paid to Owner on the date of the foreclosure sale; the balance of surplus, if any, shall be
paid to the City for increasing the City's low- income and moderate - income housing
stock.
E. Distribution of Insurance and Condemnation Proceeds.
In the event that the Premises are destroyed and insurance proceeds are
distributed to Owner instead of being used to rebuild, or in the event of condemnation, if
proceeds thereof are distributed to Owner, or in the case of a condominium project, in
the event of liquidation of the homeowners' association and distribution of the assets of
the association to the members thereof, including Owner, any surplus of proceeds so
distributed remaining after payment of encumbrances of said Premises shall be
distributed as follows: That portion of the surplus up to but not to exceed the net amount
that Owner would have received under the formula set forth above had City exercised its
right to purchase the property on the date of the destruction, condemnation valuation
date, or liquidation, shall be distributed to Owner, and the balance of such surplus, if
any, shall be distributed to the City Department of Housing and Community
Development, its successors or assigns.
All notices required herein shall be sent to the following addresses:
CITY:
City Administrator
7351 Rosanna Street
Gilroy, CA 95020
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Department of Housing and Community Development
7351 Rosanna Street
Gilroy, CA 95020
OWNER:
By acceptance of this deed, Grantee /Owner accepts and agrees to be bound by
the covenants contained herein, and further acknowledges receipt of and agrees to be
bound by the provisions of these deed restrictions.
F. Resale Restriction.
Should the City decline or otherwise fail to exercise its right of first refusal, the
Premises shall nonetheless be subject to a resale restriction for a period of thirty (30)
years following the date of first recordation of this deed. Owner and all of Owner's
successors -in- interest in the Premises agree that the property is income restricted and
that any sale or transfer the Premises, or any interest in the premises, shall be to Very
Low, Low, or Moderate Income Households, as set forth by the City's Affordable
Housing Procedure, as amended, and shall
applied to the original sale. Transfers by
spouse, surviving joint tenant, or a spous e
connection with marriage shall not be co
policy.
be subject to the same resale restrictions as
gift, devise, or inheritance to an existing
as part of a dissolution proceeding, or in
nsidered a transfer for the purpose of this
IN WITNESS WHEREOF, the undersigned have caused this instrument to be
executed this day of , 20_.
OWNER:
Signature of Grantee /Owner Signature of Grantee /Owner
Printed Name Printed Name
CITY OF GILROY
By:
Title:
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s. •
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code Sec. 1189)
State of California
County of
On , before me, ,
(insert name and title of the officer)
Notary Public, personally appeared who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and
acknowledged to me that he /she /they executed the same in his/her /their authorized
capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) 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.
WITNESS my hand and official seal.
Signature (Seal)