HomeMy WebLinkAbout2010 CON CDC San Diego Habitat for Humanity - Amendment #1 DDA 1820 G AvenueFIRST AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
(1820 G Avenue)
THIS FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT
AGREEMENT ("Amendment") is entered into as of this 9th day of November, 2010, by and
between the Community Development Commission of the City of National City, a public body.
corporate and politic ("CDC"), and San Diego IIabitat for llumanity, Inc., a California nonprofit
corporation ("Developer").
RECITALS
A. Developer and the CDC entered into that certain Disposition and Development
Agreement. dated October 7`h, 2008 (the "DDA").
B. Developer and the CDC desire to revise and update Section D of the "Recitals" to
the DDA.
C. Developer and the CDC desire to revise and update the "Low Income Household"
definition to the DDA and any related attachments.
D. Developer and the CDC desire to revise and update the "Schedule of
Performance" that was attached as "Attachment 5" to the DDA.
C. Unless otherwise defined herein, all capitalized terms used in this Amendment
shall have the meanings attributed to them in the Agreement.
Now, therefore. in consideration of the foregoing and other good and valuable
consideration. Developer and the CDC agree as follows:
1. Amend Section 402. Add Section 402.7 with Exhibit "A" attached hereto.
2. Amend Section 100. Definition. "Low Income Household" definition is hereby deleted
in its entirety from the DDA, and any related documents, and replaced with Exhibit "B" attached
hereto.
3. Replacement of Attachment 5. Attachment 5 to the DDA is hereby deleted in its entirety
and replaced with Exhibit "C" attached hereto.
4.. Confirmation of Obligations. Except as expressly amended or modified herein, the DDA
shall remain unmodified and in full force and effect. Except to the extent modified by this
Amendment. Developer hereby confirms each of the covenants, agreements and obligations of
Developer set forth in the DDA.
4. Counterparts. 1'his Amendment may be executed in any number of counterparts and. as
so executed, the counterparts shall constitute one and the same instrument.
1
5. Exhibits and Recitals Incorporated. All exhibits referred to in this Amendment are
hereby incorporated in this Amendment by this reference, regardless of whether or not the
exhibits are actually attached to this Amendment. The Recitals to this Agreement are hereby
incorporated in this Agreement by this reference.
6. Authority to Sign. All individuals signing this Amendment for a party which is a
corporation, limited liability company, partnership or other legal entity, or signing under a power
of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the
CDC that they have the necessary capacity and authority to act for, sign and bind the respective
entity or principal on whose behalf they are signing.
IN WITNESS WHEREOF. the parties hereto have caused this Amendment to be
executed as of the day and year first above written.
DEVELOPER:
San Diego Habitat for Humanity, Inc, a California nonprofit public benefit corporation
By:
Print Name: k r'-4 ft r k u� • d•.i�1
Title:
By:
Print Name:
Title:
CDC:
Communit velopment Commission of the City of National City
By:
Prin ame: Ron Morrison
Title: Chairman
CI udia G, Sil a
City Atto
2
Exhibit A
402.7. Upon the timely completion of the Affordable Units in accordance
with this Agreement. the Developer Note will be partially forgiven and the
remaining balance will convert to first-time homebuyer loans to Low -Income
Iouseholds to assist those Low -Income Households with the purchase of
Affordable Units. as provided in more detail herein. A portion of the Developer
Note will be assumed by each eligible low income purchaser of an Affordable lJnit,
concurrently with the purchase of an Affordable Unit. At such time the purchaser
of the Affordable Unit shall execute a promissory note in favor of the CDC (the
"First -Time Homebuyer Note"). in an amount to be determined as set forth in this
Agreement. The Affordable Units shall also he subject to a Resale Restriction in
the form set forth herein as Attachment 10. secured by a deed of trust. The First -
Time Homebuyer Notes shall not require monthly payments and will be due and
owing only upon sale. transfer. further encumbrance, refinancing, the failure of the
Low -Income Households to occupy the Affordable Unit, or other transfer, as
defined in the First -Time Homebuyer Note and Resale Restrictions. The CDC Note
shall be deemed satisfied on the forty-fifth (45th) anniversary of the date this Resale
Restriction is recorded against the Restricted Unit, provided that the Owner and its
successors in interest to the Restricted Unit remained in compliance with the terms
of this Resale Restriction throughout the Affordability Period. The initial sale price
of the Affordable Units shall not exceed the Maximum Purchase Price, as defined
below.
3
1
Exhibit B
`'Low Income Household" means persons and families whose income does not
exceed Eighty percent (80%) of the then current Area Median Income, provided that
such persons or families meet the additional requirements set forth in Section 4 of
the Agreement Affecting Real Property.
4
Exhibit C
Attachment 5
Schedule of Performance
Item Completion Date
Completion of Phase 1 December 2010
Close on Phase 1 homes January 2011
Commencement of Phase 2 January 2011
Completion of Phase 2 September 2011
Close on Phase 2 homes October 2011
RESOLUTION NO. 2010 - 246
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY (CDC) APPROVING AN AMENDMENT
TO THE DISPOSITION AND DEVELOPMENT AGREEMENT WITH
SAN DIEGO HABITAT FOR HUMANITY, INCORPORATED,
ALLOWING FOR FIRST-TIME HOMEBUYER PROMISSORY NOTES
TO BE FORGIVEN ON THE FORTY-FIFTH ANNIVERSARY DATE
OF PURCHASE, AMENDING DEFINITION OF LOW INCOME
HOUSEHOLD, AND REVISING DEVELOPMENT SCHEDULE
WHEREAS, the Community Development Commission of the City of National
City ("CDC") is implementing the Redevelopment Plan for the National City Redevelopment
Project; and
WHEREAS, the CDC acquired the property located at 1820 G Avenue using
$875,000 in federal HOME funds to develop an affordable housing project; and
WHEREAS, San Diego Habitat for Humanity, Inc., is a certified Community
Housing Development Organization qualified to develop an affordable housing project utilizing
federal HOME funds, and was selected by the CDC to develop said property; and
WHEREAS, on November 21, 2006, the CDC entered into an Exclusive
Negotiations Agreement (ENA) with Habitat for Humanity to prepare plans for the development
of affordable housing on the site; and
WHEREAS, on October 7, 2008, the CDC entered into a Development and
Disposition Agreement (DDA) with San Diego Habitat for Humanity to develop eight for -sale
townhome units affordable to families earning 60-percent of the Area Median Income as defined
by the U.S. Department of Housing and Urban Development
WHEREAS, San Diego Habitat for Humanity has worked diligently to process
land use entitlements and permits for the project; and
WHEREAS, San Diego Habitat for Humanity is requesting that the CDC amend
the DDA to reflect that 1) loans to eligible families be entirely forgiven on the forty-fifth (45th)
anniversary date that the Resale Restriction is recorded against the restricted unit, 2) revise the
Low Income Definition to the DDA and any related documents, and 3) replace Attachment 5 with
a revised performance schedule.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the Chairman to execute an
Amendment to the Disposition and Development Agreement with San Diego Habitat for
Humanity including:
1. Amend Section 402. Add Section 402.7 with Exhibit "A" attached
hereto.
2. Amend Section 100. Definition. "Low Income Household"
definition is hereby deleted in its entirety from the DDA, and any related documents, and
replaced with Exhibit "B" attached hereto.
Resolution No. 2010 — 246
Page 2
3. Replacement of Attachment 5. Attachment No. 5 Schedule of
Performance" to the DDA is hereby deleted in its entirety and replaced with Exhibit "C" attached
hereto.
PASSED and ADOPTED this 9th day of November, 10.
on Morrison, Chairman
A'PROVED AS TO FORM:
sel
Exhibit A
402.7. Upon the timely completion of the Affordable Units in accordance
with this Agreement, the Developer Note will be partially forgiven and the
remaining balance will convert to first-time homebuyer loans to Low -Income
Households to assist those Low -Income Households with the purchase of
Affordable Units, as provided in more detail herein. A portion of the Developer
Note will be assumed by each eligible low income purchaser of an Affordable
Unit, concurrently with the purchase of an Affordable Unit. At such time the
purchaser of the Affordable Unit shall execute a promissory note in favor of the
CDC (the "First -Time Homebuyer Note"), in an amount to be determined as set
forth in this Agreement. The Affordable Units shall also be subject to a Resale
Restriction in the form set forth herein as Attachment 10, secured by a deed of
trust. The First -Time Homebuyer Notes shall not require monthly payments and
will be due and owing only upon sale, transfer, further encumbrance, refinancing,
the failure of the Low -Income Households to occupy the Affordable Unit, or other
transfer, as defined in the First -Time Homebuyer Note and Resale Restrictions.
The CDC Note shall be deemed satisfied on the forty-fifth (45th) anniversary of
the date this Resale Restriction is recorded against the Restricted Unit, provided
that the Owner and its successors in interest to the Restricted Unit remained in
compliance with the terms of this Resale Restriction throughout the Affordability
Period. The initial sale price of the Affordable Units shall not exceed the
Maximum Purchase Price, as defined below.
Exhibit B
"Low Income Household" means persons and families whose income does not
exceed Eighty percent (80%) of the then current Area Median Income, provided
that such persons or families meet the additional requirements set forth in
Section 4 of the Agreement Affecting Real Property.
Exhibit C
Attachment 5
Schedule of Performance
ITEM
Completion of Phase 1
Close on Phase 1 homes
Commencement of Phase 2
Completion of Phase 2
Close on Phase 2 homes
COMPLETION DATE
December 2010
January 2011
January 2011
September 2011
Passed and adopted by the Community Development Commission of the City of
National City, California, on November 9, 2010, by the following vote, to -wit:
Ayes: Commissioners Morrison, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary,
evelopment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2010-246 of the Community Development Commission of the City
of National City, California, passed and adopted on November 9, 2010.
Secretary, Community Development Commission
By.
Deputy
EETING DATE:
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION
COUNCIL AGENDA STATEMENT
November 9, 2010
'aOOfo•`1 { (e.)
AGENDA ITEM NO. 27
ITEM TITLE:
Resolution of the Community Development Commission of the City of National City (CDC) approving
an amendment to the Disposition and Development Agreement with San Diego Habitat for Humanity,
Incorporated, allowing for first-time homebuyer promissory notes to be forgiven on the forty-fifth
anniversary date of purchase, amending definition of low income household, and revising development
schedule. (Community Development)
PREPARED BY: Alfredo Ybarra DEPARTMENT: C•rvi, nity Development
PHONE: 619 336-4279 APPROVED BY:
EXPLANATION:
On October 7, 2008, the City Council authorized the Chairman to execute a Disposition and
Development Agreement (DDA) for the development of eight (8) two-story for sale townhomes to be
sold as affordable to buyers earning at or below 60-percent Average Median Income ("AMI") as defined
by HUD. The 15,246 square feet parcel is located at 1820 G Avenue. Currently, the project is
approximately 60% complete.
Habitat for Humanity is requesting amendments to the DDA allowing that each unit be sold to families
earning at or below 80-percent Area Median Income (AMI) rather than 60-percent AMI, 2) revision to the
erformance schedule, and 3) CDC loans be forgiven after 45 years.
FINANCIAL STATEMENT: APPROVED:
ACCOUNT NO. APPROVED:
Not applicable
ENVIRONMENTAL REVIEW:
Not applicable
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
Finance
MIS
STAFF RECOMMENDATION:
Community Development Commission adopt resolution
BOARD / COMMISSION RECOMMENDATION:
Not Applicable
TTACHMENTS:
1. Letter from Habitat for Humanity requesting amendments to the DDA
2. First Amendment to Disposition and Development Agreement (G Avenue)
F=:�o�vt�oN too o • 4•i6
U ,
NATI
- TNCORPORAT
November 15, 2010
Ms. Cheryl Keenan
San Diego Habitat for Humanity, Inc.
10222 San Diego Mission Road
San Diego, CA 92108
Dear Ms. Keenan,
OFFICE OF THE CITY CLERK
1243 National City Blvd.
National City, California 91950
Michael R. Della, CMC - City Clerk
619-336-4228 phone • 619-336-4229 fax
On November 91h, 2010, Resolution No. 2010-246 was passed and adopted by
the Community Development Commission of the City of National City, authorizing
execution of an Amendment to the Disposition and Development Agreement with
San Diego Habitat for Humanity.
We are enclosing for your records a certified copy of the above Resolution and a
fully executed original Amendment.
Sincerely,
A
Michael R. Dalla, CMC
City Clerk
Enclosures
cc: Community Development Commission