HomeMy WebLinkAbout2019 CON C Avenue 8 Plex LLC - 1821 C Avenue - Affordable Housing Density Bonus and Performance Deed of TrustNo Fees per Government Code 6103 ]
RECORDING REQUESTED BY: ]
National City Community ]
Development Commission
WHEN RECORDED MAIL TO:
National City Community
Development Commission
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
DOC# 2019-0506413
IIIIII IIIII IIIII IIIII IIII illlll IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII
Nov 05, 2019 10:09 AM
OFFICIAL RECORDS
Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $0.00 (SB2 Atkins: $0.00)
AFFORDABLE HOUSING DENSITY BONUS AGREEMENT
(1821 C Avenue, National City)
PAGES: 12
THIS AFFORDABLE HOUSING DENSITY BONUS AGREEMENT ("Agreement") is
dated as of the C,544" day of S Qiktv.kb e.t' , 2019, by and between the City of National
City ("City"), and C Avenue 8 P1ex1ILLC, a California limited liability company ("Developer").
WHEREAS, Developer is the owner of that certain real property generally located at
1821 C Avenue, in the City of National City, County of San Diego, more particularly described
in Exhibit "A" attached hereto ("Property"); and
WHEREAS, the General Plan and Zoning Ordinance of National City permit no more
than eight (8) housing units on the Property; and
WHEREAS, Developer proposes to develop a total of ten (10) housing units on the
Property ("Development"); and
WHEREAS, pursuant to Government Code section 65915, and Sections 18.48.030, et
seq. of the National City Municipal Code, the Developer has proposed to construct and restrict
the rent and occupancy of one (1) residential dwelling unit ("Affordable Unit") to a low-income
household in exchange for a density bonus ("Density Bonus") which will allow the construction
of the ten (10) unit Development on the Property. In addition to the Density Bonus, the
Developer has requested and received incentives or concessions set forth in Government Code
Section 65915; and
WHEREAS, This Agreement will serve to memorialize Developer's obligation to
provide the one (1) Affordable Unit, the time frame for the construction and occupancy of the
Affordable Unit and the restriction of the Affordable Unit by the recordation of this Agreement
assuring affordability for a total of fifty-five (55) years measured from the issuance of final
inspection approval for the Development.
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NOW, THEREFORE, in consideration of the foregoing and of the mutual terms and
covenants hereinafter set forth and other good and valuable consideration, the City and
Developer agree as follows:
1. Acknowledgement of Incentives. Developer acknowledges and agrees that, in addition to
the Density Bonus, Developer is receiving incentives and concessions pursuant to and in
accordance with the requirements of Government Code 65915.
2. Developer Covenants. Pursuant to and in consideration of the Density Bonus and the
additional incentives and concessions, Developer hereby agrees and covenants on behalf of itself
and its successors and assigns, and each successor in interest to the Property, that at all times
during the term of this Agreement one (1) three bedroom residential dwelling unit on the
Property shall be rented and occupied as an Affordable Unit as set forth in this Agreement. As
used herein the term "Affordable Unit" shall refer to the one (1) residential dwelling unit on the
Property which is held available strictly in accordance with the terms and conditions set forth in
this Agreement.
3. Affordability Restrictions.
(a) Area Median Income. As used herein, "Area Median Income" shall mean the
area median income, as adjusted for family size, for the San Diego -Carlsbad Metropolitan
Statistical Area, established periodically by the U.S. Department of Housing and Urban
Development ("HUD") and published in the Federal Register. In the event HUD ceases to
publish an established Area Median Income as aforesaid, the City may, in its sole discretion, use
any other reasonably comparable method of computing Area Median Income.
(b) Occupancy Restrictions. During the term of this Agreement, the Affordable Unit
shall be occupied by a family earning at or below eighty percent (80%) of the Area Median
Income.
(c) Rent Amount. During the term of this Agreement, the monthly rental rate the
Affordable Unit (which shall include a utility allowance based on the utility allowance schedules
published annually by Landlord) shall not exceed 1/12 of thirty percent (30%) of sixty percent
(60%) of the Area Median Income, as adjusted for assumed family size and utilities. The
imputed household size for the Affordable Unit shall be equal to the number of bedrooms in the
unit plus one. For example, the rent for a two -bedroom unit shall be calculated using sixty
percent (60%) of the Area Median Income for a three -person household.
4. Restrictions. The following restrictions shall also be applicable to the Affordable Unit:
(a) No Relationship With Developer. The Affordable Unit shall not be occupied or
leased to Developer or any relative (by blood or marriage) of Developer or any person employed
by Developer or of any individuals who are members, principals, executives, directors, partners
or shareholders of Developer or in any entity having an ownership in Developer or in the
Property.
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(b) No FullTime Students. No Affordable Unit shall be occupied or leased to any
household comprised exclusively of persons who are full-time students, unless such persons are
married and eligible to file a joint federal income tax return and both of such persons reside in
the Affordable Unit. The term "full-time student" shall be defined as any person who will be or
has been a full-time student during five calendar months of the calendar year in question at an
educational institution (other than a correspondence school) with regular faculty and students.
(c) No Student Dependents. Notwithstanding the provisions of section 4(b), no
Affordable Unit shall be occupied or leased to any student dependent as defined in the U.S.
Internal Revenue Code, unless the taxpayer (upon whom the student in. question is dependent)
resides in the same unit.
(d) No Owners of Real Property. No Affordable Unit shall be occupied or leased to
any person or any household comprised of one or more persons who own real property.
(e) Liquid Asset Limitation. No Affordable Unit shall be occupied or leased to any
person or household holding, directly or indirectly, liquid assets whose aggregate value exceeds,
at the time of determination of eligibility, eighty percent (80%) of the then -current annual Area
Median Income. As used herein, the term "liquid assets" refers to cash and assets which are
readily convertible to cash within a reasonable period, including but not limited to savings and
checking accounts, certificates of deposit of any term, marketable securities, money market and
similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid assets"
shall not include retirement funds which are not readily accessible or which cannot be accessed
by the tenant without the tenant incurring a penalty.
(f) Income of Co -Tenants. The income of all co -tenants and/or occupants shall be
taken into account in determining whether a tenant or prospective tenant meets the requirements
of this Agreement.
(g) Eligible Tenants Increased Income. If as a result of the annual recertification
procedure described above any household which was previously determined to be eligible to
occupy an Affordable Unit is determined to be ineligible as a result of increased income or
assets, the City will provide written notification thereof, and Developer shall have one hundred
eighty days (180) from the date of notification to take all reasonable steps to pursue eviction of
the ineligible household. If Developer fails to act within the one hundred eighty day (180)
period, the City shall require payment of a fee by Developer, provided that no fee shall be
payable so long as Developer is diligently pursuing eviction of the ineligible household by
appropriate proceedings. Under this fee requirement, the ineligible tenant residing in the
Affordable Unit shall pay the full market rate rent, and Developer shall pay the difference
between the affordable rent and the full market rate rent, as determined by the City, to the City.
The period of fee payment shall in no event exceed a period of six (6) months, at which time
Developer's failure to provide such Affordable Unit to a household eligible hereunder shall
constitute a material default under this Agreement.
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5. Term. Pursuant to Government Code Section 65915, this Agreement shall be effective
on the date of its recordation and shall remain in force until the date that is fifty-five (55) years
from the date of issuance of final inspection approval of the Development by the City.
6. Deed of Trust.
(a) Execution and Recordation. Developer shall, concurrently with the execution of
this Agreement, execute, acknowledge and record a deed of trust on the Property ensuring timely
performance of the obligations set forth in this Agreement ("Deed of Trust"). The Deed of Trust
shall be subordinated to the construction deed(s) of trust and/or permanent financing in favor of
institutional lenders, as approved by the City Manager. The subordination shall be upon such
terms and conditions and for such periods of time as the City Manager may approve to protect
the provision of affordable housing as required by this Agreement. The City shall reconvey the
Deed of Trust following the expiration of the term of this Agreement.
(b) Foreclosure on the Property. In the event of a foreclosure on the Property which
eliminates the Deed of Trust, the new owner, upon five (5) days written notice from the City,
shall: (i) execute, acknowledge and deliver to the City an assignment and assumption of this
Agreement in a form as approved by the City, in its reasonable discretion, for recordation; (ii)
execute, acknowledge and deliver to the City a deed of trust, in a form as approved by the City,
in its reasonable discretion, to be recorded against the Property, in a lien priority immediately
junior to the assignment and assumption of this Agreement which will secure the performance of
this Agreement; and (iii) reimburse the City for all of its attorneys' fees and costs in connection
with the foregoing, including all costs, attorneys' fees, and expert witnesses fees incurred by the
City in obtaining compliance by the new owner, including those incurred in litigation, if any.
7. Verification of Eligibility. The Affordable Unit shall not be rented to a prospective
tenant or occupied by any person unless and until the City, through its designated staff, has
verified that the prospective tenant or occupant is eligible and that affordable rents will be
charged in accordance with the criteria set forth in this Agreement. Developer and/or its
successor in interest shall ensure that all eligibility and rent criteria are met during the term of the
Agreement. Annually, on the anniversary of the initial certification of compliance, as
determined by the City, during the term of this Agreement, Developer or its successor in interest
shall certify to the City that the Affordable Unit is being occupied by eligible tenants. Said
certification shall be on forms acceptable to the City.
8. Maintenance Standards. During the term of this Agreement, Developer shall maintain the
unit(s) subject to this Agreement and the Property in a condition that satisfies the more stringent
of (a) the requirements of the applicable local codes or (b) the United States Department of
Housing and Urban Development's Uniform Physical Conditions Standards. The City shall have
the right to inspect the Affordable Unit and the Property prior to initial occupancy and
periodically during the term of this Agreement, upon three business days' notice to Developer.
The City shall have the right to disclose results of those inspections to the appropriate
enforcement authorities. Any deficiencies in the physical condition of the Affordable Unit shall
be corrected by Developer at Developer's expense within thirty (30) days of the identification of
such deficiency by the City and delivery of written notice of the same to Developer. Failure to
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maintain the unit(s) and the Property in compliance with this section shall constitute a breach of
this Agreement and subject the Developer to damages as set forth in Section 13 of this
Agreement.
9. Interpretation and Construction. If any provision of this Agreement or the application
thereof to any person or circumstance is found to be invalid, the remainder of the provisions of
this Agreement and the application of such provisions to persons or circumstances, other than
those as to which it is found to be invalid, shall not be affected thereby. Nothing contained
herein shall be deemed compliance with or waiver of any provision of law or conditions of
approval except as expressly stated herein.
10. Design, Construction and Occupancy Schedule for the Affordable Unit. The Affordable
Unit shall receive final inspection approval no later than the date that the market -rate units
receive final inspection and approval. Time is of the essence in the occupancy of the Affordable
Unit. The City Manager may, in his or her sole discretion, extend one or more time deadlines for
performance as referenced in this Agreement for good cause.
11. Indemnity. Developer agrees to indemnify, defend and hold harmless the City, the
National City Community Development Commission, and any and all of their respective
councilmembers, commissioners, members, officers, agents, servants and employees (the
"Indemnitees") from and against all claims, liens, claims of lien, losses, damages, costs, and
expenses, whether direct or indirect, arising in any way from the construction, sale, rental or
operation of the Development, the Property and/or any of the units, or from the default by
Developer in the performance of its obligations under this Agreement; provided, however, that
Developer shall not be required to indemnify, defend or hold harmless any of the Indemnitees
from claims, losses, damages, costs and expenses related to the sole negligence or willful
misconduct of the Indemnitees.
12. Agreement Binding on Successors. The terms, covenants and conditions of this
Agreement shall apply to, and shall bind the parties hereto and any successors or assignees.
Developer shall not sell, transfer or otherwise dispose of the Property, any portion thereof, or any
interest therein unless the proposed transferee shall have executed and delivered to the City an
express written assumption of all of Developer's obligations under this Agreement, on a form
reasonably acceptable to the City. Upon assignment and assumption by a successor entity, as
approved by the City, Developer shall be released from all prospective liability and responsibility
under the terms of this Agreement. Developer agrees that all of its obligations hereunder shall
constitute covenants, which shall run with the land and shall be binding upon the Property and
upon every person having any interest therein at any time and from time to time during the term
of this Agreement. Further, Developer agrees that, if a court of competent jurisdiction
determines that the obligations set forth herein do not qualify as covenants running with the land,
they shall be enforced as equitable servitudes. Any sale or conveyance of the Property shall be
made subject to this Agreement.
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13. Damages; Enforcement; Remedies; Security.
(a) Standing; Equitable Remedies; Remedies Cumulative. Developer expressly
agrees and declares that the City shall be the proper party to, and shall have standing to, initiate
and pursue any and all actions or proceedings, at law or in equity, to enforce the provisions
hereof and/or to recover damages for any event that is expressly stated to be a material default
hereunder and which event remains uncured following sixty (60) days' written notice to
Developer from the City (or up to one hundred twenty (120) days after notice, if actions to
correct the material default have been timely initiated and are, in the reasonable opinion of the
City, being diligently pursued), notwithstanding the fact that such damages or the detriment
arising from such a material default that remains uncured as aforesaid may have actually been
suffered by some other person or by the public at large. Further, Developer expressly agrees that
injunctive relief and specific performance are proper pre-trial and/or post -trial remedies
hereunder to assure compliance with this Agreement. Nothing in this Section and no recovery by
the City shall restrict or limit the rights or remedies of persons or entities other than the City,
against Developer in connection with the same or related acts by Developer, provided that
Developer shall not be subject to duplicate awards or recoveries. The remedies set forth in this
Section are cumulative and not mutually exclusive, except to the extent that their award is
specifically determined to be duplicative by final order of a court of competent jurisdiction.
Further, the award of damages hereunder shall not bar the exercise of police power or other
governmental powers, or the pursuit of criminal, civil or administrative penalties by the City in
connection with any material default under this Agreement that remains uncured as aforesaid.
Developer acknowledges that a material default under this Agreement that remains uncured may
constitute a violation of state law.
(b) Remedies At Law For Breach Of Rental Restrictions. In the event of any material
default under the provisions hereof that remains uncured following thirty (30) days written notice
to Developer from the City (or up to ninety (90) days after notice, if actions to correct the
material default have been timely initiated and are, in the reasonable opinion of the City, being
diligently pursued) regarding restrictions on rental of the Affordable Unit, at the sole option of
the City, the City shall be entitled to the following remedies at law to the extent they are not
duplicative, the election of which shall not be required and may be revoked and/or modified until
immediately prior to entry of judgment:
(1) Damages For Specific Breach. The City shall be entitled to recover
compensatory damages, at its sole option in the event of a material uncured default under the
terms of this Agreement. If the material uncured default in question involves the violation of
Section 13(b) above, the amount of such compensatory damages shall be the product of
multiplying (A) the number of months that the material uncured default in question has
continued (following expiration of Developer's cure period) until the time of trial or cure,
whichever occurs first, by (B) the result of subtracting (i) the rents properly chargeable
hereunder for the Affordable Unit (ii) the rents actually collected by Developer for the
Affordable Unit for the months in question, as reasonably determined by the City. Developer
and the City agree that it would be extremely difficult or impracticable to ascertain the precise
amount of actual damages accruing to the City as a result of such a material uncured default and
that the foregoing formula is a fair and reasonable method of approximating such damages. The
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City shall be entitled to seek and to recover damages in separate actions for successive, separate
breaches, which may occur during the term of this Agreement. Further, interest shall accrue on
the amount of such damages from the date of the expiration of Developer's cure period for the
material uncured breach in question at the rate of ten percent (10%) per annum or the maximum
rate then allowed by law, whichever is less. Nothing in this section shall preclude the award of
exemplary damages as allowed by law.
(2) Acceleration and Liquidation of Future Performance. At the sole option of
the City, if any material default by Developer in the performance of its obligations under this
Agreement remains uncured for more than ninety (90) days after written notice to Developer by
the City specifying such breach in reasonable detail (or such longer period of time, not to exceed
six (6) months, as may reasonably be required for Developer to cure such breach exercising
reasonable diligence), Developer's obligation to perform hereunder may be accelerated by the
City and declared immediately due through the payment of a liquidated sum. Developer and the
City agree that it would be extremely difficult and impractical to predict the precise cost to the
City of (i) locating rental units equivalent to the Affordable Unit, (ii) procuring such units
(through purchase, lease or subsidies) at the rent discounts contemplated herein, (iii) performing
the substantial administrative activities associated with replacing the Affordable Unit, and (iv)
inflation. Therefore, Developer and the City agree that, in the event of a material default
hereunder by Developer that remains uncured as aforesaid, and upon written notice from the City
to Developer that the City has elected to exercise its option to accelerate and liquidate
Developer's performance hereunder in accordance with the provisions of this Section 13(b)(2),
Developer shall pay, and the City shall be entitled to receive, within thirty (30) days of the City's
delivery of such written notice, in complete liquidation of the City's future monetary damages
and Developer's future obligations under this Agreement, a lump sum payment equal to: (A) the
aggregate of the mathematical differences between the monthly rent for "Comparable Market
Rate Unit" (as determined by the City, using statistical data for units of the same size and
location at the time of the breach) and the monthly rent allowable hereunder for the Affordable
Unit, at the date of delivery of the aforesaid written notice of election to accelerate, multiplied by
(B) the number of months remaining in the term of this Agreement, from and after the date of
delivery of the aforesaid written notice of election to accelerate. Developer and the City agree
that acceleration is a fair and reasonable remedy for non-compliance hereunder, and that the
foregoing formula represents a fair and reasonable method of approximating and liquidating the
future monetary obligations of Developer to the City hereunder for purposes of any such optional
acceleration by the City. Further, such liquidated amount shall automatically commence to bear
interest at the rate of ten percent (10%) per annum or the maximum rate then allowed by law,
whichever is less, from and after the date that the City delivers to Developer the aforesaid written
notice of the City's election to accelerate Developer's performance hereunder, until paid.
Further, if Developer breaches this Section 13(b)(2), the City shall be entitled to receive all
reasonable attorneys' fees, costs of suit, title insurance charges, foreclosure costs and other out-
of-pocket expenses reasonably incurred in recovering such liquidated amount.
14. Monitoring Fees. Developer shall pay to the City, each year during the term of this
Agreement, an annual monitoring fee, as determined by the City in schedules promulgated by the
City from time to time. Failure to timely pay such fees shall constitute a material default under
this Agreement.
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15. General Provisions.
(a) Waiver. No provision of this Agreement, or breach of any provision, can be
waived except in writing. The waiver by any party of any breach or violation of any term,
covenant or condition of this Agreement or of any provisions, ordinance or law, shall not be
deemed to be a waiver of any other term, covenant, condition, ordinance or law or any
subsequent breach or violation of the same or of any other term, covenant, condition, ordinance
or law.
(b) Costs and Attorneys' Fees. The prevailing party in any action brought to enforce
the terms of this Agreement or arising out of this Agreement may recover its reasonable costs
and witness, expert and attorney's fees expended in connection with such an action from the
other party.
(c) Recordation. This Agreement shall be recorded in the Office of the County
Recorder of the County of San Diego senior to all monetary liens. City shall not be obligated to
issues permits prior to such delivery and recordation of this Agreement.
(d) Integration. The undersigned, and each of them, acknowledge and represent that
no promise or inducement not expressed in this Agreement has been made in connection with
this Agreement. This Agreement contains the entire agreement and understanding between the
parties as to its subject matter.
(e) Ownership of the Property. Developer represents and warrants that it is the owner
of the Property and has full authority to execute this Agreement.
(f) Counterparts. This Agreement may be executed in any number of counterparts
and, as so executed, the counterparts shall constitute one and the same Agreement. The parties
agree that each such counterpart is an original and shall be binding upon all the parties, even
though all of the parties are not signatories to the same counterpart.
(g) Notices. All notices given pursuant to this Agreement shall be in writing and sent
to the party at its address appearing below (a) by certified or registered U.S. mail, return receipt
requested, (b) overnight by a nationally recognized overnight courier such as UPS Overnight or
FedEx, or (c) by personal delivery. All notices shall be effective upon receipt (or refusal to
accept delivery). These addresses may be changed by any party by written notice to all other
parties.
If to City:
City of National City
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
8
If to Developer:
C Avenue 8 Plex, LLC
c/o Keith Robinson
2801 B Street #70
San Diego, CA 92102
(h) Exhibits and Recitals Incorporated. All exhibits referred to in this Agreement are
hereby incorporated in this Agreement by this reference, regardless of whether or not the exhibits
are actually attached to this Agreement. The Recitals to this Agreement are hereby incorporated
in this Agreement by this reference.
(i) Further Assurances. If Developer does not receive all of the necessary permits
and approvals to construct the Project, Developer and the City agree that this Agreement and the
density bonus granted herein shall be null and void and of no further force and effect and
Developer and the City agree to take all reasonable steps and to execute and cause to be recorded
all documents reasonably necessary to remove this Agreement and the Deed of Trust from the
record chain of title to the Property.
16. Risk of Market Conditions. Developer shall bear sole responsibility for developing,
constructing and marketing the units covered by this Agreement, pursuant to the approvals that
the City has issued for the Development and the requirements contained in this Agreement. The
City shall have no obligation to amend this Agreement, and the Developer shall reimburse the
City for administrative costs associated with any modification of this Agreement that shall
require the approval of the City Council of National City.
17. Signature Authority. All individuals signing this Agreement 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
other party hereto that he or she has the necessary capacity and authority to act for, sign and bind
the respective entity or principal on whose behalf he or she is signing.
CITY OF NATIONAL CITY
By:
Br.. ston, City Manager
APPROVED AS TO FORM:
Angil P Morris -Jones, City Attorney
By:
Rjberto M. Contreras
Deputy City Attorney
[SIGNATURES CONTINUED ON FOLLOWING PAGE'
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DEVELOPER:
C Avenue 8 Plex, LLC, a California limited liability company
By:
Keith Robinson, Manager
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of San Diego )
On 'SE'. 2S4" , 2019, before me, 3 K. LE-VJ , notary
public, personally appeared }G�=., . i-1 �C��l�s0 N 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.
(Seal)
JIMMIE K. LEW
COMM. #2224385 Z
Notary Public • California g
San Diego County
Comm. Ex . ires Dec. 7, 2021
EXHIBIT "A"
Legal Description of the Property
That certain real property located in the City of National City, County of San Diego, State of
California more particularly described as follows:
Parcels 1, 2, 3 and 4 of Parcel Map No. 21545, in the City of National City, County of San Diego,
State of California, according to map thereof filed in the office of the County Recorder of said
County.
Assessor's Parcel Number: 560-222-38-00, 560-222-39-00, 560-222-40-00, 560-222-41-00.
(underlying APN: 560-222-35-00, 560-222-36-00, 560-222-37-00)
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No Fees per Government Code 6103
Recording Requested By:
National City Community
Development Commission
When Recorded Mail To:
National City Community
Development Commission
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
DOC# 2019-0506412
1111111111111111111111111111111111111111111111111111111111111
Nov 05, 2019 10:09 AM
OFFICIAL RECORDS
Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $0.00 (SB2 Atkins: $0.00)
PAGES: 9
DEED OF TRUST
(1821 C Avenue -Density Bonus Agreement)
THIS DEED OF TRUST is dated as of the PE"day of 6uc 2019, between C
Avenue 8Plex LLC, a California limited liability company ("Trustor" , whose address is 2801 B
Street #70, San Diego 92102, Lawyers Title Company ("Trustee"), and the City of National City
("Beneficiary"), whose address is 1243 National City Boulevard, National City, California
91950.
TRUSTOR HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with
power of sale, all that property in the City of National City, County of San Diego, State of
California, described as ("Property"):
(See Legal Description - Exhibit "A")
FOR THE PURPOSE OF SECURING:
(1) The timely performance of the Affordable Housing Density Bonus Agreement of even
date herewith ("Agreement"), between the Beneficiary and the Trustor, and any renewals,
extensions, modifications or amendments to the Agreement by the Trustor and each and every
covenant set forth herein; and
(2) The performance of each agreement contained in this Deed of Trust.
A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR
AGREES:
1. Defense of Security. To appear in and defend any action or proceeding purporting to
affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; and to
pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable
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sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any
suit brought by Beneficiary to foreclose on this Deed of Trust.
2. Payment of Liens and Taxes. To pay, at least ten (10) days before delinquency, all taxes
and assessments affecting the Property, including assessments on appurtenant water stock, all
encumbrances, charges, and liens, with interest, on the Property or any part of the Property,
which appear to be prior or superior to this Deed of Trust, and all costs, fees, and expenses of
this Deed of Trust. If Trustor fails to make any payment or to do any act as provided in this
Deed of Trust, then Beneficiary or Trustee may (but is not obligated to) make the payment or do
the act in the required manner and to the extent deemed necessary by Beneficiary or Trustee to
protect the security of this Deed of Trust. The performance by Beneficiary or Trustee of such an
act shall not require notice to or demand upon Trustor and shall not release Trustor from any
obligation under this Deed of Trust. Beneficiary or Trustee shall also have the following related
rights and powers: to enter upon the Property for the foregoing purposes; to appear in and
defend any action or proceeding purporting to affect the security of this Deed of Trust or the
rights or powers of Beneficiary or Trustee; to pay, purchase, contest, or compromise any
encumbrance, charge, or lien that in the judgment of either appears to be prior or superior to this
Deed of Trust; to employ counsel; and to pay necessary expenses and costs, including attorneys'
fees.
3. Reimbursement of Costs. To pay immediately and without demand all sums expended by
Beneficiary or Trustee pursuant to this Deed of Trust, with interest from date of expenditure at
the amount allowed by law in effect at the date of this Deed of Trust, and to pay any reasonable
amount demanded by Beneficiary (up to the maximum allowed by law at the time of the
demand) for any statement regarding the obligation secured by this Deed of Trust.
4. Use. That it will not permit or suffer the use of any of the Property for any purpose other
than the use for which the same was intended at the time this Deed of Trust was executed.
5. Incorporation of Agreement. That the Agreement is incorporated herein by reference and
made a part of this Deed of Trust.
6. Performance of Other Obligations. To perform, in a timely manner, each agreement and
covenant by and between Trustor on any and all notes, loans and deeds of trust that are senior
and/or junior to this Deed of Trust. A default in any of these obligations, beyond any applicable
cure period, shall constitute a default under this Deed of Trust.
B. THE PARTIES AGREE THAT:
7. Waiver of Late Payments. By accepting payment of any sum secured by this Deed of
Trust after its due date, Beneficiary does not waive its right either to require prompt payment
when due of all other sums so secured or to declare default for failure to pay any indebtedness
secured by this Deed of Trust.
2
8. Full Reconveyance. Upon expiration of the term of the Agreement and written request of
Beneficiary, and payment of Trustee's fees and charges, Trustee shall reconvey, without
warranty, the Property then subject to this Deed of Trust. The recitals in the reconveyance shall
be conclusive proof of the truthfulness of the recitals. The grantee in the reconveyance may be
described as "the person or persons legally entitled thereto."
9. Assignment of Rents. As additional security, Trustor hereby gives to and confers upon
Beneficiary the right, power, and authority during the continuance of this Deed of Trust, to
collect the rents, issues, and profits of the Property, but reserves the right, prior to any default by
Trustor in payment of any indebtedness secured by this Deed of Trust or in the performance of
any agreement under this Deed of Trust, to collect and retain these rents, issues, and profits as
they become due and payable. Upon any such default beyond any applicable cure period,
Beneficiary may, without notice and without regard to the adequacy of the security for the
indebtedness secured by this Deed of Trust, either personally or by agent or court -appointed
receiver, do the following: enter upon and take possession of the Property or any part of the
Property; sue for or otherwise collect all rents, issues, and profits, including those past due and
unpaid; and apply these rents, issues, and profits, less costs and expenses of operation and
collection (including reasonable attorneys' fees), upon any indebtedness secured by this Deed of
Trust, in any order determined by Beneficiary. The exercise of the foregoing rights by
Beneficiary shall not cure or waive any default or notice of default under this Deed of Trust or
invalidate any act done pursuant to such a notice.
10. Default and Foreclosure. Upon default under the Agreement, subject to any applicable
notice and cure rights contained in the Agreement, or in the performance of any obligation under
this Deed of Trust beyond any applicable cure period, Beneficiary may declare all obligations
secured by this Deed of Trust immediately due and payable by delivering to Trustee a written
declaration of default and demand for sale and a written notice of default and election to sell the
Property. Trustee shall cause the notice of default and election to sell to be recorded. After the
required time period has lapsed following the recordation of the notice of default, and after
notice of sale has been given as required by law, Trustee, without demand on Trustor, shall sell
the Property at the time and place specified in the notice of sale, either as a whole or in separate
parcels, and in any order determined by Trustee, at public auction to the highest bidder for cash
in lawful money of the United States, payable at the time of sale. Trustee may postpone sale of
all or any portion of the Property by public announcement at the time and place of sale, and from
time to time thereafter may postpone the sale by public announcement at the time fixed by the
preceding postponement. Trustee shall deliver to the purchaser at the auction its deed conveying
the Property sold, but without any covenant or warranty, express or implied. The recital in the
deed of any matter or fact shall be conclusive proof of the truthfulness of the recital. Any
person, including Trustor, Trustee, or Beneficiary, may purchase at the sale. After deducting all
costs, fees, and expenses of Trustee and Beneficiary under this paragraph, including costs of
procuring evidence of title incurred in connection with sale, Trustee shall apply the proceeds of
sale to payment of: all sums expended under the terms of this Deed of Trust, not then repaid,
with accrued interest at the amount allowed by law in effect at the date of this Deed of Trust; all
other sums then secured by this Deed of Trust; and the remainder, if any, to the person or persons
legally entitled to the remaining proceeds.
3
11. Due on Sale or Further Encumbrance. Trustor shall not sell, transfer or otherwise dispose
of the real property described in this deed of trust, or any portion thereof, or any interest therein
unless the proposed transferee shall have executed and delivered to the Beneficiary an express
written assumption of all of Trustor's obligations hereunder this deed of trust, on a form
reasonably acceptable to the Beneficiary. Consent to one transaction of this type will not
constitute a waiver of the right to acquire consent to future or successive transactions.
12. General Provisions. This Deed of Trust applies to, inures to the benefit of, and binds all
parties to this Deed of Trust and their heirs, legatees, devisees, administrators, executors,
successors, and assigns. The term "Beneficiary" shall mean the City of National City, and its
successors and assigns. In this Deed of Trust, whenever the context so requires, the masculine
gender includes the feminine and/or neuter, and the singular number includes the plural.
13. Substitution of Trustees. Beneficiary, or any successor in ownership of any obligations
secured by this Deed of Trust, may from time to time, by written instrument, substitute a
successor or successors to any Trustee named in or acting under this Deed of Trust. The
substitution instrument shall contain the name of the original Trustor, Trustee, and Beneficiary
under this Deed of Trust, the book and page where this Deed is recorded, and the name and
address of the new Trustee. When executed by Beneficiary and duly acknowledged and
recorded in the office of the recorder of the county or counties where the Property is situated, the
substitution instrument shall be conclusive proof of proper substitution of the successor Trustee
or Trustees. Any successor Trustee or Trustees shall, without conveyance from the Trustee
predecessor, succeed to all its title, estate, rights, powers, and duties.
14. Cumulative Powers and Remedies. The powers and remedies conferred in this Deed of
Trust are concurrent and cumulative to all other rights and remedies provided in this Deed of
Trust or given by law. These powers and remedies may be exercised singly, successively, or
together, and as often as deemed necessary.
15. Conclusiveness of Recitals. The recitals contained in any reconveyance, trustee's deed,
or any other instrument executed by the Trustee from time to time under the authority of this
Deed of Trust or in the exercise of its powers or the performance of its duties under this Deed of
Trust, shall be conclusive evidence of their truth, whether stated as specific and particular facts,
or in general statements or conclusions absent manifest error. Further, the recitals shall be
binding and conclusive upon the Trustor, its heirs, executors, administrators, successors, and
assigns, and all other persons.
16. Attorneys' Fees. If any action is brought for the foreclosure of this Deed of Trust or for
the enforcement of any provision of this Deed of Trust (whether or not suit is filed), Trustor
agrees to pay all costs and expenses of Beneficiary and Trustee, including reasonable attorneys'
fees; and these sums shall be secured by this Deed of Trust. The prevailing party in any
litigation, including but not limited to arbitration, writ petitions, complaints, and/or actions for
declaratory relief, brought to enforce, interpret or reform the provisions of this Deed of Trust
shall be entitled to reasonable attorneys' and experts' fees, costs and out-of-pocket expenses
(whether or not considered recoverable "costs" under applicable statute) incurred in such
litigation.
4
17. Request for Notices of Default and Sale. In accordance with Section 2924b of the
California Civil Code, request is hereby made that a copy of any Notice of Default and a copy of
any Notice of Sale under that Deed of Trust executed by the Trustor concerning this Property be
mailed to:
City of National City
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the
address contained in this recorded request. If your address changes, a new request must be
recorded.
18. Inspections. Trustor shall permit Beneficiary and its agents or representatives, to inspect
the Property at any and all reasonable times, upon 48 hours advance notice to Trustor.
Inspections shall be conducted so as not to interfere with the tenants' use and enjoyment of the
Property.
19. Hazardous Materials Defined. For purposes of this Deed of Trust, "Hazardous Materials"
means and includes any flammable, explosive, or radioactive materials or hazardous, toxic or
dangerous wastes, substances or related materials or any other chemicals, materials or
substances, exposure to which is prohibited, limited or regulated by any federal, state, county,
regional or local authority or which, even if not so regulated, may or could pose a hazard to the
health and safety of the occupants of the Property or of property adjacent to the Property,
including, but not limited to, asbestos, PCBs, petroleum products and byproducts, substances
defined or listed as "hazardous substances" or "toxic substances" or similarly identified in,
pursuant to, or for purposes of, the California Solid Waste Management, Resource Recovery and
Recycling Act (California Government Code Section 66700 et seq.), the Comprehensive
Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. Section
9601, et se_c .), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et semc .), the
Resource Conservation and Recovery act (42 U.S.C. Section 6901, et semc .), Section 25117 or
Section 25316 of the California Health & Safety Code; and any so-called "Superfund" or
"Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation,
order or decree regulating, relating to or imposing liability or standards of conduct concerning
any hazardous, toxic or dangerous waste, substance or material; or any substances or mixture
regulated under the Toxic Substance Control Act of 1976, as now or hereafter amended (15
U.S.C. Section 2601 et semc .); and any "toxic pollutant" under the Clean Water Act, as now or
hereafter amended (33 U.S.C. Section 1251 et seq.); and any hazardous air pollutant under the
Clean Air Act, as now or hereafter amended (42 U.S.C. Section 7901 et seq.). Notwithstanding
the above, the term "Hazardous Materials" shall not include small amounts of chemicals,
cleaning agents and the like commonly employed in routine household uses in a manner typical
of occupants in other similar residential properties provided they are used in compliance with
applicable laws. The term "Hazardous Materials Laws" means any federal, state or local law,
code, statute, ordinance, rule, regulation, rule of common law or guideline relating to Hazardous
5
Materials now or hereafter enacted or promulgated (collectively, and including, without
limitation, any such laws which require notice of the use, presence, storage, generation, disposal
or release of any Hazardous Materials to be provided to any party).
20. Trustor's Hazardous Materials Representations and Warranties and Indemnity. In
addition to the general and specific representations, covenants and warranties set forth in the
Deed of Trust or otherwise, Trustor represents, covenants and warrants, with respect to
Hazardous Materials, as follows:
(a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever
caused or permitted any Hazardous Materials to be manufactured, placed, held, located or
disposed of on, under or at the Property or any part thereof, and neither the Property nor any part
thereof, or any property adjacent thereto, has ever been used (whether by the Trustor or, to the
best knowledge of the Trustor, by any other person) as a manufacturing site, dump site or storage
site (whether permanent or temporary) for any Hazardous Materials;
(b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees,
contractors and agents, and hold Beneficiary, its officers, employees, contractors and agents
harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses and
claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against
Beneficiary, its officers, employees, contractors and agents for, with respect to, or as a direct or
indirect result of, the presence or use, generation, storage, release, threatened release or disposal
of Hazardous Materials on or under the Property or the escape, seepage, leakage, spillage,
discharge, emission or release of any Hazardous Materials from the Property (including, without
limitation, any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising
under CERCLA, any so-called "Superfund" or "Superlien" law, or any other federal, state or
local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or
imposing liability or standards of conduct concerning any Hazardous Materials) regardless of
whether or not caused by or within the control of Trustor, except to the extent arising as a result
of the negligence or willful misconduct of Beneficiary.
(c) Trustor has not received any notice of (i) the happening of any event involving the
use, spillage, discharge, or cleanup of any Hazardous Materials ("Hazardous Discharge")
affecting Trustor or the Property or (ii) any complaint, order, citation or notice with regard to air
emissions, water discharges, noise emissions or any other environmental, health or safety matter
affecting Trustor or the Property ("Environmental Complaint") from any person or entity,
including, without limitation, the United States Environmental Protection Agency ("EPA"). If
Trustor receives any such notice after the date hereof, then Trustor will give, within seven (7)
business days thereafter, oral and written notice of same to Beneficiary.
(d) Without limitation of Beneficiary's rights under this Deed of Trust, Beneficiary
shall have the right, but not the obligation, to enter onto the Property or to take such other actions
as it deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or
otherwise deal with, any such Hazardous Materials or Environmental Complaint upon its receipt
of any notice from any person or entity, including without limitation, the EPA, asserting the
existence of any Hazardous Materials or an Environmental Complaint on or pertaining to the
6
Property which, if true, could result in an order, suit or other action against Trustor affecting any
part of the Property by any governmental agency or otherwise which, in the sole opinion of
Beneficiary, could jeopardize its security under this Deed of Trust. All reasonable costs and
expenses incurred by Beneficiary in the exercise of any such rights shall be secured by this Deed
of Trust and shall be payable by Trustor upon demand together with interest thereon at a rate
equal to the highest rate payable by law.
(e) The foregoing representation, covenants, indemnities and warranties shall be
continuing and shall be true and correct for the period from the date hereof to the release of this
Deed of Trust (whether by satisfaction of the obligations secured hereby or foreclosure or action
in lieu thereof), and these representations, covenants, indemnities and warranties shall survive
such release.
21. Authority to Sign. All individuals signing this Deed of Trust 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
Beneficiary 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.
TRUSTOR:
C Avenue 8 Plex LLC, a California limited liability company
By:
Keith Robinson, Manager
7
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of San Diego
On SEPTEMBER 25TH , 2019, before me, JIMMIE K. LEW , notary
public, personally appeared KEITH ROBINSON 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.
8
(Seal)
• JIMMIE K. LEW
COMM. #2224385 z
r i"' Notary Public - California
z \ ,4 San Diego County
',men,' Comm. Ex fires Dec. 7, 2021
Exhibit "A"
Legal Description
That certain real property located in the City of National City, County of San Diego, State of
California more particularly described as follows:
Parcels 1, 2, 3 and 4 of Parcel Map No. 21545, in the City of National City, County of San
Diego,
State of California, according to map thereof filed in the office of the County Recorder of said
County.
Assessor's Parcel Number: 560-222-38-00, 560-222-39-00, 560-222-40-00, 560-222-41-00.
(underlying APN: 560-222-35-00, 560-222-36-00, 560-222-37-00)
9
RESOLUTION NO. 2019 — 140
RESOLUTION OF CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING
AN AFFORDABLE HOUSING DENSITY BONUS AGREEMENT WITH C AVENUE 8
PLEX, LLC, FOR THE DEVELOPMENT OF 10 UNITS LOCATED AT 1821 "C"
AVENUE AND RESTRICTING THE RENT AND OCCUPANCY OF ONE (1) UNIT TO
A LOW INCOME HOUSEHOLD IN EXCHANGE FOR A DENSITY BONUS
PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 65915 — 65918
WHEREAS, C Avenue 8 Plex, LLC ("Developer") is the owner of that certain real
property generally located at 1821 "C" Avenue ("Property"), in the City of National City,
County of San Diego; and
WHEREAS, the General Plan and Zoning Ordinance of the City of National City
permit no more than eight (8) housing units on the Property; and
WHEREAS, Developer proposes to develop a total of ten (10) housing units on the
Property ("Development"); and
WHEREAS, pursuant to Government Code Section 65915, and Sections
18.48.030, et seq. of the National City Municipal Code, the Developer has proposed to
construct and restrict the rent and occupancy of one (1) residential dwelling unit
("Affordable Unit") to a low-income household in exchange for a density bonus ("Density
Bonus") which will allow the construction of the ten (10)-unit Development on the
Property; and
WHEREAS, in addition to the Density Bonus, the Developer is entitled to receive
incentives and concessions as set forth in Government Code Section 65915 and the
Developer has independently and of its own free will chosen not to receive any such
incentives or concessions; and
WHEREAS, the Affordable Housing Density Bonus Agreement ("Agreement") will
serve to memorialize Developer's obligation to provide the one (1) Affordable Unit
including the time frame for the construction and occupancy of the Affordable Unit and
the restriction of the Affordable Unit by the recordation of the Agreement assuring
affordability for a total of fifty-five (55) years measured from the issuance of final
inspection approval for the Development; and
WHEREAS, a Performance Deed of Trust will also be recorded for the purpose of
securing the timely performance of the Agreement and the performance of each
agreement contained in the Performance Deed of Trust.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National
City, approves the Affordable Housing Density Bonus Agreement with C Avenue 8 Plex,
LLC, for the development of 10 units located at 1821 "C" Avenue and restricting the rent
and occupancy of one (1) unit to a low income household in exchange for a density bonus
as mandated by California Government Code Sections 65915 - 65918. After being
recorded by the County of San Diego, a copy of said Agreement will be on file in the Office
of the City Clerk.
Resolution No. 2019 — 140
Page Two
BE IT FURTHER RESOLVED that City Council of the City of National City will
record a Performance Deed of Trust securing the timely performance of the Affordable
Housing Density Bonus Agreement. After being recorded by the County of San Diego,
a copy of said Deed of Trust will be on file in the Office of the City Clerk.
PASSED and ADOPTED this 15th of October,
Ale'.ndra So elo-Solis, Mayor
ATTEST:
Mic ael R. D a, City Clerk
APPROVED AS TO FORM:
Passed and adopted by the Council of the City of National City, California, on
October 15, 2019 by the following vote, to -wit:
Ayes: Councilmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS
Mayor of the City of National City, California
MICHAEL R. DALLA
City Clerk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2019-140 of the City of National City, California, passed and
adopted by the Council of said City on October 15, 2019.
rr '4
A p
CI rk of the City of Na iona
City I City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
-baoti-�
MEETING DATE: October 15, 2019
AGENDA ITEM NO. 7
_ fEM TITLE:
Resolution of the City Council of the City of National City approving an Affordable Housing Density
Bonus Agreement with C Avenue 8 Plex LLC, for the development of 10 units located at 1821 "C"
Avenue and restricting the rent and occupancy of one (1) unit to a low income household in exchange
for a density bonus pursuant to California Government Code Sections 65915 - 65918.
PREPARED BY:
Greg Rose, Property Agent
PHONE: 619-336-4266 APPROVED BY:
EXPLANATION:
C Avenue 8PIex LLC (Developer) wants to develop their property located at 1821 "C" Avenue. Current
zoning allows for the construction of 8 units by right. The Developer will restrict the rent and occupancy
of one (1) unit to a low income household (below 80% of area median income) in exchange for a density
bonus of 23% mandated by California Government Code Sections 65915 — 65918, which will allow the
construction of an additional 2 units for a total of 10 units on the property. The Affordable Density
Housing Bonus Agreement ("Agreement") will serve to memorialize the Developer's obligation to
provide the one (1) affordable unit and the restriction of the affordable unit by the recordation of this
agreement assuring affordability for a total of fifty-five (55) years. A Performance Deed of Trust will also
be recorded to secure the Agreement on the property. See Background Report for information on the
f)ensity Roniis I aw
INANCIAL STATEMENT:
ACCOUNT NO.
N/A
DEPARTMENT: Housing Authority
APPROVED:
Finance
APPROVED: MIS
ENVIRONMENTAL REVIEW:
The Density Bonus Agreement is not considered a project as defined by the California Environmental
Quality Act (CEQA), and is therefore not subject to CEQA.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt the Resolution.
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
1. Background Report and Site Plan
2. Affordable Housing Density Bonus Agreement
3. Performance Deed of Trust
4. Resolution
Attachment No. 1
BACKGROUND REPORT
California's Density Bonus Law is a mechanism which allows developers to obtain more favorable local
development requirements in exchange for offering to build or donate land for affordable or senior
units. The Density Bonus Law (found in California Government Code Sections 65915 — 65918) provides
developers with powerful tools to encourage the development of affordable and senior housing,
including up to a 35% increase in project densities, depending on the amount of affordable housing
provided. The Density Bonus Law is about more than the density bonus itself, however. It is actually a
larger package of incentives intended to help make the development of affordable and senior housing
economically feasible. Other tools include reduced parking requirements, and incentives and
concessions such as reduced setback and minimum square footage requirements. Often these other
tools are even more helpful to project economics than the density bonus itself, particularly the special
parking benefits. Sometimes these incentives are sufficient to make the project pencil out, but for other
projects financial assistance is necessary to make the project feasible.
In determining whether a development project would benefit from becoming a density bonus project,
developers also need to be aware that:
• The Density Bonus is a state mandate. A developer who meets the requirements of the state law
is entitled to receive the density bonus and other benefits as a matter of right. As with any state
mandate, some local governments will resist complying with the state requirement. But many
local governments favor the density bonus as a helpful tool to cut through their own land use
requirements and local political issues.
• Use of a density bonus may be particularly helpful in those jurisdictions that impose inclusionary
housing requirements for new developments.
• Special development bonuses are available for developers of commercial projects who partner
with affordable housing developers to provide onsite or offsite affordable housing. Special
bonuses are also available for condominium conversion projects and projects that include child
care facilities.
• The Legislature has recently added density bonuses for housing developments for foster youth,
disabled veterans, homeless persons and college students.
Cities and counties are required to grant a density bonus and other incentives or concessions to housing
projects which contain one of the following:
• At least 5% of the housing units are restricted to very low income residents.
• At least 10% of the housing units are restricted to lower income residents.
• At least 10% of the housing units in a for -sale common interest development are restricted to
moderate income residents.
• At least 10% of the housing units are for transitional foster youth, disabled veterans or homeless
persons, with rents restricted at the very low income level.
• At least 20% of the housing units are for low income college students in housing dedicated for
full-time students at accredited colleges.
• The project donates at least one acre of land to the city or county for very low income units, and
the land has the appropriate general plan designation, zoning, permits and approvals, and
access to public facilities needed for such housing.
Background Report Page 1 of 2
Attachment No. 1
• The project is a senior citizen housing development (no affordable units required).
• The project is a mobile home park age -restricted to senior citizens (no affordable units
required).
Affordable rental units must be restricted by an agreement which sets maximum incomes and rents for
those units. As of January 1, 2015, the income and rent restrictions must remain in place for a 55 year
term for very low or lower income units. Rents must be restricted as follows:
• For very low income units, rents may not exceed 30% x 50% of the area median income for a
household size suitable for the unit.
• For lower income units, rents may not exceed 30% x 60% of the area median income for a
household size suitable for the unit.
• Area median income is determined annually by regulation of the California Department of
Housing and Community Development, based upon median income regulations adopted by the
U.S. Department of Housing and Urban Development.
• Rents must include a reasonable utility allowance.
• Household size appropriate to the unit means 1 for a studio unit, 2 for a one bedroom unit, 3 for
a two bedroom unit, 4 for a three bedroom unit, etc. In many cases, achieving a reduction in
parking requirements may be more valuable than the additional permitted units.
The Density Bonus Law is often used by developers to obtain more housing than the local jurisdiction
would ordinarily permit, it can also be a helpful land use tool. The density bonus can provide a useful
mechanism for increasing allowable density without requiring local officials to approve general plan
amendments and zoning changes. A project that satisfies the requirements of the Density Bonus Law
often can obtain the necessary land use approvals through the award of the density bonus units and
requested concessions and incentives, without having to amend the underlying land use requirements.
Although there is no specific density bonus exemption from the California Environmental Quality Act,
many density bonus projects are likely candidates for urban infill and affordable housing exemptions
from CEQA. One commonly invoked exemption is the Class 32 urban infill exemption found in CEQA
Guidelines Section 15332. That exemption is available if the project is consistent with applicable general
plan designation and zoning, the site is five acres or less and surrounded by urban uses, is not habitat for
endangered, rare or threatened species, does not have any significant effects relating to traffic, noise,
air quality or water quality, and is adequately served by utilities and public services. Other exemptions
are available for high density housing projects near major transit stops (CEQA Guidelines Section 15195)
and affordable housing projects of up to 100 units (CEQA Guidelines Section 15194).
The site plans for the apartment project at 1821 C Avenue start on the following page.
Background Report Page 2 of 2
C AVENUE
--.----------
1 SrrE PUw
KEYNOTE LEGEND
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161110161,01.1
00100151066101,0110110/001,05
011601
10061001/1611
SITE PLAN NOTES
SITE PLAN LEGEND
l0110111
60
661
TV
11.1611,616.6
6110100
141111610661-60116010
039166116
1115611610111.0
6110161110600061101101
11106
616110610100
0.511411100
61610191011101
01661011110611166
Attachment
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44
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Site Plan
A101
Attachment No. 2
No Fees per Government Code 6103 ]
RECORDING REQUESTED BY: ]
National City Community ]
Development Commission ]
WHEN RECORDED MAIL TO:
National City Community
Development Commission
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
AFFORDABLE HOUSING DENSITY BONUS AGREEMENT
(1821 C Avenue, National City)
THIS AFFORDABLE HOUSING DENSITY BONUS AGREEMENT ("Agreement") is
dated as of the 4541" day of S Qw4)) tr , 2019, by and between the City of National
City ("City"), and C Avenue 8 Plex LLC, a California limited liability company ("Developer").
WHEREAS, Developer is the owner of that certain real property generally located at
1821 C Avenue, in the City of National City, County of San Diego, more particularly described
in Exhibit "A" attached hereto ("Property"); and
WHEREAS, the General Plan and Zoning Ordinance of National City permit no more
than eight (8) housing units on the Property; and
WHEREAS, Developer proposes to develop a total of ten (10) housing units on the
Property ("Development"); and
WHEREAS, pursuant to Government Code section 65915, and Sections 18.48.030, et
seq. of the National City Municipal Code, the Developer has proposed to construct and restrict
the rent and occupancy of one (1) residential dwelling unit ("Affordable Unit") to a low-income
household in exchange for a density bonus ("Density Bonus") which will allow the construction
of the ten (10) unit Development on the Property. In addition to the Density Bonus, the
Developer has requested and received incentives or concessions set forth in Government Code
Section 65915; and
WHEREAS, This Agreement will serve to memorialize Developer's obligation to
provide the one (1) Affordable Unit, the time frame for the construction and occupancy of the
Affordable Unit and the restriction of the Affordable Unit by the recordation of this Agreement
assuring affordability for a total of fifty-five (55) years measured from the issuance of final
inspection approval for the Development.
1
Attachment No. 2
NOW, THEREFORE, in consideration of the foregoing and of the mutual terms and
covenants hereinafter set forth and other good and valuable consideration, the City and
Developer agree as follows:
1. Acknowledgement of Incentives. Developer acknowledges and agrees that, in addition to
the Density Bonus, Developer is receiving incentives and concessions pursuant to and in
accordance with the requirements of Government Code 65915.
2. Developer Covenants. Pursuant to and in consideration of the Density Bonus and the
additional incentives and concessions, Developer hereby agrees and covenants on behalf of itself
and its successors and assigns, and each successor in interest to the Property, that at all times
during the term of this Agreement one (1) three bedroom residential dwelling unit on the
Property shall be rented and occupied as an Affordable Unit as set forth in this Agreement. As
used herein the term "Affordable Unit" shall refer to the one (1) residential dwelling unit on the
Property which is held available strictly in accordance with the terms and conditions set forth in
this Agreement.
3. Affordability Restrictions.
(a) Area Median Income. As used herein, "Area Median Income" shall mean the
area median income, as adjusted for family size, for the San Diego -Carlsbad Metropolitan
Statistical Area, established periodically by the U.S. Department of Housing and Urban
Development ("HUD") and published in the Federal Register. In the event HUD ceases to
publish an established Area Median Income as aforesaid, the City may, in its sole discretion, use
any other reasonably comparable method of computing Area Median Income.
(b) Occupancy Restrictions. During the term of this Agreement, the Affordable Unit
shall be occupied by a family earning at or below eighty percent (80%) of the Area Median
Income.
(c) Rent Amount. During the term of this Agreement, the monthly rental rate the
Affordable Unit (which shall include a utility allowance based on the utility allowance schedules
published annually by Landlord) shall not exceed 1/12 of thirty percent (30%) of sixty percent
(60%) of the Area Median Income, as adjusted for assumed family size and utilities. The
imputed household size for the Affordable Unit shall be equal to the number of bedrooms in the
unit plus one. For example, the rent for a two -bedroom unit shall be calculated using sixty
percent (60%) of the Area Median Income for a three -person household.
4. Restrictions. The following restrictions shall also be applicable to the Affordable Unit:
(a) No Relationship With Developer. The Affordable Unit shall not be occupied or
leased to Developer or any relative (by blood or marriage) of Developer or any person employed
by Developer or of any individuals who are members, principals, executives, directors, partners
or shareholders of Developer or in any entity having an ownership in Developer or in the
Property.
2
Attachment No. 2
(b) No FullTime Students. No Affordable Unit shall be occupied or leased to any
household comprised exclusively of persons who are full-time students, unless such persons are
married and eligible to file a joint federal income tax return and both of such persons reside in
the Affordable Unit. The term "full-time student" shall be defined as any person who will be or
has been a full-time student during five calendar months of the calendar year in question at an
educational institution (other than a correspondence school) with regular faculty and students.
(c) No Student Dependents. Notwithstanding the provisions of section 4(b), no
Affordable Unit shall be occupied or leased to any student dependent as defined in the U.S.
Internal Revenue Code, unless the taxpayer (upon whom the student in question is dependent)
resides in the same unit.
(d) No Owners of Real Property. No Affordable Unit shall be occupied or leased to
any person or any household comprised of one or more persons who own real property.
(e) Liquid Asset Limitation. No Affordable Unit shall be occupied or leased to any
person or household holding, directly or indirectly, liquid assets whose aggregate value exceeds,
at the time of determination of eligibility, eighty percent (80%) of the then -current annual Area
Median Income. As used herein, the term "liquid assets" refers to cash and assets which are
readily convertible to cash within a reasonable period, including but not limited to savings and
checking accounts, certificates of deposit of any term, marketable securities, money market and
similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid assets"
shall not include retirement funds which are not readily accessible or which cannot be accessed
by the tenant without the tenant incurring a penalty.
(f) Income of Co -Tenants. The income of all co -tenants and/or occupants shall be
taken into account in determining whether a tenant or prospective tenant meets the requirements
of this Agreement.
(g) Eligible Tenants Increased Income. If as a result of the annual recertification
procedure described above any household which was previously determined to be eligible to
occupy an Affordable Unit is determined to be ineligible as a result of increased income or
assets, the City will provide written notification thereof, and Developer shall have one hundred
eighty days (180) from the date of notification to take all reasonable steps to pursue eviction of
the ineligible household. If Developer fails to act within the one hundred eighty day (180)
period, the City shall require payment of a fee by Developer, provided that no fee shall be
payable so long as Developer is diligently pursuing eviction of the ineligible household by
appropriate proceedings. Under this fee requirement, the ineligible tenant residing in the
Affordable Unit shall pay the full market rate rent, and Developer shall pay the difference
between the affordable rent and the full market rate rent, as determined by the City, to the City.
The period of fee payment shall in no event exceed a period of six (6) months, at which time
Developer's failure to provide such Affordable Unit to a household eligible hereunder shall
constitute a material default under this Agreement.
3
Attachment No. 2
5. Term. Pursuant to Government Code Section 65915, this Agreement shall be effective
on the date of its recordation and shall remain in force until the date that is fifty-five (55) years
from the date of issuance of final inspection approval of the Development by the City.
6. Deed of Trust.
(a) Execution and Recordation. Developer shall, concurrently with the execution of
this Agreement, execute, acknowledge and record a deed of trust on the Property ensuring timely
performance of the obligations set forth in this Agreement ("Deed of Trust"). The Deed of Trust
shall be subordinated to the construction deed(s) of trust and/or permanent financing in favor of
institutional lenders, as approved by the City Manager. The subordination shall be upon such
terms and conditions and for such periods of time as the City Manager may approve to protect
the provision of affordable housing as required by this Agreement. The City shall reconvey the
Deed of Trust following the expiration of the term of this Agreement.
(b) Foreclosure on the Property. In the event of a foreclosure on the Property which
eliminates the Deed of Trust, the new owner, upon five (5) days written notice from the City,
shall: (i) execute, acknowledge and deliver to the City an assignment and assumption of this
Agreement in a form as approved by the City, in its reasonable discretion, for recordation; (ii)
execute, acknowledge and deliver to the City a deed of trust, in a form as approved by the City,
in its reasonable discretion, to be recorded against the Property, in a lien priority immediately
junior to the assignment and assumption of this Agreement which will secure the performance of
this Agreement; and (iii) reimburse the City for all of its attorneys' fees and costs in connection
with the foregoing, including all costs, attorneys' fees, and expert witnesses fees incurred by the
City in obtaining compliance by the new owner, including those incurred in litigation, if any.
7. Verification of Eligibility. The Affordable Unit shall not be rented to a prospective
tenant or occupied by any person unless and until the City, through its designated staff, has
verified that the prospective tenant or occupant is eligible and that affordable rents will be
charged in accordance with the criteria set forth in this Agreement. Developer and/or its
successor in interest shall ensure that all eligibility and rent criteria are met during the term of the
Agreement. Annually, on the anniversary of the initial certification of compliance, as
determined by the City, during the term of this Agreement, Developer or its successor in interest
shall certify to the City that the Affordable Unit is being occupied by eligible tenants. Said
certification shall be on forms acceptable to the City.
8. Maintenance Standards. During the term of this Agreement, Developer shall maintain the
unit(s) subject to this Agreement and the Property in a condition that satisfies the more stringent
of (a) the requirements of the applicable local codes or (b) the United States Department of
Housing and Urban Development's Uniform Physical Conditions Standards. The City shall have
the right to inspect the Affordable Unit and the Property prior to initial occupancy and
periodically during the term of this Agreement, upon three business days' notice to Developer.
The City shall have the right to disclose results of those inspections to the appropriate
enforcement authorities. Any deficiencies in the physical condition of the Affordable Unit shall
be corrected by Developer at Developer's expense within thirty (30) days of the identification of
such deficiency by the City and delivery of written notice of the same to Developer. Failure to
4
Attachment No. 2
maintain the unit(s) and the Property in compliance with this section shall constitute a breach of
this Agreement and subject the Developer to damages as set forth in Section 13 of this
Agreement.
9. Interpretation and Construction. If any provision of this Agreement or the application
thereof to any person or circumstance is found to be invalid, the remainder of the provisions of
this Agreement and the application of such provisions to persons or circumstances, other than
those as to which it is found to be invalid, shall not be affected thereby. Nothing contained
herein shall be deemed compliance with or waiver of any provision of law or conditions of
approval except as expressly stated herein.
10. Design, Construction and Occupancy Schedule for the Affordable Unit. The Affordable
Unit shall receive final inspection approval no later than the date that the market -rate units
receive final inspection and approval. Time is of the essence in the occupancy of the Affordable
Unit. The City Manager may, in his or her sole discretion, extend one or more time deadlines for
performance as referenced in this Agreement for good cause.
11. Indemnity. Developer agrees to indemnify, defend and hold harmless the City, the
National City Community Development Commission, and any and all of their respective
councilmembers, commissioners, members, officers, agents, servants and employees (the
"Indemnitees") from and against all claims, liens, claims of lien, losses, damages, costs, and
expenses, whether direct or indirect, arising in any way from the construction, sale, rental or
operation of the Development, the Property and/or any of the units, or from the default by
Developer in the performance of its obligations under this Agreement; provided, however, that
Developer shall not be required to indemnify, defend or hold harmless any of the Indemnitees
from claims, losses, damages, costs and expenses related to the sole negligence or willful
misconduct of the Indemnitees.
12. Agreement Binding on Successors. The terms, covenants and conditions of this
Agreement shall apply to, and shall bind the parties hereto and any successors or assignees.
Developer shall not sell, transfer or otherwise dispose of the Property, any portion thereof, or any
interest therein unless the proposed transferee shall have executed and delivered to the City an
express written assumption of all of Developer's obligations under this Agreement, on a form
reasonably acceptable to the City. Upon assignment and assumption by a successor entity, as
approved by the City, Developer shall be released from all prospective liability and responsibility
under the terms of this Agreement. Developer agrees that all of its obligations hereunder shall
constitute covenants, which shall run with the land and shall be binding upon the Property and
upon every person having any interest therein at any time and from time to time during the term
of this Agreement. Further, Developer agrees that, if a court of competent jurisdiction
determines that the obligations set forth herein do not qualify as covenants running with the land,
they shall be enforced as equitable servitudes. Any sale or conveyance of the Property shall be
made subject to this Agreement.
5
Attachment No. 2
13. Damages; Enforcement., Remedies; Security.
(a) Standing; Equitable Remedies; Remedies Cumulative. Developer expressly
agrees and declares that the City shall be the proper party to, and shall have standing to, initiate
and pursue any and all actions or proceedings, at law or in equity, to enforce the provisions
hereof and/or to recover damages for any event that is expressly stated to be a material default
hereunder and which event remains uncured following sixty (60) days' written notice to
Developer from the City (or up to one hundred twenty (120) days after notice, if actions to
correct the material default have been timely initiated and are, in the reasonable opinion of the
City, being diligently pursued), notwithstanding the fact that such damages or the detriment
arising from such a material default that remains uncured as aforesaid may have actually been
suffered by some other person or by the public at large. Further, Developer expressly agrees that
injunctive relief and specific performance are proper pre-trial and/or post -trial remedies
hereunder to assure compliance with this Agreement. Nothing in this Section and no recovery by
the City shall restrict or limit the rights or remedies of persons or entities other than the City,
against Developer in connection with the same or related acts by Developer, provided that
Developer shall not be subject to duplicate awards or recoveries. The remedies set forth in this
Section are cumulative and not mutually exclusive, except to the extent that their award is
specifically determined to be duplicative by final order of a court of competent jurisdiction.
Further, the award of damages hereunder shall not bar the exercise of police power or other
governmental powers, or the pursuit of criminal, civil or administrative penalties by the City in
connection with any material default under this Agreement that remains uncured as aforesaid.
Developer acknowledges that a material default under this Agreement that remains uncured may
constitute a violation of state law.
(b) Remedies At Law For Breach Of Rental Restrictions. In the event of any material
default under the provisions hereof that remains uncured following thirty (30) days written notice
to Developer from the City (or up to ninety (90) days after notice, if actions to correct the
material default have been timely initiated and are, in the reasonable opinion of the City, being
diligently pursued) regarding restrictions on rental of the Affordable Unit, at the sole option of
the City, the City shall be entitled to the following remedies at law to the extent they are not
duplicative, the election of which shall not be required and may be revoked and/or modified until
immediately prior to entry of judgment:
(1) Damages For Specific Breach. The City shall be entitled to recover
compensatory damages, at its sole option in the event of a material uncured default under the
terms of this Agreement. If the material uncured default in question involves the violation of
Section 13(b) above, the amount of such compensatory damages shall be the product of
multiplying (A) the number of months that the material uncured default in question has
continued (following expiration of Developer's cure period) until the time of trial or cure,
whichever occurs first, by (B) the result of subtracting (i) the rents properly chargeable
hereunder for the Affordable Unit (ii) the rents actually collected by Developer for the
Affordable Unit for the months in question, as reasonably determined by the City. Developer
and the City agree that it would be extremely difficult or impracticable to ascertain the precise
amount of actual damages accruing to the City as a result of such a material uncured default and
that the foregoing formula is a fair and reasonable method of approximating such damages. The
6
Attachment No. 2
City shall be entitled to seek and to recover damages in separate actions for successive, separate
breaches, which may occur during the term of this Agreement. Further, interest shall accrue on
the amount of such damages from the date of the expiration of Developer's cure period for the
material uncured breach in question at the rate of ten percent (10%) per annum or the maximum
rate then allowed by law, whichever is less. Nothing in this section shall preclude the award of
exemplary damages as allowed by law.
(2) Acceleration and Liquidation of Future Performance. At the sole option of
the City, if any material default by Developer in the performance of its obligations under this
Agreement remains uncured for more than ninety (90) days after written notice to Developer by
the City specifying such breach in reasonable detail (or such longer period of time, not to exceed
six (6) months, as may reasonably be required for Developer to cure such breach exercising
reasonable diligence), Developer's obligation to perform hereunder may be accelerated by the
City and declared immediately due through the payment of a liquidated sum. Developer and the
City agree that it would be extremely difficult and impractical to predict the precise cost to the
City of (i) locating rental units equivalent to the Affordable Unit, (ii) procuring such units
(through purchase, lease or subsidies) at the rent discounts contemplated herein, (iii) performing
the substantial administrative activities associated with replacing the Affordable Unit, and (iv)
inflation. Therefore, Developer and the City agree that, in the event of a material default
hereunder by Developer that remains uncured as aforesaid, and upon written notice from the City
to Developer that the City has elected to exercise its option to accelerate and liquidate
Developer's performance hereunder in accordance with the provisions of this Section 13(b)(2),
Developer shall pay, and the City shall be entitled to receive, within thirty (30) days of the City's
delivery of such written notice, in complete liquidation of the City's future monetary damages
and Developer's future obligations under this Agreement, a lump sum payment equal to: (A) the
aggregate of the mathematical differences between the monthly rent for "Comparable Market
Rate Unit" (as determined by the City, using statistical data for units of the same size and
location at the time of the breach) and the monthly rent allowable hereunder for the Affordable
Unit, at the date of delivery of the aforesaid written notice of election to accelerate, multiplied by
(B) the number of months remaining in the term of this Agreement, from and after the date of
delivery of the aforesaid written notice of election to accelerate. Developer and the City agree
that acceleration is a fair and reasonable remedy for non-compliance hereunder, and that the
foregoing formula represents a fair and reasonable method of approximating and liquidating the
future monetary obligations of Developer to the City hereunder for purposes of any such optional
acceleration by the City. Further, such liquidated amount shall automatically commence to bear
interest at the rate of ten percent (10%) per annum or the maximum rate then allowed by law,
whichever is less, from and after the date that the City delivers to Developer the aforesaid written
notice of the City's election to accelerate Developer's performance hereunder, until paid.
Further, if Developer breaches this Section 13(b)(2), the City shall be entitled to receive all
reasonable attorneys' fees, costs of suit, title insurance charges, foreclosure costs and other out-
of-pocket expenses reasonably incurred in recovering such liquidated amount.
14. Monitoring Fees. Developer shall pay to the City, each year during the term of this
Agreement, an annual monitoring fee, as determined by the City in schedules promulgated by the
City from time to time. Failure to timely pay such fees shall constitute a material default under
this Agreement.
7
Attachment No. 2
15. General Provisions.
(a) Waiver. No provision of this Agreement, or breach of any provision, can be
waived except in writing. The waiver by any party of any breach or violation of any term,
covenant or condition of this Agreement or of any provisions, ordinance or law, shall not be
deemed to be a waiver of any other term, covenant, condition, ordinance or law or any
subsequent breach or violation of the same or of any other term, covenant, condition, ordinance
or law.
(b) Costs and Attorneys' Fees. The prevailing party in any action brought to enforce
the terms of this Agreement or arising out of this Agreement may recover its reasonable costs
and witness, expert and attorney's fees expended in connection with such an action from the
other party.
(c) Recordation. This Agreement shall be recorded in the Office of the County
Recorder of the County of San Diego senior to all monetary liens. City shall not be obligated to
issues permits prior to such delivery and recordation of this Agreement.
(d) Integration. The undersigned, and each of them, acknowledge and represent that
no promise or inducement not expressed in this Agreement has been made in connection with
this Agreement. This Agreement contains the entire agreement and understanding between the
parties as to its subject matter.
(e) Ownership of the Property. Developer represents and warrants that it is the owner
of the Property and has full authority to execute this Agreement.
(f) Counterparts. This Agreement may be executed in any number of counterparts
and, as so executed, the counterparts shall constitute one and the same Agreement. The parties
agree that each such counterpart is an original and shall be binding upon all the parties, even
though all of the parties are not signatories to the same counterpart.
(g) Notices. All notices given pursuant to this Agreement shall be in writing and sent
to the party at its address appearing below (a) by certified or registered U.S. mail, return receipt
requested, (b) overnight by a nationally recognized overnight courier such as UPS Overnight or
FedEx, or (c) by personal delivery. All notices shall be effective upon receipt (or refusal to
accept delivery). These addresses may be changed by any party by written notice to all other
parties.
If to City:
City of National City
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
8
Attachment No. 2
If to Developer:
C Avenue 8 Plex, LLC
c/o Keith Robinson
2801 B Street #70
San Diego, CA 92102
(h) Exhibits and Recitals Incorporated. All exhibits referred to in this Agreement are
hereby incorporated in this Agreement by this reference, regardless of whether or not the exhibits
are actually attached to this Agreement. The Recitals to this Agreement are hereby incorporated
in this Agreement by this reference.
(i) Further Assurances. If Developer does not receive all of the necessary permits
and approvals to construct the Project, Developer and the City agree that this Agreement and the
density bonus granted herein shall be null and void and of no further force and effect and
Developer and the City agree to take all reasonable steps and to execute and cause to be recorded
all documents reasonably necessary to remove this Agreement and the Deed of Trust from the
record chain of title to the Property.
16. Risk of Market Conditions. Developer shall bear sole responsibility for developing,
constructing and marketing the units covered by this Agreement, pursuant to the approvals that
the City has issued for the Development and the requirements contained in this Agreement. The
City shall have no obligation to amend this Agreement, and the Developer shall reimburse the
City for administrative costs associated with any modification of this Agreement that shall
require the approval of the City Council of National City.
17. Signature Authority. All individuals signing this Agreement 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
other party hereto that he or she has the necessary capacity and authority to act for, sign and bind
the respective entity or principal on whose behalf he or she is signing.
CITY OF NATIONAL CITY
By:
Brad Raulston, City Manager
APPROVED AS TO FORM:
Angil P Morris -Jones, City Attorney
By:
Roberto M. Contreras
Deputy City Attorney
[SIGNATURES CONTINUED ON FOLLOWING PAGE]
9
Attachment No. 2
DEVELOPER:
C Avenue 8 Plex, LLC, a California limited liability company
By: ,
Keith Robinson, Manager
10
Attachment No. 2
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California )
County of San Diego )
On S 2Fr ..S ' , 2019, before me, - C. Lett , notary
public, personally appeared Kt- se N 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.
11
(Seal)
JIMMIE K. LEW
COMM. #2224385 z
Notary Public • California
San Diego County
Comm. Ex. ues Dec. 7.2021
Attachment No. 2
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of San Diego
On , 2019, before me, , 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)
12
Attachment No. 2
EXHIBIT "A"
Legal Description of the Property
That certain real property located in the City of National City, County of San Diego, State of
California more particularly described as follows:
Parcels 1, 2, 3 and 4 of Parcel Map No. 21545, in the City of National City, County of San Diego,
State of California, according to map thereof filed in the office of the County Recorder of said
County.
Assessor's Parcel Number: 560-222-38-00, 560-222-39-00, 560-222-40-00, 560-222-41-00.
(underlying APN: 560-222-35-00, 560-222-36-00, 560-222-37-00)
13
Attachment No. 3
No Fees per Government Code 6103
Recording Requested By:
National City Community
Development Commission
When Recorded Mail To:
National City Community
Development Commission
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
DEED OF TRUST
(1821 C Avenue -Density Bonus Agreement)
THIS DEED OF TRUST is dated as of theWI-day of bt.,( 2019, between C
Avenue 8Plex LLC, a California limited liability company ("Trustor" , whose address is 2801 B
Street #70, San Diego 92102, Lawyers Title Company ("Trustee"), and the City of National City
("Beneficiary"), whose address is 1243 National City Boulevard, National City, California
91950.
TRUSTOR HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with
power of sale, all that property in the City of National City, County of San Diego, State of
California, described as ("Property"):
(See Legal Description - Exhibit "A")
FOR THE PURPOSE OF SECURING:
(1) The timely performance of the Affordable Housing Density Bonus Agreement of even
date herewith ("Agreement"), between the Beneficiary and the Trustor, and any renewals,
extensions, modifications or amendments to the Agreement by the Trustor and each and every
covenant set forth herein; and
(2) The performance of each agreement contained in this Deed of Trust.
A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR
AGREES:
1. Defense of Security. To appear in and defend any action or proceeding purporting to
affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; and to
pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable
1
Attachment No. 3
sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any
suit brought by Beneficiary to foreclose on this Deed of Trust.
2. Payment of Liens and Taxes. To pay, at least ten (10) days before delinquency, all taxes
and assessments affecting the Property,- including assessments on appurtenant water stock, all
encumbrances, charges, and liens, with interest, on the Property or any part of the Property,
which appear to be prior or superior to this Deed of Trust, and all costs, fees, and expenses of
this Deed of Trust. If Trustor fails to make any payment or to do any act as provided in this
Deed of Trust, then Beneficiary or Trustee may (but is not obligated to) make the payment or do
the act in the required manner and to the extent deemed necessary by Beneficiary or Trustee to
protect the security of this Deed of Trust. The performance by Beneficiary or Trustee of such an
act shall not require notice to or demand upon Trustor and shall not release Trustor from any
obligation under this Deed of Trust. Beneficiary or Trustee shall also have the following related
rights and powers: to enter upon the Property for the foregoing purposes; to appear in and
defend any action or proceeding purporting to affect the security of this Deed of Trust or the
rights or powers of Beneficiary or Trustee; to pay, purchase, contest, or compromise any
encumbrance, charge, or lien that in the judgment of either appears to be prior or superior to this
Deed of Trust; to employ counsel; and to pay necessary expenses and costs, including attorneys'
fees.
3. Reimbursement of Costs. To pay immediately and without demand all sums expended by
Beneficiary or Trustee pursuant to this Deed of Trust, with interest from date of expenditure at
the amount allowed by law in effect at the date of this Deed of Trust, and to pay any reasonable
amount demanded by Beneficiary (up to the maximum allowed by law at the time of the
demand) for any statement regarding the obligation secured by this Deed of Trust.
4. Use. That it will not permit or suffer the use of any of the Property for any purpose other
than the use for which the same was intended at the time this Deed of Trust was executed.
5. Incorporation of Agreement. That the Agreement is incorporated herein by reference and
made a part of this Deed of Trust.
6. Performance of Other Obligations. To perform, in a timely manner, each agreement and
covenant by and between Trustor on any and all notes, loans and deeds of trust that are senior
and/or junior to this Deed of Trust. A default in any of these obligations, beyond any applicable
cure period, shall constitute a default under this Deed of Trust.
B. THE PARTIES AGREE THAT:
7. Waiver of Late Payments. By accepting payment of any sum secured by this Deed of
Trust after its due date, Beneficiary does not waive its right either to require prompt payment
when due of all other sums so secured or to declare default for failure to pay any indebtedness
secured by this Deed of Trust.
2
Attachment No. 3
8. Full Reconveyance. Upon expiration of the term of the Agreement and written request of
Beneficiary, and payment of Trustee's fees and charges, Trustee shall reconvey, without
warranty, the Property then subject to this Deed of Trust. The recitals in the reconveyance shall
be conclusive proof of the truthfulness of the recitals. The grantee in the reconveyance may be
described as "the person or persons legally entitled thereto."
9. Assignment of Rents. As additional security, Trustor hereby gives to and confers upon
Beneficiary the right, power, and authority during the continuance of this Deed of Trust, to
collect the rents, issues, and profits of the Property, but reserves the right, prior to any default by
Trustor in payment of any indebtedness secured by this Deed of Trust or in the performance of
any agreement under this Deed of Trust, to collect and retain these rents, issues, and profits as
they become due and payable. Upon any such default beyond any applicable cure period,
Beneficiary may, without notice and without regard to the adequacy of the security for the
indebtedness secured by this Deed of Trust, either personally or by agent or court -appointed
receiver, do the following: enter upon and take possession of the Property or any part of the
Property; sue for or otherwise collect all rents, issues, and profits, including those past due and
unpaid; and apply these rents, issues, and profits, less costs and expenses of operation and
collection (including reasonable attorneys' fees), upon any indebtedness secured by this Deed of
Trust, in any order determined by Beneficiary. The exercise of the foregoing rights by
Beneficiary shall not cure or waive any default or notice of default under this Deed of Trust or
invalidate any act done pursuant to such a notice.
10. Default and Foreclosure. Upon default under the Agreement, subject to any applicable
notice and cure rights contained in the Agreement, or in the performance of any obligation under
this Deed of Trust beyond any applicable cure period, Beneficiary may declare all obligations
secured by this Deed of Trust immediately due and payable by delivering to Trustee a written
declaration of default and demand for sale and a written notice of default and election to sell the
Property. Trustee shall cause the notice of default and election to sell to be recorded. After the
required time period has lapsed following the recordation of the notice of default, and after
notice of sale has been given as required by law, Trustee, without demand on Trustor, shall sell
the Property at the time and place specified in the notice of sale, either as a whole or in separate
parcels, and in any order determined by Trustee, at public auction to the highest bidder for cash
in lawful money of the United States, payable at the time of sale. Trustee may postpone sale of
all or any portion of the Property by public announcement at the time and place of sale, and from
time to time thereafter may postpone the sale by public announcement at the time fixed by the
preceding postponement. Trustee shall deliver to the purchaser at the auction its deed conveying
the Property sold, but without any covenant or warranty, express or implied. The recital in the
deed of any matter or fact shall be conclusive proof of the truthfulness of the recital. Any
person, including Trustor, Trustee, or Beneficiary, may purchase at the sale. After deducting all
costs, fees, and expenses of Trustee and Beneficiary under this paragraph, including costs of
procuring evidence of title incurred in connection with sale, Trustee shall apply the proceeds of
sale to payment of: all sums expended under the terms of this Deed of Trust, not then repaid,
with accrued interest at the amount allowed by law in effect at the date of this Deed of Trust; all
other sums then secured by this Deed of Trust; and the remainder, if any, to the person or persons
legally entitled to the remaining proceeds.
3
Attachment No. 3
11. Due on Sale or Further Encumbrance. Trustor shall not sell, transfer or otherwise dispose
of the real property described in this deed of trust, or any portion thereof, or any interest therein
unless the proposed transferee shall have executed and delivered to the Beneficiary an express
written assumption of all of Trustor's obligations hereunder this deed of trust, on a form
reasonably acceptable to the Beneficiary. Consent to one transaction of this type will not
constitute a waiver of the right to acquire consent to future or successive transactions.
12. General Provisions. This Deed of Trust applies to, inures to the benefit of, and binds all
parties to this Deed of Trust and their heirs, legatees, devisees, administrators, executors,
successors, and assigns. The term `Beneficiary" shall mean the City of National City, and its
successors and assigns. In this Deed of Trust, whenever the context so requires, the masculine
gender includes the feminine and/or neuter, and the singular number includes the plural.
13. Substitution of Trustees. Beneficiary, or any successor in ownership of any obligations
secured by this Deed of Trust, may from time to time, by written instrument, substitute a
successor or successors to any Trustee named in or acting under this Deed of Trust. The
substitution instrument shall contain the name of the original Trustor, Trustee, and Beneficiary
under this Deed of Trust, the book and page where this Deed is recorded, and the name and
address of the new Trustee. When executed by Beneficiary and duly acknowledged and
recorded in the office of the recorder of the county or counties where the Property is situated, the
substitution instrument shall be conclusive proof of proper substitution of the successor Trustee
or Trustees. Any successor Trustee or Trustees shall, without conveyance from the Trustee
predecessor, succeed to all its title, estate, rights, powers, and duties.
14. Cumulative Powers and Remedies. The powers and remedies conferred in this Deed of
Trust are concurrent and cumulative to all other rights and remedies provided in this Deed of
Trust or given by law. These powers and remedies may be exercised singly, successively, or
together, and as often as deemed necessary.
15. Conclusiveness of Recitals. The recitals contained in any reconveyance, trustee's deed,
or any other instrument executed by the Trustee from time to time under the authority of this
Deed of Trust or in the exercise of its powers or the performance of its duties under this Deed of
Trust, shall be conclusive evidence of their truth, whether stated as specific and particular facts,
or in general statements or conclusions absent manifest error. Further, the recitals shall be
binding and conclusive upon the Trustor, its heirs, executors, administrators, successors, and
assigns, and all other persons.
16. Attorneys' Fees. If any action is brought for the foreclosure of this Deed of Trust or for
the enforcement of any provision of this Deed of Trust (whether or not suit is filed), Trustor
agrees to pay all costs and expenses of Beneficiary and Trustee, including reasonable attorneys'
fees; and these sums shall be secured by this Deed of Trust. The prevailing party in any
litigation, including but not limited to arbitration, writ petitions, complaints, and/or actions for
declaratory relief, brought to enforce, interpret or reform the provisions of this Deed of Trust
shall be entitled to reasonable attorneys' and experts' fees, costs and out-of-pocket expenses
(whether or not considered recoverable "costs" under applicable statute) incurred in such
litigation.
4
Attachment No. 3
17. Request for Notices of Default and Sale. In accordance with Section 2924b of the
California Civil Code, request is hereby made that a copy of any Notice of Default and a copy of
any Notice of Sale under that Deed of Trust executed by the Trustor concerning this Property be
mailed to:
City of National City
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the
address contained in this recorded request. If your address changes, a new request must be
recorded.
18. Inspections. Trustor shall permit Beneficiary and its agents or representatives, to inspect
the Property at any and all reasonable times, upon 48 hours advance notice to Trustor.
Inspections shall be conducted so as not to interfere with the tenants' use and enjoyment of the
Property.
19. Hazardous Materials Defined. For purposes of this Deed of Trust, "Hazardous Materials"
means and includes any flammable, explosive, or radioactive materials or hazardous, toxic or
dangerous wastes, substances or related materials or any other chemicals, materials or
substances, exposure to which is prohibited, limited or regulated by any federal, state, county,
regional or local authority or which, even if not so regulated, may or could pose a hazard to the
health and safety of the occupants of the Property or of property adjacent to the Property,
including, but not limited to, asbestos, PCBs, petroleum products and byproducts, substances
defined or listed as "hazardous substances" or "toxic substances" or similarly identified in,
pursuant to, or for purposes of, the California Solid Waste Management, Resource Recovery and
Recycling Act (California Government Code Section 66700 et seq.), the Comprehensive
Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. Section
9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et seq.), the
Resource Conservation and Recovery act (42 U.S.C. Section 6901, et seq.), Section 25117 or
Section 25316 of the California Health & Safety Code; and any so-called "Superfund" or
"Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation,
order or decree regulating, relating to or imposing liability or standards of conduct concerning
any hazardous, toxic or dangerous waste, substance or material; or any substances or mixture
regulated under the Toxic Substance Control Act of 1976, as now or hereafter amended (15
U.S.C. Section 2601 et seq.); and any "toxic pollutant" under the Clean Water Act, as now or
hereafter amended (33 U.S.C. Section 1251 et seq.); and any hazardous air pollutant under the
Clean Air Act, as now or hereafter amended (42 U.S.C. Section 7901 et seq.). Notwithstanding
the above, the term "Hazardous Materials" shall not include small amounts of chemicals,
cleaning agents and the like commonly employed in routine household uses in a manner typical
of occupants in other similar residential properties provided they are used in compliance with
applicable laws. The term "Hazardous Materials Laws" means any federal, state or local law,
code, statute, ordinance, rule, regulation, rule of common law or guideline relating to Hazardous
5
Attachment No. 3
Materials now or hereafter enacted or promulgated (collectively, and including, without
limitation, any such laws which require notice of the use, presence, storage, generation, disposal
or release of any Hazardous Materials to be provided to any party).
20. Trustor's Hazardous Materials Representations and Warranties and Indemnity. In
addition to the general and specific representations, covenants and warranties set forth in the
Deed of Trust or otherwise, Trustor represents, covenants and warrants, with respect to
Hazardous Materials, as follows:
(a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever
caused or permitted any Hazardous Materials to be manufactured, placed, held, located or
disposed of on, under or at the Property or any part thereof, and neither the Property nor any part
thereof, or any property adjacent thereto, has ever been used (whether by the Trustor or, to the
best knowledge of the Trustor, by any other person) as a manufacturing site, dump site or storage
site (whether permanent or temporary) for any Hazardous Materials;
(b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees,
contractors and agents, and hold Beneficiary, its officers, employees, contractors and agents
harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses and
claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against
Beneficiary, its officers, employees, contractors and agents for, with respect to, or as a direct or
indirect result of, the presence or use, generation, storage, release, threatened release or disposal
of Hazardous Materials on or under the Property or the escape, seepage, leakage, spillage,
discharge, emission or release of any Hazardous Materials from the Property (including, without
limitation, any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising
under CERCLA, any so-called "Superfund" or "Superlien" law, or any other federal, state or
local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or
imposing liability or standards of conduct concerning any Hazardous Materials) regardless of
whether or not caused by or within the control of Trustor, except to the extent arising as a result
of the negligence or willful misconduct of Beneficiary.
(c) Trustor has not received any notice of (i) the happening of any event involving the
use, spillage, discharge, or cleanup of any Hazardous Materials ("Hazardous Discharge")
affecting Trustor or the Property or (ii) any complaint, order, citation or notice with regard to air
emissions, water discharges, noise emissions or any other environmental, health or safety matter
affecting Trustor or the Property ("Environmental Complaint") from any person or entity,
including, without limitation, the United States Environmental Protection Agency ("EPA"). If
Trustor receives any such notice after the date hereof, then Trustor will give, within seven (7)
business days thereafter, oral and written notice of same to Beneficiary.
(d) Without limitation of Beneficiary's rights under this Deed of Trust, Beneficiary
shall have the right, but not the obligation, to enter onto the Property or to take such other actions
as it deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or
otherwise deal with, any such Hazardous Materials or Environmental Complaint upon its receipt
of any notice from any person or entity, including without limitation, the EPA, asserting the
existence of any Hazardous Materials or an Environmental Complaint on or pertaining to the
6
Attachment No. 3
Property which, if true, could result in an order, suit or other action against Trustor affecting any
part of the Property by any governmental agency or otherwise which, in the sole opinion of
Beneficiary, could jeopardize its security under this Deed of Trust. All reasonable costs and
expenses incurred by Beneficiary in the exercise of any such rights shall be secured by this Deed
of Trust and shall be payable by Trustor upon demand together with interest thereon at a rate
equal to the highest rate payable by law.
(e) The foregoing representation, covenants, indemnities and warranties shall be
continuing and shall be true and correct for the period from the date hereof to the release of this
Deed of Trust (whether by satisfaction of the obligations secured hereby or foreclosure or action
in lieu thereof), and these representations, covenants, indemnities and warranties shall survive
such release.
21. Authority to Sign. All individuals signing this Deed of Trust 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
Beneficiary 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.
TRUSTOR:
C Avenue 8 Plex,LLC, a California limited liability company
By:
Keith Robinson, Manager
7
Attachment No. 3
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of San Diego
On Q)[PT. 2,5+H , 2019, before me, 3'*.MM- e K. Liz- _j , notary
public, personally appeared t<TT}-1jSQN 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.
8
Attachment No. 3
Exhibit "A"
Legal Description
That certain real property located in the City of National City, County of San Diego, State of
California more particularly described as follows:
Parcels 1, 2, 3 and 4 of Parcel Map No. 21545, in the City of National City, County of San
Diego,
State of California, according to map thereof filed in the office of the County Recorder of said
County.
Assessor's Parcel Number: 560-222-38-00, 560-222-39-00, 560-222-40-00, 560-222-41-00.
(underlying APN: 560-222-35-00, 560-222-36-00, 560-222-37-00)
9
RESOLUTION NO. 2019 —
RESOLUTION OF CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING
AN AFFORDABLE HOUSING DENSITY BONUS AGREEMENT WITH C AVENUE 8
PLEX, LLC, FOR THE DEVELOPMENT OF 10 UNITS LOCATED AT 1821 "C"
AVENUE AND RESTRICTING THE RENT AND OCCUPANCY OF ONE (1) UNIT TO
A LOW INCOME HOUSEHOLD IN EXCHANGE FOR A DENSITY BONUS
PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 65915 — 65918
WHEREAS, C Avenue 8 Plex, LLC ("Developer") is the owner of that certain real
property generally located at 1821 C Avenue ("Property"), in the City of National City,
County of San Diego; and
WHEREAS, the General Plan and Zoning Ordinance of National City permit no
more than eight (8) housing units on the Property; and
WHEREAS, Developer proposes to develop a total of ten (10) housing units on the
Property ("Development"); and
WHEREAS, pursuant to Government Code section 65915, and Sections
18.48.030, et seq. of the National City Municipal Code, the Developer has proposed to
construct and restrict the rent and occupancy of one (1) residential dwelling unit
("Affordable Unit") to a low-income household in exchange for a density bonus ("Density
Bonus") which will allow the construction of the ten (10)-unit Development on the
Property; and
WHEREAS, in addition to the Density Bonus, the Developer is entitled to receive
incentives and concessions as set forth in Government Code Section 65915 and the
Developer has independently and of its own free will chosen not to receive any such
incentives or concessions; and
WHEREAS, the Affordable Housing Density Bonus Agreement ("Agreement") will
serve to memorialize Developer's obligation to provide the one (1) Affordable Unit
including the time frame for the construction and occupancy of the Affordable Unit and
the restriction of the Affordable Unit by the recordation of the Agreement assuring
affordability for a total of fifty-five (55) years measured from the issuance of final
inspection approval for the Development; and
WHEREAS, a Performance Deed of Trust will also be recorded for the purpose of
securing the timely performance of the Agreement and the performance of each
agreement contained in the Performance Deed of Trust.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National
City, approves the Affordable Housing Density Bonus Agreement with C Avenue 8 Plex,
LLC, for the development of 10 units located at 1821 "C" Avenue and restricting the rent
and occupancy of one (1) unit to a low income household in exchange for a density bonus
as mandated by California Government Code Sections 65915 - 65918. After being
recorded by the County of San Diego, a copy of said Agreement will be on file in the office
of the City Clerk.
Resolution No. 2019 —
Page Two
BE IT FURTHER RESOLVED that City Council of the City National City will
record a Performance Deed of Trust securing the timely performance of Affordable
Housing Density Bonus Agreement. After being recorded by the County of San Diego,
a copy of said Deed of Trust will be on file in the office of the City Clerk.
PASSED and ADOPTED this 15th of October, 2019.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Angil P. Morris -Jones, City Attorney
CONTRACT TRANSMITTAL FORM
(Attach to Documents dropped off to City Clerk's Office)
Date: 11/6/2019
From (Dept.): Housing
Submitted by (First & Last Name): Greg Rose
Vendor: Density Bonus Agreement for C Avenue 8 Plex LLC
Resolution: YES / NO
() 2
3 4 Originals Provided to City Clerk (circle quantity)
x
Department has copy
Vendor has copy
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950-4397
619-336-4228
Michael R. Dalla, CMC - City Clerk
C AVENUE 8 PLEX, LLC
Affordable Housing Density Bonus Agreement and Deed of Trust
1821"C"Avenue
C Avenue 8 Plex, LLC has copies of the Recorded Agreement and Deed of Trust.