Res 95-054RESOLUTION NO. 95-054 and R-95-07
JOINT RESOLUTION OF AGREEMENT OF THE CITY COUNCIL OF
THE CITY OF POWAY AND THE POWAY REDEVELOPMENT AGENCY
RELATING TO THE ACQUISITION OF AN AFFORDABLE HOUSING
COVENANT (POWAY ROYAL MOBILEHOME PARK)
WHEREAS, the Poway Redevelopment Agency (the "Agency") is a redevelopment
agency organized under the provisions of the Community Redevelopment Law (Health and Safety
Code § 33000 et. seq.) (the "Law");
WHEREAS, pursuant to § 33334.2 of the Law, the Agency is obligated to use at least
twenty percent (20%) of its tax increment funds for the purpose of increasing, improving and
preserving the community's supply of low and moderate income housing available at affordable
housing cost, and the Agency maintains a Low and Moderate Income Housing Fund pursuant to
§ 33334.3 of the Law to hold the amounts so dedicated, until used;
WHEREAS, the Agency is authorized to expend monies held in the Low and Moderate
Income Housing Fund to maintain the community's supply of mobilehomes for the purposes of
Section 33334.2 of the Law, to provide subsidies to or for the benefit of persons and families of
low or moderate income to the extent those households cannot obtain housing at affordable
housing cost on the open market and to pay principal or interest on indebtedness;
WHEREAS, the City of Poway (the "City") controls the Poway Royal Estates
Mobilehome Park CPoway Royal"), a 399 space mobilehome park located generally at Metate
Lane and Community Road in the City of Poway, pursuant to a financing lease agreement
between the Agency and the City;
WHEREAS, the Agency may use monies in its Low and Moderate Income Housing Fund
outside the Paguay Redevelopment Project Area (the "Project Area") upon a finding of the City
Council and the Agency that the use of such funds will be of benefit to the Project Area;
WHEREAS, the City is authorized to lease, own and operate Poway Royal and to assist
the Agency with respect to its affordable housing responsibilities;
WHEREAS, the Agency and the City wish to assure that a minimum number of
mobilehome spaces at Poway Royal are occupied by and available to persons and families of low
or moderate income at an affordable housing cost within the meaning of and for the purposes of
§ 33334.2 of the Law, and to this end the Agency wishes to purchase and the City wishes to sell
the Affordability Covenant more particularly defined below, and to provide all administrative
services in connection with the administration and maintenance of such Affordability Covenant;
and
WHEREAS, the parties wish to set forth the terms and conditions of such acquisition
herein.
I'UBL:27070_4 ] l 71 B2345.55 06/14/95
Resolution No. 95-054 &
Page 2 R-95-07
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF POWAY AND THE POWAY REDEVELOPMENT AGENCY JOINTLY AS
FOLLOWS:
Section 1. The foregoing Recitals are true and correct.
Section 2. In consideration of the payment by the Agency to the City of Two Million
One Hundred Thousand Dollars ($2,100,000), the City shall maintain not fewer than fifty (50)
mobilehome spaces at Poway Royal as Affordable Housing Units (defined below), at Affordable
Housing Cost (defined below) for the Affordability Tet~m (defined below). The undertaking set
forth in this Joint Resolution of Agreement shall be referred to herein as the "Affordability
Covenant".
For purposes of this Agreement the following terms shall have the following
meanings:
ao
"Affordable Housing Unit" shall mean a mobilehome space
occupied pursuant to an agreement by the owner/occupant of a
mobilehome which occupants shall be persons and families of low
or moderate income as defined by California Health and Safety
Code § 50093 and Regulations promulgated thereunder.
bo
"Affordable Housing Costs" shall have the meaning set forth in
California Health and Safety Code § 50052.5 for owner occupied
housing for moderate income households (or at the City's option,
lower income households or very low income households). The
Agency and the City hereby find and determine that application of
the definition of owner occupied housing is appropriate for
mobilehome parks such as Poway Royal based upon, among other
considerations, the Regulations promulgated by the California
Department of Housing and Community Development which
specify that housing costs for purposes of calculating affordability
of owner occupied housing include, together with other factors,
space rent if the housing unit is situated on rented land (Title 25
CCR § 6920). In the event the Agency reasonably determines,
based on the advice of counsel, that a different standard of
Affordable Housing Cost shall be applied to this Agreement to
maintain compliance by the Agency with its obligations for proper
expenditure of monies in the Low and Moderate Income Housing
Fund, the City shall upon written notice thereof apply such
different standard and the Affordability Term shall be extended, as
appropriate, provided the Agency bears the full additional cost of
such different standard, if any, reasonably borne by the City in
complying therewith.
Co
"Affordability Term" shall mean the period from the payment by
the Agency of the amount described in Section 2 hereof through
PUSL:27070_4 [ 171 B2345.55 2 06/14/95
Resolution No. 95-054 &
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and including August 1, 2025 a period of approximately thirty (30)
years.
Section 3. a. The City and the Agency shall execute and shall cause to be
recorded a Memorandum of Affordable Housing Covenants in the Offices of the Recorder of San
Diego County as a lien against the entire Poway Royal project, substantially in the form attached
hereto as Exhibit "A, subject to such prior encumbrances as may exist in connection with the
refinancing of outstanding lease payment obligations of the City for Poway Royal. The Agency
hereby finds and determines, based upon the advice of the City's Financial Advisor, that no
economically feasible alternative means of financing is available on substantially comparable
terms and conditions, without subordination to the City's financing documents.
b. The City shall cause each occupant of a mobilehome space which it
proposes to count as an Affordable Housing Unit pursuant hereto to enter into the City's Resale
Restriction Agreement, or such other agreement approved in writing by the Agency designed to
protect the Agency's investment hereunder. The City shall assure the enforceability of this
restriction against occupants of Affordable Housing Units, and their mobilehomes, pursuant to a
valid lien or other enforcement mechanism, statutory or otherwise, under applicable law.
Section 4. a. The City shall be responsible for the administration and
implementation of the Affordability Covenant and may charge the Agency for the reasonable
costs thereof. The City shall keep full and complete records of its administration of the
Affordability Covenant and shall provide, at least annually (more frequently at the written request
of the Agency), regular reports of Affordable Housing Units and occupants assisted, to the full
extent required to assure compliance with this Joint Resolution of Agreement, and such further
documentation as the Agency may reasonably request to assure the Agency that the Affordability
Covenant is being administered consistently with the Agency's requirements for expenditure of
monies from the Low and Moderate Income Housing Fund. Specifically, the City shall verify
and reverify the incomes of residents of Affordable Housing Units as frequently as may be
required to assure ongoing compliance with the Law, but in no event lass frequently than at the
time of original occupancy and any change in occupancy.
b. Except as set forth in this paragraph or otherwise as required by
the Law, once a mobilehome space is determined to be an Affordable Housing Unit occupied at
an Affordable Housing Cost, such mobilehome space shall continue to be so treated until a
change in occupancy occurs. The City shall not otherwise be required to recertify the Affordable
Housing Unit determination or Affordable Housing Cost for specific mobilehome spaces.
Notwithstanding the foregoing, to the extent space rents are increased for Affordable Housing
Units to a level which would cause such Affordable Housing Unit not to be available at
Affordable Housing Cost to such occupant (as applied to the occupancy as if such rent existed at
the time of original occupancy)) the City shall either: (1) recertify the income eligibility of the
occupant as a person or family of low or moderate income and the Affordable Housing Cost for
such Affordable Housing Unit, or (2) if necessary to comply with the Affordability Covenant
herein, replace such Affordable Housing Unit in accordance with subparagraph (c) below.
c. In the event at any time by reason of changes in occupancy or
recertification of Affordable Housing Units pursuant to (4)(a) or 4(b) above, the City maintains
fewer than fifty (50) Affordable Housing Units available at Affordable Housing Cost, it shall not
I'UI~L:27070_4 ! 17 [ B2345.55 3 06/14/95
Resolution No. 95-054 &
Page 4 R-95-07
be in default hereunder so long as it achieves such compliance within the next twelve (12) months
or with the next space becoming available for occupancy after such twelve (12) month period.
Section 5. a. The Agency and City Council hereby find and determine that the
Agency's payment under Section 2 hereof will preserve and is reasonably necessary to preserve
the community's supply of mobilehomes available to persons and families of low or moderate
income at affordable housing cost within the meaning of § 33334.2 of the Law, and anything to
the contrary herein notwithstanding, the Agency may waive any default of the City hereunder
upon request of the City so long as at least fifty (50) spaces at Poway Royal are occupied by
persons or families of low or moderate income at affordable housing cost within the meaning of
§ 33334.2(a) of the Law.
b. The Agency and the City Council hereby find and determine that
(1) the provision of assistance pursuant to this Joint Resolution of Agreement is of benefit to the
Project Area, (2) the Affordability Covenant will assure the availability of Affordable Housing
Units for the Affordability Term, and (3) that the City's administration of the Affordability
Covenant for the Affordability Term will benefit households which cannot obtain housing at
affordable cost on the open market within the meaning and contemplation of California Health
and Safety Code § 33334.2(e)(8).
c. The Agency and City hereby find that the requirements of Section
33334.3(0 of the Law are inapplicable to this Joint Resolution of Agreement because new or
substantially rehabilitated housing units are not developed or assisted pursuant to this Agreement.
Section 6. The City hereby subjects Poway Royal to the Affordability Covenant set
forth herein. The City and the Agency hereby declare their express intent that the covenants set
forth herein shall be deemed covenants running with the land and shall pass to and be binding
upon the City's successors in interest to Poway Royal; provided, however, that at the end of the
Affordability Term said covenants shall expire. Each and every contract, deed or other
instrument executed after the commencement of the Affordability Term covering the Poway
Royal project shall conclusively be held to have been executed, delivered and accepted subject to
the Affordability Covenant, regardless of whether such covenants are set forth in such contract,
deed or other instrument. The City and the Agency hereby declare their understanding and intent
that the burden of the Affordability Covenant set forth herein touches and concerns the land.
Furthermore, the City and the Agency declare their understanding and intent that the benefit of
such Affordability Covenant touches and concerns the land by enhancing and increasing the
enjoyment and use of the project by persons and families of low or moderate income, and by
furthering the public purposes of the Agency and the City. Notwithstanding the foregoing, the
City and the Agency hereby declare their express understanding and intent that no third party
shall have any rights pursuant to this Joint Resolution of Agreement, that no third party
beneficiaries are created hereunder, and that no third party, including residents o~Poway Royal
or others, shall have any right whatsoever, pursuant to this Joint Resolution of A~reement, to
enforce the provisions hereof, i
The City and the Agency further declare their express understanding and intent that the
assistance provided hereunder be used to increase and preserve the long term availability of the
community's supply of affordable housing, specifically mobilehomes, as specified herein. To
that end, in the event of default of this Agreement by the City, the parties agree that it would be
l'UI~L:27070_4 { 17 } B2345.55 4 06/14/95
Resolution No. 95-054 &
Page 5 R-95-07
impracticable, extremely difficult to fix, and in contradiction to the purposes set forth herein to
establish monetary damages. The City shall not be liable in damages to the Agency, or to any
assignee, transferee or successor in interest, and the Agency covenants not to sue for or claim
any damages against the City for default hereunder. The parties further agree that the Agency's
sole and exclusive remedy hereunder shall be specific performance to correct any default or
noncompliance, to ensure adequate performance prospectively from the date of default and to
require an extension of the Affordability Term as deemed necessary and appropriate by the
Agency to secure for the Agency the substantially full benefit and consideration bargained for in
exchange for the Agency assistance.
Section 7. The Agency shall pay the amount described in Section 2 hereof to the City
on or before August 1, 1995 and the City shall apply such amount to or for the benefit of the
Poway Royal project either by prepaying its lease payments, depositing funds with the trustee
under the City's Trust Agreement to pay annual amounts under the Certificates of Participation or
otherwise applying said monies to the reduction in the annual payments of the outstanding
Certificates of Participation relating to the financing of the Poway Royal project, in such manner
as the City Manager shall determine based upon the advice of the City's Financial Advisor. The
Agency hereby finds and determines that the benefit of the subsidy to Poway Royal provided
hereunder will be passed on to occupants of Affordable Housing Units in the form of lower
housing costs over the Affordability Term.
Section 8. If any provision of this Joint Resolution of Agreement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof
shall not in any way be affected or impaired thereby.
Section 9. This Joint Resolution of Agreement shall take effect immediately.
Section 10. The City Clerk and Agency Secretary shall certify to the adoption of this
Resolution and shall cause a certified Resolution to be filed in the office of the City
Clerk/Agency Secretary.
PASSED and ADOPTED this 20thday of June , 1995.
ATTEST:
Marjorie I~'~ Wahlsten, Secretary
Poway Red~gvelopment Agency
PUs-:27070_4117 [ B2345.55
06/14/95
Resolution No. 95-054 &
Page 6 R-95-07
PASSED and ADOPTED this 20th day of
ATTEST:
City Clerk',` City of Poway
June , 1995.
Mayor, City ~f~ '
PUBL:27070_4117 ] B2345.55 6 06/14/95
Resolution No. 95-054 &
Page 7 R-95-07
STATE OF CALIFORNIA )
)
COUNTY OF SAN DIEGO )
SS.
I, Marjorie K. Wahlsten, Secretary of the Poway Redevelopment Agency, do hereby
certify under penalty of perjury that the foregoing Resolution No. 95-054 was duly adopted by
the Redevelopment Agency at a meeting of said Agency held on the 20th day of dune ,
1995, and that it was so adopted by the following vote:
AYES: CAFAGNA,
NOES: NONE
ABSTAIN: NONE
ABSENT: EMERY
CALLERY,
REXFORD, HIGGINSON
Marjorie I~. Wahlsten, Secretary
Poway Redevelopment Agency
~'uB[.:27070_4 [ 171 B2345.55 7 06/14/95
Resolution No. 95-054 &
Page 8 R-95-07
STATE OF CALIFORNIA )
)
COUNTY OF SAN DIEGO )
SS.
I, Mar.iorie K. Wahl stenCity Clerk of the City of Poway, do hereby certify under
penalty of perju~ ~at ~e foregoing Resolution No. R-95-07 was duly adopted by ~e City
Council at a meeting of said City held on the 27th day of dune , 1995, and that it was
so adopted by the following vote:
AYES: CAFAGNA,
NOES: NONE
.M3STA1N: NONE
ABSENT: EMERY
CALLERY, REXFORD, HIGGINSON
City Clerk}. City of Poway
t'uB-:27070_4117 [ B2345.55
06/14/95
EXItlBIT "A"
Resolution No. 95-054 &
Page 9 R-95-07
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Poway Redevelopment Agency
13325 Civic Center Drive
Poway, California 92064
Attention: Executive Director
This document is exempt from a recording fee pursuant
to Govt. Code § 6103.
MEMORANDUM OF AFFORDABLE
HOUSING COVENANTS
THIS MEMORANDUM OF AFFORDABLE HOUSING COVENANTS
("Memorandum"), dated for identification purposes as of June 20 , 1995, is entered into
by and between the POWAY REDEVELOPMENT AGENCY, a public body corporate and
politic ("Agency"), and CITY OF POWAY, a municipal corporation ("City").
1. Joint Resolution of Agreement. Agency and City have executed a Joint
Resolution of Agreement of the City Council of the City of Poway and the Poway Redevelopment
Agency Relating to the Acquisition of an Affordable Housing Covenant ("Agreement"), dated as
of June 20 , 1995, which concerns and is binding upon the City, its successors and
assigns and future owners of that certain real property commonly known as the Poway Royal
Mobilehome Park located in the City of Poway, County of San Diego, State of California and
more particularly described in Attachment No. 1 attached hereto and incorporated herein by this
reference (the "Property"). The Agreement imposes cer~tain obligations and restrictions on the
use of the Property for affordable housing purposes. The Agreement is available for public
inspection and copying at the office of the Poway Redevelopment Agency, 13325 Civic Center
Drive, Poway, California. All of the terms, conditions, provisions and covenants of the
Agreement are incorporated in this Memorandum by reference as though written out at length
herein, and the Agreement and this Memorandum shall be deemed to constitute a single
instrument or document.
2. Purpose of Memorandum. This Memorandum is prepared for recordation
purposes only, and in no way modifies the terms, conditions, provisions and covenants of the
Agreement. In the event of any inconsistency between the terms, conditions, provisions and
covenants of this Memorandum and the Agreement, the terms, conditions, provisions and
covenants of the Agreement shall prevail.
PUBL:27555_l [ 194[ B2345.55
EXHIBIT "A"
(Page 1 of 2)
06/15/95
Resolution No. 95-054 &
Page 10 R-95-07
The parties have executed this Memorandum of Affordable Housing Covenants on the
dates specified immediately adjacent to their respective signatures.
AGENCY:
Dated: dune 20 , 1995
POWAY REDEVELOPMENT AGENCY,
a public body, corporate and politic
By: C~~
ATTEST:
Secretary
Dated: June 20 , 1995
ATTEST:
City~ Clerk
CITY:
CITY OF POWAY, a municipal corporation
By: _
Mayor ~
PUBL:27555_I [ 194[ B2345.55
EXHIBIT "A"
(Page 2 of 2)
06/15/95
ATTACHMENT NO. 1 TO EXHIBIT
LEGAL DESCRIPTION OF PROPERTY
Resolution No.95-054 &
Page 11 R-95~07
P~-KCEL ~:
All of the South Half of the Southwest Quarter of section 13, Townshio 14 South,
Range 2 West, San Bernardino Meridian, in the County of San Diego, State of
California, according to the Official Plat thereof (including that portion of the
Southwest Quarter of the Southwest Quarter of said Section 13 .known as Parcel "AT
of the Map of Reversion to Acreage of a portion of RUSS EST&TES UNIT NO. 2,
according to Map thereof No. 5027, filed in the Office of the County Recorder of
San Diego County, August 30, !962.
EXCEPTING TEEREFROM that portion of the Southeast Quarter of the Southwest Quarter
of section 13, lying Northerly and Northwesterly of the following described line:
COMiw~NCiNG at the Southeast corner of the Southeast Quarter of the Northeast
Quarter of the Southwest Quarter of Section 13; thence along the Easterly line of
said Southwest Quarter, North 01° 54' 40" East, 366.45 feet to the center line of
the Poway Creek Channel as located in Mmrch, !971; thence along said center line
as fc!!ows:
South 89: 52' 00" West, 115.28 feet to the beginning of a tangent 115.28 foot
radius curve, concave Southeasterly; Southwesterly along the arc of said curve
through a central angle of 44° 38' 02" a distance of 155.80 feet and tangent to
said curve South 45° 13' 58" West, 213.31 feet to the Westerly line of the Easterly
400.00 feet of said Southeast Quarter of the Northeast Quarter of the Southwest
Quarter and being the TRUE POINT OF BEGINNING; thence continuing along said center
line as follows:
South 45° 13' 58" West, 466.38 feet to the beginning of a tangent 250.00 foot
radius curve, concave Northwesterly; Southwesterly along the arc of said curve
through a central angle of 44° 38' 02", a distance of 194.75 feet and tangent to
said curve South 89° 52' 00" West 443.00 feet to the Westerly line of the Southeast
Quarter of the Southwest Quarter of Section !3.
ALSO EXCEPTING THEREFROM that portion of the Southeast Quarter of the Southwest
Quarter of Section !3, Township 14 South, Range 2 West, San Bernardino Meridian,
in the County of San Diego, State of California, according to the Official Plat
thereof lying Southeasterly of the center line of Road Survey No. 1587-3 as
described in deed to County of San Diego, recorded August 24, 1971 as File No.
189667 of Official Records.
ALSO ~XCEPTING THEREFROM that portion conveyed to the County of San Diego by deed
recorded April 13, 1976 as File No. 76-108156 of Official Records, described as
follows:
BEGI~N-NING at a 3/4 inch iron pipe marking the Northeast corner of said Southwest
Quarter of the Southwest Quarter of Section 13, according to Record of Survey Map
No. 4195; thence along the Northerly line of said Southwest Quarter of the
Southwest Quarter, North 89° 09' 25' West, 1,338.34 feet to the Northwest corner of
said Southwest Quarter of the Southwest Quarter; thence South 00° 49' 00" West,
868.18 feet along the Westerly line of said Section 13; thence leaving said
Westerly line, North 77: 40' 53" East, 17.97 feet to the beginning of a tangent
227.00 foot radius curve, concave Northwesterly; thence Northeasterly along the
arc of said curve, through a central angle of 41° 10' 53", a distance of 163.16
ATTACHMENT NO. 1TOEXHIBIT"A"
(Page 1 of 2)
Resolution No. 95-054 &
Page 12 R-95-07
feet; thence tangent to said curve, North 36° 30' 00" East, 20.31 feet to the
begip~ning of a tangent 73.00 foot radius curve, con~ave Southeasterly; thence
Northeasterly along the arc of said curve, through a central angle of 30° 04' 00',
a distance of 38.31 feet; thence tangent to said cu~ze, North 66° 34' 00" East,
871.70 feet to the beginning of a tangent 373.00 foot radius curve, concave
Southeasterly; thence Northeasterly along the arc of said curve, through a central
angle of 23° 18' 00" a distance of 151.68 feet; thence tangent to said curve, North
89° 52' 00" East, 20!.86 feet to a point on the Easterly line of said Southwest
Quarter of the Southwest Quarter of Section 13; thence North 01° 21' 50" East,
along said Easterly line, 340.14 feet, more or less, to the Point of Beginning.
PARCEL 2:
An easement and right of way for public road purposes over and across the Westerly
40.00 feet of the Northwest Quarter of the Southeast Quarter and the Westerly
40.00 feet of the Northwest Quarter of the Southwest Quarter of the Southeast
Quarter of section 13, Township 14 South, Range 2 West, San Bernardino Meridian,
in the County of San Diego, State of California, according tO'Official Plat
thereof.
ATTACHMENT NO. 1TOEXHIBIT"A"
(Page 2 of 2)