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HomeMy WebLinkAbout061824-06.8 ADMINISTRATIVE STAFF REPORT 6.8 TO: Mayor and Town Council June 18, 2024 SUBJECT: Resolution No. 40-2024, authorizing the Town Manager to execute a Regulatory Agreement and Declaration of Restrictive Covenants for the below-market rate units associated with the 600 Hartz Avenue development BACKGROUND On May 10, 2022, the Danville Planning Commission adopted Resolution No. 2022-09 adopting a Mitigated Negative Declaration of Environmental Significance and approving a Condominium Subdivision Map, Development Plan, and Land Use Permit allowing the construction of a new 51,290 square foot two-story mixed-use building at 600 Hartz Avenue. The development includes 37 residential condominium units and 3,920 square feet of commercial space (retail or restaurant) along the Hartz Avenue frontage. Pursuant to the Town’s Inclusionary Housing Ordinance (Municipal Code Section 32-73), the development approval required that 15 percent of the units (five units) be deed restricted to be sold to qualifying households at a moderate income level. The Inclusionary Housing Ordinance requires Town Council approval of a Regulatory Agreement and Declaration of Reconstructive Covenants (Affordable Housing Agreement) specifying the terms of the agreement. The agreement is then recorded to run with deeds of the subject lots. DISCUSSION The Affordable Housing Agreement (Attachment B) between the Town and 600 Ventures, LLC, specifies the maximum allowable household income for buyers of the below market rate (BMR) units. The restriction is for a term of 20 years. The BMR units are required to be sold to qualifying moderate income households at specific maximum sales prices. Moderate income is defined as households with an income of between 80% and 120% of Contra Costa County’s median income, adjusted for household size. The latest County income data was released on May 9, 2024. As an example, based on the current income data, a unit with a three person household would have a maximum price of $513,995.00 which results in a monthly mortgage payment of approximately $3,282.00. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. Affordable Housing Agreement 2 June 18, 2024 FISCAL IMPACT None. RECOMMENDATION Adopt Resolution No. 40-2024, authorizing the Town Manager to execute a Regulatory Agreement and Declaration of Restrictive Covenants for the below-market rate units associated with the 600 Hartz Avenue development. Prepared by: David Crompton Chief of Planning Reviewed by: Diane J. Friedmann Development Services Director Attachments: A - Resolution No. 40-2024 B - Draft Regulatory Agreement and Declaration of Restrictive Covenants for 600 Hartz Avenue RESOLUTION NO. 40-2024 AUTHORIZING THE TOWN MANAGER TO EXECUTE A REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS FOR THE BELOW-MARKET RATE UNITS ASSOCIATED WITH THE 600 HARTZ AVENUE DEVELOPMENT WHEREAS, on May 10, 2022, the Danville Planning Commission adopted Resolution No. 2022-09 adopting a Mitigated Negative Declaration of Environmental Significance and approving a Condominium Subdivision Map, Development Plan, and Land Use Permit allowing the construction of a new 51,290 square foot two-story mixed-use building. The development includes 37 residential condominium units and 3,920 square feet of commercial space (retail or restaurant) along the Hartz Avenue frontage; and WHEREAS, pursuant to the Town’s Inclusionary Housing Ordinance (Municipal Code Section 32-73), the development approval required that 15 percent of the units (five units) be deed restricted to be sold to qualifying households at a moderate income level; and WHEREAS, 600 Ventures, LLC accepted the obligation to execute a Regulatory Agreement and Declaration of Restrictive Covenants (Affordable Housing Agreement), restricting the sales price of five below market rate units to be affordable to moderate income households, adjusted for household size; and WHEREAS, promoting the development of affordable housing within the Town of Danville is a goal of the Danville 2023-2031 Housing Element; and WHEREAS, the Town Council reviewed the draft Affordable Housing Agreement prepared for the project that will provide for the regulation of the sales process and household income requirements at their meeting of June 18, 2024; and WHEREAS, a staff report was submitted recommending that the Town Council approve the draft Affordable Housing Agreement between the Town of Danville and 600 Ventures, LLCs; now, therefore, be it RESOLVED, that the Town Council authorizes the Town Manager to execute a Regulatory Agreement and Declaration of Restrictive Covenants for the below-market units associated with the 600 Hartz Avenue development. DocuSign Envelope ID: 1C4D65B0-7795-4363-ADE6-6E2C6DB90E0D ATTACHMENT A PAGE 2 OF RESOLUTION NO. 40-2024 APPROVED by the Danville Town Council at a regular meeting on June 18, 2024 by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 1C4D65B0-7795-4363-ADE6-6E2C6DB90E0D Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 1 RECORDING REQUESTED BY: Town Manager Town of Danville WHEN RECORDED, RETURN TO: Town of Danville 500 La Gonda Way Danville, CA 94526 Attention: City Clerk __________________________________________________________________________ REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS BETWEEN THE TOWN OF DANVILLE AND 600 VENTURES, LLC PERTAINING TO THE DEVELOPMENT AT 600 HARTZ AVENUE INCLUDING 37 FOR-SALE CONDOMINIUM UNITS This Regulatory Agreement and Declaration of Restrictive Covenants ("the Agreement") is entered into as of _____________, by and between the Town of Danville, a municipality ("Danville") and 600 Ventures, LLC ("Developer"), the developer of certain real property in the Town of Danville, Contra Costa County California. RECITALS 1.Developer is constructing a 37-unit multiple family residential condominium project in the Town of Danville at 600 Hartz Avenue DEV21-0013, and more particularly described in Exhibit 1 attached hereto and incorporated herein (the "Property"). The Property is a 1.19 acre site, located at 600 Hartz Avenue. The Town approved the development of the Property pursuant to Planning Commission Resolution No. 2022-09. 2.Project conditions of approval imposed through the adoption of Planning Commission Resolution No. 2022-09 linked the property’s development to the provision of a minimum of five for-sale affordable housing units. Specifically, Project Condition of Approval #I.7 requires Developer to address the inclusionary housing requirements applicable to the project pursuant to the Town’s Inclusionary Housing Ordinance (Municipal Code Chapter 32-73). Pursuant to these requirements, the developer will construct five for-sale below market rate condominium units (BMRs) to be sold to moderate income households. ATTACHMENT B Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 2 4. The Town has made a commitment to comply with State law and to provide safe and decent housing for all economic segments of the community and the project will assist the Town in attaining this goal and, as such, both parties desire to provide the for-sale BMRs for the residents of Danville under the terms and conditions set forth herein. 5. The purpose of this Agreement is to implement the project conditions of approval by providing suitable mechanisms for establishing and ensuring the continued viability of the for-sale BMR program, as agreed between the parties. 6. This Agreement serves to implement, in part, the Housing Element of the Town of Danville General Plan. 7. This is an integrated Agreement and it is intended that the entire Agreement will be recorded to encumber the designated condominium units for the term specified within. This Regulatory Agreement and Declaration of Restrictive Covenants shall be recorded as an individual restriction against each of the five designated for-sale BMRs identified in this Agreement. NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, Danville and Developer hereby agree as follows: AGREEMENT SECTION I DEFINITIONS AND INTERPRETATION Underlined items used herein shall have the following meanings unless the context in which they are used clearly requires otherwise. 1. Danville means the Town of Danville, a political subdivision of the State of California. 2. Developer means 600 Ventures, LLC and their successors and assigns, and any surviving, resulting or transferee entity. 3. Owner means the purchaser of the individual for-sale BMRs as they are first sold and transferred and all subsequent purchasers or transferees of the respective for-sale BMRs. During transition of BMR ownership, the term Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 3 Owner shall be differentiated into sub-terms of Owner and Purchaser Owner for the respective parties selling the BMR and purchasing the BMR. 4. For-sale BMRs means the five for-sale moderate income units to be developed in the project, as identified in Exhibit 2 to the Agreement, as required by the Project conditions of approval for Development Plan DEV2021-0013, with such units to be designated for conditional purchase by Qualified Moderate Income Households for the term of this Agreement. 5. Area Median Income means the median family income, as adjusted for family size and as annually revised, for the Contra Costa County area of the State of California, as published at Title 25, California Code of Regulations, Section 6932. (Note: In the event the foregoing determinations of area median income are discontinued, the Area Median Income shall be as alternately established and published by the U.S. Department of Housing and Urban Development ("HUD")). 6. Property means the parcel of real property described in Exhibit “1”. 7. Project means the 37 residential condominium units total 46,680 square feet, 3,920 square feet of commercial retail space along the Hartz Avenue frontage, and a 31,360 square foot subterranean parking garage containing 79 parking spaces. 8. Qualified Moderate Income Household means a household whose income is at, or below, 120% of the Area Median Income, adjusted for household size. 9. First Closing Date means the date of the first close of escrow on a BMR in the sale by Developer of a completed dwelling unit thereon to the initial Owner. 10. Agreement means this Regulatory Agreement and Declaration of Restrictive Covenants. The parties agree as follows: 1. TWENTY YEAR TERM: The term for which the BMRs shall be held for and restricted as Moderate Income Housing shall be twenty years. The term for each respective BMR shall commence upon the date of the first close of escrow on that BMR in the sale by Developer of a completed dwelling unit. The close of escrow is when the deed conveying title to the respective BMR is recorded Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 4 in the Official Record of the County. a. TERMINATION: This agreement shall expire and all restrictions will terminate as to the respective BMRs upon any of the following: (i) The date that is twenty years after the First Closing Date on the particular BMR; or (ii) A permanent waiver or release of these restrictions on the BMR is executed by Danville and recorded in the Official Records of the County. 2. INITIAL SALES PRICE: The sales price upon the initial transfer by Developer to a Purchaser Owner on the First Closing Date will be based on the following formula: 2024 Moderate Income in Contra Costa County, adjusted for household size, based on 35% of income applied toward mortgage, less current estimates for the following housing costs (as specifically identified in the Sale Price Calculation Worksheet): ● Property Tax ● Utilities ● HOA Dues ● HO6 Homeowner Insurance ● PMI (private mortgage insurance) The final calculation of the Initial Sales Prices for the one bedroom and two bedroom BMR units are shown in the attached Exhibit 3. BMR Sale Price Calculation Worksheet. The resale price for each BMR on a subsequent transfer is limited pursuant to Paragraph 3.d of this Agreement. The initial sales price shall include the cost of any optional items or upgrades purchased by Purchaser Owner, up to a maximum value of $15,000.00, who close escrow on the First Closing Date, and any financial incentive that Developer may grant to the Purchaser Owner, including, but not limited to, payment of non -recurring closing costs, loan points or buy-downs. The initial sales price is the maximum actual base sales price determined as of the date of this Agreement, and the maximum actual base sales price will be increased by an amount equal to the Initial Sales Price multiplied by a fraction whose numerator is equal to the difference between Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 5 the Index (defined below) last published immediately before the date of this Agreement and the Index last published immediately before the date on which such Developer closes escrow in the initial Purchaser Owner ‘s purchase of the BMR (the "Initial Index"), and whose denominator is the Previous Index. 3. PURCHASER OWNER ELIGIBILITY; PERMITTED USES OF THE BMR; RESALE RESTRICTIONS: a. PRINCIPAL RESIDENCE / PURCHASER OWNER INCOME LIMITATIONS: The BMR may be sold and transferred only to a Purchaser Owner, who agrees in writing to personally occupy the BMR as the principal residence of such Purchaser Owner and whose annual gross household income, for the calendar year of the prospective purchase and for the two most recently completed calendar years, does not exceed 120% of the applicable moderate household incomes for a family of three (3) (for a one-bedroom unit) and a family of five (5) (for a two bedroom unit), as published by the California Department of Housing and Community Development, U.S. Department of Housing and Urban Development for the Oakland Primary Metropolitan Statistical Area, most recently before the date of such sale. Purchaser Owner must, within thirty days after the close of escrow, apply for, execute and file a Homeowner's Property Tax Exemption with the Assessor of the County and, within fifteen days after such form is so filed, to provide a copy of such completed, signed form to Danville with written confirmation of such filing with the Assessor. b. ASSET LIMITATIONS: In addition to the above described income limits, the maximum amount of assets under ownership of the Purchase Owner (including bank accounts, brokerage accounts, stocks and bonds, real estate, and other valuable assets) shall be $200,000 for a one (1) bedroom unit and $300,000 for a two (2) bedroom unit. c. OWNER OCCUPIED: The BMR shall be used as a single family, owner occupied residence only and for no other purpose. No portion of the BMR may be rented or leased or used in any trade or business or for any commercial purpose whatsoever. This restriction is not, however, intended to preclude the use of the BMR as provided by the Danville Municipal Code for home occupation uses. d. OWNER RESALE PRICE RESTRICTION: Owners may sell their BMR Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 6 without being in violation of this Agreement only if: (i) Owner gives Danville written notice of intent to sell the BMR. (Upon receipt of notice of the Owner’s intent to sell, Danville will provide written confirmation of the maximum allowable resale price for the BMR base on then-applicable published income levels). (ii) The sales price received by Owner shall not exceed Owner’s original purchase price, adjusted as follows: (1) Owner’s selling price may be equal to the Owner’s original purchase price multiplied by a fraction whose numerator is equal to the difference between the Index (defined below) last published immediately before the date of the formation of the Purchase Contract and the Index last published immediately before the date on which such Owner closed escrow in Owner’s purchase of the BMR (the "Previous Index"), and whose denominator is the Previous Index. The "Index" is the median household income published by the California Department of Housing and Community Development, U.S. Department of Housing and Urban Development (HUD) for the Oakland Primary Metropolitan Statistical Area, Median Family Income for a family of four. If HUD no longer publishes the Index at the time of the formation of the Purchase Contract, Danville may use any other recognized method of computing the Median Family Income for a family of four in place of the Index. (2) Owner’s selling price may, in addition, be Owner’s original purchase price increased by an amount equal to the fair market value added to the BMR, as determined by an appraisal approved by Danville, for any capital improvements to the BMR made since the Owner acquisition of the BMR, which: (i) have a useful life of greater than five years after the date of the sale by such Owner pursuant to the purchase contract; and (ii) have been constructed with all required building permits and other governmental approvals. Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 7 (3) Owner’s selling price shall reflect a price decrease equal to the amount spent, or reasonably estimated to need to be spent, to repair any damage (excepting normal wear and tear) to the BMR, or to put the BMR in sellable condition, as reasonably determined by Danville or a State-Certified Inspector, excluding general painting, cleaning or replacing floor coverings and window coverings, but including reasonably necessary structural, mechanical, electrical, plumbing and fixed appliance repairs. (iii) The purchaser under the purchase contract qualifies as a Purchaser Owner under Paragraph 3.a (Principal Residence / Purchaser Owner Income Limitations) and 3.b. (Owner Occupied). (iv) Upon opening an escrow, the Owner shall give Danville written notice of the name, address, phone number and escrow number of any escrow agent involved in the sale of BMR. (v) Upon opening of an escrow, the Owner shall instruct the escrow agent to disclose to Danville the terms of sale in the escrow and the proposed closing date, as the same may be amended from time to time. (vi) The Owner shall, within ten days after the close of escrow, give Danville a true copy of such Owner’s escrow final closing statement, certified by the escrow agent, and the address or addresses of the residence or residences of Owner after such close of escrow. (vii) The closing costs and title insurance shall be paid pursuant to the custom and practice in Contra Costa County. The Purchaser Owner shall bear the expense of providing a current, written report of any inspection by a licensed structural pest control operator. All work recommended in said report to repair damage caused by infestation or infection of wood-destroying pests or organisms found and all work to correct conditions that caused such infestation or infection shall be done of the expense of the Owner. Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 8 d. EXCESS SALES PRICE: If, at the close of escrow, Owner’s sales price exceeds the amount determined by Paragraph 3.c, Danville shall have the right anytime within one year after being advised such close of escrow to commence an action to recover from such Purchaser Owner an amount equal to 125% of the difference between the actual selling price and the maximum allowable selling price determined by Paragraph 3.c. e. EXECUTION OF STATEMENT AGREEING TO COMPLY: All Purchaser Owners who acquire title to the BMR shall at their close of escrow execute a statement under penalty of perjury and deliver the same to Danville, certifying such Purchaser Owner’s intent to comply with the provisions of Paragraphs 3.a, 3.b, 3.c and 3.d. f. DEFAULT: If Danville learns of any default under this Agreement, Danville may declare the defaulting party in default by giving such party and any known escrow agent involved in the sale of the BMR, written notice, specifying the nature of the default, including, but not limited to, any transfer or proposed transfer that is or will be in violation of this Agreement. If the default is not cured to the reasonable satisfaction of Danville within thirty days after such notice (or as may be extended by Danville to reasonably cure such default) or two days before the date set for the close of escrow on the BMR by the defaulting party, whichever occurs first, Danville may apply to a court of competent jurisdiction for a restraining order or injunction to enjoin the transfer of the BMR that would be in violation of this Agreement, or for such other relief as may be appropriate. Nothing contained in this Agreement shall defeat the estate or title acquired in an BMR by a bona fide purchaser for value without notice of such default. g. This Agreement shall be subordinate to the mortgage on the unit estate, and the priority of the mortgage holder’s rights to any hazard insurance settlement or condemnation award shall be preserved. 4. RELIEF FROM RESTRICTIONS: Waiver, relaxation or amendment of the restrictions contained in this Agreement may be granted by the Town Council upon a showing of diligent efforts by Owner to comply with the provisions of this Agreement and undue hardship. Re quests to waive, relax and/or amended these restrictions shall be placed on a regularly scheduled Town Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 9 Council meeting within 60 days of receipt of such request. 5. FIRST RIGHT TO PURCHASE PROPERTY WHERE OWNER DEFAULTS ON MORTGAGE: In the event that Owner fails to meet the requirements set forth by their mortgage on the Property, putting them in active default with the lending institution holding the mortgage and resulting in the initiation of foreclosure proceedings, Danville shall be notified of the initiation of such proceedings. In the event of foreclosure, Danville shall have first right to purchase Property. Danville shall have the right to assign its right of first refusal to any other governmental agency or nonprofit organization. After the exercise of said right by Danville or its assignee, Danville or its assignee may assign said right to purchase to any substitute individual private party who meets this Agreement’s eligibility requirements as a Purchaser Owner (refer to Paragraph 3.a - Principal Residence / Purchaser Owner Income Limitations and Paragraph 3.c. - Owner Occupied). Danville shall not, in any way, be liable to the defaulting Owner, nor become obligated in any manner by reason of the assignment of its right to purchase, nor shall Danville be in any way obligated or liable to the defaulting Owner for any failure of Danville’s assignee to consummate a purchase of the Property or to comply w ith the terms of purchase and sale agreement. Until such time as Danville’s right to purchase Property is exercised, waived, or expired, the Property, and any interest in title thereto, shall not be sold, leased, rented, assigned, or otherwise transferred to any person or entity without the express written consent of Danville or its assignee, which consent shall be consistent with Danville’s goal of creating, preserving, maintaining, and protecting housing in Danville for persons of low and moderate income. This provision shall not prohibit the encumbering of title for the sole purpose of securing financing. If Danville or its assignee exercises its right to purchase the Property, close of escrow of said purchase shall be within ninety days of the opening of such escrow by either party. Escrow may be extended an additional thirty days at the request of either party or for additional periods upon mutual agreement. Said escrow shall be opened upon delivery to Owner or, as appropriate, to the financial inst itution holding the mortgage for the Property, of written notice of the exercise of the option or as soon thereafter as possible. In the event Danville decides to assign the right of purchase provided herein, Danville may postpone opening of escrow until selection of such assignee, or as soon thereafter as possible, provided the opening of the escrow shall not be postponed longer than ninety days after the defaulting Owner or, as appropriate, the financial institution holding the mortgage for the Property is notified of Danville’s exercise of its right to purchase. Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 10 The following transfers of title or any interest therein are not subject to the right of first refusal provisions of this Agreement: transfer to Owner’s spouse or issue by gift, devise, or inheritance; taking of title by surviving joint tenant; transfer of title to spouse as part of divorce or dissolution proceedings; acquisition of title or interest therein in conjunction with marriage; provided, however, that these covenants shall continue to run with the title to said Property following said transfers. 6. NOTICES: All notices sent pursuant to this Agreement shall be sent by certified mail return receipt requested to the following addresses: Danville: Town of Danville 510 La Gonda Way Danville, CA 94526 Attention: Town Manager Developer: 600 Ventures, LLC 3160 Crow Canyon Road, Suite 270 San Ramon, CA 94583 Attention: Eric Chevalier Owner: 600 Ventures, LLC 3160 Crow Canyon Road, Suite 270 San Ramon, CA 94583 Attention: Eric Chevalier 7. MISCELLANEOUS: a. RECITALS INCORPORATED: The recitals are expressly incorporated in and made part of this Agreement. b. BINDING EFFECT: This Agreement shall run with the land (the BMR) and be binding on and inure to the benefit of all heirs, administrators, executors, successors, assigns, transferees, designees or agent of the parties for the term of the Agreement. c. ATTORNEYS' FEES AND COSTS: If any action is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 11 entitled to reasonable attorneys' fees and costs. d. CONTROLLING AGREEMENT: Developer represents that Developer has not and will not execute any other agreement with provisions contradictory to or in opposition to the provisions of this Agreement, and that, in any event, this Agreement is controlling as to the rights and obligations between and among Danville, Developer and their respective successors. e. LIMITS ON LIABILITY: Danville shall not be liable to any Owner or become obligated in any manner to any Owner because of such Owner’s failure to comply with the terms of any agreement or escrow for the sale of the BMR. f. INTENT AND VALIDITY: The intent of this Agreement is to preserve the affordability of the BMR for persons of moderate incomes, while leaving ownership for federal income tax purposes with Owner. To that end, if and for so long as the BMR is subject to this Agreement, any portion of this Agreement determined to deprive the Owners of ownership of the BMR for federal income tax purposes shall be invalid and have no force or effect with respect to the BMR or the Owners. g. INDEPENDENT AND SEVERAL PROVISIONS: If any one or more of the provisions contained in this Agreement shall for any reason is held to be invalid, illegal or unenforceable in any respects, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. h. CAPTIONS AND PARAGRAPH HEADINGS: Captions and paragraph headings used in this Agreement are for convenience only and shall not be used to interpret any of its provisions. i. STATE LAW: The terms of this Agreement shall be interpreted and enforced under the laws of the State of California. Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 12 The parties have executed this Agreement on the date first written above. Danville: Developer: The Town of Danville 600 Ventures, LLC, a Delaware limited liability company By: ___________________________ By: ___________________________ Joseph A. Calabrigo - Town Manager Eric Chevalier – Managing Member Dated: ___________, 2024 Dated___________, 2024 Approved as to form: By: ___________________________ Rob Ewing - Town Attorney Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 13 EXHIBIT "1" LEGAL DESCRIPTION OF THE PROJECT SITE: Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 14 EXHIBIT "2" LEGAL DESCRIPTION OF THE BELOW MARKET RATE UNITS Regulatory Agreement and Declaration of Restrictive Covenants – 600 Hartz Avenue 15 EXHIBIT "3" BMR INITIAL SALES PRICE CALCULATION WORKSHEET