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HomeMy WebLinkAbout030425-06.5 ADMINISTRATIVE STAFF REPORT 6.5 TO: Mayor and Town Council March 4, 2025 SUBJECT: Resolution No. 14-2025, authorizing the Town Manager to execute a Regulatory Agreement and Declaration of Restrictive Covenants for the below-market rate units associated with the previously approved 167-unit residential multifamily development at 3020 Fostoria Way (the Borel property) BACKGROUND On January 23, 2024, the Danville Planning Commission adopted Resolution No. 2024-02 approving Major Subdivision (SD 9594), Development Plan (DEV22-0009), and Tree Removal (TR24-0003) requests to subdivide a seven-acre parcel to allow for a 167-unit multifamily development at 3020 Fostoria Way. The development will include 124 for-sale townhouse units and 43 for-rent apartment units. The 43 apartments will be constructed and managed by Pacific West Companies, a below-market rate housing builder. All 43 apartments will be required to be rented to qualifying low or very low-income households. DISCUSSION The Affordable Housing Agreement (Attachment B) between the Town and TH Danville Camino Ramon LLC, specifies the maximum allowable household income for renters of the below-market rate (BMR) units. The restriction is for a term of 55 years. The BMR units are required to be rented to qualifying low or very low-income households at specific maximum rental rates. Low and very low-income are defined as households with an income of between 50% and 80% and below 50% of Contra Costa County’s median income, adjusted for household size, respectively. The latest County income data was released on May 9, 2024. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. FISCAL IMPACT None. Affordable Housing Agreement 2 March 4, 2025 RECOMMENDATION Adopt Resolution No. 14-2025, authorizing the Town Manager to execute a Regulatory Agreement and Declaration of Restrictive Covenants for the below-market rate units associated with the previously approved 167-unit residential multifamily development at 3020 Fostoria Way (the Borel Property). Prepared by: David Crompton Chief of Planning Reviewed by: Diane J. Friedmann Development Services Director Attachments: A - Resolution No. 14-2025 B - Draft Regulatory Agreement and Declaration of Restrictive Covenants for 3020 Fostoria Way RESOLUTION NO. 14-2025 AUTHORIZING THE TOWN MANAGER TO EXECUTE A REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS FOR THE BELOW-MARKET RATE UNITS ASSOCIATED WITH THE PREVIOUSLY APPROVED 167-UNIT RESIDENTIAL MULTIFAMILY DEVELOPMENT AT 3020 FOSTORIA WAY DEVELOPMENT ( THE BOREL PROPERTY) WHEREAS, on January 23, 2024, the Danville Planning Commission adopted Resolution No. 2022-09 approving Development Plan and Major subdivision requests DP2022-0009 and SD 9594 allowing for the subdivision of a seven-acre parcel to allow for a 167-unit multifamily development; and WHEREAS, the development will include 124 for-sale townhouse units and 43 for-rent apartment units. The 43 apartments will be constructed and managed by Pacific West Companies, a below-market rate housing builder. All 43 apartments will be required to be rented to qualifying low or very low-income households; and WHEREAS, the site is located at 3020 Fostoria Way; and WHEREAS, the approval included a density bonus request pursuant to the State Density Bonus Law and the provision of affordable units consistent with State Law; and WHEREAS, TH Danville Camino Ramon LLC accepted the obligation to execute a Regulatory Agreement and Declaration of Restrictive Covenants (Affordable Housing Agreement), restricting the rent price of 43 apartment units to be affordable to low and very low-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 rental rates and household income requirements at their meeting of March 4, 2025; and WHEREAS, a staff report was submitted recommending that the Town Council approve the draft Affordable Housing Agreement; 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 3020 Fostoria Way development. Docusign Envelope ID: 4AE3C921-230E-4920-916B-B45031EEBCB4 ATTACHMENT A PAGE 2 OF RESOLUTION NO. 14-2025 APPROVED by the Danville Town Council at a regular meeting on March 4, 2025, by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK Docusign Envelope ID: 4AE3C921-230E-4920-916B-B45031EEBCB4 RECORDING REQUESTED BY: Town Manager Town of Danville WHEN RECORDED, RETURN TO: Town of Danville 510 La Gonda Way Danville, CA 94526 Attention: Marie Sunseri, City Clerk REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS BETWEEN THE TOWN OF DANVILLE AND MM TH DANVILLE APARTMENTSCAMINO RAMON, LLC This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement” is entered into as of _____________, 20192025, by and between the Town of Danville, a municipality ("Danville”) and MM TH Danville DANVILLE ApartmentsCAMINO RAMON, LLC, a Delaware California Limited limited Liability liability cCompany (the "Owner”), the developer of certain real property in the Town of Danville, Contra Costa County California, commonly referred to as Alexan RiverwalkBorel (the "Project”) occupying an the approximately seven73.68 acre property commonly referred to as 373 Diablo Road3020 Fostoria Way (the "Project Property”), of which .75 acres of the Project Property (the “Property”) as described more specifically in Exhibit 1 attached hereto is subject to this Agreement. RECITALS 1.Danville approved the development of the Project on the Project Property pursuant to Planning CommissionTown Council Resolution No. 32-20172024-02, which served to approve Final Development Plan request DEV16-0014Major Subdivision SD 9594, Development Plan DEV 22-0009, and Tree Removal TR 24-0003 (collectively, the “Entitlements”). 2.The approval incorporated a density bonus into the projectProject, authorizing the construction of a 150167-unit apartment multifamily development on a total of approximately seven7 acres, which includes 124 for-sale market rate townhouse units and 43 for-rent below market rate apartment units to be made available to low and very low income residents on the Property which consists of approximately .75 acresproject on 3.68 acres. Project approval under Resolution No. 2024-02 approved the 43 for-rent below market rate apartment units to serve as the affordable component for the Project. 32-2017 provided the Property with the maximum allowable density bonus that could be secured (i.e., a 35% density bonus). The approval authorized the addition of 39 bonus units above the 111 baseline units that the property was entitled to develop. Had the project developed at 150 units, the 35% density bonus would have resulted in an Owner obligation to integrate 13 for-rent units for very low income households (i.e., the below market rate units for the Formatted: Font: Bold, Underline Commented [RE1]: would it be easier to put the APN in rather than refer to the .75 acres? ATTACHMENT B Regulatory Agreement and Declaration of 2 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk Project as defined below). (See Exhibit 4, attached hereto, for excerpted language from Resolution No. 32-2017 framing requirement that an affordable housing agreement between the developer and the Town be developed and executed.) 3. Owner, has elected to reduce the Project size to 144 units. This change reduces the density bonus granted to the Project from 35% to 30% and correspondingly reduces the requirement for below market rate units ("BMR Units") to be provided in the Project from 12% of the 111 baseline units to 9% of the 111 baseline units which equates to a reduction in the The 43 below market rate apartment units will be made available to qualifying low and very low income households (the “BMR Units”)Project's required below market rate units from 13 for-rent units for very low income households to 10 for-rent units for very low income households. 4. California Government Code Section 65915 (the "Density Bonus Law”) directs cities to grant private developers density bonuses, incentives and concessions, use of statutory vehicular parking standards and waivers of certain development standards, for the production of below market rate below market rate housing. 5. Density Bonus Law requires that BMR uUnits provided in exchange for a density bonus, waivers of development standards, and incentives of and concessions be rented or sold at affordable rents or prices to households whose incomes do not exceed certain amounts. 6. Danville finds that the Owner's residential development will benefit the community by providing the 10 43 BMR Units as for-rent units to qualifying low and very low income households ("Qualified Very Low Income Households”). 7. Through the approved resolutionThe conditions of approval tThe Owner has indicated a willingness to accept the project conditions of approval that restrict the Owner's rental ratesuse of the 10 43 BMR Units. It is the purpose of this Agreement to set forth certain conditions under which Danville has approved the Project; to impose enforceable restrictions on the occupancy and use of the 10 43 BMR Units; and to ensure the continued viability of this affordable housing program as envisioned by the parties. Both parties recognize that the Project would not have been approved by Danville without the assurance that the Owner would execute this Agreement. 8. This Agreement is consistent with the Town of Danville 2030 General Plan and the pProperty’s Residential – Multifamily - High Density (25-3025-39 units per acre) and Residential –– Multifamily - – High/Medium Density (20-25 units per acre) land use designations and the Town of Danville 2014-2022 Housing Element, draft 2023-2031 Housing Element asnd the Property hwasas been identified as a housing site necessary to meet the Town’s RHNA assignment. , an element of the 2030 Plan. 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 the Owner hereby agree as follows: Regulatory Agreement and Declaration of 3 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk 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. Owner means MM THH Danville ApartmentsCamino Ramon, LLC, a Delaware California lLimited Lliability Company company and its successors and assigns, and any surviving, resulting or transferee entity. 3. Below Market Rate Units, or BMR Units means the 10 43 below market rate for-rent residential apartment units within the 144 total 167- unit apartment multifamily development project Project that will be designated by the Project Owner at any one time for occupancy by Qualified Very Low Income Households for the term established by this Agreement. The remaining 134 124 for-sale market rate residential apartment townhome units are not subject to this Agreement or any restriction on rental rate or sale. 4. Apartment Operator means the individual owning and/or operating the multifamily residentialBelow Market Rate portion of the Pproject with the authority, consistent with this agreement, to set the rental rate schedule for the BMR Units in the Project and to execute rental agreements with Qualified Very Low Income HouseholdsQualified Households occupying the BMR Units in the Project. 5. Area Median Income means the median family income, as adjusted for family size and as may be annually revised, for the Contra Costa County area of the State of California and published as 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 upon which the BMR Units are located as described in Exhibit 1 which is attached hereto, and incorporated by reference herein, and all rights and appurtenances thereunto appertaining. 7. Qualified Very Low Income Household means a household with an annual household income which does not exceed the United States Department of Housing and Urban Development's annual determination for very low income households with incomes of between approximately thirty percent (30%) and fifty percent (50%) percent of Area Median Income, adjusted for household size. 7.8. Qualified Low Income Household means a household with an annual household income which does not exceed the United States Department of Housing and Urban Development's annual determination for very low income households with incomes of between Commented [SF2]: Project Owner is not defined - is this meant to encompass Owner and Apartment Operator or is this just another term for Owner? Assuming it’s the latter, I have deleted “Project” in each instance to keep it consistent. Regulatory Agreement and Declaration of 4 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk approximately fifty percent (50%) and eighty percent (80%) of Area Median Income, adjusted for household size. 8.9. Household Income means the combined gross income for all adult persons living in a dwelling unit, as calculated for the purpose of the Section 8 Program under the United States Housing Act of 1937, as amended, or its successor. 9.10. Monthly Utility Allowance means the allowance for tenant-furnished utilities, published from time to time by HUD Office of Public and Indian Housing in their publication entitled "Allowances for Tenant-Furnished Utilities and Other Services” for the Housing Authority of the County of Contra Costa or other reasonable utility allowance consistent with the Density Bonus Ordinance and approved by Danville. 10.11. Agreement means this Regulatory Agreement and Declaration of Restrictive Covenants. 11.12. Income Certification Questionnaire means the Danville-supplied form provided to the Apartment Operator and/or Owner, which may be amended from time to time, which shall be completed by all prospective Qualified Very Low Income Households and Qualified Low Income Households to allow Danville and the Apartment Operator and/or Owner to ascertain eligibility for such households under the Agreement to occupy the BMR Units in the Project, based on income criteria and household size. 13. Project means the residential apartment development authorized for construction through the Danville Town Council Resolution No. 32-2017, which serve to approve Final Development Plan request DEV16-0014by the Entitlements. 12.14. Qualified Households means, individually and collectively, Qualified Low Income Households and Qualified Very Low Income Households. SECTION II - RESTRICTIONS FOR USE THE BMR UNITS AND RECORDS Parties Agree as follows: 1. Term of Agreement. This Agreement shall become effective upon its execution and delivery. The 55-year obligation of the Owner to maintain the affordability of the Project’s BMR Units commences with the initial occupancy of a BMR Unit by a Qualified Very Low Income Household. 2. Income restrictions for households occupying BMR Units. The BMR Units shall be occupied by Qualified Very Low Income HouseholdsQualified Households whose gross annual household income, adjusted for household size, does not exceed the lesser of the following: a. An income equivalent of between 30% to 50% of the Area Median Income for Very Low Income Households or an income equivalent of between 50% and 80% of the Area Median Income for Low Income Households; or Regulatory Agreement and Declaration of 5 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk b. A permanent waiver or release of these restrictions on the BMR is executed by Danville and recorded in the Official Records of the County.An income equivalent to the maximum very low household income set by HUD for the Alameda County and Contra Costa County areas as a result of a HUD-determination that the area is a "high income area" (a function of the relationship of the estimated incomes for this area as they relate to estimated income levels on a national level), resulting in a reduction of the maximum allowable income level for Qualified Very Low Income Households to a level below 50% of Area Median Income. Danville shall notify Apartment Operator and/or Owner, on an annual basis, of changes in the Area Median Income and the corresponding changes to the maximum qualifying income levels for Qualified Very Low Income HouseholdsQualified Households. 3. Apartment Operator's or Owner's obligation to screen income of prospective occupants of the BMR Units. Except as provided in Section IX below, prior to executing any lease involving a BMR Unit, the Apartment Operator or Owner shall reasonably is required toverify first document to Danville's satisfaction, with Danville's consent to occur within a 10 calendar days of the Apartment Operator and Owner's submittal, that the prospective Qualified Very Low Income Household has a gross annual household income at, or below, the maximum allowable income ranges, as adjusted for household size, for both the current calendar year (extrapolating year to date income to calculate gross annual household income) and for the most recently completed calendar year. To facilitate Danville's review, theThe Apartment Operator or Owner shall require prospective rental households for BMR Units to execute under penalty of perjury an Income Certification Questionnaire substantially in thea form reasonably acceptable to Danville (a draftof the Income Certification Questionnaire is attached as Exhibit 53.,) which, at a minimum, certifies the following: a. Number, names, and ages of prospective Qualified Very Low Income Household members for a BMR Unit; b. Projected annual gross household income for prospective Qualified Very Low Income Household members (based on paycheck receipts covering year to date or at least the most recent two-month period and accounting for any known or anticipated bonuses for the current calendar year and any other sources of household income); c. Annual gross household income for prospective Qualified Very Low Income Household members for the most recently completed calendar year period (as reported on most recent federal tax return(s) and W-2 form(s) and detailing income of all members of the prospective household); and d. Sources of all income for prospective Qualified Very Low Income Household members. 4. Maximum allowable rental rate to be assessed for BMR Units. Except as provided in Section IX below, the initial maximum allowable monthly rental rate assessed by Regulatory Agreement and Declaration of 6 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk Apartment Operator or Owner on a Qualified Very Low Income Households occupying a Project BMR Unit shall be the lesser of the following: a. 30% of 1/12th of the maximum allowable annual household income for a Qualified Very Low Income Household, as adjusted for household size and less the applicable Monthly Utility Allowance as provided in Exhibit 32; or b. 30% of 1/12th of the actual gross annual household income of the Qualified Very Low Income Household and less the applicable Monthly Utility Allowance. 5. Re-certification of income qualification for Qualified Very Low Income HouseholdsQualified Households. Annually, on the anniversary date of occupancy of a BMR Unit by a Qualified Very Low Income Household, Apartment Operator or Owner shall re-certify the qualifications of the Qualified Very Low Income Household in accordance with the requirements of this Agreement. If, upon recertification, Apartment Operator or Owner determines that the Qualified Very Low Income Household's gross income has risen above the then-in-effect allowable income, Apartment Operator or Owner, within 90 calendar days, shall either terminate the tenancy of the formerly qualified lessee and make the BMR Unit available to a new Qualified Very Low Income Household or raise the rent of such tenant to the current rent for a comparable market rate unit; provided, however, that in no event shall the number of BMR Units in Project fall below ten35 units. On the termination of the tenancy of a BMR Unit, the BMR Unit shall continue to be deemed a BMR Unit until reoccupied by a Qualified Very Low Income Household. 6. Affordability Compliance Report. Bi-aAnnually on June 30th and December 31st of every year during the term of Agreement, Owner shall submit a report to Danville containing, at a minimum, the following items and information: a. A site map showing the unit numbers and unit locations of all units and all BMR Units; b. Total number of BMR Units that are occupied; c. Total number of BMR Units that are vacant; d. A certified rent roll for all BMR Units containing the unit numbers, the lease commencement and expiration dates, the numbers of bedrooms and bathrooms within the BMR Units, the rental rate for each rented BMR Unit, and, as applicable, the amount of rent paid by BMR lessees and the amount paid through a Housing Choice Voucher Program by the Housing Authority of the County of Contra Costa (if any); e. For each BMR Unit, the unit size, household size, annualized extrapolated gross household income for the twelve month period leading up to the report submittal, income limits for the BMR lessee, maximum affordable rents for the BMR lessee, utility allowance, and total monthly rent; and Regulatory Agreement and Declaration of 7 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk f. Evidence that the income for each tenant of a BMR Unit does not exceed the maximum for a Qualifying Very Low Income Household. 7. Allowable increases to incomes of Qualified Very Low Income HouseholdsQualified Households. The initial lease signed with a Qualified Very Low Income Household shall be for a period of one year. One year extensions of these initial leases, and of subsequent leases as applicable, may be executed by Apartment Operator oor Owner only after Danville's review ofApartment Operator or owner or order has reviewed updated household income information from the tenant leads to Danville's sufficient to make a reasonable determination that the tenant household's income has not increased during the prior lease period so as to place it at a projected annual gross household income that will exceed 50% ofof the maximum published median income required for Qualifying Households, adjusted for tenant household size, for the Contra Costa and Alameda Counties Area. Decisions by the Apartment Operator or Owner to allow continued occupancy in a BMR Unit by a Qualified Very Low Income Household shall take into consideration factors reported by the BMR Household on a Report of Change in Income/Family Composition form (or approved equivalent), that shall be completed by the BMR Household prior to any extensions of residential leases, when the family composition changes (upwardly or downwardly) and/or when gross household income changes (upwardly or downwardly) from the income level used to determine income qualification and maximum allowable rental rates. 8. Allowable increases to allowable rental rates assessed on households occupying BMR Units. Where Danville determines that one- year extensions of initial leases (and of subsequent leases as applicable) may be granted, the maximum allowable monthly rental rate assessed by the Apartment Operator or Owner on the affected tenant household may be increased by Apartment Operator or Owner but the new rental rate shall be the lesser of the following: a. 30% of 1/12th of the maximum allowable annual income for a Qualified Very Low Income Household, as adjusted for household size and less the applicable Monthly Utility Allowance; or b. 30% of 1/12th of the actual gross annual income of the Qualified Very Low Income Household and less the applicable Monthly Utility Allowance. 9. Records. Apartment Operator and/or Owner shall maintain complete and accurate records pertaining to BMR Units. Apartment Operator and/or Owner shall permit any duly authorized representative of Danville, on demandupon no less than two (2) business days’ 48 hours’ notice, to inspect the books and records of the Apartment Operator and/or Owner pertaining to the incomes of the Qualified Very Low Income HouseholdsQualified Households residing in BMR Units and the corresponding rental rates assessed for their BMR Units. 10. Section 8 Housing Choice Voucher Program. The Apartment Operator or Owner shall accept as Qualified Very Low Income Household tenants for the BMR Units, on the same basis as all other prospective tenants, Qualified Very Low Income HouseholdsQualified Regulatory Agreement and Declaration of 8 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk Households under the Section 8 Housing Choice Voucher Program, as administered by the Housing and Community Development Act of 1974, which re-codified the U.S. Housing Act of 1937, and as amended from time to time, including the Quality Housing and Work Responsibility Act of 1998 (QHWRA) and its requirements, including subsequent HUD instructions as they apply to the Section 8 Housing Choice Voucher Program. The Apartment Operator or Owner shall not apply selection criteria to Section 8 Housing Choice Voucher Program recipients that are more burdensome than the criteria applied to all other prospective tenants. Where the Section 8 Rental Assistance Program is utilized, the rent collected by Apartment Operator or Owner for BMR Units may exceed the maximum allowable rental rates set forth in Section II - Subsection 4 above, with allowable rents to be as set by the Housing Authority of the County of Contra Costa, or their successor. The maximum allowable contribution to this adjusted rental rate by the respective Qualified Very Low Income HouseholdsQualified Households shall not exceed the maximums set forth in Section II - Subsection 4 above. 11. Certification of Statements in Income Certification Questionnaire. All leases for Project BMR Units shall contain clauses, among others, wherein each Qualified Very Low Income Household lessee: a. Certifies the accuracy of the statements made in the Income Certification Questionnaire; b. Agrees that the income requirements shall be deemed substantial and material obligations of the Qualified Very Low Income Household tenancy; c. Agrees to a tenant obligation to comply promptly with all requests for information with respect thereto from the Apartment Operator and/or Owner and/or Danville - including requests for updated income information in conjunction for lease extensions; and d. Acknowledges that failure to provide accurate information in the Income Certification Questionnaire, or refusal to comply with a request for information with respect thereto, shall be deemed a violation of a substantial obligation of the tenancy and shall constitute cause for termination of the lease. SECTION III - AGREEMENT TO RECORD The Owner hereby represents, warrants and covenants that it will cause this Agreement to be recorded against the Property in the real property records of Contra Costa County, California. The Owner shall pay all fees and charges incurred in connection with any such recording, if so requested by Danville. SECTION IV - RELIANCE Danville and the Owner hereby recognize and agree that the representations and covenants set forth herein may be relied upon by Danville, Apartment Operator and the Owner. In performing their duties and obligations hereunder, Danville may rely upon statements and certificates of the Regulatory Agreement and Declaration of 9 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk Apartment Operator, Owner and Qualified Very Low Income Household tenants, and upon audits of the books and records of the Apartment Operator or Owner pertaining to occupancy of the BMR Units. In performing its duties hereunder, Owner and Apartment Operator may rely on tenant- supplied information in the Income Certification Questionnaire, unless they have actual knowledge or reason to believe that such information is inaccurate. SECTION V - ADDITIONAL DANVILLE REQUIREMENTS 1. Location of BMR Units. The BMR Units shall be the units within the Project as described in the attached Exhibit 2. 2.1. Appearance, size and bedroom count. The BMR Units shall be of the same general quality of exterior appearance and overall quality of construction as the market rate units. Interior features and finishes of the BMR Units shall be durable, of good quality, and consistent with contemporary standards for new for-rent apartment units housingof similar style and general market location. Danville and Owner acknowledge that the for-sale townhome units are materially different from for-rent apartment units, therefore, the exterior and The interior features and finishes, the construction type and quality of the BMR Units do not have to be identical or similar to the interior features and finishes of the for-sale market rate townhome units. 3.2. Appointment of other agencies. At its sole discretion, Danville may designate, appoint or contract with any other public agency, for-profit or non-profit organization to perform some or all of Danville's obligations under this Agreement, upon thirty (30) days prior notice to Owner. Additionally, Owner may designate, appoint or contract with any other service provider, operator or property manager to perform some or all of Owner’s obligations under this Agreement. 4.3. Priority for Danville residents or employees. So long as Danville's Density Bonus Ordinance so provides, and where not in conflict with the Housing Authority of the County of Contra Costa's administration of Section 8 Housing Choice Voucher Program for Project and to extent consistent with State and Federal Fair Housing laws, households with Danville residents who meet the qualifications for occupancy of the BMR Units will have first preference for the BMR Units; second preference will be given to households with Danville employees or students who meet the qualifications for occupancy of the BMR Units; third preference will be given to households with residents who live, attend school or work within five (5) miles of the Town limits; fourth preference shall be given to all other eligible households. A Danville resident or employee (or spouse), for purposes of this Agreement, is one who has lived, attended school in or worked in Danville for the year immediately preceding the proposed occupancy of the BMR Unit. 5. Default. If Danville learns of any default under this Agreement, Danville may declare the defaulting party in default by giving such party written notice specifying the nature of the default. 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), Danville may apply to a court of competent jurisdiction for such relief as may be Regulatory Agreement and Declaration of 10 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk appropriate. [this is covered in and was contradicting to Section VIII so I incorporated it and made it consistent] 6. Relief from restrictions. The Danville Town Council, or delegated Danville Town staff, may grant a waiver, relaxation or amendment of the restrictions contained in this Agreement upon a finding by the Town Council, in its reasonable discretion, of diligent effort by the Project Owner or Apartment Operator or Owner of efforts to comply with the provisions of this Agreement and an inability to find a Qualified Very Low Income Household tenant or tenants. Requests to waive, relax and/or amended these restrictions shall be placed on a regularly scheduled Danville Town Council meeting within forty-five days of receipt of such request. [this is covered in Section IX] 7.4. Hold harmless and indemnification. Owner and its successors and assigns acquiring title to the Property are required to indemnify and hold harmless (without limit as to amount) Danville and its elected officials, officers, employees, and agents in their official capacity (hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and executions for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to the Project, the BMR Units, and Owner's (or its successors and assigns acquiring title to the Property) performance or non-performance under this Agreement, including without limitation the construction or renting of any BMR Unit in the Development, and shall protect and defend Indemnitees, and any of them with respect thereto, except to the extent arising from the gross negligence or willful misconduct of Danville. The provisions of this subsection shall survive expiration or other termination of this Agreement or any release of part or all of the Property from the burdens of this Agreement, and the provisions of this subsection shall remain in full force and effect; but shall only be applicable to Owner or its successors and assigns during the period of time of their ownership of the Property. 8.5. Insurance requirements. Owner and its successors and assigns acquiring title to the Property shall obtain, at their expense, comprehensive general liability insurance for development of the BMR Units, naming Indemnitees as additional named insureds, with aggregate limits of not less than two million dollars ($2,000,000), for bodily injury and death and property damage, including coverage for contractual liability and products and completed operations, purchased by Owner or its successors or assigns from an insurance company duly licensed to engage in the business of issuing such insurance in the State, with a current Best's Key Rating of not less than A-V, such insurance to be evidenced by a certificate or an endorsement which so provides and is delivered to Danville prior to the release of final building inspection of any building permit involving the BMR Units. 9.6. Time of the essence. In each provision of this Agreement which states a specific amount of time within which the requirements thereof are to be satisfied of are to persist, time shall be deemed to be of the essence. Regulatory Agreement and Declaration of 11 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk SECTION VI - 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 5010 La Gonda Way Danville, CA 94526 Attention: Chief of Planning Owner: MM TH Danville ApartmentsCamino Ramon, LLC c/o Trammell Crow ResidentialTrumark Properties LLC 39 Forest Street, Suite 2013001 Bishop Drive, Suite 100 Mill ValleySan Ramon, CA 9494194583 Attention: tbdLegal Department Apartment Operator: Danville Pacific Associates, LP 430 E. State Street, Suite 100 Eagle, ID 83616 With copy to: [Limited Partner of Apartment Operator] SECTION VII - MISCELLANEOUS 1. Recitals and definitions incorporated. The recitals and definitions are expressly incorporated in and made part of this Agreement. This Agreement is an integrated document and it is intended that it be recorded to encumber Project for the 55-year term specified herein. 2. Binding effect. The covenants and conditions herein contained shall apply to and bind, during their respective periods of fee ownership, Owner and its heirs, executors, administrators, successors, transferees, and assignees having or acquiring any right, title or interest in or to any part of the Property and shall run with and burden such portions of the Property until terminated in accordance with Section II - Subsection 1. Term of Agreement. Until portions of the Property are released from the burdens of this Agreement pursuant to this Section II - Subsection 1. Term of Agreement, the owners of fee title to the Property shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in such property. 3. Attorneys' fees and costs. Danville shall be entitled to receive from the Owner and its successors and assigns acquiring title to the Property, or any of their agents, for violating the requirements of this Agreement, in addition to any remedy otherwise available under this Agreement or at law or equity, whether or not litigation is instituted, the costs of enforcing this Agreement, including without limitation reasonable attorneys' fees. 4. Effect of new laws. Owner and Danville acknowledge and agree that any new ordinances, regulations, rules, official policies, standards and specifications adopted by the Town or Formatted: Space After: 0 pt Formatted: Space After: 0 pt Regulatory Agreement and Declaration of 12 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk enacted or imposed by a citizen-sponsored initiative or referendum after the Effective Date of this Agreement ("New Town Laws") that (i) prevents or precludes compliance with one or more provisions of the Project conditions of approval or this Agreement, or (ii) has the effect of materially impeding or preventing development and/or operation of the Project in accordance with the project conditions of approval or the Agreement shall not apply to the Project. Specifically, without any limitation on the scope of the foregoing, any New Town Laws governing allowable rental rates for residential units shall not be applicable to the Project. 5. Controlling agreement. The Owner represents that it 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, the Owner and their respective successors in interest. 6. Limits on liability. Danville shall not be liable to any Apartment Operator, Owner, or BMR Unit lessee, or become obligated in any manner to any Apartment Operator or BMR lessee, because of such Apartment Operator's and/or BMR Unit lessee's failure to comply with any terms of this agreement regarding the operation and rent of BMR Units in the Project , unless such failure is the result of Danville’s willful misconduct or gross negligence. 7. Independent and several provisions. If any one or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable in any respect, 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. 8. 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. 9. State law. The terms of this Agreement shall be interpreted and enforced under the laws of the State of California. 10. Term. This Agreement shall be effective and the The term of this Agreement shall run for a period of thirty 55 years commencing from the date on which a certificate of occupancy is issued with respect to the first occupied BMR Unit in the Project by a Qualified Very Low Income Household. The term of the Agreement shall terminate, and the provisions of the Agreement shall no longer be in effect, after thirty 55 years have elapsed or upon termination of the Agreement following Town approval of a Revised and Restated Regulatory Agreement and Declaration of Restrictive Covenants. Upon the request of the Project Owner, Danville and the Project Owner shall enter into an amendment to this Agreement memorializing the date of the issuance of a certificate of occupancy with respect to the first occupied BMR Unit in the Project and the expiration of the term of the Agreement, which Amendment shall be recorded in the Official Records of the County of Contra Costa. The Town Manager for Danville shall be empowered and authorized to execute such amendment on behalf of Danville without the requirement of any further authorization or resolution. Regulatory Agreement and Declaration of 13 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk SECTION VIII - ENFORCEMENT 1. If Danville learns of any default under this Agreement, Danville may declare the defaulting party in default by giving such party written notice specifying the nature of the default, including any limited partner of the Apartment Operator. If the default is not cured to the reasonable satisfaction of Danville within 90 days after such notice (or as may be extended by Danville to reasonably cure such default), Subject to the provisions of Section X hereof, failure of the Owner to cure any default in the Owner's obligations under the terms of this Agreement within 90 days after the delivery of a notice of default from Danville will constitute a default under this Agreement and the requirements of the Density Bonus Ordinance and, in addition to remedies for breach of this Agreement, Danville may exercise any and all remedies available to it under the Density Bonus Ordinance and under the Danville Municipal Code, or otherwise, with respect to the Owner's failure to satisfy the terms of this Agreement and the requirements of the Inclusionary Policy, including but not limited to: a. Withholding, conditioning, or suspending, or revoking any permit, license, final development plan approval, or other entitlement for the Project, including without limitation final inspections for occupancy and/or certificates of occupancy; b. Instituting against the Owner or Apartment Operator, as applicable, a civil action for declaratory relief, injunction or any other equitable relief, or relief at law, including without limitation an action to rescind a transaction and/or to require repayment of any funds received in connection with such a violation; c. Where Owner or Apartment Operator, as applicable, have received financial benefit as a result of violation of this Agreement or of any requirement imposed under the Density Bonus Ordinance, Danville may assess, and institute legal action to recover as necessary, a penalty in any amount up to and including the amount of financial benefit received, in addition to recovery of the benefit received; or d. Prosecuting a misdemeanor against Owner or Apartment Operator, as applicable, who has received financial benefit as a result of violation of this Agreement; or e.d. Any other means authorized under the Danville Municipal Code. 2. No right, power, or remedy given to Danville by the terms of this Agreement or the Density Bonus Ordinance is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to Danville by the terms of any such document, the Density Bonus Ordinance, or by any statute or otherwise against Owner and its successors and assigns acquiring title to the Property and any other person. Neither the failure nor any delay on the part of Danville to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by Danville of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy. Regulatory Agreement and Declaration of 14 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk 3. If Danville determines that Owner is not in compliance with the terms of this Agreement, Owner shall be notified in writing. Owner shall be allowed 90 days within receipt of written notice from Danville to comply with the terms of the Agreement. If Owner remain in non-conformance with the terms of this Agreement for more than 90 days after its receipt of such notice from Danville, Danville may suspend or revoke any building permit or approval for the Project, or withhold any funds owing from Danville to Owner until such default is cured. [this is covered in Subsection 1 of this Section VIII] 3. In the event it is determined that rents in excess of those allowed by operation of this Agreement have been charged to a Qualified Very Low Income Ttenant residing in a BMR Unit, Danville may take the appropriate legal action, as authorized by Sections 32-74.7 and 32-74.8 of the Danville Municipal Code, to recover excess rent (and a corresponding penalty if deemed necessary or appropriate by Danville). The Owner or Apartment Operator to whom such excess rents were paid shall be obligated to pay to the tenant, or to Danville in the event that the tenant cannot be located, any excess rents charged, or any other appropriate legal remedies. Additionally, in the event it is determined that the tenant of a BMR Unit does not meet the definition of a Qualified Very Low-Income Household, Danville may take the appropriate legal action, as authorized by Sections 32-74.7 and 32- 74.8 of the Danville Municipal Code, to address such non-compliance with the terms of this Agreement. 4. Apartment Operator’s limited partners shall have the right, but not the obligation, to cure any default hereunder, and any cure made or tendered by the limited partners shall be accepted or rejected by Danville on the same basis as if made by Apartment Operator. SECTION IX - RELIEF FROM RESTRICTIONS Waiver, relaxation or amendment of the restrictions contained in this Agreement may be granted by the Danville Town Council upon a showing of diligent effort by the Apartment Operator or Owner to comply with the provisions of this Agreement and undue hardship. Requests to waive, relax and/or amend these restrictions shall be placed on a regularly scheduled Town Council meeting within 75 45 days of receipt of such request. SECTION X - OWNER DEFAULT ON MORTGAGE 1. Notice of foreclosure. In the event that the Owner fails to meet the requirements set forth by any mortgage affecting the Project, putting the Owner in active default with the lending institution ("Mortgagee") holding the mortgage and resulting in the initiation of foreclosure proceedings, Danville shall be notified by the Owner and/or the Mortgagee of the initiation of such proceedings. 2. Notice to Mortgagee. A Mortgagee shall be entitled to receive the following notices in writing from Danville, which notices shall be sent promptly following the occurrence of any of the following applicable events: a. Notice of default by Owner in the performance of Owner's obligations (whether monetary or non-monetary) under this Agreement; or Regulatory Agreement and Declaration of 15 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk b. Sixty days' notice prior to the effective date of (i) any proposed material amendment to this Agreement; or (ii) any termination of this Agreement. For purposes hereof, the notice address for the current Mortgagee is as follows: Wells Fargo Bank, N.A.______________ Commercial Real Estate (AU #01145)_______________ 1445 Ross Avenue, 48th Floor______________ Dallas, Texas 75202_______________ Attn: Loan Administration Loan #1018328_______________ 3. Cure rights. A Mortgagee shall have the right, but not the obligation, at any time, to do any act or thing required of Owner hereunder and to do any act or thing which may be necessary or proper to be done in the performance and observance of the agreements, covenants and conditions of Owner under this Agreement. All payments so made and all things so done and performed by the Mortgagee shall be effective to prevent a default under this Agreement as the same would have been if made, done or performed by Owner instead of by Mortgagee. Any default under this Agreement which, in the nature thereof, cannot be remedied by Mortgagee shall be deemed to be remedied if within ninety days after receiving written notice setting forth the nature of such default, the Mortgagee shall have (i) acquired the Project or commenced foreclosure or other appropriate proceedings in the nature thereof, and shall thereafter diligently prosecute any such proceedings, (ii) fully cured any non-monetary obligations of Owner hereunder which Mortgagee is capable of curing considering the nature thereof and shall thereafter continue to perform faithfully all such non-monetary obligations which do not require possession and control of the Project, and (iii) after gaining possession of the Project following a foreclosure or deed-in-lieu thereof, Mortgagee performs all future obligations of Owner hereunder as and when the same are due. 4. No invalidity of mortgage lien. No violation of this Agreement by, or enforcement of this Agreement against, Owner shall affect, impair, defeat or render invalid the lien of any mortgage or deed of trust that secures any debt against the Project. 5. Unpaid obligations. Notwithstanding anything to the contrary contained in this Agreement (including, without limitation, Section VII - Subsection 3 and Subsect VIII - Subsection 1.b. hereof), if the Mortgagee acquires title to the Project pursuant to judicial foreclosure, non-judicial foreclosure, or a deed-in-lieu of foreclosure, the Mortgagee shall take title to the Project free and clear of any claims for unpaid obligations or any other breach by the Owner hereunder with respect to the Project which accrued or occurred prior to the time Mortgagee acquired title to the Project. 6. Exculpation. Notwithstanding any provisions hereof to the contrary, there shall be no personal liability against Mortgagee for the payment of any cost, charge, expense, debt or obligation arising or created under this Agreement and any judgment or decree in any action brought to enforce the obligations of Mortgagee to pay such cost, charge, expense, debt or obligation shall be enforceable against such Mortgagee only to the extent of its Regulatory Agreement and Declaration of 16 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk interests in and to the Project, and any such judgment or decree shall not be subject to execution upon or be a lien against any other assets of Mortgagee. 7. Actions during foreclosure. Upon the initiation of foreclosure proceedings by the Mortgagee, the BMR Units, and any interest in title thereto, shall not be sold, leased or rented (other than to a Qualified Very Low Income Household), assigned, or otherwise transferred to any person or entity, except to Mortgagee by means of a deed-in-lieu conveyance or a foreclosure sale, 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 the subject BMR Units for occupancy by a Qualified Very Low Income HouseholdsQualified Households. This provision shall not prohibit the encumbering of title of the BMR Units for the sole purpose of securing financing. Regulatory Agreement and Declaration of 17 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk The parties have executed this Agreement on the date first written above. Danville: Owner: The Town of Danville MM TH Danville ApartmentsCamino Ramon, LLC, a Delaware California Limited limited Liability liability Companycompany By: Joseph A. Calabrigo, Town Manager By: Need a name here Dated: _____________, 20192025 Dated: _____________, 20192025 Approved as to form: By: Robert Ewing, City Attorney Dated: _____________, 20192025 Attest: By: Marie Sunseri, City Clerk Dated: _____________, 20192025 Regulatory Agreement and Declaration of 18 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk EXHIBIT 1 - LEGAL DESCRIPTION OF THE PROPERTY For APN/Parcel ID(s): 216-120-037 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF DANVILLE, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT 16, AS SHOWN ON THE MAP OF “SUBDIVISION 9594”, FILED FOR RECORD ON ____________, 2024 IN BOOK ___ OF MAPS, AT PAGE(S) _______, CONTRA COSTA COUNTY RECORDS. PARCEL “C”, AS SHOWN ON THE RECORD OF SURVEY FILED SEPTEMBER 19, 1977 IN BOOK 63 OF LICENSED SURVEYORS MAPS, PAGE 11, CONTRA COSTA COUNTY RECORDS. Regulatory Agreement and Declaration of 19 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk EXHIBIT 2 - TYPE, SIZE AND BEDROOM COUNT OF BMR UNITS Affordable Housing Unit Selection June 5, 2019 Very Low Income (50% AMI) Level 1 Level 2 Level 3 Total 1 Bedroom BMR Units 1 Unit 2 Units 2 Units 5 Units 2 Bedroom BMR Units 2 Units 3 Units No Units 5 Units 3 Bedroom BMR Units No Units No Units No Units No Units Total BMR Units 3 Units 5 Units 2 Units 10 Units The location of the designated BMR Units shall be as shown on the following floor plans (i.e., Attachments A, B and C for Exhibit 2), with the BMR Units graphically depicted with the notation “AU” (for affordable unit) appearing in red font. Regulatory Agreement and Declaration of 20 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk ATTACHMENT A OF EXHIBIT 2 TYPE, SIZE AND BEDROOM COUNT OF BMR UNITS - LEVEL 1 OVERALL FLOOR PLAN Regulatory Agreement and Declaration of 21 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk ATTACHMENT B OF EXHIBIT 2 TYPE, SIZE AND BEDROOM COUNT OF BMR UNITS - LEVEL 2 OVERALL FLOOR PLAN Regulatory Agreement and Declaration of 22 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk ATTACHMENT C OF EXHIBIT 2 TYPE, SIZE AND BEDROOM COUNT OF BMR UNITS - LEVEL 3 OVERALL FLOOR PLAN Regulatory Agreement and Declaration of 23 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk EXHIBIT 3 2 - MAXIMUM ALLOWABLE RENTAL RATES FOR QUALIFIED VERY-LOW INCOME HOUSEHOLDS - May 20192024 The published California Department of Housing and Community Development (HCD) median household incomes for one-, two-, three- and four-person households for the Contra Costa and Alameda Counties Area are indicated below. These income levels are used to calculate the maximum allowable income levels, adjusted for household size, of low and very-low income households earning <80% and <50%, respectively, of median income for the area. The maximum allowable rental levels reflect accommodation of a $792318.00/month utility allowance for one-person households;, $100270.00/month utility allowance for two-person households; $322.00/month utility allowance for three-person households; 396.00/month utility allowance for four person households o- or three-person households, and a $123. 00/month utility allowance for four-person households and observe a requirement that a maximum of 30% of gross household income be assigned to rent and the respective utility allowances. One-person Two-person Three-person Four-person Household Household Household Household Median Annual Income May 2024 HCD figures: $ 109,000 $ 124,550 $ 140,150 $ 155,700 Very-Low Income (50% of Median Annual Income): $ 54,500 $ 62,300 $ 70,100 $ 77,850 30% income assignment to annual housing costs: $ 16,350 $ 18,690 $ 21,030 $ 23,355 Maximum monthly housing costs: $ 1,362 $ 1,557 $ 1,752 $ 1,946 Allowance for tenant furnished utilities: $ 231 $ 270 $ 322 $ 396 Maximum allowable very-low income rent: $ 1,131 $ 1,287 $ 1,430 $ 1,550 One-person Two-person Three-person Four-person Household Household Household Household Median Annual Income May 2024 HCD figures: $ 109,000 $ 124,550 $ 140,150 $ 155,700 Low Income (80% of Median Annual Income): $ 84,600 $ 96,650 $ 108,750 $ 120,800 30% income assignment to annual housing costs: $ 25,380 $ 28,995 $ 32,625 $ 36,240 Maximum monthly housing costs: $ 2,115 $ 2,416 $ 2,718 $ 3,020 Allowance for tenant furnished utilities: $ 231 $ 270 $ 322 $ 396 Maximum allowable low income rent: $ 1,884 $ 2,146 $ 2,396 $ 2,624 Regulatory Agreement and Declaration of 24 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk One-person Household Two-person Household Three-person Household Four-person Household Median Income May 2019 HCD figures: $78,200/year $89,350/year $100,550/year $111,700/year Very-Low Income (50% of Median Income): $43,400/year $49,600/year $55,800/year $61,950/year 30% income assignment to housing costs: $13,020/year $14,880/year $15,690/year $17,430/year Maximum monthly housing costs: $1,085.00/month $1,240.00/month $1,307.50/month $1,452.50/month Allowance for tenant furnished utilities: $79.00/month $100.00/month $100.00/month $123.00/month Maximum allowable low income rent: $1,006.00/month $1,062.50/month $1,207.50/month $1,329.50/month Regulatory Agreement and Declaration of 25 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk EXHIBIT 4 - EXCERPT CONDITIONS OF APPROVAL DEV16-0014 FINAL DEVELOPMENT PLAN REQUEST DEV 16-14 (ALEXAN RIVERWALK - 373 DIABLO ROAD) FROM TOWN COUNCIL RESOLUTION NO. 32-2017 ADOPTING THE MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL SIGNIFICANCE AND APPROVING MAJOR SUBDIVISION REQUEST SD 9437 (SUB16-0110) AND FINAL DEVELOPMENT PLAN REQUEST DEV16-0107 (APNs: 203-182-027 and 203-182-047) Project Condition of Approvals Q.14 and Q.15. - Miscellaneous: Q.14. Through the project approval, the project is granted a density bonus, with such density bonus reflective of a project developer commitment to provide a specified number of units in the project as affordable units for a minimum term of 30 years. As provided for by State density bonus regulations (i.e., Government Code Section 65915) and the Danville Municipal Code, the 111-unit baseline unit count applicable to the project site is authorized to receive a 35% density bonus. The density bonus takes the maximum allowable unit count for the proposed for-rent multifamily residential project to 150 units, authorizing 39 more units than would be otherwise allowed given the property’s underlying general plan land use designation. The density bonus is provided in response to a commitment to establish and maintain thirteen of the project units as units affordable to very low income households. Requirements for restricted occupancy units shall be evidenced by an affordable housing agreement between the developer and the Town, completed and recorded on the property to each affected unit before issuance of a building permit and with said agreement to run with the land. The affordable housing agreement shall indicate the qualification criteria for the target households for the restricted occupancy units (i.e., very low income households); the intended household type (i.e., rental restricted occupancy units); the number of restricted occupancy units and their corresponding number of bedrooms; standards for maximum qualifying household incomes for restricted occupancy units with affordability restrictions; standards for maximum rents or sales prices for restricted occupancy units with affordability restrictions; standards for qualifying for occupancy of senior or handicapped restricted occupancy units; party/process responsible for certifying qualifications of households which occupy restricted occupancy units; construction scheduling; procedures for marketing and filling vacant restricted occupancy units; restrictions and enforcement mechanisms binding on property upon sale or transfer of the property; maintenance provisions of restricted occupancy units; and any other Regulatory Agreement and Declaration of 26 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk information as required by the Town to comply with the intent and requirements of these conditions of approval and the density bonus regulations of the State and the Town. The affordable housing agreement shall include a provision which allows the Town of Danville to assign its authority to regulate and enforce the agreement to the Contra Costa County Housing Authority, a nonprofit housing agency or other similar entity. Q.15. The Project Developer shall document, to the Town’s satisfaction, the due diligence and effort taken to notify members of the community and those who work in the community (including but not limited to local school employees and service workers) of the initial and ongoing availability of the affordable for-rent units to be provided in the project. Regulatory Agreement and Declaration of 27 Restrictive Covenants - Alexan Riverwalk EXHIBIT 5 3 - INCOME CERTIFICATION AND QUESTIONNAIRE FORM Annual Gross Household Income Annual gross household income is the anticipated gross annual income from all income sources of all members of the prospective very low income household. The prospective household is required to report all sources of income for the household when completing the Income Certification and Questionnaire Form supplied by the Town of Danville. If declared gross household income includes income received from a family member’s welfare income - the declared gross income shall include the amount of sanctioned welfare income in the household’s annual income. Declaration of Income Sources Income Source Tenant Co-Tenant #1 Co-Tenant #2 • Employment Income __________ __________ __________ • Net Income of a Business __________ __________ __________ • Social Security __________ __________ __________ • Net Income Real Property __________ __________ __________ • TANF __________ __________ __________ • Worker’s Compensation __________ __________ __________ • Public Assistance __________ __________ __________ • Interest from Assets __________ __________ __________ • Disability __________ __________ __________ • Regular Contributions/Gifts __________ __________ __________ • Unemployment __________ __________ __________ • Relocation Payments __________ __________ __________ • SSI __________ __________ __________ • Military Pay __________ __________ __________ • Pensions __________ __________ __________ • Alimony __________ __________ __________ • Child Support __________ __________ __________ • Annuities __________ __________ __________ • Other _______________ __________ __________ __________ • Other _______________ __________ __________ __________ Subtotals __________ __________ __________ Gross Household Income = __________ We, the Tenant and Co-Tenant(s) listed above, declare under penalty of perjury that all the information submitted above is true and correct to the best of our knowledge and belief. We understand that any misrepresentation of the submitted information may invalidate the lease contract and our ability to rent this Below Market Rate Unit. X ______________________________ (Print Name ______________________) Date ______________ X ______________________________ (Print Name ______________________) Date ______________ X ______________________________ (Print Name ______________________) Date ______________ Notes: TANF is Temporary Assistance for Needy Families and SSI is Supplemental Security Income Regulatory Agreement and Declaration of 28 Restrictive Covenants 3020 Fostoria Way- Alexan Riverwalk EXHIBIT 6 4 - REPORT OF CHANGE IN INCOME OR CHANGE IN FAMILY COMPOSITION NAME OF HEAD OF HOUSEHOLD: _________________________ PHONE #: ( ) ____________ EFFECTIVE DATE OF CHANGE: _____________________________ If your household is participant of the Family Self Sufficiency (FSS) program, check here [ ] CHANGE BEING REPORTED AND REQUIRED DOCUMENTATION - Provide attachments as indicated. Work rate change and/or change to amount of hours worked: [ ] Increased [ ] Decreased Supply four check stubs and/or letter from employer showing change in level of income. Work Status: [ ] Started [ ] Stopped [ ] Changed jobs [ ] Leave of absence Supply name, address and phone number of employer and narrative summary of work status change. Worker's Compensation: [ ] Started [ ] Stopped Attach letter from insurance company and/or four recent check stubs showing change in level of income. Unemployment: [ ] Started [ ] Stopped Provide copy of recent printout from EDD and/or four recent check stubs showing change in level of income. Aid to Families with Dependent Children (AFDC) recipient: [ ] Started [ ] Stopped [ ] Increase [ ] Decrease Provide copy of recent AFDC printout or current Notice of Action. Social Security (SS) or Supplemental Security Income (SSI): [ ] Started [ ] Stopped [ ] Increase [ ] Decrease Provide copy of letter from Social Security Administration. Child/Spousal Support: [ ] Start [ ] Stopped Provide copy of check/child support printout/letter/court documents. Child Care: [ ] Started [ ] Stopped [ ] Increased Provide copies of last four paid receipts or letter from provider. Medical Expenses: Provide copy of printout from pharmacy/proof of recurring payments/proof of onetime payment. Deletion of a household member(s): [ ] Name of household member to be deleted: [ ] Name of household member to be deleted: Addition of a household member(s): [ ] Name of household member to be added and relationship: [ ] Name of household member to be added and relationship: Other Change: [ ] (Specify Type) WARNING: Section 1001 of Title 18 of the U.S. Code makes it a criminal offense to make willful false statements or misrepresentation to any Department or Agency of the U.S. as to any matter within its Jurisdiction. I declare, under penalty of perjury, that the above information is true and complete. ________________________________________ ______________ Signature of Head of Household Date