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Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 11

Meeting Date: August 9, 2005

Subject/Title: Approve a Resolution of the City of Brentwood Authorizing the City Manager to Accept and Consent to Deeds Conveying Affordable Rental Units to the City and Approving a Form of Affordability Covenant to be recorded against the Units

Prepared by: Kwame Reed, Sr. Housing Analyst

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Approve a Resolution of the City of Brentwood Authorizing the City Manager to Accept and Consent to Deeds Conveying Affordable Rental Units to the City and Approving a Form of Affordability Covenant to be recorded against the Units.

PREVIOUS ACTION
Ordinance 790 was adopted by the City Council on January 11, 2005 amending the City of Brentwood Affordable Housing Program.

BACKGROUND
Ordinance 790 allows developers to dedicate affordable units to the City of Brentwood as an alternative equivalent to constructing affordable units on-site. The dedicated units are required to be part of the City’s rental housing program and to be encumbered with affordable rental restrictions. California Government Code requires that any real estate interest conveyed to a political corporation for public purposes cannot be recorded without the consent of the grantee unless evidenced by a certificate or resolution of acceptance. This resolution authorizes the City Manager or her designee to accept deeds or grants of affordable rental units created pursuant to the Affordable Housing Ordinance and to record the required rental restrictions against these units. The recorded rental restriction shall be for 99 years and is then renewable.

Adoption of the resolution also approves the form of Affordable Housing Covenant and authorizes the City Manager or her designee to execute and record an Affordable Housing Covenant for each affordable unit conveyed to the City.

There are currently two units completed and waiting to be accepted by the City from DR Horton in Stonebrook II, TSM 8557.

FISCAL IMPACT
Acceptance of the units will create an asset for the City of Brentwood. This asset is contained within the 2005/06 – 2009/10 Capital Improvement Program. Costs for the units are budgeted as an expenditure from any future rental income stream on these units.

Attachments
Resolution
Affordability Covenant

RESOLUTION NO.
A RESOLUTION OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER TO ACCEPT AND CONSENT TO DEEDS CONVEYING AFFORDABLE RENTAL UNITS TO THE CITY AND APPROVING A FORM OF AFFORDABILITY COVENANT TO BE RECORDED AGAINST THE UNITS
WHEREAS, the City of Brentwood recently adopted an Inclusionary Housing Ordinance amending Chapter 17.725 of the Brentwood Municipal Code to require a ten percent affordability requirement for new residential developments.
WHEREAS, Section 17.725.004(D) of the ordinance allows developers to dedicate affordable units to the City of Brentwood as an alternative equivalent to constructing affordable units on-site. The dedicated units are required to be part of the City's rental housing program and to be encumbered with affordable rental restrictions.
WHEREAS, pursuant to California Government Code section 27281, deeds or grants conveying any interest in real estate to a political corporation for public purposes shall not be recorded without the consent of the grantee evidenced by a certificate or resolution of acceptance.
WHEREAS, pursuant to California Government Code section 27281, a political corporation, by general resolution, may authorize one or more officers or agents to accept and consent to such deeds or grants.
WHEREAS, the City Council desires to authorize the City Manager or his or her designee to accept deeds or grants of affordable rental units created pursuant to the Inclusionary Housing Ordinance and to record the required rental restrictions against such units.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BRENTWOOD DOES HEREBY RESOLVE AS FOLLOWS:
1. The City Council hereby authorizes the City Manager or his or her designee to accept and consent to deeds or grants conveying to the City affordable rental units created pursuant to Section 17.725.004(D) of the Brentwood Municipal Code. The City Council further authorizes the City Manager or his or her designee to execute any and all documents necessary to effectuate such conveyance, including, without limitation, certificates of acceptance.
2. The City Council hereby approves the form of Affordable Housing Covenant attached hereto and authorizes the City Manager or his or her designee to execute an Affordable Housing Covenant for each affordable rental unit conveyed to the City pursuant to Section 17.725.004(D) of the Brentwood Municipal Code, subject to minor technical or clarifying revisions approved by the City Attorney or Special Counsel. The City Council further authorizes the City Manager or his or her designee to record the executed Affordable Housing Covenants against the units.
PASSED AND ADOPTED this 9th day of August, 2005, by the following vote:

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City of Brentwood
150 City Park Way
Brentwood, California 94513
Attn: City Clerk

(Space Above This Line for Recorder's Use Only)
[Exempt from recording fee per Gov. Code § 27383]

AFFORDABLE HOUSING COVENANT
THIS AFFORDABLE HOUSING COVENANT (the "Covenant") is entered into as of the day of , 20 , by THE CITY OF BRENTWOOD and THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD (collectively referred to herein as "City").
RECITALS
A. City has implemented the inclusionary housing requirements set forth in Chapter 17.725 of the Brentwood Municipal Code and any implementing regulations ("City Inclusionary Housing Requirements") by establishing an Affordable Housing Program for the City of Brentwood. Section 17.725.004(D) of the ordinance allows developers to dedicate affordable units to the Affordable Housing Program as an alternative equivalent to constructing affordable units on-site.
B. As part of the Affordable Housing Program, that certain real property located at _____________, Brentwood, California and more particularly described in Exhibit A attached hereto and incorporated herein, has been conveyed to the City of Brentwood. The real property, which includes the land, the residence and all other improvements thereon, and all membership and other rights appurtenant thereto, is referred to in this Covenant as the "Restricted Unit."
C. Pursuant to the City Inclusionary Housing Requirements, the City will rent the Restricted Unit to an Eligible Household (as defined below), at a price that does not exceed the Affordable Rent (as defined below).
D. Pursuant to City Council Resolution No. , the City Manager or his or her designee is authorized to record an affordable housing covenant against the Restricted Unit.
NOW, THEREFORE, City covenants the Restricted Unit as follows:
1. Rent Restrictions. The Restricted Unit shall only be rented to an Eligible Household approved by City in accordance with the terms of this Covenant, the City Inclusionary Housing Requirements and the City's Affordable Housing Program for an amount that does not exceed an Affordable Rent. As used in this Covenant:
a. "Affordable Rent" shall be as defined in Health and Safety Code Section 50053 or any successor statute thereto. If the statute is no longer in effect and no successor statute is enacted, the City shall establish the Affordable Rent for purposes of this Covenant. For purposes of determining the Affordable Rent: (i) the rent for a 2 bedroom Restricted Unit shall be established using the assumption that the Eligible Household purchasing the Unit is comprised of three persons; (ii) the rent for a 3 bedroom Restricted Unit shall be established using the assumption that the Eligible Household purchasing the Unit is comprised of four persons; and (iii) the rent for a 4 bedroom Restricted Unit shall be established using the assumption that the Eligible Household purchasing the Unit is comprised of five persons.
b. "Eligible Household" shall mean and include a person or household whose annual gross income does not exceed [insert "50%" for very-low income household, "80%" for low income household, or "120%" for median income household] of the Median Income, as defined below (which percentage shall be adjusted as provided in Title 25, Section 6932 of California Code of Regulations).
c. "Median Income" shall mean the area-wide median gross yearly income in Contra Costa County, adjusted for household size, as established from time to time by the U.S. Department of Housing and Urban Development ("HUD"), or, by the California Department of Housing and Community Development ("HCD") if HUD ceases to establish such income standards. In the event that neither HUD nor HCD are establishing such income standards, the City shall determine income standards in a manner reasonably similar to the methods of calculation previously used by HUD or HCD.
2. No Discrimination. City covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, disability, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Restricted Unit, nor shall the City itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees or vendees in the Restricted Unit.
3. Duration. The covenants set forth herein shall be covenants running with the land and shall inure to the benefit of the City and its successors and assigns, and shall be enforceable by the City or its successors and assigns, without regard to whether the City is or remains an owner of any land or interest to which such covenants relate, until the date that is 99 years after the date this Covenant is recorded.
4. Successors and Assigns. The covenants contained herein shall inure to the benefit of the City and its successors and assigns.
5. No Third Party Beneficiaries. Notwithstanding anything in this Covenant to the contrary, there are no third party beneficiaries of this Covenant.
6. Severability. Should any provision of this Covenant be found invalid or unenforceable by a court or other body of competent jurisdiction, said invalidity, unenforceability or ineffectiveness shall not affect the validity of the remaining provisions which shall remain in force to the maximum extent possible.
IN WITNESS WHEREOF, the City has caused this Covenant to be executed on its behalf by its respective officers thereunto duly authorized.
Dated for reference purposes only as of , 20 .

Date:

ATTEST:

By:
City Clerk

APPROVED AS TO FORM:

By:
City Attorney CITY:
THE CITY OF BRENTWOOD and THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD
By:

Name:
City Manager and Executive Director

STATE OF CALIFORNIA )
) ss
COUNTY OF )
On , before me, the undersigned, a notary public, personally appeared ,
( ) personally known to me, or
( ) proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that executed the same in authorized capacity(ies), and that by signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.

Signature

EXHIBIT A
Legal Description of Restricted Unit

[to be inserted]

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
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E-mail allcouncil@brentwoodca.gov