19-1008_C & C DEVELOPMENT CO., LLC_Staff Memo MEMORANDUM October 8, 2019
TO: The Groves Disposition & Development Agreement File
CC: Joel Rojas, Development Services Director
City Clerk's Division
FROM: Laura Stokes, Housing Coordinator/Assistant Planner
SUBJECT: Correction to.Typographical 'Error Found Within the Regulatory Agreement
of the Disposition & Development Agreement for The Groves Affordable
Housing Development
In preparation for submitting financing applications to various sources, C & C
Development Inc., which the City Council entered into a Disposition & Development
Agreement for The Groves Affordable Housing Development on July 16, 2019, identified
a typographical error within the Regulatory Agreement.
The Regulatory Agreement that was presented to the City Council and signed by C & C
Development Inc. says the unit mix is:
10 1-bedroom,units at 30% of Annual Median Income (AMI)
23 1-bedroom units at 50% of AMI
2 2-bedroom units at 50% of AMI
2 2-bedroom units at 60% of AMI
The proforma prepared by C & C Development Inc. reflects that the 23 1-bedroom units
are at 60% of AMI, not 50% of AMI. This appears to be a drafting error.
The Staff report indicates that the Regulatory Agreement requires the following
affordability mixture:
10 units at 30% of AMI
2 units at 50% of AMI
25 unit at 60% of AMI
Based upon the staff report the Council would be aware that the 23 one bedroom units
should have been at 60% of AMI, not 50% of AMI.
Therefore, the corrected page from the Regulatory Agreement, identifying 23 1-bedroom
units at 60% of AMI, has been prepared, initialed by C 7 C Development and the City
Manager, and slip-sheeted into the final document. The revised page has been provided
in this memorandum for the file.
Attachment 1: Corrected Regulatory Agreement, Page 5 of Exhibit H
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or rented for use as a hotel, motel, time share, dormitory, fraternity house, sorority house, rooming
house, hospital,nursing home,sanitary or rest home.
4. Continuous Operation Covenant. The Owner covenants to and for the benefit of the City to
cause the Project to be continuously operated, in accordance with the other provisions of this
Regulatory Agreement, throughout the Term.
5. Abandonment. The Owner shall not abandon or surrender the operation of all or any part
of the Project during the Term, except due to material casualty or condemnation.
6. Rental of Qualifying Units. The Owner covenants that each Qualifying Unit shall be
occupied or available for occupancy by a Qualifying Household at an Affordable Rent on a
continuous basis throughout the Term, in accordance with the following tenant income level mix:* 'rte
6.1. Not less than ten (10) of the One Bedroom Units shall be occupied or available for
occupancy byQualifying Households that are 30%Households; and
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6.2. Not less than twenty-three (23) of the One Bedroom Units shall be occupied or
availablefor occupancy by Qualifying Households that are 60% Households; and
6.3. Not less than two (2) of the Two Bedroom Units shall be occupied or available for
occupancy by Qualifying Households that are 50%Households; and
6.4. Not less than two (2) of the Two Bedroom Units shall be occupied or available for
occupancy by Qualifying Households that are 60%Households.
7. Affordable Rent. The monthly rent charged to a Qualifying Household for the occupancy
of a Qualifying Unit shall never exceed an Affordable Rent for such Qualifying Unit set forth in
Section 1.5.
7.1. Rent for Qualifying Units may be increased only once per calendar year, based on
changes. in Area Median Income; provided that the rent for each Qualifying Unit must never
exceed an Affordable Rent for the Qualifying Unit as necessary to maintain the tenant income mix
specified in Section 6.
7.2. Determination of Qualifying Household income shall be made by the Owner at the
time of initial application by an individual or family for occupancy of a Qualifying Unit. At the
time of initial application, the Owner shall require an applicant to complete the Income
Certification Form and certify the accuracy of the information provided on such form. On or
before March 31 of each calendar year during the Term, the Owner shall require each Qualifying
Household occupying a Qualifying Unit to recertify the Qualifying Household's income on the
Income Certification Form. The Owner shall make a good faith effort to verify the accuracy of
income information provided in any Income Certification Form by an applicant for occupancy of a
Qualifying Unit or by a Qualifying Household occupying a Qualifying Unit, by taking one or more
of the following steps, as reasonably required or indicated: (1) obtain an income tax return and
copy of each W2 Wage and Earnings Statement for the most recently concluded income tax year;
(2) conduct a credit reporting agency or similar search; (3) obtain an income verification form
from the applicant's or the Qualifying Household's current employer(s); (4) obtain an income
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