19-1108_C & C DEVELOPMENT CO., LLC_Staff Memo MEMORANDUM November 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 Affordable Housing
Disposition & Development Regulatory 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 an Affordable Housing Disposition ,
& Development Regulatory Agreement for The Groves Affordable Housing Development
on July 16, 2019, identified a typographical error within the Disposition & Development
Agreement.
The Disposition & Development Agreement that was presented to the City Council and
signed by C & C Development Inc. says the Project"...shall include not less than seventy-
five units, thirty-six of which shall be rented to Qualified Households at Affordable
Rents..."
However, the Staff report indicates that the Disposition & Development Agreement
requires the Project to restrict not more than 49% of the units, or 36 units, to abide by
requirements of Article XXXIV.
Based upon the staff report the Council would be aware that the only 36 units are to be
rented to qualified households at affordable rents.
Therefore, the corrected page from the Disposition & Development Agreement, identifying
36-units to be rented to qualified households at affordable rents, has been prepared,
initialed by C & 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 Disposition & Development Regulatory Agreement, Page 3 of
Exhibit H
1.13.
1)ii_U___IL_____Isurance. Commercial general liability insurance against claims for
bodily injury, personal injury, death, or property damage occurring upon, in, or about the
Property, the Project or adjoining streets or passageways, at least as broad as Insurance Services
Office Occurrence Form CG0001, with a minimum liability limit of Two Million Dollars •
($2,000,000) for any one occurrence and which may be provided through a combination of
primary and excess or umbrella insurance policies. If commercial general liability insurance or
other form with a general aggregate limit is used, either the general aggregate limit shall apply
separately to the Project or the general aggregate limit shall be twice the required minimum
liability limit for any one occurrence.
1.14. Management Agent. A person with significant experience in management of
affordable rental housing projects substantially similar to the Project and that is, at the time,
managing other financially self-supporting, successful affordable rental housing projects
substantially similar to the Project. •
1.15. Manager Unit. The one (1) Three Bedroom Unit within the Project reserved
exclusively for use by the on-site manager employed by the Owner or the Management Agent, as
applicable.
1.16. One Bedroom Unit. Any'one of the one bedroom residential accommodations
within the Project.
1.17. Project. The operation of a multi-family rental housing project which shall
include not less than seventy-five (75)units, thirty-six (36) of which shall be rented to Qualifie
Households, at Affordable Rents, and all related on- ,and off-site improvements, as more
particularly described in the Affordable Housing Agreement.
1.18. Property Insurance. Insurance providing coverage for the Property and all
improvements on or to the Property against loss, damage, or destruction by fire and other hazards
encompassed under the broadest form of property insurance coverage then customarily used for
like properties in the County of Orange, excluding earthquake coverage, in an amount equal to
one hundred percent (100%) of the replacement value (without deduction for depreciation) of all
improvements comprising the Project (excluding excavations and foundations) and in'any event
sufficient to avoid co-insurance and with no co-insurance penalty provision, with "ordinance or
law" coverage. To the extent customary for like properties in the County of Orange at the time,
such insurance shall include coverage for explosion of steam and pressure boilers and similar
apparatus located on the Property; an "increased cost of construction" endorsement; and an
endorsement covering demolition and cost of debris removal, all subject to policy sublimits.
Property Insurance shall also include rental or business interruption insurance in an amount, at
least, equal to the average annual gross income from the Project for the preceding three (3)
calendar years and providing for a 12-month extended period of indemnity.
1.19. Qualified Households. A household that (1) intends to resides in the Qualifying
Unit; (2) is a Senior Household; and (3) whose income does not exceed the maximum income
allowable for the subject Qualifying Unit.
1.20. Qualifying Units. The thirty-six (36) One Bedroom Units and Two Bedroom7
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