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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Ukiah Redevelopment Agency
300 Seminary Avenue
Ukiah, CA 95482
Attn: Executive Director
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No fee document pursuant to
Government Code Section 27383
REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement")
is made and entered into as of .:317.6 , by and between the Ukiah Redevelopment Agency a
public body, corporate and politic (the "Agency") and The Ford Street Project, Inc., a California
non-profit public benefit corporation (the "Developer"). The Agency and the Developer are
sometimes referred to in this Agreement individually as a "Party" and collectively as the
"Parties".
RECITALS
1. Pursuant to Section 6 of the Agreement Between the Ukiah Redevelopment
Agency, the City of Ukiah and Mendocino County Pursuant to Health and Safety Code Section
33401, dated December 29, 1989 ("County Agreement") the Agency has agreed set aside and
make available to Mendocino County ("the County") 25% of the funds deposited to the
Agency's Low and Moderate Income Housing Fund for low and moderate income housing
programs within the City of Ukiah which the Agency determines satisfy the requirements of
Health and Safety Code Section 33334.2.
2. The County Board of Supervisors has approved a grant of $71,800 to the
Developer which the Developer will use for construction and development expenses of "Unity
Village," two 4-plex apartment buildings (8 units) for homeless families who have successfully
completed a substance abuse rehabilitation program operated by Developer. Unity Village will
be located on the real property in the City of Ukiah, County of Mendocino, more particularly
described in Exhibit A attached to and incorporated in this Agreement (the "Property").
3. In accordance with the Redevelopment Law, the expenditure of monies to fund
the Agency grant will serve the purposes of Section 33334.2 of the Redevelopment Law, by
improving and increasing the community's supply of affordable housing.
4. The Agency has agreed to grant the funds to Developer on the condition that the
Development be maintained and operated in accordance with Health and Safety.Sections
33334.2 et sec 33413(a) and 33413(b)(2)(A)(ii), and in accordance with additional restrictions
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concerning affordability, operation, and maintenance of the Development, as specified in this
Agreement.
5. In consideration of receipt of the Agency Grant, Developer has further agreed to
observe all the terms and conditions set forth below.
6. In order to ensure that the entire Development will be used and operated in
accordance with these conditions and restrictions, the Agency and Developer wish to enter into
this Agreement.
THEREFORE, the Agency and Developer agree as follows.
ARTICLE 1.
DEFINITIONS
1.1 Definitions. When used in this Agreement, the following terms shall have the
respective meanings assigned to them in this Article 1.
(a) "Actual Household Size" shall mean the actual number of persons in the
applicable household.
(b) "Adjusted Income" shall mean the total anticipated annual income of all
persons in a household, as calculated in accordance with 25 California Code of Regulations
Section 6914 or pursuant to a successor State housing program that utilizes a reasonably similar
method of calculation of adjusted income. In the event that no such program exists, the Agency
shall provide the Developer with a reasonably similar method of calculation of adjusted income
as provided in said Section 6914.
(c) "Agreement" shall mean this Regulatory Agreement and Declaration of
Restrictive Covenants.
(d) "Apartments" shall mean the units of rental housing to be made available
to Lower Income Households, in accordance. with this Agreement.
(e) "Assumed Household Size" shall have the meaning set forth in Section
2.2(b).
(f) "Agency" shall mean the Ukiah. Redevelopment Agency.
(g) "Agency Grant" shall mean the Seventy-One Thousand Eight Hundred
Dollars ($71,800.00) approved by the County Board of Supervisors for the Unity Village project.
(h) "City" shall mean the City of Ukiah, a municipal corporation.
(i) "Developer" shall mean The Ford Street Project, Inc, a California non-
profit public benefit corporation, and its successors and assigns as permitted by this Agreement.
0) "Development" shall mean the Property and the Improvements
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(k) "Lower Income Household" shall mean a lower income household as
defined in Health and Safety Code Section 50079.5, which definition includes Very Low Income
Households as defined in Health and Safety Code Section 50105 and Extremely Low Income
Households as defined in Health and Safety Code Section 50106. The Adjusted Income limits
for these households are established and published periodically by the United States Department
of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of
1937. Generally, households in the three categories have Adjusted Incomes that do not exceed
the following percentages of the area median income: Low Income Households - 80%; Very
Low Income Households - 60%; Extremely Low Income Households - 40%.
(1) "Low Income Rent" shall mean the maximum allowable rent for a Low
Income Unit pursuant to Section 2.2(a) below.
(m) "Low Income Units" shall mean the Units which, pursuant to Section
2.1(b) below, are required to be occupied by Lower Income Households.
(n) "Improvements" shall mean the improvements to be constructed by the
Developer on the Property, including the Apartments, and appurtenant landscaping and
improvements.
(o) "Property" shall mean the real property described in Exhibit A attached o
and incorporated in this Agreement.
(p) "Rent" shall mean the total of monthly payments by the tenants of a Unit
for the following: use and occupancy of the Unit and land and associated facilities, including
parking; other than security deposits; and the cost of an adequate level of service for utilities paid
by the tenant, including garbage collection, sewer, water, electricity, and gas, but not cable or
telephone service.
(q) "Tenant" shall mean a household occupying a Unit.
(r) "Term" shall mean the term of this Agreement which shall commence on
the date of recordation of this Agreement, and shall continue until December 31, 2062.
(s) "Units" shall mean the 8 units in the two 4-plexes comprising Unity
Village to be constructed by the Developer on the Property.
ARTICLE 2.
OCCUPANCY AND AFFORDABILITY
2.1 Occupancy Requirements.
(a) Low Income Units. The Units shall be rented to and occupied by or, if
vacant, available for occupancy exclusively by Lower Income Households.
2.2 Allowable Rent.
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(a) Low Income Rent. Subject to Section 2.3 below, the Rent charged to
Tenants of the Low Income Units shall not exceed one-twelfth (1/12 1h) of thirty percent (30%) of
Eighty Percent, Sixty Percent or Forty Percent of area median income for Low Income
Household, Very Low Income Households and Extremely Low Income Households,
respectively.
(b) In calculating the allowable Rent for the Units, the following Assumed
Household Sizes shall be utilized:
Number of Bedrooms Assumed Household Size
Studio
1
One
2
Two
3
Three
4
(c) Rent Increases. Annual rent increases, if any, shall be limited to: (i) the
percentage of increase in Median Income since the last Rent increase; (ii) the percentage
increase, allowed by any other regulatory agreement applicable to the Development, whichever
is lower.
2.3 Increased Income of Tenants.
(a) Increase Above Low Income Limit. In the event, upon recertification of a
Tenant's household's income, the Developer determines that a Lower Income Household no
longer qualifies as a Lower Income Household that Tenant shall be afforded not less than 60
days to find alternative housing. After 60 days, if the Tenant has not voluntarily vacated the
Unit, the Developer shall initiate and diligently pursue proceedings to evict the Tenant and
recover possession of the Unit. Upon the restoration of possession to Developer, the Unit shall
be made rented to another Lower Income Household as soon as possible, but not later than 60
days following the restoration of possession.
2.4 Tenant Selection.
All of the Units shall be available for occupancy on a continuous basis to members of the
general public who are income eligible. Developer may restrict Units to family households,
which have successfully completed substance abuse and similar or related programs operated by
Developer, but shall not otherwise give preference to any particular class or group of persons in
renting the Units, except to the extent that the Units are required to be leased to Lower Income
Households. There shall be no discrimination against or segregation of any person or group of
persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national
origin, source of income, disability, or ancestry, in the leasing, subleasing, transferring, use,
occupancy, tenure, or enjoyment of any Unit.
2.5 Lease Provisions. Developer shall include in leases for all Units provisions which
authorize Developer to immediately terminate the tenancy of any household one or more of
whose members misrepresented any fact material to the household's qualification as a Lower
Income Household. Each lease or rental agreement shall also provide that the household is
217.44.39e570.1 ^~~Ip~III11m~I~ni~111i YAII~IfiII~Y~11i 739
PO 4114
subject to annual income recertification, and that, if the household's income increases above the
applicable limits for a Lower Income Household, such household's tenancy may be terminated
on 60 days prior written notice from Developer. Each lease shall contain a provision authorizing
termination of the lease, if the household members fail or refuse to provide the information
required by the Developer or any regulatory body with respect to the household's income.
2.6 Income Certification. The Developer will obtain, complete and maintain on file,
immediately prior to initial occupancy and,annually thereafter, income and household size
certifications from each Tenant renting any of the Units. Copies of tenant income certifications
shall be available to the Agency upon request.
2.7 Annual Reports to.Agency. Developer shall submit to the Agency not later than
the ninetieth (90th) day after the close of each calendar year during the Term, a statistical report,
including income and rent data for all Units.
2.8 Records. Developer shall maintain complete, accurate and current records
pertaining to the Development, and shall permit any duly authorized representative of the
Agency to inspect records, including records pertaining to income and household size of
Tenants. The Developer shall retain copies of all materials obtained or produced with respect to
occupancy of the Units for a period of at least five (5) years.
2.9 On-site Inspection. The Agency shall have the right to perform an on-site
inspection of the Development at least one time per year. The Developer agrees to cooperate in
such inspection.
ARTICLE 3.
OPERATION OF THE DEVELOPMENT
3.1 Residential Use. The Development shall be used only for rental residential use for
Lower Income Households.
3.2 Taxes and Assessments. Developer shall pay all real and personal property taxes,
assessments, if any, and charges and all franchise, income, employment, old age benefit,
withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such
manner as to prevent any penalty from accruing, or any line or charge from attaching to the
Property; provided, however, that Developer shall have the right to contest in good faith, any
such taxes, assessments, or charges. In the event Developer exercises its right to contest any tax,
assessment, or charge against it, Developer, on final determination of the proceeding or contest,
shall immediately pay or discharge any decision or judgment rendered against it, together with
all costs, charges and interest.
ARTICLE 4.
PROPERTY MANAGEMENT AND MAINTENANCE
4.1 Management Responsibilities. The Developer is responsible for all management
functions with respect to the Development, including without limitation the selection of tenants,
certification and recertification of household size and income, evictions, collection of rents and
deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital
217\44\396570.1 111111 Jill 111111111111111111 iui peas 04,39
items, and security. The Agency shall have no direct responsibility over management of the
Development. The Developer shall retain a professional property management company
approved by the Agency in its reasonable discretion to perform its management duties under this
Agreement. A resident manager shall also be required.
4.2 Management Agent. The Development shall at all times be managed by an
experienced management agent reasonably acceptable to the Agency (as approved, the
"Management Agent"), with demonstrated ability to operate residential facilities like the
Development in a manner that will provide decent, safe, and sanitary housing. The Agency
agrees that Developer is approved as the initial Management Agent of the Development. The
Developer shall submit for the Agency's approval the identity of any proposed substitute
Management Agent. The Developer shall also submit such additional information about the
background, experience and financial condition of any proposed substitute Management Agent
as is reasonably necessary for the Agency to determine whether the proposed Management
Agent meets the standard for a qualified Management Agent set forth above. If the proposed
substitute Management Agent meets the standard for a qualified Management Agent set forth
above, the Agency shall approve the proposed Management Agent by notifying the Developer in
writing. Unless the proposed Management Agent is disapproved by the Agency within thirty
(30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it
shall be deemed approved. If the proposed Management Agent is disapproved by the Agency for
failing to meet the standard for a qualified Management Agent set forth above, the Agency shall
provide the specific reasons for such disapproval, and the Developer shall submit for the
Agency's approval a new proposed Management Agent within thirty (30) days following the
Agency's disapproval. The Developer shall continue to submit proposed Management Agents
for Agency approval until the Agency approves a proposed Management Agent.
4.3 Property Maintenance. The Developer agrees, for the entire Term of this
Agreement, to maintain all interior and exterior improvements, including landscaping, on the
Property in good condition and repair (and, as to landscaping, in a healthy condition) and in
accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state,
county, municipal, and other governmental agencies and bodies having or claiming jurisdiction
and all their respective departments, bureaus, and officials.
The Agency places prime importance on quality maintenance to protect its investment
and to ensure that all Agency assisted affordable housing projects within the City are not allowed
to deteriorate due to poor maintenance. Normal wear and tear of the Development will be
acceptable to the Agency assuming the Developer agrees to provide all necessary improvements
to assure the Development is maintained in good condition. The Developer shall make all
repairs and replacements necessary to keep the improvements in good condition and repair.
ARTICLE 5.
ASSIGNMENT AND TRANSFERS
5.1 Definitions.
As used in this Article, the term "Transfer" means:
^^394f0 IIIY~NINIINMVIINIMIINIIVIMIfIVINpams~m4739
(a) Any total or partial sale, assignment or conveyance, or any trust or power,
or any transfer in any other mode or form, of or with respect to this Agreement or of the
Development or any part of the Developer or any interest in the Developer or any contract or
agreement to do any of the same; or
(b) Any total or partial sale, assignment or conveyance, of any trust or power,
or any transfer in any other mode or form, of or with respect to any ownership interest in
Developer; or
(c) Any merger, consolidation, sale or lease of all or substantially all of the
assets of Developer; or
(d) The leasing of part or all of the Property or the Improvements on the
Property; provided, however, that leases of the units included within the Development to tenant
occupants, in accordance with the Agency Regulatory Agreement, shall not be deemed a
"Transfer" for purposes of this Article.
5.2 Purpose of Restrictions on Transfer.
This Agreement is entered into solely for the purpose of the development and operation
of the Development and its subsequent use in accordance with the terms of this Agreement. The
Developer recognizes that the qualifications and identity of Developer are of particular concern
to the Agency, in view of:
(a) The importance of the redevelopment of the Property to the general welfare
of the community; and
(b) The land acquisition assistance and other public aids that have been made
available by law and by the government for the purpose of making such redevelopment possible;
and
(c) The reliance by the Agency upon the unique qualifications and ability of
the Developer to serve as the catalyst for development of the Property and upon the continuing
interest which the Developer will have in the Property to assure the quality of the use, operation
and maintenance deemed critical by the Agency in the development of the Property; and
(d) The fact that a change in ownership or control of the Developer as owner of
the Property, or of a substantial part of the Property, or any other act or transaction involving or
resulting in a significant change in ownership or with respect to the identity of the parties in
control of the Developer or the degree those parties' control of the Developer is for practical
purposes a transfer or disposition of the Property; and
(e) The fact that the Property is not to be acquired or used for speculation, but
only for development and operation by the Developer in accordance with the Agreement; and
(f) The importance to the Agency and the community of the standards of use,
operation and maintenance of the Property.
744396=70.1 INIVIAIIVIIIIIpIgVINNNWINVINNY;am;~„"s
The Developer further recognizes that it is because of such qualifications and identity that the
Agency is entering into this Agreement with the Developer and that Transfers are permitted only
as provided in this Agreement.
5.3 Prohibited Transfers.
. The limitations on Transfers set forth in this Article shall apply throughout the Term.
Except as expressly permitted in this Agreement, the Developer represents and agrees that the
Developer has not made or created, and will not make or create or suffer to be made or created,
any Transfer, either voluntarily or by operation of law without the prior written approval of the
Agency.
Any Transfer made in contravention of this Section shall be void and shall be deemed to
be a default under this Agreement whether or not the Developer knew of or participated in such
Transfer.
5.4 Permitted Transfers.
Notwithstanding the provisions of Section 5.3, the following Transfers shall be permitted
and by execution of this Agreement are approved by the Agency, subject to satisfaction of the
requirements of Section 5.5:
(a) Any Transfer creating a mortgage, deed of trust, or other method of
security to finance acquisition, development, rehabilitation or repair of the Development (a
"Secured Financing");
(b) Any Transfer directly resulting from the foreclosure of a Secured Financing
or the granting of a deed in lieu of foreclosure of a Secured Financing; and
5.5 Other Transfers with Agency Consent.
The Agency may, in its sole discretion, approve in writing other Transfers as requested
by the Developer. In connection with such request, there shall be submitted to the Agency for
review all instruments and other legal documents proposed to effect any such Transfer. If a
requested Transfer is approved by the Agency such approval shall be indicated to the Developer
in writing. Such approval shall be granted or denied by the Agency within thirty (30) days of
receipt by the Agency of Developer's request for approval of a Transfer.
ARTICLE 6.
MISCELLANEOUS
6.1 Compliance with Program Requirements. The Developer's actions with respect to
the Property shall at all times be in full conformity with the requirements imposed on projects
assisted with Redevelopment Low and Moderate Income Housing Fund monies under California .
Health and Safety Code Section 33334.2 et M.
2117-
21744396570.1
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6.2 Covenants to Run With the Land. The Agency and Developer declare their
express intent that the covenants and restrictions set forth in this Agreement shall run with the
land, and shall bind all successors in title to the Property, provided, however, that on the
expiration of the Term of this Agreement said covenants and restrictions shall expire.
(a) Developer Default, Enforcement by the Agency. If Developer fails to cure
a default under this Agreement within thirty (30) days after the Agency has notified the
Developer in writing of the default or, if the default cannot be cured within thirty (30) days,
failed to commence to cure within thirty (30) days and thereafter diligently pursue such cure, the
Agency may bring an action at law or in equity to compel Developer's.performance of its .
obligations under this Agreement.
6.3 Attorneys Fees and Costs. In any action brought to enforce this Agreement, the
prevailing party shall be entitled to all costs and expenses of suit, including attorneys' fees.
6.4 Recording and Filing. The Agency and Developer shall cause this Agreement, and
all amendments and supplements to it, to be recorded against the Property in the Official Records
of the County of Mendocino.
6.5 Governing Law. This Agreement shall be governed by the laws of the State of
California.
6.6 Amendments. This Agreement may be amended only by a written instrument
executed by all the Parties or their successors in title, and duly recorded in the real property
records of the County of Mendocino, California.
6.7 Notice. Formal notices, demands, and communications between the Agency and
the Developer shall be sufficiently given if and shall not be deemed given unless dispatched by
registered or certified mail, postage prepaid, return receipt requested, or delivered by reputable
overnight delivery service, return receipt requested, or delivered personally with a delivery
receipt, to the principal office of the Agency and the Developer as follows:
Agency:
Ukiah Redevelopment Agency
300 Seminary Avenue
Ukiah, CA 95482
Attn: Executive Director
Developer:
The Ford Street Project, Inc.
139 Ford Street
Ukiah, CA. 95482
FAX: 468-9860
Attn: Executive Director
Ford Street Project
217.44.39e570.1 11111111111111111 JillII~111h1111l1Y P9 9111 39
Such written notices, demands and communications may be sent in the same manner to such
other addresses as the affected Party may from time to time designate by mail as provided in this
Section. Receipt shall be deemed to have occurred on the date shown on a written receipt as the
date of delivery or refusal of delivery (or attempted delivery if undeliverable).
6.8 Severability. If any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions of this .
Agreement shall not in any way be affected or impaired by such invalidity, illegality or
uneforceability.
6.9 Multiple Originals; Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original.
217\44\396570.1 IIIIIIMillI111111111111111111111~ill p0101 439
IN WITNESS WHEREOF, the Agency and Developer have executed this Agreement by
duly authorized representatives, all on the date first written above.
AGENCY:
Ukiah Redevelopment Agency
Its: S S~ c
DEVELOPER:
The Ford Street Project, Inc.
By: a" .1
Mark Rohloff 1) L)
Its: Executive Director
217,+4.396:701 11111111111111111 Jill 11111111111111111111112007-04739 14
ti EXHIBIT A
Order Number: 2306-2440591
Page Number: 6
LEGAL DESCRIPTION
Real property in the City of Ukiah, County of Mendocino, State of California, described as follows:
Tract One:
Commencing at the intersection of the South line of Ford Street and the Westerly right of way
line of the Northwestern Pacific Railroad; thence Westerly along the South line of said Ford
Street, 137.12 feet to the Northwest corner of the Ford Street Project property as described in
Instrument #2004-21560, Official Records, Mendocino County Records, thence along the West
line of said Ford Street Project property South 03015'00" East, 73.00 feet to the point of
beginning of this description; thence leaving said West line South 86045'00"West, 62.50 feet;
thence South 03015'00" East, 19.00 feet; thence South 86045'00" West, 37.50 feet; thence South
03015'00" East, 200 feet, more or less, to the center of Orr Creek; thence Easterly down the
center of Orr Creek 100 feet, more or less, to a point from which the point of beginning bears
North 03015'00" West, thence North 030 15' 00" West, 197 feet, more or less, to the point of
beginning.
APN: 002-121-19
Said Tract One is pursuant to City of Ukiah Boundary Line Adjustment #05-30, completed by
Quitclaim Deed recorded January 18, 2006 as 2006-01090, Mendocino County Records.
Tract Two:
A non-exclusive easement for ingress, egress and public utilities 25 feet in width and extending
from the North line of Tract One above to Ford Street. The East line of said easement is
described as follows:
Beginning at the Northwest corner of the Ford Street Project property as described in the Deed
recorded in 200+21560; thence West, along the South line of Ford Street, 60 feet to the point of
beginning of this line; thence due South to the North line of Tract One above.
1111111 Hill 11111111111 Illill IN 111111111111111111 Jill 21107-114739
RkstAmerican Title
STATE OF CALIFORNIA
COUNTY OF )
On 20677 before me,
Notary Public, personally appeared ,
personally known to me (or proved to me on the basis of satisfactory vidence) to be the
person(s) whose named' is/Wd subscribed to the within instrument and acknowledged to me that
he/sho/they executed the same in his/her/t~ i`r authorized capacity(Ies), and that by his/her/tb2ir
signature(s) on the instrument the person, or the entity upon behalf of which the person
acted, executed the instrument.
WITNESS my hand and official seal. DEBORAH POLLOCK
;,Commission ~ 146A431 1
Signature , (Seal) , Hlotory Public - Caiffomb
E Mendocino County
My Comm. Expkes Jan 20.2M8
Q 4
:.,217\44\396570.1 111,11, 1^11111I1III1IIII1NI1IYI~IN111111^ P80130Ag39
Z
STATE OF CALIFORNIA
COUNTY OF
On`Aq 4A6,4 I -V , 20 07before me,
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) Ware subscribed to the within instrument and acknowledged to me that
h,e/she/they executed the same in his/her/thei-r authorized capacity(ies), and that by leis/her/their
signature(s-) on the instrument the persono), or the entity upon behalf of which the person')
acted, executed the instrument.
WITNESS my hand and official seal. FDE60RAH PM0CK~
Commission #E 1464431
Signature (Seal) Mendocino Notary Paulo - COMMIa
docino County
My Comm. Expkw Jon 20, 2006
Pg. :;a„a3s
217\44\396570.1
