REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS

 

THIS REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS is made and entered into this 28th day of March, 2006, by and between the COUNTY OF SAN MATEO, hereinafter referred to as “County,” and JAMES SPILKER, JR., AND ANNA MARIE SPILKER, hereinafter referred to as “Owner.”

 

W I T N E S S E T H

 

WHEREAS, the Owner of the property located at 19509 Cabrillo Highway, San Gregorio, further identified as APN 081-030-030, wishes to replace a farm labor housing unit with an 1,800 sq. ft. affordable housing unit on said property; and

 

WHEREAS, as a condition of approval (County File Number PLN 2003-00041) of said affordable housing unit, the Owner was required to and has agreed to limit the use of said unit to long-term affordable housing for very low, low and/or moderate income households; and

 

WHEREAS, County and Owner desire to enter into an Agreement which will provide for the replacement of a farm labor housing unit with an 1,800 sq. ft. affordable housing unit and its restriction to use as rental housing affordable to very low, low and/or moderate income households.

 

NOW, THEREFORE, the parties mutually agree as follows:

 

PART I

 

A.

Description of the Property

   
 

The real property subject to this Agreement is located in the County of San Mateo, State of California, and is more fully described in Exhibit “A,” attached hereto and by this reference made a part hereof.

   
 

The specific unit to be subject to these restrictions is a 3-bedroom unit to be commonly known as 19509 Cabrillo Highway, San Gregorio, approved by the Zoning Hearing Officer on January 19, 2006, under the following Planning Division reference: PLN 2003-00041, and hereinafter referred to as “the unit.”

   

B.

Maintenance of Long-Term Affordability

   
 

The Owner agrees that the unit referred to in Part I, Paragraph A shall be restricted permanently from the date hereof in order to remain continuously affordable to very low, low and moderate income tenants. This restriction shall be binding on the Owner and any and all successors in interest.

   

C.

Rent Restrictions

   
 

The monthly rent for the unit shall not exceed the maximum affordable rent payment for a median income household as determined by the County Department of Housing or its successor agency, based on calculations provided under Section 8 of the United States Housing Act of 1937 (“Section 8” or “Section 8 Program”) for the Payment Standard for a 3-bedroom unit exclusive of tenant utility allowance. As of the date of this Regulatory Agreement, the maximum rent for a 3-bedroom unit is $2,470.

   

D.

Tenant Requirements

   
 

The unit shall be continuously occupied by very low, low or moderate income tenants as defined in General Plan Housing Chapter Policy 14.5, except that the maximum income of a moderate income household occupying the unit shall not exceed 100% of the County Median Household Income as established by U.S. Department of Housing and Urban Development (HUD). As of the date of this Regulatory Agreement, the maximum income of the tenant shall not exceed the following:

   
   

Household Size

 

Median Income

 
           
   

1

 

66,500

   
   

2

 

76,000

   
   

3

 

85,500

   
   

4

 

95,000

   
   

5

 

102,600

   
   

6

 

110,200

   
   

7

 

117,800

   
           
 

These income amounts will be revised as reflected by law. For purposes of satisfying the very low, low or moderate income tenant occupancy requirements set forth above, a unit occupied by a person or family, who at the commencement of their occupancy qualified as a very low, low or moderate income tenant, shall be treated as occupied by a very low, low or moderate income tenant until said tenant vacates the unit. All subsequent tenants must meet the moderate income guidelines at commencement of occupancy.

   
 

The Owner shall accept as tenants on the same basis as all other prospective tenants, very low, low or moderate income tenants who are recipients of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937 or its successor, and shall not apply selection criteria to Section 8 certificate holders that are more burdensome than the criteria applied to all other prospective tenants.

   
 

Each lease pertaining to an affordable unit shall contain a provision to the effect that the Owner has relied on the income certification and supporting information supplied by the tenant in determining qualification for occupancy of the affordable unit, and that any material misstatement in such certification (whether or not intentional) will be cause for immediate termination of such lease. Except for the affordable rent to be paid by a very low, low or moderate income tenant, the Owner shall not collect any additional fees or payments from a low income tenant or very low income tenant except security deposits or other deposits or fees required of all similarly situated tenants.

   

E.

Income Certification

   
 

The Owner will obtain, complete, and maintain on file income certifications and verifications from each very low, low or moderate tenant, obtained immediately prior to the initial occupancy of the restricted unit.

   
 

A copy of each such income certification obtained prior to initial occupancy shall be filed with the County prior to occupancy by the tenant whenever possible but in no event more than seven days after initial occupancy by the tenant.

   
 

The Owner shall make a good faith effort to verify that the income provided by an applicant in an income certification is accurate by taking one or more of the following steps as part of the verification process: (1) obtain a pay stub for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) conduct a credit check or similar search, (4) obtain an income verification form from the applicant’s current employer, (5) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (6) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. Copies of said verifications shall be made available to County upon demand.

   

F.

Covenants to Run with the Land

   
 

The Owner hereby subjects the development (including the development site) to the covenants, reservations, and restrictions set forth in the Regulatory Agreement. The County and the Owner hereby declare their express intent that the covenants, reservations, and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s successors in title to the development. Each and every contract, deed, or other instrument hereafter executed covering or conveying the development or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument.

   

G.

Enforcement

   
 

If the Owner defaults in the performance of observance of any covenants, agreement or obligation of the Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of 30 days after notice thereof shall have been given by the County, then the County shall declare an “Event of Default” to have occurred hereunder, and, at its option, may take any one or more of the following steps:

   
 

1.

By injunction or other suit, action or proceeding at law or in equity, require the Owner to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of the rights of the County hereunder.

     
 

2.

Have access to and inspect, examine and make copies of all of the books and records of the Owner pertaining to the development.

     
 

3.

Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants and agreements of the Owner hereunder.

     

H.

Recording and Filing

   
 

This Regulatory Agreement shall be recorded and filed in the real property records of the County of San Mateo, California. The Owner shall pay all fees and charges incurred in connection with any such recording. A copy of this recording shall be submitted to the County Planning Division for filing with the Planning file.

   

I.

Project Representation

   
 

The County and Owner hereby designate the following agents to act as project representatives in the matters dealing with the performance of work under this Agreement:

   
 

COUNTY:

Community Development Director

Planning and Building Division

455 County Center, 2nd Floor

Redwood City, CA 94063

650/363-4161

     
 

OWNER:

James Spilker, Jr., and

Anna Marie Spilker

85 Roan Place

Woodside, CA 94062

650/851-2822

     

J.

Interest of Public Officials

   
 

No members, officers, or employees or agents of San Mateo County, no member of the Board of Supervisors, and no other public official who exercises any function or responsibility with respect to this program during his/her tenure, or for one year thereafter, shall have any interest, direct or indirect, in this Agreement or a related subcontract, or the proceeds thereof. Owner shall incorporate in all subcontracts hereunder a provision prohibiting such interest.

   

K.

Compliance with County Affirmative Action Plan

   
 

Owner shall not discriminate based on age (over 40), ancestry, creed, color, disability, marital status, medical condition (cancer related), national origin, political or religious affiliation, race, sex, sexual orientation, or union membership.

   

L.

Hold Harmless

   
 

The Owner shall indemnify and save harmless the County, it officers, agents, employees and servants from all claims, suits or actions of every name, kind and description, brought for, or on account of, injuries to or death of any person, including Owner, or damage to property of any kind whatsoever and to whomsoever belonging, including but not limited to, the concurrent active or passive negligence of the County, officers, agents, or employees and servants, resulting from the performance of any work required by this Agreement of Owner, provided that this shall not apply to injuries or damage for which County has been found in a court of competent jurisdiction to be solely liable by reason of its own negligence or willful misconduct.

   
 

The duty of the Owner to indemnify and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code.

   

M.

Merger Clause

   
 

The document constitutes the sole agreement of the parties hereto relating to said project and correctly states the rights, duties, and obligations of each party as of the document’s date. Any prior agreement, promises, negotiations, or representations between the parties not expressly stated in this document are not binding. All subsequent modifications shall be in writing.

   

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

 
 

COUNTY OF SAN MATEO

   
   
   
   
 

By:

 
   

Jerry Hill

   

President, Board of Supervisors

   

San Mateo County

     
 

Date:

 
     

ATTEST:

 
 
 

By:

   
 

Clerk of the Board

 
     
   
 

OWNER

   
   
 

By:

 
   

James Spilker, Jr.

     
 

Date:

 
     
     
     
     
 

By:

 
   

Anna Marie Spilker

     
 

Date:

 
     
     
     

PROPERTY DESCRIPTION

 
 
 

The land herein referred to is situated in the State of California, County of San Mateo, and is described in Exhibit “A.”