HOUSING INCENTIVES MEMORANDUM WITH HOUSING & COMMUNITY
DEVELOPMENT
AFFORDABLE FOR-SALE HOUSING DEVELOPMENT
Date of this Agreement: July 02, 2024
Developer Name: Meritage Homes
Property Owner Address: 5 Peters Canyon Rd., Ste. #310, Irvine, CA 92606 Project Address: 275 and 375 Santa Ana Street, Anaheim, CA 92805 Name of Property: The Mill
Number of Units: Total units 56 Affordable units 6 Moderate Income (10%) Type of Development: Single Family Detached Condominiums/Townhomes X Affordable Program: Housing Incentives X
The City of Anaheim may grant a density bonus and/or other incentives (collectively referred to as "Housing Incentives") for an Affordable For-sale Housing Development, pursuant to Chapter 4, Section 65915 of the California Government Code and Title 18, Chapter 18.52 of the Anaheim Municipal Code and the State Density Bonus Law, Government Code Section 65915, et seq, as may be amended from time to time (together, "DBL"). Upon the approval of a Density Bonus, the City of Anaheim, through its Housing and Community Development Department, shall first enter into this Housing Incentives Memorandum ("Memorandum") with the above-stated developer and/or Owner ( herein referred to as 'Developer") of the subject Property and thereafter, a Housing Incentives Agreement with the Developer of the Affordable For-sale Housing Development pursuant to the requirements of AMC Chapter 18.52 and the State DBL.
This Housing Incentives Memorandum, executed by and between Developer and the Anaheim Housing and Community Development Department, serves to acknowledge and set forth the basic terms that will be included in the Housing Incentives Agreement and shall be submitted by Developer to both the Planning Department and Housing and Community Development Department concurrent with Developer's application for a land use entitlement, including a Density Bonus.
Prior to final map approval, or where a map is not being processed, prior to the issuance of any grading and building permits for an Affordable For-sale Housing Development, Developer shall execute and cause to be recorded against the Property the Housing Incentives Agreement, and if required by the Housing Incentives Agreement, a declaration of covenants, conditions and restrictions ("CC&R's") that sets forth the terms and conditions of approval of said Housing Incentives. The Housing Incentives Agreement/CC&R's shall be binding on the Developer and all future owners and successors-in-interest of the Property, and shall be and remain a senior, non-subordinate encumbrance against the subject Property.
Developer acknowledges that the Housing Incentives Agreement/CC&R's will include, but not be limited to, the following terms and conditions:
1. That six (6) of the total 56 housing units (10%) shall be Affordable Housing Units.
Affordable Housing Units shall consist of any unit for which an initial sale:
a) is made to a Moderate-Income Household
b) at an Affordable Housing Cost,
Meritage Homes
The Affordable Housing Units shall have price restrictions as follows: three (3) two- bedroom Units shall be sold at prices consistent with Affordable Housing Cost calculations for Moderate Income Households, as noted below; three (3) three- bedroom Units shall be sold at prices consistent with Affordable Housing Cost calculations for Moderate Income Households, as noted below.
Household income limits for Moderate Income Households (80.01%-120.00% of the area median income for Orange County, adjusted for appropriate household size) are as established by the California Department of Housing and Community Development (HCD).
The Affordable Housing Cost for Moderate Income Households shall be calculated as the product of 35% times 110% of the area median income for Orange County adjusted for the appropriate household size (Health & Safety Code Section 50052.5(b)(4)).
Household size appropriate to the unit is the number of bedrooms plus one as derived from the standards of California Redevelopment Law.
Qualification of prospective Moderate-Income Households shall be based on actual household income limits.
2. That the affordable units shall be constructed concurrently with other units unless both the City and the applicant agree within the Housing Incentives Agreement to an alternative schedule for development.
3. That the affordable units shall be interspersed throughout the Affordable For-sale Housing Development, as denoted on the attached Affordable Housing Unit Allocation Plan.
4. That the term of affordability shall be for a minimum period as required by a construction or mortgage financing assistance program, mortgage insurance program, or law.
5. That the Occupancy of each unit in the Affordable For-sale Housing Development shall not exceed two (2) persons per bedroom plus one (1) person.
6. That Anaheim Housing and Community Development Department shall be afforded a first right of refusal in referring eligible buyers to affordable units:
a) Moderate-income Households have been displaced from their residences due to programs or projects implemented by the Anaheim Housing and Community Development Department;
b) Moderate-income Households, who have applied for and received homebuyer (financial) assistance from the Anaheim Housing and Community Development Department;
c) Moderate-income Households, if applicable, who are listed on the Anaheim Housing and Community Development interest list for affordable housing and who live and/or work in Anaheim; and
d) Moderate-Income Households, who live and/or work in Anaheim.
7. That the owner of the Affordable For-Sale Housing Development agrees to comply with all reporting requirements under the Affordable Housing Development Program.
Meritage Homes
8. That the Housing Incentives Agreement shall include the requirement for an equity sharing agreement, whereby the initial buyer of each of the Density Bonus units shall enter into an agreement with the City requiring each such initial buyer to pay to the City upon the initial resale of each Density Bonus unit the City's proportional share of appreciation.
By signing and returning this Housing Incentives Memorandum with Housing and Community Development, as the Developer and Owner of the Affordable For-Sale Housing Development, I concur and agree to all of the terms and conditions set forth above and agree to execute a Housing Incentives Agreement.
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eritage Homes Date
R eiptA know ged:
By: AF 24dt
An.yN9.I Date
Housing Community Development
Deputy ector