RESOLUTION NO. 2026-090
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA APPROVING, PURSUANT TO A CATEGORICAL EXEMPTION IN ACCORDANCE WITH CEQA GUIDELINES SECTION 15332, AN AFFORDABLE HOUSING DENSITY BONUS AGREEMENT TOGETHER WITH RELATED COVENANTS, CONDITIONS & RESTRICTIONS PROVIDING FOR A MINIMUM OF TWO AFFORDABLE UNITS PER THE STATE DENSITY BONUS LAW, ON APPROXIMATELY 3.75 ACRES LOCATED AT 7844 ALDER AVENUE IDENTIFIED AS ASSESSOR PARCEL NUMBERS 0190-301-12, -21, -37, -40, -41, AND -42.
WHEREAS, 7844 Alder Avenue, also identified as Assessor Parcel Numbers (“APNs”) 0190-301-12, -21, -37, -40, and -42 (“Project Site”), was annexed from San Bernardino County into the City of Fontana on June 21, 1952; and WHEREAS, the current City of Fontana General Plan (“General Plan”) was adopted by the Fontana City Council (“City Council”) on November 13, 2018; and WHEREAS, on September 9, 2025, the City of Fontana (“City”) received an application from MC RE Holdings, LLC (“Applicant”) for a Tentative Tract Map No. 25-0007 (TTM No. 20852)”) to subdivide approximately 3.75 acres into 26 residential parcels, a Design Review (“DRP No. 25-0029”), and an SB 330 application seeking approval to construct 26 detached residential units at the Project Site ( “Project”); and WHEREAS, at a duly noticed public hearing on July 21, 2026, the Fontana Planning Commission (Planning Commission) adopted Resolution No. 2026-024 to approve Master Case No. 25-0064, which included Tentative Tract Map 25-0007 (TTM No. 20852) and DRP No. 25-0029 to subdivide 3.75 acres into twenty-six (26) twenty-six (26) parcels and two (2) lettered lots for a new residential development and a request for site and architectural approval for construction of 26-detached residential units and associated site improvements and recommended approval to the City Council for an Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions for two (2) units restricted to very low-income households; and WHEREAS, the Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions has been prepared and attached hereto as Exhibit “A”; and WHEREAS, the Applicant is utilizing the State Density Bonus Law (California Government Code Sections 65915 – 65918) which allows a density bonus for certain projects with the provision of affordable units; and WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”), the project is categorically from CEQA exempt pursuant to Section 15332 (Class 32, Infill Development) and Section No. 3.22 of the 2019 Local Guidelines for Implementing the California Environmental Quality Act; and a Notice of Exemption has been prepared for this project; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fontana, California, as follows:
Section 1. Recitals. The recitals are true, correct and incorporated herein by this reference.
Section 2. Compliance with California Environmental Quality Act. This Agreement and associated development project are categorically exempt from the CEQA pursuant to CEQA Guidelines Section No. 15332 (Infill Development) of the California Environmental Quality Act and Section No. 3.22 (Categorical Exemption) of the 2019 Local Guidelines for Implementing the CEQA. City staff is directed to file a Notice of Exemption.
Section 3. The City Council hereby makes the following findings for the density bonus pursuant to Divisions 4 and 25 of the City of Fontana Zoning and Development Code (ZDC):
Finding No. 1: As required by state law, the City shall grant a density bonus in accordance with Government Code §§ 65915 through 65918.
Finding of Fact: The Applicant has requested a density bonus to allow for seven (7) additional units for a total unit count of twenty-six (26) units, with two (2) units restricted to very low-income households, which qualifies the Project for a density bonus. The Applicant’s request is in accordance with Government Code §§ 65915 through 65918.
Finding No. 2: As required by state law, the City shall grant an incentive or concession in accordance with Government Code §§ 65915 through 65918, unless the City makes any of the findings in Government Code §65915(d)(1)(A) through (C).
Finding of Fact: The Applicant included the following incentives/concessions which were approved in conjunction with the project: allowance of vinyl fencing in place of block walls between the lots, and provision of tandem garages in combination with side-by side garage parking rather than side-by-side garage parking. Project waivers approved as part of the project included reduction of minimum lot size, average lot size, lot width, lot depth, lot coverage, front setbacks, side setbacks, rear setbacks, setback variations, landscaping percentages, landscape, mechanical equipment screening, and patio setbacks.
Finding No. 3: The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval.
Finding of Fact: The incentives, concessions and waivers granted to the Applicant do not require a general plan amendment, zoning change, or other discretionary approval.
Finding No. 4: This division does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the City or the waiver of fees or dedication requirements.
Finding of Fact: The project does not limit or require the provision of direct financial incentives for the housing development by the City or the waiver of fees or dedication requirements.
Section 4. The City Council hereby finds that the Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions is compliant with the State Density Bonus Law and the City’s Density Bonus Ordinance under Division 25 of Article II of the Fontana Zoning and Development Code.
Section 6. Based on the foregoing, the City Council hereby grants the density bonus pursuant to Divisions 4 and 25 of the Fontana Zoning and Development Code and approves the Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions attached hereto as Exhibit “A” and incorporated herein by this reference, subject to the complete execution and recording of the Subordination Agreement attached hereto as Exhibit "B" and incorporated herein by this reference.
Section 7. Resolution Regarding Custodian of Record. The documents and materials that constitute the record of proceedings on which this Resolution has been based are located at the Planning Department, 8353 Sierra Avenue, Fontana, CA 92335. This information is provided in compliance with Public Resources Code section 21081.6.
Section 8. Certification. The City Clerk of the City Council shall certify the adoption of this Resolution.
Section 9. Effective Date. This Resolution shall take effect immediately.
Section 10. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application.
APPROVED AND ADOPTED this 13th day of October 2026.
READ AND APPROVED AS TO LEGAL FORM:
_______________________________
City Attorney
I, Germaine Key, City Clerk of the City of Fontana and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City of Fontana at a regular meeting thereof, held on the 13thday of October 2026, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
City Clerk of the City of Fontana
_______________________________
Mayor of the City of Fontana
ATTEST:
_______________________________
City Clerk
Exhibit “A”
CITY OF FONTANA AFFORDABLE HOUSING AGREEMENT
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Fontana
Office of the City Clerk
8353 Sierra Avenue
Fontana, CA 92335
Attn: Germaine Key, City Clerk ______________________________________________________________________________ This document is exempt from the payment
of a recording fee pursuant to Government
Code Sections 27383 and 6103
APN: 0190-301-12, -21, -37, -40, -41, -42
Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions 7844 Alder Avenue Fontana, California
Master Case No. 25-0064 / Tentative Tract Map 20852 (TTM No. 25-0007) / Design Review Project No. 25-0029
[PURSUANT TO DIVISION 25 OF FONTANA MUNICIPAL CODE]
This Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions (the "Agreement'') is entered into as of this _____ day of ____________, 2026 by and between the CITY OF FONTANA, a California municipal corporation (“City”), and MV RE Holdings LLC, a California limited liability company (“Owner”) as follows:
RECITALS
Owner is the owner of certain real property located within the City of Fontana, County of San Bernardino, State of California, commonly known as 7844 Alder Avenue in Fontana, California (the “Property”). Property is legally described in Exhibit “A” attached hereto and incorporated herein by reference; and Division 25 of the Fontana Municipal Code (the “Density Bonus Division”) provides a density bonus and other incentives to multifamily residential and mixed-use development projects of five (5) or more units that require a share of all newly constructed dwelling units be developed, offered to and sold or rented to very low, low or moderate income households at an affordable housing cost; and On July 21, 2026 the City of Fontana (“City”), a public body corporate and politic, by and through its Planning Commission, approved Master Case No. 25-0064 / Tentative Tract Map 20852 (TTM No. 25-0007) and Design Review Project No. 25-0029 (collectively, the “Permit”) and issued Conditions of Approval (“Conditions”); and Subject to compliance with the Conditions, the Permit approves the construction of a residential project with twenty-six (26) residential units on the Property (“Residential Development”), comprised of a base density of nineteen (19) residential units and a density bonus of seven (7) residential units; and Pursuant to the Density Bonus Division, two (2) of the residential units in the Residential Development are required to be restricted for rent to eligible Very Low-Income Households at Affordable Housing Cost (the “Affordable Units”); and Pursuant to Section 30-342 of the Density Bonus Division, and in compliance with the Conditions, Owner and City desire to enter into this Agreement regarding the construction, operation, maintenance and rental of a specified number of housing units in the Residential Development exclusively to Income-Eligible Households at an Affordable Housing Cost.
NOW, THEREFORE, in consideration of the mutual covenants and provisions contained herein, City and Owner (collectively, the "Parties") agree as follows:
AGREEMENT
Recitals. The Recitals set forth above are true and accurate, and incorporated herein.
Division 25 – Density Bonus. Chapter 30, Article II, Division 25 of the Fontana Municipal Code are incorporated into this Agreement.
Definitions. All defined terms, as indicated by initial capitalization, shall have the meanings set forth this Agreement, as follows:
“Adjusted for Household Size Appropriate for the Unit” means a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. "Affordable Rent" means a gross monthly rent that does not exceed thirty (30) percent of fifty (50) percent of the San Bernardino County Area Median Income, Adjusted for Household Size Appropriate for the Unit. The Affordable Housing Cost shall comply with the requirements of California Health and Safety Code Section 50053 and limits published by the California Department of Housing and Community Development. “Affordable Unit” means a dwelling unit that will be offered exclusively to an Income Eligible Household at an Affordable Housing Cost or Affordable Rent pursuant to this Agreement. “Area Median Income” or “AMI” means the median income for San Bernardino County, as Adjusted for Household Size and as defined, and periodically adjusted and published by the State of California Department of Housing and Community Development pursuant to HSC section 50093(c) and if such agency is no longer publishing such information, then such successor publication as determined by City. “Division 25” means Chapter 30, Article II, Division 25 of the Fontana Municipal Code, as it currently exists on the date this Agreement is executed. “Director” means City’s Housing Manager, or his or her designee. “HCD” means the State of California Department of Housing and Community Development, or its successor. “Income Eligible Household” shall mean a Very Low-Income Household. “Market Rate Units” means those dwelling units in the Residential Development on the Property that are not Affordable Units. “Marketing Plan” shall have the meaning defined in Section 7. “Owner” means the person or entity defined as “Owner” in the introductory paragraph of this Agreement, and includes all successors and assigns of that person or entity. “Property” shall have the meaning defined in Recital “A”. “Residential Development” means the 26 residential units developed on the Property. “Selection Procedures” shall have the meaning defined in Section 7. “Utility Allowance” means an amount designated and updated annually by the Housing Authority of the County of San Bernardino as a reasonable estimate of the cost of utilities for an Income Eligible Household. The Utility Allowances in effect as of the date of this Agreement are set forth in Exhibit “E” to this Agreement. In recognition of energy efficiency measures included in the Affordable Units, Owner shall have the option to commission an energy audit and projection of utility costs (“Utility Cost Analysis”) from an independent third-party energy consultant jointly selected by Owner and City, and to use the results of this Utility Cost Analysis as the basis to determine this “Utility Allowance”. “Very Low Income Households” has the meaning defined in Section 50105 of the California Health and Safety Code, and generally includes households whose gross income is equal to fifty (50) percent or less of the Area Median Income for San Bernardino County.
Affordable Units.
Owner hereby agrees that the following two (2) units in the Residential Development shall be designated as the Affordable Units:
Lot
Address
Income Level
# Bedrooms
17 TBD
Very Low
Three (3) bedrooms
8 TBD
Very Low
Four (4) bedrooms
The location of Affordable Units is depicted on Exhibit “B” attached hereto and incorporated herein by this reference. The location of the Affordable Units shall not be changed without the prior written approval of the Director.
The construction of the Affordable Units shall comply with the Permit, the Conditions, and the requirements set forth in Exhibit "B' attached hereto and incorporated herein by reference.
The quality of materials, included features and amenities offered provided to the Affordable Units shall be comparable to the Market Rate Units.
The Affordable Units shall be completed and ready for occupancy before the base density for the Property is exceeded. Developer acknowledges and agrees that the City shall not be required to issue a certificate of occupancy (or its equivalent) for more than nineteen (19) total units unless and until the Affordable Units are completed and obtain certificate of occupancy (or its equivalent).
Prior to issuance of a certificate of occupancy (or its equivalent) for the Residential Development, the Parties shall execute an amendment to this Agreement or other appropriate instrument that ensures that the requirements of this Agreement are properly recorded against each Affordable Unit and memorializes Owner's obligation to provide the Affordable Units on a rental or for-sale basis, as further set forth in Section 6, below.
Term. This Agreement shall begin on the date it is fully executed by City and Owner and shall expire fifty-five (55) years from issuance of a certificate of occupancy (or equivalent) for the Affordable Units.
Affordability Covenants: Income Limits, Calculation of Affordable Sales Price and Affordable Rents.
The parties agree that the affordability covenants set forth in this Agreement shall comply with and are subject to California Government Section 65915. During the Term of this Agreement, the Affordable Units shall be rented to Very Low Income Households in accordance with this Section 6. The Parties acknowledge and agree that Owner is permitted to sell, transfer, or assign full or partial ownership of all of the Affordable Units, in conjunction with a bulk sale, transfer, or assignment of full or partial ownership of all of the Market Rate Units, to a third-party other than Owner, provided that Owner’s successor is bound by the terms of this Agreement through a written assignment and assumption agreement, as required by Section 21(c), below.
Income Eligibility. The applicable income limits for Income Eligible Households, adjusted for household size, are published annually by HCD. Current income limits for 2025 are shown in Exhibit “C”. Owner shall have the sole obligation to obtain from HCD’s website the applicable income limits.
Affordable Rental Covenant. The Affordable Units shall be rented to Income Eligible Households for an Affordable Rent. Owner shall calculate rents for Affordable Units as defined in Exhibit “D” and provide written notice to the City at least sixty (60) days’ prior to imposing any rent increase. In no case shall Affordable Rent exceed the amount allowable by California Health and Safety Code 50053(b)(1) and related HCD regulations.
ANY RENTAL OR SALE OF AN AFFORDABLE UNIT IN VIOLATION OF THIS AGREEMENT OR THE REQUIREMENTS OF CALIFORNIA GOVERNMENT CODE SECTION 65915 IS VOID AND SHALL BE SUBJECT TO ALL RIGHTS AND REMEDIES PROVIDED FOR IN THIS AGREEMENT OR AVAILABLE AT LAW OR EQUITY.
Marketing Plan and Tenant Selection Procedures for Affordable Units. Prior to the commencement of marketing of the Market Rate Units, Owner shall prepare and submit to the Director for the City's Housing Department, or other designee of the City Manager, a plan and procedures for marketing activities (“Marketing Plan”), application processing, and selection of eligible households for the Affordable Units (“Selection Procedures”). The Marketing Plan and Selection Procedures shall comply with the following minimum requirements:
Owner shall post the availability of the Affordable Units online at the City’s Housing Department page and at any other affiliated, City-maintained sites requested by City.
Owner shall publish notices of the availability of Affordable Units in newspapers circulated widely in the City of Fontana, including newspapers that reach minority communities. At least one notice shall be published in a Spanish language newspaper of general circulation.
Owner shall notify City in writing of the availability of the Affordable Units at least thirty (30) days prior to the desired start date of the marketing period.
Owner shall maintain an on-line sign-up list for prospective applicants to register interest in Affordable Units and will publicize a deadline for accepting applications.
At least seven (7) days prior to the application deadline, Owner will create a randomized list of prospective applicants and reach out to prospective applicants in the order of the randomized list to request additional application information in support of eligibility review Upon completion of eligibility review by Owner, Owner will provide City a list of eligible applicants prioritized in the order of the randomized list. City shall review, comment, approve or disapprove applicants within ten (10) business days of receipt.
City Referrals. City may refer to Owner person(s) or households who meet the eligibility requirements set forth in this Agreement. Owner agrees to accept and consider City referrals for Affordable Units whose applications are submitted by City to Owner, so long as such applications are from bona-fide Income Eligible Households In the event that a City referral is rejected, Owner shall deliver to City written notice stating the reasons therefor within five (5) days following receipt by Owner of the application.
Ineligible Occupants of Affordable Units. The following individuals, by virtue of their position or relationship, are ineligible to rent or purchase an Affordable Unit:
All employees and officials of the City or its agencies, authorities, or commission who have, by virtue of their position, policy-making authority or influence over the implementation of the affordable housing program, as well as the immediate relatives of such employees or officials, including spouse, children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister in-law and brother-in-law.
Owner or any principal, employee, affiliate, or agent of Owner, and the immediate relatives of any member, employee, or principal of Owner, or any Owner successors and assignees, including spouse, children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister in-law and brother-in-law.
Income Qualification & On-going Monitoring; Occupants of Affordable Units Owner shall take reasonable steps to certify the income level of prospective occupants of an Affordable Unit, at the time of the initial application. Furthermore, the households (or tenants) shall annually recertify income during the duration of occupying the Affordable Unit. Owner may request an income certification from the proposed occupant of the Affordable Unit and provide proof of income verification in the following methods, as applicable:
Paystubs for the preceding 3-month period from date of application; Federal income tax return for the most recent tax year; Income and job address verification from the applicant’s employer; Other forms of income verification (e.g., certification from the Social Security Administration); and Alternative form of income verification, subject to approval by the Housing Director.
Owner shall apply the same terms and conditions to applicants for Affordable Units as are applied to all other applicants, except as otherwise required to comply with this Agreement (i.e., rent levels, occupancy restrictions and income requirements) and/or government subsidy programs. Discrimination based on subsidies received by the prospective tenant is prohibited.
Owner shall audit occupants of Affordable Units annually thereafter, as follows:
Tenants of Affordable Units shall provide income verification documentation similar to that listed in subsection (a) above, and proof of occupancy (i.e., copy of utility statement, car registration; tax filing); and, Owners of Affordable Units shall provide proof of occupancy (i.e., copy of utility statement, car registration; tax filing).
Changes in Household Income; Occupants of Affordable Units.
In the case of a rental of an Affordable Unit, if the income of a tenant occupying an Affordable Unit decreases below the category for which the tenant originally qualified, the tenant shall continue to have the right to reside in the Affordable Unit, provided the tenant pays the rent and performs his/her other obligations to Owner.
If after moving into an Affordable Unit, and during the annual audit of tenant’s income, it is determined that the tenant’s income exceeds the income limit for that unit, the tenant may remain in the unit as long as the tenant’s income does not exceed eighty (80) percent of Area Median Income adjusted for household size. In that event, the applicable rent for the Affordable Unit shall be increased to thirty (30) percent of their audited gross household income, less an Utility Allowance.
If after moving into an Affordable Unit the tenant’s income eventually exceeds eighty (80) percent of Area Median Income adjusted for household size, the tenant shall be given one year’s notice to vacate the unit. If, during the one-year notice period, the tenant's income changes to qualify as an Income Eligible Household, the notice of termination shall be rescinded.
So long as the Owner complies with the procedures set forth in this section, Owner shall not be in violation of this Agreement due to a tenant’s income eventually exceeding the income limit for the Affordable Unit occupied by that tenant.
This section shall not apply if the Affordable Units are sold to Income Eligible Households pursuant to Section 6(b) of this Agreement.
No Sublease. No Affordable Unit may be sublet without the written permission of both Owner and City. The City shall not grant permission to lease, rent, or sublet the unit if the prospective occupant is determined to not be an Income Eligible Household.
Lease Agreement. Any lease agreement between Owner or its agent and the tenant of any Affordable Unit must include a copy of this Agreement. A fully executed copy of each lease agreement for an Affordable Unit shall be delivered to City within ten (10) days after the date of its execution. Lease agreements shall be for a minimum of 12 months, and tenants shall provide annual income re-verification as requested by Owner or City.
City’s Right to Inspect Units and Documents. The City may inspect the Affordable Units (subject to the tenant’s privacy rights) and any documents or records relating thereto, at any reasonable time to determine Owner’s compliance with this Agreement.
Maintenance of Affordable Units. Owner shall (a) maintain and operate all Affordable Units so as to provide decent, safe and sanitary housing consistent with federal housing quality standards; (b) make any required repairs or provide any required cleanup and (c) provide the Affordable Units with the same levels of services and maintenance as are provided to the other dwelling units on the Property.
Administration Fee. Owner agrees to pay such fees and deposits as the City Council may adopt by resolution over time pursuant to Section 30-342 of Chapter 30, Article II, Division 25 to offset the administrative cost of performing the duties and responsibilities described in this Agreement.
Incentives, Concessions and Waivers. This Agreement is made in connection with the Residential Development receiving incentives, concessions, and waivers pursuant to the Conditions approved by the City's Planning Commission. In the event of a breach of the obligations hereunder, Owner agrees and acknowledges that such breach constitutes a violation of the Conditions and may entitle the City to legal or equitable remedies.
Federal and State Laws. Notwithstanding the above provisions, nothing contained herein shall require Owner or City to do anything contrary to or refrain from doing anything required by Federal and State laws and regulations promulgated thereunder applicable to the construction, management, maintenance, and rental of low and moderate-income housing units in the City of Fontana.
Prohibition Against Discrimination. Owner shall not discriminate against any tenant or potential tenant on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the above-mentioned reasons.
Indemnification. Owner shall defend, indemnify and hold harmless the City of Fontana and its officers, agents, employees, representatives, and volunteers (individually an “Indemnified Party” and collectively, “Indemnified Parties”) from and against any loss, liability, claim or judgment arising from or relating in any manner to this Agreement. Owner shall not be required to indemnify and hold harmless an Indemnified Party for liability attributable to the willful misconduct or gross negligence of the Indemnified Party, provided such willful misconduct or gross negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where an Indemnified Party is shown to have engaged in willful misconduct or been grossly negligent and where the Indemnified Party’s willful misconduct or gross negligence accounts for only a percentage of the liability involved, the obligation of Owner will be for that entire portion or percentage of liability not attributable to the willful misconduct or gross negligence of the Indemnified Party. In such an instance, the Indemnified Party will be obligated to reimburse Owner for any and all expenses incurred prior to the agreement of the parties or determination by a court of competent jurisdiction.
Recording; Successors and Assigns; Bulk Sale, Transfer or Assignment of Affordable Units.
This Agreement shall be recorded in the Official Records for San Bernardino (the "Official Records") against the Property prior to recordation of a final map or, if no final map, prior to issuance of a building permit, and shall only be subject to matters of public record that City agrees to in writing. Owner agrees that it shall obtain a preliminary title report or, if the City requests, a condition of title guarantee, at Owner's sole cost and expense, that reflects this Agreement is recorded in a priority satisfactory to the City. In the event any other instrument is recorded with priority over this Agreement, Owner agrees that the City may withhold a certificate of occupancy for the Residential Development until a subordination agreement satisfactory to the City is executed and recorded in the Official Records. Notwithstanding the foregoing, if (i) Owner obtains financing that would be conducive to the Project’s development or operation (“Project Financing”) and (ii) the lender of the Project Financing (the “Lender”) requests a subordination agreement then, within thirty (30) days’ written request from Owner, the City will execute a recordable subordination agreement on a form reasonably acceptable to the City which subordinates the City’s rights and privileges under this Agreement to the rights and privileges the Lender under the Project Financing loan documents provided that in no event shall such subordination violate state law, or interfere with the provisions or restrictions concerning the Affordable Units and their management.
This Agreement shall be binding upon and inure to the benefit of City and Owner, and their respective successors, owners and assigns. City reserves the right to designate another public agency to perform City’s obligations or to exercise City’s rights and options under this Agreement.
If Owner seeks to sell, transfer or assign the rights in the Residential Development, in full or in part, including any of the Affordable Units, or any rights and obligations in this Agreement, Owner and the proposed transferee shall execute and deliver to City an express written assignment and assumption agreement, with express assumption of Owner’s obligations under this Agreement. The proposed assignment and assumption agreement shall be provided to City with at least thirty (30) days to review and approve or disapprove, provided that the approval shall not be unreasonably withheld, conditioned or delayed.
The assignment and assumption agreement required by sub-paragraph (c) shall include a specific acknowledgment by the buyer, transferee or other assignee that the Affordable Units will be provided as rental units in accordance with the obligations set forth in this Agreement. Notwithstanding anything to the contrary herein, this section does not authorize the sale of the Affordable Units to individual homeowners, but only refers to a sale of the Property to an owner who will operate and lease the Affordable Units as rentals in accordance with this Agreement.
The fully executed assignment and assumption agreement shall be recorded in the Official Records of San Bernardino County concurrently with any deed or conveyance of the Affordable Units.
Any sale, transfer, or assignment made in violation of this Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments Burden to Run with Property. The covenants and conditions contained herein shall run with and burden the Property for the Term of the Agreement. Owner shall expressly make the conditions and covenants in this Agreement a part of any deed or other instrument conveying an interest in the Property.
Notices. All notices required herein shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt and shall be deemed to be effective on the date received or the date delivery was refused as indicated on the return receipt, as follows.
To Owner: MV RE HOLDINGS LLC
Attn: Steve Landis
5625 Land View Court
Rancho Cucamonga, CA 91737
To City: City of Fontana
Attn: Housing Manager
8353 Sierra Avenue
Fontana, CA 92335
The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section 23.
Governing Law. The laws of the State of California shall govern this Agreement. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of San Bernardino, State of California, in an appropriate municipal court in that County, or in the Federal District Court in the Central District of California.
Default. Failure or delay by either party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other party, constitutes a default under this Agreement; provided, however, that the defaulting party shall be given an additional reasonable amount of time (not to exceed ninety (90) days) to complete the cure if a cure cannot be completed with the thirty (30) day period. Notwithstanding the previous sentence, except in the instance of Owner's gross negligence or willful misconduct, if completion of the cure requires eviction of a tenant of an Affordable Unit, the ninety (90) day limit shall not apply, so long as Owner has commenced the unlawful detainer action within thirty (30) days after receipt of notice from the City, and Owner diligently prosecutes the unlawful detainer action to completion. The party who so fails or delays must immediately commence to cure, correct or remedy such failure or delay, and shall complete such cure, correction or remedy with due diligence. The injured party shall give written notice of default to the party in default specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not initiate proceedings against the party in default until thirty (30) days (or such additional time as may be authorized by this Section 25) after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default.
Non-Waiver. Failure to exercise any right City may have or be entitled to, in the event of default hereunder shall not constitute a waiver of such right or any other right in the event of a subsequent default.
Further Assurances and Recordation. Owner shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form and do such further acts as may be necessary, desirable or proper as City shall from time to time find necessary or appropriate to effectuate its purpose in entering this Agreement.
Entire Agreement. The text herein, consisting of twelve (12) pages and five (5) exhibits, constitutes the entire agreement between the parties. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statement or promise not contained in this Agreement shall not be valid or binding. This Agreement may be amended only by written instrument signed by both City and Owner. (signatures on next page)
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
CITY OF FONTANA, a municipal corporation
By: __________________________________
Matthew C. Ballantyne
City Manager
Dated: _________, 2026
APPROVED AS TO FORM: ATTEST:
By: ___________________________ By: ___________________________ Germaine Key Ruben Duran
City Clerk City Attorney
Dated: _________, 2026 Dated: _________, 2026
MV RE Holdings LLC, a California limited liability company By: __________________________________
Name: Steve Landis
Its: Manager
Dated: _________, 2026
Attachments:
Exhibit “A” – Legal Description
Exhibit “B” – Location of Affordable Units and Construction Requirements Exhibit “C” – Income Limits
Exhibit “D” – Calculation of Affordable Housing Cost
Exhibit “E” – Utility Allowances Schedule
EXHIBIT “A”
LEGAL DESCRIPTION OF REAL PROPERTY
For APN/Parcel ID(s): 0190-301-12, 0190-301-21, 0190-301-37, 0190-301-40, 0190-301-41 and 0190-301-42 EXHIBIT “B”
LOCATION OF AFFORDABLE UNITS AND CONSTRUCTION REQUIREMENTS The Affordable Units are identified in the table below. The Lot Number corresponds to the location of the dwelling units shown in the site plan which follows this page. Approved house plans and elevations for the Affordable Units are included in the following pages.
Lot
Address
Income Level
# Bedrooms
17 TBD
Very Low
Three (3) bedrooms
8 TBD
Very Low
Four (4) bedrooms
LOT 8 / PLAN 1
LOT 17 / PLAN 2
EXHIBIT “C” -- INCOME LIMITS
As of April 23, 2025
Visit https://www.hcd.ca.gov/grants-and-funding/income-limits/state-and-federal-income-rent-and-loan-value-limits and click on “Official State Income Limits” for the most current version of this document.
Note: Highlighted row indicate the income limit for an eligible very low income household, adjusted for household size. Other figures are only provided for reference to the HCD income limit table .
EXHIBIT “D” -- Calculation of Affordable Rents
“Affordable Rent” means a gross monthly rent that does not exceed thirty (30) percent of fifty (50) percent of the San Bernardino County Area Median Income, Adjusted for Household Size Appropriate for the Unit. The Affordable Housing Cost shall comply with the requirements of California Health and Safety Code Section 50053 and limits published by the California Department of Housing and Community Development. Affordable Rent shall be calculated as shown in the following example:
Note: Line “D” and Line “H” shall be updated based on values in effect at the time that Affordable Rent is set, and shall be verified and updated at the time of every lease signing.
If a tenant is a participant in a tenant-based rental assistance program, including the Housing Choice Voucher Program (“HCVP”), commonly known as Section 8, or other income-based rental subsidy program, contract rent limits applicable to such programs (e.g. HCVP payment standards) shall apply.
EXHIBIT “E”
UTILITY ALLOWANCE SCHEDULE (October 1, 2023)
Visit https://hacsb.com/current-landlord-information/
and click on “Utility Allowances” for the most current version of this document.
ATTACHMENT NO. 1
2 ATTACHMENT NO. 1
Exhibit A Page A-1
Exhibit B Page B-1
Exhibit C Page C-1
Exhibit D Page D-1
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Exhibit E Page E-1
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Resolution No. 2026-