Item 13 - Shaoul Levy Levy Rental Senior Housing Development Case No. 21-084/CUP/DBA and 21-094/CUP/DBA

Agenda Item No. 13

CITY OF YUCAIPA

AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer �7e Benjamin Matlock, Planning Manager/City Planne
Madeline Jordan, Assistant Planner
FOR: City Council Meeting of October 24, 2022
SUBJECT: Shaoul Levy —Levy Rental Senior Housing Development (Case Nos. 21- 084/CUP/DBA & 21-094/CUP/DBA): A Density Bonus Agreement to construct a sixty-two (62) unit rental Senior Citizen Housing Development across two (2) project sites approved as Case No. 21-084/CUP/DBA for a Conditional Use Permit and Density Bonus Agreement for the development of a thirty (30) unit age - restricted project for individuals who are 55 years or older located at APN: 0319- 121-24 and Case No. 21-094/CUP/DBA for a Conditional Use Permit and Density Bonus Agreement for the development of a thirty-two (32) unit, age -restricted housing project for individuals who are 55 years or older located at APN: 0319-012- 40 (collectively, the "Project").

RECOMMENDATION:

That the City Council approve the attached Density Bonus Agreements (DBAs) for Case Nos. 21- 084/CUP/DBA & 21-094/CUP/DBA.

BACKGROUND/DISCUSSION:

In order to qualify for a density bonus request consistent with state law, the applicant had submitted their density bonus request for a sixty-two (62) unit rental Senior Citizen Housing Development that is ultimately developed and operated across two (2) affiliated sites. As further discussed in each site site -specific DBA (attached), it should be noted that the operation of each site shall be contingent on occupancy and operation of the other affiliated site, as the development of both sites is necessary to provide a qualifying senior project consistent with state law, which combined is referred to as the Levy Rental Senior Housing "Project." These DBAs will set forth the reporting requirements and covenants that are necessary to ensure that the target senior units associated with the Project remain available as intended by the original density bonus request.

Division 3, Chapter 1, Article 7 of the City's Development Code contains provisions for processing density bonus projects, which are designed to provide incentives for the production of housing for very low-income, low-income, moderate -income, and senior households in accordance with State Law, by allowing additional units to offset the costs of providing affordable housing. Pursuant to the City's Development Code, a 100% increase in density is permitted for senior housing projects; however, before the Project is constructed, a formal Density Bonus Agreement (DBA) is required to be approved by the City Council. The concurrent filing of a DBA for each site -specific entitlement (Case No. 21-084/CUP/DBA & Case No. 21-094/CUP/DBA) is identified in the Conditions of Approval, and will set forth the reporting requirements and covenants that are necessary to ensure -152-

Shaoul Levy— Levy Rental Senior Housing Development (Case Nos. 21-084 & 21-094 DBA) City Council Meeting of October 24, 2022

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that the target units remain available as intended by the density bonus request submitted by the applicant.

At the regular City Council Meeting of October 22, 2018, the City Council provided preliminary approval of draft DBA template language, applicable forms, and their content to satisfy one of the permitting requirements of a density bonus application pursuant to Section 83.010735 of the City's Development Code. Two different draft agreements were presented: one agreement provided language specific to a traditional "for -rent" senior housing project, and one agreement provided language for a "for -sale" project. Both agreements were established to ensure that future projects maintain compliance with age restrictions to qualify as senior housing projects, and additionally to help streamline and expedite timelines for these future projects. The draft DBA for a "for -rent" senior housing Project was utilized to prepare the two (2) following site -specific DBAs (attached).

At the regular Planning Commission Meeting of March 2, 2022, the Planning Commission approved Case Nos. 21-084/CUP/DBA & 21-094/CUP/DBA. It should be noted that Case No. 21- 084/CUP/DBA, which is for the development of thirty (30) age -restricted senior housing units located at APN: 0319-121-24, also included, a Major Variance to permit a 43 percent reduction in the required parking, resulting in 34 spaces in lieu of 60 spaces, and finally a Minor Variance for the reduction of the rear yard setback along the southern property line to permit a setback of 14 feet in lieu of 15 feet.

Case No. 21-084/CUP/DBA will provide two-story modular duplex units buildings that share a connected wall, while Case No. 21-094 will provide two (2)-story modular duplex units, where one (1) unit is located on the ground floor, and the other is located above it as a second story unit. Each site -specific entitlement shall have units which provide a minimum of 900 square feet and two (2) bedrooms. Private unit amenities for all 62-units will include: air conditioning, oversized closets, and decorative doors that also have a deadbolt and peephole. Additionally, the two (2) affiliated sites will provide sidewalks, open space, and common area landscaping, including barbeque islands and shade structures for the residents who reside at either of the affiliated Senior Housing Project sites.

As noted in the staff reports and Conditions of Approval for the approved entitlements, the applicant would be required to record and execute DBAs for Case No. 21-084/CUP/DBA & Case No. 21- 094/CUP/DBA concurrently.

The DBAs include provisions to ensure that the Project qualifies as a Senior Housing Project consistent with state law, that the site -specific developments comply with age restrictions, and that they additionally both provide the appropriate multi -family site amenities and individual unit amenities pursuant to Section 88.0215 and Section 88.0210 of the City's Development Code across the two (2) affiliated sites. Now that the applicant has submitted construction plans to the Building and Safety Department for the site -specific entitlement, Case No. 21-084/CUP/DBA, this process is simply a ministerial action to meet the previously approved entitlement's Conditions of Approval for concurrent filing of the DBAs.

FISCAL IMPACT:

There is no fiscal impact to the City's General Fund as a result of this proposed action. -153-

Shaoul Levy— Levy Rental Senior Housing Development (Case Nos. 21-084 & 21-094 DBA) City Council Meeting of October 24, 2022

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Attachments: Case No. 21-084/CUP/DBA - Levy Affiliated Density Bonus Agreement (DBA) Case No. 21-084/CUP/DBA Approved Plans
Case No. 21-094/CUP/DBA - Levy Affiliated Density Bonus Agreement (DBA) Case No. 21-094/CUP/DBA Approved Plans
Approved by:
1,4 �4 1,Z14 6,�A
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RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:

City of Yucaipa
34272 Yucaipa Blvd.

Yucaipa, CA 92399
Attn: City Clerk
With a copy to:

ShaoulLevy
201 Wilshire Boulevard, 2❑d Floor
Santa Monica, CA 9040
APNs: 0319-121-24

SPACE ABOVE THIS LINE FOR RECORDER'S
USE
Exempt from Recording Fees Pursuant to Government Code Section 27383

DENSITY BONUS AGREEMENT
(SENIOR HOUSING; RENTAL PROJECT)
THIS DENSITY BONUS AGREEMENT ("Agreement") is dated as of October 24, 2022, and is entered into by and between E Street Yucaipa QOZB LLC, a California limited liability company (the "Developer"), and the CITY OF YUCAIPA, a California municipal corporation (the "City").

RECITALS
A. California Government Code Section 65915(b)(1)(C) provides that a city shall give a density bonus as described in Government Code Section 65915(f), upon application by a developer if the developer agrees to construct a senior citizen housing development, as defined in Section 51.3 of the California Civil Code, and that all cities shall adopt an ordinance that specifies how Section 65915 will be implemented.

B. The City has implemented California Government Code Section 65915(b)(1) and (f) by enacting Yucaipa Development Code Sections 83.010705 et seq. (in Division 3, Chapter 1, Article 7 of the Development Code), which, subject to certain limitations, contemplates a density bonus to encourage development of senior housing.

C. Developer has requested City to consider the approval of a density bonus agreement which will grant such a density bonus for Developer's development of the real property in the City described on Exhibit "A" ("Site").

D. The Developer proposes to construct a sixty-two (62) unit rental Senior Citizen Housing Development across two (2) project sites approved as Case No. 21-084/CUP/DBA for a Conditional Use Permit and Density Bonus Agreement for the development of a thirty (30) unit age -restricted project for individuals who are 55 years or older located at APN: 0319-121-24 and Case No. 21-094/CUP/DBA for a Conditional Use Permit and Density Bonus Agreement for the development of a thirty-two (32) unit, age - restricted housing project for individuals who are 55 years or older located at APN: 0319-012-40 (collectively, the "Project").
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AGREEMENT
NOW, THEREFORE, the parties hereto agree as follows:

Definitions. In this Agreement, the following terms shall have the following meaning:
a. "City" is the City of Yucaipa, California.
"Project" is the development described in Recital D above.

C. "Qualified Occupant" shall mean households consisting of a person who is fifty- five (55) years of age or older and any qualified permanent residents under the applicable provisions of California Civil Code Section 51.3 and the federal Fair Housing Act (except to the extent the Project utilizes federal funds whose programs have more stringent definitions for senior projects, in which case those definitions will apply).

2. Binding Effect of Agreement. The Developer hereby subjects the Site and development thereon to the covenants, reservations and restrictions as set forth in this Agreement in perpetuity. The City and the Developer hereby declare their specific intent that the covenants, reservations and restrictions as set forth herein shall be deemed covenants running with the land and shall encumber and "run with" the Site and be binding upon the Developer's successors and assigns and successor to any interest in the Project.

Each and every contract, deed or other instrument hereinafter executed, covering or conveying the development or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions expressed in this Agreement, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument.

3. Restrictions on Units; Qualified Occupant. Sixty-two (62) of the units in the Project (each, a "Senior Unit", and, collectively, the "Senior Units") shall be rented to and occupied by households which include at least one Qualified Occupant.

4. Term. The term of this Agreement shall continue until the later of. (i) the date that is 55 years after the first rental of a unit to a Qualified Occupant; or (ii) the date on which construction commences, in accordance with applicable law and permits, on a project that is not a senior rental housing project after the demolition or destruction of the Project.

5. No Conversion. During the term hereof, all residential units in the Project shall remain rental units. During the term hereof, no apartment unit in the Project shall be eligible for conversion from rental units to condominiums, townhomes or any other common interest subdivision without consent of the City Council.

6. On -site Manager. [INTENTIONALLY OMITTED]

7. Submission of Materials and Annual Review. Prior to occupancy of a Senior Unit, Developer shall submit to City its occupant selection procedures which shall detail the methods which Developer shall use to advertise the availability of Senior Units in the Project and screening mechanisms which Developer intends to use to limit the occupancy of the Senior Units to Qualified Occupants.

On or before [October 24] of each year following the first leasing of any Senior Unit, the Developer, or its representative, shall file a certificate of continuing program compliance with the City. Each such report shall contain such information as City may require including, but not limited to, the following:
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A project occupancy profile;
A description of the physical condition and maintenance procedures for the Project, including apartment units, landscaping, walkways and recreational areas.

C. The number of persons per unit;
d. Qualified Occupant name and address (unit);
Initial occupancy date;
£ Copies of all documents used by Developer to certify the occupant household as a Qualified Occupant.
g. Copies of the leases (rent may be redacted).

City shall be allowed to conduct physical inspections of the Project as it shall deem necessary, provided that said inspections do not unreasonably interfere with the normal operations of the Project and reasonable notice is provided. City shall repair any damage and shall defend, indemnify and hold Developer harmless from and against any claims, liabilities, damages, costs, or expenses incurred by Developer and caused by City's inspections and investigations.

Development Incentive(s). Pursuant to Government Code Section 65915(b)(1) and (f) and Yucaipa Municipal Code Section 83.010715(b)(4), the City grants Developer the following incentives for development of the Project: A 100% Density Bonus to allow a Project that provides 14.69 du/ac subject to the following:
a. Operation of the 30-unit age -restricted housing project (Case No. 21- 084/CUP/DBA) site located at APN: 0319-121-24, shall be contingent on occupancy and operation of the affiliated 32-unit age -restricted housing project (Case No. 21-094/CUP/DBA) site located at APN: 0319- 012-40;
b. The two (2) affiliated project entitlements (Case Nos. 21-084/CUP/DBA and 21- 094/CUP/DBA), shall expire on March 15, 2025, but may each qualify for a maximum of one (1) extension of time for a period not to exceed three (3) years;
C. Should one (1) of the affiliated project sites be constructed, and the other site remain undeveloped without an extension of time request appropriately filed and approved, then operation of the developed site shall cease, and all structures constructed pursuant to the award of a development incentive removed;
d. By March 15, 2028, should either or both of the affiliated project sites be out of compliance with State Law requirements for a Senior Citizen Housing Development, the Project, in its then existing condition, shall be discontinued, operation of the sites shall cease, and a new entitlement application shall be submitted for a rental Senior Citizen Housing Development consistent with Density Bonus Procedures.
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9. Project Design Amenities for Senior Citizens. The Project open space, buildings and individual units shall be designed with physical amenities catering to the needs and desires of the senior citizen residents. The following physical amenities shall be included in the Project:
a. Senior Unit sizes shall be a minimum of 900 square feet and provide two (2) bedrooms;
b. All common access areas in the Project such as entryways, walkways, and hallways shall be wide enough to accommodate wheelchairs; C. The Project shall meet all applicable current requirements for access and design imposed by law as administered by the City building and safety department, including, but not limited to, the Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), the Americans with Disabilities Act (42 U.S.C. Sec. 12101 et seq.), and the regulations promulgated at Title 24 of the California Code of Regulations that relate to access for persons with disabilities or handicaps;
d. The Project shall be designed and constructed to encourage social contact by providing sidewalks to connect the units to the proposed landscaped amenities. Common open space area will also be provided by a recreation area with a barbeque island and shade structures. e. The Project provides a Major Variance to permit a 43 percent reduction in the required parking, resulting in 34 spaces in lieu of 60 spaces, and a Minor Variance for the reduction of the rear yard setback along the southern property line to permit a setback of 14 feet in lieu of 15 feet. f. The Project shall be completed and available for occupancy (i.e., a certificate of occupancy shall have been issued) by March 15, 2025 (subject to delays beyond the control of Developer).

However, the City Manager of City may extend such deadline, provided the extension(s) are in writing.

10. Indemnification. Developer shall defend, indemnify and hold City and its elected officials, officers, agents and employees harmless from claims, liabilities, losses, damages and costs and expenses arising from or relating to: (i) personal injuries, including death, and property damage which may arise from the activities of Developer or those of its contractor, subcontractor, agent, employee or other person acting on its behalf which relate to the Project; and (ii) any fair housing claims. Notwithstanding the foregoing, this provision shall not apply to any such claims which arise out of, or by reason of, the sole negligence or sole willful misconduct of the City.

11. Event of Default. Developer is in default under this Agreement upon the happening of one or more of the following events or conditions:
a. If a warranty, representation or statement made or furnished by Developer to City and is inaccurate in any material respect when it was made; b. A breach by Developer of any of the provisions or terms of this Agreement, after notice and opportunity to cure as provided in Section 14 below.

12. Enforcement. In the event of a default under the provisions of this Agreement by Developer is not corrected within thirty (30) days after such notice is given, then City may, without further notice, declare a default under this Agreement and City may then enforce as any normal violation of the standards and provisions of the Yucaipa Development Code, or Yucaipa Municipal Code, applicable to this Agreement. However, notwithstanding the foregoing, City may at any time apply to any court, state or federal, for injunctive relief against any violation by Developer of any provision of this Agreement. All 10070-0142\2722230v Ldoc 5 g

other remedies at law or in equity which are not otherwise provided for in this Agreement are available to the parties to pursue in the event that there is a breach of this Agreement.

13. Developer Representation Re: Priority. Developer represents and warrants that this Agreement, when recorded, is senior and prior to all deeds of trust and other liens, except for liens for property taxes and assessments not yet due.

14. No Waiver of Remedies. City does not waive any claim of defect in performance by Developer if upon periodic review City does not enforce or terminate this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder.

15. Rights of Lenders. Should Developer place or cause to be placed any encumbrance or lien on the Project, or any part thereof, subordinate to this Agreement, the beneficiary ("Lender") of said encumbrance or lien, including, but not limited to, deeds of trust, shall have the right at any time during the term of this Agreement and the existence of said encumbrance or lien to:
a. Do any act or thing required of Developer under this Agreement, and any such act or thing done or performed by Lender shall be as effective as if done by Developer itself, b. Realize on the security afforded by the encumbrance or lien by exercising foreclosure proceedings or power of sale or other remedy afforded in law or in equity or by the security document evidencing the encumbrance or lien;
C. Transfer, convey or assign the title of Developer to the Project to any purchaser at any foreclosure sale, whether the foreclosure sale be conducted pursuant to court order or pursuant to a power of sale contained in a trust deed; and
d. Acquire and succeed to the interest of Developer by virtue of any foreclosure sale, whether the foreclosure sale is conducted pursuant to a court order or pursuant to a power of sale contained in a trust deed.

None of b., c. or d. shall, however, affect the continuing validity of this Agreement.

16. Notice to Lender. If Developer shall have provided City in writing with the name of the Lender and a copy of its recorded deed of trust showing its address for notices, then City shall give written notice of any default or breach under this Agreement by Developer to such Lender and if the default can be cured by the payment of money, City shall give Lender the opportunity after service of the notice to cure the breach or default within sixty (60) days after delivery of said notice.

17. Notices. Any notice required to be given by the terms of this Agreement by either party to the other shall be provided by certified mail, return receipt requested, at the address of the respective parties as specified below or at any other such address as may be later specified by the parties hereto in a notice given pursuant to this Section.

Developer: Shaoul Levy
201 Wilshire Boulevard, 2°d Floor
Santa Monica, CA 9040
Cam:

City of Yucaipa
34272 Yucaipa Blvd.
59-
10070-0142\2722230v1.doc

18. Attorneys' Fees. In any proceedings arising from the enforcement of this Agreement or because of an alleged breach or default hereunder, the prevailing party shall be entitled to recover its costs and its reasonable attorneys' fees incurred during the proceeding as may be fixed within the discretion of the court.

19. Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California.

20. Partial Invalidity. If any provisions of this Agreement shall be deemed to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

21. Recordation. This Agreement shall be recorded in the Official Records of the County Recorder of the County of San Bernardino prior to the issuance of any building permit(s) for the Project.

22. Time of Essence. Time is of the essence of every provision hereof in which time is a factor.

IN WITNESS WHEREOF, this Agreement has been executed by the parties and shall be effective on the Effective Date set forth herein.

DEVELOPER:

E Street Yucaipa QOZB LLC,
a California limited liabili company
Bv:

Name: Shaoul Levy
Title: Manager
CITY:

CITY OF YUCAIPA,
a municipal corporation
IIn
D. Andrew Avila
ATTEST:

City Clerk
APPROVED AS TO FORM:

David M. Snow, City Attorney
Mayor
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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
COUNTY OF LOS 'd
Sep�e�mbetr zozy J-Altv\'VA . N�la ��On Z t ,beforeme,, (insertname and title of the officer)
Notary Public, personally appeared S� t✓ J L� VI1
who proved to me on the basis of satisfactory evidence to be the person whose name( Gar, — subscribed to the within instrument and acknowled o me thaUhsl3e4hey executed the same in&/I 7fflTTeir authorized capacity(4es), and that b hi hetA� signature( on the instrument the person(), or the entity upon behalf of which the person014 acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal. %"'i6— VIRGINIAC. ENRIQUEZ Notary Public - California
Los Angeles County 9
Commission # 2356278
Signature (Seal) My Comm. Expires May 3, 2025
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EXHIBIT "A"

LEGAL DESCRIPTION OF THE SITE(S)

THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF SAN BERNARDINO CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

THAT PORTION OF BLOCK 9 ACCORDING TO MAP OF SUBDIVISION NO. 2, OF A PART OF YUCAIPA VALLEY, AS PER PLAT RECORDED IN BOOK 17, PAGES 99 AND 100 OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTHEAST CORNER OF SAID BLOCK 9 AT THE INTERSECTION OF

THE CENTER LINES OF SECOND STREET (FORMERLY THIRD AVENUE) AND AVENUE E (FORMERLY ARIZONA STREET) THENCE SOUTH 335.14 FEET ALONG THE CENTER LINE OF SECOND STREET; THENCE SOUTH 89 DEG 17' WEST 280 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89 DEG IT WEST 282.46 FEET, MORE OR LESS, TO AN ANGLE POINT IN THE WESTERLY LINE OF SAID BLOCK 9; THENCE ALONG THE WESTERLY LINE OF SAID BLOCK NORTH 14 DEG Y WEST 92.5 FEET; THENCE NORTH 34 DEG 30' EAST 306.1 FEET TO THE NORTHWESTERLY CORNER OF SAID BLOCK 9; THENCE EAST 131.4 FEET; MORE OR LESS, TO A POINT 280 FEET WEST OF THE EAST LINE OF SAID BLOCK 9; THENCE SOUTH PARALLEL WITH THE CENTER LINE OF SECOND STREET 335.14 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

ASSESSOR'S PARCEL NUMBERS(S): 0319-121-24.

THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF SAN BERNARDINO CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

THAT PORTION OF BLOCK 14, SUBDIVISION NO.3, OF A PART OF YUCAIPA VALLEY, IN THE

CITY OF YUCAIPA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 19 OF MAPS, PAGE 1, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHEAST CORNER OF SAID BLOCK 14, IN THE CENTERLINE OF FOURTH STREET (FORMERLY FIRST AVENUE); THENCE ALONG THE SOUTH LINE OF SAID BLOCK 14, NORTH 87° 49' WEST 658.9 FEET TO THE SOUTHWEST CORNER THEREOF; THENCE ALONG THE WEST LINE OF SAID BLOCK 14, NORTH 233.1 FEET; THENCE EAST 658.68 FEET TO THE CENTERLINE OF FOURTH STREET; THENCE SOUTH 0° 03' 30" WEST 258.2 FEET ALONG THE SAID CENTERLINE OF FOURTH STREET TO THE POINT OF BEGINNING.

NOTE: THE MAP OF THE ABOVE DESCRIBED SUBDIVISION, RECITES THAT AREAS AND DISTANCES OF SAID LOT ARE COMPUTED TO STREET CENTERS.

EXCEPTING THEREFROM PARCELS 1 AND 2 OF PARCEL MAP NO. 15443, AS PER MAP RECORDED IN BOOK 195 OF PARCEL MAPS, PAGES 72 TO 73
INCLUSIVE, RECORDS OF SAID COUNTY.

ASSESSOR'S PARCEL NUMBERS(S): 0319-012-40
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RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:

City of Yucaipa
34272 Yucaipa Blvd.

Yucaipa, CA 92399
Attn: City Clerk
With a copy to:

ShaoulLevy
201 Wilshire Boulevard, 2❑d Floor
Santa Monica, CA 9040
APNs: 0319-012-40

SPACE ABOVE THIS LINE FOR RECORDER'S
USE
Exempt from Recording Fees Pursuant to Government Code Section 27383

DENSITY BONUS AGREEMENT
(SENIOR HOUSING; RENTAL PROJECT)
THIS DENSITY BONUS AGREEMENT ("Agreement") is dated as of October 24, 2022, and is entered into by and between 4th Street Yucaipa QOZB LLC, a California limited liability company (the "Developer"), and the CITY OF YUCAIPA, a California municipal corporation (the "City").

B. The City has implemented California Government Code Section 65915(b)(1) and (f) by enacting Yucaipa Development Code Sections 83.010705 et sea. (in Division 3, Chapter 1, Article 7 of the Development Code), which, subject to certain limitations, contemplates a density bonus to encourage development of senior housing.

D. The Developer proposes to construct a as a sixty-two (62) unit rental Senior Citizen Housing Development across two (2) project sites approved as Case No. 21-084/CUP/DBA for a Conditional Use Permit and Density Bonus Agreement for the development of a thirty (30) unit age - restricted project for individuals who are 55 years or older located at APN: 0319-121-24 and Case No. 21- 094/CUP/DBA for a Conditional Use Permit and Density Bonus Agreement for the development of a thirty-two (32) unit, age -restricted housing project for individuals who are 55 years or older located at APN:
0319-012-40 respectively (collectively, the "Project"). 10070-0142\2723953v2.doc - W-

AGREEMENT
NOW, THEREFORE, the parties hereto agree as follows:

Definitions. In this Agreement, the following terms shall have the following meaning:
a. "City" is the City of Yucaipa, California.
b. "Project" is the development described in Recital D above.

3. Restrictions on Units; Qualified Occupant. Sixty-two (62) of the units in the Project (each. a "Senior Unit", and, collectively, the "Senior Units") shall be rented to and occupied by households which include at least one Qualified Occupant.

4. Term. The term of this Agreement shall continue until the later of: (i) the date that is 55 years after the first rental of a unit to a Qualified Occupant; or (ii) the date on which construction commences, in accordance with applicable law and permits, on a project that is not a senior rental housing project after the demolition or destruction of the Project.

5. No Conversion. During the term hereof, all residential units in the Project shall remain rental units. During the tenn hereof, no apartment unit in the Project shall be eligible for conversion from rental units to condominiums, townhomes or any other common interest subdivision without consent of the City Council.

6. On -site Manager. [INTENTIONALLY OMITTED]

a. A project occupancy profile;
b. A description of the physical condition and maintenance procedures for the Project, including apartment units, landscaping, walkways and recreational areas.

C. The number of persons per unit;
Qualified Occupant name and address (unit);
e. Initial occupancy date;
£ Copies of all documents used by Developer to certify the occupant household as a Qualified Occupant.
g. Copies of the leases (rent may be redacted).

8. Selection of Qualified Occupant. Developer shall determine the eligibility for occupancy of Senior Units under the terms of this Agreement. Verification of eligibility shall be based on the following information and any other information reasonably requested by City: Reasonable documentation of age of each Qualified Occupant (such as birth certificate; current driver's license; etc.) Development Incentive(s). Pursuant to Government Code Section 65915(b)(1) and (f) and Yucaipa Municipal Code Section 83.010715(b)(4), the City grants Developer the following incentives for development of the Project: A 100% Density Bonus to allow a Project that provides 14.69 du/ac subject to the following:
a. Operation of the 32-unit age -restricted housing project (Case No. 21- 094/CUP/DBA) site located at APN: 0319-012-40 shall be contingent on occupancy and operation of the affiliated 30-unit age -restricted housing project (Case No. 21-084/CUP/DBA) site located at APN: 0319- 121-24;
b. The two (2) affiliated project entitlements (Case Nos. 21-084/CUP/DBA and 21- 094/CUP/DBA), shall expire on March 15, 2025, but may each qualify for a maximum of one (1) extension of time for a period not to exceed three (3) years;
C. Should one (1) of the affiliated project sites be constructed, and the other site remain undeveloped without an extension of time request appropriately filed and approved, then operation of the developed site shall cease, and all structures constructed pursuant to the award of a development incentive removed;
d. By March 15, 2028, should either or both of the affiliated project sites be out of compliance with State Law requirements for a Senior Citizen Housing Development, the Project, in its then existing condition, shall be discontinued, operation of the sites shall cease, and a new entitlement application shall be submitted for a rental Senior Citizen Housing Development consistent with Density Bonus Procedures.
-
10070-0142\2723953v2.doc
65-

9. Project Design Amenities for Senior Citizens. The Project open space, buildings and individual units shall be designed with physical amenities catering to the needs and desires of the senior citizen residents. The following physical amenities shall be included in the Project:
a. Senior Unit sizes shall be a minimum of 900 square feet and provide two (2) bedrooms;
b. All common access areas in the Project such as entryways, walkways, and hallways shall be wide enough to accommodate wheelchairs; C. The Project will meet all applicable current requirements for access and design imposed by law as administered by the City building and safety department, including, but not limited to, the Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), the Americans with Disabilities Act (42 U.S.C. Sec. 12101 et seq.), and the regulations promulgated at Title 24 of the California Code of Regulations that relate to access for persons with disabilities or handicaps;
d. The Project shall be designed and constructed to encourage social contact by providing sidewalks to connect the units to the proposed landscaped amenities. Common open space area will also be provided by a recreation area with a barbeque island and shade structures. e. The Project shall be completed and available for occupancy (i.e., a certificate of occupancy shall have been issued) by March 15, 2025 (subject to delays beyond the control of Developer).

However, the City Manager of City may extend such deadline, provided the extension(s) are in writing.

15. Rights of Lenders. Should Developer place or cause to be placed any encumbrance or lien on the Project, or any part thereof, subordinate to this Agreement, the beneficiary ("Lender") of said encumbrance or lien, including, but not limited to, deeds of trust, shall have the right at any time during the term of this Agreement and the existence of said encumbrance or lien to:
a. Do any act or thing required of Developer under this Agreement, and any such act or thing done or performed by Lender shall be as effective as if done by Developer itself; b. Realize on the security afforded by the encumbrance or lien by exercising foreclosure proceedings or power of sale or other remedy afforded in law or in equity or by the security document evidencing the encumbrance or lien;
C. Transfer, convey or assign the title of Developer to the Project to any purchaser at any foreclosure sale, whether the foreclosure sale be conducted pursuant to court order or pursuant to a power of sale contained in a trust deed; and
d. Acquire and succeed to the interest of Developer by virtue of any foreclosure sale, whether the foreclosure sale is conducted pursuant to a court order or pursuant to a power of sale contained in a trust deed.

None of b., c. or d. shall, however, affect the continuing validity of this Agreement.

Developer: Shaoul Levy
201 Wilshire Boulevard, 2nd Floor
Santa Monica, CA 9040
City: City of Yucaipa
34272 Yucaipa Blvd.

Yucaipa, CA 92399
Attn: Benjamin Matlock
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=1567-

19. Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California.

21. Recordation. This Agreement shall be recorded in the Official Records of the County Recorder of the County of San Bernardino prior to the issuance of any building permit(s) for the Project.

22. Time of Essence. Time is of the essence of every provision hereof in which time is a factor.

IN WITNESS WHEREOF, this Agreement has been executed by the parties and shall be effective on the Effective Date set forth herein.

DEVELOPER:
4th Street Yucaipa QOZB LLC, a California
limited liability company
Bv:

Name: Shaoul Levy
Title: Manager
CITY:

CITY OF YUCAIPA,
a municipal corporation
By: , Mayor
D. Andrew Avila
ATTEST:

City Clerk
APPROVED AS TO FORM:

David M. Snow, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF Los � da )
On St Ae y1belr before me, to b�Ic
(insert n e and title ofthe officer)
Notary Public, personally appeared S od L J Lt_ `,
who proved to me on the basis of satisfactory evidence to be the person( whose name) is are — subscribed to the within instrument and acknowledged to me that/sh, ke executed the same in is herfth& authorized capacity(ie&)-,-and that by erfth-eirsignatureV) on the instrument the person(sf, or the entity upon behalf of which the person) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
*,"...'i"�My
VIRGINIA C. ENRIQUEZ
Notary Public - California
Los Angeles CountyCommission # 2356278 Comm. Expires May 3, 2025 r 10070-0142\2723953v2.doc
-7-
-169-

EXHIBIT "A"

LEGAL DESCRIPTION OF THE SITE(S)

THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF SAN BERNARDINO CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

THAT PORTION OF BLOCK 9 ACCORDING TO MAP OF SUBDIVISION NO. 2, OF A PART OF YUCAIPA VALLEY, AS PER PLAT RECORDED IN BOOK 17, PAGES 99 AND 100 OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTHEAST CORNER OF SAID BLOCK 9 AT THE INTERSECTION OF

THE CENTER LINES OF SECOND STREET (FORMERLY THIRD AVENUE) AND AVENUE E (FORMERLY ARIZONA STREET) THENCE SOUTH 335.14 FEET ALONG THE CENTER LINE OF SECOND STREET; THENCE SOUTH 89 DEG I T WEST 280 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89 DEG ITWEST 282.46 FEET, MORE OR LESS, TO AN ANGLE POINT IN THE WESTERLY LINE OF SAID BLOCK 9; THENCE ALONG THE WESTERLY LINE OF SAID BLOCK NORTH 14 DEG Y WEST 92.5 FEET; THENCE NORTH 34 DEG 30' EAST 306.1 FEET TO THE NORTHWESTERLY CORNER OF SAID BLOCK 9; THENCE EAST 131.4 FEET; MORE OR LESS, TO A POINT 280 FEET WEST OF THE EAST LINE OF SAID BLOCK 9; THENCE SOUTH PARALLEL WITH THE CENTER LINE OF SECOND STREET 335.14 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

ASSESSOR'S PARCEL NUMBERS(S): 0319-121-24.

THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF SAN BERNARDINO CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

THAT PORTION OF BLOCK 14, SUBDIVISION NO. 3, OF A PART OF YUCAIPA VALLEY, IN

THE CITY OF YUCAIPA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 19 OF MAPS, PAGE 1, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:

NOTE: THE MAP OF THE ABOVE DESCRIBED SUBDIVISION, RECITES THAT AREAS AND DISTANCES OF SAID LOT ARE COMPUTED TO STREET CENTERS.

EXCEPTING THEREFROM PARCELS 1 AND 2 OF PARCEL MAP NO. 15443, AS PER MAP RECORDED IN BOOK 195 OF PARCEL MAPS, PAGES 72 TO 73
INCLUSIVE, RECORDS OF SAID COUNTY.

ASSESSOR'S PARCEL NUMBERS(S): 0319-012-40.
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_21111111111111111
'A■

SITE PLAN
SO -Unit Multi -family Project
co7r, �JR
esi� DIJPL.G( CON,-
,p �� In
7 �� G a _In
LO11L \ —.
/ 2e PE SS9 ' FLOW PE loos 10 11
1,20
(LA 4iGAPeDASM LAMS` — — iI _ 5ET85ACA Y
. FENGED) PE dSi. �q
\ .---...

Dl1LIITION BAIR!
IN FlPE ` _ a I e — —
b r% PE 340 / _ 1 R 603 - FBJeE T'PJ Ll
DRAIN CxIfLJ_R - - 1 _ i (— 1 —b- MINN VIM
ID -
KAR RM—.— — --._ i • .y -
T/E 54MMIO.5 Ile Px (PJ 7'@.GE TO
FEN
ST TtR
T/E
t! _
1 OF 1 0 REAR SE °o FE 61.0 16
141 VARIANCE
2,1 A I' E7L'AO
SLOPE
/ RM-72 '
ot I'le Home P�>
l >
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Project Notes

APPLICANT REPRESENTATIVE
A then b
OWNER
Levy AINa1Ld Fbldlllgs, LLC Custorn Lend erd
Craft Commmthas
201 W41sh8a Blvd, 2rld Fbor 12460 6domia SL, Su'de 240
11572 Cmron A".

Same Monka, CA 90401 Yuc pe,�
Redlands, CA 92074
55 LEGAL DESCRIPTION
Thd P.k-de.i/ddx17ao 2 Ymap. Vdq,. P.m. d tb 9,. p. pld.m W b9.117dMp,P.9.W, fbmrd dSwe.nwdwC+rx4d=bedath—
Commencing at NE comer of said lot at the intersection centerline Second St. and E I.

I-sT° NOE vane , ceSoul 335.14 N a ng centerline Second St., thence South 89 deg 2-STORY SIDE SeiBALk 17 West 280 ft to true Point of Beginning, thence continuing South 89 deg 17 West NI,� a 2B2.46 ft rill to an angle point In the wesledy line of mid lot, thence along westerly UN DI.aLcx IT line of said lot N 14 deg 03' West 923 fl, thence North 34 deg 30' 306.1 ft to 1 northwesterly comer of said 1114 thence E 131.4 ft rill to a point 280 it w or the East line of said lot, thence South and parallel with centerline of Second St 335.14 ft rill to Point of Beginning.
/—z 6fto D ASSESSORS PARCEL NUMBER
_... SFTE ADDRESS
2i l SLOPE 54855 Aw.R E
GENERAL PLAN DESIGNATION (wMq & Propceed)
5ec.tion A RI4Th(m~ R.ldYN2W dmI a✓m)

PROPOSED PROJECT
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III,
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f2RlEX tNiT Ebrollw.b l.I.Ipnd

STATISTICAL SUMMARY
Ia1A..(ta..y 63s9o.1. 1.91c
Id)... (?W. 752Y7 d.. 1.75 4.
' .... _._ Tow nwiV Urfa 30
GIBI;, DwLr. 15.7 d.i d.
(E1 • FALE

UNIT SUMMARY
(F) —
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M1-24KIROnNU IT pBal. 2r8M
Ss I W NI" VINYL 1 E 1!

COVERAGE AREAS
'•• AT TOP ar SLOPE frYPJ
BINp A .(E "v1: 2LW LL (bhs R..ad)
I
Bi/e A.Pwry 0 15,455.1.
`L�OI.RSE DRAINAbE
Tod Bidg1 c 15,455.1. 203%
PMtpCYaiMMI' 23SM.J. 31A%
1 A... 31 455 %
Section B
PrM.. oP. sp— 95LLbdaV.. ud

APPROVED PARKBIOSUMMARY
City of Yucaipa L.du.. "_"` I.% tk% liP.=Ra.0*M "-
Planning Division W R0b" o W 30 °sue p
Case No, 2a-osygf\pkC Twfb..dSSvR.RB.d�
T.bl sp.rs 7Yw1ld: 34-1tf - 4ds.bWW—
Y.i.o np.IW b Iq,.. nQi.d pM9 by4M b.pac 7.1 yodvi
ame Date ESTIMATED EARTHWORK
ryer.br.r b.Im.c 500ry.

MpuYnb Ent ftr 4,010.y.

SERVNea Ur7LITM: No.:

Waif-_ G.

Y_ Vary Wdm D*kt Sutlen CNbmle G. Cmp.fy 1. No nphYd l..mpbll mlmd� 1277 2d SL 155S.G51 2TM d►i ml.q.d blind Yuddm.kbd l.BN.

Yu*kCA 92N9 S. 13-.6B'CA 22410
973iTe prtjed6�Id.ag!tnldd4 dYY brtn.tgnrl P4.r5n
(909)T117 (MG)35.7915 4,N...b.d u9W bbpMb.

S.qr_ T*qKm--
Ms.Tlr..eAe d1G. dY.tl..mw.IaY W1..W Wlp
VVaWWV[1iWd Rorft Cormincborla
9PSB9 7M.Scn0. GAx Bldg. 725 6Thnnie bo..Eb.�rreml. prq>rq. (BOD)7(173117 (909)794�3 7.7I hd d. to III dd.m.lw mlab tlddc 9a.414 GN 0.V.YY RPRld b l.bnr..Y.d..b.d by—(1) bdIII lm.lmdUdN. 16 287TiiInnIi,i;I;iiIiiSLL 1 78'i
Pw"w 1149mm Son 92/05 VlalnIN map
Prged S4. G
G vw t t
_ b
--- Da

SITE PLAN
32-Unit Multl-family Project
�]-STORY Sipe

SM SC MOK
1MDc 1MT
1 aJ b' FAKE TO RETWN
@l AO SERFAGE IEI bR0.W
Section A Section B
T
LT-T.

UWTA LWTB
9AorA[e �•
nN� f'J>1
pRFABYAY
Driveways Hetuleen Units
R70R
fEl aFU
4th Street Section
Project Notes

APPLICANT REPRESENTATIVE
OWNER
levy At7mtad Fkll9rm. U-C Ra1Wn land Ov/ebptery
201 Wdrfie
She a Diem% Bw/e
BMd., 21d Fkv 35109 AvgtlwC
Sail Mml®, G B0101 Y�irabs, CA SM
57PW90
PO Box 012
Madmen CA OM

LEGAL DESCRIPTIONTW
F eibddfbn N>2 Tnbn Vift nP 4 did Al.a W W -db
B led W P. AP i. f1m0 d en lN�rf a'. mod! R li�obe
d.e
b BWC =Nmlb{em E�mYllb�eln�o♦Y6 94nMB/Yd
Ine Sbd,2m'%f W Z9SYtlbfz Mltl e�nFp ®Db�YbyRdl MV�bhvIYO151p Rtlspp RRi

ASSESSORS PARCEL NUMBER
mlama

SITE ADDRESS
wrab amel.Kea.+.ee,avlob.as
GENERAL PLAN DESIGNATION (mdsgng a proposed)
fartl nsA.druda.saTaoer.ua,I
APppOV`

PROPOSED PROJECT
d.tl*NnulI 1-
pCity of Yucai
a
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o,R
-k*dbnbibpd56.
in
nng piviI
Case
on
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o.

PnPl2bvdbod

STATMMCAL SUMMARY
Id/+ P-wh¢ we"a 2 -
x :... I-..Y \ �. Ibab✓,- ua.veln \

UNIT SUMMARY
v i-21fF!R1 Ulf am.t U1 D` ._
/,�^� { COVERAGE AREAS
sII...b10_-. TW tl F- n.AN xfs%
IN P.uvonw.n 37MLL a1%
x x I x asp. Gi=a NA%
RNrowspoc I5LLIbm2An-
1NLLpebbrpnbplin)
21oLLbrsh+4
Airx O PARKING SUMMARY
0 m/ty
MA.Pmy zw n a..e.daPwArr

6.X d�`t` z5� rrxrAaNe w,u Axw z - X. x ��- Tm GWRP-i►t ah�fp�

ESTIMATED EARTHWORK
y � ASPN kwb+Eawoc q,mcr.
- - I � - � y{ X 11 JI , ` wmbod,enlo-,rb Rtlbm✓•
the%v 10 �1a rJ �tp y� �:'� Q'-� I �— �I I' zn.rh.aWndbeod�..flfb�ound rl0a j x p, xrb a�.ry.mr.agmrti4.gmi
.t I.N ✓•IbnN liRhbpb✓.,
. P _ � z D I - 6rdoY rlelll�Eb®uW NYRlbpibp
b
r '" A isted b. g Facility
M 72c _. =- a� �, lY-fa lly Reside t�l N' AYN
,i 71 P-_ •f1a J . AO PAVQlItt _ �
/ IC / ._ CONG
u
Single Family Residence4�7 _ to ? 8 �7 la 4 :' -•g • I R'J PP o eE rmlov>a _ ,�,,,�y - ° X -a"' - - _
--_tos _ >T� ��PP TO Reuw xlu• �BJC°_1nTM�J 'X _ _ ', y° _.I1 CAR v�v'w�ruhefd�gnounr ca
CDmM
- --` ' . _. - - 2.1
- �` o ' ...I R -72c - tenmsNlu�w CA E410
® ,: 1 .. an xoPe ' _ _. - -. -' -�_ i- -� - - ao• ST•ea // SAwc Twwt- it T
Single Family Residential r.Y+rxwClw17
Toa.r Wha,e,e
.51
Ix2N,N>N I'- ---- J . Rb ssiaa i ; �l� IJ.! I' �I� - - --%- __... UN. v
l!�%
sTmrGTrRd.' . AMJIN t 2 uo PE �To R iea '� n 1S ' . i I mp/ j warm CrfrmY Tam �I�n P*307®se1. 1NEElMMIYIn
(BdB) 6116 ��b. •IA 6HICI0
PAV9.8�L
YIA'tlPa'r _. TRAR �- =.ban rv1.. 1 1 A
24ft PROPEIL}T'L1fE .� F
• --- z ` --
W
J-- v v— Y ]Sbp =AfA d� ❑
r--iF—_—fF ]4M z x 1M0.
- x > e119 ��-� �sfo-, Mamr(.CITY OF YUGAIPA
..___ f•xg07D,YM dM drrin: dhow, by: Inab: `r,a
. —._.. _ .. s�nmb.de:.cw IMY 31, 20JI P. GIARL.B 1•. Sp• SHEETS

Yucaipa City CouncilOctober 24, 2022

Yucaipa City Council
October 24, 2022