PC Item 3A - Exhibit ECity of Rose mead Planning Division
8838 East Valley Boulevard, Rosemead, California 91770
(626) 569- -2140 FAX (626) 307- -9218
DENSITY BONUS APPLICATION
Please type or print neatly
Applicant Information
Char plon Mu Name
360 E. Gladstone St Home Address
Azusa/ CA /91702 City / State / Zip Code
213 797 0065 626 627 0115 Phone Mobile Phone
Property Owner Information
Chap Ion Mu Name
360 E. Gladstone St Home Address
Azusal CAJ 91702 City / State I Zip Code
213 797 0065 626 627 0115 Phone Mobile Phone
Supplemental Information
In accordance with Rosemead Municipal Code, Title 17, Chapter 17.84, a request for a density
bonus and proposals for incentives or concessions shall be made in writing at the time of filing the
housing development application and shall be process in conjunction with the underlying
application, and shall be accompanied by a fee in an amount established by resolution of the City
Council. The information required to be submitted in the application listed on the attached checklist
CERTIFICATE OF APPLICANT: "I certify that all statements in this application and attachments
are true and correct and complete to the best of my knowledge.
January 25, 2024 Applicant Signature Date
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Density Bonus ApplicaƟon
Project DescripƟon &
Statement of Findings for Concessions and
Waiver or ReducƟon of Development Standards
7741-7745 Hellman Avenue, Rosemead, CA. 91770
April 30, 2025
Dear City Council,
This leƩer is submiƩed on behalf of property owner Mr. Chaplon Mu, managing principal of 7741
Hellman LLC, in support of the Density Bonus ApplicaƟon for the above-referenced property. This
leƩer provides a project descripƟon and details Scales Lab Architects’ requested concessions for
this project, and how each concession will increase this project's viability.
Project Summary:
General Plan/Zoning DesignaƟon: R-3 (Medium MulƟple ResidenƟal)
Proposed Project: Proposed subdivision under Rosemead Municipal Code SecƟon 17.12.030.2.g
(Small Lot Subdivision) to allow the creaƟon of 10 lots.
Density Bonus Request
By applying California Government Code SecƟon 65915 (State Density Bonus Law) and providing
affordable housing, the base density is 10 units.
In conformity with Municipal Code secƟon 17.84.030 and State Density Bonus Law, the Applicant
is proposing to provide two (2) very low-income units (15%) to qualify for a 50% density bonus (5
units). The resulƟng development mix will consist of single-family dwelling and duplexes totaling
15 units. All designated very low-income units will be subject to a recorded affordability
restricƟon per City and State Density Bonus Law.
As part of the Density Bonus ApplicaƟon, the applicaƟon also requests three (3) concessions in
order to increase this development's viability. The requested concessions are listed below:
Requested Concession #1
The Applicant requests a reducƟon of the side yard setback by the garages, on both the East and
West sides, to five feet instead of the standard 10 feet. This will increase the garage backup width
to a comfortable and more funcƟonal 26 feet (shared common driveway) to enhance vehicular
circulaƟon for residents and public service vehicles. In addiƟon, this concession will differenƟate
building separaƟon and massing on both the side yards and driveway to allow more solar access
and create privacy. This modulaƟon will also increase light and shade which will permeate
through the indoor and outdoor spaces.
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Requested Concession #2
The applicant is requesƟng a building height modificaƟon of 4 stories (40 feet) in lieu of 3 stories
(35 feet). The resulƟng overall height increase of 5 Ō. The proposed height increase is jusƟfied
based on efficient land use, housing demand, economic benefits, sustainability, and urban
regeneraƟon. This modificaƟon supports the project's goals and benefits the community by
providing needed housing.
Requested Concession #3
The applicant is requesƟng modificaƟon of standard parking spaces to a combinaƟon of standard
and compact spaces. The provided parking spaces shall consist of 1 standard space (10’x20’) and
2 compact spaces (8’x16’) instead of 3 standard parking spaces (10’x20’) per lot. The proposed
modificaƟon is jusƟfied based on efficient space uƟlizaƟon, increased parking availability, cost-
effecƟveness, encouragement of smaller vehicles, and flexibility for alternate uses. This
configuraƟon supports the project's goals and benefits the community.
All of the listed incenƟves provide good design elements and water conservaƟon methods. The
applicant respecƞully requests that the City Council approve this Density Bonus ApplicaƟon with
the three (3) requested concessions. These concessions will have no major impact on the
affordability of this project. Instead, they will greatly enhance the development by providing
comfortable and funcƟonal spaces for future occupants.
Waiver/ReducƟon of Development Standards #1: ReducƟon of Open Space Requirements
The requirement for open space in the proposed development will have the effect of physically
precluding the construcƟon of the project. Given the constraints of the site and the density
requirements specified in Gov. Code §65915(e)(1), adhering to the open space standards would
significantly limit the buildable area, thereby making it impossible to achieve the desired density
and the concessions or incenƟves permiƩed under this secƟon. The reducƟon of open space
requirements is essenƟal to ensure that the development can proceed without compromising the
project's feasibility.
Sincerely,
Roland Lo, AIA
Principal, Scales Lab Architects
Space above for Recorder’s Use
This Agreement is recorded at the request and for the benefit
of the City of Rosemead and is exempt from recording fee
pursuant to Government Code Section 27383
AFFORDABLE HOUSING AGREEMENT
Dated as of , 20__
By and Between
THE CITY OF ROSEMEAD,
a California general law city (“City”),
and
7745 HELLMAN LLC (“Covenantor”)
The land referred to in this Affordable Housing Agreement is situated in the City of Rosemead, County
of Los Angeles, State of California on a parcel located at 7745 Hellman Avenue, more particularly
described in Exhibit “A”, attached hereto and incorporated by reference.
These Restrictions provide rights to the City of Rosemead in regulating the rental of the subject
property, containing two (2) affordable units, for a period of 55 years from the date of a final Certificate
of Occupancy.
RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL
TO:
City of Rosemead
8836 East Valley Boulevard
Rosemead, California 91770
Attention: City Clerk
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AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT (“Agreement”) is made by and between
the CITY OF ROSEMEAD, a California municipal corporation and general law city (“City”), and
7745 Hellman LLC (“Covenantor”), as of the day of , 20__.
RECITALS
A. Covenantor is the owner of certain real property located at 7745 Hellman Ave, in
the City of Rosemead and more particularly described in Exhibit “A” attached hereto and
incorporated by reference. (“Property”).
B. The Covenantor desires to improve the Property by constructing thereon a
residential project consistent with the approvals for fifteen (15) dwelling units in which two (2) of
the units shall be affordable units for very low-income households (the “Entitlements”).
C. The Entitlements were approved by the City Council on ,
in accordance with California Government Code Section 65915. The Entitlements included a
“density bonus” in exchange for which the Covenantor agreed to make two (2) units on the
Property, shown and identified on Exhibit “B” attached hereto, affordable units for very low-
income households. All two (2) affordable housing units (collectively, the “Affordable Units”) are
available for rent by eligible very low-income households at a rent that does not exceed 30% of
the area median income adjusted for family size appropriate for the unit for a period of fifty-five
(55) years.
D. Condition No. ___________ the Entitlements’ Conditions of Approval obligates
the Covenantor to provide an instrument that can be recorded against the Property in order to
preserve the two (2) Affordable Units’ status as affordable housing units for the benefit of very
low-income households.
E. Therefore, the Covenantor and the City now enter into this Agreement for the
purpose of regulating those certain Affordable Units upon the Property. The restriction of the
Property as provided in this Agreement is in accordance with the public purposes and provisions
of applicable state and local laws and requirements.
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AGREEMENT
NOW, THEREFORE, the Parties hereto covenant and agree as follows:
ARTICLE I
NONDISCRIMINATION
Section 1. Nondiscrimination. All of the Affordable Units must be available for
occupancy on a continuous basis to members of the general public. Covenantor cannot give
preference to any particular class or group of persons in renting the Units, except to the extent
that two (2) units is required to be leased to Very Low-Income Households.
Covenantor covenants by and for itself and any successors in interest that there will be
no discrimination against or segregation of any person or group of persons on account of any
basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases
are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p)
of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease,
transfer, use occupancy tenure or enjoyment of the Project nor can Covenantor itself, or any
person claiming under or through it establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees or vendees in the Project. The foregoing
covenants run with the land.
Covenantor must accept as tenants on the same basis as all other prospective tenants,
persons who are recipients of federal certificates for rent subsidies pursuant to the existing
program under Section 8 of the United States Housing Act of 1937, or its successor.
Covenantor must not apply selection criteria to Section 8 certificate holders that are more
burdensome than criteria applied to any other prospective tenants.
All leases or contracts made relative to the Project, the improvements thereon or any part
thereof, must contain or be subject to substantially the following nondiscrimination clause:
“There must be no discrimination against or segregation of any person or group of persons on
account of race, color, creed religion, sex, sexual orientation, source of income, marital status,
physical or mental handicap, medical condition, national origin or ancestry in the sale, lease,
sublease transfer, use occupancy, tenure or enjoyment of the Project nor may lessee [or the
contractor] or any person claiming under or through it, establish or permit any such practice or
practices of discrimination or segregation with reference to the election location, number, use
or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Project.”
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ARTICLE II
DUTIES OF THE COVENANTOR
Section 1. Use and Occupancy Standards.
The Affordable Units shall be occupied only by “Eligible Households” (as defined below).
The maximum occupancy of each Affordable Unit shall not exceed the maximum occupancy
allowed by the Rosemead Municipal Code. Covenantor shall, upon demand by the City’s
Community Development Department, submit to same, an affidavit verifying Covenantor’s
compliance with this Agreement. Said affidavit may be required by the City’s Community
Development Department on an annual basis.
Section 2. Affordable Housing Restrictions.
(a) Definitions. Unless the contrary is stated or clearly appears from the
context, the following definitions will govern the construction of the words and phrases
used in this Agreement:
“Affordability Period” means the fifty-five (55) year period commencing on the date of
a final Certificate of Occupancy and ending on the fifty-fifth (55th) anniversary thereof.
“Affordable Housing Cost” shall have the meaning defined in Section 50052.5 of the
California Health & Safety Code as of the date of this Agreement or as subsequently amended
from time to time.
“Affordable Housing Unit” means each of the two (2) units within the Property, adjusted
according to family size, which are reserved for rental to Eligible Households in accordance with
the terms of this Agreement.
“Affordable Rent” shall mean the consideration received by Covenantor in connection with
the use or occupancy of an Affordable Unit, as set forth in Section 50053 of the California Health
& Safety Code, for which Affordable Rent shall not exceed the product of thirty percent (30%)
times fifty percent (50%) of the area median income, which are the income limits for Eligible
Households adjusted for family size appropriate for the Affordable Unit. The Affordable Rent may
be adjusted when the income limit figures for Los Angeles County (as set forth by the California
Department of Housing and Community Development) are adjusted.
“Area Median Income” or “AMI” means the annual median income, adjusted according to
household size, for the County of Los Angeles, as most recently published and updated by the
United States Department of Housing and Urban Development (“HUD”) and as set forth in 25
California Code of Regulations § 6952, or any other comparable source City deems appropriate.
“Eligible Households” means persons or Households whose Gross Household Income does
not exceed the income limits for “Very Low-Income” households for Los Angeles County,
adjusted for family size as set forth by the California Department of Housing and Community
Development.
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“Gross Household Income” means the income of all members of the Household over the
age of eighteen (18).
“Household” means all persons who will occupy the Affordable Unit located on the
Property whether it be a single family, one person living alone, two or more families living
together, or any other group of related or unrelated persons who share living arrangements
provided that all the terms and conditions set forth in this Agreement are met.
(b) Restrictions. Covenantor acknowledges that the purpose of this Agreement
is to encourage affordable rental to Eligible Households. Pursuant to such purpose and except as
provided herein below, the Affordable Units may be leased by Covenantor during the Affordability
Period only to an Eligible Household at an Affordable Rent (an “Eligible Lease”), as applicable.
Covenantor must use a lease form for the two (2) designated affordable rental unit, that
discloses the existence of this Affordable Housing Agreement and identifies how the lessee must
be prequalified as an Eligible Household, before the lease may be executed. This disclosure must
be displayed prominently on the lease form, in at least 12-point font, and bolded.
In order to verify a lessee’s status as an Eligible Household, Covenantor shall submit to the
City’s Community Development Department the identity of the proposed lessee, and adequate
information evidencing the income of the proposed lessee. Said income information shall be
submitted together with a notice of proposed Eligible Lease not less than thirty (30) calendar days
prior to the proposed lease, and shall include true copies of income tax returns for the two (2) most
recent years in which a return was filed and such other financial documents required by the City’s
Community Development Department in order to verify household income and determine Eligible
Household status of the proposed lessee and whether the Affordable Unit is available to such lessee
at an Affordable Rent. COVENANTOR UNDERSTANDS THAT THE AFFORDABLE RENT
PERMITTED HEREUNDER MAY NOT INCREASE OR DECREASE IN THE SAME
MANNER AS OTHER SIMILAR REAL PROPERTIES WHICH ARE NOT ENCUMBERED
BY THE RESTRICTIONS SET FORTH IN THIS AGREEMENT. COVENANTOR FURTHER
ACKNOWLEDGES THAT THE PRIMARY OBJECTIVE OF THE CITY AND THIS
AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE HOUSEHOLDS AT AN
AFFORDABLE RENT, AND THAT THE RENTAL RATE MAY BE LESS THAN OTHER
SIMILAR PROPERTIES WHICH HAVE NO RESTRICTIONS.
Section 3. Recordation of Agreement. This Agreement must be recorded before issuance of
building permits. Covenantor must also record, separate from this Agreement, an Affordable Housing
Covenant document in the form of Exhibit “C,” stating that the conditions and obligations to which the
subject Property is bound runs with the land.
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ARTICLE III
ENFORCEMENT
Section 1. Remedies.
Breach of the covenants contained in this Agreement may be enjoined, abated or remedied
by appropriate legal proceeding. Covenantor agrees that, if the designated affordable rental units
are rented out at rates exceeding the affordable rent, City may recover such amounts from
Covenantor.
Section 2. Rights of City.
As a party to this Agreement, the City is entitled to the following rights:
(a) City has the right, but not the obligation, to enforce all of the provisions of
this Agreement.
(b) Any amendment to the Agreement shall require the written consent of City.
(c) This Agreement does not in any way infringe on the right or duties of the
City to enforce any of the provisions of the Rosemead Municipal Code including, but not limited
to, the abatement of nuisances and or dangerous conditions.
Section 3. Cumulative Remedies.
The remedies herein provided for breach of the covenants contained in this Agreement
shall be deemed cumulative, and none of such remedies shall be deemed exclusive.
Section 4. Failure to Enforce.
The failure to enforce any of the covenants contained in this Agreement shall not constitute
a waiver of the right to enforce the same thereafter.
Section 5. Successors and Assigns. The parties hereto each agree that the obligations
and duties contained herein are binding upon the City and Covenanter, and their respective
successors and assigns. Covenanter and its successors cannot assign its rights or delegate its duties
or obligations, or sell, transfer, convey, encumber, assign or lease any of the Affordable Units
(other than for individual tenant use as contemplated hereunder). Covenanter must provide at least
fifteen (15) day notice to City before any proposed transfer to a successor or assign. The assignee
or successor must agree in writing to assume on behalf of itself and its successors and assigns, all
the duties and obligations of the Covenanter under this Agreement, and any purported assignment
will not be valid without such a written agreement.
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ARTICLE IV
GENERAL PROVISIONS
Section 1. Severability. Invalidation of any one of these covenants or restrictions by
judgment or order of a court of competent jurisdiction shall in no way affect any other provisions
which shall remain binding and enforceable.
Section 2. Construction. The provisions of this Agreement shall be liberally construed
for the purpose of maintaining the Property. The article and section headings have been inserted
for convenience only, and shall not be considered or referred to in resolving questions of
interpretation or construction.
Section 3. Amendments. This Agreement may be amended only by the written
agreement of Covenantor and City.
Section 4. Notices. Any notice permitted or required to be delivered as provided herein
from one party to another shall be in writing and may be delivered either personally or by first-
class or certified or registered mail, return receipt requested. If delivery is made by mail, it shall
be deemed to have been delivered seventy-two (72) hours after a copy of same has been deposited
in the United States Mail, postage prepaid. Notices shall be addressed as follows:
To City: City of Rosemead
8836 East Valley Boulevard
Rosemead, CA 91770
Attention: City Clerk.
To Covenantor: 7745 Hellman LLC
360 E Gladstone St Azusa CA 91702
Attention: Chaplon Mu
Such addresses may be changed from time to time by notice in writing to City, which shall be
made by certified mail to the other party in accordance with this Section 4.
Section 5. Term of Agreement. Pursuant to the California Density Bonus Law, the term
of this Agreement begins on the date the Building Official issues a final Certificate of Occupancy,
or equivalent, for the Property and remains in full force and effect for a period of 55 years.
Section 6. Violation of Conditions of Approval. Any violation of the conditions of any
of the Entitlements will also constitute a violation of this Agreement and are enforceable as a
breach hereof, as well as any other remedies.
Section 7. Default. If Covenanter defaults in the performance or observation
of any covenant, agreement or obligation set forth in this Agreement, and if such default remains
uncured for a period of sixty (60) days after written notice must have been given by the City to
Covenanter , then the City may declare an “Event of Default” to have occurred hereunder, and, at its
option, may take any one or more of the following steps:
(a) By mandamus or other suit, action or proceeding at law or in equity,
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require the Covenanter to perform its obligations and covenants hereunder or enjoin any acts or
things which may be unlawful or in violation of the rights of the City hereunder;
(b) Have access to and inspect, examine and make copies of all of the books
and records of the Covenanter pertaining to the two (2) Units;
(c) Take such other action at law or in equity a may appear necessary or desirable to
enforce the obligations, covenants and agreements of the Covenanter.
Section 8. Subordination. The provisions of this Agreement shall be subordinate to any
first lien on the Property held by an institutional lender or investor (the “Lender”) and shall not
impair the rights of Lender, or Lender’s assignee or successor in interest, to exercise its remedies
under the first lien in the event of default under the first lien by Covenantor. Such remedies under
the first lien include the right of foreclosure or acceptance of a deed or assignment in lieu of
foreclosure or if the mortgage is assigned to the Secretary of the United States Department of
Housing and Urban Development. After such foreclosure or acceptance of a deed in lieu of
foreclosure, this Agreement shall be forever terminated and shall have no further effect as to the
Property or any transferee thereafter; provided, however, if the holder of the first lien acquires title
to the Property pursuant to a deed or assignment in lieu of foreclosure, this Agreement shall
automatically terminate upon such acquisition of title, provided that (i) City has been given not
less than thirty (30) days written notice of a default under the first lien, and (ii) City shall not have
cured the default under such first lien within the cure period provided in such notice sent to City.
Such cure period shall be at least sixty (60) days from the date of City's receipt of such notice. The
City’s subordination provided in this Section 6 shall be subject to City’s rights of notice and right
to cure as provided herein.
Section 9. Covenants Do Not Impair Liens. No violation or breach of covenants,
conditions, restrictions, provisions, or limitations contained in this Agreement shall defeat or
render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security
instrument.
Section 10. Covenants to Run with the Land. Covenanter subjects the Project
(including the Project Site) to the covenants, reservations and restrictions set forth in this
Agreement. The City and Covenanter declare their express intent that the covenants, reservations
and restrictions set forth herein are deemed covenants running with the land and must pass to and
be binding upon Covenanter ’s successors in title to the Project; provided, however, that on the
termination of this Agreement, said covenants, reservations and restrictions must expire. Each and
every contract, deed or other instrument hereafter executed covering or conveying the Project or
any portion thereof must conclusively be held to have been executed delivered and accepted subject
to such covenants, reservations and restrictions regardless of whether such covenants, reservations
and restrictions are set forth in such contract deed or other instrument. Covenanter, by and for itself
and each successor to any interest in the Project, hereby specifically acknowledges and agrees to
be bound by the covenants contained herein.
Section 11. Indemnity and Hold Harmless. Covenantor must defend and provide legal
defense with attorney(s) acceptable to the City, indemnify, and hold harmless the City, their agents,
officials, officers, representatives and employees, from and against all claims, lawsuits, liabilities
or damages of whatever nature arising out of or in connection with, or relating in any manner to
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any act or omission of Covenantor, its agents, employees, and subcontractors, and employees
thereof, pursuant to the performance or non-performance of this Agreement. Covenantor must
thoroughly investigate any and all claims and indemnify the City and do whatever is commercially
necessary to protect the City, its agents, officials, officers, representatives and employees as to any
such claims, lawsuits, liabilities, expenses, or damages arising out of this Agreement. Further,
Covenantor cannot bring any claims, cross-claims, actions or cross-complaints against the City, its
agents, employees or representatives, arising out of any disputes between Covenantor and third
parties as to the City approvals or the issuance of building permits for this Project
Section 12. Controlling Law. This Agreement will be interpreted and construed in
accordance with the laws of the State of California.
Section 13. Compliance with Applicable Laws. Covenantor and City must obey all
Federal, State, and local laws, ordinances and regulations.
Section 14. Attorneys' Fees. In any action to interpret or enforce any provision of this
Agreement, the prevailing party will be entitled to its reasonable costs and attorneys' fees.
Section 15. Incorporation of Recitals and Exhibits. Exhibits “A” through “B” are
attached and incorporated herein by reference. Recitals “A” through “E” are incorporated herein
by this reference.
Section 16. Entire Agreement. This Agreement contains the sole and entire agreement
and understanding of the parties with respect to the subject matter hereof. No representations oral
or otherwise, express or implied, other than those contained herein, have been made by the parties.
[SIGNATURES TO FOLLOW]
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IN WITNESS WHEREOF, City and Covenantor have caused this instrument to be executed on
their behalf by their respective officers hereunto duly authorized as of the dates set forth below
DATED: “City”
CITY OF ROSEMEAD,
a California general law city
By:
Name:
Title:
ATTEST:
Ericka Hernandez, City Clerk
APPROVED AS TO FORM:
Rachel Richman, City Attorney
DATED:
“Covenantor”
7745 Hellman LLC
By:____________________
Name: Chaplon Mu
Title: Principal
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State of California )
County of )
On , before me, , a Notary
Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) 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
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.
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State of California )
County of )
On , before me, , a Notary
Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) 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
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.
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EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
TRACT # 2826 E 40 FT OF W 80 FT OF LOT 107
TRACT # 2826 W 40 FT OF LOT 107
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EXHIBIT “B”
AFFORDABLE UNITS
EXHIBIT “C”
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
City of Rosemead
8836 East Valley Boulevard
Rosemead, California 91770
Attention: City Clerk
SPACE ABOVE THIS LINE FOR RECORDER'S USE
AFFORDABLE HOUSING COVENANT
This AFFORDABLE HOUSING COVENANT ("Covenant") is dated for
identification purposes as of , 20 and is made by 7745 Hellman
LLC ("Owner"). As used herein, the term "Owner" shall be deemed to include: (i) the
foregoing listed individual or individuals; and (ii) the successors and assigns of such
individual or individuals, during the time the successors and/or assigns own or hold an
interest in the Property. This Covenant is made with reference to the following facts:
R E C I T A L S
A. 7745 Hellman LLC is the original owner of certain real property located at
7745 Hellman Avenue, in the City of Rosemead (“Property”).
B. 7745 Hellman LLC applied for developmental entitlements to construct a
fifteen (15) unit development, two (2) of which will be affordable units for very low-
income households (“Project”). I
C. 7745 Hellman LLC submitted a density bonus application for concessions
consisting of a reduced side yard setback from ten (10) to five (5) feet on west side,
increased maximum building height to forty (40) feet, and reduced parking space size and
a waiver/reduction of open space requirements for providing two (2) affordable housing
units for very low-income households from the fifteen (15) residential units at the Project.
D. On , 202_, the City of Rosemead and 7745
Hellman LLC entered into that certain Affordable Housing Agreement (“Master
Agreement”), recorded on , as Instrument No in the
official records of Los Angeles County, which the Master Agreement designated that two
(2) residential units out of an fifteen (15) unit single dwelling development at 7745 Hellman
Avenue, Rosemead, CA 91770, shall be used as affordable housing units for the benefit of
very low-income households within the community.
E. The two (2) residential units is considered an “Affordable Unit” as such
term is defined in the Master Agreement, and the use of the residential units must be limited to
very low-income households as may be required by Health and Safety Code section 50053 (for
rent) and as may be verified by the City from time to time.
DECLARATION AND AGREEMENT
1. Continuing Affordability. Owner agrees and covenants on behalf of itself
and its successors and assigns, that during the term of the Master Agreement:
(a) The designated two (2) units (collectively, “Affordable Units”) on
Exhibit “A” shall be used as Affordable Units, and shall only be occupied by and/or rented
to a Qualified Household, as set forth in the Master Agreement; and
(b) Owner specifically acknowledges, covenants and agrees that any
use of the Affordable Units that is in violation of the requirements set forth in the Master
Agreement may be enjoined by the City of Rosemead and the City shall have the right to
enforce any of the provisions of the Master Agreement or of this Covenant, including but
not limited to, injunctions, constructive trusts, liens, or foreclosure remedies.
2. Subordination.
(a) Subordination. Subject to compliance with the provisions in Section
3, the provisions of this Covenant shall be subordinate to any first lien on the Property held
by an institutional lender or investor (the “Lender”) and shall not impair the rights of
Lender, or Lender’s assignee or successor in interest, to exercise its remedies under the
first lien in the event of default under the first lien by Owner. Such remedies under the first
lien include the right of foreclosure or acceptance of a deed or assignment in lieu of
foreclosure or if the mortgage is assigned to the Secretary of the United States Department
of Housing and Urban Development. After such foreclosure or acceptance of a deed in lieu
of foreclosure, this Covenant shall be forever terminated and shall have no further effect as
to the Property or any transferee thereafter; provided, however, if the holder of the first lien
acquires title to the Property pursuant to a deed or assignment in lieu of foreclosure, this
Covenant shall automatically terminate upon such acquisition of title, provided that (i) City
has been given not less than thirty (30) days written notice of a default under the first lien,
and (ii) City shall not have cured the default under such first lien within the cure period
provided in such notice sent to City. Such cure period shall be at least sixty (60) days from
the date of City's receipt of such notice. The City’s subordination provided in this Section
shall be subject to City’s rights of notice and right to cure as provided herein.
(b) Covenants Do Not Impair Liens. No violation or breach of
covenants, conditions, restrictions, provisions, or limitations contained in this Covenant
shall defeat or render invalid or in any way impair the lien or charge of any HUD, FHA or
FNMA originated mortgage or deed of trust or security instrument.
3. Transfer. No Owner shall cause or permit a transfer of the Property or of an
interest therein to occur without prior written notice to the City. Owner must provide City
with at least 15 days’ advance written notice of any proposed financing that will be secured
by a deed of trust recorded against the Property, which notice must include: (i) reasonable
documentation evidencing the amount of such financing and (ii) the Owner’s calculation of
the current maximum sale price; and (iii) the Owner’s calculation of the current city equity
share (based on such maximum sale price and as authorized by Government Code section
65915(c)(2)). Under no circumstances may the total amount of encumbrances to be recorded
against the Property exceed the current maximum sale price less the current city equity share,
each as determined by City. Within 15 days of receipt of the notice of proposed financing
and reasonable documentation of the amount of such financing and current maximum sale
price and current city equity share, the director will give written consent to the financing if
the proposed financing and the total amount of the proposed encumbrances to be recorded
against the Property do not exceed the amount of the current maximum sale price less the
current city equity share. Each Owner shall cooperate with the City in providing such forms
to proposed purchasers to acknowledge that the Property is subject to the requirements of
the Master Agreement and this Covenant. Failure to observe this requirement will be deemed
a material breach of this Covenant and the Master Agreement.
4. Notice of Default and Option to Purchase. Owner agrees to record in the
Los Angeles County Recorder’s office a request for a copy of any notice of default and any
notice of sale under any deed of trust or mortgage with the power of sale encumbering the
Property as provided in California Civil Code section 2924b. The request must specify that
any notice will be provided to City at the address 8838 East Valley Blvd., Rosemead, CA
91770. Any notice of sale given under Civil Code section 2924f or any service of summons
or other papers in a judicial foreclosure will constitute a notice of intent to sell and City or
its designee may exercise its option to purchase.
5. Remedies; Attorneys' Fees and Costs. Breach of the covenants contained
in this Covenant, the Master Agreement, or any condition of approval underlying such
Covenant or Master Agreement may be enjoined, abated or remedied by the City by
appropriate legal proceeding. In the event that City incurs any attorneys' fees, court costs,
or any other costs or expenses in investigating compliance with or enforcing this Covenant,
the Master Agreement, or any condition of approval underlying such Covenant or Master
Agreement, investigating or defending claims brought by Owner under this Covenant, City
shall be entitled to recover any such fees, costs and expenses from Owner.
6. Rights of City. City has the right, but not the obligation, to enforce all of
the provisions of this Covenant, the Master Agreement, or any condition of approval
underlying such Covenant or Master Agreement. Any amendment to the Covenant shall
require the written consent of City.
7. Term of Covenant. This Covenant shall terminate concurrently with the
termination of the Master Agreement.
IN WITNESS WHEREOF, the Owner has executed this Covenant as of the date
indicated above.
OWNER: (each individual owner must sign and acknowledge below; add more signature lines if necessary)
Name:
State of California )
County of )
On , before me, _ , a
Notary Public, personally appeared
, who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) 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
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.
EXHIBIT “B”
AFFORDABLE UNITS