HomeMy WebLinkAbout2022 - Restrictive Covenant Agreement (Fee Exemption for Low-Income Housing) - Homestead Community Land Trust / City of Tukwila - 20220609000270Instrument Number: 20220609000270 Document:COV Rec: $213.50 Page -1 of 11
Record Date:6/9/2022 11:35 AM
Electronically Recorded King County, WA
When Recorded Return to:
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Attn:
.DOCUMENT TITLE: City of Tukwila Restrictive Covenant Agreement (Fee Exemption for
Low -Income Housing)
GRANTOR: Homestead Community Land Trust, a Washington nonprofit
corporation
GRANTEE: City of Tukwila, a non -charter, optional code Washington municipal
corporation
ABBREVIATED LEGAL: POR NE % OF SE ¼ BAAP ON E LN SD SUBD TH S 1-40-11 W 663.42
FT TO TPOB TH CONIC N 89-52-59 W 219.08 FT TH S 1-40-11 W
260.37 FT TH S 89-52-59 E 216 FT TH N 1-40-11 E 260 FT M/1. TO
'FPOB PER ()CD REC #198404190606 & '111KWILA BLA 1. 14-0075
REC #20150812900005
Complete Legal Description on Exhibit A
TAX PARCEL NO(S): 162304-9060
REFERENCE NO.:
CITY OF TUKWILA RESTRICTIVE COVENANT AGREEMENT
(Fee Exemption for Low -Income Housing)
'VMS RESTRICTIVE COVENANT AGREEMENT (this "Agreement") is entered into as
of the in day of 0vne, , 2022, (the "Effective Date") between. the City of Tukwila, a
non -charter, optional code Washington municipal corporation (the "City") and .Homestead
Community Land Trust, a Washington State nonprofit corporation ("Homestead CET"). The
City and l'Ioinestead CLT are collectively referred to in this Agreement as the "Parties," and
individually as a "Party."
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Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -2 of 11
Record Date:6/9/2022 11:35 AM King County, WA
RECITALS
WHEREAS, the City seeks to promote the development of affordable housing;
WHEREAS, pursuant to TMC 16.26.040, 16.28.040, and 9.48.030 of the Tukwila
Municipal Code ("TMC"), the City shall collect fire, parks, and traffic impact fees from
applicants seeking development approval from the City, such fees which are to be collected from
the applicant at the titne a building permit is issued;
WHEREAS, :Homestead CLT is the fee owner of certain real property located at King
County Parcel No. 1623049060, and as legally described on Exhibit A attached hereto (the
"Property");
WHEREAS, the City and 'Homestead CLT executed a Development Agreement on May
14, 2019 pursuant to Contract No. 19-132,10 establish the regulations related to the development
of the Property; and
WHEREAS, Homestead CET has applied to the city for permits to construct certain
improvements on the Property, including eighteen (18) single-family residences (SFR) of which
thirteen (13) will he Low-lncome Housing as that term is defined under TMC 9.48.010(10),
TMC 16.26.030(11) and TMC 16.28.030(10), such definition which is incorporated in Section 2
of this Agreement (such development, the "Project", and further defined in Section 2 of this
Agreement);
WHEREAS, pursuant to TMC 9.48.125(6)(B), TMC 16.26.120(B)(6) and TMC
16.28.120(B)(6), fire, parks, and traffic impact fees may he reduced for Low -Income Housing
where requested. by a property owner and granted, subject to certain criteria (the "Exemption
Criteria");
WHEREAS, pursuant to TMC 9.48.125(6)(B), TMC 16.26.120(B)(6) and
16.28.120(B)(6), Homestead CLT has timely applied to the City for a reduction in traffic, fire,
and parks impact fees;
WHEREAS, the City has found that the :Project satisfies the Exemption Criteria;
WHEREAS, as generally contemplated by TMC 18.86.030, in exchange for certain
restrictions on the Property, the City has agreed through the Development Agreement to grant
the Project's Affordable Housing Units an exemption from 80% of the applicable transportation,
fire, and parks impact fees and Land Use, Building and :Public Works permit fees (the
"Exemption");
WHEREAS, pursuant to TMC 9.48.125(6)(B), TMC 16.26.120(B)(6)(b), and TMC
1.6.28.120(B)(6)(b), the owner of a property receiving an exemption from impact fees must
record a covenant against such property in accordance with Revised Code of Washington (RCW)
Section 82.02.060(3); and
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Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -3 of 11
Record Date:6/9/2022 11:35 AM King County, WA
WHEREAS, in consideration of the Exemption, and pursuant to those requirements set
forth immediately above, Homestead CLT agrees to the restrictions, covenants and obligations
set forth herein, which will run with and be a burden on the Property and will be binding on any
subsequent purchaser, grantee, owner or lessee and any other person or entity having any right,
title or interest therein and upon their respective heirs executors, administrators, devisees,
successors and assigns of any purchaser, grantee, owner or lessee of the Property.
AGREEMENT
NOW, ThEREFORE, for good and valuable consideration, the receipt and sufficiency
for which are hereby acknowledged, and in consideration of the promises and covenants
contained herein, the parties hereby agree as follows.
Section 1.. Incorporation of Recitals. The foregoing recitals are correct and are hereby
incorporated by reference as though fully set forth herein..
Section 2. Definitions
In addition to other terms defined in in the Code and elsewhere in this Agreement, the
following terms have the meanings set forth below.
Affordability Target means the units to be sold to a person or household whose monthly
housing costs, including utilities other than telephone, do not exceed 30% of the household's
monthly. income.
Area Median Income or AMI means the median gross household income, adjusted for
household size, for King County, as defined and established annually by the U.S. Department of
Housing and Urban Development as the Seattle-Bellevu.e WA FUJI) Metro FMR Area.
Dwelling Units means the dwelling units in the Project used as 1.A.
Low -Income :Housing means housing where monthly costs, including utilities other than
telephone, do not exceed 30% of the resident's household monthly income and where household
monthly income must be 80% or less ofthe King County Median family income adjusted for
family size as reported by the U.S. Department of Housing and Urban Development.
Project means that portion of the Property to be used as single-family residences that are
Low -Income Housing as that term is defined under TMC 9.48.010(10), TMC 16.26.030(11) and.
TMC 16.28.030(10) and related building infrastructure, parking and yard areas, and does not
include any portion of the Property dedicated or otherwise reserved for public use.
Section 3. Statement of Authority. This Agreement is entered pursuant to RCW 82.02.060
and TMC Chapters 9.48, 16.26 and 16.28.
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Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -4 of 11
Record Date:6/9/2022 11:35 AM King County, WA
Section 4. Project Requirements. During the Term of this Agreement, the Homestead C,LT
covenants and agrees to comply with each of the following requirements:
(i) Homestead CLT shall sell the Dwelling Units to households whose income at initial
occupancy is at the Affordability Targets shown in the table below, and otherwise meet
the requirements for Low -Income Housing:
Lot
No.
No.
Bedroom
Affordability
Target
Lot 1
4
Market Rate
Lot 2
3
80% AMI
Lot 3
3
80% AMI
Lot 4
4
Market Rate
Lot 5
4
80% AMI
Lot 6
3
80% AMI
Lot 7
3
80% AMI
Lot 8
4
Market Rate
Lot 9
4
Market Rate
Lot 10
3
80% AMI
Lot 11
3
80% AMI
Lot 12
3
80% AMI
Lot 13
3
80% AMI
Lot 14
3
80% AM I
Lot 15
3
80% AMI
Lot 16
3
Market Rate
Lot 17
4
30% AMI
Lot 18
4
30% AMI
(ii) Homestead CLT shall retain fee simple title to the Property, and hind the Dwelling
Units to perpetual Low Income Housing use by executing binding ground lease
agreements with eligible residents. Homestead CLT has provided the City a copy of its
current form of ground lease agreement, which the City has reviewed and found to be
satisfactory. Upon reasonable request from the City in the future, l'-'1omestead CLT shall
provide the City with a copy of the ground lease agreement then in effect as ofthat future
request.
(iii) Homestead CLT shall not use, nor shall Homestead CLT allow any future lessee of
the Property to use, the L.,ots noted above as being at a certain percentage ofAMI for any
purpose other than .for Low -Income Housing. The Parties agree that use of the Project for
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Instrument Number: 20220609000270 Document:COY Rec: S213.50 Page -5 of 11
RecordU�ate:6/9/2022 11:35 A��D�in����oK��Dt��A -
Low-1ommcHouoing shall he deerned to include some units that are priced at rnarket
rates, as set forth in the above table.
Section 5. Term. This AgreementuhuU be effective upon the date that the final certificate of
occupancy is issued by the City for the Pject and shall terinate on the date that is the ten-year
anniversary thereof or upon the City's receipt of the full traffic, fire and parks impact fee
pursuant to Section 8.2 of this Agreement, whichever occurs .first (the "Term").
Section 6. Reporting. Homestead CLT agrees to submit to the City, or its designee, such
information and reports as City may reasonably require to demonstrate compliance with the
terms o[this Agreement, including but not liniited to: (a) veritication of the purchaser's income
at initial occupancy, (b) household size, (c) Dwelling Unit size, (d) sale price of the Dwelling
Unit, and (c) verification ofcornpliance with Section 7 below.
Section 7. Covenants Run with the Property. l-Eomestead CLT hereby declares its express
intent that, during the Term, the covenants, restrictions, ugrecm.coL and obligations set forth
herein shall be deemed covenants running with the land and shall pass to and be binding upon
successors in title, including any purchaser, grantcc or lessee ofany. portion ofthe Property, any
other person or entity having any right, title, or interest therein and upon their respective heirs,
executors, administrators, devisees, successors and assigns of an.y purchaser, grantee, or lessee of
any portion of the Property. Each and every contract, deed or other instrument hereafter
executed covering or conveying the Property or any portion thereof or interest therein shall
contain an express provision making such conveyance subject to the covenants, restrictions,
charges and easements contained herein; provided, however, that any such contract, dccd or
other inuLronucot shall conclusively be held to have been executed, delivered, and accepted
subject to such covenants, regardless of whether or not such covenants are set forth or
incorporated by refercnce in such contract, deed, or other instrurnent.
Section 8. Default.
8.1 in the event. Homestead. CLT fails to perform or abide by the restrictions of
Section (4)(i) and (ii) of this Agreement, and such failure, to the extent curable, is not cured
within ninety (90) days after delivery of written notice from the City, such notice which shall
include, but not be limited to setting forth the number of Dwelling Units in dc[uuh of such
restrictions (a "Affordability Default Notice"), the City may institute and prosecute any
proceeding at law orequity to abate, prevent or ejoin any such violation or to compel specific
performance by Homestead CLT of its obligations hereunder; provided that, Homestead CLT
shall not be required by any provision herein to evict a tenant. During such 80-dny period,
Homestead CLT shall have the right to cure the default set forth in the /\ffocdubi|ity Default
Notice, including hut not lirnited to by submitting imthe City ureasonable explanation for such.
default, and entering into a written agreement with the City setting forth a plan to effect cure
atid any other conditions of such settlernent.
8.2 In the event that Homestead CLT converts the Dwelling Units, or allows the
[)vvc||ing Units to be coovedcd, to a use other than for Low -Income Dnuaing, in violation of
Section (4)(iii) of this Agreement, and such conversion, to the extent curable, is not cured within
{srwzo26/54.noc;2//ar,00000x)Restrictive Covenant Agreement— Homestead Community /uo Trust Page 5m///
Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -6 of 11
Record Date:6/9/2022 11:35 AM King County, WA
ninety (90) days after delivery of an Affordability Default Notice, then the party who has so
converted the Dwelling Units shall be liable to the City for the full amount of development fees,
and traffic, fire ancl parks impact fees attributable to those particular Dwelling Units so
converted, to be calculated based on the fee schedules in effect at the time of such conversion.
Upon such payment, this Agreement shall terminate and be of no further force and effect with
respect to those particular Dwelling Units so converted. Upon receipt of payment of such fee,
the City will promptly record a termination of this Agreement or provide Homestead CLT with
such other evidence of termination of this Agreement as 1-lomestead CIAshall request.
Section 9. Other.
9.1 Severability. The invalidity of any clause, part or provision of this Agreement
shall not affect the validity of the remaining portions hereof.
9.2 Notices. All notices to be given pursuant to this Agreement shall be in writing
and shall be deemed given when mailed by certified or registered mail, return receipt requested,
to the parties hereto at the addresses set forth below, or to such other place as a Party may from
time to time designate in writing:
Owner:
City:
Homestead CLI
c/o Kathleen Hosfeld
412 Maynard Ave S, Suite 4201
Seattle, WA 98104
City of Tukwila
City Clerk
6200 Southcenter Boulevard
Tukwila, WA 98188
9.3 Governing Law, Venue. This Agreement is governed by the laws of the State of
Washington. Venue for any action shall be in King County Superior Court.
9.4 Successors and Assigns. This Agreement is binding upon and will inure to the
benefit of the Parties and their respective permitted successors and assigns.
9.5 Modification; Headings. This Agreement. may not be modified or amended
except by an instrument in writing signed by the Flomestead CUE and the City. The headings in
this Agreement are for the purpose of reference only and do not limit or otherwise affect any of
the terms hereof.
9.6 No Third -Party Beneficiaries, No Dedication. This Agreement is not intended
to confer upon any person other than the Parties to this .Agreement any rights or remedies under
this Agreement. Nothing in this Agreement shall be deemed to be a gift or dedication of any
fEFM2626154.DOC„2/13175.000001/1.R.estrietive Covenant Agreement Homestead Community Land Trust Page 6 of It
Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -7 of 11
Record Date:6/9/2022 11:35 AM King County, WA
portion of the real property referred to herein to the general public nor for any public use or
purpose whatsoever.
9.7 Authority. The Parties each represent and warrant that they have full power and
actual authority to enter this Agreement and to carry out all actions required of them by this
Agreement. All persons are executing this Agreement in their representative capacities and
represent and warrant that they have full power and authority to bind their organizations.
9.8 Entire Agreement. This Agreement represents the entire agreement of the Parties
with respect to the subject matter hereof. There arc no other agreernents, oral or written, except
as expressly set forth herein and this Agreement. supersedes all previous agreements oral or
written.
9.9 Further Action. Each Party agrees to execute any and all instruments,
documents and resolutions as may be reasonably necessary to effectuate the covenants, terms,
conditions and provisions contained herein.
9.10 Matters of Record. This .Agreement is subject to all existing easements,
licenses, encumbrances, title defects, matters of record, reservations and conditions affecting the
Property.
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Instrument Number: 20220609000270 Document:COV Rec: $213.50 Page -8 of 11
Record Date:6/9/2022 11:35 AM King County, WA
IN WITNESS WHEREOF, the parties have caused this Restrictive Covenant Agreement to be
signed by their respective, duly authorized representatives, as of the day and year first written
above.
City of Tukwila,
a non-chawif,,optiorla
By
Allan Ekberg
Mayor
Washington municipal corporation
APPROVE[) AS TO FORM:
By
cs.--)Areeig 6-17(c4,tetr-,
City Attorney
STATE OF WASHINGTON
) ss
COUNTY OF KING
Onthisthis , day of 1401- , 2022, before me personally appeared Allan Ekberg to
me known to be the Mayor of the City of Tukwila and acknowledged said instrument to be the free and
voluntary act and deed of said entity, for the uses and purposes therein mentioned, and on oath stated that
she was authorized to execute said instrument.
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year
first above written.
P1444. -
98721
4160
VVAS4
z lure of Notary)
(Legibly Pr lit or Stamp Name ofNotary)
Notary public in and for the State of Washington
My appointment expires
{EFM2626154.DOC;2/13175 000001/ Restrictive Covenant Agreement — Homestead CU'
Signature Page 1 of 2
Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -9 of 11
Record Date:6/9/2022 11:35 AM King County, WA
Homestead Community Land Trust,
a Washington nonprofit corporation
STATE OF WASHINGTON
) ss.
COUNTY OF KING
I certify that 1 know or have satisfactory evidence that K.011\VV1 R -4A is the person who
appeared before me and said person acknowledged that she signed this instrument, on oath stated
that she was authorized to execute the instrument and acknowledged it as the
7), ce,,$,;;A:),-- of , to be the free and voluntary act such
nonprofit corporation on behalf of such company on behalf of such partnership for the uses and
purposes mentioned in the instrument.
DATED:
•
14
mum%
( EFM2626154.DOC2/13175 00000 I / )
rint Name)
Residing at
My appointmentexpires: „.„
Restrict ive Covenant Agreement - Homestead CLT S ignature Page 2 of 2
Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -10 of 11
Record Date:6/9/2022 11:35 AM King County, WA
EXHIBIT A
LEGAL DESCRIPTION
THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF
SECTION 16, TOWNSHIP 23 NORTH, RANGE 4 EAST, W.M., IN KING COLINIFY,
WASHINGTON, DESCRIBED AS FOLLOWS:
THE EAST 216 FEET IN WIDTH OF THE FOLLOWING:
BEGINNING AT "FFIE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE
SOUTHEAST QUARTER;
TIIENCE NORTHERLY ALONG TI IE EASTERLY LINE -111EREOF, 695 FE- EF TO THE
TRUE POIN"F OF BEGINNING OF THE, TRACT HEREIN DESCRIBED;
-FHENCE WESTERLY, ALONG A LINE PARALLEL TO THE NORTHERLY LINE OF
SAID SUBDIVISION, 620 FEET, MORE OR LESS, TO THE EASTERLY LINE OF -111E
ORIGINAL, OLD MILITARY ROAD; THENCE SOUTHEASTERLY ALONG SAID
ORIGINAL I,INE, TO ITS INTERSECTION WITH TUIE, EASTERLY LINE OF TI IE NEW
LOCA'FION OF MILITARY ROAD AS NOW LAID OUT AND ESTABLISHEI);
'ILIENCE SOUTHEASTERLY ALONG SAID EASTERLY LINE OF NEW LOCATION OF
MILITARY ROAD, 101TS INTERSECTION WITH A LINE 300 FEET SOUTH OF AND
PARALLEL TO TI IE FIRST COURSE OF TFIIS DESCRIPTION;
THENCE EASTERLY ALONG SAID PARALLEL, LINE, 510 FEET, MORE, OR LESS, TO
THE F:',AS'FERLY LINE OF SAID NORTHEAST QUARTER OF THE SOUTHEAST
QUARTER; TILE NORTHERLY ALONG SAID EASTERLY LINE, 300 FEET, MORE
OR LESS, TO 11 IF -FRUE POINT OF BEGINNING; EXCEPT THAT PORTION, IF ANY,
LYING NOR-FHERLY OF 1111 FOLLOWING DESCRIBED LINE:
BEGINNING AT A POINT ON "1HE EAST LINE OF SAID sECTION 16, SOU 111 01°40'11"
WEST 673.42 FEET FROM THE EAST QUARTER CORNER THEREOF;
THENCE NORTH 89°5259" WEST 619.26 FEET, MORE OR LESS, TO THE EASTERLY
I,INE OF Mil. FFARY ROAD AND TERMINUS OF SAID DESCRIBED LINE;
TOGETHER WITH THAT PORTION OF THE NORTHEAST QUARTER OF THE
SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 23 NORTH, RANGE 4 EAST,
W.M., IN KING COUNTY, WASI1INGTON, DESCRIBED AS FOLLOWS:
BEGINNING Al A POINT ON TI1E EAST I,INE OF SAID SECTION 16, DISTANT SO
01°40'1 I" WEST, 663.42 FEEF FROM 'THE EAST QUARTER CORNER "FHEREOF;
-THENCE CONTINUING SOUTH 01'40'11" WEST 10 FEE F;
TIIENCE NORTH 89'52'59" WEST 619.26 FEET, MORE OR LESS, 10 11 IL
NOR IHEASTERLY MARGIN OF MILITARY ROAD AS ESTABLISHED ON JULY 3,
1962;
THENCE, NORTHWESTERLY ALONG SAID MARGIN TO A POINT WHICH I3EARS
NORTH 89'52'59" WEST FROM TEIE POINT OF BEGINNING;
THENCE SOUTH 89'52'59" EAST TO TIIE POINT OF BE(JINNING;
EXCEPT THA'l PORTION DESCRIBE') AS FOLL,OWS:
COMMENCING AT THE EAST QUAR`FER CORNER OF SAID SECTION 16;
THENCE SOUTH 01'40'11" WEST ALONG THE EAST LINE OF SAID SUE3DIVISION
673.42 FELT;
THENCE NORTH 89'52'59" WEST 216.08 FEET 10 A POINT 216 FEET FROM SAID
EAS"F LINE, AS
EFM2626 1 54 DOC;2/1 31 75 000001/
Restrictive Covenant Agreement - Homestead CLT Exhibit A
Instrument Number: 20220609000270 Document:COV Rec: S213.50 Page -11 of 11
Record Date:6/9/2022 11:35 AM King County, WA
MEASURED AT RIGHT ANGLES;
THENCE CONTINUING NORTH 89°5259" WEST 3.00 FEET TO TI1E TRUE POINT OF
BEGINNING;
THENCE CONTINUING NORTH 89°52'59" WEST 395.57 FEET, MORE OR I ,ESS, TO THE
LAS [ER[ LINE OF MILITARY ROAD;
IENCE NORTH 19°4542" WE ALONG SAID EASTERLY LINE OF MILITARY ROAD
12.73 FEET;
THENCE SOUTH 89°42'01" EAST 400.19 FEE:1';
THENCE SOUTEI 01°40'11" WEST 10.70 FEET TO THE TRUE POINT OF BEGINNING.
SITUATE: IN TIJE COUNTY OF KING, STATE OF WASHINGTON.
I5FM2626154 1)OC;2/13175 000001/
Restrictive Covenant Agreement - Homestead CET Exhibit A