Attachment 8 - Density Bonus Memorandum of UnderstandingHOUSING INCENTIVES MEMORANDUM
WITH HOUSING & COMMUNITY DEVELOPMENT
AFFORDABLE FOR-SALE HOUSING DEVELOPMENT
Date of this Agreement: October 28, 2023
Developer Name: Landsea Homes of California LLC, a Delaware limited liability
company
Developer Address: 7525 Irvine Center Dr. Suite 200. Irvine, CA 92618
Project Address: 2952 and 2960 W. Lincoln Avenue, Anaheim, CA 92804
Name of Development: Nolin II
Number of Units: Total units 44 Affordable units Moderate Income (10%)
Type of Development: Single Family Detached Condominiums/Townhomes X_
Affordable Program: Housing Incentives X
The City of Anaheim may grant a density bonus and/or other incentives (collectively referred
to as a “Housing Incentive”) for an Affordable For-Sale Housing Development, pursuant to
Chapter 4, Section 65915 of the California Government Code and Title 18, Chapter 18.52 of
the Anaheim Municipal Code. Upon approval of a Density Bonus, the City of Anaheim shall
enter into a Housing Incentives Agreement with the developer and/or owner (hereinafter
referred to as “Developer”) of the Affordable For-Sale Housing Development pursuant to the
requirements listed of Chapter 18.52.
This Housing Incentives Memorandum with Housing & Community Development, executed by
the Developer and the Anaheim Housing & Community Development Department, shall serve
as a memorandum acknowledging the basic terms that will be included in the Housing
Incentives Agreement and shall be submitted to the Planning Department by the Developer at
the same time the Developer applies for the Housing Incentives.
Prior to final map approval, or where a map is not being processed, prior to the issuance of
any grading or building permits for an Affordable For-Sale Housing Development, the
Developer shall execute and record against the parcel or parcels designated for the
construction of affordable units a Housing Incentives Agreement, and if required by the
Housing Incentives Agreement, a declaration of covenants, conditions, and restrictions
(“CC&R’s”) that sets forth the terms and conditions of approval of said Housing Incentives.
The Housing Incentives Agreement/CC&R’s shall be binding on the Developer and all future
owners and successors in interest thereof.
Developer acknowledges that the Housing Incentives Agreement/CC&R’s will include, but
not be limited to, the following terms and conditions:
1.That five (5) of the total number of units, 10% of 44, shall be Affordable Housing Units.
Affordable Housing Units shall consist of any unit for which an initial sale:
a)is made to a Moderate Income Household,
b)at an Affordable Housing Cost,
The Affordable Housing Units shall have price restrictions as follows: two (2) one-
bedroom Housing Units, shall be sold at prices consistent with Affordable Housing Cost
calculations for Moderate Income Households as noted below; three (3) two-bedroom
Housing Units, shall be sold at prices consistent with Affordable Housing Cost
calculations for Moderate Income Households as noted below.
ATTACHMENT NO. 8
Landsea Homes of California LLC, a Delaware limited liability company
Page 2 of 3
Household income limits for Moderate Income Households (81%-120% of the area
median income for Orange County, adjusted for appropriate household size) are as
established by the California Department of Housing and Community Development
(HCD).
The Affordable Housing Cost for Moderate Income Households shall be calculated as
the product of 35% times 110% of the area median income for Orange County adjusted
for the household size appropriate for the unit (Health & Safety Code Section
50052.5(b)(4).
Household size appropriate to the unit is the number of bedrooms plus one as derived
from the standards of California Redevelopment Law.
Qualification of prospective Moderate Income households shall be based on actual-
household income limits.
2. That the affordable units shall be constructed concurrently with other units unless
both the City and the applicant agree within the Housing Incentives Agreement to an
alternative schedule for development.
3. That the affordable units shall be interspersed throughout the Affordable For-Sale
Housing Development, as denoted on the attached Affordable Housing Unit
Allocation Plan.
4. That the term of affordability shall be for a minimum period as required by a construction
or mortgage financing assistance program, mortgage insurance program, or law.
5. That the Occupancy of each unit in the Affordable For-Sale Housing Development shall
not exceed two (2) persons per bedroom plus one (1) person.
6. That Anaheim Housing & Community Development Department shall be afforded a first
right of refusal in referring eligible buyers to affordable units:
a) Moderate-Income Households, who have been displaced from their residences
due to programs or projects implemented by the Anaheim Housing &
Community Development Department;
b) Moderate-Income Households, who have applied for and received homebuyer
(financial) assistance form the Anaheim Housing & Community Development
Department;
c) Moderate-Income Households, as applicable, who are listed on the Anaheim
Housing & Community Development Department interest list for affordable
housing and who live and/or work in Anaheim; and
d) Moderate-Income Households, who live and/or work in Anaheim.
7. That the owner of the Affordable For-Sale Housing Development agrees to comply with
all reporting requirements under the Affordable Housing Development Program.
Landsea Homes of California LLC, a Delaware limited liability company
Page 3 of 3
8. The Housing Incentives Agreement shall include the requirement for an equity sharing
agreement, whereby the initial buyer of each of the Density Bonus units shall enter into
an agreement with the City requiring each such initial buyer to pay to the City upon the
initial resale of each Density Bonus unit the City's proportional share of appreciation.
By signing and returning this Housing Incentives Memorandum with Housing & Community
Development, as the Developer and owner of the Affordable For-Sale Housing Development,
I concur and agree to all of the terms and conditions set forth above and agree to execute a
Housing Incentives Housing Agreement.
________________________________ _______________
Tim Blaine Date
Receipt Acknowledged:
By: _______________
Grace Ruiz-Stepter Date
Housing & Community Development Director
Attachment: Affordable Housing Unit Allocation Plan