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Dennis Zaragoza, Esq. (SBN 084217)
Law OFFICES OF DENNIS ZARAGOZA
P.O. Box 15128
San Francisco, CA 94115
Telephone: (510) 375-7238
e-mail: lawzarsf@gmail.com
Attorney for Defendant IRIS CANADA
ELECTRONICALLY
FILED
Supertor Court of California,
County of San Francisco
10/21/2016
Clerk of the Court
BY:BOWMAN LIU
Deputy Clerk
SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF SAN FRANCISCO — UNLIMITED
PETER M. OWENS, an individual, CASE NO. CGC-14-543437
CAROLYN A. RADISCH, an individual,
STEPHEN L. OWENS, an individual, DECLARATION OF DENNIS ZARAGOZA
IN SUPPORT OF STAY PENDING APPEAL
Plaintiffs, — CCP Sec. 917.4
v. Date: November 1, 2016
Time: 2 p.m.
Dept. 502
IRIS CANADA, an individual, OLD Judge: Hon. A. James Robertson If
REPUBLIC TITLE COMPANY, and Does 1 to
10, inclusive,
Defendants.
I, DENNIS ZARAGOZA, declare:
1 J am an attorney at law licensed to practice before the courts of the State of
California, and am attorney of record for Defendant Iris Canada.
2. I substituted into this case as counsel of record on June 8, 2016.
3. Those records attached to Defendant Iris Canada’s Request for Judicial Notice are
true and correct copies as taken from the online services or my records.
4, In connection with my investigation of this case, I requested a copy of those
documents that the Plaintiffs were requesting that Iris Canada sign. My request for the documents
was sent to Mr, Chernev on June 16, 2016, On June 28, 2016, he responded by sending me three
Declaration of Dennis Zaragoza re: Motion for Staydocuments by e-mail. True and correct copies of those documents as well as the e-mail
communications have been marked as Exhibit A to this Declaration, One of the documents in
question is an “Owner Affidavit,” which basically would require to state that Iris Canada is “an
owner” of the property, under penalty of perjury, when this statement is not true. One of the other
documents is titled “Applicant Statement.” Like the first document, this document must also be
signed under penalty of perjury and identifies the signer as an owner of the property. (Page 2 of
“Applicant Statement.) The third document again identifies Iris Canada as a “Property Owner.” Iris
Canada is not an owner of the property. She is or was an owner of a life estate.
5. Given the claimed damages of $600 in waste as compared to the attorney’s fees
incurred, in my opinion, the amount of attorney’s fees incurred are completely out of proportion to
the damages. It serves no business purpose to spend money in this fashion unless there is a second
agenda. In my opinion, the purpose of this lawsuit has been to compel Iris Canada to sign
documents that would cause her to perjure herself and waive her right of first refusal.
I declare the foregoing to be true under penalty of perjury under the laws of the State of
alifornia. Executed this 20" day of October, 2016, at San Francisco, California.
(BD.
Dennis Zaragoza”
Declaration of D. Zaragoza re: Motion for Stay
maeExhibit A: Mark Chernev mar
Re: Iris Canada
June 28, 2016 at 3:48 PM
: Dennis Zaragoza lawz
Dennis,
Sorry for the delay, | had to wait for the updated paperwork. Attached are three sets of documents,
two of which Iris Canada would need to sign now and the remaining declaration would need to be
signed in approximately a year from now.
If you have an offer you would like to make which addresses the terms our clients have discussed,
namely agreeing to comply with the condo paperwork requirements and waiver of the legal fee
requirement, please forward me your offer. | will discuss it with Peter Owens.
This condo conversion and preservation of Iris Canada’s life estate issue is really not that
complicated. She has been informed by numerous attorneys that it will have no impact on her life
estate rights, and | am certain your specialist will agree.
Mark B. Chernev
Zacks, Freedman & Patterson, P.C.
235 Montgomery Street, Suite 400
San Francisco, CA 94104
p (415) 956-8100
f (415) 288-9755
www.zfplaw.com
From: Dennis Zaragoza
Date: Thursday, June 16, 2016 at 12:23 PM
To: Mark Chernev
Subject: Re: Iris Canada
Mark,
Thank you for your offer. | have contacted a specialist to see if he has the time to offer an
opinion on the issue.
If you have the papers scanned, could you please send them to me.
Thank you,
Dennis Zaragoza
LAW OFFICES OF DENNIS ZARAGOZA
P.O. Box 15128
San Francisco, CA 94115
Telephone: (510) 375-7238
E-mail: lawzarsf@gmail.com
On Wed, Jun 15, 2016 at 2:44 PM, Mark Chernev wrote:
Dennis,As a courtesy | contacted the Sheriff’s office on Iris Canada’s behalf informing them of the 30 day
stay she has.
You had mentioned to me earlier that you needed time to review the condo paperwork to be
assured there will not be any consequences to Canada’s life estate, but you have not asked me
for a copy of them to review.
Do plan on asking me for a copy to review?
Mark B. Chernev
Zacks, Freedman & Patterson, P.C.
235 Montgomery Street, Suite 400
San Francisco, CA 94104
Owner Affidavit:
No Unlawful Evictions of Tenants Occurred After Application
(Affidavit Required tor EACH owner)Owner Affidavit:
No Unlawful Evictions of Tenants Occurred After Application
(Affidavit Required for EACH owner)
Assessor's Block Lot
Address
I, , hereby certify under penalty of perjury that the
(Print Name)
following is true and correct to the best of my knowledge:
1) 1am an owner of this property;
2) Any tenant who vacated any unit after the time of submittal of my Condominium Conversion Application,
did so voluntarily, or if an eviction or eviction notice occurred it was not pursuant to:
a) Administrative Code Sections 37.9(a)(8), 37.9(a)(9), 37.9(a)(10), 37.9(a)(12), 37.9(a)(13); or
b) Administrative Code Sections 37.9(a)(11) or 37.9(a)(14), unless the original tenant reoccupied the
unit after the temporary eviction;
3) If any additional person has entered into contract or has been offered exclusive right to occupy any unit in
the building as a tenant after submittal of my Expedited Conversion Application, | have complied with all
applicable provisions of San Francisco Subdivision Code Section 1396.4 including the offer of lifetime
lease;
4) Any contract or option to sell or transfer any unit at any time prior to recording of the final subdivision map
or parcel map has complied with the provisions of San Francisco Subdivision Code Section 1396.4(g).
l understand that | am affirming under penalty of perjury to the truthfulness of the claims made in this
affidavit and that the punishment for knowingly making a false statement may include denial of the
condominium conversion subdivision, fines, and/or imprisonment. | understand that in the event that a
person becomes a tenant before my map is recorded | am required to notify DPW and shall be required to
make an offer of a life time lease to said tenant prior to the map recording.
Date: Signature
State of
County of
On a before me, , Notary Public, personally
appeared. ie , who proved to me
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 (Seal)San Francisen
Applicant Statement
0843-015
668-678 Page Street, San Francisco, CA 94117
Assessor’s Parcel Number:
Property Address:
Owner Information
Pte i, ns nt Ga A Rath, St. ns,
668-678 Page Street, San Francisco, CA 941 17
Wn Atel FAH A MM, SpenreF I Jones, ReeHiny Hira, Consignor ean and tine Man Woah, he Canada
Name(s):
Address:
Phone:
Email:
Application Contact (if different from Owner)
Cam Perridge c/o Sirkin and Associates
Name(s): 7 Ee eet es Je5 ae
Aaatel 388 Market Street, suite 1300, San Francisco CA 94111 A
tenet (415) 839-6407
et Cam@ticlawyers.com _
Firm or Agent Preparing Subdivision Map
Vara Land Surveying
Name(s): oe a
Faeroe: 912 Cole Street #123, San Francisco CA 94117 |
Phone: (415) 871-5283 SSS
Ea kateandersonpls@gmail.com
ne
6
Number of Units in Project:
1
Number of Tenant Occupied Units:
Choose One:
Pace
ora
Pieces =
WIGS His LJ
Number of residential: Number of residential: __
Number of commercial: ___ Number of commercial: __San Francisco Public
1 (We) declare, under penalty of perjury, that | am (we are) the owner(s) [authorized agent of the owner(s)] of
the property that is subject of this application, that the statements herein and in the attached exhibits present
the information required for this application, and the information presented is true and correct to the best of
my (our) knowledge and belief.
Iris Canada
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name DateSan Franciseur
Form 1
Bullding History, Statement of Repairs & Improvements, Occupants, and Proposed Prices
Assessor’s Parcel Number: 9843-015
Property Address: 668-678 Page Street, San Francisco, CA 94117
Item No. 6 — Building History
No information known except for as detailed on Report of Residential Record
Item No. 7 — Statement of Repairs & Improvements
nla
Item No. 8 — List of occupants, their apartment numbers, vacant units, and owners and tenants who intend to purchase
Be cee cae yee tito Cueva ULUAVE Costa mee Cla Reset es You
One Geoffrey Pierce 668 OC) ves [1 no & ves O no
Two Iris Canada at 670 O vs O no | ves O no
| Three | Carmen Sutter and Min-Si Wang 672 Clovs O no [O yes & no
Four | Christopher Beahn & Christine flan Beahn 674 O ves & no yes [I no
Five _| Alexander E. Apke & Ana M. Munoz 676 O yes no yes [J NO
Six Michel Bechirian & Niloo Tehranchi 678 Ol yes &l no | & ves C1 no
Item No. 9 - Six year occupancy history
ere Dirac CEiione ee OT ee ntim acc
668 09/2008-present Geoffrey Pierce 0-0 na
670 06/1990-present ris Canada 0-0 nla
672 01/2016-present Carmen Sutter $2,125 nla
8/2015-present Min-Si Wang $2,125 nla
09/2013-8/2015 Helen Ma $2,125 moved of own volition
09/2013-12/2015 Stephanie Cheung $2,125 moved of own volition
03/2009-08/2013 Spencer Jones, Tyler Barrick 0-0 moved of own volition
674 10/2008-present Christopher Beahn & Christine Han Beahn 0-0 nla
676 7 05/2010-present Alexander E, Apke & Ana M. Munoz 0-0 nla
678 06/2003-present Michel Bechirian & Niloo Tehranch 0-0 nlaSan Francisco Public Wi
Are there any evictions associated with this building since May 1, 2005? [Sec. 1396.2, 1396.4(10)]
Clyes J NO Ifyes, provide details:
Item No. 10 — List of number of bedrooms, square feet, current rental rate, and proposed sales prices
THAR cme ene eeu Pots ae GC aati icelnwace
668 2 4,300 0-0 $1,800,000
670 2 [1,300 0.0 $1,800,000
672 2 1,300 $4250 $1,800,000
674 2 1,300 7 0-0 $1,800,000
676 2 1,300 0-0 $1,800,000
678 2 1,300 0-0 $1,800,000
Item No. 11 — List the permit number(s) of the building permit application filed in connection with the proposed use of this
property that is/are not listed in the 3R Report in the space below
#t See # 7 # # ae #
lris Canada
Signature of Applicant Printed Name Date
Signature of Applicant
Printed Name
Signature of Applicant
Printed Name
Signature of Applicant
Printed Name
Datedet Francisca Public Works
Form 3
Acknowledgment of Fees
0843-015
Assessor’s Parcel Number:
Property Address:
Please read the statements below and provide your signature at the bottom of the page.
1. |understand that the Subdivision and Mapping application fees are due at the time of application submittal
2. | understand that the Expedited Conversion Program fee will be in addition to the current Subdivision and Mapping
application fees
3. Within three (3) days after deeming my application submittable, San Francisco Public Works will notify me regarding the
fees due under the Expedited Conversion Program. All fees are due and payable at that time.
Iris Canada
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name DateSan Franc
Form 4
Owner's Release of Interest in Common Areas
0843-015
Assessor’s Parcel Number:
Property Address:
In accordance with section 1323(a)(6) of the San Francisco Subdivision Code, this is my statement Unal neither | nur any of my agents:
shall retain any right, title or interest in any common area or areas or facilities except those common areas in which | might retain
any individual interest by virtue of ownership of one or more of the individual units.
Iris Canada
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name DateSan Francisea Public Warks
Form7
Summary of Tenant Contacts
0843-015
Assessor’s Parcel Number:
Property Address:
Article 9 Section 1381(a) (4)(D) of the San Francisco Subdivision Code requires subdividers to submit with condominium conversion
application a summary of tenant contacts including all meetings held with tenants and all information provided to them about the
project and their own options.
PE SCLe eel stlas
6/28/2016 ‘Owner of unit 672 provided their tenant with a “notice of proposed conversion” (attached)
The undersigned hereby certifies that he/she has recorded all tenant interactions as required by the San Francisco Subdivision Code.
lris Canada
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Datesco Public Works
Form 8A
Subdivider’s Statement and Commitment Regarding Notice to Existing Tenants
(Sec, 1384 (a) (6)(A) & See, 1381(a) (6)(C)]
0843-015
Assessor’s Parcel Number:
Property Address:
The undersigned subdividers hereby certify that he/she has given notices required by the San Francisco Subdivision Code Section
1381(a)(6) to all current lessees or tenants and will give such notices to those who occupy after submission of the application packet
for conversion. 7
Iris Canada
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant : Printed Name DateSubdivider’s Statement and Commitment Regarding Notice to New Tenants
(Sec. 1381(a)(6)(B) & Sec. 1381(a)(6)(C)]
0843-015
Assessor’s Parcel Number:
Property Address:
Form 8B
The undersigned subdividers hereby certify that he/she will give notices required by the San Francisco Subdivision Code Section
1381(a)(6) to all current lessees or tenants including those who occupy after submission of the application packet for conversion.
lris Canada
Signature of Applicant
Signature of Applicant
Signature of Applicant
Printed Name Date
Printed Name Date
Printed Name Date
Signature of Applicant
Printed Name
DateSan Francisco Public Works
Form 9
Subdivider’s Commitment Regarding Notice of the Tenant’s Right of First Refusal to Purchase
[Sec, 1387]
; 0843-015
Assessor’s Parcel Number:
Property Address:
‘eaneouusosauaa
The undersigned Subdividers hereby certify that the present tenant or tenants al the date of filing of the application for a Tentative
Map of any unit to be converted or, in the event of a voluntary vacation, or eviction for cause, the tenant or tenants in occupancy at
the date of recording of the Parcel Map (or in the case of 5-6 unit buildings, at the date of issuance of the State Department of Real
Estate’s Final Subdivision Public Report) shall be given a nontransferable contract right to purchase the unit occupied at a price no
greater than the price offered to the general public, as required by San Francisco Subdivision Code Section 1387.
Iris Canada
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name DateSan F
lic Werks
Form 10
Proposition “M” Findings Form
The Eight Priority Policies
of Section 101.1 of thy Sun Franciscu Planning Code
Date:
City Planning Case No:
Assessor’s Parcel Number: 084
Property Address: 7 et
Proposal: Condo Conversion
EIGHT PRIORITY GENERAL PLAN POLICIES
As a result of the passage of Proposition M (Section 101.1 of the.San Francisco Planning Code), findings that demonstrate
consistency with the eight priority policies of Section 101.1 must be presented to the Department of City Planning as part of your
project application review for gencral conformity with San Francisco’s General Plan.
Photographs of the subject property are required for priority policy review and must be submitted as part of the application.
INSTRUCTIONS TO APPLICANTS: Please present information in detail about how your application relates to each of the eight priority
policies listed below. The application will be found to be incomplete if the responses are not thorough. Use a separate document
and attach if more space is needed.
i That existing neighborhood-serving retail uses be preserved and enhanced and future opportunities for resident
employment in and ownership of such business be enhanced;
The proposal will have no negative or positive effect on existing neighborhood-serving retail uses.
2. That existing housing and neighborhood character be conserved and protected in order to preserve the cultural and
economic diversity of our neighborhood;
The proposal will have no negative or positive effect on existing housing and neighborhood character.
3. Thal the City’s supply of affordable housing be preserved and enhanced;
The proposal will have no negative or positive effect on the City's supply of affordable housing.Sait Francise:
4. That commuter traffic not impede Muni transit service or overburden our streets or neighborhood parking;
The proposal will have no negative or positive cffect on Muni transit service, traffic or parking.
5. That a diverse economic base be maintained by protecting our industrial and service sectors from displacement due to
commercial office development, and that future opportunities for resident employment and ownership in these sectors be
enhanced;
The proposal does not involve commercial office development and will have no negative or positive effect
on future opportunities for resident employment and ownership in our industrial and service sectors
6. That the City achieve the greatest possible preparedness to protect against injury and loss of life in an earthquake;
The proposal will have no negative or positive effect on earthquake preparedness.
7. That landmarks and historic buildings be preserved; and
The proposal does not involve changes to existing buildings.
8. That our parks and open space and their access to sunlight and vistas be protected from development.
The proposal will have no negative or positive effect on parks and open space and their access to sunlight
and vistas.
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name DateSignature of Applicant Printed Name Date
Signature of Applicant Printed Name DateSan Francisca Public Works
Form 12
Owner’s Affidavit
Eviction of Senior, Disabled, or Catastrophically Ill Tenant
Compliance with Section 1396,2(b) of the San Francisco Subdivision Code
Required for all owners of record
0843-015
Assessor’s Parcel Number:
Property Address: Se eas
_ Iris Canada
print name
, herby certify under penalty of perjury that the following is true and
correct to the best of my knowledge:
Since May 1, 2005, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8), 37.9(a)(10), 37.9(a)(11), or
37.9(a)(13) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if such an eviction took place,
each unit in the building was occupied by a separate owner of record on April 4, 2006. For purposes of the above statement, a
“senior” shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of issuance of
the eviction notice; a “disabled” tenant is defined as a person who is disabled within the meaning of Title 42 U.S.C. Section
12102(2)(A); and a “catastrophically ill” tenant is defined as a person who is disabled as defined by above, and who is suffering from
a life threatening illness as certified by his or her primary care physician.
1 understand that | am affirming under penalty of perjury to the truthfulness of the claims made in this affidavit and that the
punishment for knowingly making a false statement may include denial of the condominium conversion subdivision, fines, and/or
imprisonment.
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name DateSan Francisca Public Works.
Anotary 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
County of
On. _before me, Notary Public, personally appeared
7 , 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 (seal)San Francis
Form 13
Owner's Affidavit
Eviction of Tenants
Compliance with Section 1396,2(a) of the San Francisco Subdivision Code
Required for all owners of record
Date: ee oo.
Assessor’s Parcel Number: 9843-015 _
Property Address:
, Iris Canada
print name
___» herby certify under penalty of perjury that the following is true and
correct to the best of my knowledge:
Since May 1, 2005, two or more tenants occupying separate units have not been evicted under San Francisco Administrative Code
Section 37.9(a)(8), 37.9(a)(10), 37.9(a)(11), or 37.9(a)(13), or if such evictions took place, each unit in the building was occupied by a
separate owner of record on April 4, 2006.
| understand that ! am affirming under penalty of perjury to the truthfulness of the claims made in this affidavit and that the
punishment for knowingly making a false statement may include denial of the condo!
imprisonment.
m conversion subdivision, fines, and/or
Signature of Applicant Printed Name Date
Signature of Applicant Printed Name DateA 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
County of
‘on _before me, __ 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 offi
seal.
Signature __ (seal)Free Recording Requested Pursuant to
Government Code Section 27383
When Recorded Mail To:
Office of the City and County Surveyor
1155 Market Street, 3rd Floor
San Francisco, California 94103
Attn: Director
Assessor’s Block 0843 Lot 015
Space Above This Line For Recorder’s Use
AGREEMENT TO PROVIDE A LIFE TIME LEASE UNIT BETWEEN
THE CITY AND COUNTY OF SAN FRANCISCO AND
[PROPERTY OWNER(S)|
THIS AGREEMENT TO PROVIDE A LIFETIME LEASE UNIT(s) (“Agreement”)
dated for reference purposes only as of this day of » 20 , is by and
between the CITY AND COUNTY OF SAN FRANCISCO, a political subdivision of the State
of California (the “City”), acting by and through its Department of Public Works, and
Peter M. Owens and Carolyn A. Radisch, Stephen L. Owens, Michel Bechirian and Niloo Tehranchi,
Alexander E. Apke and Ana M. Munoz, Spencer K. Jones, Geoffrey Pierce
Christopher Beahn and Christine Han Beahn, Iris Canada » (“Property Owner(s)”)
with respect to the condominium conversion approved for the real property located at
668-678 Page Street as more particularly described in Exhibit A
attached hereto (the “Property”) specifically relating to Unit(s) 672 [Insert description
of affected Lifetime Lease Unit(s)]. Property Owner(s) also refers to all Owners of fee title
interest in the Property. City and Property Owner(s) are also sometimes referred to individually
as a “Party” and together as the “Parties.”
RECITALS
This Agreement is made with reference to the following facts:
A. Code Authorization.
dd) On June 18, 2013, the San Francisco Board of Supervisors finally passed
Ordinance No. 117-13 adopting the Condominium Conversion Fee and Expedited Conversion
Program, San Francisco Subdivision Code Section 1396.4 (the “Program”). The Program
permits property owners of apartments to convert the units in their building to condominiums
under certain conditions. The Program suspends the City’s 200-unit annual cap on condominium.
conversions and exempts property owners from the lottery process, under certain conditions.
The lottery process had resulted in property owners experiencing a wait of up to nine years to
convert to condominiums. The Program provides for an expedited conversion process that allows
conversions to occur as soon as the building meets all required criteria for eligibility. In
addition, Ordinance No. 117-13 provides for a refund of a portion of the condominium
conversion fee for each unit in a building subject to a lifetime lease with a higher percentage of
fee reduction available if a larger number of units are subject to a lifetime lease.
1
Agreement Pursuant to Subdivision Code Section 1396.4(2) Chapter 4.3 of the California Government Code directs public agencies to
grant concessions and incentives to private developers for the production of housing for lower
income households. The Costa-Hawkins Rental Housing Act (California Civil Code Sections
1954.50 et seq., hereafier “Costa-Hawkins Act”) imposes limitations on the establishment of the
initial and all subsequent rental rates for a dwelling unit with a certificate of occupancy issued
after February 1, 1995, with exceptions, including an exception for dwelling units constructed
pursuant to a contract with a public entity in consideration for a direct financial contribution or
any other form of assistance specified in Chapter 4.3 of the California Government Code
(Section 1954.52(b)). Pursuant to Civil Code Section 1954.52(b), the City’s Board of
Supervisors has enacted as part of the Program, procedures and requirements for entering into an
agreement with a private property owner to memorialize the direct financial contributions, and
concessions and incentives granted to the property owner within the exception to the Costa-
Hawkins Act for the Lifetime Lease Unit included in the Property.
@G) The Ellis Act (Government Code Section 7060 et seq., hereafter the “Ellis
Act”) allows landlords who comply with its terms to go out of the rental business by evicting
their tenants and withdrawing all units in a property from the rental market. By its terms, the
Ellis Act does not apply to condominium units. The Ellis Act also provides an exception to its
terms where a public entity enters into a contract or agreement with the owner to provide rental
housing in exchange for a direct financial contribution. Pursuant to Government Code Section
7060.1(a), the City’s Board of Supervisors has enacted as part of the Program, procedures that,
should the Ellis Act be deemed to even apply to the Property, require entering into an agreement
with a private property owner to memorialize the direct financial contribution granted to the
property owner within the exception to the Ellis Act for the Lifetime Lease Unit included in the
Property.
B. Development Proposal; Intent of the Parties. The Property is owned in fee by
Property Owner. Property Owner proposes to convert 6 _ [number of units] units in the
Property to condominium units under the provisions of the Program. Under the terms of the
Program, as a condition of development approval of the conversion of the Property, the Property
Owner will provide a lifetime lease to an existing tenant in 1 [insert number of units]
unit(s) (the “Lifetime Lease Unit(s)”). The Department of Public Works conditional tentative
approval of the parcel or subdivision map for the Property allowed, without participation in a
lottery process, conversion of the units in the Property, including the Lifetime Lease Unit
through the expedited provisions in the Program. The dwelling units that are the subject of this
Agreement are the Lifetime Lease Unit(s). The Lifetime Lease Unit(s) are more specifically
described as: 672 . The dwelling units in the Property that are not Lifetime
Lease Units, are referred to herein as the “Market Rate Units”. This Agreement is not intended
to impose restrictions on the Market Rate Units or any portions of the Property other than the
Lifetime Lease Units. The Parties acknowledge that this Agreement is entered into in
consideration of the respective burdens and benefits of the Parties contained in this Agreement
and in reliance on their agreements, representations and warranties.
Cc. Lifetime Lease Provision of the Program. The Condominium Conversion Fee and
Expedited Conversion Program provides that property owners seeking to convert to
condominiums under the Program must offer a lifetime lease to any existing tenants who do not
purchase their unit under terms and conditions set forth in Subdivision Code Section 1396.4.
2
Agreement Pursuant to Subdivision Code Section 1396.4The Program provides that the City and property owner shall enter into a binding agreement
documenting the requirements of the Program. The Parties hereby enter into this agreement
with the City and County of San Francisco pursuant to Chapter 4.3 of the California Government
Code for a direct financial contribution and concessions and incentives, and under Government
Code Section 7060.1 for a direct financial contribution pursuant to which the property owner
covenants to provide the Lifetime Lease Units to satisfy the requirements of the Program and in
consideration of the City’s direct financial contribution to the Property Owner and concessions
and incentives.
Dz. Property Owner’s Election to Convert Through the Program. Property Owner has
elected to enter into this Agreement to obtain the benefits and fee reduction provided under the
Program in exchange for agreeing to provide the Lifetime Lease Units and acknowledging an
exception to the Costa-Hawkins Act and, if applicable, the Ellis Act for the Lifetime Lease Units
only.
E. Compliance with All Legal Requirements. It is the intent of the Parties that all
acts referred to in this Agreement shall be accomplished in such a way as to fully comply with
Chapter 4.3 of the California Government Code, the Costa-Hawkins Act, the Ellis Act, the San
Francisco Subdivision Code, and all other applicable laws and regulations.
AGREEMENT
The Parties acknowledge the receipt and sufficiency of good and valuable consideration
and agree as follows:
1. GENERAL PROVISIONS
11 Incorporation of Recitals and Exhibits. The preamble paragraph, Recitals, and
Exhibits, and all defined terms contained therein, are hereby incorporated into this Agreement as
if set forth in full.
2. DIRECT FINANCIAL CONTRIBUTION AND CONCESSIONS AND
INCENTIVES FOR THE LIFETIME LEASE UNITS.
2.1 Direct__ Financial Contributions _and__Concessions _and_Incentives. On
[date], DPW issued tentative approval for the condominium conversion
for the Property through which the Property Owner will receive the following direct financial
contribution and concessions and incentives for the provision of the Lifetime Lease Unit:
2.1.1 Payment. In recognition of the rental requirements of Subdivision Code
Section 1396.4(g), the City hereby will provide a fee rebate for each unit in which a non-
purchasing tenant resides at the time specified by the Program who is offered a lifetime lease and
is unrelated by blood, marriage, or domestic partnership to any owner of the building as follows:
[insert amount: one Lifetime Lease Unit, 10% fee reduction; two Lifetime Lease Unit, 20%
fee reduction for each unit; three Lifetime Lease Unit, 30% fee reduction for each unit.]
which equal $ [insert dollar amount].
Agreement Pursuant to Subdivision Code Section 1396.42.1.2 Financial Benefits, Concessions, and Incentives, Granted Through
Conversion. Property owner acknowledges that the Program allows it to convert sooner, in some
cases up to 6 years or more, at lower mortgage rates applicable to condominiums than the prior
lottery system that existing under the San Francisco Subdivision Code. This translates into direct
financial benefits as detailed in the report “Condominium Conversion Fee: Economic Impact
Report” prepared by the Office of the Controller dated April 2, 2013. And, Property Owner
acknowledges the increased property value resulting from conversion sooner than it would have
prior to the Program. The Development Impact Fee report prepared by Keyser Marston
Associates, dated January 2011 demonstrates a 15% increase in value per unit associated with
condominium ownership over other forms of ownership. In addition, the Program allows the
Property Owner to avoid the delays, holding costs, and financial uncertainty of the condominium
lottery and the prior waiting period for conversion.
2.2 Costa-Hawkins Act and Ellis Act Inapplicable to Lifetime Lease Units Only. The
parties acknowledge that, under Section 1954.52(b) of the Costa~-Hawkins Act, the Lifetime
Lease Units are exempt from the Costa Hawkins Act. The parties also acknowledge that the
Ellis Act does not apply to the Property because the Property will be a condominium upon
completion of the conversion process, but that should the Ellis Act be deemed to apply, the
Lifetime Lease Units are nevertheless exempt from the Ellis Act under Section 7060.1(a) of the
Ellis Act. Through this Agreement, Property Owner hereby enters into an agreement with a
public entity in consideration for a direct financial contribution and forms of concessions and
incentives specified in California Government Code Sections 65915 et seq. The direct financial
contribution and concessions and incentives are comprised of, but not limited to, the items set
forth in Section 2.1.. The Parties hereby agree and acknowledge that this Agreement does not
alter in any manner the way that the Costa-Hawkins Act, Ellis Act, or any other law apply to the
Market Rate Units.
3. COVENANTS OF PROPERTY OWNER
3.1 Providing Lifetime Lease Units. In consideration of the direct financial
contribution and concessions and incentives set forth in Section 2.1, and in accordance with the
terms and conditions set forth in the Program, Property Owner shall: (i) prior to final map or
parcel map approval for the condominium conversion of the Property, provide a written offer for
a lifetime lease to the tenants residing in the Lifetime Lease Units and record such offer against
the Property; and (ii) at the time each tenant accepts the lifetime lease offer, execute and record
against the Property a lifetime lease with the tenant in the form and subject to the rent restrictions
and other terms as set forth in Subdivision Code Section 1396.4(g). For purposes of this
agreement, tenant shall be defined under San Francisco Administrative Code Section 37.2(t).
3.2 Property Owner’s Acknowledgement that Costa-Hawkins Act and Ellis Act Do
Not Apply to the Lifetime Lease Units. The Parties acknowledge that: (i) under the Costa-
Hawkins Act, the owner of newly constructed residential real property may establish the initial
and all subsequent rental rates for dwelling units in the property without regard to the City’s
Residential Rent Stabilization and Arbitration Ordinance (Chapter 37 of the San Francisco
Administrative Code); and (ii) under the Ellis Act, landlords who comply with its terms may go
out of the rental business by evicting their tenants and withdrawing all units in a property from
the rental market. The Parties also understand and agree that the Costa~-Hawkins Act and Ellis
4
Agreement Pursuant to Subdivision Code Section 1396.4Act do not and in no way shall limit or otherwise affect the Lifetime Lease Units because: (i)
upon conversion of the Property, the Ellis Act will not apply to the Property due to the fact that
the Property will be a condominium; and (ii) this Agreement falls within an express exception to
the Costa~-Hawkins Act as a contract with a public entity in consideration for a direct financial
contribution or other forms of assistance specified in Chapter 4.3 (commencing with section
65915) of Division | of ‘Title 7 of the California Government Code. Should the Ellis Act be
deemed to apply to the Property despite its legal status as a condominium, Property Owner
acknowledges and agrees that this Agreement falls within an express exception to the Ellis Act
as a contract with a public entity in consideration for a direct financial contribution. Property
Owner acknowledges that the direct financial contribution and the concessions and incentives
specified in Section 2 result in identifiable and actual cost reductions and economic benefits to
the Property and therefore fall within the exceptions set forth in Section 1954.52(b) of the Costa-
Hawkins Act and Section 7060.1(a) of the Ellis Act. Property Owner also acknowledges that the
Cily would not be willing to enter into this Agreement and provide the fee rebate without the
understanding and agreement that the Costa-Hawkins Act and Ellis Act do not apply to the
Lifetime Lease Units. Should the Lifetime Units be deemed subject to the Costa~Hawkins Act
and/or the Ellis Act, as a material part of the consideration for entering into this Agreement,
Property Owner, on behalf of itself and all its successors and assigns to this Agreement, hereby
expressly waives, now and forever, any and all rights it may have under the Costa-Hawkins Act
and/or the Ellis Act with respect only to the Lifetime Lease Units (but only the Lifetime Lease
Units and not as to the Market Rate Units) consistent with Section 3.1 of this Agreement.
Without limiting the foregoing, Property Owner, on behalf of itself and all successors and
assigns to this Agreement, agrees not to bring any legal or other action against City seeking
application of the Costa~Hawkins Act and/or the Ellis Act to the Lifetime Lease Units for so long
as the Lifetime Lease Units are in effect. The Parties understand and agree that the City would
not be willing to enter into this Agreement without the waivers and agreements set forth in this
Section 3.2.
3.3 Property Owner’s Waiver of Right to Seek Waiver of Program Requirements.
Developer specifically agrees to be bound by all of the provisions of the Program applicable to
the Lifetime Lease Units. Developer covenants and agrees that it will not seek a waiver of the
provisions of the Program applicable to the Lifetime Lease Units.
4, MUTUAL OBLIGATIONS
Al Good Faith and Fair Dealing. The Parties shall cooperate with each other and act
in good faith in complying with the provisions of this Agreement and implementing the Program.
4.2 Other Necessary Acts. Each Party shall execute and deliver to the other all
further instruments and documents as may be reasonably necessary to carry out this Agreement,
the Program (as applied to the Lifetime Lease Units) and applicable law in order to provide and
secure to each Party the full and complete enjoyment of its rights and privileges hereunder.
4.3 Effect of Future Changes to Program. The City hereby acknowledges and agrees
that, in the event that the City adopts changes to the Program after the date this Agreement is
executed by both Parties, nothing in this Agreement shall be construed to limit or prohibit any
Agreement Pursuant to Subdivision Code Section 1396.4rights Property Owner may have to modify requirements with respect to the Lifetime Lease Units
to the extent permitted by such changes to the Program.
5. PROPERTY OWNER = REPRESENTATIONS, WARRANTIES AND
COVENANTS.
5.1 Interest of Property Owner, Property Owner represents thal il is the legal and
equilable fee owner of the Property and thal it has the power and authority to bind itsclf to the
terms of this Agreement. Property Owner is a TIC , duly organized and validly
oxisting and in good standing under the laws of the State of California. Property Owner has all
requisite power and authority to own property and conduct business as presently conducted.
Property Owner has made all filings and is in good standing in the State of California.
5.2 No Conflict With Other Agreements; No Further Approvals; No Suits. Property
Owner warrants and represents that it is not a party to any other agreement that would conflict
with the Property Owner’s obligations under this Agreement. Neither Property Owner’s articles
of organization, bylaws, or operating agreement, as applicable, nor any other agreement or law in
any way prohibits, limils or otherwise affects the right or power of Property Owner to enter into
and perform all of the terms and covenants of this Agreement. No consent, authorization or
approval of, or other action by, and no notice to or filing with, any governmental authority,
regulatory body or any other person is required for the due execution, delivery and performance.
by Property Owner of this Agreement or any of the terms and covenants contained in, this
Agreement. To Property Owner’s knowledge, there are no pending or threatened suits or
proccedings or undischarged judgments affecting Property Owner or any of its members before
any court, governmental agency, or arbitrator which might materially adversely affect Property
Owner’s business, operations, or assets or Property Owner’s ability to perform under this
Agreement.
5.3. No Inability to Perform: Valid Execution. Property Owner warrants and
represents that it has no knowledge of any inability to perform its obligations under this
Agreement. The execution and delivery of this Agreement and the agreements contemplated
hereby by Property Owner have been duly and validly authorized by all necessary action. This
Agreement will be a legal, valid and binding obligation of Property Owner, enforceable against
Property Owner in accordance with its terms.
5.4 Conflict of Interest. Through its execution of this Agreement, the Property Owner
acknowledges that it is familiar with the provisions of Section 15.103 of the City’s Charter,
Article [II, Chapter 2 of the City’s Campaign and Governmental Conduct Code, and Section
87100 et seq. and Section 1090 et seq. of the California Government Code, and certifies that it
does not know of any facts which constitute a violation of said provisions and agrees that it will
immediately notify the City if it becomes aware of any such fact during the term of this
Agreement.
5.5 Notification of Limitations on Contributions. Through execution of this
Agreement, the Property Owner acknowledges that it is familiar with Section 1.126 of City’s
Campaign and Governmental Conduct Code, which prohibits any person who contracts with the
City, whenever such transaction would require approval by a City elective officer or the board on
6
Agreement Pursuant to Subdivision Code Section 1396.4which that City elective officer serves, from making any campaign contribution to the officer at
any time from the commencement of negotiations for the contract until three (3) months after the
date the contract is approved by the City elective officer or the board on which that City elective
officer serves. San Francisco Ethics Commission Regulation 1.126-1 provides that negotiations
are commenced when a prospective contractor first communicates with a City officer or
employee about the possibility of obtaining a specific contract. This communication may occur
in person, by telephone or in wriling, and may be initialed by the prospective contractor or a City
officer or employee. Negotiations are completed when a contract is finalized and signed by the
City and the contractor. Negotiations are terminaled when the City and/or the prospective
contractor end the negotiation process before a final decision is made to award the contract.
5.6 Nondiscrimination. In the performance of this Agreement, Property Owner
agrees not to discriminate on the basis of the fact or perception of a person’s, race, color, creed,
religion, national origin, ancestry, age, height, weight, sex, sexual orientation, gender identity,
domestic partner status, marital status, disability or Acquired Immune Deficiency Syndrome or
HIV status (AIDS/HIV status), or association with members of such protected classes, or in
retaliation for opposition to discrimination against such classes, against any City employee,
employee of or applicant for employment with the Property Owner, or against any bidder or
contractor for public works or improvements, or for a franchise, concession or lease of property,
or for goods or services or supplies to be purchased by the Property Owner. A similar provision
shall be included in all subordinate agreements let, awarded, negotiated or entered into by the
Property Owner for the purpose of implementing this Agreement.
6. AMENDMENT; TERMINATION
6.1 Amendment or Termination, Except as provided in Sections 6.2 (Automatic
Termination) and 8.3 (Remedies for Default), this Agreement may only be amended or
terminated with the mutual written consent of the Parties.
6.2. Automatic Termination. This Agreement shall automatically terminate upon
termination of all lifetime leases for the Lifetime Lease Units, in accordance with Subdivision
Code Section 1396.4(g).
7. TRANSFER OR ASSIGNMENT; RELEASE; RIGHTS OF MORTGAGEES;
CONSTRUCTIVE NOTICE
7A Agreement Runs With The Land. Property Owner may assign or transfer its
duties and obligations under this Agreement to another entity, provided such entity is the legal
and equitable fee owner of the Property (“Transferee”). As provided in Section 9.2, this
Agreement runs with the land and any Transferee will be bound by all of the terms and
conditions of this Agreement.
7.2 Rights of Property Owner. The provisions in this Section 7 shall not be deemed
to prohibit or otherwise restrict Property Owner from (i) granting easements or licenses to
facilitate development of the Property, (ii) encumbering the Property or any portion of the
improvements thereon by any mortgage, deed of trust, or other device securing financing with
respect to the Property, (iii) granting a leasehold interest in all or any portion of the Property
7
Agreement Pursuant to Subdivision Code Section 1396.4(other than the Lifetime Lease Units), or (iv) transferring all or a portion of the Property pursuant
to a sale, transfer pursuant to foreclosure, conveyance in lieu of foreclosure, or other remedial
action in connection with a mortgage. None of the terms, covenants, conditions, or restrictions
of this Agreement or the Program shall be deemed waived by Cily by reason of the rights given
to the Property Owner pursuant to this Section 7.2.
7.3. Property Owner’s Responsibility for Performance. If Property Owner transfers or
assigns all or any portion of the Properly or any interest therein to any other person or entity,
Property Owner shall continue to be responsible for performing the obligations under this
Agreement as to the transferred property interest until such time as there is delivered to the City
a legally binding agreement pursuant to which the Transferee assumes and agrees to perform
Property Owner’s obligations under this Agreement from and after the date of transfer of the
Property (or an interest therein) to the Transferee (an “Assignment and Assumption
Agreement”). The City is entitled to enforce each and every such obligation assumed by the
Transferee directly against the Transferee as if the Transferee were an original signatory to this
Agreement with respect to such obligation. Accordingly, in any action by the City against a
Transferee to enforce an obligation assumed by the Transferee, the Transferee shall not assert
any defense against the City’s enforcement of performance of such obligation that is attributable
to Properly Owner’s breach of any duly or obligation to the Transferee arising out of the transfer
or assignment, the Assignment and Assumption Agreement, the purchase and sale agreement, or
any other agreement or transaction between the Property Owner and the Transferee. The
transferor Property Owner shall remain responsible for the performance of all of its obligations
under the Agreement prior to the date of transfer, and shall remain liable to the City for any
failure to perform such obligations prior to the date of the transfer.
7.4 Release Upon Transfer or Assignment. Upon the Property Owner’s transfer or
assignment of all or a portion of the Property or any interest therein, including the Property
Owner’s rights and interests under this Agreement, the Property Owner shall be released from
any obligations required to be performed from and after the date of transfer under this
Agreement with respect to the portion of the Pr
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Dennis Zaragoza, Esq. (SBN 084217) Law OFFICES OF DENNIS ZARAGOZA P.O. Box 15128 San Francisco, CA 94115 Telephone: (510) 375-7238 e-mail: lawzarsf@gmail.com Attorney for Defendant IRIS CANADA ELECTRONICALLY FILED Supertor Court of California, County of San Francisco 10/21/2016 Clerk of the Court BY:BOWMAN LIU Deputy Clerk SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SAN FRANCISCO — UNLIMITED PETER M. OWENS, an individual, CASE NO. CGC-14-543437 CAROLYN A. RADISCH, an individual, STEPHEN L. OWENS, an individual, DECLARATION OF DENNIS ZARAGOZA IN SUPPORT OF STAY PENDING APPEAL Plaintiffs, — CCP Sec. 917.4 v. Date: November 1, 2016 Time: 2 p.m. Dept. 502 IRIS CANADA, an individual, OLD Judge: Hon. A. James Robertson If REPUBLIC TITLE COMPANY, and Does 1 to 10, inclusive, Defendants. I, DENNIS ZARAGOZA, declare: 1 J am an attorney at law licensed to practice before the courts of the State of California, and am attorney of record for Defendant Iris Canada. 2. I substituted into this case as counsel of record on June 8, 2016. 3. Those records attached to Defendant Iris Canada’s Request for Judicial Notice are true and correct copies as taken from the online services or my records. 4, In connection with my investigation of this case, I requested a copy of those documents that the Plaintiffs were requesting that Iris Canada sign. My request for the documents was sent to Mr, Chernev on June 16, 2016, On June 28, 2016, he responded by sending me three Declaration of Dennis Zaragoza re: Motion for Staydocuments by e-mail. True and correct copies of those documents as well as the e-mail communications have been marked as Exhibit A to this Declaration, One of the documents in question is an “Owner Affidavit,” which basically would require to state that Iris Canada is “an owner” of the property, under penalty of perjury, when this statement is not true. One of the other documents is titled “Applicant Statement.” Like the first document, this document must also be signed under penalty of perjury and identifies the signer as an owner of the property. (Page 2 of “Applicant Statement.) The third document again identifies Iris Canada as a “Property Owner.” Iris Canada is not an owner of the property. She is or was an owner of a life estate. 5. Given the claimed damages of $600 in waste as compared to the attorney’s fees incurred, in my opinion, the amount of attorney’s fees incurred are completely out of proportion to the damages. It serves no business purpose to spend money in this fashion unless there is a second agenda. In my opinion, the purpose of this lawsuit has been to compel Iris Canada to sign documents that would cause her to perjure herself and waive her right of first refusal. I declare the foregoing to be true under penalty of perjury under the laws of the State of alifornia. Executed this 20" day of October, 2016, at San Francisco, California. (BD. Dennis Zaragoza” Declaration of D. Zaragoza re: Motion for Stay maeExhibit A: Mark Chernev mar Re: Iris Canada June 28, 2016 at 3:48 PM : Dennis Zaragoza lawz Dennis, Sorry for the delay, | had to wait for the updated paperwork. Attached are three sets of documents, two of which Iris Canada would need to sign now and the remaining declaration would need to be signed in approximately a year from now. If you have an offer you would like to make which addresses the terms our clients have discussed, namely agreeing to comply with the condo paperwork requirements and waiver of the legal fee requirement, please forward me your offer. | will discuss it with Peter Owens. This condo conversion and preservation of Iris Canada’s life estate issue is really not that complicated. She has been informed by numerous attorneys that it will have no impact on her life estate rights, and | am certain your specialist will agree. Mark B. Chernev Zacks, Freedman & Patterson, P.C. 235 Montgomery Street, Suite 400 San Francisco, CA 94104 p (415) 956-8100 f (415) 288-9755 www.zfplaw.com From: Dennis Zaragoza Date: Thursday, June 16, 2016 at 12:23 PM To: Mark Chernev Subject: Re: Iris Canada Mark, Thank you for your offer. | have contacted a specialist to see if he has the time to offer an opinion on the issue. If you have the papers scanned, could you please send them to me. Thank you, Dennis Zaragoza LAW OFFICES OF DENNIS ZARAGOZA P.O. Box 15128 San Francisco, CA 94115 Telephone: (510) 375-7238 E-mail: lawzarsf@gmail.com On Wed, Jun 15, 2016 at 2:44 PM, Mark Chernev wrote: Dennis,As a courtesy | contacted the Sheriff’s office on Iris Canada’s behalf informing them of the 30 day stay she has. You had mentioned to me earlier that you needed time to review the condo paperwork to be assured there will not be any consequences to Canada’s life estate, but you have not asked me for a copy of them to review. Do plan on asking me for a copy to review? Mark B. Chernev Zacks, Freedman & Patterson, P.C. 235 Montgomery Street, Suite 400 San Francisco, CA 94104 Owner Affidavit: No Unlawful Evictions of Tenants Occurred After Application (Affidavit Required tor EACH owner)Owner Affidavit: No Unlawful Evictions of Tenants Occurred After Application (Affidavit Required for EACH owner) Assessor's Block Lot Address I, , hereby certify under penalty of perjury that the (Print Name) following is true and correct to the best of my knowledge: 1) 1am an owner of this property; 2) Any tenant who vacated any unit after the time of submittal of my Condominium Conversion Application, did so voluntarily, or if an eviction or eviction notice occurred it was not pursuant to: a) Administrative Code Sections 37.9(a)(8), 37.9(a)(9), 37.9(a)(10), 37.9(a)(12), 37.9(a)(13); or b) Administrative Code Sections 37.9(a)(11) or 37.9(a)(14), unless the original tenant reoccupied the unit after the temporary eviction; 3) If any additional person has entered into contract or has been offered exclusive right to occupy any unit in the building as a tenant after submittal of my Expedited Conversion Application, | have complied with all applicable provisions of San Francisco Subdivision Code Section 1396.4 including the offer of lifetime lease; 4) Any contract or option to sell or transfer any unit at any time prior to recording of the final subdivision map or parcel map has complied with the provisions of San Francisco Subdivision Code Section 1396.4(g). l understand that | am affirming under penalty of perjury to the truthfulness of the claims made in this affidavit and that the punishment for knowingly making a false statement may include denial of the condominium conversion subdivision, fines, and/or imprisonment. | understand that in the event that a person becomes a tenant before my map is recorded | am required to notify DPW and shall be required to make an offer of a life time lease to said tenant prior to the map recording. Date: Signature State of County of On a before me, , Notary Public, personally appeared. ie , who proved to me 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 (Seal)San Francisen Applicant Statement 0843-015 668-678 Page Street, San Francisco, CA 94117 Assessor’s Parcel Number: Property Address: Owner Information Pte i, ns nt Ga A Rath, St. ns, 668-678 Page Street, San Francisco, CA 941 17 Wn Atel FAH A MM, SpenreF I Jones, ReeHiny Hira, Consignor ean and tine Man Woah, he Canada Name(s): Address: Phone: Email: Application Contact (if different from Owner) Cam Perridge c/o Sirkin and Associates Name(s): 7 Ee eet es Je5 ae Aaatel 388 Market Street, suite 1300, San Francisco CA 94111 A tenet (415) 839-6407 et Cam@ticlawyers.com _ Firm or Agent Preparing Subdivision Map Vara Land Surveying Name(s): oe a Faeroe: 912 Cole Street #123, San Francisco CA 94117 | Phone: (415) 871-5283 SSS Ea kateandersonpls@gmail.com ne 6 Number of Units in Project: 1 Number of Tenant Occupied Units: Choose One: Pace ora Pieces = WIGS His LJ Number of residential: Number of residential: __ Number of commercial: ___ Number of commercial: __San Francisco Public 1 (We) declare, under penalty of perjury, that | am (we are) the owner(s) [authorized agent of the owner(s)] of the property that is subject of this application, that the statements herein and in the attached exhibits present the information required for this application, and the information presented is true and correct to the best of my (our) knowledge and belief. Iris Canada Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name DateSan Franciseur Form 1 Bullding History, Statement of Repairs & Improvements, Occupants, and Proposed Prices Assessor’s Parcel Number: 9843-015 Property Address: 668-678 Page Street, San Francisco, CA 94117 Item No. 6 — Building History No information known except for as detailed on Report of Residential Record Item No. 7 — Statement of Repairs & Improvements nla Item No. 8 — List of occupants, their apartment numbers, vacant units, and owners and tenants who intend to purchase Be cee cae yee tito Cueva ULUAVE Costa mee Cla Reset es You One Geoffrey Pierce 668 OC) ves [1 no & ves O no Two Iris Canada at 670 O vs O no | ves O no | Three | Carmen Sutter and Min-Si Wang 672 Clovs O no [O yes & no Four | Christopher Beahn & Christine flan Beahn 674 O ves & no yes [I no Five _| Alexander E. Apke & Ana M. Munoz 676 O yes no yes [J NO Six Michel Bechirian & Niloo Tehranchi 678 Ol yes &l no | & ves C1 no Item No. 9 - Six year occupancy history ere Dirac CEiione ee OT ee ntim acc 668 09/2008-present Geoffrey Pierce 0-0 na 670 06/1990-present ris Canada 0-0 nla 672 01/2016-present Carmen Sutter $2,125 nla 8/2015-present Min-Si Wang $2,125 nla 09/2013-8/2015 Helen Ma $2,125 moved of own volition 09/2013-12/2015 Stephanie Cheung $2,125 moved of own volition 03/2009-08/2013 Spencer Jones, Tyler Barrick 0-0 moved of own volition 674 10/2008-present Christopher Beahn & Christine Han Beahn 0-0 nla 676 7 05/2010-present Alexander E, Apke & Ana M. Munoz 0-0 nla 678 06/2003-present Michel Bechirian & Niloo Tehranch 0-0 nlaSan Francisco Public Wi Are there any evictions associated with this building since May 1, 2005? [Sec. 1396.2, 1396.4(10)] Clyes J NO Ifyes, provide details: Item No. 10 — List of number of bedrooms, square feet, current rental rate, and proposed sales prices THAR cme ene eeu Pots ae GC aati icelnwace 668 2 4,300 0-0 $1,800,000 670 2 [1,300 0.0 $1,800,000 672 2 1,300 $4250 $1,800,000 674 2 1,300 7 0-0 $1,800,000 676 2 1,300 0-0 $1,800,000 678 2 1,300 0-0 $1,800,000 Item No. 11 — List the permit number(s) of the building permit application filed in connection with the proposed use of this property that is/are not listed in the 3R Report in the space below #t See # 7 # # ae # lris Canada Signature of Applicant Printed Name Date Signature of Applicant Printed Name Signature of Applicant Printed Name Signature of Applicant Printed Name Datedet Francisca Public Works Form 3 Acknowledgment of Fees 0843-015 Assessor’s Parcel Number: Property Address: Please read the statements below and provide your signature at the bottom of the page. 1. |understand that the Subdivision and Mapping application fees are due at the time of application submittal 2. | understand that the Expedited Conversion Program fee will be in addition to the current Subdivision and Mapping application fees 3. Within three (3) days after deeming my application submittable, San Francisco Public Works will notify me regarding the fees due under the Expedited Conversion Program. All fees are due and payable at that time. Iris Canada Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name DateSan Franc Form 4 Owner's Release of Interest in Common Areas 0843-015 Assessor’s Parcel Number: Property Address: In accordance with section 1323(a)(6) of the San Francisco Subdivision Code, this is my statement Unal neither | nur any of my agents: shall retain any right, title or interest in any common area or areas or facilities except those common areas in which | might retain any individual interest by virtue of ownership of one or more of the individual units. Iris Canada Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name DateSan Francisea Public Warks Form7 Summary of Tenant Contacts 0843-015 Assessor’s Parcel Number: Property Address: Article 9 Section 1381(a) (4)(D) of the San Francisco Subdivision Code requires subdividers to submit with condominium conversion application a summary of tenant contacts including all meetings held with tenants and all information provided to them about the project and their own options. PE SCLe eel stlas 6/28/2016 ‘Owner of unit 672 provided their tenant with a “notice of proposed conversion” (attached) The undersigned hereby certifies that he/she has recorded all tenant interactions as required by the San Francisco Subdivision Code. lris Canada Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name Datesco Public Works Form 8A Subdivider’s Statement and Commitment Regarding Notice to Existing Tenants (Sec, 1384 (a) (6)(A) & See, 1381(a) (6)(C)] 0843-015 Assessor’s Parcel Number: Property Address: The undersigned subdividers hereby certify that he/she has given notices required by the San Francisco Subdivision Code Section 1381(a)(6) to all current lessees or tenants and will give such notices to those who occupy after submission of the application packet for conversion. 7 Iris Canada Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant : Printed Name DateSubdivider’s Statement and Commitment Regarding Notice to New Tenants (Sec. 1381(a)(6)(B) & Sec. 1381(a)(6)(C)] 0843-015 Assessor’s Parcel Number: Property Address: Form 8B The undersigned subdividers hereby certify that he/she will give notices required by the San Francisco Subdivision Code Section 1381(a)(6) to all current lessees or tenants including those who occupy after submission of the application packet for conversion. lris Canada Signature of Applicant Signature of Applicant Signature of Applicant Printed Name Date Printed Name Date Printed Name Date Signature of Applicant Printed Name DateSan Francisco Public Works Form 9 Subdivider’s Commitment Regarding Notice of the Tenant’s Right of First Refusal to Purchase [Sec, 1387] ; 0843-015 Assessor’s Parcel Number: Property Address: ‘eaneouusosauaa The undersigned Subdividers hereby certify that the present tenant or tenants al the date of filing of the application for a Tentative Map of any unit to be converted or, in the event of a voluntary vacation, or eviction for cause, the tenant or tenants in occupancy at the date of recording of the Parcel Map (or in the case of 5-6 unit buildings, at the date of issuance of the State Department of Real Estate’s Final Subdivision Public Report) shall be given a nontransferable contract right to purchase the unit occupied at a price no greater than the price offered to the general public, as required by San Francisco Subdivision Code Section 1387. Iris Canada Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name Date Signature of Applicant Printed Name DateSan F lic Werks Form 10 Proposition “M” Findings Form The Eight Priority Policies of Section 101.1 of thy Sun Franciscu Planning Code Date: City Planning Case No: Assessor’s Parcel Number: 084 Property Address: 7 et Proposal: Condo Conversion EIGHT PRIORITY GENERAL PLAN POLICIES As a result of the passage of Proposition M (Section 101.1 of the.San Francisco Planning Code), findings that demonstrate consistency with the eight priority policies of Section 101.1 must be presented to the Department of City Planning as part of your project application review for gencral conformity with San Francisco’s General Plan. Photographs of the subject property are required for priority policy review and must be submitted as part of the application. INSTRUCTIONS TO APPLICANTS: Please present information in detail about how your application relates to each of the eight priority policies listed below. The application will be found to be incomplete if the responses are not thorough. Use a separate document and attach if more space is needed. i That existing neighborhood-serving retail uses be preserved and enhanced and future opportunities for resident employment in and ownership of such business be enhanced; The proposal will have no negative or positive effect on existing neighborhood-serving retail uses. 2. That existing housing and neighborhood character be conserved and protected in order to preserve the cultural and economic diversity of our neighborhood; The proposal will have no negative or positive effect on existing housing and neighborhood character. 3. Thal the City’s supply of affordable housing be preserved and enhanced; The proposal will have no negative or positive effect on the City's supply of affordable housing.Sait Francise: 4. That commuter traffic not impede Muni transit service or overburden our streets or neighborhood parking; The proposal will have no negative or positive cffect on Muni transit service, traffic or parking. 5. That a diverse economic base be maintained by protecting our industrial and service sectors from displacement due to commercial office development, and that future opportunities for resident employment and ownership in these sectors be enhanced; The proposal does not involve commercial office development and will have no negative or positive effect on future opportunities for resident employment and ownership in our industrial and service sectors 6. That the City achieve the greatest possible preparedness to protect against injury and loss of life in an earthquake; The proposal will have no negative or positive effect on earthquake preparedness. 7. That landmarks and historic buildings be preserved; and The proposal does not involve changes to existing buildings. 8. That our parks and open space and their access to sunlight and vistas be protected from development. The proposal will have no negative or positive effect on parks and open space and their access to sunlight and vistas. Signature of Applicant Printed Name Date Signature of Applicant Printed Name DateSignature of Applicant Printed Name Date Signature of Applicant Printed Name DateSan Francisca Public Works Form 12 Owner’s Affidavit Eviction of Senior, Disabled, or Catastrophically Ill Tenant Compliance with Section 1396,2(b) of the San Francisco Subdivision Code Required for all owners of record 0843-015 Assessor’s Parcel Number: Property Address: Se eas _ Iris Canada print name , herby certify under penalty of perjury that the following is true and correct to the best of my knowledge: Since May 1, 2005, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8), 37.9(a)(10), 37.9(a)(11), or 37.9(a)(13) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if such an eviction took place, each unit in the building was occupied by a separate owner of record on April 4, 2006. For purposes of the above statement, a “senior” shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of issuance of the eviction notice; a “disabled” tenant is defined as a person who is disabled within the meaning of Title 42 U.S.C. Section 12102(2)(A); and a “catastrophically ill” tenant is defined as a person who is disabled as defined by above, and who is suffering from a life threatening illness as certified by his or her primary care physician. 1 understand that | am affirming under penalty of perjury to the truthfulness of the claims made in this affidavit and that the punishment for knowingly making a false statement may include denial of the condominium conversion subdivision, fines, and/or imprisonment. Signature of Applicant Printed Name Date Signature of Applicant Printed Name DateSan Francisca Public Works. Anotary 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 County of On. _before me, Notary Public, personally appeared 7 , 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 (seal)San Francis Form 13 Owner's Affidavit Eviction of Tenants Compliance with Section 1396,2(a) of the San Francisco Subdivision Code Required for all owners of record Date: ee oo. Assessor’s Parcel Number: 9843-015 _ Property Address: , Iris Canada print name ___» herby certify under penalty of perjury that the following is true and correct to the best of my knowledge: Since May 1, 2005, two or more tenants occupying separate units have not been evicted under San Francisco Administrative Code Section 37.9(a)(8), 37.9(a)(10), 37.9(a)(11), or 37.9(a)(13), or if such evictions took place, each unit in the building was occupied by a separate owner of record on April 4, 2006. | understand that ! am affirming under penalty of perjury to the truthfulness of the claims made in this affidavit and that the punishment for knowingly making a false statement may include denial of the condo! imprisonment. m conversion subdivision, fines, and/or Signature of Applicant Printed Name Date Signature of Applicant Printed Name DateA 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 County of ‘on _before me, __ 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 offi seal. Signature __ (seal)Free Recording Requested Pursuant to Government Code Section 27383 When Recorded Mail To: Office of the City and County Surveyor 1155 Market Street, 3rd Floor San Francisco, California 94103 Attn: Director Assessor’s Block 0843 Lot 015 Space Above This Line For Recorder’s Use AGREEMENT TO PROVIDE A LIFE TIME LEASE UNIT BETWEEN THE CITY AND COUNTY OF SAN FRANCISCO AND [PROPERTY OWNER(S)| THIS AGREEMENT TO PROVIDE A LIFETIME LEASE UNIT(s) (“Agreement”) dated for reference purposes only as of this day of » 20 , is by and between the CITY AND COUNTY OF SAN FRANCISCO, a political subdivision of the State of California (the “City”), acting by and through its Department of Public Works, and Peter M. Owens and Carolyn A. Radisch, Stephen L. Owens, Michel Bechirian and Niloo Tehranchi, Alexander E. Apke and Ana M. Munoz, Spencer K. Jones, Geoffrey Pierce Christopher Beahn and Christine Han Beahn, Iris Canada » (“Property Owner(s)”) with respect to the condominium conversion approved for the real property located at 668-678 Page Street as more particularly described in Exhibit A attached hereto (the “Property”) specifically relating to Unit(s) 672 [Insert description of affected Lifetime Lease Unit(s)]. Property Owner(s) also refers to all Owners of fee title interest in the Property. City and Property Owner(s) are also sometimes referred to individually as a “Party” and together as the “Parties.” RECITALS This Agreement is made with reference to the following facts: A. Code Authorization. dd) On June 18, 2013, the San Francisco Board of Supervisors finally passed Ordinance No. 117-13 adopting the Condominium Conversion Fee and Expedited Conversion Program, San Francisco Subdivision Code Section 1396.4 (the “Program”). The Program permits property owners of apartments to convert the units in their building to condominiums under certain conditions. The Program suspends the City’s 200-unit annual cap on condominium. conversions and exempts property owners from the lottery process, under certain conditions. The lottery process had resulted in property owners experiencing a wait of up to nine years to convert to condominiums. The Program provides for an expedited conversion process that allows conversions to occur as soon as the building meets all required criteria for eligibility. In addition, Ordinance No. 117-13 provides for a refund of a portion of the condominium conversion fee for each unit in a building subject to a lifetime lease with a higher percentage of fee reduction available if a larger number of units are subject to a lifetime lease. 1 Agreement Pursuant to Subdivision Code Section 1396.4(2) Chapter 4.3 of the California Government Code directs public agencies to grant concessions and incentives to private developers for the production of housing for lower income households. The Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50 et seq., hereafier “Costa-Hawkins Act”) imposes limitations on the establishment of the initial and all subsequent rental rates for a dwelling unit with a certificate of occupancy issued after February 1, 1995, with exceptions, including an exception for dwelling units constructed pursuant to a contract with a public entity in consideration for a direct financial contribution or any other form of assistance specified in Chapter 4.3 of the California Government Code (Section 1954.52(b)). Pursuant to Civil Code Section 1954.52(b), the City’s Board of Supervisors has enacted as part of the Program, procedures and requirements for entering into an agreement with a private property owner to memorialize the direct financial contributions, and concessions and incentives granted to the property owner within the exception to the Costa- Hawkins Act for the Lifetime Lease Unit included in the Property. @G) The Ellis Act (Government Code Section 7060 et seq., hereafter the “Ellis Act”) allows landlords who comply with its terms to go out of the rental business by evicting their tenants and withdrawing all units in a property from the rental market. By its terms, the Ellis Act does not apply to condominium units. The Ellis Act also provides an exception to its terms where a public entity enters into a contract or agreement with the owner to provide rental housing in exchange for a direct financial contribution. Pursuant to Government Code Section 7060.1(a), the City’s Board of Supervisors has enacted as part of the Program, procedures that, should the Ellis Act be deemed to even apply to the Property, require entering into an agreement with a private property owner to memorialize the direct financial contribution granted to the property owner within the exception to the Ellis Act for the Lifetime Lease Unit included in the Property. B. Development Proposal; Intent of the Parties. The Property is owned in fee by Property Owner. Property Owner proposes to convert 6 _ [number of units] units in the Property to condominium units under the provisions of the Program. Under the terms of the Program, as a condition of development approval of the conversion of the Property, the Property Owner will provide a lifetime lease to an existing tenant in 1 [insert number of units] unit(s) (the “Lifetime Lease Unit(s)”). The Department of Public Works conditional tentative approval of the parcel or subdivision map for the Property allowed, without participation in a lottery process, conversion of the units in the Property, including the Lifetime Lease Unit through the expedited provisions in the Program. The dwelling units that are the subject of this Agreement are the Lifetime Lease Unit(s). The Lifetime Lease Unit(s) are more specifically described as: 672 . The dwelling units in the Property that are not Lifetime Lease Units, are referred to herein as the “Market Rate Units”. This Agreement is not intended to impose restrictions on the Market Rate Units or any portions of the Property other than the Lifetime Lease Units. The Parties acknowledge that this Agreement is entered into in consideration of the respective burdens and benefits of the Parties contained in this Agreement and in reliance on their agreements, representations and warranties. Cc. Lifetime Lease Provision of the Program. The Condominium Conversion Fee and Expedited Conversion Program provides that property owners seeking to convert to condominiums under the Program must offer a lifetime lease to any existing tenants who do not purchase their unit under terms and conditions set forth in Subdivision Code Section 1396.4. 2 Agreement Pursuant to Subdivision Code Section 1396.4The Program provides that the City and property owner shall enter into a binding agreement documenting the requirements of the Program. The Parties hereby enter into this agreement with the City and County of San Francisco pursuant to Chapter 4.3 of the California Government Code for a direct financial contribution and concessions and incentives, and under Government Code Section 7060.1 for a direct financial contribution pursuant to which the property owner covenants to provide the Lifetime Lease Units to satisfy the requirements of the Program and in consideration of the City’s direct financial contribution to the Property Owner and concessions and incentives. Dz. Property Owner’s Election to Convert Through the Program. Property Owner has elected to enter into this Agreement to obtain the benefits and fee reduction provided under the Program in exchange for agreeing to provide the Lifetime Lease Units and acknowledging an exception to the Costa-Hawkins Act and, if applicable, the Ellis Act for the Lifetime Lease Units only. E. Compliance with All Legal Requirements. It is the intent of the Parties that all acts referred to in this Agreement shall be accomplished in such a way as to fully comply with Chapter 4.3 of the California Government Code, the Costa-Hawkins Act, the Ellis Act, the San Francisco Subdivision Code, and all other applicable laws and regulations. AGREEMENT The Parties acknowledge the receipt and sufficiency of good and valuable consideration and agree as follows: 1. GENERAL PROVISIONS 11 Incorporation of Recitals and Exhibits. The preamble paragraph, Recitals, and Exhibits, and all defined terms contained therein, are hereby incorporated into this Agreement as if set forth in full. 2. DIRECT FINANCIAL CONTRIBUTION AND CONCESSIONS AND INCENTIVES FOR THE LIFETIME LEASE UNITS. 2.1 Direct__ Financial Contributions _and__Concessions _and_Incentives. On [date], DPW issued tentative approval for the condominium conversion for the Property through which the Property Owner will receive the following direct financial contribution and concessions and incentives for the provision of the Lifetime Lease Unit: 2.1.1 Payment. In recognition of the rental requirements of Subdivision Code Section 1396.4(g), the City hereby will provide a fee rebate for each unit in which a non- purchasing tenant resides at the time specified by the Program who is offered a lifetime lease and is unrelated by blood, marriage, or domestic partnership to any owner of the building as follows: [insert amount: one Lifetime Lease Unit, 10% fee reduction; two Lifetime Lease Unit, 20% fee reduction for each unit; three Lifetime Lease Unit, 30% fee reduction for each unit.] which equal $ [insert dollar amount]. Agreement Pursuant to Subdivision Code Section 1396.42.1.2 Financial Benefits, Concessions, and Incentives, Granted Through Conversion. Property owner acknowledges that the Program allows it to convert sooner, in some cases up to 6 years or more, at lower mortgage rates applicable to condominiums than the prior lottery system that existing under the San Francisco Subdivision Code. This translates into direct financial benefits as detailed in the report “Condominium Conversion Fee: Economic Impact Report” prepared by the Office of the Controller dated April 2, 2013. And, Property Owner acknowledges the increased property value resulting from conversion sooner than it would have prior to the Program. The Development Impact Fee report prepared by Keyser Marston Associates, dated January 2011 demonstrates a 15% increase in value per unit associated with condominium ownership over other forms of ownership. In addition, the Program allows the Property Owner to avoid the delays, holding costs, and financial uncertainty of the condominium lottery and the prior waiting period for conversion. 2.2 Costa-Hawkins Act and Ellis Act Inapplicable to Lifetime Lease Units Only. The parties acknowledge that, under Section 1954.52(b) of the Costa~-Hawkins Act, the Lifetime Lease Units are exempt from the Costa Hawkins Act. The parties also acknowledge that the Ellis Act does not apply to the Property because the Property will be a condominium upon completion of the conversion process, but that should the Ellis Act be deemed to apply, the Lifetime Lease Units are nevertheless exempt from the Ellis Act under Section 7060.1(a) of the Ellis Act. Through this Agreement, Property Owner hereby enters into an agreement with a public entity in consideration for a direct financial contribution and forms of concessions and incentives specified in California Government Code Sections 65915 et seq. The direct financial contribution and concessions and incentives are comprised of, but not limited to, the items set forth in Section 2.1.. The Parties hereby agree and acknowledge that this Agreement does not alter in any manner the way that the Costa-Hawkins Act, Ellis Act, or any other law apply to the Market Rate Units. 3. COVENANTS OF PROPERTY OWNER 3.1 Providing Lifetime Lease Units. In consideration of the direct financial contribution and concessions and incentives set forth in Section 2.1, and in accordance with the terms and conditions set forth in the Program, Property Owner shall: (i) prior to final map or parcel map approval for the condominium conversion of the Property, provide a written offer for a lifetime lease to the tenants residing in the Lifetime Lease Units and record such offer against the Property; and (ii) at the time each tenant accepts the lifetime lease offer, execute and record against the Property a lifetime lease with the tenant in the form and subject to the rent restrictions and other terms as set forth in Subdivision Code Section 1396.4(g). For purposes of this agreement, tenant shall be defined under San Francisco Administrative Code Section 37.2(t). 3.2 Property Owner’s Acknowledgement that Costa-Hawkins Act and Ellis Act Do Not Apply to the Lifetime Lease Units. The Parties acknowledge that: (i) under the Costa- Hawkins Act, the owner of newly constructed residential real property may establish the initial and all subsequent rental rates for dwelling units in the property without regard to the City’s Residential Rent Stabilization and Arbitration Ordinance (Chapter 37 of the San Francisco Administrative Code); and (ii) under the Ellis Act, landlords who comply with its terms may go out of the rental business by evicting their tenants and withdrawing all units in a property from the rental market. The Parties also understand and agree that the Costa~-Hawkins Act and Ellis 4 Agreement Pursuant to Subdivision Code Section 1396.4Act do not and in no way shall limit or otherwise affect the Lifetime Lease Units because: (i) upon conversion of the Property, the Ellis Act will not apply to the Property due to the fact that the Property will be a condominium; and (ii) this Agreement falls within an express exception to the Costa~-Hawkins Act as a contract with a public entity in consideration for a direct financial contribution or other forms of assistance specified in Chapter 4.3 (commencing with section 65915) of Division | of ‘Title 7 of the California Government Code. Should the Ellis Act be deemed to apply to the Property despite its legal status as a condominium, Property Owner acknowledges and agrees that this Agreement falls within an express exception to the Ellis Act as a contract with a public entity in consideration for a direct financial contribution. Property Owner acknowledges that the direct financial contribution and the concessions and incentives specified in Section 2 result in identifiable and actual cost reductions and economic benefits to the Property and therefore fall within the exceptions set forth in Section 1954.52(b) of the Costa- Hawkins Act and Section 7060.1(a) of the Ellis Act. Property Owner also acknowledges that the Cily would not be willing to enter into this Agreement and provide the fee rebate without the understanding and agreement that the Costa-Hawkins Act and Ellis Act do not apply to the Lifetime Lease Units. Should the Lifetime Units be deemed subject to the Costa~Hawkins Act and/or the Ellis Act, as a material part of the consideration for entering into this Agreement, Property Owner, on behalf of itself and all its successors and assigns to this Agreement, hereby expressly waives, now and forever, any and all rights it may have under the Costa-Hawkins Act and/or the Ellis Act with respect only to the Lifetime Lease Units (but only the Lifetime Lease Units and not as to the Market Rate Units) consistent with Section 3.1 of this Agreement. Without limiting the foregoing, Property Owner, on behalf of itself and all successors and assigns to this Agreement, agrees not to bring any legal or other action against City seeking application of the Costa~Hawkins Act and/or the Ellis Act to the Lifetime Lease Units for so long as the Lifetime Lease Units are in effect. The Parties understand and agree that the City would not be willing to enter into this Agreement without the waivers and agreements set forth in this Section 3.2. 3.3 Property Owner’s Waiver of Right to Seek Waiver of Program Requirements. Developer specifically agrees to be bound by all of the provisions of the Program applicable to the Lifetime Lease Units. Developer covenants and agrees that it will not seek a waiver of the provisions of the Program applicable to the Lifetime Lease Units. 4, MUTUAL OBLIGATIONS Al Good Faith and Fair Dealing. The Parties shall cooperate with each other and act in good faith in complying with the provisions of this Agreement and implementing the Program. 4.2 Other Necessary Acts. Each Party shall execute and deliver to the other all further instruments and documents as may be reasonably necessary to carry out this Agreement, the Program (as applied to the Lifetime Lease Units) and applicable law in order to provide and secure to each Party the full and complete enjoyment of its rights and privileges hereunder. 4.3 Effect of Future Changes to Program. The City hereby acknowledges and agrees that, in the event that the City adopts changes to the Program after the date this Agreement is executed by both Parties, nothing in this Agreement shall be construed to limit or prohibit any Agreement Pursuant to Subdivision Code Section 1396.4rights Property Owner may have to modify requirements with respect to the Lifetime Lease Units to the extent permitted by such changes to the Program. 5. PROPERTY OWNER = REPRESENTATIONS, WARRANTIES AND COVENANTS. 5.1 Interest of Property Owner, Property Owner represents thal il is the legal and equilable fee owner of the Property and thal it has the power and authority to bind itsclf to the terms of this Agreement. Property Owner is a TIC , duly organized and validly oxisting and in good standing under the laws of the State of California. Property Owner has all requisite power and authority to own property and conduct business as presently conducted. Property Owner has made all filings and is in good standing in the State of California. 5.2 No Conflict With Other Agreements; No Further Approvals; No Suits. Property Owner warrants and represents that it is not a party to any other agreement that would conflict with the Property Owner’s obligations under this Agreement. Neither Property Owner’s articles of organization, bylaws, or operating agreement, as applicable, nor any other agreement or law in any way prohibits, limils or otherwise affects the right or power of Property Owner to enter into and perform all of the terms and covenants of this Agreement. No consent, authorization or approval of, or other action by, and no notice to or filing with, any governmental authority, regulatory body or any other person is required for the due execution, delivery and performance. by Property Owner of this Agreement or any of the terms and covenants contained in, this Agreement. To Property Owner’s knowledge, there are no pending or threatened suits or proccedings or undischarged judgments affecting Property Owner or any of its members before any court, governmental agency, or arbitrator which might materially adversely affect Property Owner’s business, operations, or assets or Property Owner’s ability to perform under this Agreement. 5.3. No Inability to Perform: Valid Execution. Property Owner warrants and represents that it has no knowledge of any inability to perform its obligations under this Agreement. The execution and delivery of this Agreement and the agreements contemplated hereby by Property Owner have been duly and validly authorized by all necessary action. This Agreement will be a legal, valid and binding obligation of Property Owner, enforceable against Property Owner in accordance with its terms. 5.4 Conflict of Interest. Through its execution of this Agreement, the Property Owner acknowledges that it is familiar with the provisions of Section 15.103 of the City’s Charter, Article [II, Chapter 2 of the City’s Campaign and Governmental Conduct Code, and Section 87100 et seq. and Section 1090 et seq. of the California Government Code, and certifies that it does not know of any facts which constitute a violation of said provisions and agrees that it will immediately notify the City if it becomes aware of any such fact during the term of this Agreement. 5.5 Notification of Limitations on Contributions. Through execution of this Agreement, the Property Owner acknowledges that it is familiar with Section 1.126 of City’s Campaign and Governmental Conduct Code, which prohibits any person who contracts with the City, whenever such transaction would require approval by a City elective officer or the board on 6 Agreement Pursuant to Subdivision Code Section 1396.4which that City elective officer serves, from making any campaign contribution to the officer at any time from the commencement of negotiations for the contract until three (3) months after the date the contract is approved by the City elective officer or the board on which that City elective officer serves. San Francisco Ethics Commission Regulation 1.126-1 provides that negotiations are commenced when a prospective contractor first communicates with a City officer or employee about the possibility of obtaining a specific contract. This communication may occur in person, by telephone or in wriling, and may be initialed by the prospective contractor or a City officer or employee. Negotiations are completed when a contract is finalized and signed by the City and the contractor. Negotiations are terminaled when the City and/or the prospective contractor end the negotiation process before a final decision is made to award the contract. 5.6 Nondiscrimination. In the performance of this Agreement, Property Owner agrees not to discriminate on the basis of the fact or perception of a person’s, race, color, creed, religion, national origin, ancestry, age, height, weight, sex, sexual orientation, gender identity, domestic partner status, marital status, disability or Acquired Immune Deficiency Syndrome or HIV status (AIDS/HIV status), or association with members of such protected classes, or in retaliation for opposition to discrimination against such classes, against any City employee, employee of or applicant for employment with the Property Owner, or against any bidder or contractor for public works or improvements, or for a franchise, concession or lease of property, or for goods or services or supplies to be purchased by the Property Owner. A similar provision shall be included in all subordinate agreements let, awarded, negotiated or entered into by the Property Owner for the purpose of implementing this Agreement. 6. AMENDMENT; TERMINATION 6.1 Amendment or Termination, Except as provided in Sections 6.2 (Automatic Termination) and 8.3 (Remedies for Default), this Agreement may only be amended or terminated with the mutual written consent of the Parties. 6.2. Automatic Termination. This Agreement shall automatically terminate upon termination of all lifetime leases for the Lifetime Lease Units, in accordance with Subdivision Code Section 1396.4(g). 7. TRANSFER OR ASSIGNMENT; RELEASE; RIGHTS OF MORTGAGEES; CONSTRUCTIVE NOTICE 7A Agreement Runs With The Land. Property Owner may assign or transfer its duties and obligations under this Agreement to another entity, provided such entity is the legal and equitable fee owner of the Property (“Transferee”). As provided in Section 9.2, this Agreement runs with the land and any Transferee will be bound by all of the terms and conditions of this Agreement. 7.2 Rights of Property Owner. The provisions in this Section 7 shall not be deemed to prohibit or otherwise restrict Property Owner from (i) granting easements or licenses to facilitate development of the Property, (ii) encumbering the Property or any portion of the improvements thereon by any mortgage, deed of trust, or other device securing financing with respect to the Property, (iii) granting a leasehold interest in all or any portion of the Property 7 Agreement Pursuant to Subdivision Code Section 1396.4(other than the Lifetime Lease Units), or (iv) transferring all or a portion of the Property pursuant to a sale, transfer pursuant to foreclosure, conveyance in lieu of foreclosure, or other remedial action in connection with a mortgage. None of the terms, covenants, conditions, or restrictions of this Agreement or the Program shall be deemed waived by Cily by reason of the rights given to the Property Owner pursuant to this Section 7.2. 7.3. Property Owner’s Responsibility for Performance. If Property Owner transfers or assigns all or any portion of the Properly or any interest therein to any other person or entity, Property Owner shall continue to be responsible for performing the obligations under this Agreement as to the transferred property interest until such time as there is delivered to the City a legally binding agreement pursuant to which the Transferee assumes and agrees to perform Property Owner’s obligations under this Agreement from and after the date of transfer of the Property (or an interest therein) to the Transferee (an “Assignment and Assumption Agreement”). The City is entitled to enforce each and every such obligation assumed by the Transferee directly against the Transferee as if the Transferee were an original signatory to this Agreement with respect to such obligation. Accordingly, in any action by the City against a Transferee to enforce an obligation assumed by the Transferee, the Transferee shall not assert any defense against the City’s enforcement of performance of such obligation that is attributable to Properly Owner’s breach of any duly or obligation to the Transferee arising out of the transfer or assignment, the Assignment and Assumption Agreement, the purchase and sale agreement, or any other agreement or transaction between the Property Owner and the Transferee. The transferor Property Owner shall remain responsible for the performance of all of its obligations under the Agreement prior to the date of transfer, and shall remain liable to the City for any failure to perform such obligations prior to the date of the transfer. 7.4 Release Upon Transfer or Assignment. Upon the Property Owner’s transfer or assignment of all or a portion of the Property or any interest therein, including the Property Owner’s rights and interests under this Agreement, the Property Owner shall be released from any obligations required to be performed from and after the date of transfer under this Agreement with respect to the portion of the Pr