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- Northern California Land Trust*
Residential Lease - with Option to become a Prospective Member in a Limited Equity Stock Cooperative
LESSOR: Northern California Land Trust, a non-profit corporation (NCLT)
LESSEE:
DATE:
PREMISES: 2425 California Street, Berkeley, CA # _________
THIS AGREEMENT is by and between the above named parties, covering the Premises in Berkeley, California, described above, who agree as follows.
1. RECITALS.
1.1 The Premises is one (1) of six (6) residential units in the property located at 2425 California Street. The entire property, including the Premises, shall be referred to as the “Property”.
1.2 Lessor intends to form a Limited Equity Housing Cooperative (the “Cooperative”) and to grant the Cooperative the option to purchase the improvements under terms to be defined by Lessor at such time as the option is granted. In turn, the Cooperative will lease the six (6) residential units to persons who meet certain financial criteria, and who desire to purchase memberships in the Cooperative (the “Prospective Members”). The Cooperative will enter into lease/option agreements (the “Co-op Lease/Option”) with such Prospective Members, requiring them to first lease their respective unit, but granting to them an option to purchase a membership in the Cooperative (the “Membership”).
1.3 Lessor will control and manage the Cooperative prior to the Cooperative selling Memberships. Before the Prospective Members can purchase their Memberships, each Prospective Member must meet certain financial criteria, and must first rent a unit in the Property, undergo certain training as prescribed by the Lessor, and demonstrate, to the Lessor’s satisfaction, that the Prospective Members are capable of sustaining the Cooperative after they purchase their Membership.
1.4 Lessee desires to become a Prospective Member of the Cooperative, and would like to execute a Co-op Lease/Option, but cannot wait until formation of the Cooperative to find housing. Lessee has asked Lessor to rent a unit in the Property to Lessee prior to the formation of the Cooperative. Lessee intends to become a Prospective Member as soon as the Cooperative is legally created.
1.5 Thus, Lessor and Lessee have agreed that Lessee shall initially rent the Premises in accordance with this Agreement. Furthermore, Lessor grants to Lessee an option to become a Prospective Member when the Cooperative is legally created, upon terms and conditions acceptable to the Cooperative and Lessor, by executing the Co-op Lease/Option.
2. LEASE PROVISIONS.
2.1 Income Verification. Prior to the execution of this Agreement and the effectiveness of this Agreement, Lessee shall provide Lessor with written verification of his or her total household gross annual income, including written verification of all sources of income and employment. As mandated by its By-Laws, the Northern California Land Trust serves low income residents. In order to ensure this service at the property, Lessor’s position is to rent the Premises to a tenant whose gross annual income, upon initial occupancy, does not exceed the Oakland/Berkeley Area Median Income (AMI) limits set forth in Exhibit A. Lessee agrees to be bound by these restrictions, as administered by Lessor.
2.2 Lease Term. The Lease Term of this Agreement shall be for that period of time, commencing (the “Commencement Date”) and continuing until the earlier of (i) thirty (30) days after a Co-op Lease/Option has been delivered to Lessee, or (ii) one (1) year from the Commencement Date (the “Expiration Date”). Lessee agrees that on or before the Expiration Date, Lessee shall either (i) execute the Co-op Lease/Option and convert his or her status as Lessee under this Agreement to the status of a Prospective Member, or (ii) vacate the Premises. Lessor shall have the right to extend the period of this lease. Lessee may end this lease by giving written notice to Lessor at least 60 days in advance. Lessee shall be bound by all terms of this lease until the end of the 60 day period.
2.3 Rent. Lessee shall pay to Lessor Monthly Rent of _________ ____________ ($ ), in advance, for each month of the Lease Term, by the first day of each month. Lessee shall pay Monthly Rent to Lessor through it’s agent, Unity Gardens Housing Cooperative. Checks should be made payable to Unity Gardens and should be deposited in the rent box located in the storage room on the property.
2.4 Late Charge. Lessee acknowledges that late payment of Monthly Rent will cause Lessor and Unity Gardens to incur additional costs and expenses. Therefore, if any installment of Monthly Rent due from Lessee is not received by Lessors agent, Unity Gardens by 5:00 P.M. of the fifth (5th) day of the month, Lessee shall pay to Unity Gardens additional rent of $60.
2.5 Returned Check Fee. Lessor will charge Lessee $25.00 for each item returned unpaid by the bank. Additionally, if new payment is not rendered by the due date additional rent will accrue.
2.6 Security Deposit. On the Commencement date, Lessee shall pay to Lessor the sum equal to ___________________________($ ) as a “Security Deposit”. Lessor may use therefrom such amounts as are reasonably necessary (i) to remedy Lessee’s default in the payment of Monthly Rent (ii) to repair damages caused by Lessee, Lessee’s household members, family members, invitees, employees and agents, (iii) to clean the Premises, if necessary, upon termination of tenancy, and (iv) to replace or repair personal property or appurtenances exclusive of ordinary wear and tear. If used toward Monthly Rent or damages during the term of the tenancy, Lessee agrees to reinstate the total Security Deposit to its original amount upon five (5) days written notice delivered to Lessee in person or by mail. If Lessee purchases a Membership in the Cooperative in accordance with the Co-op Lease/Option, any Security Deposit remaining shall be credited towards the purchase price of such Membership.
2.7 Security Deposit Interest. All security deposits will be credited with the current simple savings account interest rate, once a year. This interest will be first applied to any outstanding amounts owed by Lessee. If no amount is due, Lessee shall be issued a check for the previous years interest accrued by January 10.
2.8 Utilities. Lessee agrees to pay when due for all utilities and services supplied to the Premises, until cooperative takes responsibility for specific utilities.
2.9 Occupants. The Premises are for the sole use as a residence by Lessee, and the following members of Lessee’s household:
Name: Relationship to Lessee:
Lessee must receive prior written consent from Lessor before adding any permanent new household members to their unit. A permanent household member is any guest residing in Lessor’s unit or common area for more than 30 days. Lessee may not add any permanent new household members before having completed at least one year of occupancy at the property. Additionally each new household member shall be subject to all provisions of this lease, and Lessee plus any additional household members together must not exceed the income limits indicated in Exhibit “B” of this lease before the additional member/s are approved.
2.10 Assignment and Subletting. Lessee may assign Lessee’s interest or sublet the property, but only with the prior written consent of Lessor. Lessor reserves the right to assess the suitability of a proposed sublessee with regard to the purposes of the Northern California Land Trust (Lessor), the needs of the neighborhood and compatibility with other tenants. Lessor shall not unreasonably withhold requested written consent.
2.11 Use. The Premises shall be used for a residence only. Lessee shall not disturb, annoy, endanger or interfere with neighbors, nor use the Premises for any unlawful purposes, nor violate any law or ordinance, nor commit waste or nuisance upon or about the Premises.
2.12 Lessee Required to Attend Workshops, Meetings and Participate in Property Management. Lessor will organize Resident Ownership Program workshops to prepare Lessee for Prospective Membership and actual Membership in the Cooperative. Lessee and all adult household members must attend Resident Ownership Program workshops and meetings. When a household member or Lessee cannot attend a Resident Ownership Program workshop or meeting, at least twenty-four (24) hours advance consent of Lessor is required. The unexcused absence by Lessee or any adult member of Lessee’s household to two (2) workshops or meetings is grounds for the termination of this Agreement. Lessee’s participation in “property management” as determined by Lessor also is required as a part of the overall training Lessee must undergo to become a Prospective Member and ultimately a Member of the Cooperative.
2.10 Lessee’s Maintenance Obligations. Lessee shall properly use and operate all appliances and plumbing fixtures and keep the Premises in a clean and sanitary condition and shall comply with all state and local laws with respect to the use of the Premises. Excluding ordinary wear and tear, Lessee shall notify Lessor and pay for all repairs and replacements caused by (i) Lessee’s negligence or misuse, and (ii) the negligence or misuse by Lessee’s household members, family members, invitees, employees and agents.
2.14 Animals/Pets. No animals or pets of any kind may be kept in the Premises or on the Property without prior written consent of Lessor.
2.15 Rules and Regulations. Lessee agrees to comply with all House Rules, regulations and policies which are adopted by Lessor before or after the effective date of this Agreement and delivered to Lessee.
2.16 Alterations. Lessee shall not paint, wallpaper or make any other alteration to the Premises without the prior written consent of Lessor.
2.17 Entry and Inspection. Upon not less than seventy two (72) hours notice, Lessee shall make the Premises available during normal business hours to Lessor and Lessor’s authorized agents and representatives, for the purpose of entering (i) to make necessary or agreed repairs, alterations or improvements or supply necessary or agreed services, (ii) to show the Premises to prospective or actual purchasers, mortgagees, lessees or contractors, and (iii) to inspect the Premises to ensure compliance by Lessee with the provisions of this Agreement. In an emergency, Lessor and Lessor’s authorized agents and representatives may enter the Premises, at any time, without prior permission from Lessee.
2.18 Insurance. Lessor shall maintain fire insurance on the property covering the full replacement cost of the Premises. However, Lessor’s insurance does not cover, nor shall Lessor be responsible for, Lessee’s personal property. Lessee shall, if Lessee so desires, obtain a separate policy to protect and insure Lessee’s personal property.
3. OPTION TO BECOME A PROSPECTIVE MEMBER IN THE COOPERATIVE.
3.1 Grant of Option. Lessor grants to Lessee the option to become a Prospective Member in the Cooperative (the “Option”) in accordance with the provisions of this Agreement.
3.2 Option Term. The term of the Option granted herein shall coincide with the Lease Term.
3.3 Method of Exercising Option. Upon availability of share transfer in the Cooperative, Lessor shall provide Lessee with documents to become a shareholder in the Co-op therefore exercising Lessee’s Option. The Option granted in this Agreement shall be exercised by Lessee, in accordance with the co-operative’s By-Laws, by purchasing a share in the Cooperative and delivering an originally executed copy of the Membership Certificate to Lessor within thirty (30) days of the date Lessee receives this Option. Should the Option not be effectively exercised, the Option shall cease and Lessee shall immediately vacate the Premises. If Lessee exercises the Option, the provisions of the Co-op Documents shall constitute a binding contract for the continued use of the Premises.
3.4 Lessor to Determine Provisions of Co-op Lease/Option. The provisions of the Co-op Lease/Option shall be at Lessor’s sole discretion provided, however, that the assessment levels specified in the Co-op Lease/Option shall be consistent with the affordability restrictions that apply to the household as set forth in Exhibit A or, if applicable, Exhibit B.
4. MISCELLANEOUS.
4.1 Lessor’s Remedies. In the event Lessee does not vacate the Premises upon the Expiration Date, upon early expiration of or termination of this Agreement due to a default by Lessee, or upon expiration of the Option, Lessor shall have the right to bring an action against Lessee for Unlawful Detainer of the Premises so that Lessor may regain possession of the Premises. The foregoing shall not be construed to limit any other remedy Lessor may have against Lessee for a breach hereunder, either in law or equity.
4.2 Indemnification. Lessee shall indemnify, defend and hold harmless Lessor from and against any and all claims, liabilities, suits, demands, losses, costs and expenses, including reasonable attorneys’ fees and all legal expenses and fees incurred on appeal, and all interest thereon (collectively “Losses”), accruing or resulting to any and all persons, firms or any other legal entities on account of any damages or losses to property or persons, including death, arising from any act, omission or negligence by Lessee, its household members, family members, invitees, employees, and agents.
4.3 Attorneys’ Fees. In the event of any controversy, claim or dispute between the parties hereto arising out of or relating to this Agreement or the breach thereof, each party shall bear its own attorneys’ fees and costs.
4.4 Estoppel Certificate. Within ten (10) days after written notice, Lessee agrees to execute and deliver an Estoppel certificate in the form and content submitted by Lessor acknowledging that this Agreement is unmodified and in full force and effect or in full force and effect as modified and stating the modifications. Failure to comply shall be deemed Lessee’s acknowledgment that the certificate as submitted by Lessor is true and correct and may be relied upon by a lender or purchaser.
4.5 Sex Offender (Megan’s Law) The California Department of Justice, sheriff’s departments, police departments servicing jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subsection (a) of Section 290.4 of the Penal Code. The data base is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a “900” telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through the “900” telephone service.
4.6 Notice to Lessor/Lessee. Notices to Lessor shall be directed to that address provided to Lessee by Lessor. Notices to Lessee shall be at the Premises.
4.7 Entire Agreement. This Agreement contains the entire understanding of the parties hereto with respect to the matters contained herein, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. No provision of this Agreement may be amended or added to except by an agreement in writing signed by Lessor and Lessee.
4.8 Time. Time is specifically deemed to be of the essence of this Agreement.
4.9 Waiver. No waiver of any provision of this Agreement shall be effective against either party hereto unless it is in writing and signed by the party granting the waiver. The failure to exercise any right shall not operate as a waiver of such right.
4.10 Governing Law. This Agreement shall be governed by the laws of the State of California.
4.11 Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be or become invalid, illegal or unenforceable, such provision or the application thereof shall, if and to the extent possible, be reformed rather than voided in order to achieve the intent of the parties, and the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is invalid, illegal or enforceable, shall not be affected thereby, and each provision of this Agreement shall be enforced to the fullest extent permitted by law.
4.12 Counterparts. This Agreement, and all amendments and supplements to this Agreement, may for convenience each be signed in any number of counterpart copies with the same effect as if the signature to each such counterpart copy were upon a single instrument. Each counterpart shall be deemed an original as to any party whose signature it bears and all of such counterparts taken together shall constitute one document.
4.13 Exhibits. All exhibits referred to are attached to this Agreement and incorporated herein by this reference.
4.14 Payments. All payments are to be made in lawful money of the United States of America.
4.15 Interpretation. The section headings of this Agreement are for convenience only and in no way define, limit, extend or describe the scope or intent of this Agreement or any provision hereof. As used herein, the neuter includes the feminine and masculine genders, and the singular includes the plural.
5.1 EXECUTED as of the dates set forth below:
LESSOR:
NORTHERN CALIFORNIA LAND TRUST, a non-profit California corporation.
By: Date
Its:
LESSEE:
Date