CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD)

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City's violations of state law as set forth in Government Code section 65585,subdivision (k). I-lCD shall offer the City two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation prior to initiating any legal proceeding against the City. 5. Suspension of Enforcement.HCD agrees not to initiate enforcement, including the issuance of a Notice of Violation or the initiation of litigation,until and unless HCD makes a formal determination of noncompliance and the City does not within mutually agreed upon timeline not to exceed 60 days of receiving HCD's written findings commence either or both of the corrective actions set forth in Section 4.Notwithstanding the above, HCD may initiate enforcement if the City does not timely complete its obligations under Section 3. HCD will not initiate any enforcement proceeding if the City's delay is due solely to a delay in HCD review of a City submittal. 6. Timeline to Cure: The City and HCD shall complete the steps set forth in Section 3 in an amount of time that is reasonable,but no later than September 1,2024. HCD reserves the right to extend its timeline for determination of compliance as necessary. 7. Opportunity to Cure. In the event the City fails to comply with the terms of theMOU,HCD shall provide written notice identifying the term with which the City has failed to comply. The notice shall articulate the specific deficiencies in the City's analysis with supporting data, 8. Claims Extinguished and Tolling.HCD's claims against the City for AB 2011 noncompliance will be extinguished upon HCD's letter of compliance.Conversely, those same claims are tolled until such time HCD determines continued noncompliance,pursuant to the timeframes and schedule of potential actions set forth in Sections 3,4,and 6. TERM OF MOU This MOU shall take effect upon full execution by the authorized representatives of each Party and shall remain in effect until the Parties implement and comply with each milestone pursuant to the agreed-upon deadlines. AMENDMENT The Parties may amend this MOU only in and by a writing executed by each of the Parties hereto,which amendment shall be incorporated into this MOU and become effective on the date said amendment is fully executed by both Parties. NO ADMISSION OF NONCOMPLIANCE The City reserves all rights to defend its actions previously taken,when its City Council adopted Resolution No.2023-037 and the Ordinances,exempting specified parcels 7