HomeMy WebLinkAboutNORTH HARBOR HOUSING PARTNERS, LP (CO JAMBOREE HOUSING CORPORATION (2)-JbjI -05LI -DI
M ST AMERICAN TITLE-NCS
MAY 2 1 2021
WHEN RECORDED MAIL TO:
City of Santa Ana
Clerk of Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
p'. CDR In) Claudia SMaw� a
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
IIIIIIIIIIIIIIIII IIIIIIIIIIIIII IIII IIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIII NO FEE
.$R0012770801$*
20210002855741:35 pm 04/28121
363 RW10A Al2 19
0.00 0.00 0.00 0.00 64.00 0.00 0.000.000.00 0.00
INSURANCE NOT REQUIRED FREE RECORDING REQUESTED
WORK MAY PROCEED [Government Code Section 27383]
CLERK OF COUNCIL
DATE:
Affordability Restrictions on Transfer of Property
ti�x1
Q12
P
IF.,
VW
-Ol11RFD
' 'OCE1= 0
,UUh'"i
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, Califomia 92702
Attention: Clerk of the Council
A-2021-054-01
Nc5_ gOF-141 _ SPACE ABOVE THIS LINE FOR RECORDING USE
AFFORDABILITY RESTRICTIONS
ON TRANSFER OF PROPERTY
(1108 North Harbor Boulevard, Santa Ana, California)
THESE AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
(the "Restrictions") are entered into as of April 20, 2021, by and among and North Harbor
Housing Partners LP, (referred to herein as the "Developer") a California limited
partnership, and the City of Santa Ana, a charter city and municipal corporation (the
"City").
RECITALS:
A. Developer is the owner of that certain real property located at 1108 North
Harbor Boulevard, (the "Property") located in the City of Santa Ana more particularly
described in Exhibit A, which is attached hereto and incorporated herein by this reference.
B. The City is the recipient of Community Development Block Grant
("CDBG") funds from HUD pursuant to Tile I of the Housing and Community
Development Act of 1974, as amended ("Act") and 24 CFR Part 570 ("CDBG
Regulations").
C. The City is authorized by the CDBG Regulations to expend funds to increase
the supply of low- and moderate -income housing available at affordable housing costs.
D. Developer is entering into this agreement to acquire and, subject to
entitlement approvals, rehabilitate an adaptive reuse project for the purpose of providing
eighty-nine (89) units of housing that will be affordable to Extremely -Low Income
households ("Assisted Units"), the Developer and the City have entered into that certain
Loan Agreement, dated on or about the date hereof (the "Loan Agreement') to which
these Restrictions are attached as Exhibit F, which, along with all of its attachments, is
incorporated herein by this reference (any capitalized term that is not otherwise defined in
these Restrictions shall have the meaning ascribed to such term in the Loan Agreement).
2 vx\
pQR
0- Co�rc��cf� W1fA-
Ir�.„17ti;;.r ,'OIIIRFD
W,. 'ROCEF 0
.OUN A
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
Return ORIGINAL
executed copy to COTC,
M-30
A-2021-054-01
SPACE ABOVE THIS LINE FOR RECORDING USE
FREE RECORDING REQUESTED
[Government Code Section 6103]
AFFORDABILITY RESTRICTIONS
ON TRANSFER OF PROPERTY
(1108 North Harbor Boulevard, Santa Ana, California)
THESE AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
(the "Restrictions") are entered into as of April 20, 2021, by and among and North Harbor
Housing Partners LP, (referred to herein as the "Developer") a California limited
partnership, and the City of Santa Ana, a charter city and municipal corporation (the
"City"),
RECITALS:
A. Developer is the owner of that certain real property located at 1108 North
Harbor Boulevard, (the "Property") located in the City of Santa Ana more particularly
described in Exhibit A, which is attached hereto and incorporated herein by this reference.
B. The City is the recipient of Community Development Block Grant
("CDBG") funds from HUD pursuant to Tile I of the Housing and Community
Development Act of 1974, as amended ("Act") and 24 CFR Part 570 ("CDBG
Regulations").
C. The City is authorized by the CDBG Regulations to expend funds to increase
the supply of low- and moderate -income housing available at affordable housing costs.
D. Developer is entering into this agreement to acquire and, subject to
entitlement approvals, rehabilitate an adaptive reuse project for the purpose of providing
eighty-nine (89) units of housing that will be affordable to Extremely -Low Income
households ("Assisted Units"), the Developer and the City have entered into that certain
Loan Agreement, dated on or about the date hereof (the "Loan Agreement') to which
these Restrictions are attached as Exhibit F, which, along with all of its attachments, is
incorporated herein by this reference (any capitalized term that is not otherwise defined in
these Restrictions shall have the meaning ascribed to such term in the Loan Agreement).
E. The Loan Agreement provides, among other things, for the use of the Property
for affordable housing with all Assisted Units being restricted to Extremely -Low Income
households, at Affordable Rent(s).
F. The Loan Agreement contains certain provisions relating to the use of the
Property.
NOW, THEREFORE, CITY AND DEVELOPER COVENANT AND AGREE AS
FOLLOWS:
1. Developer covenants and agrees (for itself, its successors, its assigns, and
every successor in interest to the Property or any part thereof) that Developer, such
successors, and such assigns shall use the Property exclusively to provide affordable
housing for Extremely -Low Income households, as provided in these Restrictions and in
the Loan Agreement.
2. Developer, for itself and its successors and assigns, hereby covenants and
agrees that all of the units in the Property (less two managers' units) (the "Units") shall be
rented exclusively, at Affordable Rent, to Extremely -Low Income households to the extent
provided for herein. Area median income levels and Affordable Rents are subj ect to
adjustment from time to time as provided in Section 3 below.
3. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE ' OF
THE PROPERTY
3.1 Use Covenants and Restrictions
A. Developer agrees and covenants, which covenants shall run with the land and bind
Developer, its successors, its assigns and every successor in interest to the Property that
Developer will make all rental units on the Property available to extremely low-income
households at rents affordable to such households for fifty-five (55) years from the issuance of
the Certificate of Completion. The CDBG restrictions shall be enforced until the date that is
fifteen (15) years after the date on which the Certificate of Completion is issued or until
repayment of principal and all accrued interest on the CDBG Loan, whichever comes last. The
City permits the Developer to limit the eligibility and/or give preference to a particular segment
of the population in accordance with 24 CFR 92.253(d).
B. The Project shall consist of ninety-one (91) units, two (2) of which shall be on -site
manager's units.
C. At initial lease up, households in the units cannot earn more than 30% of AMI.
Rental increases shall be in conformance with federal and state law. After the fifteen (15)
year CDBG Compliance Period, the City shall require that the units remain affordable for
the Term of this Agreement, with rents calculated based on assumed household size at the
same income levels.
D. All of the units will be restricted to occupancy by families earning no more than thirty
(30%) of the Area Median Income (AMI), adjusted for household size.
2of14
E. Maximum Occupancy will be two (2) people per bedroom plus one (1). Example for a
two -bedroom unit, five (5) people would be maximum occupancy.
F. Affordable rents shall be governed by the Tax Credit Allocation Committee.
G. Developer must have a written lease between tenant and owner for a period of at least
one year, unless a shorter period is mutually agreed upon. Leases must be consistent with the
HOME Program regulations at 24 CFR 92.253(a) and (b).
3.2 Affordability Levels/Unit Mix:
The affordability levels/unit mix for the Project is as follows:
Unit Size
No. Units
AMI
Studio
89
1 30%
The remaining units will be one (1) two -bedroom unit and one (1) three -bedroom unit
reserved for the onsite managers.
(1) In no event shall the rent charged to the units be more than that amount of the rent
affordable to a family at 30% Area Median Income as published by the Tax Credit
Allocation Committee, as amended from time to time.
(2) Annually with the financial statements, the Developer shall provide an annual report
of rents and occupancy of all units, to verify compliance with affordability
requirements.
The affordable rents charged at the Project must comply with the standards set forth by the
California Tax Credit Allocation Committee (TCAC). Notwithstanding anything to the
contrary contained in the Loan Agreement or these Restrictions, in the event of a foreclosure,
or delivery of a deed in lieu of foreclosure, of any Senior Loan, (1) the maximum qualifying
tenant household income shall be increased to 60% of Area Median Income adjusted for
family size appropriate to the unit, and (2) the maximum annual affordable rent shall be
increased to comply with the rent limits set forth by California Tax Credit Allocation
Committee (TCAC) for households at 60% Area Median Income.
Utility allowances must be deducted from the Maximum Gross Monthly Rent. The Housing
Authority of the City of Santa Ana publishes the Utility Allowance Schedule.
Initial rents maybe recalculated to allowable rental amounts at the time of initial lease -up
following completion of construction in accordance with any changes in allowable rent and
income tables as published by HUD.
3.3 Rent Increases: On an annual basis, the City shall provide Developer with the
maximum allowable schedule of rents for the Property in accordance with changes in
allowable rent and income tables published by the California Tax Credit Allocation
Committee (TCAC), provided however that the rent for the CDBG units shall in no event be
higher than the rent for the equivalent non-CDBG assisted units within the Project. In no
3of14
event can Developer charge any tenant more than such amount. The City will make all best
efforts to provide Developer with the maximum allowable schedule of rents within no more
than 30 calendar days after the date TCAC publishes the allowable rent and income tables.
3.4 Increase in Rent and Occupancy Restrictions upon Termination of Rental
Subsidies. The parties acknowledge that Developer is only able to rent units to Extremely
Low Income Households because the City is providing 89 Project -Based Vouchers for
Permanent Supportive Housing ("PBV Vouchers"). In the event the PBV Vouchers
expire, terminate, are not renewed or are reduced for any reason other than a default by
Developer under the PBV Vouchers, then the occupancy requirements for all of the Units
shall automatically increase to 60% of the Area Median Income and the Affordable Rent
shall increase to Affordable Rents for households earning 60% of the Area Median Income
in accordance with the rent limits set forth by the California Tax Credit Allocation
Committee (TCAC for households earning 60% of the Area Median Income.
3.5 Reserved.
4. Maximum Rents. Developer, its successors and assigns shall not charge
rents for the Units in excess of the amounts set forth herein, as adjusted on the basis of the
revised schedules of area median incomes issued from time -to -time by HUD. The City
shall notify Developer in writing of the adjusted allowable maximum incomes and rents.
5. Tenant Selection Plan. Developer shall adopt and include as part of its
Management Plan (described in Section 11 below), written tenant selection policies and
criteria for the Units, that meet the following requirements:
(a) Are consistent with the purpose of providing housing for Extremely
Low Income households;
(b) Are reasonably related to program eligibility and the applicants'
ability to perform the obligations of the lease;
(c) Give reasonable consideration to the housing needs of households
that .would have a preference under 24 CFR 960.206 (Federal selection preferences for
admission to Public Housing);
(d) Provide for:
i. The selection of tenants from a written waiting list in the
chronological order of their application, insofar as is practicable; and
ii. The selection of tenants for accessible units; and
iii. The prompt written notification to any rejected applicant of
the grounds for any rejection;
(e) Subject to compliance with the CDBG Regulations, the HUD -
Veterans Affairs Supportive Housing referral program requirements, the County of Orange
4of14
coordinated entry system and applicable California and federal fair housing laws, local
preference for Santa Ana residents and workers in tenant selection shall be a requirement
of the Project. Subject to applicable laws and regulations governing nondiscrimination
and preferences in housing occupancy required by HUD or the State of California, as well
as the City of Santa Ana Affordable Housing Funds Policies and Procedures, the
Developer shall give preference in leasing units in the following order of priority:
First priority shall be given to persons who have been
permanently displaced or face permanent displacement from
housing in Santa Ana as a result of any of the following:
a. A redevelopment project undertaken pursuant to
California's Community Redevelopment Law (Health &
Safety Code Sections 33000, et seq.) -- applicable only
to projects funded by the Low and Moderate Income
Housing Asset Fund.
b. Ellis Act, owner -occupancy, or removal permit eviction;
c. Earthquake, fire, flood, or other natural disaster;
d. Cancellation of a Housing Choice Voucher HAP
Contract by property owner; or
e. Governmental Action, such as Code Enforcement,
I Second priority shall be given to persons who are either:
a. Residents of Santa Ana and/or
b. Working in Santa Ana at least 32 hours per week for at
least the last 6 months.
; and
(f) Carry out the Affirmative Marketing procedures of the City of Santa
Ana, which are designed to provide information and otherwise attract eligible persons
from all racial, ethnic and gender groups in the housing market area to the units.
Developer shall cooperate with the City to effectuate this provision prior to the initial
renting, or upon occurrence of a vacancy, and the re -renting of any Restricted Units 24
CFR 92.351).
6. Housing Choice Voucher Program. Developer, its successors and
assigns, shall not refuse to lease a unit to a holder of a rental voucher under 24 CFR part
982 (Housing Choice Voucher Program) or to a holder of a comparable document
evidencing participation in a HOME tenant -based assistance program because of the status
of the prospective tenant as a holder of such certificate of family participation, rental
voucher, or comparable HOME tenant -based assistance document. Total rents charged to
the tenant for the tenant's share of rent shall not exceed the allowable rents as described
5of14
above.
7. Lease Provisions. Any lease of any of the units must be for not less than
one year, unless by mutual agreement between the tenant and the Developer. Should the
tenant and Developer agree to a term of less than one year, said agreement shall be
expressed in some type of written form, signed by the tenant, and maintained in the
tenant's rental file held by the Developer. The lease may not contain any of the following
provisions (in which references to "owner" shall mean the Developer, its successors or
assigns):
(a) Agreement by the tenant to be sued, to admit guilt, or to a judgment
in favor of the owner in a lawsuit brought in connection with the lease;
(b) Agreement by the tenant that the owner may take, hold, or sell
personal property of household members without notice to the tenant and a court decision
on the rights of the parties. This prohibition, however, does not apply to an agreement by
the tenant concerning disposition of personal property remaining in the housing Unit after
the tenant has moved out of the Unit. The owner may dispose of this personal property in
accordance with state law;
(c) Agreement by the tenant not to hold the owner or the owner's agent
legally responsible for any action or failure to act, whether intentional or negligent;
(d) Agreement of the tenant that the owner may institute a lawsuit
without notice to the tenant;
(e) Agreement by the tenant that the owner may evict the tenant or
household members without instituting a civil court proceeding in which the tenant has the
opportunity to present a defense, or before a court decision on the rights of the parties;
(f) Agreement by the tenant to waive any right to a trial by jury;
(g) Agreement by the tenant to waive the tenant's right to appeal, or to
otherwise challenge in court, a court decision in connection with the lease;
(h) Agreement by the tenant to pay attorney's fees or other legal costs
even if the tenant wins in a court proceeding by the owner against the tenant. The tenant,
however, may be obligated to pay costs if the tenant loses; or,
(i) Agreement by the tenant (other than a tenant in transitional housing)
to accept supportive services that are offered.
8. Lease Termination. Developer, its successors or assigns, may not
terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted
with CDBG funds, except for serious or repeated violation of the terms and conditions of
the lease; for violation of applicable Federal, State, or local law; for completion of the
tenancy period for transitional housing or failure to follow any required transitional
housing supportive services plan; or for other good cause. Good cause does not include an
6of14
increase in the tenant's income or refusal of the tenant to purchase the housing. To
terminate or refuse to renew tenancy, the owner must serve written notice upon the tenant
specifying the grounds for the action at least 30 days before the termination of tenancy.
9. Property Maintenance. Developer shall continuously maintain the
improvements on the Property in compliance with all applicable City housing quality
standards [24 CFR 92.251 ] and state and local code requirements and shall keep the
Property free from any unreasonable accumulation of debris or waste materials.
Developer shall also maintain in a healthy condition any landscaping planted on the
Property.
10. Obligation to Refrain from Discrimination. Developer covenants and
agrees for itself, its successors, its assigns and every successor in interest to the Property
or any part thereof, there shall be no discrimination against or segregation of any person,
or group of persons, on account of race, color, creed, religion, sex, mental or physical
disability, marital status, national origin or ancestry in the sale, lease, transfer, use,
occupancy, tenure or enjoyment of the Property nor shall the Developer itself or any
person claiming under or through it establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property, as
required by the Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C.
3601-20) and all implementing regulations, and the Age Discrimination Act of 1975, and
all implementing regulations.
11. Management Plan. Not later than five (5) business days prior to the
execution of the documents, Developer shall submit to the Executive Director a
Management Plan in a form that is acceptable to the Executive Director, including, but not
limited to, the components listed below. Approval of the Management Plan must be
obtained from the Executive Director not later than the time for the Close of Escrow.
Developer shall manage the Assisted Units in accordance with the approved Management
Plan, including such amendments as may be approved in writing from time to time by the
Executive Director, for the term of the income and rent restrictions contained in these
Restrictions. City hereby acknowledges that City has approved Developer's proposed
Management Plan. The components of the Management Plan shall include:
(a) Management Agent. Developer shall submit the name and
qualifications of the proposed Management Agent. The Executive Director shall approve
or disapprove the proposed Management Agent in writing based on the experience and
qualifications of the Management Agent. City hereby approves Quality Management
Group as the initial Management Agent.
(b) Management Agreement. Developer shall submit a copy of the
proposed management agreement specifying the amount of the management fee, and the
relationship and division of responsibilities between Developer and Management Agent.
City hereby acknowledges that City has approved the form of Developer's proposed
management agreement.
(c) Annual Budget and Projected Cash Flows. Prior to the Close of
7of14
Escrow, and annually thereafter not later than ninety (90) days after the close of each
calendar year thereafter until the Loan is repaid in full, Developer shall submit a projected
operating budget and cash flow to the Executive Director. The budget and cash flow shall
be in a form that is reasonably acceptable to the Executive Director.
(d) Tenant Selection Policies. Developer shall include in the
Management Plan the tenant selection policies in accordance with Section 5, above.
12. Management and Maintenance Deficiencies. If at any time the City
determines that the units are not being managed or maintained in accordance with the
approved Management Plan, the City shall send the Developer a detailed description of the
management deficiencies (a "Deficiency Notice"). If the deficiencies set forth in the
Deficiency Notice are not cured within thirty (30) days (or such longer period as may be
reasonably required to cure the deficiency), with the exception of CDBG regulations that
require a shorter period, the Executive Director may require Developer to change
management practices or to terminate the management contract and designate and retain a
different management agent. The management agreement shall provide that it is subject to
termination by Developer without penalty, upon thirty (30) days prior written notice, at the
direction of the Executive Director upon failure to cure a Deficiency Notice within the
time period specified above. Within ten (10) days following a direction of the Executive
Director to replace the management agent in accordance with the terms hereof, the
Developer shall select another management agent or make other arrangements satisfactory
to the Executive Director or designee for continuing management of the units.
13. Restriction Term. The covenants established in these Restrictions and
any amendments hereto approved by the City and Developer shall, without regard to
technical classification and designation, be binding for the benefit and in favor of the City
and their respective successors and assigns. These Restrictions shall remain in effect for
fifty-five (55) years. In its discretion, the City may defer repayment of the CDBG Loan or
the City may agree to such reasonable modifications to the requirements of these
Restrictions, as they may determine are necessary for the continued maintenance and
operation of the Assisted Units. The covenants against discrimination shall remain in
effect for the period of these Restrictions.
14. CDBG Disbursements. Developer shall not request disbursement of
CDBG funds until the funds are needed to pay eligible costs. The City reserves the right
to inspect records and the Project site to determine that reimbursement and compensation
requests are reasonable, and shall have the right to disapprove any request if the City
determines the request is for an ineligible item or is otherwise not in compliance with or
inconsistent with the Loan Agreement and these Restrictions.
15. Records and Reports. Developer shall prepare, maintain and submit to
the City, as appropriate, the following records and reports:
a. Annual Reports. Developer shall file with the City an Annual Report
(herein referred to as the "Annual Report") within one hundred twenty (120) days
following the end of each calendar year, commencing with the end of the calendar year (or
portion thereof) in which the Real Estate Closing occurs. The Annual Report shall contain
8of14
a certification by Developer as to such information as the City Executive Director may
then require, including, but not limited to, the following:
(1) The fiscal condition of the Project, including the Annual Budget and
Project Cash Flow report required by Section 11 (c) of the Affordable Housing
Restrictions which shall include a financial statement for the previous calendar year that
includes abalance sheet and a profit and loss statement indicating any surplus or deficit in
operating accounts; a detailed itemized listing of income and expenses; and the amounts of
any fiscal reserves. Such Annual Budget and financial statement shall be prepared in
accordance with generally accepted accounting practices. The City Executive Director
may require that the financial statement be audited at Developer's expense by an
independent certified public accountant acceptable to the Executive Director.
(2) Any substantial physical defects in the Project, including a
description of any major repair or maintenance work undertaken or needed in the previous
and current years. Such statement shall describe what steps Developer has taken in order
to maintain the Project in a safe and sanitary condition in accordance with applicable
housing and building codes and the property standards set forth in 24 CFR 92.251.
(3) The occupancy of the units indicating the income of each current
resident and the current rents charged each resident and whether those rents include
utilities, including records that demonstrate that the Project meets the requirements of for
tenant and participant protections specified in Section 7 of these Restrictions.
(4) General management performance, including tenant relations and
other relevant information.
(5) Records that demonstrate that the units meet the affordability
requirements of 24 CFR 92.252 and these Restrictions.
(6) Evidence of a currently paid hazard insurance policy in accordance
with the requirements of Section 6 of the City/CDBG Deed of Trust, with a loss payable
endorsement naming the City as a loss payee(s) together with other approved lenders (as
their interests may appear), with a "Replacement Cost Endorsement" in amount sufficient
to prevent Developer or City from becoming a co-insurer under the terms of the policy, but
in any event in an amount not less than 100% of the then full replacement cost, to be
determined at least once annually and subject to reasonable approval by the Executive
Director.
(7) Evidence of a currently paid liability insurance policy, naming the
City as additional insured and in a form approved by the City Attorney with coverage as
described in the Loan Agreement.
(8) Termite reports pertaining to the Property every fifth (5"') year.
(9) Such other information as may be reasonably required by the
Executive Director or his/her designee.
9of14
b. Records and Audits. During the CDBG Compliance Period, Developer
shall maintain the following general program records, and make them available for
inspection by the City or HUD:
(1) records which demonstrate that the project meets the property
standard specified in 24 CFR 92.251;
(2) records, for each CDBG Assisted Unit, which demonstrates that the
project meets the income requirements of the CDBG Program and rent requirements of 24
CFR 92.252 and these Restrictions.
(3) records which demonstrate compliance with the tenant and
participant protections, as specified in Section 7 of these Restrictions;
(4) records which demonstrate compliance with the Equal Opportunity
and Fair Housing requirements outlined in these Restrictions, including:
(A) data on the extent to which each racial and ethnic group and
single head of household (by gender of head of household) have applied for, participated
in, or benefited from, any program or activity funded in whole or in part with CDBG
funds;
(B) documentation of actions undertaken to meet the equal
opportunity requirements of 24 CFR part 5, Subpart A, and 24 CFR part 135 which
implements Section 3 of the Housing Development Act of 1968, as amended (12 U.S.0
1701u);
(C) documentation and data on the steps taken to implement
Developer's outreach programs to minority -owned and women -owned businesses to meet
the minority outreach requirements of 2 CFR 200.321;
(5) documentation of the steps taken to carry out an affirmative
marketing program in accordance with procedures specified in 24 CFR 92.351, if
applicable;
(6) if applicable, records which demonstrate compliance with the
requirements relating to relocation of displaced persons, as described in 49 CFR part 24.
At a minimum, these shall include project occupancy lists identifying the naive and
address of all persons occupying the project property up until the date of the Real Estate
Closing (i.e., the date on which Developer obtained site control);
(7) records concerning lead -based paint in accordance with 24 CFR
570.608;
(8) if applicable, records which support any requests for waivers of the
conflict of interest prohibition as stated in 24 CFR 570.611;
(9) records of certifications of contractor qualifications as they relate to
10 of 14
the debarment and suspension requirement as stated in 2 CFR 2424 and 24 CFR Part 24;
and
(10) any other reports issued by other monitoring agencies.
c. All records related to CDBG funds as required under the provisions of 24
CFR 570.506 must be retained for the most recent five year period, except that for rental
housing projects; records shall be retained for five years after the project completion date;
except that records of individual tenant income verifications, project rents and project
inspections must be retained for the most recent five year period, until five years after the
affordability period terminates. Developer shall cooperate with the City to retain all books
and records relevant to the Loan Agreement for a minimum of five years after the
expiration of the Loan Agreement and any and all amendments hereto, or for five years
after the conclusion or resolution of any and all audits or litigation relevant to the Loan
Agreement, whichever is later. The City, the State, the Office of the Auditor General of
HUD, and/or their representatives shall have unrestricted reasonable access to all
locations, books, and records for the purpose of monitoring, auditing, or otherwise
examining said locations, books, and records with or without prior notice.
d. If so directed by the City, the State or HUD upon termination of the Loan
Agreement, Developer shall cause all records, accounts, documentation and all other
materials relevant to the work to be delivered to the City, the State or HUD, as depository.
e. All records, accounts, documentation and other materials relevant to the
Project shall be accessible at any time to the authorized representatives of the City, the
State or HUD, on reasonable prior notice, for the purpose of examination or audit.
f. The City shall perform an annual audit at the close of each calendar year in
which these Restrictions are in effect. Developer shall reasonably cooperate with City in
performing such audit.
16. Defaults. If an event of default occurs under the terms of these
Restrictions, prior to exercising any remedies hereunder, City shall give Developer and its
limited partner written notice of such default. If the default is reasonably capable of being
cured within thirty (30) days, Developer and its limited partner shall have such period to
effect a cure prior to exercise of remedies by the City under these Restrictions. If the
default is such that it is not reasonably capable of being cured within thirty (30) days, and
Developer or its limited partner (i) initiates corrective action within said period, and (ii)
diligently, continually, and in good faith works to effect a cure as soon as possible, then
Developer and its limited partner shall have such additional time as is reasonably
necessary to cure the default prior to exercise of any remedies by City.
The City is a beneficiary of the terms and provisions of these Restrictions
and the covenants herein, both for and in their own right and for the purposes of protecting
the interests of the community and other parties, public or private, for whose benefit these
Restrictions and the covenants running with the land have been provided. Upon the
occurrence of an event of default and the expiration of the notice and cure period specified
above, the City shall have the right to exercise all rights and remedies, and to maintain any
11 of 14
actions or suits at law or in equity or other proper proceedings to enforce the curing of
such breaches to which they or any other beneficiaries of these Restrictions and covenants
are entitled.
17. Developer Liability for Performance. The covenants and agreements
contained herein shall run with the land and not be personal obligations of Developer.
Upon the sale, conveyance or other transfer of the Property (a "Transfer") ,and the
assumption of the obligations hereunder by a transferee, Developer's liability for
performance shall be terminated as to any obligation to be performed hereunder after the .
date of such Transfer.
18. Enforcement. The Loan Agreement and all of its attachments shall be
enforceable by
City in accordance with the terms thereof. Each of the Loan Agreement, these
Restrictions, the City CDBG Loan Note and the City CDBG Deed of Trust provide a
means of enforcement by the City if Developer is in breach of its obligations hereunder
and thereunder, including liens on the Property, use and deed restrictions and covenants
running with the land [24 CFR 92.504(c)(3)].
12 of 14
A-2021-054-01
IN WITNESS WHEREOF, the parties hereto have caused these Affordability
Restrictions on Transfer of Property to be executed on the date set forth hereinabove.
ATTEST:
CITY OF SANTA ANA
Daisy Gomez Kristine Ridge
Clerk of the Council City Manager
H Dated: —a) Dated: eA
APPROVED AS TO FORM:
SONIA R. CARVALHO, City Attorney
By:.
n O. Hodge
4Asistant City Attorney
Dated: 4—L �— Z I
RECOMMENDED FOR APPROVAL:
Steven A. Mendoza
Executive Director
Community Development Agency
13 of 14
DEVELOPER
NORTH HARBOR HOUSING PARTNERS LP,
a California limited partnership
By: JHC Santa Ana Village LLC,
a California limited liability company,
Managing General Partner
By: Jamboree Housing Corporation,
a California nonprofit public bene A corporation,
Manager j / A
By: _z Allk
Name: A &C4Aa M
Title: CN I a WC&dPll
14 of 14
ACKNOWLEDGMENT
A 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 C
County of
nn \
On
before me,
Charlene Ortiz, Notary Public
n(insert name and title of the officer)
personally appeared p ��\� NV/I !y ' rNS ( e
who proved to me on the basis of satisfadtory 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
Signature
(Seal)
- CHARLENE ORTIZ '_
��' �- COMM. #2316366 z
-=`as Notary Public -California o
�� ' Orange County
„,�� My Comm. Expires Jan. 13, 2024
mnimun mnnimm�uuununnnnnninnnnnnimnninunmm�nnm�
ACKNOWLEDGMENT
A 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 California
County of Orange )
On April 21, 2021 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Kristine Ridge
who proved to me on the basis of satisfactory evidence to be the person ) whose name
subsc ' ed to the within instrument and acknowledged tom thatey executed he same in
authorized capacity(i3A), and that by -hi eir signatures) on the instrument the
persona17
ah or the entity upon behtilf of which the person(,O 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.
CLAUDIA M. FERNANDEZ SNAW
Notary Public California
my hand n official se Orange County
Commission# 2228084
My Comm. Eepites Jan 25. 2022
S1GLt�K � eall
ACKNOWLEDGMENT
A 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 California
County of Orange )
On April 21, 2021 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Steven A. Mendoza
who proved to me on the basis of satisfactory evidence to be the person( whose nam f js'tea
subscribed to the within instrument and acknowledged to me thatJ3W4h4A4ey executed the same in
,d3RLherfth& authorized capacityoas� and that byJ:9jkiGR1he4r signature(s}on the instrument the
person'" or the entity upon behalf of which the personA 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.
my h and
CLAUDIA M. FERNANDEZ-SHAW
Notary Public- California
Orange County
Commi99on a 2228084
My Comm, Expires Jan 25.2022
EXHIBIT "A"
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property situated in the City of Santa Ana, County of Orange, State of California
more particularly described as follows:
THE SOUTH 135 FEET OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER
OF THE NORTHEAST QUARTER OF SECTION 9, TOWNSHIP 5 SOUTH, RANGE 10 WEST,
SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF ORANGE, STATE OF
CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.
EXCEPT THE WEST 20 FEET THEREOF.
APN: 198-011-05
S�60I11)IIVK3 ilEQIiBSTBO BY
FIitSTAMBitICAN Z F INSIJIIANCE CO.
NATIONAL COMMELIEIAL SX 1rVICSS
FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 27383
When Recorded Mail to:
City ofSanta Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
1[�� 1$j 1�� 11�11 jjjj� 111�111 jj�� jj�� jj]� jjj�j 1[11111 jjjjjj� NO FEE
*$ R 0 0 1 2 7 7 0 8 0 2 $ *
20210002855751:35 pin 04128/21
363 RW10A D11 A36 10
0.00 0.00 0.00 0.00 27.00 0.00 0.000.000.00 0.00
/Vo- goyyi-l-
CITY CDBG DEED OF TRUST
AND ASSIGNMENT OF RENTS
(1108 North Harbor Boulevard, Santa Ana, California)
THIS CITY DEED OF TRUST AND ASSIGNMENT OF RENTS (the "City Deed
of Trust") made this 201 day of April, 2021 by North Harbor Housing Partners LP, a
California limited partnership (the "Trustor"), AmeriNat, a Minnesota corporation (the
"Trustee"), and the City of Santa Ana, a charter city and municipal corporation (the
"Beneficiary").
Trustor, in consideration of the promises herein recited and the trust herein created,
irrevocably grants, transfers, convoys and assigns to Trustee, in trust, with power of sale, the
property located in the City of Santa Ana, County of Orange, State of California, described
in the attached Exhibit A and more commonly known as 1108 North Harbor Boulevard
(the "Property");
TOGETHER with all the improvements now or hereafter erected on the Property,
and all easements, rights, appurtenances and all fixtures now or hereafter attached to the
Property, all of which, including replacements and additions thereto, shall be deemed to be
and remain a part of the Property covered by this City Deed of Trust;
TOGETHER with the right, power and authority during the continuance of these
Trusts, to collect the rents, issues, and profits of the Property, reserving unto the Trustor the
right, prior to any default by Trustor in payment of the indebtedness secured by this City
Deed of Trust or in the performance of any agreement under this City Deed of Trust, to
collect and retain these rents, issues and profits as they become due and payable; and,
TOGETHER with all articles of personal property or fixtures now or hereafter
attached to or used in and about the building or buildings now erected, or hereafter to be
erected, on the Property which are necessary to the complete and comfortable use and
occupancy of such building or buildings for the purposes for which they were or are to be
12r1CORDINA REQUESTED BY
TAMERICAN TITLE INSURANCE CO.
NATIONAL COMMERCIAL SERVICES
FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 27383
When Recorded Mail to:
City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
/V0—q®5-yX1—y
CITY CDBG DEED OF TRUST
AND ASSIGNMENT OF RENTS
(1108 North Harbor Boulevard, Santa Ana, California)
THIS CITY DEED OF TRUST AND ASSIGNMENT OF RENTS (the "City Deed
of Trust") made this 201 day of April, 2021 by North Harbor Housing Partners LP, a
California limited partnership (the "Trustor"), AmeriNat, a Minnesota corporation (the
"Trustee"), and the City of Santa Ana, a charter city and municipal corporation (the
'Beneficiary").
Truster, in consideration of the promises herein recited and the trust herein created,
irrevocably grants, transfers, conveys and assigns to Trustee, in trust, with power of sale, the
property located in the City of Santa Ana, County of Orange, State of California, described
in the attached Exhibit A and more commonly known as 1108 North Harbor Boulevard
(the 'Property");
TOGETHER with all the improvements now or hereafter erected on the Property,
and all easements, rights, appurtenances and all fixtures now or hereafter attached to the
Property, all of which, including replacements and additions thereto, shall be deemed to be
and remain a part of the Property covered by this City Deed of Trust;
TOGETHER with the right, power and authority during the continuance of these
Trusts, to collect the rents, issues, and profits of the Property, reserving unto the Trustor the
right, prior to any default by Trustor in payment of the indebtedness secured by this City
Deed of Trust or in the performance of any agreement under this City Deed of Trust, to
collect and retain these rents, issues and profits as they become due and payable; and,
TOGETHER with all articles of personal property or fixtures now or hereafter
attached to or used in and about the building or buildings now erected, or hereafter to be
erected, on the Property which are necessary to the complete and comfortable use and
occupancy of such building or buildings for the purposes for which they were or are to be
erected, including all other goods and chattels and personal property as are ever used or
furnished in operating a building, or the activities conducted therein, similar to the one
herein described and referred to, and all renewals or replacements thereof or articles in
substitution therefor, whether or not the same are, or shall be attached to said building or
buildings in any manner; and all of the foregoing, together with the Property, is herein
referred to as the "Security";
To have and to hold the Security together with acquittances to the Trustee, its
successors and assigns forever;
TO SECURE to the Beneficiary (a) the repayment of the sums evidenced by a
promissory note to the Beneficiary executed by Trustor of even date herewith in the
principal amount of ONE MILLION, SIX HUNDRED EIGHTY-SEVEN THOUSAND,
AND FORTY-SEVEN DOLLARS ($1,687,047) (the "City CDBG Loan Note"); (b) the
performance of the covenants and agreements of Borrower contained in a certain Loan
Agreement and attached exhibits, including the Affordability Restrictions, as hereinafter
defined; and (c) the payment of all other sums, with interest thereon, advanced in
accordance herewith to protect the security of this City Deed of Trust; and the performance
of the covenants and agreements of Trustor contained herein.
TRUSTOR AND THE BENEFICIARY COVENANT AND AGREE AS FOLLOWS:
1. The Loan Agreement. This City Deed of Trust is executed and delivered,
along with the City Loan Note and the Loan Agreement, to benefit the Property. A copy of
said Loan Agreement is on file as a public record with the Beneficiary and is incorporated
herein by reference (the "Agreement"). Trustor acknowledges that but for the execution of
this City Deed of Trust, the Beneficiary would not enter into the Agreement or City Loan
Note secured by this City Deed of Trust.
2. Trustor's Estate. Trustor is lawfully seized of the estate hereby conveyed and
has the right to grant and convey the Security; that except as disclosed on the Title Policy
insuring the City Deed of Trust, the Security is not encumbered except for obligations
secured by deeds of trust, or any other security agreement, to secure financing or refinancing
for the purchase and rehabilitation of the Property.
3. Repayment of the Loan. Trustor will promptly repay, when due, the
principal and interest, as required by the City Loan Note secured by this City Deed of Trust.
4. Subordination. This obligation secured by this City Deed of Trust shall be
subordinated to the Senior Loan.
5. Prior Mortgages and Deeds of Trust; Charges; Liens. Trustor shall perform
all of Trustor's obligations under any mortgage, deed of trust or other security agreement
with a lien which has priority over this Instrument, including Trustor's covenants to make
payments when due (subject to an applicable notice and cure provisions). Trustor will pay
all taxes, assessments and other charges, fines and impositions attributable to the Security
which may attain a priority over this Deed of Trust, by Trustor making any payment, when
due, directly to the payee thereof. Trustor will promptly furnish to the Beneficiary all
notices of amounts due under this paragraph, and in the event Trustor makes payment
directly, Trustor will promptly discharge any lien which has priority over this Deed of Trust;
provided that Trustor will not be required to discharge the lien of the Deed of Trust securing
any senior lender or any other lien described in this paragraph so long as Trustor will agree
in writing to the payment of the obligation secured by such lien in a manner acceptable to
the Beneficiary, or will, in good faith, contest such lien by, or defend enforcement of such
lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture
of the Security or any part thereof.
6. Hazard Insurance. Trustor will keep the Security insured by such insurance
policies in such amounts and for such periods as called for in the Agreement. All insurance
policies and renewals thereof will include a standard mortgagee clause with standard
lender's endorsement in favor of the holder of any senior lender and the Beneficiary as their
interests may appear and in a form acceptable to the Beneficiary. Trustor shall promptly
furnish to the Beneficiary, or its designated agent, certificates of insurance, copies of all
renewal notices and copies of all receipts of paid premiums. In the event of loss, Trustor
will give prompt notice to the insurance carrier and the Beneficiary or its designated agent.
The Beneficiary, or its designated agent, may make proof of loss if not made promptly by
Trustor. The Beneficiary shall receive 30 days (10 days for nonpayment of premium)
advance notice of cancellation of any insurance policies required under this Section.
Unless the Beneficiary and Trustor otherwise agree in writing, insurance proceeds,
subject to the rights of any senior lender, will be applied to restoration or repair of the
Security damaged, provided such restoration or repair is economically feasible and the
security of this City Deed of Trust is not thereby impaired. If such restoration or repair is
not economically feasible or if the security of this City Deed of Trust would be impaired,
again, subject to the rights of any senior lender, the insurance proceeds will be used to repay
the loan secured by this Deed of Trust, with the excess, if any, paid to Trustor. If the
Security is abandoned by Trustor, or if Trustor fails to respond to the Beneficiary, or its
designated agent within 30 days from the date notice is mailed by either of them to Trustor
that the insurance carrier offers to settle a claim for insurance benefits, the Beneficiary, or its
designated agent, is authorized to collect and apply the insurance proceeds at the
Beneficiary's option either to restoration or repair of the Security or to repay the loan.
If the Security is acquired by the Beneficiary, all right, title and interest of Trustor in
and to any insurance policy and in and to the proceeds thereof resulting from damage to the
Security prior to the sale or acquisition will pass to the Beneficiary to the extent of the sums
secured by this City Deed of Trust immediately prior to such sale or acquisition subject to
the rights of any senior lender.
7. Preservation and Maintenance of Security. Trustor will keep the Security in
good repair and will not commit waste or permit impairment or deterioration of the Security.
8. Protection of the Beneficiary's Security. If Trastor fails to perform the
covenants and agreements contained in this City Deed of Trust or if any action or
proceeding is commenced which materially affects the Beneficiary's interest in the Security,
including, but not limited to, default under the City Deed of Trust securing any senior
lender, eminent domain, insolvency, code enforcement, or arrangements or proceedings
involving a bankrupt or decedent, then the Beneficiary, at the Beneficiary's option, upon
notice to Trustor, may make such appearances, disburse such sums and take such action as it
determines necessary to protect the Beneficiary's interest, including, but not limited to,
disbursement of reasonable attorneys' fees and entry upon the Security to make repairs.
Any amounts disbursed by the Beneficiary pursuant to this paragraph, with interest
thereon, will become an indebtedness of Trustor secured by this City Deed of Trust. Unless
Trustor and the Beneficiary agree to other terms of payment, such amount will be payable
upon notice from the Beneficiary to Trustor requesting payment thereof, and will bear
interest from the date of disbursement at the rate payable from time to time on outstanding
principal under the City Loan Note unless payment of interest at such rate would be contrary
to applicable law, in which event such amounts will bear interest at the highest rate
permissible under applicable law. Nothing contained in this paragraph will require the
Beneficiary to insure any expense or take any action hereunder.
9. Inspection. The Beneficiary may make, or cause to be made, reasonable
entries upon and inspections of the Security during normal business hours; provided that the
Beneficiary will give Trustor not less than forty-eight (48) hours' prior written notice of
inspection.
10. Forbearance by the Beneficiary Not a Waiver. Any forbearance by the
Beneficiary in exercising any right or remedy will not be a waiver of the exercise of any
such right or remedy. The procurement of insurance or the payment of taxes or other liens
or charges by the Beneficiary will not be a waiver of the Beneficiary's right to accelerate the
maturity of the indebtedness secured by this City Deed of Trust.
11. Remedies Cumulative. All remedies provided in this City Deed of Trust are
distinct and cumulative to any other right or remedy under this City Deed of Trust or any
other document, or afforded by law or equity, and may be exercised concurrently,
independently or successively.
12. Successors and Assigns Bound. The covenants and agreements herein
contained shall bind, and the rights hereunder shall inure to, the respective successors and
assigns of the Beneficiary and Trustor subject to the provisions of this City Deed of Trust.
13. Joint and Several Liability. All covenants and agreements of Trustor shall be
joint and several.
14. Notice. Except for any notice required under applicable law to be given in
another manner, (a) any notice to Trustor provided for in this City Deed of Trust will be
given by certified mail, return receipt requested, addressed to Trustor at 17701 Cowan
Avenue, Suite 200, Irvine, CA 92614, Attn: President, with copies to JPMorgan Chase
Bank, N.A., Community Development Banking, 300 Grand Avenue, Los Angeles,
California 90071, Attention: Doug Leezer, JPMorgan Chase Bank, N.A, Legal
Department, Mail Code: NY1-R066, 4 New York Plaza, 21st Floor
Mail Code: NY1-E089, New York, New York 10004-2413, and Red Stone Equity — 2020
CA Regional Fund, L.P., 1100 Superior Boulevard, Suite 1640, Cleveland, OH 44114,
Attention: General Counsel, (b) any notice to the Beneficiary will be given by certified
mail, return receipt requested, to the Beneficiary at 20 Civic Center Plaza, P.O. Box 1988,
Santa Ana, California 92702, Attention; Housing Division Manager, or at such other address
as the Beneficiary may designate by notice to Truster as provided above, and (c) to Trustee
at 8121 E. Florence Avenue, Downey, California 90240. Notice shall be effective as of
the date received as shown on the return receipt.
15. Governing Law, This City Deed of Trust shall be governed by the laws of
the State of California.
16. Severability. In the event that any provision or clause of this City Deed of
Trust or the City Loan Note conflicts with applicable law, such conflict will not affect other
provisions of this City Deed of Trust or the City Loan Note which can be given effect
without the conflicting provision, and to this end the provisions of the City Deed of Trust
and the City Loan Note are declared to be severable.
17. Captions. The captions and headings in this City Deed of Trust are for
convenience only and are not to be used to interpret or define the provisions hereof.
18. Default in Foreclosure; Remedies. Upon Trustor's breach of any covenant or
agreement of Trustor in this City Deed of Trust or the City Loan Note secured by this City
Deed of Trust, including, but not limited to, the covenants to pay, when due, any sums
secured by this City Deed of Trust, the Beneficiary may declare all sums secured by this
City Deed of Trust immediately due and payable by delivering to Trustor notice thereof
specifying: (1) The breach; (2) the action required to cure such breach; (3) a date not less
than 30 days from the date the notice is received by Trustor as shown on the return receipt,
by which such breach is to be cured provided, however, that if such default is not reasonable
susceptible to being cured within 30 days, Trustor shall have a reasonable period to cure the
defect so long as Trustor is diligently prosecuting the cure to completion; and (4) that failure
to cure such breach on or before the date specified in the notice may result in acceleration of
the sums secured by this City Deed of Trust and sale of the Security. The notice will also
inform Trustor of Trustor's right to reinstate after acceleration and the right to bring a court
action to assert the non-existence of default or any other defense of Trustor to acceleration
and sale.
The City Note contains additional cure periods granted to Truster's limited
partner and no event of default shall have occurred until and unless the Trustor's limited
partner fails to cure such breach during such cure period.
If the breach is not cured on or before the date specified in the notice or such longer
period as provided above or in the City Loan Note or the Agreement, the Beneficiary, at the
Beneficiary's option, may: (a) declare all of the sums secured by this City Deed of Trust to
be immediately due and payable without further demand and may invoke the power of sale
and any other remedies permitted by California law; (b) either in person or by agent, with or
without bringing any action or proceeding, or by a receiver appointed by a court, and
without regard to the adequacy of its security, enter upon the Security and take possession
thereof (or any part thereof) and of any of the Security, in its own name or in the name of the
Trustee, and do any acts which it deems necessary or desirable to preserve the value or
marketability of the Property, or part thereof or interest therein, increase the income
therefrom or protect the security thereof. The entering upon and taking possession of the
Security shall not cure or waive any breach hereunder or invalidate any act done in response
to such breach and, notwithstanding the continuance in possession of the Security, the
Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust, or by
law upon occurrence of any uncured breach, including the right to exercise the power of
sale; (c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a
receiver, or specifically enforce any of the covenants hereof; (d) deliver to the Trustee a
written declaration of default and demand for sale, pursuant to the provisions for notice of
sale found at California Civil Code Sections 2924, et sM., as amended from time to time; or
(e) exercise all other rights and remedies provided herein, in the instruments by which
Truster acquires title to any Security, or in any other document or agreement now or
hereafter evidencing, creating or securing all or any portion of the obligations secured
hereby, or provided by law.
Notwithstanding anything to the contrary herein, Beneficiary hereby agrees that any
cure of any default made or tendered by Trustor's limited partner shall be deemed to be a
cure by Trustor and shall be accepted or rejected on the same basis as if made or tendered by
Trustor.
The Beneficiary shall be entitled to collect all reasonable costs and expenses
incurred in pursuing the remedies provided in this paragraph, including, but not limited to,
reasonable attorneys' fees.
19. Trustor's Right to Reinstate. Notwithstanding the Beneficiary's acceleration
of the sums secured by this City Deed of Trust, Truster will have the right to have any
proceedings begun by the Beneficiary to enforce this City Deed of Trust discontinued at any
time prior to 5 days before sale of the Security pursuant to the power of sale contained in
this City Deed of Trust or at any time prior to entry of a judgment enforcing this City Deed
of Trust i£ (a) Truster pays the Beneficiary all sums which would be then due under this
City Deed of Trust and no acceleration under the City Loan Note has occurred; (b) Trustor
cures all breaches of any other covenants or agreements of Trustor contained in this Deed of
Trust and the Affordability Restrictions on Transfer of Property; (c) Trustor pays all
reasonable expenses incurred by the Beneficiary and the Trustee in enforcing the covenants
and agreements of Trustor contained in this City Deed of Trust and the Affordability
Restrictions, and in enforcing the Beneficiary's and the Trustee's remedies, including, but
not limited to, reasonable attorneys' fees; and (d) Truster takes such action as the
Beneficiary may reasonably require to assure that the lien of this City Deed of Trust, the
Beneficiary's interest in the Security and Trustor's obligation to pay the sums secured by this
City Deed of Trust shall continue unimpaired. Upon such payment and cure by Trustor, this
City Deed of Trust and the obligations secured hereby will remain in full force and effect as
if no acceleration had occurred.
20. Acceptance by Trustee. Trustee accepts this Trust when this City Deed of
Trust, duly executed and acknowledged, is made a public record as provided by law.
Trustee is not obligated to notify any party to this City Deed of Trust of pending sale under
any other deed of trust or any action or proceeding in which Trustor, Beneficiary, or Trustee
shall be a party unless brought by Trustee.
21. Reconveyance. Upon payment or forgiveness of all sums secured by this
City Deed of Trust, the Beneficiary will request the Trustee to reconvey the Security and
will surrender this City Deed of Trust and the City Loan Note to the Trustee. The Trustee
will reconvey the Security without warranty and without charge to the person or persons
legally entitled thereto. Such person or persons will pay all costs of recordation, if any.
22. Substitute Trustee. The Beneficiary, at the Beneficiary's option, may from
time to time remove the Trustee and appoint a successor trustee to any Trustee appointed
hereunder. The successor trustee will succeed to all the title, power and duties conferred
upon the Trustee herein and by applicable law.
23. Request for Notice. Truster requests that copies of the notice of default and
notice of sale be sent to Trustor and Trustee at the address set forth in Section 14 above.
24. Nonrecourse Liability. Neither Trustor nor any partner of Trustor shall
have any personal liability under the Loan Agreement, City Loan Note, and this City Deed
of Trust and any judgment, decree or order for payment of money obtained in any action to
enforce the obligation of Trustor to repay the loan evidenced by such documents shall be
enforceable against Trustor only to the extent of Trustor's interest in the Property.
25. Extended Use Agreement. Beneficiary acknowledges that Trustor and
the California Tax Credit Allocation Committee have or intend to enter into an extended
use agreement. Beneficiary acknowledges and agrees that, in the event of a foreclosure
of its interest under this Deed of Trust or delivery by Trustor of a deed in lieu thereof
(collectively, a "Foreclosure"), the following rule contained in Section 42(h)(6)(E)(ii) of
the Internal Revenue Code shall apply:
For a period of three (3) years from the date of Foreclosure, with
respect to any unit that had been regulated by the extended use agreement,
(i) none of the eligible tenants occupying those units at the time of
Foreclosure may be evicted or their tenancy terminated (other than for
good cause, including but not limited to, the tenants' ineligibility pursuant
to Section 42 of the Code), (ii) nor may any rent be increased except as
otherwise permitted under Section 42 of the Code.
IN WITNESS WHEREOF, Trustor has executed this City Deed of Trust as of the date first
written above.
DEVELOPER
NORTH HARBOR HOUSING PARTNERS LP,
a California limited partnership
By: JHC Santa Ana Village LLC,
a California limited liability company,
Managing General Partner
By: Jamboree Housing Corporation,
a California nonprofit public benefit corporation,
Manager
By:
Nai MASSIF
Title: C41C) 0 V-fWA(" 011cl 2
ACKNOWLEDGMENT
A 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 Califory County
On 1 before me,.
Charlene Ortiz, Notary Public
(insert name and title of the officer)
personally appeared t . 11 l l'! \I A Yil Y ' lf/�� I <-
who proved to me on the basis of s tNf tca ory 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
Signature
(Seal)
a CHARLENE ORTIZ
�COMM. #2376366
=_."m Notary Public -California o
�"' Orange County ,
Smmm�i °p"umnmMun um uuun numim Suui, m unim 024n_
EXHIBIT "A"
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property situated in the City of Santa Ana, County of Orange, State of California,
more particularly described as follows:
THE SOUTH 135 FEET OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER
OF THE NORTHEAST QUARTER OF SECTION 9, TOWNSHIP 5 SOUTH, RANGE 10 WEST,
SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF ORANGE, STATE OF
CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.
EXCEPT THE WEST 20 FEET THEREOF.
APN: 198-011-05