HomeMy WebLinkAboutItem 17 - Approve and Launch the New “My First Home” Program Community Development Agency
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Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 2, 2021
TOPIC: Approve and Launch the New “My First Home” Program
AGENDA TITLE:
Approve and Launch the New “My First Home” Program with a One-Time Allocation of
$1,200,000 from the Inclusionary Housing Fund (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to launch the new “My First Home” Program.
2. Authorize the City Manager to execute Loan Agreements with qualified and approved
homebuyers for the “My First Home” Program, subject to non–substantive changes
approved by the City Manager and the City Attorney.
DISCUSSION
On March 6, 2018, the City Council approved an update to the Down Payment Assistance
Loan program to revise the eligibility criteria to make the program more effective and
attainable for low- to moderate-income residents in response to changing market
conditions. The major updates to the program included a one-time allocation of $400,000
in Inclusionary Housing Funds and an increase to the maximum loan amount for low-
income buyers to $80,000 and $40,000 for moderate-income buyers. Since this program
update in March 2018, 17 families became first-time homeowners in Santa Ana.
To build on this effort from three years ago, staff is seeking approval to launch the new
“My First Home” program using the $1.2 million in Inclusionary Housing Funds. The idea
for the launch of this program and investment of one-time funds originated with comments
from various councilmembers regarding the City’s need to invest in more homeownership
opportunities for our residents. While the City continues to invest in affordable rental
housing for our lowest income families, it is important that the City help create
opportunities for homeownership. Homeownership leads to asset building and the
accumulation of wealth instead of solely relying on the City’s financing of affordable rental
housing. The “My First Home” program will fulfill this need for increased homeownership
opportunities and create wealth-building opportunities for at least ten low-income families
or a combination thereof.
Approve and Launch the New “My First Home” Program
November 2, 2021
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The “My First Home” program will be a limited-time program based upon funding
availability. This means that as soon as the $1.2 million in Inclusionary Housing Funds
are exhausted, staff will revert the program guidelines back to its original form using
Community Development Block Grant funds. The core working part of this one-time
program is an increase in down payment assistance available per
household. Specifically, staff is increasing the maximum down payment assistance loan
amount available for low-income buyers up to $120,000. The maximum down payment
assistance loan amount for moderate-income buyers will also be increased to $80,000.
By increasing the loan amounts, together with record low mortgage interest rates, more
low-income families will qualify to purchase a home. The vision behind the allocation of
$1.2 million is to assist at least ten low-income families purchase their first home (e.g.
$120,000 x 10 families), or a combination thereof between low- to moderate-income
families. The updates to the Down Payment Assistance Program Guidelines and template
Loan Agreement are attached as Exhibit 1 and 2 in redline format.
The effectiveness of this one-time program will be evaluated if the City is successful to
assist at least ten low- to moderate-income families purchase their first home. Staff may
adjust the allocation of funds per household depending on the results of the
program. Regarding the eligibility of the $1.2 million in funding for this one-time program,
pursuant to Section 41-1909 (a)(3) of the Housing Opportunity Ordinance, permissible
uses of the Inclusionary Housing Fund include pre-home ownership co-investment. The
Ordinance states that the Inclusionary Housing Fund may be used for the benefit of
owner-occupied housing.
Following approval by City Council, staff will launch the program and begin marketing the
program together with NeighborWorks of Orange County. The “My First Home” Program
will be available until all of the funds are expended.
Program Administration and Contingency
As part of the FY 2021-2022 City Budget, a portion of the City’s Inclusionary Housing
Funds are already allocated for down payment assistance but it is anticipated that this
one–time program will require additional staff time, administration and marketing efforts.
Staff estimates needing $19,809 for these additional efforts, as well as a contingency of
$1,981 for any unanticipated costs. The Inclusionary Housing Administrative Funds
needed were already budgeted in the FY 2021-2022 City Budget as part of the costs
required to administer the Housing Opportunity Ordinance:
Project Item Total
“My First Home” Program $1,200,000
Inclusionary Housing Administrative Funds $ 19,809
Contingency $ 1,981
Total Delivery Cost for Project $1,221,790
Approve and Launch the New “My First Home” Program
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FISCAL IMPACT
Funds in the amount of $1,200,000 are available for anticipated expenditure starting in
FY 2021-22 in the Inclusionary Housing Fund, Loans & Grants account no. (41718820-
69152). Any unspent funds at the end of the current fiscal year will be budgeted for carry
forward to subsequent fiscal year(s) until all funds have been spent for this program.
EXHIBIT(S)
1. Down Payment Assistance Program Guidelines
2. Loan Agreement Template
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
CITY OF SANTA ANA
MY FIRST HOME SANTA ANA LOAN PROGRAM
PROGRAM GUIDELINES
The Program offers zero percent, deferred payment loans of up to $120,000 for Low Income
Households and up to $80,000 for Moderate Income Households based on need and funding source.
Homebuyer Assistance funds can help meet both a borrower’s down payment and closing cost
requirements.
FUNDS ARE LIMITED – FIRST COME, FIRST SERVE
Eligibility Requirements
o Borrower(s) must be a first time homebuyer (a person with no ownership interest in, or
who has not held ‘title’ to a principal residence during the three-year period preceding the
purchase of the property).
o Borrower(s) must be a resident of Santa Ana and/or work in Santa Ana at least 32 hours
per week for at least the last 6 months, with an exception for U.S. military veterans.
o Total Annual Income of the household, meaning all persons residing in the home as their
principal place of residence, cannot exceed the income limits established below:
Household Size Low Income Moderate Income
1 $ 75,300 $89,650
2 $ 86,050 $102,450
3 $ 96,800 $115,250
4 $ 107,550 $ 128,050
5 $ 116,200 $ 138,300
6 $ 124,800 $ 148,550
7 $ 133,400 $ 158,800
8 $ 142,000 $ 169,050
*As of April 2017, subject to change on an annual basis
o Complete a minimum of eight (8) hours of in-person homeownership training offered by a
counseling center approved by the U.S. Department of Housing and Urban Development
(HUD).
o Must have at least three percent (3%) of the purchase price for a down payment from
buyer’s own funds (at least 90 days seasoned). Three most-recent bank statements are
required to verify seasoned funds. Seasoned funds cannot be from gift funds. Gift funds
may contribute towards the purchase; gift funds may not exceed 3% of purchase price.o Must have a positive credit history and obtain a fixed-rate first mortgage. Co-signers and
variable rate loans are not allowed.
Use of Loan Proceeds
o Loans of up to $120,000 for Low Income Households and up to $80,000 for Moderate
Income Households will be approved based on need. Loan amounts will be based on
underwriting front -end ratios of not less than 28 percent. Maximum debt-to-income ratios
cannot exceed 38/43.
EXHIBIT 1
o City of Santa Ana loan proceeds may be applied to down payment and closing costs
associated with the purchase of a home in Santa Ana.
o City of Santa Ana down payment assistance loan proceeds may not be applied to down
payment and closing costs associated with the purchase of an Inclusionary home made
available through the City’s Housing Opportunity Ordinance.
Interest Rates and Repayment
o Loan proceeds are offered as a deferred loan with a zero percent interest rate. Repayment of
the City loan principle balance will be required at the end of the 45-year term of affordability.
Santa Ana Student Incentive: Prospective homebuyers that graduated from a high
school located in Santa Ana and have a 4-year college degree are eligible for a loan
forgiveness up to $40,000 ($10,000 will be forgiven every five (5) years up to a twenty
(20) year period). Homebuyer has to reside in the home as their primary residence to
qualify for the forgiveness.
Application and Approval Process
o Prospective homebuyer completes a HUD approved 8-hour homebuyer class.
o Homebuyer chooses a local lender and gets pre-qualified.
o Homebuyer provides a complete Homebuyer Assistance Loan Application Packet to the City
of Santa Ana Housing Division for review and pre-approval with all required documents and
forms. All applications must contain the documents indicated in the attached Document
Checklist.
o Once pre-approved, homebuyers will have 60 days to find a qualified home within Santa
Ana to purchase. Pre-approval does not guarantee City funds.
o Homebuyer shops for home based on Lender’s pre-qualification amount.
o When presenting an offer, Homebuyer and Realtor provide Seller’s Statement for the Seller
to sign.
o Within three (3) business days, Homebuyer must contact the City of Santa Ana to schedule
an inspection by City Staff for lead-based paint hazards and building/health and safety code
deficiencies once a purchase contract has been executed.
o If homebuyer is eligible and home passes inspection, City of Santa Ana reserves funds and
notifies the Homebuyer and Realtor.
o A minimum of two (2) weeks prior to close of escrow, the City of Santa Ana needs the
lender’s packet for final loan approval.
o Realtor notifies the City of Santa Ana of scheduled closing date ten (10) business days prior
to close of escrow date.
EXHIBIT 1
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FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 6103 & 27383
When Recorded Mail to:
City of Santa Ana
20 Civic Center Plaza, M-26
P.O. Box 1988
Santa Ana, California 92702
Attention: Housing Manager
HOMEBUYER DOWN PAYMENT
ASSISTANCE LOAN AGREEMENT
THIS LOAN AGREEMENT (the “Agreement”) is made as of _____________,
202118, by and between _____________________________________ (“Borrower”) and
the City of Santa Ana, a charter city and municipal corporation duly organized and
existing under the Constitution and laws of the State of California ( “City”).
R E C I T A L S
A.City is a recipient of Inclusionary Housing funds from the Housing
Opportunity Ordinance pursuant to Sec. 41-1900.
B.Borrower has entered into an agreement (the “Purchase Agreement”) to p
purchase residential property, located at _______________________________________,
Santa Ana, California, as more particularly described in the legal description, Exhibit A
attached hereto and incorporated herein (the “Property”). Pursuant to the Purchase
Agreement, the price to be paid for the Property is $____________________ (the
“Purchase Price”).
C.The City wishes to encourage a greater degree of owner-occupancy of
residences in the neighborhoods of the City of Santa Ana. In order to promote this goal,
the City has established its “My First Home Santa Ana” Homebuyer Down Payment
Assistance Loan Program (the “Program”), under which the City will provide a subsidy
in the form of a trust deed loan in the maximum amount of $12080,000.00 to an “Eligible
Person or Family” (as defined elsewhere in this Agreement) toward the purchase of a
residence within the City.
D.The Program is implemented in accordance with the Housing Opportunity
Ordinance, and will be modified whenever necessary to insure compliance with
regulations and continued Program feasibility.
EXHIBIT 2
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E.The City agrees to loan to Borrower and Borrower agrees to borrow from
the the City $________________________ (the “City Loan”) pursuant to the
Program, subject to the terms and conditions set forth herein. Borrower must contribute a
minimum of three percent (3%) of the purchase price towards down payment. This
minimum contribution cannot be from gift funds.
F.The Purchase Price for the Property is to be paid by Borrower by a
combination of funds, including:
a.Borrower’s down payment in the amount of $_______________
A loan to be made by __________________________________,
b.secured by a first deed of trust, in the principal amount of
$____________ (the “First Mortgage Loan”); and;
b.The City Loan, secured by a deed of trust, in the principal amount
c.of $_____________________.
G.Borrower has provided the City with written documentation from the
lender making the First Mortgage Loan stating that the amount of the City Loan
requested by Borrower is the minimum amount of additional financing necessary for
Borrower to qualify for the First Mortgage Loan.
H. The Loan Agreement and all of its attachments shall be enforceable by
City in accordance with the terms thereof. Each of the Loan Agreement, the Income
And Owner-Occupancy Covenants and Resale Restrictions/Affordability Covenants, the
City Promissory Note and the City 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)(13)].
NOW, THEREFORE, for good and valuable consideration, the parties agree as
follows:
Definitions: Unless otherwise defined, the following capitalized terms shall be defined
in this Agreement as follows:
“City Deed of Trust” means the deed of trust securing the City Loan, in the form
attached to this Agreement as Exhibit B and incorporated herein by reference.
“City Loan” means the deferred loan of Inclusionary Housing funds to be made
by the City to Borrower in the principal amount of $ _______________ in
accordance with this Agreement.
EXHIBIT 2
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“City Promissory Note” means the promissory note in favor of the City,
evidencing the City Loan, in the form attached to this Agreement as Exhibit C and
incorporated herein by reference.
“Eligible Person or Family” means a person or family (1) with household annual
income of less than 80% of the area median income for the City, adjusted for
family size; (2) who is a “First-Time Homebuyer”, and (3) who is purchasing a
single family residence for occupancy as his, her or their principal residence.
“Escrow Agent” means ______________________________;
“Excess Refinancing Proceeds” means the amount of cash received by Borrower
as the result of any refinancing of the First Mortgage Loan for a loan amount in
excess of the then-current loan balance of the First Mortgage Loan;
“First Mortgage Loan” means the loan to Borrower from____________________
in the amount of $________________________________, or any loan obtained
by Borrower to refinance the First Mortgage Loan.
“First-Time Homebuyer” means an individual or an individual and his or her
spouse who have not owned a home during the three-year period before the
purchase of the Property. The term includes displaced homemakers and single
parents as defined in 24 CFR Part 92.2.
“Income And Owner-Occupancy Covenants and Resale Restrictions (the
“Affordability Covenants”) means the document entitled “Income and Owner-
Occupancy Covenants and Resale Restrictions”, in the form attached to this
Agreement as Exhibit D and incorporated herein by reference.
“Property” means the real property described in the legal description attached to
this Agreement as Exhibit “A” and incorporated herein by reference.
“Purchase Price” means the entire purchase price to be paid by Borrower for the
Property.
“Returning Student” means prospective homebuyers that graduated from a high
school located in Santa Ana and have a four (4) year college degree.
“Sale” means any sale, transfer, assignment or conveyance of the Property, any
portion thereof or interest therein, including, without limitation, any lease,
exchange, or other disposition of any interest in the Property, whether voluntary
or involuntary, except that any transfer by gift, devise or inheritance to an existing
spouse surviving joint tenants or other co-owner, or a spouse as part of a
dissolution proceeding or in connection with marriage, or by devise or inheritance
to children, shall not be considered a Sale for the purposes of this Agreement.
EXHIBIT 2
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“Term of Affordability”, shall be forty-five (45) years from close of escrow.
City Loan. The City agrees to lend to Borrower, and Borrower agrees to
1. borrow from the City, the City Promissory Note Amount, at zero (0%)
interest as provided in Section 2 of this Agreement, subject to the conditions and
restrictions set forth in this Agreement, in the Promissory Note and in the City Deed of
Trust. When all conditions to the close of escrow other than payment of the Purchase
Price have been satisfied, the City shall deposit the Loan Amount with the Escrow Agent.
The City shall direct the Escrow Agent to apply the proceeds of the City Loan on behalf
of Borrower to the Purchase Price of the Property for the down payment. Borrower shall
execute and deliver to the Escrow Agent the City Promissory Note, the City Deed of
Trust and the Affordability Covenants.
2. Authorized Use of City Loan. The City Loan proceeds may only be
used for the down payment associated with the purchase of the Property.
3. Conditions Precedent. Borrower must complete eight (8) hours of
homeownership training offered by a counseling center approved by HUD, and open an
impound account for property taxes and insurance costs. Borrower must have a positive
credit history and must obtain a fixed rate loan (co-signors and variable rate loans are not
allowed). Borrower will be required to provide payment of up to 3% of the purchase
price toward the down payment. All properties built before 1978 must have a Visual Lead
Based Paint Inspection and must pass the inspection before loan approval. Inspections
will be made to ensure that there are not code related issues, including common areas in
condominium complexes.
4. Interest Rate and Repayment /Acceleration Terms.
(a) Interest Rate. The City is making the City Loan to Borrower at
zero percent (0%) interest.
(b) Service Charge. Borrower shall be required to pay any and all service
charges associated with the City Loan.
(c ) Repayment/Acceleration. The unpaid outstanding principal
balance of the City Loan and any penalties thereon shall be all due and payable when any
of the following events take place:
i. at the end of the 45 year Term of Affordability;
ii. when the Property is sold;
iii. when the Property is not properly being used as the Borrower’s
principal residence;
iv. The City discovers that Borrower knowingly or willfully made a
EXHIBIT 2
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misstatement or misrepresentation pertaining to Borrower’s status
as an Eligible Person or Family;
v. An uncured default in performance or breach by Borrower of any
provision of this Agreement, the Promissory Note, the City Deed
of Trust or the Affordability Covenants.
(d) Excess Refinancing Proceeds. In the event that the First Mortgage
Loan is refinanced, any Excess Refinancing Proceeds shall be paid out in accordance
with City policy.
(e) Returning Student Loan Forgiveness Incentive. Returning
Students will be eligible for a loan forgiveness up to $40,000. Under this loan
forgiveness incentive, $10,000 will be forgiven from the City Promissory Loan Amount
every five (5) continuous years that the Returning Student remains in compliance with all
terms and conditions of this Agreement and the Affordability Covenants. The maximum
length of time for the Returning Student Loan Forgiveness Incentive shall be over a
twenty (20) year period, up to a maximum of $40,000 forgiven from the City Promissory
Loan Amount. In the event that the entire City Promissory Loan Amount is forgiven, the
Term of Affordability shall not be affected and shall remain enforceable for the complete
timeframe defined herein.
5. Nondiscrimination. There shall be no discrimination against or segregation
of any person, or group of persons, on account of race, color, religion, sex, disability,
marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the Property, or any part thereof, nor shall Borrower
or any person claiming under or through Borrower establish or permit any such practice
or practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy of the Property. The provisions of this section shall be set
forth in the Agreement Containing Covenants recorded against the Property.
6. Income Requirement.
Borrower acknowledges the City’s intent that the Property remain
a. available to persons or families whose household annual income does
not exceed 120% of the area median income for the City, adjusted for family at
affordable housing cost for the longest feasible time, but in any event not less than Forty
Five (45) years from the date of recording of the Affordability Covenants, provided that
the Property remains habitable.
a. Borrower represents and warrants to the City that the information
b. relating to Borrower’s household income that has been provided by
Borrower to the City to verify Borrower’s eligibility for the City Loan is true, correct and
complete as of the date such information was provided to the City and as of the date of
this Agreement. If any such information changes prior to the close of escrow for the
purchase of the Property, Borrower shall promptly notify the City of such change.
Borrower acknowledges that the City is relying upon the representations made by
EXHIBIT 2
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Borrower with respect to Borrower’s household income and that the City would not enter
into this Agreement if Borrower’s household annual income were in excess of 120% of
the area median income for the City, adjusted for family size, as of the date of this
Agreement. As of April 1, 2021June 9, 2017 120% of the area median income for the
City of Santa Ana, adjusted for family size (subject to change approximately annually)
was as follows:
Family Size Income
1 $89,65073,900
2 $102,45084,500
3 $115,25095,050
4 $128,05005,600
5 $138,30014,050
6 $1248,5502,500
7 $158,80030,950
8 $169,05039,400
First-Time Homebuyer. Borrower represents and warrants to the City that
7. Borrower and each adult in Borrower’s household is a First-Time Homebuyer
as defined by this Agreement. Borrower acknowledges that the City is relying on
Borrower’s representation that Borrower and each adult in Borrower’s household is a
First-Time Homebuyer and that the City would not enter into this Agreement if Borrower
and each adult in Borrower’s household were not a First-Time Homebuyer.
8. Owner-Occupancy Requirement.
. Borrower shall occupy the Property as his, her or their primary
a. residence, and the Property shall be used as the principal residence of
Borrower and Borrower’s household and for no other purpose. The maximum occupancy
of the Property shall not exceed two persons per bedroom plus one additional person.
. The City shall have the right to monitor whether the Property is
b. owner-occupied by requesting that Borrower provide the City, no
more frequently than annually, with a written certification under penalty of perjury that
the Property is owner-occupied, accompanied by supporting documentation reasonably
satisfactory to the City.
. In the event of a breach of this section, the City Loan shall become
c. immediately due and payable.
. The provisions of this section shall also be set forth in the Agreement
d. Containing Covenants recorded against the Property.
EXHIBIT 2
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9. Maintenance of Property. Borrower must maintain the interior and
exterior of the improvements and the landscaping on the Property in a manner consistent
with community standards which will uphold the value of the Property, in accordance,
with this Agreement and the Santa Ana Municipal Code. The maintenance requirements
are set forth in specific detail in the recorded Affordability Covenants.
10. Defaults. Failure or delay by either party to perform any term of
provisions of this Agreement, the Promissory Note, the City Deed of Trust or the
Agreement Containing Covenants which is to be performed by such party constitutes a
default under this Agreement. The other party (the “Complaining Party”) shall give
written notice of default to the party in default, specifying in reasonable detail the matter
constituting the default. The party in default shall have 15 days following receipt of
notice to cure the default. Except as required to protect against further damages, the
Complaining Party shall not institute proceedings against the party in default unless the
matter is not cured within such 15 day period, or, if the default is of a nature requiring
more than 15 days to cure, the party in default commences to cure the m atter within such
period and diligently pursues such cure to completion within a reasonable time, but in no
event more than 45 days after notice of default. Failure to cure the default within the
applicable cure period shall entitle the Complaining Party to terminate this Agreement
and/or exercise any remedies available to such party, including, without limitation,
acceleration of payment due on the City Loan.
11. Loan Servicing. The City may contract with a private lender to
originate and service the City Loan, and any costs associated therewith shall be paid by
the Borrower.
12. Indemnification. Borrower shall indemnify, defend and hold
harmless the City, and its respective officers, agents, employees, legal counsel,
representatives and volunteers, from and against any loss, liability, claim or judgment
relating in any manner to the Property or this Agreement. Borrower shall remain fully
obligated for the payment of taxes, liens and assessments relating to the Property. There
shall be no reduction in taxes for Borrower, nor any transfer or responsibility to the City
to make such payments, by virtue of the City Loan.
13. Insurance. Borrower shall maintain, during the term of the City Loan,
an all-risk property insurance policy insuring the Property in an amount equal to the full
replacement value of the structures on the Property. The policy shall name the City as
loss payee and shall contain a statement of obligation on behalf of the insurance carrier to
notify the City of any material change, cancellation or termination of coverage at least 30
days in advance of the effective date of such material change, cancellation or termination.
Borrower shall deliver a copy of the certificate of insurance and loss payee endorsement
to the City at the time of escrow closing, and Borrower shall annually deliver a copy of
the certificate of insurance and loss payee endorsement to the City, signed by an
authorized agent of the insurance carrier and setting forth the general provisions of
EXHIBIT 2
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coverage. The copy of the certificate of insurance and loss payee endorsement shall be
delivered to the City as follows:
City of Santa Ana, Community Development Agency
20 Civic Center Plaza, M26
P.O. Box 1988
Santa Ana, Ca 92702
Attention: Housing Manager
Any certificate of insurance required by this section must be a in a form, content
and with an insurance company that is acceptable to the City in its sole discretion.
14. Non-Waiver. Failure to exercise or delay in exercising any right the City
may have or be entitled to, in the event of default hereunder, shall not constitute a waiver
of such right or any other right in the event of a subsequent default.
15. Documents. Borrower has reviewed and agrees to execute the following
documents in substantially the form as attached to this Agreement prior to receiving the
City Loan, and any other documents or instruments reasonably required by City or a
participating entity to complete the transaction contemplated herein:
(a) Promissory Note (Exhibit C);
(b) City Deed of Trust (Exhibit B);
(c) Affordability Covenants (Exhibit D); and
(d) Disclosure Statement and Notice of Rescission (Exhibit E)
Borrower agrees and acknowledges that this Agreement, the City Deed of Trust and the
Affordability Covenants all be recorded against the Property with the County Recorder of
the County of Orange and shall appear of record with respect to and as an encumbrance
against the Property.
16. Further Assurances. Borrower shall execute any further documents
consistent with the terms of this Agreement, including documents in recordable form, as
the City may from time to time find necessary or appropriate to effectuate its purposes in
entering into this Agreement and making the City Loan.
17. Governing Law. This Agreement shall be governed by the laws of the
State of California, with venue in Orange County.
18. Severability. In the event that any provision or clause of this Agreement
conflicts with applicable law, such conflict will not affect other provisions of this
Agreement which can be given effect without the conflicting provision, and to this end
the provisions of the Agreement are declared to be severable.
EXHIBIT 2
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19. Amendment of Agreement. No modification, rescission, waiver, release
or amendment of any provision of this Agreement shall be made except by a written
agreement executed by Borrower and the duly authorized representative of the City.
20. Assignment by City Permitted. The City may, in its sole and
absolute discretion, assign its rights under this Agreement and/or its right to receive
repayment of the City Loan without obtaining the consent of Borrower.
21. Assignment of Borrower Prohibited. In no event shall Borrower assign
or transfer any portion of this Agreement or any rights herein without the prior express
written consent of the City, which consent the City may give or withhold in its sole and
absolute discretion. This provision shall not affect or diminish the City’s right to assign
all or any portion of its rights under this Agreement or to the proceeds of the City Loan
hereunder.
22. Relationship of Borrower and City. The relationship of Borrower and
City pursuant to this Agreement is that of debtor and creditor and shall not be, or be
construed to be a joint venture, equity venture, partnership or other relationship.
23. Notices. (a) Except as otherwise expressly provided in this Agreement,
in every case when, under the provisions of this Agreement, it shall be necessary or
desirable for one party to serve any notice, request demand, report or other
communication on another party, the same shall be in writing and shall not be effective
for any purpose unless served (i) personally, (ii) by independent, reputable, overnight
commercial courier, or (iii) by deposit in the United States mail, postage and fees fully
prepaid, registered or certified mail, with return receipt requested, addresses as follows:
To Borrower: _________________________
_________________________
_________________________
To City: City of Santa Ana
Community Development Agency
20 Civic Center Plaza, M26
P.O. Box 1988
Santa Ana, CA 92702
Attention: Housing Manager
24. Attorney’s Fees and Costs: In the event that any action is instituted to
enforce payment or performance under this Agreement, or otherwise in connection with
this Agreement, the parties agree that the prevailing party shall be reimbursed by the
other party for all costs and all attorney fees incurred by the prevailing party in such
action.
EXHIBIT 2
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25. Entire Agreement. This Agreement, together with all attachments hereto
and all documents executed pursuant hereto, constitutes the entire understanding and
agreement of the parties. This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all prior negotiations, discussions
and previous agreements between the City and Borrower concerning all or any part of the
subject matter of this Agreement.
26. Conflict of Interest. No member, official or employee of City shall have
any personal interest, direct or indirect, in this Agreement nor shall any member, official
or employee participate in any decision relating to the Agreement which affects his
personal interests or the interests of any corporation, partnership or association in which
he is directly or indirectly interest.
27. Captions. The captions and headings in this Agreement are for
convenience only and are not to be used to interpret or define the provisions hereof.
{Signatures on following page}
EXHIBIT 2
11
IN WITNESS WHEREOF, the parties have executed this Loan Agreement as of the day
and year written below.
BORROWER
Dated: ___________________________ By:___________________________
Name: ________________________
Dated: ___________________________ By:___________________________
Name: ________________________
“CITY”
CITY OF SANTA ANA
By:___________________________
Kristine RidgeRaul Godinez, II
City Manager
Dated: _______________________
APPROVED AS TO FORM:
City Attorney
_________________________________
By: Ryan O. Hodge
Assistant City Attorney
Dated:
EXHIBIT 2