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Home My WebLink AboutHOU, JOHN & TAO-JAN 1-2007 INSUI\i\NCE NOT REQUIRED v\IORK MIIY PROCEr:!) CLERK OF COUNCIL DATE: APR 1 0 2Uu7 lJ'.-P>J AG<j {j(.Jcrs~ N-2007 -036 RESIDENTIAL RENT AL AGREEMENT This Residential Rental Agreement (hereinafter "Agreement") is entered into on March 3, 2007 between John P. Hou and Tao-Jan Hou (hereinafter "Owner" or "Lessor") and the City of Santa Ana, a charter city and municipal corporation duly organized under the Constitution and laws of the State ofCalifomia (hereinafter "City" or "Lessee"). RECITALS A. Owner owns in fee a residential rental property located at 711 S. Bristol. Santa Ana. California (hereinafter "Property"). Owner desires to rent the Property to City for the purposes and on the terms and conditions set forth in this Agreement. B. City desires to lease the Property from Owner for the purposes and on the terms and conditions set forth in this Agreement. C. City is in the process of acquiring the Property by way of purchase agreement or by way of condemnation, as the Property is within the site designated as the proposed Bristol Street Widening Project. D. The City's acquisition of the Property necessitates the relocation of Owner's current tenants on a timely basis prior to the close of the acquisition escrow and prior to City taking possession of the Property. E. Owner desires to be protected against loss of rental income for the period of time commencing with the relocation of Owner's current tenants to the time title to the Property vests in City or until City takes physical possession ofthe Property. City is desirous of paying to Owner the value of the potential loss of monthly rental income for this period. WHEREFORE, in consideration of the mutual and respective promises of the Parties to this Agreement, and suhject to all the terms and conditions contained herein, the Parties agree as follows: I. Term of Agreement. The tenancy created by this Agreement shall be periodic, on a month-to- month basis, commencing on March 3, 2007 and terminating on or before September 30, 2007. Upon the written agreement of Owner-Lessor and City-Lessee, this Agreement may be renewed for successive monthly terms, but in no event shall the term of this Agreement extend past September 30, 2007. 2. Effective Date. This Agreement shall become effective and will be binding on the Parties once it is signed by the Clerk ofthe Santa Ana City Council. 3. Rental Premises. The Property leased to City pursuant to this Agreement is referenced in the recitals above, and is more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference. The Property is improved with an 829 square foot single family residence, formerly occupied by Owner's current tenants Andres Coria (along with 8 occupants). 4. Permissible Use. The Property shall be used for residential purposes only. Any use of the Property that does not comply with this Agreement is not a permitted use and will constitute a breach of this Agreement. Page 1 of 5 J 5. Rent. City agrees to pay Owner a rental fee of Twelve Hundred and NO/IOO Dollars ($1,200.00) per month for the term of this Agreement, which the Parties agree is the reasonable amount of potential rental income loss by Owner due to the relocation of Owner's current tenants as a result of the acquisition of the Property by City. Monthly rental shall be paid in advance on or before the first day of each calendar month during the term of this Agreement. If the commencement date of this Agreement is other than the first day of a calendar month, the monthly rental amount payable hereunder shall be prorated and the rent for the partial month following the Commencement Date shall be payable on the first day of the first full calendar month of the term, together with the regular monthly rental payment then due, in accordance with Exhibit "B" attached hereto. 5a. Rents shall be prorated from the date of vacation of premises by Owner's current tenants until the date of close of escrow or until title to the property vests in City, but in any event, shall not accrue after September 30,2007. Any prorated rents due to Owner by City shall be paid on a monthly basis with the last month paid to Owner as soon after the close of the acquisition escrow as possible. All subsequent monthly rental payments shall be paid in advance on the first day of each calendar month. 5b. In the event City takes possession of the Property under an Order ofImmediate Possession issued by a court of competent jurisdiction in a condemnation proceeding, the rents shall be pro-rated from the date of vacation of the premises by Owner's current tenants to the effective date of the Order ofImmediate Possession. Said sum representing the prorated rents shall be paid to the Owner by City on a monthly basis through and until the effective date ofthe Order ofImmediate Possession. Any and all prorations shall be made on the basis of a 360-day year/30-day month. 5c. Notwithstanding the provisions of paragraphs 5a and 5b above, City reserves the right to terminate this Agreement upon thirty (30) days written notice to Owner if either of the following occurs: (i) In the event the City's escrow for the acquisition of the Property from Owner is unable to close in a timely fashion due to any fault of the Owner; (ii) In the event of City's acquisition of the Property by condemnation, Owner takes legal or other action preventing the City from obtaining possession by Order of Immediate Possession. 6. Maintenance. City shall maintain the interior of the improvements on the Property at City's sole cost and expense, in a manner consistent with community standards which will uphold the value of the Property, in accordance with this Agreement, the Santa Ana Municipal Code and any other applicable State or Federal statutes and/or local rules, regulations, ordinances and community standards. Owner shall maintain the exterior of the improvements on the Property at Owner's sole cost and expense, in a manner consistent with community standards which will uphold the value of the Property, in accordance with this Agreement, the Santa Ana Municipal Code and any other applicable State or Federal statutes, and/or local rules, regulations, ordinances and community standards. The Owner shall maintain all landscaping in, on, or surrounding the Property. 7. Utilities. City shall be responsible for the payment of all charges in connection with utility services provided to the Property. For the purposes ofthis Agreement, "utility services" include natural gas, electricity and sewer. Owner shall be responsible for payment of water and trash collection service fees. Page 2 of5 8. Real Propertv Taxes. Owner shall be liable for all real property taxes that may be assessed against the Property. 9. Subleasing of Property. City shall not sublet the Property without the written consent of Owner. 10. Inspection bv Owner. Owner shall have the right to inspect the Property on twenty-four (24) hours prior written notice to City. 11. Breach. Failure to comply with any term, condition or provision in this Agreement shall constitute a breach. Except as otherwise provided in this Agreement, the non-breaching party (the "Complaining Party") shall give written notice of default to the party in default (the "Defaulting Party"), specifying in reasonable detail the nature of the default, and the Defaulting Party shall have five (5) days following receipt of notice to cure the default. Except as required to protect against further damages, the Complaining Party shall not initiate legal proceedings against the Defaulting Party unless the default is not cured within such five (5) day period, or, if the default is of a nature requiring more than five (5) days to cure, the Defaulting Party commences to cure the default within such five (5) day period and diligently pursues such cure to completion within a reasonable time, but in no event more than ten (10) days after receipt of notice of default. Failure or delay in giving notice of default shall not constitute a waiver of any default, nor shall it change the time of default. Any uncured breach of this Agreement may result in termination of this Agreement. 12. Non-Waiver. Failure to exercise, or any delay in exercising, any right Owner 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. 13. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 14. Partial Invaliditv. Any provision in this Agreement that is held unenforceable or invalid or which would adversely affect the validity, legality, or enforceability of this Agreement shall have no force or effect, but all remaining provisions ofthis Agreement shall remain in full force. 15. Modifications. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by City and the Owner or duly authorized representative of Owner. 16. Assignment bv Citv Prohibited. In no event shall City assign or transfer any portion ofthis Agreement or any rights herein without the prior express written consent of Owner, which consent Owner may give or withhold in its sole and absolute discretion. 17. Relationship ofCitv and Owner. The relationship of City and Owner pursuant to this Agreement is that of Owner-tenant, and the City shall not be, or be construed to be, a joint venture, equity venture, partnership or other relationship. 18. Notices. 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 prepaid, registered or certified mail, with return receipt requested, addressed as follows: Page 3 of5 EXHIBIT "A" LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SANTA ANA, AND IS DESCRIBED AS FOLLOWS: LOT 3 OF TRACT NUMBER 228, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 13, PAGE 19 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECROFER OF ORANGE COUNTY, CALIFORNIA. EXEPT THEREFROM THE EASTERLY 20 FEET THEREOF. ALSO EXEPTING THEREFROM THE WESTERLY 10 FEET THEREOF. APN: 010-183-42 To City: City of Santa Ana 20 Civic Center Plaza, M-36 Post Office Box 1988 Santa Ana, CA 92702 Attention: Souri Amirani To Owner: " " John p, Hou and Tao-Jan Hou-;r-' 'io/JI--....J "r., flU' / ;;::4~n~~1-'7 Irvine, CA 92620 \/ 19, Attornev's Fees and Costs. In the event that any action is initiated to enforce payment or performance under this Agreement, the Parties agree that the prevailing party shall be reimbursed by the non-prevailing party for all costs and all attorneys' fees incurred by the prevailing party in such action. 20. 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 Owner and City concerning all or any part of the subject matter referenced in this Agreement. 21. Conflict oflnterest. No member, official or employee of Owner shall have any personal interest, direct or indirect, in this Agreement nor shall any member, official or employee participate in any decision relating to this Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he has a direct or indirect interest. 22. Captions. The captions and heading in this Agreement are for convenience only and are not to be used to interpret or define the provisions hereof. IN WITNESS WHEREOF, the parties have executed this Agreement as ofthe day and year written above. o~ :.c.'? "? By: ',' 1..--/ Dated: :3 1.:2 , 2007 John .Hu ~ By>, l?i Tao-Jan (liH 4, Dated: ;,6'3, 2007 u ated, ,2007 CITY OF SANTA ANA: ated:~,2007 Patricia E. Healy Clerk ofthe Council APPROVED AS TO FORM: JOSEPH W.!'1:ETCH]I} City Attorn~ \ /; By; 'J '-. (/ Dated: frJAA.tJt...W, 2007 C ean al; ior Assistant'City Attorney Page 4 of 5 Exhibit "B" Rental Schedule for 711 S. Bristol, Santa Ana, CA Tenant Rent Date Due Amount City of Santa Ana $1,200.00 15t of month Payment payable as follows: John P. Hou 1 S. Farragut Irvine, CA 92620 Page 5 of5