HomeMy WebLinkAboutHUMPHRIES, VALERIE R.OWNER PARTICIPATION AGREEMENT
AMONG
Tf IE CITY OF SANTA ANA
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
BEEN
VALERIE, R. HUMPHRIES
[110 5 S. MINNIE STREET]
LIST OF EXHIBITS
Exhibit
Description
"A"
Site Map of Minnie Street Improvement Project Area
`B"
List of Street Addresses of the Properties
"C"
Description of Owner's Property
"D"
Description of Publicly Funded Improvements
"E"
C,C&R Agreement
"F"
Certificate of Compliance
"G"
Description of Facade and Courtyard Improvements
Property Standards
Income Certification Form
Estimate of City/Agency Funded Improvement Costs
"K"
Deed of Trust
"L"
Estimate of Facade and Courtyard Improvement Costs
"M"
Release of Lien
"N"
Conditions for Facade and Courtyard Improvements
Certificate of Insurance and Additional Insured Endorsement
Memorandum of Agreement
Release from Memorandum of Agreement
"R"
Facade & Courtyard Construction Agreement
"S"
Assignment and Assumption Agreement
TABLE OF CONTENTS
1.
DEFINITIONS AND INTERPRETATION........................................................................ 2
I
2.
CONDITIONS PRECEDENT..............................................................................................
f
5
i
3.
AFFORDABLE HOUSING COVENANTS.........................................................................
5
1
4.
PROPERTY INSPECTION/COMPLIANCE PROGRAM. .
5.
PUBLICLY FUNDED IMPROVEMENTS.....................................................,..................
10
6.
FACADE AND COURTYARD IMPROVEMENT PROGRAM ....................................
11
7.
C,C&R's...............................................................................................................................14
I
8.
APARTMENT MANAGEMENT COORDINATION.....................................................
14
9.
INDEMNIFICATION AND INSURANCE.......................................................................
14
10.
COMPLIANCE WITH LAWS.........................................................................................
15
11.
DEFAULT
15
12.
ATTORNEYS' FEES.......................................................................................................
16
13.
LEGAL ACTIONS...........................................................................................................
16
14.
RIGHTS AND REMEDIES CUMULATIVE................................................................
16
15.
NOTICES...........................................................................................................................17
16.
ASSIGNMENT..................................................................................................................17
17.
RECORDATION..............................................................................................................17
18.
ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS .....................................
18
OWNER PARTICIPATION AGREEMENT
[Cornerstone Village]
1109 S. Minnie
�C��-THIS OWNER PARTICIPATION AGREEMENT dated as of
2002 for identification purposes only, is made and entered into by and among the City of Santa,
the Community Redevelopment Agency of the City of Santa Ana, and Valerie R. Humphries
("Owner"), with reference to the following:
RECITALS:
A. The purpose of this OPA is for Owner, City, and Agency to establish commitments
for improvement of the housing conditions for residents living in the area popularly known as the
Minnie Street neighborhood, and for the Agency and City to implement their goal and objective
of meeting the community's need for decent, safe and sanitary housing for persons and families
of low to moderate income in the community, and to improve, increase and preserve housing
available at an affordable housing cost to persons and families of low and moderate income; this
OPA'is also consistent with the national goals and objectives, as outlined in 24 C.F.R §570.200
(a), of using CDBG funds for the provision of public improvements and is designed to aid in the
prevention of blight.
B. Area owners of the Properties will form a property owners association (the
Cornerstone Village Owners' Association) for, among other things, the purpose of making and
zxraintaining certain improvements in the Agreement Area;
C. Agency, City, Owner and the Association desire to work together for the overall
improvement and betterment of the neighborhood through implementation of a program that
includes, among other things, the following improvements to be the responsibility of the Agency
and City:
(1) Street Improvements
(2) Landscape Improvements
(3) Parking Area Improvements
(4) Building Courtyard Entrance and Facade Improvements.
D. Agency, City, Owner and the Association desire to work together for the overall
improvement and enhancement of the neighborhood through implementation of a program that
includes, among other things, the following to be the responsibility of the Owner:
(1) Rehabilitation of buildings per this Agreement;
(2) Implementation of common conditions, covenants and restrictions;
(3) Maintenance of current membership and participation in the Association, and
(4) Maintenance of all improvements on Properties not maintained by the Association.
For good and valuable consideration stated here -in, the receipt and sufficiency of which are
hereby acknowledged, Agency, City, and Owner agree as follows:
1. DEFINITIONS AND INTERPRETATION
1.1 Defined Terms. All defined terms used herein, including, without limitation, in
the Recitals above and in the exhibits attached hereto, unless otherwise expressly defined, are
defined where first used in this OPA and/or as set forth in this Section 1.1.
"Adjusted Income" means the qualifying income of a person (together with the
qualifying income of all persons who intend to reside with such person in one residential unit) as
calculated in the manner prescribed under Section 142(d)(2)(B) of the Code.
"Affordable Rent" means monthly rent (including the Utility Allowance, and excluding
any supplemental rental assistance from. the State of California, the federal government or any
other public agency) not in excess of thirty percent (30%) of one -twelfth (1/12th) of sixty percent
(60%) of the Median hwoi e for the Area, adjusted for family size assuming a three person
household for a one bedroom apartment and a five person household for a two bedroom
apartment. (City to provide an updated schedule of rents to Association Chairperson when
revised by HUD. By example, the current rent limit, as of June 2002, fora family of three is
$1020 for a one bedroom apartment and $1,225 for a family of five in a two bedroom
apartment.)
"Agency" means the Community Redevelopment Agency of the City of Santa Ana, a
public body, corporate and politic, existing pursuant to the California Community
Redevelopment Law (California Health & Safety Code Section 33000 et seq.).
"Approval Date" means the date when the governing bodies of both the Agency and the
City have taken final to authorize execution of the OPA's with the Owners.
"Publicly Funded Improvements" means as forth in Section 5 and as generally
described in Exhibit D.
"Agreement Area" means that portion of the City of Santa Ana depicted on the Site
Map attached hereto as Exhibit "A". The Agreement Area is a neighborhood of multifamily
apartment buildings in the City on both sides of Minnie Street from McFadden Avenue on the
south to Grant Street on the north, containing approximately forty-eight (48) multifamily
apartment buildings each on a separate parcel which, in the aggregate, contain approximately
five hundred twenty-seven (527) dwelling units, together with certain associated parcels that
provide surface parking for the residents of the Properties.
"Area" means the Orange County, California Metropolitan Statistical Area.
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"Association" means the Cornerstone Village Owners' Association, a California non-
profit public benefit corporation.
"CC&R's" means those certain Conditions, Covenants, Restrictions and Easements
attached hereto as Exhibit " B".
"Certificate of Compliance" means a certificate issued by the Agency, in the form
attached hereto as Exhibit "F", certifying that a particular parcel in the Agreement Area has been
found to be in compliance with respect to the Property Inspection/Coinpliance Program
described in Section 4.
"Code" means the Internal Revenue Code of 1986, as amended, including the
Regulations promulgated thereunder or under any predecessor statute.
"County" means the County of Orange, California.
"City" means the City of Santa Ana, California, a charter city and municipal corporation
duly organized and existing under the Constitution and laws of the State of California.
"Facade and Courtyard and Courtyard Improvement Program" has the meaning set
forth in Section 6.
"Facade and Courtyard and Courtyard Improvements" means the Facade and
Courtyard improvements generally described in Exhibit "G" attached hereto.
"Facade and Courtyard Improvements Completion Bate" means the later of (a)
acceptance of the work by the Owner, or (b) twelve (12) months from start of the work,
"Initial Income Certification Date" means not later than six months following the
Implementation Date.
"Implementation Date" means, with respect to any particular Property, the date on
which the CC&R's are recorded against that Property in the Official Records.
"Inspection Report" has the meaning set forth in Section 4.3.
"Low -Income Tenant" means a person or family with Adjusted Income, determined as
of the date of initial income certification for existing tenant and for new tenants occupancy, by
reference to the income certification process described in Section 3.4, that does not exceed eighty
percent (80%) of the Median Income for the Area, adjusted for faanily size. (Note: By way of
example, in June 2002, eighty percent (80%) of the Median Income for a family of four is
$60,500 per year.)
"Median Income for the Area" means the median income for the Orange County,
California Metropolitan Statistical Area as determined and published annually by the Secretary
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of Housing and Urban Development under Section 8 of the United States Housing Act of 1937,
as amended, or if programs under Section 8 are terminated, median income for the Area
determined under the method used by the Secretary prior to such termination. The City shall
make this information available to the Association upon request.
"Official Records" means the Official Records of the County of Orange.
"OPA" means this agreement or the OPA's entered into or to be entered into by Owner
and all of the other owners of the Properties, as the context requires.
"Owner" has the meaning set forth in the opening paragraph of this OPA.
"Owner's Property" means those parcels of real described on Exhibit "C" attached
hereto.
"Properties" means those parcels of real property described by street address and/or
Assessor's parcel number on Exhibit "B" attached hereto, including Owners' Property.
"Property Standards" has the ni.eaning set forth in Section 4 and Exhibit "H" attached
hereto.
"Utility AIlowance" means a reasonable allowance for utilities, as defined by the United
States Department of Housing and Urban Development for the Federal Section 8 program, and
adopted from time to time by the Housing Authority for the City of Santa Ana. The allowance
includes garbage collection, sewer, water, electricity, gas and other heating, cooking and
refrigeration fuels, but excludes telephone or cable television service,
1.2 Singular and Plural Terms. Any defined tern used in the plural in this OPA
shall refer to all members of the relevant class and any defined term used in the singular shall
refer to any number of the members of the relevant class.
1.3 References and Other Terms. .Any reference to this OPA or any exhibit or
attaclument hereto shall include such document both as originally executed and as it may from
time to time be modified by mutual written agreement of the parties. References herein to
Articles, Sections and/or Exhibits shall be construed as references to this OPA unless a different
document is named. The teens "including" and "include" mean "including (include) without
limitation."
1.4 Exhibits Incorporated. All attachments and exhibits to this OPA, as now
existing and/or as the same may from time to time be modified by mutual
written agreement of the parties, are incorporated herein by this reference.
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2. CONDITIONS PRECEDENT.
2.1 Minimum Participation by Owners. This entire OPA shall be subject to the
condition precedent that, not later than ninety (90) days from the Approval Date, the owners of
not less than forty-four (44) properties within the Agreement Area, enter into the OPA, pursuant
to which such owners subject each of the Properties that they own to the terms and conditions of
the OPA and the CC&R's. Furthermore, the City agrees to not record any CC&R agreement for
Properties until 44 of the properties have entered into the agreement. if this condition is not
satisfied, then either party may terminate this OPA by notice to the other party.
2.2 - Paired Properties. The parties acknowledge and agree that many of the
Properties are "paired" in that they face one another in mirror image separated only by a property
line running through a common courtyard ("Paired Properties"). If any of the Owner's Property
is part of a Paired Property, then, with respect to each of such Paired Properties, it shall be a
condition precedent for the benefit of City and Agency and Owner to their obligations under this
OPA that both Properties of the Paired Properties be subject to the OPA. Accordingly, in a case
where a set of Paired Properties is not owned by the same person or entity, and only one is made
subject to an OPA, the Agency may terminate this OPA, only as to such Property.
3. AFFORDABLE HOUSING COVENANTS.
3.1 Covenant, As set forth in detail in the CC&R's, Owner covenants and agrees to
rent all of the dwelling units in Owner's Property to Low -Income Tenants at Affordable Rent.
3.2 Term. The affordability covenant set forth in the CC&R's shall commence on
the Inrnplennentation Date for the subject Property and shall terminate with respect to such
Property on the date that is the earlier of (a) the fifteenth (15th) anniversary of the date of
issuance of a Certificate of Compliance for the subject Property pursuant to Section 4.3 or 4.5 of
this OPA, or (b) the thirtieth (30th) amiiversary of the Implementation Date for the subject
Property.
3.3 Increase in Income. For purposes of satisfying the obligation set forth in
Section 3.1, a person or persons who at the commencement of their occupancy qualified as a
Low -Income Tenant or Tenants shall continue to be treated as though they were a Low -Income
Tenant as long as they occupy the same unit, even if such person's or persons' income later rises
to a level that exceeds that limit.
3.4 A ere 's Obligations. Agency agrees to provide to the Association annually
with updates of most current schedule of Low Income Tenant and Affordable Rent requirements.
Additionally, the Agency.will provide assistance in certifying income of existing tenants residing
in each unit within six months of the Implementation Date.
3.5 Initial Income Certification/Annual Report. Prior to the initial occupancy of
each unit by a new tenant Owner shall obtain, on the form attached hereto as Exhibit "I", current
income certification statennents for all adult persons who will occupy the unit. Owner shall
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comply with all the requirements for income certification as set forth in the CC&R's, as well as
providing to the Agency a semi-aiumal report of tenant income in a form, and on a schedule as
provided by the Agency. In the case of existing tenants, Owner shall cooperate with the Agency
in obtaining the same income certification within six (6) months of the lmmplementation Date.
Owner shall not be in breach of this paragraph as to existing tenants if, a tenant refuses to
provide a timely certification provided the Owner promptly initiates and diligently prosecutes an
action to compel the tenant's compliance or reinove the tenant,
3.6 New Forms of Rental Agreements. Owner shall require all new tenants to
execute rental agreements approved by the Association, which forms shall conform to the
requirements set forth in the second paragraph of this section. In the case of existing tenants,
Owner shall require tenants to execute new association -approved rental agreements at the same
time as obtaining income certification as called for in Section 3.5, above. Owner shall not be in
breach of this paragraph as to existing tenants if, a tenant refuses to execute said new rental
agreements provided the Owner promptly initiates and diligently prosecutes an action to compel
the tenant's compliance or remove the tenant.
Owner agrees that all such tenant rental agreements must contain a non-discrimination
clause and conform with State and Federal laws regarding the provision of fair housing. Owner
further agrees that all prospective tenants will be notified that Owner has relied on the income
certification supplied by the tenant in determining income -qualification for occupancy, and that
ariy material misstatement in such certification will be cause for immediate termination of such
rental agreement. The Agency shall provide to the Association required rental agreement
language to conform this section.
4. PROPERTY INSPECTION/COMPLIANCE PROGRAM. Attached to this OPA as
Exhibit "H" is a set of Standard Conditions and Materials for the Properties (the "Property
Standards"). As hereinafter more particularly provided, Owner hereby agrees that, not later than
the fifth (5"') anniversary of the Implementation Date (subject to the possible extension set forth
in Section 4.6 below), Owner will cause each of Owner's Properties to meet the Property
Standards.
4.1 Initial Inspection. If not already completed prior to the Effective Date of this
Agreement, Owner agrees to schedule each of Owner's Properties for an initial physical
inspection by Agency staff and/or consultants to occur not later than six (6) months after the
Implementation Date. Owner acknowledges and agrees that each such initial inspection shall be
a complete physical inspection of each Property, including, without limitation, an inspection of
the interior of each dwelling unit in the Property. Accordingly, Owner agrees to obtain from the
occupant of each such dwelling unit, prior to the date set for the inspection, the consent of such
occupant for such entry and inspection at the appointed time. Owner shall invite the tenant to be
present during the inspection as well. Owner also agrees that each Agency inspection shall be
attended by either Owner, Owner's property manager or another responsible person designated
by Owner in writing to the Agency prior to the inspection.
4.2 Scheduling. Agency agrees to schedule Owner's Property for inspection not later
than thirty (30) days after the date of receipt of written request therefor from Owner, which
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request Owner agrees to make to Agency not later than five (5) months after the Implementation
Date.
4.3 1 sA_ection _Report. If a report has not yet been issued for the Property prior to
the Effective Date of this Agreement, within twenty one (21) days of completion of each
inspection, Agency shall deliver to Owner a written.report describing in reasonable detail in what
respects, if any, the subject Property fails to meet the Property Standards (the "Inspection
Report"). If the inspection finds that the Property is in compliance with the Property Standards,
Agency shall promptly issue to Owner a Certificate of Compliance for the Property, and record a
release of any liens or security documents recorded against the Property pursuant to this
Agreement.
4.4 Appeals Process. If Owner disagrees with any finding of the Agency's inspector,
Owner shall have the right, within thirty (30) days after receipt of the disputed Inspection Report,
to appeal such finding in writing to the Agency. Ali appeal must state with reasonable specificity
the item or items disputed by Owner in order to be considered. Upon receipt of any such appeal,
Agency shall cause the Property to be reinspected within thirty (30) days and notify Owner in
writing of the results of such reinspection within fifteen (15) days of completion of the
reinspection.
In the event that Owner still disputes any Agency finding after such reinspection, Owner
shall have the right, within thirty (30) days after receipt of the disputed reinspection report, to
appeal the matter to an appeals board comprised of four (4) members, two (2) of whom shall be
appointed by the Association and two (2) of whom shall be appointed by the Agency's Executive
Director. The appeals board shall hear the matter within thirty (30) days after receipt of the
written appeal and shall render a decision within fifteen (15) days after hearing the matter. The
decision of the appeals board shall be binding if made by a majority of the Board.
If the appeals board cannot come to a majority decision, Owner shall thereafter have the
right, within thirty (30) days after receipt of notice from the appeals board, to seek binding
arbitration of the matter. The Agency and the owner shall exchange a list of three (3) arbitration
candidates acceptable to each party from the JAMS/Endispute panel for Orange County (or such
other organization as the parties shall agree). After exchange of such lists, the parties shall meet
and confer, and attempt to reach agreement on appointment of a single arbitrator. If no such
agreement can be reached within three (3) business days of such exchange, the parties shall
conduct a second exchange, in which each shall name an additional three (3) arbitrator
candidates fiona the same panel, different from those originally suggested by the parties. After
the second exchange, the parties will again meet and confer, and attempt to appoint an arbitrator
acceptable to each. In the event no such agreement can be reached within two (2) business days
of the second exchange of arbitrator candidate lists, the parties, or any of them, shall petition the
Orange County Justice Court, on an ex parte basis, to appoint the arbitrator.
The arbitration will be conducted in accordance with the corrunercial arbitration rules of
JAMS/Endispute (or such other rules as the parties shall agree). The arbitration shall be binding
on all parties, and the parties waive any right to a trial and any right to appeal the arbitrator's
determination.
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The parties shall be responsible 50150 for payment of the arbitration fees and charges
incurred in any arbitration. In the event that a dispute arises between the parties as to the
reasonableness of the arbitration fees and charges, or the necessity of the fees and charges by
virtue of the conduct of one of the parties, the matter shall be submitted to the appointed
arbitrator for decision and allocation, if any, of the fees to be paid by each respective party. The
decision of the appointed arbitrator shall be final.
4.5 Compliance. If the Inspection Report for any of Owner's Properties finds any
deficiencies and, as a result, Agency does not then issue a Certificate of Compliance for such
Property, Owner hereby agrees to bring that Property into compliance with the Property
Standards not later than (subject to possible extension pursuant to Section 4.6 below) the fourth
(4"') anniversary of the Implementation Date. Such compliance shall be determined by another
inspection of the Property by Agency in accordance with the procedures outlined in Sections 4.1,
4.2 and 4.3 above.
If Owner proir ptly remedies all of the deficiencies cited in the initial Inspection Report
and schedules the subject Property for reinspection by Agency within one hundred eighty (180)
days after the date of the initial Inspection Report or the Implementation Date, which ever is
later, then the scope of such inspection shall be only to determine if Owner has satisfactorily
remedied the deficiencies actually cited. If, however, such reinspection is not scheduled by.
Owner until a date more than one hundred eighty (180) days after the date of the initial
Inspection Report, then the scope of such inspection shall again extend to the entire Property and
not just to the deficiencies cited in the initial Inspection Report.
If, upon reinspection, the Property is found by Agency to be in full compliance with the
Property Standards, Agency shall promptly issue to Owner a Certificate of Compliance for the
Property. If the Property is found not to be in full compliance, Agency will issue a follow-up
Inspection Report to Owner stating which deficiencies cited in the initial or a reinspection Report
are not in compliance and Owner shall promptly commence to remedy the deficiencies cited in a
follow-up Inspection Report. If Owner promptly remedies all of the deficiencies cited in the
follow-up Inspection Report and schedules the subject Property for final Inspection by Agency
within ninety (90) days after the date of such follow-up Inspection Report, then the scope of such
inspection shall be only to determine if Owner has satisfactorily remedied the deficiencies
actually cited in that follow-up Inspection Report. If, however, such final inspection is not
scheduled by Owner until a date more than ninety (90) days after the date of that follow-up
Inspection Report, then the scope of such inspection shall again extend to the entire Property .and
not just to the deficiencies cited in that follow-up Inspection Report.
If an owner can prove that a deficiency has been corrected by showing appropriate
receipts for and photographs of completed work and that the improvements were daanaged due to
forces beyond the owners control (for example tenant destruction of property), then the Inspector
may consider the improvement(s) as complete with the condition that the Owner provides proof
that improvements have been restored within a reasonable amount of time by way of dated
photographs and receipts. Certificates of Completion will not be granted until this is done.
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Notwithstanding the foregoing ninety (90)-day time limit, if a deficiency cited is a stair or
balcony replacement or other improvements requiring issuance of a building permit by the City,
then such ninety (90)-day period shall be extended by the Agency's Executive Director for so
long as may reasonably be required to issue the building permit. Extensions following
reinspections may also be granted under the following circumstances:
(a) If Owner is in the process of evicting tenants in a rental unit, then that unit may be
excluded from the time limits for reinspection if the Owner (1) provides proof that they have
entered into a legal eviction process, (2) notifies the Agency's Executive Director within five (5)
days when the apartment unit becomes vacant, and (3) schedules an inspection of that apartment
unit within ninety (90) days after the unit is vacated by the evicted tenant.
Owner agrees not to schedule any Property for reinspection unless and until Owner
reasonably believes that Owner has remedied all of the deficiencies cited in the subject
Inspection Report. If a reinspection or follow-up Inspection has been requested by Owner and
the Inspector determines that the Owner has not in good faith attempted to remedy all of the
deficiencies cited in the previous Inspection Report, then the Inspector shall stop the inspection
and document the facts indicating that sufficient work had not been done. Before scheduling
subsequent inspections, the Owner shall then be required to provide proof that work has been
done in the form of receipts for material and/or labor, or photographic evidence. The scope of
the subsequent inspection shall again extend to the entire Property and not just to the deficiencies
cited in the previous Inspection Report.
4.6 Extension. Subject to the conditions described below, the Agency's Executive
Director may extend for up to five (5) years the deadline by which Owner must bring any
deficient Property into compliance with the Property Standards. Any such extensions shall be
subject to the following conditions:
(a) Owner must request such extension in writing not later than six (6) months prior
to the expiration of the Compliance Period, or of any period to which the deadline has been
extended pursuant to this Section; and,
(b) Owner must demonstrate to the reasonable satisfaction of the Agency's Executive
Director that Owner has not had the personal financial resources nor, despite the exercise of
reasonable diligence, has not been able to obtain, on commercially reasonable terms and
conditions from any responsible Iending institution including, but not limited to, the City, the
Agency or other public agency or quasi -public. agency, the financing necessary to fund the work
required to bring the Property into compliance.
4.7 Property Maintenance. Nothing contained in this Agreement shall be construed
to absolve the Owner from its obligation to maintain the Property in conformance with all
applicable City and ,State standards for habitability and property maintenance, nor prevent City,
County or State officials from enforcing applicable laws against the Owner in the same manner
has they could be enforced in the absence of this Agreement.
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5. PUBLICLY FUNDED IMPROVEMENTS. Subject to the conditions set forth in
Section 5.2 below; Agency and City hereby agree to cause to be made or funded, at no cost or
expense to Owner or the other owners of the Properties, the improvements described in Section
5.1) below and in Exhibit "D" (the "Publicly Funded Improvements"). The City and Agency
shall establish funding and contracting arrangements under which work on the Publicly Funded
Improvements to commence not later than the second (2nd) anniversary of the Implementation
Date and to be completed not later than the fourth (4th) anniversary of the Implementation Date.
5.1 Scope of Improvements
(a) Project A: Public Improvements
(1) Minnie Street from McFadden Avenue to Wakeham Avenue to be reconfigured
as a one way street traveling in a northern direction.
(2) Minnie Street from Wakeharn Avenue to Grant Street; Grant Street from Minnie
Street to the alley; and Wakeham Avenue from Minnie Street to be resurfaced.
(3) Entrance monuments and signage installed at MacFadden Avenue and Minnie
Street; Wakeham Avenue and Grant Street (at alley).
(4) New street lighting with underground wiring and mailbox bases installed along
Minnie Street as required.
(b) Project B: Landscaping and Parking Area Improvements
(1) Parkway landscaping, front/side yard landscaping, and install irrigation system (to
be maintained by Association);
(2) Repair or install as needed wrought iron fences along the front of all properties,
between buildings, and at side yards along McFadden Avenue.
(3) Resurfacing and re -striping of alleys and parking lots;
(4) Construct trash enclosures in parking lots (1 enclosure/2 buildings for 10 unit
buildings);
(5) Install fence along railroad tracks;
(b) Repair and fortify the. fence along the alley between Minnie Street and Standard
Avenue,
5.2 Conditions Precedent.
(a) Improvement Costs. Attached hereto as Exhibit "T" is a good faith estimate of
the cost to be incurred by the City and the Agency for the Publicly Funded Improvements,
itemized in accordance with the separate contracts by which the work will be bid and performed.
It shall be a condition for the benefit of the City and the Agency to their obligation to commence
to cause such work to be performed that the lowest responsible bid received by entity awarding
the contract(s) for such work not exceed the sum that equals one hundred ten percent (110%) of
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the estimate therefor. In the event that such bid exceeds such sum, City and Agency shall have
the right, after consultation with the Association, to modify the scope of work in whatever way is
reasonably required in order to obtain a bid within such limits as described in Exhibit "D". Not
withstanding the foregoing, the City and Agency hereby covenant and agree that the final
investment in the Publicly Funded Improvements shall be at least $1,500,000.
(b) Inspection Completed. It shall be a condition precedent for the benefit of the
City and the Agency to their obligation to commence to cause the Publicly Funded
Improvements to be made that 34 of the Properties subject to an OPA shall have been inspected
by Agency in accordance with Section 4.1 above, subject to scheduling requirements previously
specified in Sections 4.1 and 4.5 above. If an owner carulot meet this obligation, the Owner may
apply to the Agency's Executive Director for all extension, citing extenuating circumstances that
delays inspections being completed. It is up to the discretion of the Agency's Executive Director
to grant an extension for building inspections. If owner is not in compliance, within six (6)
months following Implementation Date, then owner may be subject to fines, to be determined by
the Association.
5.3 Consent and Comment. Owner hereby consents to the Publicly Funded
Improvements and hereby grants permission to Agency, City and their contractors, agents and
assigns to enter Owner's Property for the purpose of making the Publicly Funded Improvements.
Owner finther agrees to grant to Agency, City, and the Association such easements as each may
reasonably require for the Publicly Funded Improvements, including, without limitation, for the
installation and maintenance thereof. The Owner shall have the right to review engineering
plans for areas in front of, on, and behind the Property. Owner may request provisions be made
for future drainage system to be install by Owner if economically feasible.
5.4 Termination for Non -Performance. If the Publicly Funded Improvements have
not been commenced within two (2) years of the Implementation Date, Owner may terminate
this Agreement and be released from the CC&R's upon ninety (90) days notice to the City and
Agency. If the City and Agency fail to corm -hence the Publicly Funded Improvements after such
notice, and the Owner so chooses to terminate this Agreement, the City and Agency shall
consent to any necessary amendments to the CC&R's necessary to release owner therefrom.
6. FACADE AND COURTYARD IMPROVEMENT PROGRAM. As hereinafter more
particularly provided, the parties agree that, subject to the conditions set forth in Section 6.3
below, a "Facade and Courtyard Improvement Program" for the Properties will be implemented.
The parties hereby acknowledge that conceptual plans have been prepared for Facade and
Courtyard improvements to the Properties and that such plans are on file with the Agency. A
general description of the Facade and Courtyard improvements is attached hereto as Exhibit "G".
Work on the Facade and Courtyard Improvements shall commence not later than the first (1st)
anniversary of the Implementation Date and shall be completed not later than the third (3rd)
am-tiversary of the Implementation Date
6.1 Facade and Courtyard Improvement Loans. The cost of the Facade and
Courtyard Improvement Program will be funded in the form of conditional loans to each Owner
11
(the "Conditional Loan"). However, repayment of such loans, together with any accrued
interest, shall, with respect to each such Property, be forgiven if a Certificate of Compliance is
issued for such Property before the fifth (5'h) anniversary of the Implementation Date (subject to
the possible extension described in Section 4.6). The Conditional Loan shall accrue interest at
the rate of six percent (6%) per annum on the initial principal balance only from the Facade and
Courtyard hnprovement Date until forgiven or repaid. No payments will be required prior to the
Conditional Loan coming due as provide above. If a Certificate of Compliance'is not issued
within the time provided for herein, the Conditional Loan, together with accrued interest, shall
immediately become due and payable in full. The maximum principal anlormt of the promissory
note shall not exceed the budgeted amount set forth in Exhibit "L", unless otherwise agreed by
the Owner. Notwithstanding the foregoing, the Agency is not obligated to approve Facade and
Courtyard hnprovements for a Property in excess of such amount.
Owner's obligation to repay the Conditional Loan shall be set forth in a promissory note
secured by a deed of trust on each Property in the form of Exhibit "K", the lien of which deed of
trust shall be released within thirty (30) days by City and/or Agency as to any Property as soon
as either the Certificate of Compliance issues for that Property or the Conditional Loan is repaid
in a fonn substantially similar to that set forth. in Exhibit "M". Owner agrees to execute such
promissory note and deed of trust with respect to its Property and Agency is hereby authorized to
record that instrument in the Official Records. Owner shall have the right to prepay the
Conditional Loan at any time without penalty and thereby receive a release of the deed of trust.
City will furnish Owner a statement of the exact amount required to repay the Conditional Loan
with interest within ten (10) days of receipt of a written request by the Owner to provide such
information. The promissory note shall be a full recourse note. In the event of an involuntary
conveyance of the Property, the Owner shall remain fully liable for repayment of the promissory
note. The deed of trust securing the promissory note shall not contain a due on sale or transfer
clause, and shall be fully assumable.
Unless otherwise agreed by the City and the Agency, the Facade Improvement Program
shall be administered by the Agency. Agency will solicit bids for the Facade and Courtyard
Improvements for each property in the Agreement Area. Accordingly, the Conditional Loan for
each of Owner's Properties and the amount of the promissory note secured by the deed of trust
on that Property will be the amount bid for each property.
6.2 Conditions Precedent.
(a) Final Plans. It shall be a condition precedent for the benefit of all parties to their
obligations under the Facade and Courtyard Improvement Program that City and/or Agency and
the Association agree on the final design plans therefor. Once such agreement is reached, the
Agency and Association Board shall present those final plans to the membership of the
Association and recommend acceptance thereof by all of the owners of the Properties, including
Owner. If all of the owners of the Properties agree to such final plans, then work on the Facade
and Courtyard Improvements may proceed. If any owner does not agree to such final plans as to
that owner's building(s), then the Agency and Association shall work with such owner to find a
12
mutually acceptable alternative. If, after a reasonable effort, the parties cannot find a mutually
acceptable alternative, then the agreement of the Agency and Association shall prevail and the
subject owner hereby agrees to be bound thereby. Owner acknowledges and agrees that ceding
such authority to the Agency and Association, inasmuch as it will permit the Facade and
Courtyard Improvement Program to go forward, is in the community's best interest and,
therefore, Owner's best interest. No Owner shall be given any special considerations in the
offering of these improvements
(b) Facade and Courtyard Improvement_ Costs, Attached hereto as Exhibit "L" is
the budget established by City and/or Agency for the Facade and Courtyard Improvements.
Based upon the finally approved plan, the Agency shall solicit bids for such work, to be carried
out under contracts with the owner(s) of the property to be improved. In the event that the
lowest responsible bid received by the Agency for such work exceeds one hundred ten percent
(110%) of the budget for the work as set forth in Exhibit "L", the Agency shall have the right,
after consultation with, and approval by, with the .Association Board, to modify the scope of
work in whatever way is reasonably required in order to obtain a bid within such limits.
Notwithstanding the foregoing, the Agency hereby agrees that the minimum value of Facade and
Courtyard Improvements for the Parcel shall not be less than as set forth in Exhibit "L", and the
total of loans made hereunder shall not be, less than $710,000, assuming 44 properties participate.
(c) Condition of Property. The Agency shall not be obligated to offer a Fagade
Improvement Loan to the Owner if the Property fails to meet the standards set forth in Exhibit
"N" attached hereto.
(d) No Default. It shall be a condition precedent for the benefit of City and the
Agency to their obligation to cause the Facade and Courtyard Improvements to be made that the
owners of not more than thirty percent (30%) of the Properties subject to an OPA be in default
under their OPA's. If the City and Agency elect not to proceed, they shall notify the Owner in
writing, and Owner shall have the right to terininate this Agreement and be released from the
CC&R's. City and Agency shall provide all approvals as necessary to effectuate such
termination and release.
6.3 Construction of Improvements. The Facade and Courtyard Improvements shall
be carried out under a contract directly between the contractor and the Owner. It is understood
and agreed by the Owner, however, that all of the Facade and Courtyard Improvements in the
Agreement Area shall be carried out by one general contractor selected from those submitting
qualifying bids. The contractor shall be selected by a majority vote of all owners participating in
the Facade and Courtyard Improvement program, with one vote cast for each parcel covered by
an OPA. Owner hereby agrees to enter into a contract or contracts with the selected contractor(s)
to make the Facade and Courtyard Improvements on the Owner's property in the form attached
hereto as Exhibit R, and hereby grants pennission to the contractors, agents and assigns to enter
Owner's Property for the purpose of making the Facade and Courtyard Improvements. Owner
also agrees to work with City and/or Agency and the Association in informing Owner's tenants
about the Facade and Courtyard Improvements and to obtain from such tenants any permission
or cooperation that may be required from such tenants so as to permit the Facade and Courtyard
Improvements to be made on a timely and cost-effective basis.
13
7. C,C&R's. Promptly upon satisfaction of the condition set forth in Section 2.1, Owner
hereby authorizes Agency to cause the CC&R's attached to this OPA as Exhibit "E" to be
recorded against Owner's Property in the Official Records. The date of such recordation shall
hereinafter be referred to as the "Implementation Date."
8. APARTMENT MANAGEMENT COORDINATION.
8.1 Manager Training. Owner hereby agrees to require any apartment manager for
Owner's Property to have an Orange County Apartment Manager's Association Property
Management Training Certificate for managing in a "high -risk" envirorn-nent or equivalent
certification and/or experience and training approved by Agency and the Association Board. For
property managers in Owner's employ as of the date of this OPA, such managers shall come into
compliance with this requirement within one (1) year after the Implementation Date or such
longer period as may be necessary in the event that the training required has not been reasonably
available by such date. For property managers hired by Owner after the date of this OPA, such
managers shall come into compliance with this requirement within one (1) year of the date of
commencement of their employment or such longer period as may be necessary in the event that
the training required has not been reasonably available by such date. The certification
requirement set forth above shall be subject to the condition that the cost to obtain such
certification not exceed Thirty -Five Dollars ($35.00), as such sum shall be reasonably increased
from time to time by the Agency's Executive Director, with the consent of the Association
Board, to reflect any increases charged by the training organizations.
8.2 Tenant Screening. Upon adoption by the Association's of the tenant screening
procedures and standards called for in Section 4.7 of the CC&R's, Owner hereby agrees that all
prospective tenants who make application for occupancy in Owner's Property shall be screened
through such procedures and methods.
9. INDEMNIFICATION AND INSURANCE
9.1 Indemnification_. City and Agency hereby agree to defend, indemnify and hold
harmless Owner and his or her officers, representatives, agents and employees from and against
any and all liability, damages, costs, losses, claims and expenses, however caused, resulting
directly or indirectly from or connected with City and Agency's perforinnance of this OPA,
including, but not limited to, such liability, cost, damage, loss, claim or expense arising from
(i) the death of and/or injury to any agent, contractor, subcontractor, or employees of Owner,
Agency or City; or (ii) damage to the property of Owner, any contractor, subcontractor, Agency
or City; except where such liability, damage, cost, loss, claim or expense is caused solely by the
negligent or wrongful acts of Owner or any of his or her agents or employees.
14
Owner hereby agrees to defend, indemnify and hold harmless Agency, City and their
officers, representatives, agents and employees from and against any and all liability, damages,
costs, losses, claims and expenses, however caused, resulting directly or indirectly from or
connected with Owner's performance of this OPA and/or the operation and maintenance of
Owner's Property, including, but not limited to, such liability, cost, damage, loss, claim or
expense arising from (i) the death of and/or injury to any agent, contractor, subcontractor, or
employees of Owner, Agency or City; or (ii) damage to the property of Owner, any contractor,
subcontractor, Agency or City; except where such liability, damage, cost, loss, claim or expense
is caused solely by the negligent or wrongful acts of Agency, City or any of their agents or
employees.
9.2 Insurance Required. In addition to the provisions of Section 9.1, Owner shall maintain
in force until the later of (a) issuance of a Certificate of Compliance, (b) completion of the
Publicly Funded Irnprovenrents, or (c) release of the deed of trust securing the Conditional Loan,
for such Property, a policy of general liability insurance in which Agency, City and their officers,
agents, representatives and employees are named as additional insureds. The policy shall
indemnify Agency, City and their officers, representatives, agents and employees, while acting
within the scope of their duties under this OPA, against any and all claims arising -out of or in
compaction with perfonrance of Owner's obligations under this OPA. The policy shall provide
coverage in an amount of not less than $1 million per occurrence, combined single limit, written
on an occurrence fonn. Such policy shall specifically provide that any other insurance coverage
that may be applicable to the loss shall be deemed excess coverage and that Owner's insurance
shall be primary.
No later than the Implementation Date, Owner shall furnish to Agency certificate of
insurance and "additional insured endorsements," in a foran substantially similar to that attached
as Exhibit "O".
10. COMPLIANCE WITH LAWS.
10.1 Local, State and Federal Laws. Owner shall carry out performance of its
obligations under this OPA in compliance with all applicable laws, including all applicable state
and federal labor standards.
10.2 Non -Discrimination. Owner for itself and its successors and assigns agrees that
in connection with this OPA, Owner will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, marital status, color, or national origin.
Owner further agrees that all rentals shall be open to all regardless of race, sex, marital
status, color, religion, national origin, ancestry or age, and that all rental agreements shall contain
the applicable provisions of Health and Safety Code Section 33435.
11. DEFAULT. Failure or delay by either party hereto to perform any material covenant or
provision of this OPA that is to be observed or performed by such party within the time provided
herein constitutes a default under this OPA. In such event, the injured party shall give written
notice of default to the party in default, specifying the default complained of by the injured party.
15
Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it
change the time of default. The defaulting party shall immediately commence to cure such
default and shall complete such cure within thirty (30) days after the date of the notice unless the
default requires an expenditure of over $10,000, or issuance of a building permit, then the
defaulting party shall complete such cure within one hundred and eighty days (ISO) after the date
of the notice.
Except as expressly provided in this OPA, any failure or delay by either party in asserting
any of its rights or remedies as to any default shall not operate as a waiver of any default or of
any such rights or remedies or deprive either such party of its right to institute and maintain any
actions or proceedings which it may deem necessary to protect, assert or enforce any such rights
or remedies.
12. ATTORNEYS' FEES.
hi the event that any legal action is instituted by a party hereto to enforce the provisions
of this OPA, the parties agree that the non -prevailing party shall be responsible for, and shall pay
all costs and attorneys' fees incurred by the prevailing party in enforcing this OPA.
13. LEGAL ACTIONS.
13.1 Institution of Legal Actions. In addition to any other rights or remedies, a party
hereto may institute legal action to cure, correct or remedy any default by another party, to
recover damages for any such default, or to obtain any other remedy consistent with the purpose
of this OPA. Such Iegal actions must be instituted in the appropriate court in the County of
Orange, California.
13.2 Applicable Law. The laws of the State of California shall govern the
interpretation and enforcement of this OPA.
13.3 Acceptance of Service of Process. lam the event that any legal action is
commenced by Owner against Agency or City, service of process on Agency shall be made by
personal service upon the Secretary of the Agency, and on City by personal service upon the City
Clerk, or in such other manner as may be provided by applicable law. In the event that any legal
action is commenced by Agency against Owner, service of process shall be made by personal
service upon Owner or in such other manner as may be provided by applicable law.
14. RIGHTS AND REMEDIES CUMULATIVE.
Except with respect to any rights and remedies expressly declared to be exclusive in this
OPA, the rights and remedies of the parties hereto are cumulative, and the exercise by a party of
one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by
another party.
16
15. NOTICES.
Any notices, requests sent or approvals given under this OPA from one party to the other
shall be in writing and may be personally delivered or deposited with the United States Postal
Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the
following addresses:
To City: The City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92702
Attention: Clerk of the Council
To Agency: Community Redevelopment Agency
of the City of Santa Ana
20 Civic Center Plaza.
Santa Ana, California 92702
Attention: Secretary
To Owner: Valerie R. Humphries
CIO Joward James Co.
3520 Cadillac Ave., Suite C
Costa Mesa, CA 92626
Any written notice, request or approval shall be deemed received immediately if personally
delivered and on the third day from the date it is postmarked if delivered by registered or
certified mail.
16. ASSIGNMENT.
Owner's obligations of this Agreement run with the land and shall be assigned by Owner
and assumed by the buyer pursuant to a voluntary sale or transfer of the Property in the form set
forth as Exhibit "S".
17. RECORDATION.
Owner agrees that pursuant to this OPA, the Memorandum of Agreement shall be
recorded against Owner's Property in the Official Records, a copy of which is attached hereto as
Exhibit "P". Such recordation shall serve as actual or constructive notice to all persons of this
OPA.
If the Owner is in compliance with the OPA, then the Agency shall remove this
Memorandum of Agreement from the Official Records upon issuance of a Certificate of
Compliance and satisfaction of the initial income certification provisions of section 3.5 and the
17
new rental agreement provisions of section 3.6. A sample of the Release Form is provided in
Exhibit "Q"
18. ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS.
This OPA may be executed in duplicate originals, each of which shall be deemed an
original for all purposes.
This OPA integrates all of the terms and conditions contained herein or incidental hereto,
and supersedes all negotiations or previous agreements, oral or written, between the parties with
respect to all or any part of the subject matter hereof.
All waivers of the provisions of this OPA must be in writing and signed by the party to be
charged with the waiver, and all amendments hereto must be in writing and signed by the
appropriate representatives of City for itself and on behalf of the Agency, and Owner. No waiver
or amendment shall be effective unless consented to in writing by a 2l3 vote of the Association
Board:
IN WITNESS WHEREOF, the parties hereto have executed this OPA as of the date set
forth above.
[Signatures Provided on Next Page]
is
ATTEST:
blv
John Reekstin
Agency Secretary
ATTEST:
Patricia E. Healy
Clerk of the Council
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney and
Agency General Counsel
By ' — C
Lisa E. Storck
Assistant Counsel
19
"Agency"
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA
By: A/�__
Jo1P. Reekstin
Executive Director
"City"
CITY OF SATT- ANA
By: 1-�---�
David N. earn
City Manager
"OWNER"
ra&e�/
Valerie R. Humplu-ies
EXHIBIT A: Site Map of Cornerstone Village
Improvement Project Area
� I
GRANT STREET
805
810
815
816
WAKENAM AVENUE
828 825
904 835
ALLEY
924 923
92B 927
032 931
936 935
940 939
w �
W1002 1001
d 1005 1005 a
1 o w 1009 cc
Q 1014 w 1013CC
1018 z 1017
_Z �
1022 102 1
1026 1025
1030 1029
1102 1101
1106 1105. }
111fl 1109Yf
1114 1113
1118 1117
1122 1121
1126 N25
MC FADDEN STREET
Exhibit A: 1 of 1
EXHIBIT B: List of Addresses of the Properties
The following addresses on are all located on South Minnie ,Street in Santa Ana, CA.
805
810
815
816
825
828
835
904
923
924
927
928
931
932
935
936
939
940
1001
1002
1005
1006
1009
1010
1013
1014
1017
1018
1021
1022
1025
1026
1029
1030
1101
1102
1105
1106
1109
1110
1113
1114
1117
1118
1121
1122
1125
1126
Exhibit B: 1 of 1
EXHIBIT C: Description of Owner's Property
Street Address: 1105 S. Minnie Street, Santa Ana, CA
Legal Property Description:
The land referred to herein is situated in the State of California, County of Orange, City
of Santa Ana, as is described. as follows:
LOT 35 OF TRACT NO. 2437, AS SHOWN ON A MAP RECORDED IN BOOK 109,
PAGES 39 AND 40 OF MISCELLANEOUS MAPS OF ORANGE COUNTY,
CALIFORNIA, TOGETHER WITH THAT PORTION OF LOT B OF SAID TRACT
LYING BETWEEN THE EASTERLY PROLONGATION OF THE NORTHERLY
LINE OF SAID LOT 35 AND EASTERLY PROLONGATION OF THE SOUTHERLY
LINE OF SAID LOT 36.
Owner(s) of Record: Valerie R. Humphries
THIS EXHIBIT WILL REFLECT THE INFORMATION
FOR EACH INDIVIDUAL PROPERTY.
Exhibit C: 1 of 1
EXHIBIT D: Description of Agency/City Improvements
GUIDELINES FOR REVISIONS OF PUBLICLY FUNDED IMPROVEMENT PLANS
If actual bids for the Agency/City Improvements exceed estimated costs listed in Exhibit
"J" by 110% then the Agency may make changes in the project to reduce costs as provided
for in Section (5.2). Guidelines for modifications to Agency/City Improvements to reduce
costs are as follows:
1. Material substitutions that would not affect quality of construction or design.
2. Material substitutions that would result in minimum change in type of constriction
or design.
3. Reduction in size of design elements such as size of monuments or size of plant
material used.
4. Reduction in quantity of design element such as amount of textured and colored
pavement, number of plants, etc.
5. Changes in design elements beyond those noted above may be done only with
approval of Association Board of Directors.
SUMMARY OF AGENCY/CITY IMPROVEMENTS
Street Improvements
Minnie Street from McFadden Avenue to Wakeham Avenue to be reconfigured as a
one way street traveling in a northern direction.
(a) Reconfigured street and parking to be constructed within existing street width.
(b) Reconfigured street and parking will be cold -planed (ground) and overlaid with
approximately one inch of asphalt concrete. Any holes or irregularities will be
repaired before resurfacing. A short segment (approximately 40 feet) near the
alley will be completely removed and reconstructed with 3 inches of asphalt
concrete over 6 inches of aggregate base.
(c) About eighty-five (85) sixty (60) degree angle parking spaces to be provided and
striped on alternating sides on the street.
(d) Travel lane on street to "meander" from side to side, alternating with angle
parking. (See attached drawing for configuration.)
(e) Travel lane to be 20 feet wide.
(f) Additional landscaped areas will be provided where the meandering street curves,
and at two locations within two of the angle parking areas. Paving will change at
the meandering street curves from asphalt to stamped concrete or other materials
that creates a change in color and texture.
Exhibit D: 1 of 5
2. Minnie Street from Wakeham Avenue to Grant Street; Grant Street from Minnie Street
to the alley; and Wakeham Avenue from Minnie Street to the alley will be cold -planed
(ground) and overlaid.
3. Entrance monuments and signage at Minnie Street. (See attached illustration,)
(a) Vehicle travel lane will narrow for one way traffic at entrance to Minnie Street
from McFadden Avenue.
(b) Pavement at entrance from McFadden will change from asphalt to stamped
concrete or other material for at least 20 feet to create change in color and texture.
(c) A monument sign with letters spelling "Cornerstone Village" will be constructed
on both sides of the entrance onto Minnie Street. Materials and construction shall
be designed to be resistant to vandalism.
(d) A pergola will be constructed over each sidewalk/pedestrian entrance from
McFadden Avenue to Minnie Street. Materials and construction shall be designed
to be resistant to vandalism.
.(e) Landscaping in front of the monument sign and beside pergola will be provided.
(f) Lighting will be provided for monuments and signs.
4. Signage at entrance to Project at Wakeham Avenue and Grant Street (at alley) to be
constructed in center island.
(a) Pavement on both sides of center island to change from asphalt to stamped
concrete or other material that creates a change in color and texture.
(b) Sign to be provided with the words "Cornerstone Village" at each location.
5. Install new street lighting per City codes. Lighting to be designed to enhance character
of street and be low maintenance.
6. Relocate mailboxes along Minnie Street.
Landscape Improvements
1. Landscaping to be provided between street and apartment buildings.
(a) Existing street trees to remain, if feasible, and trimmed as needed.
(b) About 70 new street trees will be planted to infill line of existing street trees.
(c) Existing wrought iron fences along sidewalk to be repaired and/or repainted as
needed. If fences are damaged beyond repair and/or are not considered
compatible with design theme by landscape architect, then fences will be replaced.
For properties that do not have fences, new fences will be installed. New fences
will include gated access for maintenance, and when feasible, gates may be added
to existing front yard fences.
(d) Landscape plan for front yard of buildings will be selected by Owner from a series
of designs provided by landscape architect. Plants will be predominantly low
maintenance, draught tolerant plants. Owners of paired buildings must agree upon
common landscape plan. If agreements cannot be reached, then Association
Exhibit D: 2 of 5
Board will make selection. Landscaping which may include a variety of shrubs,
ground covers, and lawn areas will be installed by City. About 70 new street trees
will be planted to in -fill line of existing street trees.
(e) Complete irrigation system with separate electrical and water meters for all
landscaped areas will be provided. Valves, meter timers, and other components
will be enclosed in vandal resistant housing. The irrigation system and all its
components will be maintained by the Association and any expenses will be paid
by the Association.
2. Landscaping along McFadden Street
(a) Landscape side yards of buildings (1125 and 1126 Minnie Street) adjacent to
McFadden Street.
(b) Replace fence along MaFFadden Street as needed.
(c) Improve parkways as needed.
(d) Extend Association irrigation system to provide for landscaped areas.
3. Improvement for area between buildings (not courtyards) will be .completed.
(a) Fence and gardener's gate into area to be provided.
(b) Surface materials (to be determined) to be low maintenance landscaping or other
material to be designated by landscape architect and mutually agreed upon by
Association, adjacent Owners and City. If no agreement can be reached,
Association with the concurrence by the City will determine materials to be used.
Parking Area Improvements
1. Resurface existing parking areas and alleys by cold -planing (grinding) and overlaying
with approximately one inch of asphalt concrete within Project Area boundaries.
(a) Repair holes and smooth surface by grinding prior to applying overlay.
(b) Stripe or re -stripe parking spaces.
(c) Number parking spaces if requested by owner.
(d) Modify parking pavement levels by grinding as needed to ensure that the overlay
does not negatively impact existing drainage in apartment courtyards.
(e) Specific areas where the pavement has failed will be completely removed and
reconstructed with 3 inches of asphalt concrete over 6 inches of aggregate base.
2. One (1) trash enclosure will be constructed per pair of buildings of 10 or 12 units each
or a single building of over 12 units. Protective ballards will be provided at comers of
trash enclosures. Construction of enclosure to meet City code.
3. When feasible, landscape to be provided along fences and entrances to parking areas.
4. Repair and refinish existing fences and gates at end of parking areas along McFadden
Street and fence between parking areas in the west parking lot.
5. Install 8-foot wrought iron fence along railroad tracks in east parking area. (Note, if an
agreement can be reached with the railroad, then additional easements will be acquired
for landscaping. Landscaping by railroad would consist of thorny plants to discourage
climbing.
Exhibit D: 3 of 5
CORNERSTONE VILLAGE IMPROVEMENTS PRELIMINARY MATERIALS LIST
ITEM
No.
ITEM
DESCRIPTION
UNIT OF
MEASURE
ESTIMATED
QUANITITY
1
COLD PLANE TOP 2" AC
SF
209400
209400
2
PLACE PAVEMENT REINFORCING FABRIC
SY
23300
23300
3
CONSTRUCT 2" AC OVERLAY
TON
2530
2530
4
CONSTRUCT 3" AC CONCRETE
TON
750
1910
5
CONSTRUCT 6" AGGREGATE BASE
CY
760
1950
6
CONST. TYPE B-1 CURB PER STD. No, 1101
LF
100
100
7
CONST. TYPE A-2-8 C&G PER STD. No. 1101
LF
860
860
8
CONST. 4" PLASTIC DRAIN PIPE
LF
820
820
9
CONST. CROSS GUTTER PER STD. No. 1109
SF
500
500
10
CONST. RIBBON GUTTER PER DETAIL
LF
200
200
11
CONST. DRIVEWAY PER STD. No. 1112
EA
2500
5
12
CONST. ACCESS RAMP PER STD. No. 1122
EA
800
5
13
ENHANCED PAVING
SF
13700
13700
14
INSTALL 4" WHITE STRIPING (PKG. STALLS)
LF
14040
18000
15
INSTALL PAVEMENT MARKING
EA
5
5
16
INSTALL SIGN
EA
8
8
17
RELOCATE SIGN
EA
5
5
18
REMOVE CURB AND GUTTER
LF
6
300
19
REMOVE CROSS GUTTER
SF
14
500
20
REMOVE CONCRETE DRIVEWAY
SF
43
1730
21
REMOVE CONCRETE RIBBON GUTTER
LF
76
340
22
REMOVE AC & BASE
CY
4000
4000
23
CONSTRUCT 8-FOOT MASONRY BLOCK WALL
SF
1590
12720
24
CONSTRUCT TRASH ENCLOSURE PER DETAIL
EA
25
35
25
IRRIGATION
SF
1
69000
26
LANDSCAPING
SF
1
69000
27
INSTALL ENTRANCE DETAILS (MACFADDEN)
EA
2
2
28
INSTALL ENTRANCE DETAILS WAKEHAM & GRANT
EA
2
2
29
REPAIR/REFINISH EXISTING FENCES
LF
3550
3550
30
AREA LIGHTING
LS
1
1
31
PARKETTE SEAT]NGIPAVINGIFENCE/TRASH RECP.)
EA
3
3
32
CONTRACTOR MOBILIZATION
LS
1
1
Exhibit D: 4 of 5
ILLUSTRATIONS
Fir r
ILLUSTRATION OF ENTRANCE INTO "CORNERSTONE VILLAGE" FROM MCFADDEN AVENUE.
Exhibit D: 5 of 5
EXHIBIT E: CC&R Agreement
(Declaration of Conditions, Covenants, Restrictions And Easements)
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: }
Cornerstone Village Owners' Association }
CIO Community Redevelopment Agency )
of the City of Santa Ana )
20 Civic Center Plaza )
Santa Ana, California 92701 )
Attn: Agency Secretary )
This document exempt from recording fee per
Government Code § 27383.
DECLARATION OF CONDITIONS, COVENANTS,
RESTRICTIONS AND EASEMENTS
This DECLARATION OF CONDITIONS, COVENANTS, RESTRICTIONS AND
EASEMENTS (the "Declaration") is hereby made by the owners (the "Owners") of the parcels
of real property located in the City of Santa Ana, County of Orange, State of California, which
are legally described in Exhibit "A" attached hereto and incorporated herein (the "Parcels").
RECITALS
A. . Each of the Parcels is currently improved with one or more multifamily apartment
building(s) and appurtenant parking facilities. The Parcels are located within an area of Santa
Ana, California which is bounded by McFadden Avenue to the south, the property line between
parking lots to the west, Grant Street to the north, and the railroad property line to the east.
B. Owners intend to establish by this Declaration a plan for the individual ownership
of the real property consisting of the area contained in each of the Parcels, and the operation of
certain portions of the Parcels (the "Common Improvement Areas") by the mutual benefit
nonprofit corporation Owner's association (the "Association") which is created pursuant to this
Declaration.
NOW, THEREFORE, Owners hereby declare that all of the real property described
above and all improvements thereon and such additions as may hereafter be made subject to this
Declaration shall be held, transferred, sold., conveyed, hypothecated, mortgaged, encumbered,
leased, rented, used, occupied, maintained, altered and improved subject to the following
protective limitations, restrictions, covenants, conditions, reservations, liens and charges and
EXHIBIT E: Page I of 24
equitable servitudes, all of which are declared and agreed to be in furtherance of a plan for the
ownership and management of such real property, and are established and agreed upon for the
purpose of enhancing and protecting the value, desirability and attractiveness of such real
property, and every part thereof. All of such limitations, covenants, conditions, restrictions,
reservations, liens and charges and equitable servitudes shall run with the real property and shall
be binding on all parties having or acquiring any right, title or interest in the described real
property, or any part thereof, whether as sole owners, joint owners, lessees, tenants, occupants, or
otherwise, and they shall inure to the benefit of every portion of such property and shall be for
the benefit of each owner of any portion of said real property, or any interest therein, and shall.
inure to the benefit of and be binding upon each successor in interest of each Owner, and all of
which are imposed upon the real property described above and every portion thereof, is a
servitude in favor of each and every portion thereof as the dominant tenement.
I. DEFINITIONS
"Adjusted Income" means the adjusted income of a person (together with the adjusted
income of all persons who intend to reside with such person in one residential unit) as calculated
in the manner prescribed cinder Section 142(d)(2)(B) of the Code.
"Affordable Rent" means monthly rent (including the Utility Allowance, and excluding
any supplemental rental assistance from the ,State of California, the federal government or any
other public agency) not in excess of thirty percent (30%) of one -twelfth (1I12th) of sixty percent
(60%) of the Median Income for the Area, adjusted for family size assuming a three person
household for a one bedroom apartment and a five person household for a two bedroom
apartment. (City to provide an updated schedule of rents to Association Chairperson when
revised by HUD. By example, the current rent limit for a family of three is $923 for a one
bedroom apartment and $1,107 for a family of five in a two bedroom apartment.)
"Annexation Parcels" means those parcels which are described on the Legal Description
of Annexation Parcels which is. attached hereto. as Exhibit "C" and incorporated herein.
"Area" means the Orange County, California Metropolitan Statistical Area.
"Association"means the Cornerstone Village Owners' Association, a California
nonprofit mutual benefit corporation, its successors and assigns, in which all Owners shall have a
membership interest as more particularly described herein, provided that membership be limited
to Owners.
"Board" or "Board of Directors" may be used interchangeably herein and shall mean
the Board of Directors of the Association as the same may, from time to time, be constituted.
"Building" means a multifamily apartment building or buildings on a Parcel.
EXHIBIT E: Page 2 of 24
"Bylaws" means the Bylaws adopted by the Association, including any amendments or
additions thereto.
"City" means the City of Santa Ana, a California charter city and municipal corporation.
"Code" means the Internal Revenue Code of 1986, as amended, including the
Regulations promulgated thereunder or under any predecessor statute.
"Common Area Improvements" shall mean physical improvements to real property
which improvements are owned, maintained, and operated by the Association.
"Common Improvement Areas" shall mean certain improvements to real property and
portions of legally separate real properties specifically designated for common use by all Owners,
tenants, occupants and residents, as defined herein by description and/or graphic exhibit on
Exhibit "B" attached and incorporated hereto.
"County" means the County of Orange, California.
"Declaration " means this Declaration of Conditions, Covenants, Restrictions and
Easements, together with any amendments, supplements or modifications hereto,
"Deed of Trust" shall mean and be synonymous with the word "mortgage," and the same
may be used interchangeably with the same meaning; and likewise, the word "trustor" shall be
synonymous with the word "mortgagor," and the word "beneficiary" shall be synonymous with
the word "mortgagee,"
"Low Income Tenant" means a person or family with Adjusted Income, determined as of
the date of initial income certification for existing tenant and for new tenants occupancy by
reference to the income certification process described in Section [4.4], that does not exceed
eighty percent (80%) of the Median Income for the Area, adjusted for family size. (Note: In
June 1999, eighty percent (80%) of the Median Income for a family of four is $54,640 per year.)
"Median Income far the Area " means the median income for the Area as determined
and published annually by the Secretary of Housing and Urban Development under Section 8 of
the United States Housing Act of 1937, as amended, or if programs under Section 8 are
terminated, median income for the Area determined under the method used by the Secretary prior
to such termination. (Note: This information can be obtained from the City of Santa Ana
Housing Department or the United States Department of Housing and Urban Development, 611
West 6th Street, Los Angeles, CA 90017.)
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"Mortgage" means the conveyance of any portion of the project to secure the
performance of an obligation, which conveyance shall be void upon the due performance of said
obligation.
"Mortgagee" means a lender, whether a person or entity, to whom a mortgage is made;
"mortgagor" means an Owner who mortgages his or its property to another, i.e., the maker of a
mortgage.
"Nu isan ce ".means anything which is injurious to health, or is indecent or offensive to the
senses, or an obstruction to the free use of property, so as to interfere with the comfortable
enjoyment of life or property, within the meaning of California Civil Code Section 3479 and
other applicable law.
"Owners" shall mean the current owners of the Parcels and their successors and assigns,
but excluding those having such interest merely as security for the performance of an obligation.
"Parcel" shall mean the boundaries of each legal parcel as designated by the county
assessor and which parcels are a part of the Project.
"Person " means a natural person, corporation, partnership, association, firm or other
entity as the context may require.
"Project" includes those parcels of property currently improved with apartment
building(s) and appurtenant parking facilities, which are located within an area of Santa Ana,
California which is bounded by McFadden Avenue to the south, the property line between
parking lots to the west, Grant Street to the north, and the railroad property line to the east.
"Rules and Regulations" means those riles and regulations adopted by the Association
or its Board, including any amendments or additions thereto.
"Unit" shall mean and refer to those individual dwelling knits in the Buildings in the
Project.
"Utility Allowance" means a reasonable allowance for utilities, as defined by the United
States Department of Housing and Urban Development for the Federal Section 8 program, and
adopted from time to time by the Housing Authority of the City of Santa Ana. The allowance
includes garbage collection, sewer, water; electricity, gas and other heating, cooking and
refrigeration fuels, but excludes telephone or cable television service,
H. FORMATION OF ASSOCIATION
EXHIBIT E: Page 4 of 24
2.1 Formation. It is the intention of the Owners to form the Association and, upon
such formation, every person or entity who is a record -owner of a fee or undivided interest in any
Parcel shall, upon such formation, be a member of the Association and shall remain a member
thereof until such time as his ownership ceases for any reason, at which time his membership in
the Association shall automatically cease. ,Successors in interest and assigns shall automatically,
upon becoming record owners, be a member of the Association. The common business, affairs
and management of the Project shall be conducted by the Association as provided in this
Declaration and the Bylaws.
2.2 Controlling Effect of Declaration. The Owners covenant and agree that the
administration of the Project shall be in accordance with the provisions of this Declaration and
the Bylaws. In the event that any of the matters in the Bylaws are in any way inconsistent with
any matters in this Declaration, then any such matters in this Declaration shall prevail.
2.3 Owner Compliance with Declaration and Association Documents. Each
Owner, tenant or occupant of any portion of a Building within the Project shall comply with the
provisions of this Declaration, the Bylaws, riles and regulations and resolutions of the
Association, all as lawfully amended from time to time; and failure to comply with any such
provisions, decisions or resolutions shall be grounds for an action to recover sums due for
damages or for injunctive relief.
2.4 Transfer of Association Membership. The membership in the Association held
by any Owner shall not be transferred, pledged or alienated in any way, except that such
membership may be (i) pledged to a lending institution as additional security for a loan which is
also secured by the Building or Parcel; or (ii) transferred upon the transfer of such ownership.
Upon the lease, sale or other transfer of a Building or Parcel, either the Owner who transfers the
Building and/or Parcel or the transferee shall promptly notify the Association in writing of the
name and address of the transferee, the nature of the transfer and the Parcels and Buildings
involved, as well as such other information relative to the transfer and the transferee as the
Association may reasonably request. The rights of Owners in this Declaration may be assigned
by Owners to any successor to all or any part of Owners' interest in the Project by an express
assignment incorporated in a recorded deed transferring such interest to such successor. An
executed copy of the instrument'of transfer shall accompany said notice. All transfers shall be
subject to this paragraph, including, but not limited to, transfers occurring by reason of sale,
lease, gift, devise or inheritance. Any attempt to make a prohibited transfer is void and will not
be reflected upon the books and records of the Association. In the event the Owner of any Parcel
or Building shall fail or refuse to transfer the membership registered in his name to the transferee
of such Parcel or Building, the Association shall have the right to record the transfer upon the
boobs of the Association and issue a new certificate to the transferee, and thereupon the old
certificate outstanding in the name of transferor shall be null and void as though the same had .
been surrendered. A membership in the Association shall survive the death of a member and
may be transferred in the manner herein provided.
EXHIBIT E: Page 5 of 24
2.5 Voting Rights. The Association shall have one (1) class of voting membership
consisting of all Owners who shall be entitled to one (1) vote for each Parcel owned. When more
than one person holds an interest in any Parcel, the vote for such Parcel shall be exercised as they
among themselves determine; but in no event shall more than (1) vote be cast with respect to any
Parcel. If the owners of a Parcel cannot agree among themselves as to how such voting power
will be exercised, and such Owners attempt to cast more than one vote for a Parcel, then no votes
shall be counted for such Parcel.
2.6 Powers of Association. The Association shall have the following powers, rights
and duties in addition to those provided elsewhere in this Declaration and those adopted in its
Bylaws and rules and regulations:
(a) To enforce the provisions of this Declaration.
(b) To pay taxes, special assessments and other liabilities which are imposed
upon the Association.
(c) To levy Fines, assessments, and to perfect and enforce liens as hereinafter
provided.
(d) To make reasonable rules and regulations for the operation and use of the
Project and to amend them from time to time.
(e) To accept and acquire real property and personal property, and to maintain
and make available such real and personal property for use by the Owners and the tenants of the
Units within the Project.
2.7 Consent of Association. Whenever this Declaration or the Bylaws require the
approval or consent of the Association, said approval or consent shall mean the written approval
of the Board unless otherwise provided by this Declaration or the Bylaws.
2.8. Assessments. Each Owner shall be subject to the following assessments in
amounts to be determined by the Board:
(a) Regular monthly maintenance assessments equal to the Owner's
assessment share of the actual or estimated cost of all maintenance; repairs; taxes to the Common
Improvement Areas, if any; insurance; utilities for Common Improvement Areas; and other
common expenses for the Common Area Improvements for which the Association is responsible,
as declared within this Declaration, or as determined by the Association and outlined in the
Bylaws.
EXHIBIT E: Page 6 of 24
(b) Adequate reserves for replacement, in accordance with applicable state
law, whether by capital contribution or otherwise, which reserves shall be amortized and
collected on a monthly basis, and special assessments for capital expenditures or other purposes
all on the same basis as for regular assessments, provided that in any fiscal year the Board may
not, without the vote or written consent of a majority of the Owners, levy special assessments to
defray costs of any action or undertaking on behalf of the Association which, in the aggregate,
exceed fifteen percent (15%) of the budgeted gross expenses of the Association for that fiscal
year.
(c) Charges, payments, fines, penalties and such other sums as become
payable under this Declaration or the Bylaws. The provisions of this Section 2.8 shall not apply
to nor limit the right of the Board to levy and collect the sums specified herein as special
assessments against an Owner as a remedy, or to reimburse the Association for costs incurred in
bringing the Owner or his parcel of land and/or structure into compliance with this Declaration or
the Bylaws.
2.9 Amount of Assessments. Each Owner's share ("assessment share") in the
common expenses of the Project and of the Association shall be determined by the Association
on a per Unit basis based upon the number of bedrooms and/or size of each Unit; provided,
however, that the assessment formula may be altered or amended by the action of the Board of
Directors.
2.10 Examination of Association Records. Owners shall have the right to reasonably
examine the books and records of the Association during normal business hours.
III. USE RESTRICTIONS
The Parcels, Buildings and Common Improvement Areas shall be occupied and used as follows:
3.1 Low -Income Tenants at Affordable Rent. Owner covenants and agrees to rent
all of the dwelling units in Owner's Property to Low -Income Tenants at Affordable Rent.
(a) Term. The covenant set forth in this Section 3.1 shall commence on the Date that
these OCRs are recorded for the subject Property and shall terminate with respect to such
Property on the date that is the earlier of: (a) the fifteenth (15th) anniversary of the date that
Agency issues and records a Certificate of Compliance for the each Property pursuant .to
Section 5.2 or 5.4 of the OPA concerning the Property, or (b) the thirtieth (30th) anniversary of
the Date of recordation of these CC&Rs.
(b) Increase in Income. For purposes of satisfying the obligation set forth in
Section 3.1, a person or persons who at the commencement of its occupancy qualified as a Low -
EXHIBIT B; Page 7 of 24
Income Tenant shall continue to be treated as though they were a Low -Income Tenant even if
such person's or family's income later rises to a level that exceeds that limit.
(e) Initial Income Certification. Immediately prior to the occupancy of each unit by
a new tenant after the effective date of these declarations, Owner shall obtain, as outlined in the
OPA for the Property current income certification statements for the person or persons who will
occupy the unit. Owner shall make a good faith effort to verify each income certification
statement provided by an applicant for tenancy or by a tenant by taking one or more of the
following steps as part of the verification process: (a) obtain a pay stub for the most recent pay
period, (b) obtain an income tax return for the most recent tax year, (c) conduct a TRW credit or
similar search, (d) obtain income verification from the applicant's or tenant's current employer,
(e) obtain an income verification form from the Social Security Administration and/or the
California Department of Social Services if the applicant receives assistance from either of such
agencies, or (f) if the applicant is unemployed and/or has no such tax return, obtain another form
of independent verification. Owner shall provide a copy of each such income certification
statement to the City within one month of tenant occupancy along with a statement identifying
the rent being charged for occupancy. Owner shall maintain a tenant file with any necessary
background information regarding tenant certification as well as other information used for the
certification form. Information shall be made available to the City upon request. City shall
maintain list of tenants and current rent levels as provided by Owner.
(d) Form of Lease. The form of lease or rental agreement for each rental unit, shall
be agreed upon by the Association Board of Directors Owner agrees that all tenant lease
agreements must contain a non-discrimination clause and conform with State and Federal laws
regarding the provision of fair housing. Owner further agrees that all prospective tenants will be
notified that Owner has relied on the income certification supplied by the tenant in. determining
income -qualification for occupancy, and that any material misstatement in such certification will
be cause for immediate termination of such lease or rental agreement.
(e) Annual Report. Owner acknowledges that Agency, pursuant to Health and
Safety Code Section 33418, is required to (a) monitor, on an on -going basis, any Agency
program for housing affordable to persons and families of low or moderate income, and (b) as
part of that monitoring, require owners and/or managers of that housing to submit an annual
report to Agency. On an annual basis, Agency shall provide list of tenants and current rent levels
to Owner for verification. Owner agrees to verify Agency records and return signed form within
one month of receiving form. If records are inaccurate, then Owner must bring current all
information.
3.2 Apartment Use. Each Parcel and Unit shall be used only for private apartment
dwelling purposes, with appurtenant facilities including tenant and community service centers,
and for no other purposes.
EXHIBIT E: Page 8 of 24
3.3 Signs. All signs of any kind which are displayed to the public view on or from
any Parcel shall be in accordance with the rules and regulations established by the Association
and the City.
3.4 Nuisances. No Owner shall permit or suffer anything to be done or kept upon the
Owner's Parcel which will impair the structural integrity of any other Owner's Building or which
will obstruct or interfere with the rights of other occupants of other Buildings and Parcels, or
annoy them by unreasonable noises or otherwise, nor shall any Owner commit or permit any
nuisance on the Owner's Parcel or fail to keep the Owner's Parcel free of rubbish, clippings and
trash or commit or suffer any illegal act to be committed thereon. Each Owner shall comply with
all of the requirements of all governmental authorities with respect to the Owner's Parcel.
3.5 Alterations of Buildings. All structural alterations, construction and painting of
the Buildings and improvements located on the Parcels shall be made in accordance with the
guidelines established by the Association as set forth herein and the City Code.
3.6 Parking. No Owner shall permit the parking, storing or keeping of any vehicle
except wholly within the parking areas designated therefor. No Owner shall permit the parking,
storing or keeping of any large commercial -type vehicle (dump truck, cement mixer truck, oil or
gas truck, etc.), or any recreational vehicle (camper shell detached from a private passenger
vehicle, motor home, trailer, boat, boat trailer, mobilehome or other similar vehicle), or any
vehicle other than a private passenger vehicle upon any portion of the Project, including parking
spaces. No Owner shall permit major repairs or major restorations of any motor vehicle, boat,
trailer, aircraft or other vehicle to be conducted upon any portion of the Property, including
parking spaces, except for emergency repairs thereto and then only to the extent necessary to
enable movement thereof to a proper repair facility. No inoperable vehicle shall be stored or kept
anywhere on the Project. The Owners and the Association shill have the right to remove, at the
vehicle owner's expense, any vehicle parked, stored or kept in violation of the provisions of this
Declaration. In addition, all provisions of the City Municipal Code, including amendments
thereto, shall apply.
3.7 Occupancy. Occupancy of each Unit shall be restricted to not more than 5
persons for each one bedroom Unit, and to not more than 7 persons for each two -bedroom Unit.
Notwithstanding the foregoing, however, this Section 3.7 shall not restrict the occupancy of
tenants who lawfully occupied their Units as of the date of this Declaration. The Owners have
determined that all of the one bedroom units in the Project are substantially the same size, and all
of the two bedroom units in the Project are substantially the same size, and accordingly it is
appropriate to establish the foregoing occupancy standards based upon the number of bedrooms
in the Unit rather than upon other criteria such as the size of each individual Unit.
3.8 No Transient Uses. No Owner shall be permitted to lease or rent his Parcel or
any Unit thereon for transient or hotel purposes.
EXHIBIT E: Page 9 of 24
3.9 Controlled Substances and Alcohol. Controlled substances shall not be
permitted in the Project. Consumption of alcoholic beverages shall not be permitted in public
areas on or about the Project, including without limitation Common Improvement Areas, front
yards, carports, garages and alleys.
3.10 No Subdivision or Timeshares. No Owner shall further subdivide his Parcel,
nor offer the Parcel for sale as a "timeshare" project, nor convert said Parcel to condominium or
stock cooperative ownership, without the approval of the Board and compliance with applicable
City ordinances.
IV. ASSOCIATION DUTIES
4.1 Maintenance of Common Area Landscaping. The Association shall have the
primary responsibility to maintain the Common Improvement Areas. Owners shall be responsible
, as set forth in Section V, for extraordinary expenses for damage or expenses to or for Common
Improvement Areas, above and beyond normal wear and tear, caused by an Owner or its tenants.
The Association shall maintain or cause to be maintained landscaping on Common Improvement
Areas, including landscaping within the public right-of-way, so as to be absent of the following:
(a) Lawns with grasses in excess of six (6) inches in height.
(b) Untrimmed hedges.
(c) Trees, shrubbery, lawns and other plant life dying from lack of water or
other necessary maintenance.
(d) Trees and shrubbery grown uncontrolled without proper pruning.
(e) Vegetation so overgrown as to be likely to harbor rats or vermin.
(0 Dead, decayed or diseased trees, weeds and other vegetation.
(g) Damaged or unsightly fences or gates in Common Improvement Areas.
(h) Inoperative or damaged play equipment and outdoor furniture in Common
Recreation Improvement Areas.
(i) Inoperative irrigation system(s).
EXHIBIT E: Page 10 of 24
4.2 Maintenance of Parking Areas. The Association shall keep parking areas within
the Common Improvement Areas free of deterioration, including potholes, defects in asphalt so
as to become uneven, unsightly surface conditions; and weeds growing through asphalt. The
Association shall periodically resurface and restripe parking lots as necessary. Although oil
spills shall be the responsibility of Owner, periodic cleaning of parking areas shall be the
responsibility of the Association. The Association shall have the right to have towed or
otherwise removed any vehicle parked, stored or kept in violation of the provisions of this
Declaration. Association shall also maintain any lights in parking areas that are installed as a
result of the improvement project and trim tree canopies in parking areas to ensure that they do
not interfere with the lighting.
4.3 Maintenance of Other Common Area Improvements. Perimeter and parking
lot fencing, trash enclosures, recreation areas, entry signs, lights and pergolas, landscaped public
right-of-way areas including parkways (not maintained by the City or the Agency, and walls and
gates in Common Improvement Areas, if any, shall be routinely inspected by the Association and
maintained in good condition and in good repair. In furtherance thereof, the Association shall
pay for all water and utility costs serving Cozxamon Area Improvements maintained hereunder.
Wherever possible, materials and finishes shall be grafitti resistent.
4.4 Architectural Guidelines and Review. The Association shall establish
reasonable guidelines for facade treatments to Buildings, and paint colors for Buildings. Such
guidelines shall be distributed to all Owners, and may be changed from time to time by the
Board.
4.5 Signage. The Association shall establish reasonable rules and regulations with
respect to the display of signs on Parcels and Buildings. Such rules and regulations shall be
consistent with the City Municipal Code and applicable law, including without limitation Civil
Code Sections 712 and 713.
4.6 Monitoring of Owner Maintenance Obligations. The Owners shall have the
primary responsibility to properly maintain Buildings and other improvements on such Owner's
Parcel (not expressly maintained by the Association as set forth in Section IV). Nevertheless, the
Association, through its designees or designated Owners, shall have the power to periodically
conduct inspections of the Project including interiors of units, and shall promptly after
conducting such inspections notify responsible Owners of maintenance deficiencies. The
Association shall establish procedures to ensure compliance by Owners is carried out within a
specified period of time, including levies and assessments pursuant to ,Section 2.8 (c).
4.7 Tenant -Screening Methods and Leases. The Association shall establish
reasonable tenant screening criteria, which criteria may be amended from time to time, and shall
distribute such criteria to all Owners. The Association shall have the power to review and
approve written blank lease forms submitted by Owners.
EXHIBIT E: Page 11 of 24
4.8 On -Site Manager. The Association shall designate at least one on -site manager
as a contact for the Project and may contract with an off -site manager. Either on or off site
managers shall be responsible for such duties as designated by the Board relating to the
provisions of this Declaration and the Bylaws. The Association shall inform the City of the
name, address and telephone number of the on and off -site manager and of any and all changes to
such information within ten (10) days of said change.
4.9. Obstructions and Alterations. Except as otherwise provided in this Declaration,
the Association shall be responsible for ensuring that there.shall be no obstruction of the
Common Improvement Areas, that nothing shall be kept or stored in the Common Improvement
Areas (except for designated storage areas); and that nothing shall be altered, constructed or
planted in or removed from the Common Improvement Areas without the prior written consent
of the Association.
4.14. Removal of Debris and Graffiti. The Association shall be responsible for
keeping or causing the keeping of the Common Improvement Areas free of rubbish, debris and
other unsightly or unsanitary materials. The Association shall remove graffiti from Common
Improvement Areas and Owner's Parcels and Buildings within five days of its creation. For any
buildings with paint colors that are not consistent with the colors identified in the Association's
Architectural Guidelines, the property owner shall provide matching paint to the Association or
the Association will attempt the best match within colors identified by the Association's
Architectural Guidelines.
4.11 Insurance. The Association shall take out and maintain throughout the term of
this Declaration a comprehensive general liability and property damage policy in a reasonable
and appropriate amount. The Association shall take out and maintain throughout the term of this
Declaration a policy insuring the officers and members of the Board against errors and
omissions. The Association shall tape out and maintain throughout the term of this Declaration a
fidelity bond of insurance for board members, officers, trustees, employees and volunteers
responsible for handling fiinds collected and held for the Association naming as insured the
Association for an amount sufficient to cover at least one -and -one-half times the Association's
estimated annual operating expenses and reserves. All policies of insurance obtained by the
Association shall be obtained from an insurance company qualified to do and doing business in
the State of California, and such policies may be obtained from one or more companies.
V. OWNER DUTIES
5.1 Leases Subject to Declaration. Each Owner shall enter into written leases with
each new tenant of a Unit, in a form which has been approved by the Association. Each such
lease shall provide that the terms of the lease shall be subject in all respects to the provisions of
EXHIBIT E. Page 12 of 24
this Declaration and that any failure by the tenant to comply with the terms of this Declaration
shall be a default under the lease.
5.2 Tenancy Applications. All prospective tenants of Units in each Owner's
Building shall make application through the Owner, who shall follow a tenant screening method
approved by the Association.
5.3 General Maintenance Obligations. Each Owner shall have the affirmative
obligation to prevent conditions dangerous to the public health, safety and general welfare; or
constitute an unsightly appearance or otherwise detract from the aesthetic and property values of
neighboring properties, as determined by the Association, in accordance with the rules and
standards which are established by the Board.
5.4 Maintenance of Landscaping. Each Owner shall maintain the landscaping on
such Owner's Parcels that are not included in the Common Improvement Areas so as to be absent
of the following:
(a) Lawns with grasses in excess of six (6) inches in height.
(b) Untrimmed hedges.
(c) Trees, shrubbery, lawns and other plant life dying from lack of water or
other necessary maintenance.
(d) Trees and shrubbery grown uncontrolled without proper pruning.
(e) Vegetation so overgrown as to be likely to harbor rats or vermin.
(f) Dead, decayed or diseased trees, weeds and other vegetation.
(g) Inoperative irrigation system(s).
5.5 Maintenance of Yards, Courtyards and Parking. Each Owner shall maintain
yards, parking areas, and courtyards on such Owner's Parcels so as to be absent of the following:
(a) Broken or discarded furniture, appliances and other household equipment
stored in yard areas for periods exceeding one (1) week.
(b) Packing boxes, lumber, trash, dirt and other debris stored in yard areas
visible from public property or neighboring properties, for periods exceeding one (1) week.
(c) Laundry hanging from trees, shrubs, fences or other yard areas.
EXHIBIT E: Page 13 of 24
(d) Damaged or unsightly courtyard fences or gates.
(e) Unpermitted or illegal lochs on required exits.
(0 Oil spills in parking areas.
(g) Graffiti
5.6 Maintenance of Buildings. Each Owner shall have the primary responsibility to
maintain the Buildings and other improvements on such Owner's Parcel in accordance with
Association Standards adopted pursuant to Section 5.7 hereof, including walls and fences not
part of the Common Improvement Area, and to maintain such property in conformity with
applicable City of Santa Ana codes. Upon the failure of the Owner to comply with this Section,
the Association may exercise its rights under Section 2.8 (c) of these Declarations. This
obligation shall be carried out in such a fashion that the Owners' Parcel shall be absent of the
following:
(a) Buildings abandoned, boarded up, partially destroyed or left unreasonably
in a state of partial construction.
(b) Unpainted buildings or buildings with peeling paint in such a condition as
to cause dry rot, warping and termite infestation, or constitute an unsightly appearance that
detracts from the aesthetic or property values of neighboring properties.
(c) Broken windows.
(d) Non -Association approved or missing window coverings.
(e) Excessive or unsightly storage on balconies.
(f) Deteriorated roofing, fascia board, eaves.
(g) Security bars in front windows and unapproved security bars on windows.
(h) Uncapped gas lines.
(i) Lack of hot or cold running water.
0) Non -Association approved or unsafe light fixtures.
(k) Deteriorated or damaged doors.
EXHIBIT E: Page 14 of 24
(1) Non -Association anapproved screen doors.
(m) Deteriorated stucco.
(n) Deteriorated stairways and balconies.
(o) Unpainted or peeling paint on railings, stairways or balconies
(p) Improper/Non-permitted replacement of gas, water or electrical line or
main feeds.
(q) Unsafe electrical service panels, wiring or cabinets.
(r) Missing or damaged window screens. (Note: all windows are required to
have venting screens.)
5.7 Compliance With Association Standards. Each Owner shall ensure that
Building interiors and exteriors on such Owner's Parcel shall be maintained to meet such further
standards which are established by the Association (including Association Architectural
Guidelines and approved paint color per Section 4.4 hereof), as such standards may be adopted
and amended by the Board from time to time, after the prior review of such changes by the City.
However, Owners shall not be responsible for ensuring that tenants of Units maintain the
cleanliness of the interior of their Units.
5.8 Tenant Compliance with Standards. Owner shall notify each tenant that no
tenant is allowed to remove items from the Property that is required by this Agreement, including
window screens and smoke alarms, and that if a tenant does not comply, the Owner may fine the
tenant at a rate to be agreed. upon by the Association.
5.9 Removal of Trash and Debris. Each Owner shall be responsible for keeping the
Owner's Parcels and Buildings free of rubbish, debris and other unsightly or unsanitary materials.
Each Owner shall maintain not less than one trash dumpster for every twenty (20) Units or two
Buildings on such Owner's Parcels, and shall provide for trash pickup at a rate that meets
Association Standards identified in Section 5.7 of this Agreement and is not less than the
minimum required under the City of Santa Ana regulations or codes. Owners shall be
responsible for trash that overflows dumpsters. Owners may maintain trash dumpsters which
serve Parcels and Buildings owned by other Owners, so long as such minimum ratios are
maintained. Upon the request of the Association, each Owner shall provide reasonable proof as
to the frequency of trash pickup from such Owner's Parcels.
EXHIBIT E: Page 15 of 24
5.10 General Liability and Property Damage Insurance. Each Owner shall take out
and maintain throughout the term of this Declaration a comprehensive general liability and
property damage policy in a reasonable and appropriate amount. Upon the request of the
Association, the Owner shall furnish to the Association a certificate of insurance countersigned
by an authorized agent of the insurance carrier setting forth the general provisions of the
insurance coverage. All policies of insurance obtained by an Owner shall be obtained from an
insurance company qualified to do and doing business in the State of California, and such
policies may be obtained from one or more companies.
5.11 Manager Training. Each Owner hereby agrees to require any apartment manager
for Owner's Property to have an Orange County Apartment Manager's Association Property
Management Training Certificate for managing in a "high -risk" environment or equivalent
certification and/or experience and training approved by Agency and the Association Board. For
property managers in Owner's employ as of the effective date of this Declaration, such managers
shall come into compliance with this requirement within one (1) year or such longer period as
may be approved by the Association Board. For property managers hired by Owner after the
effective date of this Declaration, such managers shall come into compliance with this
requirement within one (1) year of the date of commencement of their employment or such
longer period as may be approved by the Association Board. The certification requirement set
forth above shall be subject to the condition that the cost to obtain such certification not exceed
Thirty -Five Dollars ($35.00), as such sum shall be reasonably increased from time to time by the
Association Board, to reflect any increases charged by the training organizations.
VI. DECLARATION OF EASEMENT
6.1. Grant of Easement to Association. The Owners hereby grant to the Association
a nonexclusive easement appurtenant to each Owner's Parcel in, over, through, to and across such
Parcels for the purpose of providing access to Association officers, employees and contractors,
and their vehicles and equipment, for the purpose of carrying out the rights and obligations of the
Association under this Declaration. The location and use of the foregoing easement shall not be
changed after the date hereof except through the amendment of this Declaration pursuant to
Section 10.2 hereof.
6.2 Character of Easement. Unless expressly stated in this Declaration to the
contrary, the easement granted in this Article V1 shall be appurtenant to the Parcels and shall
inure to the use and benefit of the Association, the Owners and their tenants, and such easement
may not be held, transferred, assigned or encumbered except as an appurtenance to the Parcels.
For the purposes of the easement granted in this Article VI, the property benefited by such
easement will constitute the dominant estate and the property burdened by such easement will
constitute the servient estate.
EXHIBIT E: Page 16 of 24
6.3 Enforcement of Easement. The easement granted in this Article VI shall not be
extinguished by the present or future vesting of rights to the dominant estate and rights to the
servient estate in the same person or entity. This Article VI is not intended to create enforceable
rights in any tenants of the Units in the Project.
6.4 No Easement by Implication; Prevention of Prescriptive Rights. Neither the
execution of this Declaration nor the granting or declaring of the easement set forth in this
Article VI shall be deemed a grant or declaration of an easement or easements to any third party,
except to the extent that the easement provided for herein run with the land, nor an establishment
of an easement or easements by implication, and Owners and the Association each understand
and agree that the only easement made and granted or declared by such parties is the easement
which is expressly made and granted or declared by this Article VI. Each Owner hereby reserves
the right to eject or cause the ejection of, from its respective property, any person not authorized,
empowered or privileged to use such property pursuant to the terms of this Article VI. Each
Owner further reserves the right to restrict access to its respective property for such reasonable
periods of time as may be necessary to prevent the acquisition of prescriptive rights by any
person; provided, however, that prior to the imposition of such restrictions on access, the Owner
exercising such right shall give written notice to the other parties of its intention to do so and
shall coordinate such restriction of access with the other parties so that no unreasonable
interference with the operation of the Project shall occur.
6.5 Unimpeded Access. The Owners hereby declare that at all times there shall be
free access between and among the parking areas within the Project, which free access shall not
be impeded by continuous barriers, fences, walls, buildings or other impediments to the
integration of the parking areas within the Project; excepting that if reasonably necessary, such
access may be reasonably impeded by the Owners, and their employees, agents, contractors and
subcontractors, for the purpose of any maintenance or repairs to the improvements located on
such Parcels. The access rights provided herein shall not include the right to park on an Owner's
Parcel.
6.6 Easement Use. Subject to all existing and fixture rules and regulations adopted
for the use of the Parking Areas as provided in this Declaration, the use of the easement provided
for in this Declaration shall be nonexclusive and shall be for the use and benefit of the
Association, the Owners, and their tenants. The Common Improvement Areas shall at all times
be used in conformance with applicable laws, including without limitation the City Municipal
Code,
6.7 Right of Use. Each Owner shall have the right at any time and from time to time,
to remove, exclude and restrain any person from the use and enjoyment of the Common
Improvement Areas on the Parcel owned by such Owner, excepting the Association, the Owners
and their tenants.
EXHIBIT E: Page 17 of 24
VII. REMEDIES OF ASSOCIATION
7.1 Right of Entry. The Association shall have the right of entry, at reasonable hours
and upon no less than 24 hours advance notice, onto any Parcel or into any Unit to inspect for the
need for repairs or maintenance which the Owner has failed to perform. Entry onto any Parcel or
into any Unit for other than emergency repairs may be made only after notice, as provided herein,
to determine the necessity and right of such entry and the responsibility for the cost of any repairs
or maintenance,
7.2 Failure of Owner to Repair or Maintain. In the event an Owner shall have
failed for a period of thirty (30) days after notice to the tenant and Owner from the Association to
maintain, repair, restore and/or rebuild such Owner's Unit, the Association shall have the right,
through its officers, agents and employees, to maintain, repair, restore and/or rebuild the same
and to assess the costs thereof upon the Owner whose structure was so maintained, repaired,
restored and/or rebuilt, or to seek any other remedy available at law. If the Association contracts
out such maintenance, restoration, repair and/or rebuilding, the Association shall also have the
right to assess the costs thereof upon the Owner whose structure was so maintained, repaired,
restored and/or rebuilt in accordance with Section 2.8 (c).
7.3 Violation of Rules: Association shall have the right to send violation notices,
conduct Hearings and fine owners for violation of rules.
7.4 Effect of Nonpayment of Assessments, Remedies of the Association. Any
assessment not paid within thirty (30) days after the due date shall incur a late payment fee equal
to six percent (6%) of the unpaid assessment or such greater amount as permitted by law. The
Association may bring an action at law against any Owner personally obligated to pay the same,
or in equity for foreclosure of the lien against such Owner's Parcel. The Association may also
foreclose the lien described hereinbelow by the nonjudicial foreclosure provisions provided for
by the laws of the State of California. No Owner may waive or otherwise escape liability for the
assessments provided for herein by abandonment of such Owner's Parcel, and such assessments
shall become a personal obligation of the Owner.
7.5 Notice of Lien. No action shall be brought to foreclose such assessment lien or to
proceed under the power of sale herein provided less than thirty (30) days after the date a notice
of claim of lien is deposited in the United States Mail, certified or registered, postage prepaid, to
the Owner and a copy thereof is recorded by the Association in the official records of Orange
County, California. Such notice of claim must recite a good and sufficient legal description of
any such Parcel, the record Owner or reputed Owner thereof, the amount claimed (which may at
Association's option include interest on the unpaid assessment at the rate of ten percent (10%)
per annum, or such greater amount as permitted by law, phis costs of collection in connection
EXHIBIT E: Page 18 of 24
with the debt secured by said lien and reasonable attorneys' fees), and the name and address of
the claimant.
7.6 Foreclosure Sale. Any such sale provided for above is to be conducted by the
Board, its attorney or other persons authorized by the Board in accordance with the provisions of
Sections 2924, 2924a, 2924b, 2924c, 2924f, 2924g and 2924h of the Civil Code of the State of
California, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any
other manner permitted by law. The Association, through duly authorized agents, shall have the
power to bid on the Parcel at any foreclosure sale, to acquire and hold, lease, mortgage and
convey the same.
7.7 Curing of Default. Upon the curing of any default for which a notice of claim or
lien is filed by the Association, the officers thereof shall, within thirty (30) days file or record, as
the case may be, an appropriate release of such notice, upon payment by the defaulting Owner of
a fee, to be determined by the Association to cover the costs of preparing and filing or recording
such release.
7.8 Cumulative Remedies. The assessment lien and the rights to foreclosure and sale
thereunder shall be in addition to and not in substitution for all other rights and remedies which
the Association and its assigns may have hereunder and by law, including a suit to recover a
money judgment for unpaid assessments, as above provided.
7.9 Assessments. All Assessments required to be made to the Association by Owners
are due on the first of each calendar month and are delinquent if not received by the Association
by the tenth of each calendar month at a location designated by the Association. Funds received
are to be applied first to late charges, then to fines, then to penalties, then to interest owed, then
toward Assessments, then toward any other sums as become payable under this Declaration or
the Bylaws.
7.10 Contingency Funds. For the first five years of the Association, the City of Santa
Ana will provide a contingency fund account of $25,000. In the event that an Owner is
delinquent for sixty days on any portion of its Assessment, late charges, fines, penalties, interest,
or any other stuns payable under this Declaration of the Bylaws, the Association will draw upon
the contingency find account of $25,000 set aside by the City of Santa Ana in an amount
sufficient to bring the delinquent account current. After bringing a delinquent account current,
the Association must pursue legal remedies against the Owner in order to draw upon the
contingency fiend account of $25,000 again. If the account is delinquent for more than 180 days,
the City must approve any further use of the contingency fund for that delinquent account. The
Association's drawing upon these contingency funds does not relieve or in any way affect the
delinquent Owner's obligation to bring its account current, or incur interest, penalties, and late
charges, and collection will proceed against the delinquent Owner in accordance with Article VII
of this Declaration.
EXHIBIT E: Page 19 of 24
7.11 Application of Fends. Funds collected from the delinquent Owner will be
applied to its Association account as specified in Section 7.9 and will be returned within thirty
days to the City of Santa Ana's contingency funds account up to an amount that contingency
funds were received by the Association from the City. Funds returned to the City will include no
interest, fees, or other charges and are to be placed directly into the City's contingency fund
account to restore it to its former level.
VIII. CITY RIGHT OF REVIEW AND ENFORCEMENT
The City of Santa Ana ("City") shall have the following rights of review and enforcement
with respect to this Declaration:
8.1 City Approval of Amendments. Changes or amendments to this Declaration:
must be approved by the City. The Association shall give the City notice of any proposed
changes or amendments to this Declaration by mailing a copy of the precise language of the
proposed change or amendment to the City, addressed to the City of Santa Ana Executive
Director of Community Development, P.O. Box 1988, Santa Ana, California 92702 (or such
other address as the City specifies in a written notice to the Association), together with a letter of
transmittal explaining the proposed change or amendment in general terms. The City shall have
an opportunity to review and approve, disapprove or submit written comments upon the proposed
amendment for a period of not more than twenty-one (21) days from the date such notice is sent,
provided that in exigent circumstances the Association may specify a shorter time period for
review and comment, which time period shall not be less than ten (10) days from the date of
sending such notice. If the City submits written comments within such time period, the
Association shall incorporate the City's comments into such change or amendment to the extent
feasible, and shall resubmit the proposed change or amendment to the City, and the City shall
have an additional fourteen (14) days to approve or disapprove such revised amendment or
change
8.2 City Enforcement of Declaration. The City may send written notices to Owners
of their failure to maintain, repair, restore and/or rebuild such Owner's Unit in accordance with
this Declaration. The City shall concurrently send a copy of all such notices to the Association.
The Owner shall cure the deficiency specified in the City's notice within thirty (30) days after the
date such notice is received from the City, or if such deficiency cannot reasonably be cured
within such thirty (30) day period, the Owner shall commence to cure such deficiency within
such thirty (30) day period and diligently pursue the completion of such cure as soon as
practicable thereafter. In the event that the Owner fails to cure the deficiency within such time,
the City shall have the right to maintain, repair, restore and/or rebuild the same, or caused same
to be done. The City shall also have the right to assess the reasonable costs thereof, exclusive of
administrative and internal charges, upon the Owner whose structure was so maintained,
EXHIBIT E: Wage 20 of 24
repaired, restored and/or rebuilt, and the assessment shall have the same effect as an assessment
by the Association.
8.3 City Enforcement of Laws. The City is hereby granted the express power to
enforce all laws and ordinances of the State of California and the City of ,Santa Ana on the
Common Improvement Areas and the Parcels within the Project.
8.4 Right to Enter. Owners hereby acknowledge and intend and thus grant to the
City, through the City's duly authorized agents or employees, the right to enter upon the Common
Improvement Areas and Parcels for the purposes of carrying out its rights under Sections 8.2 and
8.3 hereof.
IX. MORTGAGE PROTECTION
Notwithstanding any and all provisions elsewhere in this Declaration to the contrary, in
order to induce lenders and investors to participate in the financing of the Parcels and Buildings
within the Project, the following provisions are added hereto; and to the extent these added
provisions conflict with any other provisions of this Declaration, the Articles of Incorporation or
the Bylaws of the Association, these added provisions shall control:
9.1 Notice of Default. Each mortgagee of a mortgage encumbering any Parcel, upon
written request to the Association, will be entitled to notification from the Association of any
default by the mortgagor of such Parcel in the performance of such mortgagor's obligations under
this Declaration, the Articles or the Bylaws which is not cured within sixty (60) days. The
Association may charge the Owner and/or the mortgagee a reasonable fee for providing such
notification.
9.2 No Liability for Unpaid Dues. Any mortgagee or third -party foreclosure ..
purchaser who comes into possession or who obtains title to a Parcel pursuant to the remedies
provided in the mortgage or foreclosure of the mortgage, or by deed or assignment in lieu of
foreclosure, will not be personally liable for such Parcel's unpaid dues or charges which accrue
prior to such possession or acquisition of title to such Parcel. The assessment liens provided for
herein shall be subordinate to the lien or equivalent security interest of any first mortgage on a
Parcel recorded prior to the date any such assessments become due. Such subordination shall
apply only to assessments which accrue prior to a sale or transfer of such property pursuant to a
decree of foreclosure or trustee's sale. To the extent permitted by law, any sale or transfer shall
not relieve such property from liability for any assessments thereafter becoming due or from the
lien of any such subsequent assessment.
9.3 Supermajority Approval of Certain Amendments. Unless at least eighty
percent (80%) of the Owners of the individual Parcels, as well as the City pursuant to Section 8.1
EXHIBIT E: Page 21 of 24
hereof, have given their prior written approval, the Association or the Owners shall not be
entitled to:
(a) by act or omission, seek to abandon or terminate this Declaration, except
for abandonment or termination provided by law in the case of substantial destruction of the
Project by fire or other casualty or in the case of a taking by condemnation;
(b) change the pro rata interest or obligations of any individual Parcel for
purposes of levying assessments or charges or allocating distributions of hazard_ insurance
proceeds or condemnation awards; or
(c) make any amendment to this Declaration, the Articles or the Bylaws
governing the following subjects: (i) the fundamental purpose for which the Project was created
(such as a change from multifamily residential use to a different use); (ii) voting;
(iii) assessments, assessment liens and subordination thereof; (iv) annexation; and (v) any
provision of this Article IX.
9.4 Examination of Association Records. Mortgagees and prospective mortgagees
shall have the right to reasonably examine the books and records of the Association during
normal business hours.
9.5 Taxes. All taxes, assessments and charges which may become liens under
applicable law shall relate only to the individual Parcels and not to the Project as a whole,
9.6 Notices. The Association shall, upon the request of any first mortgagee, (1) give
written notice of all meetings of the Association and permit such mortgagee to designate a
representative to attend all such meetings, and (2) transmit to such mortgagee an annual audited
financial statement of the Project within ninety (90) days following the end of any fiscal year of
the Project. The Association may charge the Owner and/or the mortgagee a reasonable fee for.
providing such notification.
9.7 No Forfeiture. No breach of any of the foregoing covenants and restrictions shall
cause any forfeiture of title or reversion or bestow any right of reentry whatsoever; but violation
of any one or more of these covenants or restrictions may be enjoined or abated by Owners, their
successors and assigns, and by the Association, by action of any court of competent jurisdiction;
and damages may also be awarded against such violations provided, however, that any such
violation shall not defeat or render invalid the lien of any mortgage made in good faith and for
value as to said property or any part thereof, but said covenants and restrictions shall be binding
upon and effective against any Owner of said property, or portion thereof, whose title thereto is
acquired by foreclosure, trustee's sale or otherwise.
EXHIBIT E: Page 22 of 24
X. GENERAL PROVISIONS
101. Effective Date; Term. But for the affordability covenant contained in Section
3.1 hereof, the terms and provisions of this Declaration shall take effect upon the recordation
hereof in the Official Records of Orange County, California, provided, however, that this
Declaration shall not be so recorded until the Owners of at least Ninety Percent (90%) of the
Parcels within the Project have executed this Declaration. Once recorded, this Declaration shall
remain in full force and effect for a period of twenty (20) years thereafter, and shall be
automatically renewed and extended thereafter for successive periods of ten (10) years each
unless sooner terminated by the Owners pursuant to the provisions of Section 10.2 hereof.
10.2 Amendments. Except as otherwise provided in Section 9.3 hereof, this
Declaration may be amended, modified or terminated at any time by a declaration in writing,
executed and acknowledged by the Owners of a majority of the Parcels in the Project. This
Declaration shall not be otherwise amended, modified or terminated during the term hereof.
10.3. Annexation Property. Any of the Annexation Parcels which are described in the
Legal Description of Annexation Parcels, which is attached hereto as Exhibit "C" and
incorporated herein, may be annexed from time to time to this Declaration by the recordation in
the official records of Orange County, California of a notice thereof executed by the Owner of
such Annexation Parcel and an officer of the Association.
10.4 Governing Law. This Declaration shall be construed in accordance with the laws
of the State of California.
10.5 Section Headings. The Article headings of this Declaration are for convenience
only and shall in no way define or limit the scope or content of this Declaration and shall not be
considered in any constriction or interpretation of this Declaration or any part thereof.
10.6 Not a Partnership. Nothing in this Declaration shall be construed to make any of
the Owners partners or joint venturers.
10.7 Binding on Successors and Assigns. This Declaration shall be binding upon and
inure to the benefit of the successors and assigns of Owners. Each Owner shall take all
reasonable steps necessary to ensure that any successor or assignee has knowledge of all terms
and conditions of this Declaration.
10.8 Attorneys' Fees. rn the event action is instituted to enforce any of the provisions
of this Declaration, the prevailing party in such action shall be entitled to recover from the other
party thereto, as part of the judgment, reasonable attorney's fees and costs.
EXHIBIT E: Page 23 of 24
INCOME VERIFICATION
(for Department of Social Services aid recipients)
TO: CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
Ladies and Gentlemen:
I am receiving assistance through your office. I have applied for a rental unit
located in a project with improvements financed by the City of Santa Ana for
persons of low income. In connection with my application for a rental unit, I
hereby authorize the Department of Social Services to release to
the specific information requested below:
Date:
Signature
Caseload Number
Name (Print):
Case Number
Case Worker:
1. Number of persons included in budget:
2. Total monthly budget $
a) Amount of grant $ Date aid last began:
b) Other income. and source:
c) Is other income included in total budget? Yes No
3. Please specify type of aid (AFDC, FR, Food Stamps, ANB, MediCal, Etc.)
4. If recipient is not receiving full grant, please indicate reason:
❑ Overpayment due to client's failure to report other income
❑ Computation error
❑ Other
5. Date when full grant will resume:
Case Worker's Signature
Telephone. District Office:
Your very early response will be appreciated.
INCOME VERIFICATION
Exhibit I: 10 of 11
(for self-employed persons)
hereby attach copies of my individual federal and state income tax
returns for the immediately preceding calendar year and certify that the
information shown in such income tax returns is true and complete to the best of
my knowledge.
Date:
Signature:
Please send form to:
Exhibit 1: 11 of I I
EXHIBIT J: Estimate of City/Agency Funded
Improvement Costs
CITY FUNDED IMPROVEMENT PROJECT EST. COST
PROJECT A.1: STREET IMPROVEMENTS
PROJECT A.2; UNDERGROUND ELECTRIC
PROJECT A. CONSTRUCTION SUBTOTAL
PROJECT B.1: PARKING & ALLEY IMPROVEMENTS
PROJECT B.2: OWNER LANDSCAPING
PROJECT B: CONSTRUCTION SUBTOTAL
TOTAL CONSTRUCTION COSTS FOR CITY FUNDED PROJECTS
110% OF ESTIMATED CONSTRUCTION COST
EXHIBIT J: Page 1 of 1
$842,000
$200,000
$1,042,000
$670,000
$245,000
$915,000
$1,957,000
$2,152,700
EXHIBIT K: Promisory Note and Deed of Trust
PROMISSORY NOTE
(secured by deed of trust)
Santa Ana, California
$ .00
2002
1. FOR VALUE RECEIVED; the undersigned,
(the "Owner") promises to pay to the
Community Redevelopment Agency of the City of Santa Ana, a public body, corporate and politic,
("Agency"), at 20 Civic Center Plaza, Santa Ana, California, 92701, or such other location as the
holder hereof may designate, the amount of
Dollars ($ .00), plus accrued interets, in accordance with the terms of that certain
Owner Participation by and between the Agency, the City of Santa Ana and Owner dated
, 2002 (the "OPA").
2. This Note shall accrue interest at the rate of six percent (6%) per annum on the initial
principal balance only fiom the Fagade and Courtyard Improvement Completion Date until forgiven
or repaid. No payments will be required prior to the Conditional Loan coming due as provide above.
If a Certificate of Compliance is not issued within the time provided for in the OPA, this Note,
together with accrued interest, shall immediately become due and payable in full.
3. The Owner waives presentment for payment, demand, protest, and notices of dishonor and
of protest; the benefits 'of all waivable exemptions; and all defenses and pleas on the ground of any
extension or extensions of the time of payment or of any due date under this Note, in whole or in
part, whether before or after maturity and with or without notice. The Owner hereby agrees to pay
all costs and expenses, including reasonable attorney's fees, which may be incurred by the holder
hereof in the enforcement of this Note.
"Owner"
Name:
EXHIBIT K; Promissory Note and Deed of Trust
Pagel of 4
RECORDING REQUESTED BY
CITY OF SANTA ANA AND
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA
AND WHEN RECORDED MAIL TO
City of Santa ,Ana and the
Community Redevelopment Agency
of the City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988, M-37
Santa Ana, CA 92702
SPACE ABOVE THIS LINE FOR RECORDER'S USE
SHORT FORM DEED OF TRUST AND ASSIGNMENT OF RENTS
This Deed of Trust, made this day of , between
(month) (year)
herein called TRUSTOR,
whose address is
(nzunber and street) (city) (state)
TRUSTORS SECURITY SERVICE, a California corporation, 2731 % E. Coast Highway, Corona Del Mar, CA
92625 called TRUSTEE, and COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public
body, corporate and politic, herein called BENEFICIARY,
Witnesseth: That Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to TRUSTEE IN TRUST, WITH
POWER OF SALE, that property in County,
California, described as:
See Exhibit "C" attached hereto and incorporated herein by reference.
TOGETHER WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right, power and authority given to
and conferred upon Beneficiary by paragraph (10) of the provisions incorporated herein by reference to collect and apply
such rents, issues and profits.
EXHIBIT K: Promissory Note and Deed of Trttst
Page 2 of 4
For the Purpose of Securing: 1. Performance of each agreement of Trustor incorporated by reference or contained herein. 2. Payment of
the indebtedness evidenced by one promissory note of even date herewith, and any extension or renewal thereof, in the principal sum of S
See Rider attached hereto executed by Trustor in favor of Beneficiary or order.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: By the execution and delivery of this Deed of
Trust and the note secured hereby, that provisions (1) to (14) inclusive, of the fictitious deed of trust recorded in Riverside county June 24,
1968, and in all other Counties July 2, 1968, in the book and at the page of Official Records in the office of the County Recorder of the
county where said property is located, noted below opposite the name of such County, viz:
.._..._..._.__._... ..........
1SOOK. ; A....
AO doY PAC KOUNTY BOOK P GE COUNTY BOOK PAGE COUNTY BOO PAGE1
Clame :. _..... —2210 ............. - 8 m s ...._ 924 , •- ...__. _ 85 ce ._,_.....
U _.-_,•--.--._.-.,__ „. 4 632 Shasta. 95a 68
.._......._10 . µ l M 483_.- _ Luke.. . _....... -Y---»__., -271 Plumas l 1a2., _ _-
Amador 175 234 1 Las en 222 -476 Riverside - ggfl4 - - 33 Sierr� 47 197
5 Year 1968 I Siski ou - - _ ..,__ ,_.__ ...-.---•-__..-,_
1523 - Sacramento g60 897
_ to _ ._ _..... _...._......... -_23 ... 386 Las An e[es---._..._T5841 -...,_.
-Cat veras ! 342 Sacramento _ .e... ....
_ la ......... . 259 _....,.._M ._..... -...4b _ ....__......- ---- _._. _ 68 07 02 26a ...Solano.._.. _._ 51.4._ ....-- ..... 628
Bu
adera - - 1D13 455 San Benito 339 63 Sonoma 2338 961
-- —
Calusa 357 _ 32 IVfann 2222 339 1 San Bernardino 7053 ` r - -
____.....__....�.. _........ _..--•--._..-._........._.-._._ . _,_ ?...-_ 298 Stansslaus 2227 171
San Dreg°.. Book 1969 __ 6 {.............._ 25 -- - .0
....._ _ ......._. _ ....... - -- - - -., ... ........SutterMariposa ..............
_.,..,..,.....
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Series 111626 Su
(Mendocino I 768 Tehnma I SE4 27S
ortc 1 135 25G
E1Dorado 1 684 635 'Merced __-j 1775 48 SanPrancisco ; B2S4 2G1 Tnmty 128...._.._.--.r567
--
Fresno 5586 264 , Modoc z04 l56 _SanJoaguin _ 322] 96 T Tulare 2790 157
Glarus I 509 75 Mano -.---.._..... _
................_,____...:..._.......� I 9S 17 SmrLuisObrspo 1481 j 591 r Tuolurrnre253 585
Humboldt 966 322 (Monterey ; 563 j 646 j San IvFatao 5496 67 Ventura'--- 3328 548
Impenal 1264 201 Na a ! 789 862 Santa Barbara_ ............... - .................... 1? .._----_____.:-----_......»...._.�.. 2237--=...-_...._„.„.734.:.YoIo.--..__.-__...._..,._.a85-•----....-163 '
Goo l82 ] 944 I Nevada - 450 210 }Santa Clara 8177 4U3 Yuba 469 39$ ,
1 _ _ „ ..,I
KamL .4175 L 224 i Ornn a .... --- 5648,..,., .......... __1840 _........ ... ...............
(which provisions, identical in all counties, are printed on the reverse hereof) hereby are adopted and incorporated herein and made a part
hereof as fully as though set forth herein at length; that he will observe and perform said provisions; and that references to property,
obligations, and parties in said provisions shall be construed to refer to the property, obligations, and parties set forth in this deed of Trust.
The undersigned Trustor requests that a copy of any Notice of Default and of any Notice of Sale hereunder be mailed to him at his
address hereinbefore set forth.
Signah ere of Trustor
State of Califomia
County of
On
before one
personally appeared
personally known to me (or provided to me on the basis of satisfactory 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(ics), and that by
his/her/their signatare(s) on the instrument the person(s), or the entity upon behalf of which the persons acted, executed the instrument.
WITNESS my hand and official seal.
Signature
EXH]B7T K: Promissory Note and Deed of Trust
Page 3 of 4
and
RIDER TO SHORT FORM DEED OF TRUST
AND ASSIGNMENT OF RENTS
THIS RIDER is attached to and incorporated into that certain Short Form Deed of Trust
Assignment of Rents dated as of between
as Trustor,
TRUSTORS SECURITY SERVICE, a California corporation, as Trustee,
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA,
body, corporate and politic, as Beneficiary (the "Deed of Trust").
and the
a public
Trustor and Beneficiary are party to that certain Owner Participation Agreement dated as
of , 1999 (the "Agreement"). Pursuant to Article [7] of the Agreement,
Beneficiary has made a grant to Trustor in the principal sum of $ to be used to
finance certain improvements to the property encumbered by this Deed of Trust (the "Grant").
As more particularly provided in Article [7] of the Agreement, the Grant is repayable to
Beneficiary, with interest at the rate of six percent (6%) per annum, on certain conditions. This
Deed of Trust is for the purpose of securing that conditional repayment obligation.
"Trustor"
EXHIBIT K: Promissory Note and Deed of Trust
Page 4 of 4
EXHIBIT L: Estimate of Facade & Courtyard
Improvement Costs
FACADE COURTYARD IMPROVEMENTS EST. COST
1 Building @ $8,000
$8,000
7 Buildings @ $24,000
$168,000
40 Buildings @ $17,000
$680,000
Adjustments for Potential Wage Requirements
$115,000
Contingency (20Zo $194,200
FACADE CONSTRUCTION TOTAL $1,165,200
28 Courtyards @ $24,000 $672,000
Adjustments for Potential Wage Requirements $100,000
Contingencyr p0%) $154,400
COURTYARD CONSTRUCTION TOTAL
ICONSTRUCTION OF FAgADE & COURTYARD IMPROVEMENTS
f 110% OF ESTIM. FOR FAPADE IMPROVEMENTS
10% OF EST1M, FOR COURTYARD IMPROVEMENTS
EXHIBIT L: Page 1 of 1
tit • • 11
$2,091,600
$1,281,720
$1,019,040
IEXHIBIT M: Release of Lien
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
[Free Recording Requested Per
Government Code Section 6103]
RELEASE OF LIEN
THIS RELEASE OF LIEN (the "Release") dated, for identification purposes only, as of
, 200_, is made and entered into by and between the COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body, corporate
and politic (the "Agency"), CITY OF SANTA ANA, a charter city and municipal corporation
duly organized and existing under the Constitution and laws of the State of California (the
"City"), and ("Owner"), pursuant to that
certain Owner Participation Agreement dated as of , 200 , by and among the
City, Agency and Owner (the "Agreement") regarding certain property located in the City of
Santa Ana, County of Orange, State of California and more particularly described in Exhibit "A"
attached hereto (the "Property"), that certain Promissory Note related to a Fagade and Courtyard
Improvement Loan for the Property and that certain Deed of Trust recorded as
The undersigned hereby certifies that the obligation to repay the Promissory Note, as
secured by the Deed of Trust has been fully performed or forgivers in such a fashion that, under
the terms of the Promissory Note and the Deed of Trust, the Deed of Trust should no longer be a
lien against the Property. Therefore, the Deed of Trust is hereby released.
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA
Date: , 200_ By:
Its:
EXHIBIT M: Page l of 2
Date: , 200
CITY OF SANTA ANA
Lm
Its:
EXHIBIT M: Page 2 of 2
EXHIBIT N: Required Condition of Property to
Receive Facade Improvements
The following is a list of conditions that should be attained prior to installation of fagade
improvements and painting structures under the Facade Improvement Plan. It is Owner's
responsibility to make repairs required to achieve these standards prior to City and/or
Agency making improvements. If owner does not make improvements as required, then
City may delay constructing Improvements or proceed to construct Improvements despite
condition of Property.
EXTERIOR WALLS (STUCCO)
Stucco shall be void of any moderate to severe damaged or deterioration including
holes, cracks, and water damage and scaling material.
2. EXTERIOR DOORS & TRIM
Exterior doors and trim shall be void of any moderate to severe damage or
deterioration including holes, dry rot and termite damage.
3. RAFTERS, EAVES & FASCIA BOARD
Rafters, eaves and fascia board shall be void of any moderate to severe damage or
deterioration including holes, dry rot and termite damage.
NOTE:
Small holes, hairline cracks and other minor damage or deterioration are covered by the
Facade Improvement Plan as "normal" prep work.
Exhibit N: 1 of I
EXHIBIT ®: Certificate of Insurance and
Additional Insured Endorsement
ADDITIONAL_ INSURED ENDORSEMENT
Insurance Company
This endorsement modifies such insurance as is afforded by the provisions of
Policy # relating to the following;
The City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92702;
it's officers, employees, agents and representatives are named as additional
insureds ("additional insureds") with regard to liability and defense of suits
arising from the operations and uses performed by or on behalf of the named
insured.
2. With respect to claims arising out of the operations and uses performed by or
on behalf of the named insured, such insurance as is afforded by this policy,
is primary and is not additional to or contributing with any other insurance
car-ried by or for the benefit of the additional insureds.
3. This insurance applies separately to each Insured against whom claim is
made or suit is brought except with respect to the company's limits of liability.
The inclusion of any person or organization as an insured shall not affect any
right which such person or organization would have as a claimant if not so
included.
4. With respect to the additional insured, this insurance shall not be cancelled.
or materially reduced in coverage or limits except after thirty (30) clays written
notice has been given to the City of Santa Ana, 20 Civic Center Plaza, Santa
Ana, California, 92702.
(Completion of the following, including countersignature, is required to make this
endorsement effective.)
Effective
Policy #
ssues to:
Countersigned by
Named Insured
This endorsement form as a part of
Exhibit O: 1 of 1
EXHIBIT P: Memorandum of Agreement
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
City of Santa Ana and the
Community Redevelopment Agency
of the City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988, M-37
Santa Ana, California 92702
Attn:
I
MEMORANDUM OF AGREEMENT
[Free Recording Requested Per
Government Code Section 6103]
THIS MEMORANDUM OF AGREEMENT (the "Memorandum") dated, for
identification purposes only, as of ; 2002, is made and entered into by and
between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA, a public body, corporate and politic (the "Agency"), CITY OF SANTA ANA, a charter
city and municipal corporation duly organized and existing under the Constitution and laws of
the State of California (the "City"), and
("Owner"), pursuant to that certain Owner Participation Agreement dated as of
2002, by and among the City, Agency and Owner (the "Agreement")
regarding certain property located in the City of Santa Ana, County of Orange, State of
California and more particularly described in Exhibit "A" attached hereto (the "Property").
EXHIBIT P: Page 1 of 2
This Memorandum is prepared for the purpose of recordation and to give notice of the
existence of the Agreement. The Agreement is a public record on file and available for public
inspection during normal business hours in the office of the Secretary of the Agency, This
Memorandum is not a complete summary of the Agreement. Provisions of this Memorandum
shall not be used to interpret the provisions of the Agreement. In the event of a conflict between
this Memorandum and the provisions of the Agreement, the. provisions of the Agreement shall
control.
"Agency"
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA
Date; , 2002 By:
Its:
"City"
CITY OF SANTA ANA
Date: , 2002 By:
Its:
"Owner"
[To be signed exactly as title is vested.]
EXHIBIT P. Page 2 of 2
EXHIBIT Q: Release of Memorandum of Agreement
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
APN: [Free Recording Requested Per
Government Code Section 6103]
RELEASE OF MEMORANDUM OF AGREEMENT
THIS RELEASE OF MEMORANDUM OF AGREEMENT (the "Release") dated, for
identification purposes only, as of , 200, is made and entered into by
and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA, a public body, corporate and politic (the "Agency"), CITY OF SANTA ANA, a
charter city and municipal corporation duly organized and existing under the Constitution and
laws of the State of California (the "City"), and
("Owner"), pursuant to that certain
Owner Participation Agreement dated as of , 200, by and among the City,
Agency and Owner (the "Agreement") regarding certain property located in the City of Santa
Ana, County of Orange, State of California and more particularly described in Exhibit "A"
attached hereto (the "Property").
The undersigned hereby certifies that the Agreement as referenced in that certain
Memorandum of Agreement recorded as
(the "Memorandum") has been frilly performed or terminated in such a fashion that, under the
terms of the Agreement, neither the Agreement nor the Memorandum should be of record against
the Property. Therefore, the Memorandum is hereby released.
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA
Date: , 200_ By:
Its:
EXHIBIT Q: Page 1 of 2
CITY OF SANTA ANA
Date: , 200_ By:
Its:
EXHIBIT Q: Page 2 of 2
]EXHIBIT R: Facade & Courtyard Improvement Contract
FACADE AND COURTYARD IMPROVEMENT CONTRACT
THIS CONTRACT, made and entered into this day of
20 by and between:
hereinafter referred to as "CONTRACTOR" and:
hereinafter referred to as "OWNER".
WITNESSETH
Recitals:
A. OWNER desires to employ a general building contractor as defined in California
Business and Professions Code § 7057 to perform certain work on property located at:
(the "Property")
B. CONTRACTOR represents that it is qualified to perform such work as desired by
OWNER.
C. OWNER is financing all or part of the cost of the work to be performed under this
Contract with proceeds of a conditional loan to OWNER from the Community Redevelopment
Agency of the City of Santa Ana ("Agency) made pursuant to the terms of that certain Owner
Pan ticipation Agreement dated between the OWNER, the Agency and the City of
Santa Ana ("City"). The Executive Director of the Agency, or his/her designee is the representative
of the Agency.
WHEREFORE, for and in consideration of the respective and mutual covenants
and promises hereinafter contained and made, and subject to all the terms and conditions hereof,
the parties hereto do hereby agree as follows:
L THE WORK
1. SCOPE OF WORK
CONTRACTOR agrees, at its sole cost and expense, to provide all supervision, technical
personnel, labor, materials, machinery, tools, equipment, fixtures and services for the work required
on the Property, in accordance with the attached bid and proposal, general conditions, work write -
tips, specifications, and drawings, which documents are incorporated herein by reference as though
fully set forth.
CONTRACTOR shall perform all work in conformance with applicable laws and local
requirements whether or not covered by the specifications and drawings for the work.
Exhibit "R" 1
CONTRACTOR shall pay all sales, consumer, use and other similar taxes required by law,
and shall procure and pay for all permits and licenses necessary for the execution and completion of
the work and labor to be performed hereunder.
2. NOTICE TO PROCEED
The work shall begin no later than twenty (20) calendar days from and after
CONTRACTOR receives written notice to proceed from OWNER and the Agency. Failure by
CONTRACTOR without lawfiul excuse to substantially begin work within twenty (20) days of the
date of receipt of said written notice to proceed shall postpone the next succeeding payment to the
CONTRACTOR for that period of time equivalent to the time between when work was to begin and
when it did begin. OWNER and the Agency shall give said notice to proceed within forty-five (45)
calendar days from and after the date of the signing of this Contract. If the written notice to proceed
is not received by CONTRACTOR within said period, CONTRACTOR reserves the right to
withdraw his bid and proposal.
3. TIME FOR COMPLETION
All work shall be satisfactorily completed within
after the date of when said work is commenced.
calendar days from and
4. CLEANUP
CONTRACTOR shall keep the premises clean and orderly during the course of the work
and remove all debris at the completion of the work. Materials and equipment that have been
removed and replaced as part of the work shall belong to CONTRACTOR.
5. CHARGES AND LIENS
CONTRACTOR shall pay when due all valid charges for labor and material incurred by
CONTRACTOR and used in the construction pursuant to this Contract and shall also be responsible
for keeping the job free of mechanic's liens recorded by any of the persons enumerated in California
Civil Code § 3110. If CONTRACTOR fails to make any payments required pursuant to this
paragraph, or if CONTRACTOR fails to keep said real property free of mechanic's liens incurred by
or under CONTRACTOR or its subcontractors, OWNER may settle said claims and
CONTRACTOR shall notify OWNER and the Agency in writing when a legitimate dispute arises
between CONTRACTOR and any and all persons enumerated in California Civil Code § 3110. In
the event of such dispute, CONTRACTOR shall record a bond. pursuant to California Civil Code §
-3143 releasing said real property from liens of any and all persons. If CONTRACTOR fails or is
unable to obtain said bond, OWNER may obtain and record said bond and deduct the costs from
any payment due CONTRACTOR.
6. CORRECTION AND DEFECTS
CONTRACTOR shall correct any work that fails to conform to the requirements of this
Contract or any documents pursuant thereto, where said failure to conform appears during the
progress of the work. CONTRACTOR shall remedy any defects due to faulty materials, equipment
or workmanship which appear within a period of one (1) year from the date of substantial
completion of the work or within such longer period of time as may be prescribed by law or by the
terms of any applicable special guarantee required by this Contract or any document pursuant
thereto.
Exhibit " RI, 2
7. GUARANTEE
CONTRACTOR guarantees the work performed for a period of one (1) year from the date
of final acceptance of all the work required by this Contract, unless the work required repair or
construction of a roof, in which case CONTRACTOR guarantees the work for a period of five (5)
years. Further, CONTRACTOR shall furnish the OWNER, all manufacturer's and supplier's written
guarantees and warranties covering materials and equipment fiirnished under this Contract with a
copy forwarded to the Agency. CONTRACTOR guarantees all materials to be as specified and all
work to be completed in a workmanlike manner according to standard practice. Unless otherwise
specified, all materials shall be new. CONTRACTOR shall leave the work in a finished condition
as determined by acceptable building standards and to the satisfaction of the Agency.
S. INSPECTIONS
CONTRACTOR and OWNER shall permit the Agency's representatives to examine and
inspect the work. In addition, OWNER shall have the right to inspect any work performed
hereunder to ensure that the work is being and has been performed in accordance with. the
applicable federal, state and/or local requirements and this Contract. CONTRACTOR agrees that
all work found by such inspections not to conform to the applicable requirements to be corrected,
and OWNER shall have the right to withhold payment to CONTRACTOR until it is so corrected.
9. UTILITIES AND COOPERATION
While this Contract is in Rill force and effect, OWNER shall permit CONTRACTOR to use
existing utilities such as light, heat, power and water to carry oiut and complete the work and shall
cooperate with CONTRACTOR to facilitate the performance of coverings and furniture, if and to
the extent necessary,
10. - OCCUPATION OF PREMISES
The premises are to be OCCUPIED / VACANT during the course of the construction work.
11. CHANGE ORDERS
Any changes or deviations from, specifications or terms of this Contract shall be effective
only upon written consent of OWNER, CONTRACTOR and the Agency. All change orders will
specifically describe the work and/or changes, the new contract price and time for completion.
12. NOTICE OF COMPLETION
OWNER shall execute, acknowledge, and record in the manner provided by law, a notice of
completion of work required by this Contract within fifteen (15) calendar days after final inspection
and approval of said work as fiully completed by the Agency.
II, COMPENSATION
13. CONTRACTOR'S FEE
OWNER agrees to pay CONTRACTOR for the performance of all of CONTRACTOR'S covenants
hereunder the completion of all of such work, the total sum of: $ payable in
accordance with the Payment Schedule attached hereto as Exhibit A and incorporated herein by
reference.
Exhibit "R" 3
In accordance with the loan agreement between OWNER and the Agency, progress
payments due CONTRACTOR shall be paid within. twenty (20) calendar days after the Agency
receives CONTRACTOR'S invoice and satisfactory releases of liens or claims for liens by
CONTRACTOR, subcontractors, laborers, and material suppliers for completed work or installed
materials. Final payment of the remainder shall be made thirty-five (35) calendar days after final
inspection and acceptance of all work to performed by CONTRACTOR and CONTRACTOR has
furnished the Agency, for OWNER'S benefit, satisfactory releases of liens or claims for liens by
CONTRACTOR, subcontractors, laborers, and material suppliers. Progress payments and/or final
payment may be withheld on account of defective work not remedied, claims filed, failure of
CONTRACTOR to make payments properly to subcontractors or for labor, materials, or equipment,
damages by another contractor, or unsatisfactory prosecution of the work by CONTRACTOR, as
determined by OWNER and the Agency.
III. INDEMNIFICATION AND INSURANCE
14. INDEMNIFICATION
CONTRACTOR shall indemnify and save harmless OWNER and the Agency, and their
officers and employees, against any and all damages to property and injuries to or death of any
person or persons, including employees or agents of the of Santa Ana, and shall defend, indemnify
and save harmless OWNER and the Agency, their officers and employees, from any and all claims,
demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation,
worker's compensation claims of or by anyone whomsoever in any way resulting from or arising out
of the operations in connection herewith, including operations of subcontractors and acts or
omissions of employees or agents of CONTRACTOR or his subcontractors.
15. INSURANCE
With respect to performance of work under this Contract, CONTRACTOR shall maintain
and shall require its subcontractors, if any, to maintain insurance as described below:
(1) Workers' compensation insurance with statutory limits, and employer's liability
insurance with limits of not less than $500,000 per accident.
(2) Commercial general liability insurance or equivalent form, with a combined single
limit of not less than $300,000 per occurrence. Such insurance shall name OWNER
and the Agency as additional insured.
CONTRACTOR shall (a) furnish properly executed certificates of insurance to OWNER
and the Agency prior to commencement of work under this Contract, which certificates shall clearly
evidence all coverage required above and provide that such insurance shall not be materially
changed or terminated except on 30 days' prior written notice to OWNER and the Agency; and (b)
maintain such insurance from the time work first commences until completion of the work under
this Contract and (c) replace such certificate for policies expiring prior to completion of work under
this Contract.
Exhibit "R" 4
IV. TERMINATION
16. OWNER'S POWER TO TERMINATE
Should CONTRACTOR commit any of the acts specified in this paragraph, OWNER may,
by giving ten (10) calendar days notice in writing thereof to CONTRACTOR, without prejudice to
any other rights or remedies given OWNER by law or by this Contract, terminate the services of
CONTRACTOR under this Contract, take possession of all materials and appliances located on said
real property, and complete the work required by this Contract. CONTRACTOR shall be deemed
to have committed an act specified in this paragraph if it shall:
(a) Be adjudged a bankrupt;
(b) Make a general assignment for the benefit of its creditors;
(c) Refuse or fail to supply enough properly skilled workers or proper materials to
complete the work required by this Contract within the time specified in this Contract;
(d) Fail to make prompt payment to contractors, laborers, or material men for labor
performed on or materials fiirnished to the work required by this Contract;
(e) Persistently disregard any law or ordinance relating to the work required by this
Contract or the completion thereof; or
(1) Otherwise commit a substantial violation of any provision of this Contract.
17. RIGHTS ON TERMINATION BY OWNER
Should OWNER terminate the services of CONTRACTOR under this Contract and
complete the work pursuant to Paragraph 16 of this Contract, CONTRACTOR shall not be entitled
to receive any further payment under this Contract until the work is fully completed. On completion
of said work by OWNER, if the unpaid balance of the contract price exceeds the expenses incurred
by OWNER in completing the work, including any compensation paid by OWNER for managerial,
administrative, or supervisorial services in completing the work, such excess shall be promptly paid
by OWNER to CONTRACTOR. If, however, on completion of the work by OWNER, the
expenses incurred by OWNER in completing said work, including any compensation by OWNER
for managerial, administrative, or supervisorial services in completing said work, exceed the unpaid
balance of the contract price, such excess shall be promptly paid by CONTRACTOR to OWNER.
18. CONTRACTOR'S POWER TO TERMINATE CONTRACT
Should OWNER fail to pay to CONTRACTOR within twenty (20) calendar days after such
becomes due, any amount payable by OWNER, to CONTRACTOR pursuant to this Contract,
CONTRACTOR may, by giving ten (10) calendar days written notice thereof to owner, terminate
its services under this Contract, stop work on said real property, and sue all lawful means, including,
without limitation, actions by Labor of Contractor's Associations induced by CONTRACTOR, to
prevent further work from being done on said real property until all past due payments have been
received by it and OWNER has posted a bond satisfactory to CONTRACTOR for the payment of
all amounts that will thereafter become due to CONTRACTOR under this Contract.
19. LIQUIDATED DAMAGES
CONTRACTOR and OWNER agree that it would either be impractical or extremely
difficult to fix actual damages in the event CONTRACTOR fails to complete the described work
within the time prescribed by this Contract. h-i connection therewith, CONTRACTOR agrees to pay
OWNER liquidated damages for each calendar day beyond the date when completion is required by
hereinabove in Paragraph 3, excluding extensions as stated in Paragraph 24, below, in the following
Exhibit "R" 5
amount: forty dollars ($40.00) per calendar day. The amount of liquidated damages shall be
deducted from the CONTRACTOR'S Retention Payment at project completion. If at any time the
amount of liquidated damages exceed the amount of Retention Payment, there shall not be any
payment to the CONTRACTOR until such time that the amount of payment due the
CONTRACTOR exceeds the amount of liquidated damages.
V. GENERAL
20. ASSIGNMENTS
CONTRACTOR shall not assign any rights under this Contract except upon prior written
authorization of OWNER and the Agency. Any request for assignment must be addressed to the
Agency and written consent of the Agency must be obtained prior to CONTRACTOR obtaining
written consent of OWNER. CONTRACTOR shall not delegate any authority or responsibility that
would in any way purport to relieve him of any obligation imposed by this Contract.
21. NONDISCRIMINATION EQUAL OPPORTUNITY AND FAIR HOUSING
During the performance of this Contract CONTRACTOR agrees to comply with the
provisions of Exhibit B of this Contract, pertaining to nondiscrimination, equal opportunity and fair
housing and employment.
22. CONFLICT OF INTEREST
No person who is an employee, agent, consultant, officer or elected official or appointed
official of the Agency, who exercises or has exercised any fiinctions or responsibilities with respect
to activities assisted. with HOME funds or who are in a position to participate in a decision making
process or gain inside information with regard to these activities, may obtain a financial interest or
benefit from this Contract, or have an interest in any subcontract or contract with respect hereto,
either for themselves or those with whom they have family or business ties, during their temire or
for one year thereafter.
23. RESERVED
24. UNAVOIDABLE DELAYS AND DEFAULTS
The time of completion of this Contract shall be extended by the number of calendar days
which CONTRACTOR is prevented fiom performing work as a result of: inclement weather, acts
of OWNER or the Agency not contemplated by this Contract, the unavailability of workers or
materials due to strifes, accident, acts of God, fire, unusual delays in transportation, unavoidable
casualties, causes beyond CONTRACTOR'S control, or any cause that the Agency may determine
justifies the delay. The CONTRACTOR shall not be entitled to an extension in the number of
calendar days for completion, luiless, within five (5) days from the beginning of such delay, he
notifies the OWNER and the Agency in writing of the causes of the delay, which causes must be
acceptable to the Agency.
25. PERFORMANCE AND PAYMENT BOND
By signing this Contract, OWNER waives any right he may have to a performance and
payment bond in regard to the work performed in accordance with this Contract.
Exhibit "R" 6
26. ARBITRATION CLAUSE
All claims or disputes between the OWNER and CONTRACTOR arising out of or related
to the work shall be decided by arbitration in accordance with the construction industry arbitration
rules of the American Arbitration Association, unless the parties mutually agree otherwise. Initial
arbitration fees will be paid in equal shares by the OWNER and CONTRACTOR, unless otherwise
agreed to by the parties. The OWNER and CONTRACTOR shall submit all disputes or claims,
regardless of the extent of the work's progress, to unless the
parties mutually agree otherwise. Notice of demand for arbitration shall be tiled in writing with the
other party to this Contract, and shall be made within a reasonable time after the dispute has arisen.
The award rendered by the arbitrator shall be final, and judgment may be entered upon it in
accordance with applicable Iaw in any court having jurisdiction thereof. If the arbitrator's award is
in a sum which is less than that which is offered in settlement by the CONTRACTOR, the arbitrator
may award costs and arbitration related attorney's fees in favor of the CONTRACTOR. If the
award of the arbitrator is in a stun greater than that which was offered in settlement by the OWNER,
the arbitrator may award costs and arbitration -related attorney's fees in favor of the OWNER.
27. ATTORNEY'S FEES
Should any litigation be commenced between the parties to this Contract concerning the
work which is the subject of this Contract any provision of this Contract, or the rights and
obligations of either in relation thereto, the party prevailing in the litigation shall be entitled, in
addition to such other relief as may be granted, to a reasonable sum as and for the partys attorneys
fees in the litigation.
28. TIME OF ESSENCE
The limits stated in this Contract are of the essence of this Contract.
29. GENDER AND NUMBER
As used herein, the masculine shall include the feminine and masculine, and the singular
shall include the plural.
30. EXCLUSIVITY OF CONTRACT
This Contract supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to employment of CONTRACTOR by OWNER, and contains all the
covenants and conditions between the parties with respect to employment of CONTRACTOR by
OWNER, and contains all the covenants and conditions .between the parties with respect to such
employment in any manner whatsoever. Each party to this Contract, acknowledges that no
representations, inducements, promises, or agreement, orally or otherwise, have been made by any
party, or anyone acting on behalf of any party, which are not embodied herein, and that any other
agreement or amendment to this Contract shall be effective only if executed in writing and signed
by OWNER and CONTRACTOR and approved by the Agency.
Exhibit "R" 7
IN WITNESS WHEREOF, the parties hereto have executed this Contract on the date and
year first above written.
OWNER
CONTRACTOR (signature of authorized person)
CONTRACTOR (company name)
CONTRACTOR Address
State Contractor License Number
Exhibit "R" 8
EXHIBIT SeAssignment & Assumption Agreement
ASSIGNMENT & ASSUMPTION AGREEMENT
THIS AGREEMENT is made day of
("Seller") and
reference to the following.
RECITALS:
20_ by and between
_("Buyer") with
A. Seller is presently the owner of that certain property more particularly described
in Exhibit "A" to this Agreement, incorporated herein as if set forth in full (the
"Property").
B. The Property is subject to that certain Owner Participation Agreement, dated
between the Seller [ or SelIer's predecessor -in -interest] -with the City of
Santa Ana and the Community Redevelopment Agency of the City of Santa Ana related
to improvements to be made to the Property, the neighborhood surrounding the Property,
including public property (the "OPA"). A Memorandmil of Agreement of the OPA is
recorded as
C. Seller and Buyer have entered into a real property sales agreement under which
Buyer proposes to acquire the Property from the Seller. Under its terms, the OPA runs
with the land, and any purchaser of the Property must acquire it subject to the terms of
the OPA. The OPA also requires this document to be executed by Seller and Buyer so as
to release Seller from the OPA.
THE PARTIES HEREBY AGREE AS FOLLOWS:
1. Seller hereby transfers and assigns to Buyer all of its right, title and. interest in and
to the OPA.
2. Buyer hereby accepts and assumes the rights and obligations of Seller under the
OPA, and hereby releases Seller from any and all liability on or under the OPA from and
after the effective date of transfer of title to the Property from Seller to Buyer.
Dated:
Dated:
Seller
Buyer
10.9 Termination of Owner's Responsibility. Each Owner shall be released from
personal responsibility for any term or condition of this Declaration from and after the date such
Owner transfers its ownership of a Parcel subject to this Declaration, except that such Owner
shall remain responsible for any liability incurred hereunder prior to the date of such transfer.
10.10 Counterparts. This Declaration may be executed in several counterparts, each of
which shall be deemed an original, and all such counterparts shall constitute one and the same
instrnunent.
10.11 Severability. If any provision of this Declaration or portion thereof, or the
application to any person or circumstances, shall to any extent be held invalid, inoperative or
unenforceable, the remainder of this Declaration, or the application of such provision or portion
thereof to any other persons or circumstances, shall not be affected thereby; it shall not be
deemed that any such invalid provision affects the consideration for this Declaration; and each
provision of this Declaration shall be valid and enforceable to the fullest extent permitted by law.
IN WITNESS WHEREOF, the Owners have caused this Declaration of
Covenants, Conditions and Restrictions to be executed as of the date and year first above written.
Date:
OWNERS:
[To be signed exactly as title is vested.]
EXHiBiT E. Page 24 of 24
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY SUBJECT TO DECLARATION
(To be done for each property. Example of format shown below.)
Street Address: 805, 810, 815, 816, 825, 828, 835, 904 Minnie St.
Legal Property Description:
LOTS I THROUGH 13 INCLUSIVE OF TRACT NO. 3547, IN THE CITY
OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS
SHOWN ON A MAP RECORDED IN BOOK 138, PAGES 32 AND 33 OF
MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA
11/15/02 Exhibit A
EXHIBIT B; MAP OF COMMON IMPROVEMENT AREAS
MAP IS PASTED IN.
KEY
imCOMMON
IMPROVEMENT
AREAS
BUILDING
OTHER.
11/15/02 Exhibit B
EXHIBIT C
LEGAL DESCRIPTION OF ANNEXATION PARCELS
STREET ADDRESSES: 923, 927, 931, 935, 939, 1001, 1005, 1009,
1013, 1017, 1021, 1025, 1029, 1101, 1105, 1109, 1113, 1117, 1121,
1125 SOUTH STANDARD AVENUE.
Property Description:
LOTS 1 THROUGH 20, INCLUSIVE AND 38 AND 39 OF TRACT NO.
3547, AND LOTS 21 THROUGH 30 INCLUSIVE OF TRACT NO. 3293, IN
THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 138, PAGES 32
AND 33 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY,
CALIFORNIA
505444.3Vgoctz122281.0009
11/15/02 Exhibit C
EXHIBIT F: Certificate of Compliance
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
City of Santa Ana, Housing Division )
Attn: }
}
This document exempt from
recording fee per Government
Code § 27383.
This is to certify that the premises in the City of Santa Ana described below has been
inspected and that it has been found to be in compliance with respect to the Property
Inspection/Compliance Program described in the Cornerstone Village Owner
Participation Agreement with respect to the Cornerstone Village project.
Street Address:
Assessor's Parcel Number (APN):
Legal Description of Parcel:
NAME OF OWNER:
MAILING ADDRESS:
CITY/STATE/ZIP:
1
Exhibit F:
The issuance of this Certificate of Compliance shall not be deemed or construed to
authorize occupancy or any violation of any ordinance, law or statute.
Housing Manager or Designee Date
COMMENTS
2
Exhibit F:
EXHIBIT G: Description of Facade & Courtyard
Improvements
General Provision: All work by Agency/City shall be in compliance with Exhibit H.
Development of Fagade and Courtyard Improvement Plans:
1. Provision of architectural designs and construction drawings for buildings by
architectural consultant retained by the City.
2. Selection of a range of paint colors by architectural consultant retained by the City:
Type of Facade Improvements (Exact plan to be determined by designs):
1. All exteriors of buildings to be painted; (Elastomeric paint with water -blasting,
patch & repair minor existing cracks & holes only).
2. Facade details to be applied to front facade of building as determined by
architectural designs may include:
• Columns,
• Awnings,
• Fagade extensions,
• New "wood" siding (per design)
• Building appliques,
3. Relocation or resizing of windows as determined by architectural design in front
fagade only. Work to included new window siding, interior and exterior wall
patching, & new window.
4. Courtyard entrance created with a combination of the following elements as
determined by architectural design:
• Steps, • Canopies, wood or metal,
• Fences, • Electrical fixtures in canopies columns.
• Entry gates, • Paved areas,
• Masonry walls,
4. Demolition of existing walls., walks, fencing, etc, as needed
5. Enclosure in conduit of phone and other wires attached to outside of buildings.
Items not included in plans
• Replacement. of fascia boards in • Handrails, guardrails, and stairs
excess of 10 linear feet.
• Major repairs to stucco siding. • Balcony decking
• Replacement of windows • Exterior doors (except for painting) and hardware
• Roofing
Exhibit G: 1 of 2
Type of Courtyard Improvements (Exact plan to be determined by design):
Improvements will vary per building based upon existing conditions as well as tenant and
property owner input, The following are a few elements that might be included:
1. Resurface portions of courtyard with stamped concrete or other decorative treatments.
2. Add landscape elements such as trees or shrubs.
3. Construct amenities such as seating or play areas, if desired by owner and tenants.
4. Introduce community participation elements such as "tiles" drawn by children.
5. Add lighting elements as needed.
6. Improve drainage when feasible or necessary.
Exhibit G: 2 of 2
EXHIBIT H: Property Standards
Cornerstone Village Standard Conditions & Materials
GENERAL REQUIREMENTS
• All dwelling units shall comply with the Federal Department of Housing and Urban
Development Housing Quality Standards and all applicable standards and regulations
adopted by the City of Santa Ana. Should any discrepancy occur between the
various codes, standards and regulations, the more stringent requirement shall apply.
• All newly installed material shall conform to applicable codes, standards, regulations
and ordinances adopted by the City of Santa Ana and the Cornerstone Village
Standard Conditions and Materials. Should any discrepancy occur between the
various codes, standards and regulations, the more stringent requirement shall apply.
• Owner or owner's agent shall obtain all required permits and pay all required fees,
• All material shall be constriction grade or better.
• The appearance and durable utility of the work performed shall conform to
acceptable construction trade and industry standards.
ASPHALT PAVING
A. Asphalt paving shall be void of holes, large cracks, severe surface deterioration,
lifting or settling.
B. In addition, new asphalt paving shall comply with all applicable codes, standards and
requirements adopted by the City of Santa Ana.
CONCRETE PAVING AND WALKS
A. Concrete paving shall be void of holes, large cracks, severe deterioration, lifting or
settling.
B. In addition, new concrete paving shall comply with all applicable codes, standards
and requirements adopted by the City of Santa Ana.
EXTERIOR STAIRS AND RAILINGS
A. Exterior stairs and railings shall be properly supported and structurally sound. They
shall be void of any hazardous deterioration and/or damage. Exposed iron surfaces
shall be weather protected (primed and painted). Exterior stairways shall be properly
lighted.
B. In addition, new stairs and railing shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana,
EXHIBIT H: Page 1 of 8
EXTERIOR DECKS AND LANDINGS
A. Exterior decks and landings shall be properly supported and structurally sound. They
shall be void of any hazardous deterioration and/or damage. Exposed surfaces shall
be weather protected. Decks and landings shall be properly lighted.
B. In addition, new decks and landings shall comply with applicable codes, standards
and requirements adopted by the City of Santa Ana.
WROUGHT IRON FENCING AND GATES
A. Wrought iron fencing and gates shall be properly supported and structurally sound.
They shall be void of any deterioration or damage that is hazardous. Gates shall
operate smoothly and be void of missing or damaged hardware. Exposed iron
surfaces shall be weather protected (primed and painted).
B. In addition, new wrought iron fencing and gates shall comply with applicable codes,
standards and requirements adopted by the City of Santa Ana.
LANDSCAPING
A. Landscaped areas shall be properly maintained and irrigated. Trees and shrubs shall
be properly trimmed and shaped. Landscaped areas shall be free of weeds, debris and
garbage.
B. In addition, the Cornerstone Village Owner's Association shall approve new
landscaping.
ROOFING
A. Roofing shall be properly supported, structurally sound and void of any deterioration
or damage that is hazardous. Roofing shall have a remaining life of five years.
B. In addition, new roofing shall comply with the following standards:
(1) Roofing may be applied over existing roof only if: (1) roof is "solid" and (2)
applying over the existing roof meets City Codes.
(2) Any loose materials shall be cleaned before applying a new roof..
(3) 30 year warranty composition shingles.
(4) %z inch CDX plywood sheathing (or approved equal).
(5) Building overhangs and extensions shall be roofed with the same material as the
main roof with the exception of flat roofs over laundry and other service areas.
These may be of a different material, as long as it complies with City Code, if all
of the other roofs of the building(s) are sloped.
(6) Deteriorated metal jacks and flashing shall be replaced.
EXHIBIT H: Page 2 of 8
EXTERIOR WALLS AND SIDING
A. Exterior walls and siding shall be properly supported and structurally sound. They
shall be void of holes, large cracks and any other hazardous deterioration and/or
damage. Exposed surfaces shall be weather protected (painted).
B. In addition, new walls and siding shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
EXTERIOR DOORS
A. Exterior doors shall operate smoothly and be void of holes, severe deterioration and
damage. Exterior doors shall be void of any damaged or missing hardware. Exposed
surfaces shall be weather protected (primed and painted).
B. In addition, new exterior doors shall comply with the following standards;
(1) Solid core construction (exterior grade),
(2) Completely weather-stripped and installed with an aluminum threshold.
(3) Standard duty lock -set (5 pin tumbler / %2" throw),
(4) Standard duty dead -bolt (5 pin tumbler / 1" throw (keyed outside and thumb turn
inside).
WINDOWS
A. All windows shall operate smoothly and be equipped with venting screens. Windows
shall also be void of cracked or broken glass and any damaged or missing hardware.
,Screens shall not be torn or otherwise damaged.
B. In addition, new windows shall comply with the following standards:
(1) Aluminum frame with baked enamel finish,
(2) Single glazing (or dual if required), locking hardware and fiberglass venting
screens.
EXTERIOR LIGHT FIXTURES
A. Exterior light fixtures shall operate properly and be void of missing globes.
B. In addition, new exterior lighting shall comply with applicable codes, standards and
. requirements adopted by the City of Santa Ana.
INTERIOR WALLS AND CEILINGS
A. Interior walls and ceilings shall be properly supported and structurally sound. interior
walls and ceilings shall be void of holes, large cracks and any hazardous deterioration
and/or damage. Interior walls and ceilings shall be sanitary and void of mold and
fungus. Exposed surfaces shall be protected from moisture and wear (painted).
EXHIBIT H: Page 3 of 8
B. In addition, new walls and ceilings shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
INTERIOR FLOORS
A. Interior floors shall be properly supported and structurally sound. They shall be void
of holes, large cracks and any hazardous deterioration and/or damage.
B. In addition, new floors shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
FLOOR COVERING
A. Floor covering shall be void of any hazardous deterioration and/or damage. Floor
coverings shall be sanitary and void of mold and Ringus.
B. In addition, new floor covering shall comply with the following standards:
(1) Medium duty carpet and 1/2" pad.
(2) Medium duty sheet vinyl, vinyl tiles or ceramic floor tiles.
(3) Proper preparation of the sub -floor.
INTERIOR DOORS
A. Interior doors s shall operate smoothly and be void of missing and/or damaged
hardware. They shall be void of holes and any hazardous deterioration and/or
damage.
B. In addition, new doors shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
ELECTRICAL SWITCHES AND OUTLETS
A. EIectrical switches and outlets shall be operable and void of missing and/or damaged
cover plates. Outlets shall be GFCI protected if located within 6 feet of a sink or any
other open source of water. If existing wiring in building does not provide for ground
wires, than any new GFCI outlet shall be identified "non -grounded". (City shall
supply Association one time with appropriate stickers.)
B. In addition, new electrical switches and outlets shall comply with applicable codes,
standards and requirements adopted by the City of Santa Ana.
LIGHT FIXTURES
A. Light fixtures shall be operable and void of missing and/or damaged globes.
EXHIBIT H: Page 4 of 8
B. In addition, new light futures shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
WATER HEATERS
A. Water heaters shall be operable. They shall be properly strapped and be equipped
with a pressure relief valve and pipe extension.
B. In addition, new water heaters shall be energy efficient and carry a minimum
warranty of 8 years. They shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
WALL HEATERS
A. Wall heaters shall be operable and void of any hazardous deterioration and/or
damage.
B. In addition, new wall heaters shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
SMOKE DETECTORS
A. Smoke detectors shall be operable and located in all bedrooms and the corridors that
provide access to the bedrooms. They shall be routinely inspected and maintained.
CABINETS
A. Cabinets shall be structurally sound and properly secured. They shall be void of
missing and/or damaged doors, drawers and hardware.
B. In addition, new cabinets shall comply with the following standards:
(1) Solid hardwood face frame, doorframes and drawers fronts. (As new materials
become available, substitutions of equal quality may by made only with the
approval of the City and the Association.)
(2) Steel guides and ball bearings.
(3) Self -closing hinges.
(4) Metal door and drawer pulls.
COUNTER TOPS
A. Counter tops shall be structurally sound and properly secured. They shall be void of
any hazardous deterioration and/or damage.
B. In addition, new counter tops shall comply with the following standards:
(1) Durable wood composite constriction.
(2) Durable plastic laminated finish.
EXHIBIT H: Page 5 of 8
(3) Integral back -splash and drip edge.
KITCHEN AND BATH SINKS
A. Sinks shall be sanitary and void of severe chips and deterioration.
B. In addition, new sinks shall comply with the following standards:
(1) Formed steel body.
(2) Porcelain enamel finish or stainless steel.
(3) Self -rimming edge.
KITCHEN AND BATH FAUCETS
A. Faucets shall be operable and void of leaks and severe deterioration.
B. In addition, new faucets shall comply with the following standards:
(1) Solid brass construction.
(2) Polished chrome finish.
(3) Water and energy saving model.
DRAIN LINES
A. Drain lines shall be clear of obstructions and void of leaks. Traps shall be properly
installed where required.
B. In addition, new drain lines shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
GARBAGE DISPOSALS
A. If existing, garbage disposals shall be operable and void of leaks.
B. In addition, new garbage disposals shall comply with the following standards:
(1) Medium duty 1/3 HP motor.
(2) New garbage disposals shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
OVENS, COOK -TOPS AND COMBINATION RANGES
A. Ovens, cook -tops and ranges shall be operable and void of gas leaks. They shall be
void of missing control knobs and inoperable thermostats. They shall be sanitary and
void of any hazardous deterioration and/or damage.
B. In addition, new ovens, cook -tops and ranges shall comply with the following
standards:
(1) Electronic (non -pilot) ignition (if dedicated outlet exists)
EXHIBIT H: Page 6 of 8
(2) Energy efficient model.
(3) New ovens, cook -tops and ranges shall comply with applicable codes, standards
and requirements adopted by the City of Santa Ana
RANGE HOODS
A. Range hoods shall be operable and properly vented. They shall be void of missing
control knobs and filter screens. They shall be sanitary and void of any hazardous
deterioration and/or damage.
B. In addition, new range hoods shall comply with the following standards:
(1) 360-CFM variable speed fan.
(2) Single or double work light.
(3) Removable grease filter.
(4) New range hoods shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
EXHAUST FANS
A. Exhaust fans shall be operable and properly vented. They shall be sanitary and void
of any hazardous deterioration and/or damage.
B. In addition, new range hoods shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
WATER CLOSETS
A. Water closets shall be operable and void of any leaks and/or cracks. They shall be
sanitary and void of any hazardous deterioration and/or damage. They shall be void
of damaged and/or missing toilet seats.
B. In addition, new water closets shall comply with the following standards:
(1) Vitreous china tank and standard bowl.
(2) Water saving model.
(3) New water closets shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
SHOWER STALLS
A. Shower stalls shall be void of any leaks and/or cracks. They shall be sanitary and
void of any hazardous deterioration and/or damage.
B. In addition, new shower stalls shall comply with the following standards:
(1) Better duality fiberglass body.
(2) Integral soap dish and grab bar.
EXHIBIT H: Page 7 of 8
(3) New shower stalls shall comply with applicable codes, standards and
requirements adopted by the City of Santa Ana.
TUBS
A. Tubs shall be void of any leaks and/or cracks. They shall be sanitary and void of any
hazardous deterioration and/or damage.
B. In addition, new hubs shall comply with the following standards:
(1) Formed steel body with porcelain enamel finish or fiberglass construction.
(2) New tubs shall comply with applicable codes, standards and requirements
adopted by the City of Santa Ana.
TUB AND SHOWER DOORS
A. Tub and shower doors shall operate smoothly. They shall be sanitary and void of any
hazardous deterioration and/or damage. Glazing shall be tempered or an approved
equal.
B. In addition, new tub and shower doors shall comply with applicable. codes, standards
and requirements adopted by the City of Santa Ana.
BATH TOWEL BARS AND TOILET PAPER HOLDERS
A. Bath towel bars and toilet paper holders shall be properly secured. Missing and/or
damaged equipment shall be replaced.
INFESTATION
A. All units shall be void of termite, roach, vertnin and rodent infestation.
FIRE EXTINGUISHERS
A. Fire extinguishers shall be operable and fully charged. They shall be properly
maintained and inspected on a regular basis.
EXHIBIT H: Page 8 of 8
EXHIBIT I: Income Certification Form
For Cornerstone Villa e, City Of Santa Ana
Apartment Address
Apartment #
Date
MEMBERS OF HOUSEHOLD
Head of Household (Select one of
tenants if multiple tenants) (1)
Date of
Birth
Relationship to.
`tenant #1 (1)
Social Security #
(If available)
income .(2)
(Indlcate WKIMONR)
:Source- Income
Verification (3)
1.
SAME'
Names of All other Occupants in
Household (Include all children))
2.
3.
4.
5.
Maximum for 1 bedroom apartment}
6.
7.
(Maximum for 2 bedroom apartment)
Only tenants in residence before 112000
Income Qualification Summary for City of Santa Ana
Household Size (Total number of persons living in apartment)
Monthly Rent:
Maximum Rent Allowed
(Maximum rent from Chart provided by Association based on family size
Number of Bedrooms in Apartment (Circle One)
ONE TWO THREE
Household Income (Total income of all persons living in apartment)
(Sum of Incomes listed above. All income of all occupants must be included. See OPA Exhibit H for instructions on how to calculate.)
Maximum Housing Income for Household Size
(Use 80% of Medium Household Income for Household Size from most recent Chart provided to Association by City of Santa Ana)
Exbibit 1: 1 of 11
Page 2: Income Certification Form
For Cornerstone Village, City 4f Santa Ana
Tenant Signatures EMPLOYER INFORMATION
# Tenant Signature Certifies Employer Name Address Phone # Name of Contact
Information provided is accurate. Providing Data
Not required for children under 18 s g
2
3
4
5
6
7
Use these spaces or Supplemental Form
attached for additional employers.
Instructions for Completing Page I information.
(1) For reporting purposes, we need to have one person designated as head of household. If apartment is rented to un-related individuals or more
than one family, select one tenant's name and indicate relationship to that tenant for all other occupants.
(2) All income to be counted. Follow instructions from calculation guide in Exhibit H to ensure you have included all required income.
(3) For Income Verification indicate indicate one of the following: (a) obtained a pay stub for the most recent pay period, (b) obtained an income
tax return for the most recent tax year, (c) conducted a TRW credit or similar search, (d) obtained income verification from the applicant's or
tenant's current employer, (e) obtained an income verification form from the Social Security Administration and/or the California Department of
Social Services if the applicant receives assistance from either of such agencies, or (f) if the applicant is unemployed and/or has no such tax return,
obtained another form of independent verification of income and/or assets noted below.
If (f), indicate source of verification here:
I do hereby certify that the information provided above is accurate and in conformance with the Cornerstone Village
Owners Participation Agreement.
Owner's (Or Owner's Designee's) Signature
Exhibit Z: 2 of 11
Date Signed
SUPPLEMENTAL FORM TO RECORD MULTIPLE EMPLOYERS
Tenant Name (from EMPLOYER INFORMATION
Above
Provide. Name from Previous Employer Name Address Phone # Name of Contact
Pate) Providing Data .
Exhibit I: 3 of 1 I
INCOME COMPUTATIONXERTIFICATION INSTRUCTIONS
FOR CORNERSTONE VILLAGE PROPERTY OWNERS
Introduction:
NOTE TO CORNERSTONE VILLAGE APARTMENT OWNER: This form is designed to assist you in
computing Annual Income in accordance with the method set forth in the Department of Housing and
Urban Project (HUD) Regulations (24 CFR 813). If requirements change, City of Santa Ana will
provide the Cornerstone Village Association with updated instructions. It will be the responsibility of
the Association to distribute this update to Owners and the responsibility of Owners to utilize the most
recent form of computation.
The proceeding income certification form must be filled out entirely by Cornerstone Village apartment
Owner for each apartment unit according to the following instructions. This guide is provided to make
sure all income is included for each individual over the age of 18 years in each household.
Methods used to verify applicants) income:
Owner shall make a good faith effort to verify income of each individual over the age .of 18 years in
each household by taking one or more of the following steps as part of the verification process:
(a) obtain a pay stub for the most recent pay period,
(b) obtain an income tax return for the most recent tax year,
(c) conduct a TRW credit or similar search,
(d) obtain income verification from the applicant's or tenant's current employer,
(e) obtain an income verification form from the Social Security Administration and/or the
California Department of Social Services if the applicant receives assistance from either of such
agencies, or
(f) if the applicant is unemployed and/or has no such tax return, obtain another form of
independent verification of income and/or assets,
Tenant Relationship to Owner:
If any occupant of the unit is the owner of the rental housing project in which the unit is located or has
any family relationship to the Owner; or owns directly or indirectly any interest in the property, this
must be reported to the City of Santa Ana Housing Manager. (For these purposes, indirect ownership
by an individual shall mean ownership by a family member, ownership by a corporation, partnership,
estate or trust in proportion to the ownership or beneficial interest in such corporation, partnership,
estate or trustee held by the individual or a family member; and ownership, direct or indirect, by a
partner of the individual.)
Income Computation Instructions
Income information to be provided on the proceeding Cornerstone Village Income Certification Form
shall include the total anticipated income for all persons over the age „of 18 years for the 12 month
period beginning on the date that tenants move into the unit. The following information should be
used to compute the income of each person over 18 years old living in each apartment unit.
Exhibit I: 4 of 11
1. Income to be included as anticipated income for reporting purposes:
(a) all wages and salaries, overtime pay, commissions, fees, tips and bonuses and either
compensation for personal services, before payroll deductions;
(b) the net income from the operation of a business or profession or from the
rental personal property (without deducting expenditures for business of expansion , amortization
of capital indebtedness or any allowance for depreciation of capital assets.
(c) interest and dividends (including income from assets excluded below)
(d) the full amount of periodic payments received from social security, annuities, insurance policies,
retirement funds, pensions, disability or death.. benefits and other types .of periodic receipts,
including any lump sum payment for the delayed start of a periodic payment,
(e) Payments in lieu of earnings, such as unemployment and disability compensation, workmen's
compensation and severance pay;
(f) the maximum amount of public assistance available to the above persons other than the amount
of any assistance specifically designated for shelter and utilities;
(g) periodic and determinable allowances, such as alimony and child support payments and regular
contributions and gifts received from persons not residing in the dwelling;
(h) all regular pay, special pay and allowances of a member of the Armed Farces (whether or not
living in the dwelling) who is the head of the household or spouse; and
(i) any earned income tax credit to the extent that it exceeds income tax liability.
2. Items to be excluded from anticipated income are:
(a) casual, sporadic or irregular gifts;
(b) amounts which are specifically for or in reimbursement of medical expenses;
(c) lump sum additions to family assets, such as inheritances, insurance payments (including
payments under health and accident insurance and workmen's compensation), capital gains and
settlement for personal or property losses;
(d) amounts of educational scholarships paid directly to the student or the educational institution,
and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees,
books and equipment. Any amounts of such scholarships or payments to veterans not used for the
above purposes are to be included in income;
(e) special pay to a household member who is away from home and exposed to hostile fire;
(f) relocation payments under Title 11 of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1 970;
(g) foster child care payments;
Exhibit I: 5 of 11
(h) the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of
1977;
(i) payments to volunteers under the Domestic Volunteer Service Act of 1973;
(j) payments received under the Alaska Native Claims Settlement Act;
(k) income derived from certain sub -marginal land of the United States that is held in trust for
certain Indian tribes;
(1) payments or allowances made under the Department of Health and Human Services'
Low -Income Home Energy Assistance Program;.
(m) payments received from the Job Training Partnership Act;
(n) income derived from the disposition of funds of the Grand River Band of Ottawa Indians; and
(o) the first $2,000.00 of per capita shares received from judgment funds awarded by -the Indian
Claims Commission or the Court of Claims.
3. Additional Income to be included. (Follow instructions to determine amount.)
Do any of the persons whose income or contributions that are included as part of the income
calculations from above:
(a) have savings, stocks, bonds, equity in real property or other form of capital investment
(excluding the values of necessary items of personal property such as furniture and automobiles
and interests in Indian trust land); _Yes —No
or
(b) disposed of any assets (other than at a foreclosure or bankruptcy sale) during the last two
years at less than fair market value? _Yes No
(c) If the answer to (a) or (b) above is yes, does the combined total value of all such assets owned
or disposed of by all such persons (include total for all persons over 18 years old in the
household) total more than $5,000 Yes No
(d) If the answer to (c) above is yes, then the highest amount derived from the following
calculations must be added to the income being reported.
Calculation method #1:
(1) Take the amount of income expected to be derived from such assets in the 12 month
period beginning on the date of initial occupancy in the unit that you propose to rent.
(2) Subtract from this number, the amount of such income, if any, that is being included from
item 1 (Income to be included as anticipated income for reporting purposes) above.
Calculation method #2
(1) Multiply the amount of income expected to be derived from such assets in the 12 month
period beginning on the date of initial occupancy in the unit that you propose to rent by the
current passbook savings rate to determine what the total annual earnings on that amount
Exhibit I: 6 of 11
would be if invested in a passbook savings account.
(2) Subtract from this number, the amount of such income, if any, that is being included from
item 1 (Income to be included as anticipated income for reporting purposes) above:
4. Student Status.
(a) Are all of the individuals who propose to reside in the unit full-time students*?
Yes No
*A full-time student is an individual enrolled as a full-time student during each of 5 calendar months
during the calendar year in which occupancy of the unit begins at an educational organization which
normally maintains a regular faculty and -curriculum and normally has a regularly enrolled body of
students in attendance and is not an individual pursuing a fulltime course of institutional or farm training
under the supervision of an accredited agent of such an educational organization or of a state or
political subdivision thereof.
(b) If the answer to 3(a) is yes, is at least 1 of the proposed occupants of the unit a husband and
wife entitled to file a joint federal income tax return Yes No
5. Income Verification Forms
The following forms are provided to assist you in verifying tenants incomes. You are not required to
use these however, these forms will assist you to ensure that the information that you provide to the
City of Santa Ana will be as accurate as possible.
Exhibit I: 7 of 11
INCOME VERIFICATION
(for employed persons)
The undersigned employee has applied for a rental unit located in a project with
improvements financed by the City of Santa Ana for persons of low income. Please
indicate below the employee's current annual income from wages, overtime, bonuses,
commissions or any other form of compensation received on a regular basis.
Annual wages $
Overtime $
Bonuses $
Commissions $
Total current income $
I hereby certify that the statements above are true and complete to the best of my
knowledge.
Date:
Signature:
Title:
I hereby grant you permission to disclose my income to in order
that they may determine my income eligibility for rental of an apartment located in their
project which has benefited from improvements financed by the City of Santa Ana.
Date:
Please send form to:
Exhibit t: 8 - of l I
INCOME VERIFICATION
(for Social Security recipients)
TO: SOCIAL SECURITY ADMINISTRATION
Ladies and Gentlemen:
I have applied for a rental unit located in a project with improvements financed by
the City of Santa Ana for persons of low income. I hereby give my consent to
release to the
Specific information is requested below.
Date:
Social Security No.:
Address (Print):
Signature:
Monthly Benefits Began/Will Begin:
Social Security Benefit Amount:
Other Benefits):
Medicare Deduction:
.Are benefits expected to change? Yes
If Yes, please state date and amount:
Amount: $
Name (Print):
Amount:
No
Date of change:
If recipient is not receiving full benefit amount, please indicate reason and date
recipient will start receiving full benefit amount:
Reason:
Date of Resumption:
Date:
Telephone:
Name (Print):
Please send form to:
Amount :$
Signature
Title:
Your very early response will be appreciated.
Exhibit 1: 9 of 11