HomeMy WebLinkAboutSANTA ANA WBBB - 2011(B) documentation of actions undertaken to meet the equal
opportunity requirements of 24 CFR 92.350, which implements Section 3 of the Housing
Development Act of 1968, as amended (12 U.S.C. § 1701u);
(C) documentation and data on the steps taken to implement
Developer's outreach programs to minority-owned and women-owned businesses to meet the
minority outreach requirements of 24 CFR 92.350;
(5) documentation of the steps taken to carry out an affirmative
marketing program in accordance with 24 CFR 92.351, if applicable;
(6) if applicable, records which demonstrate compliance with the
requirements relating to relocation of displaced persons, as described in 24 CFR 92.353. At a
minimum, these shall include project occupancy lists identifying the name and address of all persons
occupying the project property upon Developer's acquisition (i.e., the date on which Developer
obtained site control);
(7) records concerning lead-based paint in accordance with 24 CFR
92.355;
(8) if applicable, records which support any requests for waivers of the
conflict of interest prohibition as stated in 24 CFR 92.356;
(9) records of certifications of contractor qualifications as they relate to
the debarment and suspension requirement as stated in 24 CFR 92.357 and 24 CFR Part 24; and
(10) any other reports issued by other agencies monitoring the Project.
(c) All records pertaining to each calendar year of HOME Program funds must
be retained for the most recent five year period, except that for rental housing projects, records may
be retained for five years after the project completion date; except that records of individual tenant
income verifications, project rents and project inspections must be retained for the most recent five
year period, until five years after the affordability period terminates (24 CFR 92.508). Developer
shall cooperate with the Agency and City to retain all books and records relevant to the Agreement
for a minimum of five years after the expiration of the Agreement and any and all amendments
hereto, or for five years after the conclusion or resolution of any and all audits or litigation relevant to
the Agreement, whichever is later. The Agency, the City, the State, the Office of the Auditor
General of HUD, and/or their representatives shall have unrestricted reasonable access to all
locations, books, and records for the purpose of monitoring, auditing, or otherwise examining said
locations, books, and records with or without prior notice.
(d) If so directed by the Agency, the City, the State or HUD upon termination of
the Agreement, Developer shall cause all records, accounts, documentation and all other materials
relevant to the work to be delivered to the Agency, the City, the State or HUD, as depository.
(e) All records, accounts, documentation and other materials relevant to the
Project shall be accessible at any time to the authorized representatives of the Agency, the City, the
State or HUD, on reasonable prior notice, for the purpose of examination or audit.
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DOCSOC/ 1495827v2/200272-0003
(f) The Agency/City may perform an annual audit at the close of each calendar
year in which these Restrictions are in effect. Developer shall reasonably cooperate with
Agency/City with respect to such audit.
7. Project Operating Budget. Developer must promptly deposit all project income
directly into a segregated depository account established exclusively for the Project ("Project
Operating Account") in accordance with the Operating Budget prepared by Developer and approved
by the Executive Director each year. Withdrawals from this account may be made only in
accordance with the provisions of these Restrictions and the approved Operating Budget, as it may be
revised from time to time with Agency/City approval. Developer may make withdrawals from this
account solely for the payment of project expenses and project fees included in the approved
Operating Budget. Withdrawals from this account for other purposes may be made only with the
prior written approval of the Agency/City.
8. Replacement Reserve Account. Developer must establish or cause to be established a
segregated interest-bearing replacement reserve depository account ("Replacement Reserve
Account") no later than sixty (60) days after the Notice of Completion is filed. Developer must make
monthly deposits from project income into the Replacement Reserve Account in accordance with the
approved Annual Budget, as amended from time to time. Developer may withdraw funds from the
Replacement Reserve Account solely to fund capital improvements for the Project, such as replacing
or repairing structural elements, furniture, fixtures or equipment of the Project that are reasonably
required to preserve the Project. Developer may not withdraw funds from the Replacement Reserve
Account for any other purpose without the prior written approval of the Agency/City.
9. Maintenance of the PropertX. Developer shall, at its sole cost and expense, maintain
or cause to be maintained the interior and exterior of the Project and all Housing Units thereof and
the Property in a decent, safe and sanitary manner, in accordance with the HUD Housing Quality
Standards (HQS) and the maintenance standards required by Section 92.251 of the HOME
Regulations, and in accordance with the standard of maintenance of first class apartments within
Orange County, California. None of the Housing Units in the Project shall at any time be utilized on
a transient basis, nor shall the Property or any portion thereof ever be used as a hotel, motel,
dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest
home, or be converted to condominium ownership. If at any time Developer fails to maintain the
Project or the Property in accordance with these Restrictions and such condition is not corrected
within five (5) days after written notice from City with respect to graffiti, debris, and waste material,
or thirty days after written notice from City with respect to general maintenance, landscaping and
building improvements, then City, in addition to whatever remedy it may have at law or at equity,
shall have the right to enter upon the applicable portion of the Project or the Property and perform all
acts and work necessary to protect, maintain, and preserve the Project and the Property, and to attach
a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from
such acts and work of protection, maintenance, and preservation by City and/or costs of such cure,
including a reasonable administrative charge, which amount shall be promptly paid by Developer to
City upon demand. The liens created under this Section shall be subject and subordinate to the lien
of the mortgage or deed of trust encumbering the Property (or any part of the Property) for the
Primary Loan approved pursuant to the terms of these Restrictions.
(a) Alterations and Repair. Developer shall not remove, demolish or materially
alter any Improvement without Agency/City's prior consent, except to make non-structural repairs
which preserve or increase the Property's value, and shall promptly restore, in a good and
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DOC S OC/ 1495827v2/200272-0003
professional manner, any Improvement (or other aspect or portion of the Property) that is damaged or
destroyed from any cause.
10. Compliance with Laws. Developer shall comply with all Governmental
Requirements (including, without limitation, all requirements relating to' the obtaining of
Governmental Authority approvals), all Governmental Authority approvals and all rights of third
parties, relating to Developer, the Property or Developer's operation of the Project thereon.
11. Covenants Against Discrimination. Except to the extent preferences are permitted or
required by these Restrictions, Developer covenants by and for itself, its successors and assigns, and
all persons claiming under or through them that there shall be no discrimination against or
segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d)
of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the
Property, nor shall the grantee or any person claiming under or through him or her, establish or
permit any practice or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the
Property. Developer shall refrain from restricting the rental, sale or lease of the Property or any
portion thereof on the basis of any of the characteristics listed above. Developer shall also comply
with the equal opportunity and fair housing requirements set forth in Section 92.350 of the HOME
Regulations. The foregoing covenants shall run with the land and remain in effect in perpetuity.
12. Effect of Covenants.
(a) The covenants established in these Restrictions and any amendments hereto
approved by the Agency, City and Developer shall, without regard to technical classification and
designation, be binding for the benefit and in favor of the Agency and City, and their respective
successors and assigns. These Restrictions shall remain in effect for the entire Affordability Period
(i.e. until fifty-five (55) years from the date the final Certificate of Occupancy is issued by the City).
In its discretion, the Agency/City may defer repayment of the Loans or the Agency/City may agree to
such reasonable modifications to the requirements of these Restrictions, as they may determine are
necessary for the continued maintenance and operation of the Affordable Units.
(b) The Agency and City are beneficiaries of the terms and provisions of these
Restrictions and the covenants herein, both for and in its own right and for the purposes of protecting
the interests of the community and other parties, public or private, for whose benefit these
Restrictions and the covenants running with the land have been provided. The Agency and City shall
have the right if the covenants are breached, to exercise all rights and remedies, and to maintain any
actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches
to which they or any other beneficiaries of these Restrictions and covenants are entitled.
(c) The covenants and agreements contained herein shall run with the land and
not be personal obligations of Developer. Upon the sale, conveyance or other transfer of the
Property permitted by the Agreement (a "Transfer") and the assumption of the obligations hereunder
by a transferee, Developer's liability for performance shall be terminated as to any obligation to be
performed hereunder after the date of such Transfer.
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DOCS OC/ 1495827v2/200272-0003
(d) The Agreement and all of the attachments and exhibits thereto shall be
enforceable by the Agency and City in accordance with the terms thereof. Each of the Agreement,
these Restrictions, the Promissory Notes and the Deeds of Trust provide a means of enforcement by
the Agency and/or City if Developer is in breach of its obligations hereunder or thereunder, including
the right to impose liens on the Property, deed restrictions and covenants running with the land 24
CFR 92.5 04(c)(I 3).
13. Default, Remedies and General Provisions. These Restrictions are subject to the
provisions of Articles 2000 and 2100 of the Agreement, which provisions are incorporated herein by
this reference.
[Signatures appear on following pages.]
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DOCS OC/ 1495827v2/200272-0003
IN WITNESS WHEREOF, the parties hereto have caused these Affordable Housing
Restrictions to be executed on the date set forth hereinabove.
ATTEST:
Maria D. Huizar
Agency Secretary
APPROVED AS TO FORM:
By: C <_. CJZ. G.? ?_
Lisa Storck
Assistant Counsel
AGENCY:
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA,
a public body, corporate and politic
By: 1 l -Y, W- ? (-"4,(
Nancy T. Ed ards, Interim Executive Director
[Signatures to Affordability Restrictions on Transfer of Property
continue on following page.]
12
DOCSOC/ 1495827v3/200272-0003
[Signatures to Affordability Restrictions on Transfer of Property
continue from previous page.]
ATTEST:
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
By:: i(1?'I dC-L1?
Lisa Storck
Assistant City Attorney
CITY:
CITY OF SANTA ANA,
a California municipal corporation and
charter city
By:
Paul Walters, Interim City Manager
[Signatures to Affordability Restrictions on Transfer of Property
continue on following page.]
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DOCSOC/ 1495 827v3/200272-0003
[Signatures to Affordability Restrictions on Transfer of Property
continue from previous page.]
DEVELOPER:
SANTA ANA WBBB LP, a California Limited
Partnership
By: ORANGE HOUSING DEVELOPMENT
CORPORATION, a California nonprofit
corporation, its managing general partner
By:-
Eunice Bobert
Chief Executive Officer
By: C&C Development, LLC, a California limited
liability company, its developer general
partner --------
By:
Todd R. Cottle, its member
By: The Cottle Family Trust Dated
3/8/1/9 its member
By: f
Barry A. Cottle, Trustee
14
DOC SOC/ 1495827v2/200272-0003
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange
Iss.
On June 29, 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Todd R. Cottle
Name(s1 of Sianerfs)
who proved to me on the basis of satisfacto
evidence to be the person whose name
mare-subscribed to thewithin instrument
and acknowledged to me that balshefhpy_
executed the same in ex/4h64r-
authorized capacity(ie and that by
,gir
s/ rerun signatur on the instrument the
person or the entity upon behalf of which
CLAUDIA M. FERNANDEZ SHAW the pe son( acted, executed the instrument.
Commission #F 1875128 //
z -. Notary Public - California a I certify under PENALTY OF PERJURY under
orange County the laws of the State of California that the
M Comm. Ex ires Jan 25, 2 foregoing is true and correct.
I?TNE,S/Smy hand and official seal.
Place Notary Seal Above L
OPTIONAL Signature of Notary Public /
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
? Individual
? Corporate Officer - Title(s):
? Partner -- ? Limited ? General
? Attorney in Fact
? Trustee
? Guardian or Conservator
? Other:
Number of Pages:
Top of thumb here
Signer is Representing:
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange
ISS.
On June 29, 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Barry A. Cottle
Name(s) of Signer(s)
who proved to me on the basis of satisfactory
evades to be the person(s whose name(sl
Qare-- subscribed to the within instrument
and acknowledged to me that Q5hetthey
executed the sam in ! nltleir
authorized capacity(, and that by
/herltheir signature(won the instrument the
person(; or the entity upon behalf of which
the person acted, executed the instrument.
UAUUTA M. FEHNANOEL SHAVV
Commission # 1875128
-ri Notary Public - California
' Orange County
My Comm. Expires Jan 25.2014
I certify under PENALTY OF PERJURY under
the laws of the State of California that the
foregoing is true and correct. ?J
SS m hand and official seal.
Place Notary Seal Above
of Notary Public
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
? Individual
? Corporate Officer - Title(s):
? Partner -- ? Limited ? General
? Attorney in Fact
? Trustee
? Guardian or Conservator
? Other:
Number of Pages:
here
Signer is Representing:
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange SS.
On June 29, 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Eunice Bobert
Name(s) of Signer(s)
CLAUDIA M. FERNANDEZ SHAW
Commission # 1875128
Z a Notary Public - California z
z Orange County
My Comm. Expires Jan 25, 2014
Place Notary Seal Above
who proved to me on the bas' of satisfactory
evidence to be the person(sfwhose name
,_-scribed to the within instru ent
and acknowledged to me that
executed the same in d-g&her/their
authorized capacity(ie, and that by
?hellahoir signature) on the instrument the
person( o, or the entity upon behalf of which
the per one acted, executed the instrument.
I certify under PENALTY OF PERJURY under
the laws of the State of California that the
foregoing is true and correct.
ESS m hand an official seal.
/I
t,./ OPTIONAL Signature of Notary Public U
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
? Individual
? Corporate Officer - Title(s):
? Partner -- ? Limited ? General
? Attorney in Fact
? Trustee
? Guardian or Conservator
? Other:
Number of Pages:
Top of thumb here
Signer is Representing:
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange SS.
On August 11, 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Nancy T. Edwards
Name(s) of Signer(s)
who proved to me on the basis of satisfactory
evidence to be the person whose nam
,6.sAw-subscribed to thd within instrument
and acknowledged to me that X/9ey
executed the same in Dais/ 8r rr
authorized capacity(iX)_ and that by
.rhi er1fheir signature on the instrument the
person( q, or the ent ty upon behalf of which
the per o%4 acted, executed the instrument.
CLAUDIA M. FERNANDEZ SHAW
Commission # 1875128 I certify under PENALTY OF PERJURY under
a -: Notary Public - California > the laws of the State of California that the
z Orange County foregoing is true and correct.
My Comm. Ex ires Jan 25, 2014
`fNESS my hand and officia I.
Place Notary Seal Above
Signature of Nota Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
Number of Pages:
? Individual
? Corporate Officer - Title(s):
? Partner -- ? Limited ? General
? Attorney in Fact
? Trustee
? Guardian or Conservator
? Other:
Signer is Representing
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange ISS.
On August 16, 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Paul M. Walters
Name(s) of Signer(s)
who proved to me on the basis of satisfacto
evidence to be the person whose name
t6iare- subscribed to the within instrument
and acknowledged to me that 41kls?
executed the sam in P_ -=rith
authorized capacity(i7), and that by
dgiXl eir signature(4 on the instrument the
person(sor the entity upon behalf of which
the person(g) acted, executed the instrument.
CLAUDIA M. ERNANDEZ SHAW I certify under PENALTY OF PERJURY under
y Commission 1875128 Z Y
a -? Notary Public - California z the laws of the State of California that the
Z orange County foregoing is true and correct.
My Comm. Ex ires Jan 25, 2014
O? /
-,-V ATNESS my hand and official seal.
Place Notary Seal Above
Signature of Notary
Though the information below is not require y law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
Number of Pages:
? Individual
? Corporate Officer - Title(s):
? Partner -- ? Limited ? General
? Attorney in Fact
? Trustee
? Guardian or Conservator
? Other: City Manager
Signer is Representing
City of Santa Ana
ATTACHMENT NO. 1
LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Orange, City of Santa
Ana, and described as follows:
Parcel 1:
A portion of Lots N and 0 of Dresser Tract, in the City of Santa Ana, County of Orange, State of
California, as shown on a map recorded in Book 12, Page 83 of Miscellaneous Maps, of Los Angeles
County, California, described as follows:
Beginning at a point in the North line of Washington Avenue, which is 155 East of the intersection
of the North line of said Washington Avenue with the East line of that certain 12 foot alley or
Street deeded to the City of Santa Ana, By deed recorded Octoberl5, 1913 in Book 234. Page 294 of
Deeds; thence running Northerly parallel to said Alley or Street a distance of 126 feet; thence
Westerly parallel to the North line of said Washington Avenue a distance of 47-2/3 feet, thence
southerly parallel to said Alley a distance of 126 feet; thence Easterly along the North line of said
Washington Avenue a distance of 47-2/3 feet to the point of beginning.
Parcel 2:
A portion of the Easterly 38.17 feet of Lot Eleven of the Blodget and Billings addition of Santa Ana,
in the city of Santa Ana, county of Orange, State of California, as shown on a map recorded in
Book 22, Page 64 of Miscellaneous records of Los Angeles County, California, together with a
portion of Lots N and 0 of the Dresser Tract as shown on a map recorded in book 12, Page 83 of
Miscellaneous records of Los Angeles county, California, bounded and described as a whole as
follows:
Beginning at a point in the Easterly line of certain 12 foot alley conveyed to the City of Santa Ana
by deed recorded Octoberl5, 1913 in Book 234 page 294 of Deeds, which point is 176 feet North of
the intersection of the East line of said alley with the Northerly line of Washington Avenue, and
running thence Easterly parallel with the Northerly line of said Washington Avenue 155 feet; thence
Northerly parallel with the Easterly line of said Alley, 100 feet more or less to the Easterly
extension of the Easterly line of Block Five of the French Street Tract as shown on a map recorded
in Book 4, Page 45 of Miscellaneous Maps, records of Orange County, California; thence Westerly
along said Southerly line of Block Five and the Easterly and Westerly extensions thereof to the
Easterly line of the 12 foot alley above mentioned; thence Southerly along the Easterly line of said
alley 100 feet, more or less, to the point of beginning.
Parcel 3:
Those portions of Los Eleven and Twelve of Blodget and Billings Addition to Santa Ana, in the City
of Santa Ana, County of Orange, State of California, as shown on a map recorded in Book 22 Page 64
of Miscellaneous Records of Los Angeles County, California, together with portions of Lots N and 0
of the Dresser Tract, as shown on a map recorded in Book 12, Page 83 of Miscellaneous Records of
Los Angeles County, California all bounded and described as a whole as follows:
ATTACHMENT NO. 1-1
DOC SOC/ 1495827v2/200272-0003
Beginning at the point of intersection of the Northerly line of Washington Avenue with the Easterly
line of that certain 12 foot alley described in the deed to the City of Santa Ana, recorded October 5,
1913, in Book 234, Page 294 of Deeds, records of Orange County, California; thence Northerly along
the Easterly line of said Alley, 176 feet; thence Easterly, parallel with said Northerly line of
Washington Avenue, 155 feet; thence Southerly, parallel with said Easterly line of said alley, 50 feet;
thence Westerly parallel with said Northerly line of Washington Avenue, 47-2/3 feet; thence
Southerly parallel with said Easterly line of said alley, 126 feet of said Northerly line of Washington
Avenue, thence Westerly along said Northerly line of Washington Avenue, 107-1/3 feet to the point
of beginning
APN: 398-151-11 & 398-151-12
ATTACHMENT NO. 1-2
DOCSOC/ 1495827v2/200272-0003
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
Community Redevelopment Agency of the
City of Santa Ana
20 Civic Center Plaza (M-37) D
Santa Ana, CA 92702
Attn: Executive Director u
This document is exempt from payment of a
recording fee pursuant to Government Code
Sections 27383 and 6103.
NOTICE OF AFFORDABILITY RESTRICTIONS
ON TRANSFER OF PROPERTY
605-611 East Washington, Santa Ana, CA
(Multi-Family Rental Units)
NOTICE IS HEREBY GIVEN, that the Community Redevelopment
Agency of the City of Santa Ana ("Agency"), to carry out certain obligations under
the Community Redevelopment Law of the State of California (Health and Safety
Code Section 33000 et seq.) and the Redevelopment Plan for the Merged
Redevelopment Project Areas, has required Santa Ana WBBB, LP ("Owner"), to
enter into certain affordability covenants and restrictions entitled Affordability
Restrictions on Transfer of Property ("Restrictions"). The Restrictions shall be
recorded with the Orange County Recorder concurrently with this Notice, with
reference to certain real property located at 605-611 East Washington, Santa Ana,
CA ("Property"), designated as Assessor's Parcel Nos. 398-151-11 and 398-151-12
and more particularly described in Attachment No. 1, attached hereto and
incorporated herein by reference.
The affordability covenants and restrictions contained in the Restrictions
include without limitation and as further described in the Restrictions:
The Project consists of a thirty-six (36) unit rental project with
eight (8) two-bedroom units, twenty-seven (27) three bedroom
units, and one (1) five-bedroom unit, all but one unit of which
will be restricted to rental and occupancy by Extremely Low
Income or Very Low Income households paying an Affordable
Rent, determined in accordance with the lower and more
restrictive of the regulations applicable to federal 9% low and
1
D O C S O C/ 1495 823 v2/200272-0003
moderate income tax credits and the California Community
Redevelopment Law, Health and Safety Code Section 33000, et
seq. (and, with respect to ten (10) of the three bedroom units
and the one (1) five bedroom unit, which shall be fixed HOME
units, the regulations implementing the HOME Investments
Partnership Program ("HOME Program") set forth at 24 CFR
§92.1, et seq.) Four (4) of the three-bedroom units are to be
restricted to Extremely Low Income households, and all but one
(1) of the remaining units at the Project shall be restricted to
Very Low Income households for a period of not fewer than 55
years (10 years with respect to the HOME Program
requirements).
This Notice of Affordability Restrictions on Transfer of Property is being
recorded for the purpose of providing notice only and it in no way modifies the
provisions of the Restrictions. In the event of any conflict between this Notice and
the Restrictions, the terms of the Restrictions shall prevail.
The Restrictions have been recorded concurrently herewith and shall remain
in effect for not fewer than fifty-five (55) years.
This Notice is being recorded in the Official Records of Orange County,
California by the Agency in compliance with Health and Safety Code Sections
33334.3(f)(3)(B), as amended, and shall be indexed against the Agency and the
Owner.
[Signatures appear on following pages.]
DOCSOC/ 1495823v2/200272-0003
2
IN WITNESS WHEREOF, the parties hereto have caused this Notice of
Affordability Restrictions on Transfer of Property to be executed as of the date set
forth at the beginning of this Notice.
ATTEST:
Maria D. Huizar
Agency Secretary
APPROVED AS TO FORM:
i
Lisa E. Storck, Assistant Counsel
AGENCY:
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA
ANA
a public body, corporate and politic
By: --hojqw '" I 0"A0
Nancy T. E ards,
Interim Executive Director
[Signatures to Notice of Affordability Restrictions
continue on following page.]
3
D O CS OC/ 1495 823 v3/200272-0003
[Signatures to Notice of Affordability Restrictions
continue from previous page.]
OWNER:
SANTA ANA WBBB LP, a California
Limited Partnership
By: ORANGE HOUSING
DEVELOPMENT CORPORATION,
a California nonprofit corporation, its
managing general partner
4
Eunice Bobert
Chief Executive Officer
By: C&C Development, LLC, a California
limited liability company, its
developer general partner
By:
Todd R. Cottle, its member
By: The Cottle Family Trust Dated
3/8/1987, its member
By3 ?---?
f
Barry A. Cottle, Trustee
4
DOCSOC/ 1495823 v2/200272-0003
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange SS.
On June 29. 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Todd R. Cottle
Name(s) of Signer(s)
who proved to me on the bas' of satisfactory
evidence to be the person whose name(}
u scribed to the within instrument
and acknowledged to me that . eAhey
executed the same in ba4perfth?
authorized capacity(i, and that by
WE it signatur ? on the instrument the
person7, or he entity upon behalf of which
the person() acted, executed the instrument.
CLAUDIA M. FERNANDEZ SHAW
Commission 1675128 I certify under PENALTY OF PERJURY under
Z -r Notary Public - California z the laws of the State of California that the
Orange County foregoing is true and correct.
M Comm. Ex Tres Jan 25, 2014 ,
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signatur of Notary Public
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange SS.
On June 29. 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Barry A. Cottle
Name(s) of Signer(s)
CLAUDIA M. FERNANDEZ SHAW
Commission # 1875128
Z a Notary Public - California z
z Orange County D
I My Comm. Expires Jan 25, 2014
Place Notary Seal Above
who proved to me on the basis of satisfactory
evidence to be the personK whose name(sf
C ),Fe-sidibscribed to the within instrument
and acknowledged to me that ?fshefthtey
executed the sam in l?ktet-/their-
authorized capacity(, and that by
&h aMh-0ir signature(s;f on the instrument the
person(sor the entity upon behalf of which
the person(syacted, executed the instrument.
I certify under PENALTY OF PERJURY under
the laws of the State of California that the
foregoing is true and correct.
TNESS my hand and official seal.
Signature of Notary Public
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange SS.
On August 11, 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Nancy T. Edwards
Name(s) of Signer(s)
who proved to me on the basis of satisfactory
evidence to be the person(W whose name(*
/af e-s--u-bscribed to th within instrument
and acknowledged to me that he/"
executed the same?? in __hisL?
authorized capacity(ies?", and that by
hisLkO fteir signaturowon the instrument the
)ersonTO or the entity upon behalf of which
the per acted, executed the instrument.
CLAUDIA M. FERNANDEZ SHAW
Commission # 1875128
i -: Notary Public - California i I certify under PENALTY OF PERJURY under
z Orange County the laws of the State of California that the
My Comm. Ex ices Jan 25, 2014 foregoing is true and correct.
TNESS my hand n?Jdo6fficial sea
Place Notary Seal Above c(
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Signer is Representing
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange SS.
On June 29, 2011 before me Claudia M. FernandezShaw, Notary Public
Date Name and Title of Officer (e.g., "Jane Doe, Notary Public")
personally appeared Eunice Bobert
Name(s) of Signer(s)
CLAUDIA M. FERNANDEZ SHAW
Commission # 1875128
-r' Notary Public - California
Orange County
My Comm. ExDIreS Jan 25.2014
Place Notary Seal Above
who proved to me on the basis of satisfactory
evidence to be the person(,a5 whose name(
t-Qa1e subscribed to t4d within instrument
and acknowledged to me that d/_shaghey
executed the same in ?><!ieFAheit
authorized capacity(ie?a', and that by
113_ r t eir signature(,sy on the instrument the
person ), or the entity upon behalf of which
the pe son0 acted, executed the instrument.
I certify under PENALTY OF PERJURY under
the laws of the State of California that the
foregoing is true and correct.
NESS IT)y hand and official seal.
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Top of
Signer is Representing:
ATTACHMENT NO. 1 TO EXHIBIT I
LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Orange,
City of Santa Ana, and described as follows:
Parcel 1:
A portion of Lots N and 0 of Dresser Tract, in the City of Santa Ana, County of
Orange, State of California, as shown on a map recorded in Book 12, Page 83 of
Miscellaneous Maps, of Los Angeles County, California, described as follows:
Beginning at a point in the North line of Washington Avenue, which is 155 East
of the intersection of the North line of said Washington Avenue with the East line
of that certain 12 foot alley or Street deeded to the City of Santa Ana, By deed
recorded Octoberl5, 1913 in Book 234. Page 294 of Deeds; thence running
Northerly parallel to said Alley or Street a distance of 126 feet; thence Westerly
parallel to the North line of said Washington Avenue a distance of 47-2/3 feet,
thence southerly parallel to said Alley a distance of 126 feet; thence Easterly along
the North line of said Washington Avenue a distance of 47-2/3 feet to the point of
beginning.
Parcel 2:
A portion of the Easterly 38.17 feet of Lot Eleven of the Blodget and Billings
addition of Santa Ana, in the city of Santa Ana, county of Orange, State of
California, as shown on a map recorded in Book 22, Page 64 of Miscellaneous
records of Los Angeles County, California, together with a portion of Lots N and 0
of the Dresser Tract as shown on a map recorded in book 12, Page 83 of
Miscellaneous records of Los Angeles county, California, bounded and described
as a whole as follows:
Beginning at a point in the Easterly line of certain 12 foot alley conveyed to the
City of Santa Ana by deed recorded Octoberl5, 1913 in Book 234 page 294 of
Deeds, which point is 176 feet North of the intersection of the East line of said
alley with the Northerly line of Washington Avenue, and running thence Easterly
parallel with the Northerly line of said Washington Avenue 155 feet; thence
Northerly parallel with the Easterly line of said Alley, 100 feet more or less to the
Easterly extension of the Easterly line of Block Five of the French Street Tract as
shown on a map recorded in Book 4, Page 45 of Miscellaneous Maps, records of
Attachment No. 1-1
DOCSOC/ 1495823 v2/200272-0003
Orange County, California; thence Westerly along said Southerly line of Block
Five and the Easterly and Westerly extensions thereof to the Easterly line of the 12
foot alley above mentioned; thence Southerly along the Easterly line of said alley
100 feet, more or less, to the point of beginning.
Parcel 3:
Those portions of Los Eleven and Twelve of Blodget and Billings Addition to
Santa Ana, in the City of Santa Ana, County of Orange, State of California, as
shown on a map recorded in Book 22 Page 64 of Miscellaneous Records of Los
Angeles County, California, together with portions of Lots N and 0 of the Dresser
Tract, as shown on a map recorded in Book 12, Page 83 of Miscellaneous Records of
Los Angeles County, California all bounded and described as a whole as follows:
Beginning at the point of intersection of the Northerly line of Washington Avenue
with the Easterly line of that certain 12 foot alley described in the deed to the City
of Santa Ana, recorded October 5, 1913, in Book 234, Page 294 of Deeds, records
of Orange County, California; thence Northerly along the Easterly line of said
Alley, 176 feet; thence Easterly, parallel with said Northerly line of Washington
Avenue, 155 feet; thence Southerly, parallel with said Easterly line of said alley, 50
feet; thence Westerly parallel with said Northerly line of Washington Avenue, 47-
2/3 feet; thence Southerly parallel with said Easterly line of said alley, 126 feet of
said Northerly line of Washington Avenue, thence Westerly along said Northerly
line of Washington Avenue, 107-1/3 feet to the point of beginning
APN: 398-151-11 & 398-151-12
DOCSOC/ 1495823v2/200272-0003
Attachment No. 1-2
o'
cv
v
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
Community Redevelopment Agency
of the City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92702
Attention: Executive Director
m(?OpC!
SPACE ABOVE THIS LINE FOR RECORDING USE
FREE RECORDING REQUESTED
[Government Code Section 6103]
AFFORDABILITY RESTRICTIONS
ON TRANSFER OF PROPERTY
(605-611 East Washington, Santa Ana, CA)
These AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
("Restrictions") are entered into as of the June 17, 2011, by and among SANTA ANA WBBB, L.P.,
a California limited partnership ("Developer"), the CITY OF SANTA ANA, a California municipal
corporation and charter city ("City"), and the COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF SANTA ANA, a public body, corporate and politic ("Agency").
RECITALS:
A. Developer is the owner of that certain real property located at 605-611 East
Washington ("Property") located in the City of Santa Ana more particularly described in Attachment
No. 1, which is attached hereto and incorporated herein by this reference.
B. For the purpose of providing thirty-five (35) residential rental units of housing that
will be affordable to Extremely Low Income and Very Low Income households ("Affordable
Units"), Developer, City and Agency have entered into that certain Loan Agreement, dated
concurrently herewith ("Agreement"). The Agreement, along with all of the exhibits and
attachments attached thereto, are incorporated herein by this reference (any capitalized term that is
not otherwise defined in these Restrictions shall have the meaning ascribed to such term in the
Agreement).
C. The Agreement provides, among other things, for the use of the Property for
Affordable Housing and the restriction of the Affordable Units to rental to and occupancy by
Extremely Low Income and Very Low Income households, all at an Affordable Rent.
D. The Agreement contains certain provisions relating to the use, maintenance and
operation of the Property.
NOW, THEREFORE, DEVELOPER, CITY AND AGENCY COVENANT AND
AGREE AS FOLLOWS:
DOC SOC/ 1495827v2/200272-0003
1. Developer covenants and agrees (for itself, its successors, its assigns, and every
successor in interest to the Property or any part thereof) that Developer, such successors, and such
assigns shall use the Property exclusively to provide affordable housing for Extremely Low Income
and Very Low Income households, as provided in these Restrictions and in the Agreement.
2. Affordability Requirements Use and Maintenance of the Propert
y
2.1 Use Covenants and Restrictions.
(a) Developer agrees and covenants, which covenants shall run with the
land and bind Developer, its successors, its assign and every successor in interest to the Property that
Developer will make all but one of the Housing Units on the Property available to Extremely Low
Income and Very Low Income households at rents affordable to such households throughout the
entire Affordability Period. The HOME Program requirements applicable to the HOME Units shall
be enforced until the date that is fifteen (15) years after the date on which the City reports the Project
as complete to HUD. Upon expiration of the 15 year HOME Program compliance period, the
Agency/City shall require that all Affordable Units remain affordable, with rents calculated based on
assumed household size at the same income levels, as required by the Redevelopment Law and
adopted Agency guidelines. Developer shall periodically calculate and certify the income of the
tenants of the Affordable Units in accordance with the Redevelopment Law, the HOME Regulations,
and the NSP Requirements; if directed by the Executive Director, Developer shall calculate and
certify the income of the tenants of the Affordable Units annually.
(b) The Project shall consist of thirty-six (36) Housing Units. Thirty-five
(35) of the Housing Units shall be Affordable Units. Eleven (11) of the Affordable Units shall also
be HOME Units. The HOME Units shall be fixed units and shall be distributed throughout the
Project with comparable amenities to the other units, as approved by the Executive Director.
2.2 Affordable Rent. The Affordable Units shall be rented to and occupied
exclusively by Extremely Low Income and Very Low Income households who shall be charged an
Affordable Rent calculated pursuant to this Section 2.2:
No. Affordable No. HOME
Income Rest. Bedrooms Gross Rent Units Units Max Income
Very low-50% Two Bedroom $981 8 0 $41,850
Very low-50% Three Bedroom $1134 22 10 $50,200
Very low-50% Five Bedroom $1395 1 1 $60,350
Ext. low-30% Three Bedroom $724 4 0 $30,100
Total Affordable Units 35 11
(a) The Affordable Rents for Very Low Income households shall not
exceed the lower and more restrictive of.
(i) The very low income rents as calculated under the
methodology presented in California Health and Safety Code Section 50053(b)(2); or
(ii) The standards set forth by the California Tax Credit
Allocation Committee (TCAC); or
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DOCSOC/ 1495827v2/200272-0003
(iii) With respect to the HOME Units, the Low HOME rent
amount set forth in the HOME Regulations.
(b) The Affordable Rents for Extremely Low Income households shall
not exceed the lower and more restrictive of.
(i) The extremely low income rents as calculated under the
methodology presented in California Health and Safety Code Section 50053(b)(1); or
(ii) The standards set forth by the California Tax Credit
Allocation Committee (TCAC).
(c) Utility allowances shall be deducted from the maximum gross
monthly rent charged to tenants of the Affordable Units. The Santa Ana Housing Authority
publishes the utility allowance.
2.3 Rent Increases. On an annual basis, the Agency/City shall provide the
Developer with the maximum allowable schedule of rents for the Property. In no event can
Developer charge any tenant more than such amount.
3. Management Plan. Developer shall submit to the Executive Director a Management
Plan in a form that is acceptable to the Executive Director, including, but not limited to, the
components listed below. Approval of the Management Plan must be obtained from the Executive
Director prior to any disbursement of the Loans to the Developer. Developer shall manage the units
in accordance with the approved Management Plan, including such amendments as may be approved
in writing from time to time by the Executive Director, for the term of the income and rent
restrictions contained in these Restrictions. The components of the Management Plan shall include:
(a) Management Agent. Developer shall submit the name and qualifications of
the proposed Management Agent. The Executive Director shall approve or disapprove the proposed
Management Agent in writing based on the experience and qualifications of the Management Agent.
(b) Management Agreement. Developer shall submit a copy of the proposed
management agreement specifying the amount of the management fee, and the relationship and
division of responsibilities between Developer and Management Agent.
(c) Annual Budget and Projected Cash Flows. Prior to the first disbursement of
the Loans, and annually thereafter not later than one hundred fifty (150) days after the close of each
calendar year thereafter, Developer shall submit a projected operating budget and cash flow to the
Executive Director. The budget and cash flow shall be in a form that is acceptable to the Executive
Director.
(d) Tenant Selection Policies. Developer shall adopt and include as part of its
Management Plan written tenant selection policies and criteria for the Affordable Units that meet
each of the following requirements:
(i) Developer's tenant selection policies shall be consistent with the
purpose of providing housing for Extremely Low Income and Very Low Income households;
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DOCSOC/ 1495827v2/200272-0003
(ii) Such policies shall be reasonably related to program eligibility and
the applicants' ability to perform the obligations of the approved resident lease agreement;
(iii) Such policies shall give reasonable consideration to the housing needs
of senior citizens that would have a federal preference under 42 U.S.C. § 12744 of the Cranston-
Gonzalez National Affordable Housing Act of 1992;
(iv) Such policies shall provide for:
(A) The selection of tenants from a written waiting list approved
by the Agency and City, in the chronological order of their application, insofar as is practicable; and
(B) The prompt written notification to any rejected applicant of
the grounds for any rejection;
(v) Such policies shall provide first priority in the selection of qualified
eligible tenants to households that are referred by the Agency or City; and
(vi) Such policies shall carry out the adopted affirmative marketing
procedures of the City of Santa Ana, which are designed to provide information and otherwise attract
eligible persons from all racial, ethnic and gender groups in the housing market area to the units.
Prior to the date of these Restrictions, City has provided Developer with the City's affirmative
marketing procedures.
(vii) Developer and Agency shall cooperate to effectuate the tenant
selection policies described in this Section prior to the initial renting, or upon occurrence of a
vacancy, and the re-renting of any Affordable Unit.
(e) Termination of Tenancy. Developer, its successors or assigns, must adhere to
federal and state law requirements with regard to termination of any tenancy of each and every
Affordable Unit. Developer may not terminate the tenancy or refuse to renew the lease of a tenant of
an Affordable Unit within the Project except for failure to pay rent, serious or repeated violation of
the terms and conditions of the lease; for violation of applicable federal, state, or local law; or for
other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by
Developer's service upon the tenant of a written notice specifying the grounds for the action.
(f) Termination of Management Contract; Replacement of Management Agent.
If at any time the Agency determines that the units are not being managed or maintained in
accordance with the approved Management Plan, Developer shall change the management agent or
the practices complained of, upon receipt of written notice from the Executive Director. The
Executive Director may require Developer to change management practices or to terminate the
management contract and designate and retain a different management agent. The management
contract shall provide that it is subject to termination by Developer without penalty, upon thirty (30)
days prior written notice, at the direction of the Executive Director. Within ten (10) days following a
direction of the Executive Director to replace the management agent, the Developer shall select
another management agent or make other arrangements satisfactory to the Executive Director or
designee for continuing management of the Housing Units.
4
DOCSOC/ 1495827v2/200272-0003
4. Vouchers. Developer, its successors and assigns, shall not refuse to lease a unit to a
holder of a rental voucher under 24 CFR part 887 (Housing Choice Voucher Program) or to a holder
of a comparable document evidencing participation in a tenant-based assistance program because of
the status of the prospective tenant as a holder of such certificate of family participation, rental
voucher, or comparable tenant-based assistance document. Total rents charged to such tenants,
including the tenant contribution and rental assistance, shall not exceed the Affordable Rent
permitted to be charged pursuant to these Restrictions, the Agreement, the NSP Documents, and the
NSP Requirements.
5. Lease Requirements. Developer shall execute or cause to be executed a written lease
in a form approved in writing by Agency and City (other than immaterial modifications thereto)
which complies with the applicable HOME Regulations, the Redevelopment Law, the NSP
Requirements and all applicable federal, state and local laws and regulations, with each tenant
household identifying by name all permitted occupants, both adults and minors, occupying each unit.
The lease between tenants occupying the units and Developer must be for not less than one year,
unless by mutual agreement between the tenant and Developer. The lease may not contain any of the
following provisions (in which references to "owner" shall mean the Developer, its successors or
assigns):
(a) Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor
of the owner in a lawsuit brought in connection with the lease;
(b) Agreement by the tenant that the owner may take, hold, or sell personal
property of household members without notice to the tenant and a court decision on the rights of the
parties. This prohibition, however, does not apply to an agreement by the tenant concerning
disposition of personal property remaining in the housing unit after the tenant has moved out of the
Unit. The owner may dispose of this personal property in accordance with state law;
(c) Agreement by the tenant not to hold the owner or the owner's agent legally
responsible for any action or failure to act, whether intentional or negligent;
(d) Agreement of the tenant that the owner may institute a lawsuit without notice
to the tenant;
(e) Agreement by the tenant that the owner may evict the tenant or household
members without instituting a civil court proceeding in which the tenant has the opportunity to
present a defense, or before a court decision on the rights of the parties;
(f) Agreement by the tenant to waive any right to a trial by jury;
(g) Agreement by the tenant to waive the tenant's right to appeal, or to otherwise
challenge in court, a court decision in connection with the lease; and
(h) Agreement by the tenant to pay attorney's fees or other legal costs even if the
tenant wins in a court proceeding by the owner against the tenant The tenant, however; may be
obligated to pay costs if the tenant loses.
6. Monitoring and Recordkeeping. Throughout the Affordability Period, Developer
shall comply with all applicable recordkeeping and monitoring requirements set forth in the
5
D OC S OC/ 1495 82 7v2/200272-0003
Redevelopment Law, the NSP Requirements and the HOME Program, including Section 92.508 (or
successor regulation) of the HOME Regulations and Section 33418 of the Redevelopment Law, and
shall annually complete and submit to Agency/City a Certification of Continuing Program
Compliance substantially in the form of Exhibit N to the Agreement, or other form provided by the
Executive Director. Representatives of the Agency and City shall be entitled to enter the Property,
upon at least twenty-four (24) hours notice, to monitor compliance with these Restrictions, to inspect
the records of the Project, and to conduct an independent audit or inspection of such records.
Developer acknowledges and agrees that an Agency and/or City representative will inspect and audit
the Project on not less than an annual basis to confirm Developer's compliance with the
management, maintenance, and operational requirements set forth in this Agreement (including,
without limitation, compliance with the Redevelopment Law, HOME Regulations, and NSP
Requirements). Developer agrees to cooperate with City in making the Property and all Housing
Units thereon available for such inspection(s) or audit(s). Developer agrees to maintain records in a
businesslike manner, to make such records available to the Agency and City upon twenty-four (24)
hours notice, and to maintain such records for the entire Affordability Period. Developer shall cure
any defects or deficiencies found by the Agency/City while conducting such inspections within two
weeks of written notice thereof, or such longer period as is reasonable within the sole discretion of
the Agency/City.
Without limiting the generality of the foregoing, Developer shall prepare, maintain and
submit to the Agency, as appropriate, the following records and reports in compliance with Health
and Safety Code Section 33418 and 24 CFR 92.504(c)(12):
(a) Annual Reports. Developer shall file with the Agency an Annual Report
(herein referred to as the "Annual Report") within one hundred fifty (150) days following the end of
each calendar year, commencing with the end of the calendar year (or portion thereof) in which the
first disbursement of the Loans occurs. The Annual Report shall contain a certification by Developer
as to such information as the Executive Director may then require, including, but not limited to, the
following:
(1) The fiscal condition of the Project, including the Annual Budget; an
updated Project cash flow projection; a financial statement for the previous calendar year that
includes a balance sheet and a profit and loss statement indicating any surplus or deficit in operating
accounts; a detailed itemized listing of income and expenses; and the amounts contained in any fiscal
reserves. Such Annual Budget and financial statement shall be prepared in accordance with
generally accepted accounting practices, consistently applied. The Executive Director may require
that the financial statement be audited at Developer's expense by an independent certified public
accountant acceptable to the Executive Director. Each annual financial statement submitted by
Developer shall include a report showing the amount of Residual Receipts produced by the Project in
the applicable year, to enable the City and Agency to evaluate the amount of Residual Receipts
payments required to be made on the Loans for such year, as required by the Promissory Notes.
(2) Any substantial physical defects in the Project, including a description
of any major repair or maintenance work undertaken or needed in the previous and current years.
Such statement shall describe what steps Developer has taken in order to maintain the Project in a
safe and sanitary condition in accordance with applicable housing and building codes and the
property standards set forth in 24 CFR 92.251.
6
DOC SOC/ 1495827v2/200272-0003
(3) A report regarding the occupancy of the Affordable Units indicating
the income of each current resident and the current rents charged each resident and whether those
rents include utilities, including records that demonstrate that the Project meets the requirements of
24 CFR 92.253 for tenant and participant protection under the HOME Program and the requirements
of the Agreement and these Restrictions.
(4) General management performance, including tenant relations and
other relevant information.
(5) Records that demonstrate that the Affordable Units meet the
affordability requirements of 24 CFR 92.252 and Section 50053 of the California Health and Safety
Code, for the required period of affordability according to Section 33334.3 of the California Health
and Safety Code.
(6) Evidence of a currently paid hazard insurance policy in accordance
with the requirements of the Agency Deed of Trust and the City Deed of Trust, with a loss payable
endorsement naming the Agency and City as a loss payees together with other approved lenders (as
their interests may appear), with a "Replacement Cost Endorsement" in amount sufficient to prevent
Developer or Agency/City from becoming a co-insurer under the terms of the policy, but in any event
in an amount not less than 100% of the then full replacement cost, to be determined at least once
annually and subject to reasonable approval by the Executive Director.
(7) Evidence of a currently paid liability insurance policy, naming the
Agency and City as additional insureds and in a form approved by legal counsel to the Agency and
City, with coverage as described in the Agreement.
(8) Termite reports pertaining to the Property shall be provided every
fifth (5th) year.
(9) Such other information as may be reasonably required by the
Executive Director or his/her designee.
(b) Records and Audits. Developer shall maintain the following records, and
make them available for inspection by the Agency, the City, the State or HUD:
(1) records which demonstrate that the project meets the property
standard specified in 24 CFR 92.251;
(2) records, for each Affordable Unit, which demonstrates that the project
meets the requirements of 24 CFR 92.252;
(3) records which demonstrate compliance with the tenant and participant
protections, as specified in 24 Section 29.253;
(4) records which demonstrate compliance with the Equal Opportunity
and Fair Housing requirements outlined in these Restrictions, including:
(A) data on the extent to which each racial and ethnic group and
single head of household (by gender of head of household) have applied for, participated in, or
benefited from, any program or activity funded in whole or in part with HOME funds;
7
DOC SOC/ 1495827v2/200272-0003