HomeMy WebLinkAbout815 N. HARBOR, L.P. (NEIGHBORHOOD STABILIZATION PROGRAM)/AFFORDABILTY RESTRICTIONS 1AA- 2015 -030
FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 6103 & 27383
When Recorded Mail to:
City of Santa Ana
Community Development Agency
20 Civic Center Plaza
P.O. Box 1988 (M -37)
Santa Ana, California 92702
Attn: Housing Manager
AMENDMENT TO AGREEMENTS
BY AND BETWEEN TI3E CITY OF SANTA ANA
AND 815 HARBOR L.P.
This Amendment to Agreements is executed by and between the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California (hereinafter "City ") and 815 Harbor, L.P. ( "Developer ") with reference to
the following:
RECITALS:
A. On March 1, 2010, Orange Housing Development Corporation ( "OHDC ") a non - profit
501(c)(3), and C &C Development, a for -profit developer, were awarded the contract to
implement the multi- family rental program funded by the Federal Neighborhood
Stabilization Program ( "NSP "). They have formed a Limited Partnership named "815
Harbor, LP" for financing purposes.
B. On September 16, 2013, City and Developer entered into the following agreements for
Developer to purchase the property located at 815 N. Harbor Street, within the City of
Santa Ana, California, to develop a mixed use project consisting of approximately
seventy (70) unit multi - family residential housing development with a community room
(the "Project "): Loan Agreement By and Between the City of Santa Ana and 815 N.
Harbor L.P. which was recorded in the Official Records, Orange County California on
November 4, 2013 ( #2013000613987), and the Affordability Restrictions on Transfer of
Property which was recorded in the Official Records, Orange County California on
November 4, 2013 ( #2013000613986) (collectively said "Agreements "). The parties now
desire to amend said Agreements to increase the City Loan and revise the affordability
levels and unit mix.
WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to
all the terms and conditions of said Agreement, except those amended in this Amendment to
Agreements, the parties agree as follows:
1. Section 3 of the Loan Agreement, "City Loan ", and the definitions of "City Loan" and
"City Promissory Note" in the Definitions Section of said Agreements, shall be amended to include
an additional Eight Hundred Eighty Thousand Dollars ($880,000.00) in NSP funds. An additional
City Promissory Note shall be executed by Developer in favor of the City to evidence the obligation
of Developer to repay the City Loan through residual receipts as further described in the Promissory
Note in the form attached hereto as Exhibit A. The total City Loan of NSP funds to Developer for
this Project shall not exceed $2,880,000.00 pursuant to said Agreement and this Amendment of
Agreements.
2. The definition of "Extremely Low Income" and any references thereto in said
Agreements is removed in its entirety.
3. The "Use Covenants and Restrictions" found in section 3.1(b) of the Affordability
Restrictions on Transfer of Property and Section 7.1(b) of the Loan Agreement with the
accompanying Affordability Levels/Unit Mix set forth in Section 7.2 are hereby deleted in their
entirety and replaced as set forth below:
Bedroom Size
50% AMI
60% AMI
110% AMI
Total
2 Bedroom
-
1
-
1
3 Bedroom
7
48
13
68
Totals
7
49
13
69
*The remaining unit will be a 3- bedroom unit reserved for the on -site manager.
4. Except as hereinabove modified, the terms and conditions of said Agreements remain
unchanged and in full force and effect.
(Signatures on Following Page)
2
IN WITNESS WHEREOF, the parties heleto have executed this Amendment to Agreements effective the
date and year first above written.
ATTEST:
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
DEVELOPER:
815 Harbor, LP, a California limited partnership
By: OHDC 815 N Harbor, LLC,
a California limited liability company,
its managing general partner
CITY OF SANTA ANA-,
!
44_�
David Cavazos
City Manager
By: Orange Housing Development Corporation,
a California nonprofit corporation, its sole member
By:
Eunice Bobert, Chief Executive Officer
By: C &C 815 N Harbor, LLC,
a California limited liability company,
its developer general partner
By: Todd R. R. Cottle, its member
By: The Cottle Family Trust Dated 3/8/1987, its member
By --
ai7y A. Cottle, Trustee
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 26th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Eunice Bobert
who proved to me on the basis of satisfactory evidence to be the person whose name }G�ere
subscribed to the within instrument and acknowledged to me that f0/st� /thq executed he same in
hiFhef4ieir authorized capacity(, and that by_P /her4tht-ir signature(Xon the instrument the
person( or the entity upon beh If of which the perso, ) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
t R, CLAUDIA M.FERNANDEZ -SHAW
WITNESS my hand and official seal. ScoNatar z y Public • Calilornia z
_ Orange County
_ My Comm. Expires Jan 25, 2018'
Sign (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 26th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Barry Cottle
who proved to me on the basis of satisfactory evidence to be the person () whose named) are
subscribed to the within instrument and acknowledged to me thatJOshe/they executed the same in
%her/tlieiir -F uthorized capacity(i�A), and that by-W/her/fheir signatureKon the instrument the
person( 71 or the entity upon behalf of which the personVYacted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal. I n Commission # 2053995 e
=+ - Notary Public - California z
z t:
Orange County a
My Comm. Ex Tres Jan 25, 2018
Stgaat (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 26th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Todd Cottle
who proved to me on the basis of satisfactory evidence to be the person whose nam re
subscribed to within instrument and acknowledged to me that JGs fthey-executed the same in
I her/th�r authorized capacity(, and that bykkjis�herbtt�of s gnature(� on the instrument the
person(sy, or the entity upon behalf of which the person(�acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
.:_ CLAUDIA M. FERNANDE-Z SHAW
Commission # 2053995
Z -s�; Notary Public • California =
Orange County >
My Comm. Expires Jan 25, 2016
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 30th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared David Cavazos
who proved to me on the basis of satisfactory evidence to be the person( whose name (gjii9/,are
subscribed to the within instrument nd acknowledged to me that he /shesthey executed fhe same in
,,_I r&mir- authorized capacity Ks), s), and that byd2 /heF4he +r signatures) on the instrument the
person( or the entity upon behalf of which the person(�acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
,;,..,. EZ
WITNESS my hand and official seal. -SHAW
a • C CLAUDIA M. FERNAND Commission a 2053995 [
z ° _� i Notary Public • Calitornia i
z °' Orange County '
` M Comm. Ez fires Jan 25, 2018'
�s
J
:Z:
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
City of Santa Ana
Community Development Agency
Housing Department M -37
20 Civic Center Plaza, 6th Floor
P.O. Box 1988
Santa Ana, California 92702
SPACE ABOVE THIS LINE FOR RECORDING USE
FREE RECORDING REQUESTED
[Government Code Section 6103]
AFFORDABILITY RESTRICTIONS
ON TRANSFER OF PROPERTY
(815 N. Harbor Boulevard, Santa Ana, CA)
(� THESE AFFORDABLE HOUSING RESTRICTIONS ON TRANSFER OF
�Y PROPERTY (the "Restrictions ") are entered into as of June 26, 2015, by and among and
815 Harbor, L.P., (referred to herein as the "Developer ") a California limited partnership,
the City of Santa Ana, a charter city and municipal corporation (the "City").
RECITALS:
A. Developer is the owner of that certain real property located at 815 North
Harbor Boulevard, (the "Property ") located in the City of Santa Ana more particularly
described in Exhibit A, which is attached hereto and incorporated herein by this reference.
B. For the purpose of providing two units of housing that will be affordable to
Very Low and Low Income households ( "HOME Assisted Units "), the Developer and the
City have entered into that certain Loan Agreement for the loan of HOME funds, dated on
or about the date hereof (the "Loan Agreement ") to which these Restrictions are attached
as Exhibit G, which, along with all of its attachments, is incorporated herein by this
reference (any capitalized term that is not otherwise defined in these Restrictions shall
have the meaning ascribed to such term in the Loan Agreement).
C. The Loan Agreement provides, among other things, for the use of the Property
for affordable housing with 56 units being restricted to Very Low and Low Income
households and 13 units restricted to Moderate Income households, at Affordable Rent(s).
D. The Loan Agreement contains certain provisions relating to the use of the
Property.
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NOW, THEREFORE, CITY AND DEVELOPER COVENANT AND AGREE AS
FOLLOWS:
1. Developer covenants and agrees (for itself, its successors, its assigns, and
every successor in interest to the Property or any part thereof) that Developer, such
successors, and such assigns shall use the Property exclusively to provide affordable
housing of Very Low, Low, and Moderate Income households, as provided in these
Restrictions and in the Loan Agreement.
2. Developer, for itself and its successors and assigns, hereby covenants and
agrees that all of the apartments in the Property (the "Units ") shall be rented exclusively,
at Affordable Rent, to Very Low and Low Income households. Area median income
levels and Affordable Rents are subject to adjustment from time to time as provided in
Section 3 below.
3. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF
THE PROPERTY
3.1 Use Covenants and Restrictions.
A. Developer agrees and covenants, which covenants shall run with the land and bind
Developer, its successors, its assign and every successor in interest to the Property that
Developer will make all units on the Property available to very low,low, and moderate income
households at rents affordable to such households for fifty -five (55) years from the date of full
occupancy of the Project. The HOME restrictions for the two (2) HOME assisted units shall be
enforced until the date that is twenty (20) years after the date on which the City reports the
Project as complete to the Department of Housing and Urban Development. Upon expiration
of the 20 year HOME compliance period, the City will enforce affordability of the two (2)
HOME assisted units with the same income and rent restrictions as the other units, pursuant to
City guidelines and the California Health and Safety Code.
B. The Project shall consist of seventy units; 69 affordable units, with one on -site
manager unit. There shall be two (2) three- bedroom HOME assisted units. The HOME
assisted units shall be floating units and shall be distributed throughout the complex with
comparable amenities to the other units.
C. Rental increases shall be in conformance with federal and state law. After the
twenty (20) year HOME compliance period, the City shall require that the units remain
affordable, with rents calculated based on assumed household size at the same income
levels, as required by the California Health & Safety Code.
D. Affordable rents shall be governed by California Health and Safety Code Sections
50052.5 and 50053(b)(1), and as provided in the HOME Regulations 24 CFR section 92.2.
3.2 Affordable Gross Starting Rents (Less Reasonable Utility Allowance): Initial rents
may be recalculated to allowable rental amounts at the time of initial lease -up following
completion of constriction in accordance with any changes in allowable rent and income
tables as published by HUD.
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A. HOME Assisted Units
# of Units Max Gross Monthly
Rent
Very Low 3 Bedroom 2 $ 1,252
(1) In no event shall the rent charged to the HOME assisted units be more
than that amount of the low rent as published by HUD, as amended from
time to time.
(2) Remaining non -HOME units will be based on TCAC rents.
3.3 Rent Increases: On an annual basis, the 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.
4. Developer, its successors and assigns, shall not charge rents for the Units in
excess of the amounts set forth herein, as adjusted on the basis of the revised schedules of
area median incomes issued from time -to -time by HUD. The Executive Director shall
notify Developer in writing of the adjusted allowable maximum incomes and rents.
5. Developer shall adopt and include as part of its Management Plan
(described in Section 11 below), written tenant selection policies and criteria for the Units,
that meet the following requirements:
(a) Are consistent with the purpose of providing housing for Very Low,
Low, and Moderate Income households;
(b) Are reasonably related to program eligibility and the applicants'
ability to perform the obligations of the lease;
(c) Give reasonable consideration to the housing needs of households
that would have a preference under 42 CFR §906.211 (Federal selection preferences for
admission to Public Housing);
(d) Provide for:
(i) The selection of tenants from a written waiting list in the
chronological order of their application, insofar as is practicable; and
(ii) The prompt written notification to any rejected applicant of
the grounds for any rejection;
(e) Provide first priority in the selection of qualified eligible tenants to
households that are referred by the City; and
(0 Carry out the Affirmative Marketing procedures of the City of Santa
Ana, which are designed to provide information and otherwise attract eligible persons
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from all racial, ethnic and gender groups in the housing market area to the units.
Developer, the City shall cooperate to effectuate this provision prior to the initial renting,
or upon occurrence of a vacancy, and the re- renting of any Restricted Units (24 CFR
92.351).
6. 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 HOME tenant -based
assistance program because of the status of the prospective tenant as a holder of such
certificate of family participation, rental voucher, or comparable HOME tenant -based
assistance document. Total rents charged to such tenants, including the tenant
contribution and rental assistance, shall not exceed the allowable rents as described above.
7. Any lease of any of the units must be for not less than one year, unless by
mutual agreement between the tenant and the Developer. Should the tenant and Developer
agree to a term of less than one year, said agreement shall be expressed in some type of
written form, signed by the tenant, and maintained in the tenant's rental file held by the
Developer. The lease may not contain any of the following provisions (in which
references to "owner" shall mean the Developer, its successors or assigns):
(a) Agreement by the tenant to be sued, to admit guilt, or to a judgment
in favor of the owner in a lawsuit brought in connection with the lease;
(b) Agreement by the tenant that the owner may take, hold, or sell
personal property of household members without notice to the tenant and a court decision
on the rights of the parties. This prohibition, however, does not apply to an agreement by
the tenant concerning disposition of personal property remaining in the housing Unit after
the tenant has moved out of the Unit. The owner may dispose of this personal property in
accordance with state law;
(c) Agreement by the tenant not to hold the owner or the owner's agent
legally responsible for any action or failure to act, whether intentional or negligent;
(d) Agreement of the tenant that the owner may institute a lawsuit
without notice to the tenant;
(e) Agreement by the tenant that the owner may evict the tenant or
household members without instituting a civil court proceeding in which the tenant has the
opportunity to present a defense, or before a court decision on the rights of the parties;
(f) Agreement by the tenant to waive any right to a trial by jury;
(g) Agreement by the tenant to waive the tenant's right to appeal, or to
otherwise challenge in court, a court decision in connection with the lease; 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.
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8. Developer, its successors or assigns, must adhere to state law requirements
with regard to termination of tenancy.
9. Developer shall maintain the improvements on the Property in compliance
with all applicable housing quality standards [24CFR 92.504 (c)(6)] and state and local
code requirements (California Health and Safety Code section 33418), and shall keep the
Property free from any unreasonable accumulation of debris or waste materials.
Developer shall also maintain in a healthy condition any landscaping planted on the
Property.
10. Developer covenants and agrees for itself, its successors, its assigns and
every successor in interest to the Property or any part thereof, there shall be no
discrimination against or segregation of any person, or group of persons, on account of
race, color, creed, religion, sex, mental or physical disability, marital status, national origin
or ancestry in the sale, lease, transfer, use, occupancy, tenure or enjoyment of the Property
nor shall the Developer itself or any person claiming under or through it establish or
permit any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or
vendees of the Property, as required by the Title VI of the Civil Rights Act of 1964, the
Fair Housing Act (42 U.S.C. 3601 -20) and all implementing regulations, and the Age
Discrimination Act of 1975, and all implementing regulations .
11. Not later than five (5) business days prior to the execution of the
documents, Developer shall submit to the Executive Director a Management Plan in a
form that is acceptable to the Executive Director, including, but not limited to, the
components listed below. Approval of the Management ,Plan must be obtained from the
Executive Director not later than the time for the Closing. Developer shall manage the
Assisted Units in accordance with the approved Management Plan, including such
amendments as may be approved in writing from time to time by the Executive Director,
for the term of the income and rent restrictions contained in these Restrictions. The
components of the Management Plan shall include:
(a) Management Agent. Advanced Property Services, LLC is
approved as the Management Agent. The Executive Director shall approve or disapprove
any proposed change of the 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 Closing,
and anmially thereafter not later than ninety (90) 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.
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(d) Tenant Selection Policies. Developer shall include in the
Management Plan the tenant selection policies in accordance with Section 4, above.
12. If at any time the City 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 agreement shall provide that it is subject to
termination by Developer without penalty, upon thirty (30) days prior written notice, at the
direction of the Executive Director. 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 units.
13. The covenants established in these Restrictions and any amendments hereto
approved by the City and Developer shall, without regard to technical classification and
designation, be binding for the benefit and in favor of the City and their respective
successors and assigns. These Restrictions shall remain in effect for fifty -five (55) years
from the date of fall occupation of the Project. In its discretion, the City may defer
repayment of the HOME Loan or the City may agree to such reasonable modifications to
the requirements of these Restrictions, as they may determine are necessary for the
continued maintenance and operation of the Assisted Units. The covenants against
discrimination shall remain in effect for the period of these Restrictions.
14. Developer shall not request disbursement of HOME funds until the finds
are needed to pay eligible costs. The City shall have the right to disapprove any request if
the City determines the request is for an ineligible iten or is otherwise not in compliance
with or inconsistent with the Loan Agreement and these Restrictions [24 CFR 92.504
(c)(10A.
15. Developer shall prepare, maintain and submit to the City, as appropriate,
the following records and reports in compliance with 24 CFR 92.504 (c) (12):
a. Annual Reports. Developer shall file with the City an Annual Report
(herein referred to as the "Annual Report") within ninety (90) days following the end of
each calendar year, commencing with the end of the calendar year (or portion thereof) in
which the Real Estate Closing occurs. The Annual Report shall contain a certification by
Developer as to such information as the City Executive Director may then require,
including, but not limited to, the following:
(1) The fiscal condition of the Project, including the Annual Budget and
Project Cash Flow report required by Section 10 (c) of the Affordable Housing
Restrictions which shall include 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 arnounts of
any fiscal reserves. Such Amlual Budget and financial statement shall be prepared in
accordance with generally accepted accounting practices. The City Executive Director
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may require that the financial statement be audited at Developer's expense by an
independent certified public accountant acceptable to the Executive Director.
(2) Any substantial physical defects in the Project, including a
description of any major repair or maintenance work undertaken or needed in the previous
and current years. Such statement shall describe what steps Developer has taken in order
to maintain the Project in a safe and sanitary condition in accordance with applicable
housing and building codes and the property standards set forth in 24 CFR 92.251.
(3) The occupancy of the units indicating the income of each current
resident and the current rents charged each resident and whether those rents include
utilities, including records that demonstrate that the Project meets the requirements of 24
CFR 92.253 for tenant and participant protection under the HOME Program.
(4) General management performance, including tenant relations and
other relevant information.
(5) Records that demonstrate that the units meet the affordability
requirements of 24 CFR 92.252, 50052.5 and 50053(b)(1) 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 Section 6 of the City /HOME Deed of Trust, with a loss payable
endorsement naming the City as a loss payee(s) together with other approved lenders (as
their interests may appear), with a "Replacement Cost Endorsement" in amount sufficient
to prevent Developer or City from becoming a co- insurer under the terms of the policy, but
in any event in an amount not less than 100% of the then full replacement cost, to be
determined at least once annually and subject to reasonable approval by the Executive
Director.
(7) Evidence of a currently paid liability insurance policy, naming the
City as additional insured and in a form approved by the City Attorney with coverage as
described in the Loan Agreement.
(8) Termite reports pertaining to the Property every fifth (5`[') year.
(9) Such other information as may be reasonably required by the
Executive Director or his /her designee.
b. Records and Audits. Developer shall maintain the following general
program records, and make there available for inspection by 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 HOME Assisted Unit, which demonstrates that the
project meets the requirements of 24 CFR 92.252.
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(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 etlmic 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;
(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 up until the date of the Real Estate
Closing (i.e., the date on which Developer obtained site control);
(7) records concerning lead -based paint in accordance with 24 CFR
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 monitoring agencies,
C. All records pertaining to each calendar year of HOME fiends must be
retained for the most recent five (5) 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 City to retain all
books and records relevant to the Loan Agreement for a minimum of five years after the
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expiration of the Loan Agreement and any and all amendments hereto, or for five years
after the conclusion or resolution of any and all audits or litigation relevant to the Loan
Agreement, whichever is later. The City, the State, the Office of the Auditor General of
HUD, and /or their representatives shall have unrestricted reasonable access to all
locations, books, and records for the purpose of monitoring, auditing, or otherwise
examining said locations, books, and records with or without prior notice.
d. If so directed by the City, the State or HUD upon termination of the Loan
Agreement, Developer shall cause all records, accounts, documentation and all other
materials relevant to the work to be delivered to the City, the State or HUD, as depository.
e. All records, accounts, documentation and other materials relevant to the
Project shall be accessible at any time to the authorized representatives of the City, the
State or HUD, on reasonable prior notice, for the purpose of examination or audit.
f. Pursuant to 24 CFR Part 44, the City shall perform an annual audit at the
close of each calendar year in which these Restrictions are in effect. Developer shall
reasonably cooperate with City in performing such audit.
16. The City is a beneficiary of the terms and provisions of these Restrictions
and the covenants herein, both for and in their own right and for the purposes of protecting
the interests of the community and other parties, public or private, for whose benefit these
Restrictions and the covenants running with the land have been provided. The 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.
17. The covenants and agreements contained herein shall run with the land and
not be personal obligations of Developer. Upon the sale, conveyance or other transfer of
the Property (a "Transfer ") and the assumption of the obligations hereunder by a
transferee, Developer's liability for performance shall be tenninated as to any obligation to
be performed hereunder after the date of such Transfer.
18. The Loan Agreement and all of its attachments shall be enforceable by
City in accordance with the terms thereof. Each of the Loan Agreement, the Affordability
Restrictions on Transfer of Property, the City /HOME Loan Note and the City/HOME
Deed of Trust provide a means of enforcement by the City if Developer is in breach of its
obligations hereunder and thereunder, including liens on the Property, use and deed
restrictions and covenants running with the land [24 CFR 92.504 (c) (13)].
9 of 1.0
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the date set forth at the beginning of this Agreement.
ATTEST:
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
VALHO, City Attorney
City
DEVELOPER:
815 N Harbor, LP
a California limited partnership
MANAGING GENERAL PARTNER
CITY OF SANTA AN
David Cavazos
City Manager
RECOMMEND APPROVAL:
Kelly l eerlders; Vxecutive Director
Comm ity Development Agency
OHDC 815 N Harbor, LLC
a California nonprofit, public benefit corporation
By:
Eunice Bobert, Chief Executive Officer
DEVELOPER GENERAL PARTNER
C &C 815 N Harbor, LLC
a California limited liability company
BY: Cott Family Trust Dated 3/8/87, its Member
By: \
]Yarry Cottle, Trustee
By
Todd Cottle, Trustee -
hApp- ' ✓-
41
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 26th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Eunice Bobert
who proved to me on the basis of satisfactory evidence to be the persor (, ) whose name rare®
subscribed to the within instrument and acknowledged to me that�'e /she/thlgy executed he same in
(hj;fr arAheirauthorized capacity), and that by /her/their signatu%sj on the instrument the
person A, or the entity upon be alf of which the person� acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
hand and official Seal. CLAUDIA M. FERNANDEZ -SHAW
Commission x 2053995
z:
Notary Public - California i
Orange County
My Comm, Expires Jan 25, 2018
r / (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 26th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Barry Cottle
who proved to me on the basis of satisfactory evidence to be the personA whose name /,are-
subscribed to the within instrument and acknowledged to me that & b (they- executed the same in
.bIgLher4heir-ftthorized capacity(igg), and that bygl kh&fth -& signature(S-Yon the instrument the
person(s ?, or the entity upon b 91 of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
CLAUDIA M. FERNANDR -SHAW
WITNESS my hand and official seal. Commission # 2053995
z,'a� Notary Putiic - Calitomia z
� �" Orange County n
�,„�ea, My Comm. Expires Jan 25, 2018+
al t � (%'W (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 26th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Todd Cottle
who proved to me on the basis of satisfactory evidence to be the personA whose nameare
subscribed to the within instrument and acknowledged to me that hey executed the same in
,,j6ikerr°ftheir authorized capacity(�6f, and that by 6herltFieh signature(Won the instrument the
person(', or the entity upon behalf of which the person(Wacted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
CLAUDIA M. FERNANDEZ•SHAW
WITNESS my hand and official seal. : Commission # 2053995
\ Notary Public • Calllornla z Orange County
.Y1lis My Comm. Expires Jan 25, 2018 J
(Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 30th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Kelly L. Reenders
who proved to me on the basis of satisfactory evidence to be the person /) whose name iPare
subscribed to the within instrument and acknowledged to me that tie Ahey executed the same in
—Ibisx 64 x' }heir- authorized capacity(jie�), and that by-hisL4?er�theirsignaturesKon the instrument the
person(', or the entity upon behalf of which the person 4 acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS y hand and official seal.
(
'signature
L-
AUDIA M. FERNANDEZ -SHAW
Commission # 2053995
Notary Public - California z
Z '' Orange County n
My Comm. Expires Jan 25, 2018
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of Orange )
On June 30th, 2015 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared David Cavazos
who proved to me on the basis of satisfactory evidence to be the person whose nam /are
subscribed to the within instrument and acknowledged to m thatt kt t.0eq-execute the same in
/bec/the +r authorized capacit�Ks), and that byt' hgr it signature(�on the instrument the
person(, or the entity upon behalf of which the person( acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
CLAUDIA M.FERNANDEZ•SHAW
WITNESS my hand and official seal. Commission # 2053995
/® z : -u Notary Public • California z
a ° Orange County
MY Comm. Expires Jan 25, 2018