HomeMy WebLinkAboutNORTH BROADWAY HOUSING PARTNERS LP (C/O OF JAMBOREE AND WISEPLACE)w
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RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
INSURANCE NOT REQUIRED
WORK MAY PROCEED
CLERK OF COUNCIL
.819N 2 9 2022
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
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2022000231667 2:22 pm 06/29122
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0.00 0.00 0.00 0.00 144.00 0.00 0.000.000.00 0.00
Free Recordingpursuant to 4
Government Code 27383 A-2021—k31 I
DENSITY BONUS HOUSING AGREEMENT
DATE! This DENSITY BONUS HOUSING AGREEMENT ("Agreement"), made and entered
into this 21' day of June, 2022, by and between the City of Santa Ana, a charter city and municipal
corporation of the State of California ("City"), and North Broadway Housing Partners LP, a
California limited partnership ("Developer"). City and Developer are sometimes referred to
collectively as the "Parties" and individually as a "Party."
O.GD� ( ewoua. )> (5A�o RECITALS
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Q o A. On or about March 10, 2022, JHC-Acquisitions LLC, a California limited liability
company ("JHC-Acquisitions") and WISEPlace, a California nonprofit corporation ("Property
N $ Owner"), entered into that certain Option to Lease (the "Option Agreement"), pursuant to which
o a the Property Owner granted to JHC-Acquisitions an option to ground lease that certain property
located within the City of Santa Ana, County of Orange, State of California, commonly known as
V U 1411 N. Broadway Avenue, Santa Ana, California, 92706, and legally described as set forth in
Exhibit A attached hereto and incorporated herein by this reference as if set forth in full
o ("Property").
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B. Each of Developer and JHC-Acquisitions is an affiliate of Jamboree Housing
H
o Corporation, a California nonprofit public benefit corporation. Developer and the Property Owner
u intend for (i) Developer to assume from JHC-Acquisitions all of JHC-Acquisitions' rights and
0
obligations under the Option to Lease, and pursuant thereto to ground lease the Property from
o Property Owner, and (ii) the Property Owner to become a non -managing member of the limited
liability company that serves as Developer's managing general partner.
C. Developer is proposing to develop an affordable rental residential community
consisting of forty-eight (48) units with forty-seven (47) units of permanent supportive housing
for homeless individuals and 6,500 square feet of community space and common areas on the
Property, as more particularly set forth in Density Bonus Application No. DBA-2022-1
("Project").
D. Santa Ana Municipal Code sections 41-1600, et seq. ("City Density Bonus for
Affordable Housing"), and California Government Code sections 65915, et seq. ("State Density
9138-12678011517029.2
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Bonus Law"), set forth a process to provide increased residential densities and incentives,
concessions, and waivers to property owners or developers who guarantee that a portion of their
residential development will be available to low income, very -low income, or senior (also known
as "qualified") households. These regulations are intended to materially assist the housing industry
in providing adequate and affordable housing for all economic segments of the community and to
provide a balance of housing opportunities for very -low income, low income and senior
households throughout the city.
E. The Project is proposing a total number of forty-eight (48) residential units,
including forty-seven (47) units for extremely -low income households and one manager's unit.
The Project will provide 20 total onsite parking spaces or 0.42 spaces per unit. No parking
concession is requested or provided.
F. The Project complies with the affordable housing requirements set forth in the State
Density Bonus Law and City Density Bonus for Affordable Housing. For purposes of this
Agreement, the Project shall be the "housing development" as defined in the State Density Bonus
Law.
G. In light of the purpose of the State Density Bonus Law and City Density Bonus for
Affordable Housing, and the express provisions of Government Code Section 65915(d)(2)(B), the
City has determined to grant Developer's application for one concession and one waiver.
H. This Agreement, and the exhibits attached hereto and incorporated herein by
reference, are intended to set forth the terms and conditions for the implementation of the Project's
requirement to provide affordable housing units in exchange for receiving the density bonus
concession and waiver set forth herein.
NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein
by this reference, and of the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
DEFINITIONS AND EXHIBITS
1.1 Definitions. In addition to the terms that may be defined elsewhere in this
Agreement, the following terms when used in this Agreement shall be defined as follows:
1.1.1 "Adjusted for family size appropriate to the unit" shall have the
meaning set forth by Health and Safety Code Section 50052.5(h).
1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be
charged to and paid by an Eligible Household for the Affordable Units, as required by the terms
of this Agreement. The Affordable Rent shall be adjusted to reflect a reasonable utilities allowance
for utilities paid by the household using the Santa Ana Housing Authority Multi -Family Housing
Utility Allowance Schedule, and shall be updated no less than annually.
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1.1.3 "Affordable Rent Schedule" means a rent schedule established as of the
date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits)
for the required number/percentage of the total number of units in the Project which are to be
rented or available for rent to Extremely -Low Income Tenants. Said Affordable Rent Schedule
shall be established at the time of the issuance of the occupancy permit ("Initial Rent Schedule")
and shall be created in accordance with Health and Safety Code section 50053(b), and shall be
updated no less than annually.
1.1.4 "Affordable Units" means forty-seven (47) units, which shall be
comprised of forty-seven (47) studio units for Extremely -Low Income Tenants. Any change to
the number or distribution of Affordable Units is subject to City Manager approval.
1.1.5 "Agreement' means this Density Bonus Housing Agreement.
1.1.7 "City" means the City of Santa Ana, California
1.1.8 "City Council" means the City Council of the City of Santa Ana.
1.1.9 "City Attorney" means the City Attorney for the City of Santa Ana.
1.1.10 "City Manager" means the City Manager for the City of Santa Ana.
1.1.11 "City's Planning Commission" means the Planning Commission for the
City of Santa Ana.
1.1.12 "Density Bonus Housing Agreement Term" means the period during
which this Agreement shall be in full force and effect, as provided for in Section 6 below.
1.1.14 "Developer" means North Broadway Housing Partners LP and its
permitted successors and assigns to all or any part of the Property, Project or this Agreement.
1.1.15 "Effective Date" means the date the Developer and the City shall record or
cause to be recorded in the Official Records for Orange County, California, an executed original
of this Agreement, pursuant to section 4.1 herein.
1.1.16 "Eligible Household" means a Household whose income does not exceed
the qualifying limit for an "Extremely -Low Income Tenant" as defined herein.
1.1.17 "Extremely -Low Income Tenant" means persons and families whose
income does not exceed thirty (30%) of the area median income for the Orange County, California
Primary Metropolitan Statistical Area ("PMSA"), adjusted for household size, as published by the
California Department of Housing and Community Development ("HCD").
1.1.18 "Household" means all persons residing in a Unit.
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1.1.19 "Median Income" means the Orange County, California area median
income, adjusted for family size, as periodically published by HCD.
1.1.20 "Monthly Rent" means the total of monthly payments for: (a) use and
occupancy of each Affordable Unit and land and facilities associated therewith; (b) any separately
charged fees or service charges assessed by Developer which are required of all tenants, other than
security deposits, application fees or credit check fees; (c) a reasonable allowance for an adequate
level of service of utilities not included in (a) or (b) above, including garbage collection, sewer,
water, electricity, gas and other heating, cooking and refrigeration fuels, but not including
telephone or cable service, to the extent applicable and charged to tenant; and, (d) possessory
interest, taxes or other fees or charges assessed for use of the land and facilities associated
therewith by a public or private entity other than Developer. In the event that certain utility charges
are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent
for that type of utility charge.
1.1.21 "Project" means that certain affordable residential development as more
particularly described in Recital B and Section 2 of this Agreement.
1.1.22 "Property" means that certain real property more particularly described in
the legal description in Exhibit A and improvements thereon.
1.1.23 "State Density Bonus Law" means Government Code sections 65915, et
seq., as they exist on the Effective Date.
1.1.24 "Unit" means a residential dwelling unit within the Project to be
constructed or caused to be constructed by Developer pursuant to this Agreement.
1.1.25 "Unrestricted Units" means the Units within the Project to be constructed
or caused to be constructed by Developer to a Household without restriction.
1.1.26 "Very -Low Income Tenant" means persons and families whose income
does not exceed fifty (50%) of the area median income for the Orange County, California PMSA,
adjusted for household size, as published by HCD.
1.2 Exhibits. The following documents are attached to, and by this reference made a
part of, this Agreement:
1.2.1 Exhibit A —Legal Description of the Property
1.2.2 Exhibit B — Tenant Verification
1.2.3 Exhibit C —Annual Tenant Recertification
1.2.4 Exhibit D —Annual Rental Housing Compliance Report
1.2.5 Exhibit E —Notice of Affordability Restrictions on Transfer of Property
9138-126790\15170292
2. DEVELOPMENT OF THE PROPERTY
2.1 Project. Developer shall develop, operate, and maintain, or cause the development,
operation and maintenance of, the Property as a forty-eight (48) unit rental residential community,
with forty-seven (47) Affordable Units for Extremely Low Income Tenants.
2.2 Density Bonus. The Project Units are allowed under the City's Adaptive Reuse
Ordinance. Therefore, no density bonus is required or provided.
2.3 Development Concessions, Incentives, and Waivers. As set forth in the City
entitlements, Developer petitioned for and is hereby granted the following concessions, incentives,
and waivers as part of the approval of Density Bonus Application No. DBA-2022-1 for the Project:
2.3.1 Onsite parking shall be provided in compliance with Government Code
Section 65915(p)(4). No parking concession is requested or provided. Pursuant to the Project
plans, the Developer is proposing to provide 20 total onsite parking spaces or 0.42 spaces per unit.
2.3.2 The permitted building height for this Project shall be increased in
accordance with Government Code Section 65915(d)(2)(B), such that the maximum building
height for this Project shall be 54 feet and 6 inches and four (4) stories.
2.3.3 Certain development standards for this Project shall be waived in
accordance with Government Code Section65915(d)(2)(B), such that all proposed utilities will be
undergrounded with the exception of existing overhead power lines over the existing building
along with the recorded Southern California Easement (to remain).
2.4 No Further Concessions, Incentives, or Waivers. Developer acknowledges and
agrees that the concessions, incentives, and waivers set forth in section 2.3 above fully satisfies
any duty City may have under the City Density Bonus for Affordable Housing, the Density Bonus
Law, or any other law or regulation to provide any density bonus incentive or to waive any
building, zoning, or other requirement in connection with a density bonus. By this Agreement,
Developer releases any and all claims Developer may have against City in any way relating to or
arising from City's obligation to waive requirements of or provide development incentives
pursuant to the City ,Density Bonus for Affordable Housing and the Density Bonus Law applicable
to the Project.
2.5 Unrestricted Units. The Project, for purposes of this Agreement, may have no more
than one (1) Unrestricted Unit (i.e. — manager's unit) comprised of one (1) two -bedroom unit.
2.6 Affordable Units. The Project, for purposes of this Agreement, shall have no less
than forty-eight (48) Units, which shall be comprised of forty-seven (47) studio units designated
as Affordable Units pursuant to the terms and conditions of this Agreement. The Affordable Units
shall be consistent with all applicable City approvals.
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2.7 Minimum Development Standards for Affordable Units. The Affordable Units
shall be constructed in accordance with all applicable City approvals.
2.8 Permits and Processing Compliance with Laws. Developer, at its sole cost and
expense, or as otherwise set forth in a separate written agreement, shall secure or cause to be
secured any and all permits that may be required for development of the Project by City or any
other federal, state, or local governmental entity with jurisdiction over the Property or Project.
Upon securing any and all required permits, and all necessary financing and property interests,
Developer shall carry out and perform the development, operation, and maintenance of the Project
or cause the performance of the development, operation, and maintenance of the Project, in
conformity with all applicable federal, state, and local laws and regulations, and all conditions of
approval issued by the City Council and City's Planning Commission for the Project. Any changes
to the Project shall be reviewed by the City to determine compliance with this Agreement. If any
changes to the Project shall materially alter the ability of Developer to comply with any terms of
this Agreement in City's sole determination, then City and Developer shall meet and confer to
address amendments and revisions to this Agreement as necessary.
2.9 Relocation Prior to Development of Project. If relocation is required prior to the
completion of development of the Project, Developer shall have the sole and exclusive
responsibility for providing relocation assistance and paying all relocation costs as may be required
to comply with applicable federal and state laws and regulations. In addition to any other indemnity
provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of
City's choosing and the consent of Developer, which shall not be unreasonably withheld and which
may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all
of its officials, officers, employees, representatives, volunteers and agents from any and all alleged
or actual claims, causes of action, liabilities, and damages from any third party for relocation
assistance, benefits and costs prior to the completion of the development of the Project.
2.10 Local Sourcing Plan. Developer agrees to make a good faith effort to encourage
contractors and suppliers to hire and procure locally, to the extent that it is cost effective and does
not delay the overall project development schedule. Prior to issuance of a Building Permit,
Developer shall develop and submit or cause the development and submittal to the Community
Development Agency (the "CDA") a local sourcing plan for the Project targeting, to the extent
commercially reasonable, the hiring of qualified workers, construction contractors, or the
purchasing of goods locally within the City of Santa Ana. The plan must be reviewed and approved
by the CDA which if not granted or denied within five (5) business days, shall be deemed approved
(with such approval not to be unreasonably withheld, conditioned or delayed) and be implemented
for the construction of the project prior to issuance of Building Permit.
2.11 Mechanic's Liens; Indemnification. Developer shall take all actions reasonably
necessary to remove any future mechanic's liens or other similar liens (including design
professional liens) against the Property or Project, or any part thereof, by reason of work, labor,
services, or materials supplied or claimed to have been supplied to Developer or caused by, at the
direction of, or on behalf of Developer. Prior to the recording of this Agreement (or memorandum
thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company
of any new recordings against the Property or Project. City hereby reserves all rights to post notices
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of non -responsibility and any other notices as may be appropriate upon a filing of a mechanic's
lien. In addition to any other indemnity provided by Developer under this Agreement, Developer
shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which
shall not be unreasonably withheld - and which may be joint defense counsel upon City's and
Developer's consent), and hold harmless City and all of its officials, officers, employees,
representatives, volunteers and agents from any and all alleged or actual claims, causes of action,
liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services,
or materials supplied or claimed to have been supplied to Developer or caused by, at the direction
of, or on behalf of, Developer.
AFFORDABILITY
3.1 Total Affordability. Each Affordable Unit shall be restricted to use and
occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total
Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on
the date that the building in which the Affordable Unit is located receives all required occupancy
permits from the City.
3.2 Memorializing Commencement of Total Affordability. Developer shall keep
or cause to be kept detailed records of the commencement date of the Total Affordability Term for
each Affordable Unit. City shall have the right to review and verify said records without a fee
from City to Developer to ensure that the commencement date specified by Developer for an
Affordable Unit coincides with the date that the initial Affordable Unit received all permits from
City required for occupancy of the Unit. In the event that a conflict exists between the date
specified by Developer for the commencement of the Total Affordability Term for an Affordable
Unit and the date specified by City's issuance of all required permits for occupancy of the Unit,
the date specified by City's issuance of all required permits for occupancy of the Unit shall control.
3.3 Levels of Affordability.
3.3.1 Extremely -Low Income Tenants. Subject to the terms of Section 5,
Developer covenants that no less than forty-seven (47) Affordable Units in the Project shall at all
times during the Density Bonus Housing Agreement Term be rented to, or held vacant and
available for immediate occupancy by Extremely -Low Income Tenants, at an Affordable Rent.
4. OPERATION OF THE PROJECT BY DEVELOPER
4.1 Payment of Density Bonus Setup Fee. Prior to the Effective Date, Developer
delivered payment to City of the required density bonus setup fee in the amount of one -eighth
(1/8") of one percent (1%) of the total estimated construction budget for the Project.
4.2 Recording of Documents. No later than issuance of building permits for the Project,
Developer and the City shall record or cause to be recorded in the Official Records for Orange
County, California, an executed original of this Agreement. City shall cooperate with Developer
in promptly executing in recordable form this Agreement. The date of recording of the Agreement
shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions
9138-1267M1517029.2
of this Agreement shall be binding upon and run with the Property and the Project. It is the express
intent and agreement between the Parties thatthis Agreement shall remain binding and enforceable
against the Property, the Project, and the Units to ensure compliance with the State Density Bonus
Law and City Density Bonus Law, and to ensure the continued supply of Affordable Units in the
Project, except as expressly set forth in this Agreement.
4.2 Rental of Units. Upon the completion of construction of the Project and receipt by
Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to
be rented each Affordable Unit for the Total Affordability Tenn for such Affordable Unit in
accordance with the terms and conditions set forth in this Agreement, which provide among other
terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible
Household for the Total Affordability Term.
4.3 Location of Affordable Units. During the Density Bonus Housing Agreement
Term, the Affordable Units shall be dispersed throughout the Project in accordance with the terms
and conditions set forth in this Agreement.
4.4 Occupancy Levels. The number of persons permitted to occupy each Affordable
Unit shall not exceed two persons.
4.5 Use of the Property. All uses conducted on the Property by Developer, including,
without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall
conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal,
state, and local laws, rules, and regulations. The Project shall at all times during the term of this
Agreement be used as a rental supportive housing complex and none of the Affordable Units in
the Project, 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. All of the community facilities and any social programs
provided to the Project's residents shall be available on an equal, nondiscriminatory basis to
residents of all Units at the Project.
4.6 Maintenance. Developer shall, at all times during the term of this Agreement, cause
the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of
cause of the disrepair, to the extent commercially reasonable. City, and any of its employees,
agents, contractors or designees shall have the right to enter upon the Property at reasonable times
following not less than -forty-eight (48) hours' prior written notice and in a reasonable manner to
inspect the Project. If at any time Developer fails to maintain the Project or the Property in
accordance with this Agreement and such condition is not corrected within seven (7) days after
written notice from City with respect to debris and waste material, or within thirty (30) days after
written notice from City with respect to general maintenance, landscaping and building
improvements, unless Developer has initiated corrections and City has agreed to a reasonable
amount of time to complete corrections, 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
9138-126780\1517029.2
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. Notwithstanding the foregoing, City
acknowledges and agrees that the priority of any such lien shall be deemed to be the date such lien
is filed, and not the date this Agreement is recorded.
4.6.1 Property Maintenance Agreement. Subject to review and applicability by the
Planning and Building Agency (the "PBA"), the CDA, the Public Works Agency (the "PWA"),
and the City Attorney to ensure that the Property and all improvements located thereupon are
properly maintained, Developer shall execute a maintenance agreement with the City of Santa Ana
or Housing Authority, as applicable, prior to occupancy which shall be recorded against the
Property and which shall be in a form reasonably satisfactory to the City Attorney. The
maintenance agreement shall contain covenants, conditions and restrictions relating to the
following:
(a) Compliance with operational conditions applicable during any period(s) of
construction or major repair (e.g., proper screening and securing of the construction site;
implementation of proper erosion control, dust control and noise mitigation measure;
adherence to approved project phasing etc.);
(b) Compliance with ongoing operational conditions, requirement and restrictions
as applicable, the proper storage and disposal of trash and debris, and/or restrictions on
certain uses;
(c) Ongoing compliance with approved design and construction parameters,
signage parameters and restrictions as well as landscape designs, as applicable;
(d) Ongoing maintenance, repair and upkeep of the Property and all improvements
located thereupon (including but not limited to controls on the proliferation of trash and
debris about the Property; the proper and timely removal of graffiti; the timely
maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings,
structures and/or improvements; the timely maintenance, repair and upkeep of exterior
paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly
accessible bathrooms and bathroom fixtures, landscaping and related landscape
improvements and the like, as applicable);
(e) If Developer and the owner of the Property are different (e.g., if the applicant is
a tenant or licensee of the Property or anyportion thereof), both the applicant and the owner
of the Property shall be signatories to the maintenance agreement and both shall be jointly
and severally liable for compliance with its terms;
(f) The maintenance agreement shall further provide that any party responsible for
complying with its terms shall not assign its ownership interest in the Property or any
interest in any lease, sublease, license or sublicense, except as set forth herein or unless the
prospective assignee agrees in writing to assume all of the duties and obligations and
responsibilities set forth under the maintenance agreement;
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(g) The maintenance agreement shall contain provisions relating to the enforcement
of its conditions by the City and shall also contain provisions authorizing the City to
recover costs and expenses which the City may incur arising out of any enforcement and/or
remediation efforts which the City may undertake in order to cure any deficiency in
maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of
the Property. The maintenance agreement shall further provide that any unreimbursed costs
and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use
restrictions shall become a lien upon the Property in an amount equivalent to the actual
costs and/or expense incurred by the City (provided, however, that City acknowledges and
agrees that the priority of any such lien shall be deemed to be the date such lien is filed,
and not the date this Agreement is recorded); and,
(h) The execution and recordation of the maintenance agreement shall be a
condition precedent to the issuance of the Certification of Occupancy.
4.7 Management Plan. Prior to Certificate of Occupancy, Developer shall submit for
the reasonable approval of City a "Management Plan" which sets forth in detail the property
management duties, a tenant selection process in accordance with this Agreement, a security
system (comprised of security cameras with audio voice down capability) and crime prevention
program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules
and regulations for the Property and manner of enforcement, a standard lease form, an operating
budget, the identity and emergency contact information of the professional property management
company to be contracted with to provide onsite property management services at the Property
("Property Manager"), and other matters relevant to the management of the Property. The
Management Plan shall require Developer to adhere to a fair lease and grievance procedure. The
management of the Property shall be in compliance with the Management Plan as approved by
City.
If City determines that the performance of the Property Manager is deficient based upon
the standards set forth in the approved Management Plan and in this Agreement, City shall provide
written notice to Developer of such deficiencies and Developer shall use commercially reasonable
efforts to correct such deficiencies. In the event that such deficiencies have not been cured within
thirty (30) days, or, if cure is not reasonably possible within 30 days, then unless actions to
commence a cure are taken within 30 days and continued thereafter with diligence, City shall have
the right to require Developer to immediately remove and replace the Property Manager with
another property manager or property management company which is reasonably acceptable to the
City Manager, which is not related to or affiliated with Developer, and which has not less than five
(5) years' experience in property management, including significant experience managing housing
facilities of the size, quality and scope of the Project. City acknowledges that Developer's investor
limited partner has the right, under Developer's limited partnership agreement, to direct the general
partner to remove the Property Manager. Developer agrees to give City notice of the proposed
replacement Property Manager. Such proposed replacement Property Manager shall be subject to
the City's approval (with such approval not to be unreasonably withheld, conditioned or delayed).
4.8 Rental Lease Agreement. Developer shall prepare and obtain City's approval,
which approval shall not be unreasonably withheld, conditioned or delayed, of a rental lease
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agreement ("Lease Agreement"). All Lease Agreements must 1) identify the names and ages of
all members of the household who will occupy the Affordable Unit; and 2) state that the
Household's right to occupy the Affordable Unit is subject to compliance with the Median Income
requirements, as periodically published by HCD. All Lease Agreements must be consistent with
the terms contained in this Density Bonus Agreement.
4.8.1 Prohibited Lease Terms. The Lease Agreement may not contain any of the
following provisions:
(a) Agreement to be Sued. Agreement by the tenant to be sued, to admit to guilt,
or to a judgment in favor of the Developer in a lawsuit brought in connection
with the lease;
(b) Treatment of Property. Agreement by tenant that the Developer may take, hold,
or sell personal property of household members without notice to 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
Developer may dispose of this personal property in accordance with State law;
(c) Excusing Developer of Responsibility. Agreement by the tenant not to hold the
Developer of the Developer's agent legally responsible for any action or failure
to act, whether intentional or negligent;
(d) Waiver of Notice. Agreement of the tenant that the Developer may institute a
lawsuit without notice to the tenant;
(e) Waiver of Legal Proceedings. Agreement by the tenant that the Developer 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) Waiver of a Jury Trial. Agreement by the tenant to waive any rights to a trial
by jury;
(g) Waiver of Right to Appeal Court Decision. 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) Tenant Chargeable with Cost of Legal Action Regardless of Outcome.
Agreement by the tenant to pay attorney's fees or other legal costs even if the
tenant wins in a court proceeding by the Developer against the tenant. The
tenant, however, may be obligated to pay attorney's fees and costs if the tenant
loses, if provided for under applicable law or court ruling.
4.9 Selection of Tenants.
4.9.1 Developer shall review the selection of tenants for the Affordable Units in
compliance with lawful and reasonable criteria and the requirements of this Agreement. Each
Affordable Unit shall be leased to Eligible Households that are chronically homeless and
document -ready individuals on the Coordinated Entry List. All residents will be referred from the
County of Orange Coordinated Entry System.
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4.9.2 Local preference for Santa Ana residents and workers in tenant selection for
the Affordable Units shall be a requirement of the Project. Subject to applicable laws and
regulations governing nondiscrimination and preferences in housing occupancy required by the
State of California, the Developer shall give preference or cause for the preference in leasing the
Affordable Units to households that live and/or work in the City of Santa Ana or who have an
active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any
other Public Housing Authority.
4.9.3 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer
shall require the tenant(s) or cause for the tenant(s) to be required to execute a written lease and to
complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit
B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and
otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall
verify the income of the tenant(s) as set forth herein. Developer and City shall be entitled to rely
on the Tenant Income Verification Form and supporting documentation provided by tenant(s)
unless Developer or City has knowledge of, or a reasonable basis for belief as to, the inaccuracy
or falsehood of any of the supporting documentation.
4.10 Income Verification and Certification.
Developer covenants to City that it will at all times abide by all specific compliance
standards set forth in the regulatory agreements entered into between the Developer and all public
funding sources. Developer will abide by all standards including but not limited to number of
extremely -low and very -low and low-income affordable units by number of bedrooms, standards
for qualifying household incomes and other qualifying criteria. Developer shall provide City with
a certified copy of each of the recorded regulatory agreements applicable to the Project. The
compliance standards set forth in said regulatory agreements are hereby incorporated by reference
as fully set forth herein. In the event of a conflict between this Agreement and the regulatory
agreements: (1) the more stringent requirement shall prevail if such interpretation eliminates the
relevant conflict; or (2) regulatory agreements, or any of them, shall prevail.
Developer shall be entitled to rely on the Tenant Income Verification Form and supporting
documentation provided by tenant(s) unless Developer has knowledge of, or a reasonable basis for
belief as to, the inaccuracy or falsehood of any of the supporting documentation. Developer shall
make reasonable efforts to verify or cause to be verified that the income and asset statement
provided by an applicant in an income certification is accurate by taking, at a minimum, at least
one of the following steps as a part of the verification process: (1) obtain three months consecutive
pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax
year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an
income verification form from the Social Security Administration and/or the California
Department of Social Services if the applicant receives assistance from either of such agencies, or
(5) if the applicant is unemployed and has no such tax return, obtain another form of independent
verification.
4.10.1 Gross Household Income. Gross household income means all income from
whatever source from all adult Household members, which is anticipated to be received during the
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12-month period following the date of the determination of Gross Household Income. The
applicable sources of income are defined in California Code of Regulations Title 25 Housing and
Community Development Section 6914.
4.10.2 Annual Recertification. Developer agrees to recertify or cause to be
recertified household eligibility annually. Notification of Annual Tenant Recertification shall be
sent to the household in substantially the form attached hereto as Exhibit C. An Annual Rental
Housing Compliance Report ("Annual Compliance Report") shall be sent by Developer to the City
in substantially the form attached hereto as Exhibit D for City's review and approval. The Annual
Compliance Report shall be due to the City within 30 days of the anniversary of the
commencement of the Total Affordability Term, which is the date that each building receives all
required occupancy permits from the City.
4.11 Monitoring and Recordkeeping. Throughout the Term of this Agreement,
Developer shall annually complete or cause to be completed and submit to City a Certification of
Continuing Program Compliance in the form provided by City. Developer agrees to pay annually
to City a fee ("City Monitoring Fee"), for the purpose of paying the actual costs associated with
the City's obligation to monitor Developer's compliance with the affordability restrictions
contained in this Agreement related to the Affordable Units, not to exceed monitoring costs for up
to forty-seven (47) Affordable Units. The City Monitoring Fee, including any increases thereto, is
set by City resolution, based on review and analysis of the actual costs incurred by City to perform
said monitoring activities. As of the Effective Date, the City Monitoring Fee is One Hundred
Eleven Dollars and Ninety -One Cents ($111.91) per unit. Representatives of City shall be entitled
to enter the Property if necessary after review of above documentation, upon at least forty-eight
(48) hours written notice, to monitor compliance with this Agreement, and shall be entitled to
inspect the records of the Project relating to the Affordable Units and to conduct an independent
audit or inspection of such records at a location within the City that is reasonably acceptable to the
City without a fee from the City. Developer agrees to cooperate with City in making the Property
and the records of the Project relating to the Affordable Units available for such inspection or
audit. Developer agrees to maintain or cause for the maintenance of each record of the Project for
no less than five (5) years after creation of each such record.
Developer shall allow the City to conduct annual inspections of each of the Affordable
Units on the Property after the date of construction completion, with not less than forty-eight (48)
hours prior written notice. Developer shall commence to cure or cause the commencement to cure
any defects or deficiencies found by the City while conducting such inspections within ten (10)
business days of written notice thereof, or such longer period as is reasonable within the reasonable
discretion of the City.
4.12 Notice of Affordability Restrictions on Transfer of Property. In the event the
Property Owner wishes to sell or transfer the Property, or the Developer wishes to sell or transfer
the Project and assign the ground lease to the Property, during the Total Affordability Tenn, the
City and the Developer shall execute and deposit into escrow, or record against the Property, a
Notice of Affordability Restrictions on Transfer of the Property as contained herein (Exhibit E).
The sale or transfer of the Property, or assignment of ground lease, shall not be effective unless
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and until the City and the transferee execute the documents necessary to transfer the Density Bonus
Agreement obligations from the Developer to the transferee.
4.13 Onsite Supportive Services, Programs and Amenities. Throughout the Term of this
Agreement, and to the extent such can be coordinated with and supplied by philanthropic and other
social welfare providers, Developer shall provide residents of the Project, or cause to be provided
to residents of the Project, access to discounted or no -cost onsite supportive services, programming
and amenities that promote independent living and economic mobility and include but are not
limited to: health and wellness services, social activities, and physical or recreational amenities.
4.14 Alternative Transportation and Energy Source, Resource Conservation, and LEED
Certification. While not a condition of the Project's Density Bonus, in recognition of the City's
desire to optimize the energy efficiency of the Project, Developer agrees to consult with the project
design team, a CABEC certified 2016 Certified Energy Analyst, a LEED AP Homes (low-rise and
mid -rise), LEED AP BD+C (high rise), National Green Building Standard (NGBS) Green Verifier,
or GreenPoint Rater (one person may meet both of these latter qualifications) early in the Project
design process to evaluate a building energy model analysis and identify and consider energy
efficiency or generation measures. Prior to the meeting, the energy analyst shall complete an initial
energy model based on either current T24 standards or, if the Project is eligible, the California
Utility Allowance Calculator using best available information on the Project. To the extent
financially feasible for the Project, Developer agrees to incorporate and optimize energy efficient
building materials, methods, and amenities.
4.15 Onsite Property Manager. The Project shall have 24-hour on -site Property
management services and personnel. Up-to-date 24-hour contact information for the on -site
personnel shall be provided to the following City agencies on an ongoing basis:
(a) Police Department
(b) Fire Department
(c) Planning and Building Agency
(d) Community Development Agency
4.16 Emergency Evacuation Plan. Developer shall submit and obtain approval of an
Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to
issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for
the on -site personnel shall be provided to the City on an ongoing basis and the approved EEP shall
be kept onsite and also be submitted to the following City agencies:
(a) Police Department
(b) Fire Department
(e) Planning and Building Agency
(d) Community Development Agency
4.17 Crime Free Housing Policy. Developer shall work with City staff to develop a crime
free housing policy, procedure, and design plan (the "CFH Plan"). Developer shall submit and
obtain approval from the PBA that the CFH Plan meets the requirements of this Subsection 4.17
prior to issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented
and administered by Property management.
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4.18 Onsite Parking Management Plan. Developer has agreed to provide twenty (20) ofsite
parking stalls for residents and visitors of the Project and actively monitor the parking demand of
the Project site. Developer shall continually monitor and take commercially reasonable measures
to manage the parking demand of the Project site - to mitigate the use of offsite parking spaces on
private or public properties and/or right-of-way. Prior to issuance of the Certificate of Occupancy,
Developer shall submit and obtain approval from the Planning and Building Agency of a Parking
Management Plan (the "PMP") to address the parking demands of the Project. The approved PMP
shall be adhered to and be enforced by the Project at all times.
4.19 Marketing and Resident Selection Plan. Each Affordable Unit shall be leased to
Eligible Households selected by Developer who meet all of the requirements provided herein.
Prior to Certificate of Occupancy, Developer shall prepare and obtain City's approval of a
marketing program and resident selection plan for the leasing of the Affordable Units at the Project
("Marketing Program"). The leasing of the Affordable Units shall thereafter be marketed in
accordance with the Marketing Program as the same may be amended from time to time with
City's prior written approval. Upon request, Developer shall provide City with periodic reports
with respect to the leasing of the Housing Units.
4.19.1 The Marketing Program shall include, but is not limited to,
marketing and community outreach activities, proposed tenant selection criteria,
occupancy standards, income requirements, timeline and details for outreach and
marketing, data collection, record keeping and monitoring, procedures for complaints, and
compliance assessment. Components of the resident selection plan shall include, but are
not limited to, the application process, interview procedure, apartment offer and
assignment, rejected applications, and wait list management. All requirements set forth
herein shall be incorporated in the Marketing Program.
5. EFFECT OF LOSS OF PROJECT SUBSIDY AND/OR FORECLOSURE
It is anticipated that the Project will be supported by various subsidy programs, including,
without limitation, Project -Based Section 8 rental subsidy payments, and a capitalized operating
subsidy reserve (collectively with any other subsidies committed to the Project as of the Effective
Date, the "Project Subsidy"). Notwithstanding anything to the contrary contained in this
Agreement, if, during the "Density Bonus Housing Agreement Term" (as defined in Section 6
below), (i) any portion of the Project Subsidy is reduced, terminated or not renewed, through no
fault of Developer, such that the Project Subsidy as it exists as of the Effective Date is no longer
available (or available in a lesser amount) then the Developer may request approval of the City
(any such request, an "Affordability Adjustment Request") to (a) allow persons and families whose
income does not exceed sixty (60%) of the area median income for the Orange County, California
PMSA, adjusted for household size, as published by HCD ("60%Households") to rent and occupy
some or all of the Affordable Units (any such Affordable Units, the "Adjusted Affordable Units"),
and (b) to increase the rent on the Adjusted Affordable Units to rents that are affordable to 60%
Households, pursuant to Health and Safety Code section 50053(b).
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Concurrently with any Affordability Adjustment Request, Developer shall provide City
with evidence of the anticipated reduction or termination of the Project Subsidy, and of the
adjustments and increases necessary to enable the Project to attain, and to maintain throughout the
Density Bonus Housing Agreement Term, a positive cash flow. Developer's Affordability
Adjustment Request and/or the termination of special and/or target population requirements is
subject to the City's approval, such approval not to be unreasonably withheld, conditioned or
delayed.
Upon City's approval of any Affordability Adjustment Request, Developer hereby agrees
to the following:
A. Developer shall provide tenants in the Adjusted Affordable Units with at least sixty
(60) days' written notice of any rent increase and shall notify each tenant that if they have received
a tenant -based voucher from the Santa Ana Housing Authority or any other governmental entity
they may use such voucher to pay the rent for their Adjusted Affordable Unit;
B. No later than sixty (60) days prior to the proposed implementation of any rent
increase, Developer shall submit to City a schedule of any proposed increase in the rent for review
and approval by City (such approval not to be unreasonably withheld, conditioned or delayed).
6. TERM OF THIS AGREEMENT
The tern of this Agreement ("Density Bonus Housing Agreement Term") shall commence
on the Effective Date and shall continue until the date that is fifty-five (55) years after the City
issues the last certificate of occupancy for the building in which the Affordable Units are located.
DEFAULT AND TERMINATION; INDEMNIFICATION
7.1 Default. Failure or delay by any Party to perform any term or provision of this
Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party
specifying the default (or such other period specifically provided herein), constitutes a default
under this Agreement; provided, however, if such default is of the nature reasonably requiring
more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by
commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such
cure to completion. Except as required to protect against further damages, the injured Party may
not institute proceedings against the Party in default until the time for cure has expired. Failure or
delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time
of default.
7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are
cumulative, and the exercise by either Party of one or more of its rights or remedies shall not
preclude the exercise by it, at the same or different tunes, of any other rights or remedies for the
same default or any other default by the other Party. Notwithstanding anything to the contrary
contained in this Agreement, in no event shall either Party be liable for speculative, consequential,
punitive or other indirect damages, and each Party waives any right to collect speculative,
consequential, punitive or other indirect damages against the other Party.
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7.3 Indemnification. In addition to any other indemnity specifically provided in this
Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of
Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be
joint defense counsel upon City's and Developer's consent) indemnify and hold harmless City and
its respective officers, officials, agents, employees, representatives, and volunteers (collectively,
"Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or
omission of Developer in connection with its obligations under this Agreement, except to the
extent caused by the negligence or willful misconduct of any of the Indemnitees.
7.4 Termination. Prior to the issuance of building permits for the Project, Developer
has the right to terminate this Agreement by written notice to City if one or more of the following
does not occur: (1) approval and execution of a ground lease between Property Owner and
Developer (or an entity formed by Developer to lease the Property) in their reasonable discretion
for the lease of the Property; or, (2) receipt by Developer of all financing required for the Project.
8. ASSIGNMENT; COVENANTS RUN WITH THE LAND
8.1 Assignment by Developer.
8.1.1 Prohibited Transfers or Assi mg ments. Except as authorized in this Section
or Section 8.1.2 below, Developer shall not sell, transfer, or assign the Property or Project in whole
or in part, or transfer or assign Developer's rights and obligations in this Agreement, in whole or
in part, without City's prior written approval, which shall not be unreasonably withheld,
conditioned or delayed ("Permitted Transfer"); provided, however, Developer shall have the right
without City's prior written approval to transfer or assign the Property, Project and/or Developer's
rights and obligations in this Agreement to any entity that is controlled by, or is under common
control with, Developer or Developer's managing general partner, and Developer shall thereafter
be released from any future obligations under this Agreement. In connection with Permitted
Transfer, Developer shall: (i) notify City in writing of the sale, transfer, or assignment of all or any
portion of the Property, and (ii) deliver to City an assignment and assumption agreement (or other
agreement) in a form approved by City in its reasonable discretion and executed by Developer and
its transferee/assignee pursuant to which Developer's transferee/assignee assumes all of
Developer's covenants and obligations set forth herein with respect to the Property or the portion
thereof so transferred. Any request for transfer or assignment of the Agreement by Developer
shall require the payment of fees or a deposit to pay for the City's actual, documented expenses to
review the request. Upon the delivery of the assignment and assumption agreement as provided
for above for a Permitted Transfer, or in the event of a sale of the Property/Project as provided for
in this Section 8.1.1, Developer shall be released from any future obligations under this
Agreement.
8.1.2 Lease of Property. Developer agrees and declares that the Property and the
Project shall be leased, rented, used, occupied, operated, and approved subject to all obligations
set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and
protecting the value and attractiveness of the Property and the Project. All of the obligations set
forth or incorporated in this Agreement shall constitute covenants which run with the land and
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shall be binding on Developer and its successors and assigns, and all parties having or acquiring
any right, title or interest in, or to any part of the Property or Project. Developer further
understands and agrees that the Density Bonus permit approvals received for this Project have
been made on the condition that Developer and all subsequent lessees, or other successors and
assigns of the Property and/or Project lease and rent the Affordable Units in accordance with the
terms and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of fifty-five
(55) consecutive years commencing upon the date of issuance of the last certificate of occupancy
for the Project.
8.1.3 Subsequent Assignment. As used in this Agreement, the term "Developer"
shall be deemed to include any such transferee or assignee after the date such sale, transfer, or
assignment occurs in compliance with this Agreement.
8.1.4 Unpermitted Assignments Void. Any sale, transfer, or assignment made in
violation of this Agreement shall be null and void, and City shall have the right to pursue any right
or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales,
transfers, or assignments.
8.2 Covenants Run with the Land. The Property shall be used, occupied and improved
subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions,
restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall
run with the Property and shall be binding upon Developer and all persons having any right, title
or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall
inure to the benefit of City and its successors and assigns, and may be enforced by City and its
successors and assigns. The covenants established in this Agreement shall, without regard to
technical classification and designation, be binding for the benefit and in favor of City and its
successors and assigns, and the parties hereto expressly agree that this Agreement and the
covenants herein shall run in favor of City. Furthermore, all of the covenants, conditions, and
restrictions contained herein shall also constitute easements in gross running in favor of City. City
is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants
running with the land, for and in its own right and for the purposes of protecting the interests of
the community and other parties, public or private, in whose favor and for whose benefit this
Agreement and the covenants running with the land have been provided. Developer hereby
declares its understanding and intent that the burden of the covenants set forth herein touch and
concern the land and that the Developer's lease interest in the Property is rendered less valuable
thereby. Developer hereby further declares its understanding and intent that the benefit of such
covenants touch and concern the land by enhancing and increasing the enjoyment and use of the
Property by the citizens of City and by furthering the health, safety, and welfare of the residents
of City.
9. MISCELLANEOUS
9.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth
and contain the entire understanding and agreement of the parties with respect to the density bonus
incentive and concession provided to the Project, and there are no oral or written representations,
understandings or ancillary covenants, undertakings or agreements which are not contained or
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expressly referred to herein. No testimony or evidence of any such representations, understandings
or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine
the terms or conditions of this Agreement.
9.2 Amendment. Any alteration, change or modification of or to this Agreement, in
order to become effective, shall be made in writing and in each instance approved by the City
Council, or through the City Manager as detailed herein, and signed on behalf of each Party. The
City Manager shall have the authority to make approvals, issue interpretations, execute documents,
waive provisions, and/or enter into amendments of this Agreement on behalf of City, including
but not limited to amendments to this Agreement for consistency with other Project agreements,
funding sources or to assist Developer in obtaining other funding sources. Any requested
alteration, change or modification of the Agreement by Developer shall require the payment of
fees or deposit by Developer to City, as applicable, to pay for City's actual, documented expenses
to review the request. Each alteration, change, or modification to this Agreement shall be recorded
against the Property in the Official Records of Orange County, California.
9.3 Notices.
9.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited
to, the communication of notice, request, demand, approval, statement, report, acceptance,
consent, waiver, appointment or other communication required or permitted hereunder. All notices
shall be in writing and shall be considered given either: (i) when delivered in person to the
recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in
the United States mail in a sealed envelope as either registered or certified mail with return receipt
requested, and postage and postal charges prepaid, and addressed to the recipient named below; or
(iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and
postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with
a known and reliable next -day document delivery service (such as Federal Express), charges
prepaid and delivery scheduled next -day to the recipient named below, provided that the sending
party receives a confirmation of delivery from the delivery service provider. All notices shall be
addressed as follows:
If to City: City of Santa Ana
Community Development Agency
20 Civic Center Plaza (M-26)
P.O. Box 1988
Santa Ana, California 92702
Attention: Housing Manager
With a copy to: Office of the City Attorney
City of Santa Ana
20 Civic Center Plaza, 7th Floor (M-29)
Santa Ana, California 92702
If to Developer: During construction:
Jamboree Housing Corporation
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9138-126780\15 17029.2
17701 Cowan Ave., Suite 200
Irvine, CA 92614
Attention: Chief Executive Officer
Following construction:
Jamboree Housing Corporation
17701 Cowan Ave., Suite 200
Irvine, CA 92614
Attention: Asset Manager
With copies to: Rutan & Tucker, LLP
18575 Jamboree Road, 9' Floor
Irvine, CA 92612
Attention: Patrick D. McCalla
And to: WISEPlace
1411 N. Broadway
Santa Ana, CA 92706
Attention: Brateil Aghasi
And to: Odu & Associates, PC
31805 Temecula Parkway 4720
Temecula, CA 92592
Attention: Nkechi C. Odu, Esq.
9.3.2 Change of Address. Either Party may, by notice given at any time, require
subsequent notices to be given to another person or entity, whether a party or an officer or
representative of a Party, or to a different address, or both. Notices given before actual receipt of
notice of change shall not be invalidated by the change.
9.4 Severability. If any term, provision, covenant or condition of this Agreement shall
be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected
thereby to the extent such remaining provisions are not rendered impractical to perform, taking
into consideration the purposes of this Agreement.
9.5 Interpretation and Governing Law. This Agreement and any dispute hereunder
shall be governed and interpreted in accordance with the laws of the State of California without
regard to conflict of law principles. This, Agreement shall be construed as a whole according to
its fair language and common meaning to achieve the objectives and purposes of the Parties hereto,
and the rule of construction to the effect that ambiguities are to be resolved against the drafting
Party shall not be employed in interpreting this Agreement, all Parties having been represented by
counsel in the negotiation and preparation hereof.
9.6 Section Headings. All section headings and subheadings are inserted for
convenience only and shall not affect any construction or interpretation of this Agreement.
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9.7 Singular and Plural. As used herein, the singular of any word includes the plural,
and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include
the other as context so dictates.
9.8 Intentionally Omitted.
9.9 Time of Essence. Time is of the essence in the performance of the provisions of
this Agreement as to which time is an element.
9.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit
attached hereto, use of the tern "days" shall mean calendar days. For purposes of this Agreement
and all Exhibits attached hereto, "business days" shall mean every day of the week except
Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a)
or successor statute, and any days in which Santa Ana City Hall is closed for business.
9.11 Waiver. Failure by a Party to insist upon the strict performance of any of the
provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon
the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand
strict compliance by the other Party with the terms of this Agreement thereafter.
9.12 Non -Discrimination. In performing its obligations under this Agreement,
Developer shall not discriminate because of race, color, creed, religion, sex, marital status, sexual
orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable
law, in the recruitment, selection, training, utilization, promotion, termination or other related
activities. Developer affirms that it is an equal opportunity employer and shall comply with all
applicable federal, state and local laws and regulations.
9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall
have any right of action based upon any provision of this Agreement.
9.14 Force Majeure. Neither Party shall be deemed to be in default where failure or
delay in performance of any of its obligations under this Agreement is caused by floods,
earthquakes, other Acts of God, fires, epidemics or pandemics as declared by federal, state, or local
emergency resolution, wars, riots or similar hostilities, strikes and other labor difficulties beyond
the Party's control (including the Party's employment force), court actions (such as restraining
orders or injunctions), or other causes reasonably beyond the Party's control, including delays by
any governmental entity (although the City may not benefit from this provision for a delay that
results from City's failure to perform its obligations under this Agreement), or an insurance
company of either party. If any such events shall occur, the term of this Agreement and the time
for performance by either Party of any of its obligations hereunder may be extended by the written
agreement of the Parties for the period of time that such events prevented such performance.
9.15 Mutual Covenants. The covenants contained herein are mutual covenants and also
constitute conditions to the concurrent or subsequent performance by the Party benefited thereby
of the covenants to be performed hereunder by such benefited Party.
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9.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and
the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to
this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and
constitute covenants running with the land. Each covenant to do or refrain from doing some act
hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon
every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding
upon each Party and each successor in interest approved pursuant to this Agreement during
ownership of the Property or any portion thereof.
9.17 Counterparts. This Agreement may be executed by the Parties in counterparts,
which counterparts shall be construed together and have the same effect as if all of the Parties had
executed the same instrument.
9.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or
brought by a Party hereto for the purpose of enforcing, construing or determining the validity of
any provision of this Agreement shall be filed and tried in the Superior Court of the County of
Orange, State of California, and the Parties hereto waive all provisions of law providing for the
filing, removal or change of venue to any other court.
9.19 Protect as a Private Undertaking. It is specifically understood and agreed by and
between the Parties hereto that the development of the Project is a private development, that neither
Party is acting as the agent of the other in any respect hereunder, and that each Party is an
independent contracting entity with respect to the terms, covenants and conditions contained in
this Agreement. No partnership, joint venture or other association of any kind is formed by this
Agreement. The only relationship between City and Developer is that of a government entity
regulating the development of private property and the Developer of such property.
9.20 Further Actions and Instruments. Each of the Parties shall cooperate with and
provide reasonable assistance to the other to the extent contemplated hereunder in the performance
of all obligations under this Agreement and in the satisfaction of the Project and conditions of this
Agreement. Upon the request of either Party at any time, the other Party shall promptly execute,
with acknowledgment or affidavit if reasonably required, and file or record such required
instruments and writings and take any actions as may be reasonably necessary under the terms of
this Agreement to carry out the intent and to fulfill the provisions of this Agreement or the Project
or to evidence or consummate the transactions contemplated by this Agreement. City hereby
authorizes City Manager to take such other actions and negotiate and execute any additional
agreements or amendments to this agreement as may be reasonably necessary or proper to fulfill
the City's obligations under this Agreement. The City Manager may delegate her or his powers
and duties under this Agreement to an authorized management level employee of the City.
9.21 Estoppel Certificate. Within ten (10) business days following a written request by
any of the Parties, the other Party shall execute and deliver to the requesting Party a statement
certifying that (i) either this Agreement is unmodified and in full force and effect or there have
been specified (date and nature) modifications to the Agreement, but it remains in full force and
effect as modified; and (ii) either there are no known current uncured defaults under this
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Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The
statement shall also provide any other reasonable information requested. The failure to timely
deliver this statement shall constitute a conclusive presumption that this Agreement is in full force
and effect without modification, except as may be represented by the requesting Party, and that
there are no uncured defaults in the performance of the requesting Party, except as may be
represented by the requesting Party.
9.22 No Subordination; Mortgagee Protection; Covenants Do Not Impair Liens. City's
approval of the necessary land use entitlements that authorize Developer to develop, operate, and
maintain the Project or to cause the development, operation and maintenance of the Project was
based upon Developer's obligation to provide the Affordable Units pursuant to the State Density
Bonus Law, City Density Bonus for Affordable Housing, and the terms and conditions of this
Agreement. For the Term of the Density Bonus Housing Agreement, this Agreement shall have
priority over any and all mortgages, deeds of trust, and other similar forms of secured financing
recorded against the Property or any portion thereof. Developer expressly understands and
acknowledges that state law requires preservation of affordability covenants in connection with
the approval of this density bonus project. This Agreement shall not prevent or limit Developer, in
Developer's reasonable discretion, from encumbering the Property or any portion thereof of or any
improvement thereon by any mortgage, deed of trust or other security device securing financing
with respect to the Property or Project and such action shall not constitute an assignment of this
Agreement. No violation or breach of covenants, conditions, restrictions, provisions, or limitations
contained in this Agreement shall defeat or render invalid or diminish or in any way impair the
lien or charge of any mortgage or deed of trust or security instrument.
9.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action
against the other Party to this Agreement arising out of or in connection with this Agreement, the
prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs
of investigation, and costs of suit from the losing Party.
9.24 Authority to Execute. The person or persons executing this Agreement on behalf
of each Party warrants and represents that he or she/they have the authority to execute this
Agreement on behalf of his or her/their corporation, partnership or business entity and warrants
and represents that he or she/they has/have the authority to bind the Party to the performance of its
obligations hereunder.
{Signatures on followingpage)
23
9138-126780A1517029.2
A-2022-131
IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing
Agreement to be executed on the date set forth at the beginning of this Agreement.
ATTES' -.
ie
CITY OF SANTA ANA
DaiFGomezl Steven A. Mendoza
Clerk of the Council A"11 w4 -City Manager
1: 1 I:U
Sonia R. Carvalho
RECOMMENDED FOR APPROVAL: NORTH BROADWAY HOUSING
PARTNERS LP,
a California limited partnership
- _kABy: JHC-North Broadway LLC,
Steven A. Mendoza a California limited liability company,
Executive Director its General Partner
Community Development Agency
By: Jamboree Housing Corporation,
a California nonprofit public benefit
corporation, its Managi g ennn ber
By. AU ,
Name: it iCNAL SS /
Title: Cott? 0AJ11D1q1fi OWI(pL
24
9138-126780\1517029 2
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 done 13 , 2022, before me, Julian Mutiln Brjrrios ,
Notary Public, personally appeared 09'chisel Massie , who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
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.
--------------
oAVV MAgIN CApIO�S
Notary Public M BARRIOS
Orange County }_
Commiufon A 2373SSt
My Comm. Eapirn Sep 19, 2023
(affix seal in above space)
4881-2302-7203
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 29, 2022 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Steven A. Mendoza
who proved to me on the basis of satisfactory evidence to be the person whose name
subscribed to the within instrument and acknowledged to me thaAliANekhey executed the same in
j lberlttw-qr authorized capacityoes), and that by(!thetr signature(sron 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.
,/� - , •��- _.CUUtIAM. rERNAREZ4NAwD
WITNE yhand and offialgge1. NoCCnrniaOranbeary
n n Cammlejlan 8 2288597
My Comm. Explra� Zan 15, 2028
By execution below, Property Owner consents to the recordation of this Agreement against
its fee interest in the Property:
WISEPLACE,
a California nonprofit public benefit corporation
X�C Iv-=-
By:
25
9138-126780A1517029.2
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 28, 2022 before me, Claudia M. Fernandez -Shaw, Notary Public
(insert name and title of the officer)
personally appeared Brateil Aghasi
who proved to me on the basis of satisfactory evidence to be the pers�on `) whose nameare-
subs Ibed to the within instrument and acknowledged to me that.;Q&bh bray executed the same in
Ir authorized capacity(isaj; and that by bis�eirsignature(oon the instrument the
personas , 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.
hand
and official
CLAUDIA M. fERNDE2-SNAW
Notary pubi,-NA'Iffornia
Orange County
Commission M 2398597
��,•°n" My Carom. Expire Jan 25, 2026
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
26
9138-126780\15170292
Order No: 09196820-919-KRC-KRE
EXHIBIT "A"
All that certain real property situated in the County of Orange, State of California, described as follows
PARCEL 1:
THE EAST 130.00 FEET OF THAT PORTION OF THE LAND ALLOTTED TO JACOB ROSS, AS DESCRIBED IN
THE FINAL DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, WHICH WAS ENTERED
SEPTEMBER 12, 1869 IN BOOK `B", PAGE 410 OF JUDGMENTS OF THE DISTRICT COURT OF THE 17TH
JUDICIAL DISTRICT IN AND FOR LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED, AS FOLLOWS:
BEGINNING AT A POINT 1028.50 FEET SOUTH OF THE NORTHEAST CORNER OF SECTION 12, TOWNSHIP 5
SOUTH, RANGE 10 WEST, SAN BERNARDINO MERIDIAN;
THENCE WEST 319.70 FEET TO A PORTION THE CENTERLINE OF SYCAMORE STREET, AS DESCRIBED IN
THAT CERTAIN FINAL JUDGMENT, SUPERIOR COURT CASE NO. 23280, A CERTIFIED COPY OF WHICH WAS
RECORDED JANUARY 8, 1929 IN BOOK 227, PAGE 401 OF OFFICIAL RECORDS OF ORANGE COUNTY,
CALIFORNIA, SAID POINT BEING THE TRUE POINT OF BEGINNING;
THENCE WEST 310.37 FEET TO THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN A DEED TO T. J.
MULLINIX RECORDED OCTOBER 29, 1897IN BOOK 33, PAGE 197 OF DEEDS OF SAID ORANGE COUNTY;
THENCE NORTH 77 FEET 1 INCH;
THENCE EAST 310.37 FEET TO SAID CENTERLINE;
THENCE SOUTH 77 FEET 1 INCH TO THE TRUE POINT OF BEGINNING.
PARCEL 2
THE WEST HALF OF THAT PORTION OF THE LAND ALLOTTED TO JACOB ROSS, AS DESCRIBED IN THE
FINAL DECREE OF PARTITION OF THE RANCHO SANTIAGO DE SANTA ANA, WHICH WAS ENTERED
SEPTEMBER 12, 1868 IN BOOK `B", PAGE 410 OF JUDGEMENT OF THE DISTRICT COURT OF THE 17TH
JUDICIAL DISTRICT IN AND FOR LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT 1028.50 FEET SOUTH OF THE NORTHEAST CORNER OF SECTION 12, TOWNSHIP 5
SOUTH, RANGE 10 WEST, SAN BERNARDINO MERIDIAN;
THENCE WEST 630.00 FEET;
THENCE SOUTH 75.00 FEET;
THENCE EAST 630.00 FEET;
THENCE NORTH 75.00 FEET TO THE POINT OF BEGINNING.
THE EAST LINE OF SAID WEST HALF BEING THE CENTERLINE OF SYCAMORE STREET, AS DESCRIBED IN
THAT CERTAIN FINAL JUDGMENT, SUPERIOR COURT CASE NO. 23280, A CERTIFIED COPY OF WHICH WAS
RECORDED JANUARY 8, 1929 IN BOOK 227, PAGE 401 OF OFFICIAL RECORDS OF ORANGE COUNTY,
CALIFORNIA.
Assessor's Parcel Number: 398_523_04
EXHIBIT B
TENANT VERIFICATION
27
9138-126780\1517029.2
. TENANT INCOME CERTIFICATION
❑ Initial Certification ❑ Recertification ❑ Other
Effective Date:
Move -In Date:
MM-DD-YYYY)
PART I - DEVELOPMENT DATA
Property Name: County: TCAC#: BIN#:
Address: If applicable, CDLAC#:
Unit Number: # Bedrooms: Square Footage:
PART II. HOUSEHOLD COMPOSITION
❑ Vacant (Check if unit was vacant on December 31 of the Effective Date Year
141-1
Mbr#
Last Name
First Name
Middle
Initial
Relationship to Head
of Household
Date of Birth
(MM/DD/YYYY)
Student Status
(Check One)
Last 4 digits of
Social Security
1
HEAD
FTO/PTOMA❑
2
FTO/PTO/NA❑
3
FrO/PTOMA❑
4
FTO/PTEIMA❑
5
FTO/PT/NA❑
6
FTIJVTOMAD
%
FTO/PTOMAD
PART IH. GROSS ANNUAL INCOME USE ANNUAL AMOUNTS
Mbr#
(A)
Employment or Wages
(B)
Soc. Security/Pensions
(C)
Public Assistance
(D)
Other Income
NHE
TOTALS
$
$
$
$
Add totals from (A) through (D), above TOTAL INCOME (E):
$
PART IV. INCOME FROM ASSETS
HH
Mbr #
(F)
Type of Asset
(0)
C/I
(H)
Cash Value of Asset
(I)
Annual Income from Asset
TOTALS: $ $
Enter Column (H) Total Passbook Rate
Ifover $5000 $ X 0.06% _ (J) Imputed Income $
Enter the greater of the total of column I, or J: imputed income TOTAL INCOME FROM ASSETS (IC) $
(L) Total Annual Household Income from all Sources [Add (E) + (K)]
$
HOUSEHOLD CERTIFICATION & SIGNATURES
The information om this form will be used to determine maximum income eligibility. I/we have provided for each person(s) set forth in Part 11 acceptable verification of
current anticipated annual income. Uwe agree to notify the landlord immediately upon any member of the household moving out of the unit or any new member
moving in. I/we agree to notify the landlord immediately upon any member becoming a full time student.
Under penalties of perjury, I/we certify that the information presented in this Certification is true and accuratem the best of my/our knowledge and belief. The undersigned
further understands that providing false representations herein constitutes an act of fraud. False, misleading or incomplete information may result in the termination of
the lease agreement.
Signature (Date) signature (Dale)
Signature
(Date) Signature
Tenant Income Certification (April 2021)
I PART V. DETERMINATION OF INCOME ELIGIBILITY I
TOTAL ANNUAL HOUSEHOLD Unit Meets Federal
INCOME FROM ALL SOURCES: Income Restriction at:
From item (L) on page 1 $ ❑ 60% 0 50%
Current Federal LIHTC Income Limit per
Family Size (Federal Income Restriction at
60%, 50% or A.I.T. (20%- 80%)):
If Applicable, Current Federal Bond
Income Limit per Family Size:
Household Income as of Move -in:
RECERTIFICATION ONL
Current Federal LIHTC
Income Limit x 140%:
Or Federal A.I.T. at:
❑ 80% 0 70% 0 60% 0 50%
❑ 40% 0 30% 0 20%
Unit Meets State Deeper
Targeting Income Restriction
at:
❑ Other %
Household Income exceeds
140% at recertification:
❑ Yes ❑ No
Household Size at Move -in:
PART VI. RENT
Tenant Paid Monthly Rent:
$
Federal Rent Assistance: $ *Source:
Monthly Utility Allowance:
$
Non -Federal Rent Assistance: $ (*0-8)
Other Monthly Non -optional charges:
$
Total Monthly Rent Assistance: $
GROSS MONTHLY RENT FOR UNIT:
*Source of Federal Assistance
(Tenant paid rent plus Utility Allowance &
1 **HUD Multi -Family Project Based Rental Assistance (PBRA)
other non -optional charges)
$
2 Section 8 Moderate Rehabilitation
3 Public Housing Operating Subsidy
Maximum Federal LIHTC Rent Limit for
4 HOME Rental Assistance
this unit:
$
5 HUD Housing Choice Voucher (HCV), tenant -based
6 HUD Project -Based Voucher (PBV)
If Applicable, Maximum Federal & State
7 USDA Section 521 Rental Assistance Program
LIHTC Bond Rent Limit for this unit:
$
8 Other Federal Rental Assistance
Unit Meets Federal Rent Restriction at:
❑ 60% 0 50%
0 Missing
Or Federal A.I.T. at:
❑ 80% 0 70% 0 60%
** (PBRA) Includes: Section 8 New Construction/Substantial Rehabilitation;
❑ 50% 0 40% 0 30%
Section 8 Loan Management, Section 8 Property Disposition; Section 202
0 20%
Project Rental Assistance Contracts (PRAC)
If Applicable, Unit Meets Bond Rent
Restriction at:
❑ 60% ❑ 50%
Unit Meets State Deeper
Targeting Rent Restriction at:
❑ Other: %
PART VII. STUDENT STATUS
*Student Explanation:
ARE ALL OCCUPANTS FULL TIME STUDENTS?
If yes, Enter student explanation* 1 AFDC VFANF Assistance
(also attach documentation) 2 Job Training Program
❑ Yes ❑ No
3 Single Parent/Dependent Child
Enter 4 Married/Joint Return
1-5 5 Former Foster Care
PART VIII. PROGRAM TYPE
Identify the program(s) for which this household's unit will be counted toward the property's occupancy requirements.
Select one of the following. Select all that apply.
❑ 9% Allocated Federal Housing Tax Credit ❑ HOME (including TCAP)
❑ 4% Allocated Federal Housing Tax Credit ❑ CDBG
❑ Tax -Exempt Bond Only (No tax credits) ❑ Other HUD, including 202, 811, and 236
❑ National Housing Trust Fund
❑ USDA Rural Housing Service, including 514, 515, and 538
❑ Other state or local housing programs
SIGNATURE OF OWNER/REPRESENTATIVE
Based on the representations herein and upon the proof and documentation required to be submitted, the individualist named in Prat II of this Tenant
Income Certification is/are eligible under the provisions of Section 42 of the Internal Revenue Code, as amended, and the Land Use Restriction
Agreement (if applicable), to live in a unit in this Project.
SIGNATURE OF OWNER/REPRESENTATIVE DATE
2 Tenant Income Certification (April 2021)
PART IX. SUPPLEMENTAL INFORMATION FORM
The California Tax Credit Allocation Committee (CTCAC) requests the following information in order to comply with the Housing
and Economic Recovery Act (HERA) of 2008, which requires all Low Income Housing Tax Credit (LII-ITC) properties to collect and
submit to the U.S. Department of Housing and Urban Development (HUD), certain demographic and economic information on tenants
residing in LIHTC financed properties. Although the CTCAC would appreciate receiving this information, you may choose not to
furnish it. You will not be discriminated against on the basis of this information, or on whether or not you choose to furnish it. If you
do not wish to furnish this information, please check the box at the bottom of the page and initial.
Enter both Ethnicitv and Race codes for each household member (see below for codes)
TENANT DEMOGRAPHIC PROFILE
HH
Mbr#
Last Name
First Name
Middle
Initial
Race
Ethnicity
Disabled
1
2
3
4
5
6
7
The Following Race Codes should be used:
1 — White —A person having origins in any of the original people of Europe, the Middle East or North Africa.
2 — Black/African American — A person having origins in any of the black racial groups of Africa. Terms such as "Haitian" apply to this
category.
3 — American Indian/Alaska Native — A person having origins in any of the original peoples of North and South America (including Central
America), and who maintain tribal affiliation or community attachment.
4 — Asian —A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent:
4a—Asian India
4e—Korean
4b—Chinese
4f—Vietnamese
4c—Filipino
4g—Other Asian
4d—Japanese
5 —Native Hawaiian/Other Pacific Islander — A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other
Pacific Islands:
5a—Native Hawaiian 5c—Samoan
5b—Guamanianor Chamorro 5d— Other Pacific Islander
6 —Other
7 — Did not respond. (Please initial below)
Note. Multiple racial categories may be indicated as such: 31—American Indian/Alaska Native & White, 41 —Asian & White, etc.
The Following Ethnicity Codes should be used:
1 — Hispanic — A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.
Terms such as "Latino" or "Spanish Origin" apply to this category.
2 —Not Hispanic — A person not of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless
of race.
3 — Did not respond. (Please initial below)
Disability Status:
l — Yes
If any member of the household is disabled according to Fair Housing Act definition for handicap (disability):
• A physical or mental impairment which substantially limits one or more major life activities; a record of such an impairment or
being regarded as having such an impairment. For a definition of "physical or mental impairment" and other terms used, please see
24 CFR 100.201, available at http://fa rbousing.com/legal-research/hud-regulatiions/24-cfr-100201-definitions.
• "Handicap" does not include current, illegal use of or addiction to a controlled substance.
• An individual shall not be considered to have a handicap solely because that individual is a transgender.
2—No
3 — Did not respond (Please initial below)
❑ Resident/Applicant: 1 do not wish to furnish information regarding ethnicity, race and other household composition.
(Initials)
(HH#) 1. 2. 3. 4. 5. 6. 7.
Tenant Income Certification (April 2021)
INSTRUCTIONS FOR COMPLETING
TENANT INCOME CERTIFICATION
Thisforne is to be completed by the owner or an authorized representative.
Part I - Development Data
Enter the type of tenant certification: Initial Certification (move -in), Recertification (annual recertification), or Other. If other, designate the purpose
of the recertification (i.e., a unit transfer, a change in household composition, or other state -required recertification).
Effective Date
Enter the effective date of the certification. For move -in, this should be the move -in date.
For annual income recertification's, this effective date should be no later than one year
from the effective date of the previous (re)certification.
Move -In Date
Enter the most recent date the household tax aedit qualified. This could be the move -in
date or in an acquisition relish property, this is not the date the tenant moved into the
unit, it is the most recent date the management company income qualified die unit for
tax credit purposes.
Property Name
Enter the name of the development.
County
Enter the county (or equivalent) in which the building is located.
TCAC#
Enter the project number assigned to the property by TCAC. Please include hyphens
between the state abbreviation, four digit allocating year, and project specific number.
For example: CA-2010-123
BIN #
Enter the building number assigned to the building (from IRS Form 8609).
Address
Enter the physical address of the building, including street number and name, city, state,
and zip code.
If applicable, CDLAC#
If project is awarded 4% bonds please enter the project number assigned to the property
by CDLAC. Please include hyphens between the state abbreviation, four digit allocating
year, and project specific number. For example: I6-436
Unit Number Enter the unit number.
# Bedrooms Enter the number of bedrooms in the unit.
Square Footage Eater the square footage for the entire unit.
Vacant Unit Check if unit was vacant on December 31 of requesting year. For example, for the
collection of 2011 data, this would refer to December 31, 2011.
Part II - Household Composition
List all occupants of the unit. State each household member's relationship to the head of household by using one of the following definitions:
H Head of Household
S
Spouse U Unborn Child/Anticipated
A Adult Co -Tenant
O
Other Family Member Adoption or Foster
C Child
F
Foster child(ren)/adult(s)
L Live-in Caretaker
N
None of the above
Date of Birth
Enter each household member's date of birth.
Student Status Check FT for Full-time student, PT for Part-time student, or N/A if household member
is not a student and question does not apply.
Last Four Digits of Social Security For each tenant 15 years of age or older, enter the last four digits of the social security
Number number or the last four digits of the alien registration number. If the last four digits of
SSN or alien registration is missing, enter 0000. For tenants under age 15, social security
number not required, although please enter 0000.
If there are more than 7 occupants, use an additional sheet of paper to list the remaining household members and attach it to the certification.
Tenant Income Certification (April 2021)
Part III - Annual Income
See HUD Handbook 4350.3 for complete instructions on verifying and calculating income, including acceptable foams of verification.
From the third party verification forms obtained from each income source, enter the gross amount anticipated to be received for the twelve months
from the effective date of the (re)centification. Complete a separate line for each income -earning member. List each respective household member
number from Part Il. Include anticipated income only if documentation exists verifying pending employment. If any adult states zero -income, please
note "zero" in the columns of Part III,
Column (A)
Enter the annual amount of wages, salaries, tips, commissions, bonuses, and other income from employment;
distributed profits and/or net income from a business.
Column (B)
Eater the annual amount of Social Security, Supplemental Security Income, pensions, military retirement, etc.
Column (C)
Enter the annual amount of income received from public assistance (i,e., TANF, general assistance, disability,
etc.).
Column (D)
Enter the annual amount of alimony, child support, unemployment benefits, or any other income regularly
received by the household.
Row (E)
Add the totals from columns (A) through (D), above. Enter this amount.
Part IV - Income from Assets
See HUD Handbook 4350.3 for complete instructions on verifying and calculating income from assets, including acceptable forms of
verification.
From the third party verification forms obtained from each asset source, list the gross amount anticipated to be received during the twelve months
from the effective date of the certification. If individual household member income is provided, list the respective household member number from
Pall Il and complete a separate line for each member.
Column (F) List the type of asset (i.e., checking account savings account etc.)
Column (G) Enter C (for current, if the family currently owns or holds the asset), or I (for imputed, if the family has disposed
of the asset for less than fair madcet value within two years of the effective date of (re)certification).
Column (FI) Enter the cash value of the respective asset.
Column (1) Enter the anticipated annual income from the asset (i.e., savings account balance multiplied by the annual
interest rate).
TOTALS Add the total of Column (H) and Column (I), respectively.
If the total in Column (H) is greater than $5,000, you must do an imputed calculation of asset income. Enter the Total Cash Value, multiply by
0.06% and enter the amount in Q), Imputed Income.
Row (K) Enter the greater ofthe total in Column (1) or O
Row (L) Total Annual Household Income From all Sources Add (E) and (K) and enter the total
HOUSEHOLD CERTIFICATION AND SIGNATURES
After all verifications of income and/or assets have been received and calculated, each household member age 18 or older must sign and date ire
Tenant Income Certification. For move -in, it is recommended that the Tenant Income Certification be signed no earlier than 5 days prior to the
effective date of the certification.
Part V — Determination of Income Eligibility
Total Annual Household Income from all Enter the number from item (L).
Sources
Current Federal LIHTC Income Limit per Enter the Current Move -in Income Limit for the household size — specifically, the max income
Unit Meets Federal Income Restriction at limit for the federal 60%, 50% or A.I.T (20%- 800%) set aside.
60%, 50% or A.I.T (20%- 80%)
Current Bond Income Limit per Family Enter the Current most restrictive Move -in Income Limit for the household size — specifically, the
Size max income limit incorporating both federal and in some instances more restrictive state standards
as reflected in the 50%or 60%set aside detailed in the Bond Regulatory Agreement.
Tenant Income Certification (April 2021)
Household Income at'Move-in For recertification only. Enter the household income from the move -in certification.
Household Size at Move -in Enter the number of household members from the move -in certification.
Current Federal LIHTC Income Limit x For recerlifications only. Multiply the current LIHTC Maximum Move -in Income Limit by
140%
I40% and enter the total. 140% is based on the Federal Set -Aside of 20/50 or 40160, or
A.I.T. (20% - 60% = 140% X 60%, 70%= 140%X 70% and 80%= 140%X 80%) as
elected by the owner for the property, not deeper targeting elections of 30%, 40%,
45%, 50%, etc. Below, indicate whether the household income exceeds that total. If the
Gross Annual Income at recertification is greater than 140% of the LIHTC Income Limit per
Family Size at Move -in date (above), then the available unit role must be followed.
Unit Meets Federal Income Restriction
Check the appropriate box for the income restriction that the household meets according to
at or Federal A.I.T. at
what is required by the federal set-aside(s) for the project.
Unit Meets State Deeper Targeting
If your agency requires an income restriction lower than the federal limit, enter the percent
Income Restriction at
required.
Part VI - Rent
Tenant Paid Monthly Rent
Enter the amount the tenant pays toward rent (not including rent assistance payments such as
Section 8).
Federal Rent Assistance
Enter the amount of rent assistance received from a federal program, if any.
Non -Federal Rent Assistance
Enter the amount of non-federal rent assistance received, if any.
Total Monthly Rent Assistance
Enter the amount of total rent assistance received, if any.
Source of Federal Rent Assistance
If federal rent assistance is received, indicate the single program source.
Monthly Utility Allowance
Enter the utility allowance. If the owner pays all utilities, enter zero.
Other Monthly Non -Optional Charges
Enter the amount of non -optional charges, such as mandatory garage rent, storage lockers,
charges for services provided by the development, etc,
Gross Monthly Rent for Unit
Enter the total of Tenant Paid Rent plus Utility Allowance and other nop-optional charges.
The total may NOT include amounts other than Tenant Paid Rent, Utility Allowances and
other non -optional charges. In accordance with tine definition of Gross Rent in IRC
§42(g)(2)(B), it may not include any rent assistance amount.
Maximum LIHTC Rent Limit for this
Enter tine maximum allowable gross rent for the unit. This amount must be the maximum
unit
amount allowed by the Current Income Limit per Family Size — specifically, the max rent
limit for the federal 50%, 60%or A.I.T. (20%- 80%) set aside. This does not include state
deeper targeting levels.
Maximum LIHTC Bond Rent Limit for
Enter the maximum allowable gross rent for the unit. This amount must be the maximum
this unit
amount allowed by the Current Income Limit per Family Size — specifically, the pox rent
incorporating both federal and in some instances more restrictive state standards as reflected
in the 50%or 60% set aside detailed in the Bond Regulatory Agreement.
Unit Meets Federal Rent Restriction at
Indicate the appropriate rent restriction that the unit meets according to what is required by
or Federal A.I.T. at
the federal set-aside(s) for the project.
Unfit Meets Bond Rent Restriction at
Indicate the appropriate rent restriction that the unit meets according to what is required by
the federal and state law for the project.
Unit Meets State Deeper Targeting Rent
If your agency requires a rent restriction lower than the federal limit, enter the percent
Restriction at
required.
Part VII - Student Status
If all household members are full time* students, check "yes". Full-time status is determined by the school the student attends. If at least one
household member is not a full-time student, check "no."
If"yes" is checked, the appropriate exemption must be listed in the box to the right. If none of the exemptions apply, the household is ineligible to
rent the unit.
Tenant Income Certification (April 2021)
Part VIII—Program Type
Select the program(s) for which this household's unit will be counted toward the property's occupancy requirements. One response from the first
column must be selected.
SIGNATURE OF OWNER/REPRESENTATIVE
It is the responsibility of the owner or the owner's representative to sign and date this document immediately following execution by the resident(s).
The responsibility of documenting and determining eligibility (including completing and signing the Tenant Income Certification form) and ensuring
such documentation is kept in the tenant file is extremely important and should be conducted by someone well trained in tax credit compliance.
These instructions should not be considered a complete guide on tax credit compliance. The responsibility for compliance with federal program
regulations lies with the owner of the building(s) for which the credit is allowable.
PART IX. SUPPLEMENTAL INFORMATION
Complete this portion of the form at move -in and at recertification's (only if household composition has changed from the previous
year's certification).
Tenant Demographic Profile Complete for each member of the household, including minors. Use codes listed on
supplemental form for Race, Ethnicity, and Disability Status.
Resident/Applicant Initials All tenants who wish not to tarnish supplemental information should initial this section.
Parent/Guardian may complete and initial for minor child(ren).
Tenant Income Certification (April 2021)
I TENANT INCOME CERTIFICATION QUESTIONNAIRE I
One Form per Adult Member of the Household
NAME: TELEPHONE NUMBER:
Initial Certification
Re -certification
Other
BIN
MONTHLY GROSS INCOME
1.
❑
❑
1 am self-employed. (List nature of self employment)
(use net income from self-employment only)
2,
❑
❑
1 have ajob and receive wages, salary, overtime pay, commissions, fees, tips, bonuses, and/or
other compensation: List fie businesses and/or companies that pay you:
Name of Employer
$
2)
$
3)
$
3.
❑
❑
I receive cash contributions of gifts including rent or utility payments, on an ongoing basis from
persons not living with me.
$
4.
❑
❑
I receive unemployment benefits.
5.
❑
❑
I receive Veteran's Administration, GI Bill, or National Guard/Military benefitshocome.
6.
❑
❑
I receive periodic social security payments.
'
7.
❑
❑
The household receives unearned income from family members age 17 or under (example:
Social Security, Trust Fund disbursements, etc.).
$
8.
❑
❑
1 receive Supplemental Security Income (SSI),
9.
❑
❑
1 receive disability or death benefits other than Social Security.
10.
❑
❑
1 receive Public Assistance Income (examples: TANF, AFDC)
11.
❑
❑
1 am entitled to receive child support payments.
❑
❑
1 am currently receiving child support payments.
$
If yes, from how many persons do you receive support?
$
❑
❑
I am currently making efforts to collect child support owed to me. List efforts being made to
collect child support:
12.
❑
❑
1 receive alimony/spousal support payments
13.
❑
❑
I receive periodic payments from trusts, annuities, inheritance, retirement funds or pensions,
insurance policies, or lottery winnings.
$
If yes, list sources:
$
1)
14.
❑
❑
1 receive income from real or personal property.
(use net earned income)
15.
❑
❑
Student financial aid (public or private, not including student loans)
Subtract cost of tuition from Aid received
$
*For Households receiving Section 8 Assistance Only
ASSET INFORMATION
YES NO
INTEREST RATE CASH VALUE
16. ❑ ❑
1 have a checking account(s).
If yes, list bank(s)
I)
%
$
2)
%
$
Tenant Income Questionnaire (July 2018)
17.
❑
❑
I have a savings account(s)
If yes, list bank(s)
%
$
2)
%
$
18.
❑
❑
1 have an EBT, Debit Visa, MasterCard account(s). (Including Social
Security wages, Unemployment, Public Assistance, Disability, Etc... )
If yes, list sources(s) of income being received/type of account(s)
1)
$
2)
$
3)
$
19.
❑
❑
1 have a revocable trust(s)
If yes, list bank(s)
1)
%
$
20.
❑
❑
1 own real estate.
If yes, provide description:
$
21.
❑
❑
I own stocks, bonds, or Treasury Bills
If yes, list sources/bank names
l)
%
$
2)
%
$
3)
%
$
22.
❑
❑
I have Certificates of Deposit (CD) or Money Market Account(s).
If yes, list sourceebank names
1)
%
$
2)
%
$
3)
%
$
23.
❑
❑
I have an IRA/Lump Sum Pension/Keogh Account/401K.
If yes, list bank(s)
1)
%
$
2)
%
$
24.
0
❑
I have a whole life insurance policy.
If yes, how many policies
$
25.
❑
❑
1 have cash on hand.
26.
❑
❑
I have disposed of assets (i.e. gave away money/assets) for less than the
fair market value in the past 2 years.
If yes, list items and date disposed:
1)
2)
STUDENT STATUS
YES NO
❑
❑
❑
❑
❑
❑
Does the household consist of all persons who are full-time students (Examples: K-12, College, Trade School, etc.)?
Does the household consist of all persons who have been a full-time student 5 months in the current calendar year?
Does your household anticipate becoming an all full-time student household in the next 12 months'?
If you answered yes to any of the previous three questions are you:
❑
❑
• Receiving assistance under Title IV of the Social Security Act (AFDC/TANF/Cal Works - not SSA/SSI)
❑
❑
• Enrolled in ajob training program receiving assistance through the Job Training Participation Act (JTPA) or
other Similar program
❑
❑
• Married and filing (or are entitled to file) a joint tax return
0
❑
• Single parent with a dependant child or children and neither you nor your child(ren) are dependent of another
individual
❑
❑
1• Previously enrolled in the Foster Care program (currently age 18-24)
UNDER PENALTIES OF PEW URY, I CERTIFY THAT THE INFORMATION PRESENTED ON THIS FORM IS TRUE AND ACCURATE TO THE BEST OF MY/OUR KNOWLEDGE. THE UNDERSIGNED FURTHER
UNDERSTANDS THAT PROVIDING FALSE REPRESENTATIONS HEREIN CONSTITUES AN ACT OF FRAUD. FALSE, MISLEADING OR INCOMPLETE INFORMATION WILL RESULT IN THE DENIAL OFAPPLICATION
OR TERMINATION OF THE LEASE AGREEMENT.
PRINTED NAME OF APPLICANITFENANT SIGNATURE OF APPLICANT/TENANT DATE
WITNESSED BY (SIGNATURE OF O WNER/REPRESENTATIvF.)
Tenant Income Questionnaire (July 2018)
EXHIBIT C
ANNUAL TENANT RECERTIFICATION
28
9138-126780\1517029.2
Vista Pointe Apartments
2170 North Rancho Avenue
Colton, CA 92324
Phone: (909)889-8417 TTY:(711)-
Tax Credit Proeram Recertification Notice
02/01/2022
Resident Name
2190 Rancho Avenue
Colton, CA 92324
Dear Resident:
Our records show that you are due for your annual recertification on Wednesday, June 1, 2022. To complete our review of your
income and family composition, you must meet with Sharese Flowers and supply the required information at least three weeks
before that date. Please contact Sharese Flowers at (909) 889-8417 as soon as possible to set up an appointment.
The Internal Revenue Service (IRS) requires that we annually recertify all household incomes as defined by the section 42 LIHTC
Program. An annual recertification must be completed to continue occupancy in your unit.
Thank you in advance for your cooperation.
Sincerely,
Property Manager
Ma
EXHIBIT D
ANNUAL RENTAL HOUSING COMPLIANCE REPORT
29
9138-126780\1517029.2
IVIMIWII
1
■
v
m
a
N
C
EXHIBIT E
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
30
9138-126780\1517029.2
EXHIBIT E
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
NOTICE IS HEREBY GIVEN that the CITY OF SANTA ANA, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California, has
entered into a Density Bonus Agreement with North Broadway Housing Partners LP, a
California limited partnership ("Developer"). The Density Bonus Agreement imposes income
and affordability covenants on designated units (the "Affordable Units") within the property
located at 1411 N. Broadway Avenue, Santa Ana, Orange County, and further described in the
legal description provided in Exhibit A to the Density Bonus Agreement (the "Property").
The Density Bonus Agreement was recorded as Document/instrument Number
, and shall remain in effect until , 20
(the "Termination Date") (Insert date of the termination of the "Total Affordability Term"). The
Density Bonus Agreement imposes the following income and affordability restrictions on the
Affordable Units.
Number of Bedrooms
Extremely -Low Low
Income Income
Households Households
Studio Units
47
One -Bedroom Units
Two -Bedroom Units
Three -Bedroom Units
Four -Bedroom Units
hi the event the fee owner of the Property ("Property Owner") wishes to sell or transfer the
Property prior to the Termination Date, or the Developer wishes to assign the ground lease to the
Property, the City and the Property Owner and/or Developer shall execute and deposit into
escrow, or record against the Property, this Notice of Affordability Covenants on Transfer of the
Property. Further, any assignment of ground lease shall not be effective unless and until the City
and transferee execute the documents necessary to transfer the Density Bonus Agreement
obligations from the Developer to the transferee.
This Notice of Affordability Covenants on Transfer of the Property in no way modifies the
provisions of the Density Bonus Agreement. In the event of any conflict between this Notice of
Affordability Covenants on Transfer of the Property and the Density Bonus Agreement, the
terms of the Density Bonus Agreement shall prevail.
IN WITNESS WHEREOF, the Parties hereto have duly executed this Notice of Affordability
Restrictions on Transfer of Property as of the dates set forth below.
[Signatures on Following Pages]
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
APPROVED AS TO LEGAL FORM:
R
Ryan O. Hodge
Assistant City Attorney
CITY:
CITY OF SANTA ANA
A California Charter City and Municipal
Corporation
Name: Kristine Ridge
Its: City Manager
Date:
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
PROPERTY OWNER:
0
Name:
Its:
Date:
SIGNATURE PAGE
TO
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
DEVELOPER:
IM
52
Name:
Its:
Date: