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HomeMy WebLinkAboutNORTH BROADWAY HOUSING PARTNERS LP (2)Commonwealth Land Title Comoany RECORDING REQUESTED BY AND WHEN RECORDED RETURN 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 Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder IJIIIIIIIIIIIIIIIIJ�1111111111'1111111111111IJ11111111IIIIIIIIIIIIIIJill NO FEE + b R 0 0 ' : ' ` ' `i 0 $ 2023000065933 11:34 am 03123/23 90 CRSC06 R29 33 0.00 0.00 0.00 0.00 96.00 0.00 0.000.000.00 0.00 SPACER MCOKDING USE INSURANCE NOT REQUIRED No FEE DOCUMENT GOVERNMENT (DOE 2.13S3 WORK MAY PROCEED A—Zas-a?)k-02 AFFORDABILITY RESTRICTIONS CLERK OF THE COUNCIL ON TRANSFER OF PROPERTY (1411 North Broadway, Santa Ana, California (APN 398-523-04) DATE: THESE AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (the "Restrictions') are entered into as of March 23, 2023, by and between North Broadway N Housing Partners LP, a California limited partnership ("Developer"), and the City of Santa Ana, a charter city and municipal corporation ("City"), with WISEPlace, a California 00 nonprofit public benefit corporation ("WISEPlace"), joining in the restrictions. o RECITALS: C A. WISEPlace is the owner of fee simple title to certain property located at 1411 North Broadway (APN 398-523-04), in the City of Santa Ana, totaling approximately 0.60 acres of land area C the Property'l. WISEPlace intends to ground lease the Property to the Developer (the "Ground Lease") for sixty-five (65) years from the Commencement Date of the Ground Lease. The Property is located in the City of Santa Ana, more particularly described in Exhibit A, which is attached hereto and incorporated herein by this reference. WISEPlace is executing a joinder to these Affordability Restrictions on Transfer of Property to encumber its fee interests with the covenants contained herein. B. The Developer is a limited partnership, whose sole general partner is JHC-North Broadway LLC, a California limited liability company (the General Partner). WISEPlace and Jamboree Housing Corporation, a California non-profit public benefit corporation ("JHC`% are the sole members of the General Partner. The Developer will adaptively reuse one existing building on the Property and construct, own and operate an additional building on the Property to accommodate a forty-eight (48) unit multifamily affordable housing project ("Project'D. C. The Developer and the City have entered into that certain City/HOME-ARP Loan Agreement, dated on or about the date hereof ("Loan Agreement"), for the purpose of WISEPlace Pumanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property Commonwealth Land Title Comoany RECORDING REQUESTED BY AND WHEN RECORDED RETURN 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 NO FEE DOCUMENT GOVERNMENT (DOE -L7383 AFFORDABIIdTY RESTRICTIONS ON TRANSFER OF PROPERTY (1411 North Broadway, Santa Ana, California (APN 398-523-04) THESE AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (the "Restrictions") are entered into as of March 23, 2023, by and between North Broadway Housing Partners LP, a California limited partnership ("Developer"), and the City of Santa Ana, a charter city and municipal corporation ("City"), with WISEPIace, a California nonprofit public benefit corporation ("WISEPIace"), joining in the restrictions. RECITALS: A. WISEPIace is the owner of fee simple title to certain property located at 1411 North Broadway (APN 398-523-04), in the City of Santa Ana, totaling approximately 0.60 acres of land area ("the Property"). WISEPIace intends to ground lease the Property to the Developer (the "Ground Lease") for sixty-five (65) years from the Commencement Date of the Ground Lease. The Property is located in the City of Santa Ana, more particularly described in Exhibit A, which is attached hereto and incorporated herein by this reference. WISEPIace is executing a joinder to these Affordability Restrictions on Transfer of Property to encumber its fee interests with the covenants contained herein. B. The Developer is a limited partnership, whose sole general partner is JHC-North Broadway LLC, a California limited liability company (the General Partner"). WISEPlace and Jamboree Housing Corporation, a California non-profit public benefit corporation ("JHC"), are the sole members of the General Partner. The Developer will adaptively reuse one existing building on the Property and construct, own and operate an additional building on the Property to accommodate a forty-eight (48) unit multifamily affordable housing project ("Project'). C. The Developer and the City have entered into that certain City/HOME-ARP Loan Agreement, dated on or about the date hereof ("Loan Agreement"), for the purpose of WISEPIace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property e making the City/HOME ARP Loan ("Loan") and providing for the development of forty- seven (47) units of housing that will be affordable to Extremely Low Income Households ("Restricted Units"), with one un-restricted unit reserved for an on -site manager, to which these Restrictions are attached as Exhibit F (any capitalized term that is not otherwise defined in these Restrictions shall have the meaning ascribed to such term in the Loan Agreement). D. During the twenty (20) year HOME -ARP Compliance Period, sixteen (16) of the Restricted Units will be designated as HOME -ARP Units. The HOME -ARP Units will be rented to HOME -ARP Qualifying Populations as set forth in Housing and Urban Development ("HUD") Community Planning and Development (CPD) Notice: CPD-21- 10 (the "HOME -ARP Notice"). E. The Loan Agreement provides, among other things, for the use of the Property for affordable housing with all Restricted Units being restricted to Extremely Low Income Households, at Affordable Rent(s), as well as the requirements imposed by the HOME - ARP Notice for the HOME -ARP Units, with a preference for individuals and families who are chronically homeless. F. The Loan Agreement contains certain provisions relating to the use of the Property. NOW, THEREFORE, CITY AND DEVELOPER COVENANT AND AGREE AS FOLLOWS: 1. Developer covenants and agrees (for itself, its successors, its assigns, and every successor in interest to the Property or any part thereof) that Developer, such successors, and such assigns shall use the Property exclusively to provide affordable housing to Extremely Low Income Households, as provided in these Restrictions and in the Loan Agreement. 2. Developer covenants and agrees (for itself, its successors, its assigns, and every successor in interest to the Property or any part thereof) that during the HOME -ARP Compliance Period the HOME -ARP Units will be leased to a HOME -ARP Qualifying Population as provided in these Restrictions, the Loan Agreement and the HOME -ARP Notice. 3. Developer, for itself and its successors and assigns, hereby covenants and agrees that all of the apartments in the Property (less one manager's unit) (the "Units") shall be rented exclusively, at Affordable Rent, to Extremely Low Income Households to the extent provided for herein, except to the extent a different eligibility or rent is required for HOME - ARP Units. Area median income levels and Affordable Rents are subject to adjustment from time to time as provided in Section 3 below. 2 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 4. DEFINITIONS "Affordable Rent" means monthly rent that does not exceed the amounts set forth in Section 5.2 of these Restrictions. "City Restriction Period" means a period of fifty-five (55) years after the date on which the Certificate of Completion is issued. "Chronically Homeless" means an individual or family who meets the definition of "chronically homeless" under HUD regulations and guidance, including 24 CFR 578.3. "Extremely Low Income" means an adjusted income that does not exceed thirty percent (30%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HUD. "Extremely Low Income Household" means an individual or family whose income qualifies as Extremely Low Income, adjusted for household size, as published by HUD. "HOME -ARP Compliance Period" means a period of twenty (20) years from the issuance of the Certificate of Completion, unless a shorter period is required by HUD or the HOME -ARP Program. "HOME -ARP Program" means the program established with the HOME - American Rescue Plan (HOME -ARP) funds from the United States Department of Housing and Urban Development ("HUD") under the Section 3205 of the American Rescue Plan Act of 2021 (P.L. 117-2)) ("ARP) to be implemented through the HOME Investment Partnerships Program (the "HOME Program") (42 U.S.C. § 12701, et seq.,) and governed in accordance with applicable statutory requirements, regulations, and guidance, including but not limited to HUD Notice CPD-21-10 (the "HOME -ARP Notice") and the HOME Regulations (24 CFR Part 92). "HOME -ARP Qualifying Populations" means any individual or family who meets the eligibility criteria of a "qualifying population" of the HOME -ARP Program. "HOME -ARP Units" the sixteen (16) units assisted under the HOME -ARP Program and subject to the HOME -ARP Compliance Period. "Limited Partner" means, collectively, the investor limited partner and special limited partner of the Developer, and their respective successors and assigns. "Low HOME Rent" means rent that does not exceed thirty percent (30%) of the adjusted income of a household whose annual income is equal to or less than fifty percent (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HUD for the HOME -ARP rent limits. WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property "Restricted Units" means the forty-seven (47) units restricted to Extremely Low Income Households during the City Restriction Period, which includes the sixteen (16) HOME -ARP Units assisted under the HOME -ARP Program and available for rental to HOME -ARP Qualifying Populations during the HOME -ARP Compliance Period. "Very Low Income" means an adjusted income that does not exceed fifty percent (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HUD. "Very Low Income Household" means an individual or family whose annual income qualifies as Very Low Income, adjusted for household size, as published by HUD. 5. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF THE PROPERTY 5.1. Use Covenants and Restrictions. (a) Developer agrees and covenants, which covenants shall run with the land and bind Developer, its successors, its assigns and every successor in interest to the Property, that all Restricted Units on the Property will be made available for rent as follows: (i) Except as set forth in sub -paragraph (ii) of this Section 5.1(a), the Restricted Units shall be rented to Extremely Low Income Households for the City Restriction Period. (ii) During the HOME -ARP Compliance Period, all HOME - ARP Units must be rented to a HOME -ARP Qualifying Population as allowed by the HOME -ARP Program. After the HOME -ARP Compliance Period expires, all Units shall be restricted under sub -paragraph (i) of this Section 5.1(a). (b) The HOME -ARP Units shall be studio units, with comparable amenities to the other Restricted Units. The HOME -ARP Units shall be initially distributed throughout the complex, but thereafter shall be allowed to "float' . (c) It is anticipated that during the Term of Agreement the Project will be supported by Project -Based Section 8 rental subsidy payments provided by the Housing Authority of the City of Santa Ana ("Housing Authority") for not less than twenty-five (25) of the Restricted Units (the "PBV Rental Subsidy"), and the HOME - ARP Subsidy Reserve will be utilized to cover operating deficits associated with the sixteen (16) HOME -ARP Units. To the extent allowed by the HOME -ARP Program, the HOME -ARP Subsidy Reserve cannot be used for HOME -ARP Qualifying Households with project -based vouchers or project -based rental assistance (but maybe used for HOME -ARP Qualifying Households with tenant based rental assistance). The PBV Rental Subsidy may not be placed on any HOME -ARP Unit. (d) The Developer shall establish a preference for renting Restricted 4 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property Units to individuals and families who qualify as Chronically Homeless in accordance with Section 7.5, provided, however that any preference applicable to the HOME -ARP Units must comply with the HOME -ARP Program. (e) Rental increases in the Restricted Units shall be subject to and in conformance with federal, state law, and local law. (f) Maximum Occupancy for Restricted Units will be three persons per studio unit. (g) For all Restricted Units, Developer must have a written lease between tenant and owner for a period of at least one year, unless a shorter period is mutually agreed upon. All leases must be consistent with the applicable laws and regulations, including the HOME -ARP Program for the HOME -ARP Units. 5.2. Affordability Levels/Unit Mix: (a) All Restricted Units in the Property will be studios, except the one (1) manager unit will be a 2-bedroom unit reserved for the on -site manager. (b) Except as set forth in sub -paragraph (c) of this Section 5.2, the allowable rent for the Restricted Units in the Project shall not exceed the Affordable Rent for an Extremely Low Income Household as follows: Unit Size 30% TCAC AMI No. Units Current Rent Studio 47 $711 Total 47 The remaining unit will be an un-restricted 2-bedroom unit reserved for the onsite manager. (c) During the HOME -ARP Compliance Period, the allowable rent for HOME -ARP Units in the Project shall not exceed the lesser of: (a) 30% of the tenant's actual household income (inclusive of Supplemental Security Income (SSI) / State Supplementary Payment (SSP) payments); or (b) the Low HOME Rent in accordance with the HOME -ARP Program. The number of HOME -ARP Units and allowable rent shall be as follows: HOME -ARP Units # of HOME- HOME -ARP Maximum ARP Units Restriction Allowable Rent HOME -ARP 16 Studio Units Qualifying Low HOME Rent Population WISEPiace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property (i) At the time of project completion, the Developer shall provide to the City the address and/or unit number of each of the units initially designated as the HOME -ARP Units. (ii) Annually with the financial statements, the Developer shall provide an annual report of rents and occupancy of all Restricted Units, including the HOME -ARP Units, to verify compliance with affordability requirements. For the HOME -ARP Units, information on unit substitution and filling vacancies shall be provided to ensure that the project maintains the required unit mix. (d) The Affordable Rents charged at the Project must comply with the standards set forth by TCAC as defined in this Affordability Restrictions on Transfer of Property, except that during the HOME -ARP Compliance Period, and if allowed by the HOME -ARP Program, the Affordable Rents for the HOME -ARP Units must comply with the most stringent of standards set forth by the HOME -ARP Program and TCAC. (e) At the time of this Agreement, the Project will pay for all utilities with no tenants being charged for utilities. If tenants are charged for utilities at any time during the term of this Agreement, a utility allowance must be deducted from the maximum affordable rent charged at the Project for each unit. With respect to the HOME -ARP Units, utility allowances must be based on project -specific allowances. (f) Initial rents may be recalculated to allowable rental amounts at the time of initial lease -up following completion of construction in accordance with any changes in allowable rent and income tables as published by HUD. 5.3. Rent Increases. On an annual basis, the City shall provide Developer with the maximum allowable schedule of rents for the Property in accordance with changes in allowable rent and income tables published by HUD and TCAC, provided however that the rent for the HOME -ARP Units shall in no event be higher than the rent for the equivalent non -HOME -ARP Unit within the Project. In no event can Developer charge any tenant more than such amount. All rent increases on the Restricted Units are subject to City approval pursuant to the terms of this Section. No later than sixty (60) days prior to the proposed implementation of any rent increase, Developer shall submit to the City a schedule of any proposed increase in the rent. The City will disapprove a rent increase if it does not comply with the restrictions set forth in Section 5.2 above. (a) Termination of Tenancv. Developer may not terminate the tenancy or refuse to renew the lease of any tenant except for serious or repeated violation of the terms and conditions of the Lease; for violation of applicable federal, state, or local law; for completion of the transitional housing tenancy period (if the housing is transitional); or for other good cause. Any termination or refusal to renew must be preceded by not less than thirty (30) days by the Developer's service upon the tenant of a written notice specifying the grounds for the action. WISEPlace Pennanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property (b) Non -Qualifying Adjusted Income. Subject to the applicable requirements and provisions of, and changes to, the HOME -ARP Program, and Section 42 and 142(d) of the Internal Revenue Code of 1986, as amended (the "Code"), if, upon recertification of the income of a tenant of a Restricted Unit, the Developer determines that a tenant has an adjusted income exceeding 30% of the applicable Median Income for the Area in each case, adjusted for household size as provided in Section 5.2 above, such tenant may be permitted to continue to occupy the Restricted Unit at the rental rate as provided for in Section 5.2 above, until the tenant chooses to vacate the Restricted Unit. After the Restricted Unit is vacated, the Restricted Unit shall be re -rented to a tenant pursuant to the terms, covenants and conditions of these Restrictions. 5.4. Maintaining Financial Stability. It is anticipated that during a portion of the Term of Agreement the Project will be supported by a PBV Rental Subsidy for not less than twenty-five (25) of the Restricted Units, and the HOME -ARP Subsidy Reserve for the sixteen (16) HOME -ARP Units. These subsidies will not overlap on the same units. If, during the Term of Agreement and through no fault of Developer, (a) the HOME -ARP Subsidy Reserve is depleted, (b) there is a reduction, termination or nonrenewal of the PBV Rental Subsidy, or (c) the Project generates insufficient income to cover its operating costs, required deposits to replacement reserves, and debt service on approved financing as shown on the Operating Budget, and as is necessary to maintain the financial stability of the Project, with the exception of the HOME -ARP Units during the HOME -ARP Compliance Period, Developer may request approval of the City (a) to allow households with adjusted incomes that do not exceed sixty percent (60%) of AMI, adjusted for actual household size, to occupy the Restricted Units (i.e., a unit previously restricted to households with adjusted incomes that do not exceed 30% of AMI), and (b) to increase the rent on one or more of the Restricted Units to rents that are affordable to households with an adjusted income that does not exceed sixty percent (60%) of AMI, adjusted for actual household size . The rent increase is subject to the following requirements: (a) concurrently with the request, Developer shall provide the City with evidence of the anticipated reduction, termination, or nonrenewal of the Rental Subsidy and/or depletion of the HOME -ARP Subsidy Reserve and/or evidence that the Project is not operating at a financially stable level, (b) a Management Plan (as defined in Section 6.1(d) of the Loan Agreement) for the Project for the City's approval pursuant to Sections 6.1(d) and Exhibit G of the Loan Agreement, showing the impact of the depletion of the HOME -ARP Subsidy Reserve and/or loss, termination, or reduction of the Rental Subsidy; (c) a proposed operating budget reflecting the requested rent increases (the "Operating Budget"); and (d) a description of efforts to obtain alternate sources of rental subsidy and/or maintain financial stability. The number of the Restricted Units subject to the rent increase and the amount of the proposed increase may not be greater than the number or amount required to ensure that the Project generates sufficient income to cover its operating costs, required deposits to replacement reserves, and debt service on approved financing as shown on the Operating Budget, and as is necessary to maintain the financial stability of the Project. In addition , Developer hereby agrees to the following: (a) Developer shall use good faith commercially reasonable efforts to obtain alternative sources of rental subsidies and shall provide the City with annual 7 WISEPlace Perunanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property progress reports on efforts to obtain alternative sources of rental subsidies that would allow the rents to be reduced. Upon receipt of any alternative rental subsidies, Developer shall reduce the rents back to the original restrictions to the extent that the alternative rental subsidies provide sufficient income to cover the operating costs, required replacement reserves and debt service of the Project as shown on the Operating Budget. (b) Developer shall provide tenants in the Restricted Units with notice of any rent increase pursuant to this Section 5.4, and shall notify the tenant that if they have received a tenant -based voucher from the Housing Authority they may use the tenant -based voucher for their Restricted Unit. (c) All rent increases for the Restricted Units are subject to City approval pursuant to the terms of this Section 5.4. No later than sixty (60) days prior to the proposed implementation of any rent increase, Developer shall submit to the City a schedule of any proposed increase in the rent. The City will disapprove a rent increase if it does not comply with the restrictions set forth in this Section 5.4. Notwithstanding the foregoing, rent increases for the Restricted Units shall be subject to review and approval of the City. (d) Developer shall give tenants of all Restricted Units written notice at least sixty (60) days prior to any rent increase. With respect to any Restricted Units for which City has authorized Developer to increase rents pursuant to this Section, the preference to rent to Chronically Homeless households shall automatically terminate. The City's local preferences as Section 7.5 of these Restrictions shall remain. 6. Developer, its successors and assigns shall not charge rents for the Units in excess of the amounts set forth herein, as adjusted on the basis of the revised schedules of area median incomes issued from time -to -time by HUD. The City shall notify Developer in writing of the adjusted allowable maximum incomes and rents. 7. Developer shall adopt and include as part of its Management Plan (described in Section 13 below), written tenant selection policies and criteria for the Units that meet the following requirements: 7.1. Are consistent with the purpose of providing housing to HOME -ARP Qualifying Populations (applicable only with respect to the HOME - ARP Units), Extremely Low Income Households, and individuals or families who qualify as Chronically Homeless; 7.2. Are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease; 7.3. Give reasonable consideration to the housing needs of households that would have a preference under 24 CFR 960.206 (Local preferences for admission to Public Housing); 8 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 7.4. Provide for: (a) The selection of tenants through the Coordinated Entry System, except as necessary to comply with the HOME -ARP Program; (b) To the extent practicable, and in a manner consistent with sub- paragraph (a), selection of tenants from a written waiting list in the chronological order of their application; and (c) The prompt written notification to any rejected applicant of the grounds for any rejection. 7.5. With regard to the leasing of the Restricted Units, inclusive of the persons referred off of the County of Orange coordinated entry system for the HOME -ARP Units, and subject to compliance with the HOME -ARP Program, the HOME Regulations and applicable California and federal fair housing laws, and the requirements of Section 142(d) and Section 42 of the Internal Revenue Code, Developer's tenant selection plan shall include a preference for individuals or families who qualify as Chronically Homeless and satisfy the criteria below, in the following order of priority: (a) First priority shall be given to persons who are either: (i) Residents of Santa Ana; and/or (ii) Working in Santa Ana at least 32 hours per week for at least the last 6 months. (b) The Restricted Units will still be available to the general public, as required under Section 142(d) of the Code and Section 42 of the Code, and these preferences do not restrict the availability of the units to the general public. 7.6. Carry out the affirmative marketing procedures of the City of Santa Ana, which are designed to provide information and otherwise attract eligible persons from all racial, ethnic and gender groups in the housing market area to the units. Developer shall cooperate with the City to effectuate this provision prior to the initial renting, or upon occurrence of a vacancy, and the re -renting of any HOME -ARP assisted units (24 CFR 92.351). 8. Developer, its successors and assigns, shall not refuse to lease a unit to a holder of a rental voucher under 24 CFR Part 982 (Housing Choice Voucher Program) or to a holder of a comparable document evidencing participation in a HOME and/or HOME -ARP tenant -based assistance program because of the status of the prospective tenant as a holder of such certificate of family participation, rental voucher, or comparable HOME and/or HOME -ARP tenant -based assistance document. Total rents charged to the tenant for the tenant's share of rent shall not exceed the allowable rents as described above. WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 9. Any lease of any of the units must be maintained in the tenant's rental file held by the Developer. The lease may not contain any of the following provisions (in which references to "owner" shall mean the Developer, its successors or assigns): 9.1. Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of the owner in a lawsuit brought in connection with the lease; 9.2. Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing Unit after the tenant has moved out of the Unit. The owner may dispose of this personal property in accordance with state law; 9.3. Agreement by the tenant not to hold the owner or the owner's agent legally responsible for any action or failure to act, whether intentional or negligent; 9.4. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant; 9.5. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; 9.6. Agreement by the tenant to waive any right to a trial by jury; 9.7. 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 9.8. Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. 10 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 10. Developer, its successors or assigns, must adhere to state law requirements with regard to termination of tenancy. It. Developer shall maintain the improvements on the Property in compliance with all applicable housing quality standards 24 CFR 982.401 and state and local code requirements (including but not limited to California Health and Safety Code § 17920.3), and shall keep the Property free from any unreasonable accumulation of debris or waste materials. Developer shall also maintain in a healthy condition any landscaping planted on the Property. 12. Developer covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property or any part thereof, there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, mental or physical disability, marital status, national origin or ancestry in the sale, lease, transfer, use, occupancy, tenure or enjoyment of the Property nor shall the Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property, as required by the Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975, and all implementing regulations. 13. Not later than fifteen (15) business days prior to the Close of Escrow on the Loan Agreement, Developer shall submit to the Executive Director a Management Plan in a form reasonably acceptable to the Executive Director, including, but not limited to, the components listed below. Approval of the Management Plan must be obtained from the Executive Director not later than the time for the Close of Escrow. Developer shall manage the Restricted Units in accordance with the approved Management Plan, including such amendments as may be approved in writing from time to time by the Executive Director, for the tern of the income and rent restrictions contained in these Restrictions. The components of the Management Plan shall include: 13.1. Management Agent. Developer shall submit the name and qualifications of the proposed Management Agent. The Executive Director shall approve (such approval not to be unreasonably withheld or delayed) or disapprove the proposed Management Agent in writing based on the experience and qualifications of the Management Agent. 13.2. Management Agreement. Developer shall submit a copy of the proposed management agreement specifying the amount of the management fee, and the relationship and division of responsibilities between Developer and Management Agent. 13.3. Annual Budget and Proiected Cash Flows. Prior to the Closing, and annually thereafter not less than sixty (60) days prior to the close of each calendar year thereafter until the Loan is repaid in full, Developer shall submit a projected operating budget and cash flow to the Executive Director for the following calendar year. The budget and cash flow shall be in a form that is acceptable to the Executive Director. 11 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 13.4. Tenant Selection Policies. Developer shall include in the Management Plan the tenant selection policies in accordance with Section 5, above. 14. If at any time the City determines that the units are not being managed or maintained in accordance with the approved Management Plan, the City shall send the Developer a detailed description of the management deficiencies (a "Deficiency Notice'). If the deficiencies set forth in the Deficiency Notice are not cured within sixty (60) days (or such longer period as may be reasonably required to cure the deficiency), with the exception of any applicable HOME -ARP Program regulations that require a shorter period, the Executive Director may require Developer to change management practices or to terminate the management contract and designate and retain a different management agent. The management agreement shall provide that it is subject to termination by Developer without penalty, upon thirty (30) days prior written notice, at the direction of the Executive Director upon failure to cure a Deficiency Notice within the time period specified above. Within thirty (30) days following a direction of the Executive Director to replace the management agent in accordance with the terms hereof, the Developer shall select another management agent or make other arrangements satisfactory to the Executive Director or designee for continuing management of the units. 14.1. Marketing Plan. The marketing plan will apply to all of the units in the Project, except the one manager's unit. The Developer shall submit a marketing plan for review and approval by the Executive Director which approval will not be unreasonably withheld, conditioned or delayed. The marketing plan must contain procedures that ensure marketing of the Restricted Units to Extremely Low Income Households, and the HOME - ARP Units to HOME -ARP Qualifying Populations, with a preference for Chronically Homeless households for the Restricted Units. Such procedures shall be applicable for initial rent -up and ongoing marketing of the units throughout the term of these Restrictions. Developer shall advertise vacancies of the Restricted Units in general distribution newspapers that circulate throughout the City. Where the Developer utilizes other forms of advertising, such advertising shall also be distributed throughout the City. The marketing plan shall be consistent with the County of Orange coordinated entry system. 15. Covenants Binding on the Property. 15.1. The covenants established in these Restrictions and any amendments hereto approved by the City, Developer, and WISEPIace shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City and their respective successors and assigns. 15.2. These Restrictions shall remain in effect for fifty-five (55) years from the issuance of the Certificate of Completion and the HOME -ARP Units shall be subject to the HOME -ARP Compliance Period. 15.3. In its discretion, the City may defer repayment of the HOME -ARP Loan or the City may agree to such reasonable modifications to the requirements of these Restrictions, as they may determine are necessary for the continued maintenance and operation of the Restricted Units. The covenants against discrimination shall remain in 12 WISEPIace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of property effect for the period of these Restrictions. 15.4. WISEPIace, as owner of the Project's fee estate and as Lessor under the Ground Lease with respect to the Project, has joined herein to evidence its consent to these Restrictions and its agreement that the Restrictions bind the Project, the fee estate, and the leasehold estate created by the Ground Lease (both landlord and tenant's interests) and run with the land. WISEPIace agrees and understands that its agreement to these Restrictions being imposed upon and recorded against the Ground Lease and the fee estate is part of the consideration for City entering into a Loan Agreement. 16. Developer shall not request disbursement of HOME -ARP Loan until the funds are needed to pay eligible costs. The City shall have the right to disapprove any request if the City reasonably determines the request is for an ineligible item or is otherwise not in compliance with or inconsistent with the Loan Agreement, these Restrictions, the HOME - ARP Notice and/or the applicable HOME Programs [24 CFR 92.504(c)]. 17. Maintenance; Compliance with Law. During the term of these Restrictions, Developer agrees to maintain all interior and exterior improvements, including landscaping, on the Project in good condition, repair and sanitary condition (and, as to landscaping, in a healthy condition) and in accordance with any Management Plan approved by the City under these Restrictions (including without limitation any landscaping and signage), as the same may be amended from time to time, and all other applicable laws, rules, ordinances, orders, and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having jurisdiction over the Property and all their respective departments, bureaus, and officials. Developer acknowledges the great emphasis the City places on quality maintenance to protect its investment and to provide quality low income housing for its constituents and to ensure that all City subsidized affordable housing projects within the City are not allowed to deteriorate due to deficient maintenance. In addition, Developer shall keep the Project free from all graffiti and any accumulation of debris or waste material. Developer shall promptly make all repairs and replacements necessary to keep the Project in good condition and repair and shall promptly eliminate all graffiti and replace dead and diseased plants and landscaping with comparable approved materials. In the event that Developer breaches any of the covenants contained in this Section 15 and such default continues for a period of five (5) days after written notice from the City (with respect to graffiti, debris, waste material, and general maintenance) or thirty (30) days after written notice from the City (with respect to landscaping and building improvements), then the City, in addition to whatever other right or remedy it may have under the Loan Agreement, the other Loan Documents, these Restrictions or at law or in equity, shall have the right to enter upon the Project and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the City shall be permitted (but is not required) to enter upon the Project and perform all acts and work necessary to protect, maintain and preserve the improvements and landscaped areas on the Project. Developer shall promptly pay to the City, as applicable, the amount of the expenditure arising from such acts and work of protection, maintenance, and 13 WISEPIace Pennanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property preservation by the City and/or costs of such cure, including a fifteen percent (15%) administrative charge. 18. Developer shall prepare, maintain and submit to the City, as appropriate, the following records and reports in compliance with the HOME -ARP Program and 24 CFR 92.504(c): 18.1. Annual Reports. Developer shall file with the City an Annual Report (herein referred to as the "Annual Report") by Junel 5th of each calendar year, commencing with the end of the calendar year (or portion thereof) in which the Ground Lease is executed. The Annual Report shall contain a certification by Developer as to such information as the City Executive Director may then reasonably require, including, but not limited to, the following: (a) The fiscal condition of the Project, including the Annual Budget and Project Cash Flow report required by Section 13.3 which shall include a financial statement for the previous calendar year that includes a balance sheet and a profit and loss statement indicating any surplus or deficit in operating accounts; a detailed itemized listing of income and expenses; and the amounts of any fiscal reserves. Such Annual Budget and financial statement shall be prepared in accordance with generally accepted accounting practices. The City Executive Director may require that the financial statement be audited at Developer's expense by an independent certified public accountant acceptable to the Executive Director. (b) Any substantial physical defects in the Project, including a description of any major repair or maintenance work undertaken or needed in the previous and current years. Such statement shall describe what steps Developer has taken in order to maintain the Project in a safe and sanitary condition in accordance with applicable housing and building codes and the property standards set forth in 24 CFR 92.251. (c) The occupancy of the units indicating the income of each current resident and the current rents charged each resident and whether those rents include utilities, including records that demonstrate that the Project meets the requirements of 24 CFR 92.253 for tenant and participant protection under the HOME -ARP Program. (d) General management performance, including tenant relations and other relevant information. (e) Records that demonstrate that the Restricted Units meet the applicable affordability requirements for the required period of affordability. (f) Evidence of a currently paid hazard insurance policy in accordance with the requirements of Section 3 of the City/HOME-ARP Deed of Trust, with a loss payable endorsement naming the City as a loss payee(s) together with other approved lenders (as their interests may appear), with a "Replacement Cost Endorsement" in amount sufficient to prevent Developer or City from becoming a co-insurer under the terms of the policy, but in any event in an amount not less than 100% of the then full replacement cost, to be determined at least once annually and subject to reasonable approval by the Executive 14 W ISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property Director. (g) Evidence of a currently paid liability insurance policy, naming the City as additional insured and in a form approved by the City Attorney with coverage as described in the Loan Agreement. (h) Termite reports pertaining to the Property every fifth (51) year. (i) Such other information as may be reasonably required by the Executive Director or his/her designee. 18.2. Records and Audits. During the HOME -ARP Compliance Period, Developer shall maintain the following general program records, and make them available for inspection by the City, the State or HUD: (a) records which demonstrate that the HOME -ARP Units meet the property standard specified in 24 CFR 92.251; (b) records, for each HOME -ARP Unit, which demonstrates that such units meet the requirements of 24 CFR 92.252; (c) records which demonstrate compliance with the tenant and participant protections, as specified in 24 Section 29.253; (d) records which demonstrate compliance with the Equal Opportunity and Fair Housing requirements outlined in these Restrictions, including: (i) data on the extent to which each racial and ethnic group and single head of household (by gender of head of household) have applied for, participated in, or benefited from, any program or activity funded in whole or in part with HOME -ARP funds; (ii) documentation of actions undertaken to meet the equal opportunity requirements of 24 CFR 92.350, and 24 CFR Part 75 which implements Section 3 of the Housing Development Act of 1968, as amended (12 U.S.C. 1701u); (iii) documentation and data on the steps taken to implement Developer's outreach programs to minority -owned and women -owned businesses to meet the minority outreach requirements of 24 CFR 92.351; (e) documentation of the steps taken to carry out an affirmative marketing program in accordance with 24 CFR 92.351, if applicable; (f) if applicable, records which demonstrate compliance with the requirements relating to relocation of displaced persons, as described in 24 CFR 92.353. At a minimum, these shall include project occupancy lists identifying the name and address of all persons occupying the project property up until the date of the Closing (i.e., the date on which Developer obtained site control); 15 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property (g) records concerning lead -based paint in accordance with 24 CFR 92.355; (h) if applicable, records which support any requests for waivers of the conflict of interest prohibition as stated in 24 CFR 92.356; (i) records of certifications of contractor qualifications as they relate to the debarment and suspension requirement as stated in 24 CFR 92.350 and 24 CFR Part 24; and (j) any other reports required by other monitoring agencies with jurisdiction over the Property. 18.3. All records pertaining to each calendar year of HOME -ARP funds must be retained for the most recent five year period, except that records of individual tenant income verifications, project rents and project inspections must be retained for the most recent five year period, until five years after the affordability period terminates (24 CFR 92.508). Developer shall cooperate with the City to retain all books and records relevant to the Loan Agreement for a minimum of five years after the expiration of the Loan Agreement and any and all amendments hereto, or for five years after the conclusion or resolution of any and all audits or litigation relevant to the Loan Agreement, whichever is later. The City, the State, the Office of the Auditor General of HUD, and/or their representatives shall have unrestricted reasonable access to all locations, books, and records for the purpose of monitoring, auditing, or otherwise examining said locations, books, and records with or without prior notice. 18.4. If so directed by the City, the State or HUD upon termination of the Loan Agreement, Developer shall cause all records, accounts, documentation and all other materials relevant to the work to be delivered to the City, the State or HUD, as depository. 18.5. All records, accounts, documentation and other materials relevant to the Project shall be accessible at any time to the authorized representatives of the City, the State or HUD, on not less than seventy-two (72) hours' prior written notice, for the purpose of examination or audit. 18.6. Pursuant to 2 CFR Part 200, the City shall perform an annual audit at the close of each calendar year in which these Restrictions are in effect. Developer shall reasonably cooperate with City in performing such audit. 16 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 19. If an event of default occurs under the terms of these Restrictions, prior to exercising any remedies hereunder, City shall give Developer written notice of such default. If the default is reasonably capable of being cured within thirty (30) days, Developer shall have such period to effect a cure prior to exercise of remedies by the City under these Restrictions. If the default is such that it is not reasonably capable of being cured within thirty (30) days, and Developer: (i) initiates corrective action within said period; and (ii) diligently, continually, and in good faith works to effect a cure as soon as reasonably possible, then Developer shall have such additional time as is reasonably necessary to cure the default prior to exercise of any remedies by City. The City shall provide the Developer's Limited Partner with an opportunity to cure any default. Any cure made or tendered by Limited Partner shall be accepted as if made by Developer. The City is a beneficiary of the terms and provisions of these Restrictions and the covenants herein, both for and in their own right and for the purposes of protecting the interests of the community and other parties, public or private, for whose benefit these Restrictions and the covenants running with the land have been provided. Upon the occurrence of and continuation of an event of default following written notice to Developer thereof and the expiration of the cure period specified above, the City shall have the right to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which they or any other beneficiaries of these Restrictions and covenants are entitled. 20. Default. Each of the following shall constitute an "Event of Default" by Developer under these Restrictions: 20.1. Failure to Make Payments. Developer fails to make any payment due the City under these Restrictions within thirty (30) days after receiving written notice for said payment from the City; 20.2. Non -Monetary Failure to Perform. Developer fails to timely perform, comply with or observe any of the terms, covenants, or conditions of these Restrictions (other than those provisions elsewhere referred to in this Section 18) and such failure continues uncured or without Developer commencing to diligently cure for thirty (30) days after notice thereof in writing is given by the City to Developer, provided that if Developer has commenced cure but cannot complete such cure reasonably within thirty (30) days, Developer shall have one hundred and twenty (120) days from the date of notice to cure such failure without such failure constituting an event of default; 20.3. Senior Loan Document Breach. Any default or breach of Developer which continues uncured after the expiration of any applicable cure period under the Loan Agreement (including, but not limited to, the obligations of the Developer under Section 6 of the Loan Agreement), or any Loan Document or any default or breach of Developer under the Senior Loan Documents, which continues uncured after the expiration of any applicable cure period thereunder; 17 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 20.4. Voluntary Susnension. The voluntary suspension of Developer's business or the dissolution or termination of the partnership (if any) constituting Developer; 20.5. Unauthorized Transfer. Developer's sale or other transfer of the Project in violation of the Loan Agreement; 20.6. Fraud or Material Misstatement or Omissions. Any fraudulent act or intentional material omission of Developer pertaining to or made in connection with the Loan, Loan Documents or the Project that is not cured within thirty (30) days after written notice to Developer, unless such act or omission is not capable of cure; 20.7. Insolvency. A court having jurisdiction shall have made or entered any decree or order: (i) adjudging Developer to be bankrupt or insolvent; (ii) approving as properly filed a petition seeking reorganization of Developer or seeking any arrangement for Developer under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of Developer in bankruptcy or insolvency or for any of their properties; or (iv) directing the winding up or liquidation of Developer, if any such decree or order described in clauses (i) to (iv), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) days, unless a lesser time period is permitted for cure under any other mortgage on the Property, in which event such lesser time period will apply under this section as well; or Developer shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (i) to (iv), inclusive. The occurrence of any of the events of default in this paragraph shall act to accelerate automatically, without the need for any action by the City, the indebtedness evidenced by the Note; or 20.8. Project Monies. Developer's intentional misapplication or embezzlement of Project monies. 21. Reserved. 22. Remedies. The occurrence of any Event of Default shall, either at the option of the City or automatically where so specified, relieve the City of any obligation to make or continue the Loan and shall give the City the right to proceed with any and all remedies set forth in these Restrictions or otherwise available at law or in equity or by statute (and all of the City's rights and remedies shall be cumulative), including but not limited to the following: 22.1. Acceleration of Note. The City shall have the right to cause all indebtedness of the Developer to the City under the Note, together with any accrued interest thereon, to become immediately due and payable. The Developer waives all right to presentment, demand, protest or notice of protest, or dishonor. The City may proceed to enforce payment of the indebtedness and to exercise any or all rights afforded to the City as a creditor and secured party under the law, including the Uniform Commercial Code, including foreclosure under the City/HOME-ARP Deed of Trust. The Developer shall be liable to 18 WISEPIace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 1 pay the City on demand all expenses, costs and fees (including, without limitation, reasonable attorneys' fees and expenses) paid or incurred by the City in connection with the enforcement of this provision, provided that such expenses, costs and fees shall be subordinate to the Senior Loan made to Developer and the Senior Loan Documents. 22.2. Specific Performance. The City shall have the right to mandamus or other suit, action or proceeding at law or in equity to require Developer to perform its obligations and covenants under these Restrictions or to enjoin acts on things, which may be unlawful, or in violation of the provisions of these Restrictions. The Developer shall be liable to pay the City on demand all expenses, costs and fees (including, without limitation, reasonable attorneys' fees and expenses) paid or incurred by the City in connection with the enforcement of these Restrictions. 22.3. Right to Cure at Developer's Expense. The City shall have the right to cure any monetary Event of Default by Developer under these Restrictions. The Developer agrees to reimburse the City for any funds advanced by the City to cure a monetary default by Developer upon demand therefore, together with interest thereon at the rate of twelve percent (12%) per annum or the maximum rate permitted by law, whichever rate is lesser, from the date of expenditure until the date of reimbursement. 22.4. Remedies Cumulative. No right, power, or remedy given to the City by the terms of these Restrictions is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the City by the terms of any such instrument, or by any statute or otherwise against Developer and any other person. Neither the failure nor any delay on the part of the City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy. 22.5. Waiver of Terms and Conditions. No waiver of any default or breach by Developer hereunder shall be implied from any omission by the City to take action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the waiver, and such waiver shall be operative only for the time and to the extent therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition. The consent or approval by the City to or of any act by Developer requiring further consent or approval shall not be deemed to waive or render unnecessary the consent or approval to or of any subsequent similar act. The exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of any default under these Restrictions or the Loan Documents, nor shall it invalidate any act done pursuant to notice of default, or prejudice the City in the exercise of any right, power, or remedy hereunder or under the Loan Documents, unless in the exercise of any such right, power, or remedy all obligations of Developer to City are paid and discharged in full. 19 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 23. The covenants and agreements contained herein shall run with the land and not be personal obligations of Developer. Upon the sale, conveyance or other transfer of the leasehold interest in the Property (a "Transfer") and the assumption of the obligations hereunder by a transferee, Developer's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer. 24. The Loan Agreement and all of its attachments shall be enforceable by City in accordance with the terms thereof. Each of the Loan Agreement, the Affordability Restrictions on Transfer of Property, the City/HOME-ARP Loan Note and the City/HOME-ARP Deed of Trust provide a means of enforcement by the City if Developer is in breach of its obligations hereunder and thereunder, including liens on the Property, use and deed restrictions and covenants running with the land [24 CFR 92.504]. 25. Additional Terms. 25.1. Indemnity. To the fullest extent permitted by law, the Developer agrees to indemnify, hold harmless and defend the City and its elected officials, officers, governing members, employees, attorneys and agents (collectively, the "Indemnified Parties"), from and against any and all losses, damages, claims, actions, liabilities, costs and expenses of any and every conceivable nature, kind or character (including, without limitation, reasonable attorneys' fees, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) to which the Indemnified Parties, or any of them, may become subject to under any statutory law (including federal or state securities laws) or at common law or otherwise, arising out of or based upon or in any way relating to: (a) these Restrictions or the execution or amendment thereof in connection with the transactions contemplated thereby; (b) Developer's ownership of a leasehold interest in or operation of the Property and the Project or any act or omission of the Developer or any of its agents, contractors, servants, employees or licensees in connection with the Property and the Project, the operation of the Project, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or from the planning, design, acquisition, installation, operation or rehabilitation of, the Project or any part thereof, (c) any lien or charge upon payments by the Developer to the City, or any taxes (including, without limitation, all ad valorem taxes and sales taxes), assessments, impositions and other charges imposed on the City in respect of any portion of the Project; (d) any violation of any applicable environmental law, rule or regulation with respect to, or the release of any toxic substance from, the Property or the Project or any part thereof; or (e) any untrue or misleading statement of a material fact by the Developer, which Developer knew or should have known to be untrue or misleading, that is contained in any Loan Document or any of the documents or instruments relating to said 20 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property Loan Documents that the City relied upon in making the Loan; except to the extent such damages are caused by the active negligence or willful misconduct of such Indemnified Party. In the event that any action or proceeding is brought against any Indemnified Party with respect to which indemnity may be sought hereunder, the Developer, upon written notice from the Indemnified Party, shall assume the investigation and defense thereof, including the employment and payment for of counsel selected by the Indemnified Party, and shall assume the payment of all expenses related thereto, with full power to litigate, compromise or settle the same; provided that the Indemnified Party shall have the right to review and approve or disapprove any such compromise or settlement. 25.2. Time. Time is of the essence in these Restrictions. 25.3. Construction. Except where the context otherwise requires, words imparting the singular number shall include the plural number and vice versa, words imparting persons shall include firms, associations, partnerships and corporations, and words of either gender shall include the other gender. 25.4. Waiver of Jury Trial. Unless prohibited by Federal, State or local laws, each party to these Restrictions hereby expressly waives any right to trial by jury of any claim, demand, action or cause of action arising under any Loan Document or in any way connected with or related or incidental to the dealings of the parties hereto or any of them with respect to any Loan Document, or the transactions related thereto, in each case whether now existing or hereafter arising, and whether sounding in contract or tort or otherwise; and each party hereby agrees and consents that any such claim, demand, action or cause of action shall be decided by court trial without a jury, and that any party to these Restrictions may file an original counterpart or a copy of this section with any court as written evidence of the consent of the parties hereto to the waiver of their right to trial by jury. 25.5. Nonliability. By accepting or approving anything required to be performed or given to City under these Restrictions, City shall not be deemed to have warranted or represented the sufficiency or legal effect of the same, and no such acceptance or approval shall constitute a warranty or representation by City to anyone. 25.6. Obligations Unconditional and Independent. Notwithstanding the existence at any time of any obligation or liability of City to Developer, or any claim by Developer against City, in connection with these Restrictions or otherwise, Developer hereby waives any right it might otherwise have: (a) to offset any such obligation, liability or claim against Developer's obligations under these Restrictions; or (b) to claim that the existence of any such obligation, liability or claim excuses the nonperformance by Developer of any of its obligations under these Restrictions. 21 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 26. Whenever this Agreement or any other Loan Document references a request that requires the approval or consent of a party, then each party shall act reasonably and in good faith in making any such request and responding to the request, but in no event shall either party be required to agree to terms that are not specified in this Agreement or waive any rights or privileges set forth herein. Whenever this Agreement references a party having "sole and absolute" discretion, then that party may exercise its discretion for any reason or no reason at all as that party may determine in its exclusive and independent judgment. 27. Notices. All notices, demands, approvals and other communications provided for in the Loan Documents shall be in writing and be delivered to the appropriate party by personal service or U.S. mail at its address as follows: If to Developer: During Construction: North Broadway Housing Partners LP c/o 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Attention: Chief Executive Officer Following construction: North Broadway Housing Partners LP c/o Jamboree Housing Corporation 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Attention: Asset Management With a copy to: Rutan & Tucker, LLP 18575 Jamboree Road, 9th Floor Irvine, CA 92612 Attention: Patrick D. McCalla With a copy to: WISEPIace 1411 N. Broadway Santa Ana, CA 92706 Attention: Brateil Aghasi Limited Partner Bank of America, N.A. 100 Federal Street MA5-100-04-11 Boston, MA 02110 Attention: Asset Management Facsimile: 617-346-2257 22 WISEPIace Pennanent Supportive Housing City HOME -ARP Affordability Restrictions on Tmnsfer of Property and Banc of America CDC Special Holding Company, Inc. 100 Federal Street MA5-100-04-11 Boston, MA 02110 Attention: Asset Management Facsimile: 617-346-2257 and Buchalter, a Professional Corporation 1000 Wilshire Blvd., Suite 1500 Los Angeles, CA 90017-2457 Attn: Michael A. Williamson, Esq. If to Lessor: WISEPIace 1411 N. Broadway Santa Ana, CA 92706 Attn: Executive Director If to City: City of Santa Ana Executive Director (CDA) 20 Civic Center Plaza (M-26) P.O. Box 1988 Santa Ana, California 92702 With a copy to: City Attorney City of Santa Ana 20 Civic Center Plaza, 7th Floor (M-29) Santa Ana, California 92702 Addresses for notice may be changed as required by written notice to all other parties. All notices personally served shall be effective when actually received. All notices mailed shall be effective three (3) days after deposit in the U.S. Mail, postage prepaid. The foregoing notwithstanding, the non -receipt of any notice as the result of a change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such notice. {signatures on following page} 23 WISEPIace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property IN WITNESS WHEREOF, the parties hereto have caused these Affordability Restrictions on Transfer of Property to be executed on the date set forth hereinabove. ATTEST: Jennifer L. Hall Clerk of the Co cil Dated: APPROVED AS TO FORM: SONIA R. CARyVAALHO, City Attorney By: Matthew Cody Best, Best & Krieger Special Counsel for the City Dated: RECOMMENDED Michael L. Executive 1 Agency AL: CITY OF SANTA ANA Kristine City Ma 24 WISEPIace Permanent Supportive Housing City HOME -ARP Afrmdability Restrictions on Transfer of Property Signed in Counterpart IN WITNESS WHEREOF, the parties hereto have caused these Affordability Restrictions on Transfer of Property to be executed on the date set forth hereinabove. Dated: 3 y�6`,+3 APPROVED AS TO FORM: SONIA R. CARVALHO, Cit By: Matthew ( Best, Best Special Cc Dated: for the City RECOMMENDED FOR APPROVAL: Michael L. Garcia Executive Director Community Development Agency CITY OF SANTA ANA &C {tu VL-" 03 Ci n /yl u!I iCi - cp ,PmAtTe Kristine Ridge City Manager Dated: LFIAO%V3 24 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property � iyred in Ceunterpari 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 March 15, 2023 before me, Claudia M. Femandez-Shaw, Notary Public (insert name and title of the officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person ) whose name re subscribed to the within instrument and acknowledged to me thattiVahAMey executed 4he same in eir authorized capacity(iest and that by reir signature(o on the instrument the person(5�,or the entity upon behalf of which the persons}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 CLAUDIA M. FERNANDEZ-SHAM Notary Public - California :I Orange County Commission t 2388597 1 o My Comm. Expires Jan 25, 2026 DEVELOPER NORTH BROADWAY HOUSING PARTNERS LP, a California limited partnership By: JHC-North Broadway LLC, a California limited liability company, its managing general partner By: Jamboree Housing Corporation, a California non-profit public benefit corporation, its managing member By: /I/4/bli l Nam' / r_>� G'fi�u/e5 /jJ�tSS/� Title:BN/d)c D&CW OWT CA- 25 WISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property 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 Mar(ar(l 15' '2 D Z 3 before me, Cristina Cota-Nunez, Notary Public (insert name and title of the officer) personally appeared IM(&h0rI Uri" 1(5 OAUSsle. 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. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) CRISTINA COTA•NUNEZ Notary Public - California •M1 Orange County Commission 4 Z379232 — ..o '� My Camm. UPires Cc[ 20. 2025 GROUND LESSOR JOINDER THE UNDERSIGNED ("Ground Lessor") is joining in the execution of these Affordability Restrictions on Transfer of Property ("Restrictions") to evidence its consent to these Restrictions and its agreement that the Restrictions bind the fee simple interest in the Property and the leasehold interest created by the Ground Lease, and further these Restrictions run with the land; provided that, by recording these Restrictions, the City, on behalf of itself and its successors, and assigns and on behalf of all other parties who, pursuant to the terms of these Restrictions, shall be entitled to the benefit thereof, shall be deemed to have agreed that: (i) Ground Lessor's execution of this joinder to the Restrictions shall not give rise to any personal liability or obligation under these Restrictions or any of the Loan Documents on the part of the Ground Lessor, its successors and assigns or any present or future officer, director, employee, trustee, member, agent or advisor of any of the foregoing, and (ii) all notices of default hereunder and under the other Loan Documents to the Trustor shall also be given to the Ground Lessor, and the Ground Lessor shall have the right to cure any such default on the terms and conditions set forth in the applicable Loan Document and Beneficiary shall accept or reject such cure on the same basis as if made by the Trustor. The address for notices to Ground Lessor is: WISEPIace 1411 N. Broadway Santa Ana, CA 92706 Attn: Executive Director Dated: * 2023 WISEPIace, a California nonprofit public benefit corporation !n Brateil Aghasi Executive Director 26 wISEPlace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of Property CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 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 I California(/W1/�,��1� County of bf, f ,�� . On D311612 . before me, �/HVI��io—LxAi i/ tyR,la ' Date Here Insert Name and Title o e bfficer personally appeared of who proved to me on the basis of satisfactory evidence to be the person) whose namesubscribed to the within instrument and acknowledg to me that he hey executed the same in his er heir authorized capacity(io, and that by his a h heir signature on the instrument the person, or the entity upon behalf of which the person( acted, executed the instrument. DAVID OCIEL UM Notary Public • California orange county CommlHbn N 3310113 MY Comm. EaPIM lup 3/, 3033 Place Notary Seal andfor Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Signature OPTIONAL hand and official Signature of Notary Completing this information can deter alteration of the document or v fraudulent reattachment ofthisform ttoo�a(n�,unintend d documen .. Description of Attached Document J C 1 T 'VR O031V I-�'R � 1 61i'S Title or Type of DocumerttlA v� Document Date: V7(2K, ayy S NumberofPages: rT `r'1 Signer(t) Other Than Named Above: ND pLLSI G/y�i�S Capacity(ies) Claimed by Sig1n�e�r�s�)�y�L Signer's Name: J)4kr6 T:)L_ ( ❑ Corporate Officer — Title(s)7 ❑ Partner— ❑ Limited ❑ General '% Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: 02019 National Notary Association Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: EXHIBIT A LEGAL DESCRIPTION 27 WISEPIace Permanent Supportive Housing City HOME -ARP Affordability Restrictions on Transfer of property Order No: 09196820-917-CG8-KRE EXHIBIT "A" All that certain real property situated in the County of Orange, State of California, described as follows A 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 17Tn JUDICIAL DISTRICT IN AND FOR LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF 15TH STREET AND SYCAMORE STREET AS SHOWN ON THE RECORD OF SURVEY NO 85-1067, RECORDED IN BOOK 111, PAGE 38, OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY, SAID CENTERLINE OF SYCAMORE STREET BEING 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 SAID ORANGE COUNTY, CALIFORNIA; THENCE SOUTHERLY ALONG SAID CENTERLINE OF SYCAMORE STREET SOUTH 00° 14' 46" WEST, 90 FEET AND SOUTH 00° 04' 48" EAST, 213.42 FEET TO THE POINT OF BEGINNING; THENCE LEAVING SAID CENTERLINE NORTH 89' 58' 21" WEST, 312.17 FEET TO THE CENTERLINE OF BROADWAY, THENCE NORTHERLY ALONG SAID CENTERLINE OF BROADWAY NORTH 00° 16' 10" EAST, 75.00 FEET TO THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN A DEED TO T. J. MULLINIX RECORDED OCTOBER 29, 1897 IN BOOK 33, PAGE 197 OF DEEDS OF SAID ORANGE COUNTY; THENCE EASTERLY ALONG SAID SOUTHERLY LINE OF SAID DEED TO T. J. MULLINIX SOUTH 89° 58' 10" EAST, 181.72 FEET TO THE WESTERLY LINE OF 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; THENCE NORTHERLY, ALONG SAID WESTERLY LINE NORTH 00° 04' 48" WEST, 77.08 FEET; THENCE SOUTH 89058'10" EAST, 130.00 FEET TO THE ABOVE MENTIONED CENTERLINE OF SYCAMORE STREET; THENCE SOUTHERLY ALONG SAID CENTERLINE OF SYCAMORE STREET, SOUTH 00°04'48" EAST, 152.06 FEET TO THE POINT OF BEGINNING. SAID LAND IS SHOWN AS LOT 1 ON VOLUNTARY LOT MERGER NO. 2022-06 RECORDED JANUARY 26, 2023 AS INSTRUMENT NO.2023000018589. OFFICIAL RECORDS OF SAID COUNTY APN: 398-523-04 E1""A If XH��T �+ ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: A 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 JUDGMENTS OF THE DISTRICT COURT OF THE 17TH JUDICIAL DISTRICT IN AND FOR LOS ANGELES COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF 15TH STREET AND SYCAMORE STREET AS SHOWN ON THE RECORD OF SURVEY NO 85-1067, RECORDED IN BOOK 111, PAGE 38, OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY, SAID CENTERLINE OF SYCAMORE STREET BEING 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 SAID ORANGE COUNTY, CALIFORNIA; THENCE SOUTHERLY ALONG SAID CENTERLINE OF SYCAMORE STREET SOUTH 000 14' 46" WEST, 90 FEET AND SOUTH 00° 04' 48" EAST, 213.42 FEET TO THE POINT OF BEGINNING; THENCE LEAVING SAID CENTERLINE NORTH 89' 58' 21" WEST, 312.17 FEET TO THE CENTERLINE OF BROADWAY, THENCE NORTHERLY ALONG SAID CENTERLINE OF BROADWAY NORTH 00° 16' 10" EAST, 75.00 FEET TO THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN A DEED TO T. J. MULLINIX RECORDED OCTOBER 29, 1897 IN BOOK 33, PAGE 197 OF DEEDS OF SAID ORANGE COUNTY; THENCE EASTERLY ALONG SAID SOUTHERLY LINE OF SAID DEED TO T. J. MULLINIX SOUTH 89° 58' 10" EAST, 181.72 FEET TO THE WESTERLY LINE OF 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; THENCE NORTHERLY, ALONG SAID WESTERLY LINE NORTH 00° 04' 48" WEST, 77.08 FEET; THENCE SOUTH 89°58'10" EAST, 130.00 FEET TO THE ABOVE MENTIONED CENTERLINE OF SYCAMORE STREET; THENCE SOUTHERLY ALONG SAID CENTERLINE OF SYCAMORE STREET, SOUTH 00004'48" EAST, 152.06 FEET TO THE POINT OF BEGINNING. SAID LAND IS SHOWN AS LOT 1 ON VOLUNTARY LOT MERGER NO. 2022-06 RECORDED JANUARY 26, 2023 AS INSTRUMENT NO. 2023000018589, OFFICIAL RECORDS OF SAID COUNTY. APN: 398-523-04