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HomeMy WebLinkAboutItem HA-03 - Amended and Restated Regulatory Agreement for the Rehabilitation of Garden CourtCommunity Development Agency www.santa-ana.org/community-development/ Item # 3 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 16, 2024 TOPIC: Garden Court Apartments Rehabilitation Project AGENDA TITLE Amended and Restated Regulatory Agreement for the Rehabilitation of Garden Court Apartments Located at 300 East Santa Ana Boulevard, Santa Ana, CA 92701 RECOMMENDED ACTION 1. Authorize the Executive Director to consent to the termination of the Original Agreement in order for the Acting City Manager to execute the Amended and Restated Agreement Containing Affordable Housing Covenants with Orange Housing Development Corporation for the rehabilitation of Garden Court Apartments located at 300 East Santa Ana Boulevard, Santa Ana, CA 92701 (APN 398-323-08). (Contingent upon approval of City Council Item # 27) (Agreement No. A-2024-XXX). 2. Approve the Relocation Plan and authorize the Acting City Manager to approve amendments to the Relocation Plan prior to commencement of the rehabilitation of Garden Court Apartments, substantially in the draft form attached hereto, subject to changes consistent with the project approved by the City Manager and City Attorney. GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION Garden Court Apartments is an existing 84-unit mixed -income apartment project located at 300 East Santa Ana Boulevard, Santa Ana, CA 92701 (APN 398-323-08) and owned by Orange Housing Development Corporation ("OHDC"). On May 26, 1995, the City of Santa Ana ("City"), the Community Redevelopment Agency, and OHDC entered into an agreement containing covenants that required 41 out of the 84 units on the property to be affordable to families earning 40% of the Area Median Income ("AMI") in perpetuity ("Original Agreement"). The remaining 43 units consist of 42 unrestricted market rate apartments and one manager's unit. The Original Agreement was entered into as part of a loan the City made for the project under the HOME Investments Partnership Program (24 C.F.R. 92.252) (the "HOME Program"). The Agency was part of the Original Agreement because the property was originally developed pursuant to a Redevelopment Plan for the City of Santa Ana Garden Court Apartments Rehabilitation Project July 16, 2024 Page 2 ("Redevelopment Plan"), and a Disposition and Redevelopment Agreement ("DDA") between the Agency and OHDC. Under the DDA, the Agency transferred the property to OHDC, and OHDC agreed to develop the project in accordance with the Redevelopment Plan. As required by state law, the Redevelopment Plan included certain inclusionary housing requirements, which were intended to be satisfied through the affordability covenants set forth in the Original Agreement. Following the dissolution of redevelopment agencies pursuant to California Assembly Bill 1X 26 (2011) and Assembly Bill 1484 (2012), there were numerous questions about the extent to which redevelopment agencies, or their successors, must enforce the inclusionary requirements of California's redevelopment law. This project, however, is located within the Central City subarea of the Redevelopment Plan, which as of July 2, 2017 was no longer effective. Based upon this, the Agency may consent to terminate the Original Agreement because the project is no longer subject to the Redevelopment Plan. The consideration for agreeing to terminate the Original Agreement is the covenant to restrict additional affordable units. In February 2024, C&C Development Co., LLC ("C&C") and OHDC approached the City with a proposal to rehabilitate Garden Court Apartments and convert the remaining 42 market rate units at the project to affordable housing units for families earning 80% of the AMI. C&C and OHDC are seeking financing for the rehabilitation. The changes to the existing regulatory agreement are intended to assist with their ability to obtain financing. Thus, as part of this proposal, OHDC and C&C are requesting that the affordability term for the 83 affordable units be set at 55 years, which modifies the existing affordability covenants that require the current 41 affordable units to be restricted in perpetuity. The amended agreement allows a change in the affordability covenants, but it does not contain an obligation to commence or complete the rehabilitation; the intent is that the amendment would assist OHDC and C&C to obtain financing for the rehabilitation. By this amendment, OHDC seeks to establish the restrictions that: (1) increase the affordability levels for the current 41 affordable units from 40% to 60% AMI, and (2) establish the 80% AMI restrictions for the remaining 42 units that are currently unrestricted. OHDC has stated its intention to repay the City's existing outstanding loan balance of $925,851 at the time of their construction loan closing. Until such time as the outstanding loan balance is paid, the City has an existing deed of trust on the Property that secures obligations under the original loan agreement, including federal requirements under the HOME Program. Following a four -month due diligence and negotiation process with C&C and OHDC, staff is requesting approval of an Amended and Restated Agreement Containing Affordable Housing Covenants ("Regulatory Agreement") to allow for the rehabilitation of Garden Court Apartments, subject to OHDC and C&C obtaining financing and subsequent approvals by the City's Planning and Building Agency for the rehabilitation work. In order for the Acting City Manager of the City to execute the Amended and Restated Regulatory Agreement, staff is also requesting approval for the Executive Director of the Housing Authority to consent to the termination of the Original Agreement. The Garden Court Apartments Rehabilitation Project July 16, 2024 Page 3 proposed rehabilitation project, Amended and Restated Regulatory Agreement, and draft relocation plan of existing tenants are further described below. Proposed Rehabilitation Project After recording the Regulatory Agreement, OHDC and C&C Development state that they will proceed with their efforts to obtain financing for the rehabilitation. The proposed rehabilitation project is of an occupied four-story multifamily apartment building (Garden Court Apartments) situated on a 1.44-acre site ("Project"). Currently, the property consists of 41 affordable family units and 42 market -rate units, plus one (1) manager's unit. The unit configuration will not be changed and the unit mix will continue to be comprised of 12 one -bedroom units, 12 one -bedroom units with a den, and 60 two -bedroom units. A total of 41 of the 84 units will be affordable to families at 60% AMI and the remaining 42 units will be affordable to families at 80% AMI. The Regulatory Agreement will allow rent increases for current residents in the 40% AMI units, but those residents will be protected from displacement through a rent escalator cap where the rent will not be increased annually by more than five percent (5%) plus the percentage change in Consumer Price Index, or ten percent (10%), whichever is lower, of the rent authorized under OHDC's original agreement with the City. As mentioned, the final rehabilitation plans and commencement of rehabilitation is contingent on future financing and planning approvals. Based on the information from OHDC and C&C, upon completion of the rehabilitation, the existing residential building will have updated architectural design features that will align with the newly constructed Legacy Square project across the street. The community and programming spaces will also undergo modernization to enhance the living experience for residents, bringing it on par with market -rate communities. The rehabilitation plan also includes aesthetic enhancements to the fagade and landscaping to improve the street frontage on all four sides of the building. Additionally, a small dog run area will be incorporated on the ground floor, facing North Spurgeon Street. Access to the parking garage on the ground floor will be facilitated through two parking garage gates, located on French Street and North Spurgeon Street respectively. Tenants will access their assigned parking spaces from within the parking garage. For residents on the three floors of apartments above the parking garage, access to the garage will be provided via elevator or stairs. According to the proposal, the rehabilitation of the Project will occur in four (4) separate phases consisting of 21 units undergoing rehabilitation at one time. Due to the extent of the rehabilitation, these units will need to be vacant during the rehabilitation. The relocation plan of existing tenants is further outlined below. Overall, this Project will establish deed restrictions for 42 new units of affordable housing for low-income households in the City and rehabilitate the entire property, including the 41 existing affordable housing units, ensuring the Project's sustainability and affordability for the next 55 years. OHDC states the City's current loan balance of $925,851 will also be repaid at construction loan closing. OHDC and C&C have worked Garden Court Apartments Rehabilitation Project July 16, 2024 Page 4 closely with the City since 1994 to provide affordable housing for Santa Ana residents. OHDC and C&C currently own and operate 897 family and senior affordable units across 14 communities within the City. These include revitalization and rehabilitation developments such as Cornerstone Village, Wilshire/Minnie Neighborhood, Townsend and Raitt Neighborhood, and new construction developments such as Andalucia Apartments, Depot at Santiago, and Terraces at Santiago. OHDC and C&C have never sold an affordable community they have developed in the City and they maintain a long- term commitment to serving the community. Amended and Restated Regulatory Agreement The Amended and Restated Regulatory Agreement is attached as Exhibit 1. The following key terms are incorporated into the Regulatory Agreement, with specific attention here to the Consent by Housing Authority required: • Owner: Orange Housing Development Corporation, who may request approval from the City in the future to transfer the property to C&C following a tax credit application and/or the rehabilitation of the project. • Term: 55 years from the date the Regulatory Agreement is recorded. • Unit Mix: There will be 41 units designated for families with an income equal to or less than 60% AMI and 42 units designated for families with an income equal to or less than 80% AMI. There will continue to be one (1) unrestricted manager's unit. The rents will be tied to the Tax Credit Allocation Committee rents. • Restrictions on Rent Increases for Existing Households Currently Residing in the 60% AMI Units: The 60% AMI units are the same forty-one (41) units restricted under the Original Agreement. The maximum annual rent increase for tenants currently residing in one of the 60% AMI units shall not exceed five percent (5%) plus the percentage change in Consumer Price Index, or ten percent (10%), whichever is lower, of the rent authorized under the Original Agreement until the rent equals 60% AMI. Rents may be increased only once a year. • Selection of Tenants: A new local preference will be added to the Resident Selection Plan for residents who live or work in the City. • Rehabilitation and Maintenance: OHDC is responsible for the rehabilitation of the Project and ongoing maintenance of the property to ensure it remains in a healthy and safe condition over the 55-year term. The Regulatory Agreement does not contain an obligation for OHDC or C&C to proceed with the rehabilitation as proposed. • Consent by Housing Authority: The Regulatory Agreement removes the Community Redevelopment Agency for the City of Santa Ana as a party. The Housing Authority, as the Successor Agency, must approve this through a consent. The Amended and Restated Regulatory Agreement has been signed by OHDC to acknowledge their acceptance of the terms. Garden Court Apartments Rehabilitation Project July 16, 2024 Page 5 Draft Relocation Plan of Existina Tenants Relocation activities are subject to California Relocation Assistance Law, Government Code Section 7260, et seq., and the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Community Development as in Title 25, California Code of Regulations Section 6000, et seq. The rehabilitation of Garden Court Apartments requires 21 units to be unoccupied for the start of the four (4) separate phases referenced above. Based upon resident interviews conducted by Overland, Pacific and Cutler and current household and income information, it is currently anticipated the vacancy of these units will be achieved through the permanent relocation of nine (9) existing households that are currently over - income, six (6) existing vacancies that have been accumulated as of the date of the Staff Report, and the relocation of six (6) income -qualified households who will be relocated on a permanent basis but have the right of first refusal to return to Garden Court Apartments upon completion of the rehabilitation. All households permanently relocated from the property will be receive relocation benefits. The requirement to relocate income -qualified households may decrease to the extent additional units become vacant at the property due to normal turnover. At the time of relocation, C&C and OHDC will also work to relocate those income -qualified households to existing C&C/OHDC affordable communities in Santa Ana. The Relocation Plan as of June 27, 2024, is attached as Exhibit 2. With approval by the Agency, the Acting City Manager will approve any required amendments or modifications to the Relocation Plan, as reasonably necessary to implement the approval of the Regulatory Agreement to comply with reasonable conditions of financing for rehabilitation of the Project. Any changes to the final Relocation Plan will be consistent with the project and approved by the City Manager and City Attorney. The Regulatory Agreement provides that relocation will not commence unless and until the City is provided with advance notice and written confirmation that the relocation is consistent with the Relocation Plan or, to the extent any changes are requested, the City Manager has approved those changes. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Amended and Restated Regulatory Agreement 2. Draft Relocation Plan, as of June 27, 2024 Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nunez, Acting City Manager Exhibit 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) Santa Ana, CA 92702 Attn: Housing Division Manager APN: 398-323-08 SPACE ABOVE FOR RECORDER'S USE ONLY EXEMPT FROM RECORDING FEE PER GOVERNMENT CODE §27383 AMENDED AND RESTATED AGREEMENT CONTAINING AFFORDABLE HOUSING COVENANTS (Garden Court Apartments) by and between THE CITY OF SANTA ANA, a California municipal corporation and charter city, and ORANGE HOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation [Dated as of , 2024 for reference purposes only] Error! Unknown document property name. Exhibit 1 AMENDED AND RESTATED AGREEMENT CONTAINING AFFORDABLE HOUSING COVENANTS (Garden Court Apartments) THIS AMENDED AND RESTATED AGREEMENT CONTAINING AFFORDABLE HOUSING COVENANTS (this "Agreement") is entered into as of 2024, by and among ORANGE HOUSING DEVELOPMENT CORPORATION, a California nonprofit corporation ("OHDC"), and THE CITY OF SANTA ANA, a municipal corporation and charter city (the "City"). WHEREAS, OHDC is the owner of that certain real property (the "Property") located in the City of Santa Ana more particularly described in Attachment No. 1 which is attached hereto and incorporated herein by this reference; and WHEREAS, the City, the Community Redevelopment Agency of the City of Santa Ana, a public body, corporate and politic ("Agency") and OHDC entered into that certain Agreement Containing Covenants (Garden Court Apartments Apartments) (the "Original Agreement"), dated as of May 26 1994, and recorded on May 26, 1995 as Document No. 95-0225207 in the Official Records of Orange County (the "Official Records"), which provides that the Owner would operate the Property as affordable housing with specified income, occupancy and rent restrictions. WHEREAS, the Project was previously financed with a loan from the City under the HOME Investment Partnerships Act (the "HOME Program"). The Project complied with the minimum period of affordability for the HOME Program as set forth in 24 CFR 92.252 by providing affordable housing to very low income households for a period of no less than twenty (20) years. The Project now requires rehabilitation to continue providing safe, decent, and quality affordable housing. Therefore, OHDC is requesting a modification of the Original Agreement to remove the HOME Program affordability requirements and impose affordability requirements consistent with the low-income housing tax credit program, as implemented by the California Tax Credit Allocation Committee, as further set forth herein. WHEREAS, OHDC desires to refinance and rehabilitate the Project. In connection with the refinance and rehabilitation of the Project, the City and OHDC desire to amend and restate the Original Regulatory Agreement in its entirety with this Agreement. WHEREAS, the City agrees to this Amended and Restated Agreement Containing Affordable Housing Covenants to allow for the OHDC to complete the rehabilitation, reconstruction, improvement or addition to, or replacement of, dwelling units of a previously existing low -rent housing project, or a project previously or currently occupied by lower income households, as defined in Section 50079.5 (the "Project"), on the terms and conditions set forth herein. NOW, THEREFORE, CITY AND OHDC COVENANT AND AGREE AS FOLLOWS: 1. OHDC covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Property or any part thereof (the "Owner") that Owner, such successors, 1 Error! Unknown document property name. Exhibit 1 and such assigns shall use the Property to provide affordable housing in compliance with this Agreement. In addition to all other terms and conditions set forth herein, this Agreement is subject to the following: (a) Owner agrees and acknowledges prior receipt of a loan from the City in the amount of One Million One Hundred Thousand Dollars ($1,100,000.00) ("City HOME Loan"), evidenced by a Promissory Note Secured by Subordinated Deed of Trust, dated May 26, 1995, and secured by a Subordinated Deed of Trust with Assignment of Rents (Securing Home Loan), recorded in the Official Records of Orange County as Document No. 95-0225206 ("City HOME Deed of Trust"). Owner represents and warrants that it is not in default of the City HOME Loan and agrees that this Agreement does not amend, restate or modify the loan agreement and promissory note evidencing the City HOME Loan nor the City HOME Deed of Trust or the obligations thereunder. (b) Owner and City agree to amend the affordability covenants in Section 2 of the Original Agreement on the terms and conditions set forth herein, which shall be effective upon the recordation of this Agreement and continue for a term of at least fifty-five (55) years (the "Term" (c) The covenants against discrimination set forth in Section 9, below, shall remain in effect in perpetuity. 2. Owner, for itself and its successors and assigns, hereby covenants and agrees that the 84 apartments on the Property (the "Units") shall be restricted as follows: (i) forty-one (41) Units, consisting of fifteen (15) one bedroom, one -bathroom Units and twenty-six (26) two - bedroom, two -bathroom Units (the "60% AMI Units") shall be rented exclusively, at Affordable Rent, to 60% Income Households as defined in subsection (a) below, and to Existing Households as set forth in subsection (b) below; and, (ii) forty-two (42) Units, consisting of nine (9) one bedroom, one -bathroom Units and thirty-two (32) two -bedroom, two -bathroom Units (the "80% AMI Units) shall be rented exclusively, at Affordable Rent, to 80% Income Households, as defined in subsection (a) below. The 60% AMI Units and the 80% AMI Units are collectively referred to as the "Restricted Units," which shall only be occupied by eligible households for the 60% AMI Units or 80% AMI Units, as applicable. Area median income levels and Affordable Rents are subject to adjustment from time to time as provided in this Section 2 below. The restrictions set forth in this Section 2 shall remain in effect for fifty-five (55) years after the date of recordation of this Agreement. "Affordable Rent" shall mean the maximum rent for Existing Restricted Tenants (as defined below) as set forth in subsection (b) or the maximum rent for 60% AMI Units or 80% AMI Units, as applicable, as set forth in subsection (c). (a) Maximum Incomes. (i) 60% AMI Units. The maximum incomes of residential tenants eligible to rent the 60% AMI Units shall be an individual or household that has a household income equal to or less than sixty percent (60%) of then current Area Median Family Income for the Santa Ana -Anaheim -Irvine, CA HUD Metro FMR Area, adjusted for household size, as published by the California Tax Credit Allocation Committee ("TCAC") annually ("60% 2 Error! Unknown document property name. Exhibit 1 Income Household(s)"). A 60% Income Household includes an Existing Restricted Tenant that meets the income eligibility requirements of the Original Agreement. (ii) 80% AMI Units. The maximum incomes of residential tenants eligible to rent the 80% AMI Units shall be an individual or household that has a household income equal to or less than eighty percent (80%) of then current Area Median Family Income for the Santa Ana -Anaheim -Irvine, CA HUD Metro FMR Area, adjusted for household size, as published by TCAC annually ("80% Income Household(s)"). (b) Restrictions on Rent Increases for Existing Households Currently Residing in the 60% AMI Units. The 60% AMI Units are the same forty one (41) Units restricted under the Original Agreement. Notwithstanding the definition of Affordable Rent set forth in subsection (c), below, the maximum annual rent increase for tenants currently residing in one of the 60% AMI Units ("Existing Restricted Tenant") shall not exceed five percent (5%) plus the percentage change in Consumer Price Index, or ten percent (10%), whichever is lower, of the rent authorized under the Original Agreement at the time of the recording of this Agreement and, in each subsequent year, the then current rents, until the rent equals the rent that is otherwise allowed under Section 2(c)(i) of this Agreement. Rents may be increased only once a year. The term "Consumer Price Index" means, at the time of the rent increase, the annual percentage increase in the United State Consumer Price Index for all Urban Consumers in the Los Angeles -Long Beach- Anaheim Metropolitan Area (1982-84=100) published by the Bureau of Labor Statistics, not seasonally adjusted, for the most recent twelve (12) month period ending prior to the rent increase. For each Existing Restricted Tenant that ceases to reside at the Property, the rent for the Unit that tenant formerly occupied shall no longer be subject to this Section 2(b) and shall be subject to Section 2(c). (c) Maximum Rents for New Households. (i) 60% AMI Units. Except as provided in subdivision (b) above, the maximum rent for the 60% AMI Units shall be determined in accordance with the maximum rent for a 60% Income Household as published by the TCAC annually to qualify for and be in compliance with the federal statutes or regulations for the federal low income housing tax credit program established under Section 42 of the Internal Revenue Code and administered in the State of California by TCAC ("Tax Credit Program"). (ii) 80% AMI Units. The maximum rent for the 80% AMI Units shall be determined in accordance with the maximum rent for an 80% Income Household as published by the TCAC annually to qualify for and be in compliance with the Tax Credit Program. (iii) Adjustments for Household Size. For purposes of the calculation of Affordable Rent "adjusted for household size" shall be the federally -mandated household size assumptions as set forth for the Tax Credit Program. (iv) Rent Increases. Owner may increase rents not more than once annually in accordance with the annual maximum rent for 60% Income Households or 80% Income Households, as applicable, as published by the TCAC annually. Error! Unknown document property name. Exhibit 1 (d) Recertification of Incomes. Owner shall reexamine the income of each tenant household living in the Restricted Units at the same times as required TCAC regardless if low income tax credits have been allocated to the Project. The maximum monthly rent shall be recalculated by Owner in accordance with the then maximum rent for Existing Restricted Tenants, as defined above, or for 60% Income Households or 80% Income Households, as applicable, as published by TCAC. Any increase in rents for the Restricted Units is subject to the provisions of existing leases with tenants. In any event, Owner must provide tenants of the Restricted Units not less than 30 days prior written notice before implementing any increase in rents, and must comply with any state or local law providing for additional notice requirements. (i) Owner shall make reasonable efforts to verify or cause to be verified that the Gross Household Income for each Eligible Household complies with the requirements of this Agreement. These efforts shall include verification of 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. (ii) OHDC agrees to recertify or cause to be recertified household eligibility on the same time frame and on the same forms as required by TCAC. Owner shall provide to City the form of tenant income recertification that is required by TCAC no later than seventy-five (75) days after close of each calendar year. (e) Increases in Tenant Incomes Above 80% Income. (i) Increase from 60% AMI Income to, at or below 80% AMI Income. In the event a tenant of a Restricted Unit no longer qualifies as a 60% Income Household as the result of increases in the income of the household, Owner may increase the rent charged to such tenant to an amount equal to the maximum rent for 80% AMI Units as set forth in Section 2(c)(ii). In addition, to the extent that the number of 60% AMI Units falls below forty-one (41) as the result of an increase in the income of a tenant of a Restricted Unit, Owner shall rent to a 60% Income Household, at Affordable Rent, the next Unit that becomes vacated, such that the total number of 60% Income Units is restored to forty-one (41). (ii) Increase Above 80% AMI Income. In the event a tenant of a Restricted Unit no longer qualifies as an 80% Income Household as the result of increases in the income of the household, Owner may increase the rent charged to such tenant to an amount equal to 30% percent of the tenant's household income. In addition, to the extent that the number of Restricted Units falls to below eighty-three (83) as the result of an increase in the income of a tenant of a Restricted Unit, Owner shall rent the next Unit that becomes vacated, to either a 60% Income Household or an 80% Income Household at Affordable Rent to comply with the requirements of Section 2 above. 2 Error! Unknown document property name. Exhibit 1 (iii) To the extent the federal Tax Credit Program requirements conflict with the requirements in this Section 2(e), relative to the continued occupancy by households that do not qualify as 80% Income Households, the federal Tax Credit Project requirements shall apply in place of the provisions in this Section 2(e). (f) Occupancy Levels. Subject to state or federal laws and regulations, the number of persons permitted to occupy each Restricted Unit shall not exceed the amount permitted by TCAC or, if TCAC no longer sets maximum occupancy limits, two persons per bedroom, plus one person. If a household, during the terms of its tenancy, adds members that exceed the maximum occupancy allowed under this section, Owner shall provide written notification informing the household that: it is over -occupancy; has been placed on a waiting list for an appropriately -sized unit for a period of up to one -hundred and eighty (180) days; the expiration date of the waiting list; and the terms for terminating the lease. A written status update will be provided to the household at one -hundred and twenty (120) days, ninety (90) days, sixty (60) days and thirty (30) days if applicable. To the extent that a tenant household occupying a Restricted Unit as of the date of this Agreement is over -occupancy, such tenant household shall not be subject to this subsection (f) as long as it continues to occupy the same Restricted Unit. 3. Owner, its successors and assigns shall not charge rents for the Restricted Units in excess of the amounts set forth in Section 2(b) or (c), as applicable. 4. Owner shall adopt and include as part of its Management Plan (described in Section 10, below), written tenant selection policies and criteria for the Restricted Units which meet the following requirements. (a) Are consistent with the purpose of providing housing for 60% Income Households and 80% Income Households. (b) Are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease. (c) Give reasonable consideration to the housing needs of families that would have a preference under 42 CFR §906.211 (Federal selection preferences for admission to Public Housing); (d) Provide for: (i) The selection of tenants from a written waiting list in the chronological order of their application, subject to Section 4(e) and 4(f) below, insofar as is practicable; and (ii) The prompt written notification to any rejected applicant of the grounds for any rejection; (e) Subject to applicable fair housing laws, give a first priory preference and consideration, including but not limited to priority placement on a written waiting list of available units, to the housing needs of households who have been permanently displaced or face permanent displacement from housing in Santa Ana as a result of any of the following: 5 Error! Unknown document property name. Exhibit 1 (i) A redevelopment project undertaken pursuant to California's Community Redevelopment Law (Health & Safety Code Sections 33000, et seq.) - applicable only to projects funded by the low and moderate income housing asset fund as defined in the Community Redevelopment Law; property owner; or (ii) Ellis Act, owner -occupancy, or removal permit eviction; (iii) Earthquake, fire, flood, or other natural disaster; (iv) Cancellation of a Housing Choice Voucher HAP Contract by (v) governmental action, such as Code Enforcement; (f) Subject to applicable fair housing laws, give a second preference to the housing needs of households residing in, employed in, or offered employment in the City of Santa Ana, including but not limited to priority placement on a written waiting list of available units; and (g) Carry out the Affirmative Marketing procedures of the City of Santa Ana, to provide information and otherwise attract eligible persons from all racial, ethnic and gender groups, and low income households or households with special needs, in the housing market area to the Restricted Units. Owner shall maintain a marketing program and resident selection plan for leasing of the Restricted Units ("Marketing Program") consistent with the marketing of the Project under the Original Agreement prior to the approval of this Agreement . The leasing of the Restricted Units shall be marketed in accordance with the Marketing Program, as the same may be amended from time to time and submitted to the City. 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 detail 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. 5. Owner, its successors and assigns, shall not refuse to lease a restricted Unit to a holder of a certificate of family participation under 24 CFR part 882 (Rental Certificate Program) or a rental voucher under 24 CFR part 887 (Rental Voucher Program) or to a holder of a comparable document evidencing participation in a HOME or other tenant -based rental assistance program because of the status of the prospective tenant as a holder of such certificate of family participation, rental voucher, or comparable HOME or other tenant -based rental assistance document. 6. Any lease of a Restricted Unit must be for not less than one year, unless by mutual agreement between the tenant and the Owner. The lease may not contain any of the following provisions (in which references to "owner" shall mean the Owner, its successors or assigns): (a) Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of the owner in a lawsuit brought in connection with the lease; 0 Error! Unknown document property name. Exhibit 1 (b) Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with state law; (c) Agreement by the tenant not to hold the owner or the owner's agents legally responsible for any action or failure to act, whether intentional or negligent; (d) Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant; (e) Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; (f) Agreement by the tenant to waive any right to a trial by jury; (g) Agreement by the tenant to waive the tenant's right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; and (h) Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. 7. Owner, its successors or assigns, may not terminate the tenancy or refuse to renew the lease of a tenant of a Restricted Unit, 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 period; or for other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by Owner's service upon the tenant of a written notice specifying the grounds for the action. 8. Owner shall, at all times during the Term of this Agreement, cause the Property and the Project to be maintained in a healthy and safe manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. Subject to the rights of tenants, City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project, after providing notice as follows: (i) at least a 24-hour notice to Owner and tenants of the Restricted Unit(s) which will be inspected, or (ii) at least 48 hours' notice to Owner, which shall promptly give notice to tenants of the Restricted Unit(s) to be inspected. 9. Owner covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property or any part thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, age, source of income, disability, veteran or military status, or genetic information of any person, in the sale, lease, sublease; transfer, use, occupancy, tenure or enjoyment of the Property nor shall the Owner itself or any person claiming under or through it 7 Error! Unknown document property name. Exhibit 1 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. 10. Owner shall manage the Restricted Units in accordance with the most -recently approved Management Plan, including such amendments as may be approved in writing from time to time by the City Housing Division Manager, for the term of the income and rent restrictions contained in this Agreement. The components of the Management Plan shall include: (a) Management Agent. Owner shall submit the name and qualifications of any proposed change to the Management Agent. The City Housing Division Manager shall approve or disapprove any changes to the Management Agent in writing based on the experience and qualifications of the Management Agent. The City hereby approves Advanced Property Services Management, Inc. as the Management Agent. (b) Management Agreement. Owner shall submit a copy of any proposed changes to the management agreement specifying the amount of the management fee, and the relationship and division of responsibilities between Owner and Management Agent. (c) Tenant Selection Policies. Owner shall include in the Management Plan the tenant selection policies in accordance with Section 4, above. If at any time the City determines that the Restricted Units are not being managed or maintained in accordance with the approved Management Plan, Owner shall change the Management Agent or the practices complained of, upon receipt of written notice from the City Housing Division Manager. The City Housing Division Manager may require Owner to change management practices or to terminate the management contract and designate and retain a different management agent, to be approved by the City Housing Division Manager. The management agreement shall provide that it is subject to termination by Owner without penalty, upon thirty (30) days prior written notice, at the direction of the City Housing Division Manager. Within ten (10) days following a direction of the City Housing Division Manager to replace the Management Agent, Owner shall select another management agent or make other arrangements satisfactory to the City Housing Division Manager or designee for continuing management of the Restricted Units. 11. Prevailing Wage. (a) Owner represents that it is familiar with the requirements of the California Prevailing Wage Law (Cal. Labor Code § 1720 et seq.) and the federal Davis -Bacon Act (40 U.S.C. § 3141 et seq.) (collectively, the "Prevailing Wage Laws"). Owner agrees and acknowledges that City has not made any statements or representations about whether Prevailing Wage Laws apply to any work to be performed on the Project or the Property, and that Owner assumes any and all responsibility and liability as to whether or not laborers employed relative to any work on the Property or Project must be paid the prevailing per diem wage rate for their labor classification or whether any other requirements of the Prevailing Wage Laws apply to work performed on the Property or the Project. Error! Unknown document property name. Exhibit 1 (b) Owner, on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to any of them pursuant to Prevailing Wage Laws. Owner acknowledges the protections of Civil Code section 1542 relative to the waiver and release contained in this Section 11, which reads as follows: A general release does not extend to claims which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor or released party. (c) By signing this Agreement, Owner knowingly and voluntarily waives the provisions of section 1542 solely in connection with the waivers and releases of this Section 11. (d) Additionally, Developer shall indemnify, defend and hold harmless the city against any claims made under Prevailing Wage Laws arising from this Agreement or the construction, installation or rehabilitation of the Property or the Project, or portion thereof. 12. Relocation. Owner 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. Prior to recordation of this Agreement, Owner submitted to the City a relocation plan, dated on or about May 28, 2024, regarding rehabilitation of the Project and prior to any rehabilitation of the Project the Owner shall submit updates to such relocation plan for City approval, which approval shall not be unreasonably withheld, delayed, or conditioned ("Relocation Plan"). Owner shall at all times comply with the Relocation Plan. In addition to any other indemnity provided by Owner under this Agreement, Owner shall indemnify, defend (with counsel of City's choosing and the consent of Owner, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Owner'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, or any other claim arising from or related to relocation of existing tenants. 13. Emergency Evacuation Plan. Owner shall maintain an Emergency Evacuation Plan (the EEP). 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 EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 14. Crime Free Housing. Owner shall maintain a crime free housing policy, procedure, and design plan (the "CFH Plan"), which includes the following provisions: 0 Error! Unknown document property name. Exhibit 1 (a) Requiring parking areas and common interior areas (lobbies, elevators, etc.) to contain security cameras; (b) Requiring routine unit inspections; (c) Ensuring lobby/other entrance doors are secured and accessed via remote controls, fobs, etc.; and (d) Have policies in place to ensure that common use areas such as hallways and trash enclosures are maintained in good condition and repair (e.g., well -lit, kept clean, etc.). The CFH Plan shall be implemented and administered by Owner or its designated property manager, subject to all legal requirements, prohibitions against discrimination or unlawful housing practices. 15. Onsite Parking Management Plan. Owner shall maintain onsite parking for residents and visitors of the Project consistent with parking available to the Project prior to approval of this Agreement and actively monitor the parking demand of the Project site. Owner shall continually monitor and take the following 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, but taking the following actions: a. Requiring onsite parking permits (such as stickers or hang -tags) for any parking in the onsite parking spaces for both residents and guests; b. Adopting policies for maximum time vehicles may be parked in the surface parking spaces, including any guest parking; and C. Adopting policies for towing unauthorized vehicles, vehicles parked in unauthorized locations (such as fire lanes), vehicles parked in surface guest parking without a sticker, hang -tag, or other identifiers, and vehicles parked longer than any maximum guest parking timeframes allowed. Owner shall comply with and enforce the PMP at all times. 16. Recordkeeping. Throughout the Term of this Agreement, Owner shall annually complete and submit to City an annual compliance report. Representatives of the City shall be entitled to enter the Property, if necessary, after review of the documentation, upon at least forty- eight (48) hours' notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project and to conduct an independent audit or inspection of such records at a location within the City that is reasonably acceptable to the City. Owner agrees to cooperate with the City making the Property and the records of the Project relating to each Unit available for such inspection or audit. Owner agrees to maintain each record of the Project for no less than five (5) years after the creation of such record, or such longer time as required by law if a record relates to an audit or litigation. 10 Error! Unknown document property name. Exhibit 1 17. The covenants established in this Agreement and any amendments hereto approved by the City and Owner shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City and its respective successors and assigns. 18. The City is a beneficiary of the terms and provisions of this Agreement and the covenants herein, both for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, for whose benefit this Agreement and the covenants running with the land have been provided. The City shall have the right if the covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which they or any other beneficiaries of this Agreement and covenants are entitled. 19. The covenants and agreements contained herein shall run with the land and not be personal obligations of Owner. Upon the sale, conveyance or other transfer of the Property that is approved by the City pursuant to this Agreement, or a Permitted Transfer, and the assumption of the obligations hereunder by a transferee, Owner's liability for performance shall be terminated as to any obligation to be performed hereunder after the date of such Transfer. 20. Default. (a) Event of 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 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 within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). 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. (b) 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 times, of any other rights or remedies for the same default or any other default by the other Party. City's rights and remedies to enforce this Agreement include any and all civil, administrative, or criminal remedies as set forth in local, state, or federal law. 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. 21. Indemnification. In addition to any other indemnity specifically provided in this Agreement, Owner agrees to defend (with counsel of City's choosing and the consent of Owner, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Owner's consent) indemnify and hold harmless City, the Housing Authority (in its capacity as the Successor Agency to the Community Redevelopment Agency for 11 Error! Unknown document property name. Exhibit 1 the City of Santa Ana), and their respective officers, officials, agents, employees, representatives, volunteers, successors or assigns (collectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or omission of Owner, or its officers, officials, agents, employees, representatives, volunteers, or successors or assigns ("Indemnitors") in connection with Indemnitors' obligations under the Original Agreement or this Agreement, or any loss, claims, damages, judgement, penalties, liabilities or costs asserted against Indemnitees that arise from or relate to the Original Agreement or this Agreement, including but not limited to the approval this Agreement, except to the extent required by law for the negligence or willful misconduct of Indemnitees. 22. Transfer or Assignment (a) Prohibited Transfers or Assignments. Owner shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Owner's rights and obligations in this Agreement, in whole or in part, unless the sale, transfer, or assignment is a Permitted Transfer (as defined in Section 22(e)) or approved by the City. If Owner seeks to sell, transfer or assign the Property or Project, or any rights and obligations in this Agreement, in a manner that does not constitute a Permitted Transfer, Owner shall request City's written consent, and City shall respond within fifteen (15) days with a written approval or denial, which City may determine in its reasonable discretion. If City approves such a request, then prior to any such sale, transfer or assignment, Owner shall pay City's reasonable fees as compensation for the City's review of the request. City's failure to respond to the request within fifteen (15) days shall be deemed an approval. Notwithstanding any transfer or assignment, including any Permitted Transfers, this Agreement shall not be subordinated and 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 on or after the approval of this Agreement. (b) Sale of Property. Owner agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, 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 shall be binding on Owner 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. (c) Subsequent Assi_ng meet. As used in this Agreement, the term "Owner" shall be deemed to include any such transferee or assignee after the date such sale, transfer, or assignment occurs in compliance with this Agreement. (d) 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. (e) Permitted Transfers. Any of the following do not require the City's prior written approval (the "Permitted Transfers"): 12 Error! Unknown document property name. Exhibit 1 a. Any transfer to a lender providing financing to the Project; b. Any transfer resulting from foreclosure or deed in lieu of foreclosure; C. Any transfer of stock or equity in Owner that does not change management or operational control of the Project, with no material change in beneficial ownership (with the exception of any conveyance to member(s) of the immediate family(ies) of the transferor(s) or trusts for their benefit); d. The lease of residential units in the Project consistent with this Agreement; e. Any transfer of this Agreement and the Property to a limited partnership in which OHDC or its affiliate is a general partner. f. The transfer and sale of limited partnership interests in Owner while the Owner is in the form of a limited partnership. g. In the event that any general partner of the Owner, while the Owner is in the form of a limited partnership, is removed by the limited partner of such limited partnership for cause following default under the partnership agreement, the transfer of the general partner interest to a 501(c)(3) tax exempt nonprofit corporation selected by the limited partner and approved by the City, which approval shall not be withheld unreasonably, delayed or conditioned. h. The transfer of the Project from Owner, while the Owner is in the form of a limited partnership, to one or more of the general partners of the Owner or affiliates of the general partners of the Owner at the end of the tax credit compliance period for the Project; and i. Any dilution of the general partner's interest in the Owner while the Owner is in the form of a limited partnership, in accordance with the Owner's limited partnership agreement. 23. MISCELLANEOUS (a) 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 affordability requirements set forth in this Agreement for the Project, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or 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. (b) 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 that further the intent of this Agreement. Each alteration, change, or modification to this 13 Error! Unknown document property name. Exhibit 1 Agreement shall be recorded against the Property in the Official Records of Orange County, California. (c) Notices. (i) 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; or (v) upon transmission thereof (as evidenced by the recipient's reply to such notice or other competent evidence of actual receipt) if transmitted by electronic transmission (email), provided that a copy of such notice is concurrently sent by first- class mail postage prepaid. 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 Division 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 Owner: Orange Housing Development Corporation 414 E. Chapman Avenue Orange, CA 92866 Attention: Chief Executive Officer (ii) 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. (d) Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement 14 Error! Unknown document property name. Exhibit 1 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. (e) 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. (f) Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. (g) 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. (h) Joint and Several Obligations. If at any time during the Term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one owner, all obligations of such Owner under this Agreement shall be joint and several, and the default of any such owner shall be the default of all such owners. (i) Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 0) Computation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "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. (k) 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. (1) Non -Discrimination. In performing its obligations under this Agreement, OHDC shall not discriminate because of race, color, creed, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, age, source of income, disability, medical condition, veteran or military status, or genetic information of any person, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, or termination of employees or other related activities. Owner affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. (m) Third Party Beneficiaries. No person or entity, other than City and Owner shall have any right of action based upon any provision of this Agreement. 15 Error! Unknown document property name. Exhibit 1 (n) 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, 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 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. (o) 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. (p) 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 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. (q) 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. (r) 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. (s) Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that 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 Owner is that of a government entity regulating private property and the Owner of such property. (t) 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 16 Error! Unknown document property name. Exhibit 1 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. (u) 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 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. (v) No Subordination. 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. (w) 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. 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 Following Pages] 17 Error! Unknown document property name. Exhibit 1 IN WITNESS WHEREOF, the City and Owner have executed this Agreement. Date:�� Date: ORANGE HOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation By: Eunice Bobert Chief Executive Officer THE CITY OF SANTA ANA, a municipal corporation and charter city IC Alvaro Nunez, Acting City Manager ATTEST: Jennifer L. Hall, City Clerk APPROVED AS TO FORM: Sonia R. Carvalho CITY ATTORNEY By: N &-'j R &-� Matthew R. Cody Special Council to the City Best, Best & Krieger RECOMMENDED FOR APPROVAL By: Michael L. Garcia Executive Director Community Development Agency Error! Unknown document property name. Exhibit 1 CONSENT BY HOUSING AUTHORITY The Housing Authority of the City of Santa Ana, a public body, corporate and politic, in its capacity as the successor to the housing assets and functions of the Community Redevelopment Agency of the City of Santa Ana, hereby agrees to the termination of the Original Agreement but is otherwise not a party to this Agreement. THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA , a public body, corporate and politic, in its capacity as the successor to the housing assets and functions of the Community Redevelopment Agency of the City of Santa Ana Date: Executive Director ATTEST: Jennifer L. Hall, Clerk of the Board of Commissioners APPROVED AS TO FORM: General Counsel Error! Unknown document property name. Exhibit 1 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 On , before me, , Notary Public, personally appeared , 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. Name: Notary Public Error! Unknown document property name. Exhibit 1 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 On , before me, , Notary Public, personally appeared , 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. Name: Notary Public Error! Unknown document property name. Exhibit 1 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 On , before me, , Notary Public, personally appeared , 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. Name: Notary Public Error! Unknown document property name. Exhibit 1 ATTACHMENT NO. 1 LEGAL DESCRIPTION ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: LOTS 1 THROUGH 10 INCLUSIVE, IN BLOCK 2 OF FRUIT'S ADDITION TO SANTA ANA, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 9, PAGE 91 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. EXCEPT FROM SAID PROPERTY ALL OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS OF EVERY KIND AND CHARACTER, TOGETHER WITH THE RIGHT TO DRILL INTO, THROUGH AND TO USE AND OCCUPY ALL PARTS OF SAID PROPERTY LYING MORE THAN 500 FEET BELOW THE SURFACE THEREOF FOR ANY AND ALL PURPOSES INCIDENTAL TO THE EXPLORATION FOR OR PRODUCTION OF OIL, GAS, HYDROCARBON SUBSTANCES OR MINERALS FROM SAID PROPERTY OR OTHER LANDS, BUT WITHOUT, HOWEVER, ANY RIGHT TO USE EITHER THE SURFACE OF SAID PROPERTY OR ANY PORTION THEREOF WITHIN 500 FEET OF THE SURFACE FOR ANY PURPOSE OR PURPOSES WHATSOEVER TO THE EXTENT SUCH RIGHTS TO DRILL HAVE BEEN EXCEPTED BY THE PARTIES NAMED IN DEEDS, LEASES AND OTHER DOCUMENTS OF RECORD, BY DEED RECORDED FEBRUARY 7, 1986, AS INSTRUMENT NO. 86-53330 OF OFFICIAL RECORDS. APN: 398-323-08 Attachment No. 1 -1- Error! Unknown document property name. Overland, Pacific & Cutler, a Division of TRAI*.NSYSTEMS Garden Court Project RELOCATION PLAN Prepared for: C&C Development Co., LLC 14211 Yorba St., Suite 200 Tustin, CA 92780 (714) 288-7600 Prepared by: Overland, Pacific and Cutler, a division of TranSystems 5000 Airport Plaza Drive, Suite 250 Long Beach, CA 90815 (562) 304-2000 June 27, 2024 TABLE OF CONTENTS INTRODUCTION L PROJECT DESCRIPTION A. REGIONAL LOCATION B. PROJECT SITE LOCATION AND DESCRIPTION II. ASSESSMENT OF RELOCATION NEEDS 5 A. SURVEY METHOD 5 B. OCCUPANT DATA 5 1. Current Occupants 5 2. Income 5 3. Language 5 4. Senior/Handicapped Households 5 5. Permanent Replacement Housing Needs 6 6. Preferred Area to Relocate 6 III. RELOCATION RESOURCES 7 A. TEMPORARY HOUSING NEEDS 7 B. PERMANENT REPLACEMENT HOUSING AVAILABIILTY 7 1. Rental Replacement Housing 7 2. Summary 8 C. RELATED ISSUES 8 1. Concurrent Residential Displacement 8 IV. THE RELOCATION PROGRAM 9 A. ADVISORY ASSISTANCE 9 B. QUALIFIED TENANT RELOCATION BENEFITS 10 C. PERMANENT RELOCATION BENEFITS 11 D. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS 14 E. PROGRAM ASSURANCES AND STANDARDS 15 F. CITY OF SANTA ANA RSO AND JCO 15 G. LAST REORT HOUSING 15 H. RELOCATION TAX CONSEQUENCES 16 I. GRIEVANCE PROCEDURES 16 V. ADMINISTRATIVE PROVISIONS 17 A. NOTICES 17 B. PRIVACY RECORDS 18 C. EVICTION POLICY 18 D. CITIZEN PARTICIPATION 18 E PROJECTED DATE OF DISPLACEMENT 19 F. ESTIMATED RELOCATION COSTS 19 LIST OF TABLES TABLE 1: Available Replacement Rental Housing 7 TABLE 2: Fixed Move Schedule 12 TABLE 3: Example rental Assistance Payment Calculation 13 LIST OF EXHIBITS EXHIBIT A: HUD INCOME LIMITS EXHIBIT B: AVAILABLE REPLACEMENT UNITS EXHIBIT C: INFORMATIONAL STATEMENT EXHIBIT D: NOTICE OF NON -DISPLACEMENT EXHIBIT E: NOTICE OF ELIGIBILITY EXHIBIT F: NOTICE TO VACATE EXHIBIT G: PUBLIC COMMENTS & RESPONSES INTRODUCTION C&C Development Co., LLC (Owner) has authorized the preparation of a Relocation Plan to be undertaken in connection with planning for the proposed rehabilitation of rental housing units located at 300 E. Santa Ana Boulevard, Santa Ana, CA 92701 (Project site) known as Garden Court (Project). The Owner plans to rehabilitate 84 units, including both the building exterior and unit interiors. Improvements will include: Interior Exterior New cabinets Replace building lighting New countertops Replace landscaping New interior lighting Replace playground equipment New HVAC equipment Stucco repairs New doors and frames New paint Replace Appliances Roofing Drywall repairs New windows New flooring throughout New decking Repaint interiors The Project consists of 84 total units: 24 one -bedroom units and 60 two -bedroom units. It is anticipated that nine units will be at 30% area median income (AMI), nine units will be at 50% AMI, 29 units will be at 60% AMI, and 36 units will be at 70% AMI. The remaining unit will be an unrestricted manager's unit. AMI levels are based on the HUD Income Limits as shown in Exhibit A. There will be no loss of units and bedroom counts will remain the same post - renovations. The building has four quadrants, each with 21 units. The Project construction plan proposes that each quadrant will be rehabilitated by itself, resulting in four phases to the Project. Each quadrant will take approximately six months to complete. To renovate the first quadrant, 15 households will be permanently relocated, and a certain number of households will be moved to other Project units temporarily to clear one quadrant. (There are currently six vacant units). Once that quadrant has been rehabilitated, 21 qualified Project households will be moved directly one-time into a newly renovated Project unit, and this process will continue quadrant by quadrant as renovations are completed. When the final quadrant has been completed, any previously displaced qualified tenants will be offered the first right of refusal to return to a Project unit. The Owner anticipates utilizing financing including Tax -Exempt Bonds, a Seller Carryback Loan, a Deferred Developer Fee, Seller Contribution, Income from Operations, and Limited Partner Equity in the form of Federal Tax Credits. Due to the proposed funding sources, the Relocation Plan and the relocation program described within meets the requirements of California Relocation Assistance Law, Government Code Section 7260, et seq. (Law), and the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Community Development as in Title 25, California Code of Regulations Section 6000, et seq. (Guidelines). Overland, Pacific & Cutler, LLC ("OPC"), an experienced relocation consulting firm, has been retained to prepare this Relocation Plan ("Plan") in compliance with regulatory and statutory requirements, to evaluate the present circumstances of affected tenants, identify the permanent housing requirements of the tenants, and to describe the Owner's on -site moves and permanent relocation plans and available resources. As of the date of this Plan, 63 households will move one-time into newly renovated Project units on -site, and 15 households will be permanently relocated. (There will also be a certain number of households who will be moved temporarily into other Project units, but the exact number of households is unknown at this time). The needs and characteristics of the Project residents and the Owner's program to provide assistance to each affected person are general subjects of this Plan. This Plan is organized in five sections: 1. Project description (SECTION I); 2. Assessment of the relocation needs of persons subject to permanent displacement (SECTION II); 3. Assessment of available permanent replacement housing for the Project residents (SECTION III); 4. Description of the Owner's relocation program (SECTION IV); 5. Description of the Owner's Project timeline and budget (SECTION V). 2 I. PROJECT DESCRIPTION A. REGIONAL LOCATION The Project is located in the City of Santa Ana within Orange County. The Project site is immediately accessible from Interstate 5 and State Highways 22 and 55 (Figure 1: Regional Project Location). Surrounding communities include Orange, Tustin, Irvine, Fountain Valley and Garden Grove. s 1 ElmonteAWest Covina On rio Los Angeles,, _ 57 Pomona �rl `�M Ontebeil+o Huntington Park �,Ezo Whittier ewood wn`ey �I Compton orwalkz,,,— Beach Terminal des Island Chino C Chino Hills C State Park YorbazLinda Fullerton ', 4naheirrr ti \ b Fountain Valley10 7hhr- 5�HuntingtonlrUine Beach Nebeac 73r1 li$o Figure 1: Regional Project Location B. PROJECT SITE LOCATION AND DESCRIPTION akTra Eau co 241 �-_Canyon Lake Forest `�!, on Viejo The Project site is located at 300 E. Santa Ana Boulevard, Santa Ana, CA 92701 and its general boundaries include E. Santa Ana Boulevard, N. Spurgeon Street, E. 5th Street and French Street. The site spans 1.44 acres and one parcel improved with one building with 84 units. As of the date of this Plan, 80 units are occupied by tenants, one unit is occupied by an on -site manager, and three units are vacant (Figure 2: Project Site and Figure 3: Project site with addresses). 3 Figure 2: Project site M II. ASSESSMENT OF RELOCATION NEEDS A. SURVEY METHOD To obtain information necessary for the preparation of this Plan, OPC interviewed or attempted to interview the Project residents in March and April 2024. Despite multiple attempts, one household did not respond to multiple interview requests via phone messages, door knocking, cards left and property management outreach. Data on the Project households was also provided to OPC by the Owner in March 2024. For the interviewed households, OPC collected information about the household composition and current circumstances, special needs related to permanent relocation, preferred language, disabilities, gross annual income, and an assessment of personal property to be relocated. B. OCCUPANT DATA 1. Current Occupants As of the date of this Plan, there are 84 units to be rehabbed for the Project of which 78 are currently occupied. Sixty-nine of the households (including the manager) are qualified to remain in a Project unit, and nine households are over -income. However, an additional six households will be permanently displaced to facilitate the construction plan previously described. The Project households range in size from 1-8 individuals and occupy one- and two -bedroom apartment units. The specific households who will be permanently displaced are unknown at this time, but this Relocation Plan will be updated with specific tenant data closer to the funding application in August 2024. 2. Income Information regarding gross household income was provided by the Developer in July 2024. According to income standards for Orange County (Exhibit A) adjusted for family size as published by the United States Department of Housing and Urban Development (HUD), 23 households qualify as Extremely Low Income (30% AMI or below), 25 households qualify as Very Low Income (31% - 50% AMI), 24 households qualify as Low Income (51% -80% AMI), and 6 households are above Low Income (over 80% of AMI). Of the Extremely Low Income households, four currently have section 8 vouchers. The six over -income households presently occupy market rate units. The specific income levels for the households to be permanently displaced will be determined once the 15 households to be relocated are identified. 3. Language The preferred languages for the Project households are English and Spanish. All verbal communication and required written notices will be provided in the language understood by the tenant and a bilingual relocation agent will be provided, as necessary. 4. Senior/Handicapped Households It is unknown at this time how many senior or disabled tenants will be permanently displaced. However, appropriate steps will be taken to accommodate mobility challenges and to provide 5 suitable housing on a first floor or with access to an elevator and an ADA compliant unit when necessary. In addition, all senior and disabled Project tenants will receive extra assistance to make sure their units are move -ready, to move them to their new accommodations on -site or permanent replacement housing off -site and to accommodate any other special needs they may have. 5. Permanent Replacement Housing Needs Replacement housing needs, as expressed in this plan, are defined by the total number of required replacement units and distribution of those units by bedroom size. The projected number of required units by bedroom size is calculated by comparing current data for household size with the Owner's replacement housing occupancy standards. These standards, generally, allow for up to two persons in a studio unit, three persons in a one -bedroom unit, five persons in a two - bedroom unit, seven persons in a three -bedroom unit and nine or more persons in a four -bedroom unit. When determining the comparable size of the replacement unit under the State relocation programs, the number of all household members is taken into consideration regardless of legal presence status. Because the specific 15 households who will be permanently displaced have not yet been identified, based on current household sizes, it is assumed the replacement housing needs may include one-, two-, three- and four -bedroom apartments units. The Project site is within a densely populated mixed -use area with retail shopping, personal services, restaurants, medical facilities, parks, schools, opportunities for employment, public facilities, social services, and public transportation. 6. Preferred Area to Relocate Once the households to be permanently displaced have been identified, they will be interviewed to determine their preferred areas to relocate. no III. RELOCATION RESOURCES A. TEMPORARY HOUSING NEEDS The Owner's planned rehabilitation and scope of work for the unit upgrades will require 21 households every six months over three phases to move directly into renovated units as their new permanent Project units. Initially, a certain number of households will be required to move on -site into other Project units temporarily. Therefore, no off -site temporary housing will be required. B. PERMANENT REPLACEMENT HOUSING NEEDS AND AVAILABILITY Prior to the first phase of construction, 15 households will be required to move off -site as permanent relocations. (Nine of the 15 households are over -income households). Together with the six vacancies plus a certain number of Project households that will have to move to other units on -site, the permanent displacements will create 21 vacant units in one quadrant to allow for the remaining Project households to stay on -site during construction until it is time to permanently move into newly renovated units one quadrant at a time over three phases on a rolling basis. The income -qualified tenants who must permanently relocate off -site will have the first right of refusal to return to a Project unit after construction on the fourth and final quadrant has been completed. For residential housing, a resource survey was conducted to identify available comparable rental units within proximity to the Project site. The following sources were utilized: -- Classified rental listings from local newspapers and For Rent publications -- Internet sources of rental opportunities 1. Residential Rental Housing A replacement housing survey was conducted in May 2024 to look for available one-, two-, three- and four -bedroom apartments for rent in Santa Ana and in proximity to the Project site. This data as of the date of this Plan ultimately located within five miles of the Project site is summarized in Table 1 below and in Exhibit B. Table 1: Availability and Cost of Re lacement Rental Housing # of Bedrooms One Two Three Four # Found 24 24 18 4 Rent Range $1,995 - $2,728 $2,495 - $3,099 $3,200 - $4,299 $3,200 - $4,200 Median Rent $2,245 $2,775 $3,550 $3,975 The available units identified were in residential and mixed -use neighborhoods with access to restaurants, retail stores, medical facilities, social services, opportunities for employment, public transportation, parks, schools and opportunities for employment. The median rent amount shown in the table is among the figures used to make benefit and budget projections for the Plan. This amount is, naturally, subject to change according to the market rates prevailing at the time of displacement. 7 2. Summary Considering the above -described availability of replacement housing resources gathered, it appears there are an adequate number of replacement units for the residential occupants. While adequate replacement resources exist for the tenants, based on survey results of rental opportunities and the tenants' current rent, some tenants may have an increase in monthly rent. Possible increases, if any, will be met through the Owner's obligation under the relocation regulations, including Last Resort Housing (LHR) requirements. (See Section IV, E). C. RELATED ISSUES 1. Concurrent Residential Displacement There are no known public projects anticipated in the Project area that will cause significant displacements during the timeframe of anticipated initiation of Project displacements. No residential displacee will be required to move without both adequate notice and access to available, comparable, affordable, decent, safe and sanitary housing. IV. THE RELOCATION PROGRAM The Owner's Relocation Program is designed to be responsive to unique Project circumstances, emphasize maintaining personal contact with all affected individuals, and consistently apply all criteria to formulate eligibility and benefit determinations and conform to all applicable requirements. The Owner will provide tenants the assistance, rights and benefits required under the standards and provisions set forth in the State law and regulations and all other applicable regulations and requirements. The relocation program will provide both advisory and financial assistance. Every effort will be made to facilitate relocation arrangements and minimize hardships for the tenants. The Owner will retain OPC, a multi-lingual consulting firm, to administer the Relocation Program for the tenants. OPC has worked on more than 6,000 public acquisition and relocation projects for more than 46 years. Experienced Owner staff will monitor the performance of OPC and be responsible to approve or disapprove OPC recommendations concerning eligibility and benefit determinations per applicable program requirements. OPC staff will be available to assist any relocated person and/or household with questions about the relocation process, relocation counseling and/or assistance in relocating. Relocation staff can be contacted at (800) 400-7356 from 8:00 am to 5:00 pm Monday through Friday and are available via voicemail and/or cellular phones after hours. The Relocation Office is located at 5000 Airport Plaza Drive, Suite 250, Long Beach, CA 90815. Relocation staff will assist tenants at hours convenient for the tenants and will go to the tenants rather than requiring them to come to an OPC office. The relocation program consists of two principal constituents: advisory assistance and financial assistance (Relocation Benefits). A. ADVISORY ASSISTANCE Advisory assistance services are intended to inform the tenants about the Owner's relocation program, help in the process of securing appropriate permanent replacement accommodations, facilitate claims processing, maintain a communication link with the Owner and coordinate the involvement of outside service providers. To follow through on the advisory assistance component of the relocation program and assure that the Owner meets their obligations under the law, OPC relocation staff will perform the following functions: 1. Distribute appropriate written information concerning the Owner's relocation program (Exhibit C); 2. Inform the eligible households of the nature of, and procedures for, obtaining available relocation benefits; 3. Determine the needs of each household eligible for assistance (including interviews with the persons to be permanently displaced wherein they may indicate special accommodation requests and/or special needs related to permanent relocation); X 4. Provide tenants with access to available decent safe and sanitary permanent housing within a reasonable time prior to the moves; 5. Provide transportation to the tenants and their personal property, if necessary, to the permanent accommodations; 6. Inspect permanent housing to assure it meets decent, safe and sanitary standards as described in the CRAL; 7. Assist eligible occupants in the preparation and submission of relocation assistance claims; 8. Provide additional reasonable services necessary to successfully relocate occupants; 9. Make benefit determinations and payments in accordance with applicable laws and the Owner's adopted relocation guidelines; 10. Provide each qualified household with a minimum of 30 days written notice to relocate on -site and each household to be permanently displaced off -site with at least 90 days written notice to vacate; 11. Inform all tenants of the Owner's policies in writing and verbally with regard to eviction and property management; 12. Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the Owner's decisions with respect to relocation assistance; and 13. Provide assistance that does not result in different or separate treatment based on or due to an individual's sex, marital status, race, color, religion, ancestry, national origin, physical handicap, sexual orientation, and domestic partnership status. Adequate written and verbal notice and access to affordable decent, safe and sanitary housing will be provided with all requests made to tenants to vacate. Personal contact via phone, text, email, mail and in person, as applicable, will be maintained with all households during the relocation process. B. QUALIFIED TENANT RELOCATION BENEFITS Specific eligibility requirements and benefit plans will be detailed on an individual basis with all residents. In the course of the interview and follow-up visits, each household will be counseled as to available options and the consequences of any choice with respect to financial assistance. The Owner pledges to appropriate special care for households requiring additional assistance in the event of unforeseen circumstances. Relocation assistance information and counseling will be provided in the primary language of the displaced occupants to ensure that all residents obtain a complete understanding of the rehabilitation program and eligible accommodations and services provided. Addition translation services will be provided upon request. 10 Each time the renovations of one quadrant have been completed, 21 households from a different quadrant will move directly into the newly renovated units as their permanent Project homes until all quadrants have been completed and all Project residents have been moved one-way into renovated units. As stated previously, initially, a certain number of households will need to move into other Project units temporarily to clear one entire quadrant to begin the construction within the first quadrant. Those households will need to move twice on -site. Residents' furniture and personal property will be moved to their new permanent Project unit by a professional moving company, or they may elect to claim a Fixed Moving Payment based on the most current Federal Fixed move Payment Schedule (current schedule shown on Page 12). Packing and unpacking services will also be offered and provided to all residents at no cost to the residents, if requested. If a household elects to opt out of the packing/unpacking option, packing materials will be provided to residents 2-4 weeks prior to move out days. Residents will be given at least 30 days' written notice to vacate and move into their temporary and/or new permanent Project units, and advisory services will be provided throughout the relocation process. Relocation staff will provide all required relocation assistance to the households who will move one-way into newly renovated units. The Owner will directly pay the selected moving company to pack/unpack and move the tenants' personal property and will reimburse tenants for any utility transfer or one-time hook-up fees. Therefore, no tenant should incur any out-of-pocket costs associated with the relocations on -site. However, in the event a tenant does incur a cost related to the relocation on -site, the Owner will reimburse all eligible, reasonable and necessary costs. C. PERMANENT RELOCATION BENEFITS Permanent relocation benefits will be provided to non -qualified tenants and tenants required to move permanently to create an empty quadrant in accordance with the provisions of the State Relocation Law and Guidelines, and the Owner rules, regulations and procedures pertaining thereto. Benefits will be paid to eligible displaced persons upon submission of required claim forms and documentation in accordance with the Owner's normal administrative procedures. The Owner will process advance payment requests to mitigate hardships for tenants who do not have access to sufficient funds to pay move -in costs such as first month's rent and/or security deposits. Approved requests will be processed expeditiously to help avoid the loss of desirable, appropriate replacement housing. Tenants who will be permanently displaced will be eligible for the following relocation assistance: 1. Residential Moving Expense Payments All eligible residential occupants to be permanently relocated from the Project site will be eligible to receive a payment for moving expenses. Moving expense payments will be made based upon the actual cost of a professional move, or a fixed payment based on a room - count schedule, or a combination of both. a. Actual Cost (Professional Move) 11 Displacees may elect to have a licensed professional mover perform the move. The actual cost of the moving services, based on at least two acceptable bids, will be compensated by the Owner in the form of a direct payment to the moving company upon presentation of an invoice. Transportation costs are limited to a distance of 50 miles in either case. In addition to the actual move, costs associated with utility re -connections (i.e., gas, water, electricity, telephone, and cable, if any), are eligible for reimbursement. b. Fixed Payment (based on Room Count Schedule) An occupant may elect to receive a fixed payment for moving expenses which is based on the number of rooms occupied in the displacement dwelling or ancillary structures on the property. In this case, the person to be relocated takes full responsibility for the move. The fixed payment includes all utility connections as described in (a), above. The current schedule for fixed moving payments is set forth in Table 2 following: TABLE 2: Schedule of Fixed Moving Payments (effective as of August 2021) Unfurnished Dwelling One room $780 Two rooms $1,000 Three rooms $1,250 Four rooms $1,475 Five rooms $1,790 Six rooms $2,065 Seven rooms $2,380 Eight rooms $2,690 each additional room $285 Furnished Dwelling First Room $510 Each additional room $100 2. Rental Assistance for Tenant Occupants Who Choose to Rent To be eligible to receive the rental assistance benefits, the displaced tenant household has to rent or purchase and occupy a decent, safe, and sanitary replacement dwelling within one year from the date they move from the displacement dwelling. Except in the case of Last Resort Housing situations (Section E, Page 15), payments to households will be payable over a 42-month period and limited to a total maximum payment of $5,250 as stated under the Guidelines. (More information regarding rental assistance and 12 Last Resort Housing will be provided in detail in the informational brochure (Exhibit C) that will be provided to each household at the initiation of relocation activities.) Table 3 below portrays an example of a benefits determination under the State relocation program: ABLE 3: Example Computation of Rental Assistance Payments 1. Old Rent $650 Old Rent and Utilities or 2. Ability to Pay $700 30% Adjusted, Monthly, Gross Household Income (State)* 3. Lesser of lines 1 or 2 $650 Base Monthly Rental Subtracted From: 4. Actual New Rent $750 Actual New Rent and Utilities or 5. Comparable Rent $775 Determined by District (includes utilities) 6. Lesser of lines 4 or 5 $750 7. Yields Monthly Need: $100 Subtract line 3 from line 6 Rental Assistance $4,200 Multiply line 7 by 42 months *Gross adjusted income means the total amount of annual income of a household less the following: (1) a deduction for each dependent in excess of three; (2) a deduction of 10% of total income for the elderly or disabled head of household; (3) a deduction for recurring extraordinary medical expenses defined for this purpose to mean medical expenses in excess of 3% of total income, where not compensated for, or covered by insurance or other sources; (4) a deduction of reasonable amounts paid for the care of children or sick or incapacitate family members when determined to be necessary to employment of head of household or spouse, except that the amount shall not exceed the amount of income received by the person who would not otherwise be able to seek employment in the absence of such care. Rental Assistance payment amounts are equal to 42 times the difference between the base monthly rent and the lesser of- (i) The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling; or (ii) The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person. The base monthly rent for the displacement dwelling is the lesser of- (i) The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement, as determined by the Owner; or 13 (ii) Thirty percent (30%) of the displaced person's average, monthly, adjusted gross household income. If a tenant refuses to provide appropriate evidence of income or is a dependent, the base monthly rent shall be determined to be the average monthly cost for rent and utilities at the displacement dwelling; or (iii) The total of the amount designated for shelter and utilities if receiving a welfare assistance payment from a program that designated the amounts for shelter and utilities 3. Downpayment Assistance to Tenants Who Choose to Purchase The displaced households may opt to apply the entire benefit amount for which they are eligible toward the purchase of a replacement unit. Residential tenants, who are otherwise eligible to receive the Rental Assistance Payment described above, may choose to receive a lump sum payment equal to forty-two months of rental subsidy (including Last Resort Housing benefits) to purchase a new home. A displaced household, who chooses to utilize up to the full amount of their rental assistance eligibility (including any Last Resort benefits) to purchase a home, will have the funds deposited in an open escrow account, provided that the entire amount is used for the downpayment and eligible, incidental costs associated with the purchase of a decent, safe, and sanitary replacement home. A provision shall be made in the escrow arrangements for the prompt return of Owner funds, in the event escrow should fail to close within a reasonable period of time. Final determination about the type of relocation benefits and assistance for which the household is eligible will be determined upon verification of the household's occupants, length of occupancy and income. To be eligible to receive the rental assistance benefits, the displaced tenant household has to rent or purchase and occupy a decent, safe, and sanitary replacement dwelling within one year from the date they move from the Project site. D. GENERAL INFORMATION ON PAYMENT OF RELOCATION BENEFITS Claims and supporting documentation for relocation benefits must be filed with the Owner within 30 days from the date the qualified tenant moves to a new unit. Permanently displaced households must file claims for relocation benefits within 18 months of moving from the Project site. The procedure for the preparation and filing of claims and the processing and delivery of payments will be as follows: 1) Tenants(s) will provide all necessary documentation to substantiate eligibility for assistance; 2) Relocation staff will follow up with all temporarily displaced households within one week of return to the permanent unit to remind them of the opportunity to file a claim and will follow up with permanently displaced households within six months of the expiration of the claims period; 14 3) Assistance amounts will be determined in accordance with the provisions of the applicable relocation law and guidelines; 4) Required claim forms will be prepared by relocation personnel and reviewed with tenants. Signed claims and supporting documentation will be submitted by relocation personnel to the Owner; 5) The Owner will review all claims for payment and determine whether to approve, deny, or seek additional information; 6) Final payments to residential permanent displacees will be issued after confirmation that the Project premises have been completely vacated, and actual residency at the replacement unit is verified; 7) All correspondence, back-up documentation, claims, receipts of payment and notices will be maintained in the relocation case file. E. PROGRAM ASSURANCES AND STANDARDS Adequate funds are available to relocate the Project households. Relocation assistance services will be provided to ensure that displacement does not result in different or separate treatment of households based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability or any other basis protected by the federal Fair Housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, the Unruh Act, Title VIII of the Civil Rights Act of 1968, as well as any other arbitrary or unlawful discrimination. F. CITY OF SANTA ANA RSO AND JCO To the extent that the new regulatory agreement restricting 100 percent of the units, other than the manager's unit, has not yet been recorded, Section 8-3120.b.2.D of the City of Santa Ana Rent Stabilization and Just Cause Eviction Ordinance shall apply. However, the Project is eligible for an exemption per Division 2.b.D, intent to demolish or substantially remodel the property. G. LAST RESORT HOUSING Based on housing cost and income data derived from the occupants and costs of replacement housing resources, it is anticipated that "comparable replacement housing" may not be available as required for the non -qualified households. Specifically, for renters, when the computed replacement housing assistance eligibility exceeds $5,250 or replacement dwelling monthly rental costs (including utilities and other reasonable recurring expenses) exceeds 30% of the person's average monthly income, Last Resort Housing must be provided. Therefore, if the Project is to go forward, the Owner will authorize funds to provide housing of last resort. In this situation, funds will be used to make payments in excess of the monetary limit specified in the statute ($5,250); hence, satisfying the requirement that "comparable replacement housing" is available. A displaced tenant household will be entitled to consideration for supplementary benefits in the form of Last Resort Housing assistance when the computed replacement housing assistance eligibility exceeds $5,250 or replacement dwelling monthly rental costs (including utilities and other reasonable recurring expenses) exceed 30% of the person's average monthly income (financial means) or when a tenant fails to meet the 90-day occupancy requirement and comparable 15 replacement rental housing is not available within the displaced person's financial means. Calculations of Last Resort rental assistance benefits for tenants who fail to meet the 90-day occupancy requirement will be based solely on household income. Non-90-day qualifiers must meet basic eligibility requirements applied to all other displacees. Recipients of Last Resort rental assistance, who intend to purchase rather than re -rent replacement housing, will have the right to request a lump sum payment of all benefits in the form of downpayment assistance. Tenant households receiving periodic payments will have the option to request a lump sum payment of remaining benefits to assist with the purchase of a decent, safe and sanitary dwelling. H. RELOCATION TAX CONSEQUENCES In general, relocation payments are not considered income for the purpose of Division 2 of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986 (Title 26, U. S. Code), or for the purpose of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act (42 U. S. Code 301 et seq.) or the Personal Income Tax Law, Part 10 (commencing with Section 17001) of the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part II (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. The above statement on tax consequences is not intended as tax advice by the Owner or OPC. Tenants are responsible for consulting with their own tax advisors concerning the tax consequences of relocation payments. I. GRIEVANCE PROCEDURES The Owner's Relocation Appeals process will be consistent with the provisions within the Guidelines. The right to appeal shall be described in all relocation explanatory material distributed to tenants via mail or in -person visits. Tenants will have the right to ask for administrative review when they believe themselves aggrieved by a determination as to eligibility, payment amounts, and the failure to provide comparable temporary housing or the Owner's property management practices Requests for administrative review and informal hearings will be directed to the Owner's Principal, Todd Cottle, who can be reached at todd@c-cdev.com or (714) 288-7600. All requests for review will receive written responses from the Owner within three weeks of their receipt. If an informal appeal is denied, appellants will be entitled to file a written request for a formal hearing before an impartial and independent hearing officer. The Owner will provide interpretation services for appeals hearings, if requested by the household. The appellant does not have to exhaust administrative remedies first; the appeal/grievance can either go directly to HCD or directly to the Court. Any person and/or organization directly affected by the relocation plan may petition the Department of Housing and Community Development (HCD), located at 2020 West El Camino Avenue, Sacramento, CA 95833 to review the relocation plan or HCD can be contacted at 916-263-2769. 16 More detail concerning the appeals process will be provided upon request. Appellants will retain their appeal rights for up to 18 months following the date of displacement from the Project premises or receipt of final payment for relocation benefits, whichever is later. 17 V. ADMINISTRATIVE PROVISIONS A. NOTICES Each notice, which the Owner is required to provide to a Project occupant, shall be personally delivered or sent by certified or registered first-class mail, return receipt requested and documented in the case file. Each notice will be written in plain, understandable language. Persons who are unable to read and understand any notice will be provided with appropriate translation and counseling. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. There are four principal notices: 1) Informational Statement 2) Notice of Non -Displacement (qualified tenants) 2). Notice of Eligibility (tenants to be permanently displaced) 3) Notice to Vacate A Notice of Non -Displacement (NOND) will be distributed to each qualified tenant household (Exhibit D). The NOND to the household contains a determination of eligibility to remain in a Project unit post -rehab. The notice also describes the benefits for which the household is eligible. The NOND will be issued to the qualified households once Project funding has been secured. A Notice of Relocation Eligibility (NOE) will be distributed to each household to be permanently displaced (Exhibit E). The NOE to the tenants contains a determination of eligibility for relocation assistance under specific relocation programs and a computation of maximum entitlements based on information provided by the affected household and the analysis of comparable replacement properties identified by relocation staff. The households will receive NOES as soon as the Project funding is approved, and all of the household information requested has been submitted by the households. No resident will be asked to temporarily or permanently move to another on -site Project unit without having received at least 30 days' advance written notice of the earliest date by which the move will be necessary. The Relocation Notice or Vacate Notice will state a specific date by which the occupants are required to move and will provide the address of the new Project unit for the household (Exhibit F). No household will be required to move permanently from the Project without having received at least 90 days' advance written notice of the earliest date by which the move will be necessary (Exhibit F). A date -specific vacate notice will not be issued to any tenants before comparable replacement dwellings have been made available to them and the Relocation Plan has been approved by the local governing body. In addition to the four principal notices, Owner staff will issue a timely written notification in the form of a Reminder Notice, which discusses the possible loss of rights and sets the expiration date for the loss of benefits to those persons who: 1) are eligible for monetary benefits, 2) have moved from the property, and 3) have not filed a claim for benefits. B. PRIVACY OF RECORDS All information obtained from tenants is considered confidential and will not be shared without the consent of the tenant or the Owner. Owner staff will comply with regulations concerning the safeguarding of relocation files and their contents. C. EVICTION POLICY 1. Eviction may cause the forfeiture of a tenant's right to relocation assistance or benefits. Relocation records will be documented to reflect the specific circumstances surrounding any eviction action. 2. Eviction may be undertaken for one, or more of the following reasons: (a) Failure to pay rent, except in those cases where the failure to pay is due to the owner's failure to keep the premises in habitable condition; is the result of harassment or retaliatory action; or, is the result of discontinuation, or a substantial interruption of services; (b) Performance of a dangerous, and/or illegal act in the unit; (c) A material breach of the rental agreement, and failure upon notification to correct said breach within 30 days of Notice; (d) Maintenance of a nuisance, and failure to abate such nuisance upon notification within a reasonable time following Notice; (e) Failure to accept permanent accommodations and permanently vacate the unit when requested; or (f) A requirement under State, or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the Owner. D. RESIDENT PARTICIPATION The Owner held a resident meeting with the Project households on March 13, 2024 to give residents information on the construction plans, timeline and relocation process. As the process for considering the Project moves forward, the Owner will observe the following protocol: 1. Provide affected tenants with full and timely access to documents relevant to the relocation program; 2. Encourage meaningful participation in reviewing the relocation plan and monitoring the relocation assistance program; 3. Provide technical assistance necessary to interpret elements of the Relocation Plan and other pertinent materials (the Project households will be provided with access to a copy of the Relocation Plan for review and comment once the draft Plan has been completed); 4. Issue a general notice concerning the availability of the Plan for public review, as required, 30 days prior to its proposed approval (the Project households will be provided an Advisory Notice regarding the comment period with a copy of the Relocation Plan); and 5. Include written or oral comments concerning the Plan as an attachment (Exhibit G) when it is forwarded to the City of Santa Ana for approval. 19 E. PROJECTED DATE OF DISPLACEMENT Construction in the units is expected to begin in early 2025. The Owner anticipates issuing Notices to Temporarily Vacate to the tenants to temporarily relocate in early December 2024 with tenant temporary moves on -site to begin in March 2025. Construction is expected to be completed in March 2027. For the households who will be required to move permanently, date specific Notices to Vacate are anticipated to be issued in December 2024, at least 90 days in advance of the date they must vacate. F. ESTIMATED RELOCATION COSTS The total budget estimate for relocation -related payments to tenants and vendors for this Project is approximately $1,040,000. Once the specific households to be permanently displaced are identified, this estimate will be updated. The estimated costs will include rental assistance payment (permanent displacements only) and move assistance payments (all households). If the Project is implemented, and circumstances arise that should change either the number of residential occupants, or the nature of their activity, the Owner will authorize any additional funds that may need to be appropriated. The Owner pledges to appropriate, on a timely basis, the funds necessary to ensure the successful completion of the Project. 20 EXHIBIT A HUD INCOME LIMITS - ORANGE COUNTY The following figures are approved by the U. S. Department of Housing and Urban Development (HUD) for use in the County of Orange to define and determine housing eligibility by income level. Area Median Income: $129,000 Family Size Extremely Low Very Low Low 1 Person 33,150 55,250 88,400 2 Person 37,900 63,100 101,000 3 Person 42,650 71,050 113,650 4 Person 47,350 78,900 126,250 5 Person 51,150 85,250 136,350 6 Person 54,950 91,550 146,450 7 Person 58,750 97,850 156,550 8 Person 62,550 104,150 166,650 Figures are per the Department of Housing and Urban Development (California), updated in April 2024. EXHIBIT B AVAILABLE REPLACEMENT UNITS (Will be updated closer to August application date) EXHIBIT C INFORMATIONAL STATEMENT Relocation Assistance Informational Statement for Families and Individuals (CA State) Owner: C&C Development Co., LLC Project Name: Garden Court Owner Representative: Overland, Pacific & Cutler, LLC, a division of TranSystems 5000 Airport Plaza Drive, Suite 250 Long Beach, CA 90815 Phone: (800) 400-7356 Informational Statement Content: 1. General Information 2. Assistance In Locating A Replacement Dwelling 3. Moving Benefits 4. Replacement Housing Payment - Tenants And Certain Others 5. Section 8 Tenants 6. Replacement Housing Payment — Homeowners 7. Qualification For And Filing Of Relocation Claims 8. Last Resort Housing Assistance 9. Rental Agreement 10. Evictions 11. Appeal Procedures — Grievance 12. Tax Status of Relocation Benefits 13. Non -Discrimination and Fair Housing 14. Additional Information And Assistance Available Spanish speaking agents are available. Si necesita esta informacion en espanol, por favor (lame a su agente. Informational Statement for Families and Individuals (CA State) 1. GENERAL INFORMATION The dwelling in which you now live is in a project area to be improved by, or financed through, the Owner using state and/or local funds. If and when the project proceeds, and it is necessary for you to move from your dwelling, you may be eligible for certain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this information, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under state law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you don't provide it, you may not receive the benefits, or it may take longer to pay you. We suggest you save this informational statement for reference. The Owner has retained the professional firm of Overland, Pacific & Cutler, LLC (OPQ, a division of TranSystems to provide relocation assistance to you. The firm is available to explain the program and benefits. Their address and telephone number are listed on the cover. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE YOUR DWELLING. However, if you desire to move sooner than required, you must contact your agent at OPC, so you will not jeopardize any benefits. This is a general informational brochure only and is not intended to give a detailed description of either the law or regulations pertaining to the Owner's relocation assistance program. Please continue to pay your rent to the Owner, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. Once the Owner acquires the property, you will also be required to pay rent to the Owner. 2. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING The Owner, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units. You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation agent will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe and sanitary housing requirements. A decent, safe and sanitary housing unit provides adequate space for its occupants, proper weatherproofing and sound heating, electrical and plumbing systems. Your new dwelling must pass inspection before relocation assistance payments can be authorized. 3. MOVING BENEFITS If you must move as a result of displacement by the Owner, you will receive a payment to assist in moving your personal property. The actual, reasonable and necessary expenses for moving your household belongings may be determined based on the following methods: • A Fixed Moving Payment based on the number of rooms you occupy (see below); or • A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or • A combination of both (in some cases). For example, you may choose a Self -Move, receiving a payment based on the Fixed Residential Moving Cost Schedule shown below, plus contract with a professional mover to transport your grand piano and /or other items that require special handling. In this case, there may be an adjustment in the number of rooms which qualify under the Fixed Residential Moving Cost Schedule. A. Fixed Moving Payment (Self -Move) A Fixed Moving Payment is based upon the number of rooms you occupy and whether or not you own your own furniture. The payment is based upon a schedule approved by the Owner, and ranges, for example, from $510.00 for one furnished room to $2,690.00 for eight rooms in an unfurnished dwelling. (For details see the table). Your relocation agent will inform you of the amount you are eligible to receive, if you choose this type of payment. If you select a fixed payment, you will be responsible for arranging for your own move, and the Owner will assume no liability for any loss or damage of your personal property. A fixed payment also includes utility hook-ups and other related moving fees. Fixed Moving Schedule CALIFORNIA Effective 2021 Occupant Owns Furniture: 1 room $780 2 rooms $1,000 3 rooms $1,250 4 rooms $1,475 5 rooms $1,790 6 rooms $2,065 7 rooms $2,380 8 rooms $2,690 Each additional room $285 Occupant does NOT Own Furniture: 1 room $510 Each additional room $100 B. Actual Moving Expense (Professional Move) If you wish to engage the services of a licensed commercial mover and have the Owner pay the bill, you may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation agent will inform you of the number of competitive moving bids (if any) which may be required, and assist you in developing a "mover" scope of services for Owner approval. 4. REPLACEMENT HOUSING PAYMENT - TENANTS AND CERTAIN OTHERS You may be eligible for a payment of up to $5,250.00 to assist you in renting or purchasing a comparable replacement dwelling. In order to qualify, you must either be a tenant who has occupied the present dwelling for at least 90 days prior to the initiation of negotiations or an owner who has occupied the present dwelling between 90 and 180 days prior to the initiation of negotiations. A. Rental Assistance. If you qualify, and wish to rent your replacement dwelling, your maximum rental assistance benefits will be based upon the difference over a forty-two (42) month period between the rent you must pay for a comparable replacement dwelling and the lesser of your current rent and estimated utilities or thirty percent (30%) of your gross monthly household income. You will be required to provide your relocation agent with monthly rent and household income verification prior to the determination of your eligibility for this payment. -OR- B. Down -payment Assistance. If you qualify and wish to purchase a home as a replacement dwelling, you can apply up to the total amount of your rental assistance payment towards the down -payment and non -recurring incidental expenses. Your relocation agent will clarify procedures necessary to apply for this payment. Where a tenant is sharing a dwelling with an owner -occupant and paying the owner -occupant rent for the privilege, the tenant shall not be entitled to more than one-half of the rental assistance otherwise payable. S. SECTION 8 TENANTS When you do move, you may be eligible to transfer your Section 8 eligibility to a replacement site. In such cases, a comparable replacement dwelling will be determined based on your family composition at the time of displacement and the current housing program criteria. This may not be the size of the unit you currently occupy. Your relocation agent will provide counseling and other advisory services along with moving benefits. 6. REPLACEMENT HOUSING PAYMENT - HOMEOWNERS A. If you own and occupy a dwelling to be purchased by the Owner for at least 180 days prior to the initiation of negotiations, you may be eligible to receive a payment of up to $22,500.00 to assist you in purchasing a comparable replacement unit. This payment is intended to cover the following items: 1. Purchase Price Differential - An amount which, when added to the amount for which the Owner purchased your property, equals the lesser of the actual cost of your replacement dwelling; or the amount determined by the Owner as necessary to purchase a comparable replacement dwelling. Your relocation agent will explain both methods to you. 2. Mortgage Interest Differential - The amount which covers the increased interest costs, if any, required to finance a replacement dwelling. Your relocation agent will explain limiting conditions. 3. Incidental Expenses - Those one time incidental costs related to purchasing a replacement unit, such as escrow fees, recording fees, and credit report fees. Recurring expenses such as prepaid taxes and insurance premiums are not compensable. B. Rental Assistance Option - If you are an owner -occupant and choose to rent rather than purchase a replacement dwelling, you may be eligible for a rental assistance payment of up to the amount that you could have received under the Purchase Price Differential, explained above. The payment will be based on the difference between an economic rent of the dwelling you occupy and the rent you must pay for a comparable replacement dwelling. If you receive a rental assistance payment, as described above, and later decide to purchase a replacement dwelling, you may apply for a payment equal to the amount you would have received if you had initially purchased a comparable replacement dwelling, less the amount you have already received as a rental assistance payment. 7. QUALIFICATION FOR, AND FILING OF, RELOCATION CLAIMS To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the following: • For a tenant, the date you move from the displacement dwelling. • For an owner -occupant, the latter of: a. The date you receive final payment for the displacement dwelling, or, in the case of condemnation, the date the full amount of estimated just compensation is deposited in court,: or b. The date you move from the displacement dwelling. All claims for relocation benefits must be filed with the Owner within eighteen (18) months from the date on which you receive final payment for your property, or the date on which you move, whichever is later. 8. LAST RESORT HOUSING ASSISTANCE If comparable replacement dwellings are not available when you are required to move, or if replacement housing is not available within the monetary limits described above, the Owner will provide Last Resort Housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last Resort Housing assistance is based on the individual circumstances of the displaced person. Your relocation agent will explain the process for determining whether or not you qualify for Last Resort assistance. If you are a tenant, and you choose to purchase rather than rent a comparable replacement dwelling, the entire amount of your rental assistance and Last Resort eligibility must be applied toward the down -payment and eligible incidental expenses of the home you intend to purchase. 9. RENTAL AGREEMENT As a result of the Owner's action to purchase the property where you live, you may become a tenant of the Owner. If this occurs, you will be asked to sign a rental agreement which will specify the monthly rent to be paid, when rent payments are due, where they are to be paid and other pertinent information. 10. EVICTIONS Any person, who occupies the real property and is not in unlawful occupancy, is presumed to be entitled to relocation benefits. Except for the causes of eviction set forth below, no person lawfully occupying property to be purchased by the Agency will be required to move without having been provided with at least 90 days written notice from the Agency. Eviction will be undertaken only in the event of one or more of the following reasons: • Failure to pay rent; except in those cases where the failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of discontinuation or substantial interruption of services; • Performance of dangerous illegal act in the unit; • Material breach of the rental agreement and failure to correct breach within the legally prescribed notice period; • Maintenance of a nuisance and failure to abate within a reasonable time following notice; • Refusal to accept one of a reasonable number of offers of replacement dwellings; or • The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of the public entity. 11. APPEAL PROCEDURES - GRIEVANCE Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Owner's Relocation Assistance Program may have the appeal application reviewed by the Owner in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Owner. 12. TAX STATUS OF RELOCATION BENEFITS California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. No federal dollars are anticipated for this project. Therefore, federal regulations may not apply and the IRS may consider relocation payments as income. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax -related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein) 13. NON-DISCRIMINATION AND FAIR HOUSING No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under the Owner's relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti -discrimination and fair housing laws. You may file a complaint if you believe you have been subjected to discrimination. For details contact the Owner. 14. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process, please do not hesitate to contact your relocation agent at OPC. EXHIBIT D NOTICE OF NONDISPLACEMENT (Qualified households) Notice of Non -Displacement «DATE>> «HEAD -OF -HOUSEHOLD» and All Other Occupants 300 S. Santa Ana Boulevard, Unit Santa Ana, CA 92701 Dear Occupants: C&C Development Co., LLC (Owner) is interested in rehabilitating the property you currently occupy at 300 S. Santa Ana Boulevard, Santa Ana, CA 92701 as part of the proposed Garden Court Project ("Project"). This notice is to inform you of your rights under State law. If the Owner moves forward with the Project, and you are required to move to a different Project unit, you will be eligible for relocation assistance under California Relocation Assistance Law, Government Code Section 7260, et seq. (Law), and the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Community Development as in Title 25, California Code of Regulations Section 6000, et seq. (Guidelines). However, you do not have to move now. This is not a notice to vacate the premises or a notice of relocation eligibility. This is a notice of non -displacement. You will not be required to move permanently as a result of the rehabilitation. This notice guarantees you the following: The Owner will pay for all eligible costs related to moving expenses, including the cost of moving to a newly renovated unit on -site and utility transfer fees. 2. The unit will be decent, safe and sanitary, and all other conditions of the move will be reasonable. 3. Upon completion of the rehabilitation, you will be able to lease and occupy a Project unit complex under reasonable terms and conditions. 4. You will have no less than 30 days' notice to vacate your unit. Since you will have the opportunity to occupy a newly rehabilitated apartment, and you are not being required to permanently vacate, we urge you not to move and to remain a tenant in good standing. You must continue to comply with the terms and conditions of your current lease. You should continue to pay your monthly rent to your landlord, because failure to pay rent and meet your obligations as a tenant may be cause for eviction and loss of relocation assistance. You are urged not to move or sign any agreement to purchase or lease a unit before receiving formal notice of eligibility for relocation assistance. If you move or are evicted before receiving such notice, you will not be eligible to receive relocation assistance. Please contact us before you make any moving plans. <<CONSULTANT NAME>> has been hired by the Owner to assist Project residents throughout the relocation process. Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Owner's Relocation Assistance Program may have the appeal application reviewed by the Owner in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Owner. Again, this is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the Owner decides not to move forward with the Project, you will be notified in writing. If you have any questions about this or any other relocation issues, please contact <<NAME>> at <<NUMBER>>. Sincerely, <<NAME>> <<TITLE>> <<COMPANY NAME>> <<ADDRESS>> <<ADDRESS>> Received by X Recipient's Signature Delivered on/by: / Posted on/by: / Mailed/receipt received on: / Date EXHIBIT E NOTICE OF ELIGIBILITY Notice of Eligibility <<DATE>> <<NAME>> 300S. Santa Ana Boulevard, Unit Santa Ana, CA 92701 Dear <<NAME>>: C&C Development Co., LLC (the Owner) is proceeding with the project known as the Garden Court Project located at 300 S. Santa Ana Boulevard, Santa Ana, CA 92701. You will not be required to move without at least 90 days' advance written notice of the day by which you must vacate. However, you can contact us at any time for assistance with your move and to receive the benefits for which you are eligible. This is a notice of eligibility for relocation assistance. You are eligible for relocation assistance and benefits under the Owner's Relocation Assistance Program. When you do move, you will be eligible for assistance per the requirements of California Relocation Assistance Law and the California Code of Regulations Title 25, Division 1, Chapter 6 (Title 25). Additional information about your benefits was previously provided to you in the Informational Statement. You are eligible to receive the following benefits: 1. RELOCATION ADVISORY ASSISTANCE provided by Overland, Pacific & Cutler, LLC (TranSystems), a professional firm hired by the Owner to provide relocation assistance to you, such as referrals to replacement housing and help with filing for benefits. 2. MOVING EXPENSES: You will receive a payment to assist in moving your personal property. You may select one of the following payments: A. A Fixed Moving Payment based on the number of rooms you occupy (from Informational Statement). Your entitlement under this option for _ rooms is $ ; or B. A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or C. A combination of both (in some cases). 3. REPLACEMENT HOUSING ASSISTANCE: You are eligible for a replacement housing payment to rent or purchase a replacement home. The payment will be based on several factors, including the cost of a "comparable replacement dwelling" and your average household income. If you rent replacement housing, you may file a claim for a RENTAL ASSISTANCE payment, equal to the difference between the monthly rent and utilities necessary to rent a comparable replacement dwelling (as determined by the Owner) and the base monthly rent, multiplied by 42 months. A study was completed to determine the cost of comparable replacement housing in proximity to where you live. The study indicated that the comparable available housing has a monthly rent and estimated utilities of $ (rent of $ and utilities of $ ). Base monthly rent is defined as the lesser of: (1) $ , which represents the average monthly rent ($ ) and average monthly utilities ($ ) at your displacement dwelling (if you are paying no rent, the amount is based on the economic rental value of your dwelling); or (2) $ , which represents thirty (30) percent of your gross monthly adjusted household income (If "N/A", income was not used in the calculation because it has been determined the income information provided was insufficient evidence of income.) Based on the above, your base monthly rent amount is $ and your maximum rental assistance payment is calculated below: Maximum Rental Assistance Payment Calculation 1 Comparable Dwelling Cost $ 2 Base Monthly Rent $ 3 Monthly Difference (Line 1 minus Line 2) $ 4 Maximum payment (difference times 42 months) $ Your actual payment depends on the cost of the replacement dwelling you decide to rent. If you rent and occupy a replacement dwelling that rents for less than the comparable dwelling, your rental assistance payment will be based on the actual cost of your replacement dwelling. If you rent and occupy a replacement dwelling that rents for more than the comparable dwelling, your rental assistance payment will be limited by the cost of the comparable dwelling. If you BUY replacement housing (Downpayment Assistance) You may use the amount of your rental assistance payment for down payment assistance. Should you choose to buy (rather than rent) a decent, safe and sanitary replacement home, you may use the full amount of your rental assistance payment ($ ), as calculated above for a down payment and incidental expenses (typically known as 'closing costs") associated with the purchase of a replacement dwelling. You are not limited in the type of home you choose. If you have received any amount as rental supplements, then those amounts will be deducted from all eligible down payment calculations. Let us know if you would prefer to buy a replacement home, and we will help you find such housing. To be eligible for a replacement housing payment described above, you must rent or purchase and occupy a decent, safe and sanitary replacement dwelling within 12 months, as well as file claims for replacement housing or moving payments within 18 months from the date you move from your displacement dwelling. Failure to occupy the replacement dwelling or to submit claims within the above time limits could result in loss of moving and/or replacement housing benefits. You do not have to accept any dwelling referred to you by the Owner. You may choose your own replacement, but to qualify for relocation assistance payments it must first be inspected to assure that it meets the "decent, safe and sanitary" standards. For this reason, DO NOT MOVE from your home and DO NOT CONTRACT to rent or purchase a replacement dwelling without first contacting your relocation agent. The "decent, safe and sanitary" inspection is not a substitute for a professional housing inspection. The Relocation Assistance Program is very complex. It is important that you carefully read and understand the matters explained in this notice and in the Informational Statement which was provided to you. Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Owner's Relocation Assistance Program may have the appeal application reviewed by the Owner in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from your relocation agent. If at any time you have questions or need assistance, please contact your relocation agent: <<AGENT NAME>> 5000 Airport Plaza Drive, Suite 250 Long Beach, CA 90815 (800)400-7356 Sincerely, Attachment (referrals) ACKNOWLEDGMENT BY OCCUPANTS I was personally contacted by the Relocation Agent for the Owner. I have been given a copy of this notice and I have had the available services and entitlements explained to me. I have been advised that the Relocation Agent will be available to assist me if any questions arise or assistance is needed. Name: Signature: Date: EXHIBIT F NOTICES TO VACATE 1111111L. .11110LNOTICE TO RELOCATE <<DATE>> <<HEAD OF HOUSEHOLD NAME>> and all other occupants 300 S. Santa Ana Boulevard, Unit Santa Ana, CA 92701 Re: Notice to Relocate Dear <<NAME>>: C&C Development, Co., LLC ("Owner") notified you previously of proposed plans to rehabilitate the property you currently occupy at 300 S. Santa Ana Boulevard, Santa Ana, CA 92701. It has now been determined by the Owner that it is necessary for you to vacate your current unit no later than midnight on <<DATE>>. You will be moving to Unit We will be contacting you shortly to coordinate and explain the details of your move and the benefits for which you may be eligible. You will receive moving assistance and advisory services, which will be explained to you when you meet with our relocation specialist. In order not to delay the rehabilitation process, it is very important that we work together to help you move, because you must move out of your current unit by midnight on <<DATE>>. If you have any questions regarding this or any other relocation issues, please contact your relocation agent, <<NAME>> at <<NUMBER>>. Sincerely, <<NAME>> <<TITLE>> <<ORG>> 90-Day Notice to Vacate <<DATE>> <<HEAD OF HOUSEHOLD NAME>> and all other occupants 300 S. Santa Ana Boulevard, Unit Santa Ana, CA 92701 Dear <<NAMES>>: C&C Development Co., LLC ('Owner") notified you previously of proposed plans to rehabilitate the property you currently occupy at 300 S. Santa Ana Boulevard, Santa Ana, CA 92701 (called here the "Premises"). The Owner has now determined that it will be necessary for you to vacate the Premises. Notice is hereby given that the Owner elects to terminate your tenancy beginning <<DATE>> and ending «DATE>>, and you are hereby to quit and deliver up possession of the property you occupy on or before <<DATE>>. If you do not vacate the Premises by that date, the Owner will initiate legal proceedings to recover possession of the Premises, along with any rents and damages. During this period, OPC/TranSystems will be available to provide assistance with referrals to replacement sites, coordination with movers and other vendors, the processing of relocation benefit claim forms, and other tasks to help facilitate your relocation. Please contact your relocation agent listed below if you have any questions regarding this notice or the relocation process. Upon vacating your unit, you are responsible for removing all of your personal property, delivering the Premises in satisfactory condition and turning in the keys to your relocation agent. Sincerely, Received by Rq Recipient's Signature Delivered on/by: / Posted on/by: / Mailed/receipt received on: Date EXHIBIT G PUBLIC COMMENTS & RESPONSES