HomeMy WebLinkAboutJOHN DELULIO TRUST (3)RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:
City of Santa Ana
Attention: Housing Loan Officer
Property Rehabilitation Loan Program M-27
500 W. Santa Ana Boulevard, Suite 400
P. 0. Box 1988
Santa Ana, California 92702
AGREEMENT BETWEEN THE CITY OF SANTA ANA
AND DEVELOPER FOR THE USE OF
COMMUNITY DEVELOPER BLOCK GRANT FUNDS
2/5/91
THIS AGREEMENT,made and entered into this day of
199!�-_, by and between the City of Santa Ana,
a municipal corporation of the State of California ("CITY") and
-Wc&)lt 14ly k i', -r 1A :r ("DEVELOPER"),
W I T N E S S E T H
Recitals:
1. CITY is the recipient of funds from the United
States Department of Housing and Urban Development ("HUD") pursuant
to Title I of the Housing and Community Development Act of 1974, as
amended ("ACT").
2. CITY desire to commit a supplemental loan to
Developer to develop property as an affordable housing project
(hereinafter the "project") and DEVELOPER desires to enter into an
agreement with CITY in regard to the Project of the form set forth
in Exhibit I, attached here -:to and by this reference incorporated
herein.
WHEREFORE, for and in consideration of the respective and
mutual covenants hereinafter contained and made, and subject to all
the terms and conditions hereof, the parties hereto do hereby agree
as follows:
1. DEVELOPER OBLIGATIONS
A. DEVELOPER agrees to- enter into a "Development
Agreement" which is the subject of this agreement with -CITY to use
all federal funds provided by CITY'to DEVELOPER pursuant to this
agreement and the Development Agreement for. the. Project. as. set
forth in "Exhibit 1,11 attached hereto and -by this 'reference
incorporated herein. •DEVELOPER's fai..Iure to perform as required
may, in addition 'to other remedieg. aet forth in this agreement,
Page I of 11 Pages
result in readjustment of the amount of funds CITY is otherwise
obligated to pay to DEVELOPER under Paragraph II hereof.
B. DEVELOPER agrees to obtain and maintain all
licenses, registrations, accreditation and inspections from all
agencies governing its operations. DEVELOPER shall ensure that its
staff shall also obtain and maintain all required licenses,
registrations, accreditation and inspections from all agencies
governing DEVELOPER'S operations hereunder.
C. All funds received by DEVELOPER from CITY pursuant
to this agreement shall be separately accounted for apart from any
other funds of DEVELOPER, or of any principal or member of
DEVELOPER.
D. DEVELOPER shall keep records of all funds received
from CITY under the terms and conditions of this agreement in
accordance with the procedures set forth in the "Agreement Account-
ing and Administrative Handbook" of CITY, a copy of which shall be
provided to DEVELOPER by CITY.
DEVELOPER agrees to keep monthly records of all ethnic
and racial statistics of persons and families benefitted by
DEVELOPER in the performance of its obligations under this
agreement, including, but not limited to, the number of low and
moderate income persons and households assisted in accordance with
federal income limits, number of female heads of households, and
number of senior citizens assisted.
DEVELOPER agrees to provide CITY with written reports of
its activities on or before the 15th day of October, January, April
and July for the previous three-month period and a final report
which this agreement terminates, setting forth the activities,
program accomplishments, new program information and current
program statistics on expenditures, caseload and activities. When
appropriate, pictures and/or slides should be included.
CITY and the United States Government and/or their
representatives shall have access for purposes of monitoring,
auditing, and examining DEVELOPER's activities and performance, to
books, documents and papers, and the right to examine records of
DEVELOPER 's subcontractors, bookkeepers and accountant's, employees
and participants in regard to said program. CITY and the United
States Government and/or their representatives shall also schedule
on -site monitoring in their discretion. Monitoring activities may
also include, but are not limited to, questioning employees and
participants in said program and entering any premises or any site
in which any of the services or activities funded hereunder are
conducted or in which any of the records of DEVELOPER are kept.
Nothing herein shall be construed to require access to any
privileged or confidential information as set forth in federal or
state law.
Page 2 of 11 Pages
In the event DEVELOPER does not make the above -referenced
documents available within the City of Santa Ana, California,
DEVELOPER agrees to pay all necessary and reasonable expense
incurred by CITY in conducting any audit at the location where said
records and books of account are maintained.
E. All accounting records and evidence pertaining to
all costs of DEVELOPER and all documents related to this agreement
shall be kept available at DEVELOPER's office of place of business
for the duration of this agreement and thereafter for three (3)
years after completion of an audit. Records which relate to
(a) complaints, claims, administrative proceedings or litigation
arising out of the performance of this agreement, or (b) costs and
expense;s of this agreement to which CITY or any other governmental
agency takes exception, shall be retained beyond the three (3)
years until resolution ofdisposition of such appeals, litigation,
claims, or exceptions.:
F. DEVELOPER acknowledges that the funds being provided
by CITY for said program are received by CITY pursuant to the ACT
as amended. Expenditures of these funds shall be in accordance
with the ACT and all pertinent regulations issued by agencies of
the federal government, including, but not by way of limitation,
those regulations set forth in "Exhibit 11," attached hereto and by
this reference incorporated herein. DEVELOPER agrees to comply
fully with all federal, state and local laws and court order
application to its operation whether or not referred to in this
agreement.
G. DEVELOPER shall be in good standing, without
suspension by the California Secretary of State, Franchise Tax
Board and Internal Revenue Service. Any change in the corporate
status or suspension shall be reported immediately to ;CITY.
H. DEVELOPER agrees that the performance of obligations
hereunder are rendered in its capacity as an independent contractor
and that it is in no way an agency of CITY.
I. DEVELOPER agrees that CITY may terminate this
agreement if, for any reason, DEVELOPER fails to fulfill in a
timely and proper manner any of its obligations under this
agreement. If DEVELOPER ;violates any of the terms and conditions
of this agreement or any prior agreement whereby Community
Development Block Grant ("CDBG") funds were received by DEVELOPER,
if DEVELOPER reports inaccurately, or if on audit there is a
disallowance of certain expenditures, DEVELOPER agrees to remedy
the acts of omissions causing the disallowance or repay CITY all
amounts spent in violation thereof.
Page 3 of 11 Pages
J. DEVELOPER agrees to maintain a record for each item
of non -expendable property acquired under the terms of this
agreement. Said record shall be made available to CITY upon
request. The term "Non -expendable property" shall include tangible
personal property (including but not limited to office equipment),
real property and any interest in such real property, including any
mortgage, trust deed, or other encumbrance of real property, and
the funds received from the sale of any interest in real property.
Any utilization of funds from the disposition, including sale, of
non -expendable property must have the approval of CITY and HUD and
otherwise comply with HUD or other federal laws and regulations.
In the event of termination of this agreement, CITY reserves the
right to determine the final disposition of said non -expandable
property, including funds and/or any other assets derived there-
from. Said disposition may include CITY taking possession of said
non -expendable property.. The term "Non --expendable personal
property" means leased and purchased tangible personal property
having a useful life of more than one (1) year and acquisition cost
of $300.00 or more per unit.
II CITY'S OBLIGATIONS
A. CITY shall pay to DEVELOPER from CDBG funds, when,
if and to the extent received from HUD, amounts expended by
DEVELOPER in carrying out the Pro je t pursuant to this agreement up
to -a maximum aggregate payment of 1�i _"�' TI�F�a.tauC Vlk Vcn."ux� W D "ree Z,
(83i . S 16, o 0 ) in installments determined by CITY.
B. CITY shall include an audit of the account main-
tained by DEVELOPER pursuant to Paragraph I.E. hereinabove in
CITY's annual audit of all CDBG funds pursuant to federal regula-
tions founds in Title 24 of the Code of Federal Regulations and
other applicable federal laws and regulations.
III NOTICES
Notices to the parties shall, unless otherwise requested
in writing, be sent by U.S. Mail, postage prepaid, and addressed as
follows:
To CITY: City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
TO DEVELOPER: � 1, t,-, (.0 ZeV.-ti'
IV PROHIBITION OF NEPOTISM
DEVELOPER agrees not to hire or permit the hiring of any
person to fill a position funded through his agreement if a member
Page 4 of 11 Pages
of that person's immediate family is employed in an administrative
capacity by DEVELOPER. For the purposes of this section, the term
"immediate family" means spouse, child, mother, father, brother,
sister, brother --in-law, sister-in-law, father-in-law, mother -in-
law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, step-
parent and stepchild. The term "administrative capacity" means
having selection, hiring, supervisor or management responsibili-
ties.
V ASSIGNABILITY
DEVELOPER shall not assign nor transfer any interest in
this agreement, whether by assignment or novation, without the
prior written consent of CITY; provided, however, that claims for
money due or to become due DEVELOPER from CITY under this agreement
may be assigned to a bank, trust company or other financial
institution, or to a trustee in bankruptcy, without such approval
Notice of any such assignment or transfer shall be promptly
furnished to CITY.
VI HOLD HARMLESS
DEVELOPER shall indemnify and save harmless CITY, its
officers and employees, from and against any and all damages to
property or injuries to or death of any person or persons,
including property and employees or agents of CITY, and shall
defend, indemnify and save harmless CITY, its officers and
employees, from and against any and all claims, demands, suits,
actions or proceedings of any kind or nature, including, but not by
way of limitations, workers compensation claims, resulting -from or
arising out of the negligent or wrongful acts, errors or omissions
of DEVELOPER, its employees or subcontractors.
VII INSURANCE
A. DEVELOPER shall furnish CITY's Clerk of the Council
with an insurance certificate from its workers compensation
insurance carrier certifying that it carries such insurance and
that the policy shall not be canceled nor the coverage reduced
except upon thirty (30) days prior notice to CITY.
B. DEVELOPER shall obtain, at its sole cost and file
with the Clerk of the Council of CITY, prior to exercising any
right or performing any obligation pursuant to this agreement, and
maintain for the period covered by this agreement, a policy or
policies of general liability insurance, or certificate of such
insurance, satisfactory to the City Attorney of CITY naming CITY,
its officers, agents and employees as insured or additional
insured, which policy or policies provide coverage not less than
that provided in the form of a comprehensive general liability
insurance policy insuring against liability for any and all claims
and suits for damages or injuries to persons or property resulting
Page 5 of 11 Pages
from or arising out of operations of DEVELOPER, its officers,
agency, or employees. Said policy or policies of insurance shall
provide coverage for both bodily injury and property damages in not
less than the following minimum amounts: Five Hundred thousand
Dollars ($500,000.00) combined single limit, or its equivalent.
Said policy shall also contain a provision that no termination,
cancellation or change of coverage of insured or additional insured
shall be effective until thirty (30) days notice thereof has been
given in writing to CITY. DEVELOPER shall give CITY prompt and
timely notice of any claim made or suit instituted. DEVELOPER
shall procure and maintain, at its own cost and expense, any
additional kinds and amounts of insurance, which, in its own
judgment, may be necessary for its proper protection in the
prosecution of the work.
VITT PROGRAM INCOME
A. "Program income," as defined at 24 CFR 570.500(a),
means gross income received by the DEVELOPER directly generated
from the use of CDBG funds. when such income is generated by an
activity that is only partially assisted with CDBG funds, the
income shall be prorated to reflect the percentage of CDBG funds
used.
following:
B. Program income includes, but is not limited to the
1. Proceeds from the disposition by sale or long term
lease of real property purchased or improved with
CDBG funds;
2. Proceeds from the disposition of equipment pur-
chased with CDBG funds;
3. Gross income from the use or rental of real or
personal property acquired by the DEVELOPER with
CDBG funds, less the costs incidental to the gener-
ation of such income;
4. Gross income from the use or -rental of real prop-
erty owned by the DEVELOPER that was constructed or
improved with CDBG funds, less the costs incidental
to the generations of such income;
5. Payments of principal and interest on loans made
using CDBG funds;
6. Proceeds from the sale of loans made with CDBG
funds;
7. Proceeds from the sale of obligations secured by
loans made with CDBG funds;
Page 6 of 11 Pages
8. Interest earned on funds held in a revolving fund
account;
9. Interest earned on program income pending disposi-
tion of such income; and
1.0. Fund collected through special assessments made
against properties owned and occupied by households
not of low and moderate income, where such assess-
ments are used to recover all of part of the CDBG
portion of a public improvement.
C. Program income does not include interest earned
(except for interest described in 24 CFR 570.513) on cash advances
from the U.S. Treasury. Such interest shall be remitted to HUD
from transmittal to the U.S. Treasury and will not be reallocated
under section 106(c) or (d) of the Act., Examples of other receipts
that are not considered program income are proceeds from fund
raising activities carried out by DEVELOPER receiving CDBG
assistance; funds collected through special assessments used to
recover the non-CDBG portion of a public improvement; and proceeds
from the disposition of real property acquired or improved with
CDBG funds when such disposition occurs after the applicable time
period specified in 24 CFR 570.503(b)(8).
IX TERMINATION
A. This agreement may be terminated on thirty (30)
days' written notice by either party. In the event of such
termination, DEVELOPER shall only be entitled to reimbursement for
approved expenses incurred to the effective date of termination.
B. This agreement may be suspended or terminated by
CITY upon five (5) days' written notice for violation by DEVELOPER
of Federal Laws governing the use of Community Development Block
Grant Funds. In the event of such suspension or termination,
DEVELOPER shall only be entitled to reimbursement for approved
expenses incurred up to the effective date of suspension or
termination.
C. Pursuant to 24 CFR 85.43, if in the event DEVELOPER
defaults by failing to fulfill all or any of its obligations
hereunder, CITY may declare a default and termination of this
agreement by written notice to DEVELOPER, which default and
termination shall be effective on a date stated in the notice which
is to be not less than ten (10) days after certified mailing or
personal service of such notice, unless such default is cured
before the effective date of termination stated in such notice. If
terminated for cause, CITY shall be relieved of further liability
or responsibility under this agreement, or as a result of the
termination thereof, including the payment of money, except for
payment for approved expenses incurred for service satisfactorily
Page 7 of 11 Pages
and timely performed prior to the mailing or service of the notice
of termination, and except for reimbursement of (1) any payments
made for services not subsequently performed in a timely and
satisfactory manner, and (2) costs incurred by CITY in obtaining
substitute performance.
D. The grant of funds under this agreement may be
terminated for convenience in accordance with 24 CFR 85.44.
E. In the event this agreement is terminated as set
forth in sub -paragraphs IXA through IXD, inclusive, DEVELOPER
agrees to immediately return to CITY upon CITY's demand and prior
to any adjudication of DEVELOPER's rights, any and all funds not
used.
X REVERSION OF ASSETS
Upon the expiration of this agreement, DEVELOPER shall
transfer to CITY any CDBG funds on hand at the time of the
expiration of this agreement as well as any accounts receivable
attributable to the use of CDBG funds. Any real property under
DEVELOPER'S control that was acquired or improved in whole or in
part with CDBG funds in excess of $25,000.00 must either be:
A. Used to meet one of the national objectives stated
in 24 CFR 570.208 until five (5) years after expiration of this
agreement, or for such longer period of time as determined to be
appropriate by CITY; or
B. Disposed of in a manner that results in CITY's being
reimbursed in the amount of the current fair market value of the
property less any portion of the value attributable to the
expenditure of non--CDBG funds to acquisition of, or improvement to,
the property.
Furthermore, DEVELOPER hereby agrees, upon the demand of
CITY, to execute, acknowledge and deliver, or to cause any person
or entity who may have any claim to rights hereunder or under any
document, instrument or agreement executed in furtherance of the
services and activities to be performed hereunder, to execute,
acknowledge and deliver, to CITY assignment (s), quit claim deeds)
or such other and further instruments, documents and agreements as
may be necessary, in the sole and absolute discretion of CITY, to
vest in CITY all of DEVELOPER'S right, title and interest ( if any
it may have) in and to CITY, CDBG or other federal, state and/or
local accounts or program funds or allocation of funds to which
CITY is or may be entitled, either for its own account or as
fiduciary or trustee for others, which were obtained for the
purpose of the performance of this agreement or any previous
agreements relating to the same subject matter or activities as
this agreement, together with any instruments, loans, grants or
Page 8 of 11 Pages
advances by DEVELOPER on behalf of CITY, in furtherance of the
activities hereunder or thereof.
DEVELOPER's obligations and responsibilities, set forth
in this paragraph "X REVERSION_OF ASSETS" and in paragraphs "IX
TERMINATION" and "VIII PROGRAM INCOME" shall not be affected by the
termination of this agreement and shall survive the date of
termination of this agreement for such period of time as CITY
and/or HUD deems necessary for the responsibilities, duties and
obligations to be performed and completed to the satisfaction of
CITY and HUD.
XI LIMITATION OF FUNDS
The United States of America, through HUD, may in the
future place programmatic or fiscal limitations on the use of CDBG
funds which limitations are not presently anticipated. According-
ly, CITY reserves the right to revise this agreement in order to
take account of actions affecting HUD program funding. In the
event of funding reduction, CITY may, in its sole and absolute
discretion, reduce the budget of this agreement as a whole or as to
costs category, may limit the rate of DEVELOPER's authority to
commit and spend funds, or may restrict DEVELOPER's use of both its
uncommitted and unspent funds. Where HUD has directed or requested
CITY to implement a reduction in funding, in whole or as to a cost
category, with respect to funding for this agreement, CITY's City
Manager or delegee is authorized to act for CITY in implementing
and effecting such a reduction and in revising, modifying, or
amending the agreement for such purposes. Where CITY has reason-
able grounds to question DEVELOPER's fiscal accountability,
financial soundness, or compliance with this agreement, CITY may
suspend the operation of this agreement for up to sixty (60) days
upon five (5) days written notice to DEVELOPER of its intention to
so act, pending an audit or other resolution of such questions. In
no event, however, shall any revisions made by CITY affect
expenditures and legally binding commitments made by DEVELOPER
before' it received notice of such revision, provided that such
amounts have been committed in good faith and are otherwise
allowable and that such commitments are consistent with HUD cash
withdrawal guidelines.
X11 CLOSE OUT PROCEDURES
A. This agreement shall be closed out when:
1.. All costs to be paid for by CDBG funds have been
incurred; with the exception of close out costs and
costs associated with contingent liabilities as set
forth in 24 CFR 570.509 (c) (i) ; -
2. Any rehabilitation activities to private property
have actually been completed; and
Page 9 of 11 Pages
3. Other responsibilities of DEVELOPER under this
agreement have been completed.
B. Upon close out and after demand by CITY, DEVELOPER
shall provide CITY with:
1. A full and complete listing of all outstanding
loans;
2. Original loan documents and any and all original
security instruments for all loans generated with
CDBG funds; and
3. A document assigning the loan from DEVELOPER to
CITY.
XIII EXCLUSIVITY AND AMENDMENT OF AGREEMENT
This agreement supersedes any and all other agreements,
either oral or in writing, between the parties hereto with respect
to the use of CITY's CDBG funds by DEVELOPER and contains all the
covenants and agreements between the parties with respect to such
employment in any manner whatsoever. Each party to this agreement
acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or
anyone acting on behalf of any party, which are not embodied
herein, and that no other agreement or amendment hereto shall be
effective unless executed in writing and signed by both CITY and
DEVELOPER.
XIV LAWS GOVERNING THIS AGREEMENT
This agreement shall be governed by and construed in
accordance with the laws of the State of California, and all
applicable federal laws and regulations.
XV VALIDITY
The invalidity in whole or in part of any provision of
this agreement shall not void or affect -the validity of any other
provisions of this agreement.
Page 10. of 11 Pages
IN WITNESS WHEREOF, the parties hereto have executed this
agreement on the date and year first above -written.
CITY OF SANTA ANA, a municipal
corporation,� 'the State
elf Callfor�Y a—.
DATED:
ATTEST:
DATED:
By:
Y
DAVID NY` REAM,
City Manager
iANCE C. GUY
Clerk of the Council
1 ,(
Yuar a,b By: _
Trustee, of the John Delulio Trust dated
AS TO FORM: December 26, 1986
EDWARD J. OOP R,
City Attorne
Page 11 of 11 Pages
DMF/fm
1/7/91
RECORDING REQUESTED BY
AND WHEN RECORDED,.MAIL TO:
City of Santa Ana
Attention: Housing Loan Officer
Property Rehabilitation Loan Program M-27
500 W. Santa Ana Boulevard, Suite 400
P. 0. Box 1988
Santa Ana, California 92702
HOUSING DEVELOPMENT LOAN AGREEMENT
(Rental Housing)
THIS AGREEMENT, made and entered into this '�i � ` day of
-R, It , 19OL,'�, by and between the City of Santa
Ana, a muni ipal corporation of the State of California ("City" ),
and 5 U I-4,�u 1 i {� "i US T _— ( "Developer") .
W-I-T-N-E-S-S-E-T-H
A. Developer is the owner of certain real property in the city
of Santa Ana described in Attachment A, attached hereto and
incorporated herein by reference (the "Property").
B. Developer desires to develop the Property as an affordable
housing project in conformance with Attachment B, attached hereto
and incorporated herein by reference (the: "Project") .
C. An analysis of development costs of the Project indicates
that Developer, in order to complete the Project, will need to
borrow a total amount of l _�. . 31A,00
D. Developer has r.ec ived a loan commitment for the
Project in the amount of 4.4!4.JJq,aq a copy of which is
attached hereto as Attach ent C and incorporated herein by
reference.
E. City desires to improve the -Property to a degree to which
it would be acceptable to City in accordance with the Housing
Element of the City's general plan.
F. In order to promote this goal, City will hereby commit to
a supplemental loan to Developer for the Project, subject to
certain conditions designed to assure the completion of the Project
in accordance with City standards and the affordability of the
units therein to families of low and moderate income.
Page 1 of 10 Pages
EXHIBIT I
WHEREFORE, in consideration of their mutual and respective
promises, and subject to the terms and conditions hereinafter set
forth, the parties hereto do hereby agree as follows:
ARTICLE 1
DEFINITIONS
1.01. "City Loan" means a supplemental loan by the City to the
Developer pursuant to section 3.01 of this Agreement.
1.02. "City Note" means a promissory note evidencing
Developer's obligation to repay the City Loan or any part thereof
in the form or forms prescribed by Section 3.02 of this Agreement.
1.03. "Development" means construction or rehabilitation or a
combination thereof.
1.04. "Lender" means the bank or other lender that has issued
the loan commitment referenced in Attachment C of this Agreement.
1.05. "City Manager" means the City Manager of City or his or
her designated representative.
ARTICLE 2
DEVELOPMENT OF THE PROPERTY
2.01 Work to be Performed
Developer agrees to develop the Project in accordance with
Attachment B and with plans approved by City consistent with said
Attachment B.
2.02 Approval of Construction plans
Developer has submitted for City approval preliminary
construction drawings, elevations, and an estimate of construction
costs for the Project. Agency hereby approves the concept of the
Project's development as disclosed thereby, subject to approval of
final construction plans consistent. therewith by City 's Planning
and Building Safety Agency.
2.03. Cost of Construction
The cost of developing the Subject Property shall be borne. by
Developer.
Page 2 of 10 Pages
EXHIBIT I
2.04. Construction Schedule
Developer shall begin and complete all construction and
development on the Property within one hundred and eighty (180)
days from the date of this agreement subject to revision from time
to time as mutually agreed upon in writing between Developer and
the Director. The Director will not withhold a reasonable extension
of time for completion of the rehabilitation Project if the
Developer has shown continuous and substantial progress toward
completion.
2.05. City and other Government Agency Permits
Before commencement of any development upon the Property,
Developer shall, at his own expense, obtain any and all permits
which may be required by the City or other governmental agency
affected by such work.
2.06. Rights of Access
Representatives of the City shall have a reasonable right of
access to the Property without charges or fees, at normal
construction hours during the period of construction for the
purpose of this Agreement, including but not limited to the
inspection of the work being performed.
2.07. Certificate of Completion
After completion of all development specified in Attachment B
of this Agreement, and upon written request of Developer, City
shall inspect the Property. If all work specified in Attachment B
has been performed to the City's satisfaction, the Agency will
issue, in recordable form, a Certificate of Completion. Such
Certificate of Completion shall be, and shall so state, conclusive
determination of satisfactory completion of the Project. If the
City refuses or fails to furnish a Certificate of' Completion for
the Property after written request from the Developer, the City
shall, within thirty (30) days of written request, provide the
Developer with a written statement of the reasons the City refused
or failed to furnish a Certificate -of Completion. The statement
shall also contain the City's opinion of the action the Developer
must take to obtain a Certificate of Completion. If the City shall
have failed to provide such written statement with the said 30 days
period, the Developer shall be deemed entitled to the Certificate
of Completion.
Page 3 of 10 Pages
EXHIBIT I
2.08. Prohibition against Transfer of the ProRerty
City enters this Agreement in furtherance of the goal of
neighborhood revitalization and in reliance on the Developer's
representation that he shares this goal and does not intend merely
to speculate in land values. Prior to the issuance of a
Certificate of Completion as provided for in Section 2.07 of this
Agreement, Developer shall not sell, transfer, convey, assign, or
lease the Property, or any part thereof, without prior approval of
the City.
2.09. Nonassignability and Delegation
Developer shall not assign any rights under this Agreement
except upon prior written authorization from the City.
Developer shall not make any delegation of authority or
responsibility which would in any way purport to relieve Developer
of any covenant imposed by this Agreement.'
2.10. OccuDancy of the Pro ert
Developer represents that at the time this document was
executed by the parties, the Property was uninhabited and will
remain so for the duration of the Project. Therefore, Developer
shall hold City harmless for any relocation claims arising out of
the Project.
ARTICLE 3
CITY LOAN
3.01. City Loan Commitment
The City hereby commits to provide a City Loan to Developer,
in the principal amount of $ to assist in financing the
Project, subject to the terms and conditions hereinafter set forth.
The amount of the City Loan represents the sum of funds to be
loaned to Developer pursuant to the following housing loan
programs:
Infill Loan Program: $
Offsite Improvement Loan Program: $
Rehabilitation Loan Program: $341310,00
Page 4 of 10 Pages
EXHIBIT I
3.02. City Notes and Deed of Trust
Developer's obligation to repay the City Loan shall be
evidenced by a promissory note or notes in the form or forms set
forth in Attachment D, attached hereto and incorporated herein by
reference, and shall be subject to the terms and conditions therein
contained. Each City Note shall be secured by a deed of trust on
the Property in the form of a standard, short form deed of trust
issued by a trustee selected by the City, with City named as
beneficiary thereon: Developer shall duly execute each City Note
and its corresponding deed of trust and deliver the same to the
City or its designated agent as a condition of the City's
obligation to fund the City Loan.
The City agrees to undertake, in good faith, any determination
referenced in any City Note pertaining to possible deferrals of
installment payments on the said Note provided Developer provides
City with the information necessary to make such determinations and
access to Developer's books and records to verify such information.
3.03. Lien Priority
As a condition to City's obligation to fund the City Loan,
there shall be no liens upon the Property having priority over any
deed of trust securing any City Note, other than those specified in
Attachment E, attached hereto and incorporated herein, unless
otherwise consented to by the City Manager or delegee.
3.04. Fundincr of City Loan
The City Loan shall be made by depositing the loan proceeds
into a construction escrow account established pursuant to Section
3.06. In addition to other conditions set forth hereinabove, the
funding of the City Loan is conditional upon the Developer having
obtained all necessary permits for the Project and upon the
concurrent funding of the Lender Loan.
3.05. Equity Deposit
If the loans to be made by the City and Lender are
insufficient to cover the entire estimated construction costs of
the Project, Developer shall deposit into the construction escrow
account provided for in Section 3.06 of this Agreement the amount
required to make up the deficit.
3.06. Construction Escrow Account
All loan proceeds and equity deposits shall be placed in a
non -interest bearing construction escrow account with United States
Page 5 of 10 Pages
EXHIBIT I
Escrow or at such other institution as agreed upon by the City,
Developer and Lender.
3.07. Use of Proceeds
The proceeds of the City Loan shall be used for materials,
supplies, labor and services that are an integral part of the
Project. Funds shall be disbursed only for the purposes and in the
amounts approved by City and Lender.
3.08. Disbursals
All disbursals for construction costs shall be made first from
equity deposits, if any, then from Lender Loan proceeds, and lastly
from City Loan proceeds, unless otherwise approved in writing by
the City Manager.
3.09. Pragress Payments_
Upon written request of Developer, the City will request
disbursement of funds from the construction escrow account for
fully completed work items. Such requests by the City for payments
for individual work items shall be made after inspection and
acceptance of the work by the City and City approval of Developer's
requisitions and invoices and satisfactory proof that the property,
Developer and City are properly protected from Liens or claims of
liens for Labor and materials. All funds disbursed to Developer
shall be received by Developer in trust and Developer agrees that
the same shall be used only for the payment of these items
contemplated by the particular disbursement.
City shall not be required to request disbursement of any
amount which, in City's opinion, will reduce that portion of the
undisbursed -funds designated for the cost of completion of the
rehabilitation below that needed to pay for the labor and materials
necessary to complete the work.
3.10. Records
Developer and City shall maintain records which accurately and
fully show the date, amount, purpose, and payee of all expenditures
from the City Loan.
Page 5 of 10 Pages
EXHIBIT I
ARTICLE 4
COVENANTS RUNNING WITH THE LAND
4.01. Use and Maintenance of the Property
Developer covenants and agrees for himself, his heirs,
executors, administrators and assigns, and every person acquiring
an interest in the Property or any part thereof, that the Developer
will:
1. Use the Property only for residential use.
2. Maintain the Property in a decent, safe and sanitary
condition, and according to all applicable building safety
codes.
3. Not allow occupancy to exceed two (2) persons per bedroom
plus one additional person.
4.02. Low Income Tenant Rental Covenant
Developer covenants and agrees for himself, his heirs,
executors, administrators and assigns, and every person acquiring
an interest in the Property or any part thereof, that at least _
6 U f— dwelling unit s ) on the Property herein conveyed,
each having at least two (2) bedrooms, shall be rented exclusively
to persons at or below eighty percent (80%) of the median income
for Orange County as published by the United States Housing and
Urban Development (HUD) or persons eligible for certificates issued
by the Housing Authority of the City of Santa Ana pursuant to the
"Section 8" program of HUD so long as said Housing Authority has
such certificates available for such a purpose.
As used herein, "bedroom" means a sleeping room designated as
"Bedroom" on the plans and specifications approved by the City in
accordance with Attachment B.
4.03 Obligation to Refrain fro
m Discrimination
Developer herein covenants by and for himself, his heirs,
executors, administrators and assigns, and all persons claiming
under or through them, that there shall be no discrimination
against, or segregation of, any person or group of persons on
account of race, color, creed, religion, sex, marital status,
national origin, or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure, or enjoyment of the Property, or
any part hereof, nor shall. Developer himself or any person claiming
Page 7 of 10 Pages
EXHIBIT I
under or through him, 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, subleases, or vendees in the Property.
4.04. Enforcement
A. City is deemed a beneficiary of the terms and provisions of
the hereinabove covenants. 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.
B. In the event the actual rent collected by Developer for any
unit required under this Agreement to be rented to low or moderate
income tenants is in excess of the maximum affordable rent allowed
for such unit in violation of this Agreement, the amount by which
any actual rent collected for such unit exceeds the maximum
affordable rent for such unit shall be deemed damages payable to
City by Developer. Such damages shall be in addition to any other
remedy at law or in equity to City.
4.05. Duration of Covenants
The hereinabove covenants shall run with the land for a period
of fifteen (15) years from and after the date of this Agreement or
until .the City Notes are paid in full, whichever is longer, at
which time they shall expire.
ARTICLE 5
GENERAL PROVISIONS
5.01. City's Right to Acquire in the Event of Default by the
Developer
In the event that Developer fails to complete the Project
within the time set therefor by the terms of this Agreement, or in
the event that improvements are destroyed or damaged and Developer
fails or refuses to repair, restore or rebuild the Project, City
may, at its option, acquire the Property. The amount to be paid
Developer shall he the fair market value of the Property with
existing improvements as of the date City exercises such option. if
City and Developer are unable to agree upon fair market value of
the Property, City may institute an action in eminent domain to
acquire the Property, and this Agreement will then constitute a
stipulation on the part of Developer that the only issue involved
in said action shall be the fair market value of the property to be
acquired.
Page 8 of 10 Pages
EXHIBIT I
5.02. Conflict of Interest
-No member, official or employee of City shall have any
personal interest, direct or indirect, in this Agreement nor shall
any member, official or employee participate in any decision
relating to the Agreement which affects his personal interests or
the interests of any corporation, partnership or association in
which he is directly or indirectly interested.
Developer warrants that he has not paid or given and will not
pay or give any third person any money or other consideration for
obtaining this Agreement.
5.03. Nonliability of City Officials and Em to ees
No member, official or employee or the City shall be
personally liable to Developer or any successor in interest, in the
event of any default or breach by City or for any amount which may
become due to Developer or successor or any obligations under the
terms of this Agreement.
5.04. Indemnification of City
Developer shall hold harmless and indemnify the City, the
City, and its officers, agents and employees, from any and all
claims, demands, actions, liability or losses which may arise from
or be incurred as the result of injury or damage to persons or
property in the course of the Project, including but not limited to
damage to the Property.
5.05. City Loan Liabilit
City shall not be liable or responsible in any manner in the
event Developer defaults on the promissory note with Lender.
5.06 Nonliabilit of City for default of contractors
It is understood and agreed that the City shall have no
liability to Developer by reason of the failure to perform or
inadequate performance of any contractor retained by Developer for
work on the Project.
5.07. Inspection of Books_ and Records
City has the right at all reasonable times to inspect the
books and records of Developer pertaining to the Property as
pertinent to the purposes of this Agreement. Any notices, requests
or approvals given under this Agreement from one party to another
may be personally delivered or deposited with the United States
Page 9 of 10 Pages
EXHIBIT I
Postal Service for mailing, postage prepaid, registered or
certified mail, return receipt requested, to the address of the
other party as stated in this paragraph, and shall be deemed given
at the time of personal delivery or at the time of deposit for
mailing. Either party may change its address for notice by giving
written notice thereof to the other party as provided above.
City: City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
Developer: a
`j >4 eloi, � 39. L
5.P-�xq AhRI ( A tt )O L
5.08. Recordation
Upon issuance of building permits for the Project, this
Agreement shall be recorded in the Official Records of orange
County, California. Developer agrees to execute and deliver for
recordation such additional documents or instruments as the other
may reasonably request to' further confirm or acknowledge the
provisions hereof, including the expiration. of the low or'moderate
income tenant rental period.
5.09. Date of Agreement
This agreement shall be dated as of the date of its approval,
by the City.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement the date and year first above written.
t
t
LPPROVED AS TO FORM:
i
Edwar oo r
City Attorney
City of Santa, Ana
City Manager
David N. Ream
Developer
4.
Trustee, of the John Delulio Trust dated
December 26, 1986
Page 10 of 10 Pages
EXHIBIT I
"Attachment All
Legal Description:
Lot 2 of Tract No. 5695, as shown on Map thereof recorded
in Book 208, Pages 39 and 40 of Miscellaneous Maps and
records in the Office of the Recorder of said County.
Excepting therefrom the west 1.5 feet of said Lot 2.
Commonly Known As:
1306 N. Bewley Street
Santa Ana, CA
Attachment A
CITY OF SANTA ANA
housing Division
500 West Santa Ana, Blvd., Suite 400
Santa Ana, CA 92702
(7141 667-2250
BID PROPOSAL AND ACCEPTANCE,
For Property Owner
Address 1 8
City S, 4v7ja /4A-1A CSC Phone Number SS¢ GAG/
Contractor's Name.A��/.4.UG�
Address
C i t y
Phone Number �7�¢ col-Sp7�f
Sub Total S
Contractor's Overhead & Profit $
Total Bid
We propose to perform the labor and supply the materials for the
items } i ated n the ttac d spcc f'ca io sheet for the sum of
S
NOTE: It is the responsibility of the contractor to obtain
the necessary permits from th Buildin Safe
Department.
ont for
t I ZS/Ct t
Date
I have reviewed the above proposal and find that the cost of the
work to be done and the cost of the terial to be fu nished are
reasonable.
Date R sid tial Construe ion Specialist
t f 2 �l
Date Property Rehabilita o Supervisor
I have been informer] by the City's Residential C n truction
Specialist of my rights to select a contractor of my choice for
tho rehahi1itAtinn of my property.
I/We, the Owner{s} of the above -named property, due hereby accept
th,iis bid 01'00O.-InI Lo rohabililntiois out property, nubject to loan
approval and execution of formal construction and loan documents,
Owner
SIDPR&AC
9/18/89
Owner
_ _ f-
Date
Attachment B
"Attachment C"
Loan Committment;
Cityof Santa Ana........................................$64,310.00
Attachment C
SECURED BY DEED .OF TRUST
(INSTALLMENT NOTE - INTEREST INCLUDED)
$32 310.0
Escrow No: 88079 A/B
Re:I306 North Bewley „St.
Santa Ana, California
Dated: F vqy,
FOR VALUE RECEIVED, we/I jointly and severally,
promise to pay the City of Santa Ana, a municipal corporation, or
order, at 20 Civic Center Plaza, Santa Ana, California 92701, or
at such other location as the holder hereof may, from time to
time designate, the sum of $ THIRTY-TWO THOUSAND THREE HUNDRED
TEN AND NO 100 - - - ----dollars ($32,310.00 ) with
interest from , 1992 , on unpaid principal at the
rate of five percent 5.001 per annum; principal and interest
payable in installments of $ 5�7 5�51 on the _�_�__ da of each
calendar month, beginning on the day of �e , 1992, and
continuing until the said principal and interest have been paid.
Each payment shall be credited -first on the
interest then due and the remainder on principal; and interest
shall thereupon cease upon the principal so credited. The maker
of this Note promises to pay to the holder hereof a "late" charge
of $10.00 as liquidated damages, and not as a penalty, for each
installment more than ten (10) days in arrears. Upon default in
payment on any installment, the balance of this obligation shall
become due immediately at the option of the holder hereof.
ram`
In the event that the real property which is the
subject of the Deed of Trust securing this Note, or any part
hereof, or any interest therein, is sold, agreed to be sold,
conveyed or alienated by the maker of this Note, or by operation
of law or otherwise, at the option of the holder thereof and
without demand or notice, this obligation shall become due and
payable in full. Consent to one such transaction by the holder
hereof shall not be deemed to be a waiver of the right to require
consent of the holder of this Note to future or successive
transactions.
In the event that it is determined by a court of
competent jurisdiction that the real property which is the
subject of Deed of Trust securing this note is used, maintained
or occupied, by the undersigned or by any other person or
persons, in violation of any provision of any code or ordinance
of the City of Santa Ana, then at the option of the holder hereof
and without demand of notice, this obligation shall become due
and payable in full.
The maker of this Note shall have the right to
prepay this Note in whole or in part without penalty or premium
at any time.
said principal sum shall be payable in lawful
money of the United States of America. If action is instituted
on this Note, the maker of this Note promises to pay such sum as
the court may fix as attorney fees. If this Note is signed by
more than one person, the obligation hereunder of each and all of
the parties signing it is and shall be joint and several.
This Note is secured by a Deed of Trust naming the
City of Santa Ana, a municipal corporation, as Beneficiary and
United States Escrow, a California corporation, as Trustee.
Attachment D
By:
WILLIAM B. CONTENTO, TRUSTEE FOR THE
JOHN DELULIO TRUST DATED
DECEMBER 26, 1986
By:
1306bew.alp
"Attachment E"
Lien Priority:
First Trust Deed
California Federal Savings and Loan................168,000.00
Second Trust Deed
Cityof Santa Ana ................................... 64,310.00
Attachment E
DMF/fm
1/22/91
DEVELOPER certifies that it will comply with:
1. Requirements of Section 3 of the Housing and Urban Development
Act of 1969, as amended by Publ.Law 98-181, Nov. 30, 1983, 40 U.S.C. 4846.
2. Requirements relating to equal employment opportunities, as set
forth in "Attachment B" to this Exhibit II, attached hereto and by this reference
incorporated herein.
3. The Clean Air Act, as amended (42 USC 1857 et sea.), the
Federal Water Pollution Control Ac;t, as amended (33 USC 1251 et sea.), the EPA
regulations in 40 CFR Part 1500, as amended.
4. The Federal Labor Standard, as set forth in the Davis -Bacon
Act, as amended.
5. Requirements forbidding interests of certain Federal officials.
6. Requirements forbidding interests in this agreement by CITY and
local government officials.
7. Other Federal Statutes applicable to projects funded with
Community Development Block Grant Funds, except that (a) DEVELOPER does not
assume CITY's environmental responsibilities described at 24 CFR 570.604; and
(b) DEVELOPER does not assume CITY's responsibility for initiating the review
process under Executive Order 12372.
8. Federal regulations found at 24 CFR Part 87 which provide that
no appropriated funds may be expended by the recipient of a federal contract,
grant, loan or cooperative agreement to pay any person for influencing or
attempting to influence an officer or employee of any agency, member of Congress,
or an officer or employee of a member of Congress in connection with awarding of
any federal contract, the making of any federal grant or loan, entering into any
cooperative agreement and the extension, renewal, amendment or modification of
any federal contract, grant, loan or cooperative agreement. DEVELOPER shall sign
a certification to that effect in a form as set forth in "ATTACHMENT A" attached
hereto and by this reference incorporated herein. DEVELOPER shall submit said
signed certification to CITY prior to performing any of its obligations under
this agreement and prior to any obligation arising on the part of CITY to pay any
sums to DEVELOPER under the terms and conditions of this agreement.
if any funds other than Federal appropriated funds have been paid or
will be paid to any person for influencing or attempting to influence an officer
or employee of any agency, a Member of .Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with this Federal
contract, grant, loan, or cooperative agreement, the undersigned shall complete
and submit "Disclosure Form to Report Lobbying," in accordance with its
instructions, attached hereto to this Exhibit II and designated "Attachment A to
Exhibit II."
9. The prohibition against use of funds provided through this
agreement to pay for entertainment, meals or gifts.
EXHIBIT II
DMF/fm
1/22/91
CERTIFICATION REGARDING LOBBYING
CERTIFICATION FOR CONTRACTS, GRANTS, LOANS
AND COOPERATIVE AGREEMENTS
The undersigned certifies, to the best of his or her knowledge and
belief, that:
(1) No Federal appropriated funds have been paid or will be paid,
by or on behalf of the undersigned, to any person for influencing
or attempting to influence an officer or employee of an agency, a
Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with the awarding of
any Federal contracts, the making of any Federal grant, the making
of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan, or cooperative
agreement.
(2) If any funds other than Federal appropriated funds have been
paid or will be paid to any person for influencing or attempting to
influence an officer or employee of any agency, A Member of
Congress, an officer or employee of Congress, or an employee of a
Member of Congress -in connection with this Federal contract, grant,
loan, or cooperative agreement, the undersigned shall complete and
submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
(3) The undersigned shall require that the language of this
certification be included in the award documents for all subawards
at all taxers (including subcontracts, subgrants and contracts under
grants, loans, and cooperative agreements) and that all
subrecipients shall certify and disclose accordingly.'
This certification is a material representation of fact upon which
reliance was placed when this transaction was made or entered into.
Submission of this certification is a prerequisite for making or
entering into this transaction imposed by 31 U.S..C. 1352. Any
person who fails to file the required certification shall be
subject to a civil penalty of not less than $1.0,000 and not more
than $100,000 for each such failure.
Grantee/Contr'*ctor Organization Program Title
Name of Certifying Official Signature Date
ATTACHMENT A TO EXHIBIT II
DMF/ fm
1/22/91
NON-DISCRIMINATION
A. DEVELOPER shall not discriminate against any
employee or applicant for employment because of race, color,
religion, sex, national origin, age or handicap. DEVELOPER shall
take affirmative action to insure that applicants are employed, and
that employees are treated during employment, without regard to
their race, color, religion, sex, national origin, age or handicap.
DEVELOPER shall take affirmative action to insure that applicants
are employed, and that employees are treated during employment,
without regard to their race, color, religion, sex, national
origin, age or handicap. Such action shall include, but not be
limited to, the following: employment, upgrading, demotion or
transfer, recruitment or recruitment advertising, layoff or
termination, rate of pay or other forms of compensation and
selection for training including apprenticeship. DEVELOPER agrees
to post inconspicuous places available to employees and applicants
for employment, notice setting forth the provisions of this non-
discrimination clause.
B. DEVELOPER shall in all solicitations or advertise-
ments for employees placed by or on behalf of DEVELOPER, state that
all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, national origin, age
or handicap.
C. DEVELOPER shall send to each labor union, or
representative of workers with which it has a collective bargaining
agreement or other contract or understanding, a notice to be
provided by CITY's contracting officers, advising the labor union
or workers' representative of DEVELOPER'S commitments under Section
202 of Executive Order No. 11246 of September 24, 1965, available
to employees and applicants for employment.
D. DEVELOPER shall comply with all provisions of
Executive Order No. 11246 of September 24, 1965, and of the rules,
regulations, and relevant orders of the Secretary of Labor.
E. DEVELOPER shall furnish all information and reports
required by Executive Order No. 11246 of September 24, 1965, and by
the rules, regulations and orders, and shall permit access to its
books, records and accounts by CITY and the Secretary of Labor for
purposes of investigation to ascertain compliance with such rules
and regulations.
ATTACHMENT B TO EXHIBIT II
Page 1 of 2 Pages
F. In the event of DEVELOPER's noncompliance with the
nondiscrimination clauses of this agreement or with any of such
rules, regulations, or orders, this agreement may be canceled,
terminated, or suspended in whole or in part and DEVELOPER may be
declared ineligible for further government contracts in accordance
with procedures authorized in Executive Order No. 11246 of
September 24, 1965, and such other sanctions as may be imposed and
remedies invoked as provided in Executive Order No. 1.1.246 of
September 24, 1965, or by rule, regulation, or order of the
Secretary of Labor, or as otherwise provided by law.
G. DEVELOPER shall include the provisions of Paragraph
A through G in every subcontract or purchase order unless exempted
by rules, regulations, or order of the Secretary of Labor issued
pursuant to Section 204 of Executive Order No. 11246 of Septem-
ber 24, 1965, so that such provisions will be binding upon each
subcontractor or vendor. DEVELOPER shall take such action with
respect to any subcontract or purchase order as the contracting
agency may direct as a means of enforcing such provisions including
sanctions for non-compliance: provided, however, that in the event
DEVELOPER becomes involved in, or is threatened with, litigation
with subcontractor or vendor as a result of such direction by the
contracting agency, DEVELOPER may request the United States to
enter into such litigation to protect the interests of the United
States.
H. DEVELOPER, shall not discriminate on the basis of
age in violation of any provision of the Age Discrimination Act of
1975, 42 U.S.C. Section 6101 et gM., or with respect to any
otherwise qualified handicapped individual as provided in Section
504 of the Rehabilitation Act of 1973, 29 U.S.C. Section 794.
ATTACHMENT B TO EXHIBIT II
Page 2 of 2 Pages
Recording Requested By: 1./21/92
City of Santa Ana
When Recorded Mail to:
City of Santa Ana
Housing Division M-27
20 Civic Center Plaza
Santa Ana, California 92701
DECLARATION OF RESTRICTIONS
This Declaration of Restrictions made this o�io day of
FA)6Y'v A ►' 19 Ct 4► TohrL �p_lvl h `[
hereinafter referred to as "Declarant."
WHEREAS, Declarant is the' owner of the following described
real property in the City of Santa Ana, County of Orange, State of
California:
LOT 2 OF TRACT NO. 5695, AS PER MAP THEREOF RECORDED"IN BOOK 208,
PAGES 39 AND 40 OF MISCELLANEOUS MAPS AND RECORDS IN THE OFFICE
OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPTING THEREFROM THE
WEST 1.5 FEET OF SAID LOT 2.
AKA: 1.30'6 NORTH BEWLEY STREET, SANTA ANA, CA 92703
NOW, THEREFORE, Declarant declares that said real property
shall be held, transferred, encumbered, used, sold,conveyed,
leased, and occupied, subject to the covenants and restrictions
hereinafter set forth expressly and exclusively for the use and
benefit of said property and of each and every person or entity who
now or in the future owns any portion or portions of said real
property.
I. The real property shall remain in the private ownership
of Declarant and in primarily residential rental, use for a period
of at least ten (10) years, unless said real property is sold to
another private owner who agrees to continue to manage the property
in accordance with requirements of the U.S. Department of Housing
and Urban Redevelopment for its rental rehabilitation program
("HUD-RRP") for the remainder of said ten (10) year period, or a
hardship exceptions approved in writing by City for reasons that
occur after completion of the rehabilitation.
2. Declarant shall not convert the residential units in the
rehabilitated real property to condominium ownership or any form of
cooperative ownership not eligible for assistance of HUD-RRP for at
least a ten-year period.
EXHIBIT E
Page 1 of 2 Pages
u
3. Declarant agrees not to discriminate against prospective
tenants for at least ten (10) years on the basis of their receipt
of, or eligibility for, housing assistance under any federal, state
or local housing assistance program, or except for a housing
project for elderly persons, on the basis that the prospective
tenants have a minor child or children who will be residing with
them.
4. Declarant agrees to comply with the nondiscrimination and
equal opportunity requirements and with the affirmative marketing
requirements and procedures found at 24 CFR 511.13 for seven (7)
years.
5. The invalidation of any one of these covenants by
judgment or court order shall in no way affect any of the other
provisions contained herein, and the other covenants shall remain
in full force and effect.
IN WITNESS WHEREOF, Declarant has executed this
Declaration of Restrictions the day and year first above -written.
EXHIBIT E
, Page 2 of 2 Pages
PROMISSORY NOTE 1/31/92
SECURED BY DEED OF TRUST
$ 3 , 1>no - _ Ref: 13oG q.'j�EwL6r
Santa Ana, California
Dated: F*06!'ugri �b Lq,qo)-
FOR VALUE RECEIVED, We/I jointly and severally, promise to pay
the City of Santa Ana, a municipal corporation of the State of
California or order, at 20 Civic Center Plaza, P. O. Box 1988,
Santa Ana, California 92702, or at such other location as the
holder hereof may, from time to time, designate, the sum of
Dollars ($ _), (amount of grant) pursuant to that
certain agreement between the City of Santa Ana and the maker (s ) of
this note., which said agreement is incorporated herein as
"Exhibit i" and made a part hereof by this reference.
In the event that the real property which is the subject of
the Deed of Trust securing this Note, or any part -thereof, or any
interest therein, is sold, agreed to be sold, conveyed or alienated
by the maker(s) of this Note in violation of the terms of said
agreement set forth in Exhibit 1, or by operation of law or
otherwise, this obligation shall become due and payable in full
less 10% for each full year after completion of the project.
The holder of this Note may, at its option, accelerate the
maturity of this Note upon the occurrence of any of the following
EXHIBIT F
Page 1 of 2 Pages
A
Postal Service for mailing, postage prepaid, registered or
certified mail, return receipt requested, to the address of the
other party as stated in this paragraph, and shall be deemed given
at the time of personal delivery or at the time of deposit for
mailing. Either party may change its address for notice by giving
written notice thereof to the other party as provided above.
City: City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92701
Developer: W i\\ c 9
(A ado
5.08. Recordation
Upon issuance of building permits for the Project, this
Agreement shall be recorded in the Official Records of Orange
County, California. Developer agrees to execute and deliver for
recordation such additional documents or instruments as the other
may reasonably request to further confirm or acknowledge the
provisions hereof, including the expiration of the low or moderate
income tenant rental period.
5.09. Date of Agreement
This agreement shall be dated as of the date of its approval
by the City.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement the date and year first above wr-tten.
City of Sant, a;
i By -L L'�Yry• �-.
s City Manager
David N. Ream
LOVED AS TO FORM:
Developer
r Mara IT. oo r
Lty Attorney
Trustee, of the John. Delulio Trust dated
December 26, 1986
Page 10 of 10 Pages
EXHIBIT I