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HomeMy WebLinkAboutHABITAT FOR HUMANITY OF ORANGE COUNTY -20161 , • T DENSITY BONUS HOUSING AGREEMENT THIS DENSITY BONUS HOUSING AGREEMENT (the "Agreement) is hereby entered into as of this 19th day of January, 2016, by and between HABITAT FOR HUMANITY OF ORANGE COUNTY, a California nonprofit public benefit corporation ( "Developer ") and the CITY OF SANTA ANA, a charter city and municipal corporation ( "City ") RECITALS A. Developer is the fee title absolute owner of certain real property within the City of Santa Ana, County of Orange, State of California commonly known as 4010 -4028 West McFadden Avenue and legally described in Attachment No. I hereto which is incorporated herein by this reference (the "Property"). B. Section 41 -1600 et seq. of the Santa Ana Municipal Code and section 65915 et, seq. of the California Government Code set forth a process to ,provide increased residential densities to property owners who guarantee that a portion of their residential development will be available to low income, very low-income, or senior (also known as "qualified ") households. These regulations are intended to materially assist the housing industry in providing adequate and affordable shelter for all economic segments of the community and to provide a balance of housing opportunities for low income, very low- income, and senior households throughout the city. C. Developer is proposing to the City to develop five residential for -sale, condominium units on the Property (the "Project "), as more particularly set forth in Tentative Tract Map No. 2015 -04 (County Map No. 17715), Density Bonus Application No. 2015 -01, Environmental Review No. 2014 -1.2, and Development Plan Review No. DP 2014 -7. D. The parties hereto desire by this Agreement for Developer to agree to hold and convey one (1) unit within the Project (the "Affordable Unit ") to a Low Income Household, and in return for the City to agree to provide for additional units beyond that which is allowed pursuant to the City's General Plan together with other concessions to Developer. Section 41- 1602 of the Municipal Code referenced above, require such agreement to be the subject of a density bonus housing agreement. B. In light of the purpose of the City and State density bonus law, and the express provisions of section 65915(n), the City has determined to grant Developer's application for a density bonus and related concessions and waivers. F. In addition to the density bonus granted to Developer, the Project has been granted waivers and concessions of City development standards including (i) reduction of minimum lot size for five (5) units from 30,000 to 26,180 feet, and (ii) increasing the number of attached units in the A -1 zone from 4 units to 5 units. NOW, THEREFORE, Developer and City hereby agree as follows: 1. Definitions. The following terms which are used herein shall have the following definitions: "Affordable Housing Cost" means a price which is established at a level which ensures that the monthly housing costs of (a) any Low Income Household purchaser which earns not greater than eighty percent (80 %) of the Area Median Income adjusted for household size, does not exceed the product of thirty percent (30 %) multiplied by seventy percent (70 %) of the Area Median Income adjusted for Household Size Appropriate to the Unit, and (b) any Low Income Household purchaser which earns not less than seventy percent (70 %) or more than eighty percent (80 %) of Area Median Income adjusted for household size, the payment of which does not exceed thirty percent (30 %) of the gross income of such purchaser. Such housing costs (including mortgage payments, a reasonable utility allowance and similar costs) shall not exceed the maximum amount applicable to lower income households pursuant to California Health and Safety Code section 50052.5. Such housing costs (including mortgage payments, a reasonable utility allowance and similar costs) shall not exceed the maximum amount applicable to low income households pursuant to California Health and Safety Code Section 50052.5(b)(3). "Affordable Unit" is defined in Recital D of this Agreement. "Agreement" means this Density Housing Bonus Agreement between the City and the Developer. "Area Median Income" means the median income figures for Orange County adopted by the State of California pursuant to Health and Safety Code section 50093, as amended from time to time. "City" means the City of Santa Ana, a charter city and municipal corporation. "Household Size Appropriate for Unit" for the purpose of determining Affordable Housing Cost only, means three persons for a two bedroom Affordable Unit and four persons for a three bedroom Affordable Unit. Household Size Appropriate for Unit is not intended to constitute a limitation on the number of persons who may live in the Unit. "Low Income Household" shall mean a person and family whose income does not exceed the qualifying limits for lower income families in Orange County as established by the State of California pursuant to Health and Safety Code section 50079.5, as such qualifying limit is amended from time to time. "Developer" shall mean Habitat for Humanity of Orange County, a California nonprofit public benefit corporation. "Project" means the construction of five (5) for -sale condominium units, including one (1) Affordable Unit, the sale thereof to a qualified purchaser of the Affordable Unit at an Affordable Housing Cost and any other activities undertaken in connection therewith. 2. Provision of Affordable Ownership Housing. One for -sale, condominium residential unit which is required to be developed as part of the Project shall be sold to a Low Income Household at the pricing set forth in paragraph 3 hereof. 3. Maximum Sales Price. Developer covenants and agrees that the Affordable Unit shall be sold at no more than the Affordable Housing Cost to a Low Income Household. 4. Selection of Buyer. Developer shall be responsible for the selection of buyer for the Affordable Unit in compliance with the criteria set forth in paragraph 5 of this Agreement. Developer shall develop a plan for the marketing of the homes and the selection of buyers of the Affordable Unit, consistent with California housing law. Such marketing plan shall be submitted to the City for its reasonable approval, and Developer shall carry out the marketing in accordance with such approved plan. Developer covenants and agrees that no sales of Affordable Unit shall be made to any person or family related, within the fourth (4th) degree of consanguinity, to Developer or to any member, shareholder or partner of Developer, or anyone related by blood or marriage to any such shareholder or partner; provided, however, that the foregoing shall not prevent the sale of the Affordable Unit to an employee of Developer who is otherwise unrelated to any member, shareholder or partner of the Developer provided such employee otherwise meets the requirements set forth in this Agreement for the sale of the Affordable Unit. 5. Income of Buyers. Developer shall, upon execution of this Agreement, prepare and submit to the City for review and approval, which shall not be unreasonably withheld, a marketing plan for prospective buyers of the Affordable Unit. Based upon the marketing plan, Developer shall prepare and keep a written list of prospective buyers for the Affordable Unit. No later than ninety (90) days before the Affordable Unit is ready for occupancy, Developer shall contact all persons or families on the list and ask each to submit a income computation and certification form; provided, however, that City and Developer shall cooperate to determine terms and conditions under which buyers may pre - qualify to purchase an Affordable Unit. As early as practicable, but at least sixty (60) days prior to the sale of the Affordable Unit, the Developer shall submit to City a completed income computation and certification form signed by the prospective buyer under penalty of perjury, in such form as may be provided by City for each prospective buyer, together with all information it has reviewed and considered in its selection process (the "Notice of Intended Sale "). City shall have ten (10) working days to approve or reject the Notice of Intended Sale. City's decision shall be final. For each buyer approved by the City, Developer shall use its best efforts to provide and cause, a true and correct copy of the complete lender's package shall be submitted to the City at the time of submission to the prospective lender, for City confirmation of income status. The lender's package submitted to the City shall be a true and correct copy of the complete package submitted by the unit's buyer to the prospective lender. City shall complete its review of the complete lender's package within fourteen (14) working days. Developer shall and hereby does covenant that no sale shall be made of the Affordable Unit unless and until the City has issued a certificate approving that the proposed buyer qualifies as a Low Income household. In the event a sale is made in violation of the terms of this Agreement or false or misleading statements are made in any documents submitted to the City, the City shall have the right to file an appropriate action at law or in equity unless Developer substitutes another otherwise qualifying unit as the Affordable Unit. In the event that Developer fails to comply with this provision, costs, liabilities and obligations incurred by Developer and the buyer of the Affordable Unit for the return of any monies paid or received or for any costs and legal expenses shall be borne jointly and severally by the Developer and the buyer and such parties shall hold the City harmless and reimburse its costs and expenses, including attorneys' fees. Gross income shall be determined in accordance with Section 8 guidelines and California Health and Safety Code section 50093 (together with interpreting Regulations). Developer shall obtain a certification from each buyer purchasing an Affordable Unit demonstrating that such buyer is a Low Income Household and meets the eligibility requirements established for the Affordable Unit. Developer shall verify the income certification of the proposed buyer as set forth below. Developer shall verify the income of each proposed purchaser of the Affordable Unit by at least one of the following methods as appropriate to the proposed purchaser: a. obtain two (2) paycheck stubs from the prospective buyers' two (2) most recent pay periods. b. obtain a true copy of the last two income tax returns from the prospective buyers for the last two (2) tax years in which a return was filed. C. obtain an income verification certification from the employer of the prospective buyers. d. obtain an income verification certification from the Social Security Administration and /or the California Department of Social Services if the prospective buyers receive assistance from such agencies. e. obtain an alternate form of income verification reasonably acceptable to the City, if none of the above forms of verification is available to the Developer. f. City may reasonably request additional information regarding the buyer and /or the proposed transaction as is already in the custody of Developer, and Developer shall provide such information as soon as is practicable. 6. Non - Discrimination Covenant. Developer, on behalf of itself and its successors and assigns, herein covenants by and for itself, its successors and assigns, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 1.2926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land. Notwithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph. All deeds, leases or contracts entered into by Developer relating to the Affordable Unit shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: a. In deeds: "The grantee herein covenants by and for himself or herself, his or her 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 any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land. "Notwithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph." b. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, 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, sublessees, subtenants, or vendees in the premises herein leased. "Notwithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens, Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph." C. In contracts: "There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926, 1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this Agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." "Notwithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph." d. The foregoing covenants shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City, its successors and assigns, any occupants of the Affordable Unit, and any successor in interest to the Affordable Unit. The covenants against discrimination shall remain in effect in perpetuity. In no event shall anything in this paragraph 6 be construed as authority to lease the Affordable Unit. Notice of Resale Restrictions and Declaration of Conditions, Covenants and Restrictions. a. The parties agree and acknowledge that Attachment No. 2 to this Agreement shall be executed by Developer and recorded prior to City approval of the final map for this Project. b. The parties agree and acknowledge that Attachment No. 2 to this Agreement is intended and shall be interpreted to restrict the use of the unit to owner - occupancy, and shall restrict subsequent resales of the Affordable Unit to Low Income Households, at an Affordable Housing Cost, who agree to occupy the Affordable Unit as their principal place of residency; and that this restriction shall continue to apply to the Affordable Unit until the forty - fifth (45th) anniversary of the issuance of a Certificate of Occupancy by Santa Ana for the Affordable Unit. C. The parties further agree and acknowledge that this Agreement is intended and shall be interpreted to provide that, for purposes of this Agreement, an individual or family who qualifies as a Low Income Household at the time he or she or they first takes title to the Affordable Unit shall be deemed a Low Income Household so long as he or she or they continue to hold title to such Affordable Unit even if the Low Income Household subsequently ceases to meet the income or other requirements of a Low Income Household; and that when the owner of an Affordable Unit releases title to an Affordable Unit, such unit shall be deemed as occupied by a Low Income Household if it is held vacant and available for such occupancy until title is transferred to another Low Income Household pursuant to this Agreement. 8. Indemnity a. The parties agree that City neither undertakes nor assumes any responsibility to review, inspect, supervise, approve or inform Developer of any matter in connection with the construction of the Project, including matters relating to contractors, subcontractors and materialmen, or the workmanship of or materials used by any of them, and Developer shall entirely on its own judgment with respect to such matters and acknowledges that any review, inspection, supervision, approval or information supplied to Developer by City in connection with such matters is solely for the protection of City and neither Developer nor any third party is entitled to rely upon it. b. The parties agree and acknowledge that City is not a partner, joint venturer, alter -ego, manager, controlling person or other business associate or participant of any kind with Developer and that City does not intend to ever assume such status. C. The parties agree and acknowledge that City's activities in connection with the Affordable Unit or the Project shall not be "outside the scope of activities of a lender of money" within the meaning of California Civil Code section 3434, as amended from time to time, and City does not intend nor shall this Agreement be interpreted to imply that the City has assumed any responsibility to any person for the quality or safety of the Affordable Unit or the Project. d. The parties agree and acknowledge that City shall not be deemed responsible for, or participant in any acts, omissions or decisions of Developer. e. The parties agree and acknowledge that City shall not be directly or indirectly liable or responsible for any loss or injury of any kind to any person or property arising from any construction on, or occupancy of, the Affordable Unit or the Project, whether alleged to arise from: i, any defect in any building, grading, landscaping, or other onsite or offsite improvements constructed by Developer; ii. any act or omission of Developer or of any of Developer's agents, employees, independent contractors, licensees, invitees or volunteers; or any accidents relating to the Affordable Unit or Project or any fire or other casualty or hazard thereon. f. Developer agrees to guarantee its work from defects for a period of at least one (1) year after construction is complete, with a five (5) year guarantee for the roof of each unit. Developer shall provide the buyer of the Affordable Unit with all of the manufacturer's warranties and product information. Developer shall also provide the buyer of the Affordable Unit with a commercially reasonable Homeowner Protection Plan. g. Developer agrees to and shall indemnify and hold harmless City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including health, and claims for property damage, which may arise from or relating to (i) Developer's obligations of actions undertaken pursuant to this Agreement; ( ii) a claim, demand or other cause of action that any person has or asserts against Developer; ( iii) any act or omission of Developer or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which relates to the Affordable Unit or the Project; or ( iv) the Developer's initial sale of the Affordable Unit or Project, except to the extent such matters are caused by the negligence or willful misconduct of City or its officers, employees, agents, consultants, special counsel or representatives. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this paragraph or by reason of the terms of, or effects, arising from this Agreement. The Developer further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs to the extent there is no conflict of interest, Developer should be allowed to use the legal counsel which is also representing Developer for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Developer's obligations under this paragraph shall survive the termination of this Agreement. 9. Compliance with Laws. a. Except as set forth expressly herein, the Developer shall carry out the design and construction of the Project in conformity with all applicable laws, including all applicable state labor standards, the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City of Santa Ana Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act. 42 U.S.C. section 12101, et seq., Government Code section 4450, et seq. b. During the time of Developer's ownership of the Property, the Developer shall maintain the Property and all improvements thereon, including all landscaping, in compliance with the terms of all applicable provisions of the City of Santa Ana Municipal Code. Each homeowner shall be responsible for maintenance of their own property after transfer of title. 10. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of Developer and the City of Santa Ana and their respective successors and assigns. 11. Governing Law. This Agreement has been entered into, is to be performed entirely within, and shall be governed by and construed in accordance with the laws of the State of California. 12. Further Assurances. Each party hereto covenants and agrees to perform all acts and things, and to prepare, execute, and deliver such written agreements, documents, and instruments as may be reasonably necessary to carry out the terms and provisions of this Agreement. 13. No Third Parties Benefited. This Agreement is made for the purposes of setting forth rights and obligations of Developer and the City of Santa Ana, and no other person shall have any rights hereunder or by reason hereof. 14. Notices. Any notice which a party may desire to give to the other party under this Agreement must be in writing and may be given by first class mail, postage prepaid, personal delivery or reputable overnight delivery service, addressed to the party to whom the notice is directed as set forth below, or at any other address as that party may later designate by notice. To City: City of Santa Ana 20 Civic Center Plaza, M -26 Santa Ana, California 92701 Attention: Housing Manager To Developer: Habitat for Humanity of Orange County 2200 S. Ritchey Street Santa Ana, CA 92705 Attention: Mark Korando Any written notice, demand or communication shall be deemed received upon delivery or refusal to accept delivery if delivered by hand, shall be deemed delivered on the next business day if delivered by reputable overnight delivery service, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 15. Non - Discrimination in Employment. In performing its obligations under this Agreement, Developer shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other related activities. Developer affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations 16. No Conflict of Interest. No member, official or employee of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is, directly or indirectly, interested. 17. Nonliability of Santa Ana Officials and Employees. No member, official or employee of the City of Santa Ana shall be personally liable to the Developer, or any successor -in- interest, in the event of any default or breach by the City or for any amount which may become due to Developer or to its successor, or on any obligation under the terms of this Agreement. 18. Effective Date of Agreement. This Agreement shall be dated and effective as of the date of the action by the City when it approves this Agreement. 19. Entirety of Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the matters contained herein. None of the terms, covenants, agreements or conditions set forth in this Agreement shall be deemed to be merged with any grant deed conveying title to the Property, and this Agreement shall continue in full force and effect before and after such conveyance. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of City and the Developer, and all amendments hereto must be in writing and signed by the appropriate authorities of City and the Developer. 20. Legal Advice. Each party represents and warrants to the other the following: they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise. 21. Time of Essence. Time is expressly made of the essence with respect to the performance by the City and the Developer of each and every obligation and condition of this Agreement. 22. Cooperation. Each party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements. (Signatures on page below) 10 NOW, THEREFORE, the parties hereto have executed this Agreement as of the date set forth above. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: d- Ck��� -� • i... Lisa Storck Assistant City Attorney HABITAT FOR HUMANITY OF ORANGE COUNTY, a California Nonprofit Public Benefit Corporation By: 4 MARK KORANDO, Senior Vice President CITY OF SANTA ANA a charter city and municipal corporation David Cavazos City Manager 11 ATTACHMENT NO. 1 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SANTA ANA, AND IS DESCRIBED AS FOLLOWS: PARCEL 13: PARCEL 13A: (APN 108 - 601 -24) A PORTION OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12, MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 16; THENCE SOUTH 89 32'50" WEST 837.09 FEET ALONG THE NORTH LINE OF SAID SECTION 16 TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 0 °40'35" EAST 158.00 FEET PARALLEL TO THE WEST LINE OF SAID NORTHEAST QUARTER; THENCE SOUTH 89 32'50" WEST 22.00 FEET PARALLEL TO THE NORTH LINE OF SAID SECTION 16; THENCE NORTH 00 °40'35" WEST 158.00 FEET PARALLEL TO THE WEST LINE OF SAID NORTHEAST QUARTER TO A POINT ON THE NORTH LINE OF SAID SECTION 16; THENCE NORTH 89 32'50" EAST 22.00 FEET ALONG SAID NORTH LINE TO THE TRUE POINT OF BEGINNING. PARCEL NO. 13B: (APN 108- 601 -25) THE NORTH 175.00 FEET OF THE EAST 132.00 FEET OF THE WEST 7 ACRES OF THE NORTH ONE -HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 14: (APN 108 - 601 -04) THE EAST 88.73 FEET OF THE WEST 163.73 FEET OF THE NORTH 120 FEET OF THE WEST 7 ACRES OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN. PARCEL 15: (APN 108 - 601 -05) THE WEST 75 FEET OF THE NORTH 120 FEET OF THE FOLLOWING DESCRIBED PROPERTY: THE WEST 7 ACRES OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE 12 SOUTHEAST QUARTER OF SECTION 16, IN TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN. EXCEPTING THEREFROM ALL WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. PARCEL 16: (APN 108- 601 -03) THE WEST 7, ACRES OF THE NORTH 112 OF THE NORTHEAST 114 OF THE SOUTHEAST 114 OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE & MERIDIAN, AS SHOWN ON THE OFFICIAL PLAT THEREOF. EXCEPT THEREFROM THE NORTH 175 FEET OF THE EAST 132 FEET THEREOF ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND CONVEYED IN THE DEED TO JOHN MAGARRO, JR. AND WIFE, RECORDED October 19, 1956 IN BOOK 3683, PAGE 418 OF OFFICIAL RECORDS. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND CONVEYED IN THE DEED TO JOHN N. SCHUMAKER AND WIFE, RECORDED January 9, 1957 IN BOOK 3765, OF PAGE 31 OF OFFICIAL RECORDS. ALSO EXCEPT THEREFROM ANY PORTION LYING WITHIN TRACT NO. 4548, AS PER MAP FIELD IN BOOK 170, PAGES 45 AND 46, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. SAID LAND IS ALSO SHOWN ON THAT CERTAIN "CERTIFICATE OF APPROVAL OF LOT LINE ADJUSTMENT NO. LL- 78 -3 ", WHICH RECORDED June 15, 1978 AS INSTRUMENT NO. 21947 OF OFFICIAL RECORDS. 13 ATTACHMENT NO.2 City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 Attention: Clerk of the Council NOTICE OF RESALE RESTRICTIONS AND DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY THIS NOTICE OF RESALE RESTRICTIONS AND DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration ") is hereby made as of this 19th day of Janes, 2016, by and between HABITAT FOR HUMANITY OF ORANGE COUNTY, a California nonprofit public benefit corporation ( "Covenantor "); and the CITY OF SANTA ANA, a charter city ( "City" or "Covenantee ") RECITALS A. Covenantor is the fee title absolute owner of certain real property within the City of Santa Ana, County of Orange, State of California commonly known as 4010 -4028 West McFadden Avenue and legally described in Exhibit A hereto which is incorporated herein by this reference (the "Property "). B. On January 19, 2016, the City Council of the City approved a Density Housing Bonus Agreement with Covenantor and Tentative Tract Map No. TTM 2015 -04 (County TTM No. 17715. The City imposed conditions of approval on Covenantor to agree to the execution of the Density Housing Bonus Agreement and to execute and record these Declaration to provide that 20% of the total number of units to be constructed by Covenantor on the Property, or one (1) unit to be for -sale, condominium affordable housing for low income households, as defined in California Health and Safety Code (H &SC) sections 50079.5, 50105 and 50106. NOW THEREFORE, the parties hereto agree and covenant as follows: 1. Affordability Covenant. Covenantor agrees for itself and its successor and assigns, and for every successor to Covenanter's interest in the affordable unit, or any part thereto, that the property located at 4010 -4028 W. McFadden Avenue, Santa Ana, California, shall include one (1) unit that shall be designated as affordable for low income households and shall be held subject to this Declaration for forty -five (45) years from the date of City issuance of a Notice of Completion for said unit, as follows: 14 a. The affordable unit shall only be owned and occupied by "Low Income Households" which shall mean persons or families earning not more than eighty percent (80 %) or less of the Orange County median income, adjusted for household size appropriate for the unit as determined by the City based on statistics published by the United States Department of Housing & Urban Development or established by the State of California pursuant to Health & Safety Code section 50093, or successor statute. b. The affordable unit shall only be sold at an "Affordable Housing Cost" to Low Income Households. Affordable Housing Cost shall be the permitted gross sales price of the unit as established by the City, upon request of the Covenantor or owner of the affordable unit. C. The term of this agreement shall commence on the date this Declaration is recorded with the Recorder's Office of the County of Orange and shall continue for forty-five (45) years from the date a Notice of Completion is issued by the City ( "Affordability Period "). d. The covenant contained in this Section I shall run with the affordable unit and shall automatically terminate and be of no further force and effect upon the expiration of the Affordability Period. 2. Transfer of Affordable Unit. No transfer of the affordable unit shall occur until the Covenantee determines (a) that the prospective purchaser intends to occupy the affordable unit as the proposed purchaser's principal residence, (b) that the proposed purchaser qualifies as a Low Income Household, and (c) that the proposed transfer will occur at an Affordable Housing Cost. In the event that Covenantor, including successors and assigns, desires to sell the unit, Covenantor shall send written notice thereof to the Covenantee at the following addresses: To City: City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92701 Attention: Clerk of the Council a. Within ten (10) days of such notice, the Covenantor, or its successor and assigns, shall submit to Covenantee a transfer application. Such transfer application shall include (a) a certification of the proposed purchaser's intent to occupy the affordable unit as the proposed purchaser's principal residence, (b) a certification to demonstrate that the purchaser qualifies as a Low Income Household, and (c) an affidavit disclosing that the proposed purchase price is equal to or less than the Affordable Housing Cost, and (d) a disclosure statement executed by the proposed purchaser which certifies that the proposed purchaser may only sell the unit at an Affordable Housing Cost to a Low Income Household, that the maximum permitted sales price may be less than fair market value of the affordable unit, and that the affordable unit must be owner - occupied at all times and shall not be rented or leased. If Covenantee has pre- existing forms regarding such certifications and affidavits, such forms shall be used by Covenantor. b. Covenantor, or its successor and assigns, shall cooperate with Covenantee in providing such forms to the prospective purchaser and assisting prospective purchasers to prepare such forms and provide such required information to the Covenantee. C. The Covenantee shall review and approve the transfer only if it finds that the Covenantor (and proposed purchaser) have submitted all such forms necessary to make the determinations required pursuant to Section 1 of this Declaration. The City shall endeavor to make 15 such determination within fourteen (14) days from the submission of the completed forms. If the Covenantee fails to approve or disapprove a submission within such fourteen (14) day period, the Covenantee shall be deemed to have denied such transfer. THE COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF THE COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER, AND ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED UNDER THIS DECLARATION MAY BE LES THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS DECLARATION. EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE COVENANTEE AND THIS DECLARATION IS TO PROVIDE HOUSING TO LOW INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. Covenantor 3. Subsequent Covenants. Covenantor, and its successor and assigns, shall include in the escrow instructions and Purchase and Sale Agreements with subsequent purchasers a provision which requires each subsequent purchaser to record a covenant which will run with the land and bind all successors -in- interest or assignees that will ensure that all subsequent buyers and occupants quality as Low Income Households. Said covenant(s) shall remain in full force and effect for the Affordability Period set forth in Section 1 of this Declaration. 4 Annual Monitoring. Throughout the term of this Agreement, Covenantor, and its successor and assigns, shall comply with all applicable record keeping and monitoring requirements established by California law and this Agreement. Covenantor, and its successor and assigns, shall cooperate with the City's monitoring requirements established in accordance with California law. 5. Non - Discrimination Covenant. Covenantor, on behalf of itself and its successors and assigns, covenants and agrees that there shall be no discrimination against or segregation of any, nor shall Covenantor itself or any person claiming under or through 16 Covenantor permit any such practice or practices of discrimination or segregation with reference to the selection, location, number or use of the affordable unit. Covenantor shall include in each grant deed for the affordable unit a provision substantially similar to the following: "The grantee herein covenants by and for itself, its successors 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, religion, sex or gender, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property herein conveyed, nor shall the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the property herein conveyed. The foregoing covenants shall run with the land. 6. Covenants Do Not Impair Lien. No violation or breach of this Declaration shall defeat or render invalid or in any way impair any lien or charge of any mortgage or deed of trust or security agreement recorded against the Property. 7. Covenants for Benefit of Covenantee. This Declaration and all covenants contained herein without regard to technical classification shall be binding for the benefit of Covenantee and such covenants shall run in favor of Covenantee for the entire period during which time such covenants shall be in full force and effect. S. Governing Law. This Agreement has been entered into, is to be performed entirely within, and shall be governed by and construed in accordance with the laws of the State of California. (Signatures commence on next page) 17 NOW, THEREFORE, the parties hereto have executed this Agreement as of the date set forth above. COVENANTOR: HABITAT FOR HUMANITY OF ORANGE COUNTY, a California Nonprofit Public Benefit Corporation By. I I "`, MARK KORANDO, Senior Vice President CITY OF SANTA ANA, a charter city ATTEST: Maria D. Huizar David Cavazos Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Lisa Storck Assistant City Attorney 18 EXHIBIT "A" LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SANTA ANA, AND IS DESCRIBED AS FOLLOWS: PARCEL 13: PARCEL 13A: (APN 108 - 601 -24) A PORTION OF TIE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12, MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 16; THENCE SOUTH 89 32'50" WEST 837.09 FEET ALONG THE NORTH LINE OF SAID SECTION 16 TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 0 °40'35" EAST 158.00 FEET PARALLEL TO THE WEST LINE OF SAID NORTHEAST QUARTER; THENCE SOUTH 89 32'50" WEST 22.00 FEET PARALLEL TO THE NORTH LINE OF SAID SECTION 16; THENCE NORTH 00 °40'35" WEST 158.00 FEET PARALLEL TO THE WEST LINE OF SAID NORTHEAST QUARTER TO A POINT ON THE NORTH LINE OF SAID SECTION 16; THENCE NORTH 89 32'50" EAST 22.00 FEET ALONG SAID NORTH LINE TO THE TRUE POINT OF BEGINNING. PARCEL NO. 1313: (APN 108 - 601 -25) THE NORTH 175.00 FEET OF THE EAST 132.00 FEET OF THE WEST 7 ACRES OF THE NORTH ONE -HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 14: (APN 108 - 601 -04) THE EAST 88.73 FEET OF THE WEST 163.73 FEET OF THE NORTH 120 FEET OF THE WEST 7 ACRES OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN. PARCEL 15: (APN 108 - 601 -05) THE WEST 75 FEET OF THE NORTH 120 FEET OF THE FOLLOWING DESCRIBED PROPERTY: THE WEST 7 ACRES OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, IN TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN. 19 EXCEPTING THEREFROM ALL WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. PARCEL 16: (APN 108 - 601 -03) THE WEST 7, ACRES OF THE NORTH 112 OF THE NORTHEAST 114 OF THE SOUTHEAST 114 OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE & MERIDIAN, AS SHOWN ON THE OFFICIAL PLAT THEREOF. EXCEPT THEREFROM THE NORTH 175 FEET OF THE EAST 132 FEET THEREOF ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND CONVEYED IN THE DEED TO JOHN MAGARRO, JR. AND WIFE, RECORDED October 19, 1956 IN BOOK 3683, PAGE 418 OF OFFICIAL RECORDS. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND CONVEYED IN THE DEED TO JOHN N. SCHUMAKER AND WIFE, RECORDED January 9, 1957 IN BOOK 3765, OF PAGE 31 OF OFFICIAL RECORDS. ALSO EXCEPT THEREFROM ANY PORTION LYING WITHIN TRACT NO. 4548, AS PER MAP FIELD IN BOOK 170, PAGES 45 AND 46, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID LAND IS ALSO SHOWN ON THAT CERTAIN "CERTIFICATE OF APPROVAL OF LOT LINE ADJUSTMENT NO. LL- 78 -3 ", WHICH RECORDED June 15, 1978 AS INSTRUMENT NO. 21947 OF OFFICIAL RECORDS. 20 FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 & 6103 City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Recorded in Official Records, Orange County Hugh Nguyen, Clerk-gRecorder NO FEE *$ R 0 0 0 9 1 9 1 8 2 8$ 20170001448351:14 pm 04111/17 Santa Ana, California 92702 37 413 NOS O02 9 Attention: Cleric of the Council 0.00 0.00 0.00 0.00 24.00 0.00 0,00 0.00 NOTICE OF RESALE RESTRICTIONS AND DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY THIS NOTICE OF RESALE RESTRICTIONS AND DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration") is hereby made as of this 19th day of January, 2016, by and between HABITAT FOR HUMANITY OF ORANGE COUNTY, a California nonprofit public benefit corporation ("Covenantor"); and the CITY OF SANTA ANA, a charter city ("City" or "Covenantee") RECITALS A. Covenantor is the fee title absolute owner of certain real property within the City of Santa Ana, County of Orange, State of California commonly lmown as 4010-4028 West McFadden Avenue and legally described in Exhibit A hereto which is incorporated herein by this reference (the "Property"). B. On January 19, 2016, the City Council of the City approved a Density Housing Bonus Agreement with Covenantor and Tentative Tract Map No. TTM2015-04 (County TTM No. 17715). The City imposed conditions of approval on Covenantor to agree to the execution of the Density Housing Bonus Agreement and to execute and record these Declaration to provide that 20% of the total number of units to be constructed by Covenantor on the Property, or one (1) unit to be for -sale, condominium affordable housing for low income households, as defined in California Health and Safety Code (H&SC) sections 50079.5, 50105 and 50106. NOW THEREFORE, the parties hereto agree and covenant as follows: 1. Affordability Covenant. Covenantor agrees for itself and its successor and assigns, and for every successor to Covenantor's interest in the affordable unit, or any part thereto, that the property located at 4010-4028 W. McFadden Avenue, Santa Ana, California, shall include one (1) unit that shall be designated as affordable for low income households and shall be held subject to this Declaration for forty-five (45) years from the date of City issuance of a Notice of Completion for said unit, as follows: 14 4 cl �v 2 ti 1 1 r cJ FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 & 6103 City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 Attention: Clerk of the Council NOTICE OF RESALE RESTRICTIONS AND DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY THIS NOTICE OF RESALE RESTRICTIONS AND DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration ") is hereby made as of this 19th day of Januarv, 2016, by and between HABITAT FOR HUMANITY OF ORANGE COUNTY, a California nonprofit public benefit corporation ( "Covenantor "); and the CITY OF SANTA ANA, a charter city ( "City" or "Covenantee ") RECITALS A. Covenantor is the fee title absolute owner of certain real property within the City of Santa Ana, County of Orange, State of California commonly known as 4010 -4028 West McFadden Avenue and legally described in Exhibit A hereto which is incorporated herein by this reference (the "Property "). B. On January 19, 2016, the City Council of the City approved a Density Housing Bonus Agreement with Covenantor and Tentative Tract Map No. TTM2015 -04 (County TTM No. 17715. The City imposed conditions of approval on Covenantor to agree to the execution of the Density Housing Bonus Agreement and to execute and record these Declaration to provide that 20% of the total number of units to be constructed by Covenantor on the Property, or one (1) unit to be for -sale, condominium affordable housing for low income households, as defined in California Health and Safety Code (H &SC) sections 50079.5, 50105 and 50106. NOW THEREFORE, the parties hereto agree and covenant as follows: 1. Affordability Covenant. Covenantor agrees for itself and its successor and assigns, and for every successor to Covenantor's interest in the affordable unit, or any part thereto, that the property located at 4010 -4028 W. McFadden Avenue, Santa Ana, California, shall include one (1) unit that shall be designated as affordable for low income households and shall be held subject to this Declaration for forty -five (45) years from the date of City issuance of a Notice of Completion for said unit, as follows: 14 a. The affordable unit shall only be owned and occupied by "Low Income Households" which shall mean persons or families earning not more than eighty percent (80 %) or less of the Orange County median income, adjusted for household size appropriate for the unit as determined by the City based on statistics published by the United States Department of Housing & Urban Development or established by the State of California pursuant to Health & Safety Code section 50093, or successor statute. b. The affordable unit shall only be sold at an "Affordable Housing Cost" to Low Income Households. Affordable Housing Cost shall be the permitted gross sales price of the unit as established by the City, upon request of the Covenantor or owner of the affordable unit. C. The term of this agreement shall commence on the date this Declaration is recorded with the Recorder's Office of the County of Orange and shall continue for forty -five (45) years from the date a Notice of Completion is issued by the City ( "Affordability Period "). d. The covenant contained in this Section I shall run with the affordable unit and shall automatically terminate and be of no further force and effect upon the expiration of the Affordability Period. 2. Transfer of Affordable Unit. No transfer of the affordable unit shall occur until the Covenantee determines (a) that the prospective purchaser intends to occupy the affordable unit as the proposed purchaser's principal residence, (b) that the proposed purchaser qualifies as a Low Income Household, and (c) that the proposed transfer will occur at an Affordable Housing Cost. In the event that Covenantor, including successors and assigns, desires to sell the unit, Covenantor shall send written notice thereof to the Covenantee at the following addresses: To City: City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92701 Attention: Clerk of the Council a. Within ten (10) days of such notice, the Covenantor, or its successor and assigns, shall submit to Covenantee a transfer application. Such transfer application shall include (a) a certification of the proposed purchaser's intent to occupy the affordable unit as the proposed purchaser's principal residence, (b) a certification to demonstrate that the purchaser qualifies as a Low Income Household, and (c) an affidavit disclosing that the proposed purchase price is equal to or less than the Affordable Housing Cost, and (d) a disclosure statement executed by the proposed purchaser which certifies that the proposed purchaser may only sell the unit at an Affordable Housing Cost to a Low Income Household, that the maximum permitted sales price may be less than fair market value of the affordable unit, and that the affordable unit must be owner - occupied at all times and shall not be rented or leased. If Covenantee has pre- existing forms regarding such certifications and affidavits, such forms shall be used by Covenantor. b. Covenantor, or its successor and assigns, shall cooperate with Covenantee in providing such forms to the prospective purchaser and assisting prospective purchasers to prepare such forms and provide such required information to the Covenantee. C. The Covenantee shall review and approve the transfer only if it finds that the Covenantor (and proposed purchaser) have submitted all such forms necessary to make the determinations required pursuant to Section 1 of this Declaration. The City shall endeavor to make 15 such determination within fourteen (14) days from the submission of the completed forms. If the Covenantee fails to approve or disapprove a submission within such fourteen (14) day period, the Covenantee shall be deemed to have denied such transfer. THE COVENANTOR AND EACH SUCCESSOR, HEIR, OR ASSIGN OF THE COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER, AND ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED UNDER THIS DECLARATION MAY BE LES THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS DECLARATION. EACH SUCCESSOR, HEIR, OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE, THE PRIMARY OBJECTIVE OF THE COVENANTEE AND THIS DECLARATION IS TO PROVIDE HOUSING TO LOW INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST. §�� Cove ntor's Initials 3. Subsequent Covenants. Covenantor, and its successor and assigns, shall include in the escrow instructions and Purchase and Sale Agreements with subsequent purchasers a provision which requires each subsequent purchaser to record a covenant which will run with the land and bind all successors -in- interest or assignees that will ensure that all subsequent buyers and occupants quality as Low Income Households. Said covenant(s) shall remain in full force and effect for the Affordability Period set forth in Section 1 of this Declaration. 4 Annual Monitoring. Throughout the term of this Agreement, Covenantor, and its successor and assigns, shall comply with all applicable record keeping and monitoring requirements established by California law and this Agreement. Covenantor, and its successor and assigns, shall cooperate with the City's monitoring requirements established in accordance with California law. 5. Non - Discrimination Covenant. Covenantor, on behalf of itself and its successors and assigns, covenants and agrees that there shall be no discrimination against or segregation of any, nor shall Covenantor itself or any person claiming under or through 16 Covenantor permit any such practice or practices of discrimination or segregation with reference to the selection, location, number or use of the affordable unit. Covenantor shall include in each grant deed for the affordable unit a provision substantially similar to the following: "The grantee herein covenants by and for itself, its successors 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, religion, sex or gender, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property herein conveyed, nor shall the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the property herein conveyed. The foregoing covenants shall run with the land. 6. Covenants Do Not Impair Lien. No violation or breach of this Declaration shall defeat or render invalid or in any way impair any lien or charge of any mortgage or deed of trust or security agreement recorded against the Property. 7. Covenants for Benefit of Covenantee. This Declaration and all covenants contained herein without regard to technical classification shall be binding for the benefit of Covenantee and such covenants shall run in favor of Covenantee for the entire period during which time such covenants shall be in full force and effect. 8. Governing Law. This Agreement has been entered into, is to be performed entirely within, and shall be governed by and construed in accordance with the laws of the State of California. (Signatures commence on next page) 17 NOW, THEREFORE, the parties hereto have executed this Agreement as of the date set forth above. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney Lisa Storck Assistant City Attorney COVENANTOR: HABITAT FOR HUMANITY OF ORANGE COUNTY, a California Nonprofit Public Benefit Corporation By: 4,4 MARK KORANDO, Senior Vice President CITY OF SANTA ANA, a charter city David Cavazos City Manager M EXHIBIT "A" LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SANTA ANA, AND IS DESCRIBED AS FOLLOWS: PARCEL 13: PARCEL 13A: (APN 108 - 601 -24) A PORTION OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12, MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 16; THENCE SOUTH 89 32'50" WEST 837.09 FEET ALONG THE NORTH LINE OF SAID SECTION 16 TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 0 °40'35" EAST 158.00 FEET PARALLEL TO THE WEST LINE OF SAID NORTHEAST QUARTER; THENCE SOUTH 89 32'50" WEST 22.00 FEET PARALLEL TO THE NORTH LINE OF SAID SECTION 16; THENCE NORTH 00 °40'35" WEST 158.00 FEET PARALLEL TO THE WEST LINE OF SAID NORTHEAST QUARTER TO A POINT ON THE NORTH LINE OF SAID SECTION 16; THENCE NORTH 89 32'50" EAST 22.00 FEET ALONG SAID NORTH LINE TO THE TRUE POINT OF BEGINNING, PARCEL NO. 13B: (APN 108- 601 -25) THE NORTH 175.00 FEET OF THE EAST 132.00 FEET OF THE WEST 7 ACRES OF THE NORTH ONE -HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS, AS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 14: (APN 108 - 601 -04) THE EAST 88.73 FEET OF THE WEST 163.73 FEET OF THE NORTH 120 FEET OF THE WEST 7 ACRES OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN. PARCEL 15: (APN 108- 601 -05) THE WEST 75 FEET OF THE NORTH 120 FEET OF THE FOLLOWING DESCRIBED PROPERTY: THE WEST 7 ACRES OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 16, IN TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE AND MERIDIAN. 19 EXCEPTING THEREFROM ALL WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. PARCEL 16: (APN 108 - 601 -03) THE WEST 7, ACRES OF THE NORTH 112 OF THE NORTHEAST 114 OF THE SOUTHEAST 114 OF SECTION 16, TOWNSHIP 5 SOUTH, RANGE 10 WEST, SAN BERNARDINO BASE & MERIDIAN, AS SHOWN ON THE OFFICIAL PLAT THEREOF. EXCEPT THEREFROM THE NORTH 175 FEET OF THE EAST 132 FEET THEREOF ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND CONVEYED IN THE DEED TO JOHN MAGARRO, JR. AND WIFE, RECORDED October 19, 1956 IN BOOK 3683, PAGE 418 OF OFFICIAL RECORDS. ALSO EXCEPT THEREFROM THAT PORTION OF SAID LAND CONVEYED IN THE DEED TO JOHN N. SCHUMAKER AND WIFE, RECORDED January 9, 1957 IN BOOK 3765, OF PAGE 31 OF OFFICIAL RECORDS. ALSO EXCEPT THEREFROM ANY PORTION LYING WITHIN TRACT NO. 4548, AS PER MAP FIELD IN BOOK 170, PAGES 45 AND 46, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. SAID LAND IS ALSO SHOWN ON THAT CERTAIN °CERTIFICATE OF APPROVAL OF LOT LINE ADJUSTMENT NO. LL- 78 -3 ", WHICH RECORDED June 15, 1978 AS INSTRUMENT NO. 21947 OF OFFICIAL RECORDS. 20 .• ACKNOWLEDGMENT s<.a .a e .�• e..�.,,� .:at.c. a�.a. x� ae.m��. a. a.,v..�•.�w z s�e.•.�� .o�•,c�.. ,.wa.!- .ae.e. .a �..w..a,e.ae.c.. m .a< � :. 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 J"Le 3 , i-w. before me, i2Oc�V1 iv � (DAP St IJ Y�A V� {PU.k/i iL Date Here Insert Name and Title of the Officer personally appeared k\/�C, CA, y Z,5 Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the persong whose name,(s( is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hls/•heM+Teir authorized capacity(i6), and that by his /herAheir signatures) on the instrument the person(s -r, or the entity upon behalf of which the person(s) acted, executed the instrument. ROSA A. FLORES +' ...... �'* Commission M 2057129 :z Notary Public . California i Orange County 4 Comm. Ex ires Feb 7,, 2018 Place Notary Seal Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature /SI' Yll'JfiL, (il , A)q� Signature of Notary Public OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Number of Pages: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: - ✓6V4-4'd ... ... 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