HomeMy WebLinkAboutORANGE COUNTY COMMUNITY HOUSING CORP (OCCHC) - 1997-11-17 . U66 Lqq �
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Document No.-.
First American Title lnsurnnre Co.
Affordable Housing Actree-ment
(Acquisition and Rehabilitation of 17291 & 17351 Koledo Lane)
By and Between the
Redevelopment Agency of the
City of Huntington Beach,
Lender,
and
Orange County Community Housing Corporation, a Nonprofit ,
Borrower
HOME Partnership Agreement M95-MC060514-02
Tax-Exempt-Government Agency
CITY of HUNTINGT01M ~EACH CHDO # M95-060514-01
4eputy
le Brockway, Ct,A,, _
City certc This document is solely for tho
�! official buc.ness of the City
City Clerk �� 44e, of Fea:h, as coat m-
plated �...ic. G.o':si:^-ert Code
a;IOCCHC\Koledo2\Coverl.doc Sec. C1013 and should b• recordec
freo of charge.
LOAN AGREEMENT BY AND BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
AND THE ORANGE COUNTY COMMUNITY HOUSING CORPORATION
CONCERNING THE ACQUISITION AND REHABILITATION OF AFFORDABLE
HOUSING ON KOLEDO LANE WITH FUNDS OBTAINED FROM THE
HOME INVESTMENT PARTNERSHIP PROGRAM
This Loan Agreement is made this 171�.day of 74w J� , 1997,by and
between ORANGE COUNTY COMMUNITY HOUSING CORPORATION,a California
nonprofit public benefit corporation(hereinafter referred to as "Borrower"),and THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,a public body of
the State of California("hereinafter referred to as Lender").
WHEREAS,Lender and Borrower wish to enter into an agreement for the loan of HOME
Investment Partnership Program funds for the purpose of acquiring and rehabilitating certain
affordable rental housing units Iocated on Koledo Lane in the City of Huntington Beach,as more
fully described hereinbelow;and
These Recitals refer to and utilize certain capitalized terms which are defined in Article I
of this Agreement. The parties intend to refer to those definitions in conjunction with the use of
capitalized terms in these Recitals;and
Lender wishes to promote the development of more affordable rental housing in
neighborhoods in need of revitalization in the Huntington Beach community and to provide a
greater choice of housing opportunities for persons and families of low income; and
Lender has received Home Investment Partnership Program funds("HOME Funds") from
the United States Department of Housing and Urban Development("HUD')pursuant to the
Cranston-Gonzales National Housing Act of 1990 for the purpose of expanding the supply of
decent, safe,sanitary and affordable housing for very-low and low-income persons and families;
and
Borrower proposes to acquire the real property and improvements located at 17291 and
17351 Koledo Lane, Huntington Beach, California (as more particularly described in Exhibit A)
(the"Property'),for the rehabilitation of ten units housing of affordable to very-low income
households as defined in this Loan Agreement for this project(the"Project';and
Borrower wishes to borrow from Lender and Lender wishes to extend to Borrower a loan
of HOME funds to support development of the Project. The Loan is being made to finance
acquisition costs associated with the Project in order to help achieve financial feasibility for the
project and maximize the affordability of the rental housing,
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NOW THEREFORE,in consideration of the mutual agreements,obligations,and
representations,and in further consideration for the making of the Loan, Borrower and Lender
hereby agree as follows:
ARTICLE 1. DEFINITIONS
The following terms shall have the meanings and content set forth in this section
wherever used in this Loan Agreement.
1.1 "BORROWER" means Orange County Community Housing Corporation,a
California nonprofit public benefit corporation,and its authorized representatives,assigns,
transferees,or successors-in-interest thereto.
1.2 "CERTIFICATE OF PROJECT COMPLETION" means that certificate
issued to Borrower by Lender evidencing completion of the Project pursuant to the terms of this
Loan Agreement.
1.3 "AGENCY" means the Redevelopment Agency of the City of Huntington Beach,
a public body,and its authorized representatives,officers,officials,employees and agents.
1.4 "HAZARDOUS MATERIALS" means any hazardous or toxic substances,
materials,wastes, pollutants,or contaminants which are defined,regulated,or listed as
"hazardous substances," "hazardous wastes," "hazardous materials," "pollutants,"
"contaminants," or"toxic substances," under federal or state environmental and health and safety
laws and regulations,including without limitation petroleum and petroleum byproducts,
flammable explosives,urea formaldehyde insulation,radioactive materials,asbestos,and lead.
Hazardous Materials do not include substances that are used or consumed in the normal course of
developing,operating,or occupying a housing project,to the extent and degree that such
substances are stored,used,and disposed of in the manner and in amounts that are consistent
with normal practice and legal standards.
1.5 "HOME" means the HOME Investment Partnership Program created by the
National Affordable Housing Act of 1990.
1.6 "IIUD" means the United States Department of Housing and Urban
Development.
1.7 "LEASE" means the lease entered into between Borrower and a tenant of a unit
in the Project.
1.8 "LENDER" means the Redevelopment Agency of the City of Huntington Beach,
a public body,and its authorized representatives,officers,officials,employees,and agents.
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1.9 "LOAN" means the loan of HOME Investment Partnership Program funds
provided by Lender to Borrower pursuant to this Loan Agreement.
1.10 "LOAN AGREENIEN'T" means this loan agreement entered into between
Lender and Borrower.
1.11 "LOAN DOCUMENTS"means,collectively,this Loan Agreement,the Notes
and the Deeds of Trust that shal l be executed in connection with the Loan,as they may be
amended,modified,or restated from time to time,along with all exhibits and attachments to
these documents.
I.I2 "AiEDIAN INCO.'*IE"means the median income for the Orange County
Primary Metropolitan Statistical Area(PNISA),with adjustments for household size,as
determined from time to time by the U.S. Department of Housing and Urban Development
(HUD)pursuant to the United States Housing Act of 1937 as amended,or such other method of
median income calculation applicable to the City that HUD may hereafter adopt in connection
with said Act.
1.13 "NOTE" means that promissory note executed by Borrower in favor of Lender
evidencing the Loan,as well as any amendments to,modifications of,or restatements of said
promissory note. The Note shall be in substantially the same form as the document attached
hereto as Attachment No. 2.
1.14 "OPERATING EXPENSES"means all reasonable and proper expenses for
occupancy and rehabilitation of the Project, including: real estate taxes;other taxes; insurance,
including mortgage loan insurance;debt service and other periodic fees and payments in
connection with any amortized loan approved by Lender;repayment of the Borrower's equity
and interest in the Project(interest shall accrue at the same rate of the primary loan secured by a
deed of trust); maintenance and repair; costs of renting and management; fuel; utilities;garbage
disposal;sewer charges;audit expenses; required reserve deposits including operating and
reserve income;and other cash payments which may be approved by Lender.
1.15 "PLANS AND SPECIFICATIONS" means the plans and specifications which
shall be used to rehabilitate the Project.
1.16 "PROJECTS" means the eight(8)units of rental housing on the Properties to be
owmed and operated by the Borrower for Very-Low Income Households according to the terms
of this Loan Agreement.
1.17 "PROPERTIES" consists of the real property located at 17291 and 17351
Koledo Lane,Huntington Beach,California as more particularly described in the attached
Exhibit A,which is incorporated into this Loan Agreement by this reference.
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1.18 "REGULATORY AGREEMENT" shall mean the agreement executed by the
Borrower for the benefit of the Agency,limiting the income of families eligible to rent the units
to Very Low Income Households and in addition limiting the amount of rent that can be charged
for the units for a minimum of thirty(30)years,and a maximum of fifty-nine(59)years,in
substantially the same form as the document attached hereto as Attachment No.4.
1.19 "REVENUE"means the gross rental income derived from the ownership,
operation and management of the Project.
1.20 "RESIDUAL RECEIPTS" means the Revenue,less the sum of Operating
Expenses,and annual deposits to required operating reserves and placement reserves calculated
on an annual basis.
1.21 "VERY LOW INCOME 110USEI[OLDS" shall mean a family or individual
whose annual income does not exceed fifty percent(501/1o)of the median income for the Orange
County Metropolitan Statistical Area as determined by HUD with adjustments for smaller and
larger families.
ARTICLE 2. ATTACHMENTS
The following documents are attached to this Loan Agreement as Attachments and are
incorporated into this Loan Agreement by this reference as though fully set forth:
2.1 ATTACHMENT NO. 1: Legal Description: 17291 Koledo Lane
ATTACHMENT NO. IA: Legal Description: 17351 Koledo Lane
2.2 ATTACHMENT NO.2: Promissory Note: 17291 Koledo Lane
ATTACHMENT NO.2A: Promissory Note: 17351 Koledo Lane
2.3 ATTACHMENT NO. 3: Deed of Trust: 17291 Koledo Lane
ATTACHMENTNO. 3A: Deed of Trust: 17351 Koledo Lane
2.4 ATTACHMENT NO.4: Regulatory Agreement: 17291 Koledo Lane
ATTACHMENT NO.4A: Regulatory Agreement: 17351 Koledo Lane
2.5 ATTACHMENT NO. 5: Scope of Work
2.6 ATTACHMENT NO. 6: Schedule of Performance
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t ,
2.7 ATTACHMENT NO.7; City of Huntington Beach Rental Property
Acquisition Guidelines
2.8 ATTACHMENT NO. 8 City of Huntington Beach Multi-Family Rental
Rehabilitation Loan Program Guidelines
ARTICLE 3. TER IS OF LOAN
3.1 LOAN. Lender agrees to provide a loan of HOME funds to Borrower under the
terms and conditions of the Loan Documents.
3.2 A1110UNT OF LOAN. On and subject to the terms and conditions of the Loan
Documents,Lender agrees to make and Borrower agrees to accept a loan not to exceed Five
Hundred Thousand Dollars($500,000),which shall be evidenced by the Notes,and secured by
the Deeds of Trust.
3.3 INTEREST. The Note shall bear simple interest at the rate of six percent(6%)
per annum on the principal amount outstanding from the date of the Note until paid or forgiven.
3.4 REPAYMENT OF LOAN. There may be periodic payments under the Note.
Commencing on the third(3rd)anniversary of the close of Escrow and continuing until the
thirtieth(30th) anniversary(except that the Department Director may extend the period by two
(2)years administratively)of the Close of Escrow, the Borrower shall make minimum annual
payments(the"Annual Payment')in the amount of One Thousand Two Hundred Dollars
($1,200.00). Each Annual Payment shall be due annually on each anniversary of the Close of
Escrow beginning on the third (3rd)anniversary of the Close of Escrow and continuing and
including the thirtieth(30th)anniversary of the Close of Escrow;provided,however,that
remaining outstanding principal of the Loan shall be repaid on the thirtieth(30th)anniversary of
the Close of Escrow. If the balance of the Residual Receipts account is insufficient to fully fund
an Annual Payment,Borrower agrees to make-up any shortfall that may exist in the account so
that the Annual Payment can be made. Borrower may request that the Lender reduce,suspend or
forgive an Annual Payment,and the Borrower may present evidence to the Lender of its inability
to make an Annual Payment;however,Lender reserves the exclusive right in its sole discretion
to reduce, suspend or forgive an Annual Payment.
All principal and interest on the Loan shall be due in full upon the earliest to occur of:
(1) the occurrence of a default under this Agreement, the Note,the Deed of
Trust,or the Agreement Containing Covenants, which event of default is
not cured within the applicable cure period;or
(2) the thirtieth(30th)anniversary of Close of Escrow.
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2.7 ATTACHMENT NO. 7: City of Huntington Beach Rental Property
Acquisition Guidelines
2.8 ATTACHMENT NO. 8 City of Huntington Beach Multi-Family Rental
Rehabilitation Loan Program Guidelines
ARTICLE 3. TERINIS OF LOAN
3.1 LOAN. Lender agrees to provide a loan of HOME funds to Borrower under the
terms and conditions of the Loan Documents.
3.2 AMOUNT OF LOAN. On and subject to the terms and conditions of the Loan
Documents, Lender agrees to make and Borrower agrees to accept a loan not to exceed Five
Hundred Thousand Dollars ($500,000),which shall be evidenced by the Notes,and secured by
the Deeds of Trust.
3.3 INTEREST. The Note shall bear simple interest at the rate of six percent(6%)
per annum on the principal amount outstanding from the date of the Note until paid or forgiven.
3.4 REPAYMENT OF LOAN. There may be periodic payments under the Note.
Commencing on the fifth(5th)anniversary of the close of Escrow and continuing until the
thirtieth (30th)anniversary of the Close of Escrow, the Borrower shall make minimum annual
payments(the"Annual Payment")in the amount of One Thousand Two Hundred Dollars
($1,200.00). Each Annual Payment shall be due annually on each anniversary of the Close of
Escrow beginning on the fifth(5th)anniversary of the Close of Escrow and continuing and
including the thirtieth(30th)anniversary of the Close of Escrow;provided,however,that
remaining outstanding principal of the Loan shall be repaid on the thirtieth(30th)anniversary of
the Close of Escrow.If the balance of the Residual Receipts account is insufficient to fully fund
an Annual Payment, Borrower agrees to make-up any shortfall that may exist in the account so
that the Annual Payment can be made. Borrower may request that the Lender reduce, suspend or
forgive an Annual Payment,and the Borrower may present evidence to the Lender of its inability
to make an Annual Payment; however, Lender reserves the exclusive right in its sole discretion
to reduce,suspend or forgive an Annual Payment.
All principal and interest on the Loan shall be due in full upon the earliest to occur of:
(1) the occurrence of a default under this Agreement,the Note,the Deed of
Trust,or the Agreement Containing Covenants,which event of default is
not cured within the applicable cure period; or
(2) the thirtieth(30th)anniversary of Close of Escrow.
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3.5 LOAN SECURITY. Upon the making of the Loan,the Borrower shall cause to
be executed and recorded in the official records of Orange County the Deeds of Trust,and the
Regulatory Agreements.
3.6 PREPAYNIEN7 OF LOAN. No prepayment penalty will be charged to
Borrower for payment of all or any portion of the Loan amount prior to the end of the Loan term
described herein.
3.7 CONDITIONS PRECEDENT TO DISBURSEMENT. Lender shall not be
obligated to make disbursements of Loan proceeds unless all of the following conditions
precedent are satisfied:
1. There exists no Event Default under the Loan Agreement.
2. Borrower has delivered a management plan acceptable to the Lender for the on-
going management and operation of the Project.
3. Borrower has received a final certificate of occupancy for this Project.
3.9 LENDER'S OPTION TO PURCHASE. Upon notice to Lender that Borrower
intends to effect a transfer of the Property as provided in Section 4.7 hereof,or upon the
termination of this Agreement, Lender shall have the right,for 60 days after such notice or
termination, to purchase the Property at the fair market value thereof, less the principal amount
of HOME funds originally loaned to the Borrower and adjusted annually for inflation based on
the Consumer Price Index(CPI),or another comparable index,as mutually agreed upon by both
parties. Lender shall exercise this right in its sole discretion. The fair market value shall be
determined by a qualified real estate appraiser,mutually selected by the Borrower and Lender.
ARTICLE 4. PROJECT OPERATION
4.1 OPERATION OF PROJECT. Borrower shall lease,operate and manage the
Project in full conformance with the terms of the Regulatory Agreement. Further, Borrower will
guarantee the amount of the project reserves shown in the final profonma submitted to the
Lender. Borrower%%ill submit audited financial statements to the Lender annually after
acceptance and certification of such statements by Borrower's Board of Directors. The Lender
will review the statements and may choose to require further analysis or review by a third party,
but must do so at its own expense.
4.2 INCOME CERTIFICATION. Borrower shall determine the income eligibility
of each prospective tenant household prior to renting a Project unit to such household. Borrower
shall certify each tenant household's income on an annual basis.
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4.3 AFFORDABILITY RESTRICTIONS. The affordability of the Projects shall
be maintained for a minimum period of thirty(30)years following the recordation of the
Regulatory Agreement. All eight(8)units in the Projects shall at all times be occupied or held
vacant and available for rental by Very Low Income Households. Income determination shall be
made at the time of initial occupancy of a unit by a tenant.
4.4 MAXIMUM RENTAL CHARGES. The total charges for rent,utilities,and
related services to each Very Low-Income Household shall not exceed thirty percent(3011/o)of
fifty percent(50%)of Median Income. Maximum annual rent increases shall be calculated by
Lender based on the change in permissible rents published annually by HUD,exclusively for the
HOME Program.
4.5 NONDISCRIMINATION. Borrower shall not discriminate or segregate in the
development,construction,use,enjoyment,occupancy,conveyance,lease,sublease,or rental of
any part of the Property on the basis of race,color,ancestry,national origin,religion,sex,sexual
preference,age, marital status,family status, source of income,physical or mental disability,
Acquired Immune Deficiency Syndrome(AIDS)or AIDS-related conditions(ARC),or any other
arbitrary basis. Borrower shall otherwise comply with all applicable local, state,and federal laws
concerning discrimination in housing.
4.6 ENCUMBRANCE OF PROPERTY. Except as otherwise provided in this Loan
Agreement,Borrower shall not engage in any financing or any other transaction creating any
security interest or other encumbrance or lien upon the Property,whether by express agreement
or operation of law,or allow any encumbrance or lien to be made on or attached to the Property,
except with the prior written consent of Lender. Borrower shall notify Lender in writing in
advance of any financing secured by any deed of trust,mortgage,or other similar lien instrument
that it proposes to enter into with respect to the Project or Property,and of any encumbrance or
lien that has been created on or attached to the Property whether by voluntary act of Borrower or
otherwise.
Borrower agrees to fully satisfy and payoff all existing liens and deeds of trust prior to
funding through this HOME agreement. This provision is subject to verification by Agency.
4.7 TRANSFER OF PROPERTY. Borrower has neither made or created,and shall
not make or permit any sale,assignment,conveyance, lease,or other transfer of this Loan
Agreement, the Project,or the Property,or any part thereof, including the sale of any general or
limited partnership interests,without the prior written consent of Lender.
4.8 LEAD-BASED PAINT. Borrower shall ensure that it and its contractors and
subcontractors shall not use lead-based paint in the construction or maintenance of the Property.
Borrower shall insert this provision in all contracts and subcontracts for work performed on the
Project which involve the application of paint. Borrower will test both properties for the
presence of lead-based paint as required by HUD regulations. Borrower will furnish copies of
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test results to Lender. Borrower will remediate any asbestos or lead-based paint hazards where
the Ievel of that substance is found to be in excess of acceptable thresholds.
4.9 BARRIERS TO THE DISABLED. Borrower shall ensure that the Project shall
be developed and the Property shall be maintained to comply with all applicable federal,state,
and local requirements for access for disabled persons.
4.10 INDEMNIFICATION,DEFENSE,HOLD IIARMLESS. Borrower hereby
agrees to protect,defend,indemnify and hold and save harmless Lender,its officers and
employees against any and all liability,claims,judgments,costs and demands,however caused,
including those resulting from death or injury to Borrower's employees and damage to
Borrower's property,arising directly or indirectly out of the obligations or operations herein
undertaken by Borrower,including those arising from the passive concurrent negligence of
Lender,but save and except those which arise out of the active concurrent negligence,sole
negligence,or the sole willful misconduct of Lender. Borrower will conduct all defense at its
sole cost and expense. Lender shall be reimbursed by Borrower for all costs or attorney's fees
incurred by Lender in enforcing this obligation.
4.11 WORKERS' COMPENSATION INSURANCE. Pursuant to the California
Labor Code Section 1861, Borrower acknowledges awareness of Section 3700 et seq. of said
code,which requires every employer to be insured against liability for workers'compensation;
Borrower covenants that it will comply with all such laws and provisions prior to commencing
performance of the work hereunder.
Borrower shall maintain such Workers'Compensation Insurance in an amount of not less
than One Hundred Thousand Dollars($100,000)bodily injury by accident,each occurrence,One
Hundred Thousand Dollars($100,000)bodily injury by disease,each employee,and Two
Hundred Fifty Thousand Dollars($250,000)bodily injury by disease,policy limit,at all times
incident hereto,in forms and underwritten by insurance companies satisfactory to Lender.
Borrower shall require all subcontractors to provide such Workers' Compensation
Insurance for all of the subcontractors'employees. Borrower shall furnish to Lender a certificate
of waiver of subrogation under the terms of the Workers' Compensation Insurance and Borrower
shall similarly require all subcontractors to waive subrogation.
4.12 INSURANCE COVERAGE. Borrower shall carry at all times incident hereto,
on all operations to be performed hereunder,general liability insurance, including coverage for
bodily injury,property damage,and blanket contractual liability. Said insurance shall also
include automotive bodily injury and property damage liability insurance. All insurance shalt be
underwritten by insurance companies in forms satisfactory to Lender for all operations,'
subcontract work,contractual obligations,product or completed operations and all owned
vehicles and non-owned vehicles. Said insurance shall name the Lender, its officers, agents and
employees and all public agencies as determined by the Lender as Additional Insureds.'
Borrower shall subscribe for and maintain said insurance policies in full force and effect during
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the life of this Agreement,in an amount of not less than One Million Dollars($1,000,000). In
the event of aggregate coverage, Borrower shall immediately notify Lender of any known
depletion of limits. Borrower shall require its insurer to waive its subrogation rights against
Lender and agrees to provide certificates evidencing the same.
4.13 CERTIFICATES OF INSURANCE; ADDITIONAL INSURED
ENDORSEMENT. Prior to commencing performance of the obligations undertaken
hereunder, Borrower shall furnish to Lender certificates of insurance subject to approval of the
City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said
certificates shall provide the name and policy number of each carrier and policy,and shall state
that the policy is currently in force and shall promise to provide that such policies will not be
canceled without thirty (30)days prior written notice to Lender. Borrower shall maintain the
foregoing insurance coverages in force until the rehabilitation work under this Agreement is fully
completed and accepted by Lender.
The requirement for carrying the foregoing insurance shall not derogate from the
provisions for indemnification of Lender by Borrower under this Agreement. Lender or its
representative shall at a]I times have the right to demand the original or a copy of a)I said policies
of insurance. Borrower shall pay, in a prompt and timely manner, the premiums on all insurance
herein above required.
A separate copy of the additional insured endorsement to each of Borrower's insurance
policies,naming the Lender, its officers and employees as Additional Insureds shall be provided
to the City Attorney for approval prior to any payment hereunder.
4.14 RELOCATION REQUIREMENTS. Borrower shall comply with any and
all of the Agency's relocation requirements pursuant to California Government Code Section
7260 et seq., California Health& Safety Code Chapter 4,Article 9, Section 33410,et seq., and
49 Code of Federal Regulation Part 24 (the"Requirements). The Borrower shall submit for the
Agency's approval,a copy of the relocation plan prepared pursuant to the Requirements,prior to
the relocation of any tenant in the Project.
4.15 RELOCATION. Borrower agrees to indemnify,protect,hold harmless and
defend the Agency, its council members, officers and employees from all suits,actions,claims,
causes of action,costs,demands,judgments and liens arising out of the Borrower's performance
or non-performance of the Requirements.
ARTICLE 5. IIAZARDOIJS MATERIALS
5.1 REPRESENTATIONS AND WARRANTIES. After reasonable investigation
and inquiry,Borrower hereby represents and warrants to the best of its knowledge,as of the date
of this Loan Agreement and except as previously disclosed and acknowledged in writing by
Lender or as disclosed by the reports based on environmental audit(s)performed on the Property
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and submitted to Lender,that(a)the Property is not and has not been a site for the use,
generation,manufacture,transportation, storage,or disposal of Hazardous Materials; (b)the
Property is in compliance with all applicable environmental and health and safety laws,
regulations,ordinances, administrative decisions,common law decisions(whether federal, state,
or local)with respect to Hazardous Materials,including those relating to soil and groundwater
conditions("Hazardous Materials Laws");(c)there are no claims or actions pending or
threatened with respect to the Property by any governmental entity or agency or any other person
relating to Hazardous Materials; and (d)there has been no release or threatened release of any
Hazardous Materials on,under,or near the Property(including in the soil,surface water,or
groundwater under the Property)or any other occurrences or conditions on the Property or on
any other real property that could cause the Property or any part thereof to be classified as a
"hazardous waste property" or as a"border zone property" under California Health and Safety
Code Sections 25220,et seq.,or regulations adopted therewith.
5.2 NOTIFICATION TO LENDER. Borrower shall immediately notify Lender in
writing of. (a)the discovery of any concentration or amount of Hazardous Materials on or under
the Property requiring notice to be given to any governmental entity or agency under Hazardous
Materials Laws;(b)any knowledge by Borrower(after verification of the veracity of such
knowledge to Bonrowees reasonable satisfaction)that the Property does not comply with any
Hazardous Materials Laws;(c)the receipt by Borrower or the Partnership of written notice of
any Hazardous Materials claims;and(d)the discovery by Borrower or the Partnership of any
occurrence or condition on the Property or on any real property located within 2,000 feet of the
Property that could cause the Property or any part thereof to be designated as a "hazardous waste
property" or as a"border zone property" under California Health and Safety Code Sections
25220,et seq., or regulations adopted therewith.
5.3 USE AND OPERATION OF PROPERTY. The Borrower nor any agent,
employee,or contractor of Borrower,nor any authorized user of the Property shall use the
Property or allow the Property to be used for the generation,manufacture,storage,disposal,or
release of Hazardous Materials. Borrower shall comply with Hazardous Materials Laws.
ARTICLE 6. DEFAULT AND REMEDIES
6.1 EVENTS OF DEFAULT. The occurrence of any of the following events shall
constitute an"Event of Default" under this Loan Agreement:
A. Monetary. (1)Borrower's failure to pay when due any sums payable under the
Note or any advances made by Lender under the Deed of Trust or this Loan
Agreement;(2)Borrower's use of Loan funds for costs other than Eligible Costs
or for uses inconsistent with other terms and restrictions in the Loan Documents;
(3) Borrower's failure to obtain and maintain the insurance coverage required
under this Loan Agreement; (4) Borrower's failure to make any other payment or
assessment due under the Loan Documents;
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B. Operation. (1)discrimination by Borrower on the basis of characteristics
prohibited by this Loan Agreement or applicable law; (2)the imposition of any
encumbrances or liens on the Property without Lender's prior written approval
that are prohibited under this Loan Agreement or that have the effect of reducing
the priority of or invalidating the Deed of Trust; (3)any material adverse change
in the condition of Borrower or the Project or permanent financing or funding for
the Project that gives Lender reasonable cause to believe that the Project cannot
be operated according the terms of the Loan Documents or the Regulatory
Agreement;
C. (General performance of Loan obligations, Any substantial or continuous breach
by Borrower of any material obligations on Borrower imposed in the Loan
Documents or Regulatory Agreement;
D. Representations and warrantirS. A determination by Lender that any of
Borrowers representations or%arrarities made in the Loan Documents,any
statements made to Lender by Borrower,or any certificates,documents,or
schedules supplied to Lender by Borrower were untrue in any material respect
when made,or that Borrower concealed or failed to disclose a material fact from
Lender;
E. BankMptcyJisjqlufion.and insolvency. Borrower's or any general partner of
Borrower's or any corporation controlling Borrower's (1) filing for bankruptcy,
dissolution,or reorganization,or failure to obtain a full dismissal of any such
involuntary filing brought by another party before the earlier of final relief or 60
days after the filing; (2)making a general assignment for the benefit of creditors;
(3)applying for the appointment of a receiver,trustee,custodian,or liquidator,or
failure to obtain a full dismissal of any such involuntary application brought by
another party before the earlier of final relief or 60 days after the filing; (4)
insolvency; (5) failure,inability or admission in writing of its inability to pay its
debts as they become due.
6.2 NOTICE OF DEFAULT ANT OPPORTUNITY TO CURE. For
nonmonetary Events of Default,Lender shall give written notice to Borrower of any Event of
Default by specifying: (a)the nature of the event or deficiency giving rise to the Default,(b)the
action required to cure the deficiency,if an action to cure is possible,and(c)a date,which shall
not be less than thirty(30)calendar days from the date of receipt of the notice or the date the
notice was refused,by which such action to cure must be taken.
6.3 LENDER'S REMEDIES. Upon the happening of an Event of Default by
Borrower and a failure to cure said Event of Default within the time specified in the notice of
Event of Default(if a notice is required),and Lender may, in addition to other rights and
remedies permitted by the Loan Documents or applicable law,proceed with any or all of the
following remedies in any order or combination Lender may choose in its sole discretion:
11
4/s:C:4-97Agrce.Kolcdo97;Loanagre
RLS 97-800
f 0/24/97
A. Bring an action in equitable relief(1)seeking the specific performance by
Borrower of the terms and conditions of the Loan Documents,and/or(2)
enjoining,abating,or preventing any violation of said terms and conditions,
and/or(3)seeking declaratory relief;
B. Accelerate the Loan,and demand immediate full payment of the principal amount
outstanding and all accrued interest under the Note,as well as any other monies
advanced to Borrower by Lender under the Loan Documents;
C. Foreclose under the Deed of Trust and enforce any remedies incident thereto.
D. Pursue any other remedy allowed at law or in equity.
6.4 BORROIVTR'S REMEDIES. Upon the fault or failure of Lender to meet any
of its obligations under the Loan Documents, Borrower may:
A. Demand payment from Lender of any sums due Borrower; and/or
B. Bring an action in equitable relief seeking the specific performance by Lender of
the terms and conditions of the Loan Documents;and/or
C. Pursue any other remedy allowed at law or in equity.
ARTICLE 7. C,ENERAL PROVISIONS
7.1 BORRONVER'S %VARRAN"FIES. Borrower represents and warrants(1)that it
has access to professional advice and support to the extent necessary to enable Borrower to fully
comply with the terms of these Loan Documents and the Regulatory Agreement and to otherwise
carry out the Project,(2)that it is duly organized,validly existing and in good standing under the
laws of the State of California,(3) that it has the full power and authority to undertake the Project
and to execute the Loan Documents,(4)that the persons executing and delivering the Loan
Documents are authorized the execute and deliver such documents on behalf of Borrower,(5)
except as disclosed to the Lender in writing,there are no actions or proceedings pending or,to
the best of Borrower's knowledge,threatened against the Borrower before any court or
administrative agency in any way connected with the Property or the Project which could
adversely affect the Borrower's ability to perform the activities contemplated hereunder, (6)
neither this Loan Agreement nor anything provided to be done hereunder violates or shall violate
any contract,agreement or instrument to which the Borrower is a party or which affects the
Project or any part thereof, (7)the Borrower is not in default in respect of any of its obligations
or liabilities pertaining to the Project;nor is there any state of facts or circumstances or
conditions or events which,after notice, lapse of time,or both,would constitute or result in any
such default,and(8)the Borrower has not entered into any agreements which will adversely
affect the title to the Project or the Borrower's right to develop and use the Project as provided in
12
4ls:0:497Agree:Kolcdo97:L.oanagre
RLS 97-800
10/24/97
this Loan Agreement,and the Borrower i«I1 not enter into any such agreements after the date
hereof.
7.2 TERM OF THIS AGREEMENT. This Loan Agreement shall commence on
the date set forth above and remain in full force and effect throughout the term of the Loan. This
Loan Agreement shall terminate upon the termination of the Loan.
7.3 GOVERNING LANV. The Loan Documents shall be interpreted under and be
governed by the laws of the State of California,except for those provisions relating to choice of
law or those provisions preempted by federal law.
7.4 ATTORNEYS' FEES AND COSTS. In the event any Event of Default or any
legal or administrative action is commenced to interpret or to enforce the terms of the Loan
Documents,each party shall bear its own attorneys' fees and costs. The prevailing party in any
such action shall not be entitled to recover any attorneys'fees or costs in such action.
7.5 TIME. Time is of the essence in these Loan Documents.
7.6 CONSENTS AND APPROVALS. Any consent or approval of Lender or
Borrower required under the Loan Documents shall not be unreasonably withheld. Any approval
required under the Loan Documents shall be in writing and executed by an authorized
representative of the party granting the approval.
7.7 NOTICES,DEMANDS AND COMMUNICATIONS. Formal notices,
demands and communications between Borrower and Lender shall be sufficiently given and shall
not be deemed given unless dispatched by registered or certified mail,postage prepaid,return
receipt requested,or delivered personally,to the principal offices of Borrower and Lender as
follows:
LENDER: BORROEVER:
Redevelopment Agency of the Orange County Community Housing Corporation
City of Huntington Beach 1833 East 17th Street
2000 Main Street Suite 207
Huntington Beach,CA 92648 Santa Ana,CA 92701
Attention: Executive Director Attn: Executive Director
Copy: Economic Development Director
7.8 BINDING UPON SUCCESSORS. All provisions of these Loan
Documents shall be binding upon and inure to the benefit of the heirs,administrators,executors,
successors-in-interest,transferees,and assigns of each of the parties;provided,however,that this
section does not waive the prohibition on assignment of this Loan Agreement by Borrower
without Lender's consent.
13
41s:0:4-97Agrcc:Kolcdo97:Loanagm
RLS 974DO
14t24197
7.9 RELATIONSHIP OF PARTIES. The relationship of Borrower and Lender for
this Project under this Loan Agreement is and at all times shall remain solely that of debtor and
a creditor,and shall not be construed as a joint venture,equity venture,partnership,or any other
relationship. Lender neither undertakes nor assumes any responsibility or duty to Borrower
(except as provided for herein)or any third party with respect to the Project,the Property,or the
Loan. Except as Lender may specify in writing,Borrower shall have no authority to act as an
agent of Lender or to bind Lender to any obligation.
7.10 ASSIGNMENT AND ASSUMPTION. Borrower shall not assign any of its
interests under this Loan Agreement or the Loan Documents to any other party, except as
specifically permitted under the terms of the Loan Documents,without the prior written consent
of Lender. Any unauthorized assignment shall be void.
7.11 WAIVER. Any waiver by Lender of any obligation in these Loan Documents
must be in writing. No waiver will be implied from any delay or failure by Lender to take action
on any breach or default of Borrower or to pursue any remedy a]]owed under the Loan
Documents or applicable law. Any extension of time granted to Borrower to perform any
obligation under the Loan Documents shall not operate as a waiver or release from any of its
obligations under the Loan Documents. Consent by Lender to any act or omission by Borrower
shall not be construed to be a consent to any other or subsequent act or omission or to waive the
requirement for Lenders written consent to future waivers.
7.12 INTEGRATION. This Loan Agreement and the other Loan Documents,
including exhibits,executed by Borrower for the Property,if any,contain the entire agreement of
the parties and supersede any and all prior negotiations.
7.13 OTHER AGREEMENTS. Borrower represents that it has not entered into any
agreements that are inconsistent with the terms of the Loan Documents. Borrower shall not enter
into any agreements that are inconsistent with the terms of the Loan Documents without an
express waiver by Lender in writing.
7.14 AMEWMENTS AND MODIFICATIONS. Any amendments or modifications
to the Loan Documents must be in writing,and shall be made only if executed by both Borrower
and Lender.
Balance of page intentionally left blank
14
41s:G:4-97Agrec:Koledo97:Loanagre
RL5 97-800
10/24/97
7.15 SEVERABILITY. Every provision of this Loan Agreement is intended to be
severable. If any provision of this Loan Agreement shall be held invalid,illegal,or
unenforceable by a court of competent jurisdiction,the validity, legality,and enforceability of the
remaining provisions shall not in any way be affected or impaired.
IN WITNESS WHEREOF,the parties hereto have executed this Loan Agreement by
and through their authorized officers as of the date first above written.
BORROWER: LENDER:
ORANGE COUNTY COMMUNITY REDEVELOPMENT AGENCY OF THE
HOUSING CORPORATION,a California CITY OF HUNTINGTON BEACH,a public
nonprofit public benefit corporation body of the State of California
By.
airman
Its: ��eCv�wS��2C
By: ATTEST:
Its:
Agency CIerk 1.4,7
APPROVED AS TO FORM:
Agency Counsel
REVIEWED AND APPROVED: 1NITIAT D AND APPROVED:
Executi a Direelor Dir for JfEconomic Development
15
4/s:C:4-97Agrcc:Kolcdo97:Loanagrc
RLS 97-900
10/24/97
ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
CORPORATE RESOLUTION, TO BUY PROPERTY
I, Robert A.Johnson,Secretary,hereby certify that I am the duly elected and qualified Secretary of Orange County Community
Housing Corporation,a California nonprofit,public benefit,corporation duly organized and existing under the laws of the State of California
(hereinafter"OCCHC");that the following is a true copy of certain resolutions duly adopted by the Board of Directors of OCCHC at a meeting
duly called,noticed and held on July 17,1997,at which meeting a quorum was present and acting throughout;that such resolutions have been
duly recorded in the minutes of the Board of Directors of OCCHC,bylaws and other instruments binding or affecting OCCHC;and that such
resolutions have not been revoked,rescinded or modified,and are now in full force and effect in the following form:
f
RESOLVED THAT:OCCHC purchase the property known as 17291 Koledo Lane,Huntington Beach,CA and execute all appropriate
documents therewith including those documents in accord with respective escrow instructions.
RESOLVED THAT:the Executive Director,Allen P.Baldwin,be and he is hereby authorized,empowered,and directed for and
on behalf of and under the corporate seal of OCCHC and as its corporate act and deed,from time to time,(1)to borrow from lender such sums
of money as,in the judgement of designee,OCCHC may require on such terms and conditions as shall be required by lender,and to sign and
deliver such promissory motes and other evidences of indebtedness for such money borrowed or advanced as lender shall require,the designee
being also authorized to direct orally or in writing the disposition of the proceeds of any such obligation,and to accept or direct delivery from
escrow of any such proceeds or other property of OCCHC at any time held by lender,(2)to contract with lender for the issuance by lender
of letters of credit and for other financial accommodations as shall in the discretion of the designee be required for OCCHC repayment to lender,
as lender shall require;(3)to enter into agreements for the leasing and/or purchase of property by OCCHC from lender,for such sums and upon
such terms as may be advisable in the sole judgement of the designee;(4)to grant security interests in,mortgage,encumber,pledge,convey,
grant,hypothecate,deed in trust,assign,sell,transfer,and deliver to lender by such instruments in writing or otherwise as may be required
by lender,any of the property of OCCHC(whether real,personal or mixed),to secure the payment of promissory notes,guarantees,agreements,
and any other evidences or indebtedness and other obligations of OCCHC entered into pursuant to these resolutions,and for all instruments,
promissory notes,guarantees,agreements,and any other evidences of indebtedness and other obligations of OCCHC,and all renewals and/or
extensions thereof,may be in such forms and contain such provisions,covenants,recitals,and agreements as lender may require and the designee
may approve,and the execution thereof by the designee shall be conclusive evidence of such approval;(5)to negotiate,endorse,and sell to,
or to discount with escrow,notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness payable to,
or otherwise held or owned by OCCHC,upon such terms as may be agreed upon by the designee and lender,and to endorse and deliver to
lender said notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness so negotiated,endorsed,sold,
or discounted,and to guarantee the payment of the same to lender,(6)to renew and/or extend, in whole or in part,any promissory notes,
guarantees,agreements,other evidences of indebtedness and other obligations of OCCHC which are in these resolutions referred to, and to
execute and deliver to escrow such renewals and/or extensions accordingly;and(7)to perform all acts and execute and deliver all instruments
in writing which lender may deem necessary to carry out the purpose of these resolutions;
RESOLVED FURMER: That a certified copy of these resolutions,certified by the Secretary of OCCHC be delivered to lender;
and that these resolutions shall continue in full force and effect until written notice of their revocation by(together with certified copy of)a
resolution legally adopted by the Board of Directors of OCCHC shall have been actually received from OCCHC by lender at its office designated
on any certified copy of these resolutions submitted to lender or otherwise designated by lender,and until all indebtedness and obligations which
may have been incurred as aforesaid shall have been fully paid,satisfied,and discharged,and no such revocation,nor any receipt of any notice
thereof, shall in any manner whatever affect any indebtedness or obligation which(prior to actual receipt of the notice and resolution of
revocation by lender in the manner aforesaid)may have been incurred as aforesaid)may have been incurred as aforesaid;
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the corporate seal of OCCHC,
this day of 1997.
corporate seal
es Davis,Vice Chaimum of
Orange County Community Housing Corporation
DESIGNEE: llen P.Bal ecutive Director
C
1833 East 17th Street, Suite 207, Santa Ana, California 92705-8629 (714) 558-8161
ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
CORPORATE RESOLUTION TO BUY PROPERTY
I, Robert A.Johnson, Secretary,hereby certify that I am the duly elected and qualified Secretary of Orange County Community
Housing Corporation,a California nonprofit,public benefit,corporation duly organized and existing under the laws of the State of California
(hereinafter"OCCHC');that the following is a true copy of certain resolutions duly adopted by the Board of Directors of OCCHC at a meeting
duly called,noticed and held on July 17,1997,at which meeting a quorum was present and acting throughout;that such resolutions have been
duly recorded in the minutes of the Board of Directors of OCCHC,bylaws and other instruments binding or affecting OCCHC;and that such
resolutions have not been revoked,rescinded or modified,and are now in full force and effect in the following form:
i
RESOLVED THAT.•OCCHC purchase the property known as 17351 Koledo Lane,Huntington Beach,CA and execute all appropriate
documents therewith including those documents in accord with respective escrow instructions.
RESOLVED THAT:the Executive Director,Allen P.Baldwin,be and he is hereby authorized,empowered,and directed for and
on behalf of and under the corporate seal of OCCHC and as its corporate act and deed,from time to time,(1)to borrow from lender such sums
of money as,in the judgement of designee,OCCHC may require on such terms and conditions as shall be required by lender,and to sign and
deliver such promissory notes and other evidences of indebtedness for such money borrowed or advanced as lender shall require,the designee
being also authorized to direct orally or in writing the disposition of the proceeds of any such obligation,and to accept or direct delivery from
escrow of any such proceeds or other property of OCCHC at any time held by lender;(2)to contract with lender for the issuance by lender
of letters of credit and for other financial accommodations as shall in the discretion of the designee be required for OCCHC repayment to lender,
as lender shall require;(3)to enter into agreements for the leasing and/or purchase of property by OCCHC from lender,for such sums and upon
such terms as may be advisable in the sole judgement of the designee;(4)to grant security interests in,mortgage,encumber,pledge,convey,
grant,hypothecate,deed in trust,assign,sell,transfer,and deliver to lender by such instruments in writing or otherwise as may be required
by lender,any of the property of OCCHC(whether real,personal or mixed),to secure the payment of promissory notes,guarantees,agreements,
and any other evidences or indebtedness and other obligations of OCCHC entered into pursuant to these resolutions,and for all instruments,
promissory notes,guarantees,agreements,and any other evidences of indebtedness and other obligations of OCCHC,and all renewals and/or
extensions thereof,may be in such forms and contain such provisions,covenants,recitals,and agreements as lender may require and the designee
may approve,and the execution thereof by the designee shall be conclusive evidence of such approval;(5)to negotiate,endorse,and sell to,
or to discount with escrow,notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness payable to,
or otherwise held or owned by OCCHC,upon such terms as may be agreed upon by the designee and lender,and to endorse and deliver to
lender said notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness so negotiated,endorsed,sold,
or discounted, and to guarantee the payment of the same to lender,(6)to renew and/or extend, in whole or in part,any promissory notes,
guarantees, agreements,other evidences of indebtedness and other obligations of OCCHC which are in these resolutions referred to,and to
execute and deliver to escrow such renewals and/or extensions accordingly;and(7)to perform all acts and execute and deliver all instruments
in writing which lender may deem necessary to carry out the purpose of these resolutions;
RESOLVED FURMER, That a certified copy of these resolutions,certified by the Secretary of OCCHC be delivered to lender;
and that these resolutions shall continue in full force and effect until written notice of their revocation by(together with certified copy of)a
resolution legally adopted by the Board of Directors of OCCHC shall have been actually received from OCCHC by lender at its office designated
on any certified copy of these resolutions submitted to lender or otherwise designated by lender,and until all indebtedness and obligations which
may have been incurred as aforesaid shall have been fully paid,satisfied,and discharged,and no such revocation,nor any.mceipt of any notice
thereof, shall in any manner whatever affect any indebtedness or obligation which(prior to actual receipt of the notice and resolution of
revocation by lender in the manner aforesaid)may have been incurred as aforesaid)may have been incurred as aforesaid;
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the corporate seal of OCCHC,
this -- day of R#4-t', ,1997.
corporate seal A, '000
es Davis,Vice Chairman of
Orange County Community Housing Corporation
DESIGNEE: Allen P.Bal in, ecutive Director
1833 East 17th Street, Suite 207, Santa Ana, California 92705-8629 (714) 558-8161
Exhibit "A"
Legal Description
17351 Koledo Lane
Lot 11 of Tract No.4301,in the County of Orange,State of California,as per map recorded in
Book 177,pages 11 and 12 inclusive of miscellaneous maps,in the office of the County
Recorder of said County.
Attachment No. l A
Page 1 of I
4/s:G:4-97Agree:KOW01997:Loanagree
RLS 97-900
10/24197
Exhibit"A"
Lcgal Description
17291 Koledo Lane
All that certain land situated in the State of California,COUNTY OF ORANGE,CITY OF
HUNTINGTON BEACH,described as follows: ~
Lot 16 of Tract No.4301,as per map recorded in book 177 pages 11 and 12 of Miscellaneous
Maps,in the Office of the County Recorder of said County.
Except all oil,gas,petroleum,minerals and other hydrocarbon substances in,under and/or that
may be produced below a depth of 150 feet from the surface of said property,or any part thereof,
as reserved in the deed from Joseph V.Madden and wife,to Joseph Gerald Mabey and others,
dated October 13, 1950 and recorded November 13, 1950 in Book 2100 Page 411, Official
Records,Records of Orange County, California,which deed further provides, that such
reservations shall not entitle the said grantors,their heirs and assigns,to any use of,or rights in
or to any portion of the surface of said property to a depth of 150 feet below the surface thereof.
Attachment No. 1 A
Page 1 of 1
4/s:G:4-97Agree:Koiedo 1997:Loanagree
RLS 97-800
10/24/97
x
STATE OF CALIFORNIA )ss.
COUNTY OF ORANGE ?
On NOVEMBER 20, 1997, before me, KATHERINE M. SOTO, personalty appeared
ALLEN P. BALDWIN personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official s
Signature
KATHERINE�.
COMMWION l!1
04iMdGE
Notary Pub(io•caakwrAR
a' COufTY
(this area for official.aerial gal) �Y Cemrn�t�orr E�ire1R
AIJG,�.1998
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of
County of � c,
On_ i ,�.g-ram I _. 199- before me,_)Apt , 0-7*
Oafe U NM*an0 Tdk OfOnKer(e. .' ne Cos."if Pudgy
personally appeared _
Nemels)ofS,pregs) '
✓p rsonally known to me— to be the person(e)
whose names)is,tafe subscribed to the within instrument
and acknowledged to me that4ieJsheAhe7 executed the
WXmRCE L same in�herAheif authorized capacity(k*,and that by
tamrri3 ton i 1 T5]'�74 erAheir signature(e)on the instrument the person{,
fk)IMFutf'.CWkrrft or the entity upon behalf of which the personfa}acted,
Orange CoUVY executed the instrument.
�Catxn.E�nsOctz7mt
WITNESS my hand and official seat.
�F 5g0awre ofNaa P �
OPTIONAL
Though the Into n below is not required by law,it may prove valuable to persons retying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of A ached Document
Title or Type of Document:
17.24 1 4-1 73 5
Document Date:_—,1�.�.�I ._ t+K.�s~_17. 1997 Number of Pages: IS
Signer(s) Other Than Named Above: _&_,41: s,rw . 9,-# 5.
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name: '
❑ Individual ❑ Individual
❑ Corporate Officer ❑ Corporate Officer
Title(s): Title(s):
Q Partner—❑ Limited ❑General ❑ Partner—❑ Limited 0 General
❑ Attorney-in-Fact ❑ Attorney-in-Fact
❑ Trustee ❑ Trustee
❑ Guardian or Conservator ❑ Guardian or Conservator r
dOther. �rw�)— Tap of thumb here ❑ Other: Top o1 thumb Here
Signer Is Representing: Signer Is Representing:
!afU
0 1995 NaiKPW Notary Association•VM Rerrvnet Ave„PO.Box 7184•Canop Park,CA 91309-718e Prod.No.5907 Reoraw.Call Toll-Free 14M-878fi827
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of Nam.,
County of
On before me, �i�1a �a. �• -�w. •� r,U
Dare Nana and Title of Officer 1e.g., Doe,Noary Pubt%rl
personally appeared _ _ _ _ -
_r
Name(a}�srgnera�
Lrpersonally known to me- to be the person(*]
whose name(&}isle*e subscribed to the within instrument
and acknowledged to me that WsheA4ey executed the
NU4fBttICE L HDW same in 4WherMieimuthorized capacity oQ,and that by
CaT rl4§cr:# ttS7174 I hicAer heir-signatureO on the instrument the person(.&),
,. NOO.ClryPwt)Fc-ccrfornia or the entity upon behalf of which the personH acted,
Or3rge Catmty executed the instrument.
My Comm.
WITNESS my hand and official seal.
—gyp sgnetare a Notary Uw
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
I7a&1i- 7351 Xw. ,
Document Date: ,L�7al�sitc1 /7.
,�c��,,di;�Iq 47 Number of Pages: t S _
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
P
Signer's Name: c�o,�_ 6c/dc Signer's Name:
❑ Individual ❑ Individual
❑ Corporate Officer ❑ Corporate Officer
Title(s): Title(s):
❑ Partner—❑ Limited ❑General ❑ Partner—❑ Limited ❑General
❑ Attorney-in-Fact ❑ Attorney-in-Fact
❑ Trustee ❑ Trustee
❑ guardian or Conservator o e - ❑ Guardian or Conservator -
C✓Other: eAtA ToD of tnurnb here ❑ Other: Top of thumb here
Signer Is Representing: Signer Is Representing:
0 1995 National Notary Association•8236 Awnmet Ave.,P.O.Boa 7184•Canoga Park.CA 91309.7184 Prod.No.5907 Reorder.Can ToN-Free 1.80"764W
Exhibit"A"
Legal Description
17291 Koledo Lane
All that certain land situated in the State of California,COUNTY OF ORANGE,CITY OF
HUNTINGTON BEACH,described as follows:
Lot 16 of Tract No.4301,as per map recorded in book 177 pages 1 I and 12 of Miscellaneous
Maps, in the Office of the County Recorder of said County.
Except all oil,gas,petroleum,minerals and other hydrocarbon substances in,under and/or that
may be produced below a depth of 150 feet from the surface of said property, or any part thereof,
as reserved in the deed from Joseph V. Madden and wife,to Joseph Gerald Mabey and others,
dated October 13, 1950 and recorded November 13, 1950 in Book 2100 Page 411, Official
Records, Records of Orange County, California, which deed further provides, that such
reservations shall not entitle the said grantors,their heirs and assigns, to any use of,or rights in
or to any portion of the surface of said property to a depth of 150 feet below the surface thereof.
w Attachment No. I
Page 1 of 1
41s:G:4-97Agrcc-Koledo 19971oanagree
RLS 97-900
10124197 �r�
Exhibit"A"
V Legal Description
17351 Koledo Large
Lot 1 I of Tract No. 4301,in the County of Orange, State of California,as per map recorded in
Book 177,pages 11 and 12 inclusive of miscellaneous maps, in the office of the County
Recorder of said County.
V
Attachment No. 1 A
Page 1 of 1
41s:GA-97Agree:Kotcdo 1997.Loanagrer t
RLS 97-900
10I24i97
4
Location Map
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OCCIIC Pro Forma
ATTACHMENT #3
ORANGE COUNTY
COMMUNITY HOUSING CORPORATION.
October 22 1997 .,' ` rx•'s �'}}
Greg Brown �� :¢ RECEIVED
City of Huntington Beach
2000 Main Street OCT 24 1997
Huntington Beach, CA 92648
�• ,r` �-f,�`; 7..i's .';�s ,�,s r , 1 DEPARTMENT OF
re: Request for HOME and Relocation'Fu!.'nding117291_Koledo•.LaneF-COt4OLitC DFVFLOP""'T
Dear Greg: r rr�k: .' ''t ; �i' .• .q.-��i
AI
Pursuant to our discussions acid Work.over,this past year;:lt is'requested that the City of
Huntington Beach fund the'purchase'of.a:4plex at 7 7351,.Wed6;Lane with $190,000 in
federal HOME funds and$90,000 in'rehab funds both of which will be secured by a 2nd
and 3rd trust deed respectivelyl:,�
Please note that the operating proformas 'indicate a'minimum 41,200 per year payment
beginning on January 1 at the end of the 3ral year.-; r
The appraisal, forwarded earlier,indicates-a value of$260,000..
The lst trust deed lender for a minimum of J90,000 and maximum of$100,000 will either
be Western Financial Bank (Ron Rohrer at'727 1660j or_��n-FHA through RPM Mortgage
(Dan Garber 224 4200 x4252). ..:
OCCHC will ownerfbuild the rehab work utilizing the services of our Rolando Jimenez and
subcontractors. It is understood that the�ity:4i11 do an inspection, prepare a deficiency
list, inspect for completion at the end of tfie project and utilize US Escrow for funding on
the $60 000 rehabilitation loan.
Relocation expenses are expected and it S requested that the City work with OCCHC on
this issue which is to be fully resolved bar Ju'""j, " 1998.
d y,
[
Escrows are scheduled to close on or be1jr'F ri November 28, 1997.
Looking forward to another Oakview neighborhood improvement combined with the
provision of housing affordable to extrehidy lfaw income families for many decades to
come, l am
You s truly : r,
C { ; -t•�1,
A le
Executive irector
1833 East 17th Street, Suite 207, Santa Ana, California 92705-8629 (714) 558-8161
Sheetl
t
17291 Koledo Lane, Huntington Beach f operalivft,tomra
f Budget I 114I2?l97 I r I I I I
17.1
FRoofingi
urvla Updated a Per 1997 1 19981 19991 20001 20011 20021 2003
scription Cost Span type Month Annual i I I i 1
ovenng 7 years reserves 48 $76 599 623 648 674 701 729
Mechanical reserves 60 724 749 779 810 842 878 911
s 3 years reserves 16 192 200 208 216 225 234 243
2 years mservas 60 720 749 779 810 842 876 911
ape d.r.e. reserves 30 360 374 389 405 421 433 456
ries 5 years reserves 12 144 150 158 162 168 175 182
Concrete reserves 9 108 112 117 121 126 131 137
g 25 years reserves 7 84 87 91 94 98 102 1D6
RVESATING COSTS
SAM rAssessmints samian I owing cos 101 120 122 125 1 127 1 130 132 1 135
5,500 Insurance month cos 60 1 720 749 779 810 842 876 911
68-1 Water as billed cos 60 120 749 779 810 $42 878 911
58-2 Gas as billed oprtng cos 40 480 499 519 540 562 594 607
58.3 E as billed cos 24 288 300 312 324 337 350 364
68 4 TraWSewer monthty 22=cos 40 4801 499 519 540 662 584 607
1D44 L.andsepblaint moat cos 100 1,200 1,248 1,298 1,35D 1,4D4 1,460 1,518
20W Plumbing as billed oprIng cos 80 960 998 1.038 1,080 1,123 1,168 1,215
3000 Electrical as billed cos 20 240 250 260 270 261 292 304
4000 Misc Repair as blued opnng cos 120 1,440 1,498 1,558 1,620 1.685 1.752 1,822
4500 On Srte M mnt as billed oprtnq cos 40 480 499 519 540 562 $84 607
6000 Carpet Clean as baled opnrV Coe 12 144 150 156 162 168 175 182
Off ledge OCCHC Mgmnt ledger I oprVq cos 1001 1,200 1.2481 1298 1,350 1,404 1.460 1,518
6000 Marketing as baled I opting cos 1 241 288 1 3001 312 324 337 1 3501 364
Expenses 972 1 11.664 1 12,128 12,611 13,113 13,635 14l.V8 14,742
rows per month 242 Gross income 1,805 21.660 22.310 22,979 23,668 24,379 25.110 25,863
rsrvs per urkt 61 Not Operating Inc 833 9,996 10,182 10.3681 10.5561 10.744 1 10,9321 11,121
mOly j 1998 1 1999 1 2000 1 2001 I 2002 1 2003 1 2604
2010 Ist TD,consortiu 90.000 1st TD 1 7241 8.6901 8.6901 8,6901 8.690 8,6901 6,690 1 6.690
2200 2nd TO,HOME 190,01D0 1,200 1,200 1,200 1,200
2205 3rd TD,Rehab 60,000
2210 -
34Q000 109 1,3061 1,492 1,670 666 854 1,0421 1,231
Laundry 401 4801 485 490 1 4951 499 1 504 1 510
Loan- 90.000 Residual 1491 1.7861 1,977 1 2.1681 1,160 1 1.3531 1,547 1 1,741
IM Rate 2.0%
Amart 363
Pmt Am 724 1.15 debt avc
type WAS rent toWHUD Income Data
2br 35% 2 450 9W tam of 4 1 21,455
2br 459E 2 5D0 1,000 fam of 4 27,685
4 vcwy 5% net rent
low rentl 1.900 95 1.805
v low inc utilities total
HOME rent 2 bdrm 1 665 (371 628
HOME Bent 3 bdrm 1 768 (44)1 724
Page 1
Sheet 1
I I 1 I I I 1 I 1 I
20041 20051 2W61 2007t 2008i 20091 20101 2011t 20121 20131 2014
I I I
758 788 824 1 853 887 9221 959 9971 1.037 1 1,0791 1.122 4% Floor Coven
947 985 1,025 1,068 1,108 1.153 1,199 1.2471 1.297 1.349 1.402 4% Mechanical
253 263 273 284 296 307 320 332 346 360 374 4% Screen
947 985 1.025 1,066 1,108 1,153 1,199 1,247 1,297 1.349 1,402 4% Painting
474 493 512 533 554 576 599 623 648 674 701 4% Landscape
1891 197 205 2131 222 231 240 249 259 270 280 4% Draperies
142 148 154 160 1661 173 180 187 195 202 210 4% Paving
111 1 1151 1201 1241 129 134 1 1401 1451 151 1 157 164 4% Roofing
1381 141 1 1431 146 149 1521 155 1581 162 165 168 2% Assessmnls
V
965 1,025 1.066 1.108 1,153 1,199 1.247 1,297 1,349 1.402 4% Insurance
985 1,025 1.068 1.108 1,153 1.199 1.247 1.297 1.349 1.402 4% Water
657 683 711 739 768 799 831 864 899 935 4% GaslSwim P 394 410 426 443 461 480 499 519 539 561 4% Elecfri
657 683 711 739 768 799 $31 864 899 935 4% Trash/Sewer
1,642 1.708 1,776 1.847 1,921 1.998 2.076 2.161 2.248 2,337 1 4% Landscp Maint
1.263 1 IA14 1,366 1.421 1,478 1.537 1,598 1.662 1.729 1,798 1.870 4% Plumbing
3119 328 342 355 369 384 400 416 432 450 467 4% Electrical
1,995 1.971 2.050 2,132 2,217 2,3051 2,398 1 2.494 2,593 2,697 2.805 4% Misc Repair
632 657 6831 711 739 768 7991 831 1 864 899 935 4% On Site Mgmn
189 197 205 213 222 231 2401 2491 259 270 280 4% Carpet Clean
1.579 1,642 1,708 1,776 1 1.947 1.921 1.9981 2,0781 2.161 1 2.248 2,337 4% OCCHC Mgm
3791 394 4f0 1 4261 443 461 4801 4991 5191 539 561 4% Marketing
15.3291 15.9391 16.574 1 17.2341 17,921 1 18,6351 19,377 1 20.149 20.952 1 21,7861 22.655
26,6391 27.4381 28.261 1 29,109 1 29.9831 30.682 1 31.8081 32.763 33,746 34.758435.801 1 3%
11.3101 11.4991 11.6871 11.5751 12,0621 12.247 1 12.432 1 12,614 1 12.7941 12.972 1 13.146
2005 1 2006 1 2C07 1 2005 1 2D09 1 2010 I 2011 1 2012 1 2013 1 2014 1 2015 1
8.690 8,690 8,690 1 8,690 8,69D 8.6-901 8.6901 8.6901 8,6901 8.6901 8.690
1.200 1.200 1.200 1.200 1,200 1,2001 1.200 1 1.200 1 1,200 1.200 1.200
1,420 1,6091 1.797 1.985 2.172 2,358j 2.5421 2.724 1 2.904 3,082 3.256
5151 520 525 1 5301 538 541 548 5521 557 5631 $68 1%
1,935 2,129 j 2.3221 2,5151 2,7071 2.8981 3,088 3.2761 3,4611 3,6441 3,825
Page 2
{ Sheet!
10/22/97 KOLEDO II APARTMENTS Rehabilitation Costs
4 ea 2br units @ 850sf I 17291 Koledo Lane
category Original IRevised !Paid Balance per unit
1000 BUILDING COST 741501 58600 0 58600 11720
2000 SITE DEVELOPMENT 13500 13500 0 13500 2700
adds
3000 GEN CONTRACTOR 0 0 0 0 0
ACQUISITION COST 235000 235000 0 235000 47000
4000 FINANCE COST 9100 9100 0 9100 1620
9000 PREDEVELOPMENT 23800 23800 0 23800 4760
PROJECT COST 355550 3400001 0 340000 68000
PROJECT COST 355550 340000 68000
PRIMARY FINANCING -91000 -90000 -18000
Rehab Deferred Loan -20000 -60000 -12000
HOME Loan -244550 -190000 .38000
01 0 0
(Original (New fist I paid I balance
1001 Found/Slab 0 ]no
1050 Interior Demo 1000 1000 0 1000 200
1070 Framing 0 0 0
1075 Finish Carp 5000 5000 0 5000 1000
1100 Insulation 0 0 0
1130 Plumbing 12500 10000 0 10000 2000
1140 Heating 2500 1000 0 1000 200
1170 Roofing/fund rsry 5000 3000 0 3000 600
0 0 0
1180 Stucco 2000 2000 0 2000 400
1190 Rain utters 550 550 0 550 110
1200 Drywall 4000 4000 0 4000 800
1230 Electrical 2000 2000 0 2000 400
1231 Elec Fixtures 1000 1000 0 1000 200
0 0 0
1232 TV/Phone/Cable 500 500 0 500 100
1250 Alum Wln/Ors 1250 1250 0 1250 250
1270 Garage Doors 400 400 0 400 80
1300 Cabinets - 12000 8000 0 8000 1600
1370 Formica tops see 1300 0 0 0
0 0 0
1390 Paint 5000 4450 0 4450 890
1400 ASB Abate 2000 2000 0 2000 400
0
1430 Oven/Hood/Dis sl 2000 2000 0 2000 400
1450 Floor Covemg 100001 5000 0 5000 1000
1460 Stairs/Rails 2000 2000 01 2000 400
Page 1
Sheetl
1480 Constr Clean U 500 500 0 500 100
1500 Mailboxes 500 500 0 500 100
1510 Med Cab/Mirmr see 1520 0 0 0
1520 Arch Hardware Soo 800 0 800 160
1530 Shower Rod/Crtn 250 250 0 250 50
1570 Levelors/E uiv 1400 14001 01 14001 280
total 74150 586001 01 586001 11720
original revised paid balance
2050 Demo/Site Prep 4000 4000 0 4000 800
2100 Flatwork 2000 2000 0 2000 400
2110 Drives/Curbs 1500 1500 01 1500 306
01 0 0
2410 Blkwrk[Fence 750 750 0 750 150
2420lronwrk/Fence 750 750 0 750 150
0 0 0
2450 Landscaping 4500 4500 0 4500 900
2460 Playground 0 0 0
total 13500 135001 01 13500 2700
3100 Supervision 0 0 0
3200 flee o 0 0
3300 Reimburseables 0 0 0
total 0 01 01 01 0
4100 Perm Loan Fee 2200 2200 0 2200 440
4110 Constr Ln Fee 0 0 0 0
4120 Inspection Fee 0 0 0 0
4200 Loan Escrow 2200 2200 0 2200 440
4300 Appraisal 1200 1200 0 1200 240
4400 Constr Interest 0 0 0 0
4500 Insurance 1000 1000 0 1000 200
46001 Prope5j Taxes 2500 2500 0 25001 50o
9100 9100 OF— 91001 1820
9000 Legal/Admin 8000 10000 0 10000 2000
9010 Architect 0 0 0 0
9040 OMB 133/Audit 1600 1600 0 1600 320
9041 ASB/Lead R t 4200 4200 0 4200 840
9045 Landscp Arch 0 0 0
9050 Blueprints 0 0 0
9065 Permit Fees 1000 1000 0 1000 200
9066 Relocation Exp 2000 0 0 0 0
9068 Reserve for Vacancy 0 0
9070 Contingency_ 7000 70001 0 7000 1400
0 0
total 23800 238001 0 23800 4760
Page 2
%f-`)1V' ANGE COUNTY
COMMUNITY HOUSING CORPORATION
October 22, 1997 1-11
9
�,ePA
f,
Greg Brown !"/CD,�4r
A-
V, Iti Or
City of Huntington Beach
0 oNkcNP
2000 Main Street F.6
vi-
Huntington Beach, CA 92648 f
re: Request for HOME and Relo'c4oh-TEdingli1 O'Lane' l
IL
Dear Greg: .� e 3-1
T
Pursuant to our discussions'-aiidl«v6rk;over-,Us-past-.'y.ear,',it- is *uested that the City of
Huntington Beach fund the'�iiich6se-6f a'4plex;a"t 1735 1 K;leido`�tane. $190,000 in federal
HOME funds and $90,006'in'iiiiab,f'u-ndi',.b6i� of Which i�ill.6-6�ecuiiid by a grid and 3rd trust
deed respectively.
Please note that the operating proformas.m`di.catie a minimum.$1,2,0.0 p,6r,.year payment beginning
on January I at the end of theJrd"Year.
rT
The appraisal, forwarded earlier;indicates h yald e- of$260,066:---
The 1st trust deed lender for a minimum of$90,006and maximum of$100,000 will either be
Western Financial Bank (Ron Rohrer at 727 1660)�8i,an FHA' i&iiough RPM Mortgage (Dan
Garber 224 4200 x4252).
OCCHC will ownerlbuild the rehab work,titi lizing.lhe services of our Rolando Jimenez and
subcontractors. It is understood that the City will ',do an inspection, prepare a deficiency list,
inspect for completion at the end of the project anduhlize US Escrow for funding on the$60,000
rehabilitation loan.
Relocation expenses are expected and it is que5 e that the City work with OCCHC on this
,
issue which is to be fully resolved by June I.,jr9981
Escrows are scheduled to close on or before, ovember 28, 1997.
1 1 -
I .- 'it
Looking forward to another Oakview neighbor oj4 mprovement combined with the provision
of housing affordable to extremely low income faird""'lies for many decades to come, I am
Yours truly,
f
*AIen P.
Executive Director
1833 East 17th Street, Suite 207, Santa Ana, California 92705-8629 (714) 558-8161
Sheep
17351 Koledo Lane, Huntington Beach OperatingPmforms
1 Budget I 110122197 I I I I I 1 I
155,
P
units Updated Lrfe Per 1997 1 19y81 19991 20001 20011 20021 2003
escription Cost Span type Month Annual I I I I I I
r Coven 7 ears reserves 48 576 599 623 648 674 701 729
chanical reserves 60 720 749 779 810 842 876 911
eens 3 years reserves 18 192 200 208 216 225 234 243
Painting 2 ears reserves 60 720 749 779 810 842 878 911
dscape d-r.e. reserves 30 360 374 389 405 421 438 456
penes 5 years reserves 1Z 144 150 156 162 168 175 182
ing concrete reserves 9 108 112 117 121 126 131 137
fing 25years reserves 7 84 87 91 94 98 i02 106
ERVES
ERATING COSTS
essmnts semi an ON 10 120 122 125 127 130 132 135
6.500 Insurance month ws 6D 720 749 779 810 $42 876 911
_.!Li_ Wafer as billed cos 60 720 749 779 St0 942 676 oil
58-2 Gas as billed cos 40 480 499 519 640 562 654 607
68.3 E as billed cos 24 288 300 312 324 337 350 364
584 Trash/Sewer month Car 40 480 499 519 540 562 584 607
1000 Landscp Maint month cos 100 1,200 1,248 1,298 1,350 1,404 1,460 1,518
2000 PlumbiN as billed opring Cos 80 960 998 1,038 1,080 1,123 1.168 1,215
3000 Electncal as billed q>rtng cos 20 240 250 260 270 281 292 304
4000 Mise Repair as billed Cps 120 1,440 1.498 1.558 1,520 1,685 1.752 1.822
4500 On Sde Mgmnt as billed opMV cos 40 480 499 519 540 562 584 607
6000 Carpet Clean as biled 2mcos 12 144 150 156 162 168 175 182
Off OCCHC M mnt cost 1001 1,200 1.2481 1,298 1.350 1.404 1,460 1,518
6000 Marketing as blled oprtng cps 24 288 300 312 324 337 350 364
Expenses 1 9721 11,664 12.1281 12.611 1 13.1131 13.6351 14.178 14.742
rsrvs per month 242 Gross Income 1 1.805 1 21.6601 22.310 1 22.979 1 23.668 1 24.379 1 25,110 1 25,863
rsrvs per urvt 61 Net Operating 1ne 1 8331 9,996 1 10.182 10,3681 SD.556 1 10.744 1 10.9321 11,121
cooly 1 1998 I 1999 1 2000 1 2001 1 2002 1 2003 I 20D4
2010 Ist TD,ConsOAiu 90,000 Ist TO 124 8.6901 6.6901 8.6901 8,6901 8.6901 8.6901 8,690
2200 2rd TD,HOME 190,000 1,200 1,200A 1.200 1.200
2205 3rd TD,Rehab 60.000
2210
340,000 1091 1.3061 1.4921 1,878 6661 854 1 1.042 1 1.231
Laundry 401 480 485 1 490 1 495 1 499 1 5041 510
loan 90.000 Residual t49 I 1,786 1 1,9771 2,168 1 1.1601 1.3531 1.547 i 1.741
Int Pala 9.0%
Amort 360
Pmt Am 724 1.t 5 debt avic
type units rent total HUD Income Data
2br 35% 2 450 900 tam of 4 - 21,455
2br 45% 2 1 S00 1.000 fam of 4 27.585
4 vcr yt 5% net rent
total rent 1.900 95 1,805
v low ne uhlrbes I total
HOME rent 2 bdrm i 95 (37)1 628
HOME rent 3 bdrm 1 768 44)1 724
Page t
Sheetl
1 I I I I 1 I I I I
20041 20051 23061 20071 20061 20091 20101 20111 20121 20131 2014
758 788 820 1553 837 9221 959 997 1.037 1.079 1,122 4% Floor
947 985 1.025 1,068 1,108 1,1531 1,199 1.247 1,297 1,349 1,402 4% Mechanical
253 263 273 284 296 307 320 332 346 360 374 4% Screens
047 985 1,025 1.068 1.108 1,153 11199 1.247 1.297 1.349 1.402 4% Painting
474 493 512 533 554 $76 599 623 645 674 701 4% Landscape
189 197 205 213 222 231 240 249 259 270 280 4% Draperies
142 1 US 1 154 1 1601 166 173 180 187 195 1 202 210 4% paving
111 115 120 124 129 134 140 145 151 157 164 4% Roofing
138 f 141 143 j 146 149 1521 155 j 158 1 162 165 168 1 2% ASsessmnts
947 985 1,025 1 1.066 1,108 1.1531 1.199 1.247 1 1.297 1.349 1,402 4% Insurance
947 985 1.0251 1.066 1,106 1,1531 1.199 1.247 f 1.297 1,349 1,402 4% Wafer
632 657 683 1 711 739 768 799 831 864 899 935 4% GastSwim Po
379 394 4101 426 443 461 480 499 519 539 561 4% Electricity
632 657 683 711 739 768 799 831 864 899 935 4% TrashMAe
1.579 1.642 1.708 1,776 1.847 1.921 1,998 2.076 2,161 2,248 2,337 4% Landscp Maint
1.263 1,314 1,368 1.421 1.473 1.537 1,598 1.662 1,729 1,796 1.870 4% Plumbing
316 325 342 355 369 384 400 416 432 450 1 467 4% 1 Electrical
1,895 1.971 Z,050 Z132 2,217 2.305 1 2.398 2.494 Z593 2.897 2.805 4% Misc Repair
632 657 683 711 739 768 799 1 831 864 899 935 4% On Site Mgmn
189 191 205 2131 222 231 2401 2491 259 270 280 4% Carpet Clean
1,579 1.6421 1,708 1,7761 1.847 1,921 1,9981 2,07E 1 2.161 2.248 2.337 4% OCCHC Mgm
379 394 1 410 1 426 1 443 461 480 1 4991 519 $39 561 4% Marketing
15,329 15,939 16,5741 17,234 1 17,921 1 18,6351 19,3711 20.149 0 20,952 21,786 22.655
26.639 27,438 28.261 29.109 29,963 30.882 31.608 32,763 33.746 34,758 35.801 3%
11,310 11.499 11.687 11.875 12.062 12.247 12.432 12.614 IZ794 1 12,9721 13.146
2005 1 2006 1 2007 1 2009 1 2009 1 2010 1 2011 1 2012 1 2012 1 2014 1 2015 1
8,6901 6.690 8,6901 8,690 8.690 8.6901 8,6901 8.6901 8.690 6,690 6.690
1.200 1.200 1,200 1,200 1.200 1.2001 1,200 1 1.200 1,200 1,200 1,200
1,420 1.6091 1.7971 1.0851 Z172 I Z358 I Z542 2.724 f $904 3.021 3.256
515 520 5251 5301 5361 541 1 546 6521 557 1 663 568 1 1%
1.935 2,129 2.322 2.5151 2,7071 2.898 1 3.088 3,278 1 3.4611 3.6441 3.825
Page 2
Sheetl
10l22l97 KOLEOO II APARTMENTS Rehabilitation Costs
4 ea 2br units CD 850sf 17351 Koledo Zane
category Original lRevised jPald lBalanm per unit
1000 BUILDING COST 741501 58600 0 58600 11720
2000 SITE DEVELOPMENT 13500 13500 0 13500 2700
adds
3000 GEN CONTRACTOR 0 0 0 0 0
ACQUISITION COST 235000 235000 0 235000 47000
4000 FINANCE COST 9100 9100 0 9100 1820
9000 PREDEVELOPMENT 23800 23800 0 23800 4760
PROJECT COST 355550� 340000 0 340000 68000
PROJECT COST 355550 340000 68000
PRIMARY FINANCING -91000 .90000 -18000
Rehab Deferred Loan -20000 .60000 -12000
HOME Loan -244550 -190000 -38000
OJ 01 0
jOriginal New Est paid balance
1001 FoundlSlab 0 0
1050 Interior Demo 1000 1000 0 1000 200
1070 Framing 0 0 0
1075 Finish Carp 5000 5000 0 5000 1000
1100Insulation 0 0 0
1130 Plumbing 12500 10000 0 10000 2000
1140 Heating 2500 1000 0 1000 200
1170 Roofing/fund rsry 5000 3000 0 3000 600
0 0 0
1180 Stucco 2000 2000 0 2000 400
1190 Rain utters 550 550 0 550 110
1200 Drywall 4000 4000 0 4000 800
1230 Electrical 2000 2000 0 2000 400
1231 Elec Futures 1000 1000 0 1000 200
0 0 0
1232 TV/Phone/Cable . 500 600 0 500 100
1250 Alum%in/Drs 1250 1250 0 1250 250
1270 Garage Doors 400 400 0 400 80
1300 Cabinets 12000 8000 0 8000 1600
1370 Formica to s see 1300 0 0 0
0 0 0
1390 Paint 5000 4450 0 4450 890
1400 ASB Abate 2000 2000 0 2000 400
0
1430 Oven/Hood/Dispsl 2000 2000 0 2000 400
1450 1 Fluor Covemg 10000 5000 0 5000 1000
1460 StairslRaiis 20001 20001 IDI 20'001 400
Pagel
Sheetl
1480 Constr Clean Up 500 500 0 5001 100
1500 Mailboxes 500 500 0 500 100
1510 Med Cab/Mirror see 1520 0 0 0
1520 Arch Hardware 800 800 0 800 160
1530 Shower Rod/Crtn 250 250 0 250 50
1570 Levelors/E uiv 1400 14001 0 1400 280
total 74150 58600 0 58600 11720
original revised paid balance
2050 Demo/Site Prep 4000 4000 0 4000 800
2100 Flatwork 2000 2000 0 2000 400
2110 Drives/Curbs 1500 1500 0 1500 300
Q 0 0
2410 Blk%vrk/Fence 750 750 0 750 150
2420lronwrk/Fence 750 750 0 750 150
0 0 0
2450 Landscaping 45001 4500 0 4500 900
2460 Play2round 10 0 0
total 135001 135001 0 13500 2700
3100 Supervision 0 0 0
3200 Fee 0 0 0
3300 Reimburseables 0 0 0
total 0 0 0 0 0
4100 Perm Loan Fee 2200 2200 0 2200 440
4110 Constr Ln Fee 0 0 0 0
4120 Inspection Fee 0 0 0 0
4200 Loan Escrow 2200 2200 0 2200 440
4300 Appraisal 1200 1200 0 1200 240
4400 Constr Interest 0 0 0 0
4500 Insurance 1000 1000 0 1000 200
4600,PrDperty Taxes 25001 2500 0 25001 500
91001 91001 Oj 100 1820
9000 Le al/Admin 8000 10000 0 10000 2000
9010 Architect 0 0 0 0
9040 OMB 133/Audit 1600 1600 0 1600 320
9041 ASB/Lead R t 4200 4200 0 4200 840
90451 Landscp Arch 0 0 0
9050 Blueprints 0 0 0
9065 Permit Fees 1000 1000 0 1000 200
9066 Relocation Exp 2004 0 0 0 0
9068 Reserve for Vacancy 0 0
9070 Contingency 7000 7000 0 7000 1400
0 0
total 23800 23800 0 23800 4760
Page 2
w
Deal Point Summary
F
Acquisition of 17291 & 17351 Koledo Lane
The Redevelopment Agency of the City of Huntington Beach and Orange County
Community Housing Corporation (OCCHC)
Deal Points:
1. The City of Huntington Beach will provide $380,000 in HOME Investment
Partnership funds as a loan to Orange County Community Housing Corporation
(OCCHC). These funds will be used to acquire two 4-unit rental properties (eight
total units) located at 17291 and 17351 Koledo Lane.
2. All eight of the units will remain affordable for thirty years for households earning
less than 50% of Orange County median income adjusted for family size. An
affordable housing agreement, with a deed of trust, promissory note and regulatory
agreement, will be recorded against the properties as security for the loan. At no
time will the rents for any unit exceed the "low* HOME rent as defined by the
Department of Housing and Urban Development (HUD).
3. OCCHC agrees to guarantee the amount of reserves that it shows on the final
approved pro forma that is to be submitted to the City. OCCHC will submit its
audited financial statements to the City annually after acceptance and certification
of such statements to OCCHC's Board of Directors . The City will review the
statements and may choose to require further analysis or review by an third party,
but must do so at its own expense.
4. Beginning in the third year of the agreement, and continuing annually through the
thirtieth year, OCCHC will forward the proceeds of a residual receipts account to
the City as a means of repayment of the HOME assistance. The minimum amount
of the annual repayment will be $1,200.00. OCCHC agrees to make-up any
shortfall that may exist in the account so that the minimum repayment is available.
The repayment period may be extended for up to two additional years with
department head approval.
Koledo Lane Deal Points, continued
Should the economics of the project not allow for the minimum repayment of
$1,200.00, then OCCHC will have the right to appeal to the City Council and
request that the minimum repayment be reduced, suspended or forgiven. OCCHC
agrees to bear the entire burden of proving its inability to meet the minimum
payment. The City Council will reserve the right to reduce, suspend, forgive or
renegotiate the terms of repayment based on the evidence submitted by OCCHC.
Both parties recognize that the annual repayment amount may not completely
repay the principal balance after thirty years. Any balance will be repaid at that
time, or terms may be re-negotiated by the parties. The City reserves the right to
audit the financial statements of OCCHC to determine or verify the balance of the
residual receipts account. Any principal amount of the loan remaining will be
adjusted annually for inflation based on the Consumer Price Index (CPI), or
another comparable index, as mutually agreed upon by both parties.
Relocation
1. A relocation plan must be submitted to the City for approval prior to the relocation
of any tenants from the property. Name, gender, age, ethnicity, household
income, and amount of relocation payment must be furnished in the relocation
plan. Further, copies of all notices required by the Uniform Relocation Act must be
furnished to the tenants as part of the relocation and official copies must be given
to the City for its records. OCCHC must keep original copies in its files as
required by HUD.
2. OCCHC must agree to indemnify the City against any relocation obligations and
expenses that arise from the acquisition or rehabilitation of the subject properties
beyond those obligations identified in the relocation plan, at Federal Housing
Quality Standards or higher as required in the Affordable Housing Agreement;
and also from any relocation and expenses that arise after the acquisition and
rehabilitation activities are complete.
g:bro«nWo1cdo2'%dca1pnt2.doc 2-
Koledo Lane Deal Points, continued
Rehabilitation
9. OCCHC will rehabilitate the subject properties to conform with (at a minimum)
federal housing quality standards. OCCHC agrees to maintain the properties for
the duration of the affordable housing agreement and will allow the City to inspect
both the interiors and exteriors of the subject properties on an annual basis.
2. OCCHC will furnish a list of proposed repairs and improvements to the City for
informational purposes priorto rehabilitation. OCCHC is funding the rehabilitation
work with Community Development Block Grant (CDBG) funds, and the City will
have the right to review and approve the list prior to the start of any rehabilitation
work.
3. The City will conduct progress inspections once rehabilitation work has started.
The City reserves the right to independently inspect the units and OCCHC agrees
to provide access to the City with forty-eight (48) hours notice.
4. OCCHC will furnish copies of all building permits for all items required to be
permitted under the Huntington Beach Municipal Code, with proof of inspection by
the Huntington Beach Building Department, where applicable.
S. OCCHC will test for the presence of asbestos and lead-based paint as required by
HUD regulations. OCCHC will remediate any asbestos or lead-based paint
hazards where the level of those substances is found to be in excess of
acceptable thresholds. Copies of all test results, tenant notifications, and
remediation plans must be provided to the City, or to authorized representatives of
the City.
Environmental Issues
9. The City has conducted an environmental review of the sites in accordance with
HUD regulations at 24 CFR Part 58. Using those regulations as a guide, the City
g:bro►%nikoicdo2ldcatpiit2.doc 3 .
Koledo Lane Deal Points, continued
has determined that the project is considered mcategorically exempt" from NEPA
(National Environmental Policy Act of 1969) and is not subject to further, more
complicated assessment.
2. This review, while thorough, cannot be considered as exhaustive or all-inclusive
as a Phase I due diligence exercise. Because of this, OCCHC agrees to indemnify
and hold the City harmless from all liabilities (including penalties, fines, and
monetary sanctions) arising from hazardous materials storage on the subject
properties, or hazardous materials contamination of the subject properties.
OCCHC agrees to provide any notices, orders, or reports concerning
f environmental matters that may affect the subject properties to the City pdor to the
funding of the acquisition loan.
Property Management Issues
1. OCCHC will maintain the sites during the affordability period in accordance with a
restrictive covenant which will be secured against the properties. Should OCCHC
fail to adequately maintain such areas, and any problems identified by the City are
not corrected within sixty (60) days from the date of written notice from the City,
the City may perform the necessary maintenance and OCCHC will pay all
reasonable costs for that maintenance. Further, if any conditions are identified as
health and safety violations that pose a danger to life and limb, the violations must
be corrected within three (3) days.
Default Provisions
1. OCCHC agrees to the default provisions contained within the draft HOME
agreement. To summarize, the default provisions involve the immediate
repayment of the HOME assistance, with interest, should any default by OCCHC
occur during the affordability period (30 years).
g:bro%%m\kolcdo21dea1pnt2.doc 4-
. e.
Attachment No. 5
SCOPE OF WORK
The projects are two 4-unit multifamily housing developments located at 17291 and 17351
Koledo Lane,and is composed entirely of two bedroom apartments that are in average to below
average condition. Improvements planned include the rehabilitation of both the interior and
exterior of the buildings.
HOME funds are being provided for the acquisition of these properties. OCCHC is rehabilitating
the properties with other funds.
All rehabilitation work will conform to Housing Qualify Standards and all other applicable
building codes, standards,and regulations.
Attachment No. 5
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Attachment No. 6
SCHEDULE OF PERFORMANCE
I. QEENERAL PROVISIONS
1. ESeQution of Avreemot by Agency,
The Agency shall approve and execute Within thirty(34)days after the date of
this Agreement and shall deliver one execution and submission of five(5)copies of
(1)copy thereof to the Developer. this Agreement by the Developer.
2. Submission of Development Proposal
Developer submits its Development Completed.
Proposal to the Agency.
I Preparation_o NEPA,Documentation Completed.
It. REHAAILITATIOMPFjASE
4. CommencemCnt of Construction.
Developer shall commence Within forty-five days after the Agency's
construction of property rehabilitation, approval of Agreement.
5. Completion of Construction.
Developer shall complete construction Subject to any permissible delays,Developer
of all of the rehabilitation is to use due diligence to complete the project
improvements. within twelve(12)months after the start of
the rehabilitation improvements; however,the
Developer may request up to three(3)one(1)
month extensions to be granted by the
Director of Special Projects. Approval of
such three extensions(but no other
extensions)is not to be unreasonably
withheld;provided that,notwithstanding the
foregoing,construction shall be completed
Attachment No. 6
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i
no later than eighteen(18)months after the
earlier of(i)the commencement of the
rehabilitation improvements; or(ii)the time
established in this Agreement for the
commencement of construction of
rehabilitation improvements.
III. OPERATIONS PHASE
b. Disbursement of HOME Funds.
The Agcncy shall disburse the Loan. One payment for acquisition;progress
payment schedule for the rehabilitation.
7. SuhmjSsion of Income Certification.
Within thirty(30)days after execution of the
Agreement;and annually thereafter to be
submitted per HOME regulations on July 1,
for the duration of the Agreement.
Attachment No.6
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t
Attachment No. 7
CITY OF HUNTINGTON BEACH
HOME Investment Partnership Program
RENTAL PROPERTY ACQUISITION GUIDELINES
HOME regulations require that a participating city adopt basic guidelines for the acquisition of
existing rental property for use as HOME-funded affordable housing. The HOME program is
strictly targeted for low income households, which is expressed both through household income
limits and rental rate restrictions. The full text of applicable HOME regulations are provided as
attachments to these guidelines and are summarized as follows:
Alin imum-Stan dards
1. Costs eligible for HOME assistance are property acquisition costs,relocation costs,
"hard" and"soft" costs directly related to the project.
2. The use of Federal assistance requires the developer to comply with Davis-Bacon
standards.
3. At a minimum,90%of the units must be occupied by households earning no more than
60%of the County median as adjusted for household size. Based on 1993 HUD income
information,the maximum allowable income for a one person household is
approximately$23,760,the two person household income is$27,120, the three person
household income is$30,480 and the four person household income is$33,900.
4. At least 20%of the project units must be occupied by households earning no more than
50%of the County median as adjusted for household size. (These units can be used in
satisfying the requirement that 90%of the units be income restricted.) The 1993 HUD
income standards indicate that a one person household at 50%of the County median
income would earn$19,800,increasing to$28,250 for a four person household.
5. 100%of the units must have rents which do not exceed 30%of 65%of the County
median;however,at least 20%of the units must bear rents not greater than 30%of 50%
of the County median. Rents can be lower,but in all cases,HUD regulations at 24 CFR
92.216 must be strictly adhered to.
Attachment 7
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6. The duration of the affordability covenants varies depending on the level of assistance
provided to the project. For example,if the assistance is in excess of$40,000 per unit,
the minimum affordability period is fifteen(15)years. More favorable terms will be
granted for longer affordability periods(i.e.,30+years).
7. A project may contain multiple sites. In order to be considered as a single"project,"the
sites must be under common ownership and management,and must be located within a
four block area.
8. Monitoring of a project for compliance with HOME regulations is mandatory and is
governed by HOME regulations at 24 CFR 92.504(e).
SUBMISSION REQUIRENIENTS
The City intends to review developer submissions in two stages. The first level of evaluation is a
review of the developer qualifications and the conceptual scope of the proposed project. The
second component of the evaluation is an analysis of the proposed projects deal points.
Developers selected at the conclusion of this two stage process will be awarded Exclusive Rights
to Negotiate related to the identified project site.
It is the City's intent to analyze each of the components separately,in a sequential manner.
Initially, it will only be necessary for responding developers to submit the information requested
in Attachment 1 (5 copies). If the City evaluation indicates that the developer meets or exceeds
the defined criteria,the proposal%All then be processed further with additional analysis and
negotiation.
Proposals should be submitted to:
HOME Program Coordinator
City of Huntington Beach
Special Projects Division
2000 Main Street,4th Floor
Huntington Beach,CA 92648
The City of Huntington Beach reserves the right to reject any and all proposals at its sole
discretion. In the event that the City chooses a particular proposal for approval by the City
Council,the City reserves the right to further negotiate the terms of the proposal,and may,at its
discretion, require a good faith deposit as a means of defraying the City's costs during the
deposition process.
Attachment 7
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DEVELOPER QUALIFICATIONS
SUBMISSION REQUIREMENTS
In reviewing the developer qualifications, the City will consider the responses to the following
questions:
1. Provide a narrative description of the proposed project. This should include an
identification of the proposed site, the ownership of the site, and a conceptual
acquisition and/or rehabilitation plan.
2. Describe the developer's Jh=most rclevant projects. Provide photographs and a
brief description of these projects, including date, location, size, rehabilitation
costs, specific role of the developer, etc. Also include a local government
reference(name, title and telephone number)for each project cited above.
3. Describe the type of legal entity with whom the City would contract. Identify the
person in charge of negotiations, and key personnel who will be involved in
decision making.
4. Identify the members of the project team, including key consultants such as legal
counsel,architects, etc. Specify the relevant experience of the team members and
key consultants.
5. Describe the developer's previous experience in the on-going management,
operation and ownership of affordable housing projects.
6. Identify the anticipated long-term ownership structure of the proposed project.
7. Present evidence that the developer has the financial capability to carry out the
proposed commitments. The preferred evidence is the two most recent audited
financial statements of the developer. Elowever,other evidence may be submitted
at the developees discretion. Also include the method of long-term financing both
debt and equity, if any, for the three most relevant projects listed in "2" above.
TO BE SUBMITTED CONFIDENTIALLY UNDER SEPARATE COVER.
(Three copies only).
Each project will be evaluated against several criteria and will be given points based on those
criteria.
Attachment 7
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Affordable Housing Project Rating Sheet
Name of Project: 17291 and 17351 Koledo Lane
Address:
Criteria Points
Project Location
HUD enhancement area 10
Redevelopment project area 7
Low-mod census tract 5
City housing survey area rated "Poor" 3
Household Income Served
Number of units R %of project reserved 10
for low or very low income persons
Number of units and %of project reserved for
special needs groups(e.g. seniors)
Number of units and%of project reserved for 5
large families(3+bedrooms)
Attachment 7
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}
Rating Shect,Cont.
Developer Profile
Approved Community Housing Development Organization 10
("CHDO")
Nonprofit housing developer 5
For-profit developer
Women or minority oxvned business
Long-Term Affordability CQ13Iro1s
Length of Affordability*
30+ 25
20-30 years
TOTAL POI\'TS: 80
*Dependent upon the source of funds
N=: *Additional consideration will be given to projects based on average unit size,cost,
overall density of the project,as well as the cost of rehabilitation and other related
expenses
•A minimum of 40 points is required for any project to merit further consideration
Attachment 7
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Attachment No. 8
HOME INVESTMENT PARTNERSHIP PROGRAM
MULTI-FAMILY REHABILITATION
LOAN PROGRAM
I. General Information
A. Purpose
B. Assistance
C. Availability of Funds/Alternative
CDBG Loan Program
D. Goals
II. Guidelines
A. Property Eligibility Requirements
and Improvements
B. Applicant Eligibility
C. Loan Conditions
III. Procedures
A. Intake Activities
B. Inspection
C. Contractor Selection
D. Financial Review
E. Loan Closing
F. Construction Management and
Disbursement of Funds
Attachment No. 8
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L
G. Loan Collection
NEIGHBORHOOD ENHANCEMENT PROGRAM
MULTI-FAMILY RENTAL HOUSING REHABILITATION LOANS
1. GENERAL INFORMATION:
A. Pose
To provide multi-family rental property owners with deferred payment and low
interest rate loans to upgrade existing substandard apartment units. Mandated
goal of the HOME Program is to improve and preserve affordable housing for low
and very low income families.
B. Assistance
The City of Huntington Beach offers rental owners Deferred Payment Loans to
rehabilitate their properties. Deferred Payment Loans may be obtained for up to
50%of the total approved cost of rehabilitation. An average of$5,000 for S.R.O.
and zero bedroom, $6,500 for one bedroom,$7,500 for two bedrooms and $8,500
for three plus bedrooms will be loaned and the property owner is expected to
"match" these public funds by securing private financing for the remaining 50%
of rehabilitation costs. These Deferred Payment Loans require no payments to be
made,no accrual of interest,and no fees to be paid until such time as the rental
property building is sold or title transferred. The DPI,then becomes due and
payable and a one-time 5 percent fee is assessed. The minimum average
financing available is$1,000 per unit.
Below Market Rate Loans may also be obtained under the HOME Rental
Rehabilitation Program for the cost of rehabilitation. An average of$5,000 for
S.R.O. and zero bedroom,$6,500 for one bedroom,$7,500 for two bedrooms and
$8,500 for three plus bedrooms will be loaned with HOME Rehabilitation funds.
The minimum average financing available is$1,000 per unit and the interest rate
and terms are negotiable.
The program operates on a City-wide basis;however,priority will be given to
projects located in the various neighborhood enhancement areas.
Affordability covenants will be required in all cases,as outlined in HOME
Program regulations at 24 CFR 92.252.
Attachment No. 8
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tW4W
C. Availability of Funds/Alternative CDBG Loan Program
When the HOME Rental Rehabilitation Grant funds are fully committed,an
alternative Rental Rehabilitation Loan Program will be made available to
interested property owners. The program will utilize CDBG funds for differed
payment loans and matching funds at G%interest rate. Although section 8
certificates are not involved,the City will require that 90%of the units following
rehabilitation will be rented to low and very low income households. This
element is binding by way of the owner certification agreement between the City
and property owner.
The CDBG Rental Rehabilitation Program will follow the same guidelines as
outlined in the Rental Rehabilitation Loan Program.
D. fwals
Cooperation between public agencies and the private sector is vital to meeting the
rental housing needs of lower and moderate income families in the City of
Huntington Beach. One of the ways to meet these needs to provide low or no
interest loans to encourage multi-family rental property owners to rehabilitate
their properties and increase the supply of decent affordable housing for low and
moderate income families while preserving existing housing stock and revitalizing
old neighborhoods.
B. GUIDELINES
A. P opoy Eligibility Requirements and Improvements
Deferred Payment Loans(DPL)and Below Market Rate Interest Loans(BMRI)
are available to multi-family rental property owners of any income range on a
City-wide basis; however,priority will be given to projects located in a
neighborhood enhancement area. The property must meet the following criteria:
I. Be in need of repairs which meet the Building and Property Rehabilitation
Standards. Existing nonconforming uses and/or code violations must be
remedied as a top priority of the Rental Rehabilitation Loan.
2. At least 90%of the units are occupied by very low income families.
3. Eligible improvements include,but are not necessarily limited to,the
following:
Attachment No. 8
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a. Additions and alterations to increase the livability or usefulness of
existing structures, such as rooms,porches,stairways,closets,
bathrooms,and entrances. Garages may also be considered
eligible particularly in situations where off-street parking codes are
not being met.
b. Exterior work to help preserve or protect structures, such as
painting,roofing, siding,and property enhancements,such as
landscaping,sidewalks,and fences.
C. Interior work to make a structure more livable, such as painting,
papering,plastering,new flooring,and tile work.
d. Repairs,restoration, or replacement of important parts of
structures,such as heating systems,plumbing systems, septic
tanks,electrical wiring and service,structural and foundation
repairs,and built-in kitchen appliances in residential structures.
e. Fumigation and treatment of terminate and pest control.
f. Energy saving repairs and devices(solar heating, insulation,
window caulking,etc.)
g. Modifications which aid the mobility of the handicapped and
elderly.
h. All improvements must be physically attached to the property and
permanent in nature.
4. The following improvements are riot eligible:
Barbeque Pits
Bathhouses
Burglar Alarms
Burglar Protection Bars
Dumbwaiters
Fire Extinguishers
Greenhouses(except commercial greenhouses)
Hangars(airplane)
Kennels
Attachment No. S
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RLS 97-800
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Kitchen appliances not including stoves which are designed and
manufactured to be free-standing and are not built-in and
permanently affixed as an integral part of the kitchen in a
residential structure
Outdoor Fireplaces or Hearths
Penthouses
Photo Murals
Radiator Covers or Enclosures
Stands
Steam Cleaning of Exterior Surfaces
Swimming Pools
Television Antennae
Tennis Courts
Valance of Cornice Boards
Waterproofing of a structure by pumping or injecting any substance in the
earth adjacent to or beneath the basement or foundation or floors
5. After rehabilitation,projects must at least meet Section 8 Housing Quality
Standards for Existing Housing(HQS).
B. A1212licant Eligibility
DNIRI loans are available only to applicants of legal age and having the capacity
to competently enter into financial and contractual agreements. The borrower
must own the property to be rehabilitated. The following criteria shall apply to
applicant eligibility:
1. Length of Ownership-The unit must have been owned by the applicant at
least one year prior to the date of application for a loan. Owners may be
exempted from this rule if,in the opinion of the Rehabilitation Manager
and Program Manager,special benefits to the designated Neighborhood
Enhancement Area will result from the loan Activity. In the case of a
CHDO,or other eligible nonprofit,site control is required,but the length
of ownership may be less than one year.
2. All persons on title to the property must sign promissory note and deed of
trust.
3. If applicant's property is on a land lease basis,the lease must be for a fixed
term which expires no less than six months after the maturity date of the
loan.
Attachment No. 8
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4. Credit history, income to debt ratio,and employment status are reviewed
and verified by the bank contracted by the City. The bank advises the City
and participants as to approval or rejection of applicant.
5. Owner must be able to demonstrate a 20%before-rehabilitation equity
investment in the property based upon a City-ordered independent
appraisal.
6. Owner must utilize an approved private lender,or demonstrate personal
resources, to finance any remaining amount of the total approved
rehabilitation costs. (Oamer may participate in the City`s regular CD$G
Rental Rehabilitation Program to finance the remaining 50%.)
C. Loan Conditions
1. City Conditions:
a. As incorporated into the Fair Lending Notice part of the
application package,the City as lender must comply with the
Federal Equal Credit Opportunity Act and California Housing
Financial Discrimination Act of 1977.
b. The City must comply with the Fair Credit Reporting Act which
stipulates and guarantees the applicant's privacy and right to have
all information regarding the loan transaction kept in a confidential
manner.
C. As included in the Lead Paint Warning part of the loan application
packet,the U.S. Department of Housing and Urban Development
requires that the City advise applicant of the dangers of lead base
paint.
2. Participant Conditions:
a. The specific terms and conditions for Rental Rehabilitation Loans
(DPL and SMRI)are incorporated in the mortgage or other
security instruments,as applicable,and the Promissory Note as
required by the pertinent documents.
b. Civil Ri6ts
The participant shall not discriminate upon the basis of sex,age,
race,creed,color,class,national origin,or ancestry in the sale,
Attachment No. 8
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lease,rental,use,occupancy,and awarding of contract of the
property to be rehabilitated with the assistance of housing
rehabilitation loans.
C. Use of Proceeds
The participant shall agree to use the loan proceeds only to pay for
costs of services and materials necessary to carry out the
rehabilitation work as detailed in the Work Write-Up for which the
loan will be approved.
d. Inspections
The participant shall permit inspections by the City of Huntington
Beach of the property to be rehabilitated with the assistance of the
Rental Rehabilitation Loan for compliance with the Building and
Property Rehabilitation Standards of the City. The participant
shall also permit all other inspections deemed necessary by the
Department of Community Development/Building& Planning
Division regarding the property and the rehabilitation work.
e. Co�l2letion of Work
The participant shall assure that the rehabilitation work shall be
carried out promptly and efficiently through written contract
awarded after review by the City's Housing Rehabilitation Loan
Program and prior written approval by the Rehabilitation/Manager.
f. Iciigi le ContraQtors
The participant shall agree not to award any contract for
rehabilitation work to be paid for in whole or in part with the
proceeds of the housing rehabilitation loan to any contractor who,
at the time,does not meet standards of the Housing Rehabilitation
Program as an eligiblc contractor.
9- Birds
The participant shall keep such records as may be required with
respect to the rehabilitation work performed with the assistance of
a housing rehabilitation loan. Long-term monitoring requirements
are mandatory as specified in 24 CFR 92.504.
h. Interest of P_UbliQ Bj2dy
The participant shall allow no member of the governing body of
the City of Huntington Beach who exercises any functions or
responsibilities in connection with the administration of the
Attachment No. 8
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Housing Rehabilitation Program to have any interest,direct or
indirect, in the proceeds of the Rental Rehabilitation Loan or in
any contract entered into by the participant for the perfonnance of
work financed,in whole or in part,with the proceeds of the loan.
i. ]Bonus- Commission-or Fee
The participant shall not pay any bonus,commission,or fee for the
purpose of obtaining approval of the loan application.
j. Securing Bids for Construction Work
A participant may:
1. Negotiate a contract with an approved contractor of his/her
choice,provided that the contract amount does not exceed
the market rate for the services provided as determined by
the Rehabilitation Manager.
2. Select an approved contractor of their choice for
competitive bidding.
k.
The participant shall maintain the property during the term of the
housing rehabilitation loan.
I. Hazard Insurance
The participant shall maintain fire and extended coverage on the
property at least to the value of indebtedness and keep property
taxes current during the term of the housing rehabilitation loan.
M.
Affordable rents must be set and maintained as required by HOME
Program regulations at 24 CFR Part 92.252.
n. Owners must sign the owner certification form and abide by the
agreement for the specified period of time.
D. Loan Amo nt DeterMination
1. The maximum amount of any Rental Rehabilitation loan is determined by
application of the following criteria:
Attachment No. 8
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a. An average loan grant per unit is$5,000 for S.R.O. and zero
bedroom,$6,500 for one bedroom,$7,500 for two bedroom and
$8,500 for three plus bedrooms,not to exceed any maximums set
by fIUD. Loan wrifl cover cost of repair and fees appurtenant to the
property rehabilitation(work performed in compliance with a work
write-up and Building and Planning fees). Maximum loan
amounts funded with Multi-Family Rental Rehabilitation funds
may be increased only upon review by the HOME Program
Manager and/or the Rehabilitation Manager.
b. An amount not to exceed the fair market value of the property at
the time of application,minus the amount of the existing
indebtedness on the property.
2. Terms
a. Terms and repayment may be negotiable. In some cases,
repayment of the loan will be deferred until the property is sold or
title transferred. At such time,the entire principal amount of the
loan is due and payable plus a nominal one-time only 5 percent
interest assessment.
b. The entire amount of the Deferred Payment Loan will be placed as
a recorded lien on the property.
3. Allowable Costs
a. All costs relative to the loan processing(credit reports, lot book
reports,monthly collection costs,and record keeping by lending
institution)are paid by the Program;however, if a participant
makes application for the loan and allows a period of time to pass
which results in the need for processing the applications again,
participant must pay all processing costs. Said costs may be paid
for out of loan proceeds once the loan is funded.
b. Specific costs covered by the Rental Rehabilitation loan include
repairs necessary to correct violations or soon to be violations of
the Building and Property Rehabilitation Standards and work
consistent with objectives of the Neighborhood Enhancement
Program as noted in the Work Write-Up.
Attachment No. 8
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C. Specific costs=covered by the Rental Rehabilitation loan
include,but are not necessarily limited to,the following:
1. Materials, fixtures,or equipment of a type or quality which
exceeds that customarily used in properties of the same
general type as the property to be rehabilitated.
2. Free standing appliances other than stoves,unless the need
is justified by medical verification.
3. Purchase, installation,or repair of home furnishings.
4. Reimbursement for owner's personal labor.
5. Reimbursement for improvements as noted in Guidelines,
Section A-4(Ineligible Improvements).
d. The total cost of all general property improvements (non-code
violations,or potential violations),must not exceed 50%of the
total loan amount.
E. Funding for the City of Huntington Beach HOME Rental Housing
Rehabilitation Program has been obtained from the U. S. Department of
Housing and Urban Development(HUD). The program will be operated
under HUD regulations and such other requirements as determined by the
City of Huntington Beach.
III. PROCEDURES:
This section sets forth the steps which are to be followed in the processing of a
Rental Rehabilitation loan.
A. Intake Activities
1. Initial Screening
a. Property owner contacts program.
b. Rehabilitation Manager obtains income and property
information from the property owner in order to make a
preliminary determination of eligibility. Information
collected includes the following:
Attachment No. 8
Page 10 of 22
41s:0:4-97Agr+ce:Koledo97:attachg
RLS 97.900
10124197
• Applicant's name,address,and telephone number
• Location of property
• Statement of ownership
• Number of units and bedrooms per unit
• Number of tenants in the applicant's rental building
• Number of low income tenants in the applicant's
rental building
• General household income range
• Monthly rental rate per unit
• Basic type of home improvements desired
C. Applicants not meeting basic eligibility requirements do
not become part of the programs case load.
2. Documentation of Eligibility and Determination of Type of
Assistance
a. Rehabilitation Manager mails General Information and
Application Packet to Homeowner. Name and address of
applicant noted on log sheet.
1. Information packet includes:
• Program Information Sheet
• Income limits/interest rates
• Map indicating target areas
2. Rental Rehabilitation Pre-Application
Attachment No. 8
Page I I of 22
41s:GA-97A&wc:Ko1cdo97:a1tach8
RLS 97-900
IM4M
3. Application packet includes:
• Cover letter listing the supplemental items
required to be submitted with the application
packet
• Home Improvement Loan Application
0 Property Owner Agreement
• Schedule of Property Owned
• Fair Lending Notice
• Lead Paint Poisoning information
• Ethnic Classification
4. Supplemental items include:
• A copy of the deed to the property
• A copy of the previous year's Federal
Income Tax for 1040
• Employment verification(last two check
stubs)(if relevant)
• Completed Social Security verification(or
copy of last check)(if relevant)
b. Completed application received(date indicated in activity
log).
C. Rehabilitation Manager or HOME Coordinator establishes
file,assigns a number to the application, and determines
feasibility of processing applicant.
1. If not feasible,Rehabilitation Manager or HOME
Coordinator so notes disposition on Log Sheet and
notifies interested person of finding in writing.
Application is filed under Ineligible Projects.
Attachment No. 8
Page 12 of 22
41s:GA-97Agree:Ko1edo97:att2ch8
RIS 97-800
10/24/97
2. If feasible,Rehabilitation Manager or HOME
Coordinator so notes disposition on Log Sheet and
notifies participant in writing.
d. Rehabilitation Manager or HOME Coordinator should keep
written records of every telephone call and every
conversation with anyone connected with the rehabilitation
project, including the date,person spoken with,the subject
discussed and any result-this information should be
recorded on the Activity Sheet located in each file.
e. Rehabilitation Manager should keep copies ofaU forms in
each file. The date received and any notes pertinent to the
form should be recorded on the file Checklist.
B. Initial Inspection
Rehabilitation Manager
I, Sets up appointment for site inspection and work write-up.
Property O�;mer must accompany Rehabilitation Manager during
inspection.
2. Documents existing code violations, incipient code violations,
otherwise eligible items and requested home improvements on a
work write-up.
3. Explains what improvements are eligible and/or ineligible and
prioritizes work to be accomplished.
4. Makes a general assessment(preliminary estimate)of whether or
not the differences can be corrected within the program's maximum
dollar limitations.
S. Details findings and cost estimates in a Work Write-Up which
includes:
• Scope of work
• Quantity
Attachment No. 8
Page 13 of 22
4/s:G:4-97Agree:Koledo97;attach8
RLS 97-900
10/24/97
• Quality
• Location
6. Schedules a meeting with applicant to review and approve Work
Write-Up,make necessary changes(within limits of Code
Enforcement),and explain contractor selection procedures.
a. Property Owner must approve and sign the Work Write Up.
b. Property Owner received:
1. Four copies of the Work Write-Up -one copy with
cost estimates(for Property Owner information
only)and three without cost estimates(to hand out
to contractors interested in bidding the job).
C. A copy of each completed form,with the appropriate
information and signatures must be returned to the HOME
Coordinator or the Rehabilitation Manager for placement in
the case file. The owner and the contractor should also
keep copies of all forms.
C. ContraclQr Selection
Responsibility for the selection of a contractor rests with the homeowner.
No agreements,written or otherwise,will be binding for rehabilitation
loan funding unless they are first approved by the HOME Coordinator or
the Rehabilitation Manager. The owner must select a qualified licensed
contractor and the bid must come within 10 percent of the in-house cost
estimate. In certain instances where the work items do not require permits,
and the work is not highly technical,a handyman may be selected by the
property owner.
Property Owner:
1. Must obtain Building and Planning Division approval if
rehabilitation work involves a room addition or a significant
altering of the present use of the property.
a. Preliminary Site Plan or Drawing of any proposed changes
to property must be submitted to both divisions.
Attachment No. S
Page 14 of 22
41s:G:4-97Agrce:Kolcdo97:attach8
RtS 97-840
10/24/97
b. Preliminary plans should show existing use of the property
(a sample plot plan may be included in Application Packet)
as well as proposed improvements to determine whether or
not Code requirements are being satisfied- it is not
necessary to employ architectural or engineering services at
this stage.
C. Initial inspection by a representative of the Building and/or
Planning Divisions to verify the proposed improvements
may be necessary to receive building permit approval.
d. Upon approval of the proposed improvements by the
Building and Planning Divisions,applicant proceeds to
obtain estimates for the proposed work.
e. All necessary building permits must be obtained prior to
disbursement of any loan funds.
2. Provides Work Write-Ups (without cost estimates)to contractors
interested in bidding the job.
3. Obtains at least two bids and transmits selected bid proposal to
Rehabilitation Manager for review.
a. Rehabilitation Manager or HOME Coordinator reviews bid
proposal to determine cost reasonableness and compliance
with program requirements and to verify contractor
eligibility.
b. Rehabilitation Manager or HOME Coordinator approves
bid proposal.
4. Signs and awards contract after loan documents are executed and
after satisfactory review of contract by Rehabilitation Manager.
D. Financial Review
1. Rehabilitation Manager or HOME Coordinator reviews
application,and determines credit worthiness,verifies income,and
orders a Lot Book Report to verify title to the property.
Attachment No. 8
Page 15 of 22
41s:G:4-97Agrcc:Ko1cdo97:a1tach8
RLS 97-800
10124197
2. Rehabilitation Manager or HOME Coordinator
approves/disapproves package and notifies loan applicant of
decision.
3. Upon decision of loan approval,in-house loan documents are
prepared which include:
• Promissory Note
0 Deed of Trust(signatures to be notarized)
• Notice of Right to Cancel
• Escrow Control Instructions
E. Joan C12sinp.
I. Rehabilitation Manager or HOME Coordinator schedules and
holds the loan closing in the HCD office.
2. Owner attends loan closing.
3. Rehabilitation Manager or HOME Coordinator reviews loan
documents and owner responsibilities.
4. Property Owner signs loan documents-the signature on the Deed
of Trust must be notarized.
5. Property Owner signs loan documents-the signature on the Deed
of Trust must be notarized.
4. Property Owner signs loam documents-the signature on the Deed
of Trust must be notarized.
5. Property Owner has the legal right to cancel the loan within three
days.
6. Rehabilitation Manager or HOME Coordinator forwards loan
documents to City Attorney's office for approval as to form. The
loan documents are then recorded and filed at the City Clerk's
office. Loan collection is authorized by the Rehabilitation
Manager.
Attachment No. 8
Page 16 of 22
4/s:G:4-97Agrcc:Kolcdo97:attachB
RLS 97-800
10/24/97
F. Contract Management and Disbursement of Fun
Contract Management begins with negotiation of the contract between the
contractor and owner and continues through the actual construction work,
job inspections,payment to the owner,final close-out of the job,and often
a one-year warranty period.
I. Pre-Construction Conference
Rehabilitation Manager or HOME Coordinator conducts a pre-
construction conference with the owner and the contractor to
discuss the contract and the responsibilities of each party.
a. A job walk-through with the property owner and the
contractor to review the work write-up and contract
document. Every item on the contract should be read and
discussed to ensure that all parties understand exactly what
the contract entails and to minimize the possibility of later
misunderstandings.
b. A review of the work, inspection and payment schedule so
that all parties will be aware of the timeline and order of
job progression.
C. An explanation of Change Order procedures. The
Rehabilitation Manager or HOME Coordinator must make
it clear that any changes required by job conditions or
requested by the homeowner must be put in writing,
including price,and agreed to by the homeowner and
contractor before the additional work is done(Change
Order).
d. A review of arbitration procedures in the case of a dispute
between any of the parties.
e. Property Owner and Contractor sign contract document.
2. Arbitration Procedures
a. In the event of any dispute between the owner and the
contractor concerning the contracted scope of work,the
Rehabilitation Manager or HOME Coordinator will work
with both parties to negotiate a satisfactory solution.
Attachment No. 8
Page 17 of 22
4ls:G:4-97Agrce:Koledo97:actach8
RLS 97-800
14R4/97
Should resolution of the situation not be possible on an
informal basis, the parties may elect to have a hearing by a
professional arbitrator or contact the State of California
Contractors License Board.
b. Complaints concerning the rehabilitation loan program
shall be in writing and addressed to the Rehabilitation
Manager. The Rehabilitation Manager will contact the
complainant and attempt to resolve the problem. A written
response will be made within 15 working days.
If complainant is not satisfied after said written response,a
complaint may be filed with the Program Manager or
HOME Coordinator who will schedule a meeting with the
Rehabilitation Manager. A written response will be made
within 5 working days.
3. Accounting Procedures
a. Upon expiration of the required three-day right of borrower
to cancel the loan transaction,Rehabilitation Manager
prepares an in-house Material Requisition and obtains
Project Manager's approval. The Material Requisition is in
the same amount as the principal amount of the loan and
establishes a Purchase Order with the Accounting and
Records Division of the Administrative Services
Department.
b. The Material Requisition will be submitted to the
Accounting and Records Division upon Departmental
approval of the first request for payment. A Request for
Partial Payment will be submitted at the same time to
ensure immediate payment to the home owner as the
establishment of the Purchase Order takes approximately
two weeks.
C. The Purchase Order is in the name of the participant(s)
and serves as the rehabilitation Escrow account from which
payment for the Rehabilitation work is disbursed. The
Request for Partial Payment and all future requests for
payment will be debited against the Purchase Order.
Attachment No. 8
Page 18 of 22
4/s:0:4-97Agncc:Kolcdo97:attach8
RLS 97-800
10/24/97
4. Check Disbursement
a. flomeo%%mer contacts Loan Program to arrange a job site
inspection and progress payment.
1. Rehabilitation Manager visits the job site and
verifies that the work included for payment is
complete and within the scope of eligible work as
outlined in the Work Write-Up,and that all
necessary inspections by the Building Division have
been satisfactorily accomplished.
2. Rehabilitation Manager approves payment to the
homeowner and signs off Payment Request.
b. Rehabilitation Manager transmits Payment Request to
Program Manager for approval.
Completed form includes the amount of disbursement,
name and loan number of participant,a description of the
work completed and signatures of Rehabilitation Manager
or HOME Coordinator,and Program Manager.
C. Program Manager transmits Payment Request(excluding
attachments)to the Accounting Department who will
prepare a check payable to the homeowner for the approved
amount. A copy of this request will be placed in the
participant's file.
d. dilative
Program Manager transmits Payment Request to City
Treasurer for review and approval.
Upon review and approval of the payment request,the City
Treasurer will forward a request to Security Pacific
National Bank to prepare a Cashiers Check payable to the
homeowner for the approved amount. A copy of this
request%Krill be placed in the participant's file.
e. Check Disbursement to Homeowner
Attachment No. H
Page 19 of 22
4/s:G:4-97Agrce:Kolcdo97:atlach8
RLS 97-800
10124197
1. The Rehabilitation Manager contacts the
homeowner to pick up check at the HCD office.
2. Upon actual disbursement of check to participant,
the homeowner signs the Receipt of Loan Amount,
acknowledging receipt of the check.
Said form includes loan number,participant name,
warrant number,and remaining loan balance.
3. Copies of the above mentioned documents (Check
and Receipt of Loan Amount)will be placed in the
participant's file.
4. The Payment Schedule and the Purchase Order
copy in the participant's file is debited upon
disbursement of check for amount expended.
f. Timeline-Generally,the check is available within five(5)
working days folim-Ong payment request submission to
Program Manager.
g. All above mentioned documents and bills are filed in
participant's file.
h. Funds cannot be disbursed for work which does not meet
the approval or standards of the Building and Planning
Divisions or Neighborhood Enhancement Program.
5. Final Inspection
a. The Rehabilitation Manager or HOME Coordinator,
homeowner,and contractor should make a final inspection
of the project together. When the improvements are
completed,the job is considered finished,except for a one-
year guarantee on labor and materials which is a normal
part of the contract. There may also be an inspection at the
end of the one-year warranty period.
b. The Rehabilitation Manager or HOME Coordinator
completes a Certification of Final Inspection and
transmits one copy to homeowner.
Attachment No. 8
Page 20 of 22
4Is:G:4-97Agnce:Koledo97.attachg
RLS 97-800
10/24/97
6. Close-out of the Contract
a. Waiver of Liens
This is a document releasing lien rights on the job,to be
signed by all material suppliers and subcontractors.
b. Warranties
The general contractor must give a one-year guarantee on
all labor and materials,and supply to the homeowner all
manufacturers'warranties for equipment such as furnaces,
air conditioning units,kitchen appliances and hot water
heaters. Any product guarantee beyond one year, such as a
15-year guarantee on roof materials,should also be passed
on.
G. Loan !Collecfion
I. a. At the time of sale or transfer of ownership the loan is due
and payable plus the one-time 6 percent interest charge.
b. Upon completion of demand,escrow instructions for full
payment of a loan and reconveyance of the Trust Deed,a
Request for Full Reconweyance is signed by the City Clerk
and Rehabilitation Manager and forwarded to escrow
company.
C. Payment is then made by escrow company or owner for full
amount of loan payable to City Treasurer.
d. The funds collected are then deposited into City Savings
Account No. 724-137-309 on deposit at Security Pacific
National Bank- Huntington Beach,California,Beach and
Garfield Branch.
2. ti
a. The city is responsible for BMW loans issued to those
within a pilot program.
Attachment No. 8
Page 21 of 22
4/s:G:4-97Agrcc:kofcdo97:attach8
RLS 97-800
10n4/97
L
b. An"In House" collection procedure exists with the
Rehabilitation Manager forwarding executed loan
documents to the City Clerk for filing.
C. A copy of Promissory Note is forwarded with a Request for
Establishment of Collection Account to Administrative
Services-Accounting and Records-City of Huntington
Beach.
Attachment No. 8
Page 22 of 22
41s:G:4-97Agree:Koledo97:altath8
RLS 97-800
10124/97
y
City of Huntington Beach
OCCHC Loan Agreement
November 17,1997
Agenda teem F-1
OOCtiC Loan Adnemeet 3
Background
•City has been negotiating with
OCCHC for two 4 unit projects in
Oakview
•Project located at 17291&17351
Koledo Lane
OCCHC Loin AtmemM 2
The Proposed Praject
*The proposed projects will be
acquired and rehabed by OCCHC
using HONM CDBG Rehab&
Lender Consortium funding
•Koledo Lane has been a focus for
HOME-funded acquisition&
rehab
aCC31C Leon A;Reawnt 3
F11
s
ti
The Proposed ProJect—cunt.
*These two properties are
located close to the two other
Koledo Lane buildings owned
by OCC-lQ
.r1736171 Koledo Lane
CCCHC Loin Agreement
Major Deal points
♦$380,000 in HONIE funds to
OCCHC for acquisition
•$120,000 in CDBG funds for
rehab costs
♦Balance of funds from a private
lender
oCCHC Lwe AgreevwM s
Major Deal Points-Cont.
4o OCCHC begins loan payments in
three years;$1200 mo.minimum or
higher based on residual receipts
+Deferred Payments can be extended
administratively for two additional
years
+Income restrictions remain in place
for 30 years
COMC Lon.AgMMMt 5
2
i
Major Deal Points—Cont.
■Project reserves guaranteed by
OCCHC
s Restrictive covenants recorded
Ensures well-maintained
properties
oocxic w.nAsr*emmC r
ooCHc I"n wsftrawfit
3
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
Economic Development Department
TO: Honorable Mayor and City Council Members
FROM: David C. Biggs, Director of Economic Development
VIA: Ray Silver, Acting City Administrator
DATE: November 17, 1997
SUBJECT: Agenda Item F-1-0CCHC Loan Agreement
Agenda Item F-1 is a loan agreement between the Redevelopment Agency and
Orange County Community Housing Corporation (OCCHC). The Request for
Agency Action (RAA) needs a correction under the Recommended Action
section, "Redevelopment Agency Actions:", Action No. 1 should read as follows:
Approve a loan agreement with Orange County Community Housing
Corporation (OCCHC) for$380,000 in HOME Investment Partnership
funds for the acquisition and rehabilitation of 17291 and 17351 Koledo
Lane.
The $380, 000 number is correct elsewhere in the loan agreement.
If Agency members should have questions prior to tonight's meeting they are
welcome to contact me at 536-5909.
RS:DCB:gab
xc: Ray Silver, Assistant City Administrator
Connie Brockway, City Clerk
Gregory A. Brown, Development Specialist
g:\brown\occhc\koledo2\cal.doc
j Im CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
December 19, 1997
First American Title Company
114 East Fifth Street
Santa Ana, California 92701
Attention: Judy Moore
Subject: Escrow No. 976892M & No. 9762990M- 17291 & 17351 Koledo Lane
The City Clerk's Office has prepared the Affordable Housing Agreement, two
Regulatory Agreements and a Promissory Note Secured by Deed of Trust to be
recorded. Your office will be picking up this document to be recorded with the County.
Please have the recorded document returned to the City Clerk's Office, City of
Huntington Beach, 2000 Main Street, Huntington Beach, California 92648.
Connie Brockway, CMC
City Clerk
CB:jc
Enclosure
Received by
Date 2 22
escropu.doc1Koicdo:jc
(Telephone.714-536-5227)
CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the deed dated
November 17, 1997 from Orange County Community Housing Corporation
to the CITY OF HUNTINGTON BEACH is hereby accepted by the undersigned
officer or agent on behalf of the City Council of the City of Huntington Beach,
pursuant to the authority conferred by Resolution No. 3537 of the City Council of
the City of Huntington Beach adopted on August 7, 1972, and the grantee
consents to the recordation thereof by its duly authorized officer.
Dated: December 19, 1997
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CITY CLERK
By:
(,beputy City Clerk
g:�farlo�vp��-eR
(Telephone:714.536-5227)
1, Ie CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the Deed dated
November 17, 1997 from ORANGE COUNTY COMMUNITY HOUSING
CORPORATION, to the REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH, a public body corporate and politic, is hereby accepted by
the undersigned officer or agent on behalf of the Agency pursuant to the authority
conferred by Resolution No. 76 of the Agency adopted June 20, 1983 and the grantee
consents to the recordation thereof by its duly authorized officer,
Dated: December 19, 1997
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CLERK
BY:
Oluty Clerk
(Telephone 714.536.52271
City of Huntington Beach
s 2000 MAIN STREET CALIFORNIA92648
DEPARTMENT OF ECONOMIC DEVELOPMENT
Director 7141536-5582 Redevelopment 7141536-5582
FAX 714/375-5087 Housing 7141536-5542
December 18, 1997
Judy Moore, Escrow Officer
First American Title Company
114 East Fifth Street
Santa Ana, CA 92701
Dear,Judy:
SUBJECT.Escrow No. 9762892M& No. 9762990M(17291 & 17351 Koledo Lane)
Please take the following actions on behalf of the City of Huntington Beach:
• Pay Lein holders of the subject properties the total amount of consideration noted in
their respective final demand statements. Please note that you are authorized to
fund these loans"behind"the existing City of Huntington Beach loans;
• Confirm that casualty insurance in the an aggregate amount of$380,000 is in
force, and in a form similar to an example that is enclosed with this letter;
• Secure an ALTA Lenders Title Insurance policy in the amount of$380,000
showing the City of Huntington Beach as second lien holder,
• Execute the promissory notes, deeds of trust; and regulatory covenants that were
delivered to you. Denote First American Title Company as 'Trustee'on the deed
of trust; record the deeds of trust and covenants. Deed certifications are included.
Record these instruments in second position to those of Westem Financial.
You should have already been provided subordination agreements for the City of Huntington
Beach trust deeds. This letter serves as additional clarification and authorization of our request
to subordinate these loans behind Western Financial and the new deed for$380,000.
Thank you for your assistance with this project. Should you need further help with this
transaction, please call me at(714) 960-8831.
incerely,
Gr r wn
Develo ent Specialist
GB:gb
Enclosures
Copies: Allen Baldwin, OCCHC
Connie Brockway City Clerk
g:bro,Am:occhc:koledo2:fstameri.doc
PUBLIC NOTICE
I~ ; PU ctrrY0FIce
HUNTINGTON
BEACH
NOTICE OF IWMNT
TO REQUEST A
RELEASE OF FUNDS
TO ALL INTERESTED :.
PROOF OF PUBLICATION AfIENC:ES,f:ROf '
AND PERSONSI
Notice of Intent t
to Request a !'
Release
STATE OF CALIFORNIA) Funds
The City of Huntington
SS. Beach gives notice that It
will submit a request for re- i
County of Orange ) `erg°„real co
panaf�ing to thereto the
i1.S. Department of Hous-
ing
I am a Citizen of the United States and a me ""° "�;" Deveiop•1
merit ravers days fonvw-
ing this pubkcaeon The re••
of the County aforesaid; I am s';�` ta'dt a fo cowl re-
resident
over the age of eighteen years, and not a Pro]ectT8le:
Qakview Neighborhood
party to or interested in the below Presemliom .1.
entitled matter. I am a principal clerk of Loca�on:
1T291 and 17351 KofedO
the HUNTINGTON BEACH INDEPENDENT a Purpose 01 Project: I
r Acquisition&Rehabilitation ,
newspaper of general circulation, printed of ° "sting
(prop ri
b multifamily renal proper-
and pia lished in the City of Huntington ees. gstimatedCost* I
Beach, County of Orange, State of SE°D'D00
The City of Huntlnc1 on
and that attached Notice is a Beach will undertake t„.
protect deribed shove f,
California, with HO sc
ME funds from the
U.5. Department of How•
true and complete copy as was printed and urban Develop.
ment (HUO} under the Na-
and published In the Huntington Beach Horan Affordable Housi Lp,A„g�g,•
and Fountain ' Valley issues of said A" of • The c:ny� �n�'y3801
. t on Beach b eerety.i o Ob]ectlon received after
Ing to U0 that the City of Notyrnbrr It. 1FsQ7 will
newspaper to wit the issue(s) of: Huntington Beach and Mr.j be considered HUD,
Michael T.Uberuaga In hb by
official Capacity as CgMtt.) No further environmental
Ing officer consent to as ew of such project Is
October 16 . 1997 Cop'
the Jurlsdlceon of tt+e proposed to be conducted,
Fed, coons Han adlar f0 the nftase of Fed•
is brought to Orti♦oree rep ems.
sponslbildles In relatlon to An Interested egenclae.-
en*onmental reviews, do- s and persons dig-
1 making, and actlorr,
anq that these fe- ng with this dedslon
■ponstbrfiflos haw been kwIted to submit wrlt-
aansfiad.The Iegal effect of on Comments for Consider•
the eertlficallon In that on by the City to:
upon Ht1D's appm"t, ow Economic Development
I declare under enal of perjury, that Day °f Hrrstlnyton Beach
r _p tY p ..l -.'I r use the rurtds, and HUD 20 Department Main Street,wri •
the foregoing is true and correct. sp ''a"' �esn� �eNa- H SthFloor
aponslbllHNs under the 1+W
nonsi Environmental Policy ngton Beach
Act Of IM and other re- CA 42648
laced laws and authorities. Attention:
HUD will accept an ObJeo CMpryASrown
Executed on _:`i zy 2 a 19 9 lion to ns approval of IN -Cn4l)538-5542
release of funds and so
Cepuu" of the Comflct such written comments i
at Costa Mesa, California. eon only It It Is on one of asaddressh be re above o for.
the fowmng Imes: .I1
a) that the cartiflcatfon before October 23,
was not In fact executed by 1997.An such comments
the Chief exeCtrtfve oMCer so received wl1l be Consld-
or other Otttcer of applicant ared and the City WM not
approved try HUD: or i f I request the release of Fed-
ronmentat Mat eprevtew to thefinds Or take arty ad-'
ROF for the project omftt (l rhirdstrOIw aCtlon On the
required decision. And- to project prior to the I ng, or nap applicable Its data spectifed In the pre-
the project in the Emrl• ceding sentence.
ronmental Rovlew Process. MFeltatel T.Uberuapa i
Signature e) other specific grounds Certffyfrtq Officer
in HUD ragulaeons at 24 Cortrll�� �
CFA Part 58.75. Ij Cffy Cferk i
Obloctlons must be prg
pared and submitted fn so City of I .
cordancs with the rsqutred Hurrllwon i
procedure 424 CFR Part - Beach
58).and may be addressed Published Huntington
to Envlronm,nW OfficertJ Beach-Fountain Valley fn•
HUD,Los Angeles dependent October 16.
Are
a Office
1615 West Oymple D . , tit t-468
(10) 11/17/97 -Council/Agency Agenda - Page 10
F. Administrative Items
F-1. Ci Council/Redevelopment Agency)Approve Loan Agreement With Orange
County Community Housing Corporation (OCCHC) -Acquisition & Rehabilitation
Of 17291 & 17351 Koledo Lane (600.30)
Communication from the Economic Development Director regarding the HOME
Investment Partnership Program Loan Agreement between the Redevelopment Agency
and Orange County Community Housing Corporation (OCCHC)which will provide
$348,000 in HOME funds for the acquisition and rehabilitation of 17291 and 17351
Koledo Lane Affordable Housing Agreement, Loan Agreement by and between the
Redevelopment Agency of the City of Huntington Beach and the Orange County
Community Housing Corporation Concerning the Acquisition and Rehabilitation of
Affordable Housing on Koledo Lane with Funds Obtained from the Home Investment
Partnership Program.
Recommended Action: Motion to:
City Actions:
1. Approve $120,000 in CDBG funds for the rehabilitation of 17291 and 17351
Koledo Lane.
and
2. Waive the city's insurance requirements for purposes of approving the Agency
loan agreement only. Direct staff to ensure that the minimum insurance
requirements are met by OCCHC by the close of escrow.
Redevelopment Agency Action:
1. Approve and authorize execution by the Mayor and City Clerk of Affordable
Housing Agreement, Loan Agreement by and between the Redevelopment Agency
of the City of Huntington Beach and the Orange County Community Housing
Corporation concerning the Acquisition and Rehabilitation of Affordable Housing
on Koledo Lane with Funds Obtained from the Home Investment Partnership
Program for$490,090[$380,0001 in HOME Investment Partnership funds for
the acquisition and rehabilitation of 17291 and 17251 Koledo Lane.
and
2. Approve and authorize execution and recordation by the Agency Chairman and
Clerk of the entire loan agreement and all attachments after execution by OCCHC.
[Approved-- 5-0; Garofalo, Julien absent from room]
(10)
PUBLIC NOTICE
PUBLIC NOTICE
CITY OF
"UNT1NGTON
BEACH - - .
NOTICE OF INTENT
TO REQUEST A
RELEASE OF FUNDS
TO ALL INTERESTED
AGENCIES,GROUPS
PROOF OF PUBLICATION ANDPERSONSf
Notice of Intent
to Rsgwst a
Release
STATE OF CALIFORNIA) Fit da i
The City of Huntington
It
SS. vBidali Lsubmn i notice that
forrtrs-
County of Orange to funds and on
envUonmerrtal certification •
pertafrunqapa 10 thereto the
U.S. Drbnom of Hous-I
Ing and Urban Develop•
low-
I am a Citizen of the United States and a Ing this mti n'm
resident of the County aforesaid; l am CaAlt re-
late tooe to-
quest the follon ollowlnq
over the age of eighteen years and not a prok`i'Pr°JectNe Title:
� Oakviaw Neighborhood
on.
party to or interested in the below Preservati,•.°cation: -
17291 and 17351 Kolado'
entitled matter. I am a principal clerk of Lane.vposa of project
the HUNTINGTON BEACH INDEPENDENT, a ACqufshion&Rehabilitation)
of two existing four-twit
newspaper of general circulation, printed muHdamlfy rental proper-'
and published in the City of Huntington EsAmatadC4st.
Beach County of Orange State of Bea cV oI Huake MO
r , Beach wi" undertake �s
California, and that attached Notice is a with H1 described above
with HOME tends from the
true and complete copy as was printed U.S. Department of H°us
Ing and Urban Deveiop•-
mar» (HUD) under the Na-'
and published in the Huntington Beach " Affordable Housing s. ��; -
Act of 1990_ The City of. CA 900t5=1 -
H�mtlnqton Beach Is eeNfy- No Objection reeefved after
and Fountain Valley issues of said Irg to lfUD that the City of
November 11,1997wM
Huntington Beach send Mr„
newspaper to wit the issue(s) of: Michael T.Uberuaga In his be considered by HUD.
official Capacity as CemHt No further environmental
Ing Officer consent to so- proms is
October 16 . 1997 �a�a1n:ofacti proposedto becornducted,
Is brought to enforce ►e- the release of Fsd-
sponsibildles In rolatloa to ems•
environmental reviews. de- AR Interested sgandes,
cislon making, end action; 70UPsand persona 06,
a n d that these re- agreeing with this decision
sponslbIlIt1es have been aft byMod to submit wrtt
satisfied.The legal effect of an comments for Consider.
the carilflcatlon Is that atlon by the City to:
upon HUD's approval, the Econorntc Drvelopntent
City of Huntington Beach
use the funds, and HUE)
1 declare, under penalty-of perjury, that _ vAl have ,a"stlad It, to- 2=e t,
th Floor
the foregoing is true and correct. n�ErrArororawnttalnder Poliicy HuntinggtonBeach .
Act of 1959 and other re- CA 926"
lated laws and authorities. Attention:
HUD writ accept an objec- Gregory A.Brown
tion to its approval of the (714)53ed542
Executed on May 20 199 8 release of funds and ac. Such written comments
ceptanoe of the CeNACa-
at Costa Mesa, Cailfornia. do ody " " Is On one a should be recelved at the
fotlowtng bases: 1 address asted above on or
a) that the crrtlflcaffon before October 23,
was not In fact executed by VM1nr1,,tratIv*
.All such Comments
the Chief executive officer �d will be consld-
or otfw°Meer of applIcantand the �y Will not
approved by HUD: or #: n the reteass of Fed-id
onn that
applicant's
to the �Y
hinds or lake ad•
ROF for the project omitted action on the
I required dapplica And- project prior a the
Ing. or step applicable to date specified In the pre-
the project In the ErnM ceding sentence..
mnmantal Aevtew Process.' gtf°t"T.Ubrruapa
c) other specific grounds
Ignature in HUD regulations at 24
CFR Part 58.75. CCoaeRu+hf3ro°k"sayr ,
Qblecdons must be pry CRY Clark
pared and aubmhtad In so- City of
cordancs with the required Huntlnglon -
procedd a (24 da Part Boach F
Published Huntington
to rontnentel Officer Beach Fourdain Valley In-
IUD,I.oa lea dependant Qctober 16, F
Area Office 1997. {
leis West Ofympte Blvd, .� 103-486 i
PUBLIC NOTICE
CITY OF HUNTINGTON BEACH
NOTICE OF INTENT TO REQUEST A RELEASE OF FUNDS
TO ALL INTERESTED AGENCIES,CROUPS AND PERSONS:
Notice of Intent to Request a Release of Funds
The City of Huntington Beach gives notice that it will submit a request for release of grant funds
and an environmental certification pertaining to thereto the U.S. Department of Housing and Urban
Development seven (7) days followiing this publication. The request and certification relate to the
following project.
Project Title: Oakvicw Neighborhood Preservation
Location: 17291 and 17351 Koledo Lane
Purpose of Project: Acquisition&Rehabilitation of two existing four-unit multifamily
rental properties
Estimated Cost: $600,000
The City of Huntington Beach will undertake the project described above with HOME funds from
the U.S. Department of Housing and Urban Development (HUD) under the National Affordable
Housing Act of 1990. The City of Huntington Beach is ccrtifyring to HUD that the City of
Huntington Beach and Mr. Michael T. Uberuaga in his official capacity as Certifying Officer
consent to accept the jurisdiction of the Federal courts if an action is brought to enforce
responsibilities in relation to environmental reviews, decision making, and action; and that these
responsibilities have been satisfied. The legal effect of the certification is that upon HUD's
approval, the City of Huntington Beach use the funds, and HUD will have satisfied its
responsibilities under the National Environmental Policy Act of 1969 and other related laws and
authorities. HUD will accept an objection to its approval of the release of funds and acceptance of
the certification only if it is on one of the following bases:
a) that the certification was not in fact executed by the chief executive officer or other officer
of applicant approved by HUD;or
1 g:lbro k%m\occhclkoledo2\RROF.doc
r
b) that applicant's environmental review to the ROF for the project omitted a required
decision, finding,or step applicable to the project in the Environmental Review Process.
c) other specific grounds in HUD regulations at 24 CFR Part 58.75.
Objections must be prepared and submitted in accordance with the required procedure (24 CFR
Part 58),and may be addressed to
Environmental Officer
HUD,Los Angeles Area Office
1615 West Olympic Blvd.
Los Angeles,CA 90015-3801
No objection received after November 11, 1997♦%till be considered by HUD.
r'
No further environmental review of such project is proposed to be conducted,prior to the release of
Federal funds.
All interested agencies, groups and persons disagreeing with this decision are invited to submit
written comments for consideration by the City to:
Economic Development Department
2000)`lain Street,Sth Floor
Huntington Beach, CA 92648
Attention: Gregory A. Brown
(714)536-5542
Such written comments should be received at the address listed above on or before October 23,
1997. All such comments so received%gill be considered and the City%%ill not request the release of
Federal funds or take any administrative action on the within project prior to the date specified in
the preceding sentence.
Michael T. Uberuaga
Certifying Officer
Connie Brockway
City Clerk
City of Huntington Beach
Publish: 10/16/97
2 g:Ibro%i-nlocchclkoiedo2lRROF.doc
Council/Agency Meeting Held:
Deferred/Continued to:
❑Approved t] Conditionally Approved ❑ Denied City Clerk's Signature
Council Meeting Date: November 17, 1997 Department 1D Number: ED 97-51
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL
MEMBERSIREDEVELOPMENT AGENCY MEMBERS C= r
•-1
MT.~
SUBMITTED BY: RAY SILVER, Acting City Administrator/Executive Director e7X& � ���
PREPARED BY: David C. Biggs, Economic Development Director s '
SUBJECT: Approve Loan Agreement With Orange County Community
Housing Corporation (OCCHC)
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(
Statement of Issue: A HOME Investment Partnership Program Loan Agreement between
the Redevelopment Agency and Orange County Cor.-,munity Housin^ ^orporation (OCCHC)
is submitted for approval. This agreement provides $380,000 `a HOME funds for the
acquisition and rehabilitation of 17291 and 17351 Koledo Lane.
Eunding Source: 1995 HOME Investment Partnership funds.
r'
Recommended Action: Motion to:
City Action(s):
1. Approve $120,000 in CDBG funds for the rehabilitation of 17291 and 17351 Koledo
Lane from the City's Multifamily Rehabilitation Loan Program.
2. Waive the City's insurance requirements for purposes of approving the Agency loan
agreement only. Direct staff to ensure that the minimum insurance requirements
are met by OCCHC by the close of escrow.
Redevelopment Agency Actions:
1. Approve a loan agreement with Orange County Community Housing Corporation
(OCCHC) for $490,000 in HOME Investment Partnership funds for the acquisition
and rehabilitation of 17291 and 17351 Koledo Lane.
1
2. Approve and authorize execution and recordation by the Agency Chairman and
Clerk of the entire loan agreement and all attachments after execution by OCCHC.
f f
r
1
REQUEST FOR COUNCILIREDEVELOPMENT AGENCY ACTION
MEETING DATE: November 17, 1997 DEPARTMENT ID NUMBER: ED 97-51
Alternative Action(6):
1. Do not approve the proposed transaction, or direct staff to renegotiate the terms with
OCCHC.
Analy :
At its June 3, 1996, meeting, the City Council committed $399,200 in HOME funds to the
Redevelopment Agency in order to meet a twenty-four month deadline. The Agency is
now ready to commit the funds to a specific project. Staff and OCCHC have concluded
negotiations (a complete outline of deal points is included as Attachment No. 4) and have
agreed to the following terms:
• The City of Huntington Beach will provide $380,000 in HOME Investment
Partnership funds as a residual receipts loan to Orange County Community
Housing Corporation (OCCHC). These funds will be used to acquire the two
4-unit rental properties on Queens Lane.
• All units will remain affordable for thirty years for households earning less
than 50% of Orange County median income (defined as very low income) as
adjusted for family size. The thirty year affordability period exceeds those
minimums (ten to fifteen years) required by the HOME program. Because
these properties are located in a redevelopment project subarea and also
due to a thirty-year affordability period, these units will be credited toward the
Redevelopment Agency's housing obligations.
• The amount of HOME assistance will be carried as an interest free loan
provided that the units remain in compliance with the terms of the agreement.
Should a default occur, or should the units be sold or transferred before the
term of affordability expires, the full amount of the HOME assistance must be
repaid with six percent (6%) simple (but accruing) interest.
• Beginning in the third year of the agreement, and continuing annually through
the thirtieth year, OCCHC will forward the proceeds of a residual receipts
account to the City as a means of repayment of the HOME assistance. The
minimum amount of any annual repayment will be $1,200.00. The repayment
period may be extended for up to two additional years with department head
approval.
• Should the economics of the project not allow for the minimum repayment of
$1,200.00, then OCCHC will have the right to appeal to the City Council and
request that the minimum repayment be reduced, suspended or forgiven.
OCCHC agrees to bear the entire burden of proving its inability to meet the
minimum payment. The City Council will reserve the right to reduce,
RAAI.QOC -2- 11107197 5:45 PM
REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION
MEETING DATE: November 17, 1997 DEPARTMENT ID NUMBER: ED 97-51
These units will be available to very low income households (who are currently paying
$750 per month in rent) with affordable rents in the $450 per month range. it is not
unusual to find two families living together in one•family units because of the high rents.
OCCHC's involvement will allow one family to occupy each unit and pay 30% of their
income, or$450, whichever is higher.
The Agency's involvement with the HOME Program is consistent with the City Council's
established goal of providing for a diverse housing stock throughout the community (City
Goal#8).
Enviroomal3tal 5fatua: Categorically exempt under the National Environmental
Protection Act (NEPA).
City Clerk's
Page No. Description
1. Loan Agreement with OCCHC
2. Location Map: 17291 and 17351 Koledo Lane
3. OCCHC Pro Forma
4. Deal Point Summary
GAB:ext. 8831
RAAI.DOC -4- 11/07/97 5:45 PM
Loan Agreement
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: November 17, 1997 DEPARTMENT ID NUMBER: ED 97-51
suspend, forgive or renegotiate the terms of repayment based on the
evidence submitted by OCCHC.
• OCCHC agrees to guarantee the amount of reserves that it shows on the
final approved pro forma that is to be submitted to the City. OCCHC will
submit its audited financial statements to the City annually after acceptance
and certification of such statements by OCCHC's Board of Directors . The
City will review the statements and may choose to require further analysis or
review by a third party, but must do so at its own expense.
• At the end of the thirty-year term, any remaining principal amount of the loan
will be repaid to the City. While there will be no interest due, the principal
amount of the loan will be adjusted annually for inflation to reflect the present
value of the funds after thirty years.
• Rents will be set at levels that are affordable to households earning less than
50% of median income. These rent restrictions will exceed those required by
HOME regulations.
Unit Size , Projected Rent
Two Bedroom $450+
HUD sets maximum per unit HOME subsidy amounts on an annual basis. Currently, the
maximum subsidy amount for a two bedroom unit is $86,352. With that number, the
maximum total subsidy for the Koledo Lane project would be $690,816. The actual subsidy
per unit breakdown on this project is as follows:
Total HOME Subsidy: $380,000
Total Number of Units: 8
Per Unit HOME Subsidy $ 47,500
Acquiring and rehabilitating small multifamily properties represents an opportunity to improve
and preserve existing affordable housing throughout Huntington Beach, but especially in a
focus area such as the Oakview neighborhood. Purchase of another property by a housing
nonprofit in this area is another step toward stabilizing rental property ownership, which in
turn should help improve the quality of the housing in the neighborhood by keeping rents
low, and eliminating overcrowding -- at least in these buildings.
RAA1.DOC -3- 11/07/97 5:45 PM
NO FEE DOCUMENT T94 DRISIKALDOCI MENTBIASSCANNED
When recorded, mail to: AND ELECTRONICALLY RECORDED ON
City of Huntington Beach
VF,D30VW,
2000 Main Street Document No. "�`�G
Huntington Beach, CA 92648 First American Title Insurance Ca.
Attention: Office of City Clerk
DEED OF TRUST,ASSIGNMENT OF RENTS,
AND SECURITY AGREEMENT
(Securing loan of$_ lgot 000-ate
THIS DEED OF TRUST,ASSIGNMENT OF RENTS,AND SECURITY
AGREEMENT("Deed of Trust") is made this i2#L day of' � , 1997,by
Orange County Community Housing C tion,a California nonprofit public benefit
corporation("Trustor"),to eArll L*---uG•as trustee("Trustee"), for the benefit of the
Redevelopment Agency of the City of Huntington Beach,a public body ("Beneficiary").
ORANLINUST
1. GRANT. Trustor, in consideration of the indebtedness referred to below,hereby
irrevocably grants and conveys to Trustee,IN TRUST, WITH POWER OF SALE, for the benefit
and security of Beneficiary,all of Trustoes interest in the property located in the City of
Huntington Beach,County of Orange,State of California,and described in the attached Exhibit
A,incorporated herein by this reference(the"Property");
TOGETHER WITH all interest,estates or other claims,both in law and in equity which
Trustor now has or may hereafter acquire in the Property;all buildings,structures, fixtures,
improvements, signs,and landscaping now or hereafter erected or located on the Property,
including all equipment and machinery used for supplying or distributing heating,cooling,
electricity,gas,water,air,and light,all kitchen and laundry appliances such as washers,dryers,
refrigerators,garbage disposals,ovens,ranges,dishwashers,all plumbing and bathroom fixtures,
all security and access control equipment,fire prevention and extinguishment equipment,
elevators,floor coverings,window coverings,paneling,cabinets,(provided,however,that
Trustor shall have the right to remove,if necessary,' such fixtures, furnishings,and equipment for
the purpose of replacement with similar items of the same quality performing the same functions,
which replacements shall themselves become part of this grant); all building material and
equipment either now or hereafter delivered to the Property and intended to be installed therein
Attachment No.3
Page 1 of 12
41s:G:4-97Agrce:Kolcdo 1997:Attach3
RLS 97-800
10124/97
. Y .
j• i ,
or any such material and equipment purchased with Loan proceeds whether or not located on the
Property; all reserves,accounts,defen-ed payments,and refunds relating to development on the
Property;all rents and income generated by the Property or improvements thereon (subject
however to the assignment of rents to Lender contained herein);all leases,subleases and rental
agreements covering the Property or any portion thereof now existing or hereafter entered into,
and all interests of Trustor in security deposits,advance rentals,accounts,or payments of similar
nature with respect to such leases,subleases,or rental agreements;all easements and rights-of-
way appurtenant to the Property, including parking and recreational easements,and all interests
of Trustor in any land lying within the right-of-way of any street,sidewalks,and areas of land
adjacent to or used in connection with the Property;all development rights and credits,air rights,
water rights,and oil,gas or mineral rights with respect to the Property;all claims or demands
with respect to insurance proceeds,and all awards made for a taking by eminent domain;all
interests and rights in any private or government grants,subsidies, loans,or other financing with
respect to development on the Property;all interests in personal property used in and about the
Property(except furniture and other personal property of occupants of dwelling units on the
Property);all intangible property and rights relating to the Property or operations on the
Property, including trade names,goodwill, trademarks,and service marks;all government
permits,approvals,and map rights related to construction on the Property;all architectural,
structural,and mechanical plans, specifications,designs,studies,and data with respect to
construction of improvements on the Property;all environmental tests, studies and reports with
respect to the Property;all current and future claims and rights of action of Trustor against prior
owners and operators of the Property,neighboring property owners and operators,tenants and
former tenants,consultants,advisors,and other third parties with respect to environmental or
Hazardous Materials contamination and cleanup of the Property under any federal, state,or local
ordinances, statutes,regulations,or administrative decisions or common law.
All of the foregoing,together with the Property,is herein referred to as the "Security."
O13i.iGAT1ONS SECURED
2. Trustor makes this grant for the purpose of securing the following obligations:
A. Repayment of the indebtedness of Trustor to Beneficiary in the principal sum of
Dollars($
with interest thereon(the"Loan")evidenced by a promissory note executed by
Trustor(the"Note"),on file at the offices of Beneficiary,which is hereby
incorporated into this Deed of Trust by this reference)or as much as has been
disbursed to Trustor therewith,along with any extensions,amendments,
modifications,or renewals to the Note;and
B. Payment of any sums advanced by Beneficiary to protect the security and priority
of this Deed of Trust; and
Attachment No.3
Page 2 of 12
4/s:G:4-97Agrec:Kolcdo1997:Attach3
RLS 97-800
10/24/97
C. Payment of any sums advanced by Beneficiary following a breach of Trustor's
obligation to advance said sums and the expiration of any applicable cure period,
with interest thereon as provided herein; and
D. Performance of every obligation,covenant or agreement of Trustor contained in
this Deed of Trust,the Note,the Loan Agreement executed between Trustor and
Beneficiary,on file at the offices of Beneficiary,which is hereby incorporated
into this Deed of Trust by this reference),and the Regulatory Agreement executed
between Trustor and Beneficiary of dated the same day as this Deed of Trust
("Regulatory Agreement"),including all modifications, extensions and renewals
of these obligations;and
E. Performance of any other obligation or repayment of any other indebtedness of
Trustor to Beneficiary,where such evidence of obligation or indebtedness
specifically recites that it is secured by this Deed of Trust.
ABSOLUTE ASSIGNMENT OF RENTS AND RIGHT TO POSSESSION
3. ASSIGNMENT. As additional security,Trustor hereby assigns to Beneficiary:
(a)all of the rents,revenues,profits,and income from the Security,any deposits now or hereafter
in Trustor's possession which have been collected with respect to the Security,and any reserve or
capital funds now or hereafter held by Trustor with respect to construction or operation of the
Security(collectively,the "Rents");and(b)the right to enter,take possession of,and manage the
Security; provided however that Trustor shall have,before an Event of Default,the exclusive
Tight to possess the Security and to collect Rents and use them in accordance with the Loan
Documents. This assignment is intended to be an absolute and present transfer of Trustor's
interest in existing and future Rents,effective as of the date of this Deed of Trust.
4. ENFORCEMENT. Upon the happening of an Event of Default and written notice
to Trustor,Beneficiary may,in addition to other rights and remedies permitted by the Loan
Agreement,this Deed of Trust,or applicable law,(a)enter upon,take possession of,and manage
the Security,either in person as a mortgagee-in-possession,by agent,or by a receiver appointed
by a court,and do any acts which it deems necessary or desirable to preserve the value,
marketability or rentability of the Security,(b)collect all Rents,including those past due and
unpaid,and apply the same to pay for the costs and expenses of operation of the Security,
including attorneys'fees,and pay off any indebtedness secured by this Deed of Trust,all in such
order as Beneficiary may determine,and/or(c)enter upon and take possession of the Security.
Beneficiary may make,cancel,enforce,and modify leases and rental agreements,obtain and
evict tenants,set and modify rent terms, sue for rents due,enter into,modify,or terminate any
contracts or agreements,or take any legal action,as it deems necessary with respect to the Rents
or to development or operation of the Security.
Attachment No.3
Page 3 of 12
4/s:G:4-97Agme:Kolcdo 1997:Attach3
RCS 97-900
10/24/97
5. APPOINTMENT OF A RECEIVER. In any action to enforce this assignment,
Beneficiary may apply for the appointment of a receiver to take possession of the Security and
take whatever measures are necessary to preserve and manage the Security for the benefit of
Beneficiary and the public interest. Trustor hereby consents to the appointment of a receiver.
The receiver shall have all of the authority over the Security that Beneficiary would have if
Beneficiary took possession of the Security under this assignment as a mortgagee-in-possession,
including the right to collect and apply Rents and the right to complete construction of
improvements.
6. NO WAIVER OF POWER OF SALE. The entering upon and taking possession
of the Security and the collection of Rents shall not cure or waive any default or notice of default
hereunder or invalidate any act done in response to such default or notice of default and,
notwithstanding the continuance in possession of the Security or the collection and application of
Rents, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust or
by law upon occurrence of any Event of Default,including the right to exercise the power of sale.
COMMERCIAL CODE SECU$LTY AORE ;MENT
7. GRANT. This Deed of Trust is intended to be a security agreement and financing
statement pursuant to the California Commercial Code for any of the items specified above as
part of the Security which under applicable law may be subject to a security interest pursuant to
the Commercial Code,and Trustor hereby grants Beneficiary a security interest in said items.
Beneficiary may file a copy of this Deed of Trust in the real estate records or other appropriate
index as a financing statement for any of the items specified as part of the Security. Trustor shalt
execute and deliver to Beneficiary at Beneficiary's request any financing statements,as well as
extensions,renewals,and amendments thereof,and copies of this instrument in such form as
Beneficiary may require to perfect a security interest with respect to said items.
8. REMEDIES. Upon Trustor's breach of any obligation or agreement in the Loan
Documents, Beneficiary shall have the remedies of secured party under the Commercial Code
and at Beneficiary's option may also invoke the remedies provided for elsewhere in this Deed of
Trust with respect to said items. Beneficiary may proceed against the items of real property and
personal property specified above separately or together and in any order whatsoever.
]1Q�TS AND OBLIGATIONS OF TRUSTOR
9. PERFORMANCE OF SECURED OBLIGATION. Trustor shall promptly
perform each obligation secured by this Deed of Tryst.
10. PAYMENT OF PRINCIPAL AND INTEREST. Trustor shall promptly pay
when due the principal and interest on the indebtedness evidenced by the Note.
Attachment No.3
Page 4 of 12
4/s:0:4-97Agrcc:Kofcdo[997:Aaach3
RLS 97-800
10/24/97
11. MAINTENANCE OF THE SECURITY.Trustor shall,at the Trustor's own
expense,maintain and preserve the Security or cause the Security to be maintained and preserved
in good condition, in good repair,and in a decent,safe,sanitary,habitable and tenantable
condition. Trustor shall not cause or permit any violations of any laws,ordinances,regulations,
covenants,conditions,restrictions,or equitable servitudes as they pertain to improvements,
alterations, maintenance or demolition on the Security. Trustor shall not commit or permit waste
on or to the Security. Trustor shall not abandon the Security. Beneficiary shall have no
responsibility over maintenance of the Security. In the event Trustor fails to maintain the
Security in accordance with the standards in this Deed of Trust,the Loan Agreement,or the
Regulatory Agreement,Beneficiary,after at least thirty(30)calendar Clays prior notice to
Trustor, may,but shall be under no obligation to, make such repairs or replacements as are
necessary and provide for payment thereof. Any amount so advanced by Beneficiary,together
with interest thereon from the date of such advance at the same rate of indebtedness as specified
in the Note(unless payment of such an interest rate would be contrary to applicable law, in
which event such sums shall bear interest at the highest rate then allowed by applicable law),
shall become an additional obligation of Trustor to Beneficiary and shall be secured by this Deed
of Trust.
12. INSPECTION OF THE SECURITY. Trustor shall permit Beneficiary to enter
and inspect the Security for compliance with these obligations upon 24 hours advance written
notice of such visit by Beneficiary to Trustor or Trustoes management agent.
13. LIENS,ENCUMBRANCES,AND CHARGES. Trustor shall discharge any lien
or encumbrance not approved by Trustor in writing that may attain priority over this Deed of
Trust,as provided for in the Loan Agreement.
14. DEFENSE AND NOTICE OF CLAIMS AND ACTIONS. Trustor shall appear
in and defend,at its own expense,any action or proceeding purporting to affect the Security
and/or the rights of Beneficiary. Trustor shall give Beneficiary and Trustee prompt notice in
writing of the assertion of any claim,of the filing of any action or proceeding and of any
condemnation offer or action with respect to the Security.
15. SUITS TO PROTECT THE SECURITY. Beneficiary shall have power to
institute and maintain such suits and proceedings as it may deem expedient(a)to prevent any
impairment of the Security or the rights of Beneficiary,(b)to preserve or protect its interest in
the Security and in the Rents,and(c)to restrain the enforcement of or compliance with any
governmental legislation,regulation,or order, if the enforcement of or compliance with such
legislation,regulation,or order would impair the Security or be prejudicial to the interest of
Beneficiary.
1 I
16. DAMAGE TO SECURITY. Trustor shall give Beneficiary and Trustee prompt
notice in writing of any damage to the Security. If any building or improvements erected on the
Property is damaged or destroyed by an insurable cause,Trustor shall use the insurance proceeds
Attachment No.3
Page 5 of 12
41s:G:4-97Agrcv:Ko1cdo 1997:Attach3
RCS 97-800
10/24/97
to repair or restore said buildings and improvements consistent with the original plans and
specifications. Such work or repair shall be commenced within 120 days after the damage or
loss occurs and shall be complete within one year thereafter. All insurance proceeds collected
for such damage or destruction shall be applied to the cost of such repairs or restoration.
17. TITLE. Trustor warrants that Trustor lawfully has legal title to the Security
without any limitation on the right to encumber.
18. GRANTING OF EASEMENTS. Trustor may not grant easements, licenses,
rights-of-way or other rights or privileges in the nature of easements with respect to the Security
except those required or desirable for installation and maintenance of public utilities including
water,gas, electricity, sewer,cable television,telephone,or those required by law.
19. TAXES AND LEVIES. Trustor shall pay prior to delinquency,all taxes,fees,
assessments,charges and levies imposed by any public authority or utility company which are or
may become a lien affecting the Security. However,Trustor shall not be required to pay and
discharge any such tax,assessment,charge or levy so long as(a)the legality thereof shall be
promptly and actively contested in good faith and by appropriate proceedings,and(b)Trustor
maintains reserves adequate to pay any contested liabilities. In the event that Trustor fails to pay
any of the foregoing items, Beneficiary may,but shall be under no obligation to,pay the same,
after Beneficiary has notified Trustor of such failure to pay and Trustor fails to fully pay such
items within thirty(30)business days after receipt of such notice. Any amount so advanced by
Beneficiary,together with interest thereon from the date of such advance at the same rate of
indebtedness as specified in the Note(unless payment of such an interest rate would be contrary
to applicable law, in which event such sums shall bear interest at the highest rate then allowed by
applicable law),shall become an additional obligation of Trustor to Beneficiary and shall be
secured by this Deed of Trust.
20. INSURANCE. Trustor shall provide such insurance as required under the Loan
Agreement. In the event Trustor fails to maintain the full insurance coverage required by this
Deed of Trust,Beneficiary,after at least seven business days prior notice to Trustor,may,but
shall be under no obligation to,take out the required policies of insurance and pay the premiums
on such policies. Any amount so advanced by Beneficiary,together with interest thereon from
the date of such advance at the same rate of indebtedness as specified in the Note(unless
payment of such an interest rate would be contrary to applicable law, in which event such sums
shall bear interest at the highest rate then allowed by applicable law),shall become an additional
obligation of Trustor to Beneficiary and shall be secured by this Deed of Trust.
21. CONDEMNATION. All judgments,awards of damages,settlements and
compensation made in connection with or in lieu of taking all or any part of or interest in the
Security under assertion of the power of eminent domain("Funds")are hereby assigned to and
shall be paid to Beneficiary. Beneficiary is authorized(but not required)to collect and receive
any Funds and is authorized to apply them in whole or in part upon any indebtedness or
Attachment No.3
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t M4r97
obligation secured hereby, in such order and manner as Beneficiary shall determine at its sole
option. All or any part of the amounts so collected and recovered by Beneficiary may be
released to Trustor upon such conditions as Beneficiary may impose for its disposition.
Application of all or any part of the Funds collected and received by Beneficiary or the release
thereof shall not cure or waive any default under this Deed of Trust.
22. ACCELERATION ON TRANSFER OF SECURITY; ASSUMPTION. In the
event that Trustor, without the prior written consent of the Beneficiary, sells, agrees to sell,
transfers,or conveys its interest in the Security or any part thereof or interest therein,Beneficiary
may at its option declare all sums secured by this Deed of Trust to be immediately due and
payable. This option shall not apply in case of.
A. the grant of a tenant or leasehold to qualifying households who will occupy
Project units as provided for under the Loan Documents and the Regulatory
Agreement; or
B. sale or transfer of fixtures or personal property pursuant to the grant provisions in
this Deed of Trust;or
Consent to one sale or transfer shall not be deemed to be a waiver of the right to require
such consent to future or successive transactions.
23. RECONVEYANCE BY TRUSTEE. This trust is intended to continue for the
entire term of the Loan. Upon written request of Beneficiary stating that all sums secured by this
Deed of Trust have been paid or forgiven and upon surrender of this Deed of Trust to Trustee for
cancellation and retention,and upon payment by Trustor of Trustee's reasonable fees,Trustee
shall reconvey the Security to Trustor,or to the person or persons legally entitled thereto.
IEEAULT AND REMEDIES
24. EVENTS OF DEFAULT. Any of the events listed in the Loan Agreement as an
Event of Default shall also constitute an Event of Default under this Deed of Trust,including,but
not limited to, (1)Trustoes failure to pay when due any sums payable under this Deed of Trust,
the Note,or the Loan Agreement;'or(2)Trustoes failure to observe or to perform any of its
covenants,agreements or obligations under this Deed of Trust,the Note,the Loan Agreement,
and the Regulatory Agreement.
: I
25. ACCELERATION OF MATURITY. Upon the happening of an Event of Default
which has not been cured within' the times and in the manner provided in the Loan Agreement,
Beneficiary may declare all sums advanced to Trustor under the Note and this Deed of Trust
immediately due and payable.
Attachment No.3
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RLS 97-800
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26. BENEFICIARY'S REMEDIES. Upon the happening of an Event of Default
which has not been cured within the times and in the manner provided in the Loan Agreement,
Beneficiary may, in addition to other rights and remedies permitted by the Loan Agreement,the
Note,or applicable law,proceed with any or all of the following remedies:
A. Enforce the assignment of rents and right to possession as provided for in this
Deed of Trust,and/or seek appointment of a receiver to take over possession of
the Security and collect Rents;
B. Commence an action to foreclose this Deed of Trust pursuant to California Code
of Civil Procedure Sections 725a,et seq.,and/or seek appointment of a receiver
from a court of competent jurisdiction with the authority to protect Beneficiary's
interests in the Security, including the authority to complete construction of
improvements;
C. Deliver to Trustee a written declaration of Default and demand for sale, and a
written Notice of Default and election to cause Trustor's interest in the Security to
be sold,which notice Trustee or Beneficiary shall duly file for record in the
Official Records of Orange County,and exercise its power of sale as provided for
below; or
D. Pursue any other rights and remedies allow at law or in equity.
27. FORECLOSURE BY POWER OF SALE. Should Beneficiary elect to foreclose
by exercise of the power of sale contained in this Deed of Trust,Beneficiary shall notify Trustee
and shall deposit with Trustee this Deed of Trust(the deposit of which shall be deemed to
constitute evidence that the unpaid sums disbursed under the Note are immediately due and
payable),and such receipts and evidence of any expenditures made that are additionally secured
hereby as Trustee may require.
Upon receipt of such notice from Beneficiary,Trustee shall cause to be recorded,
published and delivered to Trustor such Notice of Default and Election to Sell as then required
by law and by this Deed of Trust. Trustee shall,without demand on Trustor,after lapse of such
time as may then be required by law and after recordation of such Notice of Default and after
Notice of Sale having been given as required by law,sell the Security,at the time and place of
sale fixed by it in said Notice of Sale,whether as a whole or in separate lots or parcels or items as
Trustee shall deem expedient and in such order as it may determine unless specified otherwise by
Trustor,at public auction to the highest bidder for cash in lawful money of the United States
payable at the time of sale. Trustee shall deliver to the purchaser its deed or deeds conveying the
property so sold,but without any covenant or warranty,express or implied. The recitals in such
deed of any matters of facts shall be conclusive proof of the truthfulness thereof. Any person,
including,without limitation,Trustor,Trustee, or Beneficiary,may purchase at the sale.
Attachment No.3
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Trustee may postpone sale of all or any portion of the property by public announcement
at such time and place of sale,and from time to time thereafter,and without further notice make
such sale at the time fixed by the last postponement,or may, in its discretion,give a new Notice
of Sale.
After deducting all reasonable costs,fees and expenses of Trustee, including costs of
evidence of title in connection with such sale,Trustee shall apply the proceeds of sale as follows:
(i)first, to the payment of all sums then secured by this Deed of Trust, in such order and amounts
as Beneficiary in its sole discretion determines, and(ii)the remainder,if any,to the person or
persons legally entitled thereto.
28. REMEDIES CUMULATIVE. No right,power or remedy conferred upon or
reserved to Beneficiary by this Deed of Trust is intended to be exclusive of any other rights,
powers or remedies,but each such right,power and remedy shall be cumulative and concurrent
and shall be in addition to any other right,power and remedy given hereunder or now or
hereafter existing at law or in equity.
OE, NERALT$OYjSIONS
29. GOVERNING LAW. This Deed of Trust shall be interpreted under and governed
by the laws of the State of California, except for those provisions relating to choice of law and
those provisions preempted by federal Iaw.
30. ATTORNEYS'FEES AND COSTS. In the event of any Event of Default,or any
legal or administrative action is commenced to interpret or to enforce the terms of this Deed of
Trust,each party shall bear its own attorneys' fees and costs. The prevailing party in such action
shall not be entitled to recover any attorneys' fees and costs in such action.
31. CONSENTS AND APPROVALS. Any consent or approval of the City required
under this Regulatory Agreement shall not be unreasonably withheld. Any approval must be in
writing and executed by an authorized representative of the City.
32. TIME. Time is of the essence in this Deed of Trust.
33. NOTICES,DEMANDS AND COMMUNICATIONS. Formal notices,demands
and communications between Trustor and Beneficiary shall be sufficiently given and shall not be
deemed given unless dispatched by registered or certified mail,postage prepaid,return receipt
requested, or delivered personally, to the principal offices of Trustor and Beneficiary as follows:
Attachment No.3
Page 9 of 12
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RLS 97-800
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BENEFICIARY: Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
Huntington Beach,CA 92648
Attention: Executive Director
Copy: Economic Development Department
TRUSTOR: Orange County Community Housing
1833 E. 17th Street, Suite 207
Santa Ana,CA 92701
Attention: Executive Director
34. BINDING UPON SUCCESSORS. All provisions of this Deed of Trust shall be
binding upon and inure to the benefit of the heirs,administrators,executors, successors-in-
interest, transferees,and assigns of Trustor,Trustee,and Beneficiary.
35. WAIVER. Any waiver by Beneficiary of any obligation of Trustor in this Deed
of Trust must be in writing. No waiver will be implied from any delay or failure by Beneficiary
to take action on any breach or default of Trustor or to pursue any remedy allowed under the
Deed of Trust or applicable law. Any extension of time granted to Trustor to perform any
obligation under this Deed of Trust shall not operate as a waiver or release Trustor from any of
its obligations under this Deed of Trust. Consent by Beneficiary to any act or omission by
Trustor shall not be construed to be a consent to any other or subsequent act or omission or to
waive the requirement for Beneficiary's written consent to future waivers.
36. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications
to this Deed of Trust must be in writing,and shall be made only if mutually agreed upon by
Beneficiary and Trustor.
37. LOAN AGREEMENT CONTROLS. If there is any contradiction between this
instrument and the Loan Agreement,the terms of the Loan Agreement shall control.
38. DEFINITIONS. Capitalized terms not otherwise defined in this Deed of Trust
shall have the same meaning as defined terms in the Loan Agreement.
39. PROOFS OF CLAIM. In the case of any receivership, insolvency,bankruptcy,
reorganization, arrangement,adjustment,recomposition or other proceedings affecting Trustor,
its creditors or its property,Trustee,to the extent permitted by law,shall be entitled to file such
proofs of claim and other documents as may be necessary or advisable in order to have the claims
of Beneficiary allowed in such proceedings and for any additional amount which may become
due and payable by Trustor hereunder after such date.
40. SEVERABILITY. Every provision of this Deed of Trust is intended to be
severable. If any term or provision of this Deed of Trust is declared to be illegal, invalid,or
Attachment No.3
Page 10 of 12
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RLS 97-800
10R4197
unenforceable by a court of competent jurisdiction,the legality,validity,and enforceability of the
remaining provisions shall not be affected. If the lien of this Deed of Trust is invalid or
unenforceable as to any part of the debt,or if the lien is invalid or unenforceable as to any part of
the Security,the unsecured or partially secured portion of the debt and all payments made on the
debt(whether voluntary or under foreclosure or other enforcement action or procedure)shall be
considered to have been first paid or applied to the payment of that portion of the debt which is
not secured or partially secured by the lien of this Deed of Trust.
41. SUBSTITUTION OF TRUSTEES. Beneficiary may from time to time appoint
another trustee to act in the place and stead of Trustee or any successor. Upon such appointment
and without conveyance,the successor trustee shall be vested with all title,powers,and duties
conferred upon Trustee. Each such appointment and substitution shall be made by a written
instrument executed by Beneficiary containing reference to this Deed of Trust and its place of
record,which when duly recorded in the Orange County Office of the Recorder shall be
conclusive proof of proper appointment of the successor trustee.
42. ACCEPTANCE BY TRUSTEE. Trustee accepts this Trust when this Deed of
Trust,duly executed and acknowledged, is made public record as provided by law. Except as
otherwise provided by law,the Trustee is not obligated to notify any party hereto of pending sale
under this Deed of Trust or of any action or proceeding in which Trustor,Beneficiary,or Trustee
shall be a party unless brought by Trustee.
IN WITNESS WHEREOF,Trustor has executed this Deed of Trust as of the day and year
first above written.
TRUSTOR:
Orange County Community Housing
Corporation,a California nonprofit
public benefit corporation
By:
ALL." t�u
Its: 4FXSL0C- TLJ P reC r
By:
Its:
THIS DOCUMENT MUST BE NOTARIZED FOR RECORDING
BORROWER'S SIGNATURE MUST BE ACKNOWLEDGED
Attachment No.3
Page 11 of 12
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RLS 97-800
10/24/97
Exhibit"A"to Deed of Trust
Legal Description
17351 Kolcdo Lane
Lot 11 of Tract No.4301, in the County of Orange, State of California, as per map
recorded in Book 177,pages 11 and 12 inclusive of miscellaneous maps, in the office of
the County Recorder of said county.
Exhibit"A"to
Attachment No.3
Page 1 of 1
41klG:Agree:KotedoAttach311 O/24197
RLS 96-758
}
STATE OF CALIFORNIA }ss.
COUNTY OF ORANGE }
On NOVEMBER 20, 1997, before me, KATHERINE M. SOTO, personally appeared
ALLEN P. BALDWIN personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
KAMEPINE
Of
COOAe�homy Fwk
AME � v
Lfy Commisabn E�tres
([his area for official notarial scat) ANC3.4,19Q8
• �, CITY OF HLJI'VTINGTOPJ BEACH
4=
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the Deed dated
November '17, 1997 from ORANGE COUNTY COMMUNITY HOUSING
CORPORATION, to the REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH, a public body corporate and politic, is hereby accepted by
the undersigned officer or agent on behalf of the Agency pursuant to the authority
conferred by Resolution No. 76 of the Agency adopted June 20, 1983 and the grantee
consents to the recordation thereof by its duly authorized officer.
Dated: December 19, 1997
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CLERK
BY-
(I. 10
eputy Clerk
(Telephone:714.536.5227)
Ir C
• y
TNISORIGINALDOCUMENT WAS SCANNED
NO FEE DOCUMENT AND ELECTRONICALLY RECORDED OK
Recording requested by and DEC 3 0 1W_
When recorded, mail to: KI�LSO `f31
Document No.
City of Huntington Beach First American Title Insurance Co.
2000 Main Street
Huntington Beach, CA 92648
Attn: City Clerk
REGULATORY AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY OF TIIE CITY OF HUNTINGTON BEACH AND ORANGE COUNTY
COMMUNITY HOUSING CORPORATION CONCERNING TIIE ACQUISITION AND
REHABILITATION OF AFFORDABLE HOUSING AT 17291 KOLEDO LANE WITH
FUNDS OBTAINED FRO;II TIIE ITOINIE INVESTMENT PARTNERSHIP PROGRAM
This Regulatory Agreement is made this 111L day of 1997,by
and between the Redevelopment Agency of the City of Huntington Beach,a public body(the
"Agency"),and Orange County Community Housing Corporation,a California public benefit
corporation("OCCHC").
RECITALS
WHEREAS, OCCHC intends to purchase a four-unit building on Koledo Lane in the
City of Huntington Beach; and
OCCHC desires that all of the Project's units be rented at prices affordable to low income
households; and
The Redevelopment Agency has received a commitment of funds from the City of
Huntington Beach. The City has received Home Investment Partnership Program funds
Attachment No.4
-- _ Page I of 13
' This document is solely for the
4/s:G:4-97Ag,ec:Kol:do97;Attach4 Tax•Exempt•Government Agency official business of the City
R1S97-800 CITY OF HUNTINGTON BLACH of HuntinZton °cazh, as contem
10/24/97 Connie Brockway, CtitC plated under Gavernzent Code
City Clerk , .- Soc. 6103 And *hould •be recorded
By
Ifte_s of eharaA:
putt' City Clerk "-•�-�: "t
• Y
� 1 {
1
("HOME Funds")from the United States Department of Housing and Urban Development
("HUD")pursuant to the Cranston-Gonzales National Housing Act of 1990 for the purpose of
expanding the supply of decent,safe, sanitary and affordable housing for very-low and low-
income persons and families; and
OCCHC has received a loan from the Agency of HOME Funds to support the acquisition
and rehabilitation of the Project,and the funds have been made available in order to help achieve
financial feasibility for the Project and maximize the affordability of Project units; and
As further consideration for this funding and to further the interests of the Agency,
Agency and OCCIIC have agreed to enter into and record this Regulatory Agreement. The
purpose of this Regulatory Agreement is to regulate and restrict the occupancy,rents, operation,
ownership,and management of the Project. The covenants in this Regulatory Agreement are
intended to run with the land and be binding on OCCIIC and its successors,
NOW THEREFORE,IN CONSIDERATION of the mutual agreements,obligations,and
representations,and in further consideration for the aforementioned funding, OCCIIC,and
Agency hereby agree as follows:
ARTICLE 1. DEFIyITIONS
The following terms have the meanings and content set forth in this section wherever
used in this Regulatory Agreement or attached exhibits.
1.1 "AREA MEDIAN INCOME" means the median income for the Orange County
Primary Metropolitan Statistical Area(PMSA),with adjustments for household size, as
determined from time to time by the U.S. Department of Housing and Urban Development
(HUD)pursuant to the United States Housing Act of 1937 as amended,or such other method of
median income calculation applicable to the Agency that HUD may hereafter adopt in connection
with said Act.
1.2 "AGENCY" means the Redevelopment Agency of the City of Huntington Beach,
a public body,and its officers,officials,directors,employees,agents and authorized
representatives.
1.3 "DEED OF TRUST" means the deed of trust,placed on the Property as security
for the Loan with OCCHC as trustor and the Agency as beneficiary,as well as any amendments
to,modifications of,and restatements of said deed of trust.
Attachment No. 4
Page 2 of 13
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RLS 97-900
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1.4 "HOME" means Home Investment Partnership Program created by the National
Affordable Housing Act of 1990.
1.5 "LOAN" means any loan of funds provided by the Agency to OCCHC for the
Project.
1.6 "LOAN DOCUMENTS"means collectively the Deed of Trust,Note,and this
Regulatory Agreement as they may be amended,modified,or restated from time to time,along
with all exhibits and attachments to these documents.
1.7 "NOTE" means the promissory note executed by OCCHC in favor of the Agency
evidencing the Loan,which is secured by the deed of trust,as well as any amendments to,
modifications of,or restatements of said promissory note.
1.8 "PROJECT" means the four(4)units of rental housing on the Property to be owned
and operated by OCCHC for Very Low-Income households.
1.9 "PROPERTY" means the real property described in the attached Exhibit A,which is
hereby incorporated into this Regulatory Agreement by this reference.
1.10 "VERY LONV-INCOME HOUSEHOLD" means a household whose annual
income does not exceed fifty percent(50%)of the median income for the Orange County PMSA
as determined by HUD with adjustments for smaller and larger households.
2.1 "UNIT" means a housing unit in the Project.
ARTICLE 2. OCCHi OBLIGATIONS
2.1 COMPLIANCE WITH LOAN DOCUMENTS. OCCHC's actions with respect to
the Property and the use of Loan funds shall at all times be in full conformity with all of the
requirements of the Loan Documents.
2.2 TERM OF AGREEMENT. This Regulatory Agreement shall commence upon
execution and shall remain in full force and effect for thirty(30)years.
2.3 COMPLIANCE WITH PROGRAM REQUIREMENTS. OCCHC shall comply
with all requirements imposed on projects assisted under the HOME Program as contained in 42
U.S.C. Sections 12701,et seq.,24 C.F.R. Part 92,and other implementing rules and regulations.
Attachment No.4
Page 3 of 13
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RLS 97-800
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. i
! y
ARTICLE 3. PROJECT OCCUPANCY AND RENTS
3.1 OCCUPANCY OF PROJECT. OCCHC shall limit for the full term of this
Regulatory Agreement the rental of all four(4)Units to Very Low-Income Households at no
more than the maximum rental charges set forth in this Regulatory Agreement. The Units
restricted by this Regulatory Agreement shall consist of four(4)two-bedroom units. The income
levels and other qualifications of Very Low-Income Household applicants for Units shall be
certified prior to initial occupancy and recertified yearly by OCCHC. In the event that
recertification of a Very Low-Income Household's income indicates that the income exceeds the
maximum income designated for a Very Low-Income Household,OCCHC shall adjust the
household's rent to equal the lesser of(a)thirty percent(30%)of the household's gross income or
(b)the fair market rental of the unit. In addition,OCCHC shall rent the next available Project
unit to a Very Low-Income Household.
3.2 MAXIMUM RENTAL CHARGES. The total charges for rent, utilities, and
related services to Very Low Income Household shall not exceed thirty percent(30%)of fifty
percent(50%)of Area Median Income adjusted for family size. Fifty percent(501/0)of Area
Median Income for a three(3)person family shall be assumed for a two (2)bedroom unit and
fifty percent(50116)of Area Median Income for a five (5)person family for a three-bedroom unit.
Initial rents for each Unit shall be approved by the Agency at the time of initial occupancy of the
Project. Annual rent increases shall be based on the change in permissible rents published
annually by HUD. OCCHC may annually make any rent adjustment pursuant to the terms of this
Regulatory Agreement. At least 60 calendar days prior to increasing rents on any Unit restricted
by this Regulatory Agreement,OCCHC shall submit to the Agency for review and approval a
written request for such increase. Households occupying Units restricted by this Regulatory
Agreement shall be given at least 30 days written notice prior to any rent increase.
3.3 CONDOMINIUM CONVERSION. OCCEIC shall not convert Project units to
condominium or cooperative ownership or sell condominium or cooperative conversion rights to
the Property during the term of this Regulatory Agreement.
3.4 NONDISCRIMINATION. OCCHC shall not discriminate or segregate in the use,
enjoyment,occupancy,conveyance,lease,sublease,or rental of Project units on the basis of race,
color,ancestry, national origin,religion,sex,sexual preference,age, marital status, family status,
source of income,physical or mental disability,Acquired Immune Deficiency Syndrome(AIDS)
or AIDS-related conditions(ARC),or any other arbitrary basis. OCCHC shall include a
statement in all advertisements,notices and signs for the availability of Project units for rent to
the effect that OCCHC is an Equal Housing Opportunity Provider.
Attachment No. 4
Page 4 of 13
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RtS 97-800
1 OR4/97
ARTICLE 4. PROPERTY MANAGEMENT
4.1 MANAGEMENT RESPONSIBILITIES. OCCfIC is responsible for all
management functions with respect to the Project,including without limitation the selection of
tenants,certification and recertification of household size and income,evictions,collection of
rents and deposits,maintenance, landscaping,routine and extraordinary repairs,replacement of
capital items,and security. The Agency shall have no responsibility over management of the
Project.
The Site shall be occupied,used and maintained as follows:
A. U=. Each dwelling unit shall be used only for private apartment dwelling
purposes, with appurtenant facilities,and for no other purposes.
D. ems. All signs on the property shall conform with all ordinances and other
regulations of the Agency.
C. Waste. OCCHC and the occupants shall not permit or suffer anything to be done
or kept upon said premises which iti711 increase the rate of insurance on any building, or on the
contents thereof,or impair the structural integrity thereof or which will obstruct or interfere with
the rights of other occupants,or annoy them by unreasonable noises or otherwise,nor shall any
occupant commit or permit any nuisance on the premises or fail to keep to premises free of
rubbish,clippings and trash or commit or suffer any illegal act to be committed thereon.
OCCHC shall comply with all of the requirements of all governmental authorities with respect to
the premises. If by reason of the occupancy or uses of the premises the rate of insurance on the
Site shall be increased, OCCHC shall become personally liable for the additional insurance
premiums.
D. Improvements. There shall be no structural alteration,construction or removal
of any building, fence or other structure on the Site(other than repairs or rebuilding permitted
herein)without the approval of the Agency or the Agency and in accordance with the Agency
Code.
E. Pgt$in1;. OCCHC shall not permit the parking, storing or keeping of any vehicle
except wholly within the parking areas designated therefor. OCCfIC shall not permit the
parking,storing or keeping of any large commercial type vehicle(dump truck,cement mixer
truck, oil or gas truck,etc.),or any recreational vehicle(camper unit,camper shell detached from
a private passenger vehicle, motor home,trailer, boat trailer,mobile home or other similar
vehicle,except%vhen parked within an enclosed parking space),boats over twenty(20) feet in
Attachment No. 4
Page 5 of 13
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RLS 97-800
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length or any vehicle other than a private passenger vehicle upon any portion of the Site,
including parking spaces. OCCHC shall not permit major repairs or major restorations of any
motor vehicles,boat,trailer,aircraft or other vehicle to be conducted upon any portion of the
Site, including parking spaces,except for emergency repairs thereto and then only to the extent
necessary to enable movement thereof to a proper repair facility. No inoperable vehicle shall be
stored or kept anywhere on the Site. OCCHC shall have the right to remove,at the tenant's
expense,any vehicle parked, stored or Kept in violation of the provisions of this Declaration. In
addition,all provisions of the Huntington Beach Municipal Code,including amendments thereto,
shall apply.
F. Occupa=. Occupancy of each dwelling unit shall be restricted to occupancy
standards set forth in the Huntington Beach Municipal Code or state standards,as are effective or
as may be effective or amended. OCCHC shall not be permitted to lease or rent any dwelling
unit thereon for transient or hotel purposes. Any lease or rental agreement covering an apartment
shall provide that the terms of the lease or rental agreement shall be subject in all respects to the
provisions of this Declaration of Conditions, Covenants and Restrictions and that any failure by
the lessee to comply with the terms of such documents shall be a default under the lease or rental
agreement. All leases and rental agreements shall be in writing. All prospective
tenants/occupants of the Site shall make application through OCCHC.
G. Inspection. To the extent permitted by law,the City of Huntington Beach and
the Agency shall have the right of entry,at reasonable business hours and upon no less than
twenty-four(24)hours advance notice,onto the Site to inspect for the need for repairs or
maintenance. Entry onto the Site or into any unit for other than emergency repairs may be made
only after such advance notice and request for entry. If request for entry is denied or the Site or
any applicable unit is unoccupied,the City or Agency may apply for an appropriate warrant or
other order from a court of appropriate jurisdiction.
H. Subdivision. No part of the Site shall at any time be ovmed by a cooperative
housing corporation,nor shall OCCHC take any steps in connection with a conversion to such
ownership or uses. Other than obtaining a final subdivision reap on the Site and a final
subdivision public report from the California Department of Real Estate,the Developer shall not
take any steps in connection with a conversion of the Site to a condominium ownership,or with a
conversion of the Site to"timeshare"ownership.
I. Exterior Maintenance. The exterior areas of the Site shall be kept free of rubbish,
debris and other unsightly or unsanitary materials. Exterior yard areas and parking areas shall be
kept free of deterioration, including: potholes,cracks in asphalt so as to become uneven,
unsightly surface conditions,weeds growing through asphalt. Perimeter fencing,landscaping
and irrigation system shall be routinely inspected and maintained in good condition.
Attachment No. 4
Page 6 of 13
41s:G:4-97Agree:Kolcdo97:Attach4
RLS 97-800
10l14197
Each occupant of the Site shall have the affirmative obligation to prevent what might be
considered a fire hazard or a condition dangerous to the public health, safety and general welfare;
or constitute an unsightly appearance or otherwise detract from the aesthetic and property values
of neighboring dv%,elling units and properties. The following minimum performance standards
for the maintenance of buildings,yards,and landscaping shall be adhered to by the Developer:
1. Landscaping on the Site shall be absent of the following:
a. Lams with grasses in excess of six(6) inches in height.
b. Untrimmed hedges.
C. Trees, shrubbery,lawns and other plant life dying from Iack of water or
other necessary maintenance.
d. Trees and shrubbery grown uncontrolled without proper pruning.
C. Vegetation so overgrown as to be likely to harbor rats or vermin.
f. Dead,decayed or diseased trees,weeds and other vegetation.
g. Inoperative irrigation system(s).
2. Yard areas shall be maintained so as to be absent of the following:
a. Broken or discarded furniture,appliances and other household equipment
stored in yard areas for periods exceeding one(1)week.
b. Packing boxes, lumber,trash,dirt and other debris stored in yards for
unreasonable periods in areas visible from public property or neighboring
properties.
C. Unscreened trash cans, bins or containers stored for unreasonable periods
in areas visible from public streets and common areas.
3. No building,wall or fence may be left in an unmaintained condition so that any of
the following exist:
Attachment No.4
Page 7 of 13
4Is:0:4-99Agrcc:Kolcdo97:Aitach4
RLS 97-800
10/24/97
a. Buildings abandoned,boarded up,partially destroyed or left unreasonably
in a state of partial construction.
b. Unpainted buildings or buildings with peeling paint in such a condition as
to:
i. Cause dry rot,warping and termite infestation;or
ii. • Constitute an unsightly appearance that detracts from the aesthetic
or property values of neighboring properties.
C. Broken windows,constituting hazardous conditions and/or inviting
trespassers and malicious mischief.
d. Damaged garage doors that may become inoperative or unsafe to operate.
C. Graffiti remaining on any portion of the property for a period exceeding 72
hours.
f. Building interiors and exteriors shall be maintained to meet standards of
similar residential property in the Agency of Huntington Beach.
J. Agency.and City Wght oL&view and Enforcement. The City of Huntington
Beach C City')and the Agency shall be made parties to this Declaration for the limited purpose
as specified herein as follows:
1. Changes or amendments to this Declaration must be submitted for City
and Agency review and approval.
2. In the event of inaction by the Developer,the City and Agency are hereby
granted expedient power to enforce all provisions of this Declaration including,but not limited
to,the maintenance of the Improvements and all yards,buildings and landscaping areas within
the Site.
3. The City and Agency are hereby granted the express power to enforce all
laws and ordinances of the State of California and/or the Agency on yards,structures,and private
parking areas within the Site. Nothing within this Declaration,however,shall be construed as
imposing an obligation or requiring the City or Agency to enforce any provision thereof.
Attachment No.4
Page S of 13
4/s:G:4-97Agrcc:Kolcdo97:Attach4
RLS 97-800
10/24/97
4. The City and the Agency shall be given prior written notice of any
proposed amendment to this Declaration. Such notice shall be given by mailing a copy of the
precise language of the proposed amendment to the City of Huntington Beach,c/o City Clerk,
together with a letter of transmittal explaining the proposed change in general terms. The City
and the Agency shall have an opportunity to review and comment upon the proposed amendment
for a period of not less than forty-five(45)days prior to the effective date of any such proposed
amendment. If the City or Agency fail to respond within forty-five(45)days,the proposed
change(s)and amendment(s)shall be deemed approved,unless that time period is extended by
mutual agreement of all parties.
K. City of Huntingtgn Beach Right oLEotry for Code Enforcement. Repair and
Twig Regulation.
1. R'ltht of Entrv. To the extent permitted by law,OCCHC hereby
acknowledges and intends and thus grants to the City or Agency,through the City or Agency's
duly authorized agents or employees,the right to enter upon the Site for the following purposes:
a. Inspection, maintenance and repair of the Site.
b. Enforcement of local traffic and/or parking regulations.
2. Reimbursement of AeencY ExKaditureS. All costs and expenses
incurred by the City and Agency arising out of its inspection,maintenance and repair of
the Site, as provided hereinabove("City Maintenance Costs"),shall be charged as an
expense of the Developer and shall be paid within ten(10)days of receipt of an invoice
for same.
4.2 INSPECTION AND RECORDS. OCCHC shall maintain records which clearly
document OCCHC's performance of its obligations to operate the Property under the terms of
this Regulatory Agreement. OCCHC shall submit any records to the City or Agency within ten
(10) business days of the City's or Agency's request. OCCHC shall permit the Agency to enter
and inspect the Project for compliance with obligations under this Regulatory Agreement upon
24 fours advance notice of such visit by the Agency to OCCHC and to tenants of any inspected
Project units.
4.3 FEES,TAXES, AND OTHER LEVIES. OCCHC shall be responsible for the
payment of all fees,assessments,taxes,charges and levies imposed by any public authority or
utility company with respect to the Property,and shall pay such charges prior to delinquency.
However,neither Borrower nor the Partnership shall be required to pay and discharge any such
charge so long as(a)the legality thereof is being contested diligently and in good faith and by
Attachment No. 4
Page 9 of 13
4/s:GA-97Agr":Koicdo97:Attach4
RLS 97-800
10/24/97
appropriate proceedings, and(b)if requested by Lender, Borrower or the Partnership deposits
with Lender any funds or other forms of assurance Lender in good faith from time to time
determines appropriate to protect Lender from the consequences of the contest being
unsuccessful.
4.4 INSURANCE. OCCHC shall maintain insurance in full force and effect during
the tern of this Agreement in an amount at least equal to the replacement cost of the Project.
4.5 COMPLIANCE NVITH HOME PROGRAM REQUIREMENTS. Borrower shall
comply with all requirements imposed on projects assisted under the HOME program including
24 C.F.R. Part 92,and other implementing rules and regulations.
ARTICLE 5. GENERAL PROVISIONS
5.1 SUBORDINATION. This Regulatory Agreement shall be subordinated in
priority only to the liens created by the deeds of trust securing the construction and permanent
loans for the Project,and other liens and encumbrances otherwise approved in writing by the
Agency in its sole and absolute discretion.
5.2 DEFAULT AND REMEDIES. In the event of any breach of any agreement or
obligation under this Regulatory Agreement by OCCHC,the Agency shall give written notice to
OCCHC of such breach. OCCfIC shall have an opportunity to cure such breach within thirty
(30)days of its receipt of such written notice or such longer period of time if OCCHC is
diligently undertaking to cure such breach. If OCCIIC fails to perform a timely cure of the
specified breach,the Agency may proceed with any or all of the following remedies upon
OCCfIC's failure to cure:
A. Bring an action in equitable relief seeking the specific performance by
OCCHC of the terms and conditions of this Regulatory Agreement,and/or
enjoining,abating,or preventing any violation of said terms and
conditions,and/or seeking declaratory relief;
B. After notice provided for herein,make such repairs or replacements to the
Property and Project as are necessary and provide for payment thereof; or
C. Pursue any other remedy allowed at law or in equity.
Attachment No.4
Page I0 of 13
4/s:GA-97Agrce:Ko1cdo97:Attach4
RLs 97-800
10/24/97
5.3 NON-LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS. The City
and Agency shall not be personally liable to OCCIIC for any obligation created under the terms
of this Regulatory Agreement except in the case of fraud or willful misconduct by such person.
5.4 GOVERNING LAW. This Regulatory Agreement shall be interpreted under and
be governed by the laws of the State of California, except for those provisions relating to choice
of law and those provisions preempted by federal law.
5.5 REGULATORY AGREEMENT CONTROLS. In the event that any provisions
of this Regulatory Agreement and any Loan Document conflict,the terms of the Regulatory
Agreement shall control.
5.6 ATTORNEYS' FEES AND COSTS. In the event that any legal or administrative
action is commenced to interpret or to enforce the terms of this Regulatory Agreement,each
party shall bear its own attorneys' fees and costs. The prevailing party in any such action shall
not be entitled to recover any attorneys' fees and costs incurred in such action.
5.7 TIME. Time is of the essence in this Regulatory Agreement.
5.8 CONSENTS AND APPROVALS. Any consent or approval of the City and
Agency required under this Regulatory Agreement shall not be unreasonably withheld. Any
approval must be in writing and executed by an authorized representative such party.
5.9 NOTICES,DEMANDS AND COMMUNICATIONS. Formal notices,demands
and communications between OCCHC and the Agency shall be sufficiently given and shall not
be deemed given unless dispatched by registered or certified mail,postage prepaid,return receipt
requested,or delivered personally,to the principal offices of OCCHC and the Agency as follows:
Agency: Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
Huntington Beach,CA 92648
Attention: Office of the Executive Director
OCCHC: Orange County Community Housing Corporation
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
Attention: Executive Director
Attachment No. 4
Page 11 of 13
41s:0:4-97Agrcc:Koledo97:Attachh4
RLS 97-800
10/24N7
5.10 BINDING UPON SUCCESSORS. All provisions of this Regulatory Agreement
shall be binding upon and inure to the benefit of the heirs,administrators, executors,successors-
in-interest,transferee,and assigns of OCCHC,the Partnership and the Agency,and shall run
with the land for the full term of this Regulatory Agreement,regardless of any assignment,
payment,prepayment, expiration,extinguishment of any Loan or Note,any reconveyance of any
Deed of Trust, or any conveyance or transfer of the Property.
5.11 RELATIONSHIP OF PARTIES. The relationship of OCCHC,and the Agency
for this Project during the term of this Regulatory Agreement shall not be construed as a joint
venture,equity venture,or partnership. Except as the Agency may specify in writing, OCCHC
shall have no authority to act as an agent of the Agency or to bind the Agency to any obligation.
5.12 WAIVER. Any waiver by the Agency of any obligation in this Regulatory
Agreement must be in writing. No waiver will be implied from any delay or failure by the
Agency to take action on any breach or default of OCCHC to pursue any remedy allowed under
this Regulatory Agreement or applicable law. Any extension of time granted to OCCIIC to
perform any obligation under this Regulatory Agreement shall not operate as a waiver or release
from any of its obligations under this Regulatory Agreement. Consent by the Agency to any act
or omission by OCCIIC shall not be construed to be a consent to any other or subsequent act or
omission or to waive the requirement for the Agency's written consent to future waivers,
5.13 AMENDMENTS AND MODIFICATIONS. Any amendments or modifications
to this Regulatory Agreement must be in writing,and shall be made only if executed by both
OCCHC and the Agency.
Attachment No. 4
Page 12 of 13
4/s:G:4-97Agrce:koledo97:Attach4
Rt.S 97-800
10/24/97
5.14 SEVERABILITY. Every provision of this Regulatory Agreement is intended to
be severable. If any provision of this Agreement shall be held invalid,illegal,or unenforceable
by a court of competent jurisdiction,the validity,legality,and enforceability of the remaining
provisions shall not in any way be affected or impaired.
IN WITNESS WHEREOF,the parties hereto have executed this Regulatory Agreement
by and through their authorized officers as of the date first above written.
OCCHC: AGENCY:
Orange County Community Mousing Redevelopment Agency of the City
Corporation,a California Non Profit of Iiuntington Beach,a California
Public Benefit Corporation public body
By: 'f.Q91
.nt t airman
Its:
By: ATTEST-
Its: sIZZXZLA�
Agency Clerk 14, ¢r
INITIATED AND APPROVED APPROVED AS TO FORM:
g��_ e
Executiv irector IF" Agency Attorney y
,o-!'1
REVIEWED AND APPROVED. /Z tZ �7
AM
Dirk-to-r'&Economic Development
LIP
Attachment No.4
Page 13 of 13
41s:G:4-97Agree:F:oledo97:Anach4
RLS 97-800
10124197
ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
CORPORATE RESOLUTION TO BUY PROPERTY
4
I. Robert A.Johnson, Secretary,hereby certify that I am the duly elected and qualified Secretary of Orange County Community
Housing Corporation,a California nonprofit,public benefit,corporation duly organized and existing under the laws of the State of California
(hereinafter"OCCHC");that the following is a true copy of certain resolutions duly adopted by the Board of Directors of OCCHC at a meeting
duly called,noticed and held on July 17, 1997,at which meeting a quorum was present and acting throughout;that such resolutions have been
duly recorded in the minutes of the Board of Directors of OCCHC,bylaws and other instruments binding or affecting OCCHC;and that such
resolutions have not been revoked,rescinded or modified,and are now in full force and effect in the following form:
F
RESOLVED THAT.•OCCHC purchase the property known as 17291 Koledo Lane,Huntington Beach,CA and execute all appropriate
documents therewith including those documents in accord with respective escrow instructions.
RESOLVED THAT•the Executive Director,Allen P.Baldwin,be and he is hereby authorized,empowered,and directed for and
on behalf of and under the corporate seal of OCCHC and as its corporate act and deed,from time to time,(1)to borrow from lender such sums
of money as,in the judgement of designee,OCCHC may require on such terms and conditions as shall be required by lender,and to sign and
deliver such promissory notes and other evidences of indebtedness for such money borrowed or advanced as lender shall require,the designee
being also authorized to direct orally or in writing the disposition of the proceeds of any such obligation,and to accept or direct delivery from
escrow of any such proceeds or other property of OCCHC at any time held by lender;(2)to contract with lender for the issuance by lender
of letters of credit and for other financial accommodations as shall in the discretion of the designee be required for OCCHC repayment to lender,
as lender shall require;(3)to enter into agreements for the leasing and/or purchase of property by OCCHC from lender,for such sums and upon
such terms as may be advisable in the sole judgement of the designee;(4)to grant security interests in,mortgage,encumber,pledge,convey,
grant,hypothecate,deed in trust,assign,sell,transfer,and deliver to lender by such instruments in writing or otherwise as may be required
by lender,any of the property of OCCHC(whether real,personal or mixed),to secure the payment of promissory notes,guarantees,agreements,
and any other evidences or indebtedness and other obligations of OCCHC entered into pursuant to these resolutions,and for all instruments,
promissory notes,guarantees,agreements,and any other evidences of indebtedness and other obligations of OCCHC,and all renewals and/or
extensions thereof,may be in such forms and contain such provisions,covenants,recitals,and agreements as lender may require and the designee
may approve,and the execution thereof by the designee shall be conclusive evidence of such approval;(5)to negotiate,endorse, and sell to,
or to discount with escrow,notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness payable to,
or otherwise held or owned by OCCHC,upon such terms as may be agreed upon by the designee and lender,and to endorse and deliver to
lender said notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness so negotiated,endorsed,sold,
or discounted,and to guarantee the payment of the same to lender;(6)to renew and/or extend,in whole or in part,any promissory notes,
guarantees, agreements,other evidences of indebtedness and other obligations of OCCHC which are in these resolutions referred to, and to
execute and deliver to escrow such renewals and/or extensions accordingly;and(7)to perform all acts and execute and deliver all instruments
in writing which lender may deem necessary to carry out the purpose of these resolutions;
RESOLVED FURTHER That a certified copy of these resolutions,certified by the Secretary of OCCHC be delivered to lender;
and that these resolutions shall continue in full force and effect until written notice of their revocation by(together with certified copy of)a
resolution legally adopted by the Board of Directors of OCCHC shall have been actually received from OCCHC by lender at its office designated
on any certified copy of these resolutions submitted to lender or otherwise designated by lender,and until all indebtedness and obligations which
may have been incurred as aforesaid shall have been fully paid,satisfied,and discharged,and no such revocation,nor any receipt of any notice
thereof, shall in any manner whatever affect any indebtedness or obligation which (prior to actual receipt of the notice and resolution of
revocation by lender in the manner aforesaid)may have been incurred as aforesaid)may have been incurred as aforesaid;
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the corporate seal of OCCHC,
this day of 1997.
corporate seal
Ames Davis,Vice Chairman of
Orange County Community Housing Corporation
DESIGNEE: Ilen P.Bal ecutive Director
C
1833 East 17th Street, Suite 207, Santa Ana, California 92705-8629 (714) 558-8161
ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
CORPORATE RESOLUTION TO BUY PROPERTY
I, Robert A.Johnson,Secretary,hereby certify that I am the duly elected and qualified Secretary of Orange County Community
Housing Corporation,a California nonprofit,public benefit,corporation duly organized and existing under the laws of the State of California
(hereinafter"OCCHC");that the following is a true copy of certain resolutions duly adopted by the Board of Directors of OCCHC at a meeting
duly called,noticed and held on July 17,1997,at which meeting a quorum was present and acting throughout;that such resolutions have been
duly recorded in the minutes of the Board of Directors of OCCHC,bylaws and other instruments binding or affecting OCCHC;and that such
resolutions have not been revoked,rescinded or modified,and are now in full force and effect in the following form:
r
RESOLVED THAT: OCCHC purchase the property known as 17351 Koledo Lane,Huntington Beach,CA and execute all appropriate
documents therewith including those documents in accord with respective escrow instructions.
RESOLVED THAT.-the Executive Director.Allen P.Baldwin,be and he is hereby authorized,empowered,and directed for and
on behalf of and under the corporate seal of OCCHC and as its corporate act and deed,from time to time,(1)to borrow from lender such sums
of money as,in the judgement of designee,OCCHC may require on such terms and conditions as shall be required by lender,and to sign and
deliver such promissory notes and other evidences of indebtedness for such money borrowed or advanced as lender shall require,the designee
being also authorized to direct orally or in writing the disposition of the proceeds of any such obligation,and to accept or direct delivery from
escrow of any such proceeds or other property of OCCHC at any time held by lender;(2)to contract with lender for the issuance by lender
of letters of credit and for other financial accommodations as shall in the discretion of the designee be required for OCCHC repayment to lender,
as lender shall require;(3)to enter into agreements for the leasing and/or purchase of property by OCCHC from lender,for such sums and upon
such terms as may be advisable in the sole judgement of the designee;(4)to grant security interests in,mortgage,encumber,pledge,convey,
grant,hypothecate,deed in trust,assign, sell,transfer,and deliver to lender by such instruments in writing or otherwise as may be required
by lender,any of the property of OCCHC(whether real,personal or mixed),to secure the payment of promissory notes,guarantees,agreements,
and any other evidences or indebtedness and other obligations of OCCHC entered into pursuant to these resolutions,and for all instruments,
promissory'notes,guarantees,agreements,and any other evidences of indebtedness and other obligations of OCCHC.and all renewals and/or
extensions thereof,may be in such forms and contain such provisions,covenants,recitals,and agreements as lender may require and the designee
may approve,and the execution thereof by the designee shall be conclusive evidence of such approval;(5)to negotiate,endorse,and sell to,
or to discount with escrow,notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness payable to,
or otherwise held or owned by OCCHC,upon such terms as may be agreed upon by the designee and lender,and to endorse and deliver to
lender said notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness so negotiated,endorsed,sold,
or discounted,and to guarantee the payment of the same to lender,(6)to renew and/or extend, in whole or in part,any promissory notes,
guarantees,agreements,other evidences of indebtedness and other obligations of OCCHC which are in these resolutions referred to,and to
execute and deliver to escrow such renewals and/or extensions accordingly;and(7)to perform all acts and execute and deliver all instruments
in writing which lender may deem necessary to carry out the purpose of these resolutions;
RESOLVED FURTHER: That a certified copy of these resolutions,certified by the Secretary of OCCHC be delivered to lender;
and that these resolutions shall continue in full force and effect until written notice of their revocation by(together with certified copy of)a
resolution legally adopted by the Board of Directors of OCCHC shall have been actually received from OCCHC by lender at its office designated
on any certified copy of these resolutions submitted to lender or otherwise designated by lender,and until all indebtedness and obligations which
may have been incurred as aforesaid shall have been fully paid,satisfied,and discharged,and no such revocation,nor any.receipt of any notice
thereof, shall in any manner whatever affect any indebtedness or obligation which(prior to actual receipt of the notice and resolution of
revocation by lender in the manner aforesaid)may have been incurred as aforesaid)may have been incurred as aforesaid;
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the corporate seal of OCCHC,
this -- day of •1997.
corporate seal
r
es Davis, ice Chairman of
Orange County Community Housing Corporation
DESIGNEE: Allen P.Bal in, ecutive Director
1833 East 17th Street, Suite 207, Santa Ana, California 92705-8629 (714) 558-8161
Exhibit "A"to Regulatory Agreement
Legal Description
17291 Koledo Lane
All that certain land situated in the State of California, COUNTY OF ORANGE, CITY
OF HUNTINGTON BEACH,described as follows:
Lot 16 of Tract No.4301,as per map recorded in book 177 pages 1 I and 12 of
Miscellaneous Maps, in the Office of the County Recorder of said County.
Except all oil, gas, petroleum,minerals and other hydrocarbon substances in,under and/
or that may be produced below a depth of 150 feet from the surface of said property,or
any part thereof,as reserved in the deed from Joseph V. Madden and wife, to Joseph
Gerald Mabey and others dated October 13, 1950 and recorded November 13, 1950 in
Book 2100 Page 411,Official Records,Records of Orange County,California,which
deed further provides,that such reservations shall not entitle the said grantors,their heirs
and assigns,to any use of,or rights in or to any portion of the surface of said property to a
depth of 150 feet below the surface thereof.
Attachment No.4
Page I of 13
41s:G:4-97Agrcc:Koledo97:Attach4
RLS 97-900
10/24/97
A M E RI
Cti
41
ass
STATE OF CALIFORNIA }ss.
COUNTY OF ORANGE }
On NOVEMBER 20, 1997, before me, KATHERINE M. SOTO, personally appeared
ALLEN P. BALDWIN personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and
acknowledged to me that helshelthey executed the same in his/her/their authorized
capacity(ies), and that by hislherltheir signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
PME
_ #iVpM
(This area for official nolarial tear ORANGE oxftm
my
fa r
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of
rl
County of
On & . /99 Z before me, �5� -r � a7L '�r.� 70"A&
Dal Name and Trtb d MKW(e.g Jane Doe.Notary Ae)
personally appeared
Nameis]at Sgner(st
C►�ersonally known to me— o erson( }
whose name(•) ii subscribed to the within instrument
and acknowledged to me that belsheAthey executed the
MAYBRICE LHENRY same in bis►rherAh&authorized capacity(iee),and that by
Commission# 11374A74t hWherAh&signaturefe}on the instrument the personN,
%MyCorrm
No-ay pwc-Carforria
orongeCour•.ty or the entity upon behalf of which the personfs) acted,
E=,esO Z,23 : executed the instrument.
WITNESS my hand and official seat.
F S"ture of Nota ubYC
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this farm to another document.
Description of Attached Document
Title or Type of Document: ,,r,..'f
Document Date: ^017 (9 7 Number of Pages: _ 3
Signers) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: - r✓ .a10 Signer's Name:
❑ Individual ❑ Individual
❑ Corporate Officer ❑ Corporate Officer
Title(s): Title(s):
❑ Partner—❑ Limited D General ❑ Partner—❑ Limited ❑General
❑ Attomey-in-Fact ❑ Attomey-in-Fact
❑ Trustee ❑ Trustee
❑ Guardian or Conservator ❑ Guardian or Conservator -
�Other: rw.t�i�r>.s.)� Top OI thumb herb ❑ Other. . Top Ot thumb herg
Signer Is Representing: Signer Is Representing:
Cal-
0 IVA Hal o-&Notary Assodatan.&--M Aemmm Ave..PO.Box 7184•Canoga Park.GA IMD9-M4 Prod.No.SW7 Reorder Gan To"ree t-Eg"76,NV
7.
• CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
MMR)CE L HENRY
Comrrlissior.# 1157474
State of (a1VyCcmm.Wm0c12.j7_r1
Notc y Pubs CovnfY�
Orome
County of �t ,
On Amz"14*_ /7 19 9 Z before me,
Date Name and Tefe o1 t]Il.Cer(a g.Yjaim Doe.Wary )
personally appeared
Names)of sv"s)
ersonally known tome— to be the person(e)
whose name(s)is/ere subscribed to the within instrument
and acknowledged to me that WsheAbey executed the
MA"SR'.CE L HE 'cp same in4 is erAheir authorized capacity#ee},and that by
Cornm:ss'- 1 57474 er:Aheirsignature(e)on the instrument the personH,
.�. Not � Carforria or the entity upon behalf of which the person(} acted,
+r- Or gl_%co inly executed the instrument.
_s Dct 2.2JC
WITNESS my hand and official seal.
sgnalure d Wary .,c
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
-0-291
Document Date: 7 Number of Pages: A3
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: Z923M Signer's Name:
❑ Individual ❑ Individual
❑ Corporate Officer ❑ Corporate Officer
Title(s): Title(s):
❑ Partner—❑ Limited ❑General ❑ Partner—❑ Limited ❑General
❑ Attomeyin-Fact i , ; ❑ Attomey-in-Fact
❑ Trustee ' ❑ Trustee
ElGuardian or Conservator - ❑ Guardian or Conservator r
IT/Other: &-at k Top or mumo here ❑ Other: 1 top or mumb Aare
i
Signer Isl Representing: I Signer Is Representing:
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0 1995 Naaonal Nolary Amoeiafon a 8236 Ramnel Ave..P.O.Box 7184•Canoga Palk.CA 91309.7184 Prod.No.5907 Reorder.Call ToFFree 1.800-8764 W
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NO FEE DOCUMENT THIS ORIGINAL DOCUM- MWASSCAND
AND EiECTROKICAEEY RECORDED OIL
When recorded, mail to:
VU 3 0 TW
City of Huntington Beach tgort o b�` 30
2000 Main Street Document No.�_-�
Huntington Beach,CA 92648 First American Title Insurance Co.
Attention: Office of City Clerk
DEED OF TRUST,ASSIGNMENT OF RENTS,
AND SECURITY AGREEI%IENT
(Securing loan of$ 190,000.00 }
THIS DEED OF TRUST,ASSIGNMENT OF RENTS,AND SECURITY
AGREEMENT("Deed of Trust") is made this j2t:L day of`71c6;�, _ , 1997,by
Orange County Community Housing Corporation,a California nonprofit public benefit
corporation("Trustor"),to F+r5rAMstuAarLzJx3SjtAkfLCeas trustee("Trustee"),for the benefit of the
Redevelopment Agency of the City of Huntington Beach,a public body("Beneficiary").
GRANT IN TRUST
I. GRANT. Trustor, in consideration of the indebtedness referred to below,hereby
irrevocably grants and conveys to Trustee,IN TRUST,WITH POWER OF SALE, for the benefit
and security of Beneficiary,all of Trustoes interest in the property located in the City of
Huntington Beach, County of Orange,State of California,and described in the attached Exhibit
A, incorporated herein by this reference(the "Property");
TOGETHER WITH all interest,estates or other claims, both in law and in equity which
Trustor now has or may hereafter acquire in the Property;all buildings,structures, fixtures,
improvements,signs,and landscaping now or hereafter erected or located on the Property,
including all equipment and machinery used for supplying or distributing heating,cooling,
electricity, gas, water,air,and light,all kitchen and laundry appliances such as washers, dryers,
refrigerators,garbage disposals,ovens,ranges,dishwashers,all plumbing and bathroom fixtures,
all security and access control equipment,fire prevention and extinguishment equipment,
elevators, floor coverings,window coverings,paneling,cabinets,(provided,however,that
Trustor shall have the right to remove,if necessary,such fixtures, furnishings,and equipment for
the purpose of replacement with similar items of the same quality performing the same functions,
Attachment No.3A
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which replacements shall themselves become part of this grant); all building material and
equipment either now or hereafter delivered to the Property and intended to be installed therein
or any such material and equipment purchased with Loan proceeds whether or not located on the
Property; all reserves, accounts,deferred payments,and refunds relating to development on the
Property; all rents and income generated by the Property or improvements thereon(subject
however to the assignment of rents to Lender contained herein); all leases, subleases and rental
agreements covering the Property or any portion thereof now existing or hereafter entered into,
and all interests of Trustor in security deposits,advance rentals,accounts,or payments of similar
nature with respect to such leases,subleases,or rental agreements; all easements and rights-of-
way appurtenant to the Property, including parking and recreational easements,and all interests
of Trustor in any land lying within the right-of-way of any street,sidewalks,and areas of land
adjacent to or used in connection with the Property;all development rights and credits,air rights,
water rights,and oil,gas or mineral rights with respect to the Property;all claims or demands
with respect to insurance proceeds,and all awards made for a taking by eminent domain; all
interests and rights in any private or government grants,subsidies, loans,or other financing with
respect to development on the Property;all interests in personal property used in and about the
Property (except furniture and other personal property of occupants of dwelling units on the
Property);all intangible property and rights relating to the Property or operations on the
Property, including trade names,goodwill,trademarks,and service marks;all government
permits,approvals,and map rights related to construction on the Property;all architectural,
structural,and mechanical plans,specifications,designs,studies,and data with respect to
construction of improvements on the Property;all environmental tests,studies and reports with
respect to the Property;all current and future claims and rights of action of Trustor against prior
owners and operators of the Property,neighboring property owners and operators,tenants and
former tenants,consultants,advisors,and other third parties with respect to environmental or
Hazardous Materials contamination and cleanup of the Property under any federal,state, or local
ordinances, statutes,regulations,or administrative decisions or common law.
All of the foregoing,together with the Property,is herein referred to as the "Security."
OBLIGATIONS SECURED
2. Trustor makes this grant for the purpose of securing the following obligations:
A. Repayment of the indebtedness of Trustor to Beneficiary in the principal sum of
Dollars($
with interest thereon(the "Loan")evidenced by a promissory note executed by
Trustor(the "Note"), on file at the offices of Beneficiary,which is hereby
incorporated into this Deed of Trust by this reference)or as much as has been
disbursed to Trustor therewith,along with any extensions,amendments,
modifications,or renewals to the Note;and
I
Attachment No.3A
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RLS 97-800
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E
B. Payment of any sums advanced by Beneficiary to protect the security and priority
of this Deed of Trust;and
C. Payment of any sums advanced by Beneficiary following a breach of Trustor's
obligation to advance said sums and the expiration of any applicable cure period,
with interest thereon as provided herein;and
D. Performance of every obligation, covenant or agreement of Trustor contained in
this Deed of Trust,the Note,the Loan Agreement executed between Trustor and
Beneficiary,on file at the offices of Beneficiary,which is hereby incorporated
into this Deed of Trust by this reference),and the Regulatory Agreement executed
between Trustor and Beneficiary of dated the same day as this Deed of Trust
("Regulatory Agreement"),including all modifications, extensions and renewals
of these obligations;and
E. Performance of any other obligation or repayment of any other indebtedness of
Trustor to Beneficiary,where such evidence of obligation or indebtedness
specifically recites that it is secured by this Deed of Trust.
ABSOLUTE ASSIGNMENT OE RENTS AND RIGHT TO POSSESSION
3. ASSIGNMENT. As additional security,Trustor hereby assigns to Beneficiary:
(a)all of the rents,revenues,profits,and income from the Security,any deposits now or hereafter
in Trustor's possession which have been collected with respect to the Security,and any reserve or
capital funds now or hereafter held by Trustor with respect to construction or operation of the
Security (collectively,the "Rents");and(b)the right to enter,take possession of,and manage the
Security; provided however that Trustor shall have,before an Event of Default,the exclusive
right to possess the Security and to collect Rents and use them in accordance with the Loan
Documents. This assignment is intended to be an absolute and present transfer of Trustor's
interest in existing and future Rents,effective as of the date of this Deed of Trust.
4. ENFORCEMENT. Upon the happening of an Event of Default and written notice
to Trustor, Beneficiary may,in addition to other rights and remedies permitted by the Loan
Agreement,this Deed of Trust,or applicable law, (a)enter upon,take possession of,and manage
the Security,either in person as a mortgagee-in-possession,by agent,or by a receiver appointed
by a court,and do any acts which it deems necessary or desirable to preserve the value,
marketability or rentability of the Security,(b)collect all Rents, including those past due and
unpaid,and apply the same to pay for the costs and expenses of operation of the Security,
including attorneys' fees,and pay off any indebtedness secured by this Deed of Trust,all in such
order as Beneficiary may determine,and/or(c)enter upon and take possession of the Security.
Beneficiary may make,cancel,enforce,and modify leases and rental agreements,obtain and
evict tenants,set and modify rent terms,sue for rents due,enter into,modify,or terminate any
Attachment No.3A
Page 3 of 12
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RLS 97-300
OR4197
contracts or agreements,or take any legal action,as it deems necessary with respect to the Rents
or to development or operation of the Security.
5. APPOINTMENT OF A RECEIVER. In any action to enforce this assignment,
Beneficiary may apply for the appointment of a receiver to take possession of the Security and
take whatever measures are necessary to preserve and manage the Security for the benefit of
Beneficiary and the public interest. Trustor hereby consents to the appointment of a receiver.
The receiver shall have all of the authority over the Security that Beneficiary would have if
Beneficiary took possession of the Security under this assignment as a mortgagee-in-possession,
including the right to collect and apply Rents and the right to complete construction of
improvements.
b. NO WAIVER OF POWER OF SALE. The entering upon and taking possession
of the Security and the collection of Rents shall not cure or waive any default or notice of default
hereunder or invalidate any act done in response to such default or notice of default and,
notwithstanding the continuance in possession of the Security or the collection and application of
Rents,Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust or
by law upon occurrence of any Event of Default,including the right to exercise the power of sale.
COMMERCIAL CODE SECURITY AGREEMENT
7. GRANT. This Deed of Trust is intended to be a security agreement and financing
statement pursuant to the California Commercial Code for any of the items specified above as
part of the Security which under applicable law may be subject to a security interest pursuant to
the Commercial Code,and Trustor hereby grants Beneficiary a security interest in said items.
Beneficiary may file a copy of this Deed of Trust in the real estate records or other appropriate
index as a financing statement for any of the items specified as part of the Security. Trustor shall
execute and deliver to Beneficiary at Beneficiary's request any financing statements,as well as
extensions,renewals, and amendments thereof,and copies of this instrument in such form as
Beneficiary may require to perfect a security interest with respect to said items.
8. REMEDIES. Upon Trustoes breach of any obligation or agreement in the Loan
Documents,Beneficiary shall have the remedies of a secured party under the Commercial Code
and at Beneficiary's option may also invoke the remedies provided for elsewhere in this Deed of
Trust with respect to said items. Beneficiary may proceed against the items of real property and
personal property specified above separately or together and in any order whatsoever.
RIGHTS AND OBLIGATIONS OF TRUSTOR
9. PERFORMANCE OF SECURED OBLIGATION. Trustor shall promptly
perform each obligation secured by this Deed of Trust.
Attachment No.3A
Page 4 of 12
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RLS 97-900
10/24/97
14. PAYMENT OF PRINCIPAL AND INTEREST. Trustor shall promptly pay
when due the principal and interest on the indebtedness evidenced by the Note.
11. MAINTENANCE OF THE SECURITY.Trustor shall,at the Trustor's own
expense,maintain and preserve the Security or cause the Security to be maintained and preserved
in good condition, in good repair,and in a decent, safe,sanitary,habitable and tenantable
condition. Trustor shall not cause or permit any violations of any laws,ordinances,regulations,
covenants,conditions,restrictions,or equitable servitudes as they pertain to improvements,
alterations, maintenance or demolition on the Security. Trustor shall not commit or permit waste
on or to the Security. Trustor shall not abandon the Security. Beneficiary shall have no
responsibility over maintenance of the Security. In the event Trustor fails to maintain the
Security in accordance with the standards in this Deed of Trust,the Loan Agreement,or the
Regulatory Agreement,Beneficiary,after at least thirty(30)calendar days prior notice to
Trustor,may, but shall be under no obligation to,make such repairs or replacements as are
necessary and provide for payment thereof. Any amount so advanced by Beneficiary,together
with interest thereon from the date of such advance at the same rate of indebtedness as specified
in the Note(unless payment of such an interest rate would be contrary to applicable law,in
which event such sums shall bear interest at the highest rate then allowed by applicable law),
shall become an additional obligation of Trustor to Beneficiary and shall be secured by this Deed
of Trust.
12. INSPECTION OF THE SECURITY. Trustor shall permit Beneficiary to enter
and inspect the Security for compliance with these obligations upon 24 hours advance written
notice of such visit by Beneficiary to Trustor or Trustor's management agent.
13. LIENS, ENCUMBRANCES,AND CHARGES. Trustor shall discharge any lien
or encumbrance not approved by Trustor in writing that may attain priority over this Deed of
Trust,as provided for in the Loan Agreement.
14. DEFENSE AND NOTICE OF CLAIMS AND ACTIONS. Trustor shall appear
in and defend,at its own expense,any action or proceeding purporting to affect the Security
and/or the rights of Beneficiary. Trustor shall give Beneficiary and Trustee prompt notice in
writing of the assertion of any claim,of the filing of any action or proceeding and of any
condemnation offer or action with respect to the Security.
15. SUITS TO PROTECT THE SECURITY. Beneficiary shall have power to
institute and maintain such suits and proceedings as it may deem expedient(a)to prevent any
impairment of the Security or the rights of Beneficiary, (b)to preserve or protect its interest in
the Security and in the Rents,and(c)to restrain the enforcement of or compliance with any
governmental legislation,regulation,or order,if the enforcement of or compliance with such
legislation,regulation,or order would impair the Security or be prejudicial to the interest of
Beneficiary.
Attachment No.3A
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16. DAMAGE TO SECURITY. Trustor shall give Beneficiary and Trustee prompt
notice in writing of any damage to the Security. If any building or improvements erected on the
Property is damaged or destroyed by an insurable cause,Trustor shall use the insurance proceeds
to repair or restore said buildings and improvements consistent with the original plans and
specifications. Such work or repair shall be commenced within 120 days after the damage or
loss occurs and shall be complete within one year thereafter. All insurance proceeds collected
for such damage or destruction shall be applied to the cost of such repairs or restoration.
17. TITLE. Trustor warrants that Trustor lawfully has legal title to the Security
without any limitation on the right to encumber.
IS. GRANTING OF EASEMENTS. Trustor may not grant easements, licenses,
rights-of-way or other rights or privileges in the nature of easements with respect to the Security
except those required or desirable for installation and maintenance of public utilities including
water,gas,electricity, sewer,cable television, telephone,or those required by law.
19. TAXES AND LEVIES. Trustor shall pay prior to delinquency,all taxes, fees,
assessments,charges and levies imposed by any public authority or utility company which are or
may become a lien affecting the Security. However,Trustor shall not be required to pay and
discharge any such tax,assessment,charge or levy so long as(a)the legality thereof shall be
promptly and actively contested in good faith and by appropriate proceedings,and(b)Trustor
maintains reserves adequate to pay any contested liabilities. In the event that Trustor fails to pay
any of the foregoing items,Beneficiary may,but shall be under no obligation to,pay the same,
after Beneficiary has notified Trustor of such failure to pay and Trustor fails to fully pay such
items within thirty(30)business days after receipt of such notice. Any amount so advanced by
Beneficiary, together with interest thereon from the date of such advance at the same rate of
indebtedness as specified in the Note(unless payment of such an interest rate would be contrary
to applicable law, in which event such sums shall bear interest at the highest rate then allowed by
applicable law), shall become an additional obligation of Trustor to Beneficiary and shall be
secured by this Deed of Trust.
20. INSURANCE. Trustor shall provide such insurance as required under the Loan
Agreement. In the event Trustor fails to maintain the full insurance coverage required by this
Deed of Trust, Beneficiary,after at least seven business days prior notice to Trustor,may, but
shall be under no obligation to,take out the required policies of insurance and pay the premiums
on such policies. Any amount so advanced by Beneficiary,together with interest thereon from
the date of such advance at the same rate of indebtedness as specified in the Note(unless
payment of such an interest rate would be contrary to applicable law,in which event such sums
shall bear interest at the highest rate then allowed by applicable law), shall become an additional
obligation of Trustor to Beneficiary and shall be secured by this Deed of Trust.
21. CONDEMNATION. All judgments,awards of damages,settlements and
compensation made in connection with or in lieu of taking all or any part of or interest in the
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Security under assertion of the power of eminent domain("Funds")are hereby assigned to and
shall be paid to Beneficiary. Beneficiary is authorized(but not required)to collect and receive
any Funds and is authorized to apply them in whole or in part upon any indebtedness or
obligation secured hereby, in such order and manner as Beneficiary shall determine at its sole
option. All or any part of the amounts so collected and recovered by Beneficiary may be
released to Trustor upon such conditions as Beneficiary may impose for its disposition.
Application of all or any part of the Funds collected and received by Beneficiary or the release
thereof shall not cure or waive any default under this Deed of Trust.
22. ACCELERATION ON TRANSFER OF SECURITY;ASSUMPTION. In the
event that Trustor,without the prior written consent of the Beneficiary,sells,agrees to sell,
transfers, or conveys its interest in the Security or any part thereof or interest therein, Beneficiary
may at its option declare all sums secured by this Deed of Trust to be immediately due and
payable. This option shall not apply in case of
A. the grant of a tenant or leasehold to qualifying households who will occupy
Project units as provided for under the Loan Documents and the Regulatory
Agreement; or
B. sale or transfer of fixtures or personal property pursuant to the grant provisions in
this Deed of Trust; or
Consent to one sale or transfer shall not be deemed to be a waiver of the right to require
such consent to future or successive transactions.
23. RECONVEYANCE BY TRUSTEE. This trust is intended to continue for the
entire term of the Loan. Upon written request of Beneficiary stating that all sums secured by this
Deed of Trust have been paid or forgiven and upon surrender of this Deed of Trust to Trustee for
cancellation and retention,and upon payment by Trustor of Trustee's reasonable fees,Trustee
shall reconvey the Security to Trustor,or to the person or persons legally entitled thereto.
DEFAULT AND REMEDIES
24. EVENTS OF DEFAULT. Any of the events listed in the Loan Agreement as an
Event of Default shall also constitute an Event of Default under this Deed of Trust,including,but
not limited to, (1)Trustor's failure to pay when due any sums payable under this Deed of Trust,
the Note,or the Loan Agreement;or(2)Trustoes failure to observe or to perform any of its
covenants,agreements or obligations under this Deed of Trust,the Note,the Loan Agreement,
and the Regulatory Agreement.
25. ACCELERATION OF MATURITY. Upon the happening of an Event of Default
which has not been cured within the times and in the manner provided in the Loan Agreement,
Attachment No.3A
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RiS 91-900
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Beneficiary may declare all sums advanced to Trustor under the Note and this Deed of Trust
immediately due and payable.
26. BENEFICIARY'S REMEDIES. Upon the happening of an Event of Default
which has not been cured within the times and in the manner provided in the Loan Agreement,
Beneficiary may, in addition to other rights and remedies permitted by the Loan Agreement,the
Note,or applicable law, proceed with any or all of the following remedies:
A. Enforce the assignment of rents and right to possession as provided for in this
Deed of Trust,and/or seek appointment of a receiver to take over possession of
the Security and collect Rents;
B. Commence an action to foreclose this Deed of Trust pursuant to California Code
of Civil Procedure Sections 725a,et seq.,and/or seek appointment of receiver
from a court of competent jurisdiction with the authority to protect Beneficiary's
interests in the Security, including the authority to complete construction of
improvements;
C. Deliver to Trustee a written declaration of Default and demand for sale,and a
written Notice of Default and election to cause Trustoes interest in the Security to
be sold,which notice Trustee or Beneficiary shall duly file for record in the
Official Records of Orange County,and exercise its power of sale as provided for
below-,or
D. Pursue any other rights and remedies allow at law or in equity.
27. FORECLOSURE BY POWER OF SALE. Should Beneficiary elect to foreclose
by exercise of the power of sale contained in this Deed of Trust,Beneficiary shall notify Trustee
and shall deposit with Trustee this Deed of Trust(the deposit of which shall be deemed to
constitute evidence that the unpaid sums disbursed under the Note are immediately due and
payable), and such receipts and evidence of any expenditures made that are additionally secured
hereby as Trustee may require.
Upon receipt of such notice from Beneficiary,Trustee shall cause to be recorded,
published and delivered to Trustor such Notice of Default and Election to Sell as then required
by law and by this Deed of Trust. Trustee shall,without demand on Trustor,after lapse of such
time as may then be required by law and after recordation of such Notice of Default and after
Notice of Sale having been given as required by law,sell the Security,at the time and place of
sale fixed by it in said Notice of Sale,whether as a whole or in separate lots or parcels or items as
Trustee shall deem expedient and in such order as it may determine unless specified otherwise by
Trustor,at public auction to the highest bidder for cash in lawful money of the United States
payable at the time of sale. Trustee shall deliver to the purchaser its deed or deeds conveying the
property so sold,but without any covenant or warranty,express or implied. The recitals in such
Attachment No.3A
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RLS 97-OGO
10124197
deed of any matters of facts shall be conclusive proof of the truthfulness thereof. Any person,
including, without limitation, Trustor, Trustee,or Deneficiary,may purchase at the sale.
Trustee may postpone sale of all or any portion of the property by public announcement
at such time and place of sale,and from time to time thereafter,and without further notice make
such sale at the time fixed by the last postponement,or may, in its discretion,give a new Notice
of Sale.
After deducting all reasonable costs,fees and expenses of Trustee,including costs of
evidence of title in connection with such sale,Trustee shall apply the proceeds of sale as follows:
(i)first,to the payment of all sums then secured by this Deed of Trust,in such order and amounts
as Beneficiary in its sole discretion determines,and (ii)the remainder, if any,to the person or
persons legally entitled thereto.
28. REMEDIES CUMULATIVE. No right,power or remedy conferred upon or
reserved to Beneficiary by this Deed of Trust is intended to be exclusive of any other rights,
powers or remedies, but each such right,power and remedy shall be cumulative and concurrent
and shall be in addition to any other right,power and remedy given hereunder or now or
hereafter existing at law or in equity.
GENERAL PROVISIONS
29. GOVERNING LAW. This Deed of Trust shall be interpreted under and governed
by the laws of the State of California,except for those provisions relating to choice of law and
those provisions preempted by federal law.
30. ATTORNEYS' FEES AND COSTS. In the event of any Event of Default,or any
legal or administrative action is commenced to interpret or to enforce the terms of this Deed of
Trust,each party shall bear its own attorneys' fees and costs. The prevailing party in such action
shall not be entitled to recover any attorneys' fees and costs in such action.
31. CONSENTS AND APPROVALS. Any consent or approval of the City required
under this Regulatory Agreement shall not be unreasonably withheld. Any approval must be in
writing and executed by an authorized representative of the City.
32. TIME. Time is of the essence in this Deed of Trust.
33. NOTICES,DEMANDS AND COMMUNICATIONS. Formal notices,demands
and communications between Trustor and Beneficiary shall be sufficiently given and shall not be
deemed given unless dispatched by registered or certified mail,postage prepaid,return receipt
requested,or delivered personally,to the principal offices of Trustor and Beneficiary as follows:
Attachment No.3A
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10124197
BENEFICIARY: Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
Huntington Beach,CA 92648
Attention: Executive Director
Copy: Economic Development Department
TRUSTOR: Orange County Community Housing
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
Attention: Executive Director
34. BINDING UPON SUCCESSORS. All provisions of this Deed of Trust shall be
binding upon and inure to the benefit of the heirs,administrators,executors, successors-in-
interest, transferees,and assigns of Trustor,Trustee,and Beneficiary.
35. WAIVER. Any waiver by Beneficiary of any obligation of Trustor in this Deed
of Trust must be in writing. No waiver will be implied from any delay or failure by Beneficiary
to take action on any breach or default of Trustor or to pursue any remedy allowed under the
Deed of Trust or applicable law. Any extension of time granted to Trustor to perform any
obligation under this Deed of Trust shall not operate as a waiver or release Trustor from any of
its obligations under this Deed of Trust. Consent by Beneficiary to any act or omission by
Trustor shall not be construed to be a consent to any other or subsequent act or omission or to
waive the requirement for Beneficiary's written consent to future waivers.
36. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications
to this Deed of Trust must be in writing,and shall be made only if mutually agreed upon by
Beneficiary and Trustor.
37. LOAN AGREEMENT CONTROLS. If there is any contradiction between this
instrument and the Loan Agreement,the terms of the Loan Agreement shall control.
38. DEFINITIONS. Capitalized terms not otherwise defined in this Deed of Trust
shall have the same meaning as defined terms in the Loan Agreement.
39. PROOFS OF CLAIM. In the case of any receivership, insolvency,bankruptcy,
reorganization,arrangement,adjustment,recomposition or other proceedings affecting Trustor,
its creditors or its property,Trustee,to the extent permitted by law, shall be entitled to file such
proofs of claim and other documents as may be necessary or advisable in order to have the claims
of Beneficiary allowed in such proceedings and for any additional amount which may become
due and payable by Trustor hereunder after such date.
Attachment No.3A
Page 10 of 12
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RLS 97-800
10/24/97
• 4
40. SEVERABILITY. Every provision of this Deed of Trust is intended to be
severable. If any tern or provision of this Deed of Trust is declared to be illegal, invalid,or
unenforceable by a court of competent jurisdiction,the legality,validity,and enforceability of the
remaining provisions shall not be affected. If the lien of this Deed of Trust is invalid or
unenforceable as to any part of the debt,or if the lien is invalid or unenforceable as to any part of
the Security,the unsecured or partially secured portion of the debt and all payments made on the
debt(whether voluntary or under foreclosure or other enforcement action or procedure) shall be
considered to have been first paid or applied to the payment of that portion of the debt which is
not secured or partially secured by the lien of this Deed of Trust.
41. SUBSTITUTION OF TRUSTEES. Beneficiary may from time to time appoint
another trustee to act in the place and stead of Trustee or any successor. Upon such appointment
and without conveyance,the successor trustee shall be vested with all title,powers,and duties
conferred upon Trustee. Each such appointment and substitution shall be made by a written
instrument executed by Beneficiary containing reference to this Deed of Trust and its place of
record,which when duly recorded in the Orange County Office of the Recorder shall be
conclusive proof of proper appointment of the successor trustee.
Attachment No.3A
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. i
42. ACCEPTANCE BY TRUSTEE. Trustee accepts this Trust when this Deed of Trust,duly
executed and acknowledged,is made public record as provided by law. Except as otherwise
provided by lace, the Trustee is not obligated to notify any party hereto of pending sale under this
Deed of Trust or of any action or proceeding in which Trustor,Beneficiary,or Trustee shall be a
party unless brought by Trustee.
IN WITNESS WHEREOF,Trustor has executed this Deed of Trust as of the day and year
first above written.
TRUSTOR:
Orange County Community Housing
Corporation, a California nonprofit
public benefit corporation
By: 0,
ALLCtj
Its: Qgk,
By:
Its:
THIS DOCUMENT MUST BE NOTARIZED FOR RECORDING
BORROWER'S SIGNATURE MUST BE ACKNOWLEDGED
Attachment No.3A
Page 12 of 12
41s.0A-97Agrcc:Ko1cdo 1997:Attach3A
RL5 97-900
10/24/97
� A I
STATE OF CALIFORNIA )ss.
COUNTY OF ORANGE }
On NOVEMBER 20, 1997, before me, KATHERINE M. SOTO, personally appeared
ALLEN P. BALDWIN personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) whose names) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in hislherltheir authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and offi ' seal.
Signature
KAMRINEn M
Haan�cac-Cawanla
03
(ibis area rot official nourial sal)
/1UG�4.isDE'��
EXHIBIT "A" TO DEED OF TRUST
LEGAL DESCRIPTION
r
ALL THAT CERTAIN LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF
HUNTINGTON BEACH, DESCRIBED AS FOLLOWS_
LOT 16 OF TRACT NO. 4301, AS PER MAP RECORDED IN BOOK 177 PAGES 11 AND 12 OF
MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT ALL OIL, GAS, PETROLEUM, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN,
UNDER AND/OR THAT MAY BE PRODUCED BELOW A DEPTH OF 150 FEET FROM THE SURFACE OF
SAID PROPERTY,OR ANY PART THEREOF,AS RESERVED IN THE DEED FROM JOSEPH V. MADDEN
AND WIFE, TO JOSEPH GERALD MABEY AND OTHERS, DATED OCTOBER 13, 1950 AND RECORDED
NOVEMBER 13, 1950 IN BOOK 2100 PAGE 411,OFFICIAL RECORDS, RECORDS OF ORANGE COUNTY,
CALIFORNIA,WHICH DEED FURTHER PROVIDES,THATSUCH RESERVATIONS SHALL NOT ENTITLE
THE SAID GRANTORS, THEIR HEIRS AND ASSIGNS, TO ANY USE OF, OR RIGHTS IN OR TO ANY
PORTION OF THE SURFACE OF SAID PROPERTY TO A DEPTH OF 150 FEET BELOW THE SURFACE
THEREOF.
CITY OF HLJfVT1IUGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the Deed dated
November 17, 1997 from ORANGE COUNTY COMMUNITY HOUSING
CORPORATION, to the REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH, a public body corporate and politic, is hereby accepted by
the undersigned officer or agent on behalf of the Agency pursuant to the authority
conferred by Resolution No. 76 of the Agency adopted June 20, 1983 and the grantee
consents to the recordation thereof by its duly authorized officer.
Dated: December 19, 1997
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CLERK
By:
eputy Clerk
ITelephons:714.536.52271
5
4
NO FEE DOCUMENT A�,�QECSR
� 3ot�
Recording requested by and
When recorded, mail to:
Document N°�:. lance
Ca•
City of Huntington Beach First America
2000 Main Street
Huntington Beach,CA 92648
Attn: City Clerk
REGULATORY AGREEMENT BY AND BETWEEN TIIE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH AND ORANGE COUNTY
COitIAtUNITY HOUSING CORPORATION CONCERNING THE ACQUISITION AND
REHABILITATION OF AFFORDABLE HOUSING AT 17351 KOLEDO LANE WITH
FUNDS OBTAINED FROM TIIE HOME IN%TSTMENT PARTNERSHIP PROGRAM
This Regulatory Agreement is made this I*7tL day of ,�,r.Q�a.� , 1997,by
and between the Redevelopment Agency of the City of Huntington Beach,a public body (the
"Agency'),and Orange County Community Housing Corporation,a California public benefit
corporation("OCCHC").
RECITALS
WHEREAS, OCCHC intends to purchase a four-unit building on Koledo Lane in the
City of Huntington Beach;and
OCCFIC desires that all of the Project's units be rented at prices affordable to low income
households;and
The Redevelopment Agency has received a commitment of funds from the City of
Huntington Beach. The City has received Home Investment Partnership Program funds
Attachment No.4A
~`Page I a:'13 This docwent is solely for the
- official business of the City
Tax-Exempt-Government -Agency of Huntins•,on roach, as conten-
41s:G:4-97Agrec:koicdo97:Attach4A CITY OF HUNTINGTON BEA^H plated un�'^r Go^srn!aent Code
RL597-SDO onnie Brockway, cMo Sec. 6103 and should be recorded
10/24/97 J�:
City Clerk free of ebArep.
putt'City Clerk
("HOME Funds") from the United States Department of Housing and Urban Development
("HUD")pursuant to the Cranston-Gonzales National Housing Act of 1990 for the purpose of
expanding the supply of decent,safe,sanitary and affordable housing for very-low and low-
income persons and families;and
OCCHC has received a loan from the Agency of HOME Funds to support the acquisition
and rehabilitation of the Project,and the funds have been made available in order to help achieve
financial feasibility for the Project and maximize the affordability of Project units;and
As further consideration for this funding and to further the interests of the Agency,
Agency and OCCHC have agreed to enter into and record this Regulatory Agreement. The
purpose of this Regulatory Agreement is to regulate and restrict the occupancy,rents,operation,
ownership,and management of the Project. The covenants in this Regulatory Agreement are
intended to run with the land and be binding on OCCHC and its successors,
NOW THEREFORE,IN CONSIDERATION of the mutual agreements,obligations,and
representations,and in further consideration for the aforementioned funding,OCCFIC,and
Agency hereby agree as follows:
ARTICLE 1. DEFINITIONS
The following terms have the meanings and content set forth in this section wherever
used in this Regulatory Agreement or attached exhibits.
1.1 "AREA MEDIAN INCOME" means the median income for the Orange County
Primary Metropolitan Statistical Area (PMSA), with adjustments for household size, as
determined from time to time by the U.S. Department of Housing and Urban Development
(HUD) pursuant to the United States Housing Act of 1937 as amended,or such other method of
median income calculation applicable to the Agency that HUD may hereafter adopt in connection
with said Act.
1.2 "AGENCY" means the Redevelopment Agency of the City of Huntington Beach,
a public body,and its officers,officials,directors,employees,agents and authorized
representatives.
1.3 "DEED OF TRUST" means the deed of trust,placed on the Property as security
for the Loan ninth OCCHC as trustor and the Agency as beneficiary,as well as any amendments
to,modifications of,and restatements of said deed of trust.
Attachment No.4A
Page 2 of I3
41s:G:4-97Agrce:Kolcdo97:Attach4A
RIS 97-800
10/24/97
1.4 "HOME" means home Investment Partnership Program created by the National
Affordable Housing Act of 1990.
1.5 "LOAN" means any loan of funds provided by the Agency to OCCHC for the
Project.
1.6 "LOAN DOCUMENTS"means collectively the Deed of Trust,Note,and this
Regulatory Agreement as they may be amended,modified,or restated from time to time,along
with all exhibits and attachments to these documents.
1.7 "NOTE" means the promissory note executed by OCCHC in favor of the Agency
evidencing the Loan,which is secured by the deed of trust,as well as any amendments to,
modifications of,or restatements of said promissory note.
1.8 "PROJECT" means the four(4)units of rental housing on the Property to be owned
and operated by OCCHC for Very Low-Income Households.
1.9 "PROPERTY" means the real property described in the attached Exhibit A,which is
hereby incorporated into this Regulatory Agreement by this reference.
1.10 "VERY LONV-INCOME HOUSEHOLD" means a household whose annual
income does not exceed fifty percent(50%)of the median income for the Orange County PMSA
as determined by HUD with adjustments for smaller and larger households.
2.1 "UNIT" means a housing unit in the Project.
ARTICLE 2. OCCHC'S OBLIGATIONS
2.1 COMPLIANCE WITH LOAN DOCUMENTS. OCCHC's actions with respect to
the Property and the use of Loan funds shall at all times be in full conformity with all of the
requirements of the Loan Documents.
2.2 TERM OF AGREEMENT. This Regulatory Agreement shall commence upon
execution and shall remain in full force and effect for thirty(30)years.
2.3 COMPLIANCE 1VITH PROGRAM REQUIREMENTS. OCCHC shall comply
with all requirements imposed on projects assisted under the HOME Program as contained in 42
U.S.C. Sections 12701,et seq.,24 C.F.R. Part 92,and other implementing rules and regulations.
Attachment No.4
Page 3 of 13
4/s:G:4-97Agrcc:Kolcdo97:Attach4
RLS 97-800
10/24197
� 4
ARTICLE 3. PROJECT OCCUPANCY AND RENTS
3.1 OCCUPANCY OF PROJECT. OCCHC shall limit for the full term of this
Regulatory Agreement the rental of all four(4)Units to Very Low-Income Households at no
more than the maximum rental charges set forth in this Regulatory Agreement. The Units
restricted by this Regulatory Agreement shall consist of four(4)two-bedroom units. The income
levels and other qualifications of Very Low-Income household applicants for Units shall be
certified prior to initial occupancy and recertified yearly by OCCHC. In the event that
recertification of a Very Low-Income Household's income indicates that the income exceeds the
maximum income designated for a Very Low-Income Household,OCCHC shall adjust the
household's rent to equal the lesser of(a)thirty percent(301/6)of the household's gross income or
(b) the fair market rental of the unit. In addition,OCCHC shall rent the next available Project
unit to a Very Low-Income household.
3.2 MAXIMUM RENTAL CHARGES. The total charges for rent,utilities,and
related services to Very Low Income Household shall not exceed thirty percent(30%)of fifty
percent(50%)of Area Median Income adjusted for family size. Fifty percent(50%)of Area
Median Income for a three(3)person family shall be assumed for a two(2)bedroom unit and
fifty percent(50%)of Area Median Income for a five(5)person family for a three-bedroom unit.
Initial rents for each Unit shall be approved by the Agency at the time of initial occupancy of the
Project. Annual rent increases shall be based on the change in permissible rents published
annually by HUD. OCCHC may annually make any rent adjustment pursuant to the terms of this
Regulatory Agreement. At least 60 calendar days prior to increasing rents on any Unit restricted
by this Regulatory Agreement,OCCHC shall submit to the Agency for review and approval a
written request for such increase. Households occupying Units restricted by this Regulatory
Agreement shall be given at least 30 days written notice prior to any rent increase.
3.3 CONDOMINIUM CONVERSION. OCCHC shall not convert Project units to
condominium or cooperative ownership or sell condominium or cooperative conversion rights to
the Property during the term of this Regulatory Agreement.
3.4 NONDISCRIMINATION. OCCHC shall not discriminate or segregate in the use,
enjoyment,occupancy,conveyance, lease,sublease,or rental of Project units on the basis of race,
color,ancestry,national origin,religion,sex,sexual preference,age,marital status, family status,
source of income, physical or mental disability,Acquired Immune Deficiency Syndrome(AIDS)
or AIDS-related conditions(ARC),or any other arbitrary basis. OCCHC shall include a
statement in all advertisements,notices and signs for the availability of Project units for rent to
the effect that OCCHC is an Equal Housing Opportunity Provider.
Attachment No.4A
Page 4 of 13
4/s:0:4.97Agrce:Koledo97:Attach4A
RLS 97-800
10/24/97
i t
ARTICLE 4.
4.1 MANAGEMENT RESPONSIBILITIES. OCCIIC is responsible for all
management functions with respect to the Project, including without limitation the selection of
tenants,certification and recertification of household size and income,evictions,collection of
rents and deposits, maintenance, landscaping,routine and extraordinary repairs,replacement of
capital items,and security. The Agency shall have no responsibility over management of the
Project.
The Site shall be occupied,used and maintained as follows:
A. JJ=. Each dwelling unit shall be used only for private apartment dwelling
purposes, with appurtenant facilities,and for no other purposes.
B. S.ipm. All signs on the property shall conform with all ordinances and other
regulations of the Agency.
C. _Vaste. OCCHC and the occupants shall not permit or suffer anything to be done
or kept upon said premises which will increase the rate of insurance on any building,or on the
contents thereof,or impair the structural integrity thereof or which will obstruct or interfere with
the rights of other occupants,or annoy them by unreasonable noises or otherwise,nor shall any
occupant commit or permit any nuisance on the premises or fail to keep to premises free of
rubbish, clippings and trash or commit or suffer any illegal act to be committed thereon.
OCCHC shall comply with all of the requirements of all governmental authorities with respect to
the premises. If by reason of the occupancy or uses of the premises the rate of insurance on the
Site shall be increased, OCCIIC shall become personally liable for the additional insurance
premiums.
D. Improvements. There shall be no structural alteration,construction or removal
of any building, fence or other structure on the Site(other than repairs or rebuilding permitted
herein)without the approval of the Agency or the Agency and in accordance with the Agency
Code.
E. PaXhing. OCC1;IC shall not permit the parking,storing or keeping of any vehicle
except wholly within the parking areas designated therefor. OCCHC shall not permit the
parking, storing or keeping of any large commercial type vehicle(dump truck,cement mixer
truck,oil or gas truck,etc.),or any recreational vehicle(camper unit,camper shell detached from
a private passenger vehicle,motor home,trailer,boat trailer,mobile home or other similar
vehicle,except when parked within an enclosed parking space),boats over twenty(20) feet in
length or any vehicle other than a private passenger vehicle upon any portion of the Site,
Attachment No.4A
Page 5 of 13
4/s:G:4-97Agrcc:Kolcdo97:Attach4A
RCS 97-800
10/24/97
including parking spaces. OCCIIC shall not permit major repairs or major restorations of any
motor vehicles, boat,trailer,aircraft or other vehicle to be conducted upon any portion of the
Site, including parking spaces,except for emergency repairs thereto and then only to the extent
necessary to enable movement thereof to a proper repair facility. No inoperable vehicle shall be
stored or kept anywhere on the Site. OCCHC shall have the right to remove,at the tenant's
expense,any vehicle parked,stored or kept in violation of the provisions of this Declaration. In
addition,all provisions of the Huntington Beach Municipal Code, including amendments thereto,
shall apply.
F. Occu an ncy. Occupancy of each dwelling unit shall be restricted to occupancy
standards set forth in the Huntington Beach Municipal Code or state standards,as are effective or
as may be effective or amended. OCCHC shall not be permitted to lease or rent any dwelling
unit thereon for transient or hotel purposes. Any lease or rental agreement covering an apartment
shall provide that the terms of the lease or rental agreement shall be subject in all respects to the
provisions of this Declaration of Conditions,Covenants and Restrictions and that any failure by
the lessee to comply with the terms of such documents shall be a default under the lease or rental
agreement. All leases and rental agreements shall be in writing. All prospective
tenants/occupants of the Site shall make application through OCCHC.
G. To the extent permitted by law, the City of Huntington Beach and
the Agency shall have the right of entry,at reasonable business hours and upon no less than
twenty-four(24)hours advance notice,onto the Site to inspect for the need for repairs or
maintenance. Entry onto the Site or into any unit for other than emergency repairs may be made
only after such advance notice and request for entry. If request for entry is denied or the Site or
any applicable unit is unoccupied,the City or Agency may apply for an appropriate warrant or
other order from a court of appropriate jurisdiction.
H. Subdivision. No part of the Site shall at any time be owned by a cooperative
housing corporation, nor shall OCCHC take any steps in connection with a conversion to such
ownership or uses. Other than obtaining a final subdivision map on the Site and a final
subdivision public report from the California Department of Real Estate,the Developer shall not
take any steps in connection with a conversion of the Site to a condominium ownership, or with a
conversion of the Site to"timeshare"ownership.
I. Exterior Maintenailce. The exterior areas of the Site shall be kept free of rubbish,
debris and other unsightly or unsanitary materials. Exterior yard areas and parking areas shall be
kept free of deterioration, including: potholes,cracks in asphalt so as to become uneven,
unsightly surface conditions,weeds growing through asphalt. Perimeter fencing, landscaping
and irrigation system shall be routinely inspected and maintained in good condition.
Attachment No. aA
Page 6 of 13
4ls:G:4-97Agrce:Kolcdo97:Attach4A
RLS 97-800
10/24/97
Each occupant of the Site shall have the affirmative obligation to prevent what might be
considered a fire hazard or a condition dangerous to the public health,safety and general welfare;
or constitute an unsightly appearance or otherwise detract from the aesthetic and property values
of neighboring dwelling units and properties. The following minimum performance standards
for the maintenance of buildings,yards,and landscaping shall be adhered to by the Developer:
1. Landscaping on the Site shall be absent of the following:
a. Lawns with grasses in excess of six(6)inches in height.
b. Untrimmed hedges.
C. Trees,shrubbery,lawns and other plant life dying from lack of water or
other necessary maintenance.
d. Trees and shrubbery grown uncontrolled without proper pruning.
e. Vegetation so overgrown as to be likely to harbor rats or vermin.
f. Dead, decayed or diseased trees,weeds and other vegetation.
g. Inoperative irrigation system(s).
2. Yard areas shall be maintained so as to be absent of the following:
a. Broken or discarded furniture,appliances and other household equipment
stored in yard areas for periods exceeding one(1)week.
b. Packing boxes, lumber, trash,dirt and other debris stored in yards for
unreasonable periods in areas visible from public property or neighboring
properties.
C. Unscreened trash cans, bins or containers stored for unreasonable periods
in areas visible from public streets and common areas.
3. No building,wall or fence may be left in an unmaintained condition so that any of
the following exist:
a. Buildings abandoned,boarded up,partially destroyed or left unreasonably
in a state of partial construction.
Attachment No.4A
Page 7 of 13
4/s:G:4-97Agrce:Kotcdo97:Attach4A
RLS 97-800
IM4/97
b. Unpainted buildings or buildings with peeling paint in such a condition as
to:
L Cause dry rot,warping and termite infestation;or
ii. Constitute an unsightly appearance that detracts from the aesthetic
or property values of neighboring properties.
C. Broken windows,constituting hazardous conditions and/or inviting
trespassers and malicious mischief.
d. Damaged garage doors that may become inoperative or unsafe to operate.
e. Graffiti remaining on any portion of the property for a period exceeding 72
hours.
f. Building interiors and exteriors shall be maintained to meet standards of
similar residential property in the Agency of Huntington Beach.
J. Agency and City_RigW gfReyiewand Enforcement. The City of Huntington
Beach("City")and the Agency shall be made parties to this Declaration for the limited purpose
as specified herein as follows:
1. Changes or amendments to this Declaration must be submitted for City
and Agency review and approval.
2. In the event of inaction by the Developer,the City and Agency are hereby
granted expedient power to enforce all provisions of this Declaration including,but not limited
to,the maintenance of the Improvements and all yards,buildings and landscaping areas within
the Site.
3. The City and Agency are hereby granted the express power to enforce all
laws and ordinances of the State of California and/or the Agency on yards,structures,and private
parking areas within the Site. Nothing within this Declaration,however, shall be construed as
imposing an obligation or requiring the City or Agency to enforce any provision thereof.
4. The City and the Agency shall be given prior written notice of any
proposed amendment to this Declaration. Such notice shall be given by mailing a copy of the
precise language of the proposed amendment to the City of Huntington Beach,c/o City Clerk,
Attachment No.4A
Page 8 of 13
41s:0:4-97Agmc:kolcdo97.A nach4A
RLs 97-900
10124/97
together with a letter of transmittal explaining the proposed change in general terms. The City
and the Agency shall have an opportunity to review and comment upon the proposed amendment
for a period of not less than forty-five(45)days prior to the effective date of any such proposed
amendment. If the City or Agency fail to respond within forty-five(45)days,the proposed
change(s) and amendment(s)shall be deemed approved,unless that time period is extended by
mutual agreement of all parties.
K. Cityof Huntington Beach right of Entry for Co&,Enforcement, Repair and
Tdffic ReguladQn.
1. Right ofEntry. To the extent permitted by law, OCCHC hereby
acknowledges and intends and thus grants to the City or Agency,through the City or Agency's
duly authorized agents or employees, the right to enter upon the Site for the following purposes:
a. Inspection, maintenance and repair of the Site.
b. Enforcement of local traffic and/or parking regulations.
2. Reimbursement of Agency Expenditures. All costs and expenses
incurred by the City and Agency arising out of its inspection,maintenance and repair of
the Site,as provided hereinabove C City Maintenance Costs), shall be charged as an
expense of the Developer and shall be paid within ten(10)days of receipt of an invoice
for same.
4.2 INSPECTION AND RECORDS. OCCHC shall maintain records which clearly
document OCCHC's performance of its obligations to operate the Property under the terms of
this Regulatory Agreement. OCCHC shall submit any records to the City or Agency within ten
(10)business days of the City's or Agency's request. OCCHC shall permit the Agency to enter
and inspect the Project for compliance with obligations under this Regulatory Agreement upon
24 hours advance notice of such visit by the Agency to OCCHC and to tenants of any inspected
Project units.
4.3 FEES,TAXES,AND OTHER LEVIES. OCCHC shall be responsible for the
payment of all fees,assessments,taxes,charges and levies imposed by any public authority or
utility company with respect to the Property,and shall pay such charges prior to delinquency.
However,neither Borrower nor the Partnership shall be required to pay and discharge any such
charge so long as(a)the legality thereof is being contested diligently and in good faith and by
appropriate proceedings,and (b) if requested by Lender,Borrower or the Partnership deposits
with Lender any funds or other forms of assurance Lender in good faith from time to time
Attachment No.4A
Page 9 of 13
4/s:G:4-97Agrce:Kolcdo97:Attach4A
RLS 97-900
10/24/97
determines appropriate to protect Lender from the consequences of the contest being
unsuccessful.
4.4 INSURANCE. OCCHC shall maintain insurance in full force and effect during
the term of this Agreement in an amount at least equal to the replacement cost of the Project.
4.5 COMPLIANCE WITH HOME PROGRAM REQUIREMENTS. Borrower shall
comply with all requirements imposed on projects assisted under the HOME program including
24 C.F.R. Part 92,and other implementing rules and regulations.
ARTICLE 5. GENERAL PROVISIONS
5.1 SUBORDINATION. This Regulatory Agreement shall be subordinated in
priority only to the liens created by the deeds of trust securing the construction and permanent
loans for the Project,and other liens and encumbrances otherwise approved in writing by the
Agency in its sole and absolute discretion.
5.2 DEFAULT AND REMEDIES. In the event of any breach of any agreement or
obligation under this Regulatory Agreement by OCCFIC,the Agency shall give written notice to
OCCHC of such breach. OCCHC shall have an opportunity to cure such breach within thirty
(30)days of its receipt of such written notice or such longer period of time if OCCHC is
diligently undertaking to cure such breach. if OCCHC fails to perform a timely cure of the
specified breach,the Agency may proceed with any or all of the following remedies upon
OCCHC's failure to cure:
A. Bring an action in equitable relief seeking the specific performance by
OCCHC of the terms and conditions of this Regulatory Agreement,and/or
enjoining,abating,or preventing any violation of said terms and
conditions,and/or seeking declaratory relief;
B. After notice provided for herein,make such repairs or replacements to the
Property and Project as are necessary and provide for payment thereof;or
C. Pursue any other remedy allowed at law or in equity.
5.3 NON-LIABILITY OF OFFICIALS,EMPLOYEES AND AGENTS. The City
and Agency shall not be personally liable to 0CCHC for any obligation created under the terms
of this Regulatory Agreement except in the case of fraud or willful misconduct by such person.
Attachment No. 4A
Page 10 of 13
4/s:0:4-97Agrct:Kolcdo97:Attach4A
RI.S 97-900
10124197
t
5.4 GOVERNING LAW. This Regulatory Agreement shall be interpreted under and
be governed by the laws of the State of California,except for those provisions relating to choice
of law and those provisions preempted by federal law.
5.5 REGULATORY AGREEMENT CONTROLS. In the event that any provisions
of this Regulatory Agreement and any Loan Document conflict,the terns of the Regulatory
Agreement shall control.
5.6 ATTORNEYS' FEES AND COSTS. In the event that any legal or administrative
action is commenced to interpret or to enforce the terms of this Regulatory Agreement,each
party shall bear its own attorneys' fees and costs. The prevailing party in any such action shall
not be entitled to recover any attorneys'fees and costs incurred in such action.
5.7 TIME. Time is of the essence in this Regulatory Agreement.
5.8 CONSENTS AND APPROVALS. Any consent or approval of the City and
Agency required under this Regulatory Agreement shall not be unreasonably withheld. Any
approval must be in writing and executed by an authorized representative of such party.
5.9 NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices,demands
and communications between OCCHC and the City and Agency shall be sufficiently given and
shall not be deemed given unless dispatched by registered or certified mail,postage prepaid,
return receipt requested,or delivered personally,to the principal offices of OCCHC and the
Agency as follows:
Agency: Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attention: Office of the Executive Director
OCCHC: Orange County Community Housing Corporation
1833 E. 17th Street, Suite 207
Santa Ana,CA 92701
Attention: Executive Director
's
5.10 BINDING UPON SUCCESSORS. All provisions of this Regulatory Agreement
shall be binding upon and inure to the benefit of the heirs,administrators, executors,successors-
in-interest,transferee,and assigns of OCCHC,the Partnership and the Agency,and shall run
with the land for the full term of this Regulatory Agreement,regardless of any assignment,
Attachment No. 4A
Page 11 of 13
41s:G:4-97Agrce:koledo97:Anach4A
RIS 97-800
1 orz4/97
payment,prepayment,expiration,extinguishment of any Loan or Note,any reconveyance of any
Deed of Trust,or any conveyance or transfer of the Property.
5.11 RELATIONSHIP OF PARTIES. The relationship of OCCHC,and the Agency
for this Project during the term of this Regulatory Agreement shall not be construed as a joint
venture,equity venture,or partnership. Except as the Agency may specify in writing,OCCHC
shall have no authority to act as an agent of the Agency or to bind the City and Agency to any
obligation.
5.12 NVAIVER. Any waiver by the Agency of any obligation in this Regulatory
Agreement must be in writing. No waiver will be implied from any delay or failure by the
Agency to take action on any breach or default of OCCHC to pursue any remedy allowed under
this Regulatory Agreement or applicable law. Any extension of time granted to OCCHC to
perform any obligation under this Regulatory Agreement shall not operate as a waiver or release
from any of its obligations under this Regulatory Agreement. Consent by the Agency to any act
or omission by OCCHC shall not be construed to be a consent to any other or subsequent act or
omission or to waive the requirement for the Agency's written consent to future waivers.
5.13 AMENDMENTS AND MODIFICATIONS. Any amendments or modifications
to this Regulatory Agreement must be in writing,and shall be made only if executed by both
OCCHC and the Agency.
Attachment No. 4A
Page 12 of 13
4/s:G:4-97Agrce:Kolcdo97:Attach4A
RLS 97-800
I0124/97
5.14 SEVERABILITY. Every provision of this Regulatory Agreement is intended to
be severable. If any provision of this Agreement shall be held invalid,illegal,or unenforceable
by a court of competent jurisdiction,the validity, legality,and enforceability of the remaining
provisions shall not in any way be affected or impaired.
IN WITNESS WHEREOF,the parties hereto have executed this Regulatory Agreement
by and through their authorized officers as of the date first above%witten.
OCCHC: AGENCY:
Orange County Community Housing Redevelopment Agency of the City
Corporation,a California Non Profit of Huntington Beach,a California
Public Benefit Corporation public body
By:
alLgV l airman
Its: � ctfTtV� c2EC'��r1
By: ATTEST:
Its: irc�
Agency Secretary ,-V'-1/97
INITIATED AND APPROVED APPROVED AS TO FORM:
e:;? . C-'—Oxln .-A"-
Ei�ecutive Director Agency Attorney
REVIEWED AND APPROVED: 12, i_y 7 'L"1�A�
bw --1.0A'A
►z
Director of Economic Development
C k%kirk
Attachment No.4A
Page 13 of 13
4/s:G:4-97Agrce:l:olcdo97:Auach4A
RlS 97-800
10/24/97
GRANGE COUNTY
COMMUNITY HOUSING CORPORATION
CORPORATE RESOLUTION TO BUY PROPERTY
1,Robert A.Johnson.Secretary,hereby certify that I am the duly elected and qualified Secretary of Orange County Community
Housing Corporation,a Califontia nonprofit,public benefit,corporation duly organized and existing under the laws of the State of California
(hereinafter"OCCHC');that the following is a true copy of certain resolutions duly adopted by the Board of Directors of OCC11C at a meeting
duly called.noticed and held on July 17.1997.at which meeting it quorum was present and acting throughout;that such resolutions have been
duly recorded in the minutes of the Board of Directors of OCCIIC,bylaws and other instruments binding or affecting OCCHC;and that such
resolutions have not been revolted,rescinded or modified,and are now in frill force and effect in the following form:
RESOLVED 77L1T.•OCCHC purchase the property known as 17291 Koledo Lane,fluntington Beach.CA and execute all appropriate
documents therewith'in.luding those documents in accord with respective escrow instructions.
RESOLVED 771AT,-the Executive Director.Allen P.Baldwin,be and be Is hereby authorized,empowered,and directed for and
on behalf of and under the corporate seal of OCCIiC and as its corporate act and deed,from time to time.(1)to borrow from lender such sums
of money as,in the judgement of designee,OCC11C may require on such terms and conditions as shall be required by lender.and to sign and
deliver such promissory notes and other evidences of indebtedness for such money borrowed or advanced as lender shall require,the designee
being also authorized to direct orally or in writing the disposition of the proceeds of any such obligation.and to accept or direct delivery from
escrow of any such proceeds or other property of OCCHC at any time held by Iender,(2)to contract with knder for the issuance by tender
of letters of credit and for other financial accommodations as shall in the discretion of the designee be required for OCC11C repayment to lender.
as lender shall require;(3)to enter into agreements for the leasing and/or purchase of property by OCCHC from lender,for such sums and upon
such terms as may be advisable in the sole judgement of the designee;(4)to grant security interests in,mortgage,encumber.pledge,convey,
grant,hypothecate,deed in trust,assign,sell,transfer,and deliver to lender by such instruments in writing or otherwise as may be required
by lender,any of the property of OCCHC(whether real,personal ormixed),to secure the payment of promissory notes,guarantees,agreements,
and any other evidences or indebtedness and other obligations of OCCHC entered into pursuant to these resolutions,and for all instruments,
promissory notes,guarantees,agreements,and any other evidences of indebtedness and other obligations of OCCHC.and all renewals and/or
extensions thereof,may be in such forms and contain such provisions.covenants,recitals,and agreements as tender may require and the designee
may approve,and the execution thereof by the designee shall be conclusive evidence of such approval;(5)to negotiate,endorse,and sell to.
or to discount with escrow,rotes.acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness payable to.
or otherwise held or owned by OCCHC.upon such terms as may be agreed upon by the designee and lender.and to endorse and deliver to
lender said notes.acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness so negotiated,endorsed.sold.
or discounted.and to guarantee the payrnent of the tame to lender,(6)to renew and/or extend,in whole or in pan,any promissory totes.
guarantees,agreements,other evidences of indebtedness and other obligations of OCCHC which are in these resolutions referred to,and to
execute and deliver to escrow such renewals and/or extensions accordingly;and(7)to perform ail acts and execute and deliver all instruments
in writing which lender may deem necessary to carry out the purpose of these resolutions;
RESOLVED FURT!!ER That a certified copy of these resolutions,certified by the Secretary of OCCHC be delivered to lender,
and that these resolutions shall continue In full force and effect until written notice of their revocation by(together with certified copy of)a
resolution legally adopted by the Board of Directors of OCCIIC shall have been actually received from OCCHC by lender at its office designated
on any certified copy of these resolutions submitted to lender or otherwise designated by lender,and until all indebtedness and obtigations which
may have been incurred as aforesaid shall have been fully paid.satisfied,and discharged,and no such revocation.nor any receipt of any notice
thereof. shall in any manner whatever affect any indebtedness or obligation which(prior to actual receipt of the notice and resolution of
revoc7tion by lender in the manner aforesaid)may have been incurred as aforesaid)may have been incurred as aforesaid;
Ix WrTNESS WHEREOF.I have hereunto set my hand and axed the corporate seal of OCCHC.
this lll dayof 1997.
corporate seal
Imes Davis.Vice Chairman of
Orange County Community Housing Corporation
DESIGNEE: len P.Dal emotive Director
C
1833 East 17th Street, Suite 207, Santa Ana, California 92705-8629 (714) 558-8161
ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
CORPORATE RESOLUTION TO BUY PROPERTY
I,Robert A.Johnson,Secretary,hereby certify that I am the duly elected and qualified Secretary of Orange County Community
Housing Corporation,a California nonprofit,public benefit.corporation duly organized and existing under the laws of the State of California
(hereinafter"OCCIIC');that the following is a true copy of certain resolutions duly adopted by the Board of Directors of oCCiIC at a meeting
duly called,noticed and held on July 17.1997.at which meeting a quorum was present and acting throughout that such resolutions have been
duly recorded in the minutes of the Board of Directors of OCCIIC,bylaws and other instruments binding or affecting OCCHC;and that such
resolutions have not been revoked.rescinded or modified,and are now in full force and effect in the following form:
r
RESOLVED77tAZ*. OCCHC purchase the property known as 17351 Koledo Lane,Huntington Beach,CA and execute all appropriate
documents therewith including those documents In accord with respective escrow instructions.
RESOLVED 77IAZ the Executive Director,Allen P.Baldwin,be and he is hereby authorized,empowered,and directed for and
on behalf of and under the corporate sal of OCCtIC And as its corporate act and deed,from time to time.(1)to borrow from tender such sums
of money as,in the judgement of designee.OCCIIC may require on such terms and conditions as shall be required by lender,and to sign and
deliver such promissory notes and other evidences of indebtedness for such honey borrowed or advanced as lender shall require.the designee
being also authorized to direct orally or In writing the disposition of the proceeds of any such obligation,and to accept or direct delivery from
escrow of any such proceeds or other property of OCCIIC at any time held by lender.(2)to contract with lender for the issuance by lender
of letters of credit and for other financial accommodations as shall in the discretion of the designee be required for OCCHC repayment to lender.
as lender shall require:(3)to enter into agreements for the leasing and/or purchase of property by OCCIIC from lender,for such sums and upon
such terms as may be advisable in the sole judgement of the designee;(4)to grant security interests in,mortgage,encumber,pledge,convey.
grant,hypothecate,deed in trust,assign,sell,transfer,and deliver to tender by such instruments in writing or otherwise as may be required
by lender,any of the property of OCCHC(whether real,personal or mixed),to secure the payment of promissory notes,guarantees,agreements,
and any other evidences or indebtedness and other obligations of OCCHC entered into pursuant to these resolutions,and for all instruments,
promissory notes,guarantees,agreements,and any other evidences of indebtedness and other obligations of 0CC11C.and all renewals and/or
extensions thereof,may be in such forms and contain such provisions,covenants,recitals,and agreements as lender may require and the designee
may approve,and the execution thereof by the designee shall be conclusive evidence of such approval;(5)to negotiate,endorse.and sell to,
or to discount with escrow,notes,acceptances,bills of exchange,receivables and other instruments and evidences of Indebtedness payable to,
or otherwise held or owned by OCCIIC,upon such terms as may be agreed upon by the designee and lender,and to endorse and deliver to
lender said notes,acceptances,bills of exchange,receivables and other instruments and evidences of indebtedness so negotiated,endorsed,sold,
or discounted,and to guarantee the payment of the same to lender,(6)to renew and/or extend,in whole or In part,any promissory notes,
guarantees,agreements,other evidences or Indebtedness and other obligations of OCCHC which art in these resolutions referred to,and to
execute and deliver to escrow such renewals and/or extensions accordingly;and(7)to perform all acts and execute and deliver all instruments
in writing which lender may deem necessary to carry out the purpose of these resolutions;
RESOLVED FVR771ER: That a certified copy of these resolutions.certified by the Secretary of OCCHC be delivered to lender,
and that these resolutions shall continue in full force and effect until written notice of their revocation by(together with certified copy of)a
resolution legally adopted by the Board of Directors of OCCHC shall have been actually received from OCCHC by tender at its office designated
on any certified copy of these resolutions submitted ao Lender or otherwise designated by lender,and until all indebtedness and obligations which
may have been incurred as aforesaid shall have been Polly paid,satisfied,and discharged,and no such tevmdon,nor ache.receipt of any notice
thereof, shall in any manner whatever affect any Indebtedness or obligation which(prior to actual receipt of the notice and resolution of
revocation by lender in the manner aforesaid)any have been Incurred as aforesaid)may have been Incurred as aforesaid;
IN WITNESS WHEREOF,I have bereunto set my hand and affixed the corporate seal of OCCHC.
this day of Riat,_.1997.
corporate seat
s Davis, ice Chairman of
Orange County Community Housing Corporation
DESIGNEE: Allen P.Bal in. ecutive Director
1833 East 171h Street, Spite 207, Santa Ana, California 92705-8629 (714) 558-8161
Exhibit"A" to Regulatory Agreement
Lcg21 Description
17351 Koledo Lane
Lot 11 of Tract No. 4301,in the County of Orange,State of California,as per map
recorded in Book 177,pages 11 and 12 inclusive of miscellaneous maps,in the office of
the County Recorder of said county.
Exhibit"A" to Attachment 4A
Page 1 of 1
4\klAgree:pueens:Attach4A110124/97
RLS 98-758
AMERI
D./
rr� 1
}
STATE OF CALIFORNIA )ss.
COUNTY OF ORANGE }
On NOVEMBER 20, 1997, before me, KATHERINE M. SOTO, personally appeared
ALLEN P. BALDWIN personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
i r S gnatu e
XAMHE
cos�io,in 0 a83
ORANGE COUKTY
�Patio•r.+�«nta
{This area for officiat notarial sca!?
a 11Mlon�
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of1,>!c;u
County of
On Ae 1k,117, 199-7 _ before me, ct c , o�'� +•�+�r� 7� .. �u.� .,
bete Cl Nama ana Too of Ofter(a-q QJana Dos.Notary ae)
personally appeared
NarM(s)of Sgner[s)
[ 1 ersonally known tome— to be the person(4
whose name*isfere subscribed to the within instrument
and acknowledged to me that 44e/sheAh" executed the
�ltiLi"MCE LHENRY same in#49.JberAhe;r authorized capacity(ie#,and that by
Corvh:ss'an 1137474 hWherM"ir signature(e)on the instrument the personfs},
ftolmFLOr_-Cor°'crrlio or the entity upon behalf of which the person($) acted,
0-ange County executed the instrument.
My CarnnL fxo�^es Oct 2.20C 1
WITNESS my hand and official seat.
Srgnarurr of NOV PuDrx:
OPTIONAL
Though the inlonnat,on below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: .
&pV, —17357 X&Ct,Q",
Document Date: 7 Number of Pages:Q
Signer(s) Other Than Named Above: w )AZZ. _
Capacity(ies) Claimed by Signer(s)
Signer's Name:.jC1n41;t._. Signer's Name:
❑ Individual ❑ Individual
❑ Corporate Officer ❑ Corporate Officer
Title(s): Title(s):
❑ Partner—❑ Limited ❑General ❑ Partner—❑ Limited ❑General
❑ Attorney-in-Fact ❑ Attorney-in-Fact
❑ Trustee ❑ Trustee
r❑, Guardian or Conservator . - ❑ Guardian or Conservator
Other: nfJ�+eYsL-w) Top of Ihurno here Clther: lop Of IhurnD here
[1/.
Signer Is Representing: Signer Is Representing:
V
0 IM National Notary Amo;aeon•8236 Reif"Ave..P.O.Box 7184•Canoga Park.CA 91309.7184 Prod.NO.5907 Reorder.Cam Tm-Free 14800-876-SW
• -CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of -
County of
On /997 before me, ri
Datem Tide end e of Orlroer(e 'Jane Doe.NM OuVon
personally appearede
Names)d sgner(s)
X,p6rsonally known tome— to be the persons)
whose name(s)isAere subscribed to the within instrument
and acknowledged to me that helsheA h y executed the
h1AYl3"n(CE I;"Er f same in4isfherftlteir authorized capacity(iee),and that by
Comr"iSCOM 1r 1157474 his.'herA heirsignature(e}on the instrument the person,
ho±ay PLV.c-corfomia
Orange Cow
-r or the entity upon behalf of which the persons acted,
My ComM.E1e>'•eS0VZM executed the instrument.
WITNESS my hand and official seal.
ft"rwe a hoteet5gow
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Docu -*' C46--p.--1?351 1ST-ecJl XaZe_1
ment date: 11.1 17 191 Number of Pages:_13 _
Signer(s) Other Than Named Above:1t39_Q,JAj��,
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
V%'❑ Individual ❑ Individual
❑ Corporate Officer ❑ Corporate Officer
Title(s): Title(s):
❑ Partner—❑ Limited ❑General ❑ Partner--❑ Limited ❑Genera!
❑ Attorney-in-Fact ❑ Attomey-in-Fact
❑ Trustee ❑ Trustee
❑ Guardian or Conservator ❑ Guardian or Conservator r
VOther Ck,&� - Top of inurno here ❑ Other: Top of 1hurno here
Signer Is Representing: Signer Is Representing:
JV
O 1995 Nab"I Wary Association•11236 Renxnet Ave.,P.O.Box 7184.Canoga Park,CA 91309.7184 Prod.No.5907 Reorder.Can To16Free 1.8W876-W27
��� �� � i14t'1St`!Cl1�:S'L �(1�RrcLlHli 111LL h.b•
F1171L'UTUAN19LE i'%u'1jR'tiQ
' .order No. C'�j �' i�J
Escrow No. � a_qqo --I�T s� �m
Lnan No. �$
WHEN RECORDED MAIL TO: no
CITY OF HUNTINGTON BEACH ion 3 a '�
2000 PLAIN STREET G
HUNTINGTON BEACH, CALIFORNIA 92648
ATTN.- DANIEL E. BRUENING DoCurncnt CO-
First 1'10• TIt ,ur�n F
American
i 1
SPACE ABOVE THIS LINE FOR RECOR)EF1 S USE
SUBORDINATIO14 AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTT_nCST IN THE F'nopEnTY
BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME: OTHFR On LATER
SECURITY INSTRUMENT
THIS AGREEMENT, made this 22nd day of December , 19 97 , by
Orange County Community Housing Corporation a California non profit Publiz Benefit Corporation
owner of the land hereinafter described and hereinafter referred to as-Owner."and
City of Huntington Beach, California, a Municipal Corporation.
present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as'Beneficiary-,
WITNESSETH
THAT WHEREAS,Owner Has executed a deed of trust, See Attached
. ,covering
Exhibit "A" hereto
Legal Description Attached Hereto As Exhibit "B".
to secure a note in the sum of S See Exhibit "A" , in favor of Beneficiary,
aria
WHEREAS, Owner has executed, or is aMut to execute,two deed's of trust, both for $190,000.00
(fated November 17, 19�7 in favor of the Redevopment Agency of the City of -
huntington Beach, a plu tic bony , hereinafter referred to as'Lender.*payabe with interest and upon
the terms and cond:dons described therein, which deed of trust is also to be recorded concurrently Herewith; and
VMEREAS, it is a condition precedent to obtaining said loan from Lender that said deed of trust last above mentioned shall
unconditionally be and remain at all times a lien or charge upon the land hereinbefore described,prior and superior to the lien
or charge of the deed of trust first above mentioned; and
I
WHEREAS,Lender is willing to make said loan provided the deEl of trust securing the same is a lien or charge upon the above
described property prior and supenor to the (ten or charge of the deed of trust first above mentioned and provided that
Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first.1Ibove mentioned to the .
lien or charge of said deed of trust in favor of Lender, and
(continued on reverse side) ,24,7 ttrs.�
Pw ,
DEC 22 '97 06:35FM FIRST AMERICAri TITLE P.7/9
WHEREAS,lender is willing to matte said loan provided the deed of trust securing the same is a lien or charge upon the above
described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that
Bdneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the
lien or charge of the deed of trust in favor of Lender; and
WHEREAS, it is to the mutual benefit Of the parties hereto that Lender make such loam to Owner; and Beneficiary Is wilting
that the deed of trust se,-lring the same shall,when recorded,constitute a lien or charge upon said land which is unconditionally
prior and superior to the lien or charge of the deed of trust first above mentioned,
NOW.THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration,
the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan
above referred to, it is hereby declared, understood and agreed as follows:
(1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shalt
unconditionally be and remain at all times a teen or charge On the property therein described,prior and superior to
The lien or charge of the deed of trust first above mentioned.
(2) That Lender would not make Its loan above described without this subordination agreement.
(3) That this agreement snO be the whole and only agreement with regard to the subordination of the lien or charge
of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of lender above referred
to and shall supersede and cancel, but only Insofar as would affect the priority between the deeds of trust
hereinbefore specifically described.any prioragreement as to such subordination including,but not limited to,those
provisions, if any,contained In the deed of trust first above mentioned,which provide for the subordination of the
lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages.
Beneficiary declares, agrees and acknowledges that
(a) He consents to and aaproves (i)all provisions of the note and deed of trust in favor of Lender above referred
to.and (i) all agreements, including but not limited to any loan a escrow agreements, between Owner and
Lender for the disbursement of the proceeds of Lender's loan;
(b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has
Lender represented that it will,see to the application of such proceeds by the person or persons to whom Lender
disburses such proceeds and any application or use of such proceeds for purposes other than those provided
for in such agreement or agreements shall not defeat the subordination herein made in whole or In part;
(c) He intentiona!ly and unconditionally waives,relinquishes and subordinates the lien or charge of the deed of trust
first above mentioned in favor of the lien or charge upon said land of the deed of trust In favor of Lender above
referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and
subordination specific loans and advances are being and will be made and,as part and parcel thereof,specific
monetary and other obligations are being and will be entered into which would not be made or entered into but
for said reliance upon this waiver, relinquishment and subordination; and
(a) An endorsement has been placed upon the note secured b7 the deed of trust first above mentioned that said
deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender
above referred to.
NOTICE. THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED
ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED
FOR OTH URPOSES THAN IMPROVEMENT OF THE LAND.
C�-t.3f 1
R
GRAN E C NTY CO NIT HOUSING!CORPORATIO
Daniel E. Sruerting, Deput ity Clerk ,
i-In It— Ex—.11-41ye Direr or
Beneficiary O r
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
I
IT IS RECOMMENDED THAT, PR10R TO THE EXECUTION OF T141S SUBORDINATION AGRCEMFNT THE
PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
r
EXIITBIT "A"
A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $15,000.00, RECORDED JUNE 29, 1988 AS
INSTRUMENT NO. 88-310666 OF OFFICIAL RECORDS.
DATED: JUNE 4, 1988.
TRUSTOR: RICHARD S. SALTZMAN AND A1. PENNY SALTZMAN, HUSBAND AND WIFE,
AS JOINT TENANTS.
TRUSTEE: CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH, A MUNICIPAL CORP.
NOTE: AN INSTRUMENT SUBSTITUTING THE TRUSTEE UNDER SAID DEED OF TRUST RECORDED
APRIL 30, 1997 AS INSTRUMENT NO. 19970200268 OF OFFICIAL RECORDS.
SUBSTITUTES AS TRUSTEE: EQUITABLE DEED COMPANY,A CALIFORNIA CORPORATION.
A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $15,900.00, RECORDED JULY 14, 1988 AS
INSTRUMENT NO. 88-339411 OF OFFICIAL RECORDS.
DATED: JUNE 4, 1988.
TRUSTOR: RICHARD S. SALTZMAN AND M. PENNY SALTZMAN, HUSBAND AND WIFE,
AS JOINT TENANTS.
TRUSTEE: CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH.
A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF$12,500.00, RECORDED MARCH 16, 1989 AS
INSTRUMENT NO. 89-I37622 OF OFFICIAL RECORDS.
DATED: FEBRUARY 25, 1989.
TRUSTOR: RICHARD S. SALTZMAN AND M. PENNY SALTZMAN,HUSBAND AND WIFE,
AS JOINT TENANTS.
TRUSTEE: CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION.
A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF$12,500.00, RECORDED MARCH 16, 1989 AS
INSTRUMENT NO. 89-137623 OF OFFICIAL RECORDS.
DATED: FEBRUARY 25, 1989.
TRUSTOR: RICHARD S. SALTZMAN AND r1. PENNY SALTZMAN, HUSBAND AND WIFE,
FOR JOINT TENANT.
TRUSTEE: CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY:' THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION.
NOTE: AN INSTRUMENT SUBSTITUTING THE TRUSTEE UNDER SAID DEED OF TRUST RECORDED
APRIL 30, 1997 AS INSTRUMENT NO. 19970200266 OF OFFICIAL RECORDS.
SUBSTITUTES AS TRUSTEE: EQUITABLE DEED COMPANY,A CALIFORNIA CORPORATION.
A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF$25,000.00,RECORDED OCTOBER 10, 1991 AS
INSTRUMENT NO. 91 553547 OF OFFICIAL RECORDS.
DATED: SEPTEMBER 25, 1991.
TRUSTOR: 1-1. PENNY SALTZMAN; AN UNMARRIED WOMAN. I
TRUSTEE: CHICAGO TITLE CONliP NY, A CALIFORNIA CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION.
EXHIBIT "B"
ALL THAT CERTAIN LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF
HUNTINGTON BEACH, DESCRIBED AS FOLLOWS:
LOT 11 OF TRACT NO. 4301, AS SHOWN ON A MAP RECORDED IN BOOK 177, PAGES 11 AND 12 OF
MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA.
EXCEPT ALL OIL, GAS, PETROLEUM, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN,
UNDER AND/OR THAT MAY BE PRODUCED BELOW A DEPTH OF 150 FEET FROM THE SURFACE OF
SAID PROPERTY,OR ANY PART THEREOF,AS RESERVED IN THE DEED FROM JOSEPH M. MADDEN
AND WIFE TO JOSEPH GERALD MAHEY AND OTHERS, DATED OCTOBER 13, 1950 AND RECORDED
NOVEMBER 13, 1950 IN BOOK 2100, PAGE 411 OF OFFICIAL RECORDS, RECORDS OF ORANGE
COUNTY,CALIFORNIA,WHICH DEED FURTHER PROVIDES THAT SUCH RESERVATIONS SHALL NOT
TITLE THE SAID GRANTORS, THEIR HEIRS AND ASSIGNS TO ANY USE OF OR RIGHTS IN OR TO
ANY PORTION OF THE SURFACE OF SAID PROPERTY TO A DEPTH OF 150 FEET BELOW THE
SURFACE THEREOF.
ALSO EXCEPTING THEREFROM ALL UNDERGROUND WATER LYING BENEATH THE REAL
PROPERTY DESCRIBED HEREIN BUT WITHOUT THE RIGHT OF ENTRY TO THE SURFACE OF SAID
LAND,OR THE TOP 500 FEET THEREOF,FOR THE PURPOSE OF PRODUCING WATER, AS CONVEYED
TO THE CITY OF HUNTINGTON BEACH, BY DEED RECORDED APRIL 17, 1963 IN BOOK 6511, PAGE
679 OF OFFICIAL RECORDS.
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Orange
On December 22, 1997 before me, Sheila A. Rogers, Notary Public ,
Date Name and Tale of Oftrcer fe.g..;lane Doe.Wary Pudre7
personally appeared Daniel E. Brueni ng, Deputy City Clerk
r
Names)d S9,"s)
(X personally known to me—OR to be the person(:)
whose nameM is/axcsubscribed to the within instrument
and acknowledged to me that he/sWttiM executed the
same in his/t=Zn(vauthorized capacity(iss),and that by
SFEILAA ROGM his/kxx'ttx:nignature(s)on the instrument the person(o,
_ COrrFrissIo`1 1�2 or the entity upon behalf of which the person(* acted,
(YOtf]nfPublic—Cd><anfa � Y P
oronca cash executed the instrument.
My Comrn.Expkes Jan 7Z=
WITNESS my hand and official seal.
0
srgnawre now Puwc
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: Subordination Agreement - - - -
Document Date: December 22, 1997 Number of Pages: 4
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
❑ Individual ❑ Individual
* Corporate Officer ❑ Corporate Officer
Title(s): Deputy City Clerk Title(s):
❑ Partner--❑ Umited ❑ General ❑ Partner—❑ Limited ❑General
❑ Attomey-in-Fact ❑ Attorney-in-Fact
❑ Trustee ❑ Trustee
❑ Guardian or Conservator - ❑ Guardian or Conservator
❑ Other: Top of lunp here ❑ Other: rToPmh
N '
g Representing: -` Signer Is Representing:
Si ner Is Re resentin = ___.._ : .
0 1 M National Notary Association•WX R&nmet Ave-.P.O.B*K 7184•Canoga Parrs.CA 91309-7184 PrO.No.5907 Reorder.CaA ToFFree 1-500-8764WT
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p
1
STATE OF CALIFORNIA )ss.
COUNTY OF orange
On December 23 , 1997 , before me, _1jaricel Borras
personally appeared Alien P. Baldwin_
personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies),and that by his/her/their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature_ 44K4.,yL
Ee �IOt -c
,o�esator�,tr4awt
o ooR,�
(This area kw c dal rwlarial seal
Agreement
Subordination A
Title of Document s
Date of Document December 22. 1_927 No. of Pages b
Other signatures not acknowledged Daniel E. Blruening
3008(1/94)(General)
First American Title Insurance Company
w
+. a
Attachment No.2
PROMISSORY NOTE SECURED BY DEED OF TRUST
(17291 Koledo Lane)
$ I�D�pp�•on
DATE: w i 7i1`?7
FOR VALUE RECEIVED,Orange County Community Housing Corporation, a
California nonprofit public benefit corporation,whose address is 1833 E. 17th Street, Santa Ana,
California 92701 ("Borrower")hereby promises to pay to the order of the Redevelopment
Agency of the City of Huntington Beach,a public body,whose address is 2000 Main Street,
Huntington Beach,California,92648 ("Lender"),a principal amount equal to q,rcl �.vla+ssa�.r�
($ AOPCt ,or so much thereof as may be advanced by Lender to Borrower(the "Loan")
pursuant to a loan agreement of even date herewith between Borrower and Lender(the "Loan
Agreement"). Borrower also promises to pay to the order of Lender accrued simple interest on
the principal balance at the rate of six percent(6%)per annum.
1. BORROWER'S OBLIGATION. This Note evidences the obligation of Borrower
to Lender for the repayment of funds loaned to Borrower by Lender to finance the expenses
related to the development of the housing project in the City of Huntington Beach described in
the Loan Agreement.
2. SECURITY. This Note is secured by a deed of trust executed by the Borrower in
favor of the Lender dated the same date as this Note,(the "Deed of Trust").
3: REPAYMENT OF NOTE. The principal balance under this Note and all interest
accrued thereon shall be due and payable thirty(30)years after execution of this Note,or in the
event of an Event of Default by Borrower which has not been cured as provided for in the Loan
Documents or Regulating Agreement. The Lender may choose,in its sole discretion,whether or
not to renegotiate this note in the thirtieth(30th)year to extend the affordability period and the
term of this note.
There may be periodic payments under this Note. Commencing on the third (3rd)
anniversary(except that the Department Director may extend the period by two(2)years
administratively)of the Close of Escrow and continuing until the thirtieth(30th)anniversary of
the Close of Escrow,the Borrower shall make minimum annual payments(the "Annual
Payment")in the amount of One Thousand Two Hundred Dollars($1,200.00). Each Annual
Payment shall be due annually on each anniversary of the Close of Escrow beginning on the third
(3rd)anniversary of the Close of Escrow and continuing and including the thirtieth(30th)
anniversary of the Close of Escrow;provided,however,that remaining outstanding principal of
the Loan shall be repaid on the thirtieth (30th)anniversary of the Close of Escrow. If the balance
Attachment No.2
Page I of 4
4/s:0:4-97Agme:Kolcdol997:Attach2 TeX_ t g
RLS97_800 � p •Government Agency this document is solely for the
I0124197 CITY OF HUNTINGTOPl BEACH official business of tho City
nnie Brockway, CMC of Hu.tinston 139E;h, au eontem—
'•Cty clerk plated under Go cr=ent Codo
13Y. Sec. 6103 and Should be recorded
Putt City Clerk free of charF++.
Residual Receipts account is insufficient to fully fund an Annual Payment,Borrower agrees to
make-up any shortfall that may exist in the account so that the Annual Payment can be made.
Borrower may request that the Lender reduce, suspend or forgive an Annual Payment,and the
Borrower may present evidence to the Lender of its inability to make an Annual Payment;
however, Lender reserves the exclusive right in its sole discretion to reduce,suspend or forgive
an Annual Payment.
All principal and interest on the Loan shall be due in full upon the earliest to
occur of:
(1) the occurrence of default under this Note, the HOME Loan Agreement,
the Deed of Trust,or the Agreement Containing Covenants,which event
of default is not cured within the applicable cure period; or
(2) the thirtieth(30th)anniversary of Close of Escrow.
4. PLACE AND MANNER OF PAYMENT. All amounts due and payable under
this Note are payable at the office of Lender as set forth above,or at such other place as Lender
may designate to Borrower in writing from time to time, in any coin or currency of the United
States which on the respective dates of payment thereof shall be legal tender for the payment of
public and private debts.
5. WAIVERS. Presentment,notice of dishonor,and protest are waived by all
makers, sureties,guarantors,and endorsers of this Note.
6. DEFAULT AND ACCELERATION. All covenants,conditions and agreements
contained in the Deed of Trust,Regulatory Agreement and the Loan Agreement are hereby
made a part of this Note. Borrower agrees that the unpaid balance of the then principal amount
of this Note,together with all accrued interest thereon and charges owing, shall,at the option of
Lender,become immediately due and payable upon any Event of Default as defined in the Loan
Agreement which has not been cured pursuant to that agreement, including without limitation the
failure of Borrower to make any payment when due. Upon any Event of Default,Lender may
exercise any other right or remedy permitted under the Loan Documents.
7. NONRECOURSE. This Loan is a nonrecourse obligation of Borrower. The sole
recourse of Lender for repayment of the principal and interest under this Note shall be the
exercise of Lender's rights against the Property.
8. CONSENTS AND APPROVALS. Any consent or approval of Lender required
under this Note shall not be unreasonably withheld.
Attachment No. 2
Page 2 of 4
4/s:0:4-97Agree:Koiedo I997:Attach2
RLS 97-800
10124N7
9. NOTICES. Except as may be otherwise specifically provided herein, any
approval, notice,direction,consent request or other action by Lender shall be in writing and may
be communicated to Borrower at the principal office of Borrower set forth above,or at such other
place or places as Borrower shall designate in writing, from time to time, for the receipt of
communications from Lender.
10. BINDING UPON SUCCESSORS. All provisions of this Note shall be binding
upon and inure to the benefit of the heirs,administrators,executors, successors-in-interest,
transferees,and assigns of Borrower and Lender;provided,however,that this section does not
waive the prohibition in the Loan Agreement on assignment of the Loan by Borrower without
Lender's consent.
11. ASSIGNMENT AND ASSUMPTION. Borrower shall not assign any of its
interests under this Note to any other party,except as specifically permitted under the terms of
the Loan Documents,without the prior wTitten consent of Lender. Any unauthorized assignment
shall be void.
12. DEFINITIONS. Capitalized terms not defined in this Note shall have the same
meaning as defined terms in the Loan Agreement.
13. GOVERNING LAW. This Note shall be interpreted under and governed by the
laws of the State of California,except for those provisions relating to choice of law and those
provisions preempted by federal law.
14. LOAN AGREEMENT CONTROLS. In the event that any provisions of this Note
and the Loan Agreement conflict,the terms of the Loan Agreement shall control.
15. SEVERABILITY. Every provision of this Note is intended to be severable. If any
provision of this Note shall be held invalid,illegal,or unenforceable by a court of competent
jurisdiction,the validity, legality,and enforceability of the remaining provisions shall not in any
way be affected or impaired.
16. ATTORNEYS'FEES AND COSTS. In the event of any legal action is
commenced to interpret or to enforce the terms of this Note,each party shall bear its own costs
and attorneys' fees. The prevailing party in any such action shall not be entitled to recover any
attorneys' fees and costs incurred in such action.
17. WAIVER. Any waiver by Lender of any obligation in this Note must be in
writing. No waiver shall be implied from any failure of Borrower to take,or any delay or failure
by Lender to take action on any breach or default by Borrower or to pursue any remedy allowed
under this Note or applicable law. Any extension of time granted to Borrower to perform any
obligation under this Note shall not operate as a waiver or release from any of its obligations
Attachment No. 2
Page 3 of 4
4/s:G:4-97Agrcc:Kolcdo 1997:Attach2
RLS 97-800
10/24197
under the Note. Borrower hereby waives all defenses and pleas on the grounds of any extensions
of the time for repayment of any amounts due under this Note,unless Lender has granted such
extensions in writing. Consent by Lender to any act or omission by Borrower shall not be
construed to be a consent to any other act or omission or to waive the requirement for Lender's
written consent to future waivers.
18. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications
to this Note must be in lvriting,and shall be made only if executed by both Borrower and Lender.
Executed at Huntington Beach,California,onkCKV,-J&0A1997.
BORROWER: Orange County Community Housing
Corporation,a California nonprofit
benefit corporation
By:
Its:
By:
Its:
Attachment No. 2
Page 4 of 4
Vs:GA-97Agrce:Koledo 1997:Attach2
RLS 97-800
10/24197
I i
5
so
�.
r '
e
Attachment No. 2
PROMISSORY NOTE SECURED BY DEED OF TRUST
o0��0,tx�o (17351 Koledo Lane)
$ .
DATE;Xfd, a 20 (CL97_
FOR VALUE RECEIVED,Orange County Community Housing Corporation,a
California nonprofit public benefit corporation, whose address is 1833 E. 17th Street, Santa Ana,
California 92701 ("Borrower")hereby promises to pay to the order of the Redevelopment
Agency of the City of Huntington Beach,a public body,whose address is 2000 Main Street,
Huntington Beach, California, 92648 ("Lender"),a principal amount equal to_O�v N TebJS0-,9
dollars($190t0c0-cq,or so much thereof as may be advanced by Lender to Borrower(the
"Loan")pursuant to a loan agreement of even date herewith between Borrower and Lender(the
"Loan Agreement"). Borrower also promises to pay to the order of Lender accrued simple
interest on the principal balance at the rate of six percent(601o)per annum.
1. BORROWER'S OBLIGATION. This Note evidences the obligation of Borrower
to Lender for the repayment of funds loaned to Borrower by Lender to finance the expenses
related to the development of the housing project in the City of Huntington Beach described in
the Loan Agreement.
2. SECURITY. This Note is secured by a deed of trust executed by the Borrower in
favor of the Lender dated the same date as this Note, (the "Deed of Trust").
3. REPAYMENT OF NOTE. The principal balance under this Note and all interest
accrued thereon shall be due and payable thirty(30)years after execution of this Note,or in the
event of an Event of Default by Borrower which has not been cured as provided for in the Loan
Documents or Regulating Agreement. The Lender may choose,in its sole discretion,whether or
not to renegotiate this note in the thirtieth(30th)year to extend the affordability period and the
term of this note.
There may be periodic payments under this Note. Commencing on the third (3rd)
anniversary(except that the Department Director may extend the period by two (2)years
administratively)of the Close of Escrow and continuing until the thirtieth(30th)anniversary of
the Close of Escrow,the Borrower shall make minimum annual payments(the"Annual
Payment")in the amount of One Thousand Two Hundred Dollars($1,200.00). Each Annual
Payment shall be due annually on each anniversary of the Close of Escrow beginning on the third
(3rd)anniversary of the Close of Escrow and continuing and including the thirtieth(30th)
anniversary of the Close of Escrow;provided,however,that remaining outstanding principal of
the Loan shall be repaid on the thirtieth(30th)anniversary of the Close of Escrow. If the balance
Attachment No. 2A
Page 1 of 4
41s:4-97AgrecKoledo 1997:Attach2
RLS 97-800
I OR4197
Residual Receipts account is insufficient to fully fund an Annual Payment,Borrower agrees to
make-up any shortfall that may exist in the account so that the Annual Payment can be made.
Borrower may request that the Lender reduce, suspend or forgive an Annual Payment,and the
Borrower may present evidence to the Lender of its inability to make an Annual Payment;
however, Lender reserves the exclusive right in its sole discretion to reduce,suspend or forgive
an Annual Payment.
Borrower may request that the Lender reduce, suspend or forgive an Annual Payment,
and the Borrower may present evidence to the Lender of its inability to make an Annual
Payment;however, Lender reserves the exclusive right in its sole discretion to reduce, suspend or
forgive an Annual Payment.
All principal and interest on the Loan shall be due in full upon the earliest to
occur of:
(1) the occurrence of a default under this Note,the HOME Loan Agreement,
the Deed of Trust,or the Agreement Containing Covenants, which event
of default is not cured within the applicable cure period; or
(2) the thirtieth(30th)anniversary of Close of Escrow.
4. PLACE AND MANNER OF PAYMENT. All amounts due and payable under
this Note are payable at the office of Lender as set forth above,or at such other place as Lender
may designate to Borrower in writing from time to time,in any coin or currency of the United
States which on the respective dates of payment thereof shall be Iegal tender for the payment of
public and private debts.
5. WAIVERS. Presentment,notice of dishonor,and protest are waived by all
makers,sureties, guarantors, and endorsers of this Note.
6. DEFAULT AND ACCELERATION. All covenants,conditions and agreements
contained in the Deed of Trust,Regulatory Agreement and the Loan Agreement are hereby
made a part of this Note. Borrower agrees that the unpaid balance of the then principal amount
of this Note,together with all accrued interest thereon and charges owing,shall,at the option of
Lender, become immediately due and payable upon any Event of Default as defined in the Loan
Agreement which has not been cured pursuant to that agreement, including without limitation the
failure of Borrower to make any payment%vhen due. Upon any Event of Default,Lender may
exercise any other right or remedy permitted under the Loan Documents.
7. NONRECOURSE. This Loan is a nonrecourse obligation of Borrower. The sole
recourse of Lender for repayment of the principal and interest under this Note shall be the
exercise of Lender's rights against the Property.
Attachment No. 2A
Page 2 of 4
4/s:4-97Agrcc:Kok&1997:Attach2
RLS 97-800
O124/97
r
8. CONSENTS AND APPROVALS. Any consent or approval of Lender required
under this Note shall not be unreasonably withheld.
9. NOTICES. Except as may be otherwise specifically provided herein,any
approval,notice,direction,consent request or other action by Lender shall be in writing and may
be communicated to Borrower at the principal office of Borrower set forth above,or at such other
place or places as Borrower shall designate in writing, from time to time,for the receipt of
communications from Lender.
10. BINDING UPON SUCCESSORS. All provisions of this Note shall be binding
upon and inure to the benefit of the heirs,administrators,executors,successors-in-interest,
transferees,and assigns of Borrower and Lender;provided,however,that this section does not
waive the prohibition in the Loan Agreement on assignment of the Loan by Borrower without
Lender's consent.
11. ASSIGNMENT AND ASSUMPTION. Borrower shall not assign any of its
interests under this Note to any other party,except as specifically permitted under the terms of
the Loan Documents,without the prior written consent of Lender. Any unauthorized assignment
shall be void.
12. DEFINITIONS. Capitalized terms not defined in this Note shall have the same
meaning as defined terms in the Loan Agreement.
13. GOVERNING LAW. This Note shall be interpreted under and governed by the
laws of the State of California,except for those provisions relating to choice of law and those
provisions preempted by federal law.
14. LOAN AGREEMENT CONTROLS. In the event that any provisions of this Note
and the Loan Agreement conflict,the terms of the Loan Agreement shall control.
15. SEVERABILITY. Every provision of this Note is intended to be severable. If any
provision of this Note shall be held invalid, illegal,or unenforceable by a court of competent
jurisdiction,the validity,legality,and enforceability of the remaining provisions shall not in any
way be affected or impaired.
16. ATTORNEYS' FEES AND COSTS. In the event of any legal action is
commenced to interpret or to enforce the terms of this Note,each party shall bear its own costs
and attorneys' fees. The prevailing party in any such action shall not be entitled to recover any
attorneys' fees and costs incurred in such action.
17. WAIVER. Any waiver by Lender of any obligation in this Note must be in
writing. No waiver shall be implied from any failure of Borrower to take,or any delay or failure
Attachment No. 2A
Page 3 of 4
4/s:4-97Agrec:Koiedo 1997:Attach2
RL5 97-900
!0124197
by Lender to take action on any breach or default by Borrower or to pursue any remedy allowed
under this Note or applicable law. Any extension of time granted to Borrower to perform any
obligation under this Note shall not operate as a waiver or release from any of its obligations
under the Note. Borrower hereby waives all defenses and pleas on the grounds of any extensions
of the time for repayment of any amounts due under this Note,unless Lender has granted such
extensions in writing. Consent by Lender to any act or omission by Borrower shall not be
construed to be a consent to any other act or omission or to waive the requirement for Lender s
written consent to future waivers.
18. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications
to this Note must be in%witing,and shall be made only if executed by both Borrower and Lender.
Executed at Huntington Beach,California,on (Z 1997.
BORROWER: Orange County Community Housing
Corporation, a California nonprofit
benefit corporation
By;
Its:
By:
Its:
Attachment No. 2A
Page 4 of 4
4/s:4-97Agrce:Kotcdo 1997:Attach2
R S 97-800
10/24/97
f
Attachment No. 5
SCOPE OF WORK
The projects are two 4-unit multifamily housing developments located at 17291 and 17351
Koledo Lane, and is composed entirely of two bedroom apartments that are in average to below
average condition. Improvements planned include the rehabilitation of both the interior and
exterior of the buildings.
HOME funds are being provided for the acquisition of these properties. OCCHC is rehabilitating
the properties with other funds.
All rehabilitation work will conform to Housing Qualify Standards and all other applicable
building codes,standards,and regulations.
Attachment No. 5
Page 1 of l
41s:G:4-97Agree:Koledo97:AttachS
RLS 97-800
10f141'97
. F
Attachment No. 6
SCIIEDULE OF PERFORMANCE
I. GENERAL PROVISIONS
I. Execution of Agreement by Agency
The Agency shall approve and execute Within thirty(30)days after the date of
this Agreement and shall deliver one execution and submission of five(5)copies of
(1)copy thereof to the Developer. this Agreement by the Developer.
2. SlIbmission of DevelopmenlEonosal
Developer submits its Development Completed.
Proposal to the Agency.
3. Prcl2aration of NFRA.Docurneutalion Completed.
II. REHABILITATIONPHASE
4. Commencement of CQnstructiQn.
Developer shall commence Within forty-five days after the Agency's
construction of property rehabilitation. approval of Agreement.
5. Completion of Construction.
Developer shall complete construction Subject to any permissible delays,Developer
of all of the rehabilitation is to use due diligence to complete the project
improvements. within twelve (12)months After the start of
the rehabilitation improvements;however,the
Developer may request up to three(3)one(1)
month extensions to be granted by the
Director of Special Projects. Approval of
such three extensions(but no other
extensions)is not to be unreasonably
withheld;provided that,notwithstanding the
foregoing,construction shall be completed
Attachment No.6
Page 1 of 2
41s:0:497Agree:Koledo97:attachb
RLS 97-800
10/24/97
• y • ,
no later than eighteen(18)months after the
earlier of(i)the commencement of the
rehabilitation improvements;or(ii)the time
established in this Agreement for the
commencement of construction of
rehabilitation improvements.
III. OPERATIONS PITASE
6. isbursemnt of HOME Funds,
The Agency shall disburse the Loan. One payment for acquisition;progress
payment schedule for the rehabilitation.
7. Submission of Income Certification.
Within thirty(30)days after execution of the
Agreement;end annually thereafter to be
submitted per HOME regulations on July 1,
for the duration of the Agreement.
Attachment No. b
Page 2 of 2
41s:0:4-97Agrcc:Koicdo97:attach6
Rl.s 97-800
10124197
Attachment No. 7
CITY OF HUNTfNGTON BEACH
HOME Investment Partnership Program
RENTAL PROPERTY ACQUISITION GUIDELINES
HOME regulations require that a participating city adopt basic guidelines for the acquisition of
existing rental property for use as HOME-funded affordable housing. The HOME program is
strictly targeted for low income households, which is expressed both through household income
limits and rental rate restrictions. The full text of applicable HOME regulations are provided as
attachments to these guidelines and are summarized as follows-
Minimum Standards
1. Costs eligible for HOME assistance are property acquisition costs,relocation costs,
"hard" and "soft"costs directly related to the project.
2. The use of Federal assistance requires the developer to comply with Davis-Bacon
standards.
3. At a minimum, 90%of the units must be occupied by households earning no more than
60%of the County median as adjusted for household size. Based on 1993 HUD income
information,the maximum allowable income for a one person household is
approximately $23,760,the two person household income is$27,I20,the three person
household income is$30,480 and the four person household income is$33,900.
4. At least 20%of the project units must be occupied by households earning no more than
50%of the County median as adjusted for household size. (These units can be used in
satisfying the requirement that 90%of the units be income restricted.) The 1993 HUD
income standards indicate that a one person household at 50%of the County median
income would earn$19,800,increasing to $29,250 for a four person household.
5. 100%of the units must have rents which do not exceed 30%of 65%of the County
median; however,at least 20%of the units must bear rents not greater than 30%of 50%
of the County median. Rents can be lower,but in all cases,HUD regulations at 24 CFR
92.216 must be strictly adhered to.
Attachment 7
Page 1 of 5
4/s:G.4-97Agree.Kotedo97:Attach7
RLS 97-800
0124S7
6. The duration of the affordability covenants varies depending on the level of assistance
provided to the project. For example,if the assistance is in excess of$40,000 per unit,
the minimum affordability period is fifteen(15)years. More favorable terms will be
granted for longer affordability periods(i.e.,30+years).
7. A project may contain multiple sites. In order to be considered as a single"project," the
sites must be under common ownership and management,and must be located within a
four block area.
8. Monitoring of a project for compliance with HOME regulations is mandatory and is
governed by HOME regulations at 24 CFR 92.504(e).
SUBMISSION REQUIREMENTS
The City intends to review developer submissions in two stages. The first level of evaluation is a
review of the developer qualifications and the conceptual scope of the proposed project. The
second component of the evaluation is an analysis of the proposed projeefs deal points.
Developers selected at the conclusion of this two stage process will be awarded Exclusive Rights
to Negotiate related to the identified project site.
It is the City's intent to analyze each of the components separately, in a sequential manner.
Initially,it will only be necessary for responding developers to submit the information requested
in Attachment 1 (5 copies). If the City evaluation indicates that the developer meets or exceeds
the defined criteria,the proposal will then be processed further with additional analysis and
negotiation.
Proposals should be submitted to:
I IOME Program Coordinator
City of Huntington Beach
Special Projects Division
2000 Main Street,4th Floor
Huntington Beach,CA 92548
The City of Huntington Beach reserves the right to reject any and all proposals at its sole
discretion. In the event that the City chooses a particular proposal for approval by the City
Council,the City reserves the right to further negotiate the terms of the proposal,and may,at its
discretion,require a good faith deposit as a means of defraying the City's costs during the
deposition process.
Attachment 7
Page 2 of 5
4Is:GA-97Agme:Ro1edo97:At1ach7
RLs 97-800
101241'97
DEVELOPER QUALIFICATIONS
SUBMISSION REQUIRErVTENTS
In reviewing the developer qualifications, the City will consider the responses to the following
questions:
1. Provide a narrative description of the proposed project. This should include an
identification of the proposed site, the ownership of the site, and a conceptual
acquisition and/or rehabilitation plan.
2. Describe the developer's Jh=most relevant projects. Provide photographs and a
brief description of these projects, including date, location, size, rehabilitation
costs, specific role of the developer, etc. Also include a local government
reference(name,title and telephone number)for each project cited above.
3. Describe the type of legal entity Aith whom the City would contract. Identify the
person in charge of negotiations, and key personnel who will be involved in
decision making.
4. Identify the members of the project team, including key consultants such as legal
counsel,architects,etc. Specify the relevant experience of the team members and
key consultants.
5. Describe the developer's previous experience in the on-going management,
operation and ownership of affordable housing projects.
6. Identify the anticipated long-term ownership structure of the proposed project.
7. Present evidence that the developer has the financial capability to carry out the
proposed commitments. The preferred evidence is the two most recent audited
financial statements of the developer. However,other evidence may be submitted
at the developer's discretion. Also include the method of long-term financing both
debt and equity, if any, for the three most relevant projects listed in "2" above.
TO BE SUBMITTED CONFIDENTIALLY UNDER SEPARATE COVER.
(Three copies only).
Each project tivi11 be evaluated against several criteria and will be given points based on those
criteria.
Attachment 7
Page 3 of 5
41s:G:4-97Agrcc:Kolcdo97:Attach7
RLS 97-900
10/24197
Affordable Housing Project Rating Sheet
Name of Project: 17291 and 17351 Koledo Lane
Address:
Criteria Points
Project Location
HUD enhancement area 10
Redevelopment project area 7
Low-mod census tract 5
City housing survey area rated"Poor" 3
Number of units&%of project reserved 10
for low or very low income persons
Number of units and %of project reserved for
special needs groups(e.g.seniors)
Number of units and%of project reserved for 5
large families(3+bedrooms)
Attachment 7
Page 4 of 5
41s:G:4-97Agrcc:Kotc4o97:Ariach7
RLS 97-800
10/24/97
Rating Sheet,cont.
ncveloper Profilc
Approved Community Housing Development Organization 10
("CHDO")
Nonprofit housing developer 5
For-profit developer
Women or minority ovmed business
Lone-Term Affordability Controls
Length of Affordability*
30+ 25
20-30 years
TOTAL POINTS: 80
*Dependent upon the source of funds
*Additional consideration will be given to projects based on average unit size,cost,
overall density of the project,as well as the cost of rehabilitation and other related
expenses
•A minimum of 40 points is required for any project to merit further consideration
Attachment 7
Page 5 of 5
41s:G:4-97Agee:Kolcdo97:Attach7
RLS 97-800
10R4197
Attachment No. 8
HOME INVESTMENT PARTNERSHIP PROGRAM
MULTI-FAMILY REHABILITATION
LOAN PROGRAM
I. General Information
A. Purpose
B. Assistance
C. Availability of Funds/Altemative
CDBG Loan Program
D. Goals
11. Guidelines
A. Property Eligibility Requirements
and Improvements
B. Applicant Eligibility
C. Loan Conditions
III. Procedures
A. Intake Activities
B. Inspection
C. Contractor Selection
D. Financial Review
E. Loan Closing
F. Construction Management and
Disbursement of Funds
Attachment No. 8
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G. Loan Collection
NEIGHBORHOOD ENHANCEMENT PROGRAM
MULTI-FAMILY RENTAL HOUSING REHABILITATION LOANS
I. GENERAL INFORATATION:
A. Purpose
To provide multi-family rental property owners with deferred payment and low
interest rate loans to upgrade existing substandard apartment units. Mandated
goal of the IIOME Program is to improve and preserve affordable housing for low
and very low income families.
B. Assistance
The City of Huntington Beach offers rental owners Deferred Payment Loans to
rehabilitate their properties. Deferred Payment Loans may be obtained for up to
50%of the total approved cost of rehabilitation. An average of$5,000 for S.R.O.
and zero bedroom,$6,500 for one bedroom,$7,500 for hvo bedrooms and$8,500
for three plus bedrooms will be loaned and the property owner is expected to
"match"these public funds by securing private financing for the remaining 50%
of rehabilitation costs. These Deferred Payment Loans require no payments to be
made,no accrual of interest,and no fees to be paid until such time as the rental
property building is sold or title transferred. The DPL then becomes due and
payable and a one-time 5 percent fee is assessed. The minimum average
financing available is$1,000 per unit.
Below Market Rate Loans may also be obtained under the HOME Rental
Rehabilitation Program for the cost of rehabilitation. An average of$5,000 for
S.R.O.and zero bedroom,$6,500 for one bedroom, $7,500 for two bedrooms and
$8,500 for three plus bedrooms will be loaned with HOME Rehabilitation funds.
The minimum average financing available is$1,000 per unit and the interest rate
and terms are negotiable.
The program operates on a City-wide basis, however,priority will be given to
projects located in the various neighborhood enhancement areas.
Affordability covenants will be required in all cases,as outlined in HOME
Program regulations at 24 CFR 92152.
Attachment No. S
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C. Availability of Funds/Altg-,IitaiLe CDBG Loan Program
When the HOME Rental Rehabilitation Grant funds are fully committed,an
alternative Rental Rehabilitation Loan Program will be made available to
interested property owners. The program%will utilize CDBG funds for differed
payment loans and matching funds at 5%interest rate. Although section 8
certificates are not involved,the City will require that 90%of the units following
rehabilitation will be rented to low and very low income households. This
element is binding by way of the owner certification agreement between the City
and property owner.
The CDBG Rental Rehabilitation Program will follow the same guidelines as
outlined in the Rental Rehabilitation Loan Program.
D. Goats
Cooperation between public agencies and the private sector is vital to meeting the
rental housing needs of lower and moderate income families in the City of
Huntington Beach. One of the ways to meet these needs to provide low or no
interest loads to encourage multi-family rental property owners to rehabilitate
their properties and increase the supply of decent affordable housing for low and
moderate income families while preserving existing housing stock and revitalizing
old neighborhoods.
II. GUIDELINES
A. Pron,ev Eligibility2cquiremots gndJm12rQyements
Deferred Payment Loans(DPL)and Below Market Rate Interest Loans(BMRI)
are available to multi-family rental property owners of any income range on a
City-wide basis;however,priority will be given to projects located in a
neighborhood enhancement area. The property must meet the following criteria:
1. Be in need of repairs which meet the Building and Property Rehabilitation
Standards. Existing nonconforming uses and/or code violations must be
remedied as a top priority of the Rental Rehabilitation Loan.
2. At least 90%of the units are occupied by very low income families.
3. Eligible improvements include,but are not necessarily limited to,the
following:
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a. Additions and alterations to increase the livability or usefulness of
existing structures,such as rooms,porches,stairways,closets,
bathrooms,and entrances. Garages may also be considered
eligible particularly in situations where off-street parking codes are
not being met.
b. Exterior work to help preserve or protect structures, such as
painting,roofing,siding,and property enhancements,such as
landscaping, sidewalks,and fences.
C. Interior work to make a structure more livable,such as painting,
papering,plastering,new flooring,and tile«rork.
d. Repairs,restoration,or replacement of important parts of
structures,such as heating systems,plumbing systems,septic
tanks,electrical wiring and service,structural and foundation
repairs,and built-in kitchen appliances in residential structures.
e. Fumigation and treatment of terminate and pest control.
f. Energy saving repairs and devices(solar heating,insulation,
window caulking,etc.)
g. Modifications which aid the mobility of the handicapped and
elderly.
h. All improvements must be physically attached to the property and
permanent in nature.
4. The following improvements are=eligible:
Barbeque Pits
Bathhouses
Burglar Alarms
Burglar Protection Bars
Dumbwaiters
Fire Extinguishers
Greenhouses(except commercial greenhouses)
Hangars(airplane)
Kennels
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Kitchen appliances not including stoves which are designed and
manufactured to be free-standing and are not built-in and
permanently affixed as an integral part of the kitchen in a
residential structure
Outdoor Fireplaces or Hearths
Penthouses
Photo Murals
Radiator Covers or Enclosures
Stands
Steam Cleaning of Exterior Surfaces
Swimming Pools
Television Antennae
Tennis Courts
Valance of Cornice Boards
Waterproofing of a structure by pumping or injecting any substance in the
earth adjacent to or beneath the basement or foundation or floors
5. After rehabilitation,projects must at least meet Section S Housing Quality
Standards for Existing Housing(HQS).
B. Applicant Eligibility
BMRI loans are available only to applicants of legal age and having the capacity
to competently enter into financial and contractual agreements. The borrower
must own the property to be rehabilitated. The following criteria shall apply to
applicant eligibility:
1. Length of Ownership-The unit must have been owned by the applicant at
least one year prior to the date of application for a loan. Owners may be
exempted from this rule if, in the opinion of the Rehabilitation Manager
and Program Manager,special benefits to the designated Neighborhood
Enhancement Area will result from the loan activity. In the case of a
CHDO,or other eligible nonprofit,site control is required,but the length
of ownership may be less than one year.
2. All persons on title to the property must sign promissory note and deed of
trust.
3. If applicant's property is on a Iand Iease basis,the lease must be for a fixed
term which expires no less than six months after the maturity date of the
loan.
Attachment No. 8
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RLS 97-900
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4. Credit history,income to debt ratio,and employment status are reviewed
and verified by the bank contracted by the City. The bank advises the City
and participants as to approval or rejection of applicant.
5. O«mer must be able to demonstrate a 20%before-rehabilitation equity
investment in the property based upon a City-ordered independent
appraisal.
6. Oimer must utilize an approved private lender,or demonstrate personal
resources, to finance any remaining amount of the total approved
rehabilitation costs. (OArner may participate in the City's regular CDBG
Rental Rehabilitation Program to finance the remaining 50%.)
C. Loan Conditims
I. City Conditions:
a. As incorporated into the Fair Lending Notice part of the
application package,the City as lender must comply with the
Federal Equal Credit Opportunity Act and California Housing
Financial Discrimination Act of 1977.
b. The City must comply with the Fair Credit Reporting Act which
stipulates and guarantees the applicant's privacy and right to have
all information regarding the loan transaction kept in a confidential
manner.
C. As included in the Lead Paint Warning part of the loan application
packet,the U.S. Department of Housing and Urban Development
requires that the City advise applicant of the dangers of lead base
paint.
2. Participant Conditions:
a. The specific terms and conditions for Rental Rehabilitation Loans
(DPL and BMRI)are incorporated in the mortgage or other
security instruments,as applicable,and the Promissory Note as
required by the pertinent documents.
b. Civil Rights
The participant shall not discriminate upon the basis of sex,age,
race,creed,color,class,national origin,or ancestry in the sale,
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RIS 97-800
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lease,rental,use,occupancy,and awarding of contract of the
property to be rehabilitated with the assistance of housing
rehabilitation loans.
C. Use of Proceeds
The participant shall agree to use the loan proceeds only to pay for
costs of services and materials necessary to carry out the
rehabilitation work as detailed in the Work Write-Up for which the
loan will be approved.
d. Inspections
The participant shall permit inspections by the City of Huntington
Beach of the property to be rehabilitated with the assistance of the
Rental Rehabilitation Loan for compliance with the Building and
Property Rehabilitation Standards of the City. The participant
shall also permit all other inspections deemed necessary by the
Department of Community Development/Building& PIanning
Division regarding the property and the rehabilitation work.
C. CornnIetion of Work _
The participant shall assure that the rehabilitation work shall be
carried out promptly and efficiently through written contract
awarded after review by the City's Housing Rehabilitation Loan
Program and prior written approval by the Rehabilitation/Manager.
f. Ineligible Contractors
The participant shall agree not to award any contract for
rehabilitation work to be paid for in whole or in part with the
proceeds of the housing rehabilitation loan to any contractor who,
at the time, does not meet standards of the Housing Rehabilitation
Program as an eligible contractor.
g. Hecords '
The participant shall keep such records as may be required with
respect to the rehabilitation work performed with the assistance of
a housing rehabilitation loan. Long-term monitoring requirements
are mandatory as specified in 24 CFR 92.504.
h. Interest of public Body
The participant shall allow no member of the governing body of
the City of Huntington Beach who exercises any functions or
responsibilities in connection with the administration of the
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Housing Rehabilitation Program to have any interest,direct or
indirect, in the proceeds of the Rental Rehabilitation Loan or in
any contract entered into by the participant for the performance of
work financed, in whole or in part,with the proceeds of the loan.
i• Bonus.Commission-!Dr Fee
The participant shall not pay any bonus,commission,or fee for the
purpose of obtaining approval of the loan application.
j. ,Sccliring.Bids for Construction Work
A participant may:
1. Negotiate a contract with an approved contractor of his/her
choice, provided that the contract amount does not exceed
the market rate for the services provided as determined by
the Rehabilitation Manager.
2. Select an approved contractor of their choice for
competitive bidding.
k. E[eservation Qf the Security
The participant shall maintain the property during the term of the
housing rehabilitation loan.
L Hazard In5u=ce
The participant shall maintain fire and extended coverage on the
property at least to the value of indebtedness and keep property
taxes current during the term of the housing rehabilitation loan.
M. ]&Cn.tSilI.culations
Affordable rents must be set and maintained as required by HOME
Program regulations at 24 CFR Part 92.252.
n. Owners must sign the ovrner certification form and abide by the
agreement for the specified period of time.
D. Loan Amount Determination
1. The maximum amount of any Rental Rehabilitation loan is determined by
application of the following criteria:
Attachment No. 8
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a. An average loan grant per unit is$5,000 for S.R.O. and zero
bedroom,$6,500 for one bedroom,$7,500 for two bedroom and
$8,500 for three plus bedrooms,not to exceed any maximums set
by HUD. Loan will cover cost of repair and fees appurtenant to the
property rehabilitation(work performed in compliance with a work
write-up and Building and Planning fees). Maximum loan
amounts funded vNith Multi-Family Rental Rehabilitation funds
may be increased only upon review by the HOME Program
Manager and/or the Rehabilitation Manager.
b. An amount not to exceed the fair market value of the property at
the time of application,minus the amount of the existing
indebtedness on the property.
2. Terms
a. Terms and repayment may be negotiable. In some cases,
repayment of the loan will be deferred until the property is sold or
title transferred. At such time,the entire principal amount of the
loan is due and payable plus a nominal one-time only S percent
interest assessment.
b. The entire amount of the Deferred Payment Loan will be placed as
a recorded lien on the property.
3. Allowable Costs
a. All costs relative to the loan processing(credit reports, lot book
reports,monthly collection costs,and record keeping by lending
institution)are paid by the Program;however,if participant
makes application for the loan and allows a period of time to pass
which results in the need for processing the applications again,
participant must pay all processing costs. Said costs may be paid
for out of loan proceeds once the loan is funded.
b. Specific costs covered by The Rental Rehabilitation loan include
repairs necessary to correct violations or soon to be violations of
the Building and Property Rehabilitation Standards and work
consistent with objectives of the Neighborhood Enhancement
Program as noted in the Work Write-Up.
Attachment No. 8
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RLS 97-900
10/24/97
C. Specific costs nc&covered by the Rental Rehabilitation loan
include,but are not necessarily limited to, the following-
I. Materials, fixtures,or equipment of a type or quality which
exceeds that customarily used in properties of the same
general type as the property to be rehabilitated.
2. Free standing appliances other than stoves, unless the need
is justified by medical verification.
3. Purchase,installation,or repair of home furnishings.
4. Reimbursement for owner's personal labor.
5. Reimbursement for improvements as noted in Guidelines,
Section A4(Ineligible Improvements).
d. The total Cost of all general property improvements(non-code
violations,or potential violations),must not exceed 50%of the
total loan amount.
E. Funding for the City of Huntington Beach HOME Rental Housing
Rehabilitation Program has been obtained from the U. S.Department of
Housing and Urban Development(HUD). The program will be operated
under HUD regulations and such other requirements as determined by the
City of Huntington Beach.
III. PROCEDURES:
This section sets forth the steps which are to be followed in the processing of a
Rental Rehabilitation loan.
A. Intake_Acftities
I. Initial Screening
a. Property o%Nmer contacts program.
b. Rehabilitation Manager obtains income and property
information from the property owner in order to make a
preliminary determination of eligibility. Information
collected includes the following:
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• Applicant's name,address,and telephone number
• Location of property
• Statement of o%Nmership
• Number of units and bedrooms per unit
• Number of tenants in the applicant's rental building
• Number of low income tenants in the applicant's
rental building
• General household income range
• Monthly rental rate per unit
• Basic type of home improvements desired
C. Applicants not meeting basic eligibility requirements do
not become part of the program's case load.
2. Documentation of Eligibility and Determination of Type of
Assistance
a. Rehabilitation Manager mails General Information and
Application Packet to Homeoevner. Name and address of
applicant noted on log sheet.
I. Information packet includes:
• Program Information Sheet
• Income limits/interest rates
• Map indicating target areas
2. Rental Rehabilitation Pre-Application
j
i .
Attachment No. 8
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RLS 97-800
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3. Application packet includes:
0 Cover letter listing the supplemental items
required to be submitted with the application
packet
• Home Improvement Loan Application
• Property Owner Agreement
• Schedule of Property Owned
• Fair Lending Notice
• Lead Paint Poisoning information
• Ethnic Classification
4. Supplemental items include:
• A copy of the deed to the property
• A copy of the previous year's Federal
Income Tax for 1040
+ Employment verification(last t;vo check
stubs)(if relevant)
* Completed Social Security verification(or
copy of last check)(if relevant)
b. Completed application received(date indicated in activity
log).
C. Rehabilitation Manager or HOME Coordinator establishes
file,assigns a number to the application,and determines
feasibility of processing applicant.
1. If not feasible,Rehabilitation Manager or HOME
Coordinator so notes disposition on Log Sheet and
notifies interested person of finding in writing.
Application is filed under Ineligible Projects.
Attachment No. &
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RLS 97-800
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2. if feasible,Rehabilitation Manager or HOME
Coordinator so notes disposition on Log Sleet and
notifies participant in writing.
d. Rehabilitation Manager or HOME Coordinator should keep
written records of every telephone call and every
conversation with anyone connected with the rehabilitation
project, including the date,person spoken with, the subject
discussed and any result- this information should be
recorded on the Activity Sheet located in each file.
e. Rehabilitation Manager should keep copies of iffl forms in
each file. The date received and any notes pertinent to the
form should be recorded on the file Checklist.
B. Initial inspection
Rehabilitation Manager
1. Sets up appointment for site inspection and work write-up.
Property Owner must accompany Rehabilitation Manager during
inspection.
2. Documents existing code violations, incipient code violations,
otherwise eligible items and requested home improvements on a
work write-up.
3. Explains what improvements are eligible and/or ineligible and
prioritizes work to be accomplished.
4. Makes a general assessment(preliminary estimate)of whether or
not the differences can be corrected within the program's maximum
dollar limitations.
5. Details findings and cost estimates in a Work Write-Up which
includes:
• Scope of work
• Quantity
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• Quality
• Location
G. Schedules a meeting with applicant to review and approve Work
Write-Up,make necessary changes(within limits of Code
Enforcement),and explain contractor selection procedures.
a. Property Owner must approve and sign the Work Write-Up.
b. Property Owner received:
1. Four copies of the Work Write-Up-one copy with
cost estimates(for Property Owner Information
only)and three without cost estimates(to hand out
to contractors interested in bidding the job).
C. A copy of each completed form,with the appropriate
information and signatures must be returned to the HOME
Coordinator or the Rehabilitation Manager for placement in
the case file. The owner and the contractor should also
keep copies of all forms.
C. Contractor Selection
Responsibility for the selection of a contractor rests with the homeowner.
No agreements,written or otherwise,will be binding for rehabilitation
loan funding unless they are first approved by the HOME Coordinator or
the Rehabilitation Manager. The ovimer must select a qualified licensed
contractor and the bid must come within 10 percent of the in-house cost
estimate. In certain instances where the work items do not require permits,
and the work is not highly technical,a handyman may be selected by the
property owner.
Property Owner:
1. Must obtain Building and Planning Division approval if
rehabilitation work involves a room addition or a significant
altering of the present use of the property.
a. Preliminary Site Plan or Drawing of any proposed changes
to property must be submitted to both divisions.
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b. Preliminary plans should show existing use of the property
(a sample plot plan may be included in Application Packet)
as well as proposed improvements to determine whether or
not Code requirements are being satisfied- it is not
necessary to employ architectural or engineering services at
this stage.
C. Initial inspection by a representative of the Building and/or
Planning Divisions to verify the proposed improvements
may be necessary to receive building permit approval.
d. Upon approval of the proposed improvements by the
Building and Planning Divisions,applicant proceeds to
obtain estimates for the proposed work.
e. All necessary building permits must be obtained prior to
disbursement of any loan funds.
2. Provides Work Write-Ups(without cost estimates)to contractors
interested in bidding the job.
3. Obtains at least t<vo bids and transmits selected bid proposal to
Rehabilitation Manager for review.
a. Rehabilitation Manager or HOME Coordinator reviews bid
proposal to determine cost reasonableness and compliance
with program requirements and to verify contractor
eligibility.
b. Rehabilitation Manager or HOME Coordinator approves
bid proposal.
4. Signs and awards contract after loan documents are executed and
after satisfactory review of contract by Rehabilitation Manager.
D. Einancial Review
1. Rehabilitation Manager or HOME Coordinator reviews
application,and determines credit worthiness,verifies income, and
orders a Lot Book Report to verify title to the property.
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2. Rehabilitation Manager or HOME Coordinator
approves/disapproves package and notifies loan applicant of
decision.
3. Upon decision of loan approval, in-house loan documents are
prepared which include:
• Promissory Note
+ Deed of Trust(signatures to be notarized)
• Notice of Right to Cancel
0 Escrow Control Instructions
E. Loan Closing
1. Rehabilitation Manager or HOME Coordinator schedules and
holds the loan closing in the HCD office.
2. Owner attends loan closing.
3. Rehabilitation Manager or HOME Coordinator reviews loan
documents and owner responsibilities.
4. Property Owner signs loan documents-the signature on the Deed
of Trust must be notarized.
5. Property Owner signs loan documents-the signature on the Deed
of Trust must be notarized.
4. Property Owner signs loan documents-the signature on the Deed
of Trust must be notarized.
5. Property Owner has the legal right to cancel the loan within three
days.
6. Rehabilitation Manager or HOME Coordinator fonvards loan
documents to City Attorney's office for approval as to form. The
loan documents are then recorded and filed at the City Clerk's
office. Loan collection is authorized by the Rehabilitation
Manager.
Attachment No. 8
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RLS 97-900
10/24/97
F. Contract Management and Disbursement of Funds
Contract Management begins with negotiation of the contract between the
contractor and owner and continues through the actual construction work,
job inspections,payment to the owner, final close-out of the job,and often
a one-year warranty period.
I. Pre-Construction Conference
Rehabilitation Manager or HOME Coordinator conducts a pre-
construction conference with the owner and the contractor to
discuss the contract and the responsibilities of each party.
a. A job walk-through with the property owner and the
contractor to review the work write-up and contract
document. Every item on the contract should be read and
discussed to ensure that all parties understand exactly what
the contract entails and to minimize the possibility of later
misunderstandings.
b. A review of the work, inspection and payment schedule so
that all parties will be aware of the timeline and order of
job progression.
C. An explanation of Change Order procedures. The
Rehabilitation Manager or HOME Coordinator must make
it clear that any changes required by job conditions or
requested by the homeowner must be put in writing,
including price,and agreed to by the homeowner and
contractor before the additional work is done(Change
Order).
d. A review of arbitration procedures in the case of a dispute
between any of the parties.
e. Property Ovmer and Contractor sign contract document.
2. Arbitration Procedures
a. In the event of any dispute between the owner and the
contractor concerning the contracted scope of work,the
Rehabilitation Manager or HOME Coordinator will work
with both parties to negotiate a satisfactory solution.
Attachment No. 8
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Should resolution of the situation not be possible on an
informal basis, the parties may elect to have a hearing by a
professional arbitrator or contact the State of California
Contractors License Board.
b. Complaints concerning the rehabilitation loan program
shall be in writing and addressed to the Rehabilitation
Manager. The Rehabilitation Manager will contact the
complainant and attempt to resolve the problem. A written
response will be made within 15 working days.
If complainant is not satisfied after said written response,a
complaint may be filed with the Program Manager or
HOME Coordinator who-,%ill schedule a meeting with the
Rehabilitation Manager. A written response will be made
within 5 working days.
3. Accounting Procedures
a. Upon expiration of the required three-day right of borrower
to cancel the loan transaction,Rehabilitation Manager
prepares an in-house Material Requisition and obtains
Project Manager's approval. The Material Requisition is in
the same amount as the principal amount of the loan and
establishes a Purchase Order with the Accounting and
Records Division of the Administrative Services
Department.
b. The Material Requisition will be submitted to the
Accounting and Records Division upon Departmental
approval of the first request for payment. A Request for
Partial Payment will be submitted at the same time to
ensure immediate payment to the home owner as the
establishment of the Purchase Order takes approximately
two weeks.
C. The Purchase Order is in the name of the participant(s)
and serves as the rehabilitation Escrow account from which
payment for the Rehabilitation work is disbursed. The
Request for Partial Payment and all future requests for
payment will be debited against the Purchase Order.
Attachment No. 8
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4. Check Disbursement
a. Homeowner contacts Loan Program to arrange a job site
inspection and progress payment.
1. Rehabilitation Manager visits the jab site and
verifies that the work included for payment is
complete and within the scope of eligible work as
outlined in the Work Write-Up,and that all
necessary inspections by the Building Division have
been satisfactorily accomplished.
2. Rehabilitation Manager approves payment to the
homeowner and signs off Payment Request.
b. Rehabilitation Manager transmits Payment Request to
Program Manager for approval.
Completed form includes the amount of disbursement,
name and loan number of participant,a description of the
work completed and signatures of Rehabilitation Manager
or HOME Coordinator,and Program Manager.
C. Program Manager transmits Payment Request(excluding
attachments)to the Accounting Department who will
prepare a check payable to the homeowner for the approved
amount. A copy of this request will be placed in the
participant's file.
d. Alternative
Program Manager transmits Payment Request to City
Treasurer for review and approval.
Upon review and approval of the payment request,the City
Treasurer%ill forward a request to Security Pacific
National Bank to prepare a Cashiers Check payable to the
homeowner for the approved amount. A copy of this
request will be placed in the participant's file.
C. Check Disbursement to Homeowner
Attachment No. 8
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RLS 97-800
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1. The Rehabilitation Manager contacts the
homeowner to pick up check at the HCD office.
2. Upon actual disbursement of check to participant,
the homeowner signs the Receipt of Loan Amount,
acknowledging receipt of the check.
Said form includes loan number, participant name,
warrant number,and remaining loan balance.
3. Copies of the above mentioned documents(Check
and Receipt of Loan Amount)will be placed in the
participant's file.
4. The Payment Schedule and the Purchase Order
copy in the participant's file is debited upon
disbursement of check for amount expended.
f. Timeline-Generally,the cheek is available within five(5)
working days following payment request submission to
Program Manager.
g. All above mentioned documents and bills are filed in
participant's file.
h. Funds cannot be disbursed for work which does not meet
the approval or standards of the Building and Planning
Divisions or Neighborhood Enhancement Program.
5. Final Inspection
a. The Rehabilitation Manager or HOME Coordinator,
homeowner,and contractor should make a final inspection
of the project together. When the improvements are
completed, the job is considered finished,except for a one-
year guarantee on labor and materials which is a normal
part of the contract. There may also be an inspection at the
end of the one-year warranty period.
b. The Rehabilitation Manager or HOME Coordinator
completes a Certification of Final Inspection and
transmits one copy to homeowner.
Attachment No. 8
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6. Close-out of the Contract
a. Waiver of Liens
This is a document releasing lien rights on the job,to be
signed by all material suppliers and subcontractors.
b. Warranties
The general contractor must give a one-year guarantee on
all labor and materials,and supply to the homeowner all
manufacturers'warranties for equipment such as furnaces,
air conditioning units,kitchen appliances and hot water
heaters. Any product guarantee beyond one year,such as a
15-year guarantee on roof materials,should also be passed
on.
G. Loan Collection
1. a. At the time of sale or transfer of ownership the loan is due
and payable plus the one-time 6 percent interest charge.
b. Upon completion of demand,escrow instructions for full
payment of a loan and reconveyance of the Trust Deed,a
Request for Full Reconveyanee is signed by the City Clerk
and Rehabilitation Manager and forwarded to escrow
company.
C. Payment is then made by escrow company or owner for full
amount of loan payable to City Treasurer.
d. The funds collected are then deposited into City Savings
Account No. 724-137-309 on deposit at Security Pacific
National Bank-Huntington Beach,California, Beach.and
Garfield Branch.
2. Cif'Collection DAIRI Loans
a. The city is responsible for BMRI loans issued to those
within a pilot program.
Attachment No. 8
Page 21 of 22
4/s:0:4-97ASme:KoIc6o97:attach8
RLs 97-800
l Or24)97
b. An"In House" collection procedure exists with the
Rehabilitation Manager forwarding executed loan
documents to the City Clerk for filing.
C. A copy of Promissory Note is forwarded w7th a Request for
Establishment of Collection Account to Administrative
Services-Accounting and Records-City of Huntington
Beach.
Attachment No. 8
Page 22 of 22
41s:G:4-97Agrcc:Koledo97:attach8
RLS 97-800
10/24/97
7
It ANAP 4MA ro ri
Form No.1056.92
2TAL'093'fl'P 0 1 j C y
Form I
POLICY OF TITLE INUARNCE � �- }
ir
.1 A KI E R I
s. 4L
4r
Opp,
J.
4% ISSUED BY
ir
First American Title Insurance Company
AA
SUBJECT TDjHE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND
• iL THE CONDITIONSUD STIPULATIONS,FIRST AMERICAN TITLE INSURANCE COMPANY,a California corporation,herein called wo
the Company,Insures,as of Date of Policy shown In Schedule A.against loss or damage,not exceeding the Amount of Insurance 11
4L stated In Schedule A, sustained or incurred by the insured by reason of:
1. Title to the estate or Interest described In Schedule A being vested other than as stated therein;
2. Any defe.1 in or lien or encumbrance on the title;
3. Unmarketability of the title;
4L
4. Lack of a right of access to and from the land;
4r
AL 5. The Invalidity or unenforceabiQy of the lien of the Insured mortgage upon the title;
6. The priority of any lien or encumbrance over the lien of the Insured mortgage;
4r
7. Lack of priority of the lien of the Insured mortgage over any statutory lien for services, labor or material:
.4 ti
(a) arising from an improvement or work related to the land which Is contracted for or commenced prior to Date
of Policy; or
(b) arising from an improvement or work related to the land which Is contracted for or commenced subsequent
to Date of Policy and which Is financed in whole or in part by proceeds of the Indebtedness secured by the Insured
mortgage which at Date of Policy the Insured has advanced oe is obligated to advance;
8. Any assessments for street improvements under construction or completed at Date of Policy which now have
gained or hereafter may gain priority over the Insured mortgage; or
9. The Invalidity or unenforceability of any assignment of the Insured mortgage,provided the assignment is shown
4r In Schedule A,or the failure of the assignment shown in Schedule A to vest tide to the Insured mortgage In the
4L named Insured assignee free and clear of all liens.
L4L The Company will also pay the costs, attorneys'fees and expenses incurred In defense of the title or the lien flf the Insured
4 mortgage, as insured, but only to the extent provided in the Conditions and Stipulations.
La
Y
A AL A-4-
First American Title Insurance Company Y"'
-ALS BY �fo PRESIDENr
ATTEST�X14,4 jrO"P* SECRETARY
CW p
I V c
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy insurance is afforded herein as to assessments for street improve-
and the Company will not pay loss or damage, costs, attorneys' fees or ments under construction or completed at Date of Policy); or
expenses which arise by reason of: (e) resulting in loss or damage which would not have been sustained h the
1. (a) Any law,ordinance or govemmental regulation(including but not limited insured claimant had paid value for the insured mortgage.
to building and zoning laws, ordinances, or regulations) restricting, 4. Unenforceability of the lien of the insured mortgage because of the inability
regulating,prohibiting or relating to(i)the occupancy,use,or enjoyment or failure of the insured at Date of Policy,or the inability or failure of any
of the land; (ii) the character, dimensions or location of any subsequent owner of the indebtedness, to comply with applicable doing
improvement now or hereafter erected on the land;(iii)a separation in business laws of the state in which the land is situated.
ownership or a change in the dimensions or area of the land or any 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim
parcel of which the land is or was a part; or (iv) environmental thereof, which arises out of the transaction evidenced by the insured
protection,or the effect of any violation of these laws,ordinances or mortgage and is based upon usury or any consumer credit protection or
governmental regulations, except to the extent that a notice of the truth in lending law
enforcement thereof or a notice of a defect, lien or encumbrance 6. Any statutory lien for services,labor or materials (or the claim of priority
resulting born a violation or alleged violation affecting the land has been of any statutory lien for services, labor or materials over the lien of the
recorded in the public records at Date of Policy. insured mortgage)arising from an improvement or work related to the land
(b) Any govemmental police power not excluded by (a) above, except to which is contracted for and commenced subsequent to Date of Policy and
the extent that a notice of the exercise thereof or a notice of a defect, is not financed in whole or in part by proceeds of the indebtedness secured
lien or encumbrance resulting from a violation or alleged violation by the insured mortgage which at Date of Policy the insured has advanced
affecting the land has been recorded in the public records at Date of or is obligated to advance. -
Po1icy. 7. Any claim, which arises out of the transaction creating the interest of the
2. Rights of eminent domain unless notice of the exercise thereof has been mortgagee insured by this policy, by reason of the operation of federal
recorded in the public records at Date of Policy, but not excluding from bankruptcy,state insolvency,or similar creditors'rights laws,that is based
coverage any taking which has occurred prior to Date of Policy which would on:
be binding on the rights of a purchaser for value without knowledge. (t) the transaction Creating the interest of the insured mortgagee being
3. Defects, liens, encumbrances, adverse claims or other matters: deemed a fraudulent conveyance or fraudulent transfer, or
(a) created, suffered, assumed or agreed to by the insured claimant; (ii) the subordination of the interest of the insured mortgagee as a result
(b) not known to the Company,not recorded in the public records at Date of the application of the doctrine of equitable subordination; or
of Policy,but known to the insured claimant and not disclosed in writing (iii) the transaction creating the interest of the insured mortgagee being
to the Company by the insured claimant prior to the date the insured deemed a preferential transfer except where the preferential transfer
claimart became an insured under this policy; results from the failure:
(c) resulting in no loss or damage to the insured claimant (a) to timely record the instrument of transfer, or
(d) attaching or created subsequent to Date of Policy(except to the extent (b) of such recordation to impart notice to a purchaser for value or a
that this policy insures the priority of the lien of the insured mortgage judgment or lien creditor
over any statutory lien for services, labor or material or the extent
CONDITIONS AND STIPULATIONS
1. DEFINITIONS OF TERMS. or desirable to esablish the tine to the esale or ir.West or the lien of the
The following temLS when used in this policy mean: insured mortgage.as insured.t the Company is preludiced by the failure iL REDUCTION OF INSURANCE REDUCTION OR TERMINATION
(a) 'insured•: the insured named in Schedule A. The term of the msaied to thanash The required coope+atiaa the cornpann Of Until=
'insured also includes- obligations to fhe insved rider the policy shall terminate.including any (a)All payments under this policy.extepf payments made for
(i) the owner of the indebtedness secured by the insured labrtiry Of obligation to defend.prosecute.or caq,nue any litigation,*A costL atlomew fees and eoenses,stall reduce the amour oll the
mortgage and each successor in ownership of the indebtedness erceai regard to the mare:or matters requiring such cooperation. muraace pro tanto.However.arty payrmis made prior to the acquisition
a successor who is an obtiga under the provisions of Section 12(c)of of bile to the estate of interest as provided in Section 2(a)of these
these Condition and stipulations (reserving. however.ail rights and S. PRW OF LOSS OR DAMAGE Conditions and Stipulai5ons shall not reduce pro tanto the amnud of the
defenses as to any successor that the Compa ry would have had against In addition to and after tie notices required under Section 3 of these insurance afforded under this policy except 10 the e>Qerd tat the payments
any predecessor insured.unless the successor ac"red the indebiC* ss Conditions and Slipublrans have been provided the Comm,a proof of reduce the amount of the indebtedness seared by the insured mortgage,
as a purchm for value without knowledge of the asserted defect ken. loss or damage signed and sworn to by the insured claimant stall be (b) Paymert in part by any person d tee principal of the
encumbrance.adverse claim or other maller insured against by This policy furnished to the Company within 90 days after the itsured claitrant shall indebtedness,or any other obligation secured by the insured mortgage.
as atecUng title to the estate or interest in the rand); ascertain the facts giviig rise to the loss of damage.The proof o1 loss or or any voluntary partial sauslachon or released the insured mortgage,
ro arry governmental agency or governmental instrunentaiay damage stag dhsadbe fhe delect;it.or item a encumbrance on the lisle. to the 011011101 the payment satistaction a release,shall reduce it*
which is an insurer or guarantor under an insurance cones or ghwairy or other matter insured against bT this policy which constitutes die basis amount of insurance fro unto.The amount:of insurance may tereafer
insuring or guaranteeing the indebtedness secured by the insured of loss or damage and shall slate.to the event possible.the basis of be imxeased by accruing interest and"Ces made to protect the lien
mortgage.or arty part thereof.whether named as an insured herein or not calculating the amount of the loss or damage.If the Company is prejudiced d the insured mortgage and secured thereby. with interest thereon.
(iii) the parties designated in Section 2(a)o1 these Conditions and by the facture of Ire inured Ua mart to womde ane required proof of loss provided in no event shall the amourt of insurance be greater flan the
Stipulations. or damage.the Company's obligations to the insured under the po:icy shall amount of insurance staled in Schedule A.
(b} -insured clainaM':an insured claiming loss a damage. terminate.including any liability a obligation to defend,prosecute.a (c) Panne d to full by any person a the volurary satisfaction or
(b) yin sure dge'a'n a lit:actual tainting o rid der alUClive Continue any iilhgation,with regard to the marer or masers requiring soar release of the issued mortgage snail terminate all lability o1 the Company
ptool 01 loss
viowledge or notice which may be imputed to an insured by reason of or damage. except as provided in Section 2(a)u%these Conditions and Stipulations.tie public records as defined in this policy a any other records which In adddiaL the insured claimant may reasonably be recurred b
mp>art toll$tlrttivE notice Of matters affecting the land. Sufrmillo examination under oath by any audgrrred represertalrue o1 the 10. L1A81LrTY NONCUMl11.Al1YE.
Ico tland`the Iced described a referred l in Schedule A.and Campy ard shall produce for examination.inspection and copying,at p1 toe rww acquires Gtle to 1ht esiax a invest in saldaction
n:prov(d) 'l a tired thereto which by law cored to i real property.The such reasoraale times and places as may be designated by any authorized of the indebtedness seared by the insured mortgage,a any W thereof.
representative of the Company, all records. boob, ledgers, checks, ft is e,rpressy understood that the amount of insurance under this policy
elm•lardd,does not include any property beyond the lines of the area correspondence and memorand&whether bearing a date before or a'ter
lesaitied a referred to in Schedule it nor any fight.Gut.interest,estate pate 01 Wt,cy,vehhdt reasonably periahm to 11te loss a dal.sage.further. stall rg reduced ge arty amount the Company may pay under any policy
x easement in atxAting streets,roads.avenues,alleys,lanes.ways or it requested by any authaved representative of the Company.the insured insirirg a mortgage to which exGepliurd is taken in Schedule B a to which
va:eiwrays.tat nothing herein shall modify a limit the eided to which a claimant shall grant its permission. in writing, fa any adthoriSed the insured has agreed.asslmed.a takers subject a which is hereafter
•!ghl of access to and from the Wand is insured by tier policy. representative d the Company to eiamine.inspect and copy an records, executed s an d of insre and whim s a charge alien on the estate a
(e) `mortgage:':mortgage.deed of 1n,st,bust deed, a olher boola.ledgers,checks.romesponl3ence and mierlaanda in the custody stalest described a relented to in Schedule A.and the amour sit paid
•sanity irtstnmert. a control of a third party.which reasonably pertain to the toss a damage.
shall be deemed a patrrdeht Wider this policy,
(0 'public recadV:records esiahbshed under state salutes at All irdomalion designated as tadidenlial by the insured claimant provided 11. PAYMENT OF LOSS.
a tie
late of Policy l purpose of imparting constructive notice of masers to th others
Company pursuax to this Section shalt not be disclosed to o {a)No payment shall be made vntho0l producing Iris Dolicy to
elating t0 real property to purchasers for value and wrdiat krhowreCge. unless,b tie reasonable judgment d the Company.d is necessary in toe endorSernent of the payment unless the policy has been lost or destroyed.
Pith respect to Section 1(agiv)o1 tie Exclusions From Coverage.'pubic administration of the claim.Failure of the insured claimant to wbtirt for in which case proof of loss or destruction stall be furnished to the
;cads'shall also include environmental protection bens hied in the examination under oath,produce other reasonably reweved inrorrtation SalhsfdCliOn 01 the Company.'_cords of the devil:of the united Sales disbid court far the ftict in a 4'u piamisvon to severe reasonably necessary tnlam torn horn third
tiich the land is baled. palhes as required in this Daagraph, unless pmribited bir Vw or (b)When liabihily and mt ederd of loss or damage has been
(g) unrrarkmbiray at the line:an alleged or apparent matter governmental regulation.shall terminate any liabilityol the Company under de5mlelr fired in accordance with these Conditions and Stipulations.the
;letting the title to the lard.not excluded or excepted from coverage. this policy as to trot claim, loss or damage shall be payable within 30 days thereafter.
Ihidh would entitle a purchaeet cl the(state or inleresl described in h '
ichedule A a niw the ired mortgage to be released from the obligation E OPTIONS TO PAT OR OTHERWISE SETTLE CLAIMS; IL SUBROGATION UPON PAYMENT OR SETTLEMENT:
t purchase by virtue of a contactual condition requiring the delivery of TERMINATION OF LUISIUTY (a)The Company's Right of Subrogatlon.
narkeable 1.110. in case of a claim under this oolicr IN ConCary shall have the Whenever tie Company shall have settled and paid a claim under
t. CONTINUATION OF INSURANCE. (a) To Pay or Tender Payment of the Amount of Insuapce of to by any act a 5V Insures Cia'"'ant.
(a)After Acquisition of Tine.The coverage of this policy shall Purchase Me Ineebtedness. The Company slhatl be suaogated 10 and be entailed to all rights
coMinue in force as of Date of Policy in lavor of(i)an insured who acquires (i) to pay of lender payment at the arvroum of Insurance under t s and remedies which the insured claimant would have had against any
III a any part of the estate a interest in Cue Ian by foreclosure.Wstee s policy together with any toss,aromeys!tees and voenses named by 0 ieq-jrson a property in respect to the clam had ails polity not been issued.
sate. conveyance in lieu o Imlosure a other legal manner which the insured clamant.which were authorizes by the Company.up to me t requested b7 the Co rid re.the insured claimant span transfer la the
Discharges the lien of me insured mortgage.Ci)a transferee of the estate time o payment a tender of payment and which the C4m0N G otalgated Company an rides and remedies against arty person a ProDerry
a interest so acquired from an mired corporation.provided me transferee to pay.a necessary order to perfect this Fight of subrogation. The insured
claimart shah permit Ire Canpary lo sue.compromise or serve in the
is the parent or wdolly•owned subsidiary at to insured corpaat,on.and ph) to purctlse the indebtedness secured by me Insured we of the insured claimant and to use the narne of the insured claimant
their corporate successes by opetaton of law W4 flat by purchase. mortgage for the amount ow thereon together w.th ary CM ananey5
subject lo any rights or defenses vise Can have against aid � °p" n any tra pay ten a litigation iatalvinp these rights a remedies.
Company may spa pry fees ant elpenses incurred by the insuretl claimant which were author;zed n a payment on account o a clam does flat folly cover the loss
predecessor insureds:and(iii)any goverrimetital agency)of goverrimentill by to Company up to the time of purchase and which the Can
Irsrrurnentatiry which acquires an a any part of she estate a Interest obliged to �`s re nee insured claimant.Ire Company shallthe
i lured aced aatr rights and
Wsuant to a contract of Istrance a guaranty insuring a guaranteeing remedies of pie Insulted claimant aver the insured claimant Shan have
pse indebtedness seared by Cie insured mortgage. t the Company otters fo purtlmase the indebtedness as Hereinrecovered�principal,interest.and costs o collection.
(b}Alter C secured a of Title.The t�gaape o this pout shall provided.the owner of the indebtedness shall transfer,assign,and convey (b)The Insuraft Rights and Umnetlons.
policy the indebtedness and the insured mortgage.logemer with any Collateral
continue In face is of Date of Policy in favor of an insured only so lag security.to nee Company aDan paY1Teer!thereto. Nolw:t standing the foregoing.the owner of the indebtedness
as the Wsued retains an estate or interest In the lard.or holds an Upon ate OVCiSe by fie Company o either of the optics provided Sacred by the g sued s en mortgage.provided the priority Ott ate hen of for
Idebtedrhess seared by a purchase maw!m mortgage given by a for in paragraaraa(i)a(ii).all liability and obtigatiasro the inshredunder '^x'"�^��pe a its abdlly a not or
may release a
purchaser ram the insured.a only so lag as ate insured shut have this policy.other than to make the payment required n those paragraphs, substitute the personal liabilityofof pry debts a guarantor.a Mee estate
te
liabdify by reason of Covenants of warranly made by the!rated in any Shag Iermin a!e.Including ary liability a Obligation lo defend.prosecute, olhenise modtry the terms DI payment.a release a portion et are agate
transfer a conveyance of the estate or interest.This policy shall not a continue apy litigation,and the policy shall be surrendered to the or interest from tile lien of the insured mortgage.a release any collateral
continue in face in Ilm of any purchaser from the insured at either(i) Canpary to cancellation. secniry la ate indebtedness.
1A7tet1 one permitted acts of me insured Claimant occur and the
an estate or interest in the land,or(n)an indebtedness secured by a (b)To Pay of Otherwise Settle With Parties Other mean the Insured wed has knowledge of any claim of title or!Merest adverse to the title
purchase money mortgage given to ate insured. Or Wcm the kamd Claimant.
(c)Amount of Insurance.The arnaril of insturarhce after tee @ to pay a otherwise serve with other parties for a in the name O the estate a e.as in u the priority Company SN11ab re of ed keno one
acquishhOrm a after the conveyance span in neither even!exceed are least of an insured GaimaM claim insured n>st order this li 1 nwred��e'se insured,the inst b shall be required 10 pay only
� �!' against policy,�� that pall o any lasses Insured against by this polity which shall tacee4
with any costs,atonteys lees and taipereses lntarred by one insured the amount.it any,lost to the Company by reason of the impairment by
(i)The arraut of insurance smled in Schedule it claiffW which were authorized by the Company up to me time o payment the insured claimant of the Company's right at subrogation.
(;l to annout of tie principal of the indebtedness secured by and which ate Company is obligated to W.or (c)The Compartys Rights Againd Mon-Insurod Obligors.
Me issued mortgage as of Date of Policy.interest tam.expenses of (ii) to pay or otherwise Seale with me Inured claimant the loss The Co mparry5 right of subrogation against non•tnsured Obligors
bwlc nl.amours advanced marwar l to the insured mortgage toassi or darhage provided for under this policy. togeher with any Costs, shalt exost and shall intrude.wimp!limitation,me rights of the insured
compliance with laws or to protect the lien of she insured mortgage prior attomeys'lees and etrpeenses incurred by Be insured claimant which were to indemngheS, guaranies. Other policies of Insurance Or bonds.
to the time of acquisition of the estate or interest in the land and secured authavze0 by the Company up to the time of payment and which the notwitstanding any perms or Condiliahs contained in those instruments
thereby and reasonable amounts etquended to prevent deterioraflan of Company is obrhga!ed to pay. which provide for subrogation rights by reason of this policy.
Improvements.but reduced by ate amount of all payments crude:or Upon the exercise by the Company at either of ate optics provided The Campaflys right of sutrogathon shall Flat be avoided by
(iii) the amount paid by any povermheritat agency or govern- lot in paragraphs b(i)or(!i),to Company's obligation to the insured acquisition of ate insured mortgage by an obligor(e(cept an obligor
mental instrumentality. If the agency or hstrulmenutity Is the insured under INS policy tot the claimed Ions or damage.other tun the payments described;n Section t(aHii)of these Conditions and Stipulations)who
claimant,in the K(Wisition of me estate or Interest in satisfaction of is required to be made,shall terminate.lincludrng any liability or obligation acquires me insured montgageas a result of an indemnity.guarantee.other
Insurance contract or gu varhty. to defend,prosecAe or Continue any litigation. policy of insurance.or bond and the obligor will not be an insured under
3 NOTICE OF CLAIM TD RE GIVEN BY INSURED 7. DETERMINATION AND EXTENT OF LIABILTTX this policy, nowtslandhng Section t(a)fil at these Card[Ions and
T Stipulations.
CLAIMANT.
This policy is a twrttract o inhdertniry against actual Rtortetary loss
The insured shall notify the Company promptly in writing(i)in case of damage sustained or insured by the insured claimant who has suffered 13. ARBITRATION.
of any litigation as set forth in Section 4(a)bekv.(ii)in case knowledge loss or damage by reason of matters Insured against by this policy and Unless"ibiled by applicable law,either the Company or the
Shall come to an issued hereunder of any claim of title or interest which only to the etent herein described_ insured may demand arbil anon pursuer!10 the Title Insurance Arbitration
Is adverse to the title to The estate or interest or the lien of the Inured (a) The liability at the Company uriM this policy shall not eived Rules of the American Arbitration Association.Arbitrable mallets may
mortgage.as insured.and which might Cause I=of damage for which the least of: Include.but are Ito limited to,any Controversy or claim between the
the Company may be liable by virtue of this policy.or(iii)all title to she (i) the amrwnt of Isuaince stated in Schedule A. or. t Company and the insured arising our of or relating to this policy.any
estate or interest or the lien of the insured mortgage.as insured.is rejected applicable.she amount of insurance as defined in Section 2(c)of these Service of the Company in connevion with is issuance or one breach of
as unmarketable-t prompt nonce state not be given to the Company.then Conditions and Stipulations: a policy provision or otter obligation.All arbitrable matters when the
as to the insured all liability of the Compaq SWI terminate with regard Amount of Insurance is S 1.000.000 or less Shan be arbitrated at the option
to the maser or masers far which prompt notice is required;pronged. (..Ii) the amour!of utpa d principal indebtedness secured by ate
however.teal failure to nohty,tee COMM sharl in no rase prejudice the Insured mortgage as limited or provided under Section 8 of these of either the Company or the insured.All arbitrable matters when the
rights of any Insured under this policy unless the Company Stuu be Cordons and Stipulation of as reduced under Section 9 of these Amount of insurance is in excess of$1.000.000 shall be arbitrated only
prejudiced by tee ailue and Men only to the extent of the prejudice- Conditions and Stipulations.at the time the loss or damage!sued against when agreed to by both the Company and the insured.Arbitration pursuant
by this policy occurs.together with interest thereon.or to this policy and under at Rules in effect on the dale t+e demand for
4_ DEFENSE AND PROSECUTION OF ACTIONS;DUTY OF (iii) use dmflerertce between the value of ate insured estate of arbitration is made or.al gee option at the insured.the Flutes in effect at
INSURED CLAIMANT TO COOPERATE. Interest as Oared and ate value of the!rated estate or interest subject Date of Policy shall be binding upon the parties.The award may include
(a) Upon written request by use insured and subsea to th options to the detect,lien or encumbrance Insured against by this policy. Voi treys'fees only it tee laws of the state in which use land is located
Contained in Section 6 of Mew Conditions and Sti lations,the Can (b) In the event the issued has acquired the estate a Merest in permit a Court lo award attorneys lees to a prevailing parry. Idgmert
the manner described in Section 2(a)of these Conditions and Stipulations upon�award tendered by me Arbrhalor(s)may be entered;n any tout
a!its avert Cost and wim0ul uaeasOflable de ay.Stall provide br the having Jurisdiction Mereal.
defense of an insured;n litigation;n which any third parry asserls a claim or has Conveyed the titre.then the liability of the Company shall continue Section 7(a)of on to a The laws of the sinus of the tat shall appy to an arbitration ruder
utverse the life a interest as inured,but as to those stated causes as set form i n these Condhuas and Sthputathons.
y c The Conn will only those cOans,amorrheys'lees and the Tice insirance Arbitration Rules.
of avian alleging a defect.lien a encumbrance a other mazer Oared () pony Dal y A copy of the Rules may be obtained Irom the Company upon
against by pus policy.The Company shall have the right lo select coUhsel expenses Incurred in accordance with Section 4 of these Conditions and request.
of is choice(subject to the right of the Oared to object for reasonable Stipulallas.
cause)to represent the insured as to those stated muses of action and 14. LLUILITY LIMITED TO THIS POLICY:
snarl rla be liable la and will not pay the tees of any other carrel.The t. LIMITATION OF LIABlUrt POucY ENTIRE CONTRACT
Compaq will not pay arty tees.casts or expenses incurred by the insured (a) t the Cw* y establishes the tile.or reproves the alleged (a)This policy together with all endorsements,t any.atlachhed
in the defense of those causes(A avian which allege matters not insured defer.Lien or encumbrance,or cures the lack of aright of access to or hereto by the Company is the entire policy and corh7act between the
aparhst by this policy. from tee land.or cures the claim of uniraketabihry of titre.or otherwise
(b)The Company shall have the right.at its own COST.to institute establishes ate lien Of the Inured mortgage.all as insured.in reasonably poured and the Compare-In interpreting any provision Of this policy.thus
and prosecute any arias a proceed:ng a to do any diner act which in diligent manner by ary rnedtod.Including litigation and the Completion o Party start be claconim of
as a whole.
its opinion maybe necessarya desirable to establish the Idle to the estate any appeals therefrom,d shall have furry Wormed Its ob[hgaf:orn with {b)Aft claim o loss ll damage, rMetthr ie root based on
or interest a tee lien of use insured mortgage.as issued.a to prevent respect to to met and gall not be liable for any loss a damage nursed m gta mortgage
o and which vises eft te the slahrS c the lien of she insured
a reduce loss a damage to the insured.The Company may take any thereby mortgage or of the titre to me estate a interest coveted hereby a by sty
app lopria•e anion user me terms of this policy.wtseTner a rid q Shan (b) Inure event of any litigation.Wuding litigation by the Campary action assertingoai such claim,shall or restricted i this polity.
be liable hereunder.and shall not thereby Concede liability a waive any a with tie Companys consent.the Company shall have no liability for less (c)NO sting endorsed
e a erdars JIMC a this policy can be made
provision Of this policy_t me Company shall exercise its rights under this or damage until there has been a final (Wermma7ion by a Cott of accept by a t.ahfg endorsed hereon a attached hereto sighted by either
paragraph,i shall do so dithgerlly eongelent jurisditlion,and tlhspostion of all appeals therefrom.adverse Dee PresdeM.a of Frltsiaent,the atory of an Assistant 'any.a
(c)V4'heneret ate Caaparty, sNII have brought an action a to the Due a lo the lien of me insured mortgage.as insured. ralida ing officer a auanorized signatory of the Company.
interposed a defense a$required or permitted by me provisions of this (c)The Company shall not be liable for loss Or damage to pry 15. SEVERABILITY.
policy.the Company pursue may any litigation to final determination by insured for liability voluntarily assumed by the insured in settling any claim In the event any provision of this policy Is held hmmlid or
a MR of Competent jumsdiction and ehpressly reserves me nigFt in its or suiLwimoull me prior written consent of the Company.
sole discoion.to appeal from any adverse judgment or order. (d)The Company shall not be liable for. unenforceable under applicable law,use polity span be deenhed not to
(d) In all cases where this policy permits a requires the Company (i)any indebtedness created subsequent lo Date of PolicyInclude mat provision and all enter provisions shall remain in nut fora
to prosecule a provide lot fuse defense of arty action a proceeding,ale for advances made to protect the lien of the insured mortgage and ew d and effect.
Isued shall secure to the Company the right to so prosecute or provide thereby and reasonable amounts overdeif lo prevent deterioration of 16. NOTICES.WHERE SENT.
defense in the action or proceeding.and all appeals therein.and permit improvements:or All notices required to be given the COmpary and pry statement
the ComrM to use.at its option.me tame of the mired to this purpose. (ii) cort"ion loan advances made subsequent to Date of
Whenever requested by me Company,the insured.at the Company's Poll except corstruction loan advances made Subsequent lo Date of of writing p required to be be addressed
me Company stag include the number
ifth
expense,shall give me Company aff reasonable aid(i)In any action a Policy,
Of this polity and shalt be addressed r the Company h h i Fast this
t Pony to ate purpose d financing n whore or!n part vise ConsruUiOn o Street Sarla And.California 927g1,a to the other hN1;Ch issued this
proceeding. securing evidence. obtaining wrtreSSM proseCuI09 Of an i riprovera"to the fat which at Date of Policy were secured by the li
defending ate action a proceeding.or electing SeTesteirl,an mortgage
d(n)in any insured and which ate insured was and continued to be obligated policy.
otter lawful act which in the opinion of the Company may L t necessary to advance at and after Dale of Policy.
oMM
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First American Title Insurance Company
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,
ALTA LOAN POLICY aR-9762990-C
(REGIONAL EXCEPTIONS)
nTLE OFFICER•JA,NIES
SCHEDULE A
TOTAL FEE FOR TITLE, EXAMINATION
AND TITLE INSURANCE$360.00
AMOUNTOFINSURANCE: $190,OW.W LOAN NO. (NONE SHOWN)
DATE OF PoucY: DECEMBER 30, 1997 AT 12:47 P. M.
I. NAME OF INSURED:
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY.
2. THE ESTATE OR INTEREST IN THE LAND WHICH IS ENCUMBERED BY THE INSURED MORTGAGE IS:
A FEE.
3. TITLE TO THE ESTATE OR INTEREST IN THE LAND IS VESTED IN:
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NON-PROFIT
CORPORATION.
4. THE INSURED MORTGAGE AND ASSIGNMENTS THEREOF.IF ANY.ARE DESCRIBED AS FOLLOWS,
A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF$190,000.00,RECORDED DECEMBER
30. 1997 AS INSTRUMENT NO. 19970670431 OF OFFICIAL RECORDS.
DATED: NOVEMBER 17, 1997.
TRUSTOR: ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A
CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION.
TRUSTEE: FIRST AMERICAN TITLE INSURANCE CO.
BENEFICIARY: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
A PUBLIC BODY.
S. THE LAND REFERRED TO 1N THIS POLICY IS DESCRIBED AS FOLLOWS:
(SEE EXHIBIT "A" ATTACHED HERETO.)
PAGE 2
r �
r ,
ALTA LOAN POLICY UR-9762990-C
(REGIONAL EXCEPTIONS)
TITLE OFFICER-IAMES
SCHEDULE B
EXCEPTIONS FROM COVERAGE
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE(AND THE COMPANY WILL NOT PAY COSTS,ATTORNEYS'FEES OR EXPENSES)WHICH
ARISE BY REASON OF:
PART I
SECTION ONE:
I. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES
OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS.
2. ANY FACTS,RIGHTS.INTERESTS,OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY
AN INSPECTION OF SAID LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF.
3. EASEMENTS.CLAIMS OF EASEMENT OR ENCUMBRANCES WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS.
4. DISCREPANCIES.CONFLICTS IN BOUNDARY LINES.SHORTAGE IN AREA. ENCROACHMENTS.OR ANY OTHER FACTS WHICH A CORRECT
SURVEY WOULD DISCLOSE,AND WHICH ARE NOT SHOWN BY PUBLIC RECORDS.
S. UNPATENTED MINING CLAIMS;RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZINGTHE ISSUANCE THEREOF;WATER
RIGHTS,CLAIMS OR TITLE TO WATER.
6. ANY LIEN,OR RIGHTTO A LIEN,FOR SERVICES.LABOR OR MATERIAL THERETOFORE OR HEREAFTER FURNISHED.IMPOSED BY LAW AND
NOT SHOWN BY THE PUBLIC RECORDS.
SECTION TWO:
1. SECOND INSTALLMENT GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 1997-1998,NOW A LIEN
NOT YET DELINQUENT; AMOUNT$1,500.51;
CODE AREA: 04-045.
A. P. NO.: 165-222-02.
2. THE LIEN OF SUPPLEMENTAL TAXES ASSESSED PURSUANT TO CHAPTER 3.5 COMMENCING WITH
SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE.
3. AN EASEMENT FOR EITHER OR BOTH POLE LINES, CONDUITS AND INCIDENTAL PURPOSES, AS SET
FORTH IN AN INSTRUMENT RECORDED IN BOOK 6630, PAGE 831 OF OFFICIAL RECORDS.
OVER: THE SOUTHERLY 2 FEET OF LOT 16.
4. A LEASE DATED MARCH 26, 1973, EXECUTED BY UNITED PROPERTIES&INVESTMENT, INC., AGENT,
AS LESSOR, AND BY WEB SERVICE CO., INC., AS LESSEE, FOR THE PERIOD AND UPON THE TERMS,
CONDITIONS AND COVENANTS THEREIN CONTAINED,RECORDED AUGUST 25, 1973 IN BOOK 10662, PAGE
548 OF OFFICIAL RECORDS, REFERENCE BEING HEREBY MADE TO THE RECORD THEREOF FOR FULL
PARTICULARS.
PAGE 3
ALTA LOAN POLICY OR-9762990-C
(REGIONAL EXCEMONS)
TPTLE OFFICER-JAMES
5. ANY RESTRICTIONS COVERING THE FUTURE USE OF THE LAND,AS DISCLOSED BY A STATEMENT FOR
A REDEVELOPMENT PROJECT, RECORDED JULY 12, 1989 AS INSTRUMENT NO. 89-368003 OF OFFICIAL
RECORDS, COVERING THE HEREIN DESCRIBED AND OTHER LAND.
6. A DEED OF TRUST, COVERING THE HEREIN DESCRIBED AND OTHER LAND, TO SECURE AN
INDEBTEDNESS OF $200,000.00, RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670428 OF
OFFICIAL RECORDS.
DATED: DECEMBER 17, 1997.
TRUSTOR: ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORPORATION.
TRUSTEE: WESTERN RECONVEYANCE COMPANY, INC., A CALIFORNIA CORPORATION.
BENEFICIARY: WESTERN FINANCIAL BANK, FSB.
7. A FINANCING STATEMENT RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670429 OF
OFFICIAL RECORDS, SHOWING
DEBTOR: ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORP.
SECURED PARTY: WESTERN FINANCIAL BANK.
DATED: (NOT SET OUT).
PAGE
ALTA LOAN POLICY OR-9762990-C
(REGIONAL EXCEPTIONS}
'ITI'LE OFFICER-]Atv1ES
SCHEDULE B
PART If
IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE,THE TITLE TO THE ESTATE OR INTEREST IN THE LAND DESCRIBED OR
REFERRED TO IN SCHEDULE A IS SUBIECT TO THE FOLLOWING MATTERS.IF ANY BE SHOWN,BUT THE COMPANY INSURES THAT SUCII MATTERS
ARE SUBORDINATE TO THE LIEN OR CHARGE OF THE INSURED MORTGAGE UPON SAID ESTATE OR INTEREST:
S. THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN A DOCUMENT ENTITLED "REGULATORY
AGREEMENT-, EXECUTED BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH, A PUBLIC BODY AND ORANGE COUNTY COMMUNITY HOUSING CORPORATION,A
CALIFORNIA PUBLIC BENEFIT CORPORATION, RECORDED DECEMBER 30, 1997 AS INSTRUMENT
NO. 19970670432 OF OFFICIAL RECORDS.
9. THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN A DOCUMENT ENTITLED "AFFORDABLE
HOUSING AGREEMENT-, EXECUTED BY AND BETWEEN ORANGE COUNTY COMMUNITY HOUSING
CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION AND THE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY OF THE STATE OF CALIFORNIA,
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670435 OF OFFICIAL RECORDS.
PAGES
ALTA LOAN POLICY OR-9762990-C
(REGIONAL EXCEPTIONS)
TITLE OFFICER-1AME3
EXHIBIT "A
ALL THAT CERTAIN LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF
HUNTINGTON BEACH, DESCRIBED AS FOLLOWS:
LOT 16 OF TRACT NO. 4301, AS PER MAP RECORDED IN BOOK 177 PAGES 11 AND 12 OF MISCELLANEOUS
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT ALL OIL, GAS, PETROLEUM, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN, UNDER
AND/OR THAT MAY BE PRODUCED BELOW A DEPTH OF 150 FEET FROM THE SURFACE OF SAID
PROPERTY, OR ANY PART THEREOF, AS RESERVED IN THE DEED FROM JOSEPH V. MADDEN AND WIFE,
TO JOSEPH GERALD MABEY AND OTHERS,DATED OCTOBER 13, 1950 AND RECORDED NOVEMBER 13, 1950
IN BOOK 2100 PAGE 411,OFFICIAL RECORDS,RECORDS OF ORANGE COUNTY,CALIFORNIA,WHICH DEED
FURTHER PROVIDES, THAT SUCH RESERVATIONS SHALL NOT ENTITLE THE SAID GRANTORS, THEIR
HEIRS AND ASSIGNS, TO ANY USE OF, OR RIGHTS IN OR TO ANY PORTION OF THE SURFACE OF SAID
PROPERTY TO A DEPTH OF 150 FEET BELOW THE SURFACE THEREOF.
PAGE 6
ALTA LOAN POLICY OR-9762990-C
(REGIONAL EXCEPTIONS)
TITLE OFFICER-IA.IIES
WARNING
"TIIE NIAP ATTACHED HERETO MY OR RIAY NOT BE A SURVEY OF THE LAND DEPICTED
THEREON. YOU SHOULD NOT RELY UPON IT FOR ANY PURPOSE OTHER THAN
ORIENTATION TO THE GENERAL LOCATION OF THE PARCEL OR PARCELS DEPICTED.
FIRST AMERICAN EXPRESSLY DISCLAIMS ANY LIABILITY FOR ALLEGED LOSS OR DAMAGE
1%111CII MAY RESLLT FROM RELIANCE LION THIS NIAP."
MS
PAGE
TRACT No. 4301
AV E NUQ
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First American Title Insurance Company
TWS KAP 1S FOR WFORMATM ONLY AND IS NOT A PART OF TMS UTLE MOENCE
Ans -Alk,05-7,02a AS-&AST
AL A'W P 1%W Ilk Ak A F WV F 1%AL P 4 a P 2 A APAL afti JAL
Form No.1056.92
(I LVI 7192)
ALTA Loan Policy ,
4r POLICY OF TITL E INSURAN CE
-1 AWIEjtj 10
C,
4-
Or
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tin!
14 i. — ISSUED BY
Ir
First American Title Insurance Company
Oaz
4r
SUBJECT TOJHE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND
V I
THE CONDITIONS AND STIPULATIONS,FIRST AMERICAN TITLE INSURANCE COMPANY,a California corporation,herein called
the Company,insures,as of Date of Policy shown in Schedule A,against loss or damage,not exceeding the Amount of Insurance OA'
4r stated in Schedule A, sustained or incurred by the Insured by reason of:
4r 1. Title to the estate or interest described In Schedule A being vested other than as stated therein; ►� 2. Any defect In or lien or encumbrance on the title;
3. Unmarketability of the title;
of access to the land; ►
4. Lack of a right
We
5. The invalidity or unenforceability of the lien of the insured mortgage upon the btle; Poll
6. The priority of any lien or encumbrance over the lien of the Insured mortgage,
7. Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material:
(a) alsing from an Improvement or work related to the land which is contracted for or commenced prior to Date
of Po!icy: or
(b) arising from an improvement or work related to the land which Is contracted for or commenced subsequent
to pate of Policy and which Is financed In whole or In part by prociedi of the Indebtedness secured by the Insured
mortgage which at Date of Policy the Insured has advanced o?is obligated to advance:
La 8. Any assessments for street improvements under construction or completed at Date of Policy which now have ajr
or gained or hereafter may gain priority over the Insured mortgage; or
94 9. The Invalidity or unenforceability of any assignment of the Insured mortgage,provided the assignment Is shown
in Schedule A,or the failure of the assignment shown in Schedule A to vest title to the Insured mortgage in the
AL named Insured assignee free and clear of all lions.
4
or
4L The Company will also pay the costs, attorneys'fees and expenses incurred In defense of the title or the lien of the Insured
mortgage, as Insured, but only to the extent provided in the Conditions and Stipulations.
s. IL
:'tea A A
A
First American 77itle Insurance Company
BY
PRESIDENT
ATTEST SECRETARY
CW
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy insurance is afforded herein as to assessments for street improve
and the Company will not pay loss or damage, costs, attorneys' fees or ments Under construction or completed at Date of Policy); or
expenses which arise by reason of: (e) resulting in loss or damage which would not have been sustained if Ili
1. (a) Any law,ordinance or governmental regulation(including but not limited Insured claimant had paid value for the insured mortgage.
to building and zoning laws, ordinances, or regulations) restricting, 4. Unenforceability of the lien of the insured mortgage because of the inabilit
regulating,prohibiting or relating to(i)the occupancy,use,or enjoyment or failure of the insured at Date of Policy, or the inability or failure of an.
of the land; (ii) the character, dimensions or location of any subsequent owner of the indebtedness,to comply with applicable Join,
Improvement now or hereafter erected on the land;(iii)a separation in business laws of the state in which the land Is situated.
ownership or a change in the dimensions or area of the land or any 5. Invalidity or unenforceability of the lien of the insured mortgage, or Clair
parcel of which the land is or was a part; or (iv) environmental thereof, which arises out of the transaction evidenced by the insure)
protection, or the effect of any violation of these laws, ordinances or mortgage and is based upon usury or any consumer credit protection o
governmental regulations, except to the extent that a notice of the truth in lending law.
enforcement thereof or a notice of a defect, lien or encumbrance 6. Any statutory lien for services, labor or materials (or the claim of priortt
resulting from a violation or alleged violation affecting the land has been of any statutory lien for services, labor or materials over the lien of tti
recorded in the public records at Date of Policy. insured mortgage)arising from an improvement or work related to the lane
(b) Any governmental police power not excluded by (a)above, except to which is contracted for and commenced subsequent to Date of Policy anc
the extent that a notice of the exercise thereof or a notice of a defect. Is not financed in whole or in part by proceeds of the indebtedness secure)
lien or encumbrance resulting from a violation or alleged violation by the insured mortgage which at Date of Policy the insured has advancer
affecting the land has been recorded in the public records at Date of or is obligated to advance.
Policy. 7. Any claim,which arises out of the transaction creating the interest of th
2. Rights of eminent domain unless notice of the exercise thereof has been mortgagee insured by this policy, by reason of the operation of feder
recorded in the public records at Date of Policy, but not excluding from bankruptcy,state insolvency,or similar creditors'rights laws,that is basec
coverage any taking which has occurred prior to Date of Policy which would on:
be binding on the rights of a purchaser for value without knowledge. (i) the transaction creating the interest of the insured mortgagee being
3. Defects, liens,encumbrances, adverse claims or other matters: deemed a fraudulent conveyance or fraudulent transfer; or
(a) created, suffered, assumed or agreed to by the insured claimant; (I i) the subordination of the interest of the insured mortgagee as a resul
(b) not known to the Company, not recorded in the public records at Date of the application of the doctrine of equitable subordination; or
of Policy,but known to the insured claimant and not disclosed in writing (iii) the transaction creating the interest of the insured mortgagee being
to the Company by the insured claimant prior to the date the insured deemed a preferential transfer except where the preferential transfe
Claimant became an insured under this policy; results from the failure:
(c) resulting in no loss or damage to the insured claimant; (a) to timely record the instrument of transfer, or
(d) attaching or created subsequent to Date of Policy(except to the extent (b) of such recordation to impart notice to a purchaser for value or
that this policy insures the priority of the lien of the Insured mortgage judgment or lien creditor.
over any statutory lien for services, labor or material or the extent
CONDITIONS AND STIPULATIONS
1. OEF1NmONS OF TERMS. or desirable to establish the title to the estate or interest or the lien of the
The following germs when used in this policy mean: insured mortgage,as insured.Ii the Company is prelydiced by the failure 9. REDUCTION OF INSURANCE;REDUCTION OR TERMINATIO
(a) Insured•: The insured named in Schedule A. The term of the ensued to furnish Cue required cooperation. the Comparrtrs OF LIABILRX
insured"also includes: obligations To the insured under the policy shall terminate.including Vy (a) Ail payrrvits Under this policy.except payments made I
(i) the owner of the indebtedness seared by One insured liability of obligation to defend.prosecute.or continue any litigal:on,with costs.atiomeyT lees and expenses."I reduce the amount of t
mortgage and each successor in ownership of the indebtedness except regard to the mairer or masers requiring such cooperation. Insurance pro canto.However,arty payments made prior to the acquisili(
a successor who is an obligor under Ile provisions of section 12(c)of of fine to to estate or imeest as provided in Section 2(a)of the.
these Condition and StipuUtions (reserving, however,all rights and 3. PROOF OF LOSS OR DAMAGE. Conditions and Slipulviora shall not reduce pro tarhto the amourhl of t
defenses as 10 any successor to the company would have had against in addition to and alter the notices required under Section 3 of these insurance a-lorded urhder this polity except to the scent that the paymen
any predecessor insured.unless the suCCessa acquired the indebtedness Conditions and Stipulations have been provided the Company.a proof of reduce the amount of the indebtedness secured by to insured mongag
as a purchaser for value without bvMedge o1 the asserted defect.lien. loss or damage signed and swan to by the Insured claimant shall be (b)Payment in pan by arty person o1 the principal of t
erhannbiance.adverse claim or other matter Insured against by this policy Wished to the Company within 90 days after the insured chimeric shall Ddebiedrhess.or any other obligaton secured by the insured motgag
as atecting title to the estate or interest in the land). ascertain the facts pmng rise to the loss or damage.The proof of toss or or any voluntary partial satisfaction or release of the insured mrorlgag
(i) any governmental agency or QWennnemdl nstrumelhlality dam shall describe the defect in.or hen or enC(rrhbrante on the title, to the aaerd of the payment.satisfaction or release.shah reduce It
which is an insurer or guarantor under an insuarhce contract or guaranty or other matter insured against by Nis policy which constitutes the basis amour of insurance pro tamo.The amount of fuamce may thewlt
Insuring or guaranteeing to Indebtedness secured by the insured of loss or damage and shall state.to the event possible,the basis of be increased by accruing interest and advances made to protect the lit
mortgage.or arty part thereof.whether maned 35 an insured herein or not. eaicui ing the amounf of the tassor damage t the Comparry Is preludnxd of tine Insured mortgage and seared thereby. with Interest the"
Vii) the parties denigrated in Section 2(a)of these Conditions and by the failure of the insured Claimant to provide the required proof of Ins provided in no event shall the amh0erd of Insurance be greater than ti
Stipulations. or damage,the Compapo dbliga:ions to the insured under the policy shall amount of insurance stated in Schedule A-
(b) -insured claimant':an Insured claiming loss a damage. terminate.including ary liability a obligation to defem.prosecute.or (c)Payment in full by arty person or to voluntary satisfaction
(C) -in�re dge•a TurowrtYI:actual claiming
d to not damcoriage.ive continue arty litigation.w-th regard to ire maser of matters requiting Such release of to insured mortgage shall terminate all liability of the Compah
knowledge or notice which may be imputed lo an insured by reason of proof of loss i damage oxCept as provided n Section 2(a)m these Conditions and 5hputatior
the public records as defined in this policy or any odw records which n addition,the nskred ctairtant may reasonably a required lo
Dmpart Wrh5lhrCtive notice at matters alectirg the lard. submit to examination ceder oat by any authorized representatne W tlhe 10. LIABILITY NONCUMULATIVE-
Impart
•land':the land t matters fl referred to In Schedule A and Cary art Shall produce for examhirwlion,inspection and Copying.all t the Insured acquires title to the estate o interest in satistacti(
Such reasonable times and places as may be designated by any authorized of the idebtedness secured by the insured mortgage.of any part there(
Improvements ar.;xed Iherelo which by law Constitute real properly_The representative of the Company. all records. books. ledgers, checks, t is expressly understood that the amount of insurance under this poli.
term W does not include any property bi the lines of the area earespordence and memoranw,whether bearing a date before or aver gull be reduced by any amount the Company may pay under any poii.
described a referred to in Schedule it riot any rigrn,title,interest.estate pate of Pblicy,which reasonably pertain to the loss of damage-Further,
o easement n abunrng streets.reads.avenues.alleys,larhes,ways a t requested by any au triorrted representative of the Company.the insured the insuringred
a has mortgage to which o t is lakefh in Schedule a is lo wait
waterways.but noming herein shall modify a limit the extPrhr to which a Claimant stall grant its permission. ill herding, for any aumoned ex insured has agreed.assumed.which
o taken Sublet.ie which is estate
ngn of access to and from the land is insured by Ins policy. representative of the Company it gamine.Inspect and copy all records. Interest
by an insured aro which c a change alien orh the estate
(e) "wgage" mortgage.deed of trust.bust deed.a met bola.ledgers,tithed¢,c rrespo n rence aW memoranda in the cwody half b described a referred to to Schedule A and the amount so pas
security insItument. a conDol of a third pary.which reasonably pertain to the loss a damage. Stmalf be deemed a payment)hexer this polity.
M 'public retards•:records established under stale stahites at Ail into iasion designated as confidential by the insured claimant provided 11. PAYMENT OF LOSS.
Dale of Policy to the purpose of irnwing constructive notice of masters to the Comlarhy pursuant to this Section shall not be disclosed to others
relating to real property to purdwsers for value and without luhowledge. unless,n the reasonable judgme i of the company.M is necessary in the (a) payment aWI unless
made wilicy producing this policy I
Will respect 10 Section I(a)(iv)of the Exclusions From Coverage.*public administration of the claim.Failure of the insured claimant to submil lot in whit cot a pre f of to unless the potion has been lost is destroyIf
records•shall also include environmental protection liens filed in the germination order oa.'In,produce other reasonably requested womnatipn s which case he Compaq.M loss a destruction shall be hrrhishetl lo I
records of the clerk of the United Swes district Court fir the district in if gram permission to secure reasombly necessary information Dom third satisfaction rh the ilityand ire lard IS located. parties as required in this paragraph. Unless prohibited by taw a @I Wfhem liability and the cures of loss a damage loos her
(g) Uvrnarvetability of the title`an alleged or apparent matter governmental regulation,gwll terminate arty liability of the Company under definitely fared In accordance wiN these Conditions and Stipulations,t
reeding the title to the land.not excluded or excepted from Coverage. this policy Is to that Claim. Inss a damage stall be payable within 30 days thereater.
which would entille a purchaser of the estate a interest described in r` — L 4 12. 31.111ROGATi01,1 UPON PAYMENT OR SETTLEMENT_
Schedule A or the insured mortgage lo be released from fie obligation 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLANS.
To purchase by virhue of a contractual condition requiring the delivery of TERMINATION OF LUIBILRIX (a) The Company's Rlgh1 of Subrogation.
marketable title. in case of a claim under this policy.Ite Company stall have the_ Wtherhever the Company shall have settled and paid a claim u nd
IOi.Oe.nu b✓-4riy ..y W•y.a....y..,v.iw.vya,.r.ya..r�i.n .•.e w. w•r��a.c�t1
1. CONTINUATION OF INSURANCE. (a) To Pay or Tender Payment of Pe Amount or Insurance or to by any an of the Insured caimam.
(a) After Acquisition of Title.The coverage of this policy shall Purchase tie IneeNedriess Tile Compaq Shan be subopa!ed 10 and be entitled to an rights
CaMirlue in We as DI Dale of Policy in taiig of(i)an insured who acquires (i) to pay Of tender payment of are artiount of irsurM under this and remedies which the insured cahmam would have had against any
all or any part of the estate of interest in the land by foreclosure,trustee's policy WNW wud!arry Costs,at omeyy Itres alb epenses iruurred by person or p requested prop"in respect Company.the M insured claiim had mant lacysha!t been
ntransferl to the
sale. conveyance in lieu o1 foreclosure a am legal manner which the Inured claimant,which were autrwrM by the Company.up b the
discharges the lien of the insured mortgage;(ii)a barttleree of the estate time of paymienl or tender of payment and which the Company is obligated Company all nights and remedies against any person or property
x interest wacquired homan insured corporation.provided the tfarsteree to pay;of necessary in order to perfect this right of subrogation. Tile cared
a the parent Of wholly-owned subsidiary of ale insured corporation.and - . (ii) le fie the indebtedness secured by toe insured Claimant stall permit the Company to sue.compromise or seine in the
mortgage lot the amount owing Meredn togetiew with any costs.attorneys' name of the insured claimant and to use the name of fie insured claimant
Teo corporate successors en operation of law and hat a mirth lase. In any transaction or Inigalion involving these rights a remedies.
subject fo am rights a defenses the Company may have against any lees and expenses incured by the insured claimant which were authorized
predecessor insureds:and(iii)any governmental agency a governmental by the Comparry up to the time of and which the Can is
t a payment On accorrt of a Claim does not Wjty�tie loss
Instrumentality which acquires all a any pan at the wale a interest obligated to pay. D Danlr of the insured claimant.me Company shall be suthWled to an rights and
Pursuarht to a contract OI insurance or guaranty insuring or guaranteeing B the afters fo the in0ebtedrhess a5 herein remedies at the Insured claimant after the insured claimant shall have
llae indebtedness sewed by the irosrr"d nTxAr►gage. Coin Phu tecovered its principal.Interest.and costs of Collection.
{eb Adel C once of Tiler.The Dry.fffe owner of are indebtedness shard transfer.assign.and comey
rlmray coverage of this policy salt the indebtedness and the insured motgage•together with any collateral (b)The Insureds Rights end Llmltations.
tbrninue in lace as of Date of Policy in lava of an insured only so lag Security.fo IN Cam Norwifhstanding the foregoing. the owner of tree indebtedness
Como"y the payment thereto. secured by the Insured mortgage. priority as the Insrr"d retains an estate a Interest n lie land.a holds an Upon the exercise the gag .provided the pr ai of the lien 01 lie
indebtedness secured by a purchase mff" mortgage rven by a by Company Oe ether of lie options provided insured mortgage a its enforceability Is not affected.may release a
g for in paragraphs dui)a(ii),all liability and obligahon510 the insured alder
purchaser front tie Isaared.or only so hasng as fie insured Wi hale pus policy,other than to node the payment required in hose paragraphs, subsifute the personal liability DJ any debtor a guarantor.or extend of
liability by reason at covenants of warranty made by the Insured in any Shan terminate.Including arty liability or obligation to defend.prosecute. otherwise modify the lerms of payment.or release a portion of the estate
transfer or conveyance of the estate or Interest This policy shall not or continue any litigation.and the policy san be surrendered to tie or littered horn the lien of the k urea mortgage.or release any cOltaletal
continue in lace in lavor at any purchaser from the insured of either(i) Company for cyaltathon security for the inbebtedness.
in estate or interest in the land.or(ii)an igebtedrtess secured by a (b)To Pay a Otherwise Settle With Parties Other than the Insured When the permitted acts of the Inured claimant occur and the
pu rhm money mortgage gimp to one insured. Insured has lowMedge of any Claim of titre a interest adverse ID the litre
or 1h:dt the Insured Claimant fo the estate a interest a the rid a enlorceabili
(c)Amount of Insurance.The amaml of Isurante alter the priority ty of tie lien of the
acquisition a aver the conveyance snarl In neidser evert exceed the least (i) to pay a otherwise setle with omen parties tor a in the rem insured mortgage.as insured.the Company shall be required to pay only
D1 of an insured Claimant any claim insured against under this policy.together tall pan Of any ICsse$insured against by this policy which$all exceed
()The amount of insurance stated in Schedule A with any fasts.atomito tees and apenses lfhtured by t sar amount
he Ined the ,a am lost to to the Company by reason of the impairment by
etaimarri which were authorized by the Company up to lase lime olpayment tk Nssred daimdnt al the Companas riphr at Subrogahpn.
(ii)the amount of the principal of IN indebtedness sewed by and which the Company is obligated to pay;or (c)fix Company's Rights Against Non inwrad Obtlgorl<
The insured mortgage as o!Date of Policy.Interest thereon,expenses W „ fo
foreclosure. (••} pay a otherwise settle with the Insured claimant the loss The Company's right of subrogarion against non-insured obli ors
r wi raw WW protect Me lien d insured Ce(I PUPSUM to the insured oage to
M or damage provided la under this policy. together with any Costs. ill erist and shall include,rthad limitalion,the fights of the insured
to the time of acquisition of the estate a interest n the land daand set rcda a rnefs'fees and expenses;incurred by the insured clairfar>f white were fo Indemnities. guaranties. other policies of Insurance a bonds.
tfhereby and reasonable amounts expended fo txeh tleteri0talecu of nhorved Me��up to the time of payment and whidh use notwift�ing an Wn a conditions contained in those Instruments
Improvements.but reduced by the van of all payments made:or CanhOartyobligated DaY which provide for subrogation rights by reason of this policy.
{ii) the amount paid h Upon Me exercise by the Company of either of the options provided The Companys fight of subrogation shall not be avoided by
by any OOverrinwa agerq a govern- for in paragraphs b(i)or(ii),the Comms obligations to the insured acquisition of the irsureq mortgage by an obligor IerceDt an obligor
mental Instrumentality. t the agency a Instrumentality is the insured leader this polity for the claimed Loss a damage.other Cal the payments described in Section 1(a)(ii)of these Conditions and Shputation5)who
Claimant,in the acquisition of the estate or interest in satxstaction of its required tp be made.shaft fermirwe.including any habihity Of Obh49*1 acquires Me insured mortgage as msuff of an indemnity.guarantee.other
ksurance Contract or guaranty. to defend,prosecute Or Continue any litigation. policy of I suuame.Or bond and the obligor will not be an insured under
S NOTICE OF CLAIM TD BE GIVEN BY INSURED 7. DETERMINATION AND EXTENT OF LIABILIM StipUthis 1po
otion, notwithstanding Section 1(a)(i) Of these Conditions orb
S.
The insured gall nohi the h err write n n Case This policy is a contract n7ad of indemnify against actual who
monetary loss
h �D�l+Dromf»Y• uxg t} a damage sustained a incurred by tine insured Claimantwho has su:fered 13. ARBITRATION.
of any litigation as set lath in Section 4(a)bPlnw•(ii)in case knowledge loss or damage by reason of matters insured against by this policy and Unless prohibited by applicable law.either the Company or the
Shan cane to an insured hereunder of any claim of title or interest which only to the extern herein described.
is adverse to the title fo the estate a interest a use lien of the insured (a) The liabilityof the �rnd�y demand arbitrationArbitration
p,ru sso to floe Tice insurance matters
mortgage.as insured.and which might cause loss a ohmage for which Cerny under this policy gall not exceed Rules of the American Arbitration y controversy
Arbitrable rtaters may
the GomDam may be liaWE by vdrlyE of this polity,a(iii)rf title fo hoe
the least of. Include.Hurl are not limited to.any controversy a train taetweerh The
estate or interest or the lien of the insured morlgage•as insured.Is rejected (i) the aanacur I of Insurance stated In Schedule A. or. t Company and the insured arising Dull of or relating to It is policy any
as unlnartoetable.t prompt nonce shalt rot be given to the Company.therh applicable.the amoorrl at insurance as defined in Section 2(c)of these Service at tx Company in connection with its issuance or the breath DI
as to tie insured all liability of the Company shall terminate with regard Tons and SlipulatiahS: a policy prevision a other obligation.All arbitrable molars when the
to the matter of matters lot which prompt notice is required;provided. (ii) use amorrt of unpaid principal indebtedness secured by the Amount of Insurance is S1,000.000 or less shall be arbitrated at the option
however:that failure to notify the Canpatry shag in ro case prejudice the Insured mortgage as limited or provided under Section 8 of few of either the Company or the Insured.All arbibable matters when the
rights of any insured under pis policy unless the Company shall be Conditions and Stipulations or as reduced under Section 9 of these Amount or Insurance is in excess o1 S1,000.000 stall be arbitrated only
prejudiced by the taaure and men only to the extern of the prejudice. Conditions and Stipulations.at the lime the loss or damage insured against when agreed to by both the Companyanb the asue0.Arbitration pursuant
by this policy occurs.together with interest thereon,of to this policy and under the Rules in effect an the date the demand for
4. DEFENSE AND PROSECUTION OF ACTIONS;DUTY OF (iii)the difference between the value of the Inured estate or arbitration is made or.at the option of the insured.the Rules in effect at
INSURED CLAIMANT TO COOPERATE. interest as insured and the value of the insured estate or imaest subject Date of Policy shall be binding upon the parties-The award may include
(a) Upon written request by the insured and subject to the options to the deject,lien of encumbrance insured against by this policy. Vomeyr fees only it the Iaws at the sate in which use land is located
contained in Section 6 of these Conditions and S!ipulabos.the Company. (b) In the event the insured has acquired the estate a interest in permit a court to award attameys lees to a prevailing party.Judgment
at its own cost and without unreasonable delay.Sharp provide tar the the manner described in Section 2(a)of these Condtions and Stipulations uDtrn the award rendered by use Arbitala(s)may be entered in any court
defense of an insured in litigation in which any third party asserts a claim or has corneyed the title.then the lability of the Company%hail continue hamlg jurisdiction Mereot.
adverse to the tine or mteresf as insured.But onryas to case scored causes as sir south in Section 74)of oiese Condo ons and Snpuhaha!$. The laws of the sibs of the land shall apply to an arbitration under
of action alleging a detect.hen or encumbrance or other maker Insured (c)The Compaq will pay only tau costs.anomeyr fees and the Title Insurance Arbitration Rules.
against by this policy_The Comm shall bare the right to select caaruel expenses inured in accordance with Section 4 of these Conditions and A Copy of the Rules may be obtained from the Company upon
of its Choice(subject to the right DI the insured to object row reasonable Stipulations. reauest-
cause)to represent the insured as to those stated causes of action and 14. LIABILITY LIMITED TO THUS POLICY;
shall riot be liable till and will not pay are Ices of am other gpuser.The a. VMITATIOAr OF LIABILITC POLICY ENTIRE CONTRACT.
Comm wall not pay any tees,Costs or expenses incurred by the insured (a) t the Company establishes the tale,or removes the alleged (a)This policy together with all endorsements.If any,attached
In the defense of pose causes of action which allege matters not insured defetL hen or encumbrance,or cues the Lack of a right of access to or hereto by the Comm is the entire policy and Mntracl between the
apairst by this policy. Irom the land.at cures tie Claim of to riarketability 01 tille.or otherwise insured and the Compare in interpreting"Provision 01 pis policy,this
(b)The Company shall lave the right.x its Own cost-to institute establishes the lien o1 the insured mortgage,an as insured.in a reasonably policyshall be Construed as a whole.
srsd proswA any action a proceeding or to OD am other act which in diligent manner by any method.mcluadhng lrhgabon and die completion of (b) Any Claim of foss a damage. whether a not based do
Its opinion may be necessary a desirable to establish the title to the estate arty a;Dea!s therefrom,I snap have fully performed its obligations wrath
a Interest of the lien of the insured mortgage,as insured.or to prevent respect to to miler and shall not be liable to any loss or damage caused negligence.and which arises oul of the Status of the lien at the insued
or reduce loss or damage to the twatred.The Company may,take arty thereby mortgage or of the tare to the estate or interest covered tweby or by any
appropriate action under the terns of this policy.whether Or not 4 shall (b) In the emrd otary litigation.incitxding litigation by the Company action asserting Such claim.shalt be restricted 10 this policy.
be liable hereunder.and shall rot thereby concede liability of waive any or with the Company's consent.me Camaany Shari have no liability for loss (C)No itmenalment at or endas&W to this policy sun be made
provision of this policy.t use Company shall exercise is rights under this or dr.We until there has been a final determination by a tout of except by a writing endorsed hereon or attached hereto signed by ether
paragraph.it%all do$0 diligently. Competent)uisdiction.and disposition Of all appeals therefrom,adverse the President.a Vice PfesiaenL the Secretary an Assistant Secretary,or
(c)%rhenterer the Company shall have brought in action a to the title a tothe hen of the insured mortgage.as Insured. validating officer or authorized sigWory of the Company.
interposed a defense as required or permitted by the provisions of this (c) The Compare snarl not be liable for Ions Or damage to any 15. SEVERABILRII
polity•the Compaq may pursue any itrgation to final determination by insured for liability voluntarily assumed by the insured in setting any claim
I Court of tompmenl)arsdiction and expressly reserves the right.in its Or Sraitw,TW me Prior written consent of the Company- In the evert any provision of this policy Is held invalid or
sole discretion.to appear from any adverse judgment of order. (d)The Company shall not be liable for: u einforceable under applicable law.the policy shall be deemed not to
(d) In all cases where this policy permits or requires the Compare (i)any indebtedness rxeated subsequent 10 Date Of Policy except dude that provision and all other provisions shah remain in lull force
to prosecute of Provide Ia the defense of any anion of proceeding,the lad>a ances made to protect use lien 01 use insured morfpape and secured and effect.
insured$hail sect"to the Company the right to so Prosecute or provide thereby and reasonable amounts expended to prevent deterioration of 18- NOTICES,WHERE SENT.
delense In the action or proceeding.and all appeals therein.and permit improvements;or
Me Company to use.at its option,the name of the insured for this purpDse- (ii)construction ban advances made subsequent fo Date Ol All notices requited to be given the Compaq and am statement
A--ever requested by the Company.the insured.at tie Company's Policy.except Construction loan advances made subsequent to Date of of arising required to be beIti addressed
the Compaq call include at
use number
Kiense.Shall give use Company all m sona5k aid(i)In arty sdxon a FtNicy$or ate purpose Of i VIC00 in whole a in part ant Castrutbon of d this policy and shall be addressed l0 use Company at 114 Fa51 Fill
proceeding. securing evidence, obtaining wdresses prosecuting or an improvement to tie alb which at Oa!e of Policy were secured by the Street.Santa Ana,California 92701,or 10 the office which issued this
Mending toe action or proceeding.or effecting settlement.3n7(ii)in any insured mortgage and which the insured was and continued to be obligated policy.
other lawful act which in the opinion of the Compare may M necessary to advance x and curer Date of Polity.
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ALTA LOAN POLICY r
OR-9762892-C
(REGIONAL EXCEPTIONS}
TITLE OFFICER-]ANIES
SCHEDULE A
TOTAL FEE FOR TITLE. EXAMINATION
AND TITLE INSURANCE S360.00
A►iOUNTOF INSURANCE; S190,000.00 LOAN NO. (NONE SHOWN)
DATE of POLICY: DECEMBER 30, 1997 AT 12:47 P. M.
I. NAME OF INSURED:
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY.
2. THE ESTATE OR INTEREST IN THE LAND WHICH IS ENCUMBERED BY THE INSURED MORTGAGE IS:
A FEE.
3. TITLE TO THE ESTATE OR INTEREST IN THE LAND IS VESTED IN:
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NON-PROFIT
PUBLIC BENEFIT CORPORATION.
a. THE INSURED MORTGAGE AND ASSIGNMENTS THEREOF.IF ANY.ARE DESCRIBED AS FOLLOWS:
A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF S 190,000.00,RECORDED DECEMBER
30, 1997 AS INSTRUMENT NO. 19970670433 OF OFFICIAL RECORDS.
DATED: NOVEMBER 17, 1997.
TRUSTOR: ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A
CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION.
TRUSTEE: FIRST AMERICAN TITLE INSURANCE CO.
BENEFICIARY: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
A PUBLIC BODY.
S. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS:
(SEE EXHIBIT W ATTACHED HERETO.)
PAGE2
ALTA LOAN POLICY '
OR-9762892-C
(REGIONAL EXCEPTIONS)
TITLE OFFICER-JAMES
SCHEDULE B
EXCEPTIONS FROM COVERAGE
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE(AND THE COMPANY WILL NOT PAY COSTS,ATTORNEYS'FEES OR EXPENSES)WHICH
ARISE BY REASON OF:
PART I
SECTION ONE:
1. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES
OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS.
2. ANY FACTS,RIGHTS,INTERESTS,OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY
AN INSPECTION Or SAID LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF.
3. EASEMENTS,CLAIMS OF EASEMENT OR ENCUMBRANCES WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS.
4. DISCREPANCIES,CONFLICTS IN BOUNDARY LINES,SHORTAGE IN AREA, ENCROACHMENTS,OR ANY OTHER PACTS WHICH A CORRECT
SURVEY WOULD DISCLOSE,AND WHICH ARE NOT SHOWN BY PUBLIC RECORDS.
5. UNPATENTED MININGCLAIMS;RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZINGTHE ISSUANCETHEREOF;WATER
RIGHTS,CLAIMS OR TITLE TO WATER.
6. ANY LIEN,OR RIGHT TO A LIEN,FOR SERVICES.LABOR OR MATERIAL THERETOFORE OR HEREAFTER FURNISHED,IMPOSED BY LAW AND
NOT SHOWN BY THE PUBLIC RECORDS.
SECTION TWO:
1. SECOND INSTALLMENT GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 1997-1998,NOW A LIEN
NOT YET DELINQUENT; AMOUNT$1,500.51:
CODE AREA: 04-045.
A. P. NO.: 165-222-07.
2. THE LIEN OF SUPPLEMENTAL TAXES ASSESSED PURSUANT TO CHAPTER 3.5 COMMENCING WITH
SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE.
3. THE EFFECT OF A LEASE BETWEEN WEB SERVICE COMPANY, INC. AND UNITED PROPERTIES
INVESTMENTS INC., WHICH WAS RECORDED APRIL 25, 1975 IN BOOK 10662, PAGE 549 OF OFFICIAL
RECORDS.
4. ANY RESTRICTIONS COVERING THE FUTURE USE OF THE LAND,AS DISCLOSED BY A STATEMENT FOR
A REDEVELOPMENT PROJECT, RECORDED JULY 12, 1989 AS INSTRUMENT NO. 89-368003 OF OFFICIAL
RECORDS, COVERING THE HEREIN DESCRIBED AND OTHER LAND.
PAGE 3
ALTA LOAN POLICY 1
OR-9762892-C
IREGIONAL EXCEPTIONS)
TITLE OFFICER-JAMES
5. A DEED OF TRUST, COVERING THE HEREIN DESCRIBED AND OTHER LAND, TO SECURE AN
INDEBTEDNESS OF $200,000.00, RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670428 OF
OFFICIAL RECORDS.
DATED: DECEMBER 17, 1997.
TRUSTOR: ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORPORATION.
TRUSTEE: WESTERN RECONVEYANCE COMPANY, INC., A CALIFORNIA CORPORATION.
BENEFICIARY: WESTERN FINANCIAL BANK, FSB.
6. A FINANCING STATEMENT RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670429 OF
OFFICIAL RECORDS, SHOWING
DEBTOR: ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA
NONPROFIT PUBLIC BENEFIT CORP.
SECURED PARTY: WESTERN FINANCIAL BANK.
DATED: (NOT SET OUT).
PAGE 4
ALTA LOAN POLICY OR-9762892-C
(REGIONAL EXCEPTIONS)
7'17LE OFFICER-lAMES
SCHEDULE B
PART If
IN ADDITION TO THE MATTERS SET FORTH IN PART 1 OF THIS SCHEDULE,THE TITLE TO THE ESTATE OR INTEREST 1N THE LAND DESCRIBED OR
REFERRED TO IN SCHEDULE A 15 SUBJECT TO THE FOLLOWING MATTERS.IF ANY BE SHOWN,BUT THE COMPANY INSURES THAT SUCH MATTERS
ARE SUBORDINATE TO THE LIEN OR CHARGE OF THE INSURED MORTGAGE UPON SAID ESTATE OR INTEREST:
7. THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN A DOCUMENT ENTITLED "REGULATORY
AGREEMENT", EXECUTED BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH, A PUBLIC BODY AND ORANGE COUNTY COMMUNITY HOUSING CORPORATION,A
CALIFORNIA PUBLIC BENEFIT CORPORATION, RECORDED DECEMBER 30, 1997 AS INSTRUMENT
NO. 19970670434 OF OFFICIAL RECORDS.
8. THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN A DOCUMENT ENTITLED "AFFORDABLE
HOUSING AGREEMENT-, EXECUTED BY AND BETWEEN ORANGE COUNTY COMMUNITY HOUSING
CORPORATION,A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION AND THE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY OF THE STATE OF CALIFORNIA,
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670435 OF OFFICIAL RECORDS.
9. A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $15,000.00. RECORDED JUNE 29, 1988 AS
INSTRUMENT NO. 88-310666 OF OFFICIAL RECORDS.
DATED: JUNE 4, 1988.
TRUSTOR: RICHARD S. SALTZMAN AND M. PENNY SALTZMAN. HUSBAND AND WIFE, AS
JOINT TENANTS.
TRUSTEE: CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH, A MUNICIPAL CORP.
NOTE 1: AN INSTRUMENT SUBSTITUTING THE TRUSTEE UNDER SAID DEED OF TRUST RECORDED APRIL
30, 1997 AS INSTRUMENT NO. 19970200268 OF OFFICIAL RECORDS.
SUBSTITUTES AS TRUSTEE: EQUITABLE DEED COMPANY, A CALIFORNIA CORPORATION.
NOTE 2: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670427 OF OFFICIAL RECORDS, EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION,TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670428 OF OFFICIAL RECORDS.
NOTE 3: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670430 OF OFFICIAL RECORDS, EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
TIIE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670433 OF OFFICIAL RECORDS.
PAGE 5
ALTA LOAN POLICY OR_9762892-C
(REGIONAL EXCEPTIONS)
TITLE OFFICER-)AMFS
10. A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $15,900.00, RECORDED JULY 14, 1988 AS
INSTRUMENT NO. 88-339411 OF OFFICIAL RECORDS.
DATED: JUNE 4, 1988.
TRUSTOR: RICIIARD S. SALTZMAN AND M. PENNY SALTZMAN, HUSBAND AND WIFE, AS
JOINT TENANTS.
TRUSTEE; CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH.
NOTE 1: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670427 OF OFFICIAL RECORDS. EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670428 OF OFFICIAL RECORDS.
NOTE 2: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670430 OF OFFICIAL RECORDS, EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670433 OF OFFICIAL RECORDS.
11. A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $12,500.00, RECORDED MARCH 16, 1989 AS
INSTRUMENT NO. 89-137622 OF OFFICIAL RECORDS.
DATED: FEBRUARY 25, 1989.
TRUSTOR: RICIIARD S. SALTZMAN AND M. PENNY SALTZMAN, HUSBAND AND WIFE, AS
JOINT TENANTS.
TRUSTEE: CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION.
NOTE 1: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670427 OF OFFICIAL RECORDS. EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670428 OF OFFICIAL RECORDS.
NOTE 2: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30. 1997 AS INSTRUMENT NO. 19970670430 OF OFFICIAL RECORDS. EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670433 OF OFFICIAL RECORDS.
PAGE 6
ALTA LOAN POLICY - OR-9762892-C
(REGIONAL EXCEMONS)
71TLE OFFICER-JAhiES
12. A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $12,500.00, RECORDED MARCH 16, 1989 AS
INSTRUMENT NO. 89-137623 OF OFFICIAL RECORDS.
DATED: FEBRUARY 25, 1989.
TRUSTOR: RICHARD S. SALTZMAN AND M. PENNY SALTZMAN, HUSBAND AND WIFE, FOR
JOINT TENANT.
TRUSTEE: CHICAGO TITLE INSURANCE COMPANY, A MISSOURI CORPORATION.
BENEFICIARY: THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION.
NOTE 1: AN INSTRUMENT SUBSTITUTING THE TRUSTEE UNDER SAID DEED OF TRUST RECORDED APRIL
30, 1997 AS INSTRUMENT NO. 19970200266 OF OFFICIAL RECORDS.
SUBSTITUTES AS TRUSTEE: EQUITABLE DEED COMPANY, A CALIFORNIA CORPORATION.
NOTE 2: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670427 OF OFFICIAL RECORDS, EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670428 OF OFFICIAL RECORDS.
NOTE 3: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670430 OF OFFICIAL RECORDS, EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670433 OF OFFICIAL RECORDS.
13. A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $25,000.00, RECORDED OCTOBER I0, 1991 AS
INSTRUMENT NO. 91-553547 OF OFFICIAL RECORDS.
DATED: SEPTEMBER 25, 1991.
TRUSTOR: M. PENNY SALTZMAN, AN UNMARRIED WOMAN.
TRUSTEE: CHICAGO TITLE COMPANY, A CALIFORNIA CORPORATION.
BENEFICIARY: CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION,
NOTE 1: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670427 OF OFFICIAL RECORDS,EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670428 OF OFFICIAL RECORDS.
NOTE 2: THE LIEN OR CHARGE OF SAID DEED OF TRUST WAS SUBORDINATED BY AN INSTRUMENT
RECORDED DECEMBER 30, 1997 AS INSTRUMENT NO. 19970670430 OF OFFICIAL RECORDS, EXECUTED BY
ORANGE COUNTY COMMUNITY HOUSING CORPORATION, A CALIFORNIA NONPROFIT PUBLIC BENEFIT
CORPORATION AND THE CITY OF HUNTINGTON BEACH, A CALIFORNIA MUNICIPAL CORPORATION, TO
THE LIEN OR CHARGE OF THE DEED OF TRUST WHICH WAS RECORDED DECEMBER 30, 1997 AS
INSTRUMENT NO. 19970670433 OF OFFICIAL RECORDS.
PAGE 7
ALTA LOAN POLICY OR-9762892-C
(REGIONAL EXCEPTIONS)
TrrLE OFFICER-JAMES
EXHIBIT 'A`
ALL THAT CERTAIN LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF
HUNTINGTON BEACH, DESCRIBED AS FOLLOWS:
LOT 11 OF TRACT NO. 4301, AS SHOWN ON A MAP RECORDED IN BOOK 177, PAGES 11 AND 12 OF
MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA.
EXCEPT ALL OIL, GAS, PETROLEUM, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN, UNDER
AND/OR THAT MAY BE PRODUCED BELOW A DEPTH OF 150 FEET FROM THE SURFACE OF SAID
PROPERTY, OR ANY PART THEREOF, AS RESERVED IN THE DEED FROM JOSEPH M. MADDEN AND WIFE
TO JOSEPH GERALD MAHEY AND OTHERS, DATED OCTOBER 13, 1950 AND RECORDED NOVEMBER 13, 1950
IN BOOK 2100. PAGE 411 OF OFFICIAL RECORDS, RECORDS OF ORANGE COUNTY, CALIFORNIA, WHICH
DEED FURTHER PROVIDES THAT SUCH RESERVATIONS SHALL NOT TITLE THE SAID GRANTORS, THEIR
HEIRS AND ASSIGNS TO ANY USE OF OR RIGHTS IN OR TO ANY PORTION OF THE SURFACE OF SAID
PROPERTY TO A DEPTH OF 150 FEET BELOW THE SURFACE THEREOF.
ALSO EXCEPTING THEREFROM ALL UNDERGROUND WATER LYING BENEATH THE REAL PROPERTY
DESCRIBED HEREIN BUT WITHOUT THE RIGHT OF ENTRY TO THE SURFACE OF SAID LAND,OR THE TOP
500 FEET THEREOF, FOR THE PURPOSE OF PRODUCING WATER, AS CONVEYED TO THE CITY OF
HUNTINGTON BEACH, BY DEED RECORDED APRIL 17, 1963 IN BOOK 6511. PAGE 679 OF OFFICIAL
RECORDS.
PAGE 8
ALTA LOAN POLICY OR-9762892-C
(REGIONAL EXCEPTIONS)
TITLE OFFICER-IAMES
WARNING
"TILE REAP ATTACHED HERETO AtAY OR AIAY NOT BE A SURVEY OF THE LAND DEPICTED
THEREON. YOU SHOULD NOT RELY LION IT FOR ANY PURPOSE OTHER THAN
ORIENTATION TO THE GENERAL LOCATION( OF THE PARCEL OR PARCELS DEPICTED.
FIRST AMERICAN EXPRESSLY DISCLAIMS ANY LIABILITY FOR ALLEGED LOSS OR DAiL1GE
111II0I MAY RESULT FRO.1I RELIANCE LT'ON TIJIS AIAP."
ms
PAGE 9
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TNIS JWAP IS FOR INFORMATION ONLY AND 15 NOT A PART OF THIS TITLE EVIDENCE