HomeMy WebLinkAboutORANGE COUNTY COMMUNITY HOUSING CORP. - 1993-12-20 �� --�
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• QIE CiTY COu""— Z O 19aREQUEST' FOR REDEVELOPMENT' AGON 47.
MY CLU I:
ED 93-49
Date: December 20. 1993 O �y
f`�
Submitted to: Honorable Chairman and Redevelopment Agency Members � `' "To`
Submitted by: Michael T. Ubueraga, Executive D' r
Prepared by: Barbara A. Kaiser, Redevelopment Director r
Subject: Approval of Loan Agreement and other Documents with Orange County
Community Housing Corporation for 313111h Street a U Ca
Consistent with Council Policy? M Yes [ ] New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments
Statement of Issue:
Staff has completed negotiations for a loan agreement with Orange County Community Housing
Corporation for the purchase of 313 llth Street from California Federal Bank. The Loan
Agreement and other documents require the approval of the Redevelopment Agency and
appropriation of funds.
Recommendation:
1) The Redevelopment Agency hereby approves Resolution No.pZy9 ., approving the Loam
Agreement, Deed of Trust, Promissory Note and other documents for the purchase of 313 11th
Street with the Orange County Community Housing Corporation, and authorizing Agency
officials to execute the documents as required.
2) The Redevelopment Agency hereby appropriates the sum of$635,000 to be loaned to the Orange
County Community Housing Corporation to purchase 313 llth Street for use as affordable
housing.
Analysis:
California Federal Bank (Cal Fed) acquired 313-11th Street, a multi-family building
with nine units, under a foreclosure action. Cal Fed has agreed to sell the building to a
non-profit corporation for use as affordable housing, with funds to be provided by the
Agency. The Orange County Community Housing Corporation (OCCHC) has
expressed interest in developing affordable: housing within the city. They are an active
non-profit organization, developing affordable housing in Orange County. OCCHC
expressed an interest in owning the building and operating it for affordable housing.
They have agreed to join with Project Self Sufficiency and make the units available on
a priority basis to PSS participants. Since the building will be debt free, the rents will
be based on the costs to operate and maintain the building only, and will be affordable
to very-low-income tenants. As the Agency Members are aware, very-low income
units are difficult to develop within the city due to land and building costs.
Agency staff and OCCHC have negotiated a Loan Agreement and other documents to
implement the purchase and rehabilitation of 313 11th Street.
The Loan Agreement contains the following pertinent sections.
1) The: building will be owned by OCCHC for operation as a 9 unit very low income
residential building. Any transfers of the building will require the approval of the
Agency. If OCCHC ceases to exist, the loan will be due or the Agency could
pursue a foreclosure action. The loan is for a period of 30 years with no interest
and can be mutually extended by both parties.
2) Priority for renting of the units will be to Project Self-Sufficiency first, to referrals
made by the Agency/City second, and to "public" qualifying households last.
3) Rehabilitation of the units up to building code will be included in the purchase price
of$635,000 with review and approval by the City's building department.
4) Rents charged will not exceed very low income standards as determined by the
Department of Housing and Urban Development (HUD) and tenants exceeding
100% of median income will be required to relocate.
5) Rental income will be used to cover operations, maintenance, utilities, property
taxes and other building related costs. OCCHC will be allowed a 6% of fair-market
rent, (as determined by the Agency), as a management fee. Any income received in
excess of this will be returned to the Agency.
6) Tenants will not be allowed to own more than one automobile.
2
Staff recommends approval of the project for the following reasons:
1) The building will provide 9 very4ow-income units.
2) The 9 very-Iow-income units will be available to PSS participants on a priority
basis. This pro,.ides a critical housing need for PSS participants. The units are
large and will contain 1 and 2 bedrooms, making them ideal for the PSS program.
3) The building has been subject to numerous citations from code enforcement and the
Building division. A complete rehabilitation of the building will eliminate these
problems in the future.
4) Cal Fed is willing to adjust the purchase price to include the costs for the
rehabilitation work. This assures that funds will be available to bring the building
into compliance with building codes.
5) The Orange County Community Housing Corporation has an excellent reputation
for operating affordable housing. They are also experienced in rehabilitating
buildings, and have already retained the services of an experienced architect. The
building will be owned and operated by OCCHC.
Funding Source:
Redevelopment housing set aside funds will be used for this project. Normal escrow
procedures will be followed.
Alternative Action:
1) Deny approval of the Loan Agreement and other documents.
Attachments:
1) PSS letter of support.
2) PSS letter re: automobiles.
3) Public correspondence.
4) Property information.
5) Building division Ietter.
6) Housing statistics.
7) Loan Agreement and other Documents.
MTU/BAK:Is
728
3
RA=47n,revestnd by
tmrTHA%11.ER Cfi^TITLE CO tPANY Lr� R., �#— �
Recording Requested By
31--MAY--1994 02=00 PM
And When Recorded Return To: Retarded in Official Records
The Redevelopment Agency of of Orange County, California
The City of Huntington Beach Lee A. Iranch, County Recorder
2000 Main Street Page 1 of 12 Fees: 1 0.00
Huntington Beach, CA 92648 ; 0.00
Attn: City Clerk
IJ �
LOAN AGREEMENT
(V �
[� THIS LOAN AGREEMENT (the "Agreement") is made this 3r ;.
day of , 19`l3 by and between Orange County Community
Housing Corp. ("Participant") and THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Agency").
*** ALSO KNOWN AS "OWNER"
RECITALS
A. Participant has entered into an agreement(the "Purchase
Agreement") to purchase that certain real property commonly known as
313 11th Street, Huntington Beach, California, and more particularly described in
Exhibit"A" attached hereto and incorporated herein (the "Property").
B. Participant requires assistance to purchase the Property and would
not be able to purchase the Property without such assistance. Participant is a
nonprofit corporation organized under the laws of the State of California.
C. Participant intends to own and operate the Property for the benefit
of very low-income families.
D. Agency desires to utilize tax increment money to assist persons of
low income to purchase residential property to increase, improve, and preserve
low-income housing available at an affordable housing cost within the City of
Huntington Beach, all of which is consistent with the goals of the Affordable
Housing Program and the Huntington Beach Redevelopment Plan.
E. The Agency wishes to lend, and Participant wishes to borrow,
Program funds to assist Participant to purchase the Property upon the terms and
conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration the parties
agree as follows:
1. 8aency_Loan. Agency shall loan to Participant (the "Loan")
the amount of Six Hundred and Thirty-Five Thousand Dollars ($635,000), subject
to the conditions and restrictions set forth herein, the Promissory Note, the
Disclosure Statement, the Deed of Trust and all applicable state, local and
federal law. The Loan shall be paid to the seller of the Property (the "Seller') by
the Agency through deposit of the Loan proceeds into escrow with
Co+r.wte m CstYow- is (the "Escrow Agent") (Escrow No.
113-Ig G aS 1. The Agency shall direct the Escrow Agent to apply the proceeds
of the Loan on behalf of Participant to the purchase price of the Property, and, at
Participant's election, to the costs of closing, escrow fees, recording fees, loan
points and fees, and/or document fees. The Escrow Agent will be required to
hold in escrow funds sufficient to cover the costs of rehabilitation of the building
to bring the building into conformity with building and safety codes as determined
by the City of Huntington Beach building inspector. The amount will be mutually
agreed to by both parties with further direction to be provided to the Escrow
Agent. At such time, Participant shall execute and deliver to the Agency a
promissory note in favor of the Agency as holder, in the amount of the Loan.
The Loan shall be due in thirty years or in the event that Participant fails to
comply with the terms of this Agreement. Participant shall execute and deliver a
Promissory Note substantially in the form of the Promissory Note attached hereto
as Exhibit"B" and incorporated herein by this reference. Participant shall also
execute and deliver to the Agency a deed of trust encumbering the Property
which shall secure the Promissory Note (the "Deed of Trust"), in the form of
Exhibit"C" attached hereto and incorporated herein.
2. Maintenance of Propedy. Participant shall maintain the
improvements on the Property in a manner consistent with community standards
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7%agenryk21121131931B 10:44 AM
and in a manner which will uphold the value of the Property, and shall keep the
Property free from any accumulation of debris and waste materials. Failure to do
so will be considered breach of this loan agreement; the Note will be due
immediately.
3. Arceleration/Due gn 9ale. The Loan shall be due and payable
upon: (i) such sale, transfer, or other disposition of the Property, except sale to a
purchaser approved by Agency, (ii) Participant being in material default of any
other obligation contained in this Agreement, (iii) Participant violating any
condition of the deed of trust or promissory note, (iv) Participant ceasing to exist
as a nonprofit organization, or {v) on the thirtieth annual anniversary date of the
date of execution of this agreement..
4. Notice to Agency. Participant agrees to notify the Agency not less
than thirty (30) days prior to the sale or transfer of the Property.
5. Occupancy Standard. The Property shall be used as a rental
property. First priority of units shall be for participants in the Project Self-
Sufficiency program_ Second priority in renting shall be for tenants referred by
the City of Huntington Beach. Third priority will be for any very low-income
household applying for occupancy of a unit. 'Very low income" shall have the
same meaning as used in the standards and regulations promulgated by the
United States Department of Housing and Urban Development (H.U.D.).
6. Income Information.Particiant agrees to rent all nine (9) units to
very low-income households. Households which qualify at time of rental as "very
low income" but later reach an income in excess of One Hundred Percent
(100%) of median income as defined by HUD will be required to vacate the units.
7. Ea-r lII9. Participant shall not rent any unit to a household owning
more than one automobile.
8 Betoca i r . The Participant agrees to hold harmless the Agency
from any claims for relocation benefits made by previous residents of the
property. Any award or judgment arising out of any claim for relocation benefits,
along with attorney's fees and costs of defense to the Agency shall be paid by
Participant.
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7lagencyk2l12113/33.810:44 AM
9. Operation and Maintenance. Participant shall be required to
expend rental income for the operation and maintenance of the building.
Participant is entitled to earn six percent (6%) of fair market rent (as determined
by the Agency) for each unit as a management fee. Any rental income received
and not required for operation, maintenance, taxes, utilities, management fee,
etc., shall be returned to the Agency. Agency retains the right to request an
audit of Participant's records and accounts kept for the property and upon such
request, Participant agrees to supply Agency with all documentation reasonably
necessary for the audit to be accomplished.
10. Non-_Discrirninatiuri. There shall be no discrimination against or
segregation of, any person, or group of persons on account of race, color, creed,
religion, sex, marital status, ancestry or national origin, in the sale, lease,
sublease, use, occupancy, tenure or enjoyment of the premises, nor shall the
transferee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees or vendees of the premises.
The covenants established in this Agreement and the deeds of
conveyance for the property shall, without regard to technical classification and
designation, be binding upon the Participant, its successors and assigns,
together with any property acquired by the i'articipant pursuant to this
Agreement, or any part thereof. The covenants against discrimination shall
remain in effect for the life of the project.
11. Unit 5ize, The Project currently has four two-bedroom units and
five one-bedroom units. No change may be made to the number of bedrooms in
each unit without prior written consent of the Agency and the City of Huntington
Beach.
12. Non-Waiver. Failure to exercise any right the Agency may have or
be entitled to, in the event of default hereunder, shall not constitute a waiver of
such right or any other right in the event of a subsequent default.
13. Indemnification. The Participant shall defend, indemnify and
hold harmless the Agency and the City of Huntington Beach and its respective
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7lagencyk2/1 211 3/9 3JB 10:44 AM
officers, agents, employees, representatives and volunteers from and against
any loss, liability, claim or judgment relating in any manner to the Property of this
Agreement. The Participant shall remain fully obligated for the payment of
property taxes and assessments related to the Property. There shall be no
reduction in taxes for Participant, nor any transfer of responsibility to the Agency
to make such payments, by virtue of the Loan.
14. Ins r�� ante. Participant shall maintain, during the term of the
Agency Loan, an all-risk property insurance policy insuring the Property in an
amount equal to the full replacement value of the structures on the Property.
The policy shall name the Agency as loss payee and shall contain a statement of
obligation on behalf of the carrier to notify the Agency of any material change,
cancellation or termination of coverage at least thirty (30) days in advance of the
effective date of such material change, cancellation or termination. Participant
shall transmit a copy of the certificate of insurance and loss payee endorsement
to Agency within thirty (30) days of the effective date of this Agreement, and
Participant shall annually transmit to Agency a copy of the certificate of
insurance and a loss payee endorsement, signed by an authorized agent of the
insurance carrier setting forth the general provisions of coverage. The copy of
the certificate of insurance and loss payee endorsement shall be transmitted to
Agency as follows:
REDEVELOPMENT AGENCY OF THE
City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Any certificate of insurance must be in a form approved by the City
Attorney.
15. pefau4ts. Failure or delay by either party to perform any term or
provision of this Agreement which is not cured within thirty (30) days after receipt
of notice from the other party constitutes a default under this Agreement;
provided, however, if such default is of the nature requiring more than thirty (30)
days to cure, the defaulting party shall avoid default hereunder by commencing
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T%agencyQJ121131931810:44 AAA
to cure within such thirty (30) day period and thereafter diligently pursuing such
cure to completion. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and shall complete
such cure, correction or remedy with diligence.
The injured party shall give written notice of default to the party in
default, specifying the default complained of by the injured party. Except as
required to protect against further damages, the injured party may not institute
proceedings against the party in default until thirty (30) days after giving such
notice. Failure or delay in giving such notice shall not constitute a waiver of any
default, nor shall it change the time of default.
16. Dorumut . Participant is aware that the Agency has prepared
certain documents to implement the Program and secure repayment of the Loan.
Participant has reviewed and agrees to execute the following documents prior to
receiving the Loan:
(a) Disclosure Statement
(b) Promissory Note
(c) Deed of Trust
Participant agrees and acknowledges that the Deed of Trust and
Disclosure Statement shall be recorded with the County Recorder of the County
of Orange and shall appear of record with respect to and as encumbrances to
the Property.
Participant further agrees to all terms and conditions set forth in the
Disclosure Statement which is hereby incorporated as if fully set forth herein.
17. Fu-rther-Assurances. The Participant shall execute any further
documents consistent with the terms of this Agreement, including documents in
recordable form, as the Agency shall from time to time find necessary or
appropriate to effectuate its purposes in entering into this Agreement and making
the Loan.
18. Governina Law. This Agreement shall be governed by the taws
of the State of California. Any legal action brought under this Agreement must
be instituted in the Superior Court of the County of Orange, State of California, in
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Tagencyk211 211 319 31B10:44 AM
an appropriate municipal court in that county, or in the Federal District Court in
the Central District of California.
19. Amendment of Agreement. No modification, recission,
waiver, release or amendment of any provision of this Agreement shall be made
except by a written agreement executed by the Participant and Agency.
20. Agency May 6 ian. Agency may, at its option, assign its
right to receive repayment of the loan proceeds without obtaining the consent of
the Participant.
21. Assumption Permitted!Assignment Prohibited. In no event shall
Participant assign or transfer any portion of this Agreement without the prior
express written consent of the Agency, which consent may be given or withheld
in the Agency's sole discretion. Assumption of the Loan shall be permitted, if
consent is given by Agency. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
22. tire Agreempm . This Agreement constitutes the entire
understanding and agreement of the parties. This Agreement integrates all of
the terms and conditions mentioned herein or incidental thereto, and supersedes
all prior negotiations, discussions and previous agreements between the Agency
and the Participant concerning all or any part of the subject matter of this
Agreement.
23. Relationship of Participant and Agency. The relationship of
Participant and Agency pursuant to this Agreement is that of debtor and creditor
and shall not be, or be construed to be a joint venture, equity venture,
partnership, or other relationship.
24. NoticCs. Any notices, requests or approvals given under this
Agreement from one party to another may be personally delivered or deposited
with the United States Postal Service for mailing, postage prepaid, registered or
certified mail, return receipt requested to the following address:
7
7lagencyk2112/13/93A310A4 AIA
To participant: Orange County Community Housing Corp.
Attn: Executive Director
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
To Agency: THE REDEVELOPMENT AGENCY OF
The City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Either party play change its address for notice by giving written
notice thereof to the other party.
25• Ierm-of Agreement, Except as may be provided herein, the
term of this Agreement is thirty (30) years commencing on the date of execution.
Both parties may mutually agree to extend this Loan Agreement and other
related documents. If the Loan Agreement is not extended, the loan amount and
the note will be due and payable.
8
7%agencyk2f12113I931610:44 AM
w-
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.SM
State of
California OPTIONAL SECTION
CAPACITY CLAIMED BY SIGNER
Count j Of Orange Though acute does not require me Notary fo
fill in the data below,doing so may prove
12/14/93 Sheila A. Rogers , Notary Public Invak�1D persons'�on� '
docurnent
On before me, ®DATE NAME.TITLE OF OFFICER-E.G.,:IAtIE DOE,NOTARY PUBLIC' INDIVIDUAL
Allen P. Baldwin ❑CORPORATE OFFICER(S)
personally appeared NAMEI5u OF SIGNERIS) TITLE(S)
❑"per;r�r �Flcr�ts�r�oxrr�Ytt-[� proved to me on the basis of satisfactory evidence ❑PARTNER(S) LIMITED
to be the person(s) whose name(s) ishusc ❑ GENERAL
subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT
knowiedged to me that heR NKMey�executed TRUSTEE(S)
OFFICIALSEAI the same in his/her/their authorized
M+ SHCIUI ANN ROGERS ❑GUARDIAN,'CONSEAVATOR
u ii b his/her/their
Notary Pubic�onrla capacty( es), and that y sertheir OTHER:
� __o�Eiq*� signature(s) on the instrument the persor>(s),
fit•t� or the entity upon behalf of which the
Octoberperson(s)acted,executed the instrument.
SIGNER IS REPRESENTING:
WITNESS my hand and official seal. NAME.of PERSONts)OR ENTITY(TES)
D
SIGNATURE OF NOTARY
OPTIONAL SECTION
_THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT Loan Agreement
THE DOCUMENT DESCRIBED AT RIGHT:
I NUMBER OF PAGES 9 DATE pF DOCUMENT December 14 , 1993
Though the data requested here is not required by toy.
It could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE
D1993 NATIONAL NOTARY ASSOMATION-SM Remmet Ave..P.O.f3os 7184-Canoga Pam CA 91309-7184
IN WITNESS WHEREOF the parties have executed this Agreement as of
the day and year written below
PARTICIPANT"AKA OWNER
ORANGE COUNTY COMMUNITY HOUSING CORP
Date C By
Print Name Aupki 'r�►-- Q/�/U
Title �'yC�Ct7Tt VE tC
Date By
Print Name
Title
e
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH a
municip4l ccT oration
Date c 2-3 , kct`z
Print Name �1n�1Q T l�bo�cuuc�
Its >�ce ►er,cczu
APPROVED AS TO FORM
By
�7GAIL HUTTON
City orn /A ency Counsel
1 9
7\agencyk2/12/13/93/1310 44 AM �Z 3 -91
EXHIBIT "A"
(LEGAL DESCRIPTION)
LOTS 13 AND 15 IN BLOCK 311 OF HUNTINGTON BEACH, IN THE CITY OF
HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER
MAP RECORDED IN BOOK 3 PAGE 35 OF MISCELLANEOUS MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.snao
State cf
California ��■�OPTIONAL SECTION
•�
CAPACITY CLAIMED BY SIGNER
County of Orange TMAh stat•,,te does not require the Notary to
fill in the data below.doing so may prove
On=1. 23i9, beforeme, Sheila A. Rogers, Notary Public kr4akk9*1opersons " on thedomwwn
DATE NAME.TITLE OF OFFICER-E.G..JANE DOE.NOTARY PUBLIC- ❑INDIVIDUAL
Michael T. Uberuaga, City Administrator UCORPORATEOFFICER(5}
personally appeared City Administrator
NAME(S)OF SIGNERI5) TITLEISI
personally known to me-ORY ❑PARTNER(S) LIMITED
to be the person(N) whose name(s') is/90e GENERAL
subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT
knowledged to me that he/she/they executed ❑TRUSTEE(s)
the same in his/ P.tt aIK authorized GUARDIAWCONSERVATOR
' SHEILAANN ROG I4Gx
ERS capacity(It), and that by his/kn(RmIT
Not��E forroc signature" on the instrument the personiGSx, OTHER:
i or the entity upon behalf of which the
0cfpK 31.19
person(s) acted,executed the instrument.
SIGNER IS REPRESENTING:
WITNESS my hand and official seal. NAME OF PERSON(Sl OR ENTTTY(JES)
0
I
SIGNATURE OF NOTARY CS
�= OPTIONAL SECTION
THIS CERTIFICATE MUST SE ATTACHED TO TITLE OR TYPE OF DOCUMENT Loan Ag r e ert e n t
THE DOCUMENT DESCRIBED AT RIGHT:
NUMBER OF PAGES g DATE OF DOCUMENT Dec. 23 , 1993
Though V a data requested here is riot required by law.
N could pruvent fraudulent reattachment of this toms. SIGNER(S)OTHER THAN NAMED ABOVE
State of Caurgrnia
County of �/ # + .
on 12, ZA 19 before me N S
perrsson�ally appear
'r
personally known to me (or proved to me on the basis of satisfactory
evidence) to be the persons ame(s) is/are subscribed to the OFFICIAL SEAL
within instrument and ackn lodged to a that helshelthey executed the
same in hislher/their aut prized eapa ly(ies)and that by his/her/their M. B.JENNINGS
signalurem on the inst meni the per. n(s).or the entity upon behalf of o yf. NOTARY P@t3LIC-CALIFORNIA
which the person(s)ac d,executed a instrument. PRINCIPAL OFFICE IN
W1 my nd fficial se ` ' LOS ANGLES COUNTY
My Commtsslon rxplros Feb. 24. 1995
Signature
Name or Printed) .
Notary Public in and for said County and State
FOR NOTARY SEAL OR STAMP
D" # 93-0913228
Reccralir3rcquWtcdby 30—BEC-1993 01 :43 PM
fIC11THA,t.RICANTITLECJ 01FANY
Recorded in Gffici;l Reccrds
RECORDING REQUESTED BY ) of Orange County, California
AND WHEN RECORDED RETURN TO: ) Lee I;. Franrh. County Fe.order
olAi{ 0f 4(e 64je Clout ) Fa32 i of 1i rees: 1 ox.r.
ncy of the City of. ) Tax: S 4.('C.
Huntington Beach )
2000 Main Street )
Huntington Beach, California 92648 )
Attn: City Clerk )
[Space Above This Lune For Recorder's Use-)
This document is exempt from
recording fees pursuant to
Gctiemment Coda Section 6103.
QEEn OF TRUST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST is made this day of KC , 1993, by and among
ORANGE COUNTY COMMUNITY HOUSING CORP., whose address is 1833 E. 17th Street,
Suite 207, Santa Ana, California 92701 (the "Trustor") and THE CITY OF HUNTINGTON
1 BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH, a public body corporate and politic(the
'BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648.
N
M WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to
Trustee, in Trust, with Power of Safe, that property in the City of Huntington Beach, County of
Orange, State of California, described legally in the Legal Description attached hereto as
Exhibit"A"and incorporated herein.
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or
hereafter placed thereon, it being understood and agreed that all classes of property attached
or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and
profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d)
all sums of money payable on the purchase price of said property secured by a lien thereon or
payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power
and authority hereinafter given to and conferred upon Beneficiary to collect and apply such
rents, issues and profits, and all sums of money payable on the purchase price of said property
secured by a lien thereon or payable under any agreement.
A. FOR THE PURPOSE OF SECURING:
1. Payment of the sum of Six Hundred Thirty-Five Thousand Dollars ($636,000)
with interest thereon according to the terms of a Promissory Note of even date herewith, made
by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof.
2. Payment of such additional sums with interest thereon as: (a) may be hereafter
borrowed from the Benefi-.iary by the then record ovrner or owners of said property when
rDEEDRENM12113/93M Page 1 of 9
i
evidenced by another Promissory Note or Notes, or(b) as may be added to the indebtedness
secured hereby in accordance with the provision of this Deed of Trust.
3. Performance of each and every obligation, covenant, promise or agreement of
Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated
'hi6c-- 2-3 13 , 1993, insofar as the terms and conditions of that agreement may apply to
Trustor.
4. Payment, with interest thereon, future indebtedness or obligation of the Trustor
(or of any successor-in-interest of the Trustor to said property)to the Beneficiary,whether
created directly or acquired by assignment, whether absolute or contingent,whether due or not,
whether otherwise secured or not, or whether existing at the time of the execution of the Deed
of Trust, or arising thereafter.
B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
1. To keep said property in good condition and repair; to allow Beneficiary or its
representatives to enter and inspect the premises at all reasonable times and access thereto,
shall be permitted for that purpose; not to remove or demolish any building thereon; not to
make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in
the general nature of the occupancy of the premises without Beneficiary's written consent; to
complete or restore promptly and in good workmanlike manner any building which may be
constructed, damaged or destroyed thereon, including, without restricting the generality of the
foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed
and materials furnished in connection with such property and not to permit any mechanic's lien
against such property; to comply with all laws affecting such property or requiring any
alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning
reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not
to commit, suffer or permit any act upon such property in violation of the law; and to paint,
cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use
of said property may be reasonably necessary; to promptly pay all amounts due others upon
agreements of lease or conditional sale of all fixtures, furnishings and equipment located
thereon.
If the loan secured hereby or any part thereof is being obtained or should any
additional loan be made hereafter for the purpose of financing rehabilitation improvements on
said property, Trustor further agrees, anything in this Deed of Trust to the contrary
notwithstanding; (a) to complete the same in accordance with City approved plans and
specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all
times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary
within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice
may be given to Trustor by registered or certified mail, sent to his last known address, or by
personal service of the same; (d)that work shall not cease on the rehabilitation of such
improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether
consecutive or not, without the written permission of the Beneficiary; (e)to pay when due all
claims of labor and materials furnished in connection with the said rehabilitation and not to
permit any claims of I:en for said work or materia!to be filed of record against the property; (f)
not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a
larger tract upon which improvements will be constructed, Trustor shall make
MEEDRENM2113MM Page 2 of 9
separate contracts and subcontracts for said construction which shall pertain to the said
property only and shall keep separate, full and complete records of all work and materials
furnished to the said property. Trustee upon presentation to it of an affidavit signed by the
Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized
to accept as true and conclusive all facts and statements therein, and to act thereon hereunder.
2. To provide, and maintain in force at all times with respect to said property, fire
and other types of insurance as may be required by Beneficiary. All of such insurance shall
have a toss payable endorsement in favor of Beneficiary, shall be for a term and in form,
content, amount and in such companies as may be satisfactory to Beneficiary, and the policies
therefor shall be delivered to and remain in possession of Beneficiary as further security for the
faithful performance of these trusts. At least thirty (30)days prior to the expiration of any
insurance policy, a policy or policies renewing or extending such expiring insurance shall be
delivered to Beneficiary together with written evidence showing payment of the premium
therefor and, in the event any such insurance policy and evidence of the payment of the
premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed
of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without
obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from
any obligation hereof, may obtain such insurance through or from any insurance agency or
company acceptable to it, pay the premium thereof, and may add the amount thereof to the
indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may
furnish to any insurance agency or company, or any other person, any information contained in
or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any
information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be
responsible for such insurance or for the collection of any insurance monies, or for any
insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is
hereby authorized either(a) to settle and adjust any claim under the insurance policies provided
for in this document without the consent of the Trustor, or (b)to allow Trustor to agree with the
insurance company or companies on the amount to be paid upon the loss. In either case, the
Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is
obligated to restore or replace the damaged or destroyed buildings or improvements under the
terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such
damage or destruction does not result in cancellation or termination of such lease, such
proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be
used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or
improvements on said premises. In all other cases, such insurance proceeds, at the option of
the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether
due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and
used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or
improvements on said premises. Such buildings and improvements shall be so restored or
rebuilt as to be of at least equal value and substantially the same character as prior to the
damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application
or release shall not cure or waive any default or notice of default hereunder or invalidate any act
done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and
pass to the purchaser of, the property conveyed at any Trustee sale held hereunder.
3. To pay: (a) at least ten (1 D) days before delinquency, all general and special
City and County taxes, and all assessments on appurtenant water stock, affecting such
property, (b)when done, all special assessments for public improvements, without permitting
71DEEDRENT112NV9318 Page 3 of 9
t
any improvement bond to issue for any special assessment (c) when done all encumbrances
charges and lines with interest on said property or any part thereof which are or appears to
be prior to superior hereto (d) if the security of this Deed of Trust is leasehold estate to make
any payment or do any act required of the Lessee or its successor in interest under the terms of
the instrument or instruments creating said leasehold (e) all costs fees and expenses of this
trust (f) for any statement regarding the obligation secured hereby any amount demanded by
Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is
made (g) such other charges for services rendered by Beneficiary and furnished at Trustor's
request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable
If by the laws of the United States of America or of any state having jurisdiction over
the Trustor any tax is due or becomes due in respect to the issuance of the Note hereby
secured the Trustor covenants and agrees to pay such tax in the manner required by such law
Should Trustor fail to make any such payment Beneficiary may elect to make such payment
Beneficiary may elect to make such payment and any amount so paid may be added by
Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest
4 That should Trustor fail to make any payment or do any act as provided in this
Deed of Trust the Beneficiary or Trustee but without obligation to do so and without notice to
or demand upon Trustor and without releasing Trustor from any obligation hereof may (a)
make or do the same in such manner and to such extent as either may deem necessary to
protect the security hereof Beneficiary or Trustee being authorized to enter upon said property
for such purposes (b) commence appear in or defend any action or proceeding purporting to
affect the security hereof or the property covered by this Deed of Trust or the rights or powers
of Beneficiary or Trustee (c) pay purchase contest or compromise any encumbrance charge
or lien which in the judgment of either is or appears to be prior or superior hereto and (d) in
exercising any such powers pay necessary expenses employ counsel and pay his reasonable
fees Trustor agrees to repay any amount so expended on demand of Beneficiary and any
amount so expended may be added by Beneficiary to the indebtedness secured hereby and
shall bear a like rate of interest
5 To appear in and defend any action or proceeding purporting to affect the
security hereof or the property which is covered by this Deed of Trust or the rights or powers of
Beneficiary or Trustee and whether or not Trustor so appears or defends to pay all costs and
expenses including cost of evidence of title and attorneys fees in a reasonable sum in any
such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made
a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in
such property id directly questioned by such action including any action for the condemnation
or partition of said premises and in any suit brought by Beneficiary to foreclose this Deed of
Trust
6 To pay immediately and without demand all sums expended under the terms of
this Deed of Trust by Beneficiary or Trustee with interest from the date of expenditure at the
rate which the principal obligation secured hereby bears at the time such payment is made and
the repayment of such sums shall be secured hereby
7 That should the Trustor or any successor in interest to Trustor in such property
drill or extract or enter into a lease for drilling or extraction of oil gas or other hydrocarbon
substances or any mineral of any kind or character or sell convey further encumber or
7\DEEDRENT\12/13/93/13 Page 4 of 9
alienate said property, or any party thereof, or any interest therein, or be divested of his title or
any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall
have the right, at its option,to declare any indebtedness or obligations secured hereby
irrespective of the maturity date specified in any Note evidencing the same, immediately due
and payable, and no waiver of this right shall be effective unless in writing.
8. That any award, settlement or damages for injury or damages to such property,
or in construction with the transaction financed by such loan, and any award of damages in
connection with any condemnation for public use of or injury to said property, or any part
thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such
monies received by it in such manner and with the same effect as above provided for the
disposition of proceeds of fire or other insurance.
9. That, by accepting payment of any sums secured hereby after its due date, or by
making any payment, performing any act on behalf of Trustor, that Trustor was obligated
hereunder, but failed,to make, or perform, or by adding any payment so made by Beneficiary to
the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt
payment when due of all sums so secured or to declare a default for failure so to pay.
10. That at any time, or from time to time, without liability of the Beneficiary or
Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this
Deed of Trust and any Note secured hereby for endorsement, and without affecting the
personal liability of any person for payment of the indebtedness secured hereby, or the lien of
the Deed of Trust upon the remainder of said property for the full amount of the indebtedness
then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with
respect to the remainder of said property, Trustee may: (a) reconvey any part of said property,
(b) consent to the making of any map or plat therecf, (c)join in granting any easement thereon,
(d)join in any agreement subordinating the lien or charge hereof.
11. That the lien hereof shall remain in full force and effect during any postponement
or extension of time of payment of the indebtedness secured hereby, or any part thereof.
12. That, upon written request of Beneficiary stating that all sums secured hereby
have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for
cancellation and retention, and upon payment of its fees,Trustee shall reconvey, without
warranty, the property then held hereunder. The recitals in such reconveyance of any matters
of fact shalt be conclusive of the truthfulness thereof. The grantee in such reconveyance may
be described as "the person or persons legally entitled thereto." Such request and
reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned
to Beneficiary. Five (5)years after issuance of such full reconveyance, Trustee may destroy
said Note and this Deed of Trust(unless directed in such request to retain them).
13. That as additional security,Trustor irrevocably assigns to Agency the rents,
issues, and profits of the property affected by this Trust Deed for the purposes and upon the
terms and conditions set forth below. This assignment shall not impose upon Agency any duty
to produce rents from the property affected by this Trust Deed, or cause Agency to be (a)
"mortgages in possession"for any purpose; (b) responsible for performing any of the
obligations of the lessor under any lease; or(c)responsible for any waste committed by lessees
or any other parties, for any dangerous or defective condition of the property affected by this
MEEDRENW211"38 Page 5 of 9
.r
Trust Deed, or for any negligence in the management, upkeep, or control of such rights to
rents, issues and profits is not contingent upon, and may be exercised without possession of,
the property affected by this Trust Deed.
Agency confers upon Trustor a license ("License") to collect and retain the rents, issues
and profits of the property affected by this Trust Deed as they become due and payable, until
the occurrence of a default hereunder. Upon such default, the License shall be automatically
revoked and Agency may collect and retain the rents, issues and profits without notice and
without taking possessions of the property affected by this Trust Deed. This right to collect
rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as
otherwise provided herein; and neither said right, nor termination of the License, shall impose
upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of
the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to
collect any such money shall cease and Beneficiary shall have the right, with or without taking
possession of the property affected hereby, to collect all rents, issues, royalties and profits and
shall be authorized to, and may, without notice and irrespective of whether declaration of
default has been delivered to Trustee and without regard to declaration of default has been
delivered to Trustee and without regard to the adequacy of the security for the indebtedness
secured hereby, either personally or by attorney or agent without bringing any action or
proceeding, or by receiver to be appointed by the Court, enter into possession and hold,
occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain
and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive
and collect all or any part of the said rents, issues, and profits of the property affected hereby,
and after paying such costs of maintenance, operation of said property, and of collection
including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the
balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of
said property being hereby assigned to Beneficiary for said purposes. The acceptance of such
rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee
or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or
discontinuance by Beneficiary at any time, or from time to time, to collect any such rents,
issues, royalties or profits shall not in any manner affect the subsequent enforcement by
Beneficiary of the right, power and authority to collect the same. The receipt and application by
said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution
and delivery of declaration of default and demand for sale as hereinafter provided, or during the
pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not
affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues,
royalties and profits, less all costs of operation, maintenance, collection and reasonable
attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness
secured hereby, from time to time, in such order as Beneficiary may determine. Nothing
contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed
to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of
liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy,
lease or option.
14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees
that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate";
(b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to
do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary
regarding any notice, request or demand received by him from the lessor under the Lease and
7\DEEDRENT\12/13/93/B Page 6 of 9
promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as
any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall
otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but
shall always be kept separate and distinct, notwithstanding the union of said estates in any
party; (e)Trustor agrees that it will promptly,strictly, and faithfully perform,fulfill, and comply
with all covenants, agreements, terms, conditions and provisions under any lease affecting the
premises and to neither do anything, nor to permit anything to be done which may cause
modification or termination of any such lease or of the obligations of any lessee or person
claiming through such lease or the rents provided for therein or the interest of the lessor or the
Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or
mortgage which may be or become superior to any leasehold estate that is security for this
Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph,
Beneficiary shall have the right, at its option,to declare all sums secured hereby immediately
due and payable. Consent to or waiver of one of said violations shall not be deemed to be a
consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold
estate, the term "property" as used in this Deed of Trust shall be deemed to mean the
leasehold estate whenever the context so requires for the protection of the Beneficiary.
15. That upon default by Trustor in payment of any indebtedness secured hereby or
in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon
default by Trustor under the terms of any encumbrance, charge or lien which is or appears to
be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due
and payable by delivery to Trustee of written declaration of default and demand for sate of
written notice of default and of election to cause to be sold said property, which notice Trustee
shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust
and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of
such time as then may be required by law following recordation of such notice of default, and
notice of sale having been given as then required by law, Trustee, without demand on Trustor,
shall sell said property at the time and place fixed by it in such notice of sale, whether as a
whole or in separate parcels, and in such order as it may determine, at public auction to the
highest bidder for case in lawful money of the United States, payable at time of sale. Trustee
may postpone safe of all or any portion of said property by public announcement at such time
and place of sale, and from time to time thereafter may postpone such sale by public
announcement at the time fixed by the preceding postponement. Trustee shall deliver to such
purchaser its Deed conveying the property so sold, but without any covenant or warranty,
express or implied. The recital in such Deed of any matters of fact shall be conclusive of the
truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter
defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof
any shares of corporate stock securing the obligations secured hereby, and Trustor waives
demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares
by independent pledge sale, and Trustor waives demand and notice of such sale). After
deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence
of title in connection with this sale,Trustee shall apply the proceeds of sale to payment, first; all
sums expended under the terms hereof, not then repaid, with accrued interest at the rate then
payable under the Note or Notes secured hereby, and then of all other sums secured hereby,
and, if there are any proceeds remaining, shall distribute them to the person or persons legally
entitled thereto.
71DEEDRENW2111'93B Page 7 of 9
16. To waive, to the fullest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured hereby.
17. That Beneficiary may, from time to time, by instrument in writing, substitute a
successor or successors to any Trustee named herein or acting hereunder, which instrument,
executed and acknowledged by Beneficiary and recorded in the office of the recorder of the
county or counties where such property is situated, shall be conclusive proof of property
substitution of such successor Trustee or Trustees, who shall, without conveyances from the
Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not
limited to the power to reconvey the whole or any part of the property covered by this Deed of
Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall
have been recorded, this power of substitution cannot be exercised until after the costs, fees
and expenses of the then acting Trustee shall have been paid to such Trustee, who shall
endorse receipt thereof upon such instrument. The procedures herein provided for substitution
of Trustee shall not be exclusive of other provisions for substitution provided by law.
18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties
hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The
term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured
hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the
context so requires,the masculine gender includes the feminine and/or neuter, and the singular
number includes the plural.
19. That in the event the property secured by this Deed of Trust is income producing
property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on
January 1, a written operational report. Such operational report shall contain a brief but
complete statement of the year's income and expenses of such property, a list of all vacancies,
and a statement of any material change in the property or business carried on therein for such
period.
20. That in the event of a demand for, and the preparation and delivery of a written
statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943
and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable
charge, not exceeding the maximum amount which is permitted by law at the time the
statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other
services rendered to Trustor or rendered in Trustor's behalf in connection with said property of
this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and
the loan secured hereby in connection with the transfer of said property, or releasing an existing
policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same
with another such policy.
21. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify
any party hereto of pending sale under any other Deed of Trust or of any action or proceeding
in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
22. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said
TOEEDRUM12113/93M Page 8 of 9
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT w-s,e3
State Of California r*■■■I OPTIONAL SECTIDN
CAPACITY CLAIMED BY SIGNER
County of Orange Though statute does not require the Notary to
till in the data below,doing no may prove
b On erore me,
l2/23/93 Sheila A. Rogers, Notary Public � to PDrSOM�"gon���' tt.
.
PATE NAME,TITLE OF OFFICER•E.G.,•JANE DOE.NOTARY PUBLIC ❑INDIVIDUAL
EICORPORATE OFFICER(S)
personally appeared -Michael T. Uberuacre , Executive Director - Executive Director 6
Barbara A. KaiP&Ps"OUft'� `s'of Redevelopment Dir. of Re eve opment
:12 personally known tome- ❑PARTNER(S) ❑ LIMITED
to be the person(s) whose name(s)xix!are []GENERAL
subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT
knowledged to me that fUEVINLthey executed ❑TRUSTEE(S)
OFFICIAL SEAL the same in }IkM)W/their authorized ❑GUARDIAN,'CONSERVATOR
SMAANNROGER4 capacity(ies), and that by bixRwx/their ❑OTHER.
Wary RIble-Carorila signature(s) on the instrument the person(s),
ORANU COUNTY or the entity upon behalf of which the
Mfe+r�Y3o�n=9�9S person(s)acted, executed the instrument.
SIGNER IS REPRESENTING:
WITNESS my hand and official seat. NAME OF PERSON(S)OR ENYI Y(tES)
O
&3,
SIGNATURE OF NOTARY
r■:t�l OPTIONAL SECTION
THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT Deed of Trust
THE DOCUMENT DESCRIBED AT RIGHT: 9
NUMBER OF PAGES DATE OF DOCUMENTDec. 23, 1993
Though to data requested here is not required by law.
N could pr3vent fraudulent reattachment of this form. SIGNEA(S)OTHER THAN NAMED ABOVE
C1993 NATIONAL NOTARY ASSOCIATION•=6 Remmet Ave.,P.O.Sor 7184•Canoga Park.CA 91309.7164
State of California
County of ►1_11 _ tiCI�E I I 6AT41 I a
19_, before me,Uh XLM —SA 65A 6
personally appeared—
personally known to me (or prove a the basis of satisfactory
evidence) to be the person(&) $
e name(s)
5/are subscribed to the
Mithin instrument and acknow ged to me that elshelthey executed the
same in hislhcr/their author' ed eapacity(ies) nd that by his/her/their
signature(s)on the instrum i the person(s), the entity upon behalf of OFFICIAL SEAL
which the person(&)acted. executed the inst meat. 1(9
JENNINGS
WITf� myh dand al seaNOTARY PUBLIC•CALIFORNIA
PRINCIPAL OFFICE tN
Signature LOS ANGELES COUNTY
My Commlaslon EYPIry Feb. 24. ]94S
Name r Printe
Notary Pubtit in and Sot said County and State
FOR NOTARY SEAL OR STAMP
indebtedness shalt be paid prior to the due date thereof stated in said Note or this Deed of Trust
even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of
any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums
secured hereby immediately due and payable.
23. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of
Trust secures, and in the event that Trustor has made any material misrepresentation or failed
to disclose any material fact, Beneficiary at its option and without notice, shall have the right to
declare the indebtedness secured hereby, irrespective of the maturity date specified in such
Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a
• written declaration of default and demand for sale as in paragraph No. 15 herein set forth.
Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing
a default by Trustor under this paragraph, is authorized to accept as true and conclusive all
facts and statements therein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other party
shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his
address hereinabove set forth or to the Beneficiary at his office or at such other place as such
parties hereto may designate in writing.
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of
default and of any notice of sale hereunder be mailed to him at his address hereinbefore set
forth.
TRUSTEE: TRUSTO : OR3,NGE gOUNTY COtMUNITY HOUSING CORP.
THE CITY OF HUNTINGTON BEACH
By:
Aki C'�Z
J, By: ALLEN P. BALDW— -XECUTIVE DIRECTOR
Title: -,;.,f trf 62a un1.,o- By:
By:
BENEFICIARY:
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
r Title: �C-
APPROVED AS TO FORM:
i ttorney
• 1y
MEEDRUM1 211 419 38 Page 9 of 9
SFS,T BY N A 1 12-30-93 9 20AM NORTH AMERICAN TITLE 542 1232 ;� 2/ 2
EXHIBIT "A"
(LEGAL DESCRIPTION)
LOTS 13 AND 15 IN BLOCK 311 OF HUNTINGTON BEACH, IN THE CITY OF
HUNTING`lON BEACH, COUNTY OF ORANGE, STATE OF CALXFORNIA, AS PER
MAP RECORDED IN BOOK 3 PAGE 36 OF MISCELLANEOUS MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY
32-83510-03 -5-
CITY OF HUNTINGTON sE�ACH 03/10/94
INTER-DEPARTMENT COMMUNICATION
m,�rr+Mc�oN�uc�+
TO: Connie Brockway, City CIerk
FROM: Barbara A. Kaiser, Deputy City AdministratortEoonomic Development
DATE: March 10, 1994
SUBJECT: Promissory Note for 313 11 th Street
Attached is the original promissory note for 313 11th Street, as executed by the Orange
County Community Housing Corporation. The Note is secured by a Deed of Trust.
The note can be called only upon default by the Borrower. There are no payments due.
The Note and Deed were approved by the City Council on December 20, 1993,
(item F-8). Please keep the Note with the original Deed. Thank you for your
assistance.
BAK:ls
Attachment
xc: Don Watson, City Treasurer
Bob Franz, Deputy City Administrator
872
page 1
PROMISSORY-NOT-9
Property Address:313 11th Street Huntington Beach, California
mac. A . 1993
1. Promise to Pay. Orange County Community Housing Corp. ("Borrower")
promises to pay the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
a public body, corporate and politic("Holder;'also referred to as"Agency"), at the office of the
Agency in Huntington Beach, California, or at such other place as the Holder may designate in
writing, the principal sum of Six Hundred Thirty-Five Thousand Dollars ($635,000) (the "Note
Amount").
2.. Loan Agreemant This Promissory Note is made and delivered pursuant to
and in implementation of a Loan Agreement between Borrower and Agency
dated�e; 2-3,_ 3 I. This promissory note is attachment"B"to the Loan Agreement.
3. Acceleration The whole of the Note Amount, any interest accrued thereon, and
all other payments due hereunder and under the Agreement shall, at the option of the Holder,
become due and be immediately payable to the Holder by the Borrower upon the occurrence
of any one of the following events:
(a) Borrower sells, transfers or makes disposition of the Property in whole or
in part, except, however, a buyer approved by the Agency may assume the loan
evidenced by this Note;
(b) Borrower violates any provision of the Loan Agreement;
(c) Borrower defaults on this Promissory Note;
(d) Borrower defaults on the Agency Deed of Trust;
4. No ive Failure to exercise any right the Holder may have or be entitled
to, in the event of any default hereunder,shall not constitute a waiver of such right or any other
right in the event of subsequent default.
5. Waiver of Presentment. etc. The Borrower and all guarantors and endorsers
hereof hereby severally waive presentment for payment, protest and demand, notice of
protest, demand and of dishonor and nonpayment of this Note and consent that the Holder
hereof may extend the time of payment or otherwise modify the terms of payment of any part
or the whole of the debt evidenced by this Note, by agreement between the Holder and
Borrower, and such consent shall not after or diminish the liability of any person or the
enforceability of this Note. Each and every party signing or endorsing this Note binds itself as
a principal and not a surety. In any action or proceeding to recover any sum herein provided
for, no defense of adequacy of security, or that resort must first be had to security or to any
other person shall be asserted. All of the terms, covenants, provisions, and conditions herein
page 1 of 2 pages
7lnoteli=8193,13
s '
contained are made on behalf of, and shall apply to and bind, the undersigned and its
successors and assigns,jointly and severally.
6. Collection Costs If any attorney is engaged by the Agency to enforce or
construe any provision of this Note or the Deed of Trust, or if Agency incurs any other expense
by virtue of collecting sums due to the Agency under this Note, as a consequence of any
default or event of default hereunder,with or without the filing of any legal action or
proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other
costs incurred by the Agency, together with interest thereon from the date of such demand
until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid
attorney fees and costs have been added to the principal.
7. Security of Note This Note is secured by a Deed of Trust (The "Deed of
Trust") of even date herewith executed by Borrower covering property located in Orange
County, State of California, together with the buildings and improvements now or hereafter
erected thereon.
8. Business Purpose The undersigned warrants and represents that all funds
advanced under this Note shall be applied and are intended solely for the purposes as set forth
in the Loan Agreement.
9. Notice Any demand or notice to be made or given under the terms
hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall
be effective when mailed or delivered in the manner specified in the Deed of Trust.
10. Default In the event that there is a default in payment as scheduled
herein or a default under the terms of the Deed of Trust securing this Note, or a default of the
Agreement or in any other instrument executed by Borrower or any guarantor in favor of the
Agency, may at its elections and without further notice, declare all amounts of the outstanding
principal and accrued interest thereon immediately due and payable.
IN WITNESS HEREOF, this instrument has been executed as of the date set forth
below.
SIGNVORY
DATE: 1 t By
"Borrower
DATE: By
"Borrower"
REDEVELOPMENT AGENCY OF THE
OF HUNTINGTON EACH
8
I
APPROVED A O FORM:
Ag cy �Cnse_`
r�- :�3�i 3 2
71W012'1419319
PnordinZ rqL,,, ,cd by
NORTH A; -RICAN TITt.ECOl4tPANY
cording Requested Bya+aG.-
And en Recorded Return To:
Redeve ent Agency of the ^4 ul e�,r t
City of Huntin n Beacham '
2000 Main Stree
Huntington Beach, C 648 � '� ��
Attn: City Clerk
Property Address: 313 11th Street, Huntington Beach, California
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
LOAN DISCLOSURE STATEMENT
IIWe, Orange County Community Housing Corporation, ("Applicant") understand
M and agree that the provision of financial assistance from The Redevelopment
Agency of the City of Huntington Beach ("Agency") is conditioned upon a number
of factors, including, but not limited to:
N
• Applicant is a nonprofit organization primarily owning and operating
affordable housing in Orange County.
• Applicant intends to own and operate 31311th Street for the
benefit of very low-income households.
I/We further understand and agree that:
INVe have a right to cancel or rescind this loan at any time prior to
midnight on the third business day after the loan agreement is
signed by sending a notice of mylour decision to rescind or cancel
the loan to:
Redevelopment Agency of the
City of Huntington Beach
2000 Main Street, P.O. Box 190
Huntington Beach, CA 92648
Attn: Executive Director
• The Agency will not require melus to make payments of principal or
interest during the term of the loan. The full balance of principal
and interest will be due and payable if I/we do not comply with the
terms of the agreement to which this statement is attached. There
are no loan closing costs, prepayment penalties or charges, points,
fees, finance charges, service charges, investigation fees, credit
1
Nis[Is1 VOW9]
' State of California —
County of SS
On—j2 . 19 fiat before me; 114_6 'Rata11LY175 —'
per, sonally appear
�y,�' ed
personally known to me for prov a on the basis or satisfactory
evidence{ to be the persons! ost na e(s) islare subscribed to the �■� �
within instrument and acknowledged to m that he/she/they executed the OFFICIAL SEAL
same in his/her their authorized eapacir ies)and that by his/her/their M. B.JENNING$
signaloycl }on She instru ent the Perso s).or the entity upon behalf of
which the personls}acre ,executed th instrument. ;} ;Y: Mo]ARYP[JSUC•CALtrORAfIA
ARINCIPAL OFFICE IN
WIT S my d a fficia seal LM ANGELES COUNTY
Lisnatttre kY Cotnmtsalon Exptrea Feb. 14, 1995
Name(Type()or Printed) .
notary Public in and for said County and State
FOR NOTARY SEAL OR STAMP
report fees, insurance premiums, notary or escrow fees, late
payment charges or other fees payable pursuant to this loan.
• The Agency cannot ensure that information provided by or on
behalf of Applicant will be kept confidential.
• The Agency financial assistance Uwe receive under this Program
may be considered to be income for purposes of federal or state
income taxes and the Agency shall not be held responsible for the
payment of any taxes which Itwe may incur by virtue of the receipt
of such financial assistance.
ORANGE COUNTY CO,% fUNITY HOUSING CORP.
Dated:
A�L &:!5Da
Signature of applicant
Dated:
Signature of applicant
Dated:
Signature of applicant
APPROVED AS TO FORM:
�a c
AgLLe''ncy Counsel
t
2
7WlsckuZl08,93
�a`ter
HALL SERVICE DOCUMENT I:OUT I NQ '..3HEE'f
COMPANYz_U L. _ DATE:
'T`"O. T I ME: 1� � rit~I PM
I�FASON For, FULL:
An
INSTRUCTIONS MOM:
a
AS FOLLOWG: GU QD TD AG t3L111/E:CC
__ F,1,OTHEFP _AFF_JJOD JUDN/C
r
1
RUUTING INSTRUCTlpf:K3•
I)SEND VACK: rUM .
2)HOLD IN 0 FICE DnTE:
BY• I
-FORM W3
ITALL SERVICE DOCUMENT ROUTING SiIIXT
COMPANY: 1�� DATE:
ORDER 41•
� r i
TIME:• Am/pM
R ASON FOR rULLs &r- --P/p
•
Ao
INSTRUCTIONS FROM:
AS FOLLOWS; GD 0D TU AS 5U0/REC
J'UD N/c
OTHER:_
r -
`
ROUTING I NSTRUt;T g-1 ',.
I)SEND DACK; �ftTC•{2= RUM-�- -
2)HOLD IN OFFICE—„DATE:
BY: J �i
-~FORM SM ....J
The Agency has duly considered all terms and conditions of
the proposed Agreement and believes that the redevelopment of
the Site pursuant thereto is in the best interests of the City
of Huntington Beach and the health, safety, and welfare of its
residents, and in accord with the public purposes and provisions
of applicable state and local laws and requirements,
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency
of the City of Huntington Beach, as follows:
SECTION I. The Environmental Determination (Categorically
Exempt) prepared with respect to the Agreement (and all
undertakings pursuant. thereto) indicates that the proposed
development will not have a significant effect on the
environment, and is hereby certified.
SECTION 2. The Agency recognizes that it has received and
heard all oral and written objections to the proposed Agreement
and to the proposed development of the Site and to any other
matters pertaining to this transaction, and that all such oral
and written objections are hereby overruled.
SECTION 3. The Chairman of the Agency is hereby authorized
to execute the Agreement on behalf of the Agency. A copy of the
Agreement when executed by the Agency shall be placed on file in
the office of the Agency Clerk.
SECTION 4. The Executive Director of the Agency (or his
designee) is hereby authorized, on behalf of the Agency, to sign
all documents necessary and appropriate to carry out and
implement the Agreement and to administer the Agency's
�ST �X, % s n art H b dL,1"Z R 1-4
v tr 1S � �� `M�u� ��o J�c�•
06/24/93 :429 :sg -2-
i
CORPORATE RESOLUTION FOR LENDER
I Robert Johnson Chairman of the Board hereby certify to City of Huntington Beach(hereinafter LENDER)that I am the duly
elected and qualified Secretary of Orange County Community Housing Corporation a California nonprofit pubbc 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 November 18 1993 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
RESOLVED THAT.OCCHC execute Loan Documents with regard to the financing of the nine(9)units known as 313 11th Street
Lots 13 and 15 in Block 311 of Huntington Beach County of Orange State of California as per map recorded in Book 3 Page 36 of
Miscellaneous maps of the County Recorder of said County
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()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 he 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 �"y of 1993
corporate seal
Robert Johnson Chairman the Board
Orange County Community Housing Corporation
DESIGNEE en P Bald ve Director
C
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
HUMTINGTCTM/FAC71
TO: Barbara Kaiser,Deputy City Administrator
FROM:Lloyd Dick,Chief Inspector.3Z/D
SUBJECT:31311th Street
DATE:8/25193
A walk-through inspection took place at the above mentioned property on Friday
August 20th and my observations were as follows:
Substandard building conditions throughout the nine units with regards to general
dilapidation and improper maintenance of the building elements,along with
unsanitary conditions inside of some of the units.
1. General dilapidation and improper maintenance of bathrooms and kitchens
fixtures.
2. Defective and deteriorated roof covering creating dampness inside of units.
3. Broken fixtures and dilapidated tub/shower areas treating water damage inside
and under units.
a. Deteriorated,crumbling and loose plaster on ceilings and walls.
5. Deteriorated flooring and supports. Unsecured and deteriorated stair railings
and guardrails.
6. Missing and unsecured electrical fixtures and conduit.
7. Unsafe electrical conditions and abandoned electrical throughout.
8. Illegal venting of water beaters.
9. Deteriorated roof rafters and fascia boards.
10.Dilapidated rear deck, railing and stair landing surfaces.
11.Unsanitary conditions; animal and human defecate and trash inside units.
12.Inadequate fire protection; smoke alarms and fire-extinguishers.
13.Major code violations in regards to existing non-conforming conditions.
(setbacks of sideyards,emergency egress windows,screening of under floor)
I 1W that major rehabilitation costs would be needed to bring these units up to a
moderate standard of living. There will probably be major roof and floor damage
in regards to continued water damage over years of neglect. I would not
recommend the city buying this property. The city should pursue housing
enforcement of the violations immediately.
L�
A
HOUSING CODE VIQI,ATIONS Al3I3 ELEVENTH
UW1#1
A) Broken Oven
B) Missing Electrical Light Switch Covers
C) Missing Electrical Plate Covers To Electrical Outlets
D) Severe Water Damage To Bathroom Sink Closet
(i.e. Dry Rot and Soft Wood Panels)
M11-2
A) Missing Electrical Plate Covers To Electrical Outlets
B) Missing Knobs To Oven Unit
C) Missing Kitchen Drawer Covers
D) Broken Kitchen Drawer Covers
E) Holes in Walls
F) Broken Kitchen Floor Tile
G) Broken Light Cover in Kitchen
H) Toilet Flushing Mechanism Broken
I) Hot Water Knob To Bathroom Faucet Broken
(Unable To Turn Faucet Knob In Either Direction)
J) Missing Bathroom Light Cover
K) Broken Door Jam To West Side Bedroom
L) Missing Electrical Switch For Bedroom Light
M) Broken Living Room Ceiling Light Fan Fixture
UNIT 93 No Inspection Conducted
UST 4
A) Broken Cover To Heater
B) Missing Knobs To Oven Unit
C) Missing Kitchen Cabinet Drawers
D) Broken Garbage Disposal (i.e. Glass In Garbage Disposal)
UNIT•#S
A) Missing Ceiling Light Fixture In Living Room
B) Missing Electrical Light Switch Covers
C) Missing Ceiling Light Fixture In South Side Bedroom
D) Inoperable Light Bulbs To Ceiling Light Fixture In Kitchen
E) Electrical Light Switch Cover To Garbage Disposal Is Loose
F) Missing Knobs To Oven Unit
G) Toilet Severely Clogged
H) Water Damage To Bathroom Walls And Ceiling
I) Severe Mold Damage To Bathroom Walls And Ceiling
J) Bathroom Light Fixture Missing
UNIT N6
A) Holes In Walls In East Side Bedroom
B) Missing Light Fixture Cover In East Side Bedroom
C) Damaged Door Jam In East Side Bedroom
D) Missing Bathroom Sink
E) Broken Garbage Disposal
F) Hole In Wooden Ornamental Feature
G) Broken Plastic Panel To Dishwasher
H) Kitchen Door Off Hinges
I) East Side Bedroom Ceiling Is Collapsing
J) Hole In Living Room Ceiling
UNIT 97 No Inspection Conducted
UNIT$
A) Broken Kitchen Floor Tile
B) Missing Kitchen Light Fixture
C) Garbage Disposal Drain Clogged
D) Missing Knobs To Oven Unit
E) Missing Living Room Light Fixture
F) Severe Mold Damage To Bathroom Walls And Ceiling
UNIT_#9
A) Floor Damage At Entryway
GENERAL EXTERIOR IMISING_COVE UQL TA IQNS
A) Warped Roof
B) Broken Windows
C) Broken Screens To Crawl Spaces
D) Missing/Peeling Paint To West Side Wooden Decking
E) Severe Dry Rot To Several Steps To The West Side(rear) Stairway
F) Hanging Wood Trim To Shed In Rear Yard
G) Loose Railings To Apartment Stairway Leading To Second Level
H) Missing Fire Exit Panels
The entries listed above consist of a total of fifty-six(56) housing code violations.
A description of the exact housing code section is listed below, matched with the
corresponding violation that was observed at 313 Eleventh:
Sec.1001 (b) INADEQUATE SANITATION. Buildings or portions thereof shall
be deemed substandard when they are unsanitary. Inadequate Sanitation shall
include but not be limited to the following:
I. Lack of, or improper water closet, lavatory, bathtub or shower in a dwelling
unit or lodging house (water damaged bathroom sink closets).
S. Lack of hot and cold running water to plumbing fixtures in a dwelling unit or
lodging house(broken hot water knob to bathroom sink in unit#2).
11. Dampness of habitable rooms (severe mold damage to the ceilings and
walls in units #5 and #8).
I3. General dilapidation or improper maintenance (missing knobs to oven
units, broken drawers, broken floor tile, cracked light covers, missing light
covers, broken door jam, broken cover to heater, broken plastic panel to
dishwasher, broken doors, missing screens to crawl spaces).
14. Lack of connection to required sewage disposal system (broken garbage
disposals).
Sec.1001 (c) STRUCTURAL HAZARDS. Buildings or portions thereof shall be
deemed substandard when they are or contain structural hazards. Structural
hazards shall include but not be limited to the following:
4. Members of walls, partitions or other vertical supports that split, lean, list, or
buckle due to defective material or deterioration (holes in walls, loose railing to
stairway).
6. Members of ceilings, roofs, ceiling and roof supports or other horizontal
members which sag, split, or buckle due to defective material or deterioration
(collapsing ceiling in unit #6, holes in ceilings, sagging ceilings due to water
damage,warped roof).
Sec.1001 (e) HAZARDOUS ELECTRICAL WIRING. Electrical wiring which
was installed in violation of code requirements in effect at the time of installation
or electrical wiring not installed in accordance with generally accepted
construction practices in areas where no codes were in effect or which has not been
maintained in good condition or which is not being used in a safe manner shall be
considered substandard (missing/loose electrical plate covers, missing Iight
fixtures).
Sec.1001 (0 HAZARDOUS PLUMBING. Plumbing which was installed in
violation of code requirements in effect at the time of installation or plumbing not
installed in accordance with generally accepted construction practices in areas
where no codes were in effect or which has not been maintained in good condition
or which is not free of cross-connections or siphonage between fixtures shall be
considered substandard (broken toilet flushing mechanisms, broken hot water
knob, missing bathroom sink in unit#6, clogged toilets).
Sec.1001 (g) HAZARDOUS MECHANICAL EQUIPMENT. Mechanical
equipment which was installed in violation of code requirements in effect at the
time of installation or mechanical equipment not installed in accordance with
generally accepted construction practices in areas where no codes were in effect or
which has not been maintained in good and safe condition shall be considered
substandard(broken oven in unit 41).
Sec.1001 (h) FAULTY 'WEATHER PROTECTION. Buildings or portions
thereof shall be considered substandard when the), have faulty weather protection
which shall include but not be limited to the following:
2. Deteriorated or ineffective waterproofing of exterior wall coverings, roof,
foundations, or floors, including broken windows or doors (broken window).
3. Defective or lack of weather protection for exterior wall coverings, including
lack of paint, or weathering due to lack of paint or other approved protective
covering (missing/peeling paint to west side decking, severe dry rot to exterior
steps of rear stairway).
Sec.1001 (1) INADEQUATE EXITS. Notwithstanding compliance with code
requirements in effect at the time of their construction, buildings or portions
thereof shall be considered substandard when the building official finds that an
unsafe condition exists through an improper location of exits, a lack of an adequate
number or width of exit, or when other conditions exist which are dangerous to
human life (fire exit panels missing from their enclosures).
- t l
Form No.6056.92 f 1 Q(17M)
ALTA Loan Policy-Form 1 ;
POLICY OFTITLEINSURANCE
ISSUED BY
NORTH
IMAMERICAN
TITLE
rMCOMPANYE
SUBJECCHE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE
CONDITIONS AND STIPULATIONS,NORTH 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 stated in Schedule
A, sustained or incurred by the insured by reason of:
1. Tide to the estate or interest described in Schedule A being vested otherwise than as stated therein;
2. Any defect in or lien or encumbrance on such title;
3. Unmarketabilq of the tide;
4. Lack of a right of access to and(De land;
5. The invalidity or unenforceability 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;
7. Lack of priority of the lien of the insured mortgage over any statutory lien for services,labor or material:
(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 or is obligated to advance.
8. Any assessments for street improvements under construction or comp d at Date of Policy which now have gained or hereafter
may On priority over the insured mortgage;or
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 named insured assignee tree
and clear of all liens.
The Company will also pay the costs,attomeys'fees and expenses incurred in defense of the tide or the lien of the insured mortgage,as
insured, but only to the extent provided in the Conditions and Stipulations. !
y
�=yT L>J."vs, A
NORTH AMERICAN TITLE INSURANCE COMPANY �Q �����►
INCORPORATED o
BY �� A�Tla—SZ'-02 PRESIDENT r
y SEPT ta,t95s
ATTEST SECRETARY C'¢L I F 0IMO'
EXCLUSIONS FROM COVERAGE
Tt,e 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 I the
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 inability
re julating,prohibiting or relating to(t)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
irr provement now or hereafter erected oa 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
panel of which the land Is or was a part or (iv) environmental thereof, which arises out of the transaction evidenced by the insured
pmtection,or the effect cf 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 tram in lending law.
er'orcemert 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 from 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 governmental 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 who!e or in part by proceeds of the indebtedness secured
Berl or encumbrance resulting from a violation or alleged violation by the insured mortgage which at Dale of Policy the insured has advanced
aff!sting the land has been recorded in the public records at Date of or is obligated to advance.
PC Icy' T. 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
record.,d in the public records at Date of Policy, but not excluding from bankruptcy,state insolvency,or similar creditors'fights laws,that Is based
coverage any taking which has occurred prior to Date of Policy which wou.d on:
be binding on the rights of a purchaser for value without knowledge.
(i) the transaction creating
conveyance or fraudulent transfer, or
the Interest of the insured mortgagee being
3. Defects, liens, encumbrances, adverse claims or other matters: deemed a fraudulent
(a) created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company,not recorded in the public records at Date �i) the subordination of the interest of the insured mortgagee a result
or
of Policy,but known to the insured claimant and not disclosed in writing Iif of the application of the doctrine of equitable subordinationn;;
to the Company by the insured claimant prior to the date the Insured � } the transaction creating Me Interest of the insured mortgageee
being
cla mart became an insured under this policy; deemed a preferential transfer except where the preferential transfer
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) attbching or created subsequent to Dare 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 fcr services, lat:or or material or the extent
CONDITIONS AND STIPULATIONS
1. DEFINITIONS OF TERMS. or desirable to establish IN the to Be estate or interest or IN lien of It
The lonomlig tames w'kn used in this po icy mean: iruved atortgage.as ftad.B the Combany is prejudiced by the ladin 9. REDUCTION OF INSURANCE,REDUCTION OR TERMINATION
(a) 'fits.red': the insred named In Schiele A_ The hen of the Insured to lunrsh One required cooperation. the Canpano of LIABtuTx
'mmr also Ircluhdes obligations to Bhe Instred tow the polity shall fi rmrnee.ncludmg any (a) All payments uder this policy.ecept aay{'relts made for
@ the oww of the Indeb ednes5 Seared by the bwrd habicy or oblgatron to defend.prosecute•of Corrine any litigation,wit costs.aromeys'lets and Gpenses.Shall mUe the amount of the
rviga2e and e.ich successor In ownership of Ge Indebtedness We% regard to the matter of fnacers requiring such cooperation. insurance pro tamo However,pry pavrrre is made prior t the acqurshhon
a umeesserr whJ is an othga under fee provisirns of section 121c)01 of We to the estate of irnefest as wmkc in SSG on 2,a)of treese
Giese Cwitiot i and Shpuw ors (reserving.however,an rtgMs and B• PROOF OF LOSS OR DAMAGE Coed:liors and Stipulations shall nor reduce pro W to She arrdurt of the
defenses as to any successor that the Company would have had again;l In adddxon to and aver the notices Twred under section 3 of these insurance abided under this policy a mi to the ereert Ice•the pp-meets
any predecessor nsure7.unless the successor axnred Ne rndebtedne:s Conditions and Stipulations have been ptmrded the Company.a proof of reduce the amount of die rldeti carless sewed by B+e insured moe7age
as a VIVOser`x hralt•e hrthout MoWedge of the asserted defect•lie', loss or damage signed and sworn to bi dk Insured claimant shall be (b) N meat in part by arty person of ee principal of lire
enwmbrance.averse cla m or of-er matter insured against by furnished policy fushed to IN Company within 90 days after the rr5ured claimant shall lM a airy ebledMS, other obligation seared by the irhsured ffV1WQe.
85 9*011g Wk to to estax or brunt in She bnd). ascertain the tact&giving rim to Bu ties or damage The 0=1 of loss or or ary vc kntary partial sx:Naction or release of hie mem nhongape.
(ii) any goverrrrherhlal agency or P*-Tr*MI Yxtrumenlalry damage Shall dest:nbe the defect in.or lien Of en u rbrante on the lire. to Me Werd of Me payment satisfaction or release.sha'I reduce the
Oiei is an instrer of gi.".Dr order an insurance contract or grawy of ogre matter insured against by this poli y which constitutes It basis amount of insurance pro tanlo The amount of insararhte may tweate
hurinc of gum.-t ng the lideve ness seared by tP.e fuelled of loss of damage and shalt sate.to Gee eel posstbte.the basis of be increse3 by KCPLAN mlelest and a%WM Fade Ill prutecl the lien
mortgage.or air+part Ii'ueol,wrheto named as in hrlwM herein Of not: calculating the Arran of the Ins or dw Wde-B 04 Company is prejudiced of tk insured mort"and seared them9y, w-M interest rem.
(in)re parties designated in section 2(a)of Giese Condlionsand b'tl+e laifue or the warm clarttare to pronde the required proof or loss provded in no evert sria:I the arhourht of ius"ce be greater Ian the
shpuw ohs of damage.the Cornpanys obligations to the inured urrde the policy shall amorrl of insurance stated in schedule A
flit �ruirM claimant"an ftaur9d claunuq toss o 4arthage. fermma:e.Including any liability a oblig-on to defend.prose".a (c) Paymerl n hull by ary person a the volutay sa,:staywn a
01 In Irlmc ct a'prawn": filled l LaLM00 ge.nor ticthv9 continue ant'litigarion,vhr regard to the rht0v o marers requiring such release d the insured matp W sha!I Iermrnre all Iia.Mhy of the co rvany
tuweege a nu%e which may be wiculed to w insured by reason of �0°f i loss a .theIdamage. exapt as fruNded n Section 2ia1 d tese Card-ions and S:Ph a renS
fhe privic reca_s is deb,xd n this Ixbcy a ary other records whhcl lo aowin Cur itsrred t by ant mry urized lily be required lo
irhpat corstruc'ive not a Of matters of ecnng the land. submit fa euaminatan ands Dada by any autnaized rrpresentatne of the 10. WBILRT NONCUMULATIVE.
d) 'tarxf':the hard f matted a relenth lo in Schedule it ant Company and shalt promhce Ice mamma,on.i+spethon and m*ing.at G tte bhsued acqui es role to the esrare a 9e'mst n sat:sla anon
Inpror(rrkrhts rued tereto which by law corxt.tute real property Thor such reasonable limes and places as may be desp�ated by any amhor�ma d hie indevedness seared by pu inured morga2e.a ary pan"red.
iv
perm hard ace not irnude any propety beyond the tires W ere area representate of the Canpany. all recoris, books. ledgers, cthecks. B is vVessly~stood But ere amour of insurance under an policy
correspondence and memoranda.Ww-*v bearing a date before or after stall be reduced by pry arh0url the Comliary may pay tide arty policy
described or ten-red to in Schedule A.nor pry rignl.tine.Mwest.estata Date of Policy,which reasonably pertain to the loss a darnage Further,
or easemMt in ibuttm steers.toads.avenues.alleys.larks.ways a B hequested by any ktiorad wtsei atrve of Ghe Cmvm.Ghe Insured �or,ng a mas e e .ass need.eire or
is taken n St r w 4 B o lo rth c r
worwayi.but rathug"in shalt mottfy a limit the edel to which a ctaimaM shall grant Its permission, iR witng. for any a ilthOnted viecGhe uted by b an agreed.assured.a Wen shred ie ro Ch is lswe or
right of access to and lion N Land a Insured by Ni&policy. represeMattve of Nc b th6mrM,Inspect and all meads. an insured and rh+nth is a tYhar2e a lien on hie esta e a
(el 1rvaJ age. mortgage.deed of Gust,trust deed.o other fools.ledges. awrtespordehce and menhorarrda�n the MIS" small b described a referred lo e Schedule A and hie arhaurrt so paid
seemly nstrurn-,c or Control a a thud party,hktbth neawnab y pertain lo the loss o danWlp.-
snarl De deemed a payment under G�S po,�cy
(f) WI-.n!ovds'.retards esablisihed under state statutes al All infoirthaaon deslgrwed as corlicential by the instred claimant provided 11. PAYMENT OF LOSS.
Dared Polity to the pJPM of imparting wnsrudive Mice O1 matter; t0 the Compaq pursuant 10 this Section shall not be disclosed to Other (a) NJ payment St.0 be made without pro icing Its policy for
real rig to real prop"to pychasers for value and whtgN lnowledge unless.In the reasonably(udgrnent of the Compary,It is necessary In Ne endorsement of the payment unless tie policy has been W or destroyed.
With respect to Seebon 1(a)(n)of the Exclusions Form Covh rage.'pubhc administration of The claim.Failure of Iht issued claimant 10 Submit lor In VbCh Cate proof of IOSs Of deSM0110n Sra,l be tumtshed to the
ve= shall V-,o yxlude enacaV*t'ih Drotec'm liens bled in the eaxammnafhon under Dam.produce olhet aesyta!il requested wit mhatwn sap stachot of the company
rewds at Ne Nrk of hie United Saes district tout lor the dtstrrct In or pram permission to secure reasonably necessary Irbwwion lrbm Nand (b)Nfkn liabd,ty and the ehrteM of luxe a damage to been
Mich the land Is located. parties as required in tits paragraph. unless prtihibhted by law a
(g) tirhrr,rW2bilrry of the title'.an alleged or apparel male' gMtffdrtental mgulaihok shhall te=rele any:iabihryd the Cttrnpany under del ndely fixed in accordance wxi Ilhese Cord4 onn arrd Sipulations.the
arectog the tric to the farld.not dxcfuded of acepled hom r:oveage this policy as to that claim. Icss or damage shall be pariwie worm 30 days Nrea•'er
which w ld evr.:le a purchase cl the estate or Interest described in
Scl*cule A o G s insured matgIage to be re'eased Iran Gk obligation OPTIONS To PAY OR OTHERWISE SETTLE CLAIMS; L� S)Thee Comp UPON PAYMENT OR Soon. MEIR
to purouse by v toe of a OOrhtracttsdl eenditon resulting the detivery of TERMINATION OF LIABILITY.
(a}TM Comprrhlrs Right url Subrogation
manrctazle title- in case of a claim under this policy,the Company shall have me Whenevw the Company shall have setled and paid a claim unCer
1InnW"4M fwu vw- this bolicy.all noht of subrooat:on wail vest in She Coahoany u rmlec-d
v
POLICY
OF
TITLE
INSURANCE .
RAMERICAN
TITLE
11MCINOSURANCE
L CONTINUAT1O11 OF INSURANCE any as or IN Warta cua Irvin.
(a)To Pay or Tender Payment d pee Amount d Iraurance a fo of
(a)After Acttulstton M Tide.The coverage o1 this policy shalt °U maned by rclwse the Indetitedness. Tte Company Shalt be subropa'ed to and be evned 10 all rights
bondnue in force as d Date of Policy in lava d(i)an Insred who acquires� (1)to pay or lender payment of re reartl d insurance under th s and remectts which the isued ctairlrt would have had ap'rsl ary
all a any part o'the wale or merest in the land by forecinn.Mews lad cy ropedia w h any cosh.attonneys'lees and expenses property inrespect to the claim had its policy riot been issued
he
sale.cenveyares In lieu of lore inure or other legal marm which the Insured etaimanl aum
.which were oiled by ore Conroany.up to t Company o Rquany by gh Compare.the Waved claimtart sthaa tarsier to the
d,uhayes to ken of the nsured InorlMe;(ii)a transferee of the Me time d payment or tender d paymtert an]which ek Company a abligaltd all by
and Rme0 e$ aga:sst ary person or property
a Irle•est so at wired from an inured corporation.pratrded the transferee lip pay ar necemy In order 10 perfect this right d R ogat•On The Waved
Is tie parent a wholly-owned su5sidiary d the warred corporation.and (ii)to purchase ore Indebtedien seared try one Ili red ca a of shorn rred me Cll and 10ompiary u theue.caroof the a sera in me
then corporate successors by operemn of la+and not by Purdwe. mortgage for the amtourt owing thereon Zpedror win any coats.altorrierg In ary
d r% inured Cai pi and ro use the route d me varied clamant
Subled 10 any righs or de'ertm the Compa'hy may have against airy fees and expenses Lrteprred by the issued ca:mant which were authorized W sry tarsaction or th galiah Invoti;nq these mgr s or rertkd e$.
prectces$a mounds:and(lit)ary gowmirnertal agency or gocremfther tau 9 a payer on account d a calm does not txl'y Cover the Ions
Wst urmental:,y witch xquirts an a any part d to estate er Interest by eK Company Up b the time of pwt!tase and which lire Company s d me insured ca.ima.'t.the CorWy shalt be s-�b -ed to all rigs and
Obligated t0 pay. remedies of the hued Cla;nlaM after the it Wed clt-rwt Shalt have
pursuant 10 a COltt'acl d insurance a guaranty irairing a guararneei g a me Company oilers to purchase the Indebledness as teen
the Indebledne�s Seared by the Irwed mortgage. recovered LIS principal.rteraL and Costs d collection.
Convey
(b)Ant,Con,royanu of Ito.The conro e d this policy shall aD"�'the iess awineir d the Insured
orl Bran trout a assign.and lLatel (t)The Insurod•a Rights and Limitations.
g �' the Wdebtttdrtess and lire Yaured tnortga9e.together with dry colaleril
Corrine in force AS of Date of Policy in lava of an insured only so long securq.to the Company LPN pyyfw for. Notwiths'andirg our foregoing. the owner of the ndebredxss
as the hatred "ins an sale or interest in lire lard.or holds an upaf the exercise by lire Comply of either ct lire options provided seared by the esued merpole.provided the pri"of lire ben of lire
Indebtedress sewed by a purchase money, mortgage given by a for in paragraphs a(7 or(i7,all liabartyad obligations to the insured under roved mortgage or its entorceatoily IS red teded.May release or
purchaser frorr the ftred.or only so WN as the insured shah hove this li older than 10 make tlro subs,,tule fro personal Ilaba,y d any debts a guarantor.or eiCeed a
Policy. lily or
required 0 elen taragraphs. omermse modify the urns of paymer�a release a
lia5-uty by rea:�n d Cover"d warranty mace by the Insured n airy shalt terminate.Yhcll,ding arty llabrliry a Dbtigatitn to defend.proseaxle. Doff of 7+e esra•e
trarxstier of conveyance of the estate or ifnen.This policy shall not or continue any Inigation.and the policy shalt to surrendered to to or Interco Imm the hen of the insured mortgage.or fe ease dry coltat"
eon rout in fa:e in favor of acy pur0aser tom the raced of either(i) Cornpany for cancellation. scanty for line Indeweare-4
in estate or rlerest in fro land.or(Li)an indebtedness secured by a (b) To Pay or Otherwise Settle W It Parties Other than the lamed V6 en the permitted acts of the Insured Cairrart occur and ore
purttiase moary mortgage given to the insured Of with the Insured Cainwrq. Waned has knowledg^d any claim of title or Interest averse to fro title
(c)Amount:of tltdrince.Ito amount of iranrance after the (1) 10 pay or otherwise settle wth other parties fa Orin the name to the estate or interest or the priorry or erlorcea..a ty of the lien of the
acq ilsnhon or ver it con*ya+ce shalt in neither even exceed the lent 01 an Ensured ctaln lout Waved mortgage.as walled.the Company shalt be rmjved to pay only
any cWm insured al;airst under this policy.togwher tal pan of any losses Marred agairsi try pus pol!cy with stall pored
with any gusts.affomey$'lees and wanes ncured by the Inured ft arno:rit.t any.lost to the Congary by reason d the impa!mtenl by
(0 The amour of Insurance sated in Sxtedu!e A. claimant which were authorized by the Cbmpaey up to the time of payrnct the Insured Claimant of the Com
Cx7 the amotret d tte principal d the'rdettelnness secured by and which the Company is ottigred to pay;or �ls "d `�-
N inured mcrgage as of Date of Policy.Interest thereon.expenses of Rlgh
(c)(ii)m pay or otherwise settle with fro Insured claimant ek loss The Company'I h Against Mon-insured Obtgem
lore IcSwe.arcoutsadvancedpLisu ttolheinsuredmortgageloassue a damage provided for under this pa'icy. logether with any costs. The Comparrys right d subrogatwn agairtx rtcn irtsueC ob'igors
Caltpla 0 v i'h laws or 10 protect the lien d the WweC mortgage pr a attorceys tees and ppeaes Mearred by lie insured ttirnart wh ch wee SNII east and shalt itclude.without ItrritriA the lax:$d the Inured
10 the lime of ar�uts0n of the estate a interest in the land and seared a it wed by the Company up b the tine d payment and which to In rdermaies, gronrues other policies d ifaurartca a lads,
thereby and Rasoratle amounts upended 10 txevert deteriaa ion of Company is abtiored to pay. nohrtsand:ng any terms or coed awns cmaned in those nsturem
ImpnMrnemt5.but reduced by the amount of VI payments made.or which provide for suCnogation rights by reason of ths Delicy.
(ii)the amotxt paid b/any gavettmenal agency or gone n- Upon the tocise by the Compry d either of the optiahs provided The
IV in paragraphu b(i)or(ih),the ComOanys obligations to rue W&M Camprys night d sutiro y inn Start not be avoided try
metal YslfSrr ytal;y,0 to agency or insorrw al ty Is the kwed under this policy fa the claimed loss or dwq it ell d the censured mortgage try an om arc
St putept an s?vft
Ca,nart.n the xouis0zi n d the estate a Inteest n satisfaction of its darf`age•any
to the Dalm+ems amires t e Section 11a;(i)d ar n ofan ea arc 5gu ors)who
required b be made.shalt terminate.rtl�di:g any tabitrry a obligali:Yh xqu�res to insured mortgage a$a reap tan ndemtni:y-¢.arar'tee.amen
iraialrce troxhty Or ghsa'ah't! to defend.txasecuie or earthnxe any litigation. policy IV insurance.or Sand r4 the Obligor will not be an hsued under
L BE GIVEN BY INSURED 7. DETERMINATION NOTICE OF CLAIM TO AND EXTENT OF W81LITY. this pot ry, nohnthslard rig Section t(alW d these Condr ova and
CLAIMA VL This policy is a oonbad of Wernnity against a=l monetary toss Slip�lati0a-
The ira'M sra'I notify the Company promptly In wiling c)in case or damage sustained or Warred by the insured claimant who has Suffered 13. A98MTION.
of ally litig *r as set forth in Seam 4(a)below.(;;)in case lnowiedae loss or damage by reason of matters Wand against by this policy ad Unless prop:b fed try x0licable law.It"fier ero Company or the
sha'1 carte to ai Waved hereunder d any calm of title or Interest which only b me extent herein described.
Is adverse to the Into to me eswe a interest a me hen of fro Waved Insured may demand arbi Tion pursuant 10 me Ttfe I srrance Arbhtrauon
matgzge,as insured,ant which mp�t ranee less or�rrhagt for wneh (a)The liability al me Company u►ier this policy sha I not exceed Arles d the American Arbitration Assmrxin.Aft-gle ma"ten may
me Company ray be awl by wrtue t this polss a(iii)d tine b me me least of Irttude.but are not limed to.ary controversy or claim betweer me
the e a acres or bee lien done marred mortpage,as insured.is rejected C) me amount d Irshrance stated In Schedile it a. it Company and the issued arising out d a feLran to tis policy,dry
as d
applicable.
as unrwWab!! 0 p"nice stall not be g'v"m to the Cornpyty.ten the axrwurt d Wsurance ?t trod W Section 2(c)d these service d the company in connection rim;rs tssuanCe or re breast,d
as to the itsumd all liability of to Calgarry seat lerrirhate with regsd Conditions ant Stipulations: a policy provision or Cite obligr on.A:1 arhioatle matters wher the
to the maser cr Ratters for which prarpt rd;cs is required.providtd. (ii) The amaa of Mid principal indebledness sewed by to Asnout A Insurance is S1-000.000 or less seal be arb med at the option
hOrvever,that>c lure to notify the Carrary sha'r in n case prejudice the Insured mortgage as limaed or pmv did under Section 8 of that of oilier the Cww-V or the issued.All arxitiaeie rrers wheel the
rV.!s of any i,sued eider this policy tntess tie Company shall be Conditions and Stipulations or as reOLKed uhde Section 9 of these Amount d Wswance is sun excess of 3IAXOD0 she be artier only
preta0:ced by ne failure and there only to the ede t of the prejudice Conditions and Sliptdabas,MIN time ft loss a damage rowed against when aTeed to by both the Comparry and the kw A rt ru on pursuant
by this policy occurs.lbgether with 1113re51 thereon:or 10 this policy and under to Rules in effect on the dace the demand br
4. DEFENSC AND PROSECUTION OF ACT.ONS;DUTY OF (iii) the difference between the value of the instRed estate or rbaal cn is made or.at the option of the Ifaued.the Ru'es W eIf at
INSURE3 CMMANT TO COOPERATE Interest as Insured and the value of the nRi ed estate or interest subject Date of Policy shall be binding upon IN ponies.The award may include
(a)Upw wriSen request by the nwed and subject to the Options 10 the defect lien or encumbrance WS<red against by this policy Vomew fees only 4 IN laws of the state W whch the rand is boated
Imrt'ained m Section 6 of dese Conditions and Stipulations,the Company. (b) In the event the nsured has xwred the estate or Interest in permit a Court 10 awrard attorneys'tees 10 a arm:ing pary.,knd7nent
0 is own Cost ant without ureasonable delay.sha'I provide far the the tllarnet described in Section 2(a)of these Coed horn and Slipulatrors 0,9bn the award Rthdered by the Alb-or(s)may be me-ed in ary cowl
defense of in iraved in liv.1pron in which any t..rd pearly asserts a Cla in of has conveyed the bile,there the hiabil ry at the Ce ripany shah continue Wing jrr;sdidion thereof.
adverse to the I'le or imerest as insured.but onfy as to those stated causes as set form in Section T(a)of these Conditiats rid Stipulations. The taws of the situ$of the laid shall apply ID an arbrtrat an under
of action alleging a defect,lien or encurorance or purer maser Waved (c)The Camp"will pay only muse ant,snomeyr lees and to Tale Inwame h'Oitration Rules
agIrst by thhS:OILCy.The Company Shall have Ile right 10 select Carrel ppetues Incurred W accordance with Sectw 4 of these Conditions and A copy of the Rusts may be obta:ned trap t+e Company upon
of is Choice(sub0d to the right of the insured to object for mi sonaltle Stipuabom. mull.
case)to tepre=.exit the insured as to Use sated cam Of action aid
sha'I not be 14:It hu and wt'L not pay the lees or arty otter mice sel.Tit II. LIMITATION OF LIABILITY 14. LIABILITY LIMrTED TO THIS POLICY;
will rd tea.Cats or tomes Wtur•ed by the insur:d (a)t the Can POLICY ENTIRE CONTRACL
Company payparry e.or am
yro role.f removes the alleged (a) This policy logelter wit'rl endwArrierts.t afy.racked
n lit deferae Cf th0ae causes d action winch al ego Ratter$not iaur>d defect ben a encunbra<ece,a aces re lack d a right d access to a hereto by ek Company s the en1iR policy and Wn;'aCt between the
agairat by this policy him me land.awes the Claim of unmcrkeabihy d title.a otherwise Yoh o by t e ohe rnpar i n interpreting tic pared r t eNeenicy,this
(b)The Cor^pany shall have me right,a1 its bwaf cost to Istilve establishes me lien of me isued mortgage.a'I as rsured.in a reasonably policy Shalt be t o pang.ned In n wpreti
and prosecute:ny act on or proceeding or 10 do any other ad which n diligent manner by arty meCrod.Includrrg litigation and me completion of
We
ns opinion may ore necessary or dts;rab a to estatlish the!alt to the estate any appeals therefrom.It shalt have fully per!amed its oblrgat,as wth (t)Any dam of loss or damage, wt etter or rot based on
or Wle•esl or th:ben d the insured mortgage.IS iru,red.or 10 trepan respect ro that matter and shall not be Halle br any l0u a damage caused negligence.and which awes oul at the star of the lien of the irmad
Or race loss of damage to the insured.The Company may take arry thereby. lratgage of of the tMe to the estate or interest tamed Weby or by any
appropriate ad A under the lemrs of this policy.eerw or not A shill (b) Inmeevm olwy lA:gg an.rclidirg litigahah by ekCanpary action asserhlq W claim.small be IeSUided to this pcl.cy.
be liable hereu•der.and seal not tieretry ooncede liaN[q or waive any or with the Company$consent the Compayy shall have no lie liry la loss (c) No avrw4r"of or erdasenront to this policy can be made
provisixn of this policy.t the Company steal t OJW its rights urlder this or damage until mere has been a rral determina5m by a tool of except by a writing endorsed hereon or al'adhed herro signed by ether
paraw.If s Al 60 So diligently. tanpefert Jurisdiction.and disposition of all appeals therefrom.adverse to Pits dent.a Vice Resident,the Secretary,an Ass,- m Secretary.or
(c)v1'rte-evet to CanDamlf shad have brought an action at to the Idle or 10 the I"of the insured ROrtgage.as Walled_ validating officer or authoram signatory of tit Company
imlerpmed a deense as req'aired or permitted by the provisions of this it)The COmpary Shall not be liable tar IOu or damage to dry 13 E1YEM81L1TY
po'i:y.me Corpany miry p any litigation to final determination by Insured fa!Lability voluntarily aswned ty lbe insured in settling arty claim
a Court of com;ete'nt)unsdtdiae and expressly reserves the right W its or suit without the prior written cane.cl the Company. In the evert any provision of this policy Is held IrWid or
so!e d:screban to appeal torn airy Weerse p%ment or order. (d) The Company shaft not be tiible for. utentaceable wider appl cable raw,the policy shall be deemed not to
h dude do provision and all other prws,ons shall wain in fruit force
(d)W a' cases whereto policy permits or requires the Company (1)aty Indebtedness treated suhmient to Date d Policy except and effect
to proseade or provide fa ere defense at any action or proceeding.lie la aitowces made to prow the lien of the isired mortgagee and sewed
Insured shaft sr'mre to the Company to right to so presecule or prov;7e thereby and reasonable amounts ep"A to preverd deterioration of
defense in mtiCO e kc or proceed rig,and all appeals te•ein.and pemit improvements.or 16. NOTICES,WffERE SENT
It Company k use.at its oplion.the name of the raved for this WWA. (ii) Construction ban advances made subsequent b Date of All notices recuired to be given me Company and any stater"
*7tenever re7 tve7 by the comm.the Waved,at the Compan/s policy.except COnshiclion ban aCrdnce$made S.xbsequtrt to Dare of f writing t Cy and b De be added the t the y shalt y 9 11 the East
Fier
ownse.Shall give me Company all reasonab'e aid(1)in any action a Policy br me purpose d financing n whole a in part me Costruction of d this pat ia and Shad be addressed to n,e a oM;cr y at 11/East Fhis
proceeding. wiring evidence. obtaining wresses, prosecuting or an Improvement)10 me land which at M d Policy were seared by me Street.Santa Ana.Ca'ftxnia 92TOt,a b the once wh Ch Issued this
de'ef d rig the ar:lion or proceeding.a effecting$etllemert and(ii)in arry is red mortgage ad whrCh the Waved was and corbn,ed to be obligated policy.
Lawtul W wPiC4 W the opinion Of the Company may be necessary to advance at and after Dare of Policy.
FORM NO. 6056.92 (10/17/92) ORDER NO. : 32-83510-03
ALTA LOAN POLICY POLICY NO. : 212757
FORM 1
SCHEDULE A
TOTAL FEE FOR TITLE SEARCH,
EXAMINATION AND TITLE
INSURANCE $786.68
POLICY XMOUNT: $630, 000 .00
POLICY DATE: DECEMBER 30, 1993 AT 1:43 P.M.
1 . NAME OF INSURED:
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC
BODY CORPORATE AND POLITIC
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
NOT-FOR-PROFIT CORPORATION
4 . THE INSURED MORTGAGE AND ASSIGNMENTS THEREOF, IF ANY, ARE
DESCRIBED AS FOLLOWS:
A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE AMOUNT SHOWN
BELOW AND ANY OTHER OBLIGATIONS SECURED THEREBY:
RECORDED: DECEMBER 30, 1993 AS INSTRUMENT NO. 93-0913228 OF
OFFICIAL RECORDS
AMIOUNT: $635, 000.00
DATED: DECEMBER 29, 1993
TRUSTOR: ORANGE COUNTY COMMUNITY HOUSING CORP. '
TRUSTEE: THE CITY OF HUP1'TINGTON BEACH, A MUNICIPAL
CORPORATION
BENEFICIARY: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH, A PUBLIC BODY CORPORATE JkND POLITIC
5. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS:
LOTS 13 AND 15 IN BLOCK 311 OF HUNTINGTON BEACH, IN THE CITY OF
HUPITINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER
MAP RECORDED IN BOOK 3 PAGE 36 OF MISCELLANEOUS MAPS, IN TFE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
SCHEDULE B PART I ORDER NO. : 32-83510-03
(EXTENDED COVERAGE) POLICY NO. : 212757
ALTA LOAN POLICY
SCHEDULE B
EXCEPTIONS FROM COVERAGE
':HIS 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
1 . SECOND INSTALLMENT GENERAL AND SPECIAL COUNTY AND/OR CITY
TAXES FOR FISCAL YEAR 1993/1994, IN THE AMOUNT OF $4,225.66 .
2 . THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO
THE PROVISIONS OF CHAPTER 3.5 (COMMENCING WITH SECTION 75) OF
THE REVENU3 AND TAXATION CODE OF THE STATE OF CALIFORNIA.
3 . WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN
BY THE PUBIC RECORDS.
4 . COVENANTS, CONDITIONS AND RESTRICTIONS (DELETING THEREFROM
ANY RESTRICTIONS BASED ON RACE, COLOR OR CREED) AS SET FORTH
IN THE DOCUMENT:
RECORDED: IN BOOK 115 PAGE 142, OF DEEDS
SAID COVENANTS, CONDITIONS AND RESTRICTIONS PROVIDE THAT A
VIOLATION THEREOF SHALL NOT DEFEAT THE LIEN OF ANY MORTGAGE
OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE.
5. TERMS AND CONDITIONS OF THAT CERTAIN AGREEMENT FOR CON-VION
SIDEWALK PURPOSES, AND MAINTENANCE THEREOF RECORDED SEPTEMBER
13, 1975, IN BOOK 11507 PAGE 1833, OFFICIAL RECORDS.
6 . AN OIL AND GAS LEASE AFFECTING THAT PORTION OF SAID LAND
LYING BELOW A DEPTH OF (NONE SHOWN) FEET FROM THE SURFACE
THEREOF, FOR THE TERM AND UPON THE TERMS, CONDITIONS AND
COVENANTS THEREIN PROVIDED:
TYPE: COMMUNITY OIL AND GAS LEASE
DATED: MARCH 6, 1981
LESSOR: VIRBMANDAS ASRANI ARJUN, ELIZABETH S . ARJUN,
HIS WIFE
LESSEE: R. K. SUMMY, INC. , A CORPORATION
RECORDED: SEPTEMBER 2, 1981, IN BOOK 14206 PAGE 57,
OFFICIAL RECORDS
THE PRESENT OWNERSHIP OF SAID LEASEHOLD AND OTHER MATTERS
AFFECTING THE INTEREST OF THE LESSEE ARE NOT SHOWN. HEREIN.
AN ASSIGNMENT OF OIL, GAS AND MINERAL LEASES TO AMERICAN
PETROFINA COMPANY OF TEXAS, A DELAWARE CORPORATION, RECORDED
AUGUST 11, 1982 AS INSTRUMENT NO. 82-280014, OFFICIAL
RECORDS.
CO _E D
AUTHORIZED SIGNATORY
SCHEDULE B PART II ORDER NO. : 32-83510-03
l.LTA LOAN POLICY POLICY NO. : 212757
SCHEDULE B - PART II
TN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE
TAITLE TO THE ESTATE OR INTEREST IN THE LAND DESCRIBED OR REFERRED TO
:N SCHEDULE A IS SUBJECT TO THE FOLLOWING MATTERS, IF ANY BE SHO'VN,
BUT THE COMPANY INSURES THAT THESE MATTERS ARE SUBORDINATE TO THE LIEN
OR CHARGE OF THE INSURED MORTGAGE UPON THE ESTATE OR INTEREST:
NONE
C 'GNED
AUTHORIZED SIGNATORY
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RESOLUTION NO. 249
A RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF HUNTINGTON BEACH APPROVING AND
AUTHORIZING EXECUTION AND DELIVERY OF A LOAN
AGREEMENT WITH RESPECT TO 313 11TH STREET PROPERTY
BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH AND THE ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
WHEREAS, the Redevelopment Agency of the City of Huntington Beach (tire
"Agency") wishes to assist persons of low Income to obtain housing at an affordable cost;
and
The Orange Ccunty Community Housing Corporation (OCCHC), a non-profit
organization, wishes to create affordable housing opportunities within the City of
Huntington Beach by purchasing a property at 313 11 th Street for use as a mull-family
housing project; and
In order to ensure the affordability of the housing units and to rehabilitate the
property, the OCCHC requires financial assistance from the Agency; and
The Redevelopment Agency of the City of Huntington Beach currently administers
a redevelopment project In the City of Huntington Beach known as the Downtown
Redevelopment Project Area and the housing project will benefit the Project Area and Is
consistent with the adopted Redevelopment Plan; and
The Agency Is permitted under the laws of the State of Califomla and under the
Redevelopment Plan to use housing set-aside revenues to loan money for development of
new affordable housing; and
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the Goy
of Huntington Beach as follows:
l
7/313rtW12/14/91
SECTION 1 The Redevelopment Agency hereby approves the appropriation of
Six Hundred Thirty Five Thousand Dollars ($635,000) to be loaned to the OCCHC for
the purchase of 313 11 th Street for use as affordable housing
SECTION 2 The Redevelopment Agency hereby approves the loan agreement
and related documents in substantially the form on file with the Agency Clerk together with
any immaterial changes therein or additions thereto deemed advisable by the Executive
Director and approved by the Agency Counsel The Redevelopment Agency hereby
authorizes and directs the Executive Director to execute, and the Agency Clerk to attest
and affix the seal of the Agency to, said form of the loan agreement and related documents
for and in the name of the Agency
SECTION 3 This Resolution shall take effect on the date of its passage and
adoption
PASSED AND ADOPTED by the Redevelopment Agency of the City of
Huntington Beach at a regular meeting thereof held on the 20th day of December, 1993
Chairman
ATTEST APPROVED AS TO FORM
• �o 9, Co v7'r 0�1
Agency Clerk Agency Counsel l2��1j3
REVIEWE ND APPROVED INITIATED AND APPROVED
r�,t.�. c'
ecutive Director Redevelopment Director
2
7/313reso/12/14/93
Res. No. 249
STATE OF CALIFCRNIA )
C UNrY OF ORANGE )
CITY OF IRMINGIal BEACH)
I, 00NNIE 6CCKWAY, Clerk of the Padeveloptent Agency of the
City of ]imtingtcn Beach, California, DO ICY CERTIFY that the foregoing
resolution was duly adopted by the Redevelopment Agency of the City of
Huntingtm Beach at a meeting of said Redevelopment Achy held on the
20th day of December , 19 93, and that it was so adopted
by the following vote:
AYES: Menbers:
Silva, Bauer, Robitaille, Moulton-Patterson, Winchell , Leipzig, Sullivan
NOES: limbers:
None
ABSENT: Members:
Hone
Clerk of the Redevelopment of
the City of Huntington Beach, Ca.
PROJECr SELF-SUFFICIENCY
City or Huntington Beach
Community Services Department
2000 Male Street,P.O.Box 190
Huntington Beach,California 92643
(7I4)S3&S263
December 5, 1993
Barbara Kaiser
Deputy City Administrator
Economic Development
City of Huntington Beach
Dear Barbara:
RE: 31311TH ST., HUNTINGTON BEACH
I have been asked to address the issue of parking at 31311th St. in Huntington Beach,
as it may relate to Project Self-Sufficiency.
Many of our single parents do not own an automobile. Approximately 75% own one
car, and 25% use the bus as their mode of transportation. We have no parents on the
program who own two cars. If there are nine units, there will be no more than 9 cars
involved with the parking issue (and perhaps only 7 or 8).
If you have any further questions, please feel free to contact me.
Sincerely,
�Z� .iLd7�it�
Susan Edwards
Project Self-Sufficiency Coordinator
_NOV-12-93 FR l 17: 15 l BIFV ASSN OF REAL'1'ORS FAX NU. 84133-15 F. Ue
4 A
= I
A550CIATION of REALTORS'
8f015lrrltrA«rrrrrc•Nuullrrg;orr Braclr,CA 92647.6924-m4)847--Gn.4]-FAX MI)8#1.337.9
Novcmbcr 12, 1993
Mayor Grace Winehell
Members of the City Council
City of Huntington Beach
2000 Main Street _
Huntington Beach,CA 92648
RE: Agenda Items E-11 and F-3
Honorable Mayor and Councllmembers:
On behalf of the Huntington Beach/Fountain Valley Association of REALTORS, I would
Iike to express our strong suppport for the affordable housing projects being considered for
acquisition and operation by the Orange County Community housing Corporation.
Members of our Association have had an ongoing relationship with OCCHC for the past
several years and can attest to this agency's crrdbility, and the caring but effective
management practices employed within the affordable rental rousing projects that they
operate throughout Orange County. We met with their executive director,Allen Baldwin,
this past Monday to discuss the specifics of these two proposals and offer our
unconditional endorsement.
Shirley Commons Long, a past president of our Association, who has been on OCCHC's
Board of Directors since 1985 and who has twice served as chairman of their board, t
arranged for a number of us to have the opportunity to visit firsthand several of
OCCHC's housing sites a couple of years ago. To say we were impressed is an
understatement--in fact, we were Iiterally amazed by the quality of the housing, the
maintenance, and the obvious pride that the residents had in their homes. OCCHC has an
excellent track record in this regard, and not only assists their residents with their housing
needs, but organizes family-oriented events to help develop their "sense of community"
and has even established a scholarship program to assist residents'children with college
expenses.
0( HC and Pro1l4 wcl / also plcw,wA to
/AA t1e V' ,ert self
Sufficiency--another excellent program. Vc urge you•to move forward with both OCCHC
affordable housing projects under consideration this evening. You will be proud of the
results!
Sincerely, '
Pat Pau1k ,�
Association President
93110ME11/12nhcc0CCHC2i(hss• �
PAI ALILK,Presi.ent-LUCILLEHAKA101Y,ArstVicePn!sidenr
!w� ANNEPUGH,Second CLOUGHEN.5PtreinrWITreaswer
Virerrurs.rLORENCE SE11-101IN FITZPATRICK•JD£UGHTl,MAN•11M hIcL.R LICHLIN-ANTHC)NY CFIR I.MN SEN
WILL L.WOODS,Executive Wce President-JUDITH A.LEGAN,Vice Prcfidt'rrt/1'aGlic Af,�airs
W, D
Nov1p1993
J�u� 7JG t�l. d a CITY OF E"-ACH
` a i Y COL't;L C:FiCS
November 7, 1993
To The Honorable Mayor Grace Winchell and Members of the
Huntington Beach City Council;
I have had the pleasure of serving on the Board of Directors
of the Orange County Community Housing Corporation since 1985.
I am extremely pleased and delighted that the City of Huntington
Beach is considering several projects in coordination with this
organization. You will be receiving from OCCHC a copy of their
annual report, which will show them to be extremely stable
financially, and also show you some of their many accomplishments
in furnishing "employee housing" for the large, low income
families of Orange County. Some of the things that the brochure
does NOT tell you are as follows: 1 . One of the major goals
of OCCHC is to break the cycle of continuation of the welfare
family, and to this goal they have developed the following
programs; 2. To encourage being a good tenant, the families
who pay their rent by the third day of each month have their
names placed in a drawing which occurs monthly at the Board
of Director's meeting, for a $25 gift certificate. Those tenants
who have paid their rent by the third day of each month for
more than 6 months participate in a drawing in December for
$500. 3. A scholarship program was established several years
for the children of our tenants who are going on to college.
They are encouraged to apply to us for book and tuition costs,
and sometimes a nurse's uniform. 4. There is the Compadre
Fund, which is available in the event of extreme need for a
"no interest" loan, but one that is offered on an agreeable
pay -back schedule, so that others may benefit from it.
5. There is a Tenant's Advisory Committee, which meets quarterly
at alternating complexes, where the tenants have an opportunity
to voice their concerns, or perhaps express a need. . .these
recommendations are brought forward to the Board of Directors,
and almost always approved. 6. Finally, once a year all the
children (and there are many) are invited to participate in
a special activity. .the last two years their special day has
been a day at Wild River. The children were our guests, but
the parents and in some cases the grandparents, were invited
to come at a very special rate offered our group by Wild Rivers. .
a wonderful day filled with lots of fun and family picnics.
The years before that the children were taken out for a day
of fishing (chaperoned by some staff, and some Board members)
on a large sport fishing boat.
The reason I wanted to share these things with you is that
I believe that OCCHC is working hard and succeeding in helping
families to become good citizens in their communities, and their
children to become contributing citizens of tomorrow.
M 1
�l 7/Y-d�6�3d3
You will be looking at two prospective projects in the
City of Huntington Beach. One is located at 313 11th Street.
This is an older building, a one time hotel, currently existing
in very poor condition, and loaded with code violations.
Negotiations are under way with the lender (who owns this as
a foreclosed property) , and there is strong hope that they will
come to a satisfactory conclusion. This building, revitalized
by OCCHC, is being "thought of as housing for our Project `Self--
Sufficiency families. What a wonderful opportunity to assist
a wonderful project, totally supported by the residents of this
city, and improve our sadly lacking affordable housing
requirements in the downtown redevelopement area of Huntington
Beach. I know you will do all you can to see this project
accomplished.
The second project is a 4/5 plex in the Oak View area of
Huntington Beach. This is an opportunity for OCCHC to do one
of the things that it does best. . .and that is improving the
area where it locates. The Oak View community really needs
the kind of management that OCCHC offers.
I regret not being able to be present at this consideration,
but I will be in Miami attending a National Association of
Realtors meeting, where, as a Director, I serve on the Housing
Needs Committee, the Land Use Committee, the Coordinating
Committee and the Board of Directors. I sincerely hope that
you will look favorably on these proposed projects. When you
do make a favorable decision, you will see why I feel so strongly
about Orange County Community Housing Corporation. Thank you
for your consideration and support.
Yours truly,
Shirley Commons Long [J
lgCITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
HVNTINGTON 91KH
TO: Barbara Kaiser, Deputy City Administrator
FROM: Lloyd Dich,Chief Inspeetorc;;(o
SUBJECT: 31311th Street
DATE: 11/23/93
In clarification to the memo written 8/25/93, my comment as to not recommending
the city to purchase this property was on the determination that major,
rehabilitation would be needed to bring all nine units up to a reasonable standard.
When we met and did our walk-through inspection,I only made reference to the
asking price of the property and seeing that another estimated one to two hundred
thousand be added for rehabilitation. At this time,we did not have the
understanding that a price reduction was going to be made for any repairs. I hope
this clarifies my earlier response which differed fgom your staff recommendations.
CC: Pat Spencer
Ray Silver
TABLE 1
INCOIVE RANGES AT VARYING HOUSEHOLD SIZES
1993 INCOME STANDARDS
CITY OF HUNTINGTON BEACH
REDEVELOPMENT PROGRAMS
INCOME LEVEL VERY LOW INCOME LOW INCOME MODERATE INCOME
OOA TO 50%OF MEDIAN 500k TO 80%OF MEDIAN 80%TO 120%OF MEDIAN
HOUSEHOLD SIZE
1 PERSON $0 $19,780 $19.780 $31.640 $31,640 $47.460
2 PERSON 0 22,600 22.600 36,160 36.160 54,240
3 PERSON 0 25,430 25.430 40,680 40,680 61.020
4 PERSON 0 28,250 28.250 45,200 45,200 67.800
5 PERSON 0 30,500 30,500 48,800 48,800 73,200
FEDERAL PROGRAMS
INCOME LEVEL VERY LOW INCOME LOW INCOME(1)
00/b TO 50%OF MEDIAN 50%TO 70%OF MEDIAN
HOUSEHOLD SIZE
1 PERSON $D $19,780 $19.780 $27.690
1.5 PERSON 0 21,190 21.190 29,660
3 PERSON 0 25.430 25,430 35,600
4.5 PERSON 0 29,380 29,380 41,130
6 PERSON 0 32.780 1 32,780 45,890
(1)MAXAMUM INCOME SET AT MINIMUNI OF NATIONAL MEDIAN OR 8Q%OF AREA MEDIAN
SOURCE.KEYSER MARSTON ASSOCIATES,INC.
FILE NAME:INCSUM;MAY.1993
r
Status of Production Housing
Requirements
(Fifteen percent of all units in project areas must be affordable
and 40% of these affordable to very low income households.)
Units Low& Low& Deficit or
Proposed Low]Mod Low/Mod Surplus
& Existing Required Produced Units
LHuntington
1,853 278 145 -133
69 10 0 •10
403 85 123 104
86 13 0 -13
0 0 0 0
Net Replacement Housing
Requirements
(Any unit occupied by low income household that is destroyed
must be replaced and can be anywhere in the city.)
Units Low Very Low
Main-Pier -102 -38 -13
Oakview 10 7 S
Huntington -1 0 -Z
Center
Talbert-Beach 87 49 41
AFFOWNA..PT E HOUSING COST PER UNIT
INSIDE PRO�lECI AS
Project/ Total Very Total Assistance
I&O1.io Units -Moderate Iz I&M Assistance Per Unit
EORSALE:
Third Block West 68 33 -- $825,000 $25,000
300 Alain
M-P Phse H 80 7 --- 5 Unknown Off-site
Blk 1041105
500 Lake St. 10 2 — --- $ 50,000 $25,000
In lieu fee
Seaview Village 80 25 -- — $750,000 $30,000
(38 in DDA)
FOR PENT:
Yorktawnl 25 — 15 10 $1,000,000, $40,000
Lake (Seniors) minimum
17171 Elm 13 13 — $353,000 $270154
(proposed) (rehab)
OUTSIDE PROTECT AREAS, ^
Project/ Total Very Total Assistance
lenotionni Moderate � ' an r Unit
FOR SAJX:
Brisas del Mar 44 --- 14 — $378,000 $27,000
(proposed)
Habitat for 2-4 2 2 $182,0001 $45,000-
Humwi ity (family units) 91,000
(proposed)
1OR Fla:
Five Points 164 --- 16 32 $250,000/loan $15,625
Senior Villas $500,000/grant
Utica Apts. 36 18 18 $600,000 $161700
(proposed) (rehab)
1 Inclides contribution of land only. May also require payment of development fees, architectural
services and construction subsidies
t kt LEA Ze :�,D U4 c7FH I.HL FED zPEk- H�nElti•�1 ��L—�tL� f F c
5 p 1
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J �� r�w� ` qy
7 J# ra 1 91 jlY'l,;W hh"pt t,S 4411 `;4 t;b AhgY71 `4ill11d�11(� A! II 1
(310)24 700 r j
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J^r {y It Ce � OO
IME QW CIMPANY iS LIQRN9ED PY Ttik Q�PAMT ENT aF CQAAARA' fQ1d�
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€ TOI TOO PATTR4AtM9 (21�) P33—Z605 4 I a t
6
k V RE 93-18685
IMPERIL" BAHR
COSTA MESA OFFICE #08
14 TOWN CFNTRR DR til
a ,
+ COSTA MESA, CA 92626It
Clr g
r CREQIET COMMEAQE ESCRPW COXPANY !
?{'J ACCO*T # 024 96
FOR 01FPOSTT tO E'SCROW 093-18685—.78
Its i M` eP* RESERVE ROS,Tl'ING # ;22 .30$ 444
r{I e I HOPR YPU ARE FOLING $MER1 ! !
1 PAGE TOTAL
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REQUEST FO;,,.,REDEVELOPMENT AC, ,. CY ACTION
ED 93-41
Date: November 15, 1993
Submitted to: Honorable Chairman and Redevelopment Agency Members
Submitted by: Michael T. Uberuaga, Executive Direc or 7�__
Prepared by: Barbara A. Kaiser, Redevelopment Director°
Subject: Authorization to Negotiate Acquisition or 313-11th Street in the
Downtown Area for Affordable Housing .
APPROVED BYE 'C UN iL
Consistent with Council Policy? [ X ] Yes [ ] New Policy or xception
CrY CURK
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Atta ents:
//_
Statement of Issue:
Staff has been exploring the purchase of 313-1lth Street, a nine-unit, substandard residential
building for use as affordable housing. Parties to the discussions include the current owner which
is California Federal Bank, the nonprofit Orange County Community Housing Corporation, Project
Self-Sufficiency, and Agency staff. Conceptual agreement has been reached on a proposal between
all parties, and City Council direction is required prior to continuing negotiations.
Recommendation:
The Redevelopment Agency directs staff to eetplete negotiations for the purchase, sale, and
rehabilitation of 313-1Ith Street with California Federal Bank, Orange County Community
Housing Corporation, and Project Self Sufficiency, for the development of nine units of affordable
housing on the terms and conditions outlined in this report.
Analysis:
The Redevelopment Agency recently directed staff to find an alternative to meeting the affordable
housing requirement for the Coultrup Main-Pier Phase II project onsite. This was due primarily to
the costs of developing very-low and moderate-income housing within the 80-unit condominium
project. The requirement for the Coultrup project is for 12 units of affordable housing to include 7
moderate-income and 5 very-low-income units. Since that time, staff has been reviewing
alternatives, and has identified a building for sale by California Federal Bank (Cal Fed). Cal Fed
acquired 313-11th Street, a multi-family building with nine units, under a foreclosure action. The
11
building requires substantial rehabilitation, and has been the subject of many citations
by code enforcement and Building division staff. In addition, the building is
nonconforming due to the existence of nine units in an area where two replacement
units would be allowed. However, the building will not be demolished by the bank,
and it would be resold to another owner who would continue to operate the building, as
is, or with minimal improvements. Reports from both Building inspectors and code
enforcement staff are attached.
Staff contacted the Orange County Community Housing Corporation (CHC) who, in
the past, has expressed interest in developing affordable housing within the city. They
are an active non-profit organization, developing affordable housing in Orange County.
Information on their organization is attached. They toured the building with staff from
the Building division, code enforcement, and Project Self Sufficiency. CHC has
expressed an interest in owning the building and operating it for affordable housing.
They have agreed to join with Project Self Sufficiency and make the units available on
a priority basis to PSS participants. Since the building will be debt free, the rents will
be based on the costs to operate and maintain the building only, and will be affordable
to very-low-income tenants. As the City Council is aware, very-Iow-income units are
difficult to develop within the city due to land and building costs.
Cal Fed has tentatively agreed to a purchase price of$630,000 for the building. Their
appraisal indicates a value of$720,000. A portion of the purchase price will be placed
in an escrow account to cover the costs of rehabilitation, based on bids acceptable to
the Building division. The building will be brought up to code, and will include new
wiring and plumbing, removal of asbestos, if required, replacement of decking, new
paint, and rehabilitation of kitchens and bathrooms, as needed. The building will be
owned and operated by CHC.
Staff recommends approval to continue negotiations for the following reasons:
1) The building will provide 9 very-Iow-income units, partially meeting the affordable
housing requirement of the Coultrup Main-Pier Phase 1I project. The affordable
housing obligation has been assumed by the Agency under that contract.
2) The 9 very-low-income units will be available to PSS participants on a priority
basis. This provides a critical housing need for PSS participants. The units are
large and will contain 1 and 2 bedrooms, making them ideal for the PSS program.
3) The building has been subject to numerous citations from code enforcement and the
Building division. A complete rehabilitation of the building will eliminate these
problems in the future.
4) Cal Fed is willing to adjust the purchase price to include the costs for the
rehabilitation work. This assures that funds will be available to bring the building
into compliance with building codes.
2
s
5) The Orange County Community Housing Corporation has an excellent reputation
for operating affordable housing. They are also experienced in rehabilitating
buildings, and have already retained the services of an experienced architect. The
building will be owned and operated by CHC, with covenants restricting the units
to very-low-income in perpetuity.
Upon the completion of negotiations, all deal points and documentation will be
submitted to the City Council for review and approval.
In addition, staff has attached a portion of the newly approved AB 1290 legislation.
AB 1250 establishes an alternative means of satisfying the inclusionary requirement.
Instead of providing units within the project area, the Agency may meet its inclusionary
housing requirement by providing w�units of housing affordable to persons of low-or
moderate-income, outside the project area for ta�h housing unit which otherwise would
have to be available inside the project area.
Funding Source:
Redevelopment housing set aside funds will be used for the project. No expenditure of
funds is required for this action.
Alternative Action:
1) Direct staff to terminate negotiations.
Attachments:
1) Building and Code Enforcement reports.
2) Property information.
3) PSS letter of support.
4) AB 1290 legislation.
5) OC Housing Corp. background.
NITUIBAK:ls
681
3
J
313 11th STREET
HLTNTENGTON BEACH, CALIFORIVZA
DESCRIPTION Two story woodframe and stucco construction There are five 1 BR\1 BA
units ranging from 575 to 655 square feet and four 2 BD\1 BA units
ranging from 667 to 675 square feet
UNITS 9
1 EAR BL ILT 1920
BLILDLNG SIZE 6 167 Sqaure Feet
LOT SIZE 50 x 117 5 \ 5 875 square feet
ZONING Townlot Specific Plan Area
PARKING Four enclosed spaces and street parking
d
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$720 000
LXVF_STjNlF_NL"r NFORMATION
9 313 1 Ith STREET HUIN"rNGTON BEACH CA
77777`7*r=�777r�r
D STATE'i
S720,000 9.5 6.5 $116.75
S144,M N 20% $80,000 1920
............
DOS iNPAI'iNTENTTERCEN"r :'�.�-.:%':..`:. .%..'..,- ...CPU ':' TAR BUIM,
----------
.. .......
A NINUAL[ZED OPERAT LNG DATA'�,
SCHEDULED GROSS INCOME $38,830 $75,160
LESS VACANCY 7% $5,275
GROSS OPERATrlsG INCOME S70,085
LESS OPERATING EXPENSES 33% ($23,614)
NET OPERATING INCOME S46,471
(1) CURRENTLY THERE ARE FOUR UNITS VACANT DUE TO TRANSITION FROM RECEIVER
TO CURRENT ON%NT-RS. IN THE PROCESS OF LEASING VACAN-F UNITS.
'T 'T
ANNU.,MZED ESTIMATED E.XPENSF-S:,.,, -,:;'REN
"(1.13393%) $8,164 2 2BD12BA 667 $700-S750
PROFESSIONAL MANAGEMENT $6,000 2 2RD1IBA 675 S700-S750
GARDNER $600 2 IBDXIBA 655 $695
LNSUR4NCE $1,000 2 IBDkIBA 675 $695
COMMON AREA UTILITIES $1,200- 1 IBD\IBA 627 S600
WATER AND SENVER $t.600
TRASH $800
NIALN'TENANCE AND REPAIRS S3,500
RESE P%T-S S750
TOTAL ESTIMATED EXPENSES $23.614
This info-mation has been secured from mwrcei dt"ned to he reliable.we maLe a*representations or warranties,expressed or
or implie l.as to the accuracy or the wronnatioit.Buyer must verify the inrormation and bears all risk for any inaccuracies.
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California Federal Bank
F1e No. 9 -089
May 19, 1993
Califomia Federal Bank
5700 Wilshire Blvd., Los Angeles, Ca., 90036
File Number. 93-089
George Washofer
In accordance with your request, I have persorally inspected and appraised the real property at:
31311 th Street
Huntington Beach,Calif 92648
The purpose of the appraisal was to estimate the market value of the property, as improved,
in fee simple, unencumbered by liens. A legal description of the property will be found herein.
In my opinion,the estimated market value of the property,as of May 19, 1993 is:
Seven Hundred Twee Thousand Dollars
($7zo0ao)
The attached report contains the description, analysis and supportive data for the conclusions
and final estimate of value together with descriptive photographs.
Gilbert A. Valdez#5089
State General Certification#AG00
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•i
PROJECT SELF-SUFFICIENCY
City of Huntington Beach
Community Services Department
2000 Main Street,P.O.Box 190
Iuntington Beach,California 92649
k714)53&5263
October 28, 1993
Barbara Kaiser
Deputy City Administrator
Economic Development
2000 Main St.
Huntington Beach, CA 92648
Dear Ms. Kaiser:
RE: LETTER OF SUPPORT FROM PROJECT SELF-SUFFICIENCY REGARDING 313
11th STREET, HU14TINGTON BEACH
This is a letter of support for the project at 313 iith Street,
which you are in charge of.
As you are aware, Project Self-Sufficiency is a local Huntington
Beach program which assists low income, single parents who live or
work in Huntington Beach. We assist them with housing, job
training, child care, food etc. It is impossible for us to get all
of the section 8 rental assistance through the Orange County
Housing Authority that we need. We are therefore seeking
alternative methods of housing our single parents who are part of
PS-S.
It has come to my attention that you and Alan Baldwin (O.C.
Community Housing Corporation) are working on a plan which I feel
is very exciting. The city of Huntington Beach, along with Alan
Baldwin and his organization will purchase the units at 313 llth
St. H.B. , and Alan and his organization will be in charge of
renting the units. Project Self-Sufficiency will then be able to
house single parent families at that address. This will assist PS-
S greatly and solve a very big problem for us; namely additional
housing opportunities. As you recall when we visited the site last
month, we discussed the bedroom sizes. I believe that there are
two of the units which have a dining room that could be changed
into a bedroom, making them 2 bedroom units instead of 1 bedroom
units. if this is a possibility, 2 bedroom units could accomodate
our participants a little better than 1 bedroom units.
Thank you for your time. If you have any questions, please do not
hesitate to call upon me. I find this a very exciting opportunity
for Project Self-Sufficiency. It is a perfect example of the
Public/Private partnership that this program is founded upon.
Most Sincerely,
Susan Edwards
Project Self-Sufficiency Director
AB 1290
Section 24 (page 39)
Amending Health & Safety Code
Section 33413
Former Law:
Requires that at least 30 percent of all new or rehabilitated housing units made available
by an agency, and 15 percent of all new or rehabilitated dwelling units developed
within the project area (by parties other than the agency), be affordable to persons and
families of low-or-moderate-income.
AB 1290:
1) AB 1290 allows a redevelopment agency to count every two affordable housing
units developed by the agency outside of a project area as one affordable project
area housing unit.
2) The act defines "substantial rehabilitation" as meaning work constituting 25
percent of the after-rehabilitation value of the dwelling.
3) An agency is allowed to aggregate its new or rehabilitated affordable housing in
one or more project areas in order to satisfy the requirements of the sections, so
long as the aggregation does not cause or exacerbate racial, ethnic, or economic
segregation.
4) Agencies are allowed to count housing units made affordable pursuant to
affordability covenants (either purchased by the agency or regulated by its
governing body) toward their replacement housing requirements if the affordability
covenants are kept in place for 30 years.
5) An agency's five-year implementation plan (newly created under AB 1290) must
set out a plan to comply with the provisions for new and rehabilitated housing.
6) The plan is required to be reviewed and updated every five years along with the
city's general plan.
7) AB 1290's housing provisions sunset on January 1, 1997.
(From Katz Hollis Report - October, 1993)
ORANGE COUNT`
COMMUNITY HOUSING CORPORATION
October 12, 1993
- Barbara Kaiser
--City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
RE: PROJECT SELF;SUFFICtNCYIOCCHC JOINT PROJECT
Dear Barbara:
It is requested that the-.-City,ofiHuntington'••Beach approve the concept of
utilizing redevelopment funds"an_ d=other ,federally-iearmarked funds to assist
Project Self Sufficiency and OCCHC in'-creating;-a.,permanent affordable
housing residence for single moms.,•-This conceptual.(ENA).approvaI is sought
at this time to assure,,the ,ban'k.---that;o wns'the;..ptoperty;that the City and
OCCHC are able to commit :to the`;.acquisition jonce'. the negotiations are
finalized. :
The cooperation of the 15 year old housing!nonprofit, OCCHC, and the
innovative and popular Project Self�Sufficiencyrhas,been encouraged by the
City of Huntington Beach to create an.growth-environment for single mothers
which will enable them to transition`to theiKown apartment and independent
living. i
OCCHC's focus and objective is to create''decent and affordable housing for
very, very low income large families 'so)ttiat they, then, can go about the
difficult task of socializing and educatingrtheir children, the next generation.
NVe have scholarships, counseling and.'otherprograms which assist the parents.
Coincidentally, last night, the La Habra"City Council unanimously approved
Mary's Home, a transitional housing program for 28 female-head-of-household
families which will provide a campus=like setting with day care, counseling,job
training, health services and parenting ciasses. Huntington Beach's Project is
a simplified version of that projecti'titilizing all the tools of Project Self
Sufficiency to help single mothers get'+an their way.
;� fE I E a -�•,
1833 East 17th Street, Suite 207. Santa Ana, California 92701 (714) 558-8161
OCCHC's architect and property management staff will be meeting with
Project Self Sufficiency on October 28, 1993, to discuss design considerations
and the refinement of an operating proforma which will have OCCHC
managing, but PSS placing and providing PSS services to the residents. The
financial, operational and legal responsibilities will-be OCCHC's.
This bank-owned foreclosed building provides a unique opportunity to create
a hospice for single moms which will enable them to work, succeed and
parent.....and this building becomes a permanent housing resource for the
community.
Our boardmembers include a former planning commissioner,Joe Boyle; former
mayor, Jack Green and current resident and.County Planning Commissioner,
Shirley Commons Long. They stand behind our corporate assurances on this
project.
OCCHC,in cooperation with your department and Huntington Beach's Project
Self Sufficiency, looks forward to this project becoming a model for other cities
in Orange County and Southern California.
Enclosed are copies of OCCHC's 1992 Annual Report which include our latest
Audit as well as information on projects we have built, own and manage.
Yours truly
PC:
C
AM UP. Baldwin
Executive Director
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ORANGE COUNTY COMMUNITY HOUSING CORPORATION
TO BUILD AND SERVE
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Annual Report
A MESSAGE FROM OUR CHAIRMAN
Dear OCCHC Compadre:
Our volunteer board is committed to creating permanently affordable housing for very low income
large families-families earning less than 30%of the median income of$56,900(family of 5)or
approximately$17,000.That equates to providing a three bedroom apartment for less than$500
per month......not an easy task.
It's not just housing either. We have a Scholarship Fund to help our residents with college costs and a
Campership Fund for the younger set. Many residents go on to college and are honor roll
students. It is our intent to see that every resident's child has the opportunity to go to college.
This is why we call it service-enriched housing.
This past year was operationally solid in that we had no vacancies and were able to help others with
their agendas,such as OC Fair Housing Council,California Housing Finance Agency,OC
Homeless Issues Task Force,OC Mental Health Housing Advisory Committee,Countywide
Housing Task Force,OC Affordable Housing Clearinghouse, H.GM.E.S.,Jamboree Housing,
and others in the private sector such as Merril Butler and Urban West. OCCHC knows that it
alone cannot create the needed affordable housing and is committed to helping others to produce
such housing.
Also,we continued with our$1 HUD lease program which has been great for transitional (2 years)
housing.When a family is in a shelter and not quite ready for a market rate apartment,our
transitional program enables them to live for about$350 per month for two years while they get
things together for the move to a fully independent life style.
Our challenge for I993 will be the implementation of the new federal HOME program by purchasing
and rehabilitating apartments for our 25%of median families.
We encourage you to read your community's Comprehensive Housing Affordability Strategy
VCHAS")which is available at City Hall and/or your public library. 1f you feel that the CHAS
needs improvement,all you need to do is write the City Manager or Community Development
Director. We use the CHAS as a reference point to develop housing.Call us if you want more
information on how you can improve your community's CHAS.
Shirley Commons-Long
Chair, 199I-1992
PS:if you like what you read in this 1992 Annual Report,a good
�~'•-. �� `' way to show it would be to make a donation to our Compadre
Fund(0%loans for housing needs)or to our Scholarship/
1 Camp Fund. Our Federal 1D number for your donation is
95.3221290.
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1 - _
OUR HISTORY
SERVICE — THE SEED FOR GROWTH
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The Early Days
The Orange County Community Housing Johnson engineer Gloria Lopez Colonia OCCHC is different from most developers
Corporation(OCCHC)was founded in 1977 Rep Vicente Mas county planner and Ralph because we own and manage the properties we
by a group of residents committed to solving Kennedy urban planner build—for the life of the properties This
the region s growing affordable housing Since that time OCCHC has developed guarantees cities long term affordability and
problem These community leaders met with 125 units of housing affordable to very low quality management
public officials to ensure that federal income families in the cities of Garden Although OCCHC is a non profit
Community Development Block Grant funds Grove Santa Ana Newport Beach corporation we are managed by skilled
were administered for maximum benefit to Anaheim Dana Point Cypress Placentia and professionals with years of experience in the
low income families Irvine Most of the units are owned and building industry Professionalism is key to
As a result of these meetings participants managed by OCCHC The corporation s every aspect of our business—from the way
agreed to create an independent non profit assets currently exceed$6 6 million we manage projects and work with city
corporation to administer the community partners to our track record of delivering
based program Today this organization is OCCHC—More Than A Builder projects on budget and on time OCCHC s
OCCHC OCCHC is more than a builder of board members also are professionals in real
Leadership in the early years included permanently affordable rental housing Our estate and related fields and demand the
Richard Friedman current senior staff counsel mission is to create stability for low income highest quality and performance from our
for the State of California Housing and families through the vehicle of affordable staff and projects
Community Development Department housing Secure housing helps families estab To Build and Serve is our motto It is a
Manny Mendez architect Elsie Kroesche and lish stable productive lives to ensure the future simple clear mission that will guide our
Mary Miller League of Women Voters Bob for their children and our future as well growth and success for decades to come
1
OUR CAPABILITIES
For the past 14 years the Orange County
Community Housing Corporation has worked f
with Orange County cities to create develop
and manage quality affordable housing
Newport Beach r
Domingo Avenue Apartments * § F
MODELS OF EXCELLENCE 1981
OCCHC is recognized for its excellent OCCHC created 28 units ---
i
affordable housing product City officials of affordable housing in
East Bluff in cooperation
often point to our projects as examples of with the Orange Countyi
successful low income residential Chamber of Commerce A aggr
and Daon Corporation
development Our properties serve as models -raS
for affordable housing throughout Orange (�•iJ
County
OCCHC offers cities an impressive track
record of performance All of our projects are
100 percent occupied at completion Also we
have not had a single eviction in our history l a r
Anaheim
Berry Street Apartments
1981
The Berry Street four plex
in Anaheim was OCCHC s r
first project The complex
features three bedroom
units to give large
families ample space Ihy
�iun.d- t � �ro�f�o� oun1
2
TO BUILD AND SERVE
8{1 i r MAKING THE CITY S JOB
6 t� t ,, i 7 tar 1Jt SMOOTHER EASIER
OCCHC offers extensive experience and
r
l resources in every aspect of affordable housing
a
n Dana Point Over the years we have helped cities save
a, < Coffield Apartments
significant time and money because we
1984
{a - understand the process regulations agencies
r 1 OCCHC worked closely
' with the County o/Orange and funding opportunities relative to
Dana Point Design affordable housing development
Advisory Board Orange
County Planning Commis
sion and Cal Trans to
c S EXPERTS IN VERY LOW INCOME LARGE
develop
CoHieldApart anti
Apartments The FAMItYHovsING
Planning Commission
praised the project as a OCCHC specializes in affordable housing
model of quality
affordable housing for very low income large families
Our signature product offers two to four
a bedroom units and includes ample landscaped
r ri
play areas picnic areas and centrally located
laundry facilities For residents—most of
' whom have lived in sub standard
r4l, overcrowded conditions—OCCHC housing
� Irvine
�7 { Condominiums is a dream come true
1990
q
f
In cooperation with the
City of Irvine and the non
profit Irvine Community
Housing Corporation
OCCHC purchased six
''r L• , {,, units of housing which
DU*- t if were made available to
�( very low income/ami
C�V lies To keep rents afford
able OCCHC secured a
special low interest loan
through ITT Federal Bank
in association with the
Federal Home Loan Bank
3
OUR CAPABILITIES
OUR PRIDE SHOWS—PROPERTY
MANAGEMENT PERFORMANCE
Long after construction is complete and
resident families have moved in OCCHC is
there—with meticulous attention to
Garden Grove
' =r
maintenance upkeep and responsiveness to Buena Street Apartments1990
tenant calls Hands on property management
OCCHC s 28 unit Buena r7 ,}
is key to our business philosophy Street apartments capped
off Garden Grove s effort
to revitalize the Buena
RESIDENT SERVICES ASSIST Clinton neighborhood
once considered one of
FAMILIES COMMUNITIES the worst slum areas in
Orange County The city
OCCHC exists to serve people—especially identifies the property
young people as a symbol of the
neighborhood s dramatic
Our Resident Services Program underscores turnaround
our philosophy that we are more than a
housing developer—we are dedicated to
helping families achieve stability security andl�c - �t
P
a bright positive futureIle
Through our Resident Services Program wes� ar P r r
regularly distribute educational information ' �� ��F
Garden Grovel r
on scholarships special classes and Keel Street Shelter t r r
1990 itl d "
community college programs We also provide
information on safety and security health An unusual project for t iq
S K h the eel Street
care babysitting drugs alcohol earthquake OCCHC
Shelter is an eight unit " r f� P psi aid
insurance and financial issues r a
preparedness family shelter providing i�i IY
and other aspects of family management permanently affordable91 �Y
housing OCCHC worked
with Orange County BIA s HOMEAIO the Fieldstone tJW (i1 S (J� GA wI/�1 yt �f 6/'(e,(A(�, '
Company City of Garden 1 J
Grove Shelter for the
Homeless and Thomas
House
4
TO BUILD AND SERVE
PROFESSIONAL STAFF
EXPERIENCED BUILDERS
OCCHC is a non profit corporation
Carnehan Street
Anaheim 1992 offering claw a full range of benefits not
Poplar Street provided by for profit builders At the same
Santa Ana 1989
time we are staffed with skilled seasoned
professionals
OCCHC assisted the Flores Project management is an important aspect
and Jalmes Families each of our work and includes monitoring
family with seven children
and homeless at the time— contractors schedule and budget We also
by purchasing foreclosed work closely with our city contacts to keep
homes renovating them and
renting to these families at them updated throughout the entire
affordable rates development process
OUR ACCOMPLISHMENTS
s7 Developments are listed in chronological order
710 5�
91 ANAHEIM GARDEN GROVE
605 • Berry Street Buena Street
ANAHEIM 55
• ANAHEIM SANTA ANA
405�—22 Camehan Street Van Ness Street
r'#LONG GARDEN GROVE ANAHEIM SANTA ANA
BEACH,, It SANTA ANA Gilbert Street Poplar Street
NEWPORT BEACH IRVINE
It
x llIl't i • Domingo Avenue Condominiums
IRVINE CYPRESS GARDEN GROVE
10, 'a Pjf ,vt s LaSalle Street Keel Street
i i f air DANA POINT
DANA POINT GARDEN GROVE
Domingo Street Buena Street
OCCHC DEVELOPMENTS THROUGHOUT CYPRESS GARDEN GROVE
ORANGE COUNTY LaSalle Street Buena Street
PLACENTIA
Vista Street
5
BOARD OF DIRECTORS
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Left to right Standing Amin David Jose Vargas Joe Boyle, Mike Le Blanc Jose Alvarado Salvador Urbma Seated Jesus Garcia, Lila McDonald Jack Green
Shirley Commons Long Bob Johnson Jean Ablott Ken Cames not pictured Father Ed Poettgen and Crystal Sims
Board of Directors Joe Boyle past chairman to the California Real Estate Advisory
Joe Boyle is a professor of political science and Commission and also represents Orange
Members of the Orange County Community urban politics at Cypress College Joe has been County s second supervisonal district on the
Housing Corporation board of directors are involved in urban affairs and housing for more OCCHC board
distinguished professionals who serve in a than 25 years having served as a housing
volunteer capacity Each of the county s five legislative aid to a United States congressman Amin David
supervisors has an appointed representative and a planning commissioner for the City of Amin David owns a plumbing supply business
on the bo-ird Huntington Beach He represents the fifth in Anaheim and is well known for his work
supervisorial district on the OCCHC board on immigration issues in Orange County
Amin is chairman of Los Amigos of Orange
Jean Ablott treasurer Ken Cames vice chairman County and represents the Anaheim Citron
Jean Ablott is active with the Orange County Ken Cames is director of POS Associates neighborhood on the OCCHC board
League of Women Voters and served as the a consulting firm specializing in strategic
board member in charge of the League s planning management audits human Richard Friedman emeritus
housing portfolio for several years Jean also was resource management and research Ken was Richard Friedman is an attorney who has
chairman of Community Housing Enterprises instrumental in founding the Orange County been involved with housing issues for more
a non profit organization established to work Fair Housing Council in 1966 He also has than 15 years Richard currently is senior staff
with the Coastal Commission to create served as a member of the City of Orange counsel with the California Department of
affordable housing programs planning commission Housing and Community Development
Prior he worked for the County of Orange
Jose Alvarado Shirley Commons Long 1991-1992 chairman Department of Housing and Community
Jose Alvarado is a resident of OCCHC s Shirley Commons Long owns her own Development and the Orange County Fair
Coffield Apartments in Capo Beach and is residential real estate company in Huntington Housing Council Richard was a founding
active in the community s Neighborhood Beach She is a real estate broker and a member and director of OCCHC
Watch program Jose serves on OCCHC s director of both the California Association of
Resident Advisory Committee Realtors and National Association of
Realtors Shirley is a gubernatorial appointee
6
BOARD OF DIRWTORS
Jesus Garcia Lila McDonald
i Jesus Garcia is one of the original residents of the Lila McDonald began her involvement with
i Colfield Apartments,his family has resided there affordable housing in the I97ds,working fin
r since 1984.Jesus was vM active,along with Orange County Supervisx Ralph Diedrich.
s M(-signor Coffiield,in the neighborhood Lila currently is a housing commissioner with
organizing that advocated for affordable housing the Orange County IImMng Authority.She
in south county.He is involved with the represents the third supervisorial district on
Ca-holic Church,the Knights of Columbus, the OCCHC board.
ym-.h and adult soccer.Jesus also serves on
OC CHCs Resident Advisory Committee. Father Ed Poettgen
Father Poettgen is a Catholic priest at FOFt%lER BOARD MEMBERS
' Jack Green,past chairman St.Btmiface Church in Anaheim.Minisicring
Jack Green has been mayor of Huntington to Hispanic families and neighborhoxxis,he Gary Adams,Episcopal priest
Be:azh and is past president of the Sdwthem works daily to solve the problems of poverty, Rick Aston,developer
Cal forma Association of Governments education and housing in Change County. Steve Bass,neighhorhmxJ organizer
(SC'AG).He also is past president of the Father Poettgen has served as a commissioner Charlie&utomtey
Orange County division of the League of on the Orange County Haman Relations savings and Dian execu6ty
Cali kviiia Cities.Jack is a retired real estate Commission. Daniel Cabrera,union leader
bro',er and Ical government consultant.
Crystal Sims Laura Duarte,Coffw1d Apartmenr resial"mt
Robert A.Johnson,founder and secretary Crystal Sites is an attorney and director of John Erskine,attorney
&I Johnson is a toted elecinmics engineer litigation for the Legal Aid Society of Orange Karl Fernandez,planning conssuhant
for Rockwell International and has been County.She has been involved with housing Ted Foley,developer
actively involved with housing discrimination issues for more than 17 year&and has exten- Beatrice Foster,educator
and affordable housing issues for more than 25 sive experience in landlord-tenant litigation. Mary Ann Gaido,St.Joseph's Hospital
year;.Bob has served on the Orange County Crystal represents the Westminster Arms Elsie Kroesche,League of Women Voters
Fair Housing Council since 1966. apartment complex on the OWFIC board. Lila Lieberthal,CEO Jamboree Housing
Ralph Kennedy,emeritus Salvador Urbina Corp.
Ralt h Kennedy is an emcritts member of the Salvador Urbina is a resident of OCCI ICs Gloria Lopez,community organizer
OC IC board*(directors.Ralph was a La Esperanza apartments in Garden Grove. Larry Lynch,detw6per
founder of the Housing Coalition of Orange A community leader.Salvador 6 active in Bay Pete Major,Venice Community Housing
Cox.my and also worked as a low-income Scouts and local youth soccer programs.I de also Vicente Mas,urban planner
housing specialist for the Fair Housing wives on OCCIICs Resident Advisory Edison Miller,attorney
Cu.:tcil of Orange County for several years. Committee. Mar),Miller,League of Women Votm
He has a master's degree in planning and a Richard Miller,savings and loan chairman
Ph.D.in urban studies from USC. Josd Vargas is a police officer and head of Ed McClean,Tarbell Realty rice presk"t
Hispanic Affairs for the Sans Ana police Manuel Mendez,architect
Michael Le Blanc,Past chairman department.During his 12-year career,JosE Blanca Peterson
Mike Le Blanc is vice president of entitlement has received the professions highest honors Gar iron Grave Hoes' Authority
for the Irvine Company,responsible for including recognition as one of the top 10
secl i ivemment approval for thecers tick Pctheibtidgc,retired attorney
ng y' iK` police Association
o by the International Annie Quintana,neighborhood organizer
company's tnasterplanned communities.Prior Assoxiation of Chien of Police.In 1935,the
to joining O CCHC,he was community Orange County Supervisors also recognized Bill Ranney,Great Western Bank
development director fox the City of Garden him as the most commended I lispanic officer Larry Rouillard,Episcopal minister
Grove,managing the city's housing authority in California.Jost represents the fourth Greg Sanders,consultant
1 and Community Development Block Grant supervisorial district on the OOC HC board. Leonard Shane,retired swings and lam CEO
program.Mike represents the first Al Sloan,president,Tarbell Realty
supervisorial district out the OCCI IC board.
� Stan Smotin,atrorr►ey-dciYlnper
Jim Yacenda
Federal Hume Loan Bank&,anti
7
RESIDENT ADVISORY COMMITTEE
�wa� F
C
No
t
V�k N qi
� a
1
Left to right Standing Delia Varela, Chair Padres Umdos Anaheim/RAC Mayor Tom Daly of Anaheim visits the Citron Neighborhood with Padres
Member Carlos Villalobos Vice Chair Placentia seated Hal Gaubatz Chair Umdos Chair Delia Varela(right)and resident Luz Romero(left)
RAC Irvine, Auroro Coronado Secretary RAC Capistrano Beach Chepa
Andrade, Chair Logan Neighborhood Santa Ana/RAC Member
THOSE WHO PROVIDE A GREAT
OCCHC sponsors the Orange County Housing Corporation as these are the folks
SERVICE TO OCCHC
Resident Advisory Committee(RAC)with who pay more than 50%of their income for
both funds and staff in order to assure that rent and/or live in unsanitary and unsafe Accountant
very low income renters have a voice in how housing and/or overcrowded housing Robert Lopez Accountancy
Auditor
federal state and local housing dollars are Diehl Evans&Co
If OCCHC doesn t do its job of creating Architect
spent
housing for very low income large families William Morgan
Engineer
The RAC has representatives from their health safety and future is in danger K W C Engmeenng
Anaheim Garden Grove Cypress Placentia We must do our job and the RAC is there to Contractor
Country Road Contractors Inc
Costa Mesa Santa Ana Fullerton keep us focussed on our objective Maintenance
Huntington Beach Dana Point etc
Ferdinand Construction Inc
Landscape
Morales Landscaping
The RAC truly represents the Bank
OWNERSHIP of Orange County Community Bank of Amenca
Special Counsel
Roger Clay Goldfarb&Lipman
Underwriter
James Davis Exec Vice President
Plaza Savings
AHP Consultant
Melody Winter Vice President
Long Beach Bank
8
THE STAFF
,1 1
4�
Allen Baldwin(center)presents 1991
Affordable Housing Award to
BIA HomeAid leaders Bart Hansen
Sam Romero(left)and board member Shawntana Development(left)and Joe Singh(left)and Sam Romero
Jose Vargas(right)meet with L C Bob Albertson Jr Presley of (right)discuss the plight of residents in a
Assemblymember Tom Umberg to tour Southern California(right) run down Santa Ana complex with
OCCHC s La Esperanza apartments Monsignor Jaime Soto Hispanic vicar
in Garden Grove Diocese of Orange
SAM ROMERO ALLEN P BALDWIN JOSEPH SINGH
Resident Services Director Executive Director Program Director
Resident Services Director Sam Allen Baldwin has served as As program director Joseph Singh
Romero manages the daily executive director of OCCHC since manages OCCHC s day to day
operations of all OCCHC properties 1978 He is responsible for the operations He also coordinates the
He is responsible for the physical planning and operation of OCCHC s organizations proposed housing
well being of our apartments as well housing development and property projects Resident Information
as the emotional well being of our management activities Services fundraising and
residents Allen has more than 23 years government relations activities In
Among other responsibilities Sam experience in residential real estate addition Joseph produces OCCHC s
keeps residents informed of health development having served in recognized annual Affordable
and educational opportunities senior management positions with Housing Awards breakfast
including scholarships Little League companies including Watt Industries Before joining OCCHC in 1987
and soccer sign ups family health and USLife Savings prior to joining Joseph worked with the City of
clinics and other community OCCHC Anaheim Housing Authority and
programs and services He also Allen served as a gubernatorial the Orange County Fair Housing
educates tenants regarding their appointee on the California Housing Council He is a current board
local housing authority and tenant Finance Agency from 1982 to 1991 member and treasurer for the Fair
rights and currently sits on the board of Housing Council
Sam is past president of the Santa directors of the Orange County
Ana Neighborhood Organization Homeless Issues Task Force r
(SANG)and a former United $a J a ��
6 � #i )
States Marcie He joined OCCHC
in 1985
it
k
l
8
t" $
Bob Johnson(center) explaining
finance reports to Leticia Ross
(Volunteer)and Director Jesus Garcia
9
SPECIAL FUNDS
SPECIAL FUNDS GUARANTEE AFFORDABLE HOUSING FOR FUTURE GENERATIONS
N�tl�ll Jill ui,i n i 468®e`�llt5db "
t V ou
pl,,, , Play A had-a,cc4 MiL m
Zkaoi oak- new our ugh/n -trP i
OCCHC has established Special funds to THE FILANTF FUND 'I HE SEQUOIA FUND
support our residents ind ensure the future of The Fillnte Fund provides rental isstst mcc The Sequot i Fund w is established in 1991
permanently zffordable housml in Orange to very low income fimilies who are homeless is a$1 000 000 camp-sign to recipitilize Our
County or in immedilte thre it of becoming homeless site icquisition fund The fund will be used
Bec-iuse many of OCCHC s properties-ire only for the-icquisition of I ind which will be
THE COMPADRE FUND
exempt from property tax we place in deed restricted for permanent affordability to
The Comp idre Fund provides no interest
amount equnalent to the tax in the Fd-inte very low income large families in Orange
loans to new residents who frequently l ick
Fund None of these monies are expended for County The Sequoia Fund—n imed after
necess-iry furniture and appliances The fund
idministration the strong permanent nature of the Sequoia
also mikes no interest loans for rent deposits
tree—ensures th it affordable housing is
mostly for Our residents and on special SUMMER CAMP/SCHOLARSHIP FUND
maintained for future genet uions
occ isions for other needy fimihes The summer Gimp fund was established to
Since 1981 OCCHC has min-iged in
Contributions of less than$1 000 are pl iced give resident young people the rich rewirds of
ininal fund of$D00 000 provided by the Dion
in this fund None of these funds In a summer camping experience Each ye it
Corporation From this funding we hive
expended for idnimistrition youngsters who otherwise could not ifford it
created 125 units that house 388 people 230
-ire able to attend a five d iy YMCA summer of whom-ire childn n
camp session in the local Sin Bernardino
Mountains—free of char&e
e
The college scholarship fund was created to
_ support young adults seeking a college
education and advanced ac-idemic degrees Photography Marcos Gonzales
'k� i1 iiv
OCCHC s Affordable Housing Award Winners
(left to right)Lee Podolak,Chair OC Homeless
Issues Task Force Fred Foster President
Home Savings and Toni Dywer Chair OC
Affordable Housing Clearing House
10
THE FINANCIALS
BALANCE SHEETS
INDEPENDENT AUDITORS REPORT ORANGE COUNTY COMMUNITY HOUSING CORPORATION
BALANCE SHEET — ALL FUNDS
December 31 1992
Board of Directors
Orange County Community General Special Total
Housing Corporation ASSETS Fund Funds All Funds
Santa Ana California CURRENT ASSETS
Cash and Investments(Note 4) $ 600 348 $ 34 076 $ 634 424
We have audited the accompanying balance Grants ece vable 14 000 — 14 000
Other rece vables
sheet of the Orange County Community 3 046 — 3 04
Compad e loannss rece vable(Note la) 6 047 6 047
Housing Corporation(a nonprofit corporation) Due from general fund — 63 617 63 617
as of December 31 1992 and the related Prepaid expenses(Note 7) 3 500 — 3 500
statements of revenue and expenses and TOTAL CURRENT ASSETS 620 894 103 740 724 634
changes in fund balances and cash flows for the
year then ended These financial statements are PROPERTY AND EQUIPMENT AT COST
the responsibility of the Corporations LESS ACCUMULATED DEPRECIATION
management Our responsibility is to express an OF$931 074(Note lb 3 and 5) 5 911 329 — 5 911 329
opinion on these financial statements based on
our audit OTHER ASSETS
Depos is 2 169 — 2 169
We conducted our audit in accordance with Prepaid expenses less current portion(Note 7) 162 752 — 162 752
generally accepted auditing standards Those TOTAL ASSETS $6 697 144 $ 103 740 $6 800 884
standards require that we plan and perform the
audit to obtain reasonable assurance about LIABILITIES AND FUND BALANCES
whether the financial statements are free of CURRENT LIABILITIES
material misstatement An audit includes Accounts payable $ 455 — $ 455
690
examining on a test basis evidence supporting SecAccrued liabilities 2 444 = 2 444
the amounts and disclosures in the financial Due ry de special
is 30 444 30 444
Due to speaal funds 63 617 — 63 617
statements An audit also includes assessing the Advanced rents current portion 7 833 — 7 833
accounting principles used and significant Notes payable current portion 47 445 — 47 44)
estimates made by management as well as TOTAL CURRENT LIABILITIES 152 484 — 152 484
evaluating the overall financial statement
presentation We believe that our audit LONG TERM LIABILITIES
provides a reasonable basis for our opinion Advanced rents less current
portion(Note 7) 160 586 — 160 586
In our opinion the financial statements Notes payable less current
referred to above present fairly in all material port on(Note 5) 5 503 929 — 5 503 929
respects the financial position of the Orange TOTAL LONG TERM LIABILITIES 5 664 515 — 5 664 515
County Community Housing Corporation as of TOTAL LIABILITIES 5 816 999 — 5 816 999
December 31 1992 and the results of its COMMITMENTS(NOTE 7)
operations and its cash flows for the year then
ended in conformity with generally accepted FUND BALANCES
accounting principles Un estr cted 880 145 — 880 145
Restr cted — 103 740 103 740
The supplementary information as listed in the TOTAL FUND BALANCES 880 145 103 740 983 885
table of contents is presented for purposes of
additional analysis and is not a required part of TOTAL LIABILITIES AND
FUND BALANCES $6 697 144 $ 103 740 $6 800 884
the basic financial statements The information
has been subjected to the auditing procedures See independent auditors'report and notes to financial statements
applied in the audit of the basic financial
statements and in our opinion is fairly stated
in all material respects in relation to the basic
financial statements taken as a whole
JANUARY 22 1993
I1
THE FINANCIALS
ORANGE COUNTY COMMUNITY HOUSING CORPORATION ORANGE COUNTY COMMUNITY HOUSING CORPORATION
STATEMENT OF REVENUE AND EXPENSES AND STATEMENT OF CASH FLOWS — ALL FUNDS
CHANGES IN FUND BALANCES — ALL FUNDS For the year ended December 31 1992
For the year ended December 31 1992
CASH FLOWS FROM OPERATING ACTIVITIES
General Special Total Excess of revenue over(under)expenses $ (57 682)
Fund Funds All Funds Adjustments to reconcile excess of revenue
REVENUE over(under)expenses to net cash prov ded
Rents received $1 006 859 — $1 006 859 by operat ng activities
Go emment grants 14 000 — 14 000 Depreciation $ 156 307
Interest income 27 240 864 28 104 Inc ease n othe eceivables (3 046)
Mortgage relief(Note 5) 10 118 — 10 118 Increase in Compadre loans receivable (739)
Donations — 3 835 3 835 Decrease in prepaid expenses 6 121
Other 6 905 — 6 905 Decrease in accounts payable and accrued liabilities (5 050)
TOTAL REVENUES 1 065 122 4 699 1 069 821 Increase insecurity deposits 2 Decrease in advance rents (7 833 833)
EXPENSES Total adjustments 148 088
Housing costs Interest 406 965 — 406 965 NET CASH PROVIDED BY OPERATIONS 90 406
Depreciat on 152 672 — 152 672
Maintenance 101 790 — 101 790 CASH FLOWS FROM INVESTING ACTIVITIES
Repa s 50 697 13 627 64 324 Purchase of property and equipment (196 074)
Othe 100 214 — 100 214
Total housing costs 812 338 13 627 825 965 CASH FLOWS FROM FINANCING ACTIVITIES
New long term debt obtained 270 000
Salar es and employee benefits 166 524 — 166 524 Payments of long term debt (162 076)
Inte est e pence added to p mcipal 24 363
General and administrative including
dep eciation expense of$3 635 86 946 — 86 946 Net increase in long term debt 132 287
Rent subs d es prov des — 46 645 46 645
Camp and scholarships — 1 423 1 423 NET INCREASE IN CASH AND INVESTMENTS 26 619
TOTAL EXPENSES 1 065 808 61 695 1 127 503
EXCESS OF REVENUE OVER CASH AND INVESTMENTS JANUARY 1 1992 607 805
(UNDER)EXPENSES (686) (56 996) (57 682) CASH AND INVESTMENTS DECEMBER 31 1992 $ 634 424
FUND BALANCE JANUARY 1 1992 941 371 81 642 1 023 013 See independent auditors'report and notes to financial statements
Prior period adj stment(Note 6) — 18 554 18 554
Transfers (60 540) 60 540 —
FUND BALANCE DECEMBER 31 1992 $ 880 145 $ 103 740 $ 983 885
See ndependent a d tors eport and notes to financial statements
NOTES TO FINANCIAL STATEMENTS The Spec al Funds have been established to lack necessary fumitu e and appliances The fund
December 31 1992 account for resources available for use but expend also makes no me est loans for rent deposits
1 SIGNIFICANT ACCOUNTING POLICIES able only for purposes specified by the Board of Summer Camp/Scholarship Fund—This fund was
a The financial statements of Orange County Corn Directors or donors The special funds consist of established to set aside funds to enable yo ng es
the following funds dents to attend summer cam d provide edu
mun¢y Hous rig Corporal on(the Corpo at on) P an to
have been prepared on the accrual has s of Filante Fund—In 1989 the State Boa d of cational assistance(tuition books)for residents
acco nt ng Re enues earned but not ece ed a e Eq ah ation granted the Corpo at on s apartments Reserve Fund—Th s fund was established in 1991
recorded as a recei able and f nds ece ved before an exempt on from property taxes through the and rest icted for future repairs and replacements
the re en e recogn t on c ite is have been met are implementation of the Fdante Bill Legislation for certain p open es in accordance with to ms of
reported as deferred evenue E pend to es a e which res Ited in a property tax rebate part of the controll ng documents on these properties
recorded when the l ab I ty s ncurred which was used to subs d e low ncome rents In These reserves are paid for by transfers from the
Fund Accounting keep ng w th the ntent of the legislation the gene al fund
Board of Directors of the Corpo at on app oved
The acco nts of the Corpo at on a e maintained the anti al pp op t on of funds to s bsidi e b P operty,and equipment are carried at cost or if
in accordance with the p me ples of fund account non Section 8 very low income famd es donated at fair market value at date of don t on
ng Th s s the p ocedure by which resources for Deprec anon s provided on the st aight I ne
Sequoia Fund—This fund was established in1991 method over est mated useful lives of f ve to
ano s purposes a e lass f ed fo account rig and in order to set aside cons ib t ons fo the purchase
epo t ng purposes into fund established actor of land to eventually house large familie w th very twelve years for fum cure and f xtures and twenty
ding to their nat re and purposes Sepa ate low income and also to allow dono s contributions fi e to forty yea s fo bu Idings
accounts are maintained for e ch fund however to atta n the most charitable value for the longest 2 ORGANIZATION
n the accompany ng f nanc al statements funds term poss ble The fund was ninally established
that have similar cha acter st cs have been com with monies received from the 1983 Se ies A Reve The Orange County Community Housing Corpo a
bined into fund g o p n e Bond R du I F nd fo the Coffield Apart non was ncorporated on Decembe 5 1977 under
The General Fund represents re enue and expen ment Development in Dana Point the non profit laws of the State of Califom a The
ditures related to the operation and management Compadre Fund—This fund was established to Corpo at on has qualified for tax exempt status under
of the Corporations primary programs and provide no interest loans to new residents who Section 501(c)(3)of the Internal Revenue code
support services
12
THE FINANCIALS
NOTES TO THE FINANCIAL STATEMENTS
accordingly no prov sion for income taxes has been this note or in breach of the regulatory Non interest bearing note payabl to the
made n the accompanying financial statements agreement In the event the Corporation City of Santa Ana which requi e no pay
The p mary purpose of the Corporation is to provide sells or t ansfers the res dence(s) except ments o interest for the first fi e years
housing and the related services to low and very low as pe mitted n the regulatory ag eement Beg no ng Apr 1 1994 nterest shall
income pe sons on a non profit basis The Corpora du ing the to in or otherwise breaches the acc ue at 6/ with monthly payments of
non currently owns and ope aces e ght apartment egulatory,agreement d ng the term $145 including p ncipal and me est 7 500
buildings which agg egate e ghty units six con after being given an opportunity to cu e 7/ trust deed payable to Weste n F nan
dominium units and two single family esidences as prov ded f any the Corporation shall cial secured by land and building having
These units are ented to qual fled low ncome famd es mmed ately pay to the C ty of Iry ne the a book alue of$121 974 Payable in
at partially subside ed rents app owed by the Orange p me pal togethe with accrued interest monthly installments of$732 ncluding
County Housing A tho ty The Corporation also at the rate of 10/ percent compounded p nc pal and me est 109 571
manages eight units for the City of Garden G ove and annually on the pr ncipal 634 500
leases(with opt on to purchase)four condominium 7/ 30 year note payable to the City of 7/ trust deed payable Western n
teal secured by land and bud having
ding having
units from the Depa tment of Housing and Urban Garden Grove This note shall be repaid a book value of$162 155 Payable n
Development from all surplus funds available after cal monthly installments of$931 ncludmg
culating the Net Operating Income for pr nc pal and me est 139 454
3 PROPERTY AND EQUIPMENT the related property each year After the
374
Property and equipment consisted of the following at annual calculation of the Net Operating Less current portion 5(471445)
Decembe 31 1992 Income the total amount of surpl s
Land $1 697 452 funds if any remaining shall be sed to Total long to in portion of notes and
Budd ng and improvements 5 098 749 make the annual installment payments on mortgages payable $5 503 929
Furniture and f xtures 46 202 th s note until fully repaid Payments
6 842 403 hereunder shall be credited first to 6 RECLASSIFICATION AND PRIOR PERIOD
Less accumulated dep ec ation (931 074) acc ued and unpaid interest and then to ADJUSTMENT
eduction of principal until principal and
$5 911 329 nterest a e pa d n full In the e ent the The financial statements a e be ng presented dif
full amo nt of principal and inte est due fe ently from prior years Acti ty of the a ous spe
4 CASH AND INVESTMENTS hereunde have not been fully epa d by c al funds is being reported separately from the general
the end of the thirty yea to in(Decembe fund In the prior year the available balances n the
Cash and nvestments consisted of the following at 2020) the entire balance is then due and Compadre and Camp/Schola ship special funds were
Decembe 31 1992 payable 291 934 presented as gene al fund liabilities The available
Demand deposits $ 134 429 fund balances fo these funds as of December 31 1991
Ce t f cates of deposit 499 995 7/ note payable to O ange Co my Hous have been eported as a prior period adz stment n
mg Authority secured by second trust orde to eclassify them from habdit es to fund
Total cash and in estments $ 634 424 deed on land and bu Id ng having a book
value of$443 679 Pr ncipal and me est balances
5 MORTGAGES AND NOTES PAYABLE payments commence n 1996 and con
7 COMMITMENTS
Mortgages and notes payable consisted of tinue until the year 2000 with any
the following at Decembe 31 1992 unpaid principal and me est due at that The Corporation s leas ng office space comprising
9/trust deed payable to California Hous time Until payments are equired inter 1344 square feet n a commercial office build ng in the
ing Finance Agency secured by land and est is being added to the p nc pal balance City of Santa Ana The lease term is for f ve years
build ng having a book value of$154 817 of the note 112 188 expiring May 31 1994 future minimum lease pay
ments total$17 640 and$7 350 fo the years ending
Payable in monthly installments of Non interest bearing note payable to the Decembe 31 1993 and 1994 espectively
$1 006 including interest $ 104 255 C ty of Garden Grove secured by land
10 15/ trust deed payable to American and budding having a book value of The Corporation s leasing four single family homes
Residential Mortgage Corp secured by $275 692 The City of Garden G ove has from the Department of Housing and Urban Develop
land and b ddmg having a book value of
extended the loan to April 2021 in ment These leases call for annual ent payments of$1
$1 171 076 Payable n monthly nstall exchange for making eight apartments each as long as the property s used only for the put
ments of$8 887 includ ng me est 930 047 un is on Buena Street a ailable at fa poses deta led in the lease ag eements The leases have
ma ket rents to low income ho seholds 30 000 a purchase opt on p ovision The leases are for a
Six 8 91/o to 9 647/ t ust deeds payable period of one year expiring on dates anging from
to Savings Associat ons Mo tgage Com Non interest bearing note payable to the December 9 1993 th ough May 31 1993
pany Inc secured by land and buildings County of Orange The principal balance
having a book val e of$3 436 003 Pay s educed by$1 933 each year that hous The Corporation is leasing an 8 un t apartment build
able n monthly installments rang ng ing for moderate and low income families ing from the Garden Grove Agency for Commun ty
from$1 545 to$10 305 including s p ov ded The entire balance will have Development Upon commencement of the lease on
me est 2 759 241 been fo given in the year 2011 36 734 June 25 1990 the Corpo at on pa d the Agency
Non interest bearing note payable to the $175 000 as rent for the f fty year term of the lease
Six 7°/ trust deeds payable to ITT Federal The Corpo ation is sub leasing five of the eight units
Bank secured by land and buildings hav County of Orange The principal balance to the Shelter for the Homeless a p bl c benefit non
in a book val e of$809 208 Payable in is reduced by$2 352 each year that the rp ty years with
g corporation continues to p ovide housing profit corporation The sub lease is for e
monthly installments ang rig from$222 an opt on for the sub lessee to term Hate the lease at
to$223 ncluaing trite est 194 576 for low income families The ent e bal the e p at on of five yea s The Shelter fo the Home
ante will ha e b n to g en in the less d the Co oral on$175 000 a ent for the fifty
3/ note payable secu ed by a deed of yea 2015 54 096 year term of the lease In addit on the agreement calls
accrues annually and the enure amount
t to the City of Anaheim Interest Non rote est bear ng note payable to the for the Shelter to pay the Corporation ope at on and
of the note plus acc ued rote est s due County of Orange The p nc pal balance management fees
May 1997 At this time the note can be s educed by$5 833 each year that the
renewed fo f ve years provided the Cor corporation cons nues to p ov de housing 8 DEFERRED COMPENSATION PLAN
potation is still the owne of the eal fo low income families The ent e bal In 1985 the Corpo ation establ shed a salary educ
p operty secured by the deed of trust and ante will have been fo given in the2012 116 667 non plan through a tax sheltered annu ty(TSA)
year
is un ble fo ed t easons to arrange for Under the p o sions of the plan employees can elect
refinancing of the loan 20 000 6/ note payable to the City of Santa to have a port on of their salar w thheld and con
Six 10/ second trust deeds payable to the Ana secured by land and building having tribuced to the plan
City of Irvine secured by land and build a book value of$121 974 Payable in
ings having a book value of$809 208 No monthly installments of$135 beginning See independent a d to s report
payments due on this note for the term of in April 1991 The first yea s payments
th ty years comment ng on May 1990 are deferred until April 2000 10 611
providing The Corporation cent nues to
own the residence(s)and the Corporation
is not in iolat on of any p ov sions of
r_ t
-
. ti
01
PINE CONE/SEQUOIA THEE
The pine cone symbolizes the seedling nature of each of us who
contributes to making of fordable housing possible for low-income families in
Orange County.The Sequoia tree represents the goal of permanently
affordable housing developed by organizations such as OCCHC.
ORANGE CoLYNTY CoumumTY Housttic CORPORATION
I833 EAST 17TH STRE r.Sur E 207
SAm A A.CAI.mm%iA 92701
714-558.8I61
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FirstAmerkan Title Insurance Company
r+A7111KAL HFAn(plM77.K%;114 E.11rM Sr.M"ITA AKA.G 9z91 ('Ili)SSIy211
NOV-12-93 FRI 17:11 HB/F A Sid OF RRLTORS +
s
i ASSOCIATION of REALTORS40 �} ?
8101St.iter/Iticnuc-lluutin�-tarr Brach,CA92(47.D9a4-(7I4)$17--6093-)M(714)8413 pp375 1� ft. A"-.
November 12, 1993
Mayor Grace Winchell
Memlh;rs of the City Council
City of Huntington Beach
2000 Main Street
Huntington Beach,CA 92648 '
RE: Agenda Items E-I l and B-3
Honorable Mayor and CounciImembers:
Opt behalf of the Iuntington Beach/Fountain Valley Association of REALTORS, I would
like to express our strong support for the affordable housing projects being considered for
acquisition and operation by the Orange County Community Housing Corporation.
Members of our Association have had an ongoing relationship with OCCHC for the past
several years and can attest to this a;eney's credibility. and the caring but effective
management practices employed within the affordable rental housing projects that they
operate throughout Orange County. We met with their executive director, Allen Baldwin,
this past Monday to discuss the specifics of these two proposals and offer our
unconditional endorsement.
Shirley Commons Long, a past president of our Association, who has been on OCCHC's
Board of Directors since 1985 and who has twice served as chairman of their board.
Arranged for a number of us to have the opportunity to visit firsthand several of
OCCHC's housing sites a couple of years ago. To say we were impressed is an
understatemet:t--in fact, we were literally amazed by the quality of the housing, the
maintenance, and the obvious pride that the residents had in theta-homes.OCCHC has an
excellent track record in this regard, and not only assists their residents with their housing
needs, but organizes family-oriented events to help develop their "sense of community"
and has even established a scholarship program to assist residents'children: with college
expenscs.
We were also pleased to see the potential partnership between OCCHC and Project Self
Sufficiency--another excellent program. We urge you to move forward with both OCCHC
affordable housing projects under consideration this evening. You will be proud of the
results!
Sincerely,1: i
100
l
Pat Paulk 400
Association President
93HOM,Et 1112hbcc0CCHC&fflL%g-
PATPAULK Presiclod-LUCILI.1:HARMON,rim Vice Presuettl
ANIVEPUCH Srcan4treerrrsident-JOHNCLOUCf1Ey Secrelary/1'resifurcr C
. .. -N Directors:FLORF,NCL BELL-JOIINrI ZRATRICK-JOELIGHTMAN-1161,tic'LAUGHLIN-ANTHUNYCCHRISIENSEIV
W11.1,L.WOODS,Exrrulitm Tice President-JUVIT11A.LFGAN, Vir Prrsietcnr/IttblirA,`1-dPf
• 1vJX 'NTOWN
Avk HESIDENTS' G°
'a
ff ASSOCIATION' � F �� ', o �
rr _ _ .
6
14 November 1993 cn
C-0
4A
Mayor Winchell and City Council Members �
City of Huntington Beach
2000 Main Street w
Huntington Beach, CA 92648
SUBJECT: CITY COUNCIL AGENDA ITEM E-11: AUTHORIZATION TO
NEGOTIATE ACQUISITION OF 313-11TH STREET IN THE
DOWNTOWN FOR AFFORDABLE HOUSING.
Dear Mayor Winchell and Council Members:
The Downtown Resident's Association wishes to go on record in opposition to the
City Redevelopment Agency pourchasing the 9-unit apartment building at 313 -
11 th Street for affordable housing.
In particular we oppose the acquisition of this property to provide 9 very low
income units geared toward meeting the affordable housing requirements of the
Coultrup project at 5th and Pacific Coast Highway.
The Coultrup project is not a done deal, and far from even being started, and yet
we must accomplish their affordable housing first. Another example of the cart
before the horse.
Our recommendation, therefore, would be to take Alternative action, directing Staff
to discontinue negotiations for acquisition of this property at this time.
Thank you.
From the Steering Committee and
members of the Downtown Resident's Association.
7 tj
6RANGE COUNT-'
r �
COMMUNITY HOUSING CORPORATION(f
November 8, 1993
Honorable Mayor and Councilmembers c�
_City of Huntington Beach X "ell
C=D ,..r cs
20M Main Street '
Huntington Beach, CA 92648
RE: 17372 Keelson Acquisition and Rehab w
Mayor and Councilmembers:
It is my pleasure to have been -associated with Orange County Community Housing
Corporation for the past twelve.(12) years:.' In that time -I .have been proud with its
commitment to very low.income large families and in its business-like approach%nonprofit
housing.
QCCHC's apartments are easily recognizable as the best maintained properties on the block.
I really encourage you to visit their first fourplex,`which is twelve years old, at 10951 Berry,
Anaheim. Do this if you have any'con cerns about OCCHC's ability-to manage property -
I don't. 1
Staff has been asked to get its 1992 Annual Report in the mail to you prior to the Monday,
November 15, 1993, meeting so that you can review their progress and their financial
statement. There are few for profits whicli can boast of such of fine financial statement.
We have been able to get this 4/5plex'into'escro'w at a great price of$280,000. The reason
we say 4/5plex is that there is a "bootleg" 1br unit. We are discussing the potential for this
unit to be used by Project Self Sufficiency on a conditional use permit basis.
OCCHC's enhanced Ievel of service for their 'residents is such that both parents and children
are better able to avoid generational welfare dependence.
You have my personal commitment as a former Huntington Beach elected official and long
time resident that this project will be a permanent source of community pride.
Health keeps me away from the 15th meeting, but be assured That I'll be serving lunch at
the ribbon cutting.
Yours truly,
E-
Jack Green
Director and Past Chair
1833 East 17th Street, Suite 207. Santa Ana, California 92701 (714) 558-8161
CITY OF HUNTINGTON BEACH
S
Ito INTER-DEPARTMENT COMMUNICATION
r+u� Tom•tea+ I I
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0 NADI K • •- k
J$aftr Of HE U ORD AT
TO: Mayor and Members of the City Council lye-a
FROM: Gail Hutton, City Attomey 0"RO
DATE: December 20, 1993 CE OF THE CITY CLERK
�._..._ . MRIE POW AY
SUBJECT: Agenda Item F-8
December 20, 1993 City Council Meeting
This morning my office received a telephone call from Attorney Roger Clay,representing
participant(the Orange County Community Housing Corporation(OCCHC). For the first time
he informed my deputy that contrary to the staff report and proposed loan agreement,the desire
of the OCCHC is that the loan be foigiven after the thirty-year period has run. Currently,as you
can see from the staff report and loan agreement,the proposal is that the loan become due after
thirty years.
I informed Barbara Kaiser of this proposed change and she has stated that she is not opposed to
it.
For these reasons,I have directed my staff to revise the loan agreement to reflect the proposed
new term of the loan,that it be forgiven after thirty years. The changes are to pages 2,3 and 8 of .
the agreement which is in your packet and the affected pages as revised are attached in Iegislative
draft form for your convenience.
7dtlL.Ci C'7�-.
Gail Hutton
City Attorney
Attachments: Pages 2,3 and 8 of Agreement
cc: Michael T.Uberuaga,City Administrator
Ray Silver,Assistant City Administrator
Barbara Kaiser,Director of Economic Development
Connie Brockway,City Clerk
G o o
CZ�A
i
Huntington Beach, all of which Is consistent with the goals of the Affordable
Housing Program and the Huntington Beach Redevelopment Plan.
E. The Agency wishes to lend, and Participant wishes to borrow,
Program funds to assist Participant to purchase the Property upon the terms and
conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration the parties agree
as follows:
1. Agencdoan.Agency shall loan to Participant##moan} the amount
of Six Hundred and Thirty-Five Thousand Dollars ($635,000) (the "LoanTl
subject to the conditions and restrictions set forth herein, the Promissory Note, the
Disclosure Statement, the Deed of Trust and all applicable state, local and federal
law. The Loan shall be paid to the seller of the Property (the "Seller") by the
Agency through deposit of the Loan proceeds Into escrow with
(the "Escrow Agent") (Escrow No. ).
The Agency shall direct the Escrow Agent to apply the proceeds of the Loan on
behalf of Participant to the purchase price of the Property, and, at Participant's
election, to the costs of closing, escrow fees, recording fees, loan points and fees,
and/or document fees. The Escrow Agent will be required to hold In escrow funds
sufficient to cover the costs of rehabilitation of the building to bring the building
Into conformity with building and safety codes as determined by the City of
Huntington Beach building Inspector. The amount will be mutually agreed to by
both parties with further direction to be provided to the Escrow Agent. At such
time, Participant shall execute and deliver to the Agency a promissory note In favor
of the Agency as holder, in the amount of the Loan. The Loan shall be due and
payable in thiny yeafs. OF the event that Participant falls to comply with the terms
of this Agreement. The loan shall be fbrgL1Ceri-ort-the.thi[t
of the date of execution QLthis,aere_ ement. Participant shall execute and
deliver a Promissory Note substantially In the form of the Promissory Note attached
hereto as Exhibit "B" and Incorporated herein by this reference. Participant shall
also execute and deliver to the Agency a deed of trust encumbering the Property
which shall secure the Promissory Note (the "Deed of Trust"), In the form of
Exhibit "C" attached hereto and incorporated herein.
F �
2. Maintenance of Proprty. Participant shall maintain the
Improvements on the Property In a manner consistent with community standards
and In a manner which will uphold the value of the Property, and shall keep the
Property free from any accumulation of debris and waste materials. Failure to do so
will be considered breach of this loan agreement; the Note will be due Immediately.
3. . The Loan shall be due and payable upon:
(I) such sale, transfer, or other disposition of the Property, except sale to a
purchaser approved by Agency, (11) Participant being In material default of any
other obligation contained In this Agreement, (111) Participant violating any condition
of the deed of trust or promissory note, (iv) Participant ceasing to exist as a
nonprofit organization., OF (v) on the Wndedh annual date of the date-of
execuden of Ws nement
RTTiC77TiT
4. Notice tQ Agency. Participant agrees to notify the Agency not less
than thirty (30) days prior to the sale or transfer of the Property.
5. Occupancy Standards. The Property shall be used as a rental
property. First priority of units shall be for participants In the Project Self-
Sufficiency program. Second priority In renting shall be for tenants referred by the
City of Huntington Beach. Third priority will be for any very low-income household
applying for occupancy of a unit. "Very low Income" shall have the same meaning
as used in the standards and regulations promulgated by the United States
Department of Housing and Urban Development (H.U.D.).
6. Incomes Information.Particlant agrees to rent all nine (9) units to very
low-income households. Households which qualify at time of rental as "very low
Income" but later reach an Income In excess of One Hundred Percent (100%) of
median Income as defined by HUD will be required to vacate the units.
7. Parking. Participant shall not rent any unit to a household owning
more than one automobile.
8. Relaul n. The Participant agrees to hold harmless the Agency
from any claims for relocation benefits made by previous residents of the property.
Any award or judgment arising out of any claim for relocation benefits,
T
f
To participant: Orange County Community Housing Corp.
Attn: Executive Director
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
To Agency: THE REDEVELOPMENT AGENCY OF
The City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Either party may change its address for notice by giving written notice
thereof to the other party.
25. Jerm of A=emenL Except as may be provided herein, the
term of this Agreement Is thirty (30) years commencing on the date of execution.
Both parties may mutually agree to extend this Loan Agreement and other related
documents. if mthe-30th,anniyeEsary_date the Loan Agreement is not
extended and-Partici an ds not-in default with respect to any orQvision
of this agreu=t, the loan amount and the note will be due and pay"
forgiven.
Recording Requested By
And When Recorded Return To:
The Redevelopment Agency of
The City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: City Clerk
LOAN AGREEMENT
THIS LOAN AGREEMENT (the"Agreement") is made this
day of , 19 by and between Orange County Community
Housing Corp. ("Participant") and THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Agency").
RECITALS
A. Participant has entered into an agreement (the "Purchase
Agreement")to purchase that certain real property commonly known as
313 11th Street, Huntington Beach, California, and more particularly described in
Exhibit"A" attached hereto and incorporated herein (the "Property").
B. Participant requires assistance to purchase the Property and would
not be able to purchase the Property without such assistance. Participant is a
nonprofit corporation organized under the laws of the State of California.
C. Participant intends to own and operate the Property for the benefit
of very low-income families.
D. Agency desires to utilize tax increment money to assist persons of
low income to purchase residential property to increase, improve, and preserve
low-income housing available at an affordable housing cost within the City of
Huntington Beach, all of which is consistent with the goals of the Affordable
Housing Program and the Huntington Beach Redevelopment Plan.
E. The Agency wishes to lend, and Participant wishes to borrow,
Program funds to assist Participant to purchase the Property upon the terms and
conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration the parties
agree as follows:
I. Agenzy_Loan. Agency shall loan to Participant the amount of
Six Hundred and Thirty--Five Thousand Dollars ($635,000) (the "Loan") subject to
the conditions and restrictions set forth herein, the Promissory Note, the
Disclosure Statement, the Deed of Trust and all applicable state, local and
federal law. The Loan shall be paid to the seller of the Property (the "Seller") by
the Agency through deposit of the Loan proceeds into escrow with
(the"Escrow Agent") (Escrow No.
). The Agency shall direct the Escrow Agent to apply the proceeds
of the Loan on behalf of Participant to the purchase price of the Property, and, at
Participant's election, to the costs of closing, escrow fees, recording fees, loan
points and fees, and/or document fees. The Escrow Agent will be required to
hold in escrow funds sufficient to cover the costs of rehabilitation of the building
to bring the building into conformity with building and safety codes as determined
by the City of Huntington Beach building inspector. The amount will be mutually
agreed to by both parties with further direction to be provided to the Escrow
Agent. At such time, Participant shall execute and deliver to the Agency a
promissory note in favor of the Agency as holder, in the amount of the Loan.
The Loan shall be due and payable in the event that Participant fails to comply
with the terms of this Agreement. The loan shall be forgiven on the thirtieth
anniversary of the date of execution of this agreement. Participant shall execute
and deliver a Promissory Note substantially in the form of the Promissory Note
attached hereto as Exhibit"B" and incorporated herein by this reference.
Participant shall also execute and deliver to the Agency a deed of trust
encumbering the Property which shall secure the Promissory Note (the "Deed of
Trust"), in the form of Exhibit"C" attached hereto and incorporated herein.
2
7% gencyk2112120I931805:42 PM
2. Maintenance of Propedy- Participant shall maintain the
improvements on the Property in a manner consistent with community standards
and in a manner which will uphold the value of the Property, and shall keep the
Property free from any accumulation of debris and waste materials. Failure to do
so will be considered breach of this loan agreement; the Note will be due
immediately.
3. Acceleration/Dug on_Sale. The Loan shall be due and payable
upon: (i) such sale, transfer, or other disposition of the Property, except sale to a
purchaser approved by Agency, (ii) Participant being in material default of any
other obligation contained in this Agreement, (iii) Participant violating any
condition of the deed of trust or promissory note, (iv) Participant ceasing to exist
as a nonprofit organization.
4. Notice, Participant agrees to notify the Agency not less
than thirty (30) days prior to the sale or transfer of the Property.
5. Qmpana $tandarda. The Property shall be used as a rental
property. First priority of units shall be for participants in the Project Self-
Sufficiency program. Second priority in renting shall be for tenants referred by
the City of Huntington Beach. Third priority will be for any very low-income
household applying for occupancy of a unit. "Very low income" shall have the
same meaning as used in the standards and regulations promulgated by the
United States Department of Housing and Urban Development(H.U.D.).
6. Income Ins ation.Particiant agrees to rent all nine (9) units to
very low-income households. Households which qualify at time of rental as "very
low income" but later reach an income in excess of One Hundred Percent
(100%) of median income as defined by HUD will be required to vacate the units.
7. Parking. Participant shall not rent any unit to a household owning
more than one automobile.
8 Relocation. The Participant agrees to hold harmless the Agency
from any claims for relocation benefits made by previous residents of the
property. Any award or judgment arising out of any claim for relocation benefits,
along with attorneys fees and costs of defense to the Agency shall be paid by
Participant.
3
7%agencyk2112120WA305:42 PM
9. Qperetion and Maintenance. Participant shall be required to
expend rental income for the operation and maintenance of the building.
Participant is entitled to earn six percent (6%) of fair market rent (as determined
by the Agency) for each unit as a management fee. Any rental income received
and not required for operation, maintenance, taxes, utilities, management fee,
etc., shall be returned to the Agency. Agency retains the right to request an
audit of Participant's records and accounts kept for the property and upon such
request, Participant agrees to supply Agency with all documentation reasonably
necessary for the audit to be accomplished.
10. Non-[ iacrimination. There shall be no discrimination against or
segregation of, any persons, or group of persons on account of race, color, creed,
religion, sex, marital status, ancestry or national origin, in the sale, lease,
sublease, use, occupancy, tenure or enjoyment of the premises, nor shall the
transferee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees or vendees of the premises.
The covenants established in this Agreement and the deeds of
conveyance for the property shall, without regard to technical classification and
designation, be binding upon the Participant, its successors and assigns,
together with any property acquired by the Participant pursuant to this
Agreement, or any part thereof. The covenants against discrimination shall
remain in effect for the life of the project.
11. Unit Bize. The Project currently has four two-bedroom units and
five one-bedroom units. No change may be made to the number of bedrooms in
each unit without prior written consent of the Agency and the City of Huntington
Beach.
12. Nom-_VVaiyer. Failure to exercise any right the Agency may have or
be entitled to, in the event of default hereunder, shall not constitute a waiver of
such right or any other right in the event of a subsequent default.
13. lodemnification. The Participant shall defend, indemnify and
hold harmless the Agency and the City of Huntington Beach and its respective
4
AagenrykVIV20193,1305:42 PAR
officers, agents, employees, representatives and volunteers from and against
any loss, liability, claim or judgment relating in any manner to the Property of this
Agreement. The Participant shall remain fully obligated for the payment of
property taxes and assessments related to the Property. There shall be no
reduction in taxes for Participant, nor any transfer of responsibility to the Agency
to make such payments, by virtue of the Loan.
14. lnsurpnce. Participant shall maintain, during the term of the
Agency Loan, an all-risk property insurance policy insuring the Property in an
amount equal to the full replacement value of the structures on the Property.
The policy shall name the Agency as loss payee and shalt contain a statement of
obligation on behalf of the carrier to notify the Agency of any material change,
cancellation or termination of coverage at least thirty (30) days in advance of the
effective date of such material change, cancellation or termination. Participant
shall transmit a copy of the certificate of insurance and loss payee endorsement
to Agency within thirty (30) days of the effective date of this Agreement, and
Participant shall annually transmit to Agency a copy of the certificate of
insurance and a loss payee endorsement, signed by an authorized agent of the
insurance carrier setting forth the general provisions of coverage. The copy of
the certificate of insurance and loss payee endorsement shall be transmitted to
Agency as follows:
REDEVELOPMENT AGENCY OF THE
City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Any certificate of insurance must be in a form approved by the City
Attorney.
15. Defaults. Failure or delay by either party to perform any term or
provision of this Agreement which is not cured within thirty (30) days after receipt
of notice from the other party constitutes a default under this Agreement;
provided, however, if such default is of the nature requiring more than thirty (30)
days to cure, the defaulting party shall avoid default hereunder by commencing
5
7%agencyk21121201931805:42 PM
to cure within such thirty (30) day period and thereafter diligently pursuing such
cure to completion. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and shall complete
such cure, correction or remedy with diligence.
The injured party shall give written notice of default to the party in
default, specifying the default complained of by the injured party. Except as
required to protect against further damages, the injured party may not institute
proceedings against the party in default until thirty (30) days after giving such
notice. Failure or delay in giving such notice shall not constitute a waiver of any
default, nor shall it change the time of default.
16. Dooments. Participant is aware that the Agency has prepared
certain documents to implement the Program and secure repayment of the Loan.
Participant has reviewed and agrees to execute the following documents prior to
receiving the Loan:
(a) Disclosure Statement
(b) Promissory Note
(c) Deed of Trust
Participant agrees and acknowledges that the Deed of Trust and
Disclosure Statement shall be recorded with the County Recorder of the County
of Orange and shall appear of record with respect to and as encumbrances to
the Property.
Participant further agrees to all terms and conditions set forth in the
Disclosure Statement which is hereby incorporated as if fully set forth herein.
17. Further Assurances. The Participant shall execute any further
documents consistent with the terms of this Agreement, including documents in
recordable form, as the Agency shall from time to time find necessary or
appropriate to effectuate its purposes in entering into this Agreement and making
the Loan.
18. Governing Law. This Agreement shall be governed by the laws
of the State of California. Any legal action brought under this Agreement must
be instituted in the Superior Court of the County of Orange, State of California, in
6
7lagencyk2/T2/20/93lB05A2 PM
an appropriate municipal court in that county, or in the Federal District Court in
the Central District of California.
19. Amendment of Agreement. No modification, recission,
waiver, release or amendment of any provision of this Agreement shall be made
except by a written agreement executed by the Participant and Agency.
20. A encv_MayAssign. Agency may, at its option, assign its
right to receive repayment of the loan proceeds without obtaining the consent of
the Participant.
21. Assumption Permitted/Assignment Prohibited. In no event shall
Participant assign or transfer any portion of this Agreement without the prior
express written consent of the Agency, which consent may be given or withheld
in the Agency's sole discretion. Assumption of the Loan shall be permitted, if
consent is given by Agency. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
22. Entire Agreement. This Agreement constitutes the entire
understanding and agreement of the parties. This Agreement integrates all of
the terms and conditions mentioned herein or incidental thereto, and supersedes
all prior negotiations, discussions and previous agreements between the Agency
and the Participant concerning all or any part of the subject matter of this
Agreement.
23. Relationship of Participant and Aaencv. The relationship of
Participant and Agency pursuant to this Agreement is that of debtor and creditor
and shall not be, or be construed to be a joint venture, equity venture,
partnership, or other relationship.
24. Notices Any notices, requests or approvals given under this
Agreement from one party to another may be personally delivered or deposited
with the United States Postal Service for mailing, postage prepaid, registered or
certified mail, return receipt requested to the following address:
7
7%agencyk21121201931805:42 PM
To participant: Orange County Community Housing Corp.
Aft Executive Director
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
To Agency: THE REDEVELOPMENT AGENCY OF
The City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Either party may change its address for notice by giving written
notice thereof to the other party.
25. I= of Agreement. Except as may be provided herein, the
term of this Agreement is thirty (30) years commencing on the date of execution.
Both parties may mutually agree to extend this Loan Agreement and other
related documents. If on the 30th anniversary date the Loan Agreement is not
extended and Participant is not in default with respect to any provision of this
agreement, the loan amount and the note will be forgiven.
8
7%agencyk2112l201931805A2 Phi
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the day and year written below.
"PARTICIPANT"
Date: By:
Print Name:
Title:
Date: By:
Print Name:
Title:
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a
municipal corporation
Date: By:
Print Name:
Its:
APPROVED AS TO FORM:
By:
GAIL HUTTON
City Attomey/Agency Counsel
9
713gencyk2/12120l931605A2 PM
December 17 , 1993
Honorable Mayor Linda Moulton-Patterson
and Members of the City Council
Re : Purchase of 311 - 13th Street , Huntington Beach
I have been a member of the Board of Directors of the
Orange County Community Housing Corporation for the
past twelve years , and have observed the steady growth of
and respect for this corporation in Orange County .
%'.e have proved to be responsible and responsive landlords
to low income families in the county .
We do our best to instill in our tenants good citizenship ,
respect for property and responsibility for the premises
under their stewardship .
The Corporation is looking forward to a continuing
relationship with Huntington Beach in the future as we
work together for an even greater city .
I urge the city council to approve the purchase of the
building at 311 - 13th Street , Huntington Beach .
Sincerely ours ,
L
ack Green
$12 Auburn Drive
Huntington Beach , California
842-8276
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