HomeMy WebLinkAboutORANGE COUNTY COMMUNITY HOUSING CORPORATION - 1996-01-02 Council/Agency Meeting Held:i a/9U '
Deferred/Continued to:
9Appr ved ❑ o itionally Approved ❑ Denied City Clerk's Sign re
Council Meeting Date: 01/02/96 Department ID Number: ED 96-03
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL
SUBMITTED BY: MICHAEL T. UBERUAGA, CITY ADMINISTRATORee0-0�
PREPARED BY: DAVID C. BIGGS, DIRECTOR OF ECONOMIC DEVELOPMENT
SUBJECT: APPROVAL OF A LOAN AGREEMENT WITH ORANGE COUNTY
COMMUNITY HOUSING CORPORATION (OCCHC) FOR THE
ACQUISITION OF 17361-71 KOLEDO LANE
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: A HOME Investment Partnership program loan agreement between
the City and Orange County Community Housing Corporation (OCCHC) is submitted for
approval. This agreement provides $518,000 in HOME funds for the acquisition and
rehabilitationof 17361 and 17371 Koledo Lane.
Funding Source: 1993 and 1994 HOME Investment Partnership funds. These funds are
not deposited directly into City accounts. They are drawn directly ( as projects are approved
by Council) from the federal treasury as needed for project costs and staff salary and benefit
costs. All expenditures are tracked and recorded by the Accounting Division, in cooperation
with Economic Development staff.
Recommended Action: Motion to:
1. Approve a loan agreement with Orange County Community Housing Corporation
(OCCHC) for $618,000 in HOME Investment Partnership funds for the acquisition and
rehabilitation of 17361 and 17371 Koledo Lane.
2. Approve and authorize execution by the Mayor and City Clerk of the regulatory
agreement (Attachment No. 4 to the affordable housing agreement) between the City
of Huntington Beach and OCCHC concerning the acquisition of 17361 and 17371
Koledo Lane.
Alternative Action(s): Do not approve the proposed transaction and risk the loss of
$428,500 in 1993 HOME funds. The balance of $89,500 in 1994 HOME funds could be
reprogrammed.
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 01/02/96 DEPARTMENT ID NUMBER: ED 96-03
Analysis: At its April 3, 1995 meeting, the City Council approved the commitment of
$428,500 in 1993 and $89,500 in 1994 HOME funds to OCCHC for the acquisition and
rehabilitation of two multifamily rental properties on Koledo Lane. City staff and OCCHC
have concluded negotiations (a complete outline of deal points is included as Attachment
No. 5) and have agreed to the following terms: .
• The City of Huntington Beach will provide $518,000 in HOME Investment
Partnership funds as a residual receipts loan to Orange County Community
Housing Corporation (OCCHC). These funds will be used to acquire two 5-
unit rental properties located at 17361 and 17371 Koledo Lane.
• All units will remain affordable for thirty years for households earning less
than 50% of Orange County median income (defined as very low income),as
adjusted for family size. The thirty year affordability period exceeds those
minimums required by the HOME program. Because these properties are
located in a redevelopment project area and also due to a thirty-year
affordability period, these units will be credited toward the Redevelopment
Agency's replacement housing obligations.
• The amount of HOME assistance will be carried as an interest free loan
provided that the units remain in compliance with the terms of the agreement.
Should a default occur, or should the units be sold or transferred before the
term of affordability expires, the full amount of the HOME assistance must be
repaid with six (6) percent simple (but accruing) interest.
• Beginning in the fifth year of the agreement, and continuing annually through
the thirtieth year, OCCHC will forward the proceeds of a residual receipts
account to the City as a means of repayment of the HOME assistance., The
minimum amount of any annual repayment will be $1,200.00, if funds are
available in the account.
• At the end of the thirty-year term, any remaining principal amount of the loan
will be repaid to the City. While there will be no interest due, the principal
amount of the loan will be adjusted annually for inflation to reflect the present
value of the funds after thirty years.
RCAI.DOC -2- 12/20/95 10:03 AM
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 01/02196 DEPARTMENT ID NUMBER: ED 96-03
• Rents will be set at levels that are affordable to households earning less than
50% of median income. These rent restrictions will exceed those required by
HOME regulations.
Two Bedroom $450+
HUD sets maximum per unit HOME subsidy amounts on a annual basis. Currently, the
maximum subsidy amount for a two bedroom unit is $86,352; With that number, the
maximum total subsidy for the Koledo Lane project would be $863,520. The actual subsidy
per unit breakdown on this project is as follows:
Total HOME Subsidy: $518,000
Total Number of Units: 10
Per Unit HOME Subsidy $ ,11,890
The appraised value of both properties as of February 1995 was $300,000. OCCHC paid
$287,718.00 for 17371 Koledo and $300,811.94 (due to a higher amount of existing debt)
for 17361 Koledo. OCCHC did not pay more for the properties than they were worth from a
current market value standpoint. HUD's only concern is that a purchase price does not
unreasonably exceed the appraised value, which is certainly not happening in this case.
Acquiring and rehabilitating small multifamily properties represents an opportunity to
improve and preserve existing affordable housing throughout Huntington Beach, but
especially in a focus area such as the Oakview neighborhood. Purchase of a third property
by a housing nonprofit in this area (the second on Koledo Lane) is another step toward
stabilizing rental property ownership, which in turn should help improve the quality of the
housing in the neighborhood by keeping rents low, and eliminating overcrowding--at least in
these buildings.
These units will be available to very low income households with affordable rents in the
$450 per month range. When the properties were taken over by OCCHC in April of 1995,
six of the ten units had two families living together in one-family units. These families
were paying approximately $750 per month in rent. Because of OCCHC's involvement,
some individuals and families were moved to other OCCHC-owned properties; some left
voluntarily. Now, one family occupies each unit and will pay 30% of their income, or
$450, whichever is higher.
RCAI.DOC -3- 12/20/95 10:11 AM
•1
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 01/02/96 DEPARTMENT ID NUMBER: ED 96-03
The Agency's involvement with the HOME Program is consistent with the City Council's
established goal of providing for a diverse housing stock throughout the community (City
Goal #8).
At the April 3, 1995 Council meeting, the subject of a possible conflict arose with the
purchase of 17361 Koledo because it was owned by a city employee. At the meeting, the
City Attorney stated that she believed no conflict existed. After the meeting, staff asked for a
written clarification on the issue. The City Attorney responded with a written opinion, and a
copy of that opinion is attached for your review.
In addition, on December 22, 1995, the Council's Economic Development Committee
reviewed the terms of the proposed Loan Ageement and recommend its approval.
Environmental Status: Categorically exempt under the National Environmental
Protection Act (NEPA).
Attachment(s)•
NumberCity Clerk's
Page
1. Loan Agreement with OCCHC
2. Location Map: 17361 & 17371 Koledo Lane
>: 3. Project Proposal from OCCHC
4. Pro Forma
5. Deal Point Summary
6. Council Action from April 3, 1995
7. City Attorney Memorandum Dated May 5, 1995
MTU:DCB:GAB:gb:ee
RCA1.00C -4- 12/20/95 10:03 AM
Affordable Housing Agreement
(Acquisition and Rehabilitation of
17361 and 17371 Koledo Lane)
By and Between the
City of Huntington Beach,
Lender,
and
Orange County Community Housing Corporation
a California nonprofit public benefit corporation,
Borrower.
HOME Partnership Agreement M92-MC060514
CHDO # M93-060514-01
4'LagreeXoledo Covee-.124,95
LOAN AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON BEACH
AND THE ORANGE COUNTY COMMUNITY HOUSING CORPORATION
CONCERNING THE ACQUISITION AND REHABILITATION OF AFFORDABLE
HOUSING ON KOLEDO LANE WITH FUNDS OBTAINED FROM THE HOME
INVESTMENT PARTNERSHIP PROGRAM
This Loan Agreement is made this�day of 199 , by and
between ORANGE COUNTY COMMUNITY HOUSING ORPO TION a aliforma
nonprofit public benefit corporation(hereinafter referred to as "Borrower"), and THE CITY OF
HUNTP_VGTON BEACH, a municipal corporation of the State of California ("hereinafter referred
to as Lender").
WHEREAS, Lender and Borrower wish to enter into an agreement for the loan of HOME
Investment Partnership Program funds for the purpose of acquiring and rehabilitating certain
affordable rental housing units located on Koledo Lane in the City of Huntington Beach, as more
fully described hereinbelow; and
These Recitals refer to and utilize certain capitalized terms which are defined in Article 1
of this Agreement. The parties intend to refer to those definitions in conjunction with the use of
capitalized terms in these Recitals-, and
Lender wishes to promote the development of more affordable rental housing in
neighborhoods in need of revitalization in the Huntington Beach community and to provide a
greater choice of housing opportunities for persons and families of low income; and
Lender has received Home Investment Partnership Program funds ("HOME Funds") from
the United States Department of Housing and Urban Development ("HUD") pursuant to the
Cranston-Gonzales National Housing Act of 1990 for the purpose of expanding the supply of
decent, safe, sanitary and affordable housing for very-low and low-income persons and families;
and
Borrower proposes to acquire the real property and improvements located at 17361 and
17371 Koledo Lane, Huntington Beach, California(as more particularly described in Exhibit A)
(the "Property"), for the rehabilitation of ten units housing of affordable to very-low income
households as defined in this Loan Agreement for this project (the"Project"),- and
Borrower wishes to borrow from Lender and Lender wishes to extend to Borrower a loan
of HOME funds to support development of the Project. The Loan is being made to finance
acquisition costs associated with the Project in order to help achieve financial feasibility for the
project and maximize the affordability of the rental housing,
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NOW THEREFORE, in consideration of the mutual agreements, obligations, and
representations, and in further consideration for the making of the Loan, Borrower and Lender
hereby agree as follows:
ARTICLE 1. DEFINITIONS
The following terms shall have the meanings and content set forth in this section wherever
used in this Loan Agreement,
1.1 "BORROWER" means Orange County Community Housing Corporation, a
California nonprofit public benefit corporation, and its authorized representatives, assigns,
transferees, or successors-in-interest thereto.
1.2 "CERTIFICATE OF PROJECT COMPLETION" means that certificate
issued to Borrower by Lender evidencing completion of the Project pursuant to the terms of this
Loan Agreement.
1.3 "CITY" means the City of Huntington Beach, a municipal corporation, and its
authorized representatives, officers, officials, employees and agents.
1.4 "HAZARDOUS MATERIALS" means any hazardous or toxic substances,
materials, wastes, pollutants, or contaminants which are defined, regulated, or listed as
"hazardous substances," "hazardous wastes," "hazardous materials," "pollutants," "contaminants,"
or "toxic substances," under federal or state environmental and health and safety laws and
regulations, including without limitation petroleum and petroleum byproducts, flammable
explosives, urea formaldehyde insulation, radioactive materials, asbestos, and lead. Hazardous
Materials do not include substances that are used or consumed in the normal course of
developing, operating, or occupying a housing project, to the extent and degree that such
substances are stored, used, and disposed of in the manner and in amounts that are consistent with
normal practice and legal standards.
1.5 "HOME" means the HOME Investment Partnership Program created by the
National Affordable Housing Act of 1990.
1.6 "HUD" means the United States Department of Housing and Urban
Development.
1.7 "LEASE" means the lease entered into between Borrower and a tenant of a unit
in the Project.
1.8 "LENDER" means the City of Huntington Beach, a municipal corporation, and
its authorized representatives, officers; officials, employees, and agents.
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1.9 "LOAN" means the loan of HOME Investment Partnership Program funds
provided by Lender to Borrower pursuant to this Loan Agreement.
1.10 "LOAN AGREEMENT" means this loan agreement entered into between
Lender and Borrower.
1.11 "LOAN DOCUMENTS" means, collectively, this Loan Agreement, the Notes
and the Deeds of Trust that shall be executed in connection with the Loan, as they may be
amended, modified, or restated from time to time, along with all exhibits and attachments to these
documents.
1.12 "MEDIAN INCOME" means the median income for the Orange County Primary
Metropolitan Statistical Area(PMSA), with adjustments for household size, as determined from
time to time by the U.S. Department of Housing and Urban Development (HUD) pursuant to the
United States Housing Act of 1937 as amended, or such other method of median income
calculation applicable to the City that HUD may hereafter adopt in connection with said Act.
1.13 "NOTE" means that promissory note executed by Borrower in favor of Lender
evidencing the Loan, as well as any amendments to, modifications of, or restatements of said
promissory note. The Note shall be in substantially the same form as the document attached
hereto as Attachment No. 2.
1.14 "OPERATING EXPENSES" means all reasonable and proper expenses for
occupancy and rehabilitation of the Project, including: real estate taxes-, other taxes; insurance,
including mortgage loan insurance; debt service and other periodic fees and payments in
connection with any amortized Ioan approved by Lender; repayment of the Borrower's equity and
interest in the Project (interest shall accrue at the same rate of the primary loan secured by a deed
of trust); maintenance and repair; costs of renting and management; fuel; utilities; garbage
disposal; sewer charges; audit expenses; required reserve deposits including operating and reserve
income; and other cash payments which may be approved by Lender.
1.15 "PLANS AND SPECIFICATIONS" means the plans and specifications which
shall be used to rehabilitate the Project.
1.16 "PROJECTS" means the five (5) units of rental housing on the Properties to be
owned and operated by the Borrower for Very-Low Income Households according to the terms
of this Loan Agreement.
1.17 "PROPERTIES" consists of the real property located at 17361 and 17371
Koledo Lane, Huntington Beach, California as more particularly described in the attached Exhibit
A, which is incorporated into this Loan Agreement by this reference.
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1.18 "REGULATORY AGREEMENT" shall mean the agreement executed by the
Borrower for the benefit of the City, limiting the income of families eligible to rent the units to
Very Low Income Households and in addition limiting the amount of rent that can be charged for
the units for a minimum of thirty (30) years, in substantially the same form as the document
attached hereto as Attachment No. 4.
1.19 "REVENUE" means the gross rental income derived from the ownership,
operation and management of the Project.
1.20 "RESIDUAL RECEIPTS" means the Revenue, less the sum of Operating
Expenses, and annual deposits to required operating reserves and placement reserves calculated
on an annual basis.
1.21 "VERY LOW INCOME HOUSEHOLDS" shall mean a family or individual
whose annual income does not exceed fifty percent (50%) of the median income for the Orange
County Metropolitan Statistical Area as determined by HUD with adjustments for smaller and
larger families.
ARTICLE 2. ATTACHMENTS
The following documents are attached to this Loan Agreement as Attachments and are
incorporated into this Loan Agreement by this reference as though fully set forth:
2.1 ATTACHMENT NO. 1: Legal Description: 17361 Koledo Lane
ATTACHMENT NO. IA: Legal Description: 17371 Koledo Lane
2.2 ATTACHMENT NO. 2: Promissory Note: 17361 Koledo Lane
ATTACHMENT NO. 2A: Promissory Note: 17371 Koledo Lane
2.3 ATTACHMENT NO. 3: Deed of Trust: 17361 Koledo Lane
ATTACHMENT NO. 3A: Deed of Trust: 17371 Koledo Lane
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2.4 ATTACHMENT NO. 4: Regulatory Agreement: 17361 Koledo Lane
ATTACHMENT NO. 4A: Regulatory Agreement: 17371 Koledo Lane
2.5 ATTACHMENT NO. 5: Scope of Work
2.6 ATTACHMENT NO. 6: Schedule of Performance
2.7 ATTACFLMENIT INTO. 7: City of Huntington Beach Rental Property
Acquisition Guidelines
2.8 ATTACHMENT NO. 8 City of Huntington Beach Multi-Family Rental
Rehabilitation Loan Program Guidelines
ARTICLE 3. TERMS OF LOAN
3.1 LOAN. Lender agrees to provide a loan of HOME funds to Borrower under the
terms and conditions of the Loan Documents.
3.2 AMOUNT OF LOAN. On and subject to the terms and conditions of the Loan
Documents, Lender agrees to make and Borrower agrees to accept a loan in the amount of Five
Hundred Eighty-one Thousand Dollars ($581,000), which shall be evidenced by the Notes, and
secured by the Deeds of Trust.
3.3 INTEREST. The Note shall bear simple interest at the rate of six percent (6%)
per annum on the principal amount outstanding from the date of the Note until paid or forgiven,
3.4 REPAYMENT OF LOAN. There may be periodic payments under the Note.
Commencing on the fifth (5th) anniversary of the close of Escrow and continuing until the
thirtieth (30th) anniversary of the Close of Escrow, the Borrower shall make minimum annual
payments (the"Annual Payment") in the amount of One Thousand Two Hundred Dollars
($1,200.00). Each Annual Payment shall be due annually on each anniversary of the Close of
Escrow beginning on the fifth (5th) anniversary of the Close of Escrow and continuing and
including the thirtieth (30th) anniversary of the Close of Escrow; provided, however, that
remaining outstanding principal of the Loan shall be repaid on the thirtieth (30th) anniversary of
the Close of Escrow. If the balance of the Residual Receipts account is insufficient to fully fund an
Annual Payment, Borrower agrees to make-up any shortfall that may exist in the account so that
the Annual Payment can be made. Borrower may request that the Lender reduce, suspend or
forgive an Annual Payment, and the Borrower may present evidence to the Lender of its inablility
to make an Annual Payment; however, Lender reserves the exclusive right in its sole discretion to
reduce, suspend or forgive an Annual Payment.
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AlI principal and interest on the Loan shall be due in full upon the earliest to occur of.:
(1) the occurrence of a default under this Agreement, the Note, the Deed of
Trust, or the Agreement Containing Covenants, which event of default is
not cured within the applicable cure period; or
(2) the thirtieth (30th) anniversary of Close of Escrow.
3.5 LOAN SECURITY. Upon the making of the Loan, the Borrower shall cause to
be executed and recorded in the official records of Orange County the Deeds of Trust, and the
Regulatory Agreements.
3.6 PREPAYMENT OF LOAN. No prepayment penalty will be charged to
Borrower for payment of all or any portion of the Loan amount prior to the end of the Loan term
described herein.
3.7 CONDITIONS PRECEDENT TO DISBURSEMENT. Lender shall not be
obligated to make disbursements of Loan proceeds unless all of the following conditions
precedent are satisfied:
1. There exists no Event Default under the Loan Agreement.
2. Borrower has delivered a management plan acceptable to the Lender for the on-
going management and operation of the Project.
3. Borrower has received a final certificate of occupancy for this Project.
3.8 LENDER'S OPTION TO PURCHASE. Upon notice to Lender that Borrower
intends to effect a transfer of the Property as provided in Section 4.7 hereof, or upon the
termination of this Agreement, Lender shall have the right, for 60 days after such notice or
termination, to purchase the Property at the fair market value thereof, less the principal amount of
HOiV1E funds originally loaned to the Borrower and adjusted annually for inflation based on the
Consumer Price Index (CPI), or another comparable index, as mutually agreed upon by both
parties. Lender shall exercise this right in its sole discretion. The fair market value shall be
determined by a qualified real estate appraiser, mutually selected by the Borrower and Lender.
ARTICLE 4. PROJECT OPERATION
4.1 OPERATION OF PROJECT. Borrower shall lease, operate and manage the
Project in full conformance with the terms of the Regulatory Agreement.
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RLS95-519
4.2 INCOME CERTIFICATION. Borrower shall determine the income eligibility
of each prospective tenant household prior to renting a Project unit to such household. Borrower
shall certify each tenant household's income on an annual basis.
4.3 AFFORDABILITY RESTRICTIONS. The affordability of the Projects shall be
maintained for a minimum period of thirty(30) years following the recordation of the Regulatory
Agreement. All ten (10) units in the Projects shall at all times be occupied or held vacant and
available for rental by Very Low Income Households. Income determination shall be made at the
time of initial occupancy of a unit by a tenant.
4.4 MAXIMUM RENTAL CHARGES. The total charges for rent, utilities, and
related services to each Very Low-Income Household shall not exceed thirty percent (30%) of
fifty percent (50%) of Median Income. Maximum annual rent increases shall be calculated by
Lender based on the change in permissible rents published annually by HIJD.
4.5 NONDISCRIMINATION. Borrower shall not discriminate or segregate in the
development, construction, use, enjoyment, occupancy, conveyance, lease, sublease, or rental of
any part of the Property on the basis of race, color, ancestry, national origin, religion, sex, sexual
preference, age, marital status, family status, source of income, physical or mental disability,
Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), or any other
arbitrary basis. Borrower shall otherwise comply with all applicable local, state, and federal laws
concerning discrimination in housing.
4.6 ENCUMBRANCE OF PROPERTY. Except as otherwise provided in this Loan
Agreement, Borrower shall not engage in any financing or any other transaction creating any
security interest or other encumbrance or lien upon the Property, whether by express agreement
or operation of law, or allow any encumbrance or lien to be made on or attached to the Property,
except with the prior written consent of Lender. Borrower shall notify Lender in writing in
advance of any financing secured by any deed of trust, mortgage, or other similar lien instrument
that it proposes to enter into with respect to the Project or Property, and of any encumbrance or
lien that has been created on or attached to the Property whether by voluntary act of Borrower or
otherwise.
Borrower agrees to fully satisfy and payoff the following prior liens and deeds of trust
within six (6) months of the execution of this HOME loan agreement:
Trust deeds recorded as Instruments Nos. 87-683616 and 87-683609 of Official
Records, County of Orange, California
Lender hereby approves and consents to the following prior liens:
Instruments Nos. 90-296652 and 90-296658 of Official Records, County of
Orange, California.
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4.7 TRANSFER OF PROPERTY. Borrower has neither made or created, and shall
not make or permit any sale, assignment, conveyance, lease, or other transfer of this Loan
Agreement, the Project, or the Property, or any part thereof, including the sale of any general or
limited partnership interests, without the prior written consent of Lender.
4.8 LEAD-BASED PAINT. Borrower shall ensure that it and its contractors and
subcontractors shall not use lead-based paint in the construction or maintenance of the Property.
Borrower shall insert this provision in all contracts and subcontracts for work performed on the
Project which involve the application of paint. Borrower will test both properties for the presence
of lead-based paint as required by HUD regulations. Borrower will furnish copies of test results
to Lender. Borrower will remediate any asbestos or lead-based paint hazards where the Ievel of
that substance is found to be in excess of acceptable thresholds.
4.9 BARRIERS TO THE DISABLED. Borrower shall ensure that the Project shall
be developed and the Property shall be maintained to comply with all applicable federal, state, and
local requirements for access for disabled persons.
4.10 INDEMNIFICATION, DEFENSE, HOLD HARMLESS. Borrower hereby
agrees to protect, defend, indemnify and hold and save harmless Lender, its officers and
employees against any and all liability, claims,judgments, costs and demands, however caused,
including those resulting from death or injury to Borrower's employees and damage to Borrower's
property, arising directly or indirectly out of the obligations or operations herein undertaken by
Borrower, including those arising from the passive concurrent negligence of Lender, but save and
except those which arise out of the active concurrent negligence, sole negligence, or the sole
willful misconduct of Lender. Borrower will conduct all defense at its sole cost and expense.
Lender shall be reimbursed by Borrower for all costs or attorney's fees incurred by Lender in
enforcing this obligation.
4.11 WORKERS' COMPENSATION INSURANCE. Pursuant to the
California Labor Code Section 1861, Borrower acknowledges awareness of Section 3700 et seq.
of said code, which requires every employer to be insured against liability for workers'
compensation; Borrower covenants that it will comply with all such laws and provisions prior to
commencing performance of the work hereunder.
Borrower shall maintain such Workers' Compensation Insurance'in an amount of not less
than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each occurrence, One
Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee, and Two
Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit, at all times
incident hereto, in forms and underwritten by insurance companies satisfactory to Lender.
Borrower shall require all subcontractors to provide such Workers' Compensation
Insurance for all of the subcontractors' employees. Borrower shall furnish to Lender a certificate
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of waiver of subrogation under the terms of the Workers' Compensation Insurance and Borrower
shall similarly require all subcontractors to waive subrogation.
4.12 INSURANCE COVERAGE. Borrower shall carry at all times incident hereto,
on all operations to be performed hereunder, general liability insurance, including coverage for
bodily injury, property damage, and blanket contractual liability. Said insurance shall also include
automotive bodily injury and property damage liability insurance. All insurance shall be
underwritten by insurance companies in forms satisfactory to Lender for all operations,
subcontract work, contractual obligations, product or completed operations and all owned
vehicles and non-owned vehicles. Said insurance shall name the Lender, its officers, agents and
employees and all public agencies as determined by the Lender as Additional Insureds. Borrower
shall subscribe for and maintain said insurance policies in full force and effect during the life of
this Agreement, in an amount of not less than One Million Dollars ($1,000,000). In the event of
aggregate coverage, Borrower shall immediately notify Lender of any known depletion of limits.
Borrower shall require its insurer to waive its subrogation rights against Lender and agrees to
provide certificates evidencing the same.
4.13 CERTIFICATES OF INSURANCE; ADDITIONAL INSURED
ENDORSEMENT. Prior to commencing performance of the obligations undertaken hereunder,
Borrower shall furnish to Lender certificates of insurance subject to approval of the City Attorney
evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall
provide the name and policy number of each carrier and policy, and shall state that the policy is
currently in force and shall promise to provide that such policies will not be canceled without
thirty (30) days prior written notice to Lender. Borrower shall maintain the foregoing insurance
coverages in force until the rehabilitation work under this Agreement is fully completed and
accepted by Lender.
The requirement for carrying the foregoing insurance shall not derogate from the
provisions for indemnification of Lender by Borrower under this Agreement. Lender or its
representative shall at all times have the right to demand the original or a copy of all said policies
of insurance. Borrower shall pay, in a prompt and timely manner, the premiums on all insurance
herein above required.
A separate copy of the additional insured endorsement to each of Borrower's insurance
policies, naming the Lender, its officers and employees as Additional Insureds shall be provided to
the City Attorney for approval prior to any payment hereunder.
4.14 RELOCATION REQUIREMENTS. Borrower shall comply with any and
all of the City's relocation requirements pursuant to California Government Code Section 7260 et
seq. and 49 Code of Federal Regulation Part 24 (the "Requirements"). The Borrower shall
submit for the City's approval, a copy of the relocation plan prepared pursuant to the .
Requirements, prior to the relocation of any tenant in the Project.
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4.15 RELOCATION. Borrower agrees to indemnify, protect, hold harmless and
defend the City, its council members, officers and employees from all suits, actions, claims, causes
of action, costs, demands,judgments and liens arising out of the Borrower's performance or non-
performance of the Requirements.
ARTICLE 5. HAZARDOUS MATERIALS
5.1 REPRESENTATIONS AND WARRANTIES. After reasonable investigation
and inquiry, Borrower hereby represents and warrants to the best of its knowledge, as of the date
of this Loan Agreement and except as previously disclosed and acknowledged in writing by
Lender or as disclosed by the reports based on environmental audit(s) performed on the Property
and submitted to Lender, that (a) the Property is not and has not been a site for the use,
generation, manufacture, transportation, storage, or disposal of Hazardous Materials; (b) the
Property is in compliance with all applicable environmental and health and safety laws,
regulations, ordinances, administrative decisions, common Iaw decisions (whether federal, state,
or local) with respect to Hazardous Materials, including those relating to soil and groundwater
conditions ("Hazardous Materials Laws"),- (c) there are no claims or actions pending or threatened
with respect to the Property by any governmental entity or agency or any other person relating to
Hazardous Materials; and (d) there has been no release or threatened release of any Hazardous
Materials on, under, or near the Property (including in the soil, surface water, or groundwater
under the Property) or any other occurrences or conditions on the Property or on any other real
property that could cause the Property or any part thereof to be classified as a "hazardous waste
property" or as a "border zone property" under California Health and Safety Code Sections
25220, et seq., or regulations adopted therewith.
5.2 NOTIFICATION TO LENDER Borrower shall immediately notify Lender in
writing of: (a) the discovery of any concentration or amount of Hazardous Materials on or under
the Property requiring notice to be given to any governmental entity or agency under Hazardous
Materials Laws; (b) any knowledge by Borrower(after verification of the veracity of such
knowledge to Borrower's reasonable satisfaction) that the Property does not comply with any
Hazardous Materials Laws; (c) the receipt by Borrower or the Partnership of written notice of any
Hazardous Materials claims; and (d) the discovery by Borrower or the Partnership of any
occurrence or condition on the Property or on any real property located within 2,000 feet of the
Property that could cause the Property or any part thereof to be designated as a "hazardous waste
property" or as a "border zone property" under California Health and Safety Code Sections
25220, et seq., or regulations adopted therewith.
5.3 USE AND OPERATION OF PROPERTY. The Borrower nor any agent,
employee, or contractor of Borrower, nor any authorized user of the Property shall use the
Property or allow the Property to be used for the generation, manufacture, storage, disposal, or
release of Hazardous Materials. Borrower shall comply with Hazardous Materials Laws.
10
4's`--G:Agree:Ko1cdo;Loanagre a:'17:96
RLS95-519
ARTICLE 6. DEFAULT AND REMEDIES
6.1 EVENTS OF DEFAULT. The occurrence of any of the following events shall
constitute an "Event of Default" under this Loan Agreement:
A. Monetary. (1) Borrower's failure to pay when due any sums payable under the
Note or any advances made by Lender under the Deed of Trust or this Loan
Agreement; (2) Borrower's use of Loan funds for costs other than Eligible Costs
or for uses inconsistent with other terms and restrictions in the Loan Documents;
(3) Borrower's failure to obtain and maintain the insurance coverage required
under this Loan Agreement; (4) Borrower's failure to make any other payment or
assessment due under the Loan Documents;
B. Operation. (1) discrimination by Borrower on the basis of characteristics
prohibited by this Loan Agreement or applicable law; (2) the imposition of any
encumbrances or liens on the Property without Lender's prior written approval that
are prohibited under this Loan Agreement or that have the effect of reducing the
priority of or invalidating the Deed of Trust; (3) any material adverse change in
the condition of Borrower or the Project or permanent financing or funding for the
Project that gives Lender reasonable cause to believe that the Project cannot be
operated according the terms of the Loan Documents or the Regulatory
Agreement;
C. General performance of Loan obligations. Any substantial or continuous breach by
Borrower of any material obligations on Borrower imposed in the Loan
Documents or Regulatory Agreement;
D. Representations and warranties. A determination by Lender that any of
Borrower's representations or warranties made in the Loan Documents, any
statements made to Lender by Borrower, or any certificates, documents, or
schedules supplied to Lender by Borrower were untrue in any material respect
when made, or that Borrower concealed or failed to disclose a material fact from
Lender;
E. Bankruptcy, dissolution, and insolvency. Borrower's or any general partner of
Borrower's or any corporation controlling Borrower's (1) filing for bankruptcy,
dissolution, or reorganization, or failure to obtain a full dismissal of any such
involuntary filing brought by another party before the earlier of final relief or 60
days after the filing; (2) making a general assignment for the benefit of creditors;
(3) applying for the appointment of a receiver, trustee, custodian, or liquidator, or
failure to obtain a full dismissal of any such involuntary application brought by
another party before the earlier of final relief or 60 days after the filing; (4)
11
4 s':G:Agree:Koledo:Loanagrea!17196
RIS95.519
insolvency; (5) failure, inability or admission in writing of its inability to pay its
debts as they become due.
6.2 NOTICE OF DEFAULT AND OPPORTUNITY TO CURE. For nonmonetary
Events of Default, Lender shall give written notice to Borrower of any Event of Default by
specifying: (a) the nature of the event or deficiency giving rise to the Default, (b) the action
required to cure the deficiency, if an action to cure is possible, and (c) a date, which shall not be
less than thirty (30) calendar days from the date of receipt of the notice or the date the notice was
refused, by which such action to cure must be taken.
6.3 LENDER'S REMEDIES. Upon the happening of an Event of Default by
Borrower and a failure to cure said Event of Default within the time specified in the notice of
Event of Default (if a notice is required), and Lender may, in addition to other rights and remedies
permitted by the Loan Documents or applicable law, proceed with any or all of the following
remedies in any order or combination Lender may choose in its sole discretion:
A. Bring an action in equitable relief(1) seeking the specific performance by
Borrower of the terms and conditions of the Loan Documents, and/or (2)
enjoining, abating, or preventing any violation of said terms and conditions, and/or
(3) seeking declaratory relief;
B. Accelerate the Loan, and demand immediate full payment of the principal amount
outstanding and all accrued interest under the Note, as well as any other monies
advanced to Borrower by Lender under the Loan Documents;
C. Foreclose under the Deed of Trust and enforce any remedies incident thereto.
D. Pursue any other remedy allowed at law or in equity.
6.4 BORROWER'S REMEDIES. Upon the fault or failure of Lender to meet any of
its obligations under the Loan Documents, Borrower may:
A. Demand payment from Lender of any sums due Borrower; and/or
B. Bring an action in equitable relief seeking the specific performance by Lender of
the terms and conditions of the Loan Documents; and/or
C. Pursue any other remedy allowed at law or in equity.
ARTICLE 7. GENERAL PROVISIONS
7.1 BORROWER'S WARRANTIES. Borrower represents and warrants (1) that it
has access to professional advice and support to the extent necessary to enable Borrower to fully
12
4ls\G:Agrec:Kolcdo:Loanagrc%1/17r96
RLS95-519
comply with the terms of these Loan Documents and the Regulatory Agreement and to otherwise
carry out the Project, (2) that it is duly organized, validly existing and in good standing under the
laws of the State of California, (3) that it has the full power and authority to undertake the Project
and to execute the Loan Documents, (4) that the persons executing and delivering the Loan
Documents are authorized the execute and deliver such documents on behalf of Borrower, (5)
except as disclosed to the Lender in writing, there are no actions or proceedings pending or, to
the best of Borrower's knowledge, threatened against the Borrower before any court or
administrative agency in any way connected with the Property or the Project which could
adversely affect the Borrower's ability to perform the activities contemplated hereunder, (6)
neither this Loan Agreement nor anything provided to be done hereunder violates or shall violate
any contract, agreement or instrument to which the Borrower is a party or which affects the
Project or any part thereof, (7) the Borrower is not in default in respect of any of its obligations
or liabilities pertaining to the Project; nor is there any state of facts or circumstances or conditions
or events which, after notice, lapse of time, or both, would constitute or result in any such default,
and (S) the Borrower has not entered into any agreements which will adversely affect the title to
the Project or the Borrower's right to develop and use the Project as provided in this Loan
Agreement, and the Borrower will not enter into any such agreements after the date hereof.
7.2 TERM OF THIS AGREEMENT. This Loan Agreement shall commence on the
date set forth above and remain in full force and effect throughout the term of the Loan. This
Loan Agreement shall terminate upon the termination of the Loan.
7.3 GOVERNING LAW. The Loan Documents shall be interpreted under and be
governed by the laws of the State of California, except for those provisions relating to choice of
law or those provisions preempted by federal law.
7.4 ATTORNEYS' FEES AND COSTS. In the event any Event of Default or any
legal or administrative action is commenced to interpret or to enforce the terms of the Loan
Documents, each party shall bear its own attorneys' fees and costs. The prevailing party in any
such action shall not be entitled to recover any attorneys' fees or costs in such action.
T5 TIME. Time is of the essence in these Loan Documents.
7.6 CONSENTS AND APPROVALS. Any consent or approval of Lender or
Borrower required under the Loan Documents shall not be unreasonably withheld. Any approval
required under the Loan Documents shall be in writing and executed by an authorized
representative of the party granting the approval.
7.7 NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices,
demands and communications between Borrower and Lender shall be sufficiently given and shall
not be deemed given unless dispatched by registered or certified mail, postage prepaid, return
receipt requested, or delivered personally, to the principal offices of Borrower and Lender as
follows:
13
4-s\G:Agrse:Kolcdo:LoanagrelU 1 T96
RLS95-519
LENDER: City of Huntington Beach
2000 Main Street'
Huntington Beach, CA 92648
Attention: Office of City Administrator
BORROWER: Orange County Community Housing Corporation
1833 East 17th Street
Suite 207
Santa Ana, CA 92701
Attn: Executive Director
7.8 BINDING UPON SUCCESSORS. All provisions of these Loan Documents
shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-
in-interest, transferees, and assigns of each of the parties; provided, however, that this section
does not waive the prohibition on assignment of this Loan Agreement by Borrower without
Lender's consent.
7.9 RELATIONSHIP OF PARTIES. The relationship of Borrower and Lender for
this Project under this Loan Agreement is and at all times shall remain solely that of a debtor and
a creditor, and shall not be construed as a joint venture, equity venture, partnership, or any other
relationship. Lender neither undertakes nor assumes any responsibility or duty to Borrower
(except as provided for herein) or any third party with respect to the Project, the Property, or the
Loan. Except as Lender may specify in writing, Borrower shall have no authority to act as an
agent of Lender or to bind Lender to any obligation.
7.10 ASSIGNMENT AND ASSUMPTION. Borrower shall not assign any of its
interests under this Loan Agreement or the Loan Documents to any other party, except as
specifically permitted under the terms of the Loan Documents, without the prior written consent
of Lender. Any unauthorized assignment shall be void.
7.11 WAIVER. Any waiver by Lender of any obligation in these Loan Documents
must be in writing. No waiver will be implied from any delay or failure by Lender to take action
on any breach or default of Borrower or to pursue any remedy allowed under the Loan
Documents or applicable law. Any extension of time granted to Borrower to perform any
obligation under the Loan Documents shall not operate as a waiver or release from any of its
obligations under the Loan Documents. Consent by Lender to any act or omission by Borrower
shall not be construed to be a consent to any other or subsequent act or omission or to waive the
requirement for Lender's written consent to future waivers.
7.12 INTEGRATION. This Loan Agreement and the other Loan Documents,
including exhibits, executed by Borrower for the Property, if any, contain the entire agreement of
the parties and supersede any and all prior negotiations.
14
4ls':G:Agree:Koledo:Loanagrei l/I W96
RLS95.519
7.13 OTHER AGREEMENTS. Borrower represents that it has not entered into any
agreements that are inconsistent with the terms of the Loan Documents. Borrower shall not enter
into any agreements that are inconsistent with the terms of the Loan Documents without an
express waiver by Lender in writing.
7.14 AMENDMENTS AND MODIFICATIONS. Any amendments or modifications
to the Loan Documents must be in writing, and shall be made only if executed by both Borrower
and Lender.
15
4W.-G:Agree:Roledo:Loanagre+1;17;96
RLS95-519
7.15 SEVERABILITY. Every provision of this Loan Agreement is intended to be
severable. If any provision of this Loan Agreement shall be held invalid, illegal, or unenforceable
by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired.
IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement by
and through their authorized officers as of the date first above written.
BORROWER: LENDER:
ORANGE COUNTY COMMUNITY HOUSING City OF HUNTINGTON BEACH,
CORPORATION, a California nonprofit public a California municipal
benefit corporation
By; 4
Mayor
Its: RSZC'�cl�
By: ATTEST:
Its: o ��
City Clerk3/3/%,
APPROVED AS TO ORM
W
Attorney �A
RE D AND APPROVED: INITrATED AND APPROVED:
.4ffl
'v --
City dministrator Director of Economic Development
16
41s1G:Agree:Koledo:Loanagre11I1 W96
FLS95-519
Attachment No. 1
Legal Description
17361 Koledo Lane
Lot 10 of Tract No. 4301, as per map recorded in Book 177, Pages 11 and 12 of Miscellaneous
Maps, in the office of the County Recorder of said County, together with that portion of Koledo
Lane lying parallel to and adjacent to said lots, which would pass by operation of law, as vacated
by the City of Huntington Beach by Resolution No. 5353, recorded 2-15-84 as Inst.
No. 84- 065494, Official Records.
Dated: December 23, 1994
Attachment No. 1
Page 1 of 1
4's1G:Agree:Koledo:Loanag3reil i 17,'96
RLS95-519
Attachment No. I
Legal Description
17371 Koledo Lane
Lot 9 of Tract No. 4301, as per map recorded in Book 177, Pages 11 and 12 of Miscellaneous
Maps, in the office of the County Recorder of said County; together with that portion of Koledo
Lane lying parallel to and adjacent to said lots, which would pass by operation of law, as vacated
by the City of Huntington Beach by Resolution No. 5353, recorded February-15, 1984, as
Instrument No. 84-065494, Official Records.
Dated: December 23, 1994
Attachment No. 1 A
Page 1 of 1
4!s1G:Agree:Koledo)oanagrell i I W96
RLS95-519
' ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
_�4 tk�F.
CORPORATE RESOk ON FOR LENDER
�3k- �7-
1,Robert A.Johnson,Secretary of 2,11oa; botchy.certify to the'.CITY.OF HUNT[NGTON BEACH(hereinafter'LENDER')
G. �'• that I am the duly elected and qualified Chaiemee of the Boatel of(]range County Community Houainy Corporation,a California nonprofit,public
« ro' r ih - 1 -€ a
benefit,corporation duly organized and ezistirtg:undor the laws`of.tho State of California(hereins&r_'OCCHC');that the following is a true
_p copy of certain resolutions duly adopted by rho Board of Duectan of OCCHC at a irt�cting.duly called,noticed and held on February 16, 1993,
at which meeting a quorum was present end aZ6 thtbughout,"that.auch.roaolutiona h be ave en dulydecorded in the minutes of the Board of
Director of OCCHC,bylaws and other in,lrumetda;biMuW oi,affociing.00CHC;stud that`si eh resolutions have not been revoked,rescinded
or modified,and are now in full force and effect iii the follows form:= `'
D 3EAT,OCCHC execute Lnan Documents with icgnid to the'fimocing of approximately FIVE HUNDRED SEVENTY
THOUSAND DOLLARS($370,000 t 3%)on tiie propapy}commonlyf��town'aa,1736Nfid-l7371 k6Wo,Huntington Beach,California.
RESOLVED THAT:the Executive Director i411cn P:Baldwin'AND/OR-Assistant Director Joseph Singh,be and they are hereby
q- ti, -. ry ryr.. ,
authorized,empowered,and directed for and on behal of grid uridei tho-cotporate.veal 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 judi ea6i tk4 designee;OCCHC--may require on such terms and conditions
as shall 1M required b lender.and to Y .. li ••' av"-- . .- - "•-' _•r
neq y sign aad dehver each promissory notea'aiid other evidancee of indebtedness for such money borrowed or
advanced as lender"I require,the designee being'aiA'autho°irtao�ua dire l--- it for_in�ling ttie'disp6aition of the proceeds of any such
obligation,and to accept or direct delivery ettom er.scrow of any such proce reds:or other property'of OCCHC at any time held by lender; (2)to
contract with lender for the issuance.byIender"of letter of cnedttand for other financial'eccomtnodalians as shall in the discretion of the
Y- .t• s _
designee be required for OCCHC repayment to lender;a6 lender,s6ill i�equire;!(3)to_etue-r into'agreemenls for the leasing and/or purchase of
property by OCCHC from lender,for such sums and upon,uchAtonms as may be advisable in the"solo judgement of the designee;(a)to grant
security interests in,mortgage,encumber,pledge;convey;grant,hypotficcstc,deed lit trvst,�awig:s;.oell transfer,and deliver to lender by such
instruments in writing or otherwise as may Wiequired by lender,+eny,of_th'e property of OCCHC'(whetber real,personal or mixed),to secure
the payment of promissory notes,guarantees,agreements,end any other evidences or.indebtedness and other obligations of OCCHC entered
into pursuant to these resolutions,and.for all,instruments,-gromiasary,'notes,guaraiise'ea,'agree'tiienta,and any other evidences of indebtedness
r., i:ic , ::; i .r v �.
and other obligations of OCCHC,arid all renewals acid/oi cxtonsions:there.16 4'in sucWiormi_aind contain such provisions,covenants,
.� •-�, ,- --- tin - : -. . �.
recitals, and agreements as lender may.regtunsjand the i signec a iay.approve,:end t9c execution thereof by the designee shall be conclusive
evidence of such approval;(3)to negatiata;endorw;and sell to,onto dlacouitl'with escrnw.�notec acceptances,bills of exchange,receivables
and other instruments and evidences of i" dncas payable to,or othcrwisciheld•or owned by-'- HC,upon such terms as may be agreed
upon by the designee and lender, and to en dorse`and deliver to'lender said notes;,'acccpt iicia, bills of exchange, receivables and other
instruments and evidences of indebtedness so negotiated,cndomea,l oold,"or.Iseountcd,and ta•'Yuarsnteo the payment of the same to lender,
(6) to renew and/or extend, in whole or in part, any promissory rotes„guarai►le s;'agttieirunts;'other evidences of indebtedness and other
obligations of OCCHC which are in these resolutions referred to', andito�ezecuw and'delrver_to escrow such renewals and/or extensions
accordingly;and(7)to perform all acts and execute and deliver ali.instnutttenta iWwnitingswhich;lender may deem necessary to carry out the
purpose of these resolutions;
L MLVED FURTHER: That a certified copy of these'resoltitioiia,certified by the Secretary of OCCHC be delivered to lender;
- h,
and that these resolutions shall continue in full force and effect until writtent aotice 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 ii rvviae denigrated by lender,and until all indebtedness and obligations which
may have been incurred as aforesaid shall have been frilly paid,satisfied,and discharged,and no such revocation,nor any receipt of any notice
thereof, shall in any manner whatever affect any indebtedness orjobligation which (prior to actual receipt of the notice and resolution of
revocation by lender in the manner aforesaid)may have been incurred isgafotesaid)may have been incurred as aforesaid;
IN WITNESS WHEREOF,I have hereunto set my hand'.and affixed the corporate seal of OCCHC,
this day of
corporate scat '
" qA. on,Se ry of the Board+!' 's t '; ;' CV
sty Housing Corporation
DESIGNEE: Allen P. Baldwin, Exec Director t Joseph;Smgh;
d
€
1833 East 17th Street, Suite 207, Santa Ana, California 92701 (714) 558-8161
1 .
i
Attachment No. 2
PROMISSORY NOTE SECURED BY DEED OF TRUST
(17361 Koledo Lane)
$290,500
DATE: 1G
FOR VALUE RECEIVED, Orange County Community Housing Corporation, a
California nonprofit public benefit corporation, whose address is 1833 E. I7th Street, Santa Ana,
California 92701 ("Borrower") hereby promises to pay to the order of the City of Huntington
Beach, a municipal corporation, whose address is 2000 Main Street, Huntington Beach,
California, 92648 ("Lender"), a principal amount equal to Two Hundred Ninety Thousand Five
Hundred Dollars ($290,500), or so much thereof as may be advanced by Lender to Borrower (the
"Loan") pursuant to a loan agreement of even date herewith between Borrower and Lender (the
"Loan Agreement"). Borrower also promises to pay to the order of Lender accrued simple
interest on the principal balance at the rate of six percent (6%) per annum.
1. BORROWER'S OBLIGATION. This Note evidences the obligation of Borrower
to Lender for the repayment of funds loaned to Borrower by Lender to finance the expenses
related to the development of the housing project in the City of Huntington Beach described in the
Loan Agreement.
2. SECURITY. This Note is secured by a deed of trust executed by the Borrower in
favor of the Lender dated the same date as this Note, (the "Deed of Trust").
3. REPAYMENT OF NOTE. The principal balance under this Note and all interest
accrued thereon shall be due and payable thirty (30) years after execution of this Note, or in the
event of an Event of Default by Borrower which has not been cured as provided for in the Loan
Documents or Regulating Agreement. The Lender may choose, in its sole discretion, whether or
not to renegotiate this note in the thirtieth (30th) year to extend the affordability period and the
term of this note.
There may be periodic payments under this Note. Commencing on the fifth (5th)
anniversary of the Close of Escrow and continuing until the thirtieth (30th) anniversary of the
Close of Escrow, the Borrower shall make minimum annual payments (the "Annual Payment") in
the amount of One Thousand Two Hundred Dollars ($1,200.00). Each Annual Payment shall be
due annually on each anniversary of the Close of Escrow beginning on the fifth (5th anniversary of
the Close of Escrow and continuing and including the thirtieth (30th) anniversary of the Close of
Escrow; provided, however, that remaining outstanding principal of the Loan shall be repaid on
the thirtieth (30th) anniversary of the Close of Escrow. If the balance of the Residual Receipts
account is insufficient to fully fund an Annual Payment, Borrower agrees to make-up any shortfall
Attachment No. 2
Page 1 of 4
41s�G:Agree:Koledo:AttachZ 1/18!96
RLS 95-519
that may exist in the account so that the Annual Payment can be made. Borrower may request
that the Lender.reduce, suspend or forgive an Annual Payment, and the Borrower may present
evidence to the Lender of its inablility to make an Annual Payment; however, Lender reserves the
exclusive right in its sole discretion to reduce, suspend or forgive an Annual Payment.
All principal and interest on the Loan shall be due in full upon the earliest to occur
of:
(1) the occurrence of default under this Note, the HOME Loan Agreement,
the Deed of Trust, or the Agreement Containing Covenants, which event of
default is not cured within the applicable cure period; or
(2) the thirtieth(30th) anniversary of Close of Escrow.
4. PLACE AND MANNER OF PAYMENT. All amounts due and payable under
this Note are payable at the office of Lender as set forth above, or at such other place as Lender
may designate to Borrower in writing from time to time, in any coin or currency of the United
States which on the respective dates of payment thereof shall be legal tender for the payment of
public and private debts.
5. WAIVERS. Presentment, notice of dishonor, and protest are waived by all
makers, sureties, guarantors, and endorsers of this Note.
6. DEFAULT AND ACCELERATION. All covenants, conditions and agreements
contained in the Deed of Trust, Regulatory Agreement and the Loan Agreement are hereby made
a part of this Note. Borrower agrees that the unpaid balance of the then principal amount of this
Note, together with all accrued interest thereon and charges owing, shall, at the option of Lender,
become immediately due and payable upon any Event of Default as defined in the Loan
Agreement which has not been cured pursuant to that agreement, including without limitation the
failure of Borrower to make any payment when due. Upon any Event of Default, Lender may
exercise any other right or remedy'permitted under the Loan Documents.
7. NONRECOURSE. This Loan is a nonrecourse obligation of Borrower. The sole
recourse of Lender for repayment of the principal and interest under this Note shall be the
exercise of Lender's rights against the Property.
8. CONSENTS AND APPROVALS. Any consent or approval of Lender required
under this Note shall not be unreasonably withheld.
9. NOTICES. Except as may be otherwise specifically provided herein, any
approval, notice, direction, consent request or other action by Lender shall be in writing and may
Attachment No. 2
Page 2 of 4
4's:G:Agree:Koledo:Attach2,1.18;96
RLS 95-519
__ y
• A
i
be communicated to Borrower at the principal office of Borrower set forth above, or at such
other place or places as Borrower shall designate in writing, from time to time, for the receipt of
communications from Lender.
10. BINDING UPON SUCCESSORS. All provisions of this Note shall be binding
upon and inure to the benefit of the heirs, administrators, executors, successors-in-interest,
transferees, and assigns of Borrower and Lender; provided, however, that this section does not
waive the prohibition in the Loan Agreement on assignment of the Loan by Borrower without
Lender's consent.
11. ASSIGNMENT AND ASSUMPTION. Borrower shall not assign any of its
interests under this Note to any other party, except as specifically permitted under the terms of the
Loan Documents, without the prior written consent of Lender. Any unauthorized assignment
shall be void.
12. DEFINITIONS. Capitalized terms not defined in this Note shall have the same
meaning as defined terms in the Loan Agreement.
13. GOVERNING LAW. This Note shall be interpreted under and governed by the
laws of the State of California, except for those provisions relating to choice of law and those
provisions preempted by federal law.
14. LOAN AGREEMENT CONTROLS. In the event that any provisions of this Note
and the Loan Agreement conflict, the terms of the Loan Agreement shall control.
15. SEVERABILITY. Every provision of this Note is intended to be severable. If any
provision of this Note shall be held invalid, illegal, or unenforceable by a court of competent
jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not in any
way be affected or impaired.
16. ATTORNEYS' FEES AND COSTS. In the event of any legal action is
commenced to interpret or to enforce the terms of this Note, each party shall bear its own costs
and attorneys' fees. The prevailing party in any such action shall not be entitled to recover any
attorneys' fees and costs incurred in such action.
17. WAIVER. Any waiver by Lender of any obligation in this Note must be in
writing. No waiver shall be implied from any failure of Borrower to take, or any delay or failure
by Lender to take action on any breach or default by Borrower or to pursue any remedy allowed
under this Note or applicable law. Any extension of time granted to Borrower to perform any
obligation under this Note shall not operate as a waiver or release from any of its obligations
under the Note. Borrower hereby waives all defenses and pleas on the grounds of any extensions
of the time for repayment of any amounts due under this Note, unless Lender has granted such
extensions in writing. Consent by Lender to any act or omission by Borrower shall not be
Attachment No. 2
Page 3 of 4
4 s.G:Agree:Koledo:Anach2'.F 18/96
RL5 95-519
construed to be a consent to any other act or omission or to waive the requirement for Lender's
written consent to future waivers.
18. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to
this Note must be in writing, and shall be made only if executed by both Borrower and Lender.
Executed at Huntington Beach, California, on / -a , 1996.
BORROWER: Orange County Community Housing
Corporation, a California nonprofit
benefit corporation
By:
Its:
By:
Its:
Attachment No. 2
Page 4 of 4
4's..G:Agree:Koledo:Attach2',1:18 96
KI_,S 95-519
R
Attachment No. 2A
PROMISSORY NOTE SECURED BY DEED OF TRUST
(17371 Koledo Lane)
$290,500
DATE: 1 ng --7{p
FOR VALUE RECEIVED, Orange County Community Housing Corporation, a
California nonprofit public benefit corporation, whose address is 1833 E. 17th Street, Santa Ana,
California 92701 ("Borrower") hereby promises to pay to the order of the City of Huntington
Beach, a municipal corporation, whose address is 2000 Main Street, Huntington Beach,
California, 92648 ("Lender"), a principal amount equal to Two Hundred Ninety Thousand Five
Hundred Dollars ($290,500), or so much thereof as may be advanced by Lender to Borrower (the
"Loan") pursuant to a loan agreement of even date herewith between Borrower and Lender (the
"Loan Agreement"), Borrower also promises to pay to the order of Lender accrued simple
interest on the principal balance at the rate of six percent (6%) per annum.
I. BORROWER'S OBLIGATION. This Note evidences the obligation of Borrower
to Lender for the repayment of funds loaned to Borrower by Lender to finance the expenses
related to the development of the housing project in the City of Huntington Beach described in the
Loan Agreement.
2. SECURITY. This Note is secured by a deed of trust executed by the Borrower in
favor of the Lender dated the same date as this Note, (the "Deed of Trust").
3. REPAYMENT OF NOTE. The principal balance under this Note and all interest
accrued thereon shall be due and payable thirty (30) years after execution of this Note, or in the t
event of an Event of Default by Borrower which has not been cured as provided for in the Loan
Documents or Regulating Agreement. The Lender may choose, in its sole discretion, whether or
not to renegotiate this note in the thirtieth (30th)year to extend the affordability period and the
term of this note.
There may be periodic payments under this Note. Commencing on the fifth (5th)
anniversary of the Close of Escrow and continuing until the thirtieth (30th) anniversary of the
Close of Escrow, the Borrower shall make minimum annual payments (the"Annual Payment") in
the amount of One Thousand Two Hundred Dollars ($1,200.00). Each Annual Payment shall be
due annually on each anniversary of the Close of Escrow beginning on the fifth (5th anniversary of
the Close of Escrow and continuing and including the thirtieth (30th) anniversary of the Close of
Escrow; provided, however, that remaining outstanding principal of the Loan shall be repaid on
the thirtieth (30th) anniversary of the Close of Escrow. If the balance of the Residual Receipts
account is insufficient to fully fund an Annual Payment, Borrower agrees to make-up any shortfall
Attachment No. 2A
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RL5 95-519
that may exist in the account so that the Annual Payment can be made. Borrower may request
that the Lender reduce, suspend or forgive an Annual Payment, and the Borrower may present
evidence to the Lender of its inablility to make an Annual Payment; however, Lender reserves the
exclusive right in its sole discretion to reduce, suspend or forgive an Annual Payment.
All principal and interest on the Loan shall be due in full upon the earliest to occur
of:
(1) the occurrence of a default under this Note, the HOME Loan Agreement,
the Deed of Trust, or the Agreement Containing Covenants, which event of
default is not cured within the applicable cure period; or
(2) the thirtieth (30th) anniversary of Close of Escrow.
4. PLACE AND MANNER OF PAYMENT. All amounts due and payable under
this Note are payable at the office of Lender as set forth above, or at such other place as Lender
may designate to Borrower in writing from time to time, in any coin or currency of the United
States which on the respective dates of payment thereof shall be legal tender for the payment of
public and private debts.
5. WAIVERS. Presentment, notice of dishonor, and protest are waived by all
makers, sureties, guarantors, and endorsers of this Note.
6. DEFAULT AND ACCELERATION. All covenants, conditions and agreements
contained in the Deed of Trust, Regulatory Agreement and the Loan Agreement are hereby made
a part of this Note. Borrower agrees that the unpaid balance of the then principal amount of this
Note, together with all accrued interest thereon and charges owing, shall, at the option of Lender,
become immediately due and payable upon any Event of Default as defined in the Loan
Agreement which has not been cured pursuant to that agreement, including without limitation the
failure of Borrower to make any payment when due. Upon any Event of Default, Lender may
exercise any other right or remedy permitted under the Loan Documents.
7. NONRECOURSE. This Loan is a nonrecourse obligation of Borrower. The sole
recourse of Lender for repayment of the principal and interest under this Note shall be the
exercise of Lender's rights against the Property.
8. CONSENTS AND APPROVALS. Any consent or approval of Lender required
under this Note shall not be unreasonably withheld.
9. NOTICES. Except as may be otherwise specifically provided herein, any
approval, notice, direction, consent request or other action by Lender shall be in writing and may
Attachment No. 2A
Page 2 of 4
419%G:Agree:Koledo:Attach9 AM/ISi96
RLs 95-519
v
be communicated to Borrower at the principal office of Borrower set forth above, or at such
other place or places as Borrower shall designate in writing, from time to time, for the receipt of
communications from Lender.
10. BINDING UPON SUCCESSORS. All provisions of this Note shall be binding
upon and inure to the benefit of the heirs, administrators, executors, successors-in-interest,
transferees, and assigns of Borrower and Lender; provided, however, that this section does not
waive the prohibition in the Loan Agreement on assignment of the Loan by Borrower without
Lender's consent.
11. ASSIGNMENT AND ASSUMPTION. Borrower shall not assign any of its
interests under this Note to any other party, except as specifically permitted under the terms of the
Loan Documents, without the prior written consent of Lender. Any unauthorized assignment
shall be void.
12. DEFINITIONS. Capitalized terms not defined in this Note shall have the same
meaning as defined terms in the Loan Agreement.
13. GOVERNING LAW. This Note shall be interpreted under and governed by the
laws of the State of California, except for those provisions relating to choice of law and those
provisions preempted by federal law.
14. LOAN' AGREEMENT CONTROLS. In the event that any provisions of this Note
and the Loan Agreement conflict, the terms of the Loan Agreement shall control.
15. SEVERABILITY. Every provision of this Note is intended to be severable. If any
provision of this Note shall be held invalid, illegal, or unenforceable by a court of competent
jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not in any
way be affected or impaired.
16. ATTORNEYS' FEES AND COSTS. In the event of any legal action is
commenced to interpret or to enforce the terms of this Note, each party shall bear its own
attorneys' fees and costs. The prevailing party in any such action shall not be entitled to recover
any attorneys' fees and costs incurred in such action.
17. WAIVER. Any waiver by Lender of any obligation in this Note must be in
writing. No waiver shall be implied from any failure of Borrower to take, or any delay or failure
by Lender to take action on any breach or default by Borrower or to pursue any remedy allowed
under this Note or applicable law. Any extension of time granted to Borrower to perform any
obligation under this Note shall not operate as a waiver or release from any of its obligations
under the Note. Borrower hereby waives all defenses and pleas on the grounds of any extensions
of the time for repayment of any amounts due under this Note, unless Lender has granted such
extensions in writing. Consent by Lender to any act or omission by Borrower shall not be
Attachment No. 2A
Page 3 of 4
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RLS 95-519
+ r
construed to be a consent to any other act or omission or to waive the requirement for Lender's
written consent to future waivers.
18. - AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to
this Note must be in writing, and shall be made only if executed by both Borrower and Lender.
Executed at Huntington Beach, California, on , 1996.
BORROWER: Orange County Community Housing
Corporation, a California nonprofit
benefit corporation
By:
Its: SC�Cs. `u,� lr2 c�
By:
Its:
Attachment No. 2A
Page 4 of 4
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RLs 95.519
,tA
Attachment No. 3
NO FEE DOCUMENT
Whenrecorded, mail to: Recoraeu in the county of orange, California
+r lGary L. Granville, clerk/Recorder
City of Huntington Beach I�fll�l�ll��ll ��� ;Ilil��l0���� i1 !l�;11''j; NO Fee
J 2000 Main Street 19960164948 MOOR 04/04/96
Huntington Beach, CA 92648
007 247299 20 17 FAT
Oil I Attention: Office of City Clerk 0.00R0.0036 04 i s 21 .00 42.00 0.00 0.00 o Oe
N
DEED OF TRUST, ASSIGNMENT OF RENTS, 4, P
AND SECURITY AGREEMENT
(Securing loan of$290,500) ��
THIS DEED OF TRUST, ASSIGNMENT OF RENTS, AND SECURITY
AGREEMENT ("Deed of Trust") is made this a,,d day of .7anwzr )y . , 1996, by
Orange County Community Housing Corporation, a California nonprofit public benefit
corporation ("Trustor"), to *** as trustee ("Trustee"), for the benefit of
the City of Huntington Beach, a municipal corporation ("Beneficiary").
***FIRST AMERICAN TITLE INSURANCE COMPANY, A CALIFORNIA CORPORATION
GRANT IN TRUST
1. GRANT. Trustor, in consideration of the indebtedness referred to below, hereby
irrevocably grants and conveys to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit
and security of Beneficiary, all of Trustor's interest in the property located in the City of
Huntington Beach, County of Orange, State of California, and described in the attached Exhibit
A, incorporated herein by this reference (the"Property"),
TOGETHER WITH all interest, estates or other claims, both in law and in equity which
Trustor now has or may hereafter acquire in the Property; all buildings, structures, fixtures,
improvements, signs, and landscaping now or hereafter erected or located on the Property,
including all equipment and machinery used for supplying or distributing heating, cooling,
electricity, gas, water, air, and light, all kitchen and laundry appliances such as washers, dryers,
refrigerators, garbage disposals, ovens, ranges, dishwashers, all plumbing and bathroom fixtures,
all security and access control equipment, fire prevention and extinguishment equipment,
elevators, floor coverings, window coverings, paneling, cabinets, (provided, however, that
Trustor shall have the right to remove, if necessary, such fixtures, furnishings, and equipment for
Attachment No. 3
Page 1 of 12
4-s`G:Agrcc:holcdo:Attach3''12.4 95
RLS 95-5 19
the purpose of replacement with similar items of the same quality performing the same functions,
which replacements shall themselves become part of this grant); all building material and
equipment either now or hereafter delivered to the Property and intended to be installed therein or
any such material and equipment purchased with Loan proceeds whether or not located on the
Property; all reserves, accounts, deferred payments, and refunds relating to development on the
Property; all rents and income generated by the Property or improvements thereon (subject
however to the assignment of rents to Lender contained herein); all leases, subleases and rental
agreements covering the Property or any portion thereof now existing or hereafter entered into,
and all interests of Trustor in security deposits, advance rentals, accounts, or payments of similar
nature with respect to such leases, subleases, or rental agreements; all easements and rights-of-
way appurtenant to the Property, including parking and recreational easements, and all interests of
Trustor in any land lying within the right-of-way of any street, sidewalks, and areas of land
adjacent to or used in connection with the Property; all development rights and credits, air rights,
water rights, and oil, gas or mineral rights with respect to the Property; all claims or demands with
respect to insurance proceeds, and all awards made for a taking by eminent domain; all interests
and rights in any private or government grants, subsidies, loans, or other financing with respect to
development on the Property; all interests in personal property used in and about the Property
(except furniture and other personal property of occupants of dwelling units on the Property); all
intangible property and rights relating to the Property or operations on the Property, including
trade names, goodwill, trademarks, and service marks; all government permits, approvals, and
map rights related to construction on the Property; all architectural, structural, and mechanical
plans, specifications, designs, studies, and data with respect to construction of improvements on
the Property; all environmental tests, studies and reports with respect to the Property; all current
and future claims and rights of action of Trustor against prior owners and operators of the
Property, neighboring property owners and operators, tenants and former tenants, consultants,
advisors, and other third parties with respect to environmental or Hazardous Materials
contamination and cleanup of the Property under any federal, state, or local ordinances, statutes,
regulations, or administrative decisions or common law.
All of the foregoing, together with the Property, is herein referred to as the "Security."
OBLIGATIONS SECURED
2. Trustor makes this grant for the purpose of securing the following obligations:
A. Repayment of the indebtedness of Trustor to Beneficiary in the principal sum of
Two Hundred Ninety Thousand Five Hundred Dollars ($290,500) with interest
thereon (the "Loan") evidenced by a promissory note executed by Trustor (the
"Note"), on file at the offices of Beneficiary, which is hereby incorporated into this
Deed of Trust by this reference) or as much as has been disbursed to Trustor
therewith, along with any extensions, amendments, modifications, or renewals to
the Note; and
Attachment No. 3
Page 2 of 12
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RLS 95-519
B. Payment of any sums advanced by Beneficiary to protect the security and priority
of this Deed of Trust; and
C. Payment of any sums advanced by Beneficiary following a breach of Trustor's
obligation to advance said sums and the expiration of any applicable cure period,
with interest thereon as provided herein, and
D. Performance of every obligation, covenant or agreement of Trustor contained in
this Deed of Trust, the Note, the Loan Agreement executed between Trustor and
Beneficiary, on file at the offices of Beneficiary, which is hereby incorporated into
this Deed of Trust by this reference), and the Regulatory Agreement executed
between Trustor and Beneficiary of dated the same day as this Deed of Trust
("Regulatory Agreement"), including all modifications, extensions and renewals of
these obligations; and
E. Performance of any other obligation or repayment of any other indebtedness of
Trustor to Beneficiary, where such evidence of obligation or indebtedness
specifically recites that it is secured by this Deed of Trust.
ABSOLUTE ASSIGNMENT OF RENTS AND RIGHT TO POSSESSION
3. ASSIGNMENT. As additional security, Trustor hereby assigns to Beneficiary: (a)
all of the rents, revenues, profits, and income from the Security, any deposits now or hereafter in
Trustor's possession which have been collected with respect to the Security, and any reserve or
capital funds now or hereafter held by Trustor with respect to construction or operation of the
Security (collectively, the "Rents"); and (b) the right to enter, take possession of, and manage the
Security; provided however that Trustor shall have, before an Event of Default, the exclusive
right to possess the Security and to collect Rents and use them in accordance with the Loan
Documents. This assignment is intended to be an absolute and present transfer of Trustor's
interest in existing and future Rents, effective as of the date of this Deed of Trust.
4. ENFORCEMENT. Upon the happening of an Event of Default and written notice
to Trustor, Beneficiary may, in addition to other rights and remedies permitted by the Loan
Agreement, this Deed of Trust, or applicable law, (a) enter upon, take possession of, and manage
the Security, either in person as a mortgagee-in-possession, by agent, or by a receiver appointed
by a court, and do any acts which it deems necessary or desirable to preserve the value,
marketability or rentability of the Security, (b) collect all Rents, including those past due and
unpaid, and apply the same to pay for the costs and expenses of operation of the Security,
including attorneys' fees, and pay off any indebtedness secured by this Deed of Trust, all in such
order as Beneficiary may determine, and/or (c) enter upon and take possession of the Security.
Beneficiary may make, cancel, enforce, and modify leases and rental agreements, obtain and evict
Attachment No. 3
Page 3 of 12
4's'G:Agree:Koledo:Attach3%.12:4r 95
R!S 95-519
tenants, set and modify rent terms, sue for rents due, enter into, modify, or terminate any
contracts or agreements, or take any legal action, as it deems necessary with respect to the Rents
or to development or operation of the Security.
5. APPOINTMENT OF A RECEIVER. In any action to enforce this assignment,
Beneficiary may apply for the appointment of a receiver to take possession of the Security and
take whatever measures are necessary to preserve and manage the Security for the benefit of
Beneficiary and the public interest. Trustor hereby consents to the appointment of a receiver.
The receiver shall have all of the authority over the Security that Beneficiary would have if
Beneficiary took possession of the Security under this assignment as a mortgagee-in-possession,
including the right to collect and apply Rents and the right to complete construction of
improvements.
d. NO WAIVER OF POWER OF SALE. The entering upon and taking possession
of the Security and the collection of Rents shall not cure or waive any default or notice of default
hereunder or invalidate any act done in response to such default or notice of default and,
notwithstanding the continuance in possession of the Security or the collection and application of
Rents, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust or by
law upon occurrence of any Event of Default, including the right to exercise the power of sale.
COMMERCIAL CODE SECURITY AGREEMENT
7. GRANT. This Deed of Trust is intended to be a security agreement and financing
statement pursuant to the California Commercial Code for any of the items specified above as part
of the Security which under applicable law may be subject to a security interest pursuant to the
Commercial Code, and Trustor hereby grants Beneficiary a security interest in said items.
Beneficiary may file a copy of this Deed of Trust in the real estate records or other appropriate
index as a financing statement for any of the items specified as part of the Security. Trustor shall
execute and deliver to Beneficiary at Beneficiary's request any financing statements, as well as
extensions, renewals, and amendments thereof, and copies of this instrument in such form as
Beneficiary may require to perfect a security interest with respect to said items.
8. REMEDIES. Upon Trustor's breach of any obligation or agreement in the Loan
Documents, Beneficiary shall have the remedies of a secured party under the Commercial Code
and at Beneficiary's option may also invoke the remedies provided for elsewhere in this Deed of
Trust with respect to said items. Beneficiary may proceed against the items of real property and
personal property specified above separately or together and in any order whatsoever.
RIGHTS AND OBLIGATIONS OF TRUSTOR
9. PERFORMANCE OF SECURED OBLIGATION. Trustor shall promptly
perform each obligation secured by this Deed of Trust.
Attachment No. 3
Page 4 of 12
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RLS 95-519
10. PAYME\TT OF PRINCIPAL AND INTEREST. Trustor shall promptly pay when
due the principal and interest on the indebtedness evidenced by the Note.
11. MAINTENANCE OF THE SECURITY. Trustor shall, at the Trustor's own
expense, maintain and preserve the Security or cause the Security to be maintained and preserved
in good condition, in good repair, and in a decent, safe, sanitary, habitable and tenantable
condition. Trustor shall not cause or permit any violations of any laws, ordinances, regulations,
covenants, conditions, restrictions, or equitable servitudes as they pertain to improvements,
alterations, maintenance or demolition on the Security. Trustor shall not commit or permit waste
on or to the Security. Trustor shall not abandon the Security. Beneficiary shall have no
responsibility over maintenance of the Security. In the event Trustor fails to maintain the Security
in accordance with the standards in this Deed of Trust, the Loan Agreement, or the Regulatory
Agreement, Beneficiary, after at least thirty (30) calendar days prior notice to Trustor, may, but
shall be under no obligation to, make such repairs or replacements as are necessary and provide
for payment thereof. Any amount so advanced by Beneficiary, together with interest thereon
from the date of such advance at the same rate of indebtedness as specified in the Note (unless
payment of such an interest rate would be contrary to applicable law, in which event such sums
shall bear interest at the highest rate then allowed by applicable law), shall become an additional
obligation of Trustor to Beneficiary and shall be secured by this Deed of Trust.
12. INSPECTION OF THE SECURITY. Trustor shall permit Beneficiary to enter
and inspect the Security for compliance with these obligations upon 24 hours advance written
notice of such visit by Beneficiary to Trustor or Trustor's management agent.
13. LIENS, ENCUMBRANCES, AND CHARGES. Trustor shall discharge any lien
or encumbrance not approved by Trustor in writing that may attain priority over this Deed of
Trust, a5 provided for in the Loan Agreement.
14. DEFENSE AND NOTICE OF CLAIMS AND ACTIONS. Trustor shall appear in
and defend, at its own expense, any action or proceeding purporting to affect the Security and/or
the rights of Beneficiary. Trustor shall give Beneficiary and Trustee prompt notice in writing of
the assertion of any claim, of the filing; of any action or proceeding and of any condemnation offer
or action with respect to the Security.
15. SUITS TO PROTECT THE SECURITY. Beneficiary shall have power to
institute and maintain such suits and proceedings as it may deem expedient (a) to prevent any
impairment of the Security or the rights of Beneficiary, (b) to preserve or protect its interest in the
Security and in the Rents, and (c) to restrain the enforcement of or compliance with any
governmental legislation, regulation, or order, if the enforcement of or compliance with such
legislation, regulation, or order would impair the Security or be prejudicial to the interest of
Beneficiary.
Attachment No. 3
Page 5 of 12
4's1.G:Agree:Ko1edo:Attach3112/4.95
RLS 95-519
16. DAMAGE TO SECURITY. Trustor shall give Beneficiary and Trustee prompt
notice in writing of any damage to the Security. If any building or improvements erected on the
Property is damaged or destroyed by an insurable cause, Trustor shall use the insurance proceeds
to repair or restore said buildings and improvements consistent with the original plans and
specifications. Such work or repair shall be commenced within 120 days after the damage or loss
occurs and shall be complete within one year thereafter. All insurance proceeds collected for such
damage or destruction shall be applied to the cost of such repairs or restoration.
17. TITLE. Trustor warrants that Trustor lawfully has legal title to the Security
without any limitation on the right to encumber.
18. GRAFTING OF EASEMENTS. Trustor may not grant easements, licenses,
rights-of-way or other rights or privileges in the nature of easements with respect to the Security
except those required or desirable for installation and maintenance of public utilities including
water, gas, electricity, sewer, cable television, telephone, or those required by law.
19. TAXES AND LEVIES. Trustor shall pay prior to delinquency, all taxes, fees,
assessments, charges and levies imposed by any public authority or utility company which are or
may become a lien affecting the Security. However, Trustor shall not be required to pay and
discharge any such tax, assessment, charge or levy so long as (a) the legality thereof shall be
promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor
maintains reserves adequate to pay any contested liabilities. In the event that Trustor fails to pay
any of the foregoing items, Beneficiary may, but shall be under no obligation to, pay the same,
after Beneficiary has notified Trustor of such failure to pay and Trustor fails to fully pay such
items within thirty (30) business days after receipt of such notice. Any amount so advanced by
Beneficiary, together with interest thereon from the date of such advance at the same rate of
indebtedness as specified in the Note (unless payment of such an interest rate would be contrary
to applicable law, in which event such sums shall bear interest at the highest rate then allowed by
applicable law), shall become an additional obligation of Trustor to Beneficiary and shall be
secured by this Deed of Trust.
20. INSURANCE. Trustor shall provide such insurance as required under the Loan
Agreement. In the event Trustor fails to maintain the full insurance coverage required by this
Deed of Trust, Beneficiary, after at least seven business days prior notice to Trustor, may, but
shall be under no obligation to, take out the required policies of insurance and pay the premiums
on such policies. Any amount so advanced by Beneficiary, together with interest thereon from the
date of such advance at the same rate of indebtedness as specified in the Note (unless payment of
such an interest rate would be contrary to applicable law, in which event such sums shall bear
interest at the highest rate then allowed by applicable law), shall become an additional obligation
of Trustor to Beneficiary and shall be secured by this Deed of Trust.
Attachment No. 3
Page 6 of 12
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RLS 95.519
21. CONDEMNATION. All judgments, awards of damages, settlements and
compensation made in connection with or in lieu of taking all or any part of or interest in the
Security under assertion of the power of eminent domain ("Funds") are hereby assigned to and
shall be paid to Beneficiary. Beneficiary is authorized (but not required) to collect and receive
any Funds and is authorized to apply them in whole or in part upon any indebtedness or
obligation secured hereby, in such order and manner as Beneficiary shall determine at its sole
option. All or any part of the amounts so collected and recovered by Beneficiary may be released
to Trustor upon such conditions as Beneficiary may impose for its disposition. Application of all
or any part of the Funds collected and received by Beneficiary or the release thereof shall not cure
or waive any default under this Deed of Trust.
22. ACCELERATION ON TRANSFER OF SECURITY; ASSUMPTION. In the
event that Trustor, without the prior written consent of the Beneficiary, sells, agrees to sell,
transfers, or conveys its interest in the Security or any part thereof or interest therein, Beneficiary
may at its option declare all sums secured by this Deed of Trust to be immediately due and
payable. This option shall not apply in case of:
A. the grant of a tenant or leasehold to qualifying households who will occupy Project
units as provided for under the Loan Documents and the Regulatory Agreement;
or
B. sale or transfer of fixtures or personal property pursuant to the grant provisions in
this Deed of Trust; or
Consent to one sale or transfer shall not be deemed to be a waiver of the right to require
such consent to future or successive transactions.
23. RECONVEYANCE BY TRUSTEE. This trust is intended to continue for the
entire term of the Loan. Upon written request of Beneficiary stating that all sums secured by this
Deed of Trust have been paid or forgiven and upon surrender of this Deed of Trust to Trustee for
cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees, Trustee
shall reconvey the Security to Trustor, or to the person or persons legally entitled thereto.
DEFAULT AND REMEDIES
24. EVENTS OF DEFAULT. Any of the events listed in the Loan Agreement as an
Event of Default shall also constitute an Event of Default under this Deed of Trust, including, but
not limited to, (1) Truster's failure to pay when due any sums payable under this Deed of Trust,
the Note, or the Loan Agreement, or(2) Trustor's failure to observe or to perform any of its
covenants, agreements or obligations under this Deed of Trust, the Note, the Loan Agreement,
and the Regulatory Agreement.
Attachment No. 3
Page 7 of 12
4-&%G:Agee:Ko1edo:AttachT%1 2.A19 5
RLS 95-519
25. ACCELERATION OF MATURITY. Upon the happening of an Event of Default
which has not been cured within the times and in the manner provided in the Loan Agreement,
Beneficiary may declare all sums advanced to Trustor under the Note and this Deed of Trust
immediately due and payable.
26. BENEFICIARY'S REMEDIES. Upon the happening of an Event of Default
which has not been cured within the times and in the manner provided in the Loan Agreement,
Beneficiary may, in addition to other rights and remedies permitted by the Loan Agreement, the
Note, or applicable law, proceed with any or all of the following remedies:
A. Enforce the assignment of rents and right to possession as provided for in this
Deed of Trust, and/or seek appointment of a receiver to take over possession of
the Security and collect Rents;
B. Commence an action to foreclose this Deed of Trust pursuant to California Code
of Civil Procedure Sections 725a, et seq., and/or seek appointment of a receiver
from a court of-competent jurisdiction with the authority to protect Beneficiary's
interests in the Security, including the authority to complete construction of
improvements;
C. Deliver to Trustee a written declaration of Default and demand for sale, and a
written Notice of Default and election to cause Trustor's interest in the Security to
be sold, which notice Trustee or Beneficiary shall duly file for record in the Official
Records of Orange County, and exercise its power of sale as provided for below;
or
D. Pursue any other rights and remedies allow at law or in equity.
27. FORECLOSURE BY POWER OF SALE. Should Beneficiary elect to foreclose
by exercise of the power of sale contained in this Deed of Trust, Beneficiary shall notify Trustee
and shall deposit with Trustee this Deed of Trust (the deposit of which shall be deemed to
constitute evidence that the unpaid sums disbursed under the Note are immediately due and
payable), and such receipts and evidence of any expenditures made that are additionally secured
hereby as Trustee may require. .
Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded,
published and delivered to Trustor such Notice of Default and Election to Sell as then required by
law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time
as may then be required by law and after recordation of such Notice of Default and after Notice of
Sale having been given as required by law, sell the Security, at the time and place of sale fixed by
it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall
deem expedient and in such order as it may determine unless specified otherwise by Trustor, at
Attachment No. 3
Page 8 of 12
4''a'G:gee:Koledo:Aftach3':12 4 95
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public auction to the highest bidder for cash in lawful money of the United States payable at the
time of sale. Trustee shall deliver to the purchaser its deed or deeds conveying the property so
sold, but without any covenant or warranty, express or implied. The recitals in such deed of any
matters of facts shall be conclusive proof of the truthfulness thereof. Any person, including,
without limitation, Trustor, Trustee, or Beneficiary, may purchase at the sale.
Trustee may postpone sale of all or any portion of the property by public announcement at
such time and place of sale, and from time to time thereafter, and without further notice make
such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice
of Sale.
After deducting all reasonable costs, fees and expenses of Trustee, including costs of
evidence of title in connection with such sale, Trustee shall apply the proceeds of sale as follows:
(i) first, to the payment of all sums then secured by this Deed of Trust, in such order and amounts
as Beneficiary in its sole discretion determines, and (ii) the remainder, if any, to the person or
persons legally entitled thereto.
28. REMEDIES CUMULATIVE. No right, power or remedy conferred upon or
reserved to Beneficiary by this Deed of Trust is intended to be exclusive of any other rights,
powers or remedies, but each such right, power and remedy shall be cumulative and concurrent
and shall be in addition to any other right, power and remedy given hereunder or now or hereafter
existing at law or in equity.
GENERAL PROVISIONS
29. GOVERNTVG LAW. This Deed of Trust shall be interpreted under and governed
by the laws of the State of California, except for those provisions relating to choice of law and
those provisions preempted by federal law.
30. ATTORNEYS' FEES AND COSTS. In the event of any Event of Default, or any
legal or administrative action is commenced to interpret or to enforce the terms of this Deed of
Trust, each party shall bear its own attorneys' fees and costs. The prevailing party in such action
shall not be entitled to recover any attorneys' fees and costs in such action.
31. CONSENTS AND APPROVALS. Any consent or approval of the City required
under this Regulatory Agreement shall not be unreasonably withheld. Any approval must be in
writing and executed by an authorized representative of the City.
32. TIME. Time is of the essence in this Deed of Trust.
Attachment No. 3
Page 9 of 12
4ls'.G:Agree:Koledo:Attach311214i95
RLS 95-519
33. NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands
and communications between Trustor and Beneficiary shall be sufficiently given and shall not be
deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt
requested, or delivered personally, to the principal offices of Trustor and Beneficiary as follows:
BENEFICIARY: City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attention: Office of City Administrator
TRUSTOR: Orange County Community Housing
I833 E. 17th Street, Suite 207
Santa Ana, CA 92701
Attention: Executive Director
34. BINDING LPON SUCCESSORS. All provisions of this Deed of Trust shall be
binding upon and inure to the benefit of the heirs, administrators, executors, successors-in-
interest, transferees, and assigns of Trustor, Trustee, and Beneficiary.
35. WAIVER. Any waiver by Beneficiary of any obligation of Trustor in this Deed of
Trust must be in writing. No waiver will be implied from any delay or failure by Beneficiary to
take action on any breach or default of Trustor or to pursue any remedy allowed under the Deed
of Trust or applicable law. Any extension of time granted to Trustor to perform any obligation
under this Deed of Trust shall not operate as a waiver or release Trustor from any of its
obligations under this Deed of Trust. Consent by Beneficiary to any act or omission by Trustor
shall not be construed to be a consent to any other or subsequent act or omission or to waive the
requirement for Beneficiary's written consent to future waivers.
36. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to
this Deed of Trust must be in writing, and shall be made only if mutually agreed upon by
Beneficiary and Trustor.
37. LOAN AGREEMENT CONTROLS. If there is any contradiction between this
instrument and the Loan Agreement, the terms of the Loan Agreement shall control.
38. DEFINITIONS. Capitalized terms not otherwise defined in'this Deed of Trust
shall have the same meaning as defined terms in the Loan Agreement.
39. PROOFS OF CLAIM. In the case of any receivership, insolvency, bankruptcy,
reorganization, arrangement, adjustment, recomposition or other proceedings affecting Trustor,
its creditors or its property, Trustee, to the extent permitted by law, shall be entitled to file such
proofs of claim and other documents as may be necessary or advisable in order to have the claims
Attachment No. 3
Page 10 of 12
4`s1G:Agree:Koledo:Attaeh3't12W95
RLS 95.519
of Beneficiary allowed in such proceedings and for any additional amount which may become due
and payable by Trustor hereunder after such date.
40. SEVERABILITY. Every provision of this Deed of Trust is intended to be
severable. If any term or provision of this Deed of Trust is declared to be illegal, invalid, or
unenforceable by a court of competent jurisdiction, the legality, validity, and enforceability of the
remaining provisions shall not be affected. If the lien of this Deed of Trust is invalid or
unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of
the Security, the unsecured or partially secured portion of the debt and all payments made on the
debt (whether voluntary or under foreclosure or other enforcement action or procedure) shall be
considered to have been first paid or applied to the payment of that portion of the debt which is
not secured or partially secured by the lien of this Deed of Trust.
41. SUBSTITUTION OF TRUSTEES. Beneficiary may from time to time appoint
another trustee to act in the place and stead of Trustee or any successor. Upon such appointment
and without conveyance, the successor trustee shall be vested with all title, powers, and duties
conferred upon Trustee. Each such appointment and substitution shall be made by a written
instrument executed by Beneficiary containing reference to this Deed of Trust and its place of
record, which when duly recorded in the Orange County Office of the Recorder shall be
conclusive proof of proper appointment of the successor trustee.
42. ACCEPTANCE BY TRUSTEE. Trustee accepts this Trust when this Deed of
Trust, duly executed and acknowledged, is made public record as provided by law. Except as
otherwise provided by law, the Trustee is not obligated to notify any party hereto of pending sale
under this Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee
shall be a party unless brought by Trustee.
Attachment No. 3
Page 1 I of 12
4-s.G:Agree:Koledo:AttAch3`:12 4 95
RI_s 95-519
IN WITNTESS WHEREOF, Trustor has executed this Deed of Trust as of the day and
year first above written.
TRUSTOR:
Orange County Community Housing
Corporation, a California nonprofit
public benefit corporation
By P�q��
ALL£ . 1; L15WIQ
Its: _EX4CQ q-t trE 5 d tLCTO.
By:
Its:
THIS DOCUMENT MUST BE NOTARIZED FOR RECORDING
BORROWER'S SIGNATURE MUST BE ACKNOWLEDGED
Attachment No. 3
Page 12 of 12
4's4G:Agree-Ku1edo:Auach311214!9 5
RLS 95-519
r
Exhibit"A" to Deed of Trust
Legal Description
17361 Koledo Lane
Lot 10 of Tract No. 4301, as per map recorded in Book 177, Pages I l and 12 of Miscellaneous
Maps, in the office of the County Recorder of said County, together with that portion of Koledo
Lane lying parallel to and adjacent to said lots, which would pass by operation of law, as vacated
by the City of Huntington Beach by Resolution No. 5353, recorded 2-15-84 as Inst.
No. 84- 065494, Official Records.
Exhibit "A" to
Attachment No. 3
Page 1 of 1
4's'.G:Agrec:Koledo:Attach3':12:'4-'95
RIS 95-519
i
2
���
0
STATE OF CALIFORNIA }ss.
COUNTY OF ORANGE }
On 3- , / $96o before me,
personally appeared „4AL11—A6 aQ
personally known to me for proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which
the person(s) acted, executed the instrument.
WITNESS my hand and a 1 seal.
Signature
KATHERINE M. SOTQ�
OOMMNAM#i0s483
Now PLtft-cal—irala
COUNTY
w 4.188E8reS
('this area for official no[arial seal)
Title of Document DEED OF TRUST, ASSIGNMENT OF RENTS, AND SECURITY
AGREEMENT
Date of Document JANUARY 2ND, 1996
•�, CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALI FORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the deed dated
SAMaur� L, /ygL from Orange County Community Housing Corporation to
the CITY OF HUNTINGTON BEACH, a municipal corporation, is hereby
accepted by the undersigned officer or agent on behalf of the City Council of the
City of Huntington Beach, pursuant to the authority conferred by Resolution
No. 3537 of the City Council of the City of Huntington Beach adopted on
August 7, 1972, and the grantee consents to the recordation thereof by its duly
authorized officer.
Dated: 6
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CIVIC
CITY
�CLERK
,
Deputy City Clerk
g:'ifa11o�u0-deedccrt
(Telephone:714-536-5227)
FIMTAMERCA TM Ely Attachment No. 3A
NO FEE DOCUMENT
When recorded, mail to:
Recorded in the County of orange, California
City of Huntington Beach `` Gar{y IIL.lI Granville,
I clerk/Recorder
2000 Main Street Il li�1�1'I lilf i1..i {III,j1iI 1111111111 1 1i 1�i,lli III III No Fee
Huntington Beach, CA 92648 19960164947 08:00am 04/04/96
c., Attention: Office of City Clerk 007 247297 20 17 FAT
D11 A36 U04 15 21 .00 42.00 0.00 0.00 0.00
0.00 0.00
DEED OF TRUST, ASSIGNMENT OF RENTS, 3�
AND SECURITY AGREEMENT T�
(Securing loan of$290,500)
THIS DEED OF TRUST, ASSIGNMENT OF RENTS, AND SECURITY
AGREEMENT ("Deed of Trust") is made this --?&o;- day of —Ta,7,4 4--�i , 1996, by
Orange County Community Housing Corporation, a California nonprofit public benefit
corporation ("Trustor"), to *** = as trustee ("Trustee"), for the benefit of
the City of Huntington Beach, a municipal corporation ("Beneficiary").
*** FIRST AMERICAN TITLE INSURANCE COMPANY, A CALIFORNIA CORPORATION
GRANT IN TRUST
1. GRANT. Trustor, in consideration of the indebtedness referred to below, hereby
irrevocably grants and conveys to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit
and security of Beneficiary, all of Trustor's interest in the property located in the City of
Huntington Beach, County of Orange, State of California, and described in the attached Exhibit
A, incorporated herein by this reference (the "Property");
TOGETHER WITH all interest, estates or other claims, both in law and in equity which
Trustor now has or may hereafter acquire in the Property; all buildings, structures, fixtures,
improvements, signs, and landscaping now or hereafter erected or located on the Property,
including all equipment and machinery used for supplying or distributing heating, cooling,
electricity, gas, water, air, and light, all kitchen and laundry appliances such as washers, dryers,
refrigerators, garbage disposals, ovens, ranges, dishwashers, all plumbing and bathroom fixtures,
all security and access control equipment, fire prevention and extinguishment equipment,
elevators, floor coverings, window coverings, paneling, cabinets, (provided, however, that
Trustor shall have the right to remove, if necessary, such fixtures, furnishings, and equipment for
Attachment No. 3A
Page 1 of 12
4's':G:agree:Kofedo:Attach3'.I
RLS 95.519
i
the purpose of replacement with similar items of the same quality performing the same functions,
which replacements shall themselves become part of this grant), all building material and
equipment either now or hereafter delivered to the Property and intended to be installed therein or
any such material and equipment purchased with Loan proceeds whether or not located on the
Property; all reserves, accounts, deferred payments, and refunds relating to development on the
Property; all rents and income generated by the Property or improvements thereon (subject
however to the assignment of rents to Lender contained her all leases, subleases and rental
agreements covering the Property or any portion thereof now existing or hereafter entered into,
and all interests of Trustor in security deposits, advance rentals, accounts, or payments of similar
nature with respect to such leases, subleases, or rental agreements; all easements and rights-of-
way appurtenant to the Property, including parking and recreational easements, and all interests of
Trustor in any land lying within the right-of-way of any street, sidewalks, and areas of land
adjacent to or used in connection with the Property; all development rights and credits, air rights,
water rights, and oil, gas or mineral rights with respect to the Property; all claims or demands with
respect to insurance proceeds, and all awards made for a taking by eminent domain; all interests
and rights in any private or government grants, subsidies, loans, or other financing with respect to
development on the Property; all interests in personal property used in and about the Property
(except furniture and other personal property of occupants of dwelling units on the Property); all
intangible property and rights relating to the Property or operations on the Property, including
trade names, goodwill, trademarks, and service marks; all government permits, approvals, and
map rights related to construction on the Property; all architectural, structural, and mechanical
plans, specifications, designs, studies, and data with respect to construction of improvements on
the Property; all environmental tests, studies and reports with respect to the Property; all current
and future claims and rights of action of Trustor against prior owners and operators of the
Property, neighboring property owners and operators, tenants and former tenants, consultants,
advisors, and other third parties with respect to environmental or Hazardous Materials
contamination and cleanup of the Property under any federal, state, or local ordinances, statutes,
regulations, or administrative decisions or common law.
All of the foregoing, together with the Property, is herein referred to as the "Security."
OBLIGATIONS SECURED
2. Trustor makes this grant for the purpose of securing the following obligations:
A. Repayment of the indebtedness of Trustor to Beneficiary in the principal sum of
Two Hundred Ninety Thousand Five Hundred Dollars ($290,500) with interest
thereon (the "Loan") evidenced by a promissory note executed by Trustor (the
"Note"), on file at the offices of Beneficiary, which is hereby incorporated into this
Deed of Trust by this reference) or as much as has been disbursed to Trustor
therewith, along with any extensions, amendments, modifications, or renewals to
the Note; and
Attachment No. 3 A
Page 2 of 12
4s%G:Agree:Koledo:Attach3'.12 4,95
RLS 95-519
B. Payment of any sums advanced by Beneficiary to protect the security and priority
of this Deed of Trust; and
C. Payment of any sums advanced by Beneficiary following a breach of Trustor's
obligation to advance said sums and the expiration of any applicable cure period,
with interest thereon as provided herein; and
D. Performance of every obligation, covenant or agreement of Trustor contained in
this Deed of Trust, the Note, the Loan Agreement executed between Trustor and
Beneficiary, on file at the offices of Beneficiary, which is hereby incorporated into
this Deed of Trust by this reference), and the Regulatory Agreement executed
between Trustor and Beneficiary of dated the same day as this Deed of Trust
("Regulatory Agreement"), including all modifications, extensions and renewals of
these obligations; and
E. Performance of any other obligation or repayment of any other indebtedness of
Trustor to Beneficiary, where such evidence of obligation or indebtedness
specifically recites that it is secured by this Deed of Trust.
ABSOLUTE ASSIGNMENT OF RENTS AND RIGHT TO POSSESSION
3. ASSIGNMENT. As additional security, Trustor hereby assigns to Beneficiary: (a)
all of the rents, revenues, profits, and income from the Security, any deposits now or hereafter in
Trustor's possession which have been collected with respect to the Security, and any reserve or
capital funds now or hereafter held by Trustor with respect to construction or operation of the
Security (collectively, the "Rents"); and (b) the right to enter, take possession of, and manage the
Security; provided however that Trustor shall have, before an Event of Default, the exclusive
right to possess the Security and to collect Rents and use there in accordance with the Loan
Documents. This assignment is intended to be an absolute and present transfer of Trustor's
interest in existing and future Rents, effective as of the date of this Deed of Trust.
4. ENFORCEMENT. Upon the happening of an Event of Default and written notice
to Trustor, Beneficiary may, in addition to other rights and remedies permitted by the Loan
Agreement, this Deed of Trust, or applicable law, (a) enter upon, take possession of, and manage
the Security, either in person as a mortgagee-in-possession, by agent, or by a receiver appointed
by a court, and do any acts which it deems necessary or desirable to preserve the value,
marketability or rentability of the Security, (b) collect all Rents, including those past due and
unpaid, and apply the same to pay for the costs and expenses of operation of the Security,
including attorneys' fees, and pay off any indebtedness secured by this Deed of Trust, all in such
order as Beneficiary may determine, and/or (c) enter upon and take possession of the Security.
Beneficiary may make, cancel, enforce, and modify leases and rental agreements, obtain and evict
Attachment No. 3A
Page 3 of 12
4's G:Agree:Koledo:Atta.h3`112/4 95
RLS 95-519
tenants, set and modify rent terms, sue for refits due, enter into, modify, or terminate any
contracts or agreements, or take any legal action, as it deems necessary with respect to the Rents
or to development or operation of the Security.
S. APPOENTMENT OF A RECEIVER. In any action to enforce this assignment,
Beneficiary may apply for the appointment of a receiver to take possession of the Security and
take,whatever measures are necessary to preserve and manage the Security for the benefit of
Beneficiary and the public interest. Trustor hereby consents to the appointment of a receiver.
The receiver shall have all of the authority over the Security that Beneficiary would have if
Beneficiary took possession of the Security under this assignment as a mortgagee-in-possession,
including the right to collect and apply Rents and the right to complete construction of
improvements.
6. NO WAIVER OF POWER OF SALE. The entering upon and taking possession
of the Security and the collection of Rents shall not cure or waive any default or notice of default
hereunder or invalidate any act done in response to such default or notice of default and,
notwithstanding the continuance in possession of the Security or the collection and application of
Rents, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust or by
law upon occurrence of any Event of Default, including the right to exercise the power of sale.
COMMERCIAL CODE SECURITY AGREEMENT
7. GRANT. This Deed of Trust is intended to be a security agreement and financing
statement pursuant to the California Commercial Code for any of the items specified above as part
of the Security which under applicable Iaw may be subject to a security interest pursuant to the
Commercial Code, and Trustor hereby grants Beneficiary a security interest in said items.
Beneficiary may file a copy of this Deed of Trust in the real estate records or other appropriate
index as a financing statement for any of the items specified as part of the Security. Trustor shall
execute and deliver to Beneficiary at Beneficiary's request any financing statements, as well as
extensions, renewals, and amendments thereof, and copies of this instrument in such f6rm as
Beneficiary may require to perfect a security interest with respect to said items.
S. REMEDIES. Upon Trustor's breach of any obligation or agreement in the Loan
Documents, Beneficiary shall have the remedies of a secured party under the Commercial Code
and at Beneficiary's option may also invoke the remedies provided for elsewhere in this Deed of
Trust with respect to said items. Beneficiary may proceed against the items of real property and
personal property specified above separately or together and in any order whatsoever.
RIGHTS AND OBLIGATIONS OF TRUSTOR
9. PERFORMANCE OF SECURED OBLIGATION. Trustor shall promptly
perform each obligation secured by this Deed of Trust.
Attachment No. 3 A
Page 4 of 12
4`9 G:Agree:Koledo:Attach3'.12"4 95
RI S 95-5 19
10. PAYMENT OF PRINCIPAL AND WTEREST. Trustor shall promptly pay when
due the principal and interest on the indebtedness evidenced by the Note.
I t. MAINTENANCE OF THE SECURITY. Trustor shall, at the Trustor's own
expense, maintain and preserve the Security or cause the Security to be maintained and preserved
in good condition, in good repair, and in a decent, safe, sanitary, habitable and tenantable
condition. Trustor Shall not cause or permit any violations of any laws, ordinances, regulations,
covenants, conditions, restrictions, or equitable servitudes as they pertain to improvements,
alterations, maintenance or demolition on the Security. Trustor shall not commit or permit waste
on or to the Security. Trustor shall not abandon the Security. Beneficiary shall have no
responsibility over maintenance of the Security. In the event Trustor fails to maintain the Security
in accordance with the standards in this Deed of Trust, the Loan Agreement, or the Regulatory
Agreement, Beneficiary, after at least thirty(30) calendar days prior notice to Trustor, may, but
shall be under no obligation to, make such repairs or replacements as are necessary and provide
for payment thereof. Any amount so advanced by Beneficiary, together with interest thereon
from the date of such advance at the same rate of indebtedness as specified in the Note(unless
payment of such an interest rate would be contrary to applicable law, in which event such sums
shall bear interest at the highest rate then allowed by applicable law), shall become an additional
obligation of Trustor to Beneficiary and shall be secured by this Deed of Trust.
12. INSPECTION OF THE SECURITY. Trustor shall permit Beneficiary to enter
and inspect the Security for compliance with these obligations upon 24 hours advance written
notice of such visit by Beneficiary to Trustor or Trustor's management agent.
13. LItNS, ENCU-MBRANCES, AND CHARGES. Trustor shall discharge any lien
or encumbrance not approved by Trustor in writing that may attain priority over this Deed of
Trust, as provided for in the Loan Agreement.
14. DEFENSE AND NOTICE OF CLAIMS AND ACTIONS. Trustor shall appear in
and defend, at its own expense, any action or proceeding purporting to affect the Security and/or
the rights of Beneficiary. Trustor shall give Beneficiary and Trustee prompt notice in writing of
the assertion of any claim, of the filing of any action or proceeding and of any condemnation offer
or action with respect to the Security.
1S. SUITS TO PROTECT THE SECURITY. Beneficiary shall have power to
institute and maintain such suits and proceedings as it may deem expedient (a)to prevent any
impairment of the Security or the rights of Beneficiary, (b) to preserve or protect its interest in the
Security and in the Rents, and (c) to restrain the enforcement of or compliance with any
governmental legislation, regulation, or order, if the enforcement of or compliance with such
legislation, regulation, or order would impair the Security or be prejudicial to the interest of
Beneficiary.
Attachment No. 3A
Page 5 of 12
4-s'G:Agree:Koiedo:Attach3 12:4:,95
RLS 95-519
16. DAMAGE TO SECURITY. Trustor shall give Beneficiary and Trustee prompt
notice in writing of any damage to the Security. If any building or improvements erected on the
Property is damaged or destroyed by an insurable cause, Trustor shall use the insurance proceeds
to repair or restore said buildings and improvements consistent with the original plans and
specifications. Such work or repair shall be commenced within 120 days after the damage or loss
occurs and shall be complete within one year thereafter. All insurance proceeds collected for such
damage or destruction shall be applied to the cost of such repairs or restoration.
17. TITLE. Trustor warrants that Trustor lawfully has legal title to the Security
without any limitation on the right to encumber.
18. GRANTING OF EASEMENTS. Trustor may not grant easements, licenses,
rights-of-way or other rights or privileges in the nature of easements with respect to the Security
except those required or desirable for installation and maintenance of public utilities including
water, gas, electricity, sewer, cable television, telephone, or those required by law.
19. TAXES AND LEVIES. Trustor shall pay prior to delinquency, all taxes, fees,
assessments, charges and levies imposed by any public authority or utility company which are or
may become a lien affecting the Security. However, Trustor shall not be required to pay and
discharge any such tax, assessment, charge or levy so long as (a) the legality thereof shall be
promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor
maintains reserves adequate to pay any contested liabilities. In the event that Trustor fails to pay
any of the foregoing items, Beneficiary may, but shall be under no obligation to, pay the same,
after Beneficiary has notified Trustor of such failure to pay and Trustor fails to fully pay such
items within thirty (30) business days after receipt of such notice. Any amount so advanced by
Beneficiary, together with interest thereon from the date of such advance at the same rate of
indebtedness as specified in the Note (unless payment of such an interest rate would be contrary
to applicable law, in which event such sums shall bear interest at the highest rate then allowed by
applicable law), shall become an additional obligation of Trustor to Beneficiary and shall be
secured by this Deed of Trust.
20. INSURANCE. Trustor shall provide such insurance as required under the Loan
Agreement. In the event Trustor fails to maintain the full insurance coverage required by this
Deed of Trust, Beneficiary, after at least seven business days prior notice to Trustor, may, but
shall be under no obligation to, take out the required policies of insurance and pay the premiums
on such policies. Any amount so advanced by Beneficiary, together with interest thereon from the
date of such advance at the same rate of indebtedness as specified in the Note (unless payment of
such an interest rate would be contrary to applicable law, in which event such sums shall bear
interest at the highest rate then allowed by applicable law), shall become an additional obligation
of Trustor to Beneficiary and shall be secured by this Deed of Trust.
Attachment No. 3A
Page 6 of 12
4-s'.G:Agrce:Koledo:altach3'114195
RLS 95-519
21. CONDEMNATION. All judgments, awards of damages, settlements and
compensation made in connection with or in lieu of taking all or any part of or interest in the
Security under assertion of the power of eminent domain ("Funds") are hereby assigned to and
shall be paid to Beneficiary. Beneficiary is authorized (but not required) to collect and receive
any Funds and is authorized to apply them in whole or in part upon any indebtedness or
obligation secured hereby, in such order and manner as Beneficiary shall determine at its sole
option. All or any part of the amounts so collected and recovered by Beneficiary may be released
to Trustor upon such conditions as Beneficiary may impose for its disposition. Application of all
or any part of the Funds collected and received by Beneficiary or the release thereof shall not cure
or waive any default under this Deed of Trust.
22. ACCELERATION ON TRANSFER OF SECURITY,- ASSUMPTION. In the
event that Trustor, without the prior written consent of the Beneficiary, sells, agrees to sell,
transfers, or conveys its interest in the Security or any part thereof or interest therein, Beneficiary
may at its option declare all sums secured by this Deed of Trust to be immediately due and
payable. This option shall not apply in case of:
A. the grant of a tenant or leasehold to qualifying households who will occupy Project
units as provided for under the Loan Documents and the Regulatory Agreement;
or
B. sale or transfer of fixtures or personal property pursuant to the grant provisions in
this Deed of Trust; or
Consent to one sale or transfer shall not be deemed to be a waiver of the right to require
such consent to future or successive transactions.
23. RECONVEYANCE BY TRUSTEE. This trust is intended to continue for the
entire term of the Loan. Upon written request of Beneficiary stating that all sums secured by this
Deed of Trust have been paid or forgiven and upon surrender of this Deed of Trust to Trustee for
cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees, Trustee
shall reconvey the Security to Trustor, or to the person or persons legally entitled thereto.
DEFAULT AND REMEDIES
24. EVENTS OF DEFAULT. Any of the events listed in the Loan Agreement as an
Event of Default shall also constitute an Event of Default under this Deed of Trust, including, but
not limited to, (1) Trustor's failure to pay when due any sums payable under this Deed of Trust,
the Note, or the Loan Agreement; or (2) Trustoe's failure to observe or to perform any of its
covenants, agreements or obligations under this Deed of Trust, the Note, the Loan Agreement,
and the Regulatory Agreement.
Attachment No. 3A
Page 7 of 12
4 s'.G:Agree:Koledo:Attach3112 195
RLS 95-519
25. ACCELERATION OF MATURITY. Upon the happening of an Event of Default
which has not been cured within the times and in the manner provided in the Loan Agreement,
Beneficiary may declare all sums advanced to Trustor under the Note and this Deed of Trust
immediately due and payable.
26. BENEFICIARY'S REMEDIES. Upon the happening of an Event of Default
which has not been cured within the times and in the manner provided in the Loan Agreement,
Beneficiary may, in addition to other rights and remedies permitted by the Loan Agreement, the
Note, or applicable law, proceed with any or all of the following remedies:
A. Enforce the assignment of rents and right to possession as provided for in this
Deed of Trust, and/or seek appointment of a receiver to take over possession of
the Security and collect Rents;
B. Commence an action to foreclose this Deed of Trust pursuant to California Code
of Civil Procedure Sections 725a, et seq., and/or seek appointment of a receiver
from a court of competent jurisdiction with the authority to protect Beneficiary's
interests in the Security, including the authority to complete construction of
improvements;
C. Deliver to Trustee a written declaration of Default and demand for sale, and a
written Notice of Default and election to cause Trustor's interest in the Security to
be sold, which notice Trustee or Beneficiary shall duly file for record in the Official
Records of Orange County, and exercise its power of sale as provided for below;
or
D. Pursue any other rights and remedies allow at law or in equity.
27. FORECLOSURE BY POWER OF SALE. Should Beneficiary elect to foreclose
by exercise of the power of sale contained in this Deed of Trust,.Beneficiary shall notify Trustee
and shall deposit with Trustee this Deed of Trust (the deposit of which shall be deemed to
constitute evidence that the unpaid sums disbursed under the Note are immediately due and
payable), and such receipts and evidence of any expenditures made that are additionally secured
hereby as Trustee may require.
Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded,
published and delivered to Trustor such Notice of Default and Election to Sell as then required by
law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time
as may then be required by law and after recordation of such Notice of Default and after Notice of
Sale having been given as required by law, sell the Security, at the time and place of sale fixed by
it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall
deem expedient and in such order as it may determine unless specified otherwise by Trustor, at
Attachment No. 3 A
Page 8of12
4''s`sG:Agrce:Ko1edo:attach3+i214!95
RI.S 95-519
public auction to the highest bidder for cash in lawful money of the United States payable at the
time of sale. Trustee shall deliver to the purchaser its deed or deeds conveying the property so
sold, but without any covenant or warranty, express or implied. The recitals in such deed of any
matters of facts shall be conclusive proof of the truthfulness thereof. Any person, including,
without limitation, Trustor, Trustee, or Beneficiary, may purchase at the sale.
Trustee may postpone sale of all or any portion of the property by public announcement at
such time and place of sale, and from time to time thereafter, and without further notice make
such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice
of Sale.
After deducting all reasonable costs, fees and expenses'of Trustee, including costs of
evidence of title in connection with such sale, Trustee shall apply the proceeds of sale as follows:
(i) first, to the payment of all sums then secured by this Deed of Trust, in such order and amounts
as Beneficiary in its sole discretion determines, and (ii) the remainder, if any, to the person or
persons legally entitled thereto.
28. REMEDIES CUMULATIVE. No right, power or remedy conferred upon or
reserved to Beneficiary by this Deed of Trust is intended to be exclusive of any other rights,
powers or remedies, but each such right, power and remedy shall be cumulative and concurrent
and shall be in addition to any other right, power and remedy given hereunder or now or hereafter
existing at law or in equity.
GENERAL PROVISIONS
29. GOVERNING LAW. This Deed of Trust shall be interpreted under and governed
by the laws of the State of California, except for those provisions relating to choice of law and
those provisions preempted by federal law.
30. ATTORNEYS' FEES AND COSTS. In the event of any Event of Default, or any
legal or administrative action is commenced to interpret or to enforce the terms of this Deed of
Trust, each party shall bear its own attorneys' fees and costs. The prevailing party in such action
shall not be entitled to recover any attorneys' fees and costs in such action.
31. CONSENTS AND APPROVALS. Any consent or approval of the City required
under this Regulatory Agreement shall not be unreasonably withheld. Any approval must be in
writing and executed by an authorized representative of the City.
32. TIME. Time is of the essence in this Deed of Trust.
Attachment No. 3A
Page 9 of 12
4's G:Agree:Koledo:AAriachY%12;4 95
RLS 95-519
33. NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands
and communications between Trustor and Beneficiary shall be sufficiently given and shall not be
deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt
requested, or delivered personally, to the principal offices of Trustor and Beneficiary as follows.
BENEFICIARY: City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attention: Office of City Administrator
TRUSTOR: Orange County Community Housing
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
Attention: Executive Director
34. BINDhN'G UPON SUCCESSORS. All provisions of this Deed of Trust shall be
binding upon and inure to the benefit of the heirs, administrators, executors, successors-in-
interest, transferees, and assigns of Trustor, Trustee, and Beneficiary.
35. WAIVER. Any waiver by Beneficiary of any obligation of Trustor in this Deed of
Trust must be in writing. No waiver will be implied from any delay or failure by Beneficiary to
take action on any breach or default of Trustor or to pursue any remedy allowed under the Deed
of Trust or applicable law. Any extension of time granted to Trustor to perform any obligation
under this Deed of Trust shall not operate as a waiver or release Trustor from any of its
obligations under this Deed of Trust. Consent by Beneficiary to any act or omission by Trustor
shall not be construed to be a consent to any other or subsequent act or omission or to waive the
requirement for Beneficiary's written consent to future waivers.
36. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to
this Deed of Trust must be in writing, and shall be made only if mutually agreed upon by
Beneficiary and Trustor.
37. LOAN AGREEMENT CONTROLS. If there is any contradiction between this
instrument and the Loan Agreement, the terms of the Loan Agreement shall control.
38. DEFINITIONS. Capitalized terms not otherwise defined in this Deed of Trust
shall have the same meaning as defined terms in the Loan Agreement.
39, PROOFS OF CLAIM. In the case of any receivership, insolvency, bankruptcy,
reorganization, arrangement, adjustment, recomposition or other proceedings affecting Trustor,
its creditors or its property, Trustee, to the extent permitted by law, shall be entitled to file such
proofs of claim and other documents as may be necessary or advisable in order to have the claims
Attachment No. 3A
Page 10 of 12
4 s'.G:Agrec:Koledo:Anach31124 95
RLS 95-519
of Beneficiary allowed in such proceedings and for any additional amount which may become due
and payable by Trustor hereunder after such date.
40. SEVERABILITY. Every provision of this Deed of Trust is intended to be
severable. If any term or provision of this Deed of Trust is declared to be illegal, invalid, or
unenforceable by a court of competent jurisdiction, the legality, validity, and enforceability of the
remaining provisions shall not be affected. If the lien of this Deed of Trust is invalid or
unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of
the Security, the unsecured or partially secured portion of the debt and all payments made on the
debt (whether voluntary or under foreclosure or other enforcement action or procedure) shall be
considered to have been first paid or applied to the payment of that portion of the debt which is
not secured or partially secured by the lien of this Deed of Trust.
41. SUBSTITUTION OF TRUSTEES. Beneficiary may from time to time appoint
another trustee to act in the place and stead of Trustee or any successor. Upon such appointment
and without conveyance, the successor trustee shall be vested with all title, powers, and duties
conferred upon Trustee. Each such appointment and substitution shall be made by a written
instrument executed by Beneficiary containing reference to this Deed of Trust and its place of
record, which when duly recorded in the Orange County Office of the Recorder shall be
conclusive proof of proper appointment of the successor trustee.
42. ACCEPTANCE BY TRUSTEE. Trustee accepts this Trust when this Deed of
Trust, duly executed and acknowledged, is made public record as provided by law. Except as
otherwise provided by law, the Trustee is not obligated to notify any party hereto of pending sale
under this Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee
shall be a party unless brought by Trustee.
Attachment No. 3 A
Page 11 of 12
4`s`-G:Agrec:Koledo:AttachT1214 95
RLS 95-519
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and
year first above written.
TRUSTOR:
Orange County Community Housing
Corporation, a California nonprofit
public benefit corporation
By: V 1
Ads.-aJ Lbc�.t �J
Its: %XCC_UMZ_ Dr2EC.TQkK
By:
Its:
THIS DOCUMENT MUST BE NOTARIZED FOR RECORDING
BORROWER'S SIGNATURE MUST BE ACKNOWLEDGED
Attachment No. 3A
Page 12 of 12
4's'.G:Flgree:Koledo:.4ttach3'.12:'A'95
R1 S 95-519
Exhibit "A" to Deed of Trust
Legal Description
17371 Koledo Lane
Lot 9 of Tract No. 4301, as per map recorded in Book 177, Pages 11 and 12 of Miscellaneous
Maps, in the office of the County Recorder of said County; together with that portion of Koledo
Lane lying parallel to and adjacent to said lots, which would pass by operation of law, as vacated
by the City of Huntington Beach by Resolution No. 5353, recorded February-15, 1984, as
Instrument No. 84-065494, Official Records.
Dated: December 23, 1994
Exhibit "A" to
Attachment No. 3A
Page 1 of I
4` G:Agree:Koledo:AttacM%.12:4 95
RIS 95-519
CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the deed dated
from Orange County Community Housing Corporation to
C-fhe CI OF HUNTINGTON BEACH, a municipal corporation, is hereby
accepted by the undersigned officer or agent on behalf of the City Council of the
City of Huntington Beach, pursuant to the authority conferred by Resolution
No. 3537 of the City Council of the City of Huntington Beach adopted on
August 7, 1972, and the grantee consents to the recordation thereof by its duly
authorized officer.
Dated: ZV—^— L Z 5./jj
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CIVIC
CITY CLERK
By:
Deputy City Clerk
g:`follo�iup:deedcert
(Telephone:714-536-5227 M
AME R .,
ARMSPEfth—
STATE OF CALIFORNIA }ss.
COUNTY OF ORANGE }
On �Yca 3 19y lv before me, A<4-774,e-it,� M s o7-l0
personally appeared 1-.aW1AJ
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which
the person(s) acted, executed the instrument.
WITNESS my hand and of ' seal.
Signature
LID.—
UTH
AERIMAMcaMM
MC1G 9 6E8>�lref3
v
g
(This area for official notarial seal)
Title of Document DEED OF TRUST, ASSIGNMENT OF RENTS, AND SECURITY
AGREEMENT
Date of Document JANUARY 2ND, 1996
w'
Attachment No. 4
NO FEE DOCUMENT
Recording requested by and
When recorded, mail to.-
City of Huntington Beach
Lam, 2000 Main Street
Huntington Beach, CA 92648
Attn: City Clerk
1�
Recorded in theCalifornia County of Orange: �
Gary L. Granville, clerk/Recorder � G
Na gee
1996016498fl 08:00am 04/04/96 >'
008 247302 20 17 FAT
Al2 16 7.00 45.00 0.00 0.00 0.00 0'00
REGULATORY AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON
BEACH AND ORANGE COUNTY COMMUNITY HOUSING CORPORATION
CONCERNING THE ACQUISITION AND REHABILITATION OF AFFORDABLE
HOUSING AT 17361 KOLEDO LANE WITH FUNDS OBTAINED FROM THE HOME
INVESTMENT PARTNERSHIP PROGRAM
This Regulatory Agreement is made this <9 day of 199 , by
and between the City of Huntington Beach, a municipal corporatlo4he "City"), and Or nge
County Community Housing Corporation, a California public benefit corporation ("OCCHC").
RECITALS If .-d
WHEREAS, OCCHC intends to purchase a five-unit building on Koledo Lane in the
City of Huntington Beach; and
OCCHC desires that all of the Project's units be rented at prices affordable to low income
households; and
The City has received Home Investment Partnership Program funds ("HOME Funds")
from the United States Department of Housing and Urban Development ("HUD") pursuant to the
Attachment No. 4
Page 1 of 13
4WAgree:Koledo:Attach4112/04/95
RL5 95-519
Cranston-Gonzales National Housing Act of 1990 for the purpose of expanding the supply of
decent, safe, sanitary and affordable housing for very-low and low-income persons and families;
and
OCCHC has received a loan from the City from the City's HOME Funds to support the
acquisition and rehabilitation of the Project, and the funds have been made available in order to
help achieve financial feasibility for the Project and maximize the.affordability of Project units; and
As further consideration for this funding and to further the interests of the City, City and
OCCHC have agreed to enter into and record this Regulatory Agreement. The purpose of this
Regulatory Agreement is to regulate and restrict the occupancy, rents, operation, ownership, and
management of the Project. The covenants in this Regulatory Agreement are intended to run with
the land and be binding on OCCHC and its successors,
NOW THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and
representations, and in further consideration for the aforementioned funding, OCCHC, and City
hereby agree as follows:
ARTICLE 1. DEFINITIONS
The following terms have the meanings and content set forth in this section wherever used
in this Regulatory Agreement or attached exhibits.
1.1 "AREA MEDIAN INCOME" means the median income for the Orange County
Primary Metropolitan Statistical Area (PMSA), with adjustments for household size, as
determined from time to time by the U.S. Department of Housing and Urban Development
(HUD) pursuant to the United States Housing Act of 1937 as amended, or such other method of
median income calculation applicable to the City that HUD may hereafter adopt in connection
with said Act.
1.2 "CITY" means the City of Huntington Beach, a municipal corporation, and its
officers, officials, directors, employees, agents and authorized representatives.
1.3 "DEED OF TRUST" means the deed of trust, placed on the Property as security
for the Loan with OCCHC as trustor and the City as beneficiary, as well as any amendments to,
modifications of, and restatements of said deed of trust.
1.4 "HOME" means Home Investment Partnership Program created by the National
Affordable Housing Act of 1990.
Attachment No. 4
Page 2 of 13
4�slAgree:Koledo:AttacM%12104/95
RLS 95-519
1.5 "LOAMY" means any loan of funds provided by the City to OCCHC for the Project.
1.6 "LOAN DOCUMENTS" means collectively the Deed of Trust, Note, and this
Regulatory Agreement as they may be amended, modified, or restated from time to time, along
with all exhibits and attachments to these documents.
1.7 "NOTE" means the promissory note executed by OCCHC in favor of the City
evidencing the Loan, which is secured by the deed of trust, as well as any amendments to,
modifications of, or restatements of said promissory note.
L8 "PROJECT" means the five (5) units of rental housing on the Property to be owned
and operated by OCCHC for Very Low-Income Households.
1.9 "PROPERTY" means the real property described in the attached Exhibit A, which is
hereby incorporated into this Regulatory Agreement by this reference.
1.10 "VERY LOW-INCOME HOUSEHOLD" means a household whose annual
income does not exceed fifty percent (50%) of the median income for the Orange County PMSA
as determined by HUD with adjustments for smaller and larger households.
2.1 "UNIT" means a housing unit in the Project.
ARTICLE 2. OCCHC'S OBLIGATIONS
2.1 COMPLIANCE WITH LOAN DOCUMENTS. OCCHC's actions with respect to
the Property and the use of Loan funds shall at all times be in full conformity with all of the
requirements of the Loan Documents.
2.2 TERM OF AGREEMENT. This Regulatory Agreement shall commence upon
execution and shall remain in full force and effect for thirty (30) years.
2.3 COMPLIANCE WITH PROGRAM REQUIREMENTS. OCCHC shall comply
with all requirements imposed on projects assisted under the HOME Program as contained in 42
U.S.C. Sections 12701, et seq., 24 C.F.R. Part 92, and other implementing rules and regulations.
Attachment No. 4
Page 3 of 13
41MAgree:Koledo:Attach4\12/04/95
RLS 95-519
ARTICLE 3. PROJECT OCCUPANCY A,ND RENTS
3.1 OCCUPANCY OF PROJECT. OCCHC shall limit for the full term of this
Regulatory Agreement the rental of all five (5) Units to Very Low-Income Households at no
more than the maximum rental charges set forth in this Regulatory Agreement. The Units
restricted by this Regulatory Agreement shall consist of five (5) two-bedroom units. The income
levels and other qualifications of Very Low-Income Household applicants for Units shall be
certified prior to initial occupancy and recertified yearly by OCCHC. In the event that
recertification of a Very Low-Income Household's income indicates that the income exceeds the
maximum income designated for a Very Low-Income Household, OCCHC shall adjust the
household's rent to equal the lesser of(a) thirty percent (30%) of the household's gross income or
(b) the fair market rental of the unit. In addition, OCCHC shall rent the next available Project unit
to a Very Low-Income Household.
3.2 MAXIMUM RENTAL CHARGES. The total charges for rent, utilities, and
related services to Very Low Income Household shall not exceed thirty percent (30%) of fifty
percent (50%) of Area Median Income adjusted for family size. Fifty percent (50%) of Area
Median Income for a three (3) person family shall be assumed for a two (2) bedroom unit and fifty
percent (50%) of Area Median Income for a five (5) person family for a three-bedroom unit.
Initial rents for each Unit shall be approved by the City at the time of initial occupancy of the
Project. Annual rent increases shall be based on the change in permissible rents published
annually by HUD. OCCHC may annually make any rent adjustment pursuant to the terms of this
Regulatory Agreement. At least 60 calendar days prior to increasing rents on any Unit restricted
by this Regulatory Agreement, OCCHC shall submit to the City for review and approval a written
request for such increase. Households occupying Units restricted by this Regulatory Agreement
shall be given at least 30 days written notice prior to any rent increase.
3.3 CONDOMINIUM CONVERSION. OCCHC shall not convert Project units to
condominium or cooperative ownership or sell condominium or cooperative conversion rights to
the Property during the term of this Regulatory Agreement.
3.4 NONDISCRIMINATION. OCCHC shall not discriminate or segregate in the use,
enjoyment, occupancy, conveyance, lease, sublease, or rental of Project units on the basis of race,
color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status,
source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS)
or AIDS-related conditions (ARC), or any other arbitrary basis. OCCHC shall include a
statement in all advertisements, notices and signs for the availability of Project units for rent to the
effect that OCCHC is an Equal Housing Opportunity Provider.
Attachment No. 4
Page 4 of 13
41s1Agree:Koledo:Attach4112104,'95
RL5 95-519
ARTICLE 4. PROPERTY MANAGEMENT
4.1 MANAGEMENT RESPONSIBILITIES. OCCHC is responsible for all
management functions with respect to the Project, including without limitation the selection of
tenants, certification and recertification of household size and income, evictions, collection of
rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of
capital items, and security. The City shall have no responsibility over management of the Project.
The Site shall be occupied, used and maintained as follows:
A. Use. Each dwelling unit shall be used only for private apartment dwelling
purposes, with appurtenant facilities, and for no other purposes.
B. Sims. All signs on the property shall conform with all ordinances and other
regulations of the City.
C. Waste. OCCHC and the occupants shall not permit or suffer anything to be done
or kept upon said premises which will increase the rate of insurance on any building, or on the
contents thereof, or impair the structural integrity thereof or which will obstruct or interfere with
the rights of other occupants, or annoy them by unreasonable noises or otherwise, nor shall any
occupant commit or permit any nuisance on the premises or fail to keep to premises free of
rubbish, clippings and trash or commit or suffer any illegal act to be committed thereon. OCCHC
shall comply with all of the requirements of all governmental authorities with respect to the
premises. If by reason of the occupancy or.uses of the premises the rate of insurance on the Site
shall be increased, OCCHC shall become personally liable for the additional insurance premiums.
D. Improvements. There shall be no structural alteration, construction or removal of
any building, fence or other structure on the Site (other than repairs or rebuilding permitted
herein) without the approval of the City or the Agency and in accordance with the City Code.
E. Parking. OCCHC shall not permit the parking, storing or keeping of any vehicle
except wholly within the parking areas designated therefor. OCCHC shall not permit the parking,
storing or keeping of any large commercial type vehicle (dump truck, cement mixer truck, oil or
gas truck, etc.), or any recreational vehicle (camper unit, camper shell detached from a private
passenger vehicle, motor home, trailer, boat trailer, mobile home or other similar vehicle, except
when parked within an enclosed parking space), boats over twenty (20) feet in length or any
vehicle other than a private passenger vehicle upon any portion of the Site, including parking
spaces. OCCHC shall not permit major repairs or major restorations of any motor vehicles, boat,
trailer, aircraft or other vehicle to be conducted upon any portion of the Site, including parking
Attachment No. 4
Page 5 of 13
4tis\Agree:Koledo:Attach4112/04/95
RLS 95-519
spaces, except for emergency repairs thereto and then only to the extent necessary to enable
movement thereof to a proper repair facility. -No inoperable vehicle shall be stored or kept
anywhere on the Site. OCCHC shall have the right to remove, at the tenant's expense, any
vehicle parked, stored or kept in violation of the provisions of this Declaration. In addition, all
provisions of the Huntington Beach Municipal Code, including amendments thereto, shall apply.
P. Occupancy. Occupancy of each dwelling unit shall be restricted to occupancy
standards set forth in the Huntington Beach Municipal Code or state standards, as are effective or .
as may be effective or amended. OCCHC shall not be permitted to lease or rent any dwelling unit
thereon for transient or hotel purposes. Any lease or rental agreement covering an apartment
shall provide that the terms of the lease or rental agreement shall be subject in all respects to the
provisions of this Declaration of Conditions, Covenants and Restrictions and that any failure by
the lessee to comply with the terms of such documents shall be a default under the lease or rental
agreement. All leases and rental agreements shall be in writing. All prospective
tenants/occupants of the Site shall make application through OCCHC.
G. - Inspection. To the extent permitted by law, the City of Huntington Beach and
the Agency shall have the right of entry, at reasonable business hours and upon no less than
twenty-four (24) hours advance notice, onto the Site to inspect for the need for repairs or
maintenance. Entry onto the Site or into any unit for other than emergency repairs may be made
only after such advance notice and request for entry. If request for entry is denied or the Site or
any applicable unit is unoccupied, the City or Agency may apply for an appropriate warrant or
other order from a court of appropriate jurisdiction.
H. Subdivision. No part of the Site shall at any time be owned by a cooperative
housing corporation, nor shall OCCHC take any steps in connection with a conversion to such
ownership or uses. Other than obtaining a final subdivision map on the Site and a final
subdivision public report from the California Department of Real Estate, the Developer shall not
take any steps in connection with a conversion of the Site to a condominium ownership, or with a
conversion of the Site to "timeshare" ownership.
I. Exterior Maintenance. The exterior areas of the Site shall be kept free of rubbish,
debris and other unsightly or unsanitary materials. Exterior yard areas and parking areas shall be
kept free of deterioration, including: potholes, cracks in asphalt so as to become uneven, unsightly
surface conditions, weeds growing through asphalt. Perimeter fencing, landscaping and irrigation
system shall be routinely inspected and maintained in good condition.
Each occupant of the Site shall have the affirmative obligation to prevent what might be
considered a fire hazard or a condition dangerous to the public health, safety and general welfare;
Attachment No. 4
Page 6 of 13
41s1Ag ree-Koledo'Afta&4112144195
RLS 95-519
or constitute an unsightly appearance or otherwise detract from the aesthetic and property values
of neighboring dwelling units and properties. The following minimum performance standards for
the maintenance of buildings, yards, and landscaping shall be adhered to by the Developer:
1. Landscaping on the Site shall be absent of the following:
a. Lawns with grasses in excess of six (6) inches in height.
b. Untrimmed hedges.
C. Trees, shrubbery, lawns and other plant life dying from lack of water or
other necessary maintenance.
d. Trees and shrubbery grown uncontrolled without proper pruning.
e. Vegetation so overgrown as to be likely to harbor rats or vermin.
f. Dead, decayed or diseased trees, weeds and other vegetation.
g. Inoperative irrigation system(s).
2. Yard areas shall be maintained so as to be absent of the following:
a. Broken or discarded furniture, appliances and other household equipment
stored in yard areas for periods exceeding one (1) week.
b. Packing boxes, lumber, trash, dirt and other debris stored in yards for
unreasonable periods in areas visible from public property or neighboring
properties.
C. Unscreened trash cans, bins or containers stored for unreasonable periods
in areas visible from public streets and common areas.
3. No building, wall or fence may be left in an unmaintained condition so that any of
the following exist:
a. Buildings abandoned, boarded up, partially destroyed or left unreasonably
in a state of partial construction.
Attachment No. 4
Page 7 of 13
4WAgree:Koledo:Attach4112/04/95
RLS 95-519
b. Unpainted buildings or buildings with peeling paint in such a condition as
to:
i. Cause dry rot, warping and termite infestation, or
ii. Constitute an unsightly appearance that detracts from the aesthetic
or property values of neighboring properties.
c. Broken windows, constituting hazardous conditions and/or inviting
trespassers and malicious mischief.
d. Damaged garage doors that may become inoperative or unsafe to operate.
e. Graffiti remaining on any portion of the property for a period exceeding 72
hours.
f Building interiors and exteriors shall be maintained to meet standards of
similar residential property in the City of Huntington Beach.
J. Agency and City Right of Review and Enforcement. The City of Huntington
Beach ("City") and the Agency shall be made parties to this Declaration for the limited purpose as
specified herein as follows:
1. Changes or amendments to this Declaration must be submitted for City and
Agency review and approval.
2. In the event of inaction by the Developer, the City and Agency are hereby
granted expedient power to enforce all provisions of this Declaration including, but not limited to,
the maintenance of the Improvements and all yards, buildings and landscaping areas within the
Site.
3. The City and Agency are hereby granted the express power to enforce all
laws and ordinances of the State of California and/or the City on yards, structures, and private
parking areas within the Site. Nothing within this Declaration, however, shall be construed as
imposing an obligation or requiring the City or Agency to enforce any provision thereof.
4. The City and the Agency shall be given prior written notice of any
proposed amendment to this Declaration. Such notice shall be given by mailing a copy of the
precise language of the proposed amendment to the City of Huntington Beach, c/o City Clerk,
Attachment No. 4
Page 8 of 13
41s1Agree:Koledo:Attach4112104195
RL5 95-519
together with a letter of transmittal explaining the proposed change in general terms. The City
and the Agency shall have an opportunity to review and comment upon the proposed amendment
for a period of not less than forty-five (45) days prior to the effective date of any such proposed
amendment. If the City or Agency fail to respond within forty-five (45) days, the proposed
change(s) and amendment(s) shall be deemed approved, unless that time period is extended by
mutual agreement of all parties.
K. City of Huntington Beach Right of Entry for Code Enforcement Repair and
Traffic Regulation.
1. Right of Entry. To the extent permitted by law, OCCHC hereby
acknowledges and intends and thus grants to the City, through the City's duly authorized agents
or employees, the right to enter upon the Site for the following purposes:
a. Inspection, maintenance and repair of the Site.
b. Enforcement of local traffic and/or parking regulations.
2. Reimbursement of City Expenditures. All costs and expenses incurred by
the City arising out of its inspection, maintenance and repair of the Site, as provided
hereinabove ("City Maintenance Costs"), shall be charged as an expense of the Developer
and shall be paid within ten(10) days of receipt of an invoice for same.
4.2 INSPECTION AND RECORDS. OCCHC shall maintain records which clearly
document OCCHC's performance of its obligations to operate the Property under the terms of this
Regulatory Agreement. OCCHC shall submit any records to the City within ten (10) business
days of the City's request. OCCHC shall permit the City to enter and inspect the Project for
compliance with obligations under this Regulatory Agreement upon 24 hours advance notice of
such visit by the City to OCCHC and to tenants of any inspected Project units.
4.3 FEES, TES, AND OTHER LEVIES. OCCHC shall be responsible for the
payment of all fees, assessments, taxes, charges and levies imposed by any public authority or
utility company with respect to the Property, and shall pay such charges prior to delinquency.
However, neither Borrower nor the Partnership shall be required to pay and discharge any such
charge so long as (a) the legality thereof is being contested diligently and in good faith and by
appropriate proceedings, and (b) if requested by Lender, Borrower or the Partnership deposits
with Lender any funds or other forms of assurance Lender in good faith from time to time
determines appropriate to protect Lender from the consequences of the contest being
unsuccessful.
Attachment No. 4
Page 9 of 13
41sWgrec Koledo:Attach4112104195
RL5 95-519
4.4 INSURANCE. OCCHC shall maintain insurance in full force and effect during the
term of this Agreement in an amount at least equal to the replacement cost of the Project.
4.5 COMPLIANCE WITH HOME PROGRAM REQUIREMENTS. Borrower shall
comply with all requirements imposed on projects assisted under the HOME program including
24 C.F.R. Part 92, and other implementing rules and regulations.
ARTICLE 5. GENERAL PROVISIONS
5.1 SUBORDINATION. This Regulatory Agreement shall be subordinated in priority
only to the liens created by the deeds of trust securing the construction and permanent loans for
the Project, and other liens and encumbrances otherwise approved in writing by the City in its sole
and absolute discretion.
5.2 DEFAULT AND REMEDIES. In the event of any breach of any agreement or
obligation under this Regulatory Agreement by OCCHC, the City shall give written notice to
OCCHC of such breach. OCCHC shall have an opportunity to cure such breach within thirty (30)
days of its receipt of such written notice or such longer period of time if OCCHC is diligently
undertaking to cure such breach. If OCCHC fails to perform a timely cure of the specified breach,
the City may proceed with any or all of the following remedies upon OCCHC's failure to cure:
A. Bring an action in equitable relief seeking the specific performance by
OCCHC of the terms and conditions of this Regulatory Agreement, and/or
enjoining, abating, or preventing any violation of said terms and conditions,
and/or seeking declaratory relief;
B. After notice provided for herein, make such repairs or replacements to the
Property and Project as are necessary and provide for payment thereof, or
C. Pursue any other remedy allowed at law or in equity.
5.3 NON-LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS. The City
shall not be personally liable to OCCHC for any obligation created under the terms of this
Regulatory Agreement except in the case of fraud or willful misconduct by such person.
5.4 GOVERNING LAW. This Regulatory Agreement shall be interpreted under and
be governed by the laws of the State of California, except for those provisions relating to choice
of law and those provisions preempted by federal law.
Attachment No. 4
Page 10 of 13
4Ls\Agree:Koledo:Attach4\12/04195
RLS 95-519
5.5 REGULATORY AGREEMENT CONTROLS. In the event that any provisions of
this Regulatory Agreement and any Loan Document conflict, the terms of the Regulatory
Agreement shall control
5.6 ATTORNEYS' FEES AND COSTS. In the event that any legal or administrative
action is commenced to interpret or to enforce the terms of this Regulatory Agreement, each
party shall bear its own attorneys' fees and costs. The prevailing party in any such action shall not
be entitled to recover any attorneys' fees and costs incurred in such action.
5.7 TIME. Time is of the essence in this Regulatory Agreement.
5.8 CONSENTS AND APPROVALS. Any consent or approval of the City required
under this Regulatory Agreement shall not be unreasonably withheld. Any approval must be in
writing and executed by an authorized representative of the City.
5.9 NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands
and communications between OCCHC and the City shall be sufficiently given and shall not be
deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt
requested, or delivered personally, to the principal offices of OCCHC and the City as follows:
City: City of Huntington Beach.
2000 Main Street
Huntington Beach, CA 92648
Attention: Office of City Administrator
OCCHC: Orange County Community Housing Corporation
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
Attention: Executive Director
5.10 BINDING UPON SUCCESSORS. All provisions of this Regulatory Agreement
shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-
in-interest, transferee, and assigns of OCCHC, the Partnership and the City, and shall run with the
land for the full term of this Regulatory Agreement, regardless of any assignment, payment,
prepayment,expiration, extinguishment of any Loan or Note, any reconveyance of any Deed of
Trust, or any conveyance or transfer of the Property.
Attachment No. 4
Page 11 of 13
415Wgree:Koledo:Attach4112104195
RLS 95-519
5.11 RELATIONSHIP OF PARTIES. The relationship of OCCHC, and the City for
this Project during the term of this Regulatory Agreement shall not be construed as a joint
venture, equity venture, or partnership. Except as the City may specify in writing, OCCHC shall
have no authority to act as an agent of the City or to bind the City to any obligation.
5.12 WAIVER. Any waiver by the City of any obligation in this Regulatory Agreement
must be in writing. No waiver will be implied from any delay or failure by the City to take action
on any breach or default of OCCHC to pursue any remedy allowed under this Regulatory
Agreement or applicable law. Any extension of time granted to OCCHC to perform any
obligation under this Regulatory Agreement shall not operate as a waiver or release from any of
its obligations under this Regulatory Agreement. Consent by the City to any act or omission by
OCCHC shall not be construed to be a consent to any other or subsequent act or omission or to
waive the requirement for the City's written consent to future waivers.
5.13 AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to
this Regulatory Agreement must be in writing, and shall be made only if executed by both
OCCHC and the City.
Attachment No. 4
Page 12 of 13
41sAgree:Koledo:Attach4112104195
RL5 95-519
5.14 SEVERABILITY. Every provision of this Regulatory Agreement is intended to
be severable. If any provision of this Agreement shall be held invalid, illegal, or unenforceable by
a court of competent jurisdiction, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired.
FN WITLESS WHEREOF, the parties hereto have executed this Regulatory Agreement
by and through their authorized officers as of the date first above written.
OCCHC: CITY:
Orange County Community Housing City of Huntington Beach,
Corporation, a California Non Profit a California municipal corporation
Public Benefit Corporation
c
By: G Cl./`.— GL��
4 UV
Mayor
Its: wrk y-F-- D l LLZ (c
By: Ize,
ST:
Its: ' YI—C)6 JG
City Clerk
INITIATED AND APPROVED APPROVE AS
City A inistrator i City Attorney p 14
REVIEWED AND APPROVED: ���
&d
Director of Economic Development
Attachment No. 4
Page 13 of 13
4ls\Agree:Koledo:Attach4112104195
RL5 95-519
'OALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of ----
County of
0 — .
On 2na s2a. 1996 before me,�Dfi'e 67Name antl Tide of,6fficlir{e g-,"Jane Dde.Notary Publi
personally appeared �c.rr,a.,,� .x�� ,
Name(s)of Signer(s)
L personally known to me— to be the person(
whose name(.§)isfare subscribed to the within instrument
and acknowledged to me that 44efshe/they executed the
_ MAYBRICE L.JOHPaON same in hisA%#their authorized capacity ies ,and that by
�! COMM.#991835 illi8fheritheir signatureW on the instrument the personal,
z� :'a t -
z � No'ory Public—California or the entity upon behalf of which the person(ss acted,
ORANGE COUNTY executed the instrument.
My Comm.Expires MAY 11,1997
WITNESS my hand and official seal.
-� S:gna of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: 736//'fi n o`toa-�
Document Date: ma 9 Number of Pages: Z1_7� _
Signer(s) Other Than Named Above:
Capacity(les) Claimed by Signer(s)
Signer's Name: Signer's Name:
Individual D Individual
`I Corporate Officer r' Corporate Officer
Title(s): Title(s):
CI Partner—❑ Limited El General Partner—❑ Limited ❑ General
Y Attorney-in-Fact Attorney-in-Fact
G Trustee - Trustee
❑ Guardian or Conservator Guardian or Conservator
Wither: Too of thump here "they: Top of thumb he-e
I I
Signer Is Representing: Signer Is Representing:
i J I
-----------------
O 1994 National Notary Association-a236 Rammet Ave.-P.O.Box 7184•Canoga Park.CA 91309-7184 Prod.No.5907 Reorder:Call Toll-Free 1.600-876-6827
`CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of 04
County of ;/7
t5t:
On before me, G
Date Name and Title of Officer(&g., ne Doe,Notary Pubr
personally appeared _Ow /`s0
Name(s)or Signers)
� ersonally known tome—OR ce to be the person*
whose name(srs/are subscribed to the within instrument
and acknowledged to me that helsb &ey executed the
same in hisAie&4I;ieir authorized capacity(Wa),and that by
hi&+mw4heir signature(s)on the instrument the person4&),
or the entity upon behalf of which the person( acted,
_ �L1ZA9ETH EHRItVG executed the instrument.
z COMM.t IO 3397 �+
Notory Public—Corfomia ORANGE COUNTYWITNESS my hand and official seal.
My COMM.EXPOOS AUG 29.1997
4Z&ae ze
4-1 SignIffure of Notary P i
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document /
Title or Type of Document: — � 6 �C¢sC-O
Document Date: Number of Pages:
Signer(s) Other Than Named Above: 74"W_ S
Capaclty(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
Individual __ Individual
Corporate.Qfficer C Corporate Officer
Title(s): ✓e ���'eF � I Title(s):
n Partner—^ Limited '- General f ❑ Partner---❑ Limited 0 General
- Attorney-in-Fact I C Attorney-in-Fact
❑ Trustee ❑ Trustee _
Guardian or Conservator WIN& ❑ Guardian or Conservator ,
0 Other; Top of tnumb here ❑ Other: Top of tnurr io here
Signer Is Representing: Signer Is Representing:
- - -- - - - ------------------------------------------------------- -
c
G 1994 National Notary Association-8236 Remmet Ave.,P.O.Box 7184•Canoga Park.CA 91309-7184 Prod.No 5907 Reorder:Call Toll-Free 1-8W-878-8827
Exhibit "A" to Regulatory Agreement
Legal Description
17361 Koledo Lane
Lot 10 of Tract No. 4301, as per map recorded in Book 177, Pages 11 and 12 of Miscellaneous
Maps, in the office of the County Recorder of said County, together with that portion of Koledo
Lane lying parallel to and adjacent to said lots, which would pass by operation of law, as vacated
by the City of Huntington Beach by Resolution No. 5353, recorded 2-15-84 as Inst.
No. 84- 065494, Official Records.
Exhibit "A" to Attachment 4
Page 1 of 1
41s1Agree:Kofedo:Attach411 210 4/9 5
RLS 95-519
i y
RECOX 1NG iyf
FNT pilffiMM MU UMVWA G
Attachment No. 4A
NO FEE DOCUMENT
Recording requested by and
When recorded, mail to:
s
City of Huntington Beach
2000 Main Street
HuntingtonBeach, CA 92648 Recorded in the county of orange, california
Gary L. Glranlville,lClerk/Recorder Attn: City Clerk II�I�LI lil+�ll�i��l�l III�� III�I�I l
NO Fee
19960164949 08 Aam 04/04/96 ,�Y
008 247300 20 17 FAT
Al2 16 7.00 45.00 0.00 0.00 0.00 0.00
REGULATORY AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON
BEACH AND ORANGE COUNTY COMMUNITY HOUSING CORPORATION
CONCERNING THE ACQUISITION AND REHABILITATION OF AFFORDABLE
HOUSING AT 17371 KOLEDO LANE WITH FUNDS OBTAINED FROM THE HOME
INVESTMENT PARTNERSHIP PROGRAM
This Regulatory Agreement is made this day of �A , 199 , by
and between the City of Huntington Beach,I municipal corporatiAthe "City"), and Orange
County Community Housing Corporation, a California public benefit corporation ("OCCHC").
RECITALS
WHEREAS, OCCHC intends to purchase a five-unit building on Koledo Lane in the
City of Huntington Beach; and
OCCHC desires that all of the Project's units be rented at prices affordable to low income
households; and
The City has received Home Investment Partnership Program funds ("HOME Funds")
from the United States Department of Housing and Urban Development ("HUD") pursuant to the
Attachment No. 4A
Page 1 of 13
4%\Agree:Koledo:AftacM\12104195
RLS 95-519
Cranston-Gonzales National Housing Act of 1990 for the purpose of expanding the supply of
decent, safe, sanitary and affordable housing far very-low and low-income persons and families;
and
OCCHC has received a loan from the City from the City's HOME Funds to support the
acquisition and rehabilitation of the Project, and the funds have been made available in order, to
help achieve financial feasibility for the Project and maximize the affordability of Project units; and
As further consideration for this funding and to further the interests of the City, City and
OCCHC have agreed to enter into and record this Regulatory Agreement. The purpose of this
Regulatory Agreement is to regulate and restrict the occupancy, rents, operation, ownership, and
management of the Project. The covenants in this Regulatory Agreement are intended to run with
the land and be binding on OCCHC and its successors,
NOW THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and
representations, and in further consideration for the aforementioned funding, OCCHC, and City
hereby agree as follows:
ARTICLE L DEFTNTITIONS
The following terms have the meanings and content set forth in this section wherever used
in this Regulatory Agreement or attached exhibits.
1.1 "AREA VIEDIAIN ENCOME" means the median income for the Orange County
Primary Metropolitan Statistical Area (PMSA), with adjustments for household size, as
determined from time to time by the U.S. Department of Housing and Urban Development
(HUD) pursuant to the United States Housing Act of 1937 as amended, or such other method of
median income calculation applicable to the City that H[U'D may hereafter adopt in connection
with said Act.
1.2 "CITY" means the City of Huntington Beach, a municipal corporation, and its
officers, officials, directors, employees, agents and authorized representatives.
1.3 "DEED OF TRUST" means the deed of trust, placed on the Property as security
for the Loan with OCCHC as trustor and the City as beneficiary, as well as any amendments to,
modifications of, and restatements of said deed of trust.
1.4 "HOME" means Home Investment Partnership Program created by the National
Affordable Housing Act of 1990•
Attachment No. 4A
Page 2 of 13
4''z\Agree:Kofedc:Attach4112104195
RLS 95-519
1.5 "LOAN" means any loan of funds provided by the City to OCCHC for the Project.
1.6 "LOAN DOCUMENTS" means collectively the Deed of Trust, Note, and this
Regulatory Agreement as they may be amended, modified, or restated from time to time, along
with all exhibits and attachments to these documents.
-1.7 "NOTE" means the promissory note executed by OCCHC in favor of the City
evidencing the Loan, which is secured by the deed of trust, as well as any amendments to,
modifications of or restatements of said promissory note.
1.8 "PROJECT" means the five (5) units of rental housing on the Property to be owned
and operated by OCCHC for Very Low-Income Households.
1.9 "PROPERTY" means the real property described in the attached Exhibit A, which is
hereby incorporated into this Regulatory Agreement by this reference.
1.10 "VERY LOW-INCOME HOUSEHOLD" means a household whose annual
income does not exceed fifty percent (50%) of the median income for the Orange County PMSA
as determined by HUD with adjustments for smaller and larger households.
2.1 "UNIT" means a housing unit in the Project.
ARTICLE 2. OCCHC'S OBLIGATIONS
2.1 COMPLIANCE WITH LOAN DOCUMENTS. OCCHC's actions with respect to
the Property and the use of Loan funds shall at all times be in full conformity with all of the
requirements of the Loan Documents.
2.2 TERM OF AGREEMENT. This Regulatory Agreement shall commence upon
execution and shall remain in full force and effect for thirty (30) years.
2.3 COMPLIANCE WITH PROGRAM REQUIREMENTS. OCCHC shall comply
with all requirements imposed on projects assisted under the HOME Program as contained in 42
U.S.C. Sections 12701, et seq., 24 C.F.R. Part 92, and other implementing rules and regulations.
Attachment No. 4A
Page 3 of 13
4LMAgree;Koledo:AttaoM4 12/04/95
RLS 95-519
' 4
ARTICLE 3. PROJECT OCCUPANCY AND RENTS
3.1 OCCUPANCY OF PROJECT. OCCHC shall limit for the full term of this
Regulatory Agreement the rental of all five (5) Units to Very Low-Income Households at no
more than the maximum rental charges set forth in this Regulatory Agreement. The Units
restricted by this Regulatory Agreement shall consist of five (5)two-bedroom units. The income
levels and other qualifications of Very Low-Income Household applicants for Units shall be
certified prior to initial occupancy and recertified yearly by OCCHC. In the event that
recertification of a Very Low-Income Household's income indicates that the income exceeds the
maximum income designated for a Very Low-Income Household, OCCHC shall adjust the
household's rent to equal the lesser of(a) thirty percent (30%) of the household's gross income or
(b) the fair market rental of the unit. In addition, OCCHC shall rent the next available Project unit
to a Very Low-Income Household.
3.2 MAXIMUM RENTAL CHARGES. The total charges for rent, utilities, and
related services to Very Low Income Household shall not exceed thirty percent (30%) of fifty
percent (50%) of Area Median Income adjusted for family size. Fifty percent (50%) of Area
Median Income for a three (3) person family shall be assumed for a two (2) bedroom unit and fifty
percent (50%) of Area Median Income for a five (5) person family for a three-bedroom unit.
Initial rents for each Unit shall be approved by the City at the time of initial occupancy of the
Project. Annual rent increases shall be based on the change in permissible rents published
annually by HUD. OCCHC may annually make any rent adjustment pursuant to the terms of this
Regulatory Agreement. At least 60 calendar days prior to increasing rents on any Unit restricted
by this Regulatory Agreement, OCCHC shall submit to the City for review and approval a written
request for such increase. Households occupying Units restricted by this Regulatory Agreement
shall be given at least 30 days written notice prior to any rent increase.
3.3 CONDOMINIUM CONVERSION. OCCHC shall not convert Project units to
condominium or cooperative ownership or sell condominium or cooperative conversion rights to
the Property during the term of this Regulatory Agreement.
3.4 NONDISCRIMINATION. OCCHC shall not discriminate or segregate in the use,
enjoyment, occupancy, conveyance, lease, sublease, or rental of Project units on the basis of race,
color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status,
source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS)
or AIDS-related conditions (ARC), or any other arbitrary basis. OCCHC shall include a
statement in all advertisements, notices and signs for the availability of Project units for rent to the
effect that OCCHC is an Equal Housing Opportunity Provider.
Attachment No. 4A
Page 4 of 13
41s1Agree:Koledo:Attach4112/44195
RL5 95-519
ARTICLE 4. PROPERTY MANAGEMENT
4.1 MANAGEMENT RESPONSIBILITIES. OCCHC is responsible for all
management functions with.respect to the Project, including without limitation the selection of
tenants, certification and recertification of household size and income, evictions, collection of
rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of
capital items, and security. The City shall have no responsibility over management of the Project.
The Site shall be occupied, used and maintained as follows:
A. Use. Each dwelling unit shall be used only for private apartment dwelling
purposes, with appurtenant facilities, and for no other purposes.
B. 5igns. All signs on the property shall conform with all ordinances and other
regulations of the City.
C. Waste. OCCHC and the occupants shall not permit or suffer anything to be done
or kept upon said premises which will increase the rate of insurance on any building, or on the
contents thereof, or impair the structural integrity thereof or which will obstruct or interfere with
the rights of other occupants, or annoy them by unreasonable noises or otherwise, nor shall any
occupant commit or permit any nuisance on the premises or fail to keep to premises free of
rubbish, clippings and trash or commit or suffer any illegal act to be committed thereon. OCCHC
shall comply with all of the requirements of all governmental authorities with respect to the
premises. If by reason of the occupancy or uses of the premises the rate of insurance on the Site
shall be increased, OCCHC shall become personally liable for the additional insurance premiums.
D. Improvements. There shall be no structural alteration, construction or removal
of any building, fence or other structure on the Site (other than repairs or rebuilding permitted
herein) without the approval of the City or the Agency and in accordance with the City Code.
E. Fa_ rking. OCCHC shall not permit the parking, storing or keeping of any
vehicle except wholly within the parking areas designated therefor. OCCHC shall not permit the
parking, storing or keeping of any large commercial type vehicle (dump truck, cement mixer
truck, oil or gas truck, etc.), or any recreational vehicle (camper unit, camper shell detached from
a private passenger vehicle, motor home, trailer, boat trailer, mobile home or other similar vehicle,
except when parked within an enclosed parking space), boats over twenty (20) feet in length or
any vehicle other than a private passenger vehicle upon any portion of the Site, including parking
spaces. OCCHC shall not permit major repairs or major restorations of any motor vehicles, boat,
trailer, aircraft or other vehicle to be conducted upon any portion of the Site, including parking
spaces, except for emergency repairs thereto and then only to the extent necessary to enable
Attachment No. 4A
Page 5 of 13
4%slAgree:Koledo:AttaoM\12/04195
RLS 95-519
movement thereof to a proper repair facility. No inoperable vehicle shall be stored or kept
anywhere on the Site. OCCHC shall have the right to remove, at the tenant's expense, any
vehicle parked, stored or kept in violation of the provisions of this Declaration. In addition, all
provisions of the Huntington Beach Municipal Code, including amendments thereto, shall apply.
F. Occupancy. Occupancy of each dwelling unit shall be restricted to occupancy
standards set forth in the Huntington Beach Municipal Code or state standards, as are effective or
as may be effective or amended. OCCHC shall not be permitted to lease or rent any dwelling unit
thereon for transient or hotel purposes. Any lease or rental agreement covering an apartment
shall provide that the terms of the lease or rental agreement shall be subject in all respects to the
provisions of this Declaration of Conditions, Covenants and Restrictions and that any failure by
the lessee to comply with the terms of such documents shall be a default under the lease or rental
.agreement. All leases and rental agreements shall be in writing. All prospective
tenants/occupants of the Site shall make application through OCCHC.
G. Inspection. To the extent permitted by law, the City of Huntington Beach and
the Agency shall have the right of entry, at reasonable business hours and upon no less than
twenty-four (24) hours advance notice, onto the Site to inspect for the need for repairs or
maintenance. Entry onto the Site or into any unit for other than emergency repairs may be made
only after such advance notice and request for entry. If request for entry is denied or the Site or
any applicable unit is unoccupied, the City or Agency may apply for an appropriate warrant or
other order from a court of appropriate jurisdiction.
H. Subdivision. No part of the Site shall at any time be owned by a cooperative
housing corporation, nor shall OCCHC take any steps in connection with a conversion to such
ownership or uses. Other than obtaining a final subdivision map on the Site and a final
subdivision public report from the California Department of Real Estate, the Developer shall not
take any steps in connection with a conversion of the Site to a condominium ownership, or with a
conversion of the Site to "timeshare" ownership.
I. Exterior Maintenance. The exterior areas of the Site shall be kept free of rubbish,
debris and other unsightly or unsanitary materials. Exterior yard areas and parking areas shall be
kept free of deterioration,,including: potholes, cracks in asphalt so as to become uneven, unsightly
surface conditions, weeds growing through asphalt. Perimeter fencing, landscaping and irrigation
system shall be routinely inspected and maintained in good condition.
Each occupant of the Site shall have the affirmative obligation to prevent what might be
considered a fire hazard or a condition dangerous to the public health, safety and general welfare,
or constitute an unsightly appearance or otherwise detract from the aesthetic and property values
Attachment No. 4A
Page 6 of 13
41.s1Agree:Ka1edo:Aftach411 2104l95
RLS 95-519
of neighboring dwelling units and properties. The following minimum performance standards for
the maintenance of buildings, yards, and landscaping shall be adhered to by the Developer:
1. Landscaping on the Site shall be absent of the following:
a. Lawns with grasses in excess of six (6) inches in height.
b. Untrimmed hedges.
C. Trees, shrubbery, lawns and other plant life dying from lack of
water or other necessary maintenance.
d. Trees and shrubbery grown uncontrolled without proper pruning.
e. Vegetation so overgrown as to be likely to harbor rats or vermin.
f. Dead, decayed or diseased trees, weeds and other vegetation.
g. Inoperative irrigation system(s).
2. Yard areas shall be maintained so as to be absent of the following:
a. Broken or discarded furniture, appliances and other household
equipment stored in yard areas for periods exceeding one (1) week.
b. Packing boxes, lumber, trash, dirt and other debris stored in yards
for unreasonable periods in areas visible from public property or
neighboring properties.
C. Unscreened trash cans, bins or containers siored for unreasonable
periods in areas visible from public streets and common areas.
3. No building, wall or fence may be left in an unmaintained condition so that
any of the following exist:
a. Buildings abandoned, boarded up, partially destroyed or left
unreasonably in a state of partial construction.
Attachment No. 4A
Page 7 of 13
41s''Agree:Koledo:Attach4112104i95
RLs 95-519
b. Unpainted buildings or buildings with peeling paint in such a
condition as to:
i. Cause dry rot, warping and termite infestation; or
ii. Constitute an unsightly appearance that detracts from the
aesthetic or property values of neighboring properties.
C. Broken windows, constituting hazardous conditions and/or inviting
trespassers and malicious mischief.
d. Damaged garage doors that may become inoperative or unsafe to operate.
e. Graffiti remaining on any portion of the property for a period exceeding 72
hours.
f Building interiors and exteriors shall be maintained to meet standards of
similar residential property in the City of Huntington Beach.
J. Agency and City Right of Review and Enforcement. The City of Huntington
Beach ("City") and the Agency shall be made parties to this Declaration for the limited purpose as
specified herein as follows:
l. Changes or amendments to this Declaration must be submitted for City and
Agency review and approval.
2. In the event of inaction by the Developer, the City and Agency are hereby
granted expedient power to enforce all provisions of this Declaration including, but not limited to,
the maintenance of the Improvements and all yards, buildings and landscaping areas within the
Site.
3. The City and Agency are hereby granted the express power to enforce all
laws and ordinances of the State of California and/or the City on yards, structures, and private
parking areas within the Site. Nothing within this Declaration, however, shall be construed as
imposing an obligation or requiring the City or Agency to enforce any provision thereof.
4. The City and the Agency shall be given prior written notice of any
proposed amendment to this Declaration. Such notice shall be given by mailing a copy of the
precise language of the proposed amendment to the City of Huntington Beach, c/o City Clerk,
Attachment No. 4A
Page 8 of 13
4Ls\Agree:Koledo:Attach4112/44/95
RLS 95-519
together with a letter of transmittal explaining the proposed change in general terms. The City
and the Agency shall have an opportunity to review and comment upon the proposed amendment
for a period of not less than forty-five (45) days prior to the effective date of any such proposed
amendment. If the City or Agency fail to respond within forty-five (45) days, the proposed
change(s) and amendment(s) shall be deemed approved, unless that time period is extended by
mutual agreement of all parties.
K. City of Huntington Beach Right of Entry for Code Enforcement, Repair and
Traffic Regulation.
1. Right of Entry. To the extent permitted by law, OCCHC hereby
acknowledges and intends and thus grants to the City, through the City's duly authorized agents
or employees, the right to enter upon the Site for the foIIowing purposes:
a. Inspection, maintenance and repair of the Site.
b. Enforcement of local traffic and/or parking regulations.
2. Reimbursement of City Expenditures. All costs and expenses incurred by
the City arising out of its inspection, maintenance and repair of the Site, as provided hereinabove
("City Maintenance Costs"), shall be charged as an expense of the Developer and shall be paid
within ten (10) days of receipt of an invoice for same.
4.2 INSPECTION AND RECORDS. OCCHC shall maintain records which clearly
document OCCHC's performance of its obligations to operate the Property under the terms of this
Regulatory Agreement. OCCHC shall submit any records to the City within ten (10) business
days of the City's request. OCCHC shall permit the City to enter and inspect the Project for
compliance with obligations under this Regulatory Agreement upon 24 hours advance notice of
such visit by the City to OCCHC and to tenants of any inspected Project units.
4.3 FEES, TAXES, AND OTHER LEVIES. OCCHC shall be responsible for the
payment of all fees, assessments, taxes, charges and levies imposed by any public authority or
utility company with respect to the Property, and shall pay such charges prior to delinquency.
However, neither Borrower nor the Partnership shall be required to pay and discharge any such
charge so long as (a) the legality thereof is being contested diligently and in good faith and by
appropriate proceedings, and (b) if requested by Lender, Borrower or the Partnership deposits
with Lender any funds or other forms of assurance Lender in good faith from time to time
determines appropriate to protect Lender from the consequences of the contest being
unsuccessful.
Attachment No. 4A
Page 9 of 13
41s1Ag ree:Koledo:Attach4112104/95
RLS 95-519
4A INSURANCE. OCCHC shall maintain insurance in full force and effect during the
term of this Agreement in an amount at least equal to the replacement cost of the Project.
4.5 COMPLIANCE WITH HOME PROGRAM REQUIREMENTS. Borrower shall
comply with all requirements imposed on projects assisted under the HOME program including
24 C.F.R. Part 92, and other implementing rules and regulations.
ARTICLE 5. GENERAL PROVISIONS
5.1 SUBORDINATION. This Regulatory Agreement shall be subordinated in priority
only to the liens created by the deeds of trust securing the construction and permanent loans for
the Project, and other liens and encumbrances otherwise approved in writing by the City in its'sole
and absolute discretion.
5.2 DEFAULT AND REMEDIES. In the event of any breach of any agreement or
obligation under this Regulatory Agreement by OCCHC, the City shall give written notice to
OCCHC of such breach. OCCHC shall have an opportunity to cure such breach within thirty (30)
days of its receipt of such written notice or such longer period of time if OCCHC is diligently
undertaking to cure such breach. If OCCHC fails to perform a timely cure of the specified breach,
the City may proceed with any or all of the following remedies upon OCCHC's failure to cure:
A. Bring an action in equitable relief seeking the specific performance by
OCCHC of the terms and conditions of this Regulatory Agreement, and/or
enjoining, abating, or preventing any violation of said terms and conditions,
and/or seeking declaratory relief-,
B. - After notice provided for herein, make such repairs or replacements to the
Property and Project as are necessary and provide for payment thereof, or
C. Pursue any other remedy allowed at law or in equity.
5.3 NON-LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS. The City
shall not be personally liable to OCCHC for any obligation created under the terms of this
Regulatory Agreement except in the case of fraud or willful misconduct by such person.
5.4 GOVERNING LAW. This Regulatory Agreement shall be interpreted under and
be governed by the laws of the State of California, except for those provisions relating to choice
of law and those provisions preempted by federal law.
Attachment No. 4A
Page 10 of 13
4WAgree:Ko1edo:Attach4112104195
RLS 95-519
5.5 REGULATORY AGREEMENT CONTROLS. In the event that any provisions of
this Regulatory Agreement and any Loan Document conflict, the terms of the Regulatory
Agreement shall control.
5.6 ATTORNEYS' FEES AND COSTS. In the event that any legal or administrative
action is commenced to interpret or to enforce the terms of this Regulatory Agreement, each
party shall bear its own attorneys' fees and costs. The prevailing party in any such action shall not
be entitled to recover any attorneys' fees and costs incurred in such action.
5.7 TIM.E. Time is of the essence in this Regulatory Agreement.
5.8 CONSENTS AND APPROVALS. Any consent or approval of the City required
under this Regulatory Agreement shall not be unreasonably withheld. Any approval must be in
writing and executed by an authorized representative of the City.
5.9 NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands
and communications between OCCHC and the City shall be sufficiently given and shall not be
deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt
requested, or delivered personally, to the principal offices of OCCHC and the City as follows:
City: City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attention: Office of City Administrator
OCCHC: Orange County Community Housing Corporation
1833 E. 17th Street, Suite 207
Santa Ana, CA 92701
Attention: Executive Director
5.10 BINDING UPON SUCCESSORS. All provisions of this Regulatory Agreement
shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-
in-interest, transferee, and assigns of OCCHC, the Partnership and the City, and shall run with the
land for the full term of this Regulatory Agreement, regardless of any assignment, payment,
prepayment, expiration, extinguishment of any Loan or Note, any reconveyance of any Deed of
Trust, or any conveyance or transfer of the Property.
5.11 RELATIONSHIP OF PARTIES. The relationship of OCCHC, and the City for
this Project during the term of this Regulatory Agreement shall not be construed as a joint
Attachment No. 4A
Page 11 of 13
4Ls\Agree:Koledo:AttacM4 12/04/95
RLS 95-519
venture, equity venture, or partnership. Except as the City may specify in writing, OCCHC shall
have no authority to act as an agent of the City or to bind the City to any obligation.
5.12 WAIVER. Any waiver by the City of any obligation in this Regulatory Agreement
must be in writing. No waiver will be implied from any delay or failure by the City to take action
on any breach or default of OCCHC to pursue any remedy allowed under this Regulatory
Agreement or applicable law. Any extension of time granted to OCCHC to perform any
obligation under this Regulatory Agreement shall not operate as a waiver or release from any of
its obligations under this Regulatory Agreement. Consent by the City to any act or omission by
OCCHC shall not be construed to be a consent to any other or subsequent act or omission or to
waive the requirement for the City's written consent to future waivers.
5.13 AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to
this Regulatory Agreement must be in writing, and shall be made only if executed by both
OCCHC and the City.
Attachment No. 4A
Page 12 of 13
4\s\Agree:Koledo:Attach4112/04/95
R LS 95-519
5.14 SEVERABILITY. Every provision of this Regulatory Agreement is intended to
be severable. If any provision of this Agreement shall be held invalid, illegal, or unenforceable by
a court of competent jurisdiction, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired.
IN WITNESS WHEREOF, the parties hereto have executed this Regulatory Agreement
by and through their authorized officers as of the date first above written.
OCCHC. CITY:
Orange County Community Housing City of Huntington Beach,
Corporation, a California Non Profit a California municipal corporation
Public Benefit Corporation
/ 1
BY: /
0
AU-EV Gam. �� �N Mayor
Its: �K�CuQ"LU� rjc2.£ct`rR.
By: _ ATTEST:
Its:
City Clerk
J[NITIATED AND APPROVED APPROVED AS TO FORM:
sty-_AlWnistrator �, ,"City Attorney P-0—
REVIEWED AND APPROVED:
&J, 1 iq
-
Director of Economic Development
Attachment No. 4A
Page 13 of 13
4LstiAgree:Koledo:AttacM\12104J95
RLS 95-519
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of
County of 2�
On ZQQ4 L before me,
Dal - Name and Title llicer(e.g..-Jane Doe,Clary Publlc')
personally appeared ,
Narne(si of Signers)
C71—
Di'S'ersonally known to me— to be the person(
whose names)tsfare subscribed to the within instrument
and acknowledged to me that-#a W&Wthey executed the
MAYBRICE L.JOHNSON same in#��their authorized capacity(WW, and that by
comm.#991835
z = @ Notary Pub9c—Califomfa their signatureu on the instrument the person(,
ORANGE COUNTY or the entity upon behalf of which the persons) acted,
My Comm.Expires MAY 11,1997 executed the instrument.
WITNESS my hand and official seal.
�T Sig re of Notary Pubic
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: Z 73
Cl
Document Date: Numberof Pages: 13
Signer(s) Other Than Named Above: _P1?,.�14 *A$ l?;
Capacity(ies) Claimed by Signer(s)
Signer's Name: L&M - ju-e� Signer's Name: c 1
a
❑ Individual I ❑ Individual
❑ Corporate Officer G Corporate Officer
Title(s): Title(s):
❑ Partner—= Limited - General ❑ Partner—= Limited = General
- Attorney-in-Fact ❑ Attorney-in-Fact
Trustee _ ❑ Trustee
C Guardian or Conservator . n Guardian or Conservator `-•
"then: of thumb Mere Other: + .Dp o'the r-D nere
Signer Is Representing: Signer Is Representing:
t.
0 1994 National Notary Association•B235 Remmat Ave.,P.O.Box 7184•Canoga Park,CA 91309.7184 Pod.No.5907 Reorder:Call Toll-Free 1.800-876-0827
•-CALWORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of
County of �r
On /aQ_//9A`9,_,"_ before me,442�
Date Name and Titte of Oaicer'u ."ane Doe.Notary P je)
personally appeared All—ke l Ar,
Name(s)of Signarls)
personally known to me-OR- ice to be the person(&)
/ whose name* is/;tee subscribed to the within instrument
and acknowledged to me that heAW;o 4ey executed the
same in hisEharAheir authorized capacity0es), and that by
hi ir signature(e)on the instrument the person(s),
or the entity upon behalf of which the person{) acted,
executed the instrument.
EUTABJETHEHRING WITNESS my hand and official seal.
W` COMM.#1003397
Z ;'a.�,r _ Notary Public—Cartfomic
ORANGE COUNTY
My Comm.Expires AUG 29.1997 Signature of tbtary Public
OPTIONAL
Though the information below is not required by law,it may prove valuable to persons retying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: 04 " /727/ �
Document Date-. _7�g.5� Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: ` �'� Signer's Name:
❑ u dividual Individual
Corporate Officer - -�- / Corporate Officer
Title(s): 4'X�e ✓e �� Y Title(s):
Partner—C Limited C General ❑ Partner— Limited '_' General
C Attorney-in-Fact ❑ Attorney-in-Fact
❑i Trustee ❑ Trustee _
C Guardian or Conservator -7�7
- Guardian or Conservator
r Other: Other: Top of thumb here
Signer Is Representing: I Signer Is Representing:
0 1994 Natwnal Notary Associawn•8236 Remmet Ave..RO-Box 7184•Canoga Pam,CA 91309.7184 Prod.No.5907 Reorder:Call Tols-Free 1-800-876-SB27
Exhibit "A" to Regulatory Agreement
Legal Description
17371 Koledo Lane
Lot 9 of Tract No. 4301, as per map recorded in Book 177, Pages 11 and 12 of Miscellaneous
Maps, in the office of the County Recorder of said County; together with that portion of Koledo
Lane lying parallel to and adjacent to said lots, which would pass by operation of law, as vacated
by the City of Huntington Beach by Resolution No. 5353, recorded February-15, 1984, as
Instrument No. 84-065494, Official Records.
Dated: December 23, 1994
Exhibit "A" to Attachment 4A
Page 1 of 1
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RL5 95-519
Attachment No. 5
SCOPE OF WORK
The projects are two 5-unit multifamily housing developments located at 17361 and 17371
Koledo Lane, and is composed entirely of two bedroom apartments that are in average condition.
Improvements planned include the rehabilitation of both the interior and exterior of the buildings.
HOME funds are being provided for the acquisition of these properties. OCCHC is rehabilitating
the properties with other funds.
All rehabilitation work will conform to Housing Qualify Standards and all other applicable
building codes, standards, and regulations.
Attachment No. 5
Page 1 of 1
4's'-_ggree:Ko1edo:AUach5'%12.4 95
Us 95-519
Y
Attachment No. 6
SCHEDULE OF PERFORMANCE
I. GENERAL PROVISIONS
1. Execution of Agreement by City. The
City shall approve and execute this Within thirty(30) days after the date of
Agreement and shall deliver one (1) execution and submission of five (5) copies of
copy thereof to the Developer. this Agreement by the Developer.
2. Submission of Development Proposal
Developer submits its Development Completed.
Proposal to the Agency.
3. Prpparation of NEPA Documentation Completed.
II. REHABILITATION PHASE
4. Commencement of Construction.
Developer shall commence Within forty-five days after the City's approval
construction of property rehabilitation. of Agreement.
5. Completion of Construction.
Developer shall complete construction Subject to any permissible delays, Developer is
of all of the rehabilitation to use due diligence to complete the project
improvements. within twelve (12) months after the start of the
rehabilitation improvements; however, the
Developer may request up to three (3) one (1)
month extensions to be granted by the
Director of Special Projects. Approval of
such three extensions (but no other
extensions) is not to be unreasonably withheld;
provided that, notwithstanding the foregoing,
construction shall be completed
Attachment No. 6
Page 1 of 2
4's"G:Agrec:Koledo:att4ch6l]2.4:95
RLs 95-519
no later than eighteen (18) months after the
earlier of(i) the commencement of the
rehabilitation improvements, or (ii) the time
established in this Agreement for the
commencement of construction of
rehabilitation improvements.
III. OPERATIONS PHASE
6. Disbursf, nt of HOME Funds.
The City shall disburse the Loan. One payment for acquisition; progress
payment schedule for the rehabilitation.
7. Submission of Income Certification.
Within thirty (30) days after execution of the
Agreement; and annually thereafter to be
submitted per HOME regulations on July 1,
for the duration of the Agreement.
Attachment No. 6
Page 2 of 2
4-s..G:Agree-K oledo:Attachsl1214;9 5
RL5 95-519
1
Attachment No. 7
CITY OF HUNTINGTON BEACH
HOME Investment Partnership Program
RENTAL PROPERTY ACQUISITION GUIDELINES
HOME regulations require that a participating city adopt basic guidelines for the acquisition of
existing rental property for use as HOME-funded affordable housing. The HOME program is
strictly targeted for low income households, which is expressed both through household income
limits and rental rate restrictions, The full text of applicable HOME regulations are provided as
attachments to these guidelines and are summarized as follows:
Minimum Standards
]. Costs eligible for HOME assistance are property acquisition costs, relocation costs, "hard"
and "soft" costs directly related to the project.
2. The use of Federal assistance requires the developer to comply with Davis-Bacon
standards.
3. At a minimum, 90% of the units must be occupied by households earning no more than
60% of the County median as adjusted for household size. Based on 1993 HUD income
information, the maximum allowable income for a one person household is approximately
$23,760, the two person household income is $27,120, the three person household income
is $30,480 and the four person household income is $33,900.
4. At least 20% of the project units must be occupied by households earning no more than
50% of the County median as adjusted for household size. (These units can be used in
satisfying the requirement that 90% of the units be income restricted.) The 1993 HUD
income standards indicate that a one person household at 50% of the County median
income would earn $19,800, increasing to $28,250 for a four person household.
5. 100% of the units must have rents which do not exceed 30% of 65% of the County
median; however, at least 20% of the units must bear rents not greater than 30% of 50%
of the County median. Rents can be lower, but in all cases, HUD regulations at 24 CFR
92.216 must be strictly adhered to.
6. The duration of the affordability covenants varies depending on the level of assistance
provided-to the project. For example, if the assistance is in excess of$40,000 per unit, the
Attachment 7
Page 1 of 7
4s'KoledwAttaohT:12-'04 95
RLS 95-519
minimum affordability period is fifteen (15) years. More favorable terms will be granted
for longer affordability periods (i.e., 30+ years).
7. A project may contain multiple sites. In order to be considered as a single "project," the
sites must be under common ownership and management, and must be located within a
four block area.
8. Monitoring of a project for compliance with HOME regulations is mandatory and is
governed by HOME regulations at 24 CFR 92.504(e).
SUBMISSION REQUIREMENTS
The City intends to review developer submissions in two stages. The first level of evaluation is a
review of the developer qualifications and the conceptual scope of the proposed project. The
second component of the evaluation is an analysis of the proposed project's deal points.
Developers selected at the conclusion of this two stage process will be awarded Exclusive Rights
to Negotiate related to the identified project site.
It is the City's intent to analyze each of the components separately, in a sequential manner.
Initially, it will only be necessary for responding developers to submit the information requested in
Attachment 1 (5 copies). If the City evaluation indicates that the developer meets or exceeds the
defined criteria, the proposal will then be processed further with additional analysis and
negotiation.
Proposals should be submitted to:
HOME Program Coordinator
City of Huntington Beach
Special Projects Division
2000 Main Street, 4th Floor
Huntington Beach, CA 92648
The City of Huntington Beach reserves the right to reject any and all proposals at its sole
discretion. In the event that the City chooses a particular proposal for approval by the City
Council, the City reserves the right to further negotiate the terms of the proposal, and may, at its
discretion, require a good faith deposit as a means of defraying the City's costs during the
deposition process.
Attachment 7
Page 2 of 7
4's'Koledo:.AttachT.12;04 95
RIS 95-519
DEVELOPER QUALIFICATIONS
SUBMISSION REQUIREMENTS
In reviewing the developer qualifications, the City will consider the responses to the following
questions:
1. Provide a narrative description of the proposed project. This should include an
identification of the proposed site, the ownership of the site, and a conceptual
acquisition and/or rehabilitation plan.
2. Describe the developer's three most relevant projects. Provide photographs and a
brief description of these projects, including date, location, size, rehabilitation
costs, specific role of the developer, etc. Also include a local government
reference (name, title and telephone number) for each project cited above.
3. Describe the type of legal entity with whom the City would contract. Identify the
person in charge of negotiations, and key personnel who will be involved in
decision making.
4. Identify the members of the project team, including key consultants such as legal
counsel, architects, etc. Specify the relevant experience of the team members and
key consultants.
5. Describe the developer's previous experience in the on-going management,
operation and ownership of affordable housing projects.
6. Identify the anticipated long-term ownership structure of the proposed project.
7. Present evidence that the developer has the financial capability to carry out the
proposed commitments. The preferred evidence is the two most recent audited
financial statements of the developer. However, other evidence may be submitted
at the developer's discretion. Also include the method of long-term financing both
debt and equity, if any, for the three most relevant projects listed in "T' above. TO
BE SUBMITTED CONFIDENTIALLY UNDER SEPARATE COVER. (Three
copies only).
Each project will be evaluated against several criteria and will be given points based on those
criteria.
Attachment 7
Page 3 of 7
4s'Koledo:AttachT.12 04'95
RLS 95-519
AFFORDABLE HOUSING PROJECT RATING SHEET
Attachment 7
Page 4 of 7
4's Kolcdo:Attach7s12-04 95
RLS 95-519
Rating Sheet, cont.
Developer Profile
Approved Community Housing Development Organization 10
("CHDO")
Nonprofit housing developer 5
For-profit developer 5
Women or minority owned business 5
Long-Term Affordability Controls
Length of Affordability*
30 10
20-30 years 7
15-20 years 5
5-15 years 3
TOTAL POSSIBLE POINTS: 100
*Dependent upon the Source of Funds
Attachment 7
Page 5 of 7
41s\Koledo:Attach7t12;64?95
RLS 95-519
Affordable Housing Project Rating Sheet
Name of Project: 17361 and 17371 Koledo Lane
Address:
Criteria Points
Project Location
HUD enhancement area 10
Redevelopment project area 7
Low-mod census tract 5
City housing survey area rated "Poor" 3
Household Income Served
Number of units & % of project reserved 10
for low or very low income persons
Number of units and % of project reserved for
special needs groups (e.g. seniors)
Number of units and % of project reserved for 5
large families (3+ bedrooms)
Attachment 7
Page 6 of 7
41s'kKolcdo:Attach7112!04r95
RLS 95-519
s '
Rating Sheet, cant.
Developer Profile
Approved Community Housing Development Organization 10
("CHDO")
Nonprofit housing developer 5
For-profit developer
Women or minority owned business
Long-Term Affordability Controls
Length of Affordability*
30+ 25
20-30 years
TOTAL POCNTS: 80
*Dependent upon the source of funds
Note: *Additional consideration will be given to projects based on average unit size, cost, overall
density of the project, as well as the cost of rehabilitation and other related expenses
.A minimum of 40 points is required for any project to merit further consideration
Attachment 7
Page 7 of 7
4's kolcdoAttachT:12:'04;'95
RLS 95-519
S
l
Attachment No. 8
HOME INVESTMENT PARTNERSHIP PROGRAM
MULTI-FAMILY REHABILITATION
LOAN PROGRAM
I. General Information
A. Purpose
B. Assistance
C. Availability of Funds/Alternative
CDBG Loan Program
D. Goals
II. Guidelines
A. Property Eligibility Requirements
and Improvements
B. Applicant Eligibility
C. Loan Conditions
III. Procedures
A. Intake Activities
B. Inspection
C. Contractor Selection
D. Financial Review
E. Loan Closing
F. Construction Management and
Disbursement of Funds
G. Loan Collection
Attachment No. 8
Pagel of 21
41slAgree:Koledo:AttachKI VO4M
RLS 9 t-t 19
NEIGHBORHOOD ENHANCEMENT PROGRAM
MULTI-FALMILY RENTAL HOUSING REHABILITATION LOANS
1. GENERAL INFORMATION:
A. Purpose
To provide multi-family rental property owners with deferred payment and low
interest rate loans to upgrade existing substandard apartment units. Mandated
goal of the HOME Program is to improve and preserve affordable housing for low
and very low income families.
B. Assistance
The City of Huntington Beach offers rental owners Deferred Payment Loans to
rehabilitate their properties. Deferred Payment Loans may be obtained for up to
50% of the total approved cost of rehabilitation. An average of$5,000 for S.R.O.
and zero bedroom, $6,500 for one bedroom, $7,500 for two bedrooms and $8,500
for three plus bedrooms will be loaned and the property owner is expected to
"match" these public funds by securing private financing for the remaining 50% of
rehabilitation costs. These Deferred Payment Loans require no payments to be
made, no accrual of interest, and no fees to be paid until such time as the rental
property building is sold or title transferred. The DPL then becomes due and
payable and a one-time 5 percent fee is assessed. The minimum average financing
available is $1,000 per unit.
Below Market Rate Loans may also be obtained under the HOME Rental
Rehabilitation Program for the cost of rehabilitation. An average of$5,000 for
S.R.O. and zero bedroom, $6,500 for one bedroom,•$7,500 for two bedrooms and
$8,500 for three plus bedrooms will be loaned with HOME Rehabilitation funds.
The minimum average financing available is $1,000 per unit and the interest rate
and terms are negotiable.
The program operates on a City-wide basis; however, priority will be given to
projects located in the various neighborhood enhancement areas.
Affordability covenants will be required in all cases, as outlined in HOME Program
regulations at 24 CFR 92.252.
Attachment No. 8
Page 2 of 21
4''-s'_1gee:Kn1edo:AttachWl 12M4:95
RLS 95.519
C. Availability of Funds/Alternative CDBG Loan Program
When the HOME Rental Rehabilitation Grant funds are fully committed, an
alternative Rental Rehabilitation Loan Program will be made available to interested
property owners. The program will utilize CDBG funds for differed payment loans
and matching funds at 6% interest rate. Although section 8 certificates are not
involved, the City will require that 90% of the units following rehabilitation will be
rented to low and very low income households. This element is binding by way of
the owner certification agreement between the City and property owner.
The CDBG Rental Rehabilitation Program will follow the same guidelines as
outlined in the Rental Rehabilitation Loan Program.
D. Goals
Cooperation between public agencies and the private sector is vital to meeting the
rental housing needs of lower and moderate income families in the City of
Huntington Beach. One of the ways to meet these needs to provide low-or no
interest loans to encourage multi-family rental property owners to rehabilitate their
properties and increase the supply of decent affordable housing for low and
moderate income families while preserving existing housing stock and revitalizing
old neighborhoods.
II. GUIDELINES
A. Property Eligibility Requirements and Improvements
Deferred Payment Loans (DPL) and Below Market Rate Interest Loans (BMRI)
are available to multi-family rental property owners of any income range on a City-
wide basis; however, priority will be given to projects located in a neighborhood
enhancement area. The property must meet the following criteria:
1. Be in need of repairs which meet the Building and Property.Rehabilitation
Standards. Existing nonconforming uses and/or code violations must be
remedied as a top priority of the Rental Rehabilitation Loan.
2. At least 90% of the units are occupied by very low income families.
3. Eligible improvements include, but are not necessarily limited to, the
following:
a. Additions and alterations to increase the livability or usefulness of
existing structures, such as rooms, porches, stairways, closets,
bathrooms, and entrances. Garages may also be considered eligible
Attachment No. 8
Page 3 of 21
4's Agrce:Koledo Attach&12:`04 95
RLS 95-519
particularly in situations where off-street parking codes are not
being met.
b. Exterior work to help preserve or protect structures, such as
painting, roofing, siding, and property enhancements, such as
landscaping, sidewalks, and fences.
C. Interior work to make a structure more livable, such as painting,
papering, plastering, new flooring, and tile work.
d. Repairs, restoration, or replacement of important parts of
structures, such as heating systems, plumbing systems, septic tanks,
electrical wiring and service, structural and foundation repairs, and
built-in kitchen appliances in residential structures.
e. Fumigation and treatment of terminate and pest control.
f Energy saving repairs and devices (solar heating, insulation,
window caulking, etc.)
g. Modifications which aid the mobility of the handicapped and
elderly.
h. All improvements must be physically attached to the property and
permanent in nature.
4. The following improvements are not eligible:
Barbeque Pits
Bathhouses
Burglar Alarms
Burglar Protection Bars
Dumbwaiters
Fire Extinguishers
Greenhouses (except commercial greenhouses)
Hangars (airp)ane)
Kennels
Kitchen appliances not including stoves which are designed and
manufactured to be free-standing and are not built-in and
permanently affixed as an integral part of the kitchen in a residential
structure
Outdoor Fireplaces or Hearths
Penthouses
Photo Murals
Radiator Covers or Enclosures
Attachment No. 8
Page 4 of 21
4'sAgree:Ko1edo:attach8A2 04i95
RLS 95-519
Stands
Steam Cleaning of Exterior Surfaces
Swimming Pools
Television Antennae
Tennis Courts
Valance of Cornice Boards
Waterproofing of a structure by pumping or injecting any substance in the
earth adjacent to or beneath the basement or foundation or floors
5. After rehabilitation, projects must at least meet Section 8 Housing Quality
Standards for Existing Housing (HQS).
B. Applicant Eligibility
BXIRI loans are available only to applicants of legal age and having the capacity to
competently enter into financial and contractual agreements. The borrower must
own the property to be rehabilitated. The following criteria shall apply to applicant
eligibility:
1. Length of Ownership - The unit must have been owned by the applicant at
least one year prior to the date of application for a loan. Owners may be
exempted from this rule if, in the opinion of the Rehabilitation Manager and
Program Manager, special benefits to the designated Neighborhood
Enhancement Area will result from the loan activity. In the case of a
CHDO, or other eligible nonprofit, site control is required, but the length
of ownership may be less than one year.
2. All persons on title to the property must sign promissory note and deed of
trust.
3. If applicant's property is on a land lease basis, the lease must be for a fixed
term which expires no less than six months after the maturity date of the
loan.
4. Credit history, income to debt ratio, and employment status are reviewed
and verified by the bank contracted by the City. The bank advises the City
and participants as to approval or rejection of applicant.
5. Owner must be able to demonstrate a 20% before - rehabilitation equity
investment in the property based upon a City-ordered independent
appraisal.
6. Owner must utilize an approved private lender, or demonstrate personal
resources, to finance any remaining amount of the total approved
Attachment No. 8
Page 5 of 21
4 sL4gree:Ko1edo:Attach8112104'95
RL5 95-519
rehabilitation costs. (Owner may participate in the City's regular CDBG
Rental Rehabilitation Program to finance the remaining 50%.)
C. Loan Conditions
1. City Conditions:
a. As incorporated into the Fair Lending Notice part of the application
package, the City as lender must comply with the Federal Equal
Credit Opportunity Act and California Housing Financial
Discrimination Act of 1977.
b. The City must comply with the Fair Credit Reporting Act which
stipulates and guarantees the applicant's privacy and right to have
all information regarding the loan transaction kept in a confidential
manner.
C. As included in the Lead Paint Warning part of the loan application
packet, the U.S. Department of Housing and Urban Development
requires that the City advise applicant of the dangers of lead base
paint.
2. Participant Conditions:
a. The specific terms and conditions for Rental Rehabilitation Loans
(DPL and BIVIRI) are incorporated in the mortgage or other
security instruments, as applicable, and the Promissory Note as
required by the pertinent documents.
b. Civil Rights
The participant shall not discriminate upon the basis of sex, age,
race, creed, color, class, national origin, or ancestry in the sale,
lease, rental, use, occupancy, and awarding of contract of the
property to be rehabilitated with the assistance of housing
rehabilitation loans.
Attachment No. 8
Page 6 of 21
4s`tlgrec:Kolcdo:Attach8'.12 04-95
RLS 95.519
C. Use of Proceeds
The participant shall agree to use the loan proceeds only to pay for
costs of services and materials necessary to carry out the
rehabilitation work as detailed in the Work Write-Up for which the
loan will be approved.
d, Inspections
The participant shall permit inspections by the City of Huntington
Beach of the property to be rehabilitated with the assistance of the
Rental Rehabilitation Loan for compliance with the Building and
Property Rehabilitation Standards of the City. The participant shall
also permit all other inspections deemed necessary by the
Department of Community Development/Bu i I ding& Planning
Division regarding the property and the rehabilitation work.
e. Completion of Work
The participant shall assure that the rehabilitation work shall be
carried out promptly and efficiently through written contract
awarded after review by the City's Housing Rehabilitation Loan
Program and prior written approval by the Rehabilitation/Manager.
f. Ineligible_Contractors
The participant shall agree not to award any contract for
rehabilitation work to be paid for in whole or in part with the
proceeds of the housing rehabilitation loan to any contractor who,
at the time, does not meet standards of the Housing Rehabilitation
Program as an eligible contractor,
g. Records
The participant shall keep such records as may be required with
respect to the rehabilitation work performed with the assistance of a
housing rehabilitation loan: Long-term monitoring requirements
are mandatory as specified in 24 CFR 92.504.
h. Interest of Public Body
The participant shall allow no member of the governing body of the
City of Huntington Beach who exercises any functions or
responsibilities in connection with the administration of the Housing
Rehabilitation Program to have any interest, direct or indirect, in
the proceeds of the Rental Rehabilitation Loan or in any contract
entered into by the participant for the performance of work
financed, in whole or in part, with the proceeds of the loan.
Attachment No. 8
Page 7 of 21
4 s.jlgree:Koledo:Attach811204 95
RLS 95.519
i. Bonus Commission or Fee
The participant shall not pay any bonus, commission,.or fee for the
purpose of obtaining approval of the loan application.
j. Securing Bids for Construction Work
A participant may-.
l. Negotiate a contract with an approved contractor of his/her
choice, provided that the contract amount does not exceed
the market rate for the services provided as determined by
the Rehabilitation Manager.
2. Select an approved contractor of their choice for
competitive bidding.
k. Preservation of the Security
The participant shall maintain the property during the term of the
housing rehabilitation loan.
1. Hazard Insurance
The.participant shall maintain fire and extended coverage on the
property at least to the value of indebtedness and keep property
taxes current during the term of the housing rehabilitation loan.
M. Rent Calculations
Affordable rents must be set and maintained as required by HOME
Program regulations at 24 CFR Part 92.252.
n., Owners must sign the owner certification form and abide by the
agreement for the specified period of time.
D. Loan Amount Determination
l. The maximum amount of any Rental Rehabilitation loan is determined by
application of the following criteria-
a. An average loan grant per unit is $5,000 for S.R.Q. and zero
bedroom, $6,500 for one bedroom, $7,500 for two bedroom and
$8,500 for three plus bedrooms, not to exceed any maximums set
by HUD. Loan will cover cost of repair and fees appurtenant to the
property rehabilitation (work performed in compliance with a work
write-up and Building and Planning fees). :Maximum loan amounts
funded with Multi-Family Rental Rehabilitation funds may be
increased only upon review by the HOME Program Manager
and/or the Rehabilitation Manager.
Attachment No. 8
Page 8 of 21
4sukgree:KoledwAttach8112 04 95
R1.S 95-519
l
,7
b. An amount not to exceed the fair market value of the property at
the time of application, minus the amount of the existing
indebtedness on the property.
2. Terms
a. Terms and repayment may be negotiable. In some cases, repayment
of the loan will be deferred until the property is sold or title
transferred. At such time, the entire principal amount of the loan is
due and payable plus a nominal one-time only S percent interest
assessment.
b. The entire amount of the Deferred Payment Loan will be placed as
a recorded lien on the property.
3. Allowable Costs
a. All costs relative to the loan processing (credit reports, lot book
reports, monthly collection costs, and record keeping by lending
institution) are paid by the Program; however, if a participant
makes application for the loan and allows a period of time to pass
which results in the need for processing the applications again,
participant must pay all processing costs. Said costs may be paid
for out of loan proceeds once the loan is funded.
b. Specific costs covered by the Rental Rehabilitation loan include
repairs necessary to correct violations or soon to be violations of
the Building and Property Rehabilitation Standards and work
consistent with objectives of the Neighborhood Enhancement
Program as noted in the Work Write-Up.
C. Specific costs not covered by the Rental Rehabilitation loan include,
but are not necessarily limited to, the following:
l. Materials, fixtures, or equipment of a type or quality which
exceeds that customarily used in properties of the same
general type as the property to be rehabilitated.
2. Free standing appliances other than stoves, unless the need
is justified by medical verification.
3. Purchase, installation, or repair of home furnishings.
4. Reimbursement for owner's personal labor.
Attachment No. 8
Page 9 of 21
4's1r\gree:Ko1cdo:Attach8':11-'005
RLS 95-519
S. Reimbursement for improvements as noted in Guidelines,
Section A-4 (Ineligible Improvements).
d. The total cost of all general property improvements (non-code
violations, or potential violations), must not exceed 50% of the
total loan amount.
E. Funding for the City of Huntington Beach HOME Rental Housing
Rehabilitation Program has been obtained from the U. S. Department of
Housing and Urban Development (HUD). The program will be operated
under HUD regulations and such other requirements as determined by the
City of Huntington Beach.
III. PROCEDURES:
This section sets forth the steps which are to be followed in the processing of a
Rental Rehabilitation loan.
A. Intake Activities
1. Initial Screening
a. Property owner contacts program.
b. Rehabilitation Manager obtains income and property
information from the property owner in order to make a
preliminary determination of eligibility. Information
collected includes the following:
• Applicant's name, address, and telephone number
• Location of property
* Statement of ownership
0 Number of units and bedrooms per unit
• Number of tenants in the applicant's rental building
• Number of low income tenants in the applicant's
rental building
General household income range
Attachment No. 8
Page 10 of 21
4s':agree:Ko1edo:Attaeh8.:12 0495
RLS 95.519
• Monthly rental rate per unit
• Basic type of home improvements desired
C. Applicants not meeting basic eligibility requirements do not
become part of the program's case load.
2. Documentation of Eligibility and Determination of Type of
Assistance
a. Rehabilitation Manager mails General Information and
Application Packet to Homeowner. Name and address of
applicant noted on log sheet.
I. Information packet includes:
• Program Information Sheet
• Income limits/interest rates
• Map indicating target areas
2. Rental Rehabilitation Pre-Application
3. Application packet includes:
• Cover letter listing the supplemental items
required to be submitted with the application
packet
• Home Improvement Loan Application
• Property Owner Agreement
• Schedule of Property Owned
• Fair Lending Notice
• Lead Paint Poisoning information
• Ethnic Classification
4. Supplemental items include:
• A copy of the deed to the property
Attachment No. 8
Page 11 of 21
4`s_Agree:Koledo:AUach8112104 95
RLS 95-519
• A copy of the previous year's Federal Income
Tax for 1040
• Employment verification (last two check
stubs) (if relevant)
• Completed Social Security verification (or
copy of last check) (if relevant)
b. Completed application received (date indicated in activity
log).
C. Rehabilitation Manager or HOME Coordinator establishes
file, assigns a number to the application, and determines
feasibility of processing applicant.
I. If not feasible, Rehabilitation Manager or HOME
Coordinator so notes disposition on Log Sheet and
notifies interested person of finding in writing.
Application is filed under Ineligible Projects.
2. If feasible, Rehabilitation Manager or HOME
Coordinator so notes disposition on Log Sheet and
notifies participant in writing.
d. Rehabilitation Manager or HOME Coordinator should keep
written records of every telephone call and every
conversation with anyone conndcted with the rehabilitation
project, including the date, person spoken with, the subject
discussed and any result - this information should be
recorded on the Activity Sheet located in each file.
e. Rehabilitation Manager should keep copies of all forms in
each file. The date received and any notes pertinent to the
form should be recorded on the file Checklist.
Attachment No. 8
Page 12 of 21
4tsUE ree:Kolcdo_Attach8112+04i95
RES 95-519
B. Initial Inspection
Rehabilitation Manager
1, Sets up appointment for site inspection and work write-up.
Property Owner must accompany Rehabilitation Manager during
inspection.
2. Documents existing code violations, incipient code violations,
otherwise eligible items and requested home improvements on a
work write-up.
3. Explains what improvements are eligible and/or ineligible and
prioritizes work to be accomplished.
4. Makes a general assessment (preliminary estimate) of whether or
not the differences can be corrected within the program's maximum
dollar limitations.
5. Details findings and cost estimates in a Work Write-Up which
includes:
• Scope of work
• Quantity
• Quality
• Location
6. Schedules a meeting with applicant to review and approve Work
Write-Up, make necessary changes (within limits of Code
Enforcement), and explain contractor selection procedures.
a. Property Owner must approve and sign the Work Write-Up.
b. Property Owner received:
l. Four copies of the Work Write-Up - one copy with
cost estimates (for Property Owner Information
only) and three without cost estimates (to hand out
to contractors interested in bidding the job).
Attachment No. 8
Page 13 of 21
419,Agree;koledo:AllaeWl 2104195
RLS 95-519
C. A copy of each completed form, with the appropriate
information and signatures must be returned to the HOME
Coordinator or the Rehabilitation Manager for placement in
the case file. The owner and the contractor should also
keep copies of all forms.
C. Contractor Selection
Responsibility for the selection of a contractor rests with the homeowner.
No agreements, written or otherwise, will be binding for rehabilitation loan
funding unless they are first approved by the HOME Coordinator or the
Rehabilitation Manager. The owner must select a qualified Iicensed
contractor and the bid must come within 14 percent of the in-house cost
estimate. In certain instances where the work items do not require permits,
and the work is not highly technical, a handyman may be selected by the
property owner.
Property Owner:
1. Must obtain Building and Planning Division approval if
rehabilitation work involves a room addition or a significant altering
of the present use of the property.
a. Preliminary Site Plan or Drawing of any proposed changes
to property must be submitted to both divisions.
b. Preliminary plans should show existing use of the property
(a sample plot plan may be included in Application Packet)
as well as proposed improvements to determine whether or
not Code requirements are being satisfied - it is not
necessary to employ architectural or engineering services at
this stage.
C. Initial inspection by a representative of the Building and/or
Planning Divisions to verify the proposed improvements
may be necessary to receive building permit approval.
d. Upon approval of the proposed improvements by the
Building and Planning Divisions, applicant proceeds to
obtain estimates for the proposed work.
e. All necessary building permits must be obtained prior to
disbursement of any loan funds.
Attachment No. 8
Page 14 of 21
4's'%AgrwKo1edoAttach8i 11-01 95
RLS 95-519
,1
2. Provides Work Write-Ups (without cost estimates) to contractors
interested in bidding the job.
3. Obtains at least two bids and transmits selected bid proposal to
Rehabilitation Manager for review.
a. Rehabilitation Manager or HOME Coordinator reviews bid
proposal to determine cost reasonableness and compliance
with program requirements and to verify contractor
eligibility.
b. Rehabilitation Manager or HOME Coordinator approves
bid proposal.
4. Signs and awards contract after loan documents are executed and
after satisfactory review of contract by Rehabilitation Manager.
D. Financial Review
1. Rehabilitation Manager or HOME Coordinator reviews application,
and determines credit worthiness, verifies income, and orders a Lot
Book Report to verify title to the property.
2. Rehabilitation Manager or HOME Coordinator
approves/disapproves package and notifies loan applicant of
decision.
3. Upon decision of loan approval, in-house loan documents are
prepared which include:
• Promissory Note
• Deed of Trust (signatures to be notarized)
• Notice of Right to Cancel
• Escrow Control Instructions
E. Loan Closing
1, Rehabilitation Manager or HOME Coordinator schedules and holds
the loan closing in the HCD office.
2. Owner attends loan closing..
Attachment No. 8
Page 15 of 21
4ls\Agrec:Koledo:Attach8`112;'04195
RLS 95.5]9
3. Rehabilitation Manager or HOME Coordinator reviews loan
documents and owner responsibilities.
4. Property Owner signs loan documents - the signature on the Deed
of Trust must be notarized.
5. Property Owner signs loan documents - the signature on the Deed
of Trust must be notarized.
4. Property Owner signs loan documents - the signature on the Deed
of Trust must be notarized.
5. Property Owner has the legal right to cancel the loan within three
days.
6. Rehabilitation Manager or HOME Coordinator forwards loan
documents to City Attorney's office for approval as to form. The
loan documents are then recorded and filed at the City Clerk's
.office. Loan collection is authorized by the Rehabilitation Manager.
F. Contract Management and Disbursement of Funds
Contract Management begins with negotiation of the contract between the
contractor and owner and continues through the actual construction work,
job inspections, payment to the owner, final close-out of the job, and often
a one-year warranty period.
1. Pre-Construction Conference
Rehabilitation Manager or HOME Coordinator conducts a pre-
construction conference with the owner and the contractor to
discuss the contract and the responsibilities of each party.
a. A job walk-through with the property owner and the
contractor to review the work write-up and contract
document. Every item on the contract should be read and
discussed to ensure that all parties understand exactly what
the contract entails and to minimize the possibility of later
misunderstandings.
b. A review of the work, inspection and payment schedule so
that all parties will be aware of the timeline and order of job
progression.
C. An explanation of Change Order procedures. The
Rehabilitation Manager or HOME Coordinator must make
Attachment No. 8
Page 16 of 21
4's Agree:Koledn:lttach8.12 04 95
RLS 95-519
it clear that any changes required by job conditions or
requested by the homeowner must be put in writing,
including price, and agreed to by the homeowner and
contractor before the additional work is done (Change
Order).
d. A review of arbitration procedures in the case of a dispute
between any of the parties.
e. Property Owner and Contractor sign contract document.
2. Arbitration Procedures
a. In the event of any dispute between the owner and the
contractor concerning the contracted scope of work, the
Rehabilitation Manager or HOME Coordinator will work
with both parties to negotiate a satisfactory solution.
Should resolution of the situation not be possible on an
informal basis, the parties may elect to have a hearing by a
professional arbitrator or contact the State of California
Contractors License Board.
b. Complaints concerning the rehabilitation loan program shall
be in writing and addressed to the Rehabilitation Manager.
The Rehabilitation Manager will contact the complainant
and attempt to resolve the problem. A written response will
be made within 15 working days.
If complainant is not satisfied after said written response, a
complaint may be filed with the Program Manager or
HOME Coordinator who will schedule a meeting with the
Rehabilitation Manager. A written response will be made
within 5 working days.
3. Accounting Procedures
a. Upon expiration of the required three-day right of borrower
to cancel the loan transaction, Rehabilitation Manager
prepares an in-house Material Requisition and obtains
Project Manager's approval. The Material Requisition is in
the same amount as the principal amount of the loan and
establishes a Purchase Order with the Accounting and
Records Division of the Administrative Services
Department.
Attachment No. 8
Page 17 of 21
41s_Agrce:Koledo:rhttach8112iO4i95
RLS 95-519
b. The Material Requisition will be submitted to the
Accounting and Records Division upon Departmental
approval of the first request for payment. A Request for
Partial Payment will be submitted at the same time to
ensure immediate payment to the home owner as the
establishment of the Purchase Order takes approximately
two weeks.
C. The Purchase Order is in the name of the participant(s)
and serves as the rehabilitation Escrow account from which
payment for the Rehabilitation work is disbursed. The
Request for Partial Payment and all future requests for
payment will be debited against the Purchase Order.
4. Check Disbursement
a. Homeowner contacts Loan Program to arrange a job site
inspection and progress payment.
1. Rehabilitation Manager visits the job site and verifies
that the work included for payment is complete and
within the scope of eligible work as outlined in the
Work Write-Up, and that all necessary inspections
by the Building Division have been satisfactorily
accomplished.
2. Rehabilitation Manager approves payment to the
homeowner and signs off Payment Request.
b. Rehabilitation Manager transmits Payment Request to
Program Manager for approval.
Completed form includes the amount of disbursement, name
and loan number of participant, a description of the work
completed and signatures of Rehabilitation :Manager or
HOME Coordinator, and Program Manager.
C. Program Manager transmits Payment Request (excluding
attachments) to the Accounting Department who will
prepare a check payable to the homeowner for the approved
amount. A copy of this request will be placed in the
participant's file.
Attachment No. 8
Page 18 of 21
4'9A&rcc.KoIcdo:Anach8112.'04r95
RLS 95-519
d. Alternative
Program Manager transmits Payment Request to City
Treasurer for review and approval.
Upon review and approval of the payment request, the City
Treasurer will forward a request to Security Pacific National
Bank to prepare a Cashiers Check payable to the
homeowner for the approved amount. A copy of this
request will be placed in the participant's file.
e. Check Disbursement to Homeowner
1. The Rehabilitation Manager contacts the
homeowner to pick up check at the HCD office.
2. Upon actual disbursement of check to participant,
the homeowner signs the Receipt of Loan Amount,
acknowledging receipt of the check.
Said form includes loan number, participant name,
warrant number, and remaining loan balance.
3. Copies of the above mentioned documents (Check
and Receipt of Loan Amount) will be placed in the
participant's file.
4. The Payment Schedule and the Purchase Order
copy in the participant's file is debited upon
disbursement of check for amount expended.
f. Timeline - Generally, the check is available within five (5)
working days following payment request submission to
Program Manager.
g. All above mentioned documents and bills are filed in
participant's file.
h. Funds cannot be disbursed for work which does not meet
the approval or standards of the Building and Planning
Divisions or Neighborhood Enhancement Program.
Attachment No. 8
Page 19 of 21
4 s-Agree:Koledo:Attach8'-.12:04r95
R1.S 95-519
5. Final Inspection
a. The Rehabilitation Manager or HOME Coordinator,
homeowner, and contractor should make a final inspection
of the project together. When the improvements are
completed, the job is considered finished, except for a one-
year guarantee on labor and materials which is a normal part
of the contract. There may also be an inspection at the end
of the one-year warranty period.
b. The Rehabilitation Manager or HOME Coordinator
completes a Certification of Final Inspection and
transmits one copy to homeowner.
6. Close-out of the Contract
a. Waiver of Liens
This is a document releasing lien rights on the job, to be
signed by all material suppliers and subcontractors.
b. Warranties
The general contractor must give a one-year guarantee on
all labor and materials, and supply to the homeowner all
manufacturers' warranties for equipment such as furnaces,
air conditioning units, kitchen appliances and hot water
heaters. Any product guarantee beyond one year, such as a
15-year guarantee on roof materials, should also be passed
on.
G. Loan Collection
l. a. At the time of sale or transfer of ownership the loan is due
and payable plus the one-time 6 percent interest charge.
b. Upon completion of demand, escrow instructions for full
payment of a loan and reconveyance of the Trust Deed, a
Request for Full Reconveyance is signed by the City Clerk
and Rehabilitation Manager and forwarded to escrow
company.
C. Payment is then made by escrow company or owner for full
amount of loan payable to City Treasurer,
Attachment No. 8
Page 20 of 21
4WAgrec:ho1edo:AttnchS%12r04;95
RLS 95-519
d. The funds collected are then deposited into City Savings
Account No. 724-137-309 on deposit at Security Pacific
National Bank - Huntington Beach, California, Beach and
Garfield Branch.
2. City Collection - BMRI Loans
a. The city is responsible for BMRI loans issued to those
within a pilot program.
b. An "In House" collection procedure exists with the
Rehabilitation Manager forwarding executed loan
documents to the City Clerk for filing.
C. A copy of Promissory Note is forwarded with a Request for
Establishment of Collection Account to Administrative
Services - Accounting and Records - City of Huntington
Beach.
Attachment No. 8
Page 21 of 21
4`s=.?.grzz.�ioledo;rlttach8�12>0495
RLS 95-519
4 VLF- t)Zo 7' 1rG-C.O JI%I ILA JIMMI IV,I — LMHAl7 {NP71#\.LI I,
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MARATIONS I]TRUCK MURANCE EXCHANGE rl FARfMERti INSURANCE EXCHANGE FIRE IWILI ANCE(EXCmma
SWTINEL MEMBERS of FARMERS IWAMANCE GROUP OF COMPANIES
PACKAGE HOME OFFICE:46M WILSHIRE BLVD.,LOS ANGELES.CALIFORWA 90010
SUPER
Q�prr��
1. Named ORANGE COUNTY COMMUNITY t 0 FP Count
Insured . HOUSING CORP A CALIF CORP - remati 't No—
Mailing Acc .
Mailing . 1833 E 17TH ST A207
Address . 97-07-360 01500-41-65
SA14TA ANA CA 92701 Agent Policy Number
Type of
The named insured is an individual unless otherwise stated: ❑PartnerahE Corp. Business 5 UNITS APT
[�Joint Venture Organitatlon(Other than Partnership or Joint Venture)
2. Policy Period from 04/28/95 not poor to time applled far)
to 04/28/96 12:01 a.m.5tandaid Time.
K this policy replaces other coverages that end at noon standard time on the same day this pol� begins.this policy will not take effect until the other
coverage ends. This Pofllcy will coiftee for taeees "policy periods es feflows:If we cleci to continue this insurance,we will renew this policy if
you pay the requued renewal premium for each suCeessive policy period sukeet to our premiums,rules and forms then in effect.
3. Insured location same 83 mailing address unless otltPtvrise stated: 17371 KOLEDO LANE
HUNTINGTON BEACH CA 92647
4. Mortgage Holders CALIFORNIA FEDERAL BANK CITY OF HUNTINGTON BEACH
Wll A i'?iL�� �>
PO BOX 60093 200 MAIN .ST .
OF EWMQIjA
CITY OF INDUSTRY CA 91899 HUNTINGTON BEACH CA 92648 XF
Loan# Loan#
5. Premium S 907.00 C3 mr it Mortgage Holder Pays
6. Policy Forms and Eftdorsements.attached at ince 2ib�vy' Svg& 25-2191 S9043-ED1
E6036-ED1 UWP.ED
7. We mvMe insurance on for ra es indicated by a specific Omit or an
AlulidCOVERAGES IWS Of INSURANCE DE L
i 00 000 applies unless other
SECTION 1 B-Business Personal Property on indicated b an®
S1oocksm�E2500
C-Loss of Income Hot exceeding UnL LOS SUSTAINED NONE
Property
and Swimming Pool/F 5,000 ADovededuc- 2500
Loss of BuildingGiass(Blartket) PLACEMENT OW title soles
Income Outdoor Sin Coverage anleasaum
Valuable Papers(In addition to$ MUded.) aption indi-
cated
Earthquake Damage Coverages %
.B.A C of the a lieabie ins.limit.
S A II 7 sinesss Liability-Including Products and Completed L ITS BF LIARLrry
Operations.(Annual aggregate applies for all occurrences Annual ate
duarm the i od. 1,000,000
Liability E.fire Legal Liability$75,000 included unless other option indicated by an
and ❑$100,000 Q$150.000 each occurrence Su Wect to the annual aggreapate sh n for Coy.O
Medicals F-Medical Payments to Others(Subject to the annual aggregate XUO each person
shown for Coverage D.
Limit of Liability
(Annual Aggregate)
❑Professional Liability see attached endorsement
❑I-V COVERED DEOUCTIOLE
SECTION II! IvEmployee Oishon NONE
reement Il.Brroad Form Mong and Securibes-Inside 250
reement III-Broad Form Money and Securitles-Outs de 3250
Come reenrent IV-Medical Pa is own person I NNE
neement V-f or ARcrations I NONE
x-SM tdi LND MTJOR Countersigned
AuthOrmd Representative
w L1..L V✓ 7✓ 10-C-%J -IM r{,_J J11Nn1 1"1 "Mbrat.1:1 r.J
Attach to your policy with the same number Shown on this endorsement. E4103
I St Edition
tined Insured ORANGE COUNTY COMMUNITY HOUSING CORPORATION Agent Policy Number
Address• A California Corporation 96 07 360 01500-41-65
1833 E. 17th Street, #207 ._ : . of the Coin ny
Santa Ana, CA 92701 designated in the
d
Insuree Declarations
Insured
Loca 17371 KOLEDO LANE, HUNTINGTON BEACH, CA .92647
(Same as Wm unkm otherwise waled hero
-ilectwe Date MARCH 2, 1995 Limit of Liability$ 1,000,000.00 each occurrence
ADOMONAL INSURED ENDORSEMENT
(SPECIAL SENTINEL)
In Consideration of the premium we agree with you to the following:
1. The insurance provided by this policy for bodily injury liability and property damage liability under Coverage
D--Business UabRity insurance shall also apply to the additional insured named below,but only with respect
to an occurrence arising out of the ownership, maintenance or use of that part of the insured location
occupied by you.
2. This insurance does not apply to:
(a) Any occurrence which takes place after you cease to occupy the Insured location.
(b) Any structural alterations, new construction or demolition operations performed by or for any additional
insured named below.
3. The additional insured shall not be construed or ceemed to be a subscriber to the Company isstyktig this Qdlicy.
4. The additional insured shall not be or become liable for any {premium payments due upon this policy.
5. If this pdiry is terminated for any reason we shall give this-ty (30) days notice
in writing to the additional insured named Wow,
This endorsement is part of your policy. It supersedes and controls anything to the contrary- It is otherwise
sub1W to all other terms of the policy.
Addetionai City of Huntington Beach
Insured Its Agents, Officers, and Employees
• 2000 Main Street
Huntington Beach, CA 92648
Countersigned —
,;;tr.prs�gC �BoreSent&tivk'
L'LL rl.i 7� AU-"l Jn.IG� �JI M"I IV'1 - Lr111141 ""i r\111J
D>CLARA10NS X❑TRUCK INSURANCE EXCHANGE ❑ FARMERS INSURANCE EXCHANGE FIRE INSURANCE EXCHANGE
SPECIAL ❑
SENTINk MEMBERS of FARMERS INSURANCE P OF COMPANIES
PACKAGE HOME OFFICE:4680 WILSHIRE BLVD.,LOS ANGELES,CALIFORNIASUPER
REp�ND
t. Named ORANGE COUNTY COKIIUNITY'NDVr tiNSv Prod.
Count
Insured . HOUSING CORPORATION Prematic Acc't No.
Mailing . A CALIFORNIA CORP
Address . 1833 E 17TH STREET 207 97-07-360 01500-41-60
SANTA ANA CA 92701 Agent licy Number
J Type of
The named insured is an individual unless otherwise stated: I tto p p. Business 5 UNIT APARTMENT
r t ienti Ai f tion(Other than Partnership or Joint Venture)
2. Policy Period from 03/02/95 �1, i� C3 not 'or to time applied for}
to 03/02/96 GL u • :01 a.m.Standard Time.
It this policy replaces other coverages that end at noon tad F n e is pof�'cy begins,this policy will not take effect until the other
coverage ends. This policy will continue for sucemiira policy I r.If we ekxt ba continue this insurance,we will renew this policy if
you pay the required renewal premium for each successive policy to our premiums,rules and forms then in effect
3. Insured location same as mailing address unless otherwise 7361 KOLEDO LANE
HUNTINGTON BEACH CA 92647 Dof ��•
4. Mortgage Holders CALIFORNIA FEDEUL BANK CITY OF HUNTINGTON BEACH "sf ti �W� S O
PO BOX 601193 200 MAIN STREET �Y�R� `KE
CITY OF IIMUSTRY CA 91a99 HUNTINGTON BEACH CA 92648
![
Loan# 7853 2462 Loan# RR9015
5. Premium S 857.00 ❑ W if Mortgage Holder Pays
6. Policy Forms and Endorsements attached at inception: 2521100387 S65310-£D2 25-2191 S9043-EB1
E6036-ED1
7. We de insurance only fort"comrages indicated by a specific limit or an
COVERAGES IMRS OF INSURAtCE 0 OUCTIBLE
• I1di 300,000 ssa applies unless other
SECTION 1 &Business Persowl Properly ;or,Indicated b an®
$1o0Qi5oo (s2500
C-Loss of lrrGOrne Not exceeding12 consecutive months UAL LOSS susrawED NONE
Property OPTIONAL COVERAGES
and Swimming Pool/fences and Walkways 5,000 Move deduo- 2500
Loss of Building Glass(I#enket) PLACEMENT COST unrc ap"
Income Outdoor Sign Coverage umess vw r
Valuable Papers(In addition to$1000 included.) option indi.
Caw.
❑ Earthquake Damage Coverages x
B.&C of the applicable ins.limit
SECTION II D-business Liability•Including Products and Completed IMITS OF LIABILITY
Operations.(Annual aggregate applies for all occurrences Annual A ate
during the policy pedod.) 300,000
Liability F-Fire Legal Liability S75,000 included unless other option indicated by an
and Q$100,000Q$150 000 each occurrence Subject to the annual aggImmale s for Cov.0
Medicals F-Medical Payments to Others(Subject to the annual aggregate 1000 each person
shown for Covers a D.
imit of LiaWity
Annual AggregatE}
❑Professional Lg§b see attached endorsement
13 I-V COVERED DEDUCTIBLE
SECTION IN Agreement I-Emel=Dis NONE
A mement 11-6road Farm Money and Securities-inside $250
reement Ill-Broad Form.Mnm and Securities-Outside $250
Crime A reement IV-Medical PaMMIS each Frson NONE
Agreement V-Forg or Alterations NONE
sksma:•et rao 6o1rr0u Countersigned
Aath=ed Repmsentative
VL-V rJJ =J lt="C-� Jrv'IC„J _IRri11VII - \,MNI4a Wr11 r\II I r'.5
Attach to your policy with the same number shown on this endorsement. E4103 .
1 st Edition
4arnedIrwed ORANGE COUNTY COMMUNITY HOUSING CORPORATION Agent Policy Number
Address. A California Corporation
1833 E. 17th Street, #207 97 07 360 OIS00-41-60
Santa Ana CA 92701 of the Company
designated in the
€nsured 17361 KOLED0 LANE, HUNTINGTON BEACH, CA 92647 Durations
Local+Ott
(San as abore UNOU O*MW VaMd►+erey
Effective Date MhRCH 2, 1995 Urst of Liablfay S 1,000,000.off each occurrence
ADDITIONAL INSURED ENDORSEMENT
(SPECIAL SENTINEL)
in consideration of the premium we agree with you to the following:
1. The insurance provided by this policy for bodily injury liability and property dermage liability under Coverage
D-6usiness(,lability insurance shall also apply to the additional insured named below,but only with respect
to an occurrence arising out of the ownership, maintenance or use of that pan of the insured location
Occupied by you.
2. This insurance does not apply to:
(a) Any occurrence which takes place after you cease to occupy the insured locetlon.
(b) Any structural alterations,new construction or demolition operations performed by or for any addibonal
insured named below.
3. The additional insured small not be construed or deemed to be a subscriber to the Company issuing this policy.
4. The additional insured shall not be or become liable for any premium payments due upon this policy.
S. If this policy is terminated for any reason we shall give thirty (301 days notice
In writing to the additional insured named below.
This endorsement is part of your policy. It supersedes and controls anything to the contrary. it is otherwise
subject to all other terms of the policy,
Adddio-W CITY OF HUNTINGTON BEACH
Insurec Its Agents, Officers, and Employees
2000 Main Street
Huntington Beach, CA 92648
rnuniersigned
.. -_utr;c-�_ec �eo�esan�ative
4 Alt'
� V7V.P�'��i ti v•i.r i 'ia.ervra: r.. -r..� �..:f Gal �
COIiM6�1f7 1M I AT F 41 _ 1�CT OWL
s s
M&. MUGE ENDoRSEMElff issued by: e604
IN The Exchange or Company designated on the reverse side as number _ bd fEdltlea r
❑ 9e Y g
A Stock insurance company, herein called the Company w City and State
Named . CROW OX MRT 11112004 C�O�ATi[GM
insured A MIPO"A CWP
im E 1m Mall /207 Prematic Acc't No.
SWrA AM CA 22M
Effective Date but not prior to time applied for (IL--01 A.M. Undatd �' 87 �� _
Um In Callferaia, Oregon, Texas, Adoma% _
Renewal Date 03-112-96 Warlringtoa, Idaho and Oklahoma A ent Policy Number
I $ Previous Balance Owing
$ Pro Data Premium Due ❑ invoice only
$ 50.00 MUM or CHii W 67111"MICTI"
.�_ $ Premium for Renewing Entire Present Coverage From To
` $ Total Charges
$ Payments ATTACH
S Other Credits TO YOUR
a $ Total Credits POLICY
$ P.04 BALANCE DUE
$ REIFIHit>!
�— ONLY THE ITEMS CHECKED 0 BELOW ARE CHANGED
❑ Name of insured as shown above Anniversary Inception
Former ❑ Date ❑ Date
Name , Mailing Rates &
� ❑ Property Location and/or Mobile Home Description � ❑ Address � Premiums
(same as mailing address unless shown here)
+. AIl'>D E%10% Me 111D)
® AMM UCT><CK IT 0 U047E OF 0,111lo>EL11T To 61,090.m
DweUinglBuilding
C El Description
` Construction-Roof•No. of Units(One unless otherwise stated)
❑ Reinstatement ❑ Amount of Insurance ❑ Subsequent installments S
LOC. fNB. LOC.I DESCM!TIDN 14EW LIMIT OF WS.
r S
I. $
E $
$
t
Name/Address ❑
I Mortgagee
or -
AdditiorW
Interest ,
Loan No
• Loan No.
rersigned by Authorized Representative
r ea.a ?rm carr+cw as AGENTS CUPY 8-06 1701
ATTACHMENT #2
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�l ACQUISITION AND REHABILITATION
Of 17. 361 & 71 Koledo Lane
HUNMCMN BEACH
HU,NTINGTON BEACH SPECIAL PROJECTS MISION
ATTACHMENT #3
x
I
KOLEDO LANE
PRELIMINARY REPORT
17361-17371 Koledo Lane
Huntington Beach, California
for:
ORANGE COUNTY C:01MMUNI"I'Y
HOUSING CORPORATION
prepared by:
JOHN SILBER, AIA
Arch itecture/P1anning
::: January, 1995 :::
JOHN SILBER, AIA
Architecture/Planning
The Koledo Lane Project
Two existing 5-unit apartment properties at 17361-17371 Koledo Lane in Huntington Beach have
been listed by their respective property owners for sale. The current rent structure, the configuration
of the units,the density and the location of the project make a strode case for the preservation of this
apartment units as affordable housing for the low income wage-earners of Huntington Beach, a role
the complex inadequately serves today. These apartment buildings are for the most pan now more
than thirty years old , they exhibit the need for repair and renovation, and they suffer from over-
crowding. Orange County Community Housing Corporation (OCCHC) has entered negoitiations for
purchasing the properties. OCCHC intends upon purchase to renovate the apartments and managing
the complex as part of its affordable housing program. OCCHC believes that its program of
purchase, renovation, and strong, long term property ownership and management will protect
needed afforadable housing, will strengthen the City's revitalization efforts in the Oakview
neighborhood, and will reinforce efforts of the Koledo Lane Property Owner's Association.
The Scope of This Report
The purpose of this report is to assist OCCHC in evaluating the opportunities and constraints offered
by the existing facilities and to help OCCHC establish the probable scope of required
renovation/remodeling.
The following steps were taken in preparing this report:
1. Available public records regarding the property were obtained from and project goals and
objectives were reviewed with key City staff and a site walk was conducted of the grounds;
2. An interview with key OCCHC staff was conducted,OCCHC's video record of the property
was reviewed and OCCHC delivered documents pertinant to the project for use in the
preparation of this report;
3. A housing relocation plan was prepared by others (Pacific Relocation Services);
4. Two units were given a walk-through inspection and field measurements were taken;
5. Preliminary "as-built" floor and site plans were sketched to scale based upon those field
measurements and site plan information provided by the City,
6. Based on comparable projects -- both for construction and for program objectives -- specific
recommendations were developed; and
7. The specific recommendations were (are hereby) presented to key staff of OCCHC and the
City of Huntington Beach.
::: 150 West Brookdale Place. Fullerton, California 92632-1 +02 (714)-870-5047 :::
This report is preliminary. It is not based on exhaustive investigations of the existing construction,
of city records,or property records. There has been no investigation into the possibilities of"toxics"
such as asbestos, lead paint, contaminated water or soils on site. No "as-built" drawings beyond
those described above are know to exist. Therefore a systematic engineering analysis of the structure
and building systems has not been conducted. All parties of interest in the project should anticipate
the need for additional investigations of the existing facilities and periodic revisions of the project
scope. Budgeting should include contingency funds for additional required renovation and repair
work discovered during further investigations and during the construction process which follows.
Code Items
The anticipated uses of the buildings and site will be consistent with the current uses. To the best
of our knowledge those current uses are in compliance with the approvals granted by the City and
the Koledo Lane Property Owners' Association at the time of the original occupancy. Therefore we
know of no significant impediment posed to the project by zoning,building and safety,or fire codes.
If the scope of work increases significantly as the project proceeds this condition of compliance may
change. In any case OCCHC should anticipate consulting with the City before proceeding with the
work. All work should be undertaken only after approvals in the form of building permits have been
issued by the City of Huntington Beach and the requried approvals have been granted by the Koledo
Lane Property Owner's Association.
Standards for accessibility for the disabled fall into a "gray" area, and OCCHC should anticipate the
need for a more extended investigation of the requirements. The limits of the Americans with
Disabilities Act (ADA) is not clear,and guidance from legal counsel and/or funding sources should
be sought. The United States Department of Housing and Urban Development (HUD) is required
to comply with the "Uniform Federal Accessibility Standards" (UFAS), and work funded by HUD
may trigger these standards.
The Existing Construction
17361-17371 Koledo provides 10 apartments , all two-bedroom, two-bath flats. The units are
configured into 3 buildings. The original site plan grouped two of the buildings as two-story mirror-
image four-plex buildings facing one another across a landscaped commons or courtyard. In the
1970's the existing garages at the rear of the prperty were replaced with two units constructed above
the ground floor garages and laundry rooms. This rear building straddles the property line and is
divided along its length by a property line common wall. The buildings are wood frame with gypsum
board interiors finishes and stucco exterior finishes. Roofs are composition shingles on hip roofs.
The foundation system is slab on grade construction. Floor finishes are carpet with vinyl the for
"wet" areas such as kitchens and bathrooms. The buildings are equipped with solar water heating.
The site is approximately 16,200 square feet (.37 acres) in size and is essentielly level. Site
improvements consists of asphalt paved driveways, concrete walkways, and mature landscaping.
The rear parking area provides 2 open parking stalls and a concrete masonry trash enclosure. The
Court area is enclosed by 6 foot high ornamental iron fence. The property fronts on the parking court
shared and p:-ivate park area which serves as the Koledo lane common area. The rear of the progeny
overlooks the grounds of Oak View School. The property is bounded on the :Forth by an alley and
on the south by an apartment complex which is also a Koledo Lane Property Association member.
Design Comments and Recommendations
The subject properties, 17361-17371, have the essentials required for a very pleasant "garden
apartment" community. They are also a part of the larger ga"rden apartment complex -- the Koledo
Lane community. It is important that modernization and renovation work done be coordinated with
the design of the entire complex so as to reinforce the sense of community for all whole live on
Koledo Lane.
There is one design suggestion which should be considered regarding the exterior. Just as we
maintain a little space between one another in a crowd our homes want to let people know where
"very close" is to our homes. For this reason it is noted that the residents have already created small
signs close to their individual apartments which are personal to themselves--little "victory gardens,"
flowering plants, and small pieces of personal "artwork." This inclination is natural and health, and
we recommend that it be incorporated into the renovation and management plan. If this is done in
a structured way both the common design standards of the community and individual expression
of home could be accomodated.
The design approach should include:
1.1 Review the value of the tall ornamental fence at the front of the property which does not
secure the property against entry--perhaps a lower fence would be more inviting, would be
no less secure than the currnet condition and would still set a limit for children;
1.2 Create small,very defined, garden area.sandlor plant boxes at the entry to the units;
1.3 To the extent practical create individual unit entries as small "front porches" with a place for
chairs and someplace to set packages while you open the front door;
1.4 Use a paint scheme which reinforces the garden apartment community approach; and
1.5 Add windows to the laundry storage areas to improve visibility and the security which comes
with added visibility; and
Recommended General Work Items
The following work should be complete throughout the complex:
2.1 Have the structures inspected for the possible presence of and/or damage by pests such as
termites and for evidence of dry-rot and implement the recommendations made;
2.2 Have the structures inspected for the possible presence "toxics" such as asbestos, lead paint,
etc and implement the recommendations made;
2.3 Removed and replace the roofing (with repairs to the sheathing done as needed);
2.4 PIaster patch and paint the exterior stucco;
2.5 Replace the exterior deck waterproofing at all second floor balconies and walkways;
2.6 Service and as needed replace common area improvements and building systems including
the laundry area, the water heater(s) and the solar system;
2.7 Upgrade and renovate the site landscaping (plantings, fences, and walkways); and
2.8 Replace the damaged asphalt driveways and parking areas with concrete paving.
Recommended Individual Unit Work Items
The f6owing work should be complete within each front building unit:
3.1 Patch (or as needed replace) and paint the unit interior ceilings and walls;
3.2 Replace the vinyl flooring and carpeting;
3.3 Install a new steel entry door and repair as needed wood interior doors;
3.4 Repair and rescreen aluminum frame windows;
3.5 Inspect, service, and, as needed, replace the gas wall furnace;
3.6 Remove and replace kitchen counter-tops and cabinets, and 2 bathroom vanity
cabinets/counter-tops;
3.7 Replace the.wood subfloor at the second floor bathroom;
3.8 Replace the 24" range cooktop with a 30" unit;
3.9 Repair and as needed replace the plumbing water, gas and waste lines,
3.10 Repair the bathtub and shower and replace the all plumbing fittings(faucets etc.),two toilets,
two lavatories, and one kitchen sink set; and
3.11 Inspect, repair, and as needed replace electrical outlets, switches, lights, smoke detectors, and
communication systems (phone, cable).
The following work should be complete within each "over garage" or rear unit:
4.1 Patch (or as needed replace) and paint the unit interior ceilings and walls;
4.2 Replace the vinyl flooring and carpeting ( in some units carpet may require cleaning only);
4.3 Install a new steel entry door and repair as needed wood interior doors;
4.4 Repair and rescreen aluminum frame windows and 1 aluminum frame sliding glass door;
4.5 Inspect, service, and, as needed, replace the force air furnace;
4.6 repair or replace the bathroom skylight;
4.7 Remove and replace kitchen counter-tops and cabinets, and 2 bathroom vanity
cabinets/counter-tops;
4.8 Replace the wood subfloor at the bathrooms as needed;
4.9 Repair and as needed replace the plumbing water, gas and waste lines;
4.10 Repair the bathtubs and replace the all plumbing fittings (faucets etc.), two toilets, two
lavatories, and one kitchen sink set; and
4.11 Inspect, repair, and as needed replace electrical outlets, switches, lights, smoke detectors, and
communication systems (phone, cable).
JOHN SILBER, AIA
t - Architecture/Planning
Project Timeline
Task: Milestone: Date:
1. OCCHC enters escrow for 17361 Koledo Lane. 12.15.94(done)
2. Pacific Relocation commences relocation plan work. 01.01.95(done)
3. OCCHC submits this preliminary report and its request for H.O.M.E. funds to the 01.27.95
City of Huntington Beach.
4. Escrow Opens for 17371 Koledo. 02.01.95
5. Escrow closes for 17361 Koledo. 02.15.95
6. Rehab ommences on 17361 Koledo. 02.15.95
7. City commie H.O.M.E. funds to the project. 02.28.95
9. Escrow closes for 17371 Koledo. 03.15.95
9. Rehab commences for 17371 Koledo. 03.15.95
10. First trust Deed lender commitment. 03.31.95
11. H.O.M.E. funds project draw#1 -- 25%. 04.07.95
12. H.O.M.E. funds project draw#2--25%. 04.21.95
13. Complete rehab construction. 04.28.95
14. H.O.M.E. funds project last draw 41 --50%. 05.12.95
15. Project complete and First trust deed funds. 05.15.95
150 'Jest Brookdale Place, Fullerton, California 92632-1402 (714)870-5047 :::
17361-17371 Koledo Lane
Huntington Beach, California
Economic Pro Forma.For The Ten Unit Project
KOLEDO JOB #18 BUDGET
ACCT UPDATED LIFE PER
NO DESCRIPTION COST SPAN MONTH
---------------------------------------------------------
1000 FLOOR COVERING 12816 7 years 120
2000 MECHANICAL 120
3000 SCREENS/DOORS 1800 3 years 42
4000 PAINTING 4200 2 yyears 146
5000' LNDSCP/HRDSCP dre 25
6000 DRAPERIES 2400 5 Years 34
7000 PAVING all concrete 0
7100 ROOFING 15000 25 years 0
all above this line C reserves
+++++++++++++++++++++t++..... .....++++++++++++..... -+++++++.+++
5400 PROPERTY TAXES SEMI ANN 25
0
5500 INSURANCE MONTHLY 150
58-1 WATER $10 pu MONTHLY 100
58-2 GAS MONTHLY 84
58-3 ELECTRICITY MONTHLY 84
58-4 TRASH/SEWER MONTHLY 240
1000 LANDSCAPE MAINT MONTHLY 200
2000 PLUMBING AS REQ 90
3000 ELECTRICAL AS REQ 40
4000 MISC REPAIR AS REQ 200
4500 ON SITE MGMNT MONTHLY 150
5000 CARPET CLEANING 2 YEARS 40
6000 MARKETING ANNUAL 80
2100 1ST TD MONTHLY 1967
2200 CITY 2nd TD DEFERRED 0
MGMNT FEE MONTHLY 500
OCCHC EQUITY 0
.5900 VACANCY AT 5% MONTHLY 225
--------------------------------------
TOTAL EXPENSES -4662
GROSS RENT 4500
RSRVS PER MO. 487 LAUNDRY 40
RSRVS PER UNIT 49 ---------
CASH FLOW --122
LOAN AMOUNT 250000 10 at $450 4500
INTEREST RATE 8.75%
TERM (years) 30 ACQ COST 560000
PAYMENT AMOUNT 1967 REHAB CST 250000
TOT COST 810000
CITY LN -42000 defer
AHP LOAN -250000
MONTH PRINCIPAL INTEREST BALANCE HOME $$s 518000 defer
-------------------------------------------
Apr--93 143 .. 83 1823 249856
Orange County Community
Housing Corporation
i 7361-17371 Koledo Lane
Huntineton Beach, California
Economic Pro Forma For A Fire Unit Only Project
XOLEDO JOB #18 BUDGET
ACCT UPDATED LIFE PER
NO DESCRIPTION COST SPAN MONTH
------------------------------------------------------------------
1000 FLOOR COVERING 12816 7 years 60
2000 MECHANICAL - 60
3000 SCREENS/DOORS 1800 3 years 21
4000 PAINTING 4200 2 gars 73
5000 LNDSCP/HRDSCP dre 31
6000 DRAPERIES 2400 5 Years 17
7000 PAVING all concrete 0
7100 ROOFING 15000 25 years 0
all above this line = reserves
.....++++++++++++++++++.....+.+.++.++++ff+++t++++++++f++++++++++
5400 PROPERTY TAXES SEMI ANN 21
0
5500 INSURANCE MONTHLY 75
58-1 WATER $10 pu MONTHLY 50
58-2 GAS MONTHLY 42
58-3 ELECTRICITY MONTHLY 42
58-4 TRASH/SEWER MONTHLY 120
1000 LANDSCAPE MAINT MONTHLY 125
2000 PLUMBING AS REQ 45
3000 ELECTRICAL AS REQ 20
4000 MISC REPAIR AS REQ 100
4300 ON SITE MGMINT MONTHLY 75
5000 CARPET CLEANING 2 YEARS 20
6000 MARKETING ANNUAL 40
2100 1ST TD MONTHLY 1006
2200 CITY 2nd TD DEFERRED 0
MGMNT FEE MONTHLY 250
OCCHC EQUITY 0
5900 VACANCY @ 5% MONTHLY 113
TOTAL --- --- EXPENSES -2405
GROSS RENT 2250
RSRVS PER MO. 262 LAUNDRY 40
RSRVS PER UNIT 52 ---------
CASH FLOW -115
LOAN AMOUNT 125000 5 at $450 2250
INTEREST RATE 9 .00%
TERMS (years) 30 ACQ COST 305000
PAYMENT AMOUNT 1006 REHAB CST 175000
TOT COST 480000
OLD LOAN -21000 defer
AHP LOAN -125000
MONTH PRINCIPAL INTEREST BALANCE HOME $$s -334000 defer
-------------------------------------------
Apr-93 68 . 28 938 124932
Orange County Community
Housing Corporation
17361-17371 Koledo Lane
Huntington Beach, California
Vicinity Map
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SLATER 7
30HN SILBER. AIA
achit ecru rei Ptannin e
17361-17371 Koledo Lane
Huntington Beach, California
x ~
Site Plan
Alley
r
/• ff
• ;••-t 17361.
Parking Lot =, t two stories
(4) 2-bedroom units .0
1736I
• two stories
(1) 2-bedroom unit O
above garage/laundry
17371
two stories
(1) 2-bedroom unit
above garageAaundry
Parking Lot
17371
two stones
(4) 2-bedroom units
. north
or for 20'
JOHN SILBEEZ A1A
Architecture/Planning
17361-17371 Koledo Lane
Huntington Beach, Califomia
Typical "Front Unit" Floor Plan
BEDROL)m•I '
r KITCHEN C
BATH■n
1.1
BATIi:'-
I.IV.
LIVIN&DININ i
BEDROOM C
■
� I �
JOHN SILB E 1,ALA
Ar c hi t e c i ur e:Pl an.uin g
17361-17371 Koledo Lane
t
Huntington Beach, California
Typical"Rear (Over Garage) Unit" Floor Plan
DECK OVER LAUNDRY
I VING,DINING
D
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ATTACHMENT #4 .
K0LE00 PRORCT
KI)LED0 JOB JLB BUDGET 06p9/95
.............
A117 10 UKTs UPDATED IHE PER 995 z000 -2001 200Z -2003 :2004,:
Lw Mvmymy twT SPAY awnd
LOOO R106R Imum 12816 7 years 120 1440 149E 1556 Lazo 1535 1752 1622 1895 1971 2050 2132 2217
2000 V=NTAL 120 1440 11196 1556 1620 1585 1752 1822 1895 1971 2050 2132 Z217
3000 SMEENS/DM IBOO 3 years 42 504 524 545 567 590 613 535 so 690 M 745 775
4000 PAMENG 4200 Zymn L46 1752 1822 1895 1971 2050 2132 2217 2306 Z39B 2494 2593 2097
5000 FAINDSCAPE dre 20 240 250 260 270 281 292 304 315 325 342 355 309
6000 Mupiym 2400 5 Years 34 408 424 441 459 477 495 MO 537 558 581 604 625
7000 PAVDE au p 0 a 0 0 0 0 0 0 0 0 0 0 0
7100 fkwwc 15000 25 yeas 0 D 0 0 0 0 a 0 0 0 0 0 0
all above Lhi,line.=resr.rws
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5400 ASSFMMENTS SEIR MN 25 300 306 312 318 325 331 338 345 351 359 346 373
5500 MILL 11101471MY 150 IBOO 1872 1947 2025 2100 2190 Me 2389 2463 2552 2664 2771
55-1 WATER SID pu MONTUY EOD 1200 1248 1293 1350 1404 1460 1518 1579 1542 1708 L776 1847
50-2 GAS MONMY 84 1008 104E .1090 1134 1179 1226 I275 1326 135D 1435 1492 1552
5B-3 EEECTRIM MOMMY 04 1008 L04B 1090 1134 1179 1226 1275 1326 1300 1435 1492 1552
5B-4 M&%V5E11E11 MDI%MMY IGO 2150 2246 2336 2430 2527 2628 2733 2842 2956 3074 3197 3325
1000 IA1'D WE MANT MONMY 150 1800 1872 L947 2025 2106 2190 2278 2389 2453 2552 2584 Z77 L
2000 PMUHM AS En 90 LOGO 110 LISO 1215 1253 1314 1357 L421 147E 1537 1599 1663
3000 DirnWAL AS REQ 40 480 499 519 540 562 584 607 532 657 6B3 711 739
4000 MISC REPA[R AS PM 150 1800 1 B72 1947 2025 2106 2190 2Z78 2359 2453 2562 2664 2771
4500 ON ME KGMNT MONMY 50 Goo 624 649 575 702 730 759 790 B21 B54 BOB 924
5000 CARPET CLEANBIG 2 YEARS 40 480 499 519 540 562 584 607 832 557 583 711 739
DOM M&NAGEMEN7 FLY 500 6000 5240 6490 6749 7019 7300 7592 7596 3211 8540 Baal 9Z37
6000 MMMIMG AMN UAL 75 900 936 973 1012 1053 1095 1139 1184 1232 1261 1332 1388
OFMTING EXPENSE-4% 2200 2640D 27450 28542 29677 3OB58 32085 33363 34890 36071 37507 39000 40553
NET INCOME 4142 49704
N.O.1 1942 23304 1.15 debt eve
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1 9.: 20DO 200 :2004 997 2�00 .. 2005
2100 1st TIX Carom rum $210.000 1090 20276 19794 19794 19794 19794 19794 19794 L9794 L9794 19794 L9794 19794
221 0 D HOME god TO deferred 8518,000 0 0 0 0 0 0 0 0 0 a 0 0 0
City 3rd TDs deferred 147.ODO 0 0 0 0 0 0 D 0 0 a 0 0 0
ARP,4th TT) $40,000 M 1332 1332 133Z 1332 1332 1332 1332 1332 1332 1332 1332 1332
TOTAL EXPENSES -4001 -48008 -50573 -51605 --52801 -5303 -55212 -56490 --57B 18 -59200 -60537 --62131 -63BE5
RENT(00 4142 49704 51B92 53760 M910 58147 60473 52B91 65407 OBD23 70744 73574 76517
141t1's PER MD. 482 LAUNDRY 40 480 499 519 540 562 584 607 632 557 603 M 739
CAM FLOW 181 2176 1618 2614 3649 4725 5845 7009 8220 9480 10791 12154 13571
tmd19 rent per mo aw rent 44B 466 485 504 524 545 557 590 613 638
AHP&absidy$3 t10,000. 07 $111 8 425 3400
LOV AMW7�7 210000 2 400 960 mrV 5% net rnt
I`'ffldl'r RATE 9.00% 4360 -218 4142
TERM cvem) 30
PAII(LN7 AMOUNT 1690 Aoquiktioa 595000
Imililalmo 150000
M01,11i PRMPAL INT BALANCE Pekmtlm 70000
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Jurr-95 114.71 1575 209085 MY LN -47000
lid-95 115.57 1574 209770 ChsTtimn In -210000
he5 116.43 1573 209653 Alil?Loan -40000
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ATTACHMENT #5
Acquisition of 17361 & 17371 Koledo Lane
The City of Huntington Beach and Orange County Community Housing
Corporation (OCCHC)
Deal Points:
1. The City of Huntington Beach will provide $518,000 in HOME Investment
Partnership funds as a loan to Orange County Community Housing Corporation
(OCCHC). These funds will be used to acquire two 5-unit rental properties located
at 17361 and 17371 Koledo Lane.
2. All ten of the units will remain affordable for thirty years for households earning
less than 50% of Orange County median income adjusted for family size. An
affordable housing agreement, with a deed of trust, promissory note and regulatory
agreement, will be recorded against the properties as security for the loan.
3. Beginning in the fifth year of the agreement, and continuing annually through the
thirtieth year, OCCHC will forward the proceeds of a residual receipts account to
the City as a means of repayment of the HOME assistance. The minimum amount
of any annual repayment will be $1,200.00, provided that funds are available in the
account.
Both parties recognize that the annual repayment amount may not completely
repay the principal balance after year thirty. Any balance will be repaid at that
time, or renegotiated by the parties. The City reserves the right to audit the
financial statements of OCCHC to determine or verify the balance of the residual
receipts account. Any principal amount of the loan remaining will be adjusted
annually for inflation based on the Consumer Price Index (CPI), or another
comparable index, as mutually agreed upon by both parties.
Koledo Deal Points, continued
Relocation
1. A relocation plan must be submitted to the City for approval oriar to the relocation
of any tenants from the property. Name, gender, age, household income, and
amount of relocation payment must be furnished in the relocation plan. Further,
copies of all notices furnished to the tenants as part of the relocation must be
given to the City.
2. OCCHC must agree to indemnify the City against any relocation obligations and
expenses that arise from the acquisition or rehabilitation of the subject properties;
and also from any relocation and expenses that arise after the acquisition and
rehabilitation activities are complete.
Rehabilitation
1. OCCHC will rehabilitate the subject properties to conform with (at a minimum)
federal housing quality standards. OCCHC agrees to maintain the properties for
the duration of the affordable housing agreement and will allow the City to inspect
both the interiors and exteriors of the subject properties on an annual basis.
2. OCCHC will furnish a list of proposed repairs and improvements to the City for
informational purposes rp for to rehabilitation. Even though OCCHC is funding the
rehabilitation, the City will have the right to approve the list prior to the start of any
rehabilitation work.
3. OCCHC will invite the City to participate in progress inspections once
rehabilitation work has started. The City reserves the right to independently
inspect the units and OCCHC agrees to provide access to the City with forty-eight
(48) hours notice.
G:Brown\OCCHC1Koledoldealpntl.doc 2-
Koledo Deal Points, continued
4. OCCHC will furnish copies of all building permits for all items required to be
permitted by the Huntington Beach Municipal Code, with proof of inspection by the
Huntington Beach Building Department, where applicable.
5. OCCHC will test for the presence of asbestos and lead-based paint as required by
HUD regulations. OCCHC will remediate any asbestos or lead-based paint
hazards where the level of those substances is found to be in excess of
acceptable thresholds.
Environmental Issues
1. The City has conducted an environmental review of the sites in accordance with
HUD regulations at 24 CFR Part 58. Using those regulations as a guide, the City
has determined that the project is considered "categorically exempt"-from NEPA
(National Environmental Policy Act of 1969) and is not subject to further, more
complicated assessment. f
2. This review, while thorough, cannot be considered as exhaustive or all-inclusive
as a Phase I due diligence exercise. Because of this, OCCHC agrees to indemnify
and hold the City harmless from all liabilities (including penalties, fines, and
monetary sanctions) arising from hazardous materials storage on the sites, or
hazardous materials contamination of the sites.
3. OCCHC agrees to provide any notices, orders, or reports concerning
environmental matters that may affect the subject properties to the City prior to the
funding of the acquisition loan.
G:Brown\OCCHCIKoledoldealpntl.doc 3 -
Koledo Deal Points, continued
Prol2erty Management Issues
1. OCCHC will maintain the sites during the affordability period in accordance with a
restrictive covenant. Should OCCHC fail to adequately maintain such areas, and
any problems identified by the City are not corrected within sixty (60) days from the
date of written notice from the City, the City may perform the necessary
maintenance and OCCHC will pay all reasonable costs for that maintenance.
Further, if any conditions are identified as health and safety violations that pose a
danger to life and limb, the violations must be corrected within three (3) days.
Default Provisions
1. OCCHC agrees to the default provisions contained within the draft HOME
agreement. To summarize, the default provisions involve the immediate
repayment of the HOME assistance, with interest should any default by OCCHC
occur during the affordability period (30 years).
G:Brown\OCCHC1Koledoldealpntl.doc 4-
ATTACHMENT #6
01/02/96 -City Council/Redevelopment Agency Minutes- Page 7
S
(City Council) Approval Cf Loan Agreement-Affordable Housing Agreement -Orange
County Community Housing Corporation (OCCHC) -Acquisition And Rehabilitation Of
17361 And 17371 Koledo Lane - HOME FUNDS -Approved - Request For Pay-Back Policy
- Affordable Housing
The City Council considered the agenda communication from the Economic Development
Director transmitting the Affordable Housing Agreement between the city and the Orange
County Community Housing Corporation (OCCHC) for the acquisition and rehabilitation of
17361 and 17371 Koledo Lane and the Regulatory Agreement between the city and OCCHC
concerning the acquisition and rehabilitation of Affordable Housing at 17371 Koledo Lane.
Two inter-department communications dated December 29, 1995 and January 2, 1996 from
the Economic Development Director regarding acquisition of 17361 and 17371 Koledo Lane
were received and distributed to Council.
The Economic Development Director presented a staff report.
Councilman Garofalo spoke in support of the proposed Affordable Housing Agreement and
recognized Allen Baldwin, Orange County Community Housing Corporation representative, in
the audience for his support of the project.
Mayor Pro Tern Bauer requested that a pay-back policy for affordable housing be developed
and criteria for selection of management firms.
A motion was mado by Garofalo, seconded by Bauer, to approve the following:
1. Approve and authorize execution by the Mayor and City Clerk a Loan Agreement,
Affordable Housing Agreement, as amended, with Orange County Community Housing
Corporation (OCCHC) for$518,000 in HOME Investment Partnership funds for the
acquisition and rehabilitation of 17361 and 17371 Koledo Lane, and
2. Approve and authorize execution by the Mayor and City Clerk of the Regulatory
Agreement, Attachment No. 4 to the Affordable Housing Agreement, between the city and
OCCHC concerning the acquisition of 17361 and 17371 Koledo Lane as amended by the
inter-department communication dated January 2, 1996 from the Economic Development
Director.
The motion carried by the following roll call vote:
AYES: Harman, Bauer, Sullivan, Dettloff, Green, Garofalo
NOES: None
ABSENT: Leipzig
Mayor Pro Tern Bauer requested staff to put on the agenda of the Economic Development
Committee with criteria for assessing different alternatives to improving housing.
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
HLNTINGTON BEACH
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CONNIE BROCKWAY, CITY CLERK
SUBJECT: LATE COMMUNICATION REGARDING AGENDA ITEMS - 112196
CITY COUNCIL/REDEVELOPMENT AGENCY MEETING
DATE: January 2, 1996
Attached is material regarding the agenda:
F-2. **Inter-Department Communications dated 12/29/95 and 1/2/96 from Director of Economic
Development Regarding Acquisition of 17361 & 17371 Koledo Lane.
gx0,cbm=TWatccm
CITY OF HUNTINGTON BEACH
INTER DEPARTMENT COMMUNICATION
TO: Honorable Mayor and City Council Members
VIA: Michael T. Uberuaga, City Administrator tW 40
FROM: David C. Biggs, Director of Economic Development
DATE: January 2, 1996
SUBJECT: City Council Agenda Item 1/2196: Acquisition of 17361 &17371
Koledo Lane (Item F-2)
At the subject City Council meeting, Economic Development staff will present an
affordable housing loan agreement for the purchase of two, 5-unit rental properties
by Orange County Community Housing Corporation (OCCHC). The major deal
points were discussed with the Economic Development Committee (EDC) on
December 22, 1995.
At the EDC meeting, committee members felt that a guaranteed repayment
provision should be added to the loan agreement. OCCHC agreed to the
provision, but with some reservations. Should the Council concur with the EDC's
recommendations, the following language should be added as part of the motion to
approve the HOME funding Agreement: Delete the lined-through text and add the
following language (in italics) to the affordable housing agreement (and to any
attachments as needed):
The minimum amount of any the annual repayment will be $1,200,
OCCHC agrees to
make-up any shortfall that may exist in the account so that the
minimum repayment is available.
Should the balance of the residual receipts account be insufficient to
allow for the minimum repayment of$1,200, then OCCHC will have
the right to request that the City Council reduce, suspend or forgive
the minimum repayment. OCCHC agrees to bear the entire burden of
proving its inability to meet the minimum payment. The City Council
will reserve the right to reduce, suspend, forgive or renegotiate the
terms of repayment based on the evidence submitted by OCCHC.
If you have any questions or concerns, please call David Biggs at 536-5582.
MTUIDCBIGAB:gb
g:IBrown110CCHCIKoledo\Biggsca.doc
• b
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
Economic Development Department {I
00
TO: City Councilmembers
BY: David C. Biggs, Director of Economic Development
DATE: December 29, 1995
SUBJECT: SUPPLEMENTAL INFORMATION FOR JANUARY 2ND AGENDA
ITEM
Enclosed is a memo which outlines supplemental information for Agenda Item F-2
regarding Koledo Lane. We are forwarding it by mail to your home so that you will
have an opportunity to review the information with your agenda packets. Please feel
free to contact me at the office on Tuesday at 536-5909, or at home over the weekend
at 582-5505, if I can answer any questions about what is being recommended by the
Economic Development Committee.
cc: City Clerk
City Administrator
Assistant City Administrator
o �
+� r
r
REQUEST FOR COUNCIL ACTION Meeting Date: 04/03/95
SUBJECT: SUBJECT: HME 95-001
Council/Agency Meeting Held:�i3 � �-S Npr4 ve t.&Ire lain
s�ff
Deferred/Continued to: F. a�
❑Approved Conditionally Approved ❑ Denied City Clerk's Signe tur
X
Council Meeting Date: 04/03/95 Department ID Number: HME 95-001
REQUEST FOR COUNCIL ACTION �
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
r�—
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administra or
PREPARED BY: RAY SILVER, Assistant City Administrator6PA?
SUBJECT: APPROVAL OF FISCAL YEAR 1994 HOME INVESTMENT PARTNERSHIP
GRANT NO. 94-MC060514
Statement of Issue,Funding Source,Recommended Action, Alternative Action, Analysis, Environmental Status,Attachment(s)
Statement of Issue:
In order for the City to participate in the HOME Investment Partnership Program, it is
necessary to obtain Council approval of the HOME program.
funding Source:
1994 HOME Investment Partnership Grant Funds. These funds are not deposited directly intro._
city accounts. They are drawn directly ( as projects are approved by Council) from the federal`
treasury as needed for project costs and staff salary and benefit costs. All expenditures are
tracked and recorded by the city's accounting division, in cooperation with Economic
Development staff.
Recommended Action:
Staff recommends that the City take the following actions:
Motion to:
1. Approve the HOME Investment Partnership Program for Fiscal Year (Federal) 1994 at
$543,000.
2. Approve the commitment of $520,000 in HOME funds to the Orange County Community
Housing Corporation (OCCHC) in acquiring and rehabilitating two multi-family properties
in the Oakview neighborhood: 17361 and 17371 Koledo Lane ($428,500 in 1993 funds
and $89,500 in 1994 funds). Direct staff to return with proposed deal points and an
affordable housing agreement as soon as possible.
3. Approve the attached HOME Program Acquisition Guidelines and Multi-family - �
Rehabilitation Guidelines. r`
HOMERCAIDOC -2- 03/23/95 1:09 PM
REQUEST FOR COUNCIL ACTION Meeting Date: 04/03/95
SUBJECT: APPROVAL OF FISCAL YEAR 1994 HOME INVESTMENT
PARTNERSHIP GRANT NO. 94-MC060514 HME 95-001
Alternative Action(s):
Motion to:
1. Not approve participation by the City of Huntington Beach in the 1994 HOME Program.
Analysis:
Background
The National Affordable Housing Act of 1990 ("NAHA") established the HOME program as a
means of expanding and preserving affordable housing for low and very low income
households. Eligible categories of programs include: housing rehabilitation, acquisition, new
construction, rental assistance and first-time home buyer assistance programs. A minimum of
90% of HOME funds must be used to assist households below 60% of median income
($35,460). Huntington Beach receives a formula allocation, the amount of which is determined
much like the City's CDBG entitlement. HOME funds must be committed in two years from
their receipt and expended in five years.
A minimum of 15% of HOME funds must be awarded to special housing nonprofits known as
Community Housing Development Organizations ("CHDOs"). CHDOs may use the funds to
own, develop or sponsor affordable housing in Huntington Beach. In order for a nonprofit to
be recognized as a CHDO, it must conform to an extremely rigid set of guidelines governing
bylaws and articles of incorporation and make-up of the governing board (one third must be
low income). The CH DO must also have a history of serving the community. The city has
established a quality working relationship with two housing nonprofits in Orange County that
qualify as CHDOs: Orange County Community Housing Corporation (OCCHC), based in Santa
Ana, and Shelter for the Homeless, which is based in Westminster.
Beginning with the expenditure of Fiscal Year 1993 HOME funds, a 25% matching fund
requirement goes into effect. The match must come from non-federal sources.
Redevelopment housing funds that have been committed to certain other affordable housing
projects will be used for the match requirement.
All of the HOME projects completed to date have been accomplished in partnership with these
two organizations and those projects are described below.
HOME Acquisition and Rehabilitation Projects
The acquisition and rehabilitation of small multifamily properties represents an opportunity to
-Improve and preserve existing affordable housing throughout the city, but especially in focus
areas such as the Oakview neighborhood. With the decline in property values since 1990,
several properties in Oakview are either in foreclosure or nearing foreclosure--or have already
joined the growing stock of REO ("real estate owned") properties held by lending institutions.
Many of these properties are in a state of disrepair and are vacant, further contributing to the
d2ciine of the entire area.
HOMERCA3.DOC -3- 03/23/95 1:09 PM
REQUEST FOR COUNCIL ACTION Meeting Date: 04/03/95
SUBJECT: APPROVAL OF FISCAL YEAR 1994 HOME INVESTMENT.
PARTNERSHIP GRANT NO. 94-MC060514 HME 95-001
Using 1992 and 1993 HOME funds, three multifamily projects were acquired in Oakview during
1994. 17372 Keelson Lane, was the first HOME-funded project in Huntington Beach. OCCHC
purchased and rehabilitated this four unit property for very low income families. Shelter for the
Homeless purchased 7812 Barton Drive and 17382 Keelson Lane in the fall of 1994.
Rehabilitation of these two properties has been delayed for several months, but work should
begin as the weather improves. Covenants were recorded against these properties to ensure
their long term availability to very low income individuals and families. In all three cases, the
units will remain affordable well beyond the HOME required affordability period of fifteen years:
that is, for a minimum of thirty years.
'In order to achieve the most affordable monthly rents, a combination of deferred and
forgivable loans were used with these projects. For 17372 Keelson Lane, the units must
remain affordable for 59 years with extremely low rents. After that time, the loan is forgiven.
With 7812 Barton Drive and 17382 Keelson Lane a thirty year affordability period is required.
In exchange for a shorter covenant, the principal balance (adjusted for inflation) of HOME
funds must be repaid after the thirtieth year. With all three of these loans, any resale,
refinance or default will result in repayment of HOME funds with interest.
HOME Rents
Rents are established by HUD from time to time that are exclusive to HOME. These are
maximum rents; lower rents can be negotiated.
101IRli:11`1€t18", �.>.. $ VB ?: OW..Ii CfJ Y_7$_ ER $5 s
One Bedroom $530 $669
Two Bedroom $635 $804
Three Bedroom $734 $920
Note: These rents will be reduced if tenant pays own utilities
Rents will be adjusted annually when household income figures are published by HUD.
Attached is a matrix that outlines these projects in greater detail (Attachment No. 2). Also
attached is a matrix showing commitments and expenditures of HOME funds beginning with
the 1992 federal fiscal years (Attachment No. 3).
Guidelines for the evaluation of acquisition projects, along with guidelines for the rehabilitation
of multi-family projects are included for your review and approval. Updated guidelines are
required by HOME regulations and these guidelines will be expanded or improved as needed.
Proposed HOME Protects
$428,500 in 1993 HOME funds (out of a total grant of $584,0000) remain to be committed by
April 13, 1995. A failure to commit these funds by the deadline will result in their loss to
another local government. HUD recognizes a commitment of funds when formal City Council
action is taken to award a specific amount of HOME funds, to a specific organization, for a
specific purpose. Further action on an agreement, or contract, can take place at some date
beyond the commitment deadline.
HOMERCA3.DOC —4— 03/24/95 8:14 AM
REQUEST FOR COUNCIL ACTION Meeting Date: 04/03/95
SUBJECT: APPROVAL OF FISCAL YEAR 1994 HOME INVESTMENT
PARTNERSHIP GRANT NO:94-MC060514 HME 95-001
OCCHC has submitted a proposal (see Attachment No. 8) for the acquisition and rehabilitation
of two 5 unit apartment properties at 17361 and 17371 Koledo Lane. A total of$518,000 in
HOME funds have been requested: $268,000 for acquisition costs; $150,000 for rehab costs;
and a maximum of$100,000 in relocation costs. OCCHC will contribute over $250,000 toward
acquisition and rehab costs, and will indemnify the City against any unforeseen relocation
expenses-or obligations.
These units will be available to very low income households with affordable rents in the S450
per month range. Currently, six of the ten units have two families living together in one-family
units. They are paying approximately $750 per month in rent. Because of OCCHC's
involvement, one family will occupy each unit and will pay 30% of their income, or $450,
whichever is higher.
An affordable housing agreement, regulatory agreement, trust deed, promissory note and
other documents will be submitted for your consideration within sixty days.
The Agency's involvement with the HOME Program is consistent with the City Council's
established goal of providing for a diverse housing stock throughout the community (City Goal
#8).
Environmental Status:
Categorically exempt under the National Environmental Protection Act (NEPA).
Attachments(s):
1. HOME Program Summary
2. HOME Project Matrix
3. HOME Program Grant History.
4. Acquisition and Rehabilitation Guidelines
5. HOME Program Description
6. HOME Annual Performance Report (October 1, 1993 to September 30, 1994)
7. Location Map: 17361 & 71 Koledo Lane
8. Proposal: Acquisition & Rehabilitation of 17361 & 71 Koledo Lane
MTU.RS:G�blee
Numberity Clerk's
HOMERCA3.130C Z- 0 312319 5 1:15 PM
ATTACHMENT #7
J�
HB CITY.OF HUNTINGTON BEACH �y
INTER-DEPARTMENT COMMUNICATION G:P�
TO: RAY SILVER, Assistant City Administrator ..
FROM: GAIL HUTTON, City Attorney
DATE: May 5, 1995
SUBJECT: RLS 95-194-Employee Owned Rental Property
QUESTION PRESENTED:
You have asked for written confirmation of advice given by the City Attorney at the
Council meeting of April 3, 1995. At that meeting, discussion was held concerning the
ownership of property by a city firefighter and the question was asked whether the city
was precluded from loaning funds to a developer for the acquisition of the employee's
property. Evidently tMe property is in a redevelopment project area.
ANSWER:
The Agency is not precluded from loaning money to a developer who wishes to acquire
property owned by a city employee.
ANALYSIS:
While the question presented is.whether the Agency is precluded from loaning money
to a developer, the real question is whether the employee's indirect receipt of the funds
would create a conflict of interest for the employee. The only potential problem under
these facts lies not in the Agency's granting of the loan, but in the employee's potential
conflict in accepting money from the developer.
Conflicts of interest are addressed in the California Govemment Code commencing
with section 87100 (the Political Reform Act). The-purpose of the Act is to prevent
government officials from participating in decisions where it appears that they may not
be totally objective because the outcome of.the decision would likely inure to their
financial benefit{Witt v. Morrow [19771 139 Cal. Rptr. 161; 70 C.A. 3d 817)
By its very terms, the provisions of the Act apply to those in public government who are ,
involved in making a decision or using their official position to influence a situation
710pinloNconnlat
which they know or should know might impact them financially (California Government
Code section 87100). The Agency plans to lend to a developer and the developer
intends to purchase the employee's property. The employee, a firefighter, will have no
influence on either of these decisions and thus does not have a conflict, as it is defined
under the Government Code.
If the property in question is in a redevelopment project area, the conflict of interest
provisions of the California Health and Safety Code, will apply. Under section 33130 of
that Code, no employee who in the course of his duties is required to participate in the
formulation of or to approve plans for the redevelopment of a project area shall acquire
any interest in any property included within a project area within the community. If the
employee already owns such property, he or she must disclose this fact to the public
and such disclosure must be placed on the agenda for a regular meeting of the Agency
(California Health and Safety Code section 33130; 33130.5).
As under the Government Code analysis, the firefighter does not participate in Agency
financial decisions. Moreover, the employee is not acquiring this property under the
proposed transaction, but is divesting himself of it, so the Health and Safety Code
would not be applicable.
GAIL HUTTO ,
City Attorney
/sd
c: Greg Brown,
Paul D'Alessando, Deputy City Attorney
y/apinlWoonllict
RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Koledo Lane Acquisitions
COUNCIL MEETING DATE: January 2, 1996
.............
...........
...... ..... .... ........ .
;�RCA:"AT-TACHMENT's.."."....,:
. ...........
.............
TUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Attached
Contract/Agreement (w/exhibits if applicable)
(§J]qned in full by the City Attomey) Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attomey) Not Applicable
Certificates of Insurance (Approved by the City Attomey) Attached
Financial Impact Statement (Unbudget, over $5,000) Not Applicable
Bonds (If app dicable) Not Applicable
Staff Report If applicable) Attached
Commission, Board or Committee Report (if applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Afflicable
. . . . . . . . . .
. . . . . . . . .. . . .
. .... . . . . . . . . .
. . . . .. . . . . . . .
EXPLANATION FOR MISSINGATTACHMENTS .
:
. . . . .. . . . . . . .
. . . . . . . . . . . .
. . . . . . ... . ETURNED fORWARDED'.REVIEWED
R
. . . . . . . . . .
-------------
Administrative Staff
Assistant City Administrator (Initial)
City Administrator (Initial)
City_Clerk
...........................
EXPLANATION:FOR"RETURN�..-:OF.:ITEM .
:":4':"�:4;4":
............ .
(Below Space For City Clerk's Use Only)
ORANGE COUNTY
COMMUNITY HOUSING CORPORATION
p:�1•'f. s.� zRv E
December 2$ 1995
1 s
Greg Brown � ►�; a .� '�i " 1 .;°, g 199
City of Huntington Beach i Y DEC 2 5
2000 Main Street C�EP11-1.11 SENT OF
Huntington Beach, CA 92648 ECONOMIC DEVELOPMENT
re: Koledo HOME Contract
Dear Greg:
.F` ,•yv
As always, it was a pleasure;meeting with:thd-EDC-,. yourself and David Biggs.
Our boardmembers residents`'of the Cit continue`to be m 'ressed b their City.
t .Y) _ p Y Y
How do you put "businesslike-but friendly"._oq.-a-billbaatd?
The Corporate Resolution.was modified on the 30th of October, but we apparently
forgot to get it to those who'rieeded it. It'is enclosed f6'-:your use.
Looking forward to a great meeting on January 3, 1996,, I. am,
Yours truly, '
Allen P. Baldwin
Executive Director
1833 East 17th Street, Suite 207, Santa Ana, California 92701 (714) 558-8161
ORANGE COUNTY
COMMUNITY HOUSING CORPOkATION
CORPORATE..$
QN FOR LENDER
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«asodtlled,aY asr taw it eta dseaa asd 9964 In bi Mawiss isms:
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10*06,(t)10 baron room badw =leadng aa
su .is an tAx aea of eedsw.occoc may nquin oa saeh mm cad caoditm
as Mall U tarq*W by kaw,mW bdWad aetirmr mxb ptomiwoq=%a and vthu svW weea of ieAebbm&ww tar meh ammo b%wm a or
sdwtmW as bMw d O eagsita,qte&*mw bsiap ales atahaiM m dartot atatly or in witlnr dw di isadda)t of ma pr"wm of ear each
oblisa"and 0 soospt«duet deliver tivm reatrow of airy nett prwmb or adter pr%m tr of GCCW a"titre hail by teed"-:M to
"Woof w0 betder der the inwsoe M 4aw of w"of ma sad far omw f wtcial acpnawodainre ey&so is the di.c I"=of the
Me(pap be a g*W don OCCf1C.e &Mm as later,as Imdat eheII t W&V;p)N amen•wo s;taenosesa for ibe i"ft-&or purohaee of
ttrapd0'b7'40CtIC leader.for each cocas eted tipoa"etch teawli m my be"*Able in da m*jamept of dte desiinec:(4)to g"
ssomtiey iattaaosb la.epmtpsso.artearebat pk*.eosrex,tpaat.b"ndWats.dead is nus,emalpa,fall,Vaud%seed deriver m leader h arch
iwitettmam b rtidilp a athet+siaa w atq be rogyind by sender.m7 a[the property o!OCC'ItC(tvhamor rat;*trance!«mixed),m abCste
dw paymal of prombwq aofee,sums sea,sa emmas,awd fay char eve mra or h dd daeaa ad other;1;4 ama of occw slt�ned
into pww+asd a mesa taaatatiaer,tad w11 .ptrxsinoq aaMa,�ataea,tt6ttteawrese,a>!d aegr other evldeMee of iode6ladnese
tad drier a►rrpad0W of 0CCSC.ssds aP-1 I oiler OMWAoas O M64 may bo to mob forme cud oodda itch provkiow.eovaaasn,
aniatlq ad apoema a a badar my iqAw mW Ra drdVm may applo4%ad die saea dw amwr by dw dsakpw sW be oosahaivs
svldaroa d ettei s+psnr,eh lf)ea asssdeM,swdeKis.and tea tq«eo d'seama�riW eaetow,saw,�bidia of ewiaaQs.taeatrabiea
and a*- and evideaeaa of k d*tmimes toy"to,a 060 w Mid at Owsad by OCCW.taros.ash to K mey be asreed
Vw by 6e&**r wA Mom.ed w 1 m- tad 6t3 m to Mader SW sea% wcgaomk bills of ewharyr.reebtvab&m wA Q&w
ivatwmMfrle tad eviAMina of isdsbwdmn a wepotistsd.etadwasd,Gold,of dasama d.sari 1a pumfte 6s pqm w of the wts to ksdn;
(6)to aesstr statMr sroaad.L ta4ola or ie MR,any proddom Wooer.+aaremkv%@&V trade,afar aAftm of badebaadmu cad other
allftedow at 00CNC viioh area is 6ea emhtom relented to,asd to s=mft asd deli w%as row awls tasew&sailer aaoem)oa
asoW&W*-W M 10 psrforrw all aeb AW WPOWe MW deliver A Lomtaarsae hs wdft w6ki kWw mmy&cm is+ecmw to tarty out tie
pmpm of tiwe tas kdms;
be
and Me� too*=im Ad)Fees and street ON>rt�o mcWemcWee of brit momion (f wbb velzdfiWcopy lender.
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ar ewy as OW OWY CPNb nwhA ss U*Minod to bode-or O&Wmee dedpsaW by badbr,mW=0 edl odd tedmu and obhsewm*blob
may haw bees 1wwnd 1w s6, 1 mill shalt hws ban fidly paid,satidkd,and dlsebnped,sad w Kwh revocalan,son"y nre644 of any soli m
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tatwculos by ieodsr is as meaner*b n*mq haw bmm iseutrad as tfonasid)rosy have best hwmaed as adaevasid;
41 VflrN t VINME01F.t bow bmitueso as my baW ad alaxedta wrpmm neat oFOCCUC.
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Dlitf7oNt�: Albs F.DaWwfs.®see Dusaw $.on*8*0
i
. ........ . .
1833 East 17th Street? Suite 207. Santa Ana, California 92701 1(714) 558-8161
City o Huntington Hunti ton Beach
2000 MAIN STREET CALIFORNIA 92648
DEPARTMENT OF ECONOMIC DEVELOPMENT
Office of the Director 536-5582
Housing 536-5542
Redevelopment 536-5582
Fax (714)375-5087
March 22, 1996
Judy Moore, Escrow Officer
First American Title Company
114 East Fifth Street
Santa Ana, CA 92701
Dear Judy: '
SUBJECT.Escrow No. 9562585M(17361 & 17371 Koledo Lane)
Please take the following actions on behalf of the City of Huntington Beach:
-r
• Pay leinholders of the subject properties the total amount of consideration noted in
the demand statements from Cal Fed dated February 28, 1996. Please note that
you are authorized to fund these loans "behind"the existing City of Huntington
Beach loans;
• Confirm that casualty insurance in the amount of$518,000 is in force, and in a
form similar to an example that is enclosed with this letter.
• Secure an ALTA Lenders Title Insurance Policy in the amount of$518,000
showing the City of Huntington Beach as second lienholder;
• Execute the promissory notes, deeds of trust; and covenants that were delivered to
you. Denote First American Title Company as "Trustee" on the deed of trust;
record the deed of trust and return the promissory note to me. Please notify me of
the date that the deed was executed and I will have the city clerk execute a deed
certification. You will need.this certification to send with the deed to the county
recorder.
Thank you for your assistance with this project. Should you need further help with this
transaction, please call me at (714) 960-8831.
Sincerely,
r Vment
De tecialist
GB:gb
Enclosures
Copies: Allen Baldwin, OCCHC
/Connie Brockway City Clerk
0/1994 16:13 714-5 4--2 Cud COKALI�ITr a4 P-:ram
..: 2) To pay the cucu secu►ed by the Dodds of Trust, the amount.cd type of Coverage"I t c
tuffici=t to cover the bWlding wid these fixtures.insWiatious or additions(including walls.
ceilings aqd floor coverings)comprising a pars of the bullying uitbin the unt5nisbcd iatcrior
surfaces of the pwitneter wall:.
3) With retpoct to the building coverage, the 'named inured" moat iaclude: 11c ow7tcrt'
Asmeiuion aid the owners and dedarant as UmR tU dedwszt is the owner of tick
ENEW Af S Must be in our office 30 days prior to eapimtiod date. Renewal policies tuba ittod aft"the 1 Stb
day must be aceompuued by■S5.00 tarbstitution foe payable and authorized by our botrow+er.
if a policy is tot received by expimtiom date Westam Financial may order covcnge without
notice sad&arse the borrower.
U135TIT T IONS If you wish to substitute or repla.'.e an austicg policy. it utter be acwmpaniod by a $3.00
subsdtudon foe and a sigtaod autbarisation front the:bompwer.
ATICELLED Shall be minsumd on or bcfom effective date of cancellation by written notia:e from ias%t ng
OI..ICIES rompsAy only. If re=wsenm is not roosivod by due of cancellation,L-aL=re may bo ordemd
by Western Financial and an coned premium may be charged. A S5.00 aubstitubou fee may
be chargeable for late rsinstata=u.
IROXER OF RECORD Mud sceompany all new or anew policies if ibam it a ebtage in the agent or broker of ra=t
&UMORIZA'I'ION sbmm in out ma.
ASS'IZM If yaw inausaee does not msi with Wcown Finaa"'s mquiretnents, to protect its iourest
ZNANCIAL MAY as spedfiied under the Dead of Trust,Westem Fa aacid may obtain covemga and for borrower
aRDER A POLICY wiD be eharged-
QON-CONFOKXNG Addltional Lnurt m Raquin=cuu on buildins which do not conform to building or roes:
• USgS. ordiaaAces:
a. Contingent LiabUy from Opetation of B>dldiag Iswn E.dorsement mLw be attached-
b. Replaeam=t Cott endorsbmant must be---dad by deleting 'replscemutt on the same
promises'mvirrmea:.
e, Demolition Cane Eadoracmea t shmdd be at Wiled i=to adequate uaotxrt.(OP60AO)
�u amount of oove.-age requtirod by A'e�taal may not bo adequate to protect your ownership equity itt the prope' n=ry.Wo
Financial bas no respoasibility to protect your interest. You sbould, &wefom, fr'equutttly review your own user ca aooda w
dow mica the adaquacy of eny covvtge.
,. : •., -. You am advised that West,=Fiaaerial,in its sole$it-•ration. ray change ita requimmants from time to time without prior wriu=
notice.
ORANGE COUNTY COM MNITY HOUSING CORPORATIDN
A CALIFORNIA NONPROFIT CORPORATION
BORROWER ALLEN P. BALDWIN DATE
ITS: EXECUTIVE DIRECTOR
•_ BORROWER � DATE
E
C� L
BORROWER DATE
BORROWER DATE
4
t.—F._,.v Y.C.1#00.—e 3ses P.Q. 2 of 2 In4.i.: IJFT/WP9+oa W&'