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File 2 of 2 - Old Civic Center Site Project Prosposals
r, Wilshire-San Vicente Plaza Suite 700 8383 Wilshire Boulevard Shapell Beverly Hills, California 90211 Government Housing, Inc. 213 655 7330 S.C.L. No. B262917 Elliott Maltzman A Subsidiary of President Shapell Industries, Inc. December 22, 1978 . l City of Huntington Beach P.O. Box 190 Huntington Beach, California 92648 Attention: Steve Kohler Senior Community Development Specialist Re: Huntington Gardens ` Gentlemen: Enclosed please find our proposal for Huntington Gardens in response to your request for proposals. Attached please find the following: . 1 . A Narration describing the project. 2. Cost analysis of the project. 3. Management Program. 4. Developer resume and qualifications 5. Financial information regarding the developer 6. Schedule for development. Being forwarded under separate cover are the following architectural exhibits : 1 . Site plan 2. Elevations 3. Floor plans including a. Senior Citizen Center b. Elderly Housing 4. Unit plans including a. One bedroom units b. Two bedroom units c. Handicap units 5. Landscape drawings 6. Rendering i December- 22, 1978 Page - 2 - We hope that you give this most worthwhile proposal your consideration. Very truly yours, SHAPELL GOVERNMENT HOUSING, INC. Mark Maltzman Vice President MM:1 rf Enc. r^- NARRATION In coming up with this proposal , our architect as well as ourselves went through several trial runs trying to meet the City's objectives. Our first goal is and has been to design the housing units so that they would qualify for the Section 8 existing program. Our second goal was to make these units',not only desirable dwelling units, but something that the City of Huntington Beach would be proud of. Our third goal was to provide as many .units as possible keeping in mind our first two goals. Our first effort was some sort of high-rise or mid-rise, however, both of these alternatives proved too costly. Even taking into consideration the City's generous offer of leasing the land for $1 a year, our projected rents for a mid-rise or high-rise were at least $150 over and above our projected rents for the three story that we .finally have proposed. Our second approach was that we considered congregate housing. This would entail four bedrooms and four bathrooms with separate entries around a common kitchen, living and dining area. We felt that this type of proposal would keep the cost down and at the same time provide the residents with their own privacy. The reason that we did not propose this was threefold. The first is that there still remains some unanswered questions regarding the public acceptability of such a project; secondly, our inability to design this type of project economically and still include elevators; and thirdly, we anticipated that HUD will .be very slow in accepting this type of innovation as we are working with them on a similar concept in two other cities. Our third trial was the notion of studio type units, however,, we felt that if at all possible, such a unit should be avoided as it does not really provide the living space necessary for one or two individuals. We, therefore,- settled upon a proposal based upon a three story, elevator with interior corridors, one and two bedroom type project. As can be seen from our attached cost analysis, we feel that this type of development will work within the Section 8 existing program parameters. Our fourth goal was to provide a Senior Citizen Recreation Center to replace the existing facility at 17th and Orange Avenue that would conform to the specifications set out in the request for proposals. LIBRARY IMPROVEMENTS We also propose to make minor alterations on the Library building including exterior modifications and landscaping improvements. The purpose of this would be to up-grade as much as possible the Library facility itself as well as to coordinate the Library exterior with the design of the new Senior Citizen Center and Senior Housing Project. We estimate these improvements would be $100,000. SENIOR CITIZEN CENTER The Senior Citizen Center that we have proposed is a two story facility consisting of 12,530 square feet; the first floor containing 8,330 square feet and the second floor 4,200 square feet. The CENTER has its main entry off of Fifth Street with 66 parking spaces around the complex between Fifth and Sixth Streets and on the old Pecan Street right-of-way. The CENTER has been placed between the library and the housing development to integrate the Library space and the Senior Housing space as well as giving it optimal accessability. On the first floor of the CENTER there is a large assembly room with a seating capacity of at least 500 persons. This assembly room is designed with removable walls so that it could be divided into three sub-assembly or meeting rooms. In addition, there is a hobby and game room adjacent to the assembly room. Both the hobby and game room can be serviced by the kitchen which is designed to accommodate the needs of the CENTER. It shall have warming ovens, sinks, commerical refrigerators, ranges, counter top work space, storage and pantry. Also next to the assembly room is a room for storage of tables and chairs. The first floor also contains restrooms with a ladies lounge and handicap equipment, and a foyer reception lounge at the entry where there will be easy, covered access to busses. There is also .a coat storage, janitor closet, vending machine alcove and elevator making the entire building accessible to handicap. There is also a public address system in all rooms. - On the second floor there are offices and office space sufficient for the fifteen person Senior Outreach Program staff, the ten person Senior Citizen Center staff, as well as three special offices for the Senior Outreach Program Coordinator, the Council on Aging Representative and the CENTER Director. Outdoors the area is designed for passive as well as active recreation. There will be .quiet outdoor seating areas and there will be an activity area which sha-ll include four shuffle board courts. The CENTER is also designed so that delivereies may be made in the rear adjacent to the main storage and kitchen areas which are also near the trash areas. Our estimation of the costs for the Senior Citizen Center is $5.00,000. We anticipate that the funds for this could be made available from HCD funds over the next two years. SENIOR HOUSING PROJECT The project that we have proposed is a 136 unit three story, four elevator building including a manager's office, hobby and exercise room, lounge, laundry room and trash facility. All of the units are accessible through indoor corridors and elevators to the ground floor making all units accessible to a handicap person. There are 117 one bedroom units, six two bedroom units and 13 handicap one bedroom units. Each of these apartments has its own kitchen, dining area, living area; bathroom, storage area and patio or balcony. The units come equipped with refrigerators, ranges, garbage disposals, carpets and drapes. All of the units contain grab bars, wider doorways, elevated electrical plugs and safety related features including smoke detector alarms and emergency call systems from the bathroom and bedroom to the manager's unit with indication where the emergency is occurring.. This is a 24 hour feature. Ten percent of the units are designed7specially for handicap persons who might be permanently confined to a wheel chair. This includes special modifications for ease and manueverability as well as kitchen cabinet ' modifications and bathroom modifications to allow a person to roll themselves in a wheel chair into the shower. The total building shall be designed for security necessitating a key for entrance. The elevators are strategically located in the corridors so as to minimize walking distance. Two of the elevators are designed to be extra large to facilitate moving as well as medical equipment operation. In addition, the elevators will have a telephone to the manager's office. The hallways have handrails, trash chutes and no stairs for ease and manueverability and handicap access. For the past several years our company has been a leader with regards to energy saving devices such as solar energy and flourescent lighting. We anticipate using the latest of any•.of these that are available yet are cost, - efficient. Outside the building there are 46 parking stalls for the use of the tenants, 14 of which are covered. There are quiet outdoor areas as well as a large activity area which includes a vegetable garden and a game area to be either shuffle board, horseshoes, etc. Also included outside is a private health spa jacuzzi . In addition, the parking spaces are designed so that in the event not all of them are used, there will be additional activity areas suitable either for badminton, volleyball , etc. The landscaping is designed to utilize all of the beautiful palm trees presently existing on the site and the building has been designed to require the relocation of a minimum of these palm trees. As can be•determined -from the cost analysis, all of the apartments should qualify for existing Section 8 rents. This was one of our main goals in designing this project. We designed the parking to be surface parking as opposed to subterranean to keep the cost of construction down while at the same time keeping the building's visual impact at a minimum with respect to the surrounding neighborhood. ` a FINANCIAL FEASIBILITY - COST ANALYSIS LIBRARY IMPROVEMENTS: Interior building improvements $25,000 Exterior building modifications 55,000 Landscape, alterations 20,000 TOTAL $100,000 FINANCIAL FEASIBILITY - COST ANALYSIS SENIOR CITIZENS CENTER: 12,530 square feet at $33 a square foot $413,490 Architectural and City fees 25,000 Financing, organizational and .other fees 61 ,510 TOTAL $500,000 FINANCIAL FEASIBILITY - COST ANALYSIS SENIOR HOUSING PROJECT LAND IMPROVEMENTS: 84,000 sq. ft. at $1 . 16 sq. ft. $ 98,700 This includes site grading, site utilities, site improvements, roads and walks, lawns and planting. STRUCTURES: Main Building - 101 ,142 sq. ft. at $23 sq. ft. 2,323,418 This includes all of the building trades, labor and materials necessary for foundations and structures GENERAL REQUIREMENTS: This covers on-site supervision, telephone, ` trailer, bond fees, clean-up, etc. 150,000 FEES: Builders Overhead 2% 52,000 This covers office overhead including Equal Opportunity Affirmative Action, Federal Wage and Labor Compliance. Architectural Fees 136,000 This includes all design work, engineering such as electrical , mechanical , plumbing, civil , structural , soil and acoustical . This also includes architectural supervision during construction. . Bond Premium 27,000 Other Fees 146,000 This includes sewer connection fee, water fee, recreation and parks fee, bedroom tax, construction tax, cultural fees and E. I .R. CONSTRUCTION TOTALS: Equal to $29 sq. ft. The estimated construction $2,933,118 time for the foregoing is 12 months. SENIOR HOUSING PROJECT Financial Feasibility - Cost Analysis Page - 2 - CARRYING CHARGES AND FINANCING: Interest at 14 months based on a loan of 92% $ 1.82,770 This is based upon Federal 221 (d) (4) financing using Program 27 Taxes 5,000 Insurance 13,200 Mortgage Insurance Premium 33,000 FHA Examination Fee 9,900 Inspection Fee 16,500 Financing Fee 66,000 FNMA/GNMA Fee 49,500 Title and Recording Fees 13,200 TOTAL CARRYING CHARGES AND FINANCING $ 389,070 LEGAL, ORGANIZATIONAL AND AUDIT FEES: 17,500 BUILDER/SPONSOR PROFIT AND RISK ALLOWANCE: 333,968 TOTAL DEVELOPMENT COST: $3,673,656 LAND: 1 TOTAL REPLACEMENT COST OF PROJECT: $3,673,657 90% MORTGAGE BASED ON REPLACEMENT COST: $3,306,200 RENT DETERMINATION ANALYSIS SENIOR HOUSING PROJECT Net income to project necessary to retire mortgage based on 92%, 40 year loan $376,436 Total project expenses per year 1087000 Effective- gross income necessary to pay mortgage and operating expenses $485,236 Occupancy Factor 93% Estimated project gross income needed per year $521 ,760 Total estimated gross project monthly income per month $.43,480 Laundry income per month 204 Total estimated rental for all units $ 43,276 Income for 2 bedroom units $ 2,196 Income for 1 bedroom units 41 ,080 Unit rent per month: 1 bedroom units $ 316 Utility Allowance 22 $ 338 2 bedroom units $ 366 Utility Allowance 27 $ 393 SENIOR HOUSING PROJECT Rent. Determination Analysis Page - 2 - FAIR MARKET RENT ANALYSIS Fair Market Rent for 1 bedroom $236 for 2 bedroom $280 Projected Fair Market Rent as of May 1979 for 1 bedroom $283 for 2 bedroom $336 Maximum allowable rents for 1 bedroom $340 for 2 bedroom $403 The 20% increase is allowed pursuant to Section 882.106(a)(3) of 24CFR dated May 13, 1976. The rents are expected to go up somewhere between 2d% and 30% within the next six months. This will give us the base Fair Market Rents listed above. The 20% allowance over that is allowable in higher rent areas in circumstances such as this. As can be seen, the rents supporting this building are just over those trended Fair Market Rents as adjusted. The interim interest loan as well as the take-out loan are based upon HUD guidelines that are presently existing. The take-out loan utilizes Program 27 which is a 91,%, 40 year loan. This project has a much lower monthly payment due to the extended period of time to be utilized for payback. 0 MANAGEMENT PROGRAM FOR HUNTINGTON GARDENS We propose to manage this project with SGH Management Company, a HUD approved management company. This company by 1980 will be managing 2,000 units throughout the State of California including several hundred units in Orange County. Attached please find a sample management plan, resume and lease. This delineates in detail the operations, policies and organization of SGH Management Company as they pertain to Huntington' Gardens. HUD-9405 MANAGEMENT PLAN REQUIREMENTS (1 ) 1 . Sponsor/Managing Agent Relationships and Responsibilities The Managing Agent will be responsible for the supervisory aspects of each project, and the resident manager, maintenance personnel , etc. .will be accountable to the Managing Agent. All. procedures of the day-to-day operations of each project will be developed by the Sponsor and the Managing Agent. In the area of major expenditures (for maintenance and repairs, etc. ) , the Managing Agent will consult with the Sponsor for expenditures exceeding $500.00 for single purchases and for all project contracts. The Managing Agent will make decisions in the area of hiring and firing staff, authorizing general maintenance and repairs , supervision of the daily operations of the project, tenant relations , etc. Mark Maltzman, Vice President of Shapell Government Housing, Inc. , general . partner of .the Sponsor is the. liason with the Managing Agent. He is em- powered to make any decisions concerning the operation of the project. The Managing Agent will provide the project manager with guidelines on referring tenants with problems and will be available when necessary to assist the tenant with said problems. The project manager will be re- sponsible for carrying out all social services. Residents and applicants are regularly referred to social service organizations best equipped to handle the individual problems. The above delineations of responsibilities between the project manager, the managing agent, and sponsor are specifically designed so as to clearly assign to each individual , or group its area of responsibility so that there is no overlapping and that all basic responsibilities are covered and under- stood. Project expenses are clearly delineated through thorough accounting procedures. 2. Personnel policy and staffing arrangements. Both the agent and the sponsor are equal opportunity employers. All hiring and treatment of employees is in conformance with all equal employment opportunity requirements. Twenty percent of the staff is presently minority. The Affirmative Fair Housing Marketing Plan lists the ethnic and minority makeup of the Managing Agent. I i HUD-_ u5, coat. k-; The project manager performs most of the managinal duties , however the manager makes every effort to help those residents desirous of working to find work either at their project or at other projects where either the Sponsor or Managing Agent is involved. Such work includes painting, cleaning, plumbing and general maintainance. The anticipated staffing of this project is as follows: Resident Project Manager - This is usually a couple. The salary includes an apartment. The salary ranges from $300.00 to $500.00 per month. There are no additional fringe benefits at this time. Prospective managers attend a very comprehensive training seminar covering all aspects of on-site management from tenant selection, certification, re- lations to bookkeeping, first-aid and general maintenance and all relevant government regulations. Every three months the managers are brought ue to date on any changes in the above. In addition, there is on the job training administered by the field supervisor. Employee grievances are handled at various levels. If the employee works for a Resident Manager, his first course of action is to discuss the problem with the manager. If an equitable solution cannot be reached, the matter is referred to ,the Field Supervisor. After evaluating the roblem the Supervisor will make the final decision, which will be binding. If the employee is a Resident Manager, or a Supervisor, his first course of action is to discuss the problem with his Field Supervisor. If the problem cannot be resolved, it is then referred to the Vice President or President .of the Agent. They will render final judgment on the matter. If a supervisor has a grievance, he will discuss this with the Vice President or President of the Agent. They will make the final decision as to the solution. All employees sign an employment contract stating that either party may ter- minate the contract by giving at least seven days ' notice. If the employee is a manager, arrangements are made to effect a smooth transfer between the outgoing ab d incoming manager: The outgoing manager is usually required .to vacate the premises within a reasonable time following the effective date of termination of his employment. The line of authority goes from the Resident Manager to the Supervisor to the Vice President to the President. HUD-9405, Cont. (3) 3. Plans and Procedures for Publicizing and Achieving Early Occupancies At least ninety days prior to the estimated date of completion, management will begin an extensive marketing program. This will include both advertising in the local newspapers , contact with churches , senior citizen organizations, public service organizations , and other civic agencies in the surrounding community. An on-site office will be open as soon as the construction company declares the area safe for the general public. The office will be opened five (5) days a week during normal business hours to take applications. Greater detail concerning the project marketing is given in the Affirmative Fair Housing Marketing Plan. After sustaining occupancy has been reached, the general procedure for fill- ing new vacancies is to contact those persons on the waiting list. If this proves unsuccessful the project manager then places newspaper ads in the community papers , which generally run every other day until vacancies are fil-led. If a vacancy is not filled within five working days , the supervisor is con- tacted. The supervisor will make the decision regarding additional marketing efforts at that point. The Management company envisions no difficulty meeting the requirement that 30% of the contract units under Section 8 be initially occupied by very low income families . Out-reach efforts will be made to contact prospective applicants that are on fixed incomes , such as senior citizens , and physically handicapped persons. Contacts with local senior citizen groups , churches , Department of Social Services , Welfare Department and th-- Social Security Administration should provide ample referrals to meet the 30% requirement of very low income families. The Management has found that a well-run viable project generally reflects both the economic and racial mix of the surrounding community. The project is a part of the surrounding community and must relate to that community. Out-reach efforts are made to achieve an economic and racial mix within the project. These efforts are outlined in the Affirmative Fair Housing Marketing plan. All prospective residents are interviewed by project staff as one part of the selection procedure. If an applicant is chosen for residency, he is contacted and a final appointment is set up for apartment inspection and the lease signing. Prior to the signing of the lease the Resident Manager and the prospective tenant inspect the unit. At this time an apartment inspection form is filled out by the tenant. This form must be placed in the tenant' s permanent file. Failure to place said form in the file is grounds for termination of the manager. During the apartment inspection the manager carefully instructs the tenant in the operation and maintenance of all apartment appliances. This includes the operation of a wall thermostat for both heating and air conditioning, the operation of the stove and its cleaning, and the operationof the refrigerator and its cleaning. The Project Manager is responsible for the tenant selection. His selection is based on the background information obtained from the tenant's application, . verification of employment, and on the basis of the personal interview. If an applicant who has not been accepted wishes to discuss the matter further, he is referred to the Supervisor. All selection procedures are specifically designed to conform to governmental regulations. HUD-9405, coat. - (4) 1 4. Determining tenant eligibility and certification of incomes. The Managing Agent will be responsible for determining tenant eligi- bility and certifying and recertifying income. This will be done by the project manager or an investigator should one be needed. All managers are 'thoroughly instructed regarding certification and recertifi- cation requirements. Any changes are immediately transmitted to the managers in writing. All managers are thorougly familiarized with HUD requirements covering family size and composition in relation to unit size. Tenant incomes will be recertified at periods consistent with HUD guidelines. 5. Effective Maintenance and Repair Program. a. All equipment and appliances are inspected and tested by local and HUD inspectors as well as by the managing agent prior to the initial occupancy of the units. b. Occupied Apartments- All apartments will be inspected every six months to as- certain the condition of said apartments. Any damages or maintenance problems which have gone unreported will be repaired at that time by the maintenance man (manager or assistant manager) . Vacancies- The resident manager will inspect an apartment immediately upon move-out of the tenant and complete a written "walk-through" report which will include all necessary repairs to be done (including appliances , floors, walls, windows , fixtures, etc. ) . In addition, the necessary refurbishment of carpets & drapes and painting will be scheduled, as well as general clean- ing of the apartment. c. Painting of the .interior of occupied apartments will be done every three years , and the exterior will be painted every five years . Apartments that are vacated will be painted as needed prior to new occupancy. d. The number of trash bins and weekly pick-ups will be determined by the number of units of the project. e. The necessity for major repairs will be decided upon by the Sponsor. Job bids will be received and the work will be carried out under the supervision of the Managing Agent. f. A gardner will be on .the building staff for grounds upkeep and maintenance. All purchases will be approved by the Managing Agent. g. A janitor will be on the building staff for cleaning entryways , halls , and other common areas such as laundry rooms, sidewalks, driveways and parking areas. h. Tenants will be instructed to report all maintenance problems to the project office. 6. RENT COLLECTION. a. The rent is due on the 1st of each month. The manager will be available for on-site rent collections . There will also be an after-hours depository. b. Partial payments or advance payments are allowed only at the discretion of the manager. On or after the third of each month the manager will notify tenants of a "missed" payment. If a 'tenant is over five days late in his rent payments he may be served a "Pay. or Quit" notice. There are no "late charges" . I.f a .tenant has budget problems the manager will refer him to a bank or other institution for guidance. Almost never is a tenant allowed to owe one month 's rent. Rent must be paid in advance. Generally speaking, the only reasons for accepting a partial payment are for medical illness or accident, or the loss of the resident's job. The eviction policy is as follows : a. Evictions for non-payment of rent. If a tenant fails- to pay his rent before the expiration of the "Pay or Quit" notice, the matter is referred to the Field Super- visor. . He reviews the situation with the Resident Manager and makes the decision on whether or not to turn the matter over to an attorney. If contacted, the attorney is directed to take the appropriate action to obtain possession of the apartment unit. The management company does reserve the right to sue for unpaid rent, attorney fees , court costs, and damages exceeding the tenant's security de- posit. b. Eviction for cause. The reasons for eviction for cause stem from violations of house and/or ground rules, pursuant to keeping the property in good order.; to the breaking of the peace as it concerns the neighbors ' .comfort and safety and his right to the quiet enjoyment of his premises. Our tenants are counselled repeatedly about their community conduct. They are eventually warned. Should the counsellings and the warnings fail , they are finally served a 3-day notice to comply or quit. If the tenant continues to disregard warnings and said notice, steps are taken through legal counsel to ter- minate the resident's tenancy. It should be noted that our lease specifically states that either party may ter- minate the lease at .the end of the initial term by giving 30 day written notice. The Management Company utilizes a computerized accounts receivable rent col- lection system. Only cashier' s checks , money orders or approved personal checks are accepted for payment of rent and security deposits. All monies are deposited directly into the rental agency account, with tenant security deposits being trans- ferred to a separate account entitled "Tenant Security Deposit Account". 7. Program for Maintaining Adequate Accounting Records and Handling Necessary Forms and Vouchers The Management Company provides the full accounting procedures and reports required by HUD and the company itself. All employees are under bond. Records are kept at the project and in the company office, ready for inspec- tion or audit. As already stated, the management company uses a computerized accounts re- ceivable system. This system, used in all our operations , synthesizes the writing of a complete receipt to the tenant, along with the detailed allo- cation of the monies for auditing. All monies from the project are to be banked in Beverly Hills, California at the Union Bank with the reports mailed to the company Beverly Hills office. All monthly, quarterly or yearly reports to HUD are .prepared in the Management Company office. Of course, all reports are open for inspection by the Sponsor and CPA audit at the IRS and HUD. Monthly computer runs are prepared to detail the financial picture of each project. Copies are sent monthly' to the Sponsor. These computer runs are available to HUD, upon request. Each occupied unit has a permanent tenant file. Verification of employment and eligibility under the HUD regulations and requirements are maintained in these files . A tickler system has been set up to alert the manager to contact the residents for their pe;•iodic recertifications. Dead files containing all prior tenants ' certifications , verifications and other company and government forms are maintained for a period of three years on the project. During the rent-up monthly accounting reports will be available by the 15th of each month. . 8. Tenant-management relations. a. All tenant grievances will be recorded and forwarded to the office of b. the Managing Agent. Upon receipt, they will be immediately investi- gated by communications with the Resident Manager and the tenant. c. Tenants will be given a tour of the premises as well as a diagram. In addition, tenants will be given a list of rules and regulations which they will sign and keep a copy for their records. d. The leasing policies conform with the Affirmative Fair Marketing Plan, the regulations of any sections governing the project and all applicable HUD handbooks. Leases are fair and non-punitive. e. Leases are not provided by the manager in foreign languages , however, should the need arise, arrangements would be made to acquire one. f. The agent has dealt with various Homeowner's and Tenant Groups in the past and is looking forward to working with the tenants of this project in any group they may wish to form or join. HUD-9405, cont. (7) g. The Agent and his representative, the Manager will enlist the support of the tenants by dealing with them on a just and equitable basis. 9. Social Services Program The Resident Managers maintain a list of social service and mental health agencies , to which they refer both residents and applicants. Referrals are based on demonstrated need or request. No cost is incurred by the project for this service. The referral service provided by management is intended only to help the resident contact an agency, which can either directly help him or help him obtain assistance from another agency. This type of referral has proven adequate to insure the viability of the project insofar as the community service agencies are effective. Any tenant interested in donating his time to any public service agency is encouraged to do so, and this is appreciated by management. Unfortunately, the project budget is inadequate to provide for child care centers , vocational training and placement, health care or organized recreational activities. The on-site management staff attempts to refer interested residents to community-sponsored service organizations . The Resident Manager does conduct financial and credit counselling for project residents. Incoming tenants are counselled, if upon review of their application it is disclosed that an inordinate proportion of their monthly income is going for the payment of charge accounts. Applicants and residents are advised to secure the services of "money managers" when a chronic pattern of over-buying and/or minmanagement of finances are evidenced. Upon request, the manager will teach residents to balance a checking account and to set up a budget. If manage- ment can help a resident to better regulate his financial affairs , both the resident and the project profit.. The project benefits through a:reduction in lost rent and legal costs , and the tenant benefits by better management of both his. financial and family life. | ~ ^- SUGGESTED HOUSING MANAGEMENT AGSWENl � - { ' +l�his Agreement is made this Jo? u� ` i9 ` ~ between ( the( ci`e "Owner") and ��� -___-------------------- —A he "Agent") . Appointment and Acceptaoce. The.0pner appoints the Agent as exclusive agent for the management of the property described in / � Section 2 of this Agccement , and the Agent accepts the up|`oin/ment, � 1 subject to Lie terms 'and conditions set forth in this Agreement. *2, Description of ProjeQ. The property to be managed by the Agent under this Agreement (c6o "Project") is a housing development, consisting of the Lund , buildings , and other improvements which make up Project No. The Project is further described as follows: � NdME� i ----- ----- \ LOCATION ClTY COUNTY 1 3I&IE *3. Definitions: As used in this Agreement: . u, nvumcanu the United States DepartMent of Housing and Urban Development, - . � b. "Secretary", means the Secretary of the United States Department of Housing and Urban Development. ` � `J c ,, "Mortgage" means that certain indenture of m"rtgnge_by and-�- between the Owner, as mortgagor, and the mortgagee, with respect to dha Project, which mnrc&sgc in insured by the . United States Department of Housing and Urban Development. ' ' 7-1 d . "Mortgagee" means any bn\dcc of the Mortgage. | o, "Principal Parties" means the 0vooc and the Agent. , ' . ! f, "Consenting Parties" means the Secretary and the Mortgagee. +�. IUD Requirements. The project is subject to a mortgage which vi ! l be or is isnurod 6? HUD under Section of dp Nutinoui Housing Act, and to o Unonink kxsisunco yo ,menLs Contract Y Wh the Sccc,tmuy .. The Owner has or yi L \ oo,`od i nc| y ,nLrr into ? � n K,Cu\:Lory Agreement with the Sccrowry` p}/,uo\,y the Owner is ) . � '`h\ ignt,'\ to provide the management of the project in o manner } / [ ' sn�iv�x��``c, �v d�c �c:ce�z�,, T\`: Owner }`z� or will [vn`is\` the . ' ' Agent with copies of the Regulatory Agcrrmonc and the Housing Assistance Payments contract. In performing its duties under ` 7"1 < | � !�W . r -------- ' ---'-�-- - ------ ------ -- -- -- __.- - ' ____ __ this Management AgrenmenL , 10 AgenL 011. cnmply with W1 pertinent requirements of the Regulaw� y AgrepmenL , the Housing AssisLance Payments CnnLracL and the diructives N the Soccetary, In the event of any instruction from the Owner which is in contravention of such requirements, the latter will. prevail . *5. Management Plan. Attached hereto as Exhibit "A" and hareby incorporated herein, is a copy of the Management P1nn for the Project , which provides a comprehensive and detailed degcriptioil of the policies and procedures to be followed in Lhemanagepom of the Project. In many of its provisions this Agreement briefly defines the nature of the Agent 's obligations, with the intention that reference he made to the Management Plan for more detailed poCicies and procedures. Accordingly, the Owner and the Agent will comply with a L I applicable provisions of the Management Plan, regardless of whether specific reference is made thereto in any particular provision of this Agreement . *6, Management Input DqQng,HQD Processing. The Agent will advise and assist the Owner with respect to management input during the remaining stages of HUD mortgage insurance processing. The Agent 's specific tasks will be as follows : to I a. Preparation and submission to the Owner of a recommended operating budget for the initial operating year of the Project. h. Participation in the pre-occupancy conference with HUD officiaLs . Preparation and submission to the Owner (for the Ownbr 's signature and submission to HUD) of the monthly Statement of Income and Expenses (Forms HUD 93479, HUD 93480, HUI) 93481) throughout the period from initial occupancy through the achievement of sustaining (95Z) occupancy . Cl . Participation in the on-site inspection of the Project, required by HUD no later than npproximatety 90 days subsequent to initial occupancy. V. CnnhLnuing review of the Management Plan, for the purpose of keeping the Owner advised of necessary or desivahLe changes . C OMM EN, V: Additional tasks may he included, if consistent with HUD Circular HH 4381 .2 . KaSic Information. AS Spon as possible , the Wnor will furnish the Agent with a complete set of plans and SOPHEiCaLiOnS as finally approved by the Secretary and copies of all gunrnwius and warranties pertinent to construction, fixtures and equipment. 2 W!Lh No aid of this inforw lion and inspecLknu by coypuLPM personnel , the AqcnL will Wroughly Famili.arizo W01C whLh Lhe character, location, consL rucLion Wynn, pinn nnd operation of the Pcojuct,, and especially of the eLectrical , heating, plumbing, air-conditioning and ventilating systems , the elevators , and aLl other mechanicaL equipment . Comment : Make appropriate changes, if any, in last three lines . Liaison wUh ArchiLect and General COHLracLor. During the pinHning, and construcLion phases , Lhe Agent WIL maTnLaQ direct Liai.son with the architect and general contractor, in order to coordinate Kahagement concerns with the design and construction of the Project, and to HcHiLate completion of any corrective work and the Agent 's responsibilities for arranging faciLities and services pursuant to Section 14 of this Agreemant . The Agent will keep the Owner advised of all. significant matters in this connection. 9 . NarkeQqg. The Agent wilL carry out the marketing activi.ties prescribed in the Management Plan, observing all requirements of Lire Affirmative Marketing Plan. Subject Lo the Owner ' s prior approval., advertising expenses wilt be paid out of the Rental lli Account as Project expenses. 10. RonLats.. The Agent WIL offer for rent and will rent the dw& lin,, units , parking spaces, commerciaL space and other rental f9ciliLies VI and concessions in the project. Incident thereto, the following A provisions will apply: a. ThQ Agent wil1 make preparations for initial rent-up, as described in the Management I'Lan. b. The Agent will follow the tenant selection policy described in the HanagemeM I'Lan. C . '].'he Agent will. show the premises to prospective tenants.. d . , The Agent will take and process applications for rentals . If an npplicaLion is rejected , Lhe applicant will he told the reason for rejection, and the rejected application, with veason for re'jecLion noteJ thereon, will he kept"on file for one ( L) year. A current List of prospective tenants will be maintained . TV Agent will prepare all dwelling leas-s , pirking parmUs C . expcu Le Me some i H i Ls njm- i dyn i f i P! Go rno:i agent for the Owner. The terms of art leases vi. I I 3 Its. Comply with they perkn-nL provisions OE 0 Assis Lance VaymonLs C"nl rnc L . Regu I n Lury Agr—wpnt rind the dLuecLives of Lh- ` PcrMary . Dwelling Wasps will be in a form approved by We Owner and the Secretary . f. The Owner will furnish the Agent with rent and inc=� schedules, as' from time to time approved by the Secretary, showing contract rents as appropriate for Willing units , and other charges for facilities and services, and income data pertinent to determinations of tenant elfgibiLiLy and tenant rents . In no event wLLI such rents and other charges. be exceeded The Agent will counsel all prospective tenants regarding eligibility and will prepare and verify eligibility certifications and cocerti f ica Lions in accordance with the Housing Assistance Payments Contract , and the directives of the Secretary. h. The Agent will negotiate commerical leases and concession agreements, and will. execute the same in its game, identified thereon as agent for the Owner , subject to the Owner' s prior approval- of all terms and conditions . Commerical rent* will. lint he less than the minimums from time to time approved by the Secretary. i . Thn Agent will collect , deposit . and disburse security deposits, if required , in accordance with the terms of each tenant 's Lease. Security deposits will he deposited by the noJ Agent in an interest-bearing account. If required by state law, separate HOW other accounts and funds , with a hank or other financial- institution whose deposits are insured by an agency of the United States Government , and a pro rasa share of interest earned will be credited Lo each tenant 's security deposit . This account wilt he carried in the Agent 's name and designated of record as "(Name of Project) Security Deposit Account . '' Comment : If WappLicable, delete referencrs to parking spaces , commerical space and/or concessions . HUD does not require security deposits . If none is to be SS collected ; delete "i" above . LL . Collection of Rents and Other lecuLEy. Th" Agont will collect ',lien due &I rents , charges and other amounts ruceivahly on the Owner ' s account in connection with the m9nagem,nt and uperaLinn of the PrOjOUL . Such receipts wilt he duposirpd in an account . sepirnLu from all- oLhcr accounts and funds , with a bank whose deposits are 4 i nsurcd by Lhe Fed n I Dvp i V I risu raico C"r porn L Lien: I hi s account- L I he carried in the Qy a, ' s name and des Qnst ed ull rocord!; as RenLaL Agency Account . '' --Dame of ProjecL L2, Enforcement_ of keases . The Agent will secure fulL compliance by each tenant: a,,iLhtlio terms of his I ease . Vo 1 un Ln ry c ump I ia nce wi 1. 1, he emphasized , and the Agent , WiLizing the Services of local Social Services Agencies when avuilahle, will. counsel tenants and noke, referrals to community agencies in cases of financial hardship or under other circumstances deemed approprime by the agent, to Lhe end that involuntary termination of Lonancies way be rd Avoided to the maximum extent cnnsisLent with sound managemenL of Lhe Project . Nevertheless , and subject Lo the pertinent procedures prescribed in the Management Plan, the Agent may lawfutly terminate any tenancy when, in the Agent 's judgement: sufficient: cause (including but not limited to nonpayment of rent) for such termination occurs under Lhe Arms of the Lenrint 's Lease. For this purpose, the Agent is auLhorized to consult with LegaL counsel. to be.designated by the Owner, Lo bring actions for eviction and to execute notices Uo vacate and judiciat pleadings, incident to such actions , provided , however, that: such instructions as the Owner may prescribe for the conduct- of any such action. Subject Lo the Owner ' s approval, attorney' s fees and other necessary cons incurred in connection with such actions will he paid out of the RenLaL Agency Account: as Project expenses . U. Mai nt;Onrince and,kqjrn i.r. 'J'he Agent wit L cause the Project. to he maintained and repairedin accordance with the and ELL Locat codes , and in a condition at atl times acceptable Lo the Owner and the Secretary, including but: not: Umit-ed to cleaning, painting, decorating, pLumbing, carpentry, grounds care , and such other limitations imposed by the. Owner in addition to Lhose contained herein. Incident Lher'eto, Lhe following provisions will apply: a. Special attention wilL be given to preventive mainLeunnce, and to Lhe greatest_ extent feasihLe, Lhe services of reguLar.maintenance employees will be used . b. Subject: to Lhe Owner ' s prior approval , Lhe AgeriC will contract wiLh qunlifind independent conLractnus for thp maintenance and repair of air-conditioning sysLcms and nlevnLors , and for extraordinary repairs beyond the capabHiLv of regular t. mainLenance employees . C . The Agcrit wiLl systematicaLly and prompLly receive and investigate all, service requusLs from LenanLs , take such action thereon as may be justified, and will keep records of 5 L06 Sam, . hmrrgenc� i -rl"Psts will KY r"reWd and survicorl on a LwenLy-four (VA ) hour basis . CompluinLs ot a gerinus nature will be reporLud to the after invesLiga Linn. d . The Agent is authorized to purchase all mnLerinls , equipment, tools , appLiances, supplies and services necessarl; to proper maintenance and repair. e. NntwiLhsLand n[ng any of the frpgning i o provsins , the pro ir approval of the Owner will he ' requiued for any Pxpenditure which excleds Do! l a r s ($ in any one instance for In r , materials , or otherwise in connection with the maintenance and repair of the Project, except for recurring expenses within the limits of the operating budget or emergency repairs involving manifest danger to persons or property, or required to avoid suspension of any necessary service to the Project . in the latter event , the Agent wiLL inform the Owner of the facts as promptly as possible. .L-A 14. ULi 1i Lies and Services . in accordance with the Management .Ptan and --iting budget , the Agent will make arrangements for water ,he npe i electricity, gas , fuel oiL, sewnge and traAh disposal , vermin extermination, decorating, .laundry Facilities , and telephone service. Subject to the Owner 's prior approval , the Agent will make such contacts as may be necessary to secure such utilities lot. and services . Comment: Hake necessary. changes , if any, in specificakom of utilities and services . Emp 15. Levees . 'inagemem Plan prescribes the number , qunLificaripns , and duLi-• LK personnel to he reguinrly employed in the management of the Project, including a Resident Manager and maintenance , book- keeping, clerical , and other manngeri.nh employees . All sHrh on [ to personnel wi I I be emp I 0yees of the Agent and not Lho Project, and hill he hired , paid , supervised , and discharged through the AgcnL , subject to the foLLowing conditions : a. As more part [cuLarly described in the Management Plan, the Resident Manngur will have duties of the typla usually associated with his position and will he dirrUN responsible to the Agent 's Project Manager or other officer . 1). 1lict compensation ( including fringo benefits) of the RusidomL and the mai ntonancr rmptoyops W I hal ns prascribed in the Management Plan. Compensation of bookkeeping, is 6 C I r i C;J 1. and Other MIH I Qr a I porsunne I W I I. hr wi Lhi n the QnWs We discreLion . p&vided that mWimum wagi_� standards arE met. c . The Owner wi. I L reimburse the Agent for compensation i nc Ludin& fringe benefits) payable to the on-site management and maintenance employees , as. prescribed in the Management Plan and for a L L tocnl , state, and federal Lases and assessments ( including but not Limited to Social Security Lases , Aa unempLoyment, insurance, and workman's compensation insurance) "T incident to the employment of such personnel . Such reimbursements will. be paid out of the Rental Agency Account and witl be treated as Project expenses . d . Compensation (including fringe benefits) payable to on-site staff, such as the Resident Manager and all. bookkeeping, Kericat, and other managerial personnel , plus Al local , state , and federal taxes and assessments incident to the employment of such personnel wiLL he borne solely by the Project, and will not be paid out of the Agent 's fee. The rental. value of any dweLLing unit furnished rent-free to the Resident Manager will be treated as a cost to the project. 16, Disbursements From Rental Agency Account a. From the funds collected and deposited by the Agent in the Rental Agency Account pursuant to Section H above , the Agent will make the following disbursements prompLLy when payable: Reimbursement to the Agent for compensation payable to the employees specified in Subsection 15c above, and for the taxes and assessments payable to Local , state, and federal governments in connection with the employment of such personnel . (2) The single aggregate payment required to he made monthly by the (A,,ntn- to the Mor Lgagee, inc Judi ng the amounts due under the mortgage for principal amortization, interest, mortgage insurance premium, ground rents , taxes and assessments , fire and other hazards insurance premiums , and the amount specified in the Certificate of Incorporation or Regutatory Agreement for allocation to 3. the Reserve for Replacements . (3) At L sums otherwise due and pAyahLe by the Wer as expenses of . the Project authorized to be incurred by the Agent under the terms of this Anyoumcnl_ , iucludLnq ComppnsnHoll payable to the Agent, pursuant to Action 25 buLuw, for its service hereunder. 7 I b. for the menLi one d in Suhs-winn 10i above funds wi- I I he i i shursed or Lrans Ep rurd from .the Runn I Agency Account only as the Owner may, Erom Lime Lo time diuccL in writing. c . in the event that the balance in the lRr,HW Agency Account is wej at any time insufficient to pay disbursements due .and paynbLe 7* nder Subsection IS above, the Agent wilil inform the Owner 7 u of that. fact and the Owner will than remit to the Agent sufficient funds to cover the deficiency . In no event wil. l. the Agent he required to use Us own funds to fay such 14 disbursements . A 17.. QudEeLl. Annual. operating budgets for the Project will. he as approved ' by the Owner. Except as permitted under Subsection Un above, annual disbursements for each type of operating expenses itemized in the _"779 budget will not exceed the amount authorized by the approved budget . In addition to preparation and submission of a recommended operating budget for the initial fiscal year (as provided in Subsection 6a above) , the Agent will- prepare a recommended operating budget for each subsequent fiscal. year beginning during the term of this A Agreement, and VIE submit the same to the Oh,,net: at least thin_}' (30) days before the beginning of the fiscal. year . The Owner wLLI promptly inform the Agent of changes , if any, incorporated it the approved budget, and the Agent will keep Lie Owner. Wormed of any 0"7 anticipated deviation from the receipts or disbursements stated in the approved budget. 18. Rucords nnd Resorts . In addition Ln any other requirpmunts specified i.n the Management, Ptan or other provisions of LhLs A'greemenL , the Agent wiLi have the following responsibilities with respect to records and reports: a. The Agent will. establish and maintain a- comprehensive system of records, books , and accounts in a manner conforming to the directives of the Secretary, and otherwise saLisfricLory to the Owner and the Consenting Parties . Al. l records , hooks, and accounts ALI he subject to exami-nation K reasonable not hours by any authorized representative of the Owner or either of the Consenting Parties. b. With respect- to each fiscal year ending during the Orm of Ari this agreement, the Agent will have an annual financial report prepared by a Certified Unblic Accountant or other parson acceptable to the (hjner and SucreLnry, based upon the preparer ' s examination of the books and records of An Owner and the Agent . The report wLil he prepared in nccorAnce with the directives A the Secretary , wtll by cwrtililied N; the Agent , and wiLL he submitted to Lhe Owner wiLhLn (60)_ days after the end of the fiscal year, for the Owne-Ws further certification and submission to the SecreLaVy and the Mortgagee. Compensation for the preparer 's services v:IJ be paid out of the Rental Agency account as an expense of the Project. 8 C 'I'll( t:,(--!M wi I I pr( pzu1 a q"nrt or I y Y colt cnmpari nq ac Lua I and hudgeLad figurns 1"r reccipLs and di spur: an(-1 submit each such report to the Uyner within fifLuen HW days allt-er the Prld of the quarter covered . d. The Agent will- furnish such Wormation Oncluding ,occup,ancy reports) as may be requested by the Owner or the Secretary from time to time with respect to Lhe financial-, physical, or operational condition of the Project. My the fif Luenth 15W day of each mouth, thy Agent wilt furnish the Owner with an itzemized list of all di0inquent accounts , including rental- accounts , as of the tenth ( LOth) day of the same month. By the tenth HOG) day of each month, the Agent will furnish the Owner with a statement of receipts and disbursements during the previous month, and with a schedule of accounts receivabbe and payable, and reconcil-ed bank statements for the Rental- Agency Account and Deposit Account as of the end Al i of the previous month. 4�. 9- The Agent will prepare and submit: M Housing Owner ' s Certification and AppLication for . Housing Assistance Payments (HUD-52670) (2) Schedule of Housing Assistance Payments Payable (HUD-52670A) sy (3) Claim for Payment of Security Deposit guaranLee and Compensation for Vacancy Loss (HUD-52676) (4) Application for Tenant Eligibility and Recertification (HUD-52651) h. If , after the Project reaches sust-ai&ng (95Z) "ccupnlICY, the rental collections plus HUD subsidy fall brLaw opuraLing expenses for a sustained period of siAty (60) days , the Agent will immediately send written notification of the same to the appropriate HUD Area/Insuring Office. i . Except as otherwise provided in this Agreement , all. off-siLe bookeeping, cl-erical , and other managemenn overhead expenses (inctuding but not Limited to costs of office suppLies and equipment , data processing services , postage, Lransportntion for managerial personnel , and Lelephonu spl-Kcas) will be borne by the Agent- out of his own funds and wLIL not be treated as Project expenses . 9 -7 ilk 719 . FidCLYLV Void . The Agant wh Ll furnish, m Us own expense, a fide I i Ly bond in the principal. sum of Dollars Q which is W least equal to Lhe gross potential income For two months alld is conditioned to protect the Owner and the Consenting Parties against misappropriation of Project funds by the Agent and its employees. The 'owner shall provide a bond of a like kind to cover the on-site personnel expressed in Section 15 and it shall be paid for from project income. The other terms and conditions of the bond , and the sureLY thereon, will be subject to the approval of the Owner and the Consenting Parties. 20. Aids , Discounts , Rebates , etc . The Agent will obtain contracts, materials , supplies, utilities, and services on the most advantageous terms to the Project, and is authorized to solicit 4 1 bids , either formal or informal , for those items which can he obtained from more than one source. The Agent will secure and credit to the Owner all discounts , rebates or commissions obtainable with respect to purchases , service contracts , and all other transactions on the Owner ' s behalf. -,)A MR-A 21 . Social Services Pcoiran. The Agcnt will be responsikle to the Owner for carrying out the social services program deSCL_itTecl in the Management Plan. 221. The Agent wi II. encourage and nssi sL residents of the Project in forming and Maintaining representative organizations to promote their common interests , prnhhems affecting; ' ' the Project and its residents may be avoided or solved on the basis of mutual self-interest. 23. On-SELe Han-agcment 1:'aciLiLics . Subject to the further agreement • of the Owner and Agent as to more specific terms, Lhe Agent will- T mainLaLn a management office within the Project and the NesidenL 15nager, will reside in one of the dwelling units in the Project, and the Owner will make no rental charge for the same. 24. Insurance. The Owner will inform the Agent of insurance Lo be 06 . i carried with respect to the Project and Us operations, and the Agent will cause such insurance to he placed And kept in effect at a L L times . The Agent will pay premiums ouL of the Ruwal Agenc.y Account, and premiums will be treated as operating expenses. All 1. insurance will he pLaced with such companies , on such conditions , ill such amounts , and with such beneficial interests nppenving thorwon as shall. hu acceptable to the Owner and the Consenting Parties, and shall he otherwise in conformity with the morLrage; provided that- tho same will include public liability c"vccape, wiLh Lhe ArunL • desiguaLud as one of the insured , in amounts acceprahju Lo LY Agent as well as the Owner and the Consenting Parties . The Agent will investigate and furnish the Owner with full reports as to all LO q 1A mccidgriLs, Mixis , and polpWal claims For damiop rolriQn� to Lhp Projuct, and WILL cooperate with the Owner 's insurers in counucLion therewith. ,r,.113 25. Compliance with Government& Orders.. The AgenL wil I Lake such action as may be necessary to comply promptly with any and all T governmental orders or when requirements affecting Lhe Project , 757 0 A, whether imposed by federal , state, county or municipal authority , subject , however, to the limitation stated in Subsection Ue with respect to repairs. Nevertheless , Lhe Agent shall Lake no such action so long as the Owner is contesting, or has affirmed its intention to contest, any such order or requirement. The Agent pill notify the Owner in writing of all notices of such orders q or other requirements, within seventy-two (72) hour, from the Ong. Lime of their receipt. 26. su rimMa Lion. In the performrince of its nhLigaLions under. :,, this Agreement , the Agent will comply with the provisions of any federal , state no Local Law prohibiting discrimination in housing on the grounds of race, color, creed or national origin, including, Title V1 of the Civil Rights Act of 1964 (Public Law 88-352, 78 StaL. 241 all requirements imposed by or pursuant: to the Regu ta- tions of the Secretary (24 ,CFR, Subtitle Al Part 1) issued pirsuanL to that Title; regulations issued pursuant to Executive Order 11063, Ta and Title V11I of the 1968 Civil Rights Act. 27. AL,cnWs CompensaLinm The Agent will he compensated for its services under this Agreement by monthly fees , Lo he paid out of We Rental- Agency Account and treated as Project expenses . Such fees will be 401A payable on the day of each month for the monLhs 9 through 19 a. Each such monthly fee will he in an amount equal to percent of gross cotlections received durin , the preceding month. Gross collections include rental income I and income from other sources such as coin-operated Laundry equipment. b. The percentage fee stipuLaLed in Sect.jun 27a may he increasad by one-fourth of one percent ( h) (e.tirimpLe: a fee of A of gross collections could be increased to 50) on the anniversary IIIJ date of this Agreement if HUD approves the Owner ' s written request, hasrKupon its determination Lhat the Agent 's performance has been of superior qualiLy. Such requpsLs are not auLamaticaLLy approv0d , and may not Q implemented without written authorizaLion from the HUD Area/insuring Mice having jurisdiction UVUU Lhe project mortgage, A C A-,Xv-mon L This Qr- WHL shaLL V in erInco Enc a pprjo,l of -----year(s) , (not to 1ceed two y0us) , hegiHniHg on the day 01 i9 , and (-,.ndin,�-,, oii the day of 19....... subject , however, to the following conditions : 7 1=3 a This Agreement will not he Hndtng upon the Principal Parties until endorsed by the Consenting Parties. b. This Agreement may be terminated by the mutual consent of the Principal Parties as of Lhe end of any calendar month, provided. that at Least thirty (30) days advance written notice thereof is given to each of the Consenting Parties. C . In the event that a petition in bankruptcy is filed by or against either of the Principal Parties, or in the event that- either makes an assignment for the benefit of creditors or takes advantabes of any insolvency act, the other party may A' terminate this Agreement without notice to the other, provided that prompt written notice of such termination is given to ibJ each of Consenting Parties. :41 d. It is expressly understood and agreed by and between the Principal Parties that the Secretary or the Mortgagee shall- 71 have the right to terminate this Agreement at the end of any calendar month, with or without cause, on thirty ( 30) days advance written notice Ln each of the Principal Parties , except LhaL in the event of a default by the Owner under its Articles of Incorporation under the ohILgaLion of the mortgage , the • Secretary or the Mortgagee may terminate this Agueeme6L. immediately upon the issuance of a notice of cancellation to o ., each of the Principal Parties. It is further understood and agreed that no liability will attach Lo either of the Principal 7-71"TR 71 Paties in the event of such termination. C. Upon termination, the Agent wilL submit to the Owner any financial statements required by the Secretary, and after the Principal Parties have accounted to each ol-her with respect to all matters outstanding as of the data of Lormination, the Owner will furnish the Agent security, in form and principal. amount satisfactory to the Agent , against any obtigni-ons or liabilities which the Agent may properly have incurred on behalf of the Owner hereunder. 12 29. Mer.MeLaLive Provisions. a. At all times , this A"Uppyon't will he subject and subordinate to all rights of the SecruLary, and will inure to the benefit A and constitute a binding obligation upon the Principal Partiek, J: and their respective successors and assigns. To the extent that this Agreement confers rights upon the Consentinp Parties, M will he deemed to inure to their benefit , but without liabiliLy to either, in the same manner and with the same effedt as though the Consenting Parties were primary parties to the Agreement. b. This Agreement constitutes the entire agreement beLween the Owner and the Agent with respect to the management and operation of the Project, and no change will: be valid , unless made by supplemental written agreement, executed and approved by the Consenting Parties as well as the Principal Parties . 7,77, C . This Agreement has been executed in several counterparts, 3: each of which shaH constitute a complete original Agreement., which may he introduced in evidence or used for any other purpose without production of any of the other counterparts . �W MR W tip" 13 r; !)T-=l'm i fill:,ri:Ct', the Principal I':: rCJee (tip their cr.tly t;rii.!;r.r9.t-.eu hova executed thin Agreemchi on Lhe We first chow. written. G:JNER: Title: Mitnena: By l a T;.tTc: ra Owns: T . t4 i ..Y4� I 1 I:n iorsc r,uu{ c)l. t:(:•1) 11 i 1 sr Part i i C'.ori }••n},rc cIIdorsc;nc(It as the ricorc ;3i',ec. i.(Ic; tificcl in CIIr f.orc},.oi II', i•ian Is.umc,nt Agrec:menC , elated 1)ct,•:e.c11 _ and ..U - llcrebv consenCs to said a};rcemcnt. . — -----^-- --�— MORTGAGE k i BY '1'iC1c 1-t1 na-y �.'cII(IorsC'Illelli: . I TlIc Sccret.ary of t.1)c 1)C,parlI",11 of IIotisi ii rind [_Irl•an I)evr Iopmcnt 1)er-eI } a Cun5C•rIC;; t0 the f0rcF;oi I 11311a};emenC Aj;a ce::ic-nt , (I,.at c:I ----- --- by ail(. i between rand Sec•rel ..ry of Hollsi n);. and Urlw];l 1)evelolrment I I j i QUESTIONNAIRE FOR MANAGING AGENT , { 1. Managing Agent: SGII Management Co. 8383 Wilshire Blvd. , Suite 700 Beverly Hills, California 90211 Project: CONEJO FUTURE APARTMENTS 122735400-PM-WAIL-L8 Thousand Oaks, California Sponsor: CONEJO FUTURE APARTMENTS, a California Limited Partnership i 2. . There is no history of default. or mortgage relief for the conventional projects managed by our company. A' listing of conventional buildings managed follows : BEVERLY PLAZA " 5050 Garford Street Long Beach, California 90815 3. SGH Management Co. has a staff of 4 persons , one of whom is engaged in a, supervisory capacity , two in a clerical capacity, and one in social services . The principals of SGH Management Co . are : Elliott Maltzman - President Alicia Holdeman - Vice President Mark_ Malt'zman - Vice President Iry Sterman - Secretary Mona Sacks - Assistant Secretary 4. The distance from the home office to the project is approximately 20 miles . 4a. Person with Brokers License is Lynn McCune. - - i 5 . Resume for Corporate Officers President Elliott Maltzman Mr . Elliott Maltzman is currently the president of Shapell Government Housing, a position he has occupied since' 1970 . Mr . Maltzman has been in the construction busi- ness since 1945 , and holds a degree in engineering from UCLA. Vice President Mark Maltzman . Mr. Mark Maltzman is currently .the vice presi- dent of Shapell Government Housing . Mr . Maltzman completed undergraduate studies at the University ,of California prior to his study of law at USC and admission to the California State, Bar Association in 1975 . Vice President Alicia Holdeman Ms . Alicia Holdeman is currently the vice presi- dent .of SGH MANAGEMENT CO. Ms . Holdeman. has been a property management supervisor for 52 years , supervising up to 6 , 000 units , and holds. an undergraduate degree from Western Michigan University and a Master of Arts degree from California State University., Los Angeles . 6. Membership in trade organizations : Association of HUD' Managina Agents 6a. SGH Management Co. , was incorporated in 1978, however, its officers have in the management business for a total of 45 years . . . 6 1 f r 7 . .Persons authorized to sign in our name : Elliott Maltzman Alicia Holdeman Mark Maltzman Iry Sterman Mona. Sacks s 8. ACCOUNTING PROCEDURES Records are kept at the project and in the company office, ready for inspection or audit . Employees are .bonded. SGH Management Co. provides all re- ports required by HUD in addition to performing all accounting related to its projects . . It might be noted that SGH .uses a peg-board rent collection system. This bookkeeping safeguard, used. in all our operations , synthesizes the writing of a complete receipt to the tenant , al.ong with the detailed allocation of the .monies for auditing. All monies from the project are .to be banked in Beverly Hills at Union Bank with the bank reports mailed to the Company Beverly Hills office. All monthly, quarterly, or yearly reports to HUD are prepared in the SGH Management Co. office . . Of course, all reports are open for inspection by the Sponsor and CPA audit at the IRS and HUD . Monthly cash flow sheets are prepared to detail the financial picture of each project. . Copies are sent monthly to the sponsor . The cash. flow sheets are also available to HUD . All accounting responsibilities are enunciated in the management contract. i - 4 - , 9 . 'MAINTENANCE Constant surveillance of maintenance problems and costs 'is required by the main office , down through the chain of . command - from the supervisor to the on-site project managers and their assistants . The lines of communication are always open, via phone , letter, memo or in person. In' addition monthly reports are kept to detect. vari- ations in the projected- norm., Resident Managers are instructed to inspect each apartment once every 6 months . A date is agreed upon by the tenant and the manager. 4 Instruction sheets are given each tenant . These are. used to explain the use and care of . the various appliances and equipment in the apartments . 10. The management company is a subsidiary of the general _ partner/mortgagor.. The mortgagor will attend •manage- ment and directors meetings , review financial_ state ments, inspection reports and operating budget. input as- well as periodic on-site inspections . 11. The project is. inspected twice a month by a mainten- ance supervisor who assists the resident managers in the purchasing of necessary maintenance and jan- itorial supplies . He also locates qualified con- tractors for work which is beyond the capability of the resident manager. The property supervisor visits the property bi-weekly on a regular basis and at irregular intervals on a surprise inspection basis . Managers have direct com- munication with the property supervisor daily: 12. Financial Statements - See Attached j 13. No 5 - F 16. References: 4 Paul Litz Lita, Posner, Armour & Litz ;. Certified Public Accountants 8906 West Olympic Boulevard Beverly Hilts, California 90211 Ronald K. Chalk Vice President Union Bank Eighth and Hill Street Los Angeles , California 90014 Bernard Rolston Fulop, Rolston, .Burns & McKittrich Seventh Floor 9665 Wilshire Blvd. " Beverly Hills , California .90212 Robert Hamer, Senior Vice President United California Bank United California Mortgage Division 245 So. Los Robles Ave. _ Pasadena, California 91109 I f ue 4 _ 6 - i U.S. DEF MENT OF HOUSING AND URBAN DEVELOPMENT `4 MODEL FORM OF LEASE (To be used on the Section 8 Additional Assistance Program for Projects with HUD-insured or HUD-held Mortgages) , Project No. '>." HAP Contract No, 1. PARTIES i The parties to this agreement are .;.. hereinafter,"called "Lessor," and , "7. hereinafter called "Lessee." 2. PROPERTY 6 TERM Lessor leases to the Lessee Dwelling Unit No. located at in the premises known as All for the term commencing on the day of and ending on the day. of s 5 3. RENT 1' <s a. Lessor has entered into a Contract with the Department of Housing and Urban Development, hereinafter called "HUD", which provides that HUD will pay a portion of the rent called "Housing Assistance Payments" on behalf of quali- fied lessees pursuant to the United States Housing Act of 1937 as amended. b. The total rent shall be $ per month. c. Of the total rent, $ shall be payable by or at the direction of'HUD . zv as housing assistance payments on behalf of the Lessee and $ shallw ^ be payable by the Lessee. These amounts shall be subject to change by reason of changes in the Lessee's family,income, family composition, or extent of exceptional medical or other unusual expenses in accordance. with HUD- established schedules and criteria; or by reason of adjustment by HUD of any applicable allowance for utilities and other services. Any such change shall be effective as of the date stated in a notification to the Lessee. e d. Lessee agrees to pay his portion of the rent promptly on the first business day of each month without any obligation on the part of the Lessor to make demand for payment. Payment is to be made at. 4. UTILITIES 6 SERVICES. �;•'' Utilities and Services shall be paid by the party indicated below: 4 j, •` Al Lessor Lessee Electricity . . . . . . ..Gas •.,.. i Water . . . . . rr Garbage Collection. . . . . . . . . . . . . . . . . G ,. Other (Specify) . . . . . . . � 3 The Lessee shall not waste utilities furnished by the Lessor, or use utilities or.'-"uipment for any improper or unauthorized pose. An allowance of per month has been establis for the ' utilittes designated to be paid by the Lessee and has been taken into L consideration in determining Lessee's share of the monthly rent and [ housing assistance payments. 5. SECURITY DEPOSIT '' Lessee agrees to make a refundable security deposit of $ to the Lessor at the.time this lease is executed. This amount is not to exceed C1 , the Lessee's portion of one month's rent as set forth in Paragraph 3c, and the allowance specified for utilities to be paid by the Lessee in Paragraph 4. Upon termination'of this lease the deposit is to be refunded to the s>. Lessee, except it may be used by the Lessor toward reimbursement of the "r- cost of repairing' any damage to the property (normal wear and tear excepted) caused by .the Lessee or his family, and any rent or other charges owed. 6. USE. OF PROPERTY Without the Lessor's written consent the Lessee shall not assign this lease; !give accommodation to any roomers, lodgers, or other persons not listed on the Application for Tenant Eligibility and Recertification, Form HUD-52659; or permit the use of the premises for any purpose other than as a private dwelling solely for the Lessee and his family. This provision does not exclude reasonable accommodation of Lessee's guests or visitors. 7. MAINTENANCE OF PROPERTY f b a. The Lessee, by execution of this lease, agrees that the property described herein has been inspected and meets with his approval. b. Lessee shall keep the property in a clean and sanitary condition, and shall comply with all laws and health and policy requirements with respect to the maintenance of,rented premises. c. If property the to damage ro t� p p y (ocher than normal wear and tear) is caused by acts or neglect of Lessee, the Lessee may repair such damage at his own. ^ expense. Upon Lessee's failure to make such repairs, after reasonable j: notice by the Lessor, the Lessor may cause such repairs to be made and Lessee shall be liable to Lessor for any reasonable expense thereby incurred. d. The Lessee agrees that at the end of occupancy to surrender the property 1}' ^* (including keys) to the Lessor in as good condition as when received, _. p reasonable wear and tear excepted. t r e. The Lessor shall provide.maintenance services as follows: , ,. (1) The property and all equipment provided therewith, as well as common areas, facilities and equipment provided for the use and benefit of the l Lessee, shall be maintained in a decent, safe and sanitary condition. The Lessor shall respond in a reasonable time to calls by the Lessee for services consistent with said obligation. .Where applicable (as in cases .. of multi-unit buildings), such maintenance with respect to common areas, r facilities and equipment shall include cleaning; maintenance of lighting and equipment; and maintenance of I grounds, lawns and shrubs. (2) Where security equipment and services are to be provided.by Lessor they are as follows: (Specify, or state "None.") -s F: s. (3) Routine extermination services shall be provided by Lessor as conditions �y may require. If such service is to be provided on a scheduled basis, f; the schedule is as follows: (Specify, or state "No Schedule.") i . 1, - - A.tai — 2 — +'y�Sr+ ,,.`y�. s'`y,•�"+',d+y � 6 4„N¢ n'u w+++?�� ft �,;,. f . . � ;� i 'i � 1 (4). Repainting shall.be provided. by Lessor as conditions may require. If ' painting is to he provided on a scheduled basis, the schedule is as follows: (Specify, or state "No Schedule.") � } 8. INSPECTIONS AND REPAIRS it Upon receipt of prior notice in writing from the Lessor, the Lessee shall permit P P P B � P the Lessor, or his agents, or any representative of a holder of a mortgage on .--- the property, to enter the premises for the purpose of making reasonable inspec— tions and repairs; EXCEPT that the Lessor, or his agents, 'shall have the right to enter the premises without prior notice if Lessor reasonably believes that an emergency exists which, requires such entrance. In such case the'Lessor must �. promptly notify the Lessee in writing of the date, time and purpose of such entry, and of the urgency which necessitated it, 9. ALTERATIONS Without prior written approval of the Lessor, the Lessee shall not (1) paint, y paper or" otherwise redecorate or make alterations, additions, or improvements f in or to the property; (2) install a washing machine, dryer, air conditioning unit, or any other 'electrical equipment; or (3) place fixtures, signs or fences in or about the premises. y 10. PETS 13 The Lessee shall not have animals or pets of any kind on the premises, other i"than those expressly permitted in writing by the Lessor. 11. ABANDONMENT OF PROPERTY �r In the event the Lessee is absent from the property for five (5) consecutive days while in default of rent, Lessee shall, at the option of the Lessor, be deemed to have abandoned the property and any'remaining personal property of the Lessee shall be considered abandoned and may be disposed of by Lessor . i . according to State Law. 12. .DISCRIMINATION ' The Lessor shall not discriminate against the Lessee in the provision of ser— vices, or in any other manner, on the grounds of race, color, creed, religion, sex, or national origin. �s 13. ' CONDITIONS GOVERNING HOUSING ASSISTANCE PAYMENTS Lessee agrees with the following conditions governing Housing Assistance Pay— ft ments:- " a. That a 'recertification of income shall be made to the Lessor at least t once a year from the date of the original certification at time of admission- to the project. b. To comply promptly with all requests by the Lessor or HUD for informa— tion and certifications concerning the total current family income and . family composition. f' C. To transfer to another dwelling unit upon written request by the Lessor ll if the unit occupied is no longer suitable because of changes in family size, age or sex composition. d. That, where by reason of an increase in income, Lessee is no longer entitled to housing assistance payments he may continue to occupy the property. e. To reimburse HUD for any excess housing assistance payments provided during any period when an appropriate adjustment or termination of pay— ments was not made because of Lessee's misrepresentation made in.the ° application for housing assistance, in recertification of income or in any other information requested by the Lessor or HUD. I _ J 1 14. Termination and Renewal. Unless terminated or modified as provided herein, this Agreement shall be automatically renewed for successive e bt; terms of one month each.at the foresaid'rental, subject to adjustment as herein provided. The TENANT may terminate this Agreement at the end of' the initial term or any successive term by giving 30 days written notice 'in advance to the LANDLORD. Whenever the LANDLORD has been in material noncompliance with this Agreement, the TENANT may in accordance with state law terminate this Agreement by so advising the LANDLORD in writing. . b. The LANDLORD's right.to.terminate this Agreement is governedr by the regulations of the Secretary. Pursuant to 24 Code of Federal Regulations, Part 8M .the LANDLORD shall give the TENANT t a written notice of the proposed eviction, stating the grounds and advising that the TENANT has 10 days within which to respond to the LANDLORD setting forth reasons as to why the Agreement f should not be terminated. 24 CFR Part 450 (herein referred to as the HUD regulation), which is incorporated by reference and made a part hereof., provides that once the LANDLORD's decision to terminate has been made., the LANDLORD may terminate this Agreement only under the following circumstances: (1) . The LANDLORD may terminate, effective at the end of the s. initial term or any successive -term, by giving the TENANT at least 30 days advance notification in the manner f prescribed in paragraph (g) below that the, term of this Agreement is not renewed and this Agreement accordingly terminated. This termination must be based upon either 1 material noncompliance with this Agreement or other good cause. , a (2) Notwithstanding subparagraph (1) , whenever the TENANT-has been.in material noncompliance with this Agreement, the LANDLORD may, in accordance with state law and the HUD Regulation, terminate this Agreement by notifying the TENANT in the manner prescribed in paragraph (g) below. (3) In any locality where a state statute or local ordinance is in effect which imposes obligations on landlords and tenants and provides that a violation of such obligation by a tenant constitutes grounds for eviction,_-the .LANDLORD may terminate in accordance with such statute or ordinance.. c. Evictions. If the TENANT does not vacate the premises on the effective date of the termination of this Agreement, the LANDLORD may pursue all.judicial remedies under-state law for the eviction of the TENANT. i _4^ -- i to f 1 d. Material noncompliance by the TENANT. The term "material non- compliance with this Agreement" shall, in the case of the TENANT, ' include (1) one or more substantial violations of this Agreement, or (2) repeated minor violations of this Agreement which disrupt the liveability of the project, adversely affect the health or safety of any person or the right of any tenant to the quiet enjoyment of the leased premises and related project facilities, interfere with the management of the project or have an adverse f` financial effect on the project. Nonpayment of rent or any other �. financial obligation due under this Agreement (including any portion thereof) beyond any grace period permitted under state {°%' law shall constitute a substantial violation. The payment of rent or any other financial obligation due under this Agreement after the due date but within any .grace period permitted under state law shall constitute a minor violation. e. Notice of good cause. The conduct of the TENANT cannot be deemed good cause unless the LANDLORD has given the TENANT prior ' notice that. said conduct shall henceforth constitute a basis for termination of this,Agreement. Said notice shall be served on the tenant in the manner prescribed in paragraph (g) below. '4;• f. Requisites of termination.notice by the LANDLORD. The LANDLORD's C >.e determination to terminate this Agreement shall be in writing and shall (1) state that the Agreement is terminated on a date ! r specified therein, (2) state the reasons for the LANDLORD's action with enough specificity so as to enable the TENANT to i prepare a defense, (3) advise the TENANT that if a judicial proceeding for eviction is instituted the TENANT may present a defense, and (4) be served on the TENANT in the manner prescribed � by paragraph (g).below. i. g. Manner of Service. The LANDLORDS termination notice shall be accomplished by (1) sending a letter by first-class mail, properly stamped and addressed, to the TENANT at his/her address at the project, with a proper return address, and (2) by serving a copy of said notice on any,adult person !� answering the door at the leased dwelling unit; or if no adult F responds, by placing said notice under or through the door. `•: Service shall not be deemed effective until both notices provided for herein have been accomplished. The date on which the notice shall be deemed to be received by the TENANT shall I{ be the date on which the first-class letter provided for in clause (1) herein is,mailed, or the date on which the notice provided for in clause (2) is properly served, whichever is later. h. , Modification of Agreement Other Than Changes in Rental. The LANDLORD may, .with the prior approval,of HUD, modify the terms and conditions of the Agreement other than changes. in rrr � { 1) 3 u - '} ` .�- :� ,t,� 1 ' ,. .l ,:i ✓ � �� i s� 4 ;'� F . 1 S y' » the rental, effective at the end of the initial term or a successive term, by serving an appropriate notice on the TENANT, together with a tender of a revised Agreement or an addendum revising the existing Agreement_ This notice and tender shall be served on the TENANT in the manner prescribed in paragraph (g) and must be received by the TENANT (as defined in paragraph (g)) at least 60 days prior to its proposed effective date. The TENANT may accept it by executing the tendered revised Agreement or addendum., or.may reject it by giving the LANDLORD written � notice at.least 30 days prior to its effective date that he . �<` intends to terminate the tenancy. i. Rent Increases. Increases in rent shall be governed by the HUD regulation in 24 CFR Part 401 and shall be put into effect by giving the �n TENANT at least 30 days advance written notice. Any such increase shall be effective at the end of the term of the fit ' existing Agreement> ro '` j. In case the property is destroyed to the point of being unin- habitable by ,any cause whatsoever, this lease shall.thereupon immediately terminate'and neither party hereto shall have any `n further rights or be under any further obligation on account of this lease, except Lessee for the rent accrued; and if Lessee is not• in default in the performance of any of his obligations under this lease, Lessor shall refund to Lessee any unearned rent paid in advance. ((ff k. If Lessee does not vacate upon termination of this lease and Lessor accepts his portion of the monthly rent, this lease shall continue to be binding on both parties.as a month-to-month agreement. 1. -The Lessor shall not evict the Lessee unless the Lessor complies . with the requirements of local law, if any, and of this provision. The Lessor shall give the Lessee a written notice of the proposed eviction, stating the grounds and advising the Lessee.that he �. has 10 days (or such greater numbers, if any, that may be ° t, required.by local law) within which to respond to Lessor. " -6- C r �I s�Z ,•D��6...'k asi �, �'Ji , , ,+�i A � s k+ � .t t.i L v 1 , ,.. �. t �', Z o t (Include this provision only,where a PHA is a party to the contract ,z. between the Lessor and HUD) The Lessor and HUD have entered into an arfreement providing that 'the 43''' called "PHA" provide services in connection with eviction actions. Because the Lessor must obtain the PHA's authorization for an eviction, a copy ! of the notice shall be furnished simultaneously to the PHA, and the notice shall also state that the Lessee may, .within the same time � ... period, present his objections to the PHA in writing or in person. The PHA shall forthwith examine the grounds for eviction and shall 1. . - authorize the eviction unless it finds the grounds to be insufficient under the lease. The'PHA shall notify the Lessor and the Lessee of r"`E of its determination within 20 days of the date of the notice to the Lessee, whether or not the Lessee has presented objections to the y PHA. If the Lessor has not received.a response from the.PHA within 20 days, he.shall telephone the PHA and shall be informed by the PHA �¢ ' whether a notice of determination has been mailed. If the PHA informs the Lessor that no notice has been mailed within the 20 day period, the PHA shall be deemed to have authorized the eviction. The • PHA shall be entitled to a fee as provided in the contract for each proposed eviction action submitted by the Lessor and reviewed by the PHA shall be entitled to a fee as provided in the contract for each proposed eviction action submitted by the Lessor and reviewed by the sY PHA. 15. NOTICES .. All notices required by this lease shall be in writing and shall be t, delivered personally or sent by prepaid mail as follows: R }f 1 To the Lessee: At the property. To the Lessor: 16. LAWSUITS In the event .of a lawsuit to enforce any provision of this lease, the successful party shall be rewarded court costs. from the other. G, 17. WAIVER OF LEASE PROVISIONS �•`. t Failure of the Lessor to insist upon the strict performance of the, k terms, convenants, agreements and conditions herein contained, or {: any of them, 'shall not constitute or be construed as .a waiver or j relinquishment of the Lessor's right thereafter to enforce any such term, convenant, agreement, or condition, but the same shall !_! ; continue in full force and effect. - f` 1, -7_ .' i w" ?���u 9�J`.`41.,'i�'+�4.•4 "S„W?- "!L� "-`a' i i � }'! r y �', �+ !i. � � _ . �t:. t :�. r v n rr.,. We, the undersigned, have read and do understand and hereby agree to abide by the provisions, of this lease. LESSEE;' LESSOR- (Signature) (Signature) >r -• . (Date) (Date) (Signature) (Signature) •u~ (Date) _ (Date) t; is i� t^ F y RESUME OF SfIAPELL GOVi I LAMENT iIOUSIrvG, ING. Shapell Governme t Housing, Inc. was incorporated in 1970 for the primary purpose of providing low and moderate income housing in the State. of California. Shapell Government Housing , Inc. is a wholly owned subsidiary of Shapell Industries, a major developer for over 25 years of single family residences. Shapell Industries felt it had an obligation to provide housing for all persons regardless of age or income. Forming Shapell. Government Housing, Inc. would help achieve that objective. This goal is being realized as Shapell Goverment Housing , Inc: has built over .6,000 units in its short life. Shapell Government Housing has over '1 ,500 additional units under construction with over 3,000 more units in the planning stages. Shapell Government Housing, Inc. has played several different roles as the demands of each project vary. They have been sole developer, sponsor and. contractor, contractor only, joint venturer and contractor, and joint venturer only. Shapell Government Housing, Inc. has also undertaken redevelopment projects in several California cities including an 800- unit condominium project -in Los Angeles and the Marina .Redevelopment Project in San Diego. Shapell Government Housing , Inc. is dedicated to providing the finest .possible housing for lo�v and moderate income persons. To this end, it has formed .the architectural corporation, Planning Design & Research and SGH Management Company, which specializes in low and moderate housing-. Some examples of recently completed housing are Lakeshore Villa on Golfcrest Drive in San Diego and Nielsen Villa in Santa Monica on Barnard Way.. . An example of a development built sever years ago that has since been a continual asset to the community is Villa Yorba in Huntington Beach. EXHIBIT "G" I; L S U 1.1 1:' [;1,1, 1U1"1, 1.1Af,7'7,fIAII Horn may 4 , 1922 Via rrio0 1947 Boston, t•lassachbetts 4 children 1939 - 1941 Attcriricd t.tr veers it,A of: Cali Corn fa ;it I•Js An l['11' ; f:or unJ^r- drad*ur ttc' v:nu : in l;n Wcor i.ng. Cr.aclrr<it-ed AM B.S. in l.:i•✓ i l' Gny0ccriny in 19113 at University oC California , Berkeley. 1943 - 1944 workcd' one year as Aeronautical Migincer for: iJorth Amc-rican Aviations. 1944 - 1946 Writ to Pri.nl von i doc:tri.nation Car,- thr t1av% h&rlj Ykir 11 served ahbard Sea Plane 'render in tho Pacific with Rank of: Lt. (J. 9) 1946 4Jorr:cJ i th PI. 17.. Whegtson ComInigl' in MU cungvr uctinn of . houses , commercial buildings and FHA GOO projects . Early 1950' s Bec:amc a partncr in the lJ. 1?. Rohcrtc:on Corl�>.'rrry cc n:,l:r.u/:t.i,ua 1'IIA r i.ng11 fami.l.y housing, wherry Housing pro jecti- turd- public. housing projects. 1958 - 1961 I'ar:t.nnr in- W. E. Robertson Company constr uct i.n:f a1rprn:':i wnLa l.y. 2,500 unit!-, cC FHA C pchart Housing projects Car M Chyp of Eng.inecr ing in Kentucky and Tcxas; 19G1 - 1S?G3 Partner in various joint ventures Vf ta. E. l:n!.,�rt!;un Cor;;I)any building PIiA single family homes in Los_ Angctes. 1964 - 1970 13ui.1.dinq with var:i.U"S joint vcnttrr as FHA single family dwell- ings. FIIA Section 22.1 (d) 3 and Section 236 projcAs. 1970 to date ArwMent of. Shapall Soverninnnt: Hanvinq , Inc.. n divivir.n of Shap 1 L Industr i , Inc. , cndaand in the bu i 1 rl i nrt and 0e c,1 r)p * ment of many Section 23G. projects totaling over 1 , 500 units . Building Contractor ' s License, State of California since 1950, DQ . Former Director of. the Uui.lding Irulu:;try Association, Lcr:: Anqul.cs ChapL r ?'. On the 1fuird of 1)1reCtOr of L .a cl Ill using Association r .• LIST OF !' . AF!E •LL GO'vCli,:'':I;:Ji Oxnard f;omc„ Inc. - Fort Ilucncmc; 326 unit: Principal i;o Ccfault: cherry Housing Project (:;cc ,below) Camp Pendleton - i)cluz flonrc 562 units Contractor " lolrcrry lion:irrg Project (see belo'a) Fort 1,pox (.sce 2 ,042 units Contractor " I Caphart Housinci Project Fort hood (-,cc below) S00 unity Contractor " Caphart ifou^in(J project Sicjay Apartments 221 (d) (3) 72 unit•:, ContraCtor Los nn(Jel.es 122-55020-C,I)P �: 16 units Princi. »1 " . Van Ness Terrace. 221 (cl) (3) I • Los Angeles 122-55023-LDP . St. Andrews Terrace 221 (d) (3) 27 units Principal " Los Angeles 122-S5030-LDP Westmoreland Apts. 221 (d) (3) 24 units Contractor Lo, Angeles 122-55044-LDP Hobart Terrace 236 project 16 units Contractor. Los Angeles 122-55079-LL`C Hobart Park Apts. 2.36 project 1G units Contractor " Los Angeles 122-55045-10C _ Alvarado Gardens 236 project 60 units Contractor Los Angeles 122-44206-LDC Parthenia. Park Village - Sec. 23 leasing 40 units Principal " Los Angeles 4SL 14 Oxnard Homes, Inc. , Port Hueneme was a project built by Oxnard Homes , Inc. , during 1.950. We Have been unable to obtain the FHA case number. The project is no',., o''ncd by the Navy. ' Camp Pendleton, Deluz Homes, is a t1herry Housing project built in the 1950' s. The project consisted of 562 units in w rich the W. E. Robertson Company was the con- tractor. We have no knowledge of the FHA case number. The project is no,..; owned by the Marine Corps. Fort Knox, is a Capr.a.rt Housing Project built in the 1950's and consisted of 10 pro- jects totalling 2,042 units. These projects a:ere built by a joint venture of which the W. -E. Robertson Company was a part. We do not have the FHA •ca.se number as it was handled through the Louisville office of HUD. The projects are now. o•.med by the Corps of Engineers. Fort Hood is a. Ca hart ILousing Project consistinc of 500 units built at Fort Hood , Texas. These projects were built in the late 1.950's early 1960' s.- We do not have � the FHA case numbers as it .wa.s handled by the Dallas office of HUD.. 'The projects are now owned by the Corps of Engineers. ' SHAPELL .GO`JERH,*-LENT HOUSING & ELLIOTT.MALTZMAM No' Deg cults Action Santa. Clara-1 236 project 17 units Contractor'. By Contractc;� Venice 122-58501-NP Action Santa Clara-2 236 project 22 units I Venice 122-58502-11P L' 1 Action Indiana=3 236 project 44 units " Venice 122-58503-HP • i Action Indiana-4 236 project ll units " Venice 1.22-58SO4-LIP Action Sunset-5 236 project 16 units Venice 122-58505-NP Action. Droadway-6 236 project 26 units 41 " Venice 122-S850G-i11) Action Broad-,;ay-7 236 project 2G units 1. Venice 122-58507-11P Action Indiana.-£1 236 project 13 units " Venice . 122-58508L-lip Markct Park ApL 236 1i1-.ojcct 50 units Inghc•.rood 122-44 L1.9-.1,D1) Dudley Oaks 236 project 20 units Los Angeles 122-44192-I,1)I Figueroa Gardens 236 project 88 'units " Los Angeles, 122-44202-LDP I I .J,zur/' nn:r:[�mo - CnuL,d ' No Defaults nanchecio ocI Sol 236 prnjcct 76 cooLrncLor By Contractors eo}w Syzio(js 122- 14220-Lnz Syracuse park 236 project 36 units ^ to " Baldwin rocb 122-«4712-LDC C.F.F. Apts. 236 project 14 units Venice 1.22-58513-L.oP Action zwJinna-9 236 project 10 units Venice 122-58514-1,,Ip . Action 13rook-s-10 236 project 18 units Venice 122,58515-np units i Action cio�)co-ll 236 project 10 vooLne 122-585I6-np i i project 8� units Action xem` 13 c- ZJ6 p�n]ur vcvicc 1217-58517-mP - Action 6th xvcn0c-15 236 project 10 units Venice 122-44407-me Silvcrlate Village 236 project 88 units Con Angeles 122-44350-u)p Huntington villa Yocho 236 project 198 units DuntiugUzn uead` 122-4i274-LDp Rancho Ellen s 236 project 168 units Oxnard 122-44108-Lor St, Nicholas Housing Development 236 project 36 units of ^ to " Lus. xngeles(winnioo Hills) 122-44300-mc ^ Burnett manor . l8 Z36 project units Long novcb l2Z-44]l9-LnP . Wilmington-Arms In 236 project 164 units Compton. 122-44171-wp ' _ Bizc]`nceot Apts. 236 project. 64 units Downey 122-44314-LoP ` .Chestnut Manor 236 project 24 units Lon Peach l22 �44Z� �oC n9 - - community Arms 236 project 133 units " Pasadena. 122-44526-me ' Fullerton uilln (joint venture) 236 project 168 units ' rolIerton 143-44002-Lop Springdale- west (joint ventoza) 2.36 project' 410 units Long Beach 1-22_44603 c 122-450.38 ' Pacific Coast Plaza 235 project 78 units ' Lpog Beach I22-45025-LDP Banning Villa 22I(d)(3) project 9*0 units ,Wilmington 122-35358-LDP Neilson Villa '236 project I00 units Santa Monica 122-45030-LDP ' Hammer Lane Village 221(d)(4) 130 units Stockton 135-35436-PU-R8U-L8 California Home for the Aged 221(d)(3) 51 units . Reseda I22-353D9-�P-R8H . Auburn Villa 22I(d)(4) 50 units " Auburn 135-35479-PM-W88-L8 SutterVillage 221(d)(4) 74 units � Yuba City 135-36480-PM-W8K-L8 Terrace Baoa 8pta 22l(d)(4) 228 units Grand Terrace 143-25012-P8 Clayton Villa 22I(d)(4) 80 units CooeordI2l-35552-PM-W88-L8 Lakeshore Villa 22I(d)(4) 126 units San Diego I29-35061-PM-W&8-L8 Cooejo Future Apts. 22I(d)(4) . 90 units Thousand Oaks 122-35400-PM-WAB-L& ' Greeubareo Lake Apts. , 22I(d)(4) family 200 units Sacramento I3G-355I?-PM Village Center Apts 221(d)(4) 100 units Anaheim 143-35022-PM Sunny Lane Village 221(d)(4) 40 units Bakersfield I22-35405-P8 Lancaster Homes 11-8, Section 8 120 units Lancaster 122-35386-0P . Reseda East II-B, Section 8 70 units Reseda CHF8 76-67-S Reseda Manor lI-B , Section 8 40 units Reseda C8FA 76-42-S Pacific Coast Villa 221(d)(4) family 50 units Long Beach .Ferownod Apts. 221(d)(4) 76 units ' - Lancaster 122-354I5-PM SHAPELL GOVERNMENT HOUSING , 'LLIOTT MALTZMAff - Cont'd r No Defaults Las Palmas Gardens Section 8 74 units Contractor By Contractors Hollywood, 122-35426 Redlands Park Apartments 221(d)(4) 158 units " Redlands 143-35021-PM' i I I i I I I i • I i • I� - I i i i I f I i I I i i Resume: Walter Christopher Jones December. 1977 'V W. Christopher Jones, Architect, AIA, is President; of Planning Design & Research, Inc. , a subsidiary of Shapell Industries, Inc. Prior.ta this position for nearly three and one half years , he was director of arch- itecture for Shapell Government Housing, Inc. and assistant director % x of architectural and planning for S & S Construction Co. Both companies are subsidiaries of Shapell Industries , Inc. For the last three years , Shapell Industries have led the Southern California Housing Industry in the production.-of housing of combined single family and multiple units. Mr Jones ' interest and specialization lies in the area of housing, community planning and consulting. Before going with Shapell , Chris Jones was with the Department of Housing and Urban Development, Los Angeles Insuring Office, for nearly ten years. During his last year with HUD, he was supervisory architect and deputy " chief architect of the Multi-family division During this time, he actively wrote standards , coordinated and supervised the processing of over two "x hundred million dollars worth of construction, involving over 30 technicians of design, representatives, architects and construction superintendents . He also worked in the housing program area of the Los Angeles HUD office. His involvement and meetings with potential sponsors and- developers was very significant in that numerous housing programs and other federal regula- tions had to be carefully explained. This position required a thorough understanding of all major aspects of the HUD processing division as well -- as architecture, cost and construction, and underwriting procedures. During the three and one half years with Shapell , Chris Jones provided consulting services to outside ,architects as well as coordinated and supervised the design development and production of housing. This involved a close working relationship with the veterans administration loan guaranty division and department of HUD. His understanding of housing ,, large scale planning and applicable federal regulations and standards has proven to be beneficial in the production of housing. His experience has been diversified and covers a broad area of the housing industry. . lie is a licensed architect and member of the American Institute of. Architects. He has participated and is actively involved in numerous professional groups concerned with training , employment and research. He has lectured at the University of California (Cal-Poly) school: of Architecture, prepared technical papers and chaired professional and technical committees.. He served along with seven architects within the State of California on the AIA National Housing Committee during the years '`c°` 72 thru 75. LIST iii 1'I;UJCCI <; FUI; PL,�NPI I ldG I Gfd F;[ >f AI`CII , I N( - Pacific Coast Plaza Long Beach, Calif . 78 units Section 236 122-45026-LU Banning. Villa Wilmington, Calif. 90 units Section 221 (d) (3) * ; 122-35358-LD Rent Supplement Neilson Villa Santa Monica , Calif. 100 uni Ls Section 2.36 122745030-LD Hammer Lane Village Stockton, Calif. 130 units Section 8 136-35436-PM 221 (d)(4) Auburn Villa . Auburn, Calif. 50 units Section 136-35479-PM 221 (d)(4) Sutter Village Yuba City, Calif. 74 units Section 8 136-35480 2.21 (d)(4) Clayton Villa Concord , Calif. 80 units Section f . • ..> 121-35562-PP1 221 (d} (4) Lakeshore Vi 1 la San Diego, Calif: 126 units Section ss 129-35061-PM 221 (d) (4) Conejo Future . Thousand Oaks , Calif. 90 units Section 8 122-35400-PM 221 (d) (4) Village Center Anaheim, Calif. 100 units Section 13 143-35022-1)1'1 221 (d) (4) Sunny Lane Village Bakersfield, Calif. 40 units Section 8 122-35405-PI1 221 (d) (4) Pacific Coast Villa Long Beach, Calif. 50 Section 8) 122-35413-PM 221 (d) (4) Greenhaven Lake Apts. Sacramento, Calif. 200 units Section 221 136-35517-PM (cj) (4) FINANCIAL STATEMENTS Please see Personal Financial and Credit Statement and annual report, attached. If additional information is necessary, we are a public company and all financial information is on file with the S.C.C. Attached also .please .find a United Credit Reporting Bureau, Inca credit report. FHA FORM NO.2417 U.S.DEPARTMENT OF HOUSING AND UROAN DEVELOPMENT Form Approved Rev. June 1963 FEDERAL HOUSING Abl"Wn TRATICW Budget Bureau No. 63-R0027 PERSONAL FINANCIAL AND CREDIT STATEMENT Project Name HUNTINGTON GARDENS Number Location HUNTINGTON BEACH Statement of SHAPEI 1 GOVERNMENT HOUSING, INL As of September. 30 19 78 Address -8383 Wilshire Blvd., Suite 700, Beverly Hills , Ca. 90211 ASSETS _.LIABILITIES_A_AND NET WORTH Cash on hand in banks Accounts payable $ .3,573,452 (Name of depositary) (Balance) Notes payable . . . . .. .. . . . . . . . E . . . . . ... . . . Debts payable in less than one year(secured by mort- .... .. .. .. .. .... .. .. .. " ' . . , •• gages on land and buildings) ,Uni on' 'Ba'n' . . 301 ,216 301 ,216 Debts payable in less than Accounts receivable a', DJ, ,9H one year(secured by chattel -0- (1.12,986 mortgages or other liens on Less: Doubtful Accounts . . . . . . assets) Notes receivable. S , , , ,?9:�?9? , , , , , , , , , , , , Less: Doubtful Notes —0— ?9)?9? . . . . . . . . . . . . ... . . . . . . . . . Stocks and Bonds- Market Other current liabilities: Value (Schedule A-reverse (describe) side) -0. Accrued Li abi bi ti.es $ Other current assets:(describe) • • • • • • • • • • • • • • • • • • • • • • • Short Term Invest.. 1 ,000 0ork i n .process , . 2.,50 f,504 Total current Liabilities $ . . ,Land, ,Escrow. Dep, 73=475 Debts payable in more than 2,575,979 one year(secured by mort- Tot • • " 'al Current A• • . •ssets" " " " 2 793 501 gages on land and buildings) .. 3 7 a, Real Property- at net• Debts payable in more than (Schedule B-reverse side) 95.MQ9 one year(secured by chattel mortgages or other liens on Machinery Equipment and Fixtures - at net l ,61 l . . . . . . . . . . . . . Life Insurance (Cash value . . . . . . . . . . . . . . . . . . . . . . . . . less loans $ . . . . . . .. . . Other liabilities: (describe) Other assets(describe): .. . . . . . . . . . . . . . . 5 . . . . . . . . Inves t. ,i.n,partnershi I . _ 3601328 • • • • • • • • • • TOTAL LIABILITIES ,3,,573,;452 .' .. .. . . . . . . . . . . . . . . .. . . . . . . . . . . . Net Worth 540,497 360,328 - — •• . . — TOTAL LIABILITIES TOTAL ASSETS s 4,1 1 3,949 AND NET WORTH 3 4,113,949 • Cost, including improvements, less depreciation. Accounts and Notes Receivable: Delinquencies: Amounts, if arty, due from partners (P), employees.(E) If any taxes, mortgage payments or other liabilities are or relatives (R), specify: past due, specify: Type (P,Eor R) Name I — Address Amount Type Liability Amount Circumstances — E M. Ma 1 tzm _ 0-00 _ -.--- E M. Harkins 500 Notes Payable: Insurance: Maturity Payable to Amount Date Life (face value) $ Beneficiary 0 - — Pledged Assets: Legal Proceedings: Type Pledged Amount Offsetting Liability —_---- --------- ------ If any legal proceedings have been instituted by creditors, or any unsatisfied judgments remain on record, give full de- -- - tails: NOTE: If more space is required use separate sheet of paper writing on one side only. (Over) a. _ SCHEDULE A- STOCKS'AND BONDS Current Market Value If Listed, Description Cost (At date of this stutemer") Name Exchange SCHEDULE B - REAL PROPERTY (INDICATE PRIVATE RESIDENCE, IF ANY) Location and Description Original Market Assessed Mortgaged Insured of Land and Buildings Owned Age Cost Value Value For- For- Land — --- -- -- — --- Uninc. area of L. A. Co. 8 acres + _ 663,_520_ _ 83,780 -0- ' _ Fullerton 5_acres + 1_7_9.,45_7 __ ._29, _0_ -Q— alum Springs 3.5 acres T 115,532 17 ,780 -0= TOTALS 58 509 130,850 -0- Title: The legal and equitable title to all pieces of the above-described real estate is solely in my name, except as follows: Location of Real Property Name of Title Holders References: Bank_ Union Bank, 9460 Wilshire Blvd, Beverly Hi 1 l s Calif. - ------------ --------------------------------------------------------- Trade— _ Chandler Lumber Co,._,_8719_ Van Nuys Blvd. . Van Nuys 91407 _ Apar_tme-n.t--P-I-Imb.er-s_,--14949_Ga-rfi-eld_A-ve-,.-Par_aim-u.n-t---9-0Z23 -----. --•- Re- i-ahle_Garsiens_,1B.3Il0-_u-r-bank_B]vd,sarzana__-913,56_ —__ Anna_lane-&-As.so_cia_te-,, 1085-4__Ma-gnolia-,---No_--Ho-Uy-wood -- Wal-ton I HEREBY CERTIFY that the foregoing figures and the statements contained herein, submitted by me for the pur- pose of obtaining mortgage insurance under the National Housing Act, are true and give a correct showing of my financial condition as of this date. Signed this day of 19 (Name) -- WARNING U.S. Criminal Code, Section 101b, Title 18, U.S.C., "Federal Housing Administration trans- actions provides in art: 14 Whoever, for the p p purpose of influencing in any way the action of such Administration . . . makes, passes, utters, or publishes any statement, knowing the same to he false, . . . shall be fined not more than $5,000 or imprisoned not more than two years, or both." 4' U.S. GOVERNMENT PRINTING OFFICE: 1913 794-558/541 4 UNITED CREDIT REPORTING BUREAU, INC. REPORT FROM Garden Grove; Calif. `\pj10N o� ACCOUNT N0. 1374 5J THIS CONSUMER REPORT 15 GIVEN SIMPLY AS AN AN IN DETERMINING TTE �] y F' PROPRIETY OF DEALING WITH THE SUBJECT OR E%T ENOI NG CREDIT; IT I NP US DS NI DATE 12-30-77 4q"i m BASED UPON INFORMATION OBTAINED IN GOOD FAITH BY THIS AGENCY FRO J p SOURCES DEEMED RELIABLE. THE ACCURACY OF SAME, HOWEVER, IS IN N B �_ WAY GUARANTEED. THE INFORMATION THUS CONVEYED IS CONFIDENTIAL FO NAME SHAPELL GOVERNMENT HOUSING,IN REP°R T s PERTINENT APROVIISIONST OFOTHE FAIRECREDOIT AREPORTDINGEACTUOFE1971 ADDRESS 8 38 3 Tdil shire Blvd. #700 �dti ` �C TATIVES SHALLDBERRESPONSIBLEIFORBVIOLATIONROFNANOYFOFTTHESEPCONDI Beverly Hills ; Calif. 90211 '�H1 S(�4'� _ THENSAMED BY YOUR ACCEPTANCE OF THIS REPORT.SPECIFICALLY AGREE T eg Master file kno to CONF NTIAL'REPORT FIRM LOAN NO. 1. Is firm a corporation, partnership, proprietorship? f ' Corporation 2. Approximately how long in business? 2. 4— 0 3. Nature of business ; 3• Buildiri 4. Are there any other DBA's connected or interlocked with firm? 4. see below (If so, explain below in detail) 5. 5..Is general reputation of firm or officers good? 6. see bel-ovs G. Do you learn if firm or officers has failed in past? 7. gee bp1ow 7. Do you learn of any derogatory legal actions on firm or officers? 8. 8. What is firms general reputation towards contractual obligations? 9. se below 9.Officers or principals of the firm: NAME TITLE AGE Maltzman, Elliott B Shapell, Nathan (NMI-) a 55 Maltzman Mark A. McCune Bernard Bft N�{a$; h . A lff�; ss, B. Officers or Principals; C. Financial; D. Cret#�C q g 'Y/Treasurer 48 S ape 1 Government Housing Inc. , is a California Corporation, chartered in A.pri of 1970. They are a building and construction firm. Their parent company is Shapell- Industries, Inc. , locatd at the same address; and they also do businesE under various otkw names among which are S &, S Construction, the Woodbine Cor- poration, etc. The company has been located and operating out of the above giv address for approximately 5 years;prior 8857 Wilshire Blvd. , Beverly Hills, Cal License #B262917. OFFICERS: E. lio=B. Maltzman is.-the President of the corporation. He is 55 yrs. of age, married to Harriette age 47 for approximately 29� years and has no dependent children. ' He is known to- our Van Nuys, Calif. office files personally since 8-68, had several trabs with a high of a Low 5 figure amount, being handled as agreed and there were no legal items learned in his personal name. Nathan Shapell is Vice President of the corporation. He is also President of Shapell Industries Inc. . , He 'is 55 years of age. He is unknoi�m `to our files reviously; and without additional information such as address, social security umber etc. , we were unable to check further. Mark A. Mal.tzman is also a Vice President of the corporation. He has been with the company for approximately 1� years ' He had no prior file kno-vm to us perso ly,and without. additional identification, we were unable to check further. eeutive Vice President is.Bernard E. McCune. He is 55 years of age and has been with the company since 1960. There was .no additional personal infomation inclosed and he had no prior file'.known to ...us personally. ruin Sterman is the Secretary and Treasurer of the corporate structure. He is years of age and has been with the company since 1959. He is also unknown t our files previously and without additional information we are unable to check her. ona 'Sachs is an Assistant Secretary of the corporation. She is in her, mid-30' d has been with the Company since 4-70. No additional personal information w inclosed. She had no prior -file known to us. INANCIAL: ing connections are as listed below for all information reported to us. otal -assets reflects $147,041,000. on the financial statement dated 1976. iabilities & Shareholders' Equity $16,253,000. , notes payable 655,142,000. , ncome taxes payable $5,521,000. Commitments & Contingencies 70,125,000. all f which reflect on .financial •statement. of.. 1976. Refer to statement attached or all additional information on prior'[ ears. We have also included the FORM 1966 (OVER) quarterly reports date,- ;4-01-77 and 7•-29-77 (last -irterly;. report was issued 9-?7 and Mona Sachs stated if not already submitted to your firm, would do so upon request) .. All these reports include the above .firm, Shapell Government Housing. Inc. .CREDIT: . . n on Bang. reported 2 combined business checking accounts under the above busi- ness name since 7-70 low .siX .figure balance; aggregate accts. in the low seven .figures. Reported commercial loan under Shapell Government Housing that opened =76 in the amt', ' of a medium.. 4 figure; closed 12-1-,76 handled in a satisfactory manner. , They 'are also included in a line � of credit that is extended to' the subsidiaries, a low 5 figure is available, all types of loans are handled very .satisfactory. Apartment Plumbers stated, dealings for approx. 5 yrs. , high of, ,S30,000. , -30 day acct. , no balance• owing & as agreed. Reliable Gardens reported acct. opened 15jyrs. , high credit $350,000. , progress payments, balance -is current &..acet. is handled in an ,Excellent, mann6r. R.E.Job Cement Contractors(under all the business names)They have done business 'for approx. 6 yrs.or longer(contract basis) per contr. approx. one-fourth milli dollars, balance owing is .current and as agreed. Surd & Harrington` Lumber Co. - open for many yenrs, .high credit $65,000. , 'no bal. owing find as agreed. Gal Russ Construction Co. reported acet. opened since 1972, contract basis, 30 day basis, ha:s a current -balance owing, .amount not given, pays very good. , • Anzalone & Assoc. Painting Co. stated acct. opened several. yrs. (approx. ' l2yrs. ) ,high credit $150,000. ,: no bal. owing at this time, acot. is- at-agreed. ;Chandler Lumber Co. reported dealings since 4-700 high $1000000. 1 - 30 day acet. as agreed (no outstanding balance under Shapell Government Housing) . . Delaney Fashion Doors reported credit extended ,to parent company: since 1966, wi ,present firm since -4-70,. high �9000. , 30 ,day` acct. , ..no bal. oviing & as agreed. Raymond-Plastering reported acct. opened with parent company since 1966, with current firm since they opened, high $760,000. , 60day acct. , no balance owing at,.this time, acct, is handled as agreed. Building,Material Dealers Credit Aosn:: reported firm, known to their files since �4-770 listing same officers; updated. information as follovis: ' 51 , 7 trades: Bank commercial account opened 1964 low 7 figures. Three trades reporting; oldest opened 15 years; highest credit. , �465,000; two prompt and .one `reported as 120 days slow.. No trades reporting in 1976; 1 trades reporting previously; highest credit of S110,000; all 30-day accounts; prompt, as agreed and discounting. „ LEGAL: Legal check reveals suit dated 8-73 filed by Raymond C. Jones in the 'amount of 525,000 for breach of contract, Robert DeMarco, attorney, states suit was settled in 1975 _for $12,000. `VOLLOWING ITEMS REPORTED .UNDER SH.AYELL INDUSTRIES INC. (parent company) , Suit filed 1-77 by Plast Aluminum Mfg. Inc. , $875; foreclosure on mechanics lie Suit filed 12-76 by Sol_ Wohl.Stattar .for '$5000; no disposition. .Suit- filed..7-76 by. Modern Materials Inc: , 5602; no disposition. Suit filed -5-76 •by Reynolds :Prater Service for $1985; no disposition. . Suit. filed .1-76 by Kathryn, L. Cannon.for return of deposit, 41000; no dispositi . Suit filed .11-75 by'Denis Demers for return of deposit, $3164; dismissed. Suit filed _11-75 _by. S.W.- Glasser for return of-. deposit, a,3000; no disposition. Suit filed '10-75 by Feliz:`Rodriquez far 'return .of deposit, $1000; """" Suit.filed 8-75. by Gerald .Lezama for return of deposit, 1000; no disposition. Suit filed 8-75'by' Jason Kao for return of deposit, 1$1000; dismissed. Suit filed 8-75 by Arthur Johnson for return of deposit, $1000; no disposition. 'Suit filed B-75 b Robert L. Hix for house defect, y`5000; no disposition. Suit filed 10-75 by Neal Rosenfold for return of deposit, $1000; no disposition Suit filed 8-75 by Ramon Rubio for breach of contract, $1000; dismissed. Suit .filed 4-75• by Stanley Abranow for house defect, ri5000; no disposition. There are various other suits (at -least 15,1 ) filed in 1974; and as many more from 1971 thru 1973.. If you .desire additional data on these, please advise and we will attempt to comply. r '.ar'E''s'-c, f,�. _ ' _ :r2s r"va= K: -":.,..='"a.c,y- _•..x wh'` ',+- Vr. _'- _ , ^•Y,r . .""' .. .,ti.. ,y Financial Hi ;ialights For the years ended December 31, 1976 , 1975 Revenues.—_- $133,079,000 $ 99,156,000 Costs and Expenses $1'2, 47,000 $ 87, 67,000 Income Before Income Taxes____-�_ $ 20,132,000 $ 11,789,000 Provision For Taxes on Income_.._ $ 10,477,000 $' 6,356,000 Net Income $ 9,655,000 $ 5,LQ3,o00 Net Income Per Share— $ 3.15 $ - 1.75 Shareholders' Equity $ 70,125,000 $ 62,089,000 Book Value Per Share $ 23.21 $ i9.98 Total Assets $147,041,000 $125,724,000 Average Number of Shares Outstanding _ _ 3,o68,82o 3,1o6,827 New York Stock Exchange Prices i.st Quarter— 171/2 t0123/s -127/s to 51/2 ;rid Quarter __ 173/4 to 1I 3/4 131/8 to 91/8 3rd Quarter 171/8 to 13.0. 14 to 81/8 4th Quarter__ 2o.o to 163/s 121/2 to 77/8 Year_ _ 20.0 to 113/4 14 to 51/2 Dividends per Share 1st Quarter--._------ $.025 $.025 2nd Quarter_ _ $:025 $.025 3rd Quarter_ ___ — $.025 $.025 4t11 Quarter_ _ __ _ $.050 $.025 r Shapell Industries,Inr. and Subski,,iries Consolidate+d.Sumnsary of Operations - Year Ended Decernber 31, 1976 1975 1974 1973 1972 Revenues _ _ $133,279,000 ' $ g9,156,000 $xzo,667,000 $ 95,851,000 $72,950,000 Costs and expenses-,— 11o,444,000 84,306,000 95,876,0oo 78,795,000 58,72-1,000 Interest expense 2,503,000 3,061,000 3,006,000 864,000 1,i63,000 112/947, 87,367, 28,882,000 8o,659,000 5y.88q.,ouo Income before income taxes 1-0,132,000 11,789,000 11,785,000 15,192,000 x3,o66,000 Provision for income taxes t 10,477,E 6,356,E _ 6,i7o,000 7,836,000 _ 6,7og,000 Net income 9,655,000 . $ 5,433,Ow $ 5,615,E $ 7,356,E $ 6,357,000 Net income per share._ 15 $1.75 $1.71 .$2.10 $1.81 Cash dividends paid per share $.125 $.10 $.x0 $.ho $.075 Shareholders'equity-- $ 70,125,000 $ 6z,o8g,000 $ 56,966,000 $ 53,123,000 $47,707,000 Book value per share $23.21 $1g.98 $18.34 $15.94 $13.55 Total assets $147,041,000 $125,724,000 $120,46o,aoo $117,391,000 $97,657,000 Number of weighted average shares outstanding 3,o68,820 3,1o6,827 3,274,56o 3,5o5,869 3,519,171 Shapell Industries, Inc,and Subs Ties Consolidated Balance Sheets December 31, 1976 1975 Assets Cash and Short Tern Investments Cash, including restricted funds of$541,000 in 1976 and$1,8o8,000 in 1975—Notes 4 and 5._____ __ _ $ 1,330,000 $ 2,005,000 Short ter:rn investments—at cost which approximates market— _ 1.56,000 4,894,0ao 1,486,000 6,899,000 Receivables—Notes 1, 2 and 5 Installment notes receivable Secured by first trust deeds and pledged as collateral for notes payable 9,594,000 15,157,000 Secured by first trust deeds not pledged_ __ 3,478,000 1,526,000 Secured by second trust deeds not pledgecL...____ _..____ 1,181,000 1,268,000 14,255,000 • 17,951,000 Construction loans to related partnerships—Notes 2 and 8 4,372,000 -- Other receivables _ __ ________ __ 11477,000 727,000 20,104,000 18,678,000 Real Estate and Investments—Notes 1, 5 and 8 Land and improvement cost of residential subdivisions_..____ 90,541,000 64,685,000 Land held for future development___ . _ 23,001,000 26,054,000 Investment in partnerships_..._._....__.—. _—___ 3,120,000 541,000 116,662,000 91,28o,000 Operating Rental Properties and Equipment —at cost—less accumulated depreciation of$1,6 ro,000 in 1976 and $1,131,000 in 1975—Notes 1, 3 ,and 6,972,000 7,384,000 Prepaid Expenses and Miscellaneous._..__ __._.__.__ _ 1,817,000 1,483,000 $147,04-1,000 $125,724,000 The accompan)ing notes are an integral part of these financial statements. 'Shapell Industries, Inc.and Subs ries Consolidated Stateinents of Changes in ]Financial Position For the Years Ended I7erernbcr 31, 1976 1975 Funds Were Provided By: Operations Net Income— $ 9,655,000 5,433,000 Provision (credit) for deferred income taxes — __ _. (543,000) (1,074,000) Provision for(reduction of)valuation allowances, net of provision (reduction) of$264,000 in r976 and.($:w,000) in x975 :_ _ _ (572,000) 9,000 Depreciation_....—._...._..� _ _�___ � _ � 627,000 5xz,000 9,z67,000 4,88o,oao Collections on installment notes receivable ._._..,. - 8,566,66o ' ,16o,000 Issuance of notes payable Unsecured-- 2-1,935, 4,920,000 Collateralized by security interests in installment notes receivable- _. _ __ -- 8,779,000 Collateralized by security interests in real estate and operating rental property 42,,:.08,000 28"In'000 Increase.in Current income taxes payable .3911000 1,439,0 Accounts payable and customer deposits_ ._ 6,2-62-,ow 1,529,000 Cash and short-terra investments.___ $ 93,842/000 $, 52,j-12,000 Funds Were Used For: Purchase of treasury shares 1,233,00 $ Dividends on common stock--- 386,000 .3m000 Payments on notes payable Unsecured.._...____._._ 11,824,0001 1.z,8..14,000 Collateralized by security interests in installment notes receivable__ _ _-_ _ .._ .____ r _ 5,1o3,000 'a,�c�7,0t��� Collateralized by security interests in real estate and operating rental property 39,340,000 29,62.8,ow Additions to installment notes receivable ____ 4,518,,000 1,337,POO Constxuction.and purchases of operating rental property and equipment_ 2r.51000 1,03;000 Increase(decrease)in real estate and investments Land purchases__ _ 22,860,000 2-0,738,000 Other net reductions to land and improvement costs of residential subdivisions.-- _ (2 7,000) (14,778,ogo) Investment in partnerships, net of equity in operations of$5ig,000 in 1976 and$330,000 in 7.975—_ 2,579,000 (97,000) Construction loans to related partnerships _ 4,372,000 -- Increase(decrease) in other receivables _ 750,000 (591,000) Prepaid expenses and miscellaneous__ __ 334,000 191,000 $ 93,842,000 $ 52,112,000 T'he accompanying notes are an integral part of these financial statements. -ShapeII Industries, Inc. and Sub: tries Consolidated Statements of uncome For the Years Ended December 31 1976 1975 Revenues-Note 1 Sales of single-farnily residences _ _ $120,467,000 $ 94,560,000 Other revenues -_ - xa.,o67,000 2,702,000 Interest income 1.545,E 1,894,a00 133,079,000 99,156,odo Costs and Expenses--Note 1 Single-family residences— 96,978,000 78,067,000 Other costs _ 7,933,000 1,063,000 General and administrative expenses________ _ --- 5,533,000 5,176,000 Interest incurred 4,261,000 4,700,000 Less interest capitalized (1,758,000) (1,639,00a) 112,947,000 87,367,000 Income Before Income Taxes— 20,132,000 11,789,000 Provision (Credit) For Income Taxes-Note 6 Current_._.______:._. _ 11,020,000� 7,430,000 Deferred (543,000) (1,074,000) xo,477,000 6,356,000 Net Income __ _ _ $ 9,655,000 $ 5,433,000 Net Income Per Sliare (based on the weighted average number of common shares outstanding-3,o68,820 in 1976 and 3,io6,827 in 1975) -- $ 3.15 $ 1.75 The accompanying notes are an integral part of these financial statements. m i December 31, 1976 1975 Liabilities and Shareholders' Equity .Accounts Payable and Customer Deposits Accounts'payable and accrued liabilities 13,019,000 $ 8,763,000 Customer deposits _ _ 11,2 4,000 -�- 1,228,000 16,253,000 9,991,000 Notes Payable—Notes 4 and S Unsecured notes payable _ _ 13,502,000 3,391,000 Installment notes--collateralized by security interests in installment notes receivable 7,938,000 13,646,000 Notes collateralized by security interests in real estate and operating rental property _ _- - 33,702,000 30,934.E 55,142,E 47,971,000 Income Taxes Payable—Note 6 Current.________,....,.. 2,912,000� 2,521,000 Deferred _ _ __ 2,609,000 3,152,000 5,521,000 5,673,000 Commitments and Contingencies—Note 8 Shareholders' Equity—Notes 7 and 8 Preferred stock without par value--Authorized-1,000,000 shares--none issued Common stock--$i par value Authorized-1o,o00,00o shares Outstanding-3,02i,287 shares in 1976 and 3,106,827 in 1975 (excluding; treasury shares of 507,967 in 1976 and 422,427 i n i975) =-- -- _._.________ 3,529,000 3,529,000 Additional paid-in capital _ 13,185,000 13,185,000 Retained earnings__ ______ _ _ 53,411,000 45,375,000 70,12-5,000 62.,o8g,o00 $147,04.1,000 $1a5,724,000 SCHEDULE FOR PROJECT DEVELOPMENT December 22, 1978 Submission of proposal . April 1979 Selection of developer. Initiation of negotiation between developer and city for participation/lease agreement. May 1979 Execution of participation/lease agreement. Council approval of zoning and E.I .R. Commencement of working drawings by developer. Council approval of contractor. September 1979 Completion of working drawings by developer. Submission of plans for building permit. November 1979 Receipt of building permit. Commencement of construction. November 1980 Completion of construction. Occupancy. Shapell Government Housing, Inc. is able to act on this project in a .multitude of capacities including developer, contractor and managing agent. This will facilitate our processing and development of the project and as such we will be in a position to present to the City Council our contracting entity prior to the time schedule listed in the proposal . We have our schedule differing in that we anticipate it will take two to three months to obtain a building permit. This was not considered in the schedule and will add two to three months to the schedule. ROBERT J. RODINO ASSOCIATES 2114 North Broadway Santa Ana, California 92706 (714) 558-7264 HOUSING SURVEY AND NEIGHBORHOOD ANALYSIS OF NEIGHBORHOOD PRESERVATION TARGET AREAS June 17 , 1977 Submitted to : Department of Planning and Environmental Resources City of Huntington Beach, Calif. Los Angeles Office: 1047 Gayley Avenue, Suite 201, Los Angeles , Ca. 90024 TABLE OF CONTENTS Page I. INTRODUCTION 1 A. Housing Survey 1 B. Neighborhood Analysis 2 II. HOUSING SURVEY 4 A. Physical Survey 4 B. Rehabilitation Needs Analysis 12 C. Resident Interivews 25 III.NEIGHBORHOOD ANALYSIS 30 A. Physical Characteristics 30 B. Social Service Available to Target Area Residents 39 C. Economic Characteristics 42 APPENDIX TABLES Page TABLE I City-Wide Sub-Standard Housing Summary 9 TABLE II Census Tract 993. 02 Downtown-All Housing 9 TABLE III Census Tract 993. 03 Oldtown-All Housing 10 TABLE IV Census Tract 994. 02 Oakview-All Housing 10 TABLE V Census Tract 992. 15 Bushard-All Housing 10 TABLE VI Census Tract 994 . 01 Sub-Standard Housing Only 11 TABLE VII Census Tract 992. 12 Sub-Standard Housing Only 11 TABLE VIII Census Tract 992. 13 Sub-Standard Housing Only 11 TABLE IX Census Tract 994. 03 Sub-Standard Housing Only 11 TABLE X Rehabilitation Cost Summary 13 TABLE XI Rehabilitation Summary 14 TABLE XII Non-Residential Property Summary Census Tract 992. 03 Oldtown 36 TABLE XIII Non-Residential Property Summary Census Tract 994 . 02 Oakview 37 TABLE XIV Non-Residential Property Summary Census Tract 992. 15 Bushard 38 TABLE XV Residential Resales Census Tract 993 . 03 Oldtown 43 TABLE XVI Residential Resales Census Tract 994 . 02 Oakview 43 TABLES (Cont'd. ) Page TABLE XVII Residential Resales Census Tract 992. 15 Bushard 44 TABLE XVIII Residential Summary Census Tract 993. 03 Oldtown Appendix TABLE XIX Residential Summary Census Tract 994 . 02 Oakview Appendix TABLE XX Residential Summary Census Tract 992.15 Bushard Appendix TABLE XXI Mobile Homes Summary Appendix I. INTRODUCTION A housing survey and neighborhood analysis was conducted by RODINO ASSOCIATES, during the period from April 13 through June 15, 1977 for the following purposes: 1. To identify quantitatively and qualita- tively, the nature of sub-standard housing and neighborhood problems in the City of Huntington Beach. 2. To provide input to the neighborhood preservation program development phase of the Community Analysis Project. 3 . To provide data which the city may use in preparing its Housing Assistance Plans , (particularly, Table I - Existing Housing Conditions, and Table III - Current and Three Year Goals) . Accordingly, the housing and neighborhood conditions were surveyed in detail in four previously identified target areas and four fringe areas. In an addendum to this report, RODINO ASSOCIATES will prepare a briefer survey of the "good and excellent" areas of the city as a check against possible early signs of deterioration. The addendum will be submitted in approximately one week from the submission of this report, and will also contain additional socio-economic data on low and moderate income housing and households. A. Housing Survey The housing survey described in this report includes the following information: - 1 - 1. A dwelling unit count and a categorization of dwelling conditions (standard; in need of minor rehabilitation, moderate rehabilitation, or major-demolition) in census tracts: 993 . 02 , Downtown; 993. 03 , Oldtown; 994 . 02 , Oakview; and 992. 15, Bushard. 2. A count and a categorization of the sub-standard dwelling units in four "fringe" areas, in census tracts 994. 01, 994. 03, 994.12, and 994 . 13 . 3. A street listing of the number of units within each category for items one and two above. 4. A detailed rehabilitation scope of work and cost analysis on eleven dwelling units in the Downtown and Oldtown areas. (The remaining nine will be submitted as part of the addendum. ) 5. Socio-economic data on the households that reside in the eleven dwelling units analyzed. 6. A comparison of SCAG and census data with the survey results. B. Neighborhood Analysis The neighborhood analysis conducted includes information on the physical, social, and economic characteristics of ' the areas surveyed and of their residents. The following information has been provided: 1. A count of the non-residential properties in census tracts 993. 02 , 993. 03, 994. 02 , and 992. 15. 2. A summary of the public works needs of the initial four target areas and of the four "fringe" areas. 3. A review of the condition of shopping facilities in each target and fringe area analyzed. 4. The location and nature of social and recreational service facilities serving the target and fringe areas. 5. The location of industrial areas within the neighborhoods surveyed. - 2 - 6. Social make-up of residents in the areas analyzed. 7 . Data on housing sales in the four target areas, including sales price averages, sales volume, and types of financing involved. 8. Overall new construction and rehabilitation underway in the areas. 9. General conditions, appearances and quality -of each area as a neighborhood or portion of a neighborhood. The results of the housing survey and neighborhood analysis will enable the consultants to identify priority target areas , determine cost of rehabilitation, the nature of the preserva- tion efforts required, and the liklihood of success. Some general recommendations have been made along these lines in the concluding chapter. Greater depth of analysis on these topics will be provided in the preliminary and final reports on program strategies, to be submitted in the coming weeks. - 3 - II. HOUSING SURVEY A. Physical Survey The housing survey of problem areas in the city was conducted by starting with the four census tracts identified in the city' s 1977 Community Development Application for CD fund allocations (see Table 1-1, page 4 on the CD Applica- tion) . The survey was then extended outward to the surrounding "fringe" areas to ascertain the existence and extent of deterioration in these neighborhoods. As with the survey of the Downtown area described in the report submitted on May 11, the survey was conducted through a combined walk-through and drive-through of each area. Each dwelling unit was physically counted either from the exterior or by entering the premises or foyer (in the case of enclosed multiple dwellings) and counting mailboxes. In some cases, particularly in the Downtown and Oldtown areas, dwelling units erected behind the main structure or over a garage in an alley, were blocked from normal street line-of-vision. Every attempt was made to include such units in the survey by checking alleys on questionable properties, and by viewing the rear of the property from side or adjacent streets. The housing in each area was categorized according to its condition, with the sub-standard conditions represented generally in terms of cost to rehabilitate as follows : 4 - Minor rehabilitation $ 500 - 1, 500 Moderate rehabilitation 1, 500 - 6 , 500 Major-demolition 6 , 500 and over Major rehab and demolition were combined because of the difficulty in making the distinction between the two from an exterior survey. The results of the survey are summarized in Tables I-IX in this Chapter, and are presented in a street-by-street listing in the Appendix. Several additional "fringe" areas will be investigated, in detail, particularly the census tracts north and northeast of Bushard (992 .14 and 992 .16) and reported in the Addendum, although no signi- ficant change is expected in the overall survey results. As Table I indicates , there are a total of 1,830 dwelling units in the city needing some form of rehabilitation, from minor to major-demolition. According to the Urban Reinvest- ment Study of the Southern California Association of Govern- ments (December 1976) , Huntington Beach has an estimated 1,381 dwelling units needing rehabilitation or replacement, as of 1977 (with interpolation between 1975 and 1980 estimated) . The primary difference in the SCAG and RODINO ASSOCIATES figures is in the category of units needing minor rehabilitation. SCAG bases its calculations on age and assessed value or rent paid. However, any residences built after 1949 do not enter into SCAG' s calculations . Thus, dwelling units that are up to 28 years in age that have been 5 - poorly maintained, will not show up in SCAG' s estimates, but will show up in a direct observation survey. For the most part such dwellings will be in the minor or moderate rehab category. The survey summary for the Downtown area (993 . 02) has been included (Table II) for two reasons. First, it has been adjusted for two relatively minor errors. The Huntington Pacific apartment complex on Pacific Coast Highway was incorrectly recorded as having 150 dwelling units in the May llth report. It actually contains 106 units and the adjustment of 44 units has been included here. Also, 20 single-family houses on Main Street above Palm were incorrectly included in the original count. The impor- tant sub-standard dwelling unit count, however, was not f, effected by either of these errors. � �• tj�\ Secondly, the Downtown survey is included here for v, completeness, so that the reader may review the results of the housing survey under one cover. The Downtown and the Oldtown areas (993 . 02 and 993 . 03) have the largest number of seriously deteriorating dwelling units (moderate and major) . Downtown has 517 units in these categories, with 156 in the Oldtown area. Oakview, however, contains the largest number of multiple-dwelling units in the early stages of disrepair, with 276 multiple dwellings - 6 - needing minor repair. Since multiple-dwelling rental units tend to incurr greater maintenance and repair problems than owner-occupied units, this situation forecasts serious difficulty over the next few years, unless corrective actions are taken. Bushard, -on the other hand, is largely in good condition. In all, 51 single family units were found to need minor rehabilitation, and for the most part, these were scattered throughout the area, with some concentration occurring in the northeastern "New England" section of the tract. Four pockets of deterioration were discovered that merit attention and assistance surrounding the Oakview tract. These are described in Tables VI to IX. They include portions of the southern area of 994 . 01, western sections of 992.12, several streets in the northern part of 992 .13 , and a small area in the northeastern section of 994 . 03 . In all,these areas comprise only 76 sub-standard dwelling units, but their clustering effect, combined with the negatively changing conditions in Oakview, magnifies the potential for deterioration in the whole area. One particular neighborhood shows several serious signs of initial deterioration. The area in 992.13 , south of Talbert and east of Beach Blvd. , contains 45 single family dwelling units in need of rehabilitation. In addition, no healthy 7 - signs of housing activity, such as new construction, private rehabilitation, or active resales , appear to be occurring in the area. As shall be described in the next chapter, the general appearance of this area includes small trucks and recreation vehicles parked on front lawns and overgrown shrubbery, giving the feeling of a slowly deteriorating neighborhood in its beginning stages, with little "free market" activity to reverse it. Tables I through IX are on the following three pages. f - 8 - HOUSING SURVEY SUMMARY TABLES (Cont °d. ) TABLE VI Census Tract 994 . 01-Sub-Standard Housing Only - On Washington Street, above Warner Avenue, between Lyndon and Nichols 1-Family 2 minor rehab. 6 minor-moderate 2 major Sub-total 10 units 2-Family 2 moderate-major Total 12 sub-standard units TABLE VII Census Tract 992. 12-Sub-Standard Housing Only - South of Slater and East of Beach, on Cameron, Van Buren, and Jefferson Streets 1-Family 2 minor rehab. 2 moderate 3 major Sub-total 7 units 4-Family 4 moderate Total 11 sub-standard units TABLE VIII Census Tract 992.13-Sub-Standard Housing Only - South of Talbert and East of Beach, on Wharton, Kiner, Hartlund, Sterling, and Magic Streets. 1-Family 15 minor rehab. 30 minor-moderate Total 45 sub-standard units TABLE IX Census Tract 994. 03-Sub-Standard Housing Only - Along Talbert, West of Beach Blvd. 1 Family 8 moderate-major rehab. Total 8 sub-standard units - 11 - B. Rehabilitation Needs Analysis A detailed analysis of the rehabilitation work needed and rehab cost was performed in eleven of the twenty houses to be so analyzed during this project. Delays in the city making initial contacts, combined with normal skepticism on the part of the residents , have slowed the completion of this task somewhat. Rather than delay this report, ' however, until all twenty are completed, the consultants will submit the results of the remaining nine in the Addendum. The scope of work and cost analysis was combined with interviews with the residents of each house analyzed to obtain social and economic data relating to the families ' needs for housing and financial assistance. Again, owing to the skepticism of the residents , this data is sketchier than we desire, and attempts will be made to improve the information both quantitatively and qualitatively. To safeguard the confidentiality of the residents, each house analyzed will be identified by its census tract, street, and an assigned property number of 1, 2, 3 , etc. The actual files of the data collected with addresses and greater detail in work scope definition will be given to the Planning Department for their confidential files . The actual Rehabilitation Work Sheet used to define the 12 scope and cost of rehab work contains 93 separate items to be checked and costed, including descriptions of the general property conditions. The rehabilitation cost summary of the eleven houses analyzed is as follows : TABLE X Rehabilitation Cost Summary Property No. Rehab Cost Census Tract 993 . 02 Downtown 1 $ 2 ,470 2 1,150 3 1 ,200 4 4 , 955 5 3 ,835 6 4 ,630 7 1,730 Census Tract 993. 03 Oldtown 8 6,740 9 4 , 960 10 12 , 800 11 8 ,900 Average Cost $ 4 ,850 There is no significance to differences in the cost figures between Downtown and Oldtown, since too few cases were selected to have statistical significance of that nature. More critically, the Oldtown cases were selected after the Downtown analysis, and more houses in the moderate to major categories were intentionally chosen to balance the sample of houses reviewed in the Downtown section. The following eleven pages describe the rehabilitation scope and costs for each of the properties analyzed. - 13 - TABLE XI-A REHABILITATION SUMMARY Date 6/13/77 Street 2nd Street Property No. 1 Census Tract 993 . 02 City Huntington Beach. GENERAL DESCRIPTION: 50 year old wood frame (board and batt construction) ; dwelling interior and exterior in very good condition;. plumbing fixtures, wiring recently repaired. SITE CONDITION: Good A. FOUNDATION,UNDERFLOOR: Dwelling has no foundation. Install new foundation, repair floor and lower framing of structure $ 1 ,500 B._ DRIVEWAY, WALKS , PORCHES : C. GARAGE/CARPORTS : D. ROOFING: E. SHEET METAL/GUTTERS/DOWNSPOUTS: F. PAINTING-EXTERIOR: G. DOORS: H . WINDOWS AND SCREENS: $ 75 I . INTERIOR REPAIR AND PAINTING: J. CABINETS-WARDROBE-COUNTER TOPS: K. HARDWARE: L. FLOORING: M. CLEANING: N. MISCELLANEOUS: Termite Report $ 400 0. PLUMBING: P . ELECTRICAL: Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Sub total : $ 1, 975 Overhead & Profit: $ 495 GRAND TOTAL: $ 2 ,470 14 - TABLE XI-B REHABILITATION SUMMARY Date 6/13/77 Street 7th Street Property No. 2 Census Tract993 . 02 City Huntington Beach GENERAL DESCRIPTION: 45 year old wood frame, wood siding dwelling - rental. Well maintained. SITE CONDITION: Excellent A. FOUNDATION,UNDERFLOOR: Acceptable B. DRIVEWAY, WALKS , PORCHES : Acceptable C. GARAGE/CARPORTS : D. ROOFING: $ 400 E. SHEET METAL/GUTTERS/DOWNSPOUTS: $ 50 F. PAINTING-EXTERIOR: $ 400 G. DOORS: H . WINDOWS AND SCREENS: I . INTERIOR REPAIR AND PAINTING: J. CABINETS-WARDROBE-COUNTER TOPS : K. HARDWARE: L. FLOORING: M. CLEANING: N. MISCELLANEOUS: 0. PLUMBING: P . ELECTRICAL: Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Sub total : $ 850 Overhead & Profit: $ 200 GRAND TOTAL: $ 1,150 15 - TABLE XI-C REHABILITATION SUMMARY Date 6/13/77 Street 7th Street Property No. 3 Census Tract 993 . 02 City Huntington Beach GENERAL DESCRIPTION: Approximately 45 year old wood frame, wood siding dwelling. Well maintained. Excellent condition. anterior kitchen, bath recently remodeled. SITE CONDITION: A. FOUNDATION,UNDERFLOOR: B. DRIVEWAY, WALKS , PORCHES : Front porch in need of replacement. $ 500 C. GARAGE/CARPORTS : D. ROOFING: E. SHEET METAL/GUTTERS/DOWNSPOUTS: F. PAINTING-EXTERIOR: $ 450 G. DOORS: 11 . WINDOWS AND SCREENS : I . INTERIOR REPAIR AND PAINTING: J. CABINETS-WARDROBE-COUNTER TOPS: K. HARDWARE: L. FLOORING: M. CLEANING: N. MISCELLANEOUSc 0. PLUM-BING: P . ELECTRICAL: Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS: Sub total : $ 950 Overhead & Profit: $ 250 GRAND TOTAL: $ 1 , 200 16 - TABLE XI-D REHABILITATION SUMMARY Date 6/14/77 Street 8th Street Property No. 4 Census Tract993 . 02 City Huntinaton Beach GENERAL DESCRIPTION: 50 yearl old dwelling. Structurally sound. SITE CONDITION: Good A.. FOUNDATION,UNDERFLOOR: Brick foundation (see termite) Raised wood floor. B. DRIVEWAY, WALKS , PORCHES : Acceptable walks. Wood porch. Remodel and replace porch with concrete $ 750 C. GARAGE/CARPORTS : D. ROOFING: E. SHEET METAL/GUTTERS/DOWNSPOUTS: $ 50 F. PAINTING-EXTERIOR: $ 750 G. DOORS: $ 210 H. WINDOWS AND SCREENS: $ 150 I . INTERIOR REPAIR AND PAINTING: $ 350 j. CABINETS-WARDROBE-COUNTER TOPS : $ 100 K. HARDWARE: $ 40 L. FLOORING: $ 150 M. CLEANING: N. MISCELLANEOUS: $ 500 0. PLUMBING: $ 365 P . ELECTRICAL: $ 550 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Sub total : $ _ 3 , 965 Overhead & Profit: $ 990 GRAND TOTAL: $ 4 , 955 17 - TABLE XI-E REHABILITATION SUMMARY Date 6/14/77 Street 9t-h Property No. 5 Census Tract 993. 02 City Huntington Beach GENERAL DESCRIPTION: 30-35 year old dwelling; wood frame, wood siding. Fair maintenance. SITE CONDITION: Good A. FOUNDATION,UNDERFLOOR: Raised foundation, acceptable. B. DRIVEWAY, WALKS , PORCHES : Front and rear porches to be replaced with concrete. Rear roof supports t10 bed $ 11000 C. GARAGE/CARPORTS : rep ace . $ 175. D. ROOFING: $ 150 E. SHEET METAL/GUTTERS/DOWNSPOUTS: F. PAINTING-EXTERIOR: $ 600 G. DOORS: $ 180 H . WINDOWS AND SCREENS: $ 50 I . INTERIOR REPAIR AND PAINTING: $ 150 J. CABINETS-WARDROBE-COUNTER TOPS : K. HARDWARE: L. FLOORING: $ 1_25 M. CLEANING: N. MISCELLANEOUS: . $ 100 0. PLUMBING: $ 135 P . ELECTRICAL: $ 400 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Sub total : $ 3 , 065 Overhead & Profit: $ 765 GRAND TOTAL: $ 3 ,835 18 - TABLE XI-F REHABILITATION SUMMARY Date 6/13/77 Street . 12th Property No. 6 Census Tract 993. 02 City Huntington Beach GENERAL DESCRIPTION: 35 year old wood frame, wood siding dwelling in general state of disrepair. SITE CONDITION: Unkept A. FOUNDATION,UNDERFLOOR: Acceptable; possible some termite damage. B. DRIVEWAY, WALKS , PORCHES : Wood front porch. Remove and replace with concrete. $ 300 C. GARAGE/CARPORTS : D. ROOFING: $ 900 E. SHEET METAL/GUTTERS/DOWNSPOUTS: $ 100 F. PAINTING-EXTERIOR: $ 650 G. DOORS: $ 180 H . WINDOWS AND SCREENS: $ 200 I . INTERIOR REPAIR AND PAINTING: $ 300 J. CABINETS-WARDROBE-COUNTER TOPS : $ 250 K. HARDWARE: $ 20 L. FLOORING: $ 150 M. CLEANING: N. MISCELLANEOUS: Termite report $ 350 O. PLUMBING• Kitchen, bathroom, laundry area $ 230 P . ELECTRICAL: $ 75 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS: Sub total : $ 3 ,705 Overhead & Profit: $ 925 GRAND TOTAL: $ 4 , 630 19 - TABLE XI-G REHABILITATION SUMMARY Date 6/13/77 Street 12th Property No. 7 Census Tract 993. 02City Huntington Beach GENERAL DESCRIPTION: 35 year old wood frame dwelling; structurally sound, lack of maintenance. SITE CONDITION: Debris, misc. junk. A. FOUNDATION,UNDERFLOOR: Acceptable B. DRIVEWAY, WALKS , PORCHES : O.K. C. GARAGE/CARPORTS : D. ROOFING: $ 200 E. SHEET METAL./GUTTERS/DOWNSPOUTS: $ 50 F. PAINTING-EXTERIOR: $ 450 G. DOORS : H . WINDOWS AND SCREENS: $ 100 I . INTERIOR REPAIR AND PAINTING: $ 250 J. CABINETS-WARDROBE-COUNTER TOPS : $ 50 K. HARDWARE: $ 180 L. FLOORING: M. CLEANING: N. MISCELLANEOUS: Termite Report $ 250 0. PLUMBING: $ 310 P . ELECTRICAL: $ 75 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS: I Sub total : $ 1, 380 Overhead & Profit: $ 350 GRAND TOTAL: $ 1,730 20 - TABLE XI-H REHABILITATION SUMMARY Date . 6/13/77 Street Alabama Property No. 8 Census Tract 993 . 03 City Huntington Beach GENERAL DESCRIPTION: 35-40 year old wood frame, wood siding dwelling in general state of disrepair. SITE CONDITION: Fair A. FOUNDATION,UNDERFLOOR: Acceptable B. DRIVEWAY, WALKS , PORCHES : New driveway needed $ 1, 000 C. GARAGE/CARPORTS : $ 175 D. ROOFING: $ 750 E. SHEET METAL/GUTTERS/DOWNSPOUTS: $ 50 F. PAINTING-EXTERIOR: $ 650 G. DOORS: $ 180 H. WINDOWS AND SCREENS: $ 150 I . INTERIOR REPAIR AND PAINTING: $ 300 J. CABINETS-WARDROBE-COUNTER TOPS: K. HARDWARE: L. FLOORING: $ 150 M. CLEANING: N. MISCELLANEOUS: Termite Report $ 500 0. PLUMBING: $ 585 P . ELECTRICAL: $ 400 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Remove front porch floor and siding. Replace with concrete, replace supports, repair roof after. $ 500 Sub total : $ 5,390 Overhead & Profit: $ 1 ,350 GRAND TOTAL: $ 6 ,740 21 - TABLE XI-I REHABILITATION SUMMARY Date 6/14/77 Street Huntington Property No. 9 Census Tract993 . 03 City Huntington Beach GENERAL DESCRIPTION: General state of disrepair SITE CONDITION: Trash, debris $ 200 A. FOUNDATION,UNDERFLOOR: Acceptable B. DRIVEWAY, WALKS , PORCHES : Acceptable C. GARAGE/CARPORTS : $ 175 D. ROOFING: $ 100 E. SHEET METAL/GUTTERS/DOWNSPOUTS: $ 50 F. PAINTING-EXTERIOR: $ 650 G. DOORS: $ 200 H. WINDOWS AND SCREENS: $ 300 I . INTERIOR REPAIR AND PAINTING: $ 350 J. CABINETS-WARDROBE-COUNTER TOPS: $ 50 K. HARDWARE: $ 50 L. FLOORING: $ 800 M. CLEANING• N. MISCELLANEOUS: $ 150 0. PLUMBING: $ 445 P . ELECTRICAL: $ 450 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Sub total : $ 3 , 970 Overhead & Profit: $ 990 GRAND TOTAL: $ 4 , 960 22 - TABLE XI-J REHABILITATION SUMMARY Date 6/14/77 Street California Property No. 10 Census Tract993 . 03 City Huntington Beach GENERAL DESCRIPTION: General delapidation, structure approximately 60 years old, board and batt construc- tion. -(No interior inspection. - Estimated from general age and exterior condition. SITE CONDITION: Poor A. FOUNDATION,UNDERFLOOR: Inadequate; replace. $ 1,500 B. DRIVEWAY, WALKS , PORCHES : Wood - deteriorated; replace with concrete $ 300 C. GARAGE/CARPORTS : D. ROOFING: $ 800 E. SHEET METAL/GUTTERS/DOWNSPOUTS: F. PAINTING-EXTERIOR: $ 700 G. DOORS: $ 250 H. WINDOWS AND SCREENS: $ 250 I . INTERIOR REPAIR AND PAINTING: $ 1 ,400 J. CABINETS-WARDROBE-COUNTER TOPS: $ 200 K. HARDWARE: L. FLOORING: $ 800 M. CLEANING: N. MISCELLANEOUS: Termite Report $ 1 , 000 0. PLUMBING: $ 2 ,520 P . ELECTRICAL: $ 550 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Sub total : $ 10,200 Overhead & Profit: $ 2 ,600 GRAND TOTAL: $ 12 ,800 23 - TABLE XI-K REHABILITATION SUMMARY Date 6/14/77 Street (7-n—za nvQ Property No. 1 Census Tract 993 . 03 City Huntington Beach GENERAL DESCRIPTION: 60 year old wood frame (board and batt walls) dwelling. SITE CONDITION: Fair A. FOUNDATION,UNDERFLOOR: Not acceptable. Replace. (See Termite) B. DRIVEWAY, WALKS , PORCHES : Wood porch-replace $ 250 C. GARAGE/CARPORTS : D. ROOFING: $ 800 E. SHEET METAL/GUTTERS/DOWNSPOUTS: F. PAINTING-EXTERIOR: $ 450 G. DOORS: $ 300 H. WINDOWS AND SCREENS: $ 300 I . INTERIOR REPAIR AND PAINTING: $ 600 J. CABINETS-WARDROBE-COUNTER TOPS: $ 50 K. HARDWARE: L. FLOORING: $ 250 M. CLEANING: N. MISCELLANEOUS: $ 1,500 0. PLUMBING: . $ 2 ,135 P . ' ELECTRICAL: $ 500 Q. OTHER MISCELLANEOUS WORK ITEMIZED IN DETAIL SHEETS : Sub total : $ 7 ,135 Overhead & Profit: $ 1,765 GRAND TOTAL: $ 8 , 900- 24 - C. Resident Interviews The following pages provide summaries of the interviews conducted during the rehabilitation analysis. In many instances, information is sketchy or incomplete due to the general unwillingness of the residents to provide personal data to the interviewers on short notice. During the remaining course of the project an attempt will be made to collect more substantial social and economic data during resident interviews, including an update of several interviews already conducted. 25 - Resident Interview Summary Property No. 1 - 993 . 02 - 2nd Street Male head of household age 95 years, family members - wife, age 92, and daughter, age 74 . All unemployed, living on social security checks and income from "other income property" . The residents of this household live at the house three to four months of the year. The house was built in 1920, has two bedrooms, was well kept inside, and was in the process of getting a new roof. No further information was provided. Property No. 2 - 993 . 02 - 7th Street Single family rental unit owned by the residents of Property No. 3 , next door. Landlord permitted entry for rehab analysis but gave no social or economic data on tenant. Property No. 3 - 993. 02 - 7th Street Elderly husband and wife, ages 65 for male, 62 for female. Husband about to retire after being employed for 30 years by the same employee., but gave no information on his occupa- tion. Wife was not employed. The couple have lived in their house for 33 years, which was built in 1933 and purchased for $3 ,700 . The house is wood frame with two bedrooms and one bath. There is no trust deed on the house, and real estate taxes are about $700 - $800 per year. No further information was provided. - 26 - Property No. 4 - 993 . 02 - 8th St. Single female resident, age 81. Income derived from social' security checks and some help from children. The house has two bedrooms and one bath and has no trust deed. No other information was provided. Property ,No. 5 - 993. 02 - 9th St. The residents were a family of four with a male head of household, age 31; wife, age 32; daughter, age 9; and son, age 7 . The husband is an employed veteran earning $12, 000 per year. The family have been renting the house for two years and are now paying $235 per month; however, the rent is being raised to $350, or 35% of the family' s gross income. Since the rent will be beyond the family' s ability to pay, they are looking to move to less expensive quarters. The home they currently occupy has two bedrooms and one bath, and costs $42 per month for all utilities. Property No. 6 - 993 . 02 - 12th St. The residents are a family of four with a male household head, age 57; wife, age 53; son, age 13 ; and daughter, age 9. Both husband and wife are employed with the husband ' s reported income at $24 , 000. (The consultants have serious doubts as to the validity of this income, based on the general appearance of the family and house. ) The husband has been employed for ten years and the family has been renting this home for ten years. The house was built in 1940 and contains three bedrooms and one bath. No further information was provided. - 27 - Property No. 7 - 993. 02 - 12th St. The residents are a husband and wife, age 65 and 62 respectively. Income is derived from social security checks and savings account interest. There is no trust deed on the house, which was built in the 1940 ' s. The residents have no outstanding installment loans but gave no other financial information. Property No. 8 - 993 . 03 - Alabama Female head of household, age 44 , with one daughter, age 17 . The mother is unemployed and lives off social security and pension. The house was built in 1940 and has three bedrooms and one bath, plus an add on of one bedroom and one bath. There is no trust deed on the house. No other information was provided. Property No. 9 - 993 . 03 - Huntington St. The household consisted of a family of at least three members, including husband, wife and daughter, ages estimated at mid 50 ' s for the husband and wife, and mid 20 ' s for the daughter. The residents suspected the interviewers were housing inspectors of some kind and became very defensive over the litter strewn condi- tion of their property. No further social and economic information was obtainable. 28 - Property No. 10 - 993 . 03 - California St. The residents were at least three unrelated adults residing in a single family rental unit. No further information was available. Property No. 11 - 993 . 03 - Geneva The residents were a family with a female household head and either two or six children. (Neighbors claimed the family consisted of two children; the mother claimed she had six. ) The household head was apparently unemployed and, due to an illness in the family, could not provide further social or economic data information, but permitted access to the premises for rehab cost estimate. The residence was a single family rental unit. - 29 - III. NEIGHBORHOOD ANALYSIS The neighborhood analysis developed for the Community Analysis Project consists of three major components : an analysis and description of the physical characteristics of each area surveyed, including public works needs , physical facilities available and the general appearance and conditions of the area; 'social characteristics, including the social makeup of the population of each area, and the social services available either within the area or to area residents; and the economic characteristics of each area which primarily consist of housing resale data and types of financing utilized. A. Physical Characteristics 1. Downtown - 993. 02 The Downtown area of Huntington Beach has probably the greatest potential for redevelopment and rehabilitation of any of the areas surveyed. While it contains the largest number of sub- standard units of any of the census tracts in the city, its proximity to the ocean and beaches and its overall character and high degree of identity as a well defined community provide important strengths upon which a well developed community can be built. There are three serious negative physical qualities about the area, however, which merit attention if the area is to realize its fullest potential. As described in the May llth report, the Downtown area contains a large number of oil properties with active oil pumps and related equipment. Oil properties 30 - exist side by side with older homes, new developments, commercial properties and recreational areas, such as the beach front in the northern half of the census tract. Judging from the active new development activity and the very low vacancy rate in the area, the existance of oil properties has apparently not deterred the general .market from placing a high demand on properties in the area. However, the general unsightly quality of the oil properties detracts from the area' s overall appearance and probably caused a reduction in property values for the adjacent properties. Public works improvements are needed in the western half of the census tract in the vicinity of much of the new development activity. In particular, the roads and side- walks in the areas around Acacia, north of 17th Street to Golden West; Pecan, between 17th and Golden West, 19th St. to Pecan; 20th St. , between Orange and Olive; 21st St. below Olive; and 22nd St. below Olive. On these streets, the sidewalks, curbs and street surfaces are generally broken and pot holed due to the heavy construc- tion equipment that moves about regularly in the area. The third serious problem confronting the Downtown area involves inadequate flooding and drainage during periods of heavy rain. Since much of the Downtown area is below sea level, large pools of water collect on streets, 31 - sidewalks and at intersections throughout much of the area. Since the City Public Works Department is well aware of this problem, no further elaboration is needed. The final negative note involves the conditon of many of the alleys in the area east of 15th Street. The alleys often have broken payment, deteriorating walls or garages , and are often littered or strewn with trash. The recreational facilities within the area or accessable to area residents is generally excellent. The southern boundary of the census tract consists bf the Pacific Ocean and the public beach and the municipal pier, offering excellent recreational amenities. Lake Park, just to the north of the census tract, is an attractive park featuring -, open and wooded areas and playground equipment. There is a Little League baseball field on 18th Street and Pecan which appears to be in excellent condition, and the City 'Recreational Center on Palm completes an excellent complement of recreational facilities. 2. Oldtown - 993. 03 The most serious negative physical features of the Oldtown area are the railroad tracks that run along Lake Street, and the generally unsightly industrial area around Alabama and Nashville. One property in particular that could use improvement was the City Yard. The Yard and the nearby - 32 - industrial buildings will reduce the effectiveness of efforts to rehabilitate housing in the vicinity because they create an appearance of drab and deterioration. The railroad tracks create a similar effect. In its neighborhood preservation efforts, the city should consider requiring or providing improvement of both areas through the liberal use of paint and landscaping. In addition, the alleys around California, Memphis , and Detroit, and behind Huntington and Atlanta need improvement and add to the area' s aging quality. Aside from these factors, the Oldtown area has generally good streets, sidewalks and lighting. Accessibility to the beach and to Lake Park provide the area with more than adequate recreational facitlities. k 3. Oakview - 994. 02 The Oakview area is in need of lighting in the older sections. Except for the major streets and intersections, the streets with older single-family houses are generally without street lights. Sidewalks and curbs are needed on major portions of Cypress, Sycamore, Ash, Elm, Fir, Ronald, Newman, Liberty, and Speer Streets. Several of these streets could also benefit from - 33 - resurfacing or regrading to prevent the collection of water and mud during rainy spells. An unsightly industrial area is located on Crabb Street, and auto body shops and auto salvage yards along Cain Street are mixed in with deteriorating houses. The Koledo Lane apartments give a generally messy appearance and the Oceanview School District complex on Sycamore could use a coat of fresh paint to eliminate its generally drab appearance. A new industrial park is under development on Slater near the railroad tracks and Gothard which will, hopefully, provide jobs for some of the residents in the surrounding areas. 1 Several churches are worth noting in the area as possible focal points for community organization efforts for neighbor- hood preservation. A Baptist Church is on Warner and Gothard, and another church is located on Nichols and Warner. 4. Bushard - 992. 15 No significant public works problems or negative physical characteristics were noted in the Bushard area. 5. Fringe Areas - 994 . 01, 994 . 03 , 992. 12 , 992.13 The pockets of deterioration in all four census tracts - 34 - shared several common negative characteristics that are worth noting. Almost all the driveways in these sections are in poor condition indicating a probable combination of poor construction materials and inadequate maintenance. The houses often have sections of peeling paint, garage doors are frequently warped or broken and need to be scraped and painted, lawns and shrubbery are often over- grown, there are occassional broken screens or window panes, and there is the ever present phenomena of the small truck or recreation vehicle parked on the front lawn. The public works facilities of the areas are generally good, and there is little, if any, significant encroach- ment of commercial or industrial properties into the residential areas. The tables on the following three pages summarize the location and type of non-residential properties in Oldtown, Oakview, and Bushard. 35 - TABLE XII NON-RESIDENTIAL PROPERTY SUMMARY CENSUS TRACT 992. 03 OLDTOWN Under Commercial/ Vacant Parking Institu- Street Construct. Industrial Land Lot Oil tional Alabama 2 4 6 0 0 1 Huntington 1 6 5 0 2 0 California 0 0 2 0 0 0 Pac. Coast Hwy. 0 10 4 2 2 0 Florida 0 0 1 0 0 0 Indianapolis 0 1 4 0 0 1 Knoxville 1 1 2 0 0 0 Memphis 1 1 3 0 0 0 Frankfort 0 3 3 0 0 0 Geneva 0 0 1 0 0 0 Detroit 0 0 2 0 0 0 Baltimore 0 0 1 0 0 0 Delaware 0 0 1 0 0 0 Atlanta 0 0 4 0 1 0 Nashville 0 0 1 0 1 0 Oswego 0 0 1 0 0 0 Portland 0 0 1 0 0 0 Adams 0 1 2 0 1 0 Beach 0 4 3 0 2 0 TOTALS 5 31 47 2 9 2 36 - TABLE XIII NON-RESIDENTIAL PROPERTY SUMMARY CENSUS TRACT 994 . 02 OAKVIEW Under Commercial/ Vacant Parking Institu- Street Construct. Industrial Land Lot Oil tional Talbert 0 3 2 0 1 3 Bell 0 1 0 0 0 0 Gothard 0 13 5 0 1 3 Golden West 0 3 0 1 0 2 Warner 0 7 4 1 0 3 Beach 0 20 4 0 0 1 Ronald 1 0 2 0 0 0 Newman 0 0 3 0 0 0 Liberty 5 1 1 0 1 0 Speer 2 2 2 0 0 0 Jacklyn 0 1 0 0 0 0 Morgan 0 1 0 0 0 0 Slater 1 6 5 0 1 0 Nichols 0 2 3 1 0 2 Oak 0 0 2 0 0 1 Emerald 0 0 0 0 0 1 Cypress 2 0 3 0 0 0 Ash 1 0 0 0 0 0 .Elm 2 0 4 0 0 0 Keelson 0 0 1 0 0 0 TOTALS 14 60 41 3 4 16 - 37 - TABLE XIV NON-RESIDENTIAL PROPERTY SUMMARY CENSUS TRACT 992.15 BUSHARD Under Commercial/ Vacant Parking Institu- Street Construct. Industrial Land Lot Oil tional Cornwall 0 0 0 0 0 1 Latton 0 0 0 0 0 1 Woodlawn 0 0 0 0 0 1 Bushard 0 0 0 0 0 1 Pioneer 0 0 0 0 0 1 Adams 0 1 0 0 0 0 Magnolia 0 2 0 0 0 0 Yorktown 0 0 0 0 0 1 Brookhurst 0 2 0 0 0 0 TOTALS 0 5 0 0 0 6 38 - B. Social Services Available to Target Area Residents A variety of social services are available to low and moderate income residents of Huntington Beach, particularly to the elderly. On the following pages the current compila- tion of available social services is summarized. d - 39 - SERVICES FOR THE AGING The following data was obtained from the July 1976 Administration Of Aging Report. List of Agencies having resources to serve persons 60 and over in Huntington Beach: Agency Service AARP Social Advocacy Needs American National Red Cross Counseling Catholic Social Service Casework, funds , clothing Hearing Impaired Program Classes for deaf or hard of hearing Huntington Beach Public Library Shut-ins may call for books. Books mailed. Huntington Beach Recreation Social and recreation and Parks activities Huntington Beach Community Clinic Medical and counseling service which need no followup Huntington Beach Council on Aging Policy setting organization for seniors Huntington Beach Senior Recreational activities I & R Recreational Center Dial-A-Day Service Legal Aid Society of Orange County Legal assistance Meals on Wheels Home delivered meals Orange County Housing Authority Housing: I & R Regional Office Financial assistance Paramedics Emergency medical service Project TLC Nutrition, transportation, counseling Santiago Library System Outreach Educational St. Bonaventure Catholic Church Emergency assistance, transportation St. Simon & Jude Catholic Church Emergency assistance, transportation 40 - Additional Services Offered Huntington Beach Residents 1. Huntington Beach Employment and Training Center 2. Lamb Day Care Center - established by the Orange County Social Welfare Department for one parent families who are former, current, or potential welfare recipients. 3. The Hearing Impaired Program at Golden West College - which provides interpreters, notetakers and other educa- tional assistance to the deaf and severely hard of hearing. 4. The State Department of Vocational Rehabilitation and the Salvation Army - provide services to the disabled. Their services, however, are not exclusive to or offered directly in Huntington Beach. The Department of Voca- tional Rehabilitation, located in Santa Ana, serves the ` entire County on a referral basis, while the Salvation Army serves only the West Orange County area. 5. The Huntington Beach Free Clinic of Help Line Inc. - provides free medical services to disadvantaged local residents. 6. Existing Adult Educational Services Provided to Huntington Beach Residents-- include the Huntington Beach Union High School District Adult Education Program, and the vocational education program offered at Goldenwest and Orange Coast Community Colleges . 7 . Social Service Referral - directs disadvantaged persons to where they can obtain the help that they need. The principal provider of this type of service in the city is the L.Y.N.N. Center located on 129 6th Street. Along with the L.Y.N.N. Center, other social service agencies within Huntington Beach make social service referrals on a less formal basis. 41 - C. Economic Characteristics Economic data collected to date for the areas surveyed consists primarily of housing resale data and information on the types of financing utilized. Rental data collected was too sketchy to report at this time but will be included in the Addendum. The resale data indicates an active housing market, regardless of the normal deterents to such activity, such as housing age and the prevalence of deteriorating dwellings in several areas. Data supplied in the May llth report defined the average sales price for a single family dwelling in the Downtown area as $67 , 680 for the period from June 1976 to January 1977 . This compares with $59,836 for Oldtown, $52, 628 for Oakview, and $60,344 for Bushard. The apparent paradox in the existence of a relatively high level of deterioration with a relatively high resale value is explained by the hypothesis that much of the .Downtown property is being purchased for its redevelopment potential and a similar phenomena on a more moderate scale appears to be occurring in the Oldtown area as well because of its proximity to the beach. Summaries of residential resales for the Oldtown, Oakview and Bushard areas are provided on the following pages. 42 - TABLE XV RESIDENTIAL RESALES - JUNE 1976-JANUARY 1977 CENSUS TRACT 993 . 03 OLDTOWN # of Transactions Total $ Volume Average Sales Price 1 Family 14 837 ,700 59,836 2 Units 4 321,895 80,474 3 Units 6 673 ,500 112 ,250 4 Units 9 1,447 ,500 160,833 5 Units 1 130, 000 130, 000 7 Units 1 225, 000 225,000 8 Units 2 423 , 900 211, 950 23 Units 1 165, 000 165 , 000 Mobile Home 1 7 ,200 7 ,200 Lots 1 1 340, 000 340 ,000 2 1 44 ,500 44 ,500 Types of Financing Conventional 35 Cash 2 Assumed 1 TABLE XVI RESIDENTIAL RESALES - JUNE 1976-JANUARY 1977 CENSUS TRACT 994 . 02 OAKVIEW # of Transactions Total $ Volume Average Sales Price 1 Family 16 842, 050 52 ,628 2 Units 3 194 , 000 64 ,667 3 Units 3 237, 000 79 ,000 4 Units 19 1, 655, 600 87,137 6 Units 1 248 , 000 243 , 000 9 Units 1 52 , 000 52 , 000 Vacant Lands 1 81, 500 81,500 Types of Financing Conventional 37 Cash 3 Assumed 2 43 - TABLE XVII RESIDENTIAL RESALES - JUNE 1976-JANUARY 1977 CENSUS TRACT 992 . 15 BUSHARD # of Transactions Total $ Volume Average Sales Price 1 Family 47 2, 836,150 60, 344 Condominium 59 2,591,260 43, 920 Types of Financing Conventional 68 Assumed 13 FHA 11 VH 12 44 - APPENDIX Residential Summary Tables XVIII-XX Census Tracts 993. 03 , 394. 02, 992. 15 Mobile Home Summary Table XXI TABLE XIX RESIDENTIAL SUMMARY-CENSUS TRACT 994.02 STANDARD SUB-STANDARD JTREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL TALBERT 1-Family 2-4 Family 3 3 5 or more Total 3 3 BELL 1-Family 2-4 Family 56 56 16 16 5 or more Total 72 5Z 16 BARON 1-Family 2-4 Family 72 72 5 or more Total 72 72 GOTHARD 1-Family 2 2 1 1 5 7 2-4 Family 2 2 5 or more 2 9 otal 11 GOLDEN WEST 1-Family 5 5 2-4' Family 5-or more 5 Total 5 LASARO 1-Family 23 23 2-4 Family 5 or more Total 23 23 MASHIE 1-Family 9 9 2-4 Family 5 or more 9 Total 9 DUELLO 1-Family 8 8 2-4 Family 5 or more 8 Total 8 TABLE XIX (Copt°d. ) RESIDENTIAL SUMMARY-CENSUS TRACT 994•02 STANDARD SUB-STANDARD STREET OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL FORD 1-Family 10 10 4 4 2-4 Family 5 or more Total 14 10 4 CANNA CIRCLE 1-Family 9 9 6 6 2-4 Family 5 or more _ Total 15 LEE 1-Family 2 2 2 2 2-4 Family 5 or more Total 4 2 2 MULL 1-Family 6 6 2-4 Family or more .,otal 6 BETSY 1-Family 21 21 4 4 2-4 Family 5 -or more Total 25 21 4 WARNER 1-Family 1 1 1 4 5 2-4 Family 5 or more Total 6 1 5 BEACH 1-Family 4 1 6 _11 2-4 Family 5 or more Total 11 11 RONALD 1-Family 11 11 12 1 13 2-4 Family 60 60 5 or more 14 14 6 6 12 "'ntal 110 85 �5 TABLE XIX (Cont'd. ) RESIDENTIAL SUMMARY-CENSUS TRACT 994 . 0? . STANDARD SUB-STANDARD ,fREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL NEWMAN 1-Family 10 10 4 12 3 19 2-4 Family 32 32 6 5 2 13 5 or more Total 74 42 32 LIBERTY 1-Family 11 11 2 14 4 20 2-4 Family 24 24 5 or more 5 5 Total 60 4 0 20 JACKLYN 1-Family 2-4 Family 16 16 5 or more Total 16 16 LATER -Family g 8 1 1 2-4 Family 12 12 20 8 2 8 c or more ital 50 20 30 NICHOLS , . 1-Family 1 1 1 1 2-4 Family 5 -or more Total 2 1 OAK 1-Family 2 2 1 3 4 2=4 Family 52 52 2 2 . 5 or more Total 60 54 6 EMERALD 1-Family 2-4 Family 32 32 5 or more Total 32 32 FIR 1-Family 2-4 Family 24 24 5 or more Total 24 24 TABLE .XIX (Cont'd. ) RESIDENTIAL SUMMARY-CENSUS TRACT 994 . 02 STANDARD SUB-STANDARD .fREET/ OVER MINOR MODERATE MAJOR ' UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL KOLEDO 1-Family 2-4 Family 20 20 5 or more Total 20 20 QUEEN 1-Family 2-4 Family 4 4 54 54 5 or more 84 84 Total 142 88 54 BARTON- 1-Family 2-4 Family . 32 32 5 or more Total 32 32 MANDRELL 1-Family 274 Family 44 44 or more ital 44 44 CYPRESS 1-Family 3 3 6 1 7 2-4 Family 6 6 6 6 5 -or more Total 2 2 ' 9 13 ASH 1-Family 7 7 6 3 2 11 2-4 Family 18 . 18 16 16 5 or more Total 52 25 27 ELM 1-Family 5 5 3 4 1 8 2-4 Family 4 4 4 4 8 5 or more Total 25 9 16 KEELSON 1-Family 1 1 2-4 Family 32 32 56 56 5 or more Total 89 32 57 TABLE XIX (font°d. ) RESIDENTIAL SUMMARY-CENSUS TRACT 994 . 02 STANDARD SUB-STANDARD ..,REET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL CHRISTIN 1-Family 2-4 Family 28 28 5 or more Total 28 28 SPEER 1-Family 4 4 2 7 1 10 2-4 Family 5 or more Total 14 4 1-Family 2-4 Family 5 or more Total 1-Family 2-4 Family or more .otal 1-Family 2-4 Family 5 -or more Total 1-Family 2-4 Family 5 or more Total 1-Family 2-4 Family 5 or more Total 1-Family 2-4 Family 5 or more Total TABLE XX RESIDENTIAL SUMMARY-CENSUS TRACT 992.15 STANDARD SUB-STANDARD ,TREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL LORES 1-Family 22 22 2-4 Family 5 or more Total 22 22 REILEY 1-Family 16 16 2-4 Family 5 or more Total 16 16 SHEFIELD 1-Family 22 22 2-4 Family 5 or more Total 22 22 KINGSWOOD 1-Family 41 41 2-4 Family 5 or more otal 41 41 ARGYLE 1-Family 40 40 2-4 Family 5 -or more Total 40 40 INVERNESS 1-Family 23 23 2-4 Family 5 or more Total 23 23 CAMBRIDGE 1-Family 28 28 2-4 Family 5 or more Total 28 28 CLAREMONT 1-Family 60 60 2-4 Family 5 or more Total 60 60 TABLE XX (Cont'd. ) RESIDENTIAL SUMMARY-CENSUS TRACT 992 .15 STANDARD SUB-STANDARD ,TREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL COVENTRY 1-Family 44 44. 2-4 Family 5 or more Total 44. 44 KESWICK 1-Family 84 84 2-4 Family 5 or more Total 84 84 CORNWALL 1-Family 66 66 2-4 Family 5 or more . . Total 66 66 DEVONSHIRE 1-Family 42 42 2-4 Family 5 or more otal 42 42 VE.RMONT 1-Family 70 70 2-4 Family 5 -or more Total 70 70 LATTON 1-Family 16 16 2-4 Family 5 or more Total 16 16 KENSINGTON 1-Family 12 12 2-4 Family 5 or more Total 12 12 DURHAM 1-Family 28 28 2-4 Family 5 or more Total 28 28 TABLE XX (Cont'd. ) RESIDENTIAL SUMMARY-CENSUS TRACT 992 . 15 STANDARD SUB-STANDARD _,TREET/ OVER MINOR MODERATE MAJOR/ UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL SITCUP 1-Family 22 . 22 2-4 Family 5 or more Total 22 22 FREDERICK 1-Family 14 14 3 3 2-4 Family 5 or more Total 17 14 3 CONTINENTAL 1-Family 61 61 2-4 Family 5 or more Total 61 61 BOND 1-Family 19 19 2-4 Family or more otal 19 19 MOORE 1-Family 16 16 1 1 2-4 Family 5-or more Total 17 16 1 TELEHAN 1-Family 36 36 1 1 2-4 Family 5 or more Total 37 36 1 BUCKLEY 1-Family 12 12 2-4 Family 48 48 5 or more Total 60 60 BROMLEY 1-Family 2-4 Family 24 24 5 or more Total 24 24 TABLE XX (Cont°d. ) RESIDENTIAL SUMMARY-CENSUS TRACT 992 . 15 STANDARD SUB-STANDARD .jTREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL WARBURTON 1-Family 34 34 2-4 Family 5 or more Total 34 34 ELMSFORD 1-Family 6 6 2-4 Family 5 or more Total 6 6 RACKLAND 1-Family 6 6 2-4 Family 5 or more Total 6 6 DELAF,JELD 1-Fami y 9 9 2-4 Family or more .otal 9 9 1�FamilyN 30 30 3 3 2-4 Family 5 -or more Total 33 30 3 BROOKLINE 1-Family 11 11 2-4 Family 5 or more Total 11 11 IN.SBRUCK 1-Family 31 31 3 3 2-4 Family 5 or more Total 34 31 3 TIBBETT 1-Family 8 8 2-4 Family 5 or more Total 8 8 TABLE XX (Cont'd. ) RESIDENTIAL SUMMARY-CENSUS TRACT 992 .15 STANDARD SUB-STANDARD TREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL BUSHARD 1-Family 47 47 2-4 Family 5 or more Total 47 47 HARSDALE 1-Family 12 12 2-4 Family 5 or more Total 12 12 TUCKAHOE 1-Family 8 8 3 3 2-4 Family 5 or more Total 11 8 3 POTOMIC 1-Family 38 38 2-4 Family 5 or more otal 38 38 GROTON 1-Family 8 8 2-4 Family 5 -or more Total 8 8 CHESEPEAKE 1-Family 35 35 2 2 2-4 Family 5 or more Total 37 35 2 CAPE COD 1-Family 18 18 2-4 Family 5 or,more Total 18 18 PROVIDENCE LANE 1-Family 39 39 3 3 2-4 Family 5 or more Total 42 39 3 TABLE XX (Cont°d. ) RESIDENTIAL SUMMARY-CENSUS TRACT 992 . 15 STANDARD SUB-STANDARD TREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL GLANCESTER 1-Family 38 38 4 4 2-4 Family 5 or more Total 42 38 4 PORTSMOUTH 1-Family 28 28 4 4 2-4 Family 5 or more Total 32 28 4 NANTUCKET 1-Family 26 26 4 4 2-4 Family 5 or more Total 30 26 4 HYANNISPORT 1-Family 28 28 4 4 2-4 Family 5 or more otal 32 28 4 VERONICA 1-Family 26 26 2-4 Family 5 -or more Total 26 26 WATERBURY 1-Family 29 29 2-4 Family 5 or more Total 29 29 GREENWICH 1-Family 28 28 4 4 2-4 Family 5 or more Total 32 28 4 WARFIELD 1-Family 16 16 2 2 2-4 Family 5 or more Total 18 16 2 TABLE XX (Cont'd. ) RESIDENTIAL SUMMARY-CENSUS TRACT 992 . 15 STANDARD SUB-STANDARD ,TREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NE14 TOTAL REHAB. REHAB. DEMOLITION TOTAL RUMSEY 1-Family 7 7 2-4 Family 5 or more Total 7 7 ELVA 1-Family 7 7 2-4 Family 5 or more Total 7. 7 RODERICK 1-Family 24 24 2-4 Family 5 or more Total 24 24 SANDERSON 1-Family 14 14 2-4 Family 5 or more otal 14 14 OCCIDENTAL. 1-Family 22 22 2-4' Family 5-or more Total 22 22 LOTUS 1-Family 16 16 1 1 2-4 Family 5 or more Total 17 16 1 PIONEER 1-Family 14 14 3 3 2-4 Family 5 or more Total 17 14 3 MADELINE 1-Family 26 26 2-4 Family 5 or more Total 26 26 TABLE XX (Cont'd. ) RESIDENTIAL SUMMARY-CENSUS TRACT 992 .15 STANDARD. SUB-STANDARD ,TREET/ OVER MINOR MODERATE MAJOR UNITS 5 YEARS NEW TOTAL REHAB. REHAB. DEMOLITION TOTAL ADAMS 1-Family 58 58 2-4 Family 5 or more Total 58 58 GETTYSBURG 1-Family 29 29 5 5 2-4 Family 5 or more Total 34 29 5 CRAWFORD 1-Family 13 13 1 1 2-4 Family 5 or more Total 14 13 1 PETSWOOD 1-Family 13 13 2-4 Family 48 48 or more otal 61 61 GARRETT 1-Family 19 19 2-4 Family 5 -or more Total 19 19 CONSTITUTION 1-Family 19 19 2-4 Family 5 or more Total 19 19 1-Family 2-4 Family 5 or more Total 1-Family 2-4 Family 5 or more Total TABLE XXI MOBILE HOME SUMMARY Note: All Mobile Homes surveyed were in standard condition Census Tract Street No. of Units 993 . 03 Alabama 453 Pacific Coast Highway 308 Adams 29 992.15 None 994. 02 Gothard 81 Slater 128 993. 02 None NOVEMBER 22, 1978 PROJECT NO: A78-2657 FOUNDATION INVESTIGATION SENIOR CITIZEN HOUSING DEVELOPMENT OLD CIVIC CENTER SITE MAIN STREET, BETWEEN 5th AND 6th STREET HUNTINGTON BEACH, CALIFORNIA FOR CITY OF HUNTINGTON BEACH Department of Planning and Environmental Resources Po Oo Box 190 Huntington Beach, California 92648 00\y AWN SOILS ENGINEERING,INC. U�P 3310 AIRPORT WAY - P.O. BOX 20016-LING BEACH, CALIF. 94801 - PRONE 213/4?_6-7990 Ca 2021-C THIRD STREET - RIVERSIDE, CA6.Btr. 98607 - PHONE714/684-7274 P SOILS ENGINEERING INC. Consulting Foundation Engintllrt November 22, 1978 Project No: A78-2657 City of Huntington Bear-h Department of Planning and Environmental Resources P. O. Box 190 Huntington Beach, California 92648 Attention: Mr. Stephen V. Kohler Senior Community Development Specialist Reference: Senior Citizen Housing Development Old Civic Center Site Main Street, between 5th and 6th Street Huntington Beach, California Dear Mr. Kohler: Presented herewith is our Report of Preliminary Foundation Investigation conducted on the site of the Senior Citizen Housing Development to be located at the above referenced site. The investigation was planned in accordance with the plans and information furnished to us by your office. It is understood that the proposed structures will mainly consist of 1 to 3 story wood frame construction. Maximum column and wall loads of 80 kips and 2.5 kips per lineal foot, respectively, have been assumed and utilized in our calculations. Prudent evaluation of site conditions has been made with regard to the structural aspects of the proposed development. Respectfully submitted, ASSOCIATED SOILS ENGINEERING, INC. iR. E. d btL Richard L. Manning, Jr. . Ahmad Project Engineer #16621 RLM:sda cc: 5 SCOPE The purpose of this investigation was to determloe the surface and subsurface soil conditions on the site and to obtain information on which to base recommendations for site development and for designing adequate foundations for the proposed Sensor Citizens Housing Development. The results of the field investigation and laboratory study, upon which our _ recommendations are based, are contained in the Appendix to this report. The recommendations contained in the report reflect our best estimate of soil conditions at the time of drilling only, and based upon information obtained from the limited number of test borings performed. It is not to be construed as a warranty of the condition of the soil in other areas or at other depths. Should any unusual conditions become apparent during grading or foundation construction, this office should be contacted for instructions prior to continuation of the work. The owner or his representative should make sure that the information and recommendations contained in this report are called to the attention of the project architect and engineers and incorporated into the plans, and that the necessary steps are taken to confirm that the contractors carry out such recommendations in the field. This report is subject to review by the controlling authorities for the project. This office should be notified should any of the following, pertaining to final site development occur. 1) Final plans for site development indicate utilization of areas not originally proposed to receive future structures. 2) Structural loading conditions vary from those utilized for evaluation and preparation of this report. 3) The site is not developed within 12 months following the date of this report. 4) Change of ownership of property occurs. Should any of the above occur, this office should be notified and provided with finalized plans of site development. Provided information would be reviewed and necessary recommendations for additional work and or updating of the report provided. Any charges for such review and necessary recommendations would be at the prevailing rate at the time of performing review work. �a �P o©r' A78-2657 Page 2 n P :;1L9 ENGINEERING,t vSC. SITE LOCATION AND CONDITIONS 1• LOCATION The site is located on the property of the old Civic Center on Main Street, between 5th and 6th Street, in Huntington Beach, California. The following information pertaining to site conditions was obtained during the course of performing field work for this project. 2. BOUNDARY CONDITIONS The property site is bound on the north by Main Street, and on the south by Orange Street. The site is bound on the east and west by 5th Street and 6th Street, respectively. 3. SURFACE CONDITIONS The area of investigation has a generally uniform level grade. Numerous buildings are presently situated on the site (refer to Plot Plan, Plate "All) and visually appear to be in good condition. An asphaltic paved street (Pecan Avenue) was noted running across the site in a direction parallel to Orange Avenue. Several paved parking lots were also noted on the site. In general, asphaltic pavements visually appeared to be in fair to good condition. The balance.of the site is covered by lawn, landscaped plants, and numerous trees (mostly large palm trees). 4. SUBSURFACE EXPLORATION Subsurface exploration disclosed no fill soils on the site at test boring locations. Surface natural soils are classified as silty and clayey sands, sandy silts and silty clays, with deeper seated natural soils classified as sands. �o - �oo • A78-2657 Page 3 m P SOILS ENGINEERING,INC. SITE LOCATION AND CONDITIONS -continued 5. GROUNDWATER AND CAVING Groundwater was encountered at a depth of 35 feet below existing grade, as determined in test boring no. 1. Measurements taken in test boring nos. 3, 4, and 5 were to the level of driller's mud slurry only. The slurry was utilized to minimize any'potential hole closure during drilling. -The level of driller's mud slurry continued to fall-during the period of monitoring and therefore did not reflect depth to groundwater table. However, the level of driller's mud slurry did stabilize' at a depth of 34 feet — below existing grade, potentially indicating the presence of a water table. 6. UTILITIES No overhead or underground utilities were encountered during the performance of field work for this project. However, overhead power lines were noted servicing buildings on the northern 1/2 of the site, and underground utility lines are probable. It is understood an oil production line may run through the site. 7. GENERAL A detailed description of soils encountered and conditions experienced during the performance of subsurface exploration is shown on the appended boring logs. STRUCTURAL CONDITIONS The following preliminary structural information is understood to apply for this project (as provided via phone conversations with Steve Kohler) and was considered in our evaluation. 1. It is understood that the site will be used for residential development consisting of 1 to 3 story wood frame construction. Gov ' A78-2657 Page 4 0 P SOILS ENGINEERING,tNC. STRUCTURAL CONDITIONS - continued I 2. It.is understood that slab on grade construction will be utilized. 3. It is understood that several of these structures may have a subsurface garage. RECOMMENDATIONS 1. GENERAL _w Based on a review of site conditions disclosed. during the performance of field work, and evaluation of available laboratory test data, the following — recommendations are provided. 2. SITE PREPARATION Prior to grading, the following items should be performed. 2-1 Organic Growth: 2-1.1 Trees: Trees which lie in areas of future construction must be removed. Such removal must include rootballs and any attendant root systems. 2-1.2 .Surface Vegetation: Grass turf should be stripped and disposed of off site. Stripping should penetrate three to six inches into surface soils. Any soil sufficiently contaminated with organic matter (such as root systems or strippings mixed into the soils) so as to prevent proper compaction shall be disposed of off site or set aside for future use in landscape areas. i r o l K4� oov A78-2657 Page 5 BOILS ENGINEERING,iNO. C' RECOMMENDATIONS - continued 2. SITE PREPARATION - continued 2-2 Existing Structures: 2-2.1 Demolition: Slabs on grade and foundation systems from demolished structures should be completely removed before grading operations commence. 2-2.2 Oversize Material: No concrete from demolished structures, structure foundations, or encasing may be used in compacted fill without the approval of the foundation engineers. Approval would be dependent upon feasibility of reducing concrete pieces to manageable sizes (six inch maximum), and feasibility of placing such oversized material at a minimum of two feet below elevation of future tooting bottoms. 2-3 Existing Asphaltic Concrete Pavement: Any existing streets and paved parking areas designated for removal shall be stripped from the site and associated concrete curbs and walks completely removed. Such;removed asphalt paving and concrete fragments should be disposed of off site unless it can be reduced to manageable sizes specified in section 2-2.2 above. Reuse would be subject to the above referenced section. 2-4 Utilities: Any underground utilities should be cut-off a minimum of 4 feet beyond the edge of future buildings. As an alternate, deep hollow lines may be left in place provided they are filled with concrete. No filled line should be permitted closer than 2 feet from the bottom of future footings. P god ' A78-2657 Page 6 ` P SOILS ENGINEERING,INC. 1 RECOMMENDATIONS - continued 2• SITE PREPARATION - continued 2-4 Utilities: - continued The ends of cut-off hollow lines should be plugged -a minimum of 5 feet with concrete exhibiting minimum shrinkage characteristics' to prevent water migrating to or from hollow. lines. In addition, capping of lines may be.required should the plug be subject to any line pressures. 2-5 Abandoned Wells: The condition of any previously abandoned wells if encountered should be researched to ensure that proper cut-off depths, and plugging and capping operations were performed. 2-6 Oil Contaminated Soils: Should any sumps or oil contaminated soils be encountered, it would be necessary to remove soils sufficiently contaminated with oil to prevent _ proper compaction to full depth. Contaminated soils should be disposed of off site. 3. GRADING After completion of the above preparatory items, grading may commence. 3-1 Slabs on Grade: . . Natural soils in areas of future slab on grade construction should be scarified 12 inches and recompacted to previously specified percentages and moisture contents prior to replacing any removed old fill. The above specified scarification and recompaction of site surface soils would also be required prior to placement of any fill if needed to achieve subgrade elevation. �o ov'P A78-2657 Page 7 ' P SOILS ENGINEERING.INC. RECOMMENDATIONS - continued 3. GRADING -continued 3-2 Backfill: Existing site soils encountered in test borings were generally clean and are considered suitable for reuse. However, should any deleterious material be encountered, it would be necessary to clean such material from excavated soils prior to reuse. Excavated material approved for reuse should be deposited in 6 to S inch -- loose lifts and recompacted to 90 percent of maximum density at near optimum moisture contents. 3-3 Imported Soils (if needed): Any imported soil required to complete grading operations should consist of granular low expansive material which exhibits an expansion index of not greater than 20 when tested in accordance with U.B.C. 29-2 Expansion Index Test Procedures. 3-4 Tests and Inspections: Grading, compaction, and utility line backfill operations should be performed in the presence of a field representative of this office. An adequate number of field density tests should be taken to ensure compliance with this report and local ordinances. If it is determined during grading that soils require reworking to greater depths, for safe support of the proposed structure, this additional work should be performed as directed in the field. vo v`P • vv A78-2657 Page 8 P SOILS ENGINEERING.INC. RECOMMENDATIONS - continued 3. GRADING - continued 3-4 Tests and Inspections: - continued Imported fill soil should be inspected by a representative of this office prior to being hauled to the site. Maximum density for control of grading shall be determined in accordance with ASTM D1557-70 test procedures. - 4. SHRINKAGE AND SUBSIDENCE The upper 3 to 6 inches of surface soils may not be suitable for use as structural fill due to organic contamination. Nominal volumetric shrinkage may be expected as a result of soil compaction. Site subsidence caused by clearing and compaction operations will also occur. An average value of 0.1 feet is recommended for earth yardage calculations. An estimated 5 cubic yard wastage should be considered for each tree rootball _ system removed. Losses due to removal of structure foundations, slabs, pavement, and abandoned utility lines will also occur, however such losses are dependent on the extent of material removed and therefore cannot be accurately estimated at this time. Total estimated site shrinkage should be calcualted by combining all the above values. The estimates given herein should be verified during grading. I i �o A78-2657 Page 9 v SOILS ENGINEERING.INC. RECOMMENDATIONS -continued 5• DESIGN VALUES 5-1 Bearing Capacities: Respective, safe, dead plus live load allowable bearing pressures of 1900 and 2100 pounds per square foot may be used in design of continuous and spread footings when placed on firm bearing natural soils, and when embedded 18 inches below lowest adjacent finish subgrade. A one third increase in the above bearing pressures may be used when considering short term loading from wind or seismic sources. No footing should be built less than 12 inches wide. Inspections of the footing trench excavations should be performed by a representative of this office to confirm embedment into, and placement on competent bearing natural soils, and to ensure any loose or caved soils are cleaned from footing bottoms prior to placement of reinforcing or concrete. 5-2 Settlements: Total settlements for footings placed on approved bearing soils are not expected to exceed 1 inch. Differential settlements may be' determined by comparing estimates for total settlements as presented in the following table for varying finished floor subgrade elevations and loading conditions, TABLE OF ESTIMATED SETTLEMENTS Finish Floor Footing Load Settlement - Subgrade Tye Condition Inches Existing Grade Continuous 2-if 0.5 Existing Grade Spread 80k 1.0 *Partial Basement Continuous 2.5k/if 0.4 *Partial Basement Spread 80k 0.8 o *'Finish floor subgrade elevation taken at 5 feet below existing grade. oo``r A78-2657 Page 10 r iQ SOILS ENGINEERING,INC. - _ RECOMMENDATIONS - continued 5. DESIGN VALUES 5-2 Settlements: - continued Should the structural loading conditions vary by more than 10 percent from those assumed for this project, this office should be notified for further evaluation and recommendations as necessary. 5-3 Lateral Resistance: Lateral resistance may be computed by use of a passive pressure of 250 pounds per square foot per foot of embedment into compacted fill soils, and a friction coefficient of 0.35 between concrete and the supporting soil. 6. FLOOR SLABS Floor slabs may be safely supported on soils reworked as described in the Grading section of this report. Any slab to receive a moisture sensitive floor covering should be placed on an impermeable membrane topped with two inches of clean, coarse sand, or on 4 inches of open-graded gravel. 7. EXPANSIVE SOIL PRESSURES Site surface _soils exhibit very low expansive soil characteristics. However the degree of expansion should be confirmed after completion of rough grading operations. 8. PLANTERS Any planter areas placed adjacent to perimeter footings should be provided with false bottoms, or other devices, to divert water away from foundation and slab subgrade soils. Excessive lateral water movement to or from such soils might unnecessarily increase differential settlements. This concludes the recommendations. The appendix follows. .P ©o A78-2657 Page 11 co P SOILS ENGINEERING,ING. APPENDIX The following Appendix contains the substantiating data and laboratory test results to complement the engineering evaluations and recommendations contained in the report. Plate "A" Plot Plan Plate "B-1" thru 118-511 Boring Logs Plate 11C-111 thru "C-6" Load-Settlement Curves Plate "D-111 thru "13-6" Direct Shear Tests SITE EXPLORATION.- On October 31, and November I and 2, 1978 field explorations were made by drilling 5 test borings at the approximate locations indicated on the attached Plot Plan, Plate "A". A truck mounted rotary mud type drilling rig equipped with a pump capable of _. circulating a bentonitic "drillers mud" slurry and 6 inch diameter soil type drill bit was used to advance 3 of the 5 bore holes to depths of 25 to 40 feet from existing grade. A truck mounted drilling rig equipped with a 6 inch diameter continuous flight auger bit was used to advance 2 of the 5 bore holes to a depth of 30 and 40 feet from the existing grade. Description of the soils encountered, depth of undisturbed cores, field density and field moisture content are given on the Log of borings for the test holes. Undisturbed samples of soils were extracted in a barrel sampler with tapered cutting shoe. The undisturbed soil retained in 2.5 inch diameter by one inch rings within the sampler was tested in the laboratory to determine in-place density, moisture content, shear resistance and-settlement characteristics. Continuous observations of the materials encountered in the borings were recorded in the field. The soils were classified in the field by visual and textural examination and these classifications were supplemented by obtaining bulk soil samples for future examination in the laboratory. All samples were secured in moisture-resistant bags as r soon as taken to minimize the loss of field moisture while being transported to the laboratory and awaiting testing. After the samples were visually classified in the laboratory, a testing program that would provide sufficient data for our analysis of the soils was established. o°`P A78-2657 I n 0j 9' 30ILS ENGINEERING.INC. APPENDIX - continued .. . .. . . ...... ... . . LABORATORY TESTS Direct shear and consolidation tests were performed on selected undisturbed core samples to determine the shear strength and settlement characteristics of various soil samples. LABORATORY TEST RESULTS MAXIMUM DENSITY TEST RESULTS The following maximum density tests were conducted in accordance with ASTM D1557- 70 Method A of test using 5 equal layers, 25 blows each layer, 10 pound hammer, 18 inch drop in a 1/30 cubic foot mold. Test Hole Depth, Maximum Optimum Material Number Feet Density, pcf Moisture, Classification 1 0 - 4 128.0 9.0 SM 2 0 - 4 131.5 8.0 S M - M L EXPANSION DETERMINATION Expansion tests were performed on selected soil samples-. to determine the swell characteristics of typical site materials and the following results were obtained for 1.44 pounds per square -foot surcharge load. The expansion test was conducted in accordance with Uniform Building Code Standard No. 29-2, Expansion Index Test. - Maximum Opt Molded Molded Density Moist. Dry Moisture % Expansion Expansion Location cif _ % Density Content Saturation Index Classification T. H. 1 128.0 9.0 122.1 9.3 65.2 0 Very Low 0- 4 T. H. 2 131 .5 8.0 120.6 8.1 54.7 0 Very Low 0 - 4 �o A78-2657 II r- Y SOILS ENGINEERING,INC. If A:Pjo� . A - i Am I film i - i i i 1 2 w BAN A.vti. w ►��oa�A� Ne,v., ItJ1G 4 r , LOG OF OMINM wAIII< 1ABIA. See note below PMECT A78-2657 CAVING See note below TEST HOLE NO.1 M F 1II OF fiiL None CATS WILLED 11-2-78 i •k,'"' wn. c�usr,r�wr�nw f va+.fea f pros a&a>I TEST HOLE NO. 1 0.0-1.0 SANDY SILT - Brown to dark brown, borders M silty sand (SM) - damp 1.0-3.0 SILTY SAND - Brown, borders sandy silt SM 2.0 15 * 10.5 (ML) , with a trace of clay, with trace roots (to 1/4" diameters) - moist 3.0-5.0 CLAYEY SAND - Brown, with a trace of SC 3.0 30 115.5 12.4 rootlets - calcareous - moist 5.0-9.0 SILTY CLAY - Brown, light brown to light CL 5.0 24 117.4 14.3 gray brown below 7 .0' , with a trace of 8.0 27 111.8 14.3 sand - moist, moist to wet below 7.0' 9.0-9.5 SA14DY CLAY - Light brown - moist CL 9.5-11.5 FINE SAND - Light brown, with a trace SP-SM of silt - damp 11 .5-40.0 FINE TO MEDIUM SAND - Gray and rust - SP 13.0 49 95.1 3.1 damp, moist to wet below 36' 18.0 34 23.0 35/6" * 3.6 28.0 33 KEY: 1) Blow Count 2) Dry Density, pcf 3) Moisture Content, NOTE: Blow counts as determined by dropp ng a 140 lb. hammer through a height of 30 inches on a 2.5 inch I.D. sampling device. Reco ded blows are for 12 inches of penetration, except as noted. *Indicates unsuccessful attempts made in etrie ing undisturbed core sample. Bulk sample taken whe e possible for visual classification and moisture determination only. r , n Pun A 1 J�j y�V v SOILS ENGINEERING,INr- LOG OF BORINGS wAIIR TABLE - F*Wf= A78-2657 CAVING TUT HOSE WO. I - cont'd DI Pl H OF FICL CATS pt'i1l t" {OIL itl » {1� 2) (3) j 111'111 CLAHlOKAYIQM /uN/BIt0/ Ntli MCt co ( IN 1FI1 i TEST HOLE NO. 1 - continued WATER TABLE AND CAVING NOTES: After completion of drilling to a depth o 401 , test boring closed to 35' below existing grade -- bottom of hole wet in moisture c ntent . After 15 minutes had transpired, bottom oF hole at 35' and saturated in moisture contents Indic ting approximate level of groundwater table. t i I i r PLATE B 1 - ont'd 0 C. a k;OILS ENGINEERING,INC. i - LOG OF OWINO wA I t►t 1 Ad!£ Not encountered M10ACT A78-2657 CAVING None experienced UST Wkt NO. 2 D[PM OF FIL4 None Q►TI DRUAA O 11-2-78 o`er~ so (1) (2) (3) u `taFsineanpN wu"nsa� 4vM#wH. O►CQIR N r r. T 4MMlt4 TEST BOLE NO. 2 0.0-1.0 SILTY CLAY - Brown to dark brown, borders CL clayey silt, with a trace of sand - moist _ 1.0-2.0 FINE SAND - Brown, with a trace of silt - SP-SAT damp 2.0-4.5 SANDY SILT - Brown, with a trace of ML 2.0_ 35 116.5 9.3 .clay, clay percentages increase with 3.0 46 118.8i 10.5 depth - damp to moist 4.5-11.0 SILTY CLAY - Brown, light gray brown CL 5.0 33 112.0 16.3 below 8.5' , lensed with trace sands - 10.0 18 97.0 24.2 calcareous at 10' - moist, wet below 8.5' 11.0-12.5 FINE SAND - Brown to light brown, SP-Stk with a trace of silt - damp 12.5-15.0 FINE SAND - Gray and rust - damp SP 15.0-30.5 FINE TO MEDIUM SAND - Gray and rust SP 15.0 40 105.5 3.6 20.0 59/9.5 25.0 53/8.5 30.0 30/6" 94.8 2.6 KEY: � 1) Blow Count 2) Dry Density, pcf 3) Moisture Content, % NOTE: Blow counts as determined by dropping a 140 lb. hammer through a height of 30 inc es on , a 2.5 inch I.D. sampling device. Recorde blow are for 12 inches of penetration, except s noted. *Indicates unsuccessful attempts made in etrie ing undisturbed core sample. Bulk sample tak n where r ' possible for visual classificaiton and mo sture determination only. r , r - w,wW s• 2 h 0 4 Q EMIL- EfJGfNEFRING.w,1C. i - WAII R IABLE See note below UOG OF BMIWA PMMT A78-2657 CAVING See note below TM 64OLE NO. 3 Df P1H OF Ftll None QATE 01ULLAD 11-1-78 ATM 4�) tz) 13)SOIL tt468*171CAT1011 IUM/i ls®1 41fMiOL Bf 6QRi TEST HOLE NO. 3 - 0.0-1.0 6" ASPHALTIC CONCRETE PAVEIENT ON 6" AGGREGATE BASE _. 1.0-5.0 SILTY SAND - Brown to dark broom, borders SM 2.0 26 1.13.2 9.3 sandy silt (PAL) , trace of organics at 3.0 13 110.1 9.3 2.0' - moist 5.0-11.0 SILTY CLAY - Brown, with sand, gradation CL 5.0 36 116.11 13.0 contact with above silty sand horizon, 8.0 41 118.8 15.6 sand percentages decrease with depth - moist 11.0-13.0 FINE SAND - Brown with light brown, with SP & lens of clay (CL) at 12' - moist CL 13.0-18.0 FINE TO MEDIM SAND - Light brown, with SP-S11 13.0 53 107.8 12.4 a trace of silt - moist 18.0-39.5 FINE TO MEDIUM SAND - Light brown, light SP 18.0 52/7.5 101.9 21.7 ` gray brown below 28' - wet to saturated fI 23.0 43 28.0 50/5" 19.1 39.0 52/6" * 23.4 KEY: 1) Blow Count 2) Dry Density, pcf 3) Moisture Content, NOTE: Blow counts as determined by dropp ng a 250 lb. hammer through a height of 18 inc es on a 2.5 inch I.D. sampling device. Reco ded blows are for 12 inches of penetration, eicept as noted. *Indicates unsuccessful attempts made in letrieving undisturbed core sample. Bulk sample tak n for visual classificaiton and moisture determ natio only, where possible. PLATE B• 3 Q� v t101L9 EfJGINEF_RINGANC. wA 11 (+ (AB(L PRO4XV A78-2657 CAVING TW #4M NO.3 - cont'd (A PM OF FILL QA G n1r10. sou. CW/1/K�1RON WMRIlep1 6TY9tRi?3 WCan I N i E E T Rjf16 TEST HOLE NO. 3 - continued WATER TABLE AND CAVING NOTE: After completion of drilling operations, he bore hole was partially bailed of driller vs — mud and the following tabulated measureme to were recorded. Bottom of Depth to Date Time Hole Driller's Mu Remarks I1-1-78 2:30 pm 34.0' Bailed hole f dril er's m 11-2-78 8:15 am 38.0' 34.0' Depthto dri ler`s ud app ; rs sti ble. PLATE f• 3 - ont'd O r� O� v SOILS Et4GINEERIN3,INC. LOG OF SMINO . wATIR TABLE See note below PROJECT A78-2657 CAVING None experienced TEST HOLE NO. 4 UfPTN Of FILL None PATE Dit"Er. 11-1-78 utrlll Ic* ll� �2) �3) IN IE•ET Wll CMi#1P{CATIOM Ibp111601 BTU t r 1 � TEST HOLE NO. 4 0.0-2.0 SILTY SAND - Brown to light brown, border , SM sandy silt, with a trace of clay - .damp 2.0-3.0 SILTY SAND - Light brown, with clay, Sit 2.0 70/10" 122.0 8.1 with trace organic material - moist 3.0-5.0 CLAYEY SAND - Brown with gray brown and SC 3.0 72/10't 123.0 9.3 rust - damp 5.0-8.5 SILTY CLAY - Light brown to brown, with CL 5.0 40 118.2 15.6 a trace of sand - moist 8.5-10.0 FINE SAND - Light brown with light brown SP - moist 10.0-25.5 FINE TO MEDIUM SAND - Light brown, light SP 10.0 47 108.8 11.1 gray brown below 20' - wet, saturated 15.0 48/6" 107.2 19.1 with depth 20.0 50/6" * 4.7 25.0 150/6" 101.8 ' 17.0 KEY: 1) Blow Count 2) Dry Density, pcf 3) Moisture Content, NOTE: Blow counts as determined by dropp ng a 250 lb. hammer through a height of 18 inc es on a 2.5 inch I.D. sampling device. Recorde blow are for 12 inches of penetration, except s noted. *Indicates unsuccessful attempt made to r triev undisturbed core sample. Bulk sample tak n where possible for visual classification and mo sture determination only. r PLATE i 4 ti 0 P ¢y P E30;LS EPJGINEERING.INM LOG OF SORO GS wAII.R TABLE MWECT A78-2657 CAVING 'MOT "M NO. 4 - cont'd DEPTH OF FILL DATE MILLED 11-1-78 iuev111 •ott sa of coft (1) (2) (3) n sccT TEST HOLE NO. 4 - continued WATER TABLE AND CAVING NOTES: After completion of drilling operations the bore hole was partially bailed of drillers mud and the following tabulated measurements were record ad. Bottom of Depth of Date Time Hole Drillers Mud Remar 11-1-78 11:15 am 25.0' 19.0' B iled ho a of d illers aud 11-2-78 8:00 am 25.0' 22.5' i r- PLATC 8' 4 - cunt'd 0 P yy SOILS ENGINEERING.ING �,. wAI`LR 1AaLE See note below V404 T A78-2657 CAVING See note below TEWT iiX9 Ho. 5 OITTH OF FILL None DATE 04iLLW 10731-78, 11-1 8 bf PT/4 ►7N *OIL C4ArlNK�Ti1RM /UWIK01 YYMf� QRCOAL snrrwss TEST HOLE NO. 5 — 0.0-4.5 SILTY SAND' - Brown, with a trace of clay $M 2.0 24 122.4 13.0 - moist 3.0 21 124.0 13.0 4.5-8.0 SILTY CLAY - Brown to light. brown; with CL 5.0 41 119.6 %15.6 a trace sand - moist 8.0-12.0 FINE SAND - Brown to light brown, with SP-SM 8.0 40 117.8 14.3 silt - wet 12.0-13.0 SILTY CLAY - Light brown - stiff - moist CL 13.0-22.5 FINE TO MEDIUM SAND - Rust and gray - SP 13.0 37/6" 102.2 19.1 wet to saturated 18.0 53/6" 105.9 21.2 22.5-23.0 SANDY CLAY - Gray brown, borders clayey CL sand - moist 23.0-23.5 FINE SAND - Gray with rust, with a trace SP-SC 23.0 30/6" 114.8 14.3 of clay - moist 23.5-28.0 FINE SAND - Gray with rust, with lenses SP 23.5 130/3" or layers of fine to coarse sand below 26 feet - moist 28.0-39.5 FINE TO MEDIUM SAND - Light gray brown, SP 28.0 45/6" 106.3 19.1 gray to blue gray below 39' - saturated 33.0 60/8" 100.2 22.0 39.0 40/6" 110.2 19.1 KEY: 1) Blow Count 2) Dry Density, pcf 3) Moisture Content, NOTE: Blow counts as determined by dropp ng a 250 lb. hammer through a height of 18 inc es on a 2.5 inch I.D. sampling device. Reco ded blows are for 12 inches of penetration, cept as noted. PLATE B• 5 0 by SOILS ENGINEERING.INC. LOG OF WRINGS WATt:R )ABLE PROJECT A78-2657 CAVING UV HOOF NO, 5 - cunt'd DEPTH OF FILL C TI MLLIED ut V i 1i SOIL CLASSI}/CATIOM i VMIIIHW 1 Ctl14YQL O}COl3 iN FEET ew}a.Ss TEST HOLE NO. 5 - continued WATER TABLE AND CAVING NOTES: After completion of drilling operations t 'e bore — hole was partially bailed of drillers mud and the following tabulated measurements were recordad. _ Bottom of Depth of Date Time Hole Drillers lud Remarks 1 11-1-78 8:15 am 28.0' Ba led hol of dr lers d 11-1-78 9:15 am 36.0' 28.5' 11-1-78 1:15 pm 36.0' 30.0' 11-2-78 8:00 am 36.0' 32.0' 11-2-78 1:00 pm 36.0' 32.5' i PILAU B• 5 - cont'd 0 oJ71 v SOILS ENGINEEMN13.I1"IC. PROJECT It 78. 2657 CONSOLIDATION TEST RESULTS /1 NORMAL PRESSURE KIPS PER SOUARE FOOT 0.3 0.5 1.0 2 3 4 5 10 15 20 0 2 3 w Y 4 v_ x 5 a T H p U. T H.15 0 6 Z w v Er a 7 I Z O 8 O. J O N T I 0 9 U O J w 10 11 12 i ' u Z 13 z w w 0 14 z w VI � � J 0 y 0.3 0.5 1.0 2 3 4 5 10 15 20 H2O INFILTRATED AT 0.5 K 5 F r 0 PLATE C-I w y Q FORM ASE•100 PROJECT A78- 26657 CONSOLIDATION TEST RESULTS {NORMAL PRESSURE KIPS PER SQUARE FOOT 0.3 0.5 1.0 2 3 4 5 10 15 20 0 1 2 3 ui w z 4 _ Lu 5CL T N. T.H.t 13 a ' LL 0 6 z w \ c.> w 7 CL I \ z O a 8 o . J 0 N z 9 0 -- U tr 0 J u, 10 N _+ 11 12 - V Z u 13 z w w 14 z w N 0 ^ 0.3 0.5 1.0 2 3 4 5 10 15 20 0 Q H10 INFILTRATED AT 0.5 K S F u PLATE C-2 0 Lq N Q FOAM NSE-100 i PROJECT A78_2657 CONSOLIDATION TEST RESULTS Gi NORMAL PRESSURE KIPS PER SQUARE FOOT 0.3 0.5 1.0 2 3 4 5 10 15 20 0 1 1 2 3 w z 4 T141,030 ui 5 �TlHi- *5 LL O 6 z w U Cc 7 a I z O a 8 o� J O N 0 9 U O J J w 10 11 12 u z u 13 z w w 0 14 z w a � J 0 N 0.3 0.5 1.0 2 3 4 5 10 15 20 w H2O INFILTRATED AT 0.5 K S F r i R uu PLATE C-3 m VI Q F nRM w8E-l00 ' ( 1 PROJECT �4p-8-y G/C7J-7 CONSOLIDATION TEST RESULTS /"�t NORMAL PRESSURE KIPS PER SQUARE FOOT 0.3 0.5 1.0 2 3 4 5 10 15 20 0 1� 2 — --� T.H. �►IQ 3 TH �Z N _ N w z 4 ui U_ 2 a 5 Q N LL O 6 H z W U - w 7 a I z O a 8 J 0 N 0 9 - u cc J w 10 N 11 12 u ' z 13 z w r w 0 14 z w N J r � 0 0.3 0.5 1.0 2 3 4 5 10 15 20 w H2O INFILTRATED AT 0.5 K S F ¢ w PLATE C-4 0 FORM ASE•100 PROJECTA'78_ 2657 CONSOLIDATION TEST RESULTS NORMAL PRESSURE KIPS PER SQUARE FOOT 0.3 0.5 1.0 2 3 4 5 10 15 20 0 — r 2 3 12 Lo _" T H. P$ z 4 Y U_ Z a 5 Q LL O 6 z w U w 7 d I z O Q 8 O_. J O N z 9 O U cc O J w 10 11 I 12 , u z 13' z w w. 0 14 z w 0 " 0.3 0.5 1.0 2 3 4 5 10 15 20 W H20 INFILTRATED AT 0.5 K S F o PLATE C-5 to N Q P OFM ASE-�00 � 1 PROJECT A78-2657 CONSOLIDATION TEST RESULTS C7 t NORMAL PRESSURE KIPS PER SQUARE FOOT 0.3 0.5 1.0 2 3 4 5 10 15 20 0 _ s t� T H I oIP33 2 _ @33 3 w z 4 Y U_ 2 5 a Q — LL O 6 f- z w U w 7 a I z O - Q 8 J O (n 0 9 — U cc O J w 10 11 12 u z 13 z w w u 14 z w � � J 0 in 0.3 0.5 1.0 2 3 4 5 10 15 20 w H2O INFILTRATED AT 0.5 K S F a u PLATE C- 6 V) m Q r FARM A3E•100 ' I • e� r wommonow ok wopAl MINFAMOMM � � r s api ii%i �■� .r.r w y Q G=2Q u; �, z« r Z.d 74 A D Ile- 190-1 tso Szo 1040 NORMAL STRESS IN P.S.F. PLATE D" • J mom ���. r r r�rrwnwi NNOWMIM*&tMre �+wrrc+s mm got �rwtr.r. x 3 s AMONWANO► i Syr .r i w��r.�►.rr�r r r- 1 tCT Q _ ,01; op go- 6. -r1t.SO 5.0' 0 or 0-00--i==Tl r � F 280 SZO 1040 r� NORMAL STRESS IN P.S.F. PLATE ®— 40 No III®�M®■��■I/'I■ I��■Ili■■■ i■■■■■■■fl■�r..rrr■1■ I�rllr►.� ,rl�■1 i MMW/� rI` • . o � r ,, r City of Huntington Beach Redevelopment Commissioner Attention: Steve Kohler Dear Mr. Kohler: In response to your request for proposals for a senior citizen housing development and an accompanying senior center, we have formed a joint venture to submit this proposal. The, proposal covers both the senior citizen housing development and the senior center, but the senior center portion of the proposal is severable if you find that someone can develop that element at a lower cost. The proposal is basically organized to follow the "Evaluation Criteria Outline" which you forwarded to us on December 15, 1978. The proposal has been developed on two levels. For summary review, we have prepared this overview letter as a general response to the "Requests For Proposals". For detailed information, we have developed a series of tabbed in-depth exhibits. Hopefully this organization will facilitate a quick reference and review of sections of the proposal which are of particular interest. I. ORGANIZATION OF JOINT VENTURE A. Development Team To meet the challenge of a project which contains both housing elements and the design and development of a senior community service complex, a joint venture was organized that drew upon a number of specialists. The joint venture parties are The Klein Group, as the principal developer and development team coordinator; Levitt-Turner, Inc. , architects; EDAW, Inc. for their expertise in landscape architecture, and the development of community centers for the elderly; Alison Golway Designs, an interior design firm with substantial experience in elderly housing and retirement community developments; and Barker Management, a firm with outstanding experience in housing managment. The development joint venture group chose to externalize the construction risks. Construction would be by Morrison and Knudsen with a fixed price negotiated contract, or by a contractor of similar reputation Page 2 and financial strength, if Morrison and Knudsen could not deliver a bid within the construction budget. Any substitution of contractor would be approved by the redevelopment commission and/or the City of Huntington Beach. The special expertise and background of each element of the development team will be discussed in depth within the tabbed subsections relevant to their work effort. We have not included in depth information on . Morrison and Knudsen'slexperience or financial strength- because the request for proposals appeared to focus on selection of the development team with a recognition that the contractor would have to be approved at a date when construction documents and plans and specifications were highly developed. Upon your request, we can supplement our submission with substantial exhibits from Morrison and Knudsen. They have constructed approximately 3,000 units in California within the last 18 months and their financial statement shows a net worth of far in excess of any requirements for a project of this size. B. Development and Ownership The development joint venture is organized to 1) complete the development of the property and to 2) retain an ownership interest while service as general partner in the partnership which will own the apartments to be constructed. Prior to commencement of construction, a partnership will be formed which will raise the equity capital to be invested in the project from limited partner investors. As between the joint venture parties, The Klein Group will become the managing general partner of the partnership. Barker Managment Company, in conjunction with the Klein Group, will serve as the project manager under contract to the partnership. This structure for the ownership and operation of the apartment complex is characteristic of approximately 80% of all subsidized apartments in California at this time. II. BACKGROUND EXPERIENCE A. Development Experience The development principal, The Klein Group, is a recently formed company 1 Financial information on Morrison and Knudsen is being mailed to you under separate cover as supplementary exhibits, not required by this "Request For Proposals". i Page 3 of Robert N. Klein II. This company was formed to aggregate work on all major projects of Robert Klein to the time they commence construction. His background in housing development dates to 1970. At that time, he jointed a partnership that developed under the name of OGO Associates. and a corporate name of OGO, Inc. Initially, he had general responsibility statewide for 236, 221(D) (3) and 235 programs and participated in Section 23 leasing programs. He also had primary responsibility for innovative programs with Section 23 low-income leasing, including lease-backs to the Los Angeles authority of units acquired through the "FHA Bulk Sale Rehabilitation Program" for foreclosed properties. Authority included statewide acquisition of land, all- local government problems, zoning, permits, special fees, environmental issues, community groups; HUD presentations and negotiations; negotiation with contractors, engineers, architects and other professionals. In 1972 he became managing partner for OGO Associates in Northern California. In addition to continuing the development of assisted housing, he formed a. non-profit housing counseling group to provide house counseling to residents of assisted housing projects. During this time, he was one of the founders of the Los Angeles Bar Association Committee on low and moderate income housing on which he served for several years. After the Nixon Administration terminated all assisted housing programs in January, 1973, he restricted his development activity to completion of the 1,000 plus units for which the company received a funding commitment prior to that date. In addition to development activity, he worked as a consultant for developers on the east coast, in Hawaii and in southern California to assist in the workout of projects which were in financial trouble or default. In the fall of 1973, the California Legislature Joint Senate and Assembly Committee on Community Development and Housing Finance hired Mr. Klein as the principal consultant to the State Legislature on Housing Finance and Urban Finance. While on retainer with that committee, he wrote the California Housing Finance Agency Act that initiated California's participation in assisted housing with a $450,000,000 permanent loan financing authority. In addition, he was associate drafts- man on the California Mortgage Insurance Act. For the executive branch of Page 4 the State Government, he worked for the California Department of Savings and Loans as a consultant on the "red lining" regulation revision to correct major problems in the original draft of those regulations as promogated. He also served as a consultant to the California Housing Finance Agency in designing their rehabilitation programs for inter-city neighborhood's. During the period from 1973 through 1976, Mr. Klein retained his position as Chairman of the Board and President of development companys producing non-assisted housing. This activity included non- assisted housing within urban renewal areas such as the 27 acre downtown residential and commercial project in Fresno, California known as the Mariposa Housing Triangle project. This project has no State assistance and no subsidized rents on the 200 units of apartments and the punccase on the 88 condominium units therein is not subsidized. The project was financed by Municipal revenue bonds which will be discussed later. Prior to returning to development full time in 1977, Robert Klein served as a western regional Vice President for Public Finance in Paine Webber Jackson and Curtis. While in that position, he was a principal in the underwriting group for the State of Oregon Housing Finance Agency and the State of Nevada Housing Finance Agency; he also held contracts, while in that position, to participate in the design of housing rehabilitation programs for San Bernardino County and the City and County of San Francisco. Currently The Klein Group •companys and partnerships have approximately 1000 units of residential housing in some stage of development. Approximately 40% of that amount is in construction or will be in construction within the next 120 days. Current projects include: 1. Huntington Park Condominiums - 88 units - Fresno, California 2. Huntington Park Apartments - Phase 11, 96 units - Fresno, California 3. Sunnyside Condominium Village - 42 units - Fresno, California 4. Laguna Falls Condominiums - 92 units - Fresno, California 5. Parkwood Subdivision - 50 units - Fresno, .California 6.. Simi Ranch project 141 condominiums - 159 single family Simi, California Page 5 7. Cochran Village Condominiums - 28 units - Simi, California 8. Del Amo Village Townhomes - 214 units - Torrance, California 9. Huntington Park - 124 units - Fresno, California Of the current projects, none have subsidized rents but approximately 280 units in three separate projects are bond financed and are within an urban renewal area. Of the 1,000 units developed between 1970 and the end of 1973, all involved subsidized rents or subsidized purchase.l Of the 1;000 units, approximately 200 were in conversion of a famous old hotel into an elderly assisted project. The rehabili- tation costs were approximately $3,000,000 and the total project value was approximately $4,000,000. Current commercial projects of The Klein Group. include two shopping centers, the restoration of an office building and the rehabilitation of an old printing building which is being converted into a restaurant and offices. The office building restoration has been designated as a National Historic Site and the printing building restoration has been designated as a State Historic Site and is nominated for National Historic Site designation. B. Property Management Experience Barker Management Company has responded to the five major elements listed for evaluation under management experience. You will find their response at Exhibit I. They have also included, in Exhibit I, a copy of their firm's resume' of past management experience. C. Experience and Qualifications of Design Team The design team is under the leadership of Quinn Turner of Levitt-Turner, Inc. Levitt-Turner, Inc. will serve as the architect on some 2,000 plus units of single family and multiple family housing this year. At Exhibit II, you will find a short resume' on Levitt-Turner, Inc. and its .two principals, Quinn Turner and Arnie Levitt. The balance of the design team includes EDAW, Inc. which is handling the landscape architecture and is providing design consulting on the senior center as well as general assistance in land planning and architectural consulting on the main 190 units were 235 assisted home purchase programs. r Page 6 - residential structures. At Exhibit III, a resume' of EDAW has been included. The design team is completed with the participation of Alison Golway Designs. This company has done interior design work on elderly residential complexes including 2,000 units during the past year. All units within the complex were not rehabilitated but specific social, cultural, dining, and residential areas were addressed in the upgrade and market stimulus program the firm just completed. A firm resume' can be obtained at Exhibit IV. III. FINANCIAL QUALIFICATIONS A. The Klein Group The Klein Group has a net worth of approximately $500,000 and Robert N. Klein II personally owns 100% of the stock and has a net worth of approximately $2,500,000. As working capital is needed for the pre- development stage of a project, Robert Klein II supplies additional capital to the Klein Group. Prior to the commencement of construction, the partnership is formed to capitalize the equity requirements of the project. Each year over $2,000,000 in capital and land is contributed by investor partners to projects of The Klein Group. The financial statements and details on partnerships that have been formed are confidential, but if the joint venture is selected for final screening and interveiws, the financial statements and other project statements will be made available on a restricted basis. B. Morrison and Knudsen This company has financial strength far in excess of what would be required to back up the fixed price contract and obtain the construction completion bonds necessary to assure completion of this project. Although no financial statement has been requested of the contractor, this is a public company and their annual report which includes a financial statement, has been sent under separate cover. IV. FINANCING A. California Housing Finance Agency This proposal is based on construction and permanent financing through the r -- Page 7 California Housing Finance Agency. Since Robert Klein II wrote the Act which created the agency, he chose to observe a self-imposed moratorium, which is not required by law, on any contract with the agency for a period of two years after the agency was founded. Robert Klein II has not, therefore done previous projects with the agency but he is intimately familiar with the operations. The construction interest, using this financing, would -be 62%. The permanent loan would be for 40 years with a 7% interest rate. The loan amortization constant would be 7.46%. B. Municipal Revenue Bond Financing If, in the alternative, Municipal Revenue Bonds were used for the construction and permanent financing, the rates would be approximately 62% on the construction loan and 7% on the permanent loan. The term of the permanent loan and the loan amortization .constant would be identical to those under the California Housing Finance Agency. Exhibit V is a Revenue Bond Financing on three projects of Robert Klein in the City of Fresno. It was the first of this type ever .completed. C. FNMA/GNMA The project could also be insured under section 221 (D) (4) through the Federal Housing Administration. If there is available FNMA/NMA tandem plan authority, the permanent loan rate would be 72% for 40 years. Construction financing would be at 12% above the prime rate. This financing approach would require the structure and amenities to be down graded. V. DESIGN FACTORS A. Site Plan Amenity Package EDAW, Inc. has provided a commentary on "the site plan" and the "amenity package features" as Exhibits VI and VII consecutively. There are also accompanying site plans and landscape plans which have been submitted as separate full-scale exhibits. Page 8 " C. Building Configuration For description of building configuration, please see Exhibit IX. D. Outer Design Factors EDAW, Inc. has prepared a complete discussion of the plan's compatibility with the neighborhood. Please see Exhibit X. VI. FINANCIAL• FEASIBILITY RESIDENTIAL A. Development Costs Development costs on this project are shown in a detailed breakdown in Exhibit XI. Those costs have been trended by one-year. We feel that it would be extremely unrealistic ' to believe that all necessary approvals for construction could be obtained in less that 10 months. B. Operating Feasibility Significant contingencies are built into the operating budget for projected increases in utilities over the next two years and/or for potential lighting requirements in the garage area. We believe that since the garage area is only depressed 4 feet that significant exterior natural light and ventilation can be achieved in: the final plans which would reduce this cost substantially. The replacement reserve in the operating budget has been -trended out two years. Property taxes also include a contingency since the extent of the possessory interest tax can not be fully evaluated at this time. Given these and other contingencies and trending factors reflected in the operating budget, this budget could be reduced by 25-30% if the project were to go in operation today. In comparing this operating budget with proposes budgets and other projects, it must be realized that many competing developers will not trend their operating budgets and historically they have underestimated operating costs to maximize their net cash available for debt service. Our detailed operating budget can be found at Exhibit XII. VI.I. FINANCIAL FEASIBILITY - SENIOR CENTER A development team has examined the senior citizens recreation center goals statement thoroughly. We believe that the majority of the goals can be accomplished within 10,000 square feet but some difficult decisions will have to be made over cost trade-offs and the conflicts will develop in, Page 9 _ planning the senior center building floor plan in a manner which is aesthetic while meeting all of the diversed functional needs outlined. In the materials provided, a total of $305,000 is shown as available for the development of the senior center. Given the center's goals and the fixturization required, the cost per square foot will run at least $45.00 per square foot. With custom cabinetry and kitchen fixturization the cost per square foot could rise above the $45.00 figure which is a reasonably trended square foot figure assuming construction to start within the next 6 months. With appropriate compromises and exclusions, that per square foot cost could drop to $40.00 but given that this is a public building which must meet insti- tutional standards, this is not likely. At this time we are unable to devise a plan under which the senior center could be constructed within the budget provided unless the center were to be financed in the same mortgage with the housing project and leased back to the City or some subdivision of the City. Given our design, development and construction expertise, we do believe that we can competitively meet the cost to any other developer of building this facility. VIII. CITY GOALS VS. "EXISTING RENTS" FOR SECTION 8 I do not believe that it is possible to provide the type of quality, density, and anemities which the City is seeking, at the existing Section 8 rents. I believe that a number of independent experts who are on the staff of financial institutions could show that proposals claiming to provide the intended product with the "Existing Rents" are not feasible. i Justification of City Assistance It is not difficult to justify the low lease rate for the land. Even at that lease rate, if the maximum Section 8 "New Construction" rents are utilized, the project would only meet the minimum under- writing standards of a public or private financial institution acting as theconstruction or permanent lender. Page 10 These rents, used for the purposes of this proposal, are $400 per month for the one-bedroom and $480 per month for the two-bedroom units,2as specified for the exception level Section 8 elevator buildings rents. We are aware that there is no "New Construction" Section 8 "set-aside" for the Huntington Beach area at this time. We believe that with an outstanding project it would be possible to obtain a Section 8 commitment prior to the proposed date for the commencement of construction. Of the 1,000 units of subsidized housing which were developed by Robert Klein between 1970 and 1973, only to units were developed under an established "set-aside1°. All of the other projects had to compete with projects in other areas of California and in some cases throughout the country to obtain a special project commitment. We belive that this is an extremely good risk, in this case, since an outstanding project can be coupled with an outstanding site. The proximity to the senior center should certainly serve to increase the priority rating of this project for purposes of obtaining Section 8 commitment. Market Rate Rents It is a matter of greater concern that the market rate units are at a very high rent. This concern is mitigated by the impressive view that"would be created for the units on the third floor. Given that the buildings sit on top of the roof to the parking garage (which is elevated by approximately five feet) some of the units on the second floor may also have a reasonable view. The proximity to the ocean also favorably influences the evaluation of the market rate rents. Most importantly one must realize that with construction costs trended one year and operating costs trended two years, these rents would be approximately 20% lower if the units were to go into occupancy this month. The current equivalent rents would be $320 for the one- bedroom and $400 on the two-bedroom2. It is not possible at this time to complete the substantial market study which would be required to evaluate the competiveness of these rents two years in the future. 2These include utilities and, therefore, $20.00 a month must be deducted from rents because these units will be individually metered with tenants paying utilities. Page 11 It is possible that rent squeing will have to be used with the subsidized units picking up a disproportionate amount of the cost increase, projected in this proposal, which will occur over the next two years. We do know that Section 8 rents are raised each year and it should be possible to obtain a revised exception limit ceiling for Section 8 rents prior to the commencement of construction on this pro- ject. It should be noted that the Los Angeles Section 8 rents are already substantially above the rents for this area which are biased towards two-story construction with no underground parking. Project Feasibility Summary and Investor Return Total project costs, as shown on the development feasibility analysis, are $6,312,000. The gross income is $780,240 after deducting the allowance for utilities. The effective gross income at 95% occupancy is $741,228. After deducting an operating budget of $275,089, a net income is derived of $466,139. Under current underwriting standards, 90% of that amount would be available for debt service. This leaves $419,750. This debt service will support a mortgage of $5,626,676. The equity required would be approximately $685,323, The cash flow on that equity would be approximately 7%. Obviously, with certificates of deposit in excess of $100,000 yielding 11% plus, the investor would not invest in this project solely for the cash flow. The tax shelter advantages of assisted housing, established by Congress to attract capital to this important social resource, are necessary to provide the equity partners with an overall return which is reasonable. The project sponsors could have proposed a project of lesser quality or distinction which would have provided more cash flow within the maximum allowable rents. We chose to provide the highest quality product possible as our part of a commitment with the City to use the resources available to provide the maximum benefits for the elderly Page 12 that will be served by the housing development and senior center. I hope you review our proposal thoroughly and call upon up to present additional information in the final screening process. Our proposal could have been more thorough except that due to the Christmas mails, we did not receive a copy of the evaluation criteria until 4:00 p.m. on the 19th of December. Sincerely yours, fobKlein, II - The Klein Group RNK:ke TABLE OF CONTENTS EXHIBIT I PROPERTY MANAGEMENT EXPERIENCE EXHIBIT II ARCHITECTURAL - LEVITT-TURNER, INC. EXHIBIT III ENVIROMENTA.L PLANNING, URBAN DESIGN, LANDSCAPE ARCHITECTURE - EDAW EXHIBIT IV INTERIOR DESIGN - ALISON GOLWAY DESIGNS EXHIBIT V MUNICIPAL REVENUE BOND ISSUE EXHIBIT VI SITE PLAN (also see attachment - site plan) EXHIBIT VII AMENITY PACKAGE (also see attachment - landscape plan) EXHIBIT VIII UNIT DESIGN (also see attachment - unit plan) EXHIBIT IX BUILDING CONFIGURATION (also see attachment - elevation plan) EXHIBIT X OUTER DESIGN FACTORS EXHIBIT XI DEVELOPMENT COSTS EXHIBIT XII OPERATING FEASIBILITY SNI levitt-turner inc. ; design-planning for real estate I j LTI BACKGROUND AND CAPABILITIES LTI is a design and planning firm offering a professional consulting service in visual market analysis, zoning analysis, master and site planning, pro- duct concept design development, architectural design, construction drawings, and supervision. LTI was formed in April of 1977 and currently has a staff of sixteen full time professionals in the fields of product creation, zoning, planning and architecture. The success of LT.1 in this short time span has been due to three major factors: innovative design solutions, meeting all established time schedules and building within the established budget. LTI 's principals believe that a practice built on proven and creative problem solving techniques naturally seeks out -- individuals, institutions, corpor- ations, and governmental agencies -- who share in LTI ' s dedication to this model approach. The scope of professional services offered by LTI is tailored j to provide clients with unique solutions to problems. One or more principals of LTI manage each project through to completion. LTI has participated in a number of design and planning competitions. In addition, LTI has recently presented some innovative zoning and site planning solutions that resulted in enthusiastic approvals by city staffs, city plan- ning commissions and ultimately city councils. Prior to forming LTI , the principals, as consultants, were responsible for the creation of the concept, design development and working drawings for two uni- que projects in Southern California -- "Le Parc" in Century City and "Finisterra" in Mission Viejo. We have selected the following project description to illustrate LTI ' s recent experience in development of unique and sound solutions to planning and design problems. i Each of the projects is followed by a reference, and we Invite and encourage your contact with these individuals for whom LTI has performed these services. i i f i 10100 canto monica blvd. suite 675 los angeles,ca 90067 (213)553-7353 ARNOLD S. LEVITT Principal LEVITT-TURNER INC. Beyond his extensive academic training, Mr. Levitt has ten years experience in design of schools, commercial facilities, housing of all types and master land planning. He combines his East C6a.st and current California experiences into a unique blend of design ability. Prior to becoming a principal in LTi , Mr. Levitt was a consultant to a major local architectural firm. He was responsible for land planning, site planning, conceptual and design development, and client coordination. As a principal in the firm of Levitt and Levitt, he designed large custom homes in the Beverly Hills and Brentwood , California areas. Mr. Levitt previously worked for a number of architectural and planning firms, including Richard D. Stoddard (Sherman Oaks, California) ; Urban Innovations Group (Los Angeles, California) ; Kamnitzer, Marks, Lapping, Vreeland, inc. (Beverly Hills, California) ; Cassway/McGee & Associates (Philadelphia, Pennsylvania) ; with the major emphasis being in master land planning, planned unit development, and multi and single family housing. In preparing his Master' s thesis, "How to Deal With The Anonymous User In The Production Housing Industry", Mr. Levitt combined his practical experience with in-depth surveys among a representative group of tract homeowners to gain new insights for application in the design process of future residential developments. These thesis studies produced an interesting "gaming" approach to user desires in production housing. This gaming approach encompasses an in- depth understanding of these requirements and how they relate to conceptual design. This is the basic format to the "Problem Solving Technique1° used by LTI . Education: Pratt Institute, School of Architecture Brooklyn, New York Philadelphia College of Art, Bachelor of Science in Environmental Design, 1969 University of Southern California, Los Angeles School of Architecture & Urban Planning Master in Architecture, 1973 R. QUINN TURNER Principal LEVITT-TURNER INC. Mr. Turner is an architect-planner and urban designer with over twenty years combined architectural , corporate, development and management experience. Prior to his becoming a principal of LTI , Mr. Turner was a consultant to a major local architectural firm. He was responsible for promotional activities and interpretation cif client's needs including urban planning, market analy- sis and conceptual product design. During this time he served as a panel member for the Pacific Coast Builders Conference Golden Nugget Awards. As Vice President of Product Planning for a national homebuilder, Mr. Turner was responsible for creation of all housing products nationally, market trends analysis and the establishment of design and planning activities for all outside consultants in each of seven regions. While serving as Director of Design and Planning for a real estate investment corporation in Chicago, Illinois, he was responsible for all concepts related to land use including dealing with planning agencies and coordinating all design consultants. He worked with marketing firms for the management and development of hotels, apartments, commercial ventures and PUD projects, in Florida and Chicago. Mr. Turner had total responsibility for <<middle management11 of the project development process, which involved creating management contracts for clients who did not have middle management capacity while he was an Associate and Project Manager for the SWA Group in Sausalito, As a Partner in The Bishop Company of San Francisco, he was architect and developer of the first condominium project built in Marin County -- Marina Vista. Mr. Turner worked . as an architect for six years in the San Francisco Bay Area. He designed various projects including schools, office buildings, industrial buildings, single family housing, multi family housing and medical buildings. Education_: University of California, Berkeley Bachelor of Architecture, 1963 Professional Affiliations: Licensed Architect, State of California Member of American Institute of Architecture, AIA ALISON GOLWAY DESIGNS Alison Golway Designs' {AGD} is a total environmental design firm. It's business activity is primarily commercial and residential contract design and sub-contracting. The firm is involved in total concept design including participation in the development of marketing plans, exterior and interior design; i.e. , paints, stains, wallcoverings, floor coverings, wood grades, plastering techniques, space planning, detail specifications, and furnishings. AGD has provided design services for various projects involving a total of 3,000 residential units in the last three years. AGD has also been involved in several commercial projects, including the restoration of two National Historical Sites. As a sub-contractor, AGD has ,provided total interior specification; this includes estimating, ordering, receiving, warehousing, delivery, installation and follow-through. ALISON GOLWAY DESIGN STAFF AND CONSULTANTS STAFF: -- Alison Golway, Design Consultant and owner, Alison Golway Designs -- Jim Golway, Job Superintendent and Public Relations -- Renee Lewis, Assistant Design Consultant -- Kathy Hubbard, Administrative Assistant and Office Manager CONSULTANTS: -- John Powell, Assistant Designer, Graphic Artist and Research -- Jack Arnold, Licensed paperhanger, 20 years experience -- Barry Hoff, Owner "Classique Drape" drapery workroom -- 10 years experience -- George Eckparian, Owner-operator of G & M Carpet -- 25 years experience RECENT WORK RELATING TO PROPOSED TASK PACIFIC HOMES AGD was retained as a consultant to rehabilitate and refurbish public areas and model apartments of five retirement facilities located in the Los Angeles and San Diego areas. Pacific Homes eras administratively related to the Pacific and Southwest Conference of the United Methodist Church, until its bankruptcy in 1977. Mr. Richard Matthews, the court appointed Trustee for Pacific Homes, retained a planning firm to reorganize the management and administrative staff of Pacific Homes and to advise on establishing a marketing plan for dwelling units within the homes. The planning firm recommended Alison Golway Designs as the consultant for this task. The area of concern for AGD was to inspect the five locations, evaluate the problems of each and prepare estimates and budget proposals for the rehabil- itation of these homes, and do so within a short period of time with very limited funds. The following homes were involved in this project: 1. Kingsley Manor, Los Angeles, California Low income tenants -- Older brick buildings -- Declining Neighborhood 2. Claremont Manor, Claremont, California Middle-income tenants -- Older brick buildings -- Pleasant suburban location 3. Casa Manana, La Jolla, California High income tenants -- Older Mediterranean-style buildings -- Excellent ocean front location 4. Wesley Palms, Los Angeles, California Upper middle income tenants -- Hillside cottages -- Very good location 5. Frederika Manor, Chula Vista, California Middle income tenants -- Newer buildings -- Very drab and institutional -- Fair location RECENT WORK RELATING TO PROPOSED TASK Page 2 Due to the financial problems of Pacific Homes, the maintenance of all five buildings had been deferred. Each of the homes required extensive renovation, and each home had a different social and economic group to appeal to. AGD began its plans with interviews of the administrators of each home, and meetings with the tenant groups. It was dete-rmined that the common areas of each home needed renovation; these areas included lobbies, halls, social and game rooms, dining facilities, pool and patio areas. In order to minimize expenses, each home had two model units renovated and furnished. The units were designed .to show the potential tenant what they could do to create their own environment. The remaining units were renovated as needed for new tenants, this procedure substantially reduced the amount of money necessary to make the homes marketable. Alison Golway Designs established a rehabilitation program with a total budget of $250,000, for all five homes; the work being done in two phases with $125,000 in each phase. AGD served as a consultant, all sub-contractors were hired, and materials ordered on Pacific Homes purchase orders, upon direction of AGD acting as agent for Pacific Homes. The AGD staff handled all cost estimating, budgeting, purchase orders, work-flow scheduling, receiving and installation coordination. AGD negotiated all contracts for work and materials and was responsible for assuring that the rehabilitation was done satisfactorily within the specified time. i MARIPOSA HOUSING TRIANGLE Alison Golway Designs has served since 1975 as contract project designer for a 27 acre redevelopment project in downtown Fresno. Projects involved are: 220 apartment units (Huntington Park Apartments) , 88 condominium units, and a 4.23 net acre commercial convenience shopping center. 124 apartments have been completed; 96 go into construction January 15, 1979. The 88 condo units go into construction March 15, 1979 and the shopping center October 15 , 1979. Alison Golway Designs participated in developing marketing plans for Huntington Park Apartments and was responsible for total design package. Alison Golway Designs performed as sub-contractor for wallcoverings, window coverings, carpet, custom designed seating and bar in the Recreation Building; furnished project office and two model apartments. This included specifying, estimating, ordering, follow-through, receiving, warehousing, delivery and installation. SUNNYSIDE CONDOMINIUM VILLAGE A duplex-triplex complex which is being converted to condominiums before construction. There are 42 one and two bedroom units located at Butler and Winery in Fresno. Alison Golway Designs is serving as design consultant in recommending changes in construction plans as well as specifying up-grade finishes. AGD will perform as a sub-contractor and furnish and install model units. RECENT WORK RELATING TO PROPOSED TASK Page 3 SIMI RANCH LAND COMPANY This development consists of 159 condominium units and 141 one story ranch style single family homes on Tera Rajaha, Road at the west end of Simi. Construction is expected to begin June 1979 through June 1980, although it has been in planning stages since 1977. LAGUNA FALLS CONDOMINIUMS This is a 92 unit apartment project in construction which is being converted to condominiums, located at Ashlan and West in Fresno. AGD is serving as design consultant and sub-contractor in fulfilling responsibilities and needs similar to Huntington Park Apartments and Sunny- side Condominium Village; i.e. , specify, supervise, recommend changes, sub-contract, design, furnish and install models, common area spaces and sales offices. PARKWOOD HOMES Parkwood is a 50 home subdivision in Fresno. Alison Golway Designs is working as design consultant on both phases of this development -- will specify for both exterior and interior finish schedule; supervise quality control in workmanship; design, furnish and install models in both projects; sub- contract finish materials and labor; design and set-up sales offices and display tools, and participate in marketing strategy, advertising and graphic designing. Alison Alden Golway 2881 Huntington Boulevard, Suite 162 Fresno, California '93721 (209) 266-9852 PROFESSIONAL HISTORY * Alison Golway Designs, 2881 Huntington Blvd. , #162, Fresno, CA 93721. Interior Design Consultant and sole owner of design firm with staff of three. Business activity is primarily commercial and residential contract design and sub-contracting with residual being residential retail. * Abbey Office Interiors, 5633 N. Blackstone, Fresno, California 93710. Designer for large commercial contract design firm specializing in offices, banks and institutions. 1. In charge of 1,000 square foot design department and 'library of sources. 2. Design, planning, ordering, receiving and daily movement of inventory for 12,000 square foot showroom floor. 3. Responsible for design development, space planning, specification, cost estimates, ordering and installation on all major projects. 4. Responsible for design, layout, supervision and follow-through on company advertising, publicity, logo design and graphics. * Bullocks of California, Advertising and Publicity Department, 7th and Hill Streets, Los Angeles, California 90006. Production and layout artist, graphic designer, Assistant Director of Public Relations and Publicity, all media. EDUCATION -- California State University, Fresno. Graduate Masters Program. Currently working on Masters' thesis project. MA in Environmental Design (composed of Architecture, Interior Design and Landscape Planning & Design) California State University, Fresno. -- B.A. -- Major in Art (emphasis in graphics and design) Minor in English Literature. RESUME Page 2 HELEN SMADES President - Helen Smades Realty, (Fresno's largest multiple listing broker in residential property}) -- 700 E. Shaw Avenue, Fresno, California 93710 (209) 266-6000. WALT HARRIS Harris Construction Company (Third largest valley construction company) 1505 N. Chestnut, Fresno, California 93703 (209) 251-0301 DONALD M. UNDERDOWN President - Builders Concrete, 3664 Ashlan Avenue, Fresno, California 93726. (209) 225-3664 WM. E. PATNAUDE Partner - Allen Y. Lew & Wm. E. Patnaude, Inc. , Architects. 1050 S. Street , Fresno, California 93721 (209) 486-8150 STEVE BALLS Assistant Vice President - Bank of America, Fresno Agri-Center Branch, 2111 Tuolumne Street, Fresno, California 93721 (209) 488-7613 DWIGHT NELSON Manager - Bank of F'resro, 2304 W. Shaw Avenue, Fresno, California 93711 (209) 431-6400 KARNEY HODGE Vice President of Central Urban Developers President of Hodge & Sons Men's Stores in Fresno (209) 233-4161 UNIT DESIGN The two-bedroom unit is 890 square feet and the one-bedroom is 650 square feet. Exact dimensions appear on the floor plan exhibits presented separately. The proposal includes 120 1-bedroom units and 36 2-bedroom units. A special provision will be made to equipped a percentage of the units for handicapped elderly. This percentage would be set after conversations with local community groups. All units are equipped with special elderly features including grab bars, wider door ways, safety alarm features and security features. Special attention was paid in the unit design to providing an exterior private space with each unit. The ground floor units have extremely large private yards. The second floor units have balconies which extend beyond the overhang of the floor above to bring sunlight and ventilation to the living and bedroom areas of each unit on that floor. The top floor has smaller balconies but they are totally unobscured by any overhang. The bedroom and living rooms are situated to provide maximum natural light exposure from the outdoors. BUILDING CONFIGURATION The buildings ark three stories in height. There are two main buildings, each composed of two wings, joined at a central point. In the junction of the two wings an elevator core provides access to each floor. Asthetics The richness of the design can most easily be understood by referring to the elevations provided under separate cover. Any written com- mentary on the physical beauty of the building could not do justice to its architecture. Efficiency For the elderly, the building design provides the optimum balance in the efficiency of the interior space. Interior hallways could be eliminated through other designs which could be built at a lower cost; this would, however, expose the elderly to the elements and reduce their ability to socialize during inclement weather or during periods when the nights are very cold. Open Space The building configuration does maximize the open space on the site and protects the open space from intruders not welcome by the resi- dents. Access to the large inner courtyard would be controlled by security gates. FINANCIAL FEASIBILITY HOUSING DEVELOPMENT Direct Construction Structures and Site Preparationl $ 5,226,300 Landscaping and Amenity Package 315,000 General Requirements (Construction.Overhead, Equip.)2 SUBTOTAL ON-SITE CONSTRUCTION $ 5,501,300 'Fees And 'Overhead General Overhead (Backof£i�e Construction)3 Architecture - Design @ 47. $ 220,052 Engineering - Civil 5 15,000 Governmental and Utility Fees 50,000 Bond Premium 45,000 SUBTOTAL FEES AND OVElzHE.AD 330,052 TOTAL FOR ALL IMPROVEMENTS $ 5,831,352 Carrying Charges And Financing Construction Interest @ 62% $ 274,300 15 months (construction and initial occupancy) Average Balance $ 3,376,005 6 Taxes During Construction Pe it od 7 -$- Insurance During Construction 8 15,000 Title and Recording 10,000 Construction and Permanent Loan Fee @ 11�,% 84,400 SUBTOTAL CARRYING CHARGES AND FINANCING $ 383,700 Legal And Organizational Legal - Governmental Documentation and Processing $ 35,000 Legal - Financing 25,000 Legal - Project 10,000 Organizational (Development Overhead; Travel; Processing 12,000 Costs) Accounting 15,000 SUBTOTAL LEGAL AND ORMNIZATIONAL $ 97,000 TOTAL ESTIMATED DEVELOPMENT COST $ 6,312,052 2 Trended; site preparation covered by City equals $100,000. 3 Includes some City fees; computed as 5% of structures; included in structures, 4 Computed as 27. of structures; included in structures and site. Structures, land planning, landscape, interior design, and mechanical and structural engineering. Estimate, subject to confirmation; Balance of City fees reflected in 6 -construction budget. 7 Average balance is 60% of mortgage. Assumes site -preparation work through March 1 Tax Lien date with Lease 8 Effective date of MUrch 2. Includes Insurance during "construction period" rent-up which is to be carried by operations budget. ROBERT J. RODINO ASSOCIATES 2114 North Broadway Santa Ana, California 92706 (7.14) _ 558-7264 i May 11, 1977 Mr. Edward D. Selich Director Department of Planning and Environmental Resources City of Huntington Beach P.O. Box 190 Huntington Beach, California 92648 Dear Mr. Selich: We are pleased to submit our first report: A Survey of the Downtown- Oldtown Area of Hungtington Beach-Census Tract 993.02, in connection with our work on the Community Analysis Project. The report represents a response to the Planning Departments'request that we depart from our original schedule and prepare a .survey of the Downtown-Oldtown area first. We .are happy to accommodate this request. Please feel free to call me on any matter discussed in this report. p ` Very truly yours, Robert Rodino i i b Los Angeles Office : 1047 Gayley Avenue , Suite 201 , Los Angeles , Ca. 90024 . ROBERT J. RODINO ASSOCIATES 2114 North Broadway Santa Ana, California 92706 ' (714) 558-7264 I A SURVEY OF THE DOWNTOWN-OLDTOWN AREA OF HUNTINGTON BEACH CENSUS TRACT 993.02 May 11, 1977 Submitted to: Department of Planning and Environmental resources City of Huntington Beach, California Los Angeles Office: 1047 Gayley Avenue , Suite 201 , Los Angeles, Ca. 90024 INTRODUCTION This report summarizes a survey made of all properties in census tract 993.02, the "Downtown-Oldtown" area of Huntington Beach. The sur- vey was conducted by RODINO ASSOCIATES during the period from April 19 t n_ough P,,iay '6, 1977•. The survey consists of three parts: 1. A detailed count of the residential dwelling units in the area, and a categorization of the condition of each unit as being standard or sub-standard as judged solely from the exterior. Stand:�aLrd units were further subdivided into "over 5 years of age" and "New-5 years old or less". Sub-standard was further described as rec_uiring minor rehabilitation, moderate rehabilitation, or major rehabilitaion/demolition. 2. Residential and vacant land resales in the area for the period from June 1976 to January 1977• 3. A count of the number of non-residential properties in the area including commercial industrial, governmental, property under censtruction, 'vacant land, parking lots, oil property and chi -rches. The detailed count of all properties in the area was conducted by a ccireined walk-through and drive-through the area. Each dwelling unit was physically counted by the consultants either from the exterior, or by entering the foyer of multiple-dwellings and counting mail boxes. In some cases dwelling units in the back of the main structure or over gar- ages were not always accessible or obvious from the street. Every effort was made to include such units in the survey, but in the interests of minimizing trespassing on private property, some of these may have been missed. Also, efforts were made to avoid duplicate counts or under- counting at intersections when the cross-street had been already counted. In all,the consultants have calculated that a maximum error factor of.+/- 100 units or about 3.5o could have been involved in the survey. No attemptwas made to count the number of stores or offices in commercial properties since the emphasis of the project is on resident- ial rehabilitation and r_edevelopement. Similarly, no distinction was made among the number of separate parcels of vacant land that lay side- . - -1- - by-side within a continuous block of vacant lots. The categories of sub-standard conform to general paint and fix- up for minor rehabilitation, roughly corresponding to a cost range of $500.0041,500.00; a cost range of $1,500.00-$6,500.00 for moderate reha,b- ilitation, and over $6,500.00 for units requiring major rehabilitation or demolition. Major rehabilitation and demolition were combined because it is difficult to distinguish the two from an exterior survey. During the next five and one-half weeks detailed interior and exterior scope and cost of rehabilitation analysis will be conducted in the area and will provide data with which to distinguish major rehabilitation units =Tom those requiring replacement. SURVEY RESULTS The boundaries of census tract 993-02 are Lake Street, Palm Avenue, Golden West, and the Pacific Coast Highway. Table 1 describes the resid- ential summary -or the census tract. The total number of units in the area were Bete--mined to be 2,641. The figure is lower by 84 units than -U e Huntington Beech Planning Department figures published in the 197" Housing Element, and 210 units lower than the 1973 census estimates. The latter difference is primarily in the area of buildings with five or more units. The single family dwelling unit count of 784 is effectively equal to the estimate .of 774,:in the census data. There are several important observations that should be made from table 1. The largest single category of dwelling units is 1060 units constructed within the last five years. This indicates a healthy growth in the area that will tend favor the success of -rehabilitation and re- development efforts that may be undertaken in the area. The next largest category of dwelling units are the 916 sub-stand- I and units. This figure should be compared to SCAG's 1975 estimate of 1261 and 1980 estimate of 2800 units needing rehabilitation or replace- meet, for the whole city. -2- The smallest category of dwelling units is 665 standard units over five years of age. Together the three categories indicate that the area, as a whole, is undergoing a transition from primarily older units to prim- arily newer ones; however, in the section south of 15th Street where ,most of the older sub-standard dwelling units exist, little rehabilitation or redevelopment activity is underway. A review of pages comprising Table IV indicates a fairly abrupt trr._..nsitien in the area at about 15th Street. To the north an extensive amount of new construction is underway, with a considerable amount of t vacant land sill to be built upon. The new construction presents the City with an oppDrtunity to utilize this growing market for revitalizing I the old downtown area. Within the sub-standard category older single family units pre- dominate (528 houses ` ) , as expected, Fbwever, a surprisingly large number of units, 1209) in the "five or more" category need. assistance, mostly r paint and fix-up. This is a potentially dangerous situation because absentee owner buildings can deteriorate quickly without effective code enforcement and appropriate rehabilitation,financing. A common pattern am�_ong the 82 "five or more" units requiring moderate rehabilitation to major/demolition are very small "one-room" units built in an attached fws'-pion around a, small courtyard. The units were probably originally beach cottages but are now used a5year-round dwellings. Table II describing resale activity in the area indicates a very active market in all building categories. No FHA or VA financing in the area has occurred. Sales were totally financed through conventional or all cash transactions. Table III summarizes the survey of non-residential properties in the area. Many of the commercial/industrial properties in the area re- quire rehabilitation and in some cases replacement. Greater details on i this issue can be provided if needed. -3- i Vacant land is primarily located in the area above 15th Street. _ Oil properties are distributed throughout the area, and in many cases provide an unsightly quality to residential streets. These areas could benefit from the planting of covering shrubery arou4 the pumps as on Golden West Street. The area on the beach in the northern section of the area could particularly benefit from this treatment. Development of the eastside of Pacific Coast Highway could be made more attractive if these oil pumps on the beach were hidden by shrubery. The condition of the streets in the area under new construction is particularly poor and consideration should be given to either req- u!_-r-Lng the developers to make improvements or to establish a City- sponsored public works project. No attern-ot has been made for this report, to provide a thorough neighborhood analysis. Such activities will be accomplished during the next phase of the project. A final word on data. The information summarized in this report _ is described on a parcel-by-parcel basis on a cassette tape and on a detailed street-by-street basis in the consultants notes. This data car: be made available to the Planning Department in the event that a grewter level of information detail is required. i I E I . i TABLE I RESIDENTIAL SUHrIARY FOR CENSUS TRACT 993.02 Census/ Standard Sub-Standard Tract Total Over Minor Moderate Major/ Units Units 5 years New Total Rehab. Rehab. Demolition 993.02 -- 1 Family 784 163 93 528 174 204 150 2-4 Family 860 201 480 179 98 63 18 5 or more 997 301 487 209 127 71 11 TOTALS 2641 665 10 00 916 399 338 179 Total Standard 1725 Total Sub-Stand. 916 TABLE II RESALES — JUNE 1976-January 1977 .No. of Units Total $ Volume Average sales price 1 Family $1,015','.200 7, 80 2 Units 961,000 106,778 3 Units 491,950 98,390 4 Units 1,726,500 156,954 5 Units 293,000 97,667 6 Units ;447,500 149,167 10 Units .241,500 241,500 Vacant Land 247,000 49,400 TABLE III NON-RESIDENTIAL PROPERTY SUMMARY CENSUS TRACT 993.0 2 Under Commercial/ Vacant Parking Street Construct. Industrial Gov't. Land Lot Oil Churches, Lake 4 1 2 Walnut 22 15 3 16 P.C.H. 27 1 12 4 10 Olive 2 1j 6 1 Orange 3 14 1 6 1 Pecan 2 8 2 1 2nd St. 1 5 2 3rd St. 7 4 3 Hain 81 2 2 7 5th St. 24 1 2 3 6th St. 3 2 4 2 7 1 7th St. 4 3 1 8th St. 2 4 1 1 9th St. . 2 1 loth St. 4 2 1 1 llth St. 6 3 2 1 2 12th St. 2 13th S t. 14th St. 3 1 15th St. 7 _. 3 16th St. 17th St. 11 1 8 1 2 18th St. 10 1 9 2 19th St. 8 6 1 20th St., 20 9 4 21,t.St. 7 8 3 22nd St. 4 Acacia St. 4 2 1 Palm St. 1 1 9 l TOTALS 49 - 20 9 179 30 75 7 i r Architects Gateway Plaza,190 Newport Center Drive,Newport Beach,California 92660 Planners Telephone:(714)644-5670 Engineers December 20, 1978 Bissell/August Stephen V. Kohler Department of Planning and Environmental Resources City of Huntington Beach Post Office Box 190 Huntington Beach, California 92648 Dear Steve: Our firm is interested in being considered as consultants to the City of Huntington Beach in your efforts to revitalize the central business district. We have performed similar services for the cities of Garden Grove, Placentia, Anaheim (current), Santa. Ana (current), and Fullerton (current). Enclosed is some data on our firm and also we encourage you to contact the following persons as to our qualifications for this work: John Graichen, Garden Grove - (714) 638-6673 Dick Gobl i rsch, Santa Ana - (714) 834-4851 Susan Shi ck, Anaheim - (714) 533-8750 Hugh Berry, Fullerton - (714) 525-7171 Arnie Hamala, Placentia - (714) 993-8124 Should you -have any questions or desire additional information, please give me a call. Sincerely, G orge Bissell, FAIA GB:sc Enc. Principals George Bissell,FAIA Frank August Robert Lawson Glen Gellatly James Arthur NEW ISSUE Under existing statutes, regulations and court decisions, interest on the 1978 Series A Bonds is exempt, in the opinion of Bond Counsel and Special Tax Counsel, from present Federal income taxes and from personal income taxes imposed by the State of California and by the municipalities and other political subdivisions of the State. Interest may, however, be taxable by the United States of America on any 1978 Series A Bonds held by a substantial user of the facilities financed with the proceeds of the 1978 Series A Bonds or a related person. $121675,000 Redevelopment Agency of the City of Fresno (Fresno County, California) RESIDENTIAL (MORTGAGE REVENUE BONDS, 1978 SERIES A Dated August 1, 1978 Due September 1, as shown below Interest is payable on March 1, 1979 and semiannually thereafter on September 1 and March 1 in each year. The 1978 Series A Bonds will be coupon bonds in denominations of $5,000 each, registrable as to principal only, and fully registered bonds in denominations of$5,000 each or any integral multiple thereof, all payable at the principal corporate trust office of Wells Fargo Bank, N.A., San Francisco, California, the Trustee under the Resolutions. The 1978 Series A Bonds are subject to optional, mandatory and special redemption prior to maturity under certain circumstances, all as described hereinafter. Proceeds of the 1978 Series A Bonds will be used to purchase qualified federally or privately insured or federally guaranteed Mortgage Loans on newly constructed residential housing units within designated areas of the City of Fresno, California, to make required deposits into the Debt Service Reserve Fund and to pay Costs of Issuance of the 1978 Series A Bonds. The 1978 Series A Bonds are special obligations of the Agency and are payable solely from and secured by Revenues, Mortgage Insurance Proceeds, Mortgage Loans purchased by or on behalf of the Agency, and all Funds and Accounts held by the Trustee pursuant to the Resolutions authorizing the 1978 Series A Bonds, all as defined and described hereinafter and all subject to the Resolutions. The 1978 Series A Bonds will not constitute general obligations of the Agency and will not be payable. from any of the Agency's other revenues, moneys or assets. Neither the faith and credit nor the taxing power of the City of Fresno, the State of California or of any other political subdivision thereof is pledged for the payment of the 1978 Series A Bonds. Principal Interest Principal Interest Amount Due Rate Price Amount Due Rate Price $190,000 1981 5.25% 100% $335,000 1991 6.50% 100% 280,000 1982 5.50 100 335,000 1992 6.60 100 330,000 1983 5.60 100 335,000 1993 6.70 100 360,000 1984 5.70 100 335,000 1994 6.80 100 390,000 1985 5.80 100 340,000 1995 6.85 100 400,000 1986 5.90 100 350,000 1996 6.85 100 385,000 1987 6.00 100 360,000 1997 6.90 100 370,000 1988 6.10 100 375,000 1998 6.90 100 365,000 1989 6.25 100 380,000 1999 6.90 100 355,000 1990 6.40 100 380,000 2000 6.90 100 $3,530,000 7.00% Term Bonds due September 1, 2010 Price 100% $2,195,000 7.10% Term Bonds due September 1, 2019 Price 100% (Accrued interest to be added) The 1978 Series A Bonds are offered when, as and if issued and received by the Underwriters, subject to the approval of legality by Jones Hall Hill&White,San Francisco, California, Bond Counsel for the Agency. Certain legal matters will be passed on by O'Connor, Cavanagh, Anderson, Westover, Killingsworth & Beshears, P.A., Phoenix, Arizona, Counsel for the Underwriters and Special Tax Counsel, and by Mudge Rose Guthrie & Alexander, New York, New York, Special Bond Counsel for the Underwriters. It is expected that the 1978 Series A Bonds in temporary form will be available for delivery in San Francisco, California, on or about August 31, 1978. It is expected that the 1978 Series A Bonds in definitive form will be available for delivery in San Francisco, California, on or about September 7, 1978. Bache Halsey Stuart Shields August 30, 1978 INCORPORATED IN CONNECTION WITH THIS OFFERING,THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 1978 SERIES A BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. No dealer, broker, salesman,or any other person has been authorized by the Redevelopment Agency of the City of Fresno or the Underwriters, to give any information or to make any representations other than as contained in this Official Statement in connection with the offering described herein, and if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer of any securities other than those described on the cover page or an offer to sell or a solicitation of any offer to buy in any jurisdiction in which it is unlawful for such person, organization or corporation to make such offer, solicitation or sale. The information contained in this Official Statement has been furnished by the Redevelopment Agency of the City of Fresno and other sources which are believed to be reliable. No representation or warranty is made,however,as to the accuracy or completeness of such information and nothing contained in this Official Statement is, or shall be relied on as, a promise or representation by the Underwriters. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the information set forth herein since the date hereof. These securities have not been registered with the Securities and Exchange Commission by reason of the exemption contained in Section 3(a)(2) of the Securities Act of 1933, as amended. The registration or qualification of these securities in accordance with applicable provisions of securities laws of the states in which these securities have been registered or qualified and the exemption from registration or qualification in other states shall not be regarded as a recommendation thereof. Neither these states nor any of their agencies have passed upon the merits of the securities or the accuracy or completeness of this Official Statement. Any representation to the contrary may be a criminal offense. TABLE OF CONTENTS Page Page Bond Principal Amounts,Maturities,Coupon Rates and Special Redemption Provisions ................................ 18 Prices ............................................................................. over General Provisions..................................................... 18 Introduction ...................................................................... 3 Notice of Redemption of Bonds............................... 18 TheAct.............................................................................. 5 Additional Bonds ...................................................... 18 The Agency........................................................................ 5 Assumptions Regarding Revenues and Debt Service Administration of the Agency.................................... 5 Requirements ................................................................ 19 Redevelopment Project Areas................................... 6 Bondholders'Risks ........................................................... 22 Security for the 1978 Series A Bonds ............................... 6 Summary of Certain Provisions of the General Resolu- RevenueFund............................................................ 7 tion.................................................................................. 23 _ Mortgage Reserve Fund ........................................... 8 Other Programs of the Agency Debt Service Reserve Fund .................. g .......................................... 31 •••••••••••••••••••• 8 General Information Concerningthe City Application of 1978 Series A Bond Proceeds .................. 9 Y..................•••••• 31 PP Tax Exemption.................................................................. 34 Residential Mortgage Loan Program .............................. 9 Litigation........................................................................... 35 General ...................................................................... 9 Need for the Residential Mortgage Loan Program. 12 Certain Legal Matters....................................................... 35 Participation by the Mortgage Lenders.................... 12 Ratings............................................................................... 35 Commitments ............................................................ 12 Underwriting..................................................................... 36 ` Commitment Term.................................................... 15 Legality for Investment .................................................... 36 Mortgage Selling Contract........................................ 15 Miscellaneous.................................................................... 36 Servicing of Mortgage Loans.................................... 16 Appendix A—Summary of Certain Federal and Private The 1978 Series A Bonds.................................................. 16 Mortgage Insurance and Guaranty Programs and Description ................................................................ 16 Disposition of Certain Defaulted Mortgage Loans in Mandatory Redemption Provisions ......................... 17 California Optional Redemption Provisions ............................. 17 Appendix B—Certain Definitions This Table of Contents does not list all of the subjects contained in this Official Statement and in all instances reference should be made to the complete Official Statement to determine all of the subjects set forthh herein. 2 OFFICIAL STATEMENT OF THE REDEVELOPMENT AGENCY OF THE CITY OF FRESNO (Fresno County, California) Relating to its $12,675,000 RESIDENTIAL MORTGAGE REVENUE BONDS, 1978 SERIES A This Official Statement (including the cover page and appendices) is being distributed by the Redevelopment Agency of the City of Fresno, Fresno County, California (the "Agency"), a.public body, corporate and politic, of the State of California,in order to furnish information in connection with the sale of the Agency's Residential Mortgage Revenue Bonds, 1978 Series A (the"1978 Series A Bonds"),in the aggregate principal amount of $12,675,000, issued pursuant to a resolution adopted by the Agency on August 29, 1978 (the"General Resolution"), and a Series Resolution authorizing the issuance and sale of the 1978 Series A Bonds, adopted by the Agency on August 29, 1978 (the "1978 Series A Resolution"). The General Resolution,together with the 1978 Series A Resolution, are hereinafter referred to collectively as the "Resolutions." Pursuant to the General Resolution, all bonds issued thereunder are equally and ratably secured by the pledge and covenants contained therein. All such bonds,including the 1978 Series A Bonds, are herein sometimes referred to as the"Bonds." Additional Series of Bonds maybe issued on a parity with the 1978 Series A Bonds, provided that each additional Series is authorized by a Series Resolution adopted in accordance with and under the provisions of the General Resolution and the Act. The Agency has not heretofore issued any Bonds or Notes under the General Resolution. This Official Statement contains words wherein the initial letter is of upper case and the remaining letter or letters are of lower case by reason of such words being defined terms used in this Official Statement. Where not defined in the body of this Official Statement,reference should be made to "Certain Definitions"set forth as Appendix B hereof. The summaries or references to the Act,the General Resolution, the 1978 Series A Resolution and the agreements referred to herein, and the description of the 1978 Series A Bonds, which are included in this Official Statement, do not purport to be comprehensive or definitive, and such summaries, references and descriptions are qualified in their entireties by reference to each such document, statute or instrument. INTRODUCTION Pursuant to the Act, the Agency has established a Residential Mortgage Loan Program (the "Program") under which the Agency will issue Notes and Bonds to provide funds to purchase Mortgage Loans made for the purpose of financing Residential Construction, which Mortgage Loans are to be secured by Mortgages on (i) new residential housing units and certain integrally related commercial structures located within Redevelopment Project Areas or (ii) under certain circumstances,new residential housing units located outside the boundaries of Redevelopment Project Areas. The Act contains no limitation on the principal amount of bonds or notes that may be issued by a redevelopment agency. The General Resolution provides that all Mortgage Loans made or purchased by or on behalf of the Agency with the proceeds of Bonds shall be insured or guaranteed by an instrumentality of the United States government or by private mortgage insurance companies licensed to insure mortgages in the State, provided that the private mortgage insurance company and the Private Mortgage Insurance meet certain requirements established under the General Resolution. For a summary of certain Federal and Private 3 Mortgage Insurance and guaranty programs see Appendix A. Proceeds of Bonds issued pursuant to the Act may also be used to provide moneys for deposit into various Funds and Accounts established under the General Resolution. See "Application of Bond Proceeds"herein. Simultaneously with the issuance and delivery of the 1978 Series A Bonds, the Agency will issue and deliver its Residential Mortgage Loan Program Notes, 1978 Series A and 1978 Series B (the"Notes") in an aggregate principal amount not to exceed $8,638,600. Pursuant to the Residential Mortgage Loan Program, the Trustee, acting as Note Trustee (the"Note Trustee"), on behalf of the Agency, will initially purchase qualified Mortgage Loans (other than one Mortgage Loan to be originally purchased from proceeds of the 1978 Series A Bonds) with,moneys to be made available under the Notes. As Mortgage Loans are delivered for purchase, the Note Trustee will draw against the Notes in an amount equal to the principal amount, plus accrued interest, of,the Mortgage Loans to be purchased. Amounts drawn against the Notes will become due August 1, 1980 (the "Note Maturity Date"). Delivery of the 1978 Series A Bonds is contingent upon sale and delivery of the Notes in an aggregate principal amount of$8,638,800. It is anticipated that the Trustee will purchase,from proceeds of the 1978 Series A Bonds, a Mortgage Loan with respect to Huntington Park Apartments Phase I in the outstanding principal amount of $2,342,800. The proceeds from the sale of the 1978 Series A Bonds (other than accrued interest, amounts to be used to purchase the Mortgage Loan referred to in the preceding sentence, amounts applied to the Costs of Issuance of the 1978 Series A Bonds and the Notes and the amount deposited in the Debt Service Reserve Fund) will be deposited in trust and held by the Trustee in the Mortgage Purchase and Loan Account and invested in Permitted Investments in principal amounts and maturing on such dates as shall be necessary to provide for the purchase of Mortgage Loans from the Note Trustee as hereinafter described. Prior to the purchase of Mortgage Loans from the Note Trustee with the proceeds of the 1978 Series A Bonds, the 1918 Series A Bonds will be secured by and payable solely from the Mortgage Loan with respect to Huntington Park Apartments Phase I,the moneys deposited in the Mortgage Purchase and Loan Account and the Debt Service Reserve Fund. On the Note Maturity Date, moneys held in the Mortgage Purchase and Loan Account shall be applied by the Trustee under the General Resolution to the purchase of the Mortgage Loans from the Note Trustee, the proceeds of such purchase being applied by the Note Trustee to the repayment of amounts due under the Notes. An .amount equal to principal repayments on Mortgage Loans received by the Note Trustee prior to the sale of the Mortgage Loans to the Trustee will be transferred from the Mortgage Purchase and Loan Account to the Revenue Fund for payment of debt service on the, 1978 Series A Bonds. Any amounts remaining in the Mortgage Purchase and Loan Account shall be applied to the redemption of 1978 Series A Bonds or, under certain conditions, may be held for an additional year and used to purchase Mortgage Loans during that period. See "The 1978 Series A Bonds—Special Redemption Provisions"herein. The 1978 Series A Bonds are special obligations of the Agency and are payable solely from and secured, to the extent provided in the Resolutions, by a pledge of(i) all Mortgage Loans purchased, (ii) Revenues, (iii) Mortgage Insurance Proceeds, and (iv) Funds and Accounts held by the Trustee pursuant to the Resolutions. Such pledge shall be valid and binding from and after the time of delivery by the Agency of the first Bond delivered under the Resolutions. The 1978 Series A Bonds do not constitute general obligations of the Agency or the City and the 1978 Series A Bonds are not payable from any of the Agency's other revenues, moneys or assets or from any revenues, moneys or assets of the City. See "Security for the 1978 Series A Bonds"herein. Neither the faith and credit of the Agency nor the full faith and credit or taxing power of the City is pledged in any manner to the payment of the Principal Installments or Redemption Price, if any, or the interest on the 1978 Series A Bonds. The Agency has no taxing power. 4 Through the execution of Reservation of Funds Application and Commitment Contracts (the "Commitment Contracts") with United California Mortgage Company, San Francisco, California, and Wells Fargo Mortgage Company,San Francisco,California,the Agency has agreed,subject to the sale and delivery of the 1978 Series A Bonds and the Notes, to purchase an aggregate of$10,977,400 of Mortgage Loans. THE ACT Chapter 8 (commencing with Section 33750) of Part I of Division 24 of the Health and Safety Code of the State (the "Act") authorizes redevelopment agencies to provide construction and permanent financing for (i) new residential construction and construction of integrally related commercial structures within redevelopment project areas, or (ii) new residential construction in which the dwelling units are committed, for the period during which the mortgage loan is outstanding, for occupancy by persons.or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of such residences. The Act provides that an agency may not finance mortgage loans which have not been authorized by prior written agreement between the agency and the Participating Party. All agreements for such loans shall provide that the architectural and engineering design of the residential construction shall be subject to such standards as may be established by the agency and that such residential construction shall be subject to such supervision as the agency deems necessary. The constitutionality of the Act, under the Constitution of the State;has been affirmed by a Court of Appeal of the State in Redevelopment Agency of the City of San Pablo v. Shepard, 75 Cal. App. 3d 453 (1977), with respect to the particular questions raised in said case. The Supreme Court of California, the highest court in the State, denied a petition for hearing. Also see "Litigation" herein. THE AGENCY The Redevelopment Agency of the City of Fresno (the "Agency") was activated in 1956 pursuant to the Community Redevelopment Law (Part I of Division 24 of the California Health and Safety Code) by the then City Commission of the City of Fresno (now the City Council). The organizational meeting of the Agency was held in November 1956. On April 1, 1976, the City Council, pursuant to the authority granted by Section 33200 of the Community Redevelopment Law, declared itself to be the governing body of the Agency. At the same time, the City Council created the City Housing and Community Development Commission, consisting of former Agency members,to serve the City Council (in its capacity as the governing body of the Agency) in an advisory capacity. Administration of the Agency The seven current members of the Agency, their term expiration dates and professions are as follows: Name Term Expires Profession Daniel K. Whitehurst April 1981 Attorney and Mayor and Chair- Businessman man of the Agency Elvin C. Bell April 1979 Public Relations Mayor Pro Tern and Vice-Chairman of the Agency Joel Crosby April 1979 Minister Dale Doig April 1981 School Teacher Linda Mack April 1981 Member,City Council Joe Williams April 1981 Director,Fresno County Economic Opportunities Commission Ted C. Wills April 1979 Retired Union Official 5 f The City's acting Chief Administrative Officer, Mr. James E. Aldredge, serves as the Agency's Executive Director. Prior to being selected as the acting Chief Administrative Officer in 1978, Mr. Aldredge served the City and the County in various capacities, including City Manager pro tem (1975- 1978), Assistant City Manager (1971-1975), Deputy City Manager (1966-1971), District Coordinator of the Fresno County Economic Opportunities Program (1964-1966) and Assistant Supervisor, Municipal Playgrounds and Sports Program, Fresno Recreational Department (1962-1964). He holds a Master of Arts degree in Public Administration from Fresno State University, a Bachelor of Science degree in Therapeutic Recreation from Fresno State University and is a candidate for a PhD in Public Adminis- tration from the University of Southern California. Mr. James Hendricks, former Executive Director of the Agency, assumed his present position of Assistant Chief Administrative Officer of the City when the Agency staff was assimilated into the City government in 1976. He holds a Bachelor of Science degree in Political Science from Fresno State University. Mr. Hendricks is a member of the Board of Governors of the National Association of Housing and Redevelopment Officials. Mr. Charles E. Figg, Director of the Department of Housing and Community Development, is responsible for the day-to-day administration of the Agency. Mr. Figg was appointed to his present position in August 1976, having previously served as Deputy Executive Director of the Agency (1970- 1976) and Manager of Land Acquisition for the Agency (1969-1970). He holds a Master of Business Administration degree from the University of California (Berkeley) and a Bachelor of Arts degree in Economics from Michigan State University. Mr. Walter E. Berg has served as Controller and Finance Director of the City since 1958 and of the Agency since 1956. He was in the United States Air Force during the Second World War, where he attained the rank of Major. Mr. Berg holds a Bachelor of Business Administration degree from Fresno State University. Ms. Jacqueline L. Ryle has been City Clerk of the City of Fresno since 1967 and is Clerk ex officio of the Agency. She received a Bachelor of Arts degree in public service from the University of San Francisco in 1978 and is currently the President of the Central California Division, City Clerks Association of California, Chairperson of the Public Relations Committee of the International Institute of Municipal Clerks,Vice President of the Board of Directors of the Consumers Credit Counselors of Fresno and Second Vice President of the City Clerks Association of California. Redevelopment Project Areas The Agency has designated, by the adoption of a final plan, eight areas within the City as Redevelopment Project Areas. A summary of these project areas is provided below and under "Other Programs of the Agency"herein. Project Area Project Area Plan Adopted (Acres) South Angus Street Project Area 1959 89 Central Business District Project Area 1961 89 West Fresno Project One Area 1964 46 West Fresno Project Two Area 1963 108 West Fresno Project Three Area 1961 34 Southwest Fresno General Neighborhood Renewal Area 1968 1900 Mariposa Project Area 1969 200 Fruit/Church Project Area 1971 138 SECURITY FOR THE 1998 SERIES A BONDS The 1978 Series A Bonds are special obligations of the Agency payable solely from and secured,to the extent provided in the Resolutions, by a pledge of Revenues, Mortgage Loans purchased, Mortgage Insurance Proceeds, and all Funds and Accounts held by the Trustee pursuant to the Resolutions. Escrow Payments and the Escrow Payment Fund are held by the Mortgage Lender(s) and are not pledged to the payment of the Bonds. The 1978 Series A Bonds do not constitute general obligations of the Agency or the City and the 1978 Series A Bonds are not payable out of any of the Agency's other revenues, moneys or assets or from any revenues, moneys or assets of the City. 6 Revenue Fund Pursuant to the General Resolution, all Revenues and Mortgage Insurance Proceeds shall be credited to the Revenue Fund and the Trustee shall make disbursements therefrom in the manner,in the order and with the priority as follows: (A) On the first day of each calendar month, commencing six (6) months prior to the first Interest Payment Date, and after any moneys therein have been applied, the Trustee shall transfer from the Revenue Fund to the Interest Fund an amount equal to one-sixth (1/6th) of the Interest Requirement payable on the next succeeding Interest Payment Date. (B) On the first day of each calendar month, commencing twelve (12) months prior to the first Principal Installment Date, and after any moneys therein have been applied,the Trustee shall transfer from the Revenue Fund to the Principal Fund an amount equal to one-twelfth (1/12th) of the amount by which the Principal Installment payable on the next succeeding Principal Installment Date exceeds the aggregate amount of Sinking Fund Installments required to be made on such date. (C) On the first day of each calendar month, commencing thirteen (13) months prior to the date on which the first Sinking Fund Installment is required to be made, and after any moneys therein have been applied,the Trustee shall transfer from the Revenue Fund to the Sinking Fund an amount equal to one-twelfth (1/12th) of the aggregate amount of the Sinking Fund Installments payable on the Principal Installment Date which is less than fourteen and more than one month after such day. Such moneys shall be applied to the Sinking Fund Account without preference or priority of any such account over any other such account. (D) On the first day of each calendar month, commencing on the first day of the month next succeeding the delivery of the first series of Bonds pursuant to the General Resolution, the Trustee shall transfer from the Revenue Fund to the Mortgage Reserve Fund all Revenues remaining in the Revenue Fund after making the allocations and transfers provided in paragraphs (A), (B) and (C) above. Such transfers must continue until the total aggregate amount so transferred is equal to the Mortgage Principal and Interest Reserve Requirement. (E) On the first day of each calendar month, commencing on the first day of the month next succeeding the delivery of the first series of Bonds pursuant to the General Resolution, the Trustee shall transfer from the Revenue Fund to the Mortgage Reserve Fund an amount equal to one-twelfth (1/12th) of the Mortgage Expense Reserve Requirement until the full amount thereof as established by an Officer's Certificate has been so transferred. (F) After making the allocations and transfers provided for in paragraphs (A), (B), (C), (D) and (E) above,if the balance in the Debt Service Reserve Fund is less than the Debt Service Reserve Requirement, the deficiency shall be restored from available funds in the Revenue Fund. (G) After making the allocations and transfers provided for in paragraphs (A), (B), (C), (D), (E) and (F) above, if the balance in the Mortgage Reserve Fund is less than the Mortgage Reserve Requirement, the deficiency shall be restored from available funds in the Revenue Fund. (H) On the first day of each calendar month, commencing on the first day of the month next succeeding the delivery of the first series of Bonds,the Trustee shall pay to the Agency for deposit into the Operating Fund any remaining amounts in the Revenue Fund, up to the amount set forth in the annual budget adopted pursuant to the General Resolution, plus any additional sums deemed necessary by the Trustee to reserve against contingent expenses and liabilities. (1) Any surpluses remaining in the Revenue Fund after making the allocations and transfers provided for in the preceding subsections shall be transferred to the Prior Redemption Fund and (except for surpluses resulting from transfers from the Mortgage Revenue Fund pursuant to Section 609(3) of the General Resolution) (i) transferred to the Mortgage Purchase and Loan Account for application to the purchase of additional Mortgage Loans, or (ii) applied, to the extent that the amounts thereof are in excess of$25,000, to the purchase or call and redemption of Bonds. Any additional Mortgage Loans to be purchased must have a yield when combined with other available Revenues and Mortgage Insurance Proceeds, if any, will be sufficient to pay Principal Installments and interest on the Bonds. 7 Mortgage Reserve Fund The General Resolution establishes a Mortgage Reserve Fund and requires that it be funded in an amount equal to the Mortgage Reserve Requirement. The Mortgage Reserve Requirement consists of a Mortgage Principal and Interest Reserve Requirement, defined in the General Resolution as an amount equal to 1%of the aggregate unpaid principal balance of federally insured or guaranteed Mortgage Loans held by the Trustee on behalf of the Agency plus 10% of the total of(i) the aggregate unpaid principal amount of all other Mortgage Loans held by the Trustee on behalf of the Agency plus (ii) the aggregate amount in the Mortgage Purchase and Loan Accounts at the time of calculation, and a Mortgage Expense Reserve Requirement, which shall be the amount, if any, determined by an Officer's Certificate to be maintained to meet costs or expenses described in subparagraph (ii) in the third paragraph of this subsection. The Mortgage Reserve Fund will be funded initially by the deposit of an amount equal to the discount on Mortgage Loans purchased by the Trustee, all excess Revenues in the Revenue Fund remaining after the required monthly transfers to the Interest Fund,Principal Fund and Sinking Fund,any amounts remaining in the Note Mortgage Reserve Fund upon purchase by the Trustee of all Mortgage Loans held under the Note Fund, and a portion of the commitment fees paid by Mortgage Lenders. In addition, the Agency has appropriated the sum of $300,000 from available funds for deposit with the Trustee in a special fund to be held for the purpose of providing moneys to bring the amounts on deposit in the Mortgage Reserve Fund to the Mortgage Principal and Interest Reserve Requirement as of August 1, 1980. For a further description of the methods of funding the special fund, see "Bondholders'Risks" herein. Interest income on such special fund may be released to the Agency upon presentation to the Trustee of an Officer's Certificate. The Agency anticipates that the Mortgage Principal and Interest Requirement component of the Mortgage Reserve Requirement will be accumulated in the Mortgage Reserve Fund by August 1, 1980, the Note Maturity Date. Under the provisions of the Reservation of Funds Application and Commitment Contract, upon notification of sale and delivery of the 1978 Series A Bonds by the Agency, each Mortgage Lender having executed a commitment contract shall be liable for a commitment fee equal to 1% of the principal amount of the Mortgage Loans committed to be delivered to the Agency for purchase. The commitment fee may be paid in cash or, in the alternative, the Mortgage Lender may present to the Trustee an irrevocable letter of credit in an equivalent amount, given by a bank acceptable to the Trustee. The Trustee will hold such cash payment or letter of credit for the benefit of the Agency and will draw upon such cash deposit or letter of credit if, and to the extent that, on the Note Maturity Date, the moneys on deposit in the Mortgage Reserve Fund, exclusive of those moneys deposited in satisfaction of the Mortgage Expense Reserve Requirement, are less than the Mortgage Principal and Interest Reserve Requirement. Moneys in the Mortgage Reserve Fund will be transferred by the Trustee (i) to the Interest Fund, Principal Fund or Sinking Fund, to the extent required to meet deficiencies therein, for the payment of Principal Installments of and interest on the Bonds, or (ii) to such persons named in a Requisition filed with the Trustee for the payment of unpaid Escrow Payments and Mortgage foreclosure fees, including appraisal and legal fees and similar expenses required to preserve or acquire unencumbered title to property through the protection or enforcement of the Trustee's rights conferred by law or the applicable Mortgage Loan. Moneys in the Mortgage Reserve Fund in excess of the Mortgage Reserve Requirement shall be transferred to the Prior Redemption Fund. Debt Service Reserve Fund The General Resolution establishes a Debt Service Reserve Fund and requires that it be funded in an amount equal to the Debt Service Reserve Requirement. The Debt Service Reserve Requirement is an amount equal to the maximum Principal Installments and interest payable in any succeeding Fiscal Year on the aggregate principal amount of all Bonds issued and Outstanding under the General Resolution. An amount equal to the Debt Service Reserve Requirement will be deposited into the Debt Service Reserve Fund from the 1978 Series A Bond proceeds. In the event moneys available to the Trustee for the payment of Principal Installments,premiums,if any, and interest on the Bonds are not otherwise sufficient, after withdrawals from the Mortgage Reserve Fund and the Prior Redemption Fund, the Trustee will withdraw an amount equal to such deficiency from the Debt Service Reserve Fund to enable the Trustee to make such payment. Moneys in the Debt Service Reserve Fund in excess of the Debt Service Reserve Requirement shall be transferred to the Revenue Fund. 8 Amounts in the Mortgage Reserve Fund and Debt Service Reserve Fund are not available for the payment of principal and interest on any bonds of the Agency other than Bonds issued under the General Resolution. APPLICATION OF 1978 SERIES A BOND PROCEEDS The Agency expects that the proceeds from the sale of the 1978 Series A Bonds (exclusive of amounts representing accrued interest, which shall be deposited into the Interest Fund) will be applied approximately as follows: Purchase of Mortgage Loans (principal amount) .................................. $10,981,600 Deposit into Debt Service Reserve Fund................................................. 1,170,000 Provision for Costs of Issuance and Bond Discount................................ 523,400 $12,675,000 Pursuant to the 1978 Series A Resolution, the proceeds of the 1978 Series A Bonds (other than accrued interest, amounts applied to the Costs of Issuance of the 1978'Series A Bonds and the Note, and the amount deposited into the Debt Service Reserve Fund) will be held in trust in the Mortgage Purchase and Loan Account. It is anticipated that a Mortgage Loan, in the principal amount of$2,342,800, with respect to Huntington Park Apartments Phase I will be purchased within sixty days of delivery of the 1978 Series A Bonds. For a description of Huntington Park Apartments Phase I, see "Residential Mortgage Loan Program—Commitments"herein. The remaining proceeds of the 1978 Series A Bonds held in the Mortgage Purchase and Loan Account will be invested in Permitted Investments pending the purchase of Mortgage Loans from the Note Fund. RESIDENTIAL MORTGAGE LOAN PROGRAM General Under the Residential Mortgage Loan Program, the Trustee, on behalf of the Agency, will commit to purchase and purchase Mortgage Loans from participating Mortgage Lenders. The Mortgage Loans will provide permanent and construction financing for newly constructed housing units (including both single- family and multi-family units) and integrally related commercial structures located in Redevelopment Project Areas of the City and, under certain circumstances, newly constructed housing units located within the City and outside Redevelopment Project Areas. All units must be constructed in accordance with applicable federal,state and local standards or such higher standards as may be prescribed by the Agency. Each Mortgage Loan will be an interest bearing obligation secured by a Mortgage which constitutes or creates a first lien on real property, including the improvements thereon, subject to encumbrances permitted under the Program. In order for a Mortgage Loan to qualify for purchase by the Agency,it must create a first deed of trust and lien upon real property and improvements in the City, as required by the Act; have been certified by the Mortgage Lender as a prudent investment for its own account (with the exception of the interest rate); and meet one of the following two conditions: (i) The Mortgage Loan shall have been,or a firm commitment shall have been received that the Mortgage Loan will be,finally endorsed for insurance or guaranty by an instrumentality.of the United States government; or (ii) The Mortgage Loan shall be made in an amount not exceeding 95% of the Fair Market Value,provided that there has been,or a firm commitment shall have been received that there will be, issued a mortgage insurance policy by a private mortgage insurance company licensed to insure mortgages in California, qualified to provide insurance on mortgages purchased by the Federal National Mortgage Association ("FNMA"), or the Federal Home Loan Mortgage Corporation ("FHLMC") and approved by the Agency, under which the insurer, upon foreclosure or other recovery proceeding and conveyance of a marketable title to the mortgaged property, must pay a claim including unpaid principal, accrued interest and certain expenses of foreclosure or other 9 recovery proceeding or in lieu thereof may permit the mortgagee or its assignee to retain title and may pay an agreed percentage of the claim. All Mortgage Loans in excess of 90%up to and including 95% of the Fair Market Value shall require 40% primary private insurance coverage on the outstanding principal balance of such Mortgage Loans; all Mortgage Loans in excess of 80% and up to and including 90% of Fair Market Value shall require 35% primary private insurance coverage on the outstanding principal balance of such Mortgage Loans;all Mortgage Loans in excess of 70%and up to and including 80%of Fair Market Value shall require 25%primary private insurance coverage on the outstanding principal balance of such Mortgage Loans;all Mortgage Loans in excess of 60%and up to and including 70%of Fair Market Value shall require 15%primary private insurance coverage on the outstanding principal balance of such Mortgage Loans; and all Mortgage Loans 60% and less of Fair Market Value shall require a minimum of 10%primary private insurance coverage on the outstanding principal balance of such Mortgage Loans. The Resolutions permit the purchase of Mortgage Loans insured or guaranteed by instrumentalities of the United States [which would include, without limitation, the Federal Housing Administration ("FHA"), the Veterans Administration ("VA") and the Small Business Administration ("SBA")) in addition to those Mortgage Loans insured by qualified Private Mortgage Insurers. The amount of Mortgage Loans insured under Section 245 of the National Housing Act of 1934, as amended, which provides for graduated payments of principal and interest, will be limited to not more than 25% of the aggregate principal amount of Mortgage Loans purchased. Although the Resolutions permit the purchase of Mortgage Loans related to certain commercial properties, the Agency does not anticipate the purchase of any such Mortgage Loans from the proceeds of the 1978 Series A Bonds. No representation is made as to the ability of the Private Mortgage Insurers to make payments under their policies of Mortgage Insurance at the time and in the amount specified in such policies. It is anticipated that,within sixty days of the delivery of the Series 1978 Bonds,the Trustee, on behalf of the Agency, will purchase a Mortgage Loan insured by the FHA under Section 221(d)(4) of the National Housing Act of 1934, as amended, with respect to Huntington Park Apartments Phase I. In addition, it is anticipated that both construction and permanent financing will be provided under the Program for Huntington Park Apartments Phase II, and that the Mortgage Loan with respect thereto will also be insured by the FHA under Section 221(d)(4) of the National Housing Act of 1934, as amended. Both Huntington Park Apartments Phase I and Phase II are multi-family apartment projects located or to be located in the Mariposa Project Area. See "Residential Mortgage Loan Program—Commitments" herein. The Mortgage Loans (other than Construction Loans and Mortgage Loans with respect to Huntington Park Apartments Phase I and Phase 11) are (i) to be made at an interest rate of 8.25% which is approximately 1.225% greater than the net interest cost of the 1978 Series A Bonds, (ii) to have terms of not more than 30 years and not less than 20 years, and (iii) to be payable in substantially equal monthly installments of principal and interest. Construction Loans will be at a rate of 8%, may be purchased only with the proceeds of the Note described below and must be converted into permanent financing prior to purchase by the Trustee. Mortgage Loans to provide permanent financing for Huntington Park Apartments Phase I and Phase II are (i) to be made at an interest rate of 6.75% which is approximately .275%less than the net interest cost of the 1978 Series A Bonds, (ii) to have terms of 40 years and (iii) to be payable in substantially equal monthly installments of principal and interest. It is estimated that the aggregate payments on Mortgage Loans with respect to which commitments have been received by the Agency will provide funds sufficient to pay Principal Installments and interest on the 1978 Series A Bonds and other amounts due under the Resolutions. The Agency has not established any upper income limitations for persons owning or occupying the Residences to be financed with the Mortgage Loans. As noted above,it is anticipated that the Trustee,on behalf of the Agency,will purchase the Mortgage Loan with respect to Huntington Park Apartments Phase I within sixty days of delivery of the 1978 Series A Bonds. The Trustee will purchase the Mortgage Loan at a discount of 1'h%of the outstanding principal amount thereof and will transfer an amount equal to such discount from the Mortgage Purchase and Loan Account to the Mortgage Reserve Fund. Additional Mortgage Loans and all Construction Loans will be 10 purchased by the Trustee, acting as Note Trustee,on behalf of the Agency, from the proceeds of the Notes to be issued simultaneously with the issuance of the 1978 Series A Bonds. As Mortgage Loans are delivered for purchase, the Note Trustee will, on the date of purchase, draw against the Notes in an amount equal to the principal amount of the Mortgage Loans plus accrued interest. Each Mortgage Loan (other than Construction Loans) will be purchased at a discount of 1'h% of the outstanding principal amount thereof. Construction Loans will be purchased at a discount equal to 1'h% of the aggregate principal amount of the Construction Loan,including future advances,committed to be insured by FHA as of the date of purchase. The Note Trustee will transfer an amount equal to such discount from the Note Fund to the Note Mortgage Reserve Fund. The Mortgage Loans purchased from the proceeds of the Notes will be maintained by the Note Trustee under and for the credit of the Note Funds established pursuant to the resolutions authorizing the issuance of the Notes (the"Note Resolutions") and pledged as security for the Notes until such Mortgage Loans are purchased with the proceeds of the 1978 Series A Bonds, as described below. Amounts drawn against the Notes will become due two years from the date of issuance of the Notes. On the Note Maturity Date, the Trustee, acting as Trustee under the General Resolution, will apply proceeds held under the Mortgage Purchase and Loan Account to the purchase of Mortgage Loans held by the Note Trustee, together with an assignment of Mortgage Insurance Proceeds on defaulted Mortgage Loans assigned to the insurer, at a purchase price equal to the unamortized principal balance of the Mortgage Loans being held in the Note Funds, plus accrued interest... The proceeds of such purchase by the Trustee will be deposited by the Note Trustee into the Note Revenue Funds and used, together with other moneys on deposit in the Note Revenue Funds, to pay the amounts due on the Notes. An amount equal to principal repayments on Mortgage Loans received by the Note Trustee prior to the sale of the Mortgage Loans to the Trustee will be transferred from the Mortgage Purchase and Loan Account to the Revenue Fund for payment of debt service on the 1978 Series A Bonds. Upon, and to the extent of, the purchase of the Mortgage Loans from proceeds of the 1978 Series A Bonds held in the Mortgage Purchase and Loan Account and upon the deposit of the moneys held in the Note Mortgage Reserve Funds established pursuant to the Note Resolutions into the Mortgage Reserve Fund, the Trustee will apply Mortgage Loan repayments to the payment of Principal Installments and interest on the 1978 Series A Bonds. See "Security for the 1978 Series A Bonds"herein. The proceeds of the 1978 Series A Bonds held in the Mortgage Purchase and Loan Account, other than proceeds to be used to purchase the Mortgage Loan with respect to Huntington Park Apartments Phase I and to make the deposit to the Mortgage Reserve Fund with respect thereto, will be invested in Permitted Investments which will mature on or before two years from the date of the Note. It is expected that the income generated by the Mortgage Loan with respect to Huntington Park Apartments Phase I and investments of moneys in the Mortgage Purchase and Loan Account, the Debt Service Reserve Fund and the Mortgage Reserve Fund will be at least equal, in the aggregate, to the interest payable on the 1978 Series A Bonds during such period. If that portion of the proceeds of the 1978 Series A Bonds held in trust and intended to be used for the purchase of Mortgage Loans is not fully used to purchase Mortgage Loans by the end of two years from the date of issue of the 1978 Series A Bonds, the Agency may continue to make commitments to purchase and the Trustee, on behalf of the Agency, will purchase Mortgage Loans, so long as the income received on the investment of the unused proceeds, plus any other moneys available for the payment of Principal Installments and interest on the 1978 Series A Bonds, will be sufficient to pay the scheduled Principal Installments and interest on the 1978 Series A Bonds when due. If the Agency is unable to invest the unused proceeds in such a manner as to generate the required cash flow, the Agency will be required to use the unused proceeds to redeem a portion of the 1978 Series A Bonds equal to the unused proceeds as soon as possible after determination is made that such unused proceeds cannot be so invested and after giving the appropriate notice of redemption required by the Resolutions. All 1978 Series A Bond proceeds intended for the purchase of Mortgage Loans must be so used within three years of the date of the 1978 Series A Bonds and, if not so used, must be used to redeem 1978 Series A Bonds within said three year period. See "The 1978 Series A Bonds—Special Redemption Provisions"herein. 11 Need for the Residential Mortgage Loan Program The redevelopment plans for the residential areas within the Redevelopment Project Areas, which Redevelopment Project Areas include, in the aggregate, approximately 2600 acres, envision the construc- tion of a substantial number of new multi-family and single family residences. The Agency has established the Residential Mortgage Loan Program to serve as a catalyst and incentive for the development of new residences within the Redevelopment Project Areas. Under the Program, the Agency will provide funds for the purchase of qualified Mortgage Loans through the sale of its Notes and Bonds in amounts based on commitments received from Mortgage Lenders to deliver a specified principal amount of Mortgage Loans within a predetermined commitment period. The commitments of the Mortgage Lenders will be given in connection with the expressed requirements of homebuilders, developers and owners undertaking new residential construction within the Redevelopment Project Areas of the City. Participation by the Mortgage Lenders The Agency has approved United California Mortgage Company, San Francisco, California and Wells Fargo Mortgage Company, San Francisco, California for participation in the Program as eligible Mortgage Lenders based upon their status as FHA and VA approved mortgagees in good standing and as Federal National Mortgage Association ("FNMA") approved sellers/servicers and consideration of insured mortgage loan production and servicing history, the identity and resumes of key operating personnel and financial condition. United California Mortgage Company and Wells Fargo Mortgage Company have executed Reserva- tion of Funds Application and Commitment Contracts (the "Commitment Contracts") in the aggregate principal amounts of$4,521,400 and $6,456,000, respectively, and have paid application fees in amounts equal to 1/100 of 1% of the commitment amount requested. In light of the requirement that each Mortgage Lender be at all times a FHA and VA approved mortgagee and a FNMA approved seller/servicer,the Agency believes that United California Mortgage Company and Wells Fargo Mortgage Company will be able to fulfill their obligations. However, if United California Mortgage Company or Wells Fargo Mortgage Company is unable to meet such obligations, the Agency believes that it will be able to avoid any adverse effects thereof by reallocating commitments,obtaining another Mortgage Lender as seller and/or servicer and exercising its remedies against United California Mortgage Company or Wells Fargo Mortgage Company. (See "Purchase of Mortgage Loans" and "Servicing of Mortgage Loans"below.) Commitments The Commitment Contracts obligate United California Mortgage Company and Wells Fargo Mortgage Company to enter into Home Mortgage Selling Contracts within 5 days of receipt from the Agency of a notification of sale and delivery of the 1978 Series A Bonds and to pay a 1%commitment fee on the principal amount of Mortgage Loans to be delivered and sold to the Agency. In the alternative, the Mortgage Lenders may satisfy their obligations for the payment of the commitment fee by presenting to the Trustee an irrevocable letter of credit given by a bank acceptable to the Trustee in an amount equal to the commitment fee. The Trustee will hold the cash payment or letter of credit in a trust account in favor of the Agency. The moneys on deposit or letter of credit will be used, to the extent necessary, to fund the Mortgage Reserve Fund on the Note Maturity Date. See "Security for the 1978 Series A Bonds—Mortgage Reserve Fund" herein. The Commitment Contracts establish maximum rates for the Mortgage Loans which will, in the aggregate, include an amount sufficient to. pay debt service, to provide for Agency operating expenses and a servicing fee of 1/8of 1%per annum of the outstanding principal balance on each single-family Mortgage Loan and '/8 of 1% per annum of the outstanding principal balance on the Mortgage Loans relating to Huntington Park Apartments Phase I and Phase II. The Commitment Contracts also set forth a purchase price of 98'/2%of the unpaid principal amount of Mortgage Loans other 12 than Construction Loans and a purchase price for Construction Loans equal to the outstanding principal amount less 1'/2%of the aggregate amount of the Construction Loan,including future advances,committed to be insured by FHA. The Mortgage Lenders will be permitted to charge an origination fee of up to 1'h% of the principal amount of each Mortgage Loan. The terms of the Commitment Contracts permit the Agency, in its discretion, to reduce any Mortgage Lender's commitment amount by up to 25%in the event that the actual amount of the 1978 Series A Bond proceeds available for the purchase of Mortgage Loans is less than the aggregate amount of all commitments, except that in no event will any commitment be reduced below $100,000. The Agency will review all applications for Mortgage Loans prior to purchase by the Trustee and the Agency reserves the right to reject any Mortgage Loans which have not been approved by the Agency prior to the making of such Mortgage Loan by the Mortgage Lender. All Mortgage Loans to be purchased by the Trustee on behalf of the Agency are to be closed by the Mortgage Lender during the commitment period and delivered to the Trustee for purchase no later than 45 days after the commitment period expiration date. In the event the Mortgage Lender fails to deliver the Mortgage Loans pursuant to the commitment granted by the Agency, the Agency may extend the commitment period. In the event the Mortgage Lender does not deliver Mortgage Loans in an amount equal to the commitment, and the Agency does not find reason to extend the commitment period, the Mortgage Lender will forfeit its commitment fee and become subject to the payment of liquidated damages in an amount no greater than 2%of the amount of the unfulfilled commitment. The principal amount of Mortgage Loans to be delivered under the Committment Contract submitted by United California Mortgage Company represents the Mortgage Loan which United California Mortgage Company has made with respect to Huntington Park Apartments Phase I ("Phase I") and the Mortgage Loan which United California Mortgage Company expects to make for the construction and permanent financing of Huntington Park Apartments Phase II ("Phase II"), both of which are located or to be located in the Mariposa Project Area. Phase I, construction of which was completed in December, 1977, is a 124 unit apartment project located on a 5.2 acre site leased from the Agency at "R" Street and Huntington Boulevard. Phase I is presently 96% occupied. The number and types of units, unit area and current monthly rental (exclusive of utility bills) are as follows: Number and Unit Area Basic Monthly Unit Type (Square Feet) Rental 60 one bedroom,one bath.............................. 673 $210-220 32 two bedroom,one bath.............................. 839 250-270 32 two bedroom,two bath.............................. 934 270-285 The apartment buildings are two-story structures with balconies on the second floor apartments and fenced patios on the ground floor apartments. The buildings are of wood frame construction with textured stucco exteriors and dark-stained wood trim and exposed beams. The roofs are red tile in the California Spanish style architecture. The units contain a gas range, electric refrigerator, disposal, dishwasher, air conditioner and exhaust fans. Phase II, a 96 unit apartment project,is planned for construction on 4.1 acres of land to be purchased from the Agency contiguous to the Phase I site. The proposed type of apartments,size and monthly rentals are as follows: Basic Monthly Number and Unit Area Rental Unit Type (Square Feet) Per Unit 27 non-designer,one bedroom,one bath....... 673 $255 45 designer,one bedroom,one bath.............. 673 270 10 non-designer,two bedroom,one bath....... 839 275 6 designer,two bedroom,one bath................ 839 290 8 designer,two bedroom,two bath................ 934 310 13 It is anticipated that the buildings in Phase II will be designed,constructed and equipped in a manner similar to that of Phase I. A swimming pool and furnished recreation room with two sauna baths constructed in conjunction with Phase I and two tennis courts planned for Phase 1I will be available for residents of both complexes. A firm commitment for mortgage insurance for Phase II under Section 221(d)(4) of the National Housing Act of 1934, as amended, has been issued by HUD. Phase I and Phase II are owned by two separate California limited partnerships, the general partners of which are: Thomas E. Perkins, Robert N. Klein, Jr. and Central Urban Developers, Inc. Mr. Thomas E. Perkins has more than twenty years experience in the financial, estate and tax planning fields. He has operated in California since 1970 as Thomas E. Perkins and Associates,Inc. Prior to 1970, Mr. Perkins held management positions with two major insurance companies. In the insurance field, Mr. Perkins has achieved the designations of chartered life underwriter and membership in the Million Dollar Round Table. He also holds a license as a registered principal with the National Association of Securities Dealers. Mr. Robert N. Klein, Jr. holds a Bachelor of Arts degree in History from Stanford University and a Juris Doctorate degree from Stanford Law School and is a member of the California Bar. His involvement in real estate dates to 1963 when he assumed management of his family's commercial land holding company. Since 1971, Mr. Klein has focused his development activity primarily on residential rental properties and has managed the development of over 600 units of residential rental housing and approximately 274 single family condominium and detached units,with an additional 300 units in various stages of preconstruction development. In November 1971, Mr. Klein established a real estate consulting partnership and in May 1972, Mr. Klein founded Central Urban Developers,Inc.,the developer of Huntington Park Apartments Phase I and Phase II and Huntington Park Condominiums. From September 1973 to September 1975, his consulting partnership served as the principal consultant to the California Legislature's Joint Senate/Assembly Committee on Community Development and Housing. Mr. Klein has been actively involved as a consultant with respect to the drafting of various items of California legislation dealing with the financing of housing. Mr. Klein has also served as a consultant to the California Department of Savings and Loans and to the California Housing Finance Agency. Central Urban Developers, Inc., is a California corporation, the majority of the stock of which is owned by Mr. Klein who also serves as President and Chairman of the Board of the Corporation. Central Urban Developers,Inc.was the developer of Phase I and proposes to develop Phase II and the Huntington Park Condominiums described below. The principal amount of Mortgage Loans to be delivered under the Commitment Contract submitted by Wells Fargo Mortgage Company, represents the Mortgage Loans which Wells Fargo Mortgage Company expects to make to purchasers of individual units in the Huntington Park Condominiums, an 88- unit condominium project proposed to be developed by Central Urban Developers, Inc., on an approximate 7.25 acre site adjacent to the sites of Phase I and Phase 11. The number and types of units proposed, unit area and estimated sales prices are as follows: Number and Type Unit Area Estimated of Unit (Square Feet) Sales Price 16 two bedroom,two and one half bath plus den............................................................... 1,700 $69,600 to $ 80,000 32 three bedroom,two and one half bath...... 1,640 $67,100 to $77,200 32 Double master bedrooms, two and one half bath....................................................... 1,440 $58,900 to $67,800 4 two bedroom, two and one half bath plus den............................................................... 1,850 $75,700 to $ 87,100 4 three bedroom,two and one half bath........ 1,998 $81,800 to $94,100 14 The units will be built in stages with an estimated completion date of March 1980. The range in estimated sales prices for each type of unit reflects estimated increases in costs during the period of construction. The presently anticipated mix of unit types is subject to change to reflect market demand for the different types of units. The 88 condominium units will be two story townhouses with ground floor patios, a woodburning fireplace and a two car garage for each unit. The buildings are to be of wood frame construction with textured stucco exteriors and heavy use of exterior wood. The present plans provide for each unit to contain a built-in stove and oven (with optional microwave oven), disposal, dishwasher, air conditioner j and exhaust fan. The design calls for guest parking on the grounds, two tennis courts, a pool and club house and a security gate at the entrance to the gounds. An application for a loan to provide the construction financing for the Huntington Park Condominium project is presently being finalized for submission to the developer's construction lenders. Commitment Term The Commitment Contracts stipulate a two year commitment period for all of the Mortgage Loans to be delivered under the Commitment Contracts. The length of the commitment term was established by the Agency on the basis of its judgment as to the length of time required for the developer on behalf of which the Commitment Contracts were executed to complete construction, effect a sale of the units, have the purchasers close the respective Mortgage Loans with the Mortgage Lenders and have the Mortgage Lenders deliver the Mortgage Loans, properly recorded, to the Trustee. Mortgage Selling Contract With respect to each Mortgage Loan to be purchased by the Agency, the participating Mortgage Lender will enter into a Mortgage Selling Contract with the Agency which contains certain representations and warranties by the Mortgage Lender, including among others, representations and warranties that on the date each Mortgage Loan is sold to the Trustee,on behalf of the Agency: (i) the Mortgage Lender has no knowledge of any circumstances or conditions with respect to the Mortgage Loan (other than the interest rate), the mortgaged property, the Mortgagor or his or her credit standing that could reasonably be expected to cause prudent private investors to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage Loan to become delinquent, or adversely affect the value or marketability of the Mortgage Loan; (ii) the Mortgage Lender has complied with applicable laws and rules and regulations of the federal insurance or guarantee program or the terms and conditions of the Private Mortgage Insurance on the Mortgage Loan, as the case may be; (iii) the Mortgage constitutes a valid first lien on the mortgaged property subject only to encumbrances permitted under the Program; (iv) the Mortgagor is not then in default in the payment of any installment of principal or interest, escrow funds, real property taxes or otherwise in default of his or her obligations under the Mortgage documents; and (v) there has been full compliance with the relevant requirements of any State or federal laws, rules or regulations governing consumer credit and fair housing. Upon the Trustee's or Agency's request the Mortgage Lender is required to permit representatives of the Agency, including the Trustee, to examine or audit any or all of its records or accounts pertaining to any Mortgage Loan. The Mortgage Selling Contract incorporates by reference a Mortgage Selling Contract Supplement prepared by the Agency and distributed to all Mortgage Lenders, which prescribes detailed procedures governing the origination and sale by the Mortgage Lenders of Mortgage Loans to the Trustee acting on behalf of the Agency. Should any Mortgage Lender deliver Mortgage Loans which are not in compliance with the terms of the Mortgage Selling Contract, or in the event that any warranty made by a Mortgage Lender with respect to any Mortgage Loan is found to be untrue, the Trustee, on behalf of the Agency, is entitled to all remedies provided by law, including, but not limited to, the right to tender such Mortgage Loan to the Mortgage Lender for repurchase or terminate the Mortgage Selling Contract. 15 Servicing of Mortgage Loans To ensure that all Mortgage Loans to be purchased by the Trustee on behalf of the Agency will be serviced by a qualified Servicer, each Mortgage Lender participating in the Program as a seller will be required, at the time of execution of its Mortgage Selling Contract, to submit a Mortgage Servicing Contract executed by the Mortgage Lender (or other qualified Mortgage Lender) to the Agency and the Trustee. The Mortgage Servicing Contract provides for termination of such agreement by the Agency and the Trustee,jointly, upon 30 days'notice to the Servicer and without penalty if a Servicer fails to fulfill its obligations as summarized below. However, the Agency may terminate the Mortgage Servicing Contract at its option upon payment to the Servicer of an amount equal to '/2 of 1%of the then outstanding principal amount of Mortgage Loans being serviced by that Servicer. Each Mortgage Servicing Contract stipulates certain duties and responsibilities of the Servicer including, among others: (i) to collect and to deposit in an interest bearing custodial account held for the benefit of the Agency all repayments on the Mortgage Loans and to forward to the Trustee monthly those portions of Mortgage Loan payments applicable to principal and interest on each Mortgage Loan after deducting the allocable portion of the servicing fee (3/8 of 1% per annum of the outstanding principal amount of each single family Mortgage Loan and 1/8 of 1% per annum with respect to the Mortgage Loans relating to Huntington Park Apartments Phase I and Phase II), (ii) to deposit those payments applicable to taxes, insurance premiums and other charges in an Escrow Payment Account established for such purpose, such account to be held in trust for the benefit of both the Agency and the respective Mortgagors in a financial institution approved by the Agency the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, (iii) to pay from the Escrow Payment Account so established all taxes, insurance premiums and other charges when due, and (iv) to assure that all property covered by each Mortgage Loan is insured by a fire, flood and extended coverage insurance policy issued by an insurance company acceptable to the Agency, which insurance shall be in an amount at least equal to the unpaid principal balance of the Mortgage Loan or the maximum insurable value of the improvements to the mortgaged property, whichever is less. Each Servicer covenants in its Mortgage Servicing Contract that it shall, among other things: (i) maintain errors and omissions insurance and fidelity insurance in amounts acceptable to the Agency; (ii) maintain adequate books and records, such books and records to be available for examination by the Agency at any time; (iii) give special attention and due diligence to obtain payment of past due amounts; (iv) maintain the Mortgage Insurance in full force and effect; (v) maintain its good standing as both a FHA and VA approved mortgagee and also an approved seller/servicer for FNMA; and (vi) indemnify the Agency and hold it harmless from any loss,damages or expenses the Agency may sustain as a result of any failure on the part of the Servicer to perform properly its services, duties and obligations under the Mortgage Servicing Contract. The Mortgage Servicing Contract incorporates by reference and is supplemented by a Mortgage Servicing Contract Supplement prepared by the Agency and distributed to all Servicers, which prescribes detailed procedures governing the servicing of Mortgage Loans purchased by the Agency and assigned to the Trustee under the Program. THE 1978 SERIES A BONDS Description The 1978 Series A Bonds are to be issued in the aggregate principal amount of$12,675,000 and will be dated and will bear interest from August 1, 1978, payable March 1, 1979 and semiannually thereafter on September 1 and March 1 in each year. The 1978 Series A Bonds will mature on September I in each of the years from 1981 to and including 2000,on September 1,2010, and on September 1,2019, all as shown on the cover page of this Official Statement. Definitive 1978 Series A Bonds will be issued in coupon form in the denominations of $5,000, registrable as to principal only, and in fully registered form in the denominations of$5,000 or any integral multiples thereof. Coupon and fully registered 1978 Series A Bonds will be exchangeable at the office of the Trustee. 16 Principal of, Redemption Price, if any, and interest on the 1978 Series A Bonds will be payable at the principal corporate trust office of Wells Fargo Bank, N.A., San Francisco, California, Trustee. Mandatory Redemption Provisions The 1978 Series A Bonds maturing September 1, 2010, are subject to mandatory redemption in part by lot on September 1, 2001, and on each September 1 thereafter to and including September 1, 2009, at the principal amount thereof and accrued interest thereon, without premium, from funds in the Sinking Fund in the years and amounts as follows: Year Amount Year Amount 2001...................................... $375,000 2006...................................... $365,000 2002...................................... 375,000 2007...................................... 360,000 2003...................................... 370,000 2008...................................... 350,000 2004...................................... 370,000 2009...................................... 350,000 2005...................................... 365,000 2010 (maturity)................... 250,000 The 1978 Series A Bonds maturing September 1, 2019, are subject to mandatory redemption in part . by lot on September 1, 2011, and on each September 1 thereafter to and including September 1, 2018, at the principal amount thereof and accrued interest thereon, without premium, from funds in the Sinking Fund in the years and amounts as follows: Year Amount Year Amount 2011...................................... $205,000 2016...................................... $275,000 2012...................................... 215,000 2017...................................... 295,000 2013...................................... 235,000 2018...................................... 310,000 2014...................................... 240,000 2019 (maturity)................... 165,000 2015...................................... 255,000 Amounts of annual Sinking Fund Installments shown in the table above are subject to reduction as a result of the application of the Prior Redemption Fund. The amount of each future Sinking Fund Installment will be reduced on a pro rata basis (in $5,000 increments) such that the total amount of such reductions equals the aggregate principal amount of the 1978 Series A Bonds maturing on September 1, 2010 or September 1, 2019, as the case may be, so purchased or redeemed. Optional Redemption Provisions The 1978 Series A Bonds maturing on and after September 1, 1989 are subject to redemption on or after September 1, 1988, at the option of the Agency,from any source of available funds,either as a whole on any date, or in part, on any Interest Payment Date, in inverse order of maturity and by lot within a maturity, at the following Redemption Prices plus accrued interest to the date of redemption: Redemption Prices (Expressed as a Period Percentage (Both Dates Inclusive) of Principal Amount) September 1, 1988 to August 31, 1991 ......................................................... 103% September 1, 1991 to August 31, 1994......................................................... 102% September 1, 1994 to August 31, 1997......................................................... 101% September 1, 1997 and thereafter................................................................. 100% 17 Special Redemption Provisions The 1978 Series A Bonds are also subject to redemption, at the option of the Agency, by operation of the Prior Redemption Fund, in whole or in part, by lot within a maturity, at any time on or after the Note Maturity Date (August 1, 1980), at the principal amount thereof and accrued interest thereon, without premium, from (1) surpluses in the Mortgage Reserve Fund, (2) proceeds of the 1978 Series A Bonds held in the Mortgage Purchase and Loan Account and designated to be used to purchase Mortgage Loans from the Note Trustee on such date, but which are not so used, and (3) Prepayments of Mortgage Loans made with the proceeds of the 1978 Series A Bonds in excess of Prepayments required to pay a portion of Principal Installments on the 1978 Series A Bonds. See "Assumptions Regarding Revenues and Debt Service Requirements—Prepayments"herein. General Provisions Bonds shall be purchased or redeemed.only upon receipt by the Trustee of a certificate signed by an Authorized Officer of the Agency and stating the following: (a) the Series of Bonds to be purchased or redeemed; (b) the maturities within such Series from which Bonds are to be purchased or redeemed; (c) the principal amount and maximum price of the Bonds within such maturities to be purchased or redeemed; (d) if any of the Bonds to be purchased or redeemed are subject to mandatory redemption,the years in which the Sinking Fund Installments are to be reduced and the amount of such reductions; and (e) that the purchase or redemption of the Bonds will not have any material adverse effect on the Agency's ability to continue to pay Principal Installments and interest on Outstanding Bonds after such purchase or redemption. If less than all Bonds of a given maturity are to be redeemed, the Bonds to be redeemed within the maturity shall be selected by lot. Notice of Redemption of Bonds When the Trustee receives notice from the Agency,pursuant to the provisions of the Resolutions,of its election to redeem Bonds, the Trustee will give notice to Bondholders of such redemption which will specify the series and maturities of the Bonds to be redeemed, the redemption date and the places where the amounts due upon redemption will be payable. Such notice will be given by publication in an Authorized Newspaper, not less than 25 nor more than 60 days prior to the redemption date. The Trustee will also mail a copy of such notice to the owner of any registered Bonds to be redeemed, but failure to mail such notice will not affect the validity of the redemption. Additional Bonds The General Resolution permits the issuance of additional Bonds thereunder to provide funds for the purposes set forth in the General Resolution and, in addition, to refund Outstanding Bonds issued under the General Resolution. Any additional Bonds issued under the General Resolution will.be on a parity with the 1978 Series A Bonds and will be entitled to the equal benefit, protection and security of the provisions, covenants and agreements of the General Resolution, provided that upon the issuance of any such additional Bonds there will be deposited in the Debt Service Reserve Fund so much of the proceeds thereof as is required to establish the amount therein at, or to increase the amount therein to, the Debt Service Reserve Requirement. Issuance of additional Bonds is conditioned upon the Agency's filing with the Trustee an Officer's Certificate setting forth (i) a schedule of anticipated Mortgage Insurance Proceeds and Revenues to be derived from all sources, including without limitation any additional Mortgage Loans proposed to be purchased or made, investment of funds in Permitted Investments, and any estimated Prepayments on Mortgage Loans (as to which the Officer's Certificate shall state that the Agency expects that such Prepayments will be made on or before the projected dates of Prepayment in such schedule); (ii) a schedule of Principal Installments of and interest on all Bonds which will be Outstanding after the issuance of the additional Bonds, giving effect to any proposed call and redemption of Bonds; (iii) that amount by which the amount set forth in the schedule required under (i) exceeds the amount set forth in the schedule required under (ii); and (iv) the conclusion of the Agency that the anticipated Mortgage Insurance Proceeds and Revenues, together with any other amounts to be held in the Interest Fund, the Principal Fund, the Sinking Fund, the Mortgage Reserve Fund and the Debt Service Reserve Fund, will be at least sufficient, after the issuance of the additional Bonds, to pay, as and when due, all of such Principal Installments and interest. 18 ASSUMPTIONS REGARDING REVENUES AND DEBT SERVICE REQUIREMENTS General The Agency has estimated that Revenues to be received with respect to the Mortgage Loans to be purchased with the proceeds of the 1978 Series A Bonds, together with (i) earnings on the Mortgage Reserve Fund and the Debt Service Reserve Fund, (ii) permitted withdrawals from the Mortgage Reserve Fund and the Debt Service Reserve Fund and (iii) earnings derived from the investment of proceeds of the 1978 Series A Bonds until the Trustee's purchase of Mortgage Loans on behalf of the Agency will be sufficient to pay the Principal Installments of and interest on the 1978 Series A Bonds, Trustee's and Paying Agent's fees and expenses, and certain other operating expenses of the Agency. Under the General Resolution, Operating Expenses are paid after the payment of debt service and such Trustee's and Paying Agent's fees and expenses and replenishment of the Mortgage Reserve Fund and Debt Service Reserve Fund. Operating Expenses may also be paid from any other moneys legally available to the Agency for such purpose. The estimates of the Agency are based principally upon the following assumptions: (1) that the Mortgage Loans will be purchased by the Trustee on behalf of the Agency with the proceeds of the 1978 Series A Bonds on or prior to August 1, 1980, in a principal amount of $10,981,400 and at the prices and rates of interest described hereinbefore under the heading "Residential Mortgage Loan Program"; (2) that the Mortgage Loans will be paid on a timely basis in accordance with their terms and, except for estimated Prepayments on Mortgage Loans which were taken into account as a source of payment of a portion of the principal of the 1978 Series A Bonds, as described hereinafter under "Prepayments," such Mortgage Loans will not be prepaid or otherwise terminated prior to maturity, or if prepaid or otherwise terminated prior to maturity, the proceeds thereof will be immediately applied in accordance with the provisions of the Resolutions (a) to invest in Permitted Investments or to reinvest in Mortgage Loans having terms which provide repayments which, when combined with other Revenues,will provide moneys sufficient to meet payments of Principal Installments and interest on the 1978 Series A Bonds and other payments due, (b) to the redemption of Outstanding Bonds or (c) to the payment of Principal Installments and interest on the 1978 Series A Bonds; (3) that Prepayments will not be less than the amount taken into account in scheduling the Principal Installments; (4) that the proceeds of the 1978 Series A Bonds deposited in the Mortgage Purchase and Loan Account, in anticipation of purchasing Mortgage Loans from the Note Trustee, with the exception of those proceeds used to pay Costs of Issuance, will be continually invested in Permitted Investments which bear interest at an average annual rate of not less than 8%; (.5) that amounts in the Debt Service Reserve Fund equal to the Debt Service Reserve Requirement will be continually invested in Permitted Investments which bear interest at an average annual rate of not less than 8%; (6) that amounts in the Mortgage Reserve Fund (equal to the Mortgage Reserve Requirement as of August 1, 1980) will be continually invested in Permitted Investments which bear interest at an average annual rate of not less than 7%; (7) that in the event of default in payments on any Mortgage Loans, any settlement of claims on the Mortgage Insurance will be made at such time and in an amount and in a form of payment which, along with available moneys in the Mortgage Reserve Fund and Debt Service Reserve Fund, will allow the Agency to make scheduled payments of Principal Installments and interest on the 1978 Series A Bonds, notwithstanding certain aspects of the federal insurance or guaranty and Private Mortgage Insurance programs as described in Appendix A; (8) that the Mortgage Loans with respect to single-family dwellings initially purchased by the Agency from the proceeds of the 1978 Series A Bonds will have terms of not more than 30 years and not less than 20 years; and (9) that the Mortgage Loans purchased by the Trustee with respect to Huntington Park Apartments Phase I and Phase II will have original terms of 40 years. 19 Cash Flow Certificates The Agency annually shall file with the Trustee an Officer's Certificate showing the effect of any proposed disposition or use of Revenues, Mortgage Insurance Proceeds, Funds and Accounts (hereinafter called"proposed disposition") on the flow of cash available to pay Principal Installments and interest on the Bonds. Each Cash Flow Certificate shall set forth (i) a schedule of anticipated Mortgage Insurance Proceeds and Revenues to be derived from all sources, including, without limitation, any additional Mortgage Loans proposed to be purchased or made, investment of funds in Permitted Investments, and any estimated Prepayments on Mortgage Loans (as to which the Cash Flow Certificate shall state that the Agency expects that such Prepayments will be made on or before the projected dates of Prepayment in such schedule); (ii) a schedule of Principal Installments of and interest on all Bonds which will be Outstanding after the proposed disposition, giving effect to any proposed call and redemption of Bonds; (hi) that amount by which the schedule required under (i) exceeds the amount set forth in the schedule required under (ii); and (iv) the conclusion of the Agency that the anticipated Mortgage Insurance Proceeds and Revenues, together with any other amounts to be held in the Interest Fund, the Principal Fund, the Sinking Fund, the Mortgage Reserve Fund and the Debt Service Reserve Fund, will be at least sufficient, after the proposed disposition, to pay, as and when due, all of such Principal Installments and interest. Prepayments Mortgage Loans to be purchased by the Trustee on behalf of.the Agency will permit partial or complete prepayment without penalty and may also be terminated prior to final maturity as a result of such events as default, sale, condemnation or casualty loss. The Agency has established in the Series Resolution a schedule of Principal Installments of the 1978 Series A Bonds based upon estimated Prepayments of that portion of the Agency's anticipated portfolio of Mortgage Loans, consisting of Mortgage Loans relating to single-family units, as well as the scheduled amortization payments on all Mortgage Loans in the portfolio. It has been assumed that no Prepayments will be received on the Mortgage Loans relating to Huntington Park Apartments Phase I and Phase II. In establishing the maturity schedule for the 1978 Series A Bonds, the Agency assumed the availability of Prepayments on Mortgage Loans relating to single-family units to pay a portion of the principal due annually on the Bonds. The Agency estimated such Prepayments based upon 50% of the projected incidence of termination by prepayment or foreclosure of Section 203(b) FHA insured mortgage loans in California during the years 1957 through 1976. Such statistics were obtained from the United States Department of Housing and Urban Development, but no assurance as to their accuracy or method of determination can be given. The statistics on which the Agency's estimates of Prepayments over 30 years have been made are based entirely on prepayments of mortgage loans insured by FHA over the 19 year period referred to above. Although it is anticipated that the Agency's mortgage portfolio will include a significant number of privately insured Mortgage Loans, and may also contain Mortgage Loans guaranteed or insured by other instrumentalities of the United States government, similar statistics concerning the prepayment history of such mortgage loans are not available. There can be no assurance that the Prepayment experience of the Agency will substantially parallel the historical experience of FHA. Although factors affecting the Prepayment of Mortgage Loans relating to single-family units may be such as to cause the amount of Prepayments of such Mortgage Loans to exceed or fall below these estimates, the Agency believes that such estimates have a reasonable degree of reliability, and that recoveries of principal will probably be received in advance of the dates upon which they will be required to be used for the payment of Principal Installments of 1978 Series A Bonds. In the event that the Agency does not receive sufficient Prepayments to pay the Principal Installments of the 1978 Series A Bonds scheduled to be paid from such Prepayments, the Agency may need to resort to the Mortgage Reserve Fund or the Debt Service Reserve Fund to pay the debt service on the 1978 Series A Bonds. 20 An initiative amendment to the California Constitution entitled "Tax Limitation—Initiative Con- stitutional Amendment" (also known as the "Jarvis-Gann Initiative") was approved by the California electorate on June 6, 1978. The amendment adds Article XIII A to the Constitution and reads as follows: "Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed One percent(1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties. (b) The limitations provided for in subdivision (a) shall not apply to ad valorem taxes or special assessments to pay the interest and redemption charges on any indebtedness approved by the voters prior to the time this section becomes effective. "Section 2. (a) The full cash value means the County Assessors valuation of real property as shown on the 1975-76 tax bill under "full cash value", or thereafter the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. All real property not already assessed up to the 1975-76 tax levels may be reassessed to reflect that valuation. (b) The fair market value base may reflect from year to year the inflationary rate not to exceed two percent (2%) for any given year or reduction as shown in the consumer price index or comparable data for the area under taxing jurisdiction. "Section 3. From and after the effective date of this article, any changes in State taxes enacted for the purpose of increasing revenues collected pursuant thereto whether by increased rates or changes in the methods of computation must be imposed by an Act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature, except that no new ad valorem taxes on real property,or sales or transaction taxes on the sales of real property may be imposed. "Section 4. Cities, Counties and special districts, by a two-thirds vote of the qualified electors of such districts, may impose special rates on such districts,except ad valorem taxes on real property or a transaction tax or sales tax on the sale of real property within such City,County or special district. "Section 5. This Article shall take effect for the tax year beginning on July 1 following the passage of this Amendment, except Section 3 which shall become effective upon the passage of this article. "Section 6. If any section, part, clause, or phrase hereof is for any reason held to be invalid or unconstitutional, the remaining sections shall not be affected but will remain in full force and effect." The validity of the amendment is the subject of litigation. The amendment, if upheld by the courts, could tend to reduce the rate of turnover of residential property (and, hence, the rate of Prepayments of Mortgage Loans) as a result of the reassessment of real property in the event of sale or transfer. If Prepayments of the Mortgage Loans occur at lower rates than assumed by the Agency, whether resulting from any impact of the amendment or otherwise, the ability of the Agency to make payments of Principal Installments and interest on the 1978 Series A Bonds could be impaired. The schedule of Principal Installments of the 1978 Series A Bonds does not assume the receipt of Prepayments on the Mortgage Loans relating to Huntington Park Apartments Phase I and Phase II. Such Prepayments could occur as a result of default on the Mortgage Loans (with subsequent sale of the properties or collection of the Mortgage Insurance Proceeds with respect to such Mortgage Loans), sale of 21 the properties or conversion of such projects from rental to condominium or cooperative projects. The conversion of rental apartment units to condominium or cooperative projects is a recognizable trend in the California housing market. To the extent that Prepayments occur at higher rates than the Agency's assumed rates,the payment of Principal Installments and interest on the 1978 Series A Bonds will depend,in part, upon the ability of the Agency (i) to use the resulting Prepayments to purchase Permitted Investments or Mortgage Loans on which the scheduled amortization payments will be in such amounts and available at such times that scheduled payments of Principal Installments and interest on the Bonds can be made, or (ii) to use such Prepayments to redeem or purchase 1978 Series A Bonds. If reinvestment of Prepayments in Mortgage Loans cannot be made in accordance with the provisions of the General Resolution, the Agency would expect to use those Prepayments in excess of amounts necessary to make payments of Principal Installments of the 1978 Series A Bonds to purchase or redeem Outstanding 1978 Series A Bonds, at the earliest possible date. The 1978 Series A Bonds are subject to redemption, without premium, in whole or in part, from Prepayments at any time on or after August 1, 1980. BONDHOLDERS' RISKS The assumptions made by the Agency with respect to its estimates stated herein are based on current market conditions and practices. Should one or more of the assumptions prove to be substantially inaccurate, the Agency may be unable to make full and/or punctual payments of Principal Installments and interest on the 1978 Series A Bonds and Bondholders may therefore be adversely affected. In the event that a Mortgagor defaults in the payments on a Mortgage Loan and the Agency institutes foreclosure or other recovery proceedings, there will be certain required time delays which, should they occur with respect to a sufficient number of Mortgage Loans, could disrupt the flow of Revenues and Mortgage Insurance Proceeds available for the payment of Principal Installments and interest on the 1978 Series A Bonds. These time delays derive from the procedures applicable to the collection of Mortgage Insurance Proceeds as well as those required under California law for the enforcement of rights of mortgagees. Those procedures and their effect on the Agency's ability to collect on Defaulted Mortgage Loans are described in Appendix A, "Summary of Certain Federal and Private Mortgage Insurance and Guaranty Programs and Disposition of Certain Defaulted Mortgage Loans in California." The ability of the Agency to have its claims for Mortgage Insurance Proceeds satisfied is dependent upon the solvency of the mortgage insurer or guarantor at the time of the claim. The Agency makes no representations as to the ability of the mortgage insurer or guarantor to pay the claims when presented by the Agency. Should (i) prevailing interest rates on mortgage loans on residential property(or on the types of other obligations in which moneys in the Funds and Accounts under the General Resolution may be invested) decrease substantially from the rates now prevailing and remain at such lower rates for a significant period of time, or (ii) should there be substantially less demand for the residential Mortgage Loans than estimated by the Agency irrespective of the interest rates generally available on such Mortgage Loans, or (iii) should the Agency be unable to purchase the committed Mortgage Loans due to lack of performance by the developer, natural disasters, work stoppages, litigation, material shortages or other impediments, there is a possibility that the Agency might not be able to purchase Mortgage Loans generating a sufficient yield to pay Principal Installments and interest on its 1978 Series A Bonds without recourse to moneys available for this purpose in the Mortgage Reserve Fund and Debt Service Reserve Fund. Should this occur, the Agency, to the extent practicable, expects to purchase or redeem 1978 Series A Bonds so as to minimize or to eliminate any possible need to utilize such reserve funds for this purpose. As noted hereinbefore, the Mortgage Loans to be purchased by the Agency with respect to Phases I and II of Huntington Park Apartments will bear an interest rate of 6.75%per annum (or approximately .275%lower than the net interest cost on the 1978 Series A Bonds),while the Mortgage Loans with respect to Huntington Park Condominiums and any other qualified Mortgage Loans made from the proceeds of .22 the 1978 Series A Bonds will bear an interest rate of 8.25% (or approximately 1.225%higher than the net interest cost of the 1978 Series A Bonds). To the extent that the Agency is unable to acquire a substantial portion of the Mortgage Loans related to the Huntington Park Condominiums or an equal principal amount of other qualifying Mortgage Loans,the Agency may be unable to meet its scheduled payments of Principal Installments and interest on the Bonds. To protect against this eventuality, the Agency'has established the Mortgage Reserve Fund which is to be funded at the Mortgage Principal and Interest Reserve Requirement and the Mortgage Expense Reserve Requirement. Under the Series Resolution,as a condition of delivery of the 1978 Series A Bonds,the Agency shall deposit with the Trustee to the benefit of the Bondholders, $300,000 in the form of cash or irrevocable bank letter of credit, or in the alternative, cash in the amount of$90,000 and a letter from Wells Fargo Bank,N.A. to the effect that a formal letter of credit in the amount of$210,000 in favor of Wells Fargo Bank, N.A., as Trustee, will be available to the Trustee on or prior to September 15, 1978, to be used by the Trustee, to the extent necessary, to bring the amounts held in the Mortgage Reserve Fund as of August 1, 1980, to the Mortgage Principal and Interest Reserve Requirement. The Agency estimates that the $300,000 will be in excess of the amount necessary to fully fund the Mortgage Principal and Interest Reserve Requirement as of the Note Maturity Date and that the moneys in the Mortgage Reserve Fund, as of that date, when combined with other moneys (and the investment income therefrom) estimated to be available to the Trustee from the Mortgage Purchase and Loan Account, the Debt Service Fund, the Debt Service Reserve Fund or other appropriate Funds and Accounts, will be sufficient to redeem the Outstanding Bonds or to pay Principal Installments and interest on the remaining Outstanding Bonds in the event none of the Mortgage Loans related to the single family units are delivered to and purchased by the Agency. SUMMARY OF CERTAIN PROVISIONS OF THE GENERAL RESOLUTION The following is a summary of certain provisions of.the General Resolution. The summary does not purport to be complete and all references in the Official Statement to the General Resolution are qualified in their entirety by reference to the General Resolution. Until issuance and delivery of the 1978 Series A Bonds,copies of the General Resolution will be available for inspection at the office of the Secretary of the Agency. Copies of the General Resolution will be available for inspection at the principal corporate trust office of the Trustee in San Francisco, California after delivery of the 1978 Series A Bonds. All capitalized words and terms used in this summary are defined in the General Resolution and are used in the summary with the same meanings. Bond Authorization and Issuance The General Resolution creates an issue of Bonds to be known as "Residential Mortgage Revenue Bonds of the Redevelopment Agency of the City of Fresno (the"Bonds"). The Bonds are unlimited as to amount and may be issued in one or more series. A Series of Bonds may be delivered upon adoption of a Series Resolution and receipt by the Trustee of (1) certified copies of the resolutions, (2) an opinion of counsel that the resolutions have been duly adopted and are valid, that a valid pledge has been created to secure all Bonds pursuant to provisions of the resolutions and that the Trustee is duly authorized to authenticate and deliver the authorized Series of Bonds (3) an Officer's Certificate that the Agency is not in default under the General Resolution at the time of issuance of such Bonds, directing the delivery of such Series of Bonds and stating the amounts to be deposited in the various Funds and Accounts, and (4) instructions to publish and mail notices of redemption in the case of refunding Bonds. 23 General Terms and Provisions of Bonds Interest payment dates are established on March 1 and September 1 of each year .and principal payments on September 1. The Bonds will be issued as coupon Bonds registrable as to principal only or as fully registered Bonds and bear interest from their date. They are executed by the Chairman and the Secretary of the Agency, and authenticated by the Trustee prior to delivery. Coupon Bonds and fully registered Bonds, in appropriate denominations, may be exchanged at the Principal Office of the Trustee in San Francisco, California. Bonds may be registered and transferred at the office of the Trustee, subject to reasonable regulations and payment of a charge sufficient to cover any applicable governmental charge. Registered Bonds may be de-registered and re-registered, and Bonds which have been mutilated, destroyed, stolen or lost may be replaced upon furnishing indemnity in an amount equal to the unpaid principal amount of the Bond plus interest to its maturity date and complying with the Agency's other reasonable regulations. Temporary Bonds may be issued pending preparation of the definitive Bonds. Redemption of Bonds Bonds that are otherwise subject to redemption under a Series Resolution are redeemable (a)(i) upon receipt by the Trustee of an Officer's Certificate identifying the Series, maturities and principal amounts to be purchased or redeemed, the effect on Sinking Fund Installments and the prior redemption date, or (ii) by application of the Sinking Fund, or (iii) in the event of the issuance of refunding Bonds, and (b) upon published notice of redemption. Selection of Bonds to be redeemed by lot is made by the Trustee by assigning a distinctive number to each $5,000 of principal amount and thereupon selecting which $5,000 units are to be called by any method deemed proper at its discretion. Notice of redemption must be given by publication in Authorized Newspapers at least once not less than 25 nor more than 60 days prior to the redemption date and mailed to the registered owner of any Bond to be redeemed not less than 20 days nor more than 60 days prior to such redemption date. Failure to mail shall not affect the validity of the redemption proceedings. The Agency must give the Trustee notice of its election to redeem Bonds which are subject to optional redemption at least 40 days prior to the redemption date or at such later date as is acceptable to the Trustee. Bonds called on such notice become due and payable on the redemption date specified in the notice and the Redemption Price and accrued unpaid interest must be paid upon surrender of the Bonds (including all appurtenant coupons maturing subsequent to such date), and instruments of transfer, if appropriate. New coupon or registered Bonds representing the unpaid balance of a registered Bond called in part are issued to the owner without charge. Interest ceases to accrue after the redemption date as to Bonds duly called for redemption, funds for which are held by the Trustee. Application of Bond Proceeds The proceeds of sale of each Series of Bonds are paid to the Trustee and allocated,in accordance with the Series Resolution, to the Debt Service Reserve Fund, Interest Fund, Mortgage Reserve Fund, any Note Repayment Account and the Mortgage Purchase and Loan Account. The Debt Service 'Reserve Requirement is established at the maximum amount of Principal Installments and interest payable in any succeeding Fiscal Year. Upon issuance of each Series of Bonds, the Debt Service Reserve Fund must be fully funded from proceeds of such Series of Bonds. Moneys deposited in any Note Repayment Account will be used to pay Costs of Issuance and principal, Redemption Price and interest on Agency notes issued to finance Residential Construction. After retirement of all such Agency notes, any surpluses remaining in such Account are transferred to the Mortgage Purchase and Loan Account or the Prior Redemption Fund. 24 Funds in the Mortgage Purchase and Loan Account are applied to (i) the purchase of Mortgage Loans, (ii) the making of Mortgage Loans, and (iii) payment of Costs of Issuance. All Mortgage Loans purchased or made must be federally or privately insured or federally guaranteed. Any funds which might otherwise be in the Mortgage Purchase and Loan Account three years after the date of the Bonds of any Series must be transferred to the Prior Redemption Fund and applied to redemption of the Bonds no later than three (3) years from the Issue Date. Any funds in the Mortgage Purchase and Loan Account must be transferred to the Interest Fund or Principal Fund and used to pay principal and interest on the Bonds if funds are not otherwise available for such payment. Program Covenants The Agency covenants: (A) To use Bond proceeds to purchase and make Mortgage Loans federally or privately insured or federally guaranteed and do everything necessary to collect the Revenues and enforce the Mortgage Loan provisions; (B) Not to purchase or redeem Bonds (other than Term Bonds from Sinking Funds and purchase or redemption in the event of refunding Bonds) without a Cash Flow Certificate with respect to anticipated Revenues and Bond requirements; (C) To include provisions in Mortgage Servicing Contracts adequate to assure proper servicing of the Mortgage Loans; (D) To enter into proper Mortgage Selling Contracts with Mortgage Lenders from which Mortgage Loans are purchased and Disbursing Agreements with Mortgage Lenders through which Mortgage Loans are made; (E) To establish interest rates, fees and charges on Mortgage Loans which,in the aggregate, will be sufficient to meet Bond payments,servicing fees and reasonable reserves, and to assure that Escrow Payments are adequate. (F) To enforce the provisions of Mortgage Selling Contracts, Servicing Agreements and Disbursing Agreements. Application of Revenues and Other Moneys All Revenues, Mortgage Insurance Proceeds, all Mortgage Loans, and all Funds and Accounts held by the Trustee are pledged to the security of the Bonds, including the principal, interest and Redemption Price thereof. The lien of such pledge has priority over all other obligations of the Agency, other than claims of the Trustee and Paying Agents. The Bonds are special obligations of the Agency payable solely from the Revenues, Mortgage Insurance Proceeds and pledged Funds and Accounts, and the faith and credit of the Agency and the City are not pledged and no tax proceeds are available for their payment. The General Resolution creates the following Funds and Accounts to be held by the Trustee: (1) Bond Proceeds Fund (a) Note Repayment Account (b) Mortgage Purchase and Loan Account (2) Revenue Fund (3) Interest Fund (4) Principal Fund (5) Sinking Fund (6) Prior Redemption Fund (7) Mortgage Reserve Fund (8) Debt Service Reserve Fund 25 An Escrow Payment Fund and individual Escrow Payment Accounts are held by the Servicer and the Agency maintains an Operating Fund. The foregoing Funds and Accounts are applied and used as follows: (1) The functioning of the Bond Proceeds Fund and the two accounts thereof are described above under"Application of Bond Proceeds." (2) The Revenue Fund receives all Revenues and Mortgage Insurance Proceeds collected by the Agency or by the Servicer. Escrow Payments are received by the Servicer, placed in the Escrow Payment Fund and used to pay taxes,fire and other hazard insurance premiums,Mortgage Insurance premiums and other customary escrow costs. Transfers and disbursements from the Revenue Fund must be made in the manner set forth under "Security For the 1978 Series A Bonds—Revenue Fund"herein. (3) The moneys in the Interest Fund are withdrawn and applied to the payment of interest on the Bonds, and (4) The funds in the Principal Fund are withdrawn and applied to principal payments on serial Bonds, all not earlier than one day prior to the Interest or Principal Payment Date. (5) Sinking Fund moneys are used to purchase (at a price not exceeding the Redemption Price) Term Bonds during a period prior to the thirty (30) days immediately preceding the Sinking Fund Installment Date, and thereafter any moneys not used for such purchase are used to redeem Term Bonds for the payment of which the Sinking Fund was established. (6) Moneys in the Prior Redemption Fund shall be (i) transferred to the Mortgage Purchase and Loan Account for application to the purchase of additional Mortgage Loans, (ii) retained for investment in Permitted Investments, all as determined by a Cash Flow Certificate, or applied to the purchase (at a price not exceeding the Redemption Price) or redemption of Bonds as directed by the Agency by an Officer's Certificate, all as determined by a Cash Flow Certificate. Any moneys transferred to the Prior Redemption Fund from the Mortgage Reserve Fund must be applied to the redemption of Bonds. The Agency must also certify to the Trustee by Cash Flow Certificate (accompanied by supporting detailed analysis) that anticipated Mortgage Insurance Proceeds and Revenues and amounts available in the Funds and Accounts held by the Trustee after such purchase or call of Bonds will be sufficient to meet Outstanding Bond Principal Installments and interest requirements. The Prior Redemption Fund must also be used to make up Principal or Sinking Fund deficiencies, as described below. Any deficiencies in the Interest Fund five (5) days prior to any Interest Payment Date must be made up from the Mortgage Reserve Fund, the Debt Service Reserve Fund, and any other pledged Funds or Accounts, in that order. Principal Fund deficiencies existing five (5) days before any Principal Installment Date and Sinking Fund deficiencies existing sixty (60) days prior to a Principal Installment Date on which a Principal Installment is payable from a Sinking Fund must be made up from the Prior Redemption Fund, the Mortgage Reserve Fund and the Debt Service Reserve Fund,in that order. Any amounts withdrawn from the Mortgage Reserve Fund or the Debt Service Reserve Fund to make up deficiencies must be restored from the Revenue Fund. If all available funds are exhausted,the Trustee must sell Mortgage Loans at no less than par to make up deficiencies. (7) The Mortgage Reserve Fund is made up of the Mortgage Principal and Interest Reserve (consisting of the sum of 1%of the aggregate unpaid principal amount of federally insured or guaranteed Mortgage Loans and 10% of (i) the aggregate unpaid principal amount of all other Mortgage Loans purchased or made plus (ii) the aggregate amount in the Mortgage Purchase and Loan Accounts, at the time of calculation) and the Mortgage Expense Reserve which consists of such amounts required to pay certain expenses of the Agency or a Servicer with respect to the Mortgage Loans. It is to be used to make up deficiencies in the Interest Fund, Principal Fund or Sinking Fund, described above,or to make Escrow Payments and pay Mortgage foreclosure fees and expenses. 26 (8) The Debt Service Reserve Fund, originally funded from Bond proceeds, must be used to make up deficiencies in the Interest Fund, Principal Fund or Sinking Fund in the event the Mortgage Reserve Fund or the Prior Redemption Fund is insufficient therefor. (9) The Escrow Payment Fund, held by the Servicer, is applied to Escrow Payments. (10) The Operating Fund is held by the Agency and used to pay Operating Expenses. The amounts budgeted for Operating Expenses are limited to surpluses set forth in a Cash Flow Certificate. Any balance on June 30 of each year must be paid to the Trustee for deposit into the Revenue Fund,subject to the right of the Trustee to withhold a reserve for contingencies. Whenever the Trustee has sufficient aggregate amounts in all pledged Funds and Accounts to pay the Redemption Price of and interest on all Outstanding Bonds, all such amounts shall be transferred, upon receipt of an Officer's Certificate, to the Prior Redemption Fund and used to purchase and redeem Bonds. Security and Investment All moneys held by the Agency, the Trustee or any Paying Agent must be secured as required by law for public deposits, except funds held by a Paying Agent to make Bond and interest payments, and except for invested funds. All Funds and Accounts held by the Trustee must be invested in Permitted Investments. Maturities must conform to the requirements of the Fund or Accounts so invested. In lieu of investment in Permitted Investments, the Trustee may deposit moneys in interest-bearing time or savings deposits or similar banking arrangements, provided they are fully secured by securities eligible by law to be held as security for public deposits. The Bond Proceeds Fund may be so deposited only if the interest earned exceeds that available from Permitted Investments. All interest earned constitutes Revenues and must be transferred to the Revenue Fund. The Trustee and Paying Agents Wells Fargo Bank, N.A., San Francisco, California is appointed as Trustee. Any successor must have aggregate capital and surplus of at least $25,000,000. Paying Agents may be appointed, each of which must have aggregate capital and surplus of at least $10,000,000. The Trustee may be a Paying Agent. The Trustee and Paying Agents, upon acceptance of the appointment, must carry out the duties assigned in the Resolutions, subject to indemnification, and are entitled to compensation and expenses as agreed upon. The Trustee and Paying Agents may deal in Bonds or Notes of the Agency and engage in other transactions with the Agency. The Trustee may resign or be removed, effective upon appointment of a successor, notice of such appointment to be given by publication in an Authorized Newspaper within twenty (20) days of appointment: Appointment may be made by a court upon application by the Trustee or any Bondholder if no appointment has been made within forty-five (45) days after the Trustee's notice of resignation. Provision is made for transfer of rights and property to a successor Trustee and any company into which the Trustee merges, converts or consolidates becomes the successor. Paying Agents may resign on sixty (60) days' notice or be removed at any time and successors appointed. Covenants of the Agency The Agency warrants and covenants: (A) To pay all Revenues received by it to the Trustee; (B) Not to extend or consent to extension of time for payment or maturity of Bonds or coupons; 27 (C) To provide further assurances of rights under the General Resolution, as required; (D) That it is duly authorized to issue the Bonds and make the pledges in the General Resolution; that the Bonds and such pledges are valid and enforceable; and the Agency will preserve, protect and. defend same against all claims; (E) That it will provide proper books of record and account for all transactions described in the General Resolution and will provide a copy of its annual report to each Bondholder who has filed his name and address for such purpose; (F) To adopt an annual budget for the Operating Fund; and to file annually a Cash Flow Certificate showing that the amounts budgeted are not in excess of funds available for Operating Expenses; (G.) To employ competent personnel, to establish and enforce reasonable rules and regulations and administer the Program in an efficient and economical manner; (H) Not (to the extent permitted by law) to claim the advantage of any laws which may affect the covenants and agreements in the Resolution; (I) That all conditions and acts precedent required by law and the Resolutions to have occurred to permit Bond issuance have duly occurred; and (J) That no additional obligations secured by the General Resolution will be incurred other than Series of Bonds issued under the General Resolution,and subject to all of its requirements,including a requirement that the Trustee receive an Officer's Certificate certifying that: (1) no legal limits will be exceeded, (2) there are no deficiencies in the Interest, Principal, Sinking, or Debt Service Reserve Funds, (3) Upon issuance of additional Bonds,the Debt Service Reserve Fund will not be less than the Debt Service Reserve Requirement, (4) Revenues will be sufficient to pay Principal Installments and interest on all the Bonds as shown by a Cash Flow Certificate (as described in "The 1978 Series A Bonds—Additional Bonds"herein). Series and Supplemental Resolutions Series Resolutions may be adopted at any time to authorize additional Series of Bonds and the terms and conditions thereof. Supplemental Resolutions may be adopted at any time to: (1) add covenants and agreements to further secure the Bonds, (2) prescribe further limitations and restrictions upon the issuance of additional Bonds, (3) surrender any right or privilege of the Agency under the General Resolution, (4) confirm the pledges and liens created by the General Resolution, (5) modify the General Resolution or Series Resolution after all Bonds issued thereunder cease to be Outstanding, and (6) cure ambiguities and defects or inconsistent provisions of and add clarifying provisions to the General Resolution, with the Trustee's consent. Series and Supplemental Resolutions must be filed with the Trustee and be accompanied by a Counsel's Opinion certifying their validity. No change in the rights and obligations of the Trustee or any. Paying Agents may be made without their written consent. 28 Amendments of General Resolution With the exception of amendments outlined above which may be made without the consent of the Bondholders, amendments to the General Resolution may be accomplished by Supplemental Resolution adopted with the consent of the Holders of two-thirds of the principal amount of Bonds Outstanding and affected by such amendment, such consent to be obtained in writing, after published and mailed notice, and be accompanied by a Counsel's Opinion that the consent proceedings are valid and binding. No such amendment may change the redemption or maturity of any Outstanding Bond, or any interest installment or reduce the principal amount or Redemption Price or rate of interest without the Holder's consent, nor may the percentage required for consent be reduced. Any amendment may be made with unanimous Bondholder consent. Default and Remedies Events of default are defined as: (1) nonpayment of Principal Installments or Redemption Price when due, (2) nonpayment of interest when due, continuing for 30 days, or (3) Agency failure or refusal to comply with the Act or default in the observance of any other covenants and agreements in the Resolutions continuing for ninety (90) days (except that the failure, permitted by law,of a Servicer to enforce a Mortgagor's obligations under a Mortgage is not a default provided the Agency has money sources other than the Debt Service Reserve Fund sufficient to meet Bond Principal or Sinking Fund Installments and interest payments during the period of non- enforcement). Upon the happening of an event of default, the Trustee may, and must upon written request of the Holders of 25% in principal amount of Outstanding Bonds, proceed to enforce the following remedies: (1) Bring an action to enforce the Bondholders' rights, including requiring Servicers to collect repayments on Mortgage Loans and the Agency to perform its duties under the Act, (2) Bring suit upon the Bonds, (3) Bring an action to require the Agency to account as if it were trustee of an express trust for the Bondholders, and, (4) Bring an action to enjoin any unlawful acts or acts violative of Bondholders' rights, or compel the Agency, any Servicer or Mortgage Lender to perform its duties. If less than all Bonds are due and payable, in the event of an insufficiency of funds to pay Principal Installments, Redemption Prices or interest then due, after payment of expenses, charges and liabilities of the Trustee and other required expenses, the balance of funds then available shall be applied: First, to payment of interest in the order of maturity of installments,or, if funds are insufficient to pay any installment in full, ratably, by amounts due, without discrimination or preference, Second, to payment of unpaid principal or Redemption Price of Bonds which are due in the order of due dates, and,if insufficient to pay in full all Bonds due on any one date,ratably by amounts due, without discrimination or preference. If all Bonds are due and payable, and a like insufficiency exists, available funds shall be applied to payment of principal and interest, ratably, without preference or priority, according to total amounts due. The timing of such payments on default is in the discretion of the Trustee. The method of conducting remedial proceedings by the Trustee may be directed in writing by Bondholders holding a majority in principal amount of the Bonds;provided,however,the Trustee may decline to act if the rights and interests of other Bondholders may be adversely affected. Any action by Bondholders requiring the Trustee to enforce rights must be preceded by written notice to the Trustee of such requests for remedial action and must be made by the Holders of not less than 25% of the principal amount of Outstanding Bonds, and must be accompanied by an offer of reasonable security and indemnity to the Trustee. The Resolutions prohibit actions which may adversely affect rights and interests of Bondholders, all as set forth in the Resolutions. 29 The Trustee may bring all actions authorized without possession of the Bonds. Express remedies are not exclusive, and no delay or omission constitutes a waiver of rights. The Trustee must give Bondholders notice of any default within ninety (90) days of knowledge thereof, unless cured before notice or unless the Trustee's board of directors, executive or trust committee in good faith determines that withholding notice is in the interests of the Bondholders. Methods of establishing proof of Bond ownership and for execution of instruments are set forth in the General Resolution. Defeasance Full payment of principal, interest and Redemption Price of all Outstanding Bonds terminates all rights and obligations under the Resolutions. The Resolutions are also fully discharged if(i) the Agency gives the Trustee irrevocable instructions to redeem all callable Bonds Outstanding, (ii) there shall have been deposited with the Trustee either money or Federal Securities, the principal and interest on which when due, will be sufficient to pay all principal or Redemption Price and interest due or to become due on or prior to their maturity or redemption date, and (iii) if the Bonds are not callable within sixty (60) days, the Agency shall have irrevocably instructed the Trustee to give notice to the Bondholders, by publication, of the deposit described in (ii). Any moneys still held by the Trustee or Paying Agents and unclaimed four(4) years after maturity or redemption date shall be repaid to the Agency after published notice and,thereafter, the Bondholders may look only to the Agency for the payment of such Bonds and coupons. Miscellaneous All documents held by the Trustee or any Paying Agent may be inspected by the Agency,the Trustee, any Paying Agent, and Bondholders (upon written request of the Holders of 5%of the principal amount of Bonds Outstanding). Bonds and coupons which are to be cancelled by the Trustee may be destroyed at Agency request. All covenants and agreements in the General Resolution are enforceable against the Agency and not against any member, officer, or employee of the Agency in his or her individual capacity, and no recourse for payment of principal,interest or Redemption Price is available against such persons in such capacities. OTHER PROGRAMS OF THE AGENCY In addition to the Residential Mortgage Loan Program, the Agency administers redevelopment programs in several Redevelopment Project Areas. The Redevelopment Project Areas have been designated by the Agency pursuant to the Community Redevelopment Law (California Health and Safety Code, Section 33000, et seq.) and the Agency has prepared redevelopment plans with respect to each Redevelopment Project Area. The redevelopment plans address the specific objectives to be met within the area including removal of seriously deteriorated residential and commercial structures, street location, major drainage improvements,construction and rehabilitation of residential housing units and construction of commercial and public facilities. Since its inception, the Agency has designated, by the adoption of a final plan, eight areas within the City as Redevelopment Areas: South Angus Street Project, Central Business District Project, West Fresno Project One, West Fresno Project Two, West Fresno Project Three, Southwest Fresno General Neighbor- hood Renewal Area, Fruit/Church Project and Mariposa Project. The Redevelopment Project Areas are all located in south central Fresno. The Areas compose approximately 4.5% of the land area within the geographical boundaries of the City. The Agency's first completed project was the South Angus Project,which was instituted in 1959. The South Angus Area was a delapidated 89 acre residential area which required total clearance. Following clearance, 441 new residential units and 83 single family units were constructed, along with public parks. The assessed valuation following redevelopment was $2,609,000, as compared to $619,000 prior to redevelopment. 30 Under the plan adopted in 1961 for the Central Business District Project Area, an 86 acre area, the Agency has revitalized and developed the downtown Fresno retail district. Streets were reconfigured, a shopping mall was constructed and buildings were rehabilitated or demolished. Proposals by developers for three office buildings within the area totaling approximately 250,000 square feet are presently under consideration by the Agency. West Fresno Project Area One, West Fresno Project Area Two and West Fresno Project Area Three are 46 acre, 108 acre and 34 acre Areas for which plans were adopted in 1964, 1963 and 1961 respectively. The Project Areas were formerly residential slum areas adjacent to the Central Business District Project Area and were totally cleared. In West Fresno Project Areas One and Two, new office buildings and light industrial developments were constructed. A municipal service yard is being constructed in West Fresno Project Areas Two and Three. Southwest Fresno General Neighborhood Renewal Area, for which a plan was adopted in 1968,is a 1900 acre formerly heavily delapidated area on the edge of slum areas containing mainly residential units as well as some office buildings. Approximately 500 apartments and single family units have been or are being constructed or rehabilitated. The Fruit/Church Project Area, a 138 acre Area for which a plan was adopted in 1971, formerly contained delapidated residential and industrial buildings. The area was completely cleared and now contains light industrial facilities. The Mariposa Project Area was designated in 1969 and contains 200 acres. The Area is a mixed use area, containing office buildings and residential units. A number of the structures within the Area are of historical significance and are being preserved. Huntington Park Apartments Phase I,is located within the Mariposa Project Area and Huntington Park Apartments Phase 11 and Huntington Park Condominiums are planned on adjacent sites within the Area, consisting of approximately 27 acres. The Agency has, to date, financed the development programs from a combination of public and private resources. In 1960, the Agency issued $1,060,000 principal amount of tax allocation bonds to finance redevelopment of the South Angus Street Project. The outstanding balance of such bonds will be retired in September 1, 1978. In 1976, the Agency issued $8,725,000 principal amount of Lease Revenue Bonds, all of which remain outstanding, to finance construction of a municipal building located partially within West Fresno Project Two and partially within West Fresno Project Three. The bonds are amortized through rental fees paid the Agency by the City. The City, in turn, derives funds for the rental payments from its tax revenues. GENERAL INFORMATION CONCERNING THE CITY The inclusion of information regarding the City in this Official Statement in no way implies that the City has any obligation to pay the Bonds from any of its funds. The City of Fresno is located in the San Joaquin Valley,222 miles north of Los Angeles and 183 miles south of San Francisco. The City is the county seat of Fresno County and serves as the principal commercial, industrial and transportation center for a six-county area which includes Yosemite, Dings Canyon and Sequoia National Parks. Located at an elevation of 331 feet above sea level, Fresno enjoys a mild climate with average temperatures ranging from a low of 47.9° to a high of 76.9°. Annual rainfall averages 11.14 inches. The City of Fresno was incorporated on October 12, 1885 and operates under the council-manager system through a locally adopted charter. The City is governed by a Mayor and six-member Council who are elected at large for four-year alternating terms. The Council appoints the Chief Administrative Officer, the City Attorney,the Controller and Finance Director and the City Clerk; all other department heads are appointed by and report to the Chief Administrative Officer. The acting Chief Administrative Officer is James E. Aldredge. 31 Demographic Information Population statistics for the City of Fresno and Fresno County are set forth below: POPULATION STATISTICS Fresno County City of (including City%of Year Fresno • City) County 1950 91,669 276,515 33.2 1960 133,929 365,945 36.6 1970 165,990 413,053 40.2 1971 169,900 422,100 40.3 1972 173,900 427,900 40.6 1973 176,800 432,100 40.9 1974 176,800 439,500 40.2 1975 176,800 447,100 39.5 1976 179,200 451,800 39.7 1977 187,500 465,100 40.3 1978 194,826 473,032 41.2 Source: 1950-70:U.S.Census 1971-78(County):California Statistics Abstract,Redevelopment Agency Staff 1971-78(City):State Department of Finance,Redevelopment Agency Staff The table below compares the population growth among Fresno and other incorporated areas within Fresno County. POPULATION STATISTICS Percentage Jurisdiction 1970 1960 Change Clovis...................................................... 13,856 5,546 149.8 Coalinga................................................. 6,161 5,965 3.3 Firebaugh............................................... 2,517 2,070 21.6 Fowler.................................................... 2,239 1,892 18.3- Fresno..................................................... 165,972 133,929 23.9 Huron..................................................... 1,525 1,269 20.2 Kerman................................................... 2,667 1,970 35.4 Kingsburg............................................... 3,843 3,093 24.2 Mendota................................................. 2,705 2,099 28.9 Orange Cove........................................... 3,392 2,885 17.6 Parlier................... ,.................................. 1993 1366 45. Reedley................................................... 8,131 5,850 39.0 Sanger..................................................... 10,088 8,072 25.0 San Joaquin............................................ 1,506 879 71.3 Selma...................................................... 7,459 6,934 7.6 Source:U.S.Census 32 The table below compares the median household incomes, median years of school completed,average household size and median age for the City and other incorporated areas within Fresno County for 1970. Median Median Years Average Household of School Household Jurisdiction Income Completed Size Median Age Clovis........................................ $ 9,040 12.1 3.92 25.5 Coalinga................................... 10,577 12.4 3.45 26.8 Firebaugh................................. 6,075 8.7 3.62 22.4 Fowler....................................... N/A* N/A* 3.69 27.8 Fresno....................................... 8,971 12.3 3.53 26.9 Huron........................................ N/A* N/A* 4.28 19.3 Kerman..................................... 7,933 9.8 3.77 24.5 Kingsburg................................. 9,789 12.1 3.50 31.1 Mendota................................... N/A* N/A* 2.94. 19.7 Orange Cove............................. 6,116 8.21 3.61 22.5 Parlier....................................... N/A* N/A* 3.60 21.7 Reedley..................................... 8,194 11.4 3.71 26.7 Sanger....................................... 7,158 9.0 3.76 25.5 San Joaquin.............................. N/A* N/A* 3.64 22.0 Selma........................................ 7,740 10.4 4.03 26.5 ' Not Available Source: 1970 U.S.Census Existing Housing Stock The following chart shows, for the past five years, residential and commercial building permits issued in the City and the County. 1973 1974 1975 1976 1977 Description (Valuation 000) City County City County City County City County City County Residential....................................... $23,323 $ 63,093 $30,269 $ 71,701 $35,751 $ 84,052 $ 68,508 $149,182 $ 88,337 $185,132 New Commercial............................ 10,528 15,749 13,797 19,438 10,964 15,587 14,698 24,245 24,729 46,601 New Industrial................................ 7,762 12,995 8,636 11,447 1,469 5,581 10,966 15,599 7,105 22,954 Other Nonresidential...................... 22,846 35,094 9,161 25,742 5,742 13,408 9,879 19,754 16,715 29,521 TOTAL............................. $64,459 $126,931 $61,863 $128,328 $53,933 $118,628 $104,051 $208,780 $136,886 $284,208 NUMBER OF RESIDENTIAL UNITS: Single-Family(units)..................... 355 1,886 1,150 2,632 1,176 2,916 1,436 3,832 1,598 3,733 Multi-Family(units)...................... 1,510 2,797 523 1,652 555 1,472 2,412 3,593 1,475 2,603 TOTAL............................. 1,865 4,683 1,673 4,284 1,731 4,388 3,848 7,425 3,073 6,336 Source:Fresno County Assessor 33 Assessed Valuation The following summary shows the growth in assessed valuation within the City and the County during the past eight years. Assessed Valuation Assessed Valuation Within County Fiscal Year Within City (Including City) 1970/1971 $307,138,000 $ 897,192,289 1971/1972 $340,967,000 $1,005,257,218 1972/1973 $369,058,918 $1,067,619,981 1973/1974 $358,248,765 $1,075,434,203 1974/1975 $448,101,067 $1,250,660,697 1975/1976 $512,795,908 $1,360,619,170 1976/1977 $571,751,858 $1,550,659,313 1977/1978 $641,277,592 $1,721,668,125 Source:Fresno County Assessor Employment The following chart shows percentages of total employment by major industry category for Fresno County for the years 1960, 1965, 1970 and 1972 through 1976. Industry 1960 1965 1970 1972 1973 1974 1975 1976 Agriculture........................... 30.1% 28.0% 23.5% 20.7% 21.4% 21.9% 23.1% 23.1% Trade.................................... 20.0 20.1 20.3 20.5 20.1 20.0 19.8 20.4 Government(Civilian)....... 13.5 14.7 18.2 19.8 19.6 19.8 20.3 19.7 Services................................ 10.2 12.3 14.1 14.1 14.1 13.8 14.2 14.1 Manufacturing..................... 11.6 11.1 11.4 11.7 11.7 11.4 10.4 10.3 Transportation,Commu- nications,Utilities............ 6.6 5.6 5.1 5.1 4.9 4.8 4.4 4.4 Construction......................... 4.4 4.0 3.2 4.0 4.1 4.0 3.6 3.8 Finance, Insurance, Real Estate................................ 3.0 3.3 3.5 3.7 3.8 3.9 3.8 3.8 Mining.................................. 0.7 0.8 0.5 0.4 0.4 0.4 0.4 0.4 Source:State Employment Development Department,Security Pacific National Bank TAX EXEMPTION In the opinion of Jones Hall Hill & White, San Francisco, California, Bond Counsel, and in the opinion of O'Connor, Cavanagh, Anderson, Westover, Killingsworth& Beshears, P.A., Phoenix, Arizona, Special Tax Counsel, interest on the 1978 Series A Bonds is exempt from Federal income taxes under existing statutes,regulations and court decisions. Bond Counsel and Special Tax Counsel are further of the opinion that under existing statutes,regulations and court decisions,interest on the 1978 Series A Bonds is exempt from personal income taxes imposed by the State of California and by the municipalities and other political subdivisions of the State. Interest may, however, be taxable by the United States of America on any 1978 Series A Bonds while held by a person who, within the meaning of Section 103(b)(7) of the Internal Revenue Code of 1954, as amended, is a substantial user of the facilities financed with the proceeds of the 1978 Series A Bonds or a person related thereto. O'Connor,Cavanagh,Anderson,Westover,Killingsworth&Beshears,P.A.,Special Tax Counsel,will rely upon the opinions of Jones Hall Hill&White, Bond Counsel, and Mudge Rose Guthrie&Alexander, Special Bond Counsel for the Underwriters, to the effect that the 1978 Series A Bonds are valid and binding obligations of the Agency and that the Agency is a duly constituted public body, corporate and politic, of the State of California. 34 LITIGATION At the time of delivery of and payment for the 1978 Series A Bonds, the Agency will certify that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or public body, pending or, to the best knowledge of the Agency, threatened against the Agency affecting the corporate existence of the Agency or the titles of its officers to their respective offices or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the 1978 Series A Bonds or the collection of revenues or assets of the Agency pledged or to be pledged to pay the principal and interest on the 1978 Series A Bonds, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the 1978 Series A Bonds or the Resolutions, or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any amendment or supplement thereto, or contesting the powers of the Agency or any authority for the issuance of the 1978 Series A Bonds or the adoption of the Resolutions; nor, to the best knowledge of the Agency,is there any basis therefor, wherein an unfavorable decision,ruling or finding would materially adversely affect the validity or enforceability of the 1978 Series A Bonds or the Resolutions. The Agency has been informed that the Los Angeles Redevelopment Agency anticipates raising certain constitutional and statutory issues with regard to the Act in a validating lawsuit to be filed with respect to certain bonds proposed to be issued by the Los Angeles Redevelopment Agency. The Redevelopment Agency of the City of Fresno cannot predict the outcome of such litigation or the effect, if any, which such litigation may have on the 1978 Series A Bonds. The limited partnership which owns Huntington Park Apartments Phase I has filed with the Wage Appeals Board of the Department of Labor an appeal from a decision of the Assistant Administrator of the Employment Standards Administration, Wage and Hour Division, United States Department of Labor in which the Assistant Administrator refused to grant a request by the limited partnership that a separate wage rate for residential carpenters be incorporated in the Davis-Bacon Act wage rate structure in effect at the beginning of construction. The limited partnership estimates that the maximum liability resulting from an adverse decision would be approximately $41,000. CERTAIN LEGAL MATTERS Legal matters related to the authorization, issuance, sale and delivery of the 1978 Series A Bonds are subject to the approval of Jones Hall Hill & White, San Francisco, California, Bond Counsel, and Mudge Rose Guthrie&Alexander,New York,New York,Special Bond Counsel for the Underwriters, each of the fees of which are contingent upon the delivery of the 1978 Series A Bonds. Certain legal matters will be passed upon by O'Connor, Cavanagh, Anderson, Westover, Killingsworth & Beshears, P.A., Phoenix, Arizona,Counsel for the Underwriters and Special Tax Counsel,certain of the fees of which are contingent upon the delivery of the 1978 Series A Bonds. RATINGS Standard& Poor's Corporation ("Standard& Poor's") has given the 1978 Series A Bonds a rating of "A". Any explanation of the significance of such rating should be obtained from Standard& Poor's. The Agency furnished to such rating agency information and materials relating to the 1978 Series A Bonds, the City and itself, certain of which information and materials have not been included in the Official Statement. Generally,rating agencies base their ratings on the information and materials so furnished and on investigations, studies and assumptions by the rating agencies. There is no assurance that such rating will remain in effect for any given period of time or that it will not be lowered or withdrawn entirely if, in the judgment of Standard & Poor's, circumstances so warrant. The Underwriters have undertaken no responsibility either to bring to the attention of Holders of 1978 Series A Bonds any proposed change or withdrawal of such rating or to oppose any such proposed revision. Any such change in or withdrawal of such rating could have an adverse effect on the market price of the 1978 Series A Bonds. An application for a rating on the 1978 Series A Bonds was originally submitted to Moody's Investors Services Inc. ("Moody's"). However, Moody's has refused to rate the 1978 Series A Bonds due to Moody's expressed lack of experience in evaluating certain real estate matters including the particular real estate aspects of the transaction contemplated by the issuance of the 1978 Series A Bonds. 35 UNDERWRITING The 1978 Series A Bonds are being purchased by Bache Halsey Stuart Shields Incorporated as representative of a group of Underwriters (the "Underwriters") named in the Bond Purchase Contract. The Underwriters have agreed to purchase the 1978 Series A Bonds at a price of$12,301,087 plus accrued interest. The Bond Purchase Contract provides that the Underwriters severally, but not jointly, will purchase all of the 1978 Series A Bonds,if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in the Bond Purchase Contract, the approval of certain legal matters by counsel and certain other conditions. The initial public offering prices may be changed, from time to time, by the Underwriters. The Underwriters may offer and sell the 1978 Series A Bonds to certain dealers (including dealers depositing 1978 Series A Bonds into investment trusts) and certain dealer banks and banks acting as agents at prices lower than the public offering prices stated on the cover page hereof. LEGALITY FOR INVESTMENT The Act provides that the Bonds shall be legal investments in the State of California for all trust funds, insurance companies, savings and loan associations, investment companies and banks, both savings and commercial, and shall be legal investments for executors, administrators, trustees and all other fiduciaries. The Act also provides that the Bonds shall be legal investments for State school funds and for any funds which may be invested in county, municipal or school district bonds, and the Bonds shall be deemed to be securities which may properly and legally be deposited with, and received by, any State or municipal officer or by any agency or political subdivision of the State for any purpose for which the deposit of bonds or obligations of the State is now, or may hereafter be, authorized by law, including deposits to secure public funds. MISCELLANEOUS Certain provisions of the Act and General Resolution, the 1978 Series A Resolution, the Note Resolutions, and other documents are summarized in this Official Statement. Such summaries do not purport to be comprehensive or definitive and reference is made to such documents for a full and complete statement of their respective provisions. All quotations from and summaries and explanations of the Act, the General Resolution, the 1978 Series A Resolution, and the Note Resolutions contained herein do not purport to be complete and reference is made to said documents for full and complete statements of their provisions. The Act, the General Resolution, the 1978 Series A Resolution, and the Note Resolutions are on file at the office of the Secretary of the Agency and may be inspected during office hours. The information contained above is subject to change without notice and no implication is to be derived therefrom or from the sale of the 1978 Series A Bonds that there has been no change in the affairs of the Agency from the date hereof. Pursuant to the General Resolution, the Agency has covenanted to keep proper books of record and account in which full, true and correct entries will be made of all its dealings and transactions under the General Resolution and to cause such books to be audited for each Fiscal Year. The General Resolution requires that such books be open to inspection at all reasonable times by the Holders of the Bonds during. regular business hours and that the Agency furnish a copy of the auditor's reports, when available, upon the written request of the Holder of any Outstanding Bond. This Official Statement is submitted in connection with the sale of the securities referred to herein and may not be reproduced or used,in whole or in part, for any other purpose. Any statements in this Official Statement involving matters of opinion,whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Agency and the purchasers or holders of any of the 1978 Series A Bonds. The execution and delivery of this Official Statement, dated August 30, 1978, by the Chairman of the Redevelopment Agency of the City of Fresno,Fresno County, California have been duly authorized by the Agency. REDEVELOPMENT AGENCY OF THE CITY OF FRESNO By /s/ DANIEL K. WHITEHURST Chairman 36 APPENDIX A SUMMARY OF CERTAIN FEDERAL AND PRIVATE MORTGAGE INSURANCE AND GUARANTY PROGRAMS AND DISPOSITION OF CERTAIN DEFAULTED MORTGAGE LOANS IN CALIFORNIA 1. Federal Housing Administration Single Family Mortgage Insurance Programs Mortgages may be insured by the Federal Housing Administration ("FHA") of the United States Department of Housing and Urban Development ("HUD"j which is responsible for the administration of various Federal programs authorized under the National Housing Act of 1934, as amended, and the United States Housing Act of 1937, as amended. The regulations governing all of the FHA programs under which the Agency's Mortgage Loans may be insured provide that insurance benefits are payable either upon foreclosure (or other acquisition of possession) and conveyance of the mortgaged premises to HUD or upon assignment of the defaulted Mortgage Loan to HUD. With respect to the assignment of Defaulted Mortgage Loans to HUD, mortgagees must first make a determination as to whether or not the default is caused by a circumstance or set of circumstances beyond the mortgagor's control which temporarily renders the family financially unable to cure the delinquency within a reasonable time or make full mortgage payments. If a determination is made that the default is caused by such circumstances,HUD must be requested to accept assignment, and must have rejected such request in order for the mortgagee to initiate foreclosure proceedings. Those Defaulted Mortgage Loans which do not meet the special assignment criteria described above are processed according to standard foreclosure procedures by the mortgagee. When. entitlement to insurance benefits results from foreclosure (or other acquisition of possession) and conveyance,the insurance payment is computed as of the date of default by the mortgagor, as defined in HUD regulations, and the mortgagee generally is not compensated for mortgage interest accrued and unpaid prior to that date. Under such foreclosure circumstances, the amount of insurance benefits generally paid by FHA is equal to the unpaid principal amount of the mortgage loan adjusted to reimburse the mortgagee for certain tax, insurance and similar payments made by it and to deduct certain amounts received or retained by the mortgagee after default. When entitlement to insurance benefits results from assignment of the mortgage loan to HUD, the insurance payment is computed as of the date of the assignment and includes full compensation for mortgage interest accrued and unpaid to the assignment date. The regulations under all insurance programs described above provide that the.insurance payment itself shall bear interest from the date of default or,where applicable,assignment to the date of payment of the claim at the same interest rate as the applicable HUD debenture interest rate determined in the manner set forth below. Under some FHA insurance programs, insurance claims are paid by HUD in cash unless the mortgagee specifically requests payment in debentures issued by HUD. Under others, HUD has the option at its discretion to pay insurance claims in cash or in such debentures. The current HUD policy, subject to change at any time,is to make insurance payments on single family mortgage loans in cash with respect to all programs covering such units as to which it has discretion to determine the form of insurance payment. HUD debentures issued in satisfaction of FHA insurance claims are issued to mature in twenty years and bear interest at the HUD debenture interest rate in effect under HUD regulations on the date of the mortgage insurance commitment or of the endorsement of the mortgage loan, whichever rate is higher. The debenture interest rate in effect as of June 1, 1978, is 7.125%, such rate having been effective since January 1, 1978. HUD debenture interest rates have generally been changed no more frequently than semi-annually and have ranged between 6.875% and 7.25% since July 1, 1974. A-1 When any property to be conveyed to HUD or subject to a mortgage to be assigned to HUD has been damaged by fire, earthquake, flood or tornado, it is required, as a condition to payment of an insurance claim, that such property be repaired prior to such conveyance or assignment. 2. Federal Housing Administration Mortgage Insurance for Moderate Income Housing Projects: Section 221(d)(4). Section 221(d)(4) of the National Housing Act is intended to assist in the financing of multi-family projects designed to provide rental housing for moderate income families. Priority in occupancy is given to those displaced by urban renewal or other governmental action. Projects must contain at least five units of detached, semi-detached, row, walk-up or elevator type multi-family, units. The project must be located on real estate which is held in fee simple or under a leasehold for not less than 99 years, or having a period of at least 50 years to run from the date the mortgage is executed. Leases may be for 50 years if the lessor is a government agency. Elderly (62 years of age or older), physically handicapped, and displaced-single persons are considered families under this program. There are no income requirements for tenants. In selecting tenants for the project covered by the mortgage, mortgagors cannot discriminate against any family with children. Any individual, partnership, corporation,or other legal entity approved by FHA including non-profit, limited dividend, cooperative, and public mortgagors, is eligible to apply for a Section 221(d)(4) insured mortgage loan. The maximum mortgage cannot exceed the lesser of 90 percent of the FHA estimate of the replacement cost of the project or a dollar amount based upon the aggregate number of bedrooms within the project units according to a schedule set forth by Housing and Urban Development regulation. FHA administratively limits the terms of the mortgage to 40 years. Apartments in the project are rented without subsidy in accordance with an allowable rental schedule determined by FHA. A new rental schedule must be approved by FHA before rental fees can be raised in future years. The regulations governing Section 221(d)(4) insured mortgage loans provide that insurance benefits are payable only upon foreclosure (or other acquisition by possession) and conveyance to HUD or, at the option of the mortgagee, upon assignment of the defaulted mortgage to HUD. In the event of an assignment of a defaulted mortgage loan to HUD, the mortgagee would be required to first cause all liens or encumbrances against the mortgaged property which are prior to the mortgage to be discharged. Thereafter, upon acceptance of the assignment, HUD may decrease the insurance payment by an amount equal to 1% of the unpaid principal amount of the mortgage loan. Current regulations under Section 221(d)(4) provide that the insurance claim,if any,will be paid by HUD in cash unless the mortgagee should specifically request payment in debentures issued by HUD. If entitlement to insurance benefits results from foreclosures (or other acquisition by possession) and conveyance, the insurance payment would be computed as of the date of default and the mortgagee generally would not be compensated for mortgage interest accrued and unpaid prior to that date. If entitlement to insurance benefits results from assignment of the defaulted mortgage loan to HUD, the insurance payment would be computed as of the date of assignment and would include full compensation for mortgage interest accrued and unpaid to the assignment date. The regulations provide that the insurance payment shall bear interest from the date of default or assignment, where applicable, to the date of payment of the claim at the same interest rate as the applicable HUD debenture interest rate in effect on the date of the firm commitment for mortgage insurance or initial endorsement, whichever is higher. When any property to be conveyed to HUD or any property which is subject to a mortgage to be assigned to HUD has been damaged by fire, earthquake, flood or tornado, it is generally required as a condition of payment of an insurance claim, that such property be repaired prior to the conveyance or assignment. A-2 3. Veterans Administration Guaranty Program The Servicemen's Readjustment Act of 1944, as amended, permits a veteran (or in certain instances his or her spouse) to obtain a mortgage loan guaranty by the Veterans Administration ("VA") covering mortgage financing of the purchase of a one- to four-family dwelling unit at interest rates permitted by the VA. The program has no mortgage loan limits,requires no down payment from the purchaser and permits the guaranty of mortgage loans of up to 30 years duration. The maximum guaranty that may be issued by the VA under this program is the lesser of 60%of the original principal amount of the mortgage loan or $12,500 for mortgages made prior to January 2, 1975 or $17,500 for mortgages made thereafter. The liability on the guaranty is reduced or increased pro rata with any reduction or increase in the amount of the indebtedness, but in no event will the amount payable on the guaranty exceed the amount of the original guaranty. Notwithstanding the dollar and percentage limitations of the guaranty, a mortgage holder will ordinarily suffer a monetary loss only where the difference between the unsatisfied indebtedness and the proceeds of a foreclosure sale of a mortgaged premises is greater than the original guaranty as adjusted. The VA may, at its option and without regard to the guaranty, make full payment to a mortgage holder of unsatisfied indebtedness on a mortgage upon its assignment to the VA. 4. Small Business Administration Guarantee Program The Small Business Act of 1953, as amended, authorizes financial assistance to small business concerns for a variety of business purposes. The United States Small Business Administration (the "SBA") may guarantee up to 90% of the principal amount of loans made by eligible lenders to small business concerns. Loans made for the purpose of acquiring real property or of constructing facilities may have a maturity of up to 20 years plus such additional period as is estimated to be required to complete construction. Pursuant to the terms of the guarantee agreement entered into by the SBA and each eligible lender, the SBA is obligated to purchase an amount equal to its percentage guarantee of the outstanding balance, plus accrued interest, of a loan upon receipt by the SBA of notice of default within 45 days thereof. Purchase by the SBA is required without notice upon the commencement by or against the borrower of any bankruptcy proceeding, receivership or dissolution proceeding. A lender which delays in notifying the SBA of default beyond 45 days from the date of default is not entitled to receive accrued interest on the guaranteed portion of the loan from the date of default until the date of receipt of the required notice by the SBA. If such delay causes any substantial harm to the Government, the SBA will not be required to purchase its required percentage of the loan. Any recovery from the sale or liquidation of the property securing a defaulted loan is shared ratably by the SBA and the lender in accordance with their respective interests in the loan. However, the SBA will ordinarily not resort to liquidation of collateral if there appears to be a reasonable probability that the loan may be repaid within a reasonable period. Consequently, there may be substantial delay in the lender's recovery of any portion of a defaulted loan in excess of that portion guaranteed by the SBA. 5. Private Mortgage Insurance The General Resolution requires that any private mortgage insurer of a Mortgage Loan must be qualified to insure mortgages purchased by the Federal Home Loan Mortgage Corporation ("FHLMC") or the Federal National Mortgage Association ("FNMA") and must be licensed to insure mortgages in the State and must be approved by the Agency. In general, FHLMC eligibility requirements for approval of private mortgage insurers presently include certain basic criteria relating to (i) the types of property securing insured mortgages, (ii) the risk/surplus ratio in areas of concentration, such as developments, (iii) the geographic distribution of mortgages subject to policies issued by the insurer, and (iv) the maximum insurance risk per insured. In addition, the FHLMC has certain minimum financial standards for mortgage insurers, including requirements as to certain surplus and loss reserve accounts, types of assets held by the insurer, and the insurer's general risk/surplus ratio. A-3 i The FNMA determines on an individual basis whether a private mortgage insurer is qualified for purposes of purchase of mortgages by the FNMA, weighing such general factors as the financial strength, expertise and experience of the insurer, the type of mortgages insured,the total liability of the insurer, and the types of benefits paid under each insurer's policy. The FNMA also requires, before purchasing mortgages,that the insurer be authorized to transact insurance in the state where the property securing the mortgage is located. Private insurers generally require an insured lender to give notice not later than ten (10) days after a borrower has failed to pay four (4) monthly installments on his loan. Before presenting a claim, the insured mortgagee must acquire title to the property. When a claim (consisting of the unpaid principal amount of the loan, accumulated interest through the date of the tender of conveyance of title to the mortgaged premises, real estate taxes, and hazard insurance premiums necessarily advanced by the insured and other necessary expenses including attorneys' fees not exceeding three per cent (3%) of principal and interest due) is presented, the insurer generally has the option of(i) paying a percentage of such claim, depending upon the premium plan and coverage selected when the loan is originated, and allowing the mortgagee to retain title to the property or (ii) upon conveyance of marketable title to the property to the insurer, paying the claim in full. Private mortgage insurance policies generally require that any physical damage or loss to the property be repaired or restored by the insured lender prior to the payment of a claim under such policy. The foregoing description of certain programs is only a brief outline and does not purport to summarize or describe all of the provisions of these programs. Disposition of Certain Defaulted Mortgage Loans in California In the event that a Mortgagor defaults in the payments on a Mortgage Loan and the Agency (or the Trustee on behalf of the Agency) institutes foreclosure or other recovery proceedings, there will be certain required time delays which, should they occur with respect to a substantial number of Mortgage Loans, could disrupt the flow of Revenues available for the payment of principal of and interest on the Bonds. These delays derive from the procedures applicable to insurance and guarantees, as well as those required under California law for the enforcement of creditor's rights. In order to obtain title to and possession of the property upon default, the Agency (or the Trustee on behalf of the Agency) will pursue its rights under the power of sale contained in instruments of the Mortgage Loan subject to the constraints imposed by applicable California law. During the three month period beginning with the filing of a formal notice of default,the Mortgagor will be entitled to reinstate the Mortgage Loan by making overdue payments. The power of sale is exercised by posting and publication of a notice of sale for at least 20 days, thereby resulting in a period of approximately four months between filing of a formal notice of default and sale. Under standard servicing procedures,the filing of the notice of default does not occur unless at least two full monthly payments are due and unpaid. Therefore, the effective period for realizing upon a Mortgage could be in excess of six months after the initial default. Shorter periods of time are possible if the Mortgagor is willing to execute a deed in lieu of foreclosure, if the property has been abandoned and more rapid foreclosure is required to protect the property,or if FHA exercises its option of accepting a direct assignment of the Mortgage. Under California antideficiency legislation, the Agency (or the Trustee on behalf of the Agency) has no personal recourse against a Mortgagor. Under Mortgage Loan insurance programs, if the mortgaged premises are damaged by fire, flood, earthquake, or tornado, repair of such damage is usually required prior to conveyance of the property in order to collect insurance benefits. The effect of this requirement, together with the absence of a requirement for earthquake insurance, is that insurance will not protect the Agency (or the Trustee on behalf of the Agency) to the extent of any damage to the insured property by reason of earthquake. Parts of California historically have been susceptible to earthquakes. A-4 APPENDIX B CERTAIN DEFINITIONS The following terms shall, for purposes of this Official Statement, have the following meanings unless the context shall clearly require some other meaning: Act means that part of the Community Redevelopment Law consisting of Chapter 8(commencing with Section 33750)of Part 1 of Division 24 of the Health and Safety Code of the State, amended as of the date of adoption of the General Resolution. Authorized Newspapers means a financial paper,or a newspaper of general circulation in the City and County of San Francisco, California,and.The Daily Bond Buyer or other financial paper or newspaper circulated in the Borough of Manhattan,City and State of New York,each of which is published at least once a day for at least five (5) days(other than legal holidays)in each calendar week,and is printed in the English language. Authorized Officer means the Director or Executive Director or Secretary and any other.officer or employee of the Agency authorized by resolution of the Agency to perform the act or sign the document in question. Bondholder or Holder or Holders of Bonds or any similar term,when used with respect to Bonds,means any person who shall be the bearer of any Outstanding Bond or Bonds registered to bearer or not registered or the registered owner of any Outstanding Bond or Bonds which shall at the time be registered other than to bearer;Holder,when used with respect to coupons, means any person who is a bearer of any such coupons. Bond Proceeds Fund means the Fund so designated which is established and created by the General Resolution. Cash Flow Certificate means an Officer's Certificate showing the effect of any proposed disposition or use of Revenues,Mortgage Insurance Proceeds,Funds and Accounts(hereinafter in this definition called"proposed disposition")on the flow of cash available to pay Principal Installments and interest on the Bonds. Each Lash Flow Certificate shall set forth (i) a schedule of anticipated Mortgage Insurance Proceeds and Revenues to be derived from all sources,including without limitation any additional Mortgage Loans proposed to be purchased or made, investment of funds in Permitted Investments, and any estimated Prepayments on Mortgage Loans(as to which the Cash Flow Certificate shall state that the Agency expects that such Prepayments will be made on or before the projected dates of Prepayment in such schedule); (ii) a schedule of Principal Installments of and interest on all Bonds which will be Outstanding after the proposed disposition, giving effect to any proposed call and redemption of Bonds; (iii) the amount by which the amount set forth in the schedule required under(i)exceeds the amount set forth in the schedule required under (ii);and(iv)the conclusion of the Agency that the anticipated Mortgage Insurance Proceeds and Revenues,together with any other amounts to be held in the Interest Fund,the Principal Fund,the Sinking Fund, the Mortgage Reserve Fund and the Debt Service Reserve Fund,will be at least sufficient, after the proposed disposition,to pay, as and when due,all of such Principal Installments and interest. Construction Loan means a Mortgage Loan purchased or made for the purpose of financing the construction of Residences. Costs of Issuance means items of expense payable or reimbursable directly or indirectly by the Agency and related to the authorization, sale and issuance of Bonds, which items of expense shall include, but not be limited to, printing costs, costs of reproducing documents, filing and recording fees,initial fees and charges of the Trustee,commitment fees for purchase of Notes, Bond discounts, legal fees and charges, professional consultants' fees, costs of credit ratings, fees and charges for execution, transportation and safekeeping of Bonds,costs and expenses of refunding and other costs,charges and fees in connection with the foregoing. Counsel's Opinion means an opinion signed by any attorney or firm of attorneys(who may be the Agency Counsel or an attorney or firm of attorneys retained by the Agency in other connections) licensed to practice in the state in which said attorney or firm maintains an office,selected by the Agency. Debt Service Reserve Requirement means, as of the date of calculation, the maximum amount of Principal Installments and interest payable in any succeeding Fiscal Year on all Bonds Outstanding under the General Resolution. Defaulted Mortgage Loan means any Mortgage Loan described in an Officer's Certificate and stated to be in default in accordance with its terms or any Mortgage Loan not so described in an Officer's Certificate on which payments are sixty days(60)in arrears. Escrow Payments means all payments made in order to obtain or maintain Mortgage Insurance, including payments for any federal program intended to assist in providing Mortgage Insurance for mortgage loans,and fire, flood and other hazard insurance and any payments required to be made with respect to Mortgage Loans for taxes or other governmental charges or other similar charges to a Mortgagor and customarily required to be escrowed. Fair Market Value means the lower of(i) the value of the Residence as determined by a qualified appraiser acceptable to the Agency or(ii) the sale price. Federal Securities means United States Treasury notes,bonds,bills or certificates of indebtedness or those for which the full faith and credit of the United States are pledged for the payment of principal and interest thereon, and which are not redeemable in advance of their maturity at the option of the issuer or any other person (other than the holder thereof) including United States Treasury(book entry) certificates,notes and bonds,state and local government series. B-1 Financing means the lending of moneys or any other thing of value for the purpose of facilitating Residential Construction pursuant to the Act and includes the making of Construction Loans and Mortgage Loans to purchasers of newly constructed Residences and the purchase,servicing and selling of Mortgage Loans. Fiscal Year means any twelve(12) consecutive calendar months commencing with the first day of July and ending on the last day of the following June. Fund or Account means a fund or account created by or pursuant to the General Resolution. Interest Payment Date means March 1 and September I of each year during which interest is due and payable on the Bonds. Interest Requirement means,as of any particular date of calculation,the amount equal to any unpaid interest then due,plus an amount equal to the interest to become due on the Bonds on such next succeeding Interest Payment Date. Issue Date means, with respect to Bonds of a particular Series, the date of the Coupon Bonds of such Series specified and determined in accordance with the General Resolution. Mortgage means a deed of trust or other instrument which constitutes a first deed of trust and lien in the State on real property and improvements thereon, together with a promissory note,the holder of which is either the Agency,the Trustee or a Mortgage Lender where the debt is secured by real property located as required in the Act and improved or to be improved by a Residence. Mortgage Expense Reserve Requirement means such amount,if any,as may be determined by an Officer's Certificate delivered to the Trustee at least annually to be maintained in the Mortgage Reserve Fund for expenses of the Agency or a Servicer for the payment of unpaid Escrow Payments and Mortgage foreclosure fees,including appraisal and legal fees and similar expenses required to preserve or acquire unencumbered title to property. Mortgage Insurance means insurance or a guaranty issued by an instrumentality of the United States government,insuring or guaranteeing,respectively, all or a portion of the principal and interest payments on Mortgages,or Private Mortgage Insurance. Mortgage Insurance Proceeds means the proceeds of Mortgage Insurance other than the proceeds received with respect to any Mortgage Loans purchased with the proceeds of and securing any Note or Notes. Mortgage Lender means any state or national bank or trust company, savings and loan association, or mortgage banker authorized to acquire,hold and deal in mortgages and approved by the Federal Housing Administration as a mortgagee of mortgages insured or guaranteed by the Federal Housing Administration or the Veterans Administration and approved by the Federal National Mortgage Association as a seller/servicer of mortgages. Such Mortgage Lender shall have a principal office and place of business in the State,shall be authorized to do business in the State,shall be authorized by the Agency to do business with the Agency and to aid in Financing pursuant to the Act on behalf of the Agency. Mortgage Loan means an interest-bearing obligation made for the purpose of Financing Residential Construction and secured by a Mortgage,the payment of which is insured or guaranteed in whole or in part by Mortgage Insurance. Mortgage Principal and Interest Reserve Requirement means an amount equal to the sum of(1)one percent(1%)of the unpaid principal amount of Mortgage Loans federally insured or guaranteed plus(2) ten per cent(10%) of the sum of(i) the aggregate unpaid principal amount of all other Mortgage Loans held by the Trustee plus(ii)the aggregate amount in the Mortgage Purchase and Loan Accounts at the time of calculation. Mortgage Purchase and Loan Accounts means the Accounts established by the General Resolution which shall be used solely for the purchase of Mortgages,the making of Mortgage Loans and the payment of Costs of Issuance. Mortgage Reserve Requirement means the aggregate of the Mortgage Expense Reserve Requirement and the Mortgage Principal and Interest Reserve Requirement. Mortgage Selling Contract means an agreement by and between the Agency and a Mortgage Lender for the purchase of Mortgage Loans pursuant to the General Resolution. Mortgage Servicing Contract or Servicing Agreement means a contractual agreement by and among the Agency,the Trustee and a Servicer for the servicing of Mortgage Loans by the Servicer. Mortgagor means the obligor under a Mortgage Loan who qualifies as a Participating Party under the Act. Notes means notes or other short-term evidences of indebtedness of the Agency issued to provide funds for Residential Construction. Officer's Certificate means a-certificate of the Agency signed by an Authorized Officer and filed with the Trustee. Operating Expenses means the Agency's expenses of carrying out and administering its powers, duties and functions in connection with Residential Construction and shall include,without limiting the generality of the foregoing:administrative expenses, legal,accounting and consultant's services and expenses,fees and expenses of the Trustee and the Note Trustee and Paying Agents and Note Paying Agents, payments to pension,retirement, health and hospitalization funds, amounts advanced to the Trustee for deposit in the Mortgage Reserve Fund and any other expenses required or permitted to be paid by the Agency under the provisions of the Act or the General Resolution or the Note Resolution or otherwise with respect to the Mortgages. Participating Party means any person, company, corporation, partnership, firm, or other entity or group of entities requiring Financing for Residential Construction pursuant to the provisions of the Act. No elective officer of the State or any of its political subdivisions or employee of the Agency shall be eligible to be a Participating Party. Permitted Investments means any of the following which at the time are legal investments for the Agency under the laws of the State and to the extent provided by law,for the moneys held under the General Resolution then proposed to be invested therein:(i) direct general obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America;(ii)bonds,debentures,participation certificates or notes issued by the Federal National Mortgage Association,the Government National Mortgage Association or the Federal Home Loan Mortgage Corporation or by any agency or corporation B-2 which has been or is hereafter created by or pursuant to an act of the Congress of the United States as an agency or instrumentality thereof,and(iii)certificates of deposit fully collateralized by obligations described in(i)and(ii)above,to the extent not insured by the Federal Deposit Insurance Corporation or by the Federal Savings and Loan Insurance Corporation. Prepayment means any amount received or recovered which reduces or eliminates the principal amount of any Mortgage Loan other than scheduled amortization payments of the principal amount of any Mortgage Loan,including any prepayment penalty,fee, premium or other such additional charge, less the amount retained by any Servicer of such Mortgage Loan, as additional compensation on account of such prepayment. Principal Installment means,with respect to any particular Principal Installment Date, an amount equal to the sum of(i) the aggregate principal amount of Outstanding Bonds payable on such Principal Installment Date as determined by the applicable Series Resolution (but not including Sinking Fund Installments) and (ii) the aggregate of Sinking Fund Installments with respect to all Outstanding Term Bonds payable on such Principal Installment Date as determined by the applicable Series Resolution. Principal Installment Date means the date on which Principal Installments are required to be made pursuant to the General Resolution. Principal Requirement means,as of any particular date of calculation and with respect to the Bonds Outstanding on said date of calculation,the amount of money equal to any unpaid Principal Installment then due,plus the Principal Installment to become due on the Bonds on the next succeeding Principal Installment Date. Prior Redemption Fund means the Fund so designated which is established and created by the General Resolution to purchase bonds in the open market or to redeem bonds in accordance with the applicable Series Resolution. Private Mortgage Insurance means insurance issued by a Private Mortgage Insurer under which the Private Mortgage Insurer, upon foreclosure or other recovery proceedings and conveyance of a marketable title to the mortgaged property, must pay a claim including unpaid principal,accrued interest and expenses of foreclosure or other recovery proceedings or in lieu thereof may permit the mortgagee or its assignee to retain title and may pay an agreed percentage of the claim. In order to qualify as Private Mortgage Insurance,the amount thereof must be at least(i) forty percent(40%)of the outstanding principal balance of any Mortgage Loan which is in excess of ninety percent(90%) and up to and including ninety-five percent(95%)of Fair Market Value; (ii) thirty-five percent(35%)of the outstanding principal balance of any Mortgage Loan which is in excess of eighty percent(80%)and up to and including ninety percent (90%) of Fair Market Value; (iii) twenty-five percent (25%) of the outstanding principal balance of any Mortgage Loan in excess of seventy percent(70%) and up to and including eighty percent(80%)of Fair Market Value; (iv) fifteen percent(15%)of the outstanding principal balance of any Mortgage Loan in excess of sixty percent(60%)and up to and including seventy percent(70%)of Fair Market Value;and(v)ten percent(10%)of the outstanding principal balance of any Mortgage Loan equal to sixty percent(60%) or less of Fair Market Value. Private Mortgage Insurer means any person licensed to insure Mortgages in the State and qualified to provide insurance on Mortgages purchased by FNMA or FHLMC, and approved by the Agency. Redemption Price means,with respect to any Note or Bond or portion thereof,the principal amount of such Note or Bond or portion thereof,plus the applicable premium,if any,payable upon redemption thereof. Redevelopment Project Area means a project area for which a final redevelopment plan has been adopted by the Agency. Requisition means an order directing the Trustee or a Mortgage Lender to pay money from one of the Funds or Accounts established by the General Resolution,duly executed by an Authorized Officer. Residence means real property improved with a residential structure and located in the City,the financing of which is or may hereafter be permitted under the Act. Residence includes(i)condominium and cooperative dwelling units,and both real property improved with single-family residential structures and real property improved with multiple-family residential structures, (ii) in Redevelopment Project Areas,real property improved with a commercial structure or mixed residential and commercial structure which,in the judgment of the Agency,is an integral part of a residential neighborhood,and(iii)outside of Redevelopment Project Areas, a residential structure in which dwelling units are committed for the period during which the loan is outstanding, for occupancy by persons or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of the residence,or which otherwise conform to such other requirements as may be hereafter established by the State Legislature under the Act. Residential Construction means the construction of new Residences meeting requirements of local codes and the redevelopment plan. Revenues means all payments, proceeds,charges,rents and all interest and other income derived in cash by the Trustee or a Servicer by or for the account of the Agency from or related to Residential Construction,including,without limiting the generality of the foregoing,scheduled amortization payments of principal of and interest on Mortgage Loans,Prepayments,the proceeds of sale of Mortgage Loans, the proceeds of sale of Residences on foreclosure of or other recovery proceedings with respect to Defaulted Mortgage Loans(net of amounts required to be paid to Mortgagors or other owners of Residences),the proceeds of fire and other hazard insurance and interest earned or income derived from the investment or deposit of moneys held by the Trustee, but not B-3 including such payments,proceeds,charges,rents,interest or other income if received with respect to any Mortgage Loans purchased with the proceeds of and securing any Note or Notes,or with respect to moneys contributed by the Agency to a special Account created by a Series Resolution where such Series Resolution provides for payment of interest earned or income derived on such special Account to the Agency,or with respect to the Residences financed by such Mortgage Loans and also not including Escrow Payments,commitment fees,financing fees,or Mortgage Insurance Proceeds. Servicer means any Mortgage Lender who shall, by a Servicing Agreement with the Agency and the Trustee, agree to service Mortgage Loans. Sinking Fund Installment means,with respect to any particular date and Series,the amount of money required by or pursuant to the applicable Series Resolution to be paid by the Agency on such date toward the retirement of the Term Bonds of such Series prior to their respective stated maturities. State means the State of California. Term Bonds means Bonds so designated in the applicable Series Resolution. Trustee means the bank or trust company or national banking association appointed to act as Trustee under the General Resolution, and its successor or successors and any other bank or trust company or national banking association at any time substituted in its place pursuant to the General Resolution. B-4 Bissell /AugU t Architects Gateway Plaza/190 Newport Center Drive Newport Beach, Calif. 92660 714/644-5670 t� B/A Associates sue, fi Rc aall Wins Highest NMI AIA Award for E �E. � v 1978. < , . One of the three California firms named by the AIA to re ceive the award this year, Bissell/August st is th ugu e first 1 Orange County-based firm wog _ ever to receive the nation's highest architectural honor f r � and only the 10th South- ern California firm selected �eyear history ofin the 30 the award. Bissell/August Associates has been named recipient of the 1978 National Honor Award from the American Institute of Architects for design of the "Sixty-01" Apartments, Redmond, Washington. In 1976 the General Service Agency of Orange County The design character of the structure was suggested by commissioned Bissell/August Associates to identify and its need to function as an integral portion of an import- delineate the parameters for housing Sheriff's Department ant civic space and yet be respectful of the surrounding South activities in South Orange County through the year 1986. residential environment. Additionally, it was essential This investigation culminated in the issuance of a prelim- to combine the need for security and efficiency inherent Orange County inary engineering report that would serve as a basis of in such a facility with the Sheriff's Department's desire design for the proposed facility. Subsequently, the firm to not intimidate but rather make welcome those who Sherriff's was retained to design the new South Orange County would use it. To these ends, Bissell/August Associates Sheriff's Substation to be located in the South Coast developed a building.of simple direct masses formed Substation Regional Civic Center Complex in Laguna Niguel. from a small scale brick unit that is soft earth brown in color. The brick is used both on the exterior and interior The 30,000 square foot facility will serve the space structural walls. In addition, the use of stained wood needs of the Sheriff's Administrative, Investigative, and ceilings in major public spaces and the introduction of Patrol functions in South Orange County as well as natural light to the major building interiors by strategi- provide multi-use spaces that can be used for public cally placed skylights, further serves to relieve the education, disaster relief or other associated functions. institutional ity typically associated with such facilities. The basement level of the structure will contain a Type I temporary holding facility as well as an enclosed Construction of the $2,000,000 project is scheduled to vehicle sally port for the private transfer of those in begin in the fall of 1978 with completion estimated to custody to and from the detention area. In addition, be late 1979. this area will be linked to the marshalls holding facility in the adjacent South County Municipal Court Complex An associated structure within the same site area will be by means of a security transfer tunnel. a facility for fueling and performing minor repairs on the Sheriff's Department patrol vehicles as well as a number of County vehicles assigned to the area. AL q_0 �'.� r���.�f+ x.,� 14 nR�+' r'.m.. f Fullerton Begins Redevelopment Implementation. i The Fullerton Redevelopment Agency of the City of The City Council has adopted the Redevelopment Plan Fullerton, California (population 95,300) has retained and Bissell/August Associates is proceeding with the Bissell/August Associates to develop a Master hedevel- tlrst phase of physical Implementation. opment Plan for its eight block central business district. Fullterton is different. The project area is healthy and has much less urban decay than many neighboring cities. Business vacancies are minimal and the buildings in a state of "acceptable" repair. A very healthy civic attitude has spurred the move to strengthen the Central Sj6 Business District with a dose of preventive planning which is designed to arrest decline before it occurs and :!> create an enhanced business climate through the estab- lishment of a strong downtown image. \\ First the firm conducted a land and building survey. Next, alternative redevelopment plans were conceived. A plan was selected by the city after an analysis of financial/marketing feasibility, traffic impacts and engineering considerations. A major design issue was to _ maximize pedestrian traffic without adversely affecting vehicular flow on Harbor Boulevard, a major regional Alley Treatment arterial. In addition to addressing these planning issues, Bissell/August Associates prepared theme treatments o 0 for building facades and public spaces. George Bissell FAIA, Frank August and Associates Gateway Plaza, 190 Newport Center Drive Newport Beach, California 92660 MIGMO aE BISSELL[ G LQ�]G�AUGUSTLQ��OC��LQt�C �ARCHITECTS FQULQ George Bissell FAIA, president of the firm had a dual purpose at the AIA Annual , T Convention in Dallas, Texas May 21-24. He officially accepted the award and, as president i-,., � of the California Council of the American Institute of Architects (CCAIA) was the state's chief delegate to the convention. " The Honor Awards are judged by a jury of five prominent architects and a graduate architectural student. This year they chose 7 recipients from nearly 400 entries. Awards E are made for distinguished accomplishments in architecture by American architects for projects anywhere in the world. In commenting on the Bissell/August selection the jury said, "Seven hundred and seventy apartment units, unified by wood shingled roofs have been beautifully integrated into a site initially considered unsuitable for building. The buildings, the site, and the landscape have been skillfully conceived, creating a sensitive balance between structure and nature." "Sixty-01" is a $25 million, two, three and four-story apartment development near THE oR� TE Seattle on 82 acres of forest land, half of which was preserved in the design. Twenty acres t a :.. of unbuildable peat bogs were transformed into a series of lakes which became the focal - HONORAWARD ISSCLI point of the development. The lakes also provide recreational boating and serve as a GEORGE B FAIAKRA\KAUGUST A8),S OG,ATPS �e reservoir for irrigation water. 's �'SIXTYAA AP,R„E , . jo HOV53RU COAAOR' In order to permit medium density housing in a low density area while maintaining the , environmental quality, Bissell/August worked early on with city officials and staff to develop the city's first planned unit development (PUD) ordinance. . _. Frank August Addresses NAHOR Convention. Frank August addressed the 37th Annual National Others speakers on the panel included William Macabe, g p m.P Association of Housing and Redevelopment Officials Housing and Urban Development (HUD) rehabilitation (NAHRO) convention in Las Vegas on May 22, 1978. specialist; Nat Taylor, San Francisco Planning Depart His subject was "Neighborhood Preservation - For ment;Jan Thorman, Department of the Interior, William ® Whom?". McClue, Chief of Rehabilitation, San Francisco Redevel- opment Agency; and Ed Aston, consultant to the City b Frank was invited to participate in the forum because of Sacramento. .A of his principal role in the programming and planning � of numerous renewal and rehabilitation roe h a projects, both� p 1 = -- N, public and private. One of the most widely known com- i pleted developments is the "Lido Village" commercial center and a marina in Newport Beach. Currently under construction are two similar public redevelopment projects - Main Street in Garden Grove and Second Street in Santa Ana. Other Bissell/August Associates' projects under contract and in the planning and design stages include the central business districts of the Cities of Fullerton, Anaheim and Placentia, all in Orange County. B/A �77 Gateway Plaza ❑190 Newport Center Drive Newport Beach,Calif. 92660 0714/644-5670 Allstate Savings and Loan Association will open its doors for business early next spring at their first Newport Beach location. The two-story 16,000 square foot branch and office building will be located at Number One Corporate Plaza Drive in The Irvine Company's new prestigious office building complex in Newport Center. The Allstate Savings and Loan branch will occupy 5,000 square feet of the ground level and will also provide a large capacity (250 persons) community room.The balance of the lower level will contain prime leasable office space. The 8,000 square foot upper level will be devoted entirely to single or multiple tenant office space. The majority of the office space will enjoy bay and ocean views. The structure is designated as a "gateway" building leading into Corporate Plaza and will be one of the first to be built.Site and design guidelines mandated brick as the basic exterior material and also led to the building's unusual rhomboid shape. The interior banking lobby is a dramatic skylighted two-story volume with brick walls and floor and contains mature trees and plants. 'Kill, J a► . �' � Z = . l 1 "A - ri� F w The Carlsbad Bazaar is typical of numerous small shop- ping centers constructed in the early fifties. Owner/Devel- oper Robert Wilson retained Bissell/ August Associates to --- design a major face lift of the 36,000 square foot center. fcarlsbac.... Many of the fifteen retail shops are now brought together through the use of a walled pedestrian arcade and mall.The mall shops were created inside the shell of an old supermar- ket and feature skylights and landscaping. The architecture is an interesting interpretation of the California mission period and an olive grove is being devel- oped in the parking area as the major landscape element. a Newport Hills Center was planned and designed by Bissell/August Associates for The Irvine Company Com mercial Division. The seven acre site is situated at the base `�� ' of a hillside residential development. The project was designed with a.very low profile which maintains maximum overviews from the adjacent homes. e _ The "village" or neighborhood shopping center contains approximately 75,000 square feet of commercial space encompassing Ralphs Market, retail shops, office space, a free-standing bank and a service station. A central court- yard allows free pedestrian circulation while maintaining _ I individual tenant identification and exposure. " — Newport Hills Center is an example of Bissell/August Associates complete professional capability: master plan- ning, design, engineering, landscaping, construction super- vision, signing and graphics. Not to be overlooked, is the fact that the project came in on schedule and substantially under budget. Del Mar Avionics designs, manufactures and markets specialized aviation and medical electronics hardware.They a have outgrown their 125,000 square foot facility which is located in the Irvine Industrial Complex. Construction will begin this fall on a new 41,000 square foot corporate head- quarters building which will be adjacent to their present A manufacturing facility. The two-story building will be of --- lowi e `. concrete construction. �AN- The tall, open lobby will have a full-length skylight which will continue down one wall to the ground level. Other Jam•r� , �:`. unique features will include acombination mini-theater/con- ference room; an outdoor employee recreation and lunch area; a helicopter landing zone and hanger; and a running track incorporated into the parking area landscaping which will be used for stress testing medical electronics systems. Bissell/August Associates does not usually design single family residences. An exception is presently under con- struction on one of the most spectacular oceanfront sites in Southern California at beautiful Irvine Cove in Laguna Beach. Mr. and Mrs. Bruce Del Mar are the owners of this 5,000 square foot contemporary Mediterranean villa. Y Very little of the house is apparent from the street. The building is comprised of wings connected to a central -- circulation spine and terracing down toward the sea. The wy, upper wings are guest bedrooms and have a view over the -, lower roofs. Intermediate terraces are formal and informal gardens. ,.., The various wings are separate heating zones, activated a � only when occupied, for energy conservation. Materi- als are very simple: plaster walls, clay roofs and floors, wood ceilings. The exposed wood roof structure creates many interesting and varied spatial experiences both inside the home and in the exterior spaces. The City of Garden - — Grove working with the ;✓� F Main Street Steering Com- L mittee, which represents the property owners and u��� merchants,retained Bissell/ d August Associates to con- p5 ceive a general redevelop- ment plan for the Main S+AWCftD AVE Street downtown area. This plan, which won ant , A.LA. regional planning L) /F CL)L award, was completed in 1975. �� II s o � :.�� � ai ��/� �a0 ''� Bissell/August Associates a m ; �� o r , then proceeded with the Agency on the design phase of the project focus- ing first on streetscape andscc street improvements. Phase II will deal with �I E - I implementing the re-use of �� � o,o "� � that section of the project '° (`L which is presently given to �t cgaoEN c E Le�vo � ',fir,_'•i�,��("Cr�t,� � ��e u�t.�. blighted single family v —Ccccoc,��c c c 4 c c JCL CCCq yci �.:_ �c coc,c housing. c - The property owners and merchants enthusiasm and -- 1 - - support has prompted the c,c c c. city to move forward with the project. Phase I � a construction is scheduled for completion late this fall. =w- f i L r' r • � xr�. `w g r � fi r a � r- Frank August is always exploring new directions in Architec- ture. Contemporary European design and planning has been of M particular interest to him for some time. He spent two years in Europe and Africa with a Danish architectural firm where he specialized in recreational and resort planning. Frank returned to Europe this spring to conduct a special six- week survey of new western European resort villages and facilities. He studied urban revitalization projects in France, Germany, Denmark, Switzerland and other countries. He met with city planning officials and architectural societies to discuss and share ideas and trends in urban planning. He is personally sensitive to the preservation of significant historical buildings which can be salvaged and usefully maintained as an important part of redevelopment. George Bissell FAIA, Frank August and Associates Gateway Plaza, 190 Newport Center Drive Newport Beach, California 92660 (0[W5)�CRL�BISSELL PML ME�KAUGUSTLa009)CC0,14�VC 0 ARCHITECTS [�QOLa Reprinted from URBAN DESIGN CASE STUDIESS.cond Awards Program 6400 Goldsboro Road, Washington, D.C. 20034 Lido Village, Newport Citation:Human scale is what Beach, Ca. this commercial waterfront redevelopment has in Client: Don Koll abundance. Apartments overlooking a marina were Designers: Bissell-August converted to shops and Associates, architects and restaurants. Patrons and planners. Fong Jung Larocca strollers park in a central ` Associates, landscape garage,then walk through the architects area on landscaped brick f, sidewalks. MOM wvolsmilll y �, g++r �yma�I r ia�w#��a iry 4 r�p�>���a ,ay�r x y �."+y"�a'Ba�a�Gi�i\a a��q r�,� er�r.,;re�rye+"+a�a�'��� ���sa' ��a �®%�a"a €e 1� E S�9�g r; rr+,� r' b sa S t tx a r w 3 3 e u 4 m The heart of Lido Village, a commercial redevelopment in Newport Beach just south of Los Angeles, is a five-level parking structure, which is almost invisible behind a blossom-covered traffic circle (1) and not much more noticeable seen head on (3). Included in the garage are 30,000 square feet of new retail and office space, but if the shops are what make the project profitable to private developer Don Koll,the parking is what makes possible its intimate scale and aura of leisure. Koll had to pull down several structures to make room for the parking garage in the center of his redevelopment, yet by doing so he made possible the unclogged streets within the project, streets ; •.• � which are really as much pedestrian promenades as they are vehicular passages. Parking is no longer permitted on the streets of Lido Village, only-in the garage, and since most of the shops are within a block of the garage,walking is easy. Making it even easier is the lack of raised � � sidewalks, curbs and gutters. Instead, clay brick paving, in various patterns, stretches from building to building, � � like water lapping a against docks; cars and strollers keel g p their places only by observing white lines in the pavement or the rows of trees, light posts and bollards that replace � conventional curbs (4). One edge of the project fronts on Newport Bay and a marina there. Originally, apartments looked out over the marina, but given aface-lifting and connected by decks at the second story,these are now shops and restaurants. A boardwalk runs along the marina, between it and the shops. Between the buildings, fingers of the brick street 71 paving (2) reach down to the boardwalk, leading people � �� t ' there, past the shops. What was once a parking lot is now an outdoor cafe overlooking the marina (5). ° � e � — X� r 1�» a h ti `x U Gateway Plazas 190 Newport Center Drive Newport Beach,Calif. 92660 714/644-5670 The Irvine Industrial Complex (IIC) Headquarters, received the Grand Award in the Commercial, Indus- trial and Institutional Buildings Category in the 1976 Gold Nugget Awards Competition, sponsored by the Pacific Coast Builders Conference and the National Association of Home Builders. The award was presented at the Pacific Coast Builders Conference in San Francisco to John Webb, project ` manager for The Irvine Company. f ,d Describing the winner, the judges said: "Very moms e ..� ° s. m mental. Excellent architecture. A simple, stony structure with clean lines and a powerful entry. A beautiful interior relates to a garden court." At 4770 Campus Drive, Irvine, within a block of Orange County Airport, the two-story brownish-red- brick and dark-glass structure contains 22,000 square feet of office space. Essentially a built-to-suit, it was developed by the Irvine Company Commercial Divi- sion and leased to IIC. P r The building is a variation of the conventional Cali 2 fornian rectangular office building with a center patio. i The patio was roofed over to form a garden room and one corner of the building was eliminated,the open ends being joined by a curved wall to form an entry. �.m � Focal point of the interior is the 36 foot by 72 foot garden room, which is 35 feet high and contains a full grown tree, mature shrubs, flowers, soft seat ing, and brick paving. Secretarial stations are open to the garden room. All offices have glass interior walls. Plants also are much in evidence in the conference- presentation room, which has a greenhouse at one end. z � Lido Village,the waterfront development of specialty shops, restaurants, and offices designed for Don Koll, received two major design awards in 1976. One was the annual honor award presented by the American p Society of Landscape Architects. This year the award p, � was presented at the A.S.L.A. national convention A held at the Hotel Del Coronado in San Diego. MIA +, .� The other prestigious honor was the Urban Design Award presented by the magazine Design and Envi ronment" in their 1976 international awards program. �s In 1975, Lido Village had received the First Honor Award in the Orange County American Institute of Architects biennial awards program. Lido Village has - been featured in national magazines and is often used L. as a location for the filming of commericials. rMa�c Bissell/August Associates has just completed the design for the U.S. Postal Services new facility in Yorba Linda,California. Construction is scheduled A .. to begin in January,1977.The 16,000 sq.ft.struc- a a ture will feature brick masonry construction which q will be the finished exterior and interior walls.The visible portion of the roof will be metal.The build- ing is designed with the objective to reduce the visual mass of the high bay structure to a pedestri an oriented scale. The elements and detail are sim- ple and straight forward, keeping with the archi- tectural heritage of the early California settlers. �e it I'i Turtle Rock Community Park is a twenty acre � project of the City of Irvine, California.The site is a presently occupied by the former Irvine family riding stables and paddock building. The planning and design of this project is a joint- venture of Bissell/August Associates and Kammeyer Lynch& Partners, Landscape Architects. The plan for the building complex preserves and converts the 2,000 sq. ft. paddock structure into an Interpretive and Nature Center adjacent to a 9 � new 11,000 sq. ft. Recreation Center.The Recrea- tion Center will house a large multi-purpose room with a stage, several smaller community rooms, " --� lounge, indoor/outdoor craft and meeting areas, staff offices, sports equipment storage, and out- do or amphitheater. r`3 The s ark project is budgeted at $1.7 million and- � �a � �� construction is to begin in June, 1977. This on-campus Student Health Center is being designed by Bissell/August Associates for the California State College at San Bernardino. The 4 10,674 sq. ft. center will provide a full spectrum of medical and health services for students and faculty. It will house a pharmacy,physical therapy X treatment center,medical library/conference room, two laboratories and a fully equipped emergency treatment clinic. The exterior walls will be of site cast sandblasted b concrete panels. The major interior space will feature an atrium with abundant landscaping, brick floors and wood ceilings. � � " ` Construction is scheduled for Spring, 1977. The Redevelopment Agency of the City of Santa Ana, / California (population 180,000) selected Bissell/ / August Associates to prepare a specific planning study for the salvage, preservation and re-construc- tion of a ten block downtown area. In the heart of Santa Ana's renaissance downtown district are a number of old buildings,some of which a date back to near the turn of the century such as the t Santora Building at Second Street and Broadway.The �� � ' planners propose to save and bring back to productive � i w. use the best of these significant old structures as part of the unified development goals. -- , 4' Ka _"ZI The plan will also provide the individual property _ r owners the opportunity to work with the architects to improve their own property as part of the redevel- -� opment project. Special emphasis is being given to provide adequate parking and to encourage foot traffic through this historical section of Orange County. A;a In 1974 George was elevated by his peers to Fellowship in the American Institute of Architects, one of the highest honors the Institute can bestow. Since then he has assumed a more active role with the A.I.A., serving as President of the Orange County Chapter in 1975. At the 1976 annual meet- P , + ing of the California Council of the American Institute of Architects, a state-wide organization, George was elected First Vice President, President • ;� elect for 1977. He is currently a Director of the Architectural Guild,the support group for F the University of Southern California School of Architecture; an officer of the Newport Center Association which represents the businesses and pro- fessions in Newport Center; and a Director of the Lido Isle Yacht Club. George recently returned victorious from the thousand mile Los Angeles to Mazatlan, Mexico, yacht race. He crewed aboard Jim Kilroy's "Kialoa" which was the big winner with first to finish and first in class honors. George Bissell FAIA, Frank August and Associates Gateway Plaza, 190 Newport Center Drive Newport Beach, California 92660 �COGC�C BISSELL C�G�LQ�G�AUGUSTQ��OC��Qt�C 'ARCHITECTS �LQl7LQ George Bissell, FAIA Senior principal and founding member of the firni.in 1957.'Graduated from the University of fi4 Southern California in 1953; Bachelor of Archi- tecture. Registered architect in California, Florida, Illinois, Arizona, Texas, Washington, and,New Mexico. Certified by the National A_ Council of_Architectural Registration Boards. Elected to Fellowship in the American Institute of Architects 1974. President, Orange County Chapter A.I.A. 1975..President, California Council A.I.A., the 4500 member•state profes- sional society, 1978. Appointed to the A.I.A. National Committee on Design 1979. Frank•August �7 Ohio State University, School of Architecture and College of Engineering; Bachelor of-Archi tecture, 1961. Joined George Bissell in 19,61. _ After two years of work and travel in Europe ' and Africa rejoined firm and became senior t principal in 1968. . BC o � o Princi als r Robert Lawson " Registered Structural Engineer. Associated with the firm since 1961..Responsibilities include _ engineering, estimating and construction cost control. Glen Gellatly Associated with the firm since 1966. Prime . t responsibility is planning and design develop ment. t James Arthur Registered Architect in California. Associated with the firm in 1975. Prime responsibility is management and construction services. Sixty-01 Apartments National A.I.A. Honor Award, 1978 Redmond, Washington A.I.A.—R.C.S.B. Merit Award, 1973 A.I.A.—Sunset Magazine Honor Award, 1971 I- Orange County Chapter A.I.A. Merit Award, 1971 N.A.H.B. Grand Award, 1970 A.I.A.—House& Home Merit Award, 1970 Irvine Industrial Complex Building Orange County Chapter A.I.A. Merit Award, 1977 Newport Beach, California N.A.H.B. Grand Award, 1976 A.I.A.—Masonry Industry Honor Award, 1976 Gellatly Residence Orange County Chapter A.I.A. San Clemente, California Honorable Mention, 1977 Lido Village Orange County Chapter A.I.A. Honor Award, 1975 Newport Beach, California A.S.L.A. Merit Award, 1976 Urban Design Award, 1976 A.I.A.—Masonry Industry Honor Award, 1974 Bissell/August/Lawson Offices Orange County Chapter A.I.A. Honor Award, 1975 Newport Beach, California A.I.A.—Masonry Industry Honor Award, 1974 Awards 280 Newport Center Building Orange County Chapter A.I.A. Merit Award, 1975 Newport Beach,California Coto de Caza Condominiums Orange County Chapter A.I.A. Merit Award, 1975 Trabuco Canyon, California N.A.H.B. Merit Award, 1975 Main Street Redevelopment Orange County Chapter A.I.A. Garden Grove, California Honorable Mention, 1975 Sun Lakes Community Center Orange County Chapter A.I.A. Chandler, Arizona Honorable Mention, 1975 Block 100— Newport Center Orange County Chapter A.I.A. Newport Beach, California Honorable Mention, 1975 Mustang Island Resort Progressive Architecture Award, 1974 Corpus Christi, Texas Orange County Chapter A.I.A. Merit Award, 1973 Ancient Mariner Restaurant Orange County Chapter A.I.A. San Diego, California Honorable Mention, 1973 Irvine Meadows Mobile Home Park Orange County Chapter A.I.A. Honor Award, 1973 Irvine, California Architects and Engineers Forum Honor Award, 1971 Tempe Meadows Mobile Home Park Orange County Chapter A.I.A. Honor Award, 1973 Tempe, Arizona Riverside Meadows Mobile Home Park Orange County Chapter A.I.A. Honor Award, 1973 Riverside, California Santa Fe Springs Office Building Orange County Chapter A.I.A. Merit Award, 1973 Santa Fe Springs, California N.A.H.B. Merit Award, 1973 Coto de Caza Club Orange County Chapter A.I.A. Merit Award, 1973 Trabuco Canyon, California Architects and Engineers Forum Honor Award, 1970 Newport Center Auto Wash Orange County Chapter A.I.A. Honor Award, 1971 Newport Beach,California Architects and Engineers Forum Honor Award, 1971 359 Newport Center Building Orange County Chapter A.I.A. Merit Award, 1971 Newport Beach, California Michelson Plaza Office Building Orange County Chapter A.I.A. Honor Award, 1971 Newport Beach, California Architects and Engineers Forum Honor Award, 1971 Rancho California Building Architects and Engineers Forum Merit Award, 1971 Newport Beach, California Thin-Shell Concrete House Prestressed Concrete Institute Merit Award, 1964 Laguna Niguel, California Precast Concrete Panel House A.I.A, House& Home Merit Award, 1962 Sierra Madre, California Convent& Rectory Orange County Chapter A.I.A. Merit Award, 1962 Pasadena, California Earney House Orange County Chapter A.I.A. Merit Award, 1962 Glendora, California Dental Arts Building Orange County Chapter A.I.A. Merit Award, 1962 Pasadena, California Pasadena Chapter A.I.A. Merit Award, 1962 Bissell House A.I.A.—House& Home Merit Award, 1960 Covina, California Saga Motor Hotel Pasadena Chapter A.I.A. Merit Award, 1959 Anaheim, California OFFICE BUILDINGS American District Telegraph Corp., New York Azimuth Equities, Inc., Newport Beach Bissell August Lawson, Newport Beach tg Warner Corp.,Chicago el Mar Avionics, Irvine The Irvine Company, Newport Beach Kilroy Industries, Los Angeles. Don Koll Company, Newport Beach Weyerhaeuser Company,Tacoma FINANCIAL INSTITUTIONS Allstate Savings& Loan,Glendale Bank of America, Los Angeles Bank of Arizona, Phoenix Bank of Irvine, Irvine Home Savings& Loan, Los Angeles Laguna Federal Savings& Loan, Laguna Beach World Savings& Loan,San Francisco EDUCATIONAL FACILITIES Catholic Archdiocese of Los Angeles Catholic Archdiocese of Orange The Christian Brothers,Calisfoga California State Universities, Long Beach J CD Client LiSt Representativ HOUSING AND COMMUNITY DEVELOPMENT Argosy Land Development Corp., Dallas Arvida Corp., Miami AVCO Community Developers, Laguna Niguel Azimuth Equities, Inc., Newport Beach Flato Construction Co.,Corpus Christi Ford Motor Co.,Dearborn Great Southwest Corp., Dallas Janss Corp.,Thousand Oaks Northwest Mortgage Co. (Sixty-01),Seattle Rancho California,Temecula Tayvel Land Co.,Vail SHOPPING CENTERS Azimuth Equities, Inc., Newport Beach Braiker Development Co.,Simi Valley The Irvine Company, Newport Beach Don Koll Co., Newport Beach The Maguire Partnership, Los Angeles Sun Lakes Development Co.,Phoenix RECREATION AND RESORTS Azimuth Equities, Inc., Newport Beach Vic Braden Tennis College, Trabuco Canyon Coto de Caza Corp., Los Angeles Flato Construction Co., Dallas City of Irvine Community Services, Irvine Janss Corp.,Thousand Oaks Rancho California,Temecula Statler Hilton Inns,Jacksonville Sun Lakes Development Co.,Phoenix INDUSTRIAL BUILDINGS Baron-Blakeslee, Inc., Chicago Goldenwest Equity Properties, Newport Beach Kilroy Industries, Los Angeles Don Koll Company, Newport Beach Southern California Edison Co., Rosemead United States Marine Corps,Twentynine Palms GOVERNMENTAL AGENCIES City of Anaheim City of Fullerton City of Garden Grove City of Irvine - City of Newport Beach City of Placentia City of Santa Ana County of Orange United States Army United States Navy United States Postal Service \�r s ,F "g" sr. y `E • a � r I a a ♦ �• "�o w � r � a`* R. aa a . \ ru I .��\• .`Za ��...,, .:d; �Av A.v v w ,�� tea. � � vA�\. 1����. :��i �v :�°`a :3 ��� ar�Q .•�VAAA y��c�w•a �._��`ka ::.v zi\..w vvVA\a.• A vv,�\��r��.�c,..��\,�.. .�.t i, a''S. .0 ������ ,�r� �` ' ' arm. .�:;,....y., ��..... ...,�- ....,.::..: s ...•.vvAv�,iV:�. � ..�u. �>:. �,. y ,,� :, � �,.,.2at?Z. v.�.:a\ \ ,..::... .: �< ...: .vw.:v •\ ..�.:�av.awe a. - l=" v �.-; �. a..��..� 9 .,., r` ., ?� e INS A� ��� ,? y"`, .a�.�re. v `a\� ��� x� x. a `K:. �� �`✓ "• ' x., ,a.�����•;�_. .,ti a ,n �;�a ._ ,� _:.�a\\ ��..'v` a, ':ay v l�.:;v� ���•:o,;�S Za.. ��.. ,..:>,`� � 'c.`k� ..�.-r:,�` �c"w.tx �C :,`. aiA� ��\'�\. h`„ :.�� A��;'`.� y a:av i `•.a��� �;:v �yil .` q1:>. >.�� ��:. � �:��'�3 �:4 .;a?-�4' �•_ ^tee F �t ��• j{i V•k � s• a� �` tt � u oix Gkl ,V � SF 0 o u : y �4 F�11- III 4V c - ` t �� •�v � A .v lj« «� g, �s� i, ,�`y 3a�''. .s z4 54 q p� r < lip i f*... ` &� ' y„+.�+ta� "Cl W ;,, .';b . .Rr3 y,; > - 3•.a4. 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