HomeMy WebLinkAboutR21-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND EMPIRE,
INC. (NHS) HOME LOAN AGREEMENT
--- ACQUISITION OF THE PROPERTY
DATE: December 18, 2002 LOCATED AT 688-698 W. 6TH STREET
____________________________n__________nn_____________m_________________________________________iQ_~!>_IQ~~_~_~~_I!~~~~~~QL______
Svnopsis of Previons Commission/Conncil/Committee Action(s):
FROM:
Maggie Pacheco .' _ "\ ~U1;lJECT:
Deputy DirectorlDirector >i . - - - . , !J
Housing & Community Developm~ < · . ;..i II i, i t:.
On November 21, 2002, Redevelopment Committee Members Anderson, Suarez and Estrada unanimously voted to
recommend that the Community Development Commission approve this item.
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Recommended Motion(s):
(Communitv Development Commission)
MOTION:
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE THE HOME LOAN AGREEMENT BY AND BETWEEN THE AGENCY AND
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS) FOR THE
ACQUISITION OF THE PROPERTY LOCATED AT 688-698 W. 6TH STREET (CENTRAL CITY
NORTH REDEVELOPMENT PROJECT AREA/OLD TOWNE SAN BERNARDINO).
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Contact Person(s):
Maggie Pacheco
Central City North
Phone:
(909) 663-1044
I
Project Area(s)
Ward(s):
Supporting Data Attached: 121 Staff Report 121 Resolution(s) 121 Agreement(s)/Contract(s) 0 Map(s) 0 Letters
FUNDING REQUIREMENTS Amount: $ 375,000
Source:
HOME Federal Funds
/-
Budget Authority:
SIGNATURE:
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P:\Clerical Services Dept\Margaret ParkerlAgenda\CDC 02-03\03-01-06 NHS 688-698 6th Sl.doc
COMMISSION MEETING AGENDA
Meeting Date: 01/06/2003
Agenda Item Number: ..I/. 2.1
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Neil!:hborhood Housinl!: Services of the Inland Empire. Inc. (NHS)
HOME Loan Al!:reement - Acauisition of the Property Located at
688-698 W. 6th Street (Old Towne San Bernardino)
BACKGROUND:
The City/Agency and Neighborhood Housing Services of the Inland Empire, Inc. (NHS) have
established a partnership to carry out housing services to the community. These services include, but
are not limited to, administration of the Mobile Home Handy Worker, the Owner Occupied
Rehabilitation Program, development of the City's first "Youth-built" housing project on Magnolia
Avenue, and amongst others, operation of a citywide Homebuyer Education Program. During the last
fiscal year, 285 households benefited from the Homebuyer Education Program out of which 123
households purchased homes in the City. In addition, NHS owns and manages 11 affordable rental
housing units within NIP Area # 1. NHS purchased these 11 units with private resources, NHS equity,
and Agency CHDO funds as approved by the Commission in October 2001. Seven of these units
have been fully rehabilitated and are occupied. The remaining four units are being rehabilitated and
should be completed by the end of November 2002. At the time of approval of this project, Staff
advised the Commission that the 11 units would be the beginning of NHS's multi-family CHDO
portfolio and that as housing projects and opportnnities were identified in the future, Staff and NHS
would return to the Commission for additional considerations and approvals.
On November 4, 2002, the Community Development Commission approved a $110,000 capacity
building grant for NHS to set -up a one stop real estate service center that would identify, in the
future, single-family properties to buy and resell to generate revenue for the purchase of distressed
multi-family housing complexes as designated by the Agency. At the time the Commission approved
this grant, the 688-698 West 6th Street property, a six-unit complex adjacent to the TELACU Senior
Housing Project under construction, was noted as the first possible acquisition candidate under the
mutually agreed upon multi-family housing program spearheaded by Agency Staff and NHS
representatives. This location was selected as a result of the Mayor and Council's desire to focus
neighborhood preservation activities within certain geographic parts of the City, such as Old Towne
San Bernardino, between 6th and 9th Streets, F Street to 1215 (also located within the Central City
North Redevelopment Project Area).
CURRENT ISSUE:
NHS has reached agreement with the existing owner to purchase the property located at 688-698
West 6th Street and adjacent vacant property, APN 0134-021-260000, at a sales price of $300,000
subject to certain conditions, and has placed the sales transaction in escrow with a good faith deposit
and contingent upon financing approval of the Agency (i.e., appraisal of the property supporting the
sales price, as per HOME regulations). The property has six units (five one-bedroom units and one
three-bedroom unit) plus a vacant parcel. Two units are vacant and the owner has agreed to keep
them vacant at NHS's request. The monthly rental for each unit is between $380-$450. The total
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COMMISSION MEETING AGENDA
Meeting Date: 01106/2003
Agenda Item Nnmber: ~J-
Economic Development Agency Staff Report
Neighborhood Housing Services HOME Loan Agreement
Page 2
monthly income is therefore approximately $1,500 per month less maintenance, taxes, insurance, and
management costs. The property is in relatively good condition, but will require some deferred
maintenance type of improvements, i.e., painting, electrical, plumbing, exterior fa<;ade improvements,
etc., estimated at less than $75,000. At the current vacancy, coupled with the low rents being paid,
there are insufficient funds to support a debt of $375,000. For comparison purposes, a conventional
loan of $375,000 at a 9% rate is equivalent to a monthly principle and interest payment of $3,800.
Furthermore, should NHS acquire the property, the existing tenants will be required to sign leases and
abide by the lease terms. Should any tenant not comply with the lease terms, NHS will have the right
to terminate the tenancy and the tenant would not be entitled to any benefits. Otherwise, should NHS
require any tenant to move without due cause, NHS would be obligated under the HOME regulations
to insure that the displaced tenant is afforded relocation rights and benefits.
In light of these circumstances, it would be unlikely that NHS would be able to secure traditional
conventional financing for this property; therefore, Staff and NHS are proposing that the Agency act
as the interim lender on the property, and provide NHS with a three-year short-term loan, deferred
monthly payment, at the rate of 3 %. The loan would cover the purchase price (assuming the appraisal
of the property supports the purchase price), plus up to $75,000 will be budgeted for any type of
immediate improvements needed to insure the housing units are sound, safe and sanitary. However,
it is the intent of Staff and NHS to work together to look at either preservation of the units and
perhaps treat the fa<;ade of the building to compliment the new TELACU senior housing project, and
if not feasible, look to the possible demolition and reconstruction of the property with a more modem
multi-housing complex. The three-year window would provide ample time to prepare a development
scheme, stabilize the property, and obtain long-term financing. The Agency would hold a first trust
deed on the property and record a maintenance and affordability covenant as well. Acting as the
primary lender will allow the Agency to take control of the property more easily and more
expediently should NHS fail to perform under the agreement with the Agency.
ENVIRONMENTAL IMPACT:
Prior to the release of any federal funds, the Agency will adhere to the National Environmental Policy
Act (NEP A) and California Environmental Quality Act (CEQA) guidelines. All mandated Notices of
Release of Funds would be published prior to funds disbursement.
FISCAL IMPACT:
Funds for this transaction are available in the Economic Development Agency's 2002-2003 HOME
Federal Grant budget in the amount of$375,000.
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COMMISSION MEETING AGENDA
Meeting Date: 01106/2003
Agenda Item Number: IlJJ
Economic Development Agency Staff Report
Neighborhood Housing Services HOME Loan Agreement
Page 3
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
~7 Q f~
Maggie Pacheco, Deputy Director/Director
Housing & Community Development
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P:\Clerical Services Dept\Margarcl ParkeMgenda\CDC 02-03\03-0]-06 NHS 688-698 6th Sl.doc
COMMISSION MEETING AGENDA
Meeting Date: 01106/2003
Agenda Item Number: f{2.J
/---., ,---
RESOLUTION NO.
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A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BER.~ARDINO
APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR
OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO ("AGENCY") TO EXECUTE THE HOME LOAN
AGREEMENT BY AND BETWEEN THE AGENCY AND
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND
EMPIRE, INC. (NHS) FOR THE ACQUISITION OF THE
PROPERTY LOCATED AT 688-698 W. 6TH STREET (CENTRAL
CITY NORTH REDEVELOPMENT PROJECT AREA/OLD TOWNE
SAN BERNARDINO).
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WHEREAS, Neighborhood Housing Services of the Inland Empire, Inc., a California
non-profit corporation (the "Participant") known locally and internationally for building and
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preserving affordable housing for low- and moderate-income households, has requested
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financial assistance in the amount of Three Hundred Seventy-Five Thousand Dollars ($375,000)
("HOME Loan") from the Agency for the purchase, rehabilitation, and occupancy by HOME
eligible households ("HOME Project"), of the properties identified as: APN 0134-021-27000
(688, 690, 692, 694, 696 West 6th Street) and the adjacent vacant property, APN 0134-021-
260000 (the "Property"); and
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WHEREAS, the Agency shall provide the HOME Loan to Participant as set forth under
the terms of that certain HOME Loan Agreement and the HOME Regulatory Agreement by and
between the Participant and the Agency.
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NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER,
AS FOLLOWS:
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A detailed description of the HOME Project is set forth in the HOME
Section I.
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Loan Agreement.
Section 2.
Subject to the terms and conditions of the HOME Loan Agreement, the
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Community Development Commission ("Commission") hereby reserves for the Participant the
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Loan in the sum of not to exceed Three Hundred Seventy-Five Thousand Dollars ($375,000) in
City HOME Fiscal Year 2002/2003 Program Funds ("HOME Loan") as approved and budgeted
in the Agency budget by the Commission for such purposes.
Section 3. The Commission hereby finds and determines that the approval of the
HOME Loan Agreement, and the disbursement of the HOME Loan to the Participant requires
no further environmental assessment under the provisions of the National Environmental
Protection Act (NEPA) in view of the categorized exemption applicable to the HOME Project
as set forth at 24 CFR Part 58.35( c )(2) and under the provisions ofthe California Environmental
Quality Act in the view of the exemption found at Public Resources Code Section 21080.14
(affordable housing for lower income persons in urbanized areas). The Executive Director of
the Agency ("Executive Director") is hereby authorized and directed to prepare the appropriate
forms of written notice of the determinations of categorical exemption for the HOME Project as
provided for in this Section 3.
Section 4. The Commission hereby approves the form of the HOME Loan
Agreement as presented at the meeting at which this Resolution is adopted. The Executive
Director is hereby authorized and directed to execute the HOME Loan Agreement on behalf of
the Agency, together with such technical and conforming changes as may be recommended by
the Agency Counsel. The Executive Director is further authorized and directed to execute all
ancillary and related documents and agreements subject to the terms and conditions as set forth
]9 therein.
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This Resolution shall become effective immediately upon its adoption.
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A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
("AGENCY") TO EXECUTE THE HOME LOAN AGREEMENT BY AND
BETWEEN THE AGENCY AND NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND EMPIRE, INC. (NHS) FOR THE
ACQUISITION OF THE PROPERTY LOCATED AT 688-698 W. 6TH
STREET (CENTRAL CITY NORTH REDEVELOPMENT PROJECT
AREA/OLD TOWNE SAN BERNARDINO).
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
8 Community Development Commission of the City of San Bernardino at a
meeting
9 thereof, held on the
day of
, 2003, by the following vote to wit:
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Commission Members:
Aves
Navs
Abstain
Absent
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ESTRADA
LONGVILLE
MCGINNIS
DERRY
SUAREZ
ANDERSON
MC CAMMACK
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Secretary
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day of
,2003.
The foregoing resolution is hereby approved this
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Judith Valles, Chairperson
Community Development Commission
of the City of San Bernardino
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By:
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
2003 HOME LOAN AGREEMENT
THIS AGREEMENT is dated as of January 6, 2003, by and between the Redevelopment
Agency of the City of San Bernardino, a public body corporate and politic (the "Agency"), and
Neighborhood Housing Services of the Inland Empire, Inc., a California non-profit corporation
(the "Participant") and is entered into in light of the facts set forth in the following Recitals:
RECITALS
I. The City of San Bernardino (the "City") is an entitlement city and receives
annually certain Federal funds under the Home Investment Partnership Act ("HOME Program")
allocation for Fiscal Year 2002/2003, from the United States Department of Housing and Urban
Development ("HUD") in order to carry out eligible housing activities of the City and the
Agency in accordance with Federal program regulations set forth in Title 24 Code of Federal
Regulations Part 92; and
2. The City has designated and authorized the Agency to administer and implement
the HOME Program; and
3. In accordance with the HUD guidelines under the HOME Program, HOME funds
may be used for locally based non-profit housing entities to carry out affordable housing
activities in compliance with the HOME Program regulations; and
4. The Participant is a locally certified, approved and experienced non-profit
housing organization, and the Participant desires to participate with the Agency in activities
eligible under the HOME Program, and the Participant further agrees that the beneficiaries of its
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activities under the HOME Program and this Agreement, are or will be families and persons who
meet the income eligibility guidelines of24 CFR Part 92.216 and Part 92.217; and
5. The Agency deems that the activities to be undertaken by Participant herein are
consistent with and supportive of the HOME Program regulations and that the financial
assistance of the Agency is necessary and appropriate to initiate the housing activities of the
Participant as set forth herein; and
6. The Agency deems it desirable to enter into this HOME Loan Agreement with
Participant in order to provide HOME funds for the acquisition of the Property, as described in
Exhibit "A" herein, the rehabilitation and preservation of the Property for the provision of
affordable rental housing in accordance with the HOME Program guidelines; and
7. The use of the Property shall be subject to the HOME Program Regulatory
Agreement, Exhibit "B", and incorporated herein by this reference; and
NOW THEREFORE, THE PARTIES TO THIS HOME LOAN AGREEMENT
COVENANT AND AGREE AS FOLLOWS:
SCOPE OF PROJECT
Section 1.
Loan Amount, Uses and Scope ofProiect
Subject to the terms and conditions of the HOME Loan Agreement, the Agency shall
make available to the Participant a loan in the amount of Three Hundred Seventy-Five Thousand
($375,000), ("HOME Loan") from 2002/2003 HOME Program funds for the purchase and
rehabilitation of the Property. The HOME Loan shall be for a term of three (3) years ("Term"),
at three percent (3%) per annum, deferred monthly payment until the maturity date of the HOME
Loan in accordance with the provisions of the Promissory Note (Exhibit "C").
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The HOME Loan shall be used, by the Participant, solely for the following purposes:
(a) Up to Three Hundred Thousand Dollars ($300,000) for the purchase of the
Property. The purchase price of the Property shall be supported by a current appraisal, as
prepared by a qualified and independent appraiser, selected by the Participant, (the "Purchase
Price"). Upon written request of the escrow holder for the Participant, and as authorized by the
Participant, the Agency shall deposit the Purchase Price directly into escrow, along with the
Agency's Deed of Trust (Exhibit "D") and HOME Regulatory Agreement (Exhibit "8") (the
"Documents"). The Documents shall be recorded as a first lien against the Property in order to
insure the Agency's interest in the Property; and
(b) Up to Seventy-Five Thousand Dollars ($75,000) shall be set aside by the Agency
for the Participant to make as needed repairs, subject to Agency approval, to the Property, in
order to insure that the housing units are sound, safe and sanitary ("Rehabilitation Fund"). Said
Rehabilitation Fund shall be disbursed by the Agency to Participant upon verification and
inspection of the proposed improvements to the Property and in accordance with Section 3 of
this HOME Loan Agreement.
After the Close of Escrow, but not later than thirty (30) days following Close of Escrow,
the Participant shall immediately determine the necessary repairs needed to the Property
("Interim Repairs"), if any, and submit an inspection report for approval by the Agency, and
perform the necessary repairs with proceeds from the Rehabilitation Fund, or any other funds
provided by the Participant.
Immediately following the completion of the Interim Repairs that are necessary to
stabilize, preserve and manage the Property in a safe, sanitary and habitable condition, but no
later than one hundred eighty days (180) from Close of Escrow, the Agency and Participant shall
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work together to determine the long-term use of the Property. The Participant shall explore the
following development scenarios: (I) the Participant working in concert with Agency and City,
will determine whether it is economically and structurally advantageous to redevelop the
Property with a new multi-family complex in accordance with the City's Development Code and
General Plan. Such new development will be consistent with the development standards
imposed by the City on the adjacent new TELACU Senior Housing Development on the
northwest comer of 6th and F Streets ("TELACU Project"); or (2) Participant determines that
scenario (I) above is not feasible due to City development standards and the economics
associated with the redevelopment ofthe Property, and that it is in the best interest to rehabilitate
and preserve the Property instead, then in such event, the Participant shall carry out the
rehabilitation of the Property in accordance with Agency approved rehabilitation standards. The
Participant covenants to utilize its best efforts to insure that the rehabilitation of the Property is
rehabilitated in an aesthetically pleasing condition and the Property will be rehabilitated
consistent with the exterior improvement or fayade treatment requirements similar to the
TELACU Project (the "Project").
Section 2. Disbursement of HOME Loan to Particioant
(a) Subject to the terms and conditions of this Agreement, the Participant hereby
agrees to undertake the Project as stated in Section I above.
(b) The Participant shall acquire the Property from the Owner as provided below.
Concurrently with the approval of this Agreement by the governing board of the Agency, the
Participant shall also execute real property escrow Documents and/or agreements with the Owner
for the transfer of the fee title interest of the Property and proceed to open Escrow.
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(c) Concurrently with the close of escrow, as provided in Section 4, for the transfer of
the Property, the Agency shall disburse up to $300,000 from the HOME Loan on behalf of
Participant to Escrow Agent for the acquisition of the Property. The Agency shall disburse .the
proceeds of the HOME Loan to fund the acquisition of the Property when the Participant has
satisfied the following conditions:
(i) the Participant has provided the Agency with evidence of insurance
coverage as required under this Agreement, HOME Regulatory Agreement and deed of trust;
(ii) the escrow referenced in Section 2(b) is otherwise in a condition to close;
(iii) the Participant has executed the Promissory Note (Exhibit "C") and Deed
of Trust (Exhibit "D") and the HOME Regulatory Agreement for the Property in favor of the
Agency; and
(iv) the Participant has complied with each of the other provisions of this
Agreement and is not in default hereunder.
(d) Provided no default has occurred, the remaining $75,000 ofthe HOME Loan shall
be disbursed to Participant by the Agency after the Escrow described in Section 2(b) has closed
as provided in Section I of this Agreement.
(i) no default has occurred under this Agreement.
Section 3.
Loan Documents and Grant Deed Covenants
(a) The Loan shall be evidenced by a promissory note (a "Promissory Note") (Exhibit
"C") which shall be secured by a Deed of Trust (Exhibit "D") on the Property in the amount of
$375,000. The date of the Promissory Note shall be the date on which escrow closed as
referenced in Section 2(b).
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(b) The term ofthe Promissory Note shall be three (3) years from the date of the close
of Escrow. The Promissory Note shall bear three percent (3 %) interest per annum, deferred
monthly payment and payable within three (3) years, provided no default exists and Participant is
in full compliance with all of the terms and conditions of this Agreement.
(c) Concurrently with the close of Escrow referenced in Section I and Section 2(b),
and the transfer of Property to the Participant by the Owner, and the disbursement of the
proceeds of the HOME Loan to Participant, the Participant shall execute and cause to be
recorded in favor of the Agency a Deed of Trust (Exhibit "D") and a HOME Program Regulatory
Agreement (Exhibit "B") for the Property.
Section 4. Close of Escrow and Schedule for Completion ofProiect
The Participant shall acquire fee title interest in the Property by a date not later than
February 6, 2003, or this Agreement shall have no further force or effect. The Participant shall
commence the Interim Repairs, if needed, on the Property promptly following the close of the
Escrow as set forth in Section I and thereafter complete such Interim Repairs within 60 days
following the close of Escrow. The Participant shall complete exploration of the final and long-
term use of the Property, as per Section 1, by a date no later than twelve (12) months following
the close of Escrow of the Property. The Executive Director of the Agency may, for good cause,
grant the Participant up to ninety (90) days additional time in which to complete the Project.
Section 5. Occupancv of Units
5.1 Participant shall ensure that at a mmlmum, not less than six (6) rental units
(hereinafter referred to as the "Rental Units") in the Project shall be reserved for occupancy by
eligible households as follows:
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(i) 20% (1 Rental Unit) of the six (6) "Rental Units" shall be rented or
reserved for occupancy by very low-income households. For the purposes of this Agreement,
very low-income shall be defined as those households earning fifty percent (50%) of median
income, or below;
(ii) the remaining balance (5 Rental Units) of the six (6) "Rental Units" shall
be rented or reserved for occupancy by households earning (80%) eighty percent of the area
median income or below; and
(iii) at the time of initial occupancy (I year period) of the Rental Units in the
Project, not less than four (4) Rental Units, shall be rented or reserved for occupancy by
households earning sixty percent (60%) of the area median income or below. The eligible
household occupancy test of this subparagraph (ii) shall be applied only at the time of initial
occupancy of the six (6) Rental Units. The eligible household occupancy tests of subparagraph
(i) and (ii), above, shall be applied annually for the remaining term of this Agreement.
5.2 Participant shall ensure that each of the Rental Units shall be available and
remained to be available for occupancy by individuals or families who are income-eligible in
accordance with the provisions of Section 5.1. Participant shall be responsible for interviewing
and selecting occupants for the Rental Units and, shall file with the Agency the Tenant Eligibility
Certification (Exhibit "F") commencing on the July I following the initial occupancy of any of
the Rental Units and on each July I annually thereafter during the term of the Agreement.
5.3 The Participant may charge rent for the occupancy of each Rental Unit which is
defined to be an affordable housing cost in accordance with the Initial Rent Schedule for the
Rental Units (Exhibit "E") and incorporated herein by this reference. During the term of this
Agreement, the Initial Rent Schedule may be amended from time-to-time upon the written
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request of the Participant, and approved by the Agency Executive Director, to conform to rent
schedules that are prescribed and currently in effect under the HOME Program guidelines and
provided by HUD annually. For any household, which at the time of an Annual Recertification
of Tenant Eligibility (Exhibit "F"), may no longer be an "eligible" household under Section
5.I(ii), Participant may increase the rent payable by such a household to the then applicable fair
market rent for the Rental Unit occupied by such household; provided, however, that upon the
termination of occupancy of such Rental Unit by the non-eligible household, such Rental Unit
shall be reserved for use and occupancy by an eligible household under Section 5.I(i) or (ii), as
applicable.
Section 6. Management of Rental Housing Units
(a) Participant hereby agrees to manage the Rental Units and be responsible for
collecting all rents due and payable in connection with the occupancy of the Rental Units and.
upon the collection of such rents, pay for all customary and reasonable costs and expenses
incurred in connection with the operation and property management of the Rental Units and the
Property. Any remaining revenues shall be placed in a reserve account ("Reserve Fund") for the
benefit of the Rental Units.
(b) Participant shall establish and maintain the Reserve Fund for the Property of not
less than five percent (5%) of the total rent collected from the Rental Units, if possible. The
Reserve Fund shall be used by the Participant to pay for the costs of capital replacements or
improvement to the Property, and for such extraordinary costs and expenses for the operation
and maintenance of the Property, as may be approved in writing by the Agency. Such Reserve
Fund shall be specifically identified in the books and financial accounting records of Participant
as funds held in trust by Participant for the Property. Participant shall provide the Agency with
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suitably detailed accounting records relating to the balance and use of the monies deposited into
the Reserve Fund annually.
Section 7. Affordable Rental Units and Affordabilitv Period
The Property and Rental Units will, for a period of fifteen (15) years, be reserved for
households who meet the income requirements in accordance with 24 CFR Part 92.252,
commencing upon the recordation of the HOME Program Regulatory Agreement and continuing
until the expiration of the affordability period, without regard to the term of the HOME Loan or
to transfer of ownership (hereinafter referred to as the "Affordability Period"). A breach of the
Affordability Requirements (as set forth in Section 7.1) shall be deemed an event of default
under the Loan.
Section 8.
Uniform Administrative Requirements
As a non-profit organization and a recipient of HOME Program funds, Participant
certifies and warrants that it meets the requirements of OMB Circular No. A-122 and the
following requirements of OMB circular No. A-I 10: Attachment B; Attachment F; Attachment
H, Paragraph 2; and Attachment O. The Agency shall monitor the activities of Participant in
order to ensure the continued compliance with these provisions and any other provisions
applicable under the HOME Program.
Section 9.
Proiect Requirements
The parties hereby agree as follows:
9.1 Maximum Per-Unit Subsidv Amount. The amount of HOME Program funds that
Participant may invest on a per-unit basis in affordable housing does not exceed limits
established by HUD for this type of project.
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9.2 PropertY Standards. The Project upon completion shall, at a minimum, meet
Federal (Housing Authority) Section 8 Housing Quality Standards ("HQS") and local housing
codes and ordinances for the term of Affordability Period and the property maintenance
provisions of the HOME Regulatory Agreement for Property. Participant hereby agrees that the
Agency or its designee shall be permitted regular access to the Property in order to physically
inspect the Rental Units and ensure compliance with the terms of this Agreement. Such
inspections shall occur at least annually, but not more frequently than once every calendar
quarter.
9.3 [RESERVED-NO TEXTl
9.4 Recertification of Occupancv and Rent Requirements. Participant shall re-
examine the income of each tenant household occupying the Rental Units at least annually and
shall provide documentation to the Agency to ensure continued compliance with the provisions
of the HOME Program Regulatory Agreement. The monthly rent for a particular Rental Unit
may be recalculated by Participant based upon increases (or decreases) in the household income
of the household since the time ofthe previous Recertification of Tenant Eligibility Report to the
Agency. Any increase in rent for a Rental Unit shall be subject to the provisions of outstanding
leases. Participant may increase rent for each Rental Unit not more frequently than once per year
and the Participant shall provide tenants of those Rental Units where an increase of rent is
proposed not less than thirty (30) days prior written notice before implementing an increase in
rent.
9.5 Increases in Tenant Income. The Rental Units shall qualify as affordable housing
units despite a temporary household income noncompliance by tenant occupants if the
noncompliance IS caused by Illcreases III the Illcomes of existing tenants of Rental Units
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following initial occupancy of a Rental Unit by such tenant and if actions satisfactory to HUD
and the Agency are being taken by Participant to ensure that all vacancies of Rental Units
occupancy after the time that non-compliance may occur under this Section 9.5 are rented to new
households in accordance with Section 6.1(i) until the noncompliance is corrected. Tenants who
no longer qualify as low-income households under Section 6.1 shall pay fair market rent for the
Rental Units, which such tenant occupies as provided in Section 6.3.
9.6 Tenant Protection.
(i) Lease. For the Rental Units, the lease between each tenant and Participant
must be for not less than one year, unless by mutual agreement between the tenant and
Participant, with the prior written approval of the Agency.
The lease shall provide that the maximum occupancy of the Rental Units shall be
two persons for each bedroom plus one additional person for each unit.
(ii) Prohibited Lease Terms. The lease may not contain any of the following
proVISIOns:
(a) an agreement by the tenant to be sued, to admit guilt, or to a
judgment in favor of Participant in a lawsuit brought in connection with the lease.
(b) an agreement by the tenant that Participant may take, hold, or sell
personal property of household members without notice to the tenant and a court decision on the
rights of the parties. This prohibition, however, does not apply to an agreement by the tenant
concerning disposition of personal property remaining in the Rental Unit after the tenant has
moved out of the Rental Unit. Participant may dispose of this personal property in accordance
with State of California law.
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( c) an agreement by the tenant not to hold Participant or Participant's
agency legally responsible for any action or failure to act, whether intentional or negligent.
(d) an agreement of the tenant that Participant may institute a lawsuit
without notice to the tenant.
( e) an agreement of the tenant that Participant may evict the tenant or
household members without instituting a civil court proceeding in which the tenant has the
opportunity to present a defense, or before a court decision on the rights of the parties.
(f) an agreement by the tenant to waive any right to a trial by jury.
(g) an agreement by the tenant to waive the tenant's right to appeal, or
to otherwise challenge in court, a court decision in connection with the lease.
(h) an agreement by the tenant to pay attorneys' fees or other legal
costs, even if the tenant wins in a court proceeding by the owner against the tenant. The tenant,
however, may be obligated to pay costs if the tenant loses.
9.7 Termination of Tenancv. Participant may not terminate the tenancy or refuse
to renew the lease of a tenant for any Rental Unit except for serious or repeated violation of the
terms and conditions of the lease, for violation of applicable federal, state, or local law, or for
other good cause. Any termination or refusal to renew must be preceded by not less than 30 days
by Participant's service upon the tenant of a written notice specifying the grounds of the action.
Section 10. Other Requirements
10.1 Maintenance and Replacement. Participant must maintain the Property in
compliance with all applicable housing quality standards and local code requirements, including,
but not limited, to the San Bernardino Municipal Code.
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10.2 Tenant Selection. Participant must adopt written tenant selection policies and
criteria for the Rental Units that:
(i) are consistent with the purpose of providing housing for very low-income
and low-income families;
(ii) are reasonably related to HOME Program eligibility and the applicants'
ability to perform the obligations of the lease;
(iii) give reasonable consideration to the housing needs of families that would
have a federal preference under section 960.211 of Title II of the Cranston-Gonzalez National
Affordable Housing Act of 1992; and
(iv) provide for the selection of tenants from a written waiting list in the
chronological order of their application, insofar as is practicable, and the prompt written
notification, to any rejected applicant setting forth the grounds for any rejection.
(v) provide that a preference be given to residents or occupants of the City of
San Bernardino with respect to the occupancy of the Rental Units.
10.4 Compliance. Participant must carry out each activity in compliance with all
Federal laws and regulations described in 24 CFR Part 92 and outlined hereinafter, except that
Participant does not assume the Agency's responsibilities for environmental review in 24 CFR
Part 92.352 or the intergovernmental review process in 24 CFR Part 92.359. These Federal laws
and regulations must be complied with as follows:
(i) Equal Opportunity. No person shall be excluded from participation in, be
denied the benefits of or be subjected to discrimination under any program or activity funded in
whole or in part with HOME funds. In addition, HOME funds must be made available in
accordance with all laws and regulations listed in 24 CFR Part 92.350(a).
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(ii) Fair Housing. In accordance with the certification made with its housing
strategy, each participating jurisdiction receiving HOME Program funds, must affirmatively
further fair housing. Actions described in Section 570.904( c) of Title II of the Cranston-
Gonzalez National Affordable Housing Act will satisfy this requirement.
(iii) Displacement. Relocation and Acquisition. Consistent with the other
goals and objectives of 24 CFR Part 92, and if applicable, Participant must ensure that it has
taken all reasonable steps to minimize the displacement of persons as a result of the Project, if
applicable. To the extent feasible, residential tenants must be provided a reasonable opportunity
to lease and occupy a suitable, decent, safe, sanitary and affordable dwelling unit upon Project
completion. Participant agrees to minimize displacement in accordance with 24 CFR Part
92.353. Participant agrees and is obligated under the HOME regulation to insure that tenants
displaced are afforded due process and relocation benefits.
(iv) Labor. If applicable, any contract executed by Participant for the
rehabilitation or construction of affordable HOME housing with 12 or more rental units using
HOME Program funds must contain a provision requiring that not less than the wages prevailing
in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40
U.S.C. 2761-5), will be paid to all laborers and mechanics employed in the development of
affordable housing units involved, and such contacts must also be subject to overtime provisions,
as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.c. 327-332). The
Agency will require certification as to compliance with the provisions of24 CFR Part 92.354.
(v) Lead-based Paint. It is understood that the rehabilitation or improvement
of the Rental Units is subject to 24 CFR Part 35.
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(vi) Conflict of Interest. Participant shall comply with all requirements set
forth regarding conflict of interest provisions as they apply in 24 CFR Part 92.356.
(vii) Debarment and Suspension. As required in 24 CFR Part 92.357,
Participant will comply with all debarment and suspension certifications.
(viii) Flood Insurance. Under the Flood Disaster Protection Act of 1973,
HOME Program funds may not be used with respect to the acquisition or rehabilitation of a
project located in an area identified by the Federal Emergency Management Agency (FEMA) as
having special flood hazards, unless: (A) the community in which the area is situated is
participating in the National Flood Insurance Program, or less than a year has passed since
FEMA notification regarding such hazards; and (B) flood insurance is obtained as a condition of
approval of the commitment; and (C) the Agency is responsible for assuring that flood insurance
under the National Flood Insurance Program is obtained and maintained.
Section I I. Requests for Disbursements of Funds from the Rehabilitation Fund
I I.I Participant, in its sole discretion, shall be responsible for the selection of the
contractors to undertake and cause any work to the Rental Units or the Property.
I 1.2 Participant may not request disbursement of Rehabilitation Funds until funds are
needed for payment of eligible, and pre-approved by the Agency, costs. The amount of each
request must be limited to the amount requested through approved invoicing reflecting
completed work.
Section 12. Records and Reports
12.1 The Agency will require that Participant maintain and supply the Agency, upon
written request, the following records and reports for the Affordability Period in order to assist
the Agency in meeting its record keeping and reporting requirements:
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(i) Rehabilitation Work conducted on the Property and all corresponding
invoices and documentation;
(ii) property management and maintenance costs, and Reserve Fund and
related records;
(iii) files on the annual review and certification of all applicable tenant income;
(iv) terms and conditions of all signed leasehold agreements between tenants
and Participant; and
(v) any legal reports and records required by City Attorney's Office or the
Agency, as requested.
12.2 Agency, will review the Property annually for the period of affordability for:
(i) recertification of tenant income; (ii) review of rent and utility allowances;
(iii) on-site inspections for compliance with Section 8 Housing Quality Standards; and (iv)
review of Participant compliance with this Agreement.
Section 13. Indemnification
The Participant shall indemnify and hold harmless the Agency and the City and the
officials, officers, attorneys, employees and agents of the City and the Agency from and against
any and all claims or liability arising from Participant's actions under this Agreement or from the
conduct of Participant's business or from any activity, work or things done, permitted or suffered
by Participant and shall further indemnify and hold harmless the Agency and City and their
officials, officers, attorneys, employees and agents from and against any and all claims arising
from any breach or default in the performance of any obligation of Participant under the terms of
this Agreement arising from any negligent or wrongful act or omission of the Participant or
Participant's agents, contractors, employees or invitees and from and against all costs, attorneys'
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fees, expenses and liability incurred in the defense of any such claim or any action or proceeding
brought thereon. Participant's agreement to indemnifY and hold the Agency and City harmless
shall extend to any claims or liabilities, including but not limited to claims pertaining to
environmental conditions, alleged construction defects, or other matters, that may arise as a
result ofthe Participant's acquisition, ownership, management and operation of the Property. For
the purposes hereof, "attorneys' fees" means and includes the salaries and benefits of lawyers
employed by the Office of the City Attorney of the City of San Bernardino who provide legal
services to the Agency in connection with any such enforcement proceedings.
Section 14
Breach and Termination
(a) Termination Without Default or Breach Prior to Transfer of Title in the Property
to the Participant. This Agreement may be terminated for the convenience of either party who is
not then in default upon twenty (20) days notice to the other party at any time prior to the date on
which the Participant acquires title to the Property.
(b) Defaults and Breach - General. Failure or delay by either party to perform any
material term or provision of this Agreement shall constitute a default under this Agreement;
provided however, that if the party who is otherwise claimed to be in default by the other party
commences to cure, correct or remedy the alleged default within thirty (30) calendar days after
receipt of written notice specifying such default and shall diligently complete such cure,
correction or remedy, such party shall not be deemed to be in default hereunder.
The party which may claim that a default has occurred shall give written notice of
default to the party in default, specifying the alleged default. Delay in giving such notice shall
not constitute a waiver of any default nor shall it change the time of default; provided, however,
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the injured party shall have no right to exercise any remedy for a default hereunder without
delivering the written default notice as specified herein.
Any failure to delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
default. Except with respect to rights and remedies expressly declared to be exclusive in this
Agreement, the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party.
In the event that a default of either party may remain uncured for more than thirty
(30) calendar days following written notice, as provided above, a "breach" shall be deemed to
have occurred. In the event of a breach, the party who is not in default shall be entitled to
terminate this Agreement and seek any appropriate remedy or damages by initiating legal
proceedings, if necessary.
(c) In the event that either party brings an action to enforce any condition or
covenant, representation or warranty arising out of this Agreement, the prevailing party in such
action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by
the court in which a judgment is entered, as well as the costs of such suit. For the purposes of
this Section 14(c), the words "reasonable attorneys' fees" in the case of the Agency include the
salaries, costs and overhead of lawyer's employed in the Office of the City Attorney of the City
of San Bernardino.
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Section 15. Enforcement of this Agreement
15.1 The Agency shall have the right, by prior written notice to Participant, to enforce
all of the provisions of this Agreement. Should any such violation be brought to the attention of
the Agency regarding the Property, the Agency shall have the right, by prior written notice to
Participant, to suspend or terminate this Agreement and may avail itself of all remedies under
this Agreement, the Promissory Note, the Deed of Trust and the HOME Regulatory Agreement.
15.2 The Agency at its discretion may terminate this Agreement, in whole or in part,
by giving Participant written notice in accordance with 24 CFR Part 85.44.
Section 16. Monitoring
The Agency is responsible for managing the day-to-day operations of its HOME Program
including monitoring the performance of all entities receiving HOME funds from the Agency to
ensure compliance with the requirements of 24 CFR Part 92, and for taking appropriate action
when performance problems arise.
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IN WITNESS HEREOF, the Agency and Participant have executed this Agreement as of the
date first hereinabove set forth.
AGENCY
Redevelopment Agency of the
City of San Bernardino
Date
By:
Executive Director
PARTICIPANT
Neighborhood Housing Services of the
Inland Empire, Inc., a California non-profit
corporation
Date
By:
Title:
By:
Title:
Approved as to Form and Legal Content
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EXHIBIT "A"
Legal Description of the Property
PARCELl
688, 690, 692, 694, 696 & 698 West 6th Street
APN 0134-021-27000
East 50 feet of the South Yz of Lot 4, in Block 43, in the City of SAN BERNARDINO, County of
SAN BERNARDINO, State of California, as per Plat recorded in Book 7, page I of Maps,
Records of said County.
PARCEL II
APN 0134-021-260000
That portion of Lot 4, Block 43 as per plat recorded in Book 7 of Maps, page I, records of the
County of San Bernardino, State of California, beginning at the Southwest Corner of said Lot 4;
thence East 100 feet more or less to a point 50 feet west of the Southeast corner of said lot;
thence North 70 feet more or less to a point 230 feet South of the North line of said Lot 4; thence
West 100 feet more or less to the West line of said Lot 4; thence South 70 feet more or less to the
point of beginning. Also commonly know as 688 through 698 west 6th Street, San Bernardino,
CA 92410.
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EXHIBIT "B"
HOME Regulatory Agreement
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RECORDING REQUESTED BY
And when Recorded mail to:
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, California 92401
Attention: Executive Director
Recordation of this Instrument is
Exempt from all Fees and Taxes
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. (NHS)
HOME REGULATORY AGREEMENT, PROPERTY USE AND COVENANT
THIS REGULATORY AGREEMENT ("AGREEMENT") is entered into this 6th day of
January, 2003, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, a public body (hereinafter known as "Agency"), and Neighborhood Housing
Services of the Inland Empire, Inc., a California non-profit corporation (hereinafter known as
"Participant").
RECITALS
WHEREAS, Participant owns that certain real property located within the City and
described as: 688, 690, 692, 694, 696 and 698 West 6th Street (APN 0134-021-270000, Parcell)
and APN 0134-021-260000, Parcel 2, a legal description of which is attached as Exhibit "A"
hereto (the "Property"); and
WHEREAS, Participant desires to manage six (6) rental units (herein "Affordable Units")
on the Property for occupancy at HOME Affordable Rents to HOME Qualified Low-Income
Households. Participant intends to acquire and rehabilitate the Affordable Units utilizing a loan
from the Agency from an allocation of Agency HOME funds in the amount of Three Hundred
Seventy-Five Thousand Dollars ($375,000) (the "Loan") for the Property; and
WHEREAS, the Agency has agreed to extend the Agency Loan to the Participant
pursuant to the terms and conditions of that certain HOME Loan Agreement by and between the
Participant and the Agency (the "HOME Loan Agreement"); and
WHEREAS, the Agency has agreed to make the Agency Loan to the Participant on the
condition that the Property be maintained and operated in accordance with the HOME
regulations and restrictions concerning affordability, operation, and maintenance of the Property,
as specified in this Agreement; and
WHEREAS, the purpose of this Agreement is to ensure that Affordable Units which are
developed pursuant to the requirements hereunder shall be available to HOME eligible
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Households with income at or below 80% of the area median and for the term of not less than
fifteen (15) years and that rental units are to be maintained as Affordable Units in accordance
with the provisions of this Regulatory Agreement.
I. DEFINITIONS.
A. "Affordable Rent" shall mean the maximum rent allowed as established by the
Department of Housing and Urban Development HOME Program.
B. "Affordable Units" shall mean the units on the Property required to be available
to, occupied by, or held vacant for occupancy only to HOME Eligible Households and rented at
an Affordable Rent, as set forth in this Agreement.
C. "Agreement" shall mean this Regulatory Agreement.
D. "Agency" shall mean the Redevelopment Agency, City of San Bernardino, a
public body, corporate and politic.
E. "Agency Loan" shall mean the loan from HOME funds allocated to the
Participant, which loan is the subject of the Loan Agreement.
F. "HOME Assisted Units" shall mean the units designated as acquired and
rehabilitated with HOME loan proceeds rented to households with income at or below 80% of
area median income.
G. "HOME Program" shall mean the HOME Investment Partnership Act, 42 U.S.C.
Section 12701, et seq. as it now exists and, subject to the provisions of Section 2.2 herein, as
may hereafter be amended.
H. "HOME Regulations" shall mean the implementing regulations of the HOME
Program set forth at 24 CFR 92 as it now exists and, subject to the provisions of Section 2.2
herein, as may hereafter be amended.
I. "Loan Agreement" shall mean the Home Investment Partnership Agreement
entered into by and between the Participant and the Agency.
J. "Participant" shall mean the Neighborhood Housing Services of the Inland
Empire, Inc., a California non-profit corporation.
K. "Parties" shall mean the Agency and the Participant.
L. "Project" shall mean the acquisition and rehabilitation of units located on the
Property, described in Exhibit "A" attached hereto and by this reference incorporated herein.
Other HOME eligible improvements at the Property site as defined herein which have received
prior written approval by the Agency Executive Director his/her designee in accordance with the
provisions set forth herein and in this Agreement.
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M. "Property" shall mean the real property located in San Bernardino, California, as
more particularly described in the attached Exhibit "A" and incorporated herein by reference,
together with the buildings, fixtures and other improvements located thereon.
N. "HOME Eligible Households" shall mean those households identified by the
United States Department of Housing and Urban Development with income at or below 80% of
the area median income.
O. "Term" shall mean the period commencing on the date of recordation of this
Agreement and ending on the date which is fifteen (15) years following the date of execution of
this Agreement.
II. LAND USE REGULA TrONS
A. Permitted Uses. The Property shall be used only for private multi-family rental
dwelling purposes and related amenity uses, but for no other purposes. Throughout the Term,
the Participant covenants and agrees to make available, restrict occupancy to, and rent each of
the dwelling units on the Property as Affordable Units at an Affordable Rent as set forth in
Section B. herein below. None of the dwelling units on the Property shall at any time be utilized
on a transient basis, nor shall the Property or any portion thereof ever be used as a hotel, motel,
dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest
home. The Participant shall not convert the Property to condominium ownership which approval
the Agency may grant, withhold or deny in its sole and absolute discretion.
B. Affordable Units. The Participant covenants and agrees for itself, its successors,
its assigns and every successor in interest to the Property or any part thereof, that throughout the
Term, the Participant, such successors and assigns, shall use, maintain and operate the Property
as specified in this Agreement. During the fifteen (15) year term, all uses undertaken by the
Participant pursuant to this Agreement shall conform to the HOME Regulations and HOME
Program and to all applicable provisions of San Bernardino Municipal Code. In the event the
Participant desires to change the affordable housing, maintenance or operation requirements for
the Property from the specific requirements set forth in this Agreement in order to comply with a
subsequently enacted amendment to the HOME Program or the HOME Regulations, Participant
shall notifY Agency in writing of such proposed change to implementing such change. . In the
event the Agency disapproves of such change and the Participant's interpretation of the
amendment related thereto, Agency shall notifY the Participant of its disapproval in writing and
the parties shall seek clarification from the appropriate HUD Field Office. Only if HUD concurs
with Participant's interpretation of the HOME Program and HOME Regulations shall Participant
be permitted to implement the proposed change.
1. Throughout the fifteen (15) year Term, the Participant shall devote not less than
six (6) units located on the Property as Affordable Units which shall be rented and occupied by
or, if vacant available for rental and occupancy by, HOME Eligible Households.
2. Prior to leasing an Affordable Unit, Participant shall verifY the income eligibility
of the tenant applicant by obtaining verification of all household sources of income in order to
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assure compliance with the rent and occupancy restrictions and monitoring requirements of this
Agreement. The Participant shall, upon request by the Agency, complete such income
verification on Agency-approved forms provided by the Agency.
3. None of the dwelling units on the Property shall at any time be utilized on a
transient basis nor shall the Property or any portion thereof ever be used as a hotel, motel,
dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest
home. The Participant shall not convert the Property to condominium ownership during the
Term without the prior written approval of the Agency, which approval the Agency may grant,
withhold or deny in its sole and absolute discretion.
C. Determination of Affordable Rent. All Affordable Units shall be rented at
Affordable Rent in accordance with this Section C. and as required by the applicable sections of
the HOME Regulations.
I. Increases in Tenant Income. The units shall qualify as affordable housing as
required despite a temporary non-compliance with Section III. A., of this part, if the non-
compliance is caused by increases in the incomes of existing tenants and if actions satisfactory to
HUD are being taken to ensure that all vacancies are filled in accordance with this section until
the non-compliance is corrected. Tenants who no longer qualify as low-income families must
pay fair market rent.
2. Adiustment of Affordable Rent. HUD may adjust the Affordable Rent established
for the Property under paragraph (1) of this section, only if HUD finds that an adjustment is
necessary to support the continued financial viability of the Property and only by an amount that
HUD determines is necessary to maintain financial viability of the Property.
3. Market Rent. Where the income of a tenant household may increase after its
initial occupancy to a level at which such tenant no longer qualifies as "low-income", Participant
may thereafter increase the rent payable by such tenant to a fair market rent for the size of the
Affordable Unit which such tenant occupies; provided however, that at such time as such tenant
may no longer lawfully occupy the Affordable Unit the rent payable for such Affordable Unit
shall be reset to an Affordable Rent for the HOME Eligible Household who next occupies that
Affordable Unit.
D. Tenant Protections.
1. Rental Agreement/Lease. The Participant shall execute or cause to be executed a
written rental agreement/lease in a form with each tenant household identifying by name all
permitted occupants, both adults and minors, occupying each Affordable Unit. The rental
agreement/lease between tenants occupying the Affordable Units and Participant must be for not
less than one year, unless by mutual agreement between the tenant and the Participant.
2. Prohibited Rental Agreement/Lease Terms. The rental agreement/lease mav not
contain any of the following provisions:
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a. Agreement to be sued. Agreement by the tenant to be sued, to admit guilty, or to
a judgment in favor of the Participant in a lawsuit brought in connection with the lease;
b. Treatment of property. Agreement by tenant that the Participant may take, hold,
or sell personal property of household members without notice to the tenant and a court decision
on the rights of the parties. This prohibition, however, does not apply to an agreement by the
tenant concerning disposition of personal property remaining in the unit after the tenant has
moved out of the unit. The Participant may dispose of this personal property in accordance with
state law;
c. Excusing Participant from responsibility. Agreement by the tenant not to hold
Participant or Participant's agents legally responsible for any action or failure to act, whether
intentional or negligent;
d. Waiver of notice. Agreement of the tenant that the Participant may institute a
lawsuit without notice to the tenant;
e. Waiver of legal proceedings. Agreement by the tenant or household members
without instituting a civil court proceeding in which the tenant has the opportunity to present a
defense, or before a court decision on the rights of the parties;
f. Waiver of a iurv trial. Agreement by the tenant to waive any right to a trial by
JUry;
g. Waiver of right to appeal court decision. Agreement by the tenant to waive the
tenant's right to appeal, or to otherwise challenge in court, a court decision in connection with
the lease; and
h. Tenant chargeable with cost of legal actions regardless of outcome. Agreement
by the tenant to pay attorneys' fees or other legal costs even if the tenant wins in a court
proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs
if the tenant loses.
3. Termination of Tenancy. The Participant may not terminate the tenancy or refuse
to renew the lease of a tenant of the Property except for serious or repeated violation of the terms
and conditions of the lease; for violation of applicable federal, state, or local law; or for other
good cause. Any termination, except for termination for non-payment of rent, or refusal to
renew must be preceded by not less than 30 days by the Participant's service upon the tenant of a
written notice specifying the grounds for the action.
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4. Tenant Selection. Participant shall not refuse to rent a unit in the Property to a
holder of a Rental Voucher or a Rental Certificate or comparable document evidencing
participation in the Section 8 Program or other tenant-based assistance program. Participant
must adopt written tenant selection policies that:
a. Are consistent with the purpose of providing housing for HOME Eligible
Households;
b. Are reasonably related to HOME Program eligibility and the applicants' ability to
perform the obligations ofthe lease;
c. Give reasonable consideration to the housing needs of families that would have a
federal preference under Section 960.2 I I of Title II of the Cranston-Gonzalez National
Affordable Housing Act of 1992; and
d. Provide for:
I) The selection of tenants from a written waiting list in the chronological
order of their application, insofar as is practicable; and
2) The prompt written notification to any rejected applicant of the grounds
for any rejection.
5. Tenant Certification. Participant shall require every tenant of the Property to
certify that he or she will not participate in illegal or gang related activities.
E. Compliance with Use and Occupancv Laws. Participant agrees that for each
lease, the Participant shall comply with all applicable state and local laws, statutes, ordinances,
rules and regulations, which in any way restrict the use and occupancy and resale of the Property.
F. Nondiscrimination. All Units shall be available for occupancy on a continual
basis to members of the general public who are income eligible in accordance with Article II.
hereof. There shall be no discrimination against or segregation of any person or group of
persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national
origin, ancestry, or disability in the leasing, subleasing, transferring, use, occupancy, tenure, or
enjoyment of any unit nor shall the Participant establish or permit any such practice or practices
of discrimination or segregation with reference to the election, location, subtenants, or vendees
of any unit or in connection with the employment of persons for the operation and management
of the Property. All deeds, rental agreements, leases or contracts made or entered into by the
Participant as to the Affordable Units or the Property or portion thereof, shall contain covenants
concerning discrimination as prescribed by the Loan Agreement.
Nothing in this Section II. F., is intended to require the Participant change the
character, design, use or operation of the Property form, or to require the Participant to obtain
licenses or permits other than those required for, a rental housing development for persons
capable of independent living.
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Ill. OPERATION AND MANAGEMENT OF THE PROPERTY
A. Compliance with Loan Agreement. The Participant shall comply with all the
terms and provisions ofthe Loan Agreement between the parties.
B. Taxes and Assessments. The Participant shall pay all real and personal property
taxes, assessments and charges and all franchise, income, employment, withholding, sales, and
other taxes assessed against it, or payable by it, at such times and in such manner as to prevent
any penalty from accruing, or any lien or charge from attaching to the Property; provided,
however, that the Participant shall have the right to contest in good faith, any such taxes,
assessments, or charges. In the event the Participant exercises its right to contest any tax,
assessment, or charge against it, Participant, on final determination of the proceeding or contest,
shall immediately payor discharge any decision or judgment rendered against it, together with
all costs, charges and interest.
C. Operation and Management. Participant shall manage the maintenance and
operation of the Property, or shall contract with a property management company of well
established character and reputation reasonably acceptable to the Agency for the maintenance
and operation of the Property, and such approval by the Agency shall not be umeasonably
withheld, conditional or delayed. In the event the Participant desires to designate a replacement
property manager, Participant shall also give written notice thereof to the Agency and such
approval by the Agency shall not be unreasonably withheld, conditioned or denied. The
Participant shall remain liable for the management, maintenance and operation of the Property in
accordance with the requirements herein.
D. Management Plan and Security. Participant shall prepare and submit a
Management Plan for the Property which will address issues of tenant responsibilities, owner
responsibilities, property maintenance and security concerns therein. Such Management Plan
shall be submitted, filed and approved with the Agency. If more information is required, then
Participant agrees to provide such information.
Participant agrees to submit a Status Report to the Agency on the first day of each
quarter of each year for the term of this Regulatory Agreement. Such Status Report shall be
completed in the form satisfactory to the Agency.
E. Record Keeping. Throughout the fifteen (15) years of the Term, Participant shall
comply with all applicable record keeping and monitoring requirements set forth in Section
92.508 of the HOME Regulations and as they may be amended and shall annually complete and
submit to Agency a Certification of Continuing Program compliance in the form provided to
Participant by Agency. Participant shall keep all records and documents pertaining to the
Property for five (5) years after the expiration of the Regulatory Agreement.
Representatives of the Agency shall be entitled to enter the Property, upon at least
twenty-four (24) hours notice, to monitor compliance with this Agreement, to inspect the records
of the Property with respect to the Affordable Units, and to conduct an independent audit of such
records. The Participant agrees to cooperate with the Agency in making the Property available
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for such inspection. If for any reason the Agency is unable to obtain the Participant's consent to
such an inspection, the Participant understands and agrees that the Agency may obtain at
Participant's expense an administrative inspection warrant or other appropriate legal order to
obtain access to and search the Property. Participant agrees to maintain records in a business-
like manner and make such records available to the Agency upon twenty-four (24) hours notice.
Unless the Agency otherwise approves, such records shall be maintained throughout the Term.
IV. OBLIGA nON TO MAINT AIN, REPAIR AND REBUILD
A. Maintenance bv Participant. The Participant shall, at its sole cost and expense,
maintain and repair the Property keeping the same in good condition and making all repairs as
they may be required by this Agreement and by all applicable Municipal Code and Uniform
Code provisions.
B. Maintenance and Replacement. The Participant shall, maintain the Property in
good repair and working order, and in a safe, decent and sanitary condition, including the
walkways, driveways and landscaping, and from time to time make all necessary and proper
repairs, renewals and replacements in order to keep the Property in a safe, decent and sanitary
condition. Participant shall manage and maintain the Property in accordance with all applicable
housing quality standards and local code requirements, concerning marketing, operation,
maintenance, repair, security, rental policy and method of selection of tenants.
C. Rental Housing Program. Participant shall participate and be certified in the City
of San Bernardino Crime Free Rental Housing Program, and Participant shall provide the
Agency upon its request, suitable evidence that the Participant, and its management and
operations employees or agents responsible for the Property, have participated and are certified
in such program.
D. Interior Maintenance. Participant shall maintain the interior of buildings,
including carpet, drapes and paint, in clean and habitable condition.
E. Exterior Building Maintenance. All exterior, painted surfaces shall be maintained
at all times in a clean and presentable manner, free from chipping, cracking and defacing marks.
All graffiti and defacement of any type, including marks, words and pictures must be removed
and any necessary painting or repair completed within seventy-two (72) hours of their creation or
within seventy-two (72) hours after notice to Participant.
F. Landscaping. All front set back areas that are not buildings, driveways or
walkways shall be adequately and appropriately landscaped in accordance with minimum
standards established by the Agency and shall be maintained in good condition in accordance
with the minimum standards established from time to time by the Agency.
G. Damage and Destruction Affecting Lots- Participant's Duty to Rebuild. If all or
any portion of the Property and the improvements thereon is damaged or destroyed by fire or
other casualty, it shall be the duty of the Participant to rebuild, repair or construct said portion of
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the Property and/or the improvements in a timely manner which will restore it to San Bernardino
Municipal or Building Code compliance condition as approved by the Agency.
In furtherance of the requirements ofthis Section IV. B., Participant shall keep the
improvements on the Property insured by carriers at all times satisfactory to Agency against loss
by fire, rent loss and such other hazards, casualties, liabilities and contingencies as included
within an all risk extended coverage of the improvements. In the event of loss, Participant shall
give prompt notice to the insurance carrier and the Agency.
H. Time Limitation. Upon damage to the Property or the improvements thereon, the
Participant shall be obligated to proceed with all due diligence hereunder and commence
reconstruction within two (2) months after the damage occurs and complete reconstruction
within six (6) months after the damage occurs, or if appropriate to demolish and vacate the
Property within two (2) months, unless prevented by causes beyond its reasonable control.
1. Commercial Liability Insurance and Damage and Destruction Affecting Propertv-
Participant's Duty to Rebuild. Participant shall obtain and keep in full force and effect during
the Term a policy of commercial liability insurance which names the Agency, its officials,
officers, attorneys, agents and employees, as additional insured, covering personal injury and
damage to property by fire, rent loss and such other hazards, casualties, liabilities and
contingencies as included within an all risk extended coverage of the improvements arising out
of the Participants operation of the Property under this Agreement with minimum limits of
liability for personal injury of $1,000,000 for each occurrence and $2,000,000 aggregate and
such insurance policy shall be issued by a California admitted insurance company who bears an
insurance rating of not less than "A(iv)" in Best's Insurance Guide, current edition. If all or any
portion of the Property and the improvements thereon is damaged or destroyed by fire or other
casualty, it shall be the duty of the Participant to rebuild, repair or construct said portion of the
Property and/or the improvements in a timely manner which will restore it to San Bernardino
Municipal or Uniform Building Code compliance condition as approved by the Agency.
Participant shall provide the Agency with evidence of such coverage of insurance annually in
form reasonably satisfactory to the Agency.
V. MISCELLANEOUS PROPERTY REQUIREMENTS
A. Equal Opportunity. As set forth in section 92.350 of the HOME Regulations, no
person shall be excluded from participation in, be denied the benefits of or be subjected to
discrimination under any program or activity funded in whole or in part with HOME funds.
B. Affirmative Marketing. As required by Section 92.351 of the HOME
Regulations, Participant must adopt affirmative marketing procedures and requirements. These
must include:
I. Methods for informing the public;
2. Requirements and practices that Participant must adhere to in order to carry out
the City of San Bernardino's affirmative marketing procedures and requirements;
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3. Procedures used by Participant to inform and solicit applications from persons in
the housing market area who are not likely to apply without special outreach;
4. Records that will be kept for a period of five (5) years after the expiration of the
affordability period describing actions taken by Participant to affirmatively market units and
records to assess the results of these actions; and
5. A description of how the Participant will assess the success of affirmative
marketing actions and what corrective actions will be taken where affirmative marketing
requirements are not met.
C. Displacement. Relocation and Acquisition. The Participant must ensure that it
has taken all reasonable steps to minimize the displacement of persons as a result ofthis Property
assisted with HOME funds.
D. Lead-Based Paint. It is understood that the Property is subject to 24 CFR, Part 35.
This requirement shall be met as required by that section and any cost of rehabilitation on the
Property shall be disclosed to the Agency as such should testing and abatement be undertaken.
E. Conflict of Interest. Participant will hereby comply with all requirements set
forth regarding conflict of interest provisions as they apply in Section 92.356 of the HOME
Regulations.
F. Debarment and Suspension. As required in Section 92.357 of the HOME
Regulations, Participant will comply with all debarment and suspension certifications.
G. Flood Insurance. Under the Flood Disaster Protection Act of 1973, HOME funds
may not be used with respect to the acquisition or rehabilitation of a property located in an area
identified by the Federal Emergency Management Agency (FEMA) as having special flood
hazards, unless:
1. The community in which the area is situated is participating in the National Flood
Insurance Program, or less than a year has passed since FEMA notification regarding such
hazards; and
2. Flood insurance is obtained as a condition of approval of the commitment.
VII. ENFORCEMENT AND REMEDIES
A. Remedies. In the event of default or breach of any of the terms or conditions of
this Agreement by Participant, its heirs, executors, administrators or assigns, Agency may pursue
the remedy thereof by any and all means of enforcement, both in equity and at law, as provided
by the laws of the State of California, including, but not limited to, injunctive relief and/or
specific performance.
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B. Rights of the Agency. The Agency has the right to enforce all of the provisions of
this Agreement. This Agreement does not in any way infringe on the right or duties of the
Agency to enforce any of the provisions of the Municipal Code including, but not limited to, the
abatement of dangerous buildings. In addition to the general rights of enforcement, the Agency
shall have the right, through its agents and employees, to enter upon any part of the Property for
the purpose of enforcing the California Vehicle Code, and the ordinances and other regulations
of the City, and for maintenance and/or repair of any or all publicly owned utilities.
C. Nuisance. The result of every act or omission whereby any of the covenants
contained in this Agreement are violated in whole or in part is hereby declared to be and
constitutes a nuisance, and every remedy allowable at law or equity, against a nuisance, either
public or private, shall be applicable against every result and may be exercised by any owner or
its successors in interest, without derogation of the Agency's rights under law.
D. Right of Entry. The Agency has the right of entry at reasonable hours and upon
and after reasonable attempts to contact Participant or Operator, to effect emergency repairs or
maintenance which the Participant or Owner has failed to perform. Subsequent to sixty (60)
days written notice to the Participant or owner specifically outlining the non-compliance the
Agency shall have the right of entry at reasonable hours to enforce compliance with this
Agreement which the Participant or Operator has failed to perform.
E. Costs of Repair. The costs borne by the Agency of any such repairs or
maintenance emergency and/or non-emergency, shall become a charge for which Participant
shall be responsible; and may, if unpaid, be assessed as a lien against the Property.
F. Cumulative Remedies. The remedies herein provided for breach of the covenants
contained in this Agreement shall be deemed cumulative, and none of such remedies shall be
deemed exclusive.
G. Failure to Enforce. The failure to enforce any of the covenants contained in this
Agreement shall not constitute a waiver of the right to enforce the same thereafter.
Vrn. HOLD HARMLESS
Participant agrees to defend (if requested by Agency) and to hold Agency, and its
officials, officers, attorneys, agents, employees, representatives, elected and appointed boards
and officials harmless from liability for damage or claims for any type of damage including, but
not limited to, personal injury and claims for property damage, which may arise from the
activities of Participant or those of Participant's contractors, subcontractors, agents, employees
or other persons acting on Participant's behalf and which relate to the Property. Participant
agrees to and shall defend Agency, and its officers, agents, employees, representatives, elected
and appointed boards and officials from any action for damages caused or alleged to have been
caused by reason of Participant's activities in connection with the Property.
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IX. ASSIGNMENT OF AGREEMENT
This Agreement shall be binding upon Participant, its executors, administrators and
assigns and all persons claiming under or through Participant. Wherever this Agreement
employs the term "Participant", it shall be deemed to include Participant, its executors,
administrators and assigns and all persons claiming under or through Participant. Participant
shall not voluntarily assign any of its rights or obligations under this Agreement without the prior
written consent of the Agency and any purported assignment made without said consent shall be
null and void for all purposes.
X. RECORDATION
Participant agrees that this Agreement and any amendment or cancellation hereof shall be
recorded in the official records of San Bernardino County by Participant within ten (10) days
after the effective date of this Agreement and within ten (10) days after any amendment or
cancellation hereof. Participant agrees to provide Agency with two copies of the recorded
Agreement within five (5) days ofthe recording date.
XI. NOTICE
Written notice, demands and communications between Agency and Participant shall be
deemed sufficient if dispatched by first class mail, postage prepaid, to the principal offices of the
Agency and Participant, the addresses of which are hereinafter set forth. Such written notices,
demands and communications may be sent in the manner prescribed to each other's addresses as
either party may, from time to time, designate by mail, or the same may be deliver in person to
representatives of either party upon such premises. Said addresses are as follows:
If to Agency:
Redevelopment Agency
201 North "E" Street, Suite 301
San Bernardino, California 92401
Attention: Executive Director
If to Participant:
Executive Director
Neighborhood Housing Services
1390 North "D" Street
San Bernardino, California 92405
Notices herein shall be deemed given as of the date of personal service or three (3)
consecutive calendar days after deposit of the same in the custody of the United States Postal
Service.
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XII. WAIVER
Failure by a party to insist upon the strict performance of any of the provisions of this
Agreement by other party or the failure by the party to exercise its rights under or upon a default
by the other party herein shall not constitute a waiver or such party's right to demand strict
compliance from such other party in the future.
Xm. SEVERABILITY
If anyone or more of the provisions contained in this Agreement shall for any reason be
held to be invalid, illegal or unenforceable in any respect, then such provisions shall be deemed
severable from the remaining provisions contained in this Agreement, and this Agreement shall
be construed as if such invalid, illegal or unenforceable provision(s) had never been contained
herein.
XIV. CAPTION AND PRONOUNS
The captions and headings of the various sections of this Agreement are for convenience
only, and are not to be construed as confining or limiting in any way the scope or intent of the
provisions hereof. Whenever the context requires or permits, the singular shall include the
plural, the plural shall include the singular, and masculine, feminine and neuter shall be freely
interchangeable.
XV. ATTORNEYS' FEES
In any action to interpret or enforce any provisions of this Agreement, the prevailing
party shall be entitled to its costs and reasonable attorneys' fees. For the purposes hereof,
"reasonable attorneys' fees" means and includes the salaries and benefits of lawyers employed
by the Office of City Attorney of the City of San Bernardino who provide legal services to the
Agency in connection with any such enforcement proceedings.
XVI. MODIFICATION OF AGREEMENT
This Agreement may be modified or amended by mutual consent of all of the parties,
provided that all amendments are in writing.
XVII. SOLE AND ONLY AGREEMENT
This Agreement, including the documents referenced herein, contains the sole and entire
agreement and understanding of the parties with respect to the subject matter hereof.
No representations, oral or otherwise, express or implied, other than those contained
herein, have been made by the parties.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the day and year first above written.
PARTICIPANT
Neighborhood Housing Services
Ofthe Inland Empire, Inc.
a California non-profit Corporation
AGENCY
Redevelopment Agency of the
City of San Bernardino
By:
Title:
By:
Executive Director
By:
Title:
APPRO ED AS TO FORM:
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EXHIBIT "A"
Legal Description of the Parcels
PARCELl
688,690,692,694,696 & 698 West 6th Street
APN 0134-021-27000
East 50 feet of the South Y, of Lot 4, in Block 43, in the City of SAN BERNARDINO, County of
SAN BERNARDINO, State of California, as per Plat recorded in Book 7, page I of Maps,
Records of said County.
PARCEL II
APN 0134-021-260000
That portion of Lot 4, Block 43 as per plat recorded in Book 7 of Maps, page I, records of the
County of San Bernardino, State of California, beginning at the Southwest Corner of said Lot 4;
thence East 100 feet more or less to a point 50 feet west of the Southeast corner of said lot;
thence North 70 feet more or less to a point 230 feet South of the North line of said Lot 4; thence
West 100 feet more or less to the West line of said Lot 4; thence South 70 feet more or less to the
point of beginning. Also commonly know as 688 through 698 West 6th Street, San Bernardino,
CA 92410.
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EXHIBIT "e"
Form of Promissory Note
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Neighborhood Housing Services of the Inland Empire, Inc. (NHS)
1390 North "D" Street
San Bernardino, California 92405
2002 HOME LOAN
PROMISSORY NOTE
PAYABLE TO A PUBLIC AGENCY
Borrower:
Lender:
Neighborhood Housing Services ofthe
Inland Empire, Inc. (NHS)
Redevelopment Agency of
the City of San Bernardino
20 I North "E" Street, Suite 30 I
San Bernardino, California 9240 I
Principal Amount: $375,000
for Note secured by Parcel Nos. I & 2
under Deed of Trust dated January 6, 2003
Date of Promissory Note:
January 6,2003
[TO BE CONFIRMED BY AGENCY AT
TIME OF INITIAL ADV ANCEl
Interest Rate: 3%, Deferred Monthly
Payments
Maturity Date of Promissory Note:
January 6,2005
[TO BE CONFIRMED BY AGENCY AT
TIME OF INITIAL ADV ANCEl
PROMISE TO PAY. Neighborhood Housing Services of the Inland Empire, Inc., a California
non-profit corporation, (hereafter the "Borrower") promises to pay to the Redevelopment
Agency of the City of San Bernardino (the "Agency"), or order, in lawful money of the United
States of America, the principal amount of Three Hundred and Seventy-Five Thousand Dollars
($375,000), or so much as may be outstanding under this Promissory Note.
INDEBTEDNESS. This Promissory Note evidences the indebtedness of the Borrower to the
Agency under the terms 2002 HOME Loan Agreement dated as of January 6,2003, (the "HOME
Loan Agreement") by and among the Borrower and the Agency. A copy of the HOME Loan
Agreement is on file with the Agency Secretary as a public record of the Agency.
PAYMENT. The outstanding principal balance and accrued deferred monthly interest of this
Promissory Note shall be payable on the third (3'd) anniversary following the date of this
Promissory Note (the "Maturity Date"), subject to the provisions of the next paragraph.
INTEREST. Provided that no default has occurred, 3% interest shall be payable to the Agency
on this Promissory Note. In the event that a default has occurred and has not been cured and in
addition to any other remedy which the Agency may seek, then a default rate of interest shall
occur on the then outstanding prepaid balance ofthis Promissory Note at a rate per annum often
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percent (10%) payable to the Agency, commencing on the date of such default until such default
is cured and the default interest amount is paid to the Agency.
PREP A YMENT. Borrower may pay without penalty all or prorated portion of the amount owed
under this Promissory Note earlier than it is due.
SPEClAL EVENT OF ACCELERATION. The outstanding principal balance of this Promissory
Note, is subject to acceleration prior to the Maturity Date upon the occurrence of any of the
following each of which is referred to as a "special event of acceleration:"
(a) the Borrower sells or transfers its interest to any person other than a permitted Successor-
In-Interest as set forth in the HOME Loan Agreement;
(b) the Borrower ceases to utilize and maintain the property for its original intent (rental
purpose).
DEFAULT. Borrower will be in default if any of the following happens:
(a) Borrower breaks any promise Borrower made to the Agency in the HOME Loan
Agreement, or Borrower fails to comply with or to perform when due any other term,
obligation, covenant, or condition contained in this Promissory Note or any agreement
related to this Promissory Note;
(b) Borrower defaults under any loan, extension of credit, security agreement, purchase or
sales agreement, or any other agreement, in favor of any other creditor or person that may
materially affect any of Borrower's property or Borrower's ability to repay this
Promissory Note or the ability of Borrower to perform its other obligations under this
Promissory Note or the Deed of Trust;
(c) Any representation or statement made or furnished to the Agency by Borrower or on
Borrower's behalf under the HOME Loan Agreement is false or misleading in any
material respect either now or at the time made or furnished;
(d) Any creditor tries to take any of Borrower's property on or in which the Agency has a
lien or security interest;
( e) A material adverse charge occurs in Borrower's financial condition, or the Agency
believes the prospect of performance of the Borrower's obligations under the HOME
Loan Agreement is impaired.
If any default (other than a default described in (a) or (d), above) is curable, and if Borrower has
not been given a notice of a default of the same provision of this Promissory Note within the
preceding twelve (12) months, such a default may be cured (and in such event no default will be
deemed to have occurred) if Borrower, after receiving written notice from the Agency
demanding cure of such default:
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(i) cures the default within ten (10) days; or
(ii) if the cure requires more than ten (10) days, immediately initiates steps which the Agency
deems in its sole discretion to be sufficient to cure the default, and thereafter Borrower
continues to be in default, the Agency may accelerate the balance due under this
Promissory Note. Upon default, the Agency may pursue all remedies available at law
and under the Regulatory Agreement to enforce its rights hereunder.
ASSIGNMENT AND ASSUMPTION OF THIS PROMISSORY NOTE BY A PERMITTED
SUCCESSOR-IN-INTEREST APPROVED BY THE HOLDER. The Borrower may assign its
obligation to pay the Agency the principal of this Promissory Note to a permitted Successor-In-
Interest approved in writing by the Agency, and such approval shall not be unreasonably
withheld. The words "Successor-In-Interest" mean a successor at any time prior to the Maturity
Date by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a
successor that satisfies the requirements ofthe HOME Loan Agreement and the Agency Deed of
Trust.
RIGHTS OF THE HOLDER. Upon default the Agency may exercise any of its rights provided
under the HOME Loan Agreement, as this term is defined herein including without limitation,
the declaration by the Holder that the entire unpaid principal balance on this Promissory Note is
immediately due, without notice, and then Borrower will pay that amount. The Agency may hire
or pay someone else to help collect this Promissory Note if the Borrower does not pay. The
Borrower also will pay the Holder that amount. This includes, subject to any limits under
applicable law, the Agency's reasonable attorneys' fees and the legal expenses of the Holder
whether or not there is a lawsuit, including reasonable attorneys' fees and legal expenses for
bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. The Borrower also will pay any
court costs, in addition to all other sums provided by law. This Promissory Note has been
delivered to the Holder and accepted by the Holder in the State of California. If there is a lawsuit
arising under this Promissory Note, the Superior Court of San Bernardino County, the State of
California, shall have jurisdiction of such lawsuit. This Promissory Note shall be governed by
and construed in accordance with the laws of the State of California.
COLLATERAL. The Maker acknowledges this Promissory Note is secured by a First Deed of
Trust and assignment of rents of even date herewith. Such Agency Deed of Trust affects the
property as generally described as 688, 690, 692, 694, 696 and 698 West 6th Street APN 0134-
021-27000, Parcel I, and APN 0134-021-260000, Parcel 2, San Bernardino, California. The
Agency Deed of Trust contains the following due on sale/due on special event of acceleration
provIsion:
"THE AGENCY MA Y, AT ITS OPTION, DECLARE IMMEDIA TEL Y DUE AND PAYABLE
ALL SUMS SECURED BY THE DEED OF TRUST UPON THE OCCURRENCE OF A
SPECIAL EVENT OF ACCELERATION, AS THIS TERM IS DEFINED BELOW.
P:\Clerical SCl"\'ices Dept\Margaret ParkerlAgendalCDC 02-03\03-01-06 NHS Promissory NOlc.doc
3
A "special event of acceleration" shall occur when there is a sale, transfer, refinancing except as
provided in General Provisions, below, or conveyance of any right, title or interest in the
Property to any person other than a permitted Successor-In-Interest, who has been approved in
writing by the Lender as set forth above in the section entitled "Permitted Successor-In-Interest,"
whether such sale, refinancing or transfer is legal, beneficial, or equitable, whether voluntary or
involuntary, whether by sale, deed, installment sale contract, land contract, lease option contract,
or by sale, assignment, or transfer of any beneficial interest in the Property to any land trust."
GENERAL PROVISIONS. The Holder may delay or forego enforcing any of its rights or
remedies under this Promissory Note without losing them. The Maker and any other person who
signs, guarantees or endorses the Promissory Note, to the extent allowed by law, waive any
applicable statute of limitations, presentment, demand for payment, protest and notice of dishonor.
Upon any change in the terms of this Promissory Note, and unless otherwise expressly stated in
writing, no party who signs this Promissory Note, whether as maker, guarantor, accommodation
maker or endorser, shall be released from liability. All such parties agree that the Holder may
renew or extend (repeatedly and for any length of time) this Promissory Note, or release any party,
or guarantor or collateral; or impair, fail to realize upon or perfect its security interest in the
collateral; and take any other action deemed necessary by the Holder in its sole discretion without
the consent of or notice to anyone. All such parties also agree that the Holder may modify this
Promissory Note and/or the HOME Loan Agreement in writing without the consent of or notice to
anyone other than the party with whom the modification is made. The Holder may assign its
interest in this Promissory Note and the Deed of Trust to a third party at any time.
The Borrower acknowledges this Promissory Note is secured by a First Deed of Trust of even
date herewith. The Deed of Trust affects certain real property described in the HOME Loan
Agreement.
PRIOR TO SIGNING THIS PROMISSORY NOTE, BORROWER HAS READ AND
UNDERSTANDS ALL OF ITS PROVISIONS. BORROWER AGREES TO THE TERMS OF
THIS PROMISSORY NOTE AND ACKNOWLEDGES RECEIPT OF A COPY HEREOF.
BORROWER
Neighborhood Housing Services of the Inland Empire, Inc.,
a California Non-Profit Corporation
By:
Title:
By:
Title:
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EXHIBIT "D"
Form of Deed of Trust
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RECORDATION REQUESTED BY:
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
WHEN RECORDED MAIL TO:
Redevelopment Agency of the
City of San Bernardino
201 North ~Eff Street, Suite 301
San Bernardino, California 92401-1507
Attn: Executive Director
Space Above This Line is
For Recorder's Use Only
DEED OF TRUST, SECURITY AGREEMENT,
ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FILING
Neighborhood Housing Services of the Inland Empire, Inc.
THIS DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF
LEASES AND RENTS AND FIXTURE FILING (the ~Deed of Trust") is dated
January 6, 2003, among Neighborhood Housing Services of the Inland
Empire, Inc., a non-profit corporation (the ~Trustorff), whose
address is 1390 North ~Dff Street, San Bernardino, California 92405;
the Redevelopment Agency of the City of San Bernardino, a body
corporate and politic, whose address is 201 North ~Eff Street, Third
Floor, San Bernardino, California 92401-1507 (the "Lender" or the
"Beneficiary"); and First American Title Insurance Company (the
"Trustee") .
1.0 CONVEYANCE AND GRANT. For valuable consideration, Trustor
irrevocably grants, transfers and assigns to Trustee in trust,
with power of sale, for the benefit of Lender as Beneficiary,
all of Trustor's right, title, and interest in and to that
certain real property described 688, 690, 692, 694, 696 and
698 West 4th Street (APN 0134-021-27000, Parcell) and APN
0134-021-26000, Parcel 2, in Exhibit ~Aff attached hereto and
incorporated herein by this reference (the ~Propertyff),
together with all existing or subsequently erected or affixed
buildings, improvements and fixtures; all easements, rights of
way, and appurtenances and all other rights, royalties, and
profits relating to the real property, including and without
limitation all minerals, oil, gas, geothermal and similar
matters located in San Bernardino County, State of California
(the "Mortgaged Property").
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Trustor presently assigns to the Lender all of Trustor's
right, title and interest in and to all present and future
leases of the Mortgaged Property and all Rents from the
Mortgaged Property. In addition, Trustor grants Lender a
Uniform Commercial Code security interest in the Rents and the
Personal Property as set forth herein.
2.0 DEFINITIONS. The following words shall have the following
meanings when used in this Deed of Trust. Terms not otherwise
defined in this Deed of Trust shall have the meanings
attributed to such terms in the Uniform Commercial Code. All
references to dollar amounts shall mean amounts in lawful
money of the United States of America:
Beneficiary. The word "Beneficiary" means the Redevelopment
Agency of the City of San Bernardino, a body corporate and
politic, its successors and assigns.
Deed of Trust. The words "Deed of TrustU mean this Deed of
Trust and Assignment of Leases and Rents and Fixture Filing
among Trustor, Lender, and Trustee, and includes without
limi tat ion all assignment and security interest provisions
relating to the Personal Property and Rents.
Improvements. The word "Improvements" means and includes all
existing improvements on the Property and all improvements to
be constructed on the Property.
Indebtedness. The word "Indebtedness" means all principal
and, if applicable, interest payable under the Promissory Note
and any amounts expended or advanced by Lender to discharge
obligations of Trustor or expenses incurred by Trustee or
Lender to enforce obligations of Trustor under the Promissory
Note and this Deed of Trust, together with interest on such
amounts. This Deed of Trust secures, in addition to the
amounts specified in the Promissory Note, any future advances,
together with all interest thereon, that may be made by the
Lender pursuant to the Loan Agreement and/or the Related
Documents so long as Trustor complies with all the terms and
conditions of the Promissory Note, Loan Agreement and/or the
Related Documents.
Lender. The word "Lender" means
Agency of the City of San Bernardino,
assigns.
the Redevelopment
its successors and
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Loan Agreement. The words "Loan Agreement" mean that
certain 2002 HOME Loan Agreement, dated as of January 6, 2003,
by and between the Trustor and the Lender which provides for
the loan to the Trustor which is secured by this Deed of
Trust.
Mortgaged Property. The
refer to the Property,
Rents, together with:
words "Mortgaged Property mean and
Improvements, Personal Property and
all right, title, and interest (including any claim or
demand or demand in law or equity) that Trustor now has
or may later acquire in or to such Mortgaged Property;
all easements, rights, privileges, tenements,
hereditaments, and appurtenances belonging or in any way
appertaining to the Mortgaged Property; all of the
estate, right, title, interest, claim, demand, reversion,
or remainder of Trustor in or to the Mortgaged Property,
either at law or in equity, in possession or expectancy,
now or later acquired; all exterior landscaping on the
Mortgaged Property; all development rights or credits and
air rights; all water and water rights (whether or not
appurtenant to the Mortgaged Property) and shares of
stock pertaining to such water or water rights, ownership
of which affects the Mortgaged Property; all minerals,
oil, gas, and other hydrocarbon substances and rights
thereto in, on, under, or upon the Mortgaged Property and
all royalties and profits from any such rights or shares
of stock; all right, title, and interest of Trustor in
and to any streets, ways, alleys, strips, or gores of
land adjoining the Property or any part of it that
Trustor now owns or at any time later acquires and all
adjacent lands within enclosures or occupied by buildings
partly situated on the Mortgaged Property;
all intangible Mortgage Property and rights relating to
the Mortgaged Property or its operation or used in
connection with it, including, without limitation,
permits, licenses, plans, specifications, construction
contracts, subcontracts, bids, deposits for utility
services, installations, refunds due Trustor, trade
names, trademarks, and service marks;
all of the right, title, and interest of Trustor in and
to the land lying in the bed of any street, road,
highway, or avenue in front of or adjoining the Property;
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any and all awards previously made or later to be made by
any governmental authority to the present and all
subsequent owners of the Mortgaged Property that may be
made with respect to the Mortgaged Property as a result
of the exercise of the right of eminent domain, the
alteration of the grade of any street, or any other
injury to or decrease of value of the Mortgaged Property,
which award or awards are assigned to the Lender, and
which the Lender, at its option, is authorized, directed,
and empowered to collect and receive the proceeds of any
such award or awards from the authorities making them and
to give proper receipts and acquittances for them, and to
apply them as provided in this Deed of Trust;
all leases of the Mortgaged Property or any part of it
now or later entered into and all right, title, and
interest of the Trustor under such leases, including cash
or securities deposited by the tenants to secure
performance of their obligations under such leases
(whether such cash or securities are to be held until the
expiration of the terms of such leases or applied to one
or more of the installments of rent coming due
immediately before the expiration of such terms), all
rights to al insurance proceeds and unearned insurance
premiums arising from or relating to the Mortgaged
Property, all other rights and easements of the Trustor
now or later existing pertaining to the use and enjoyment
of the Mortgaged Property, and all right, title, and
interest of the Trustor in and to all declarations of
covenants, conditions, and restrictions as may affect or
otherwise relate to the Mortgaged Property;
any and all proceeds of any insurance policies covering
the Mortgaged Property, whether or not such insurance
policies were required by the Lender as a condition of
making the loan secured by this Deed of Trust or are
required to be maintained by the Trustor as provided
below in this Deed of Trust; which proceeds are assigned
to the Lender, and which the Lender, at its option, is
authorized, directed, and empowered to collect and
receive the proceeds of such insurance policies from the
insurers issuing the same and to give proper receipts and
acquittances for such policies, and to apply the same as
provided below;
all plans and specifications for the Improvements; all
contracts and subcontracts relating to the Improvements;
all deposits (including tenants' security deposits;
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provided, however, that if the Lender acquires possession
or control of tenants' security deposits the Lender shall
use the tenants' security deposits only for such purposes
as governmental requirements permit), funds, accounts,
contract rights, instruments, documents, general
intangibles, and notes or chattel paper arising from or
in connection with the Property or other Mortgaged
Property; all permits, licenses, certificates, and other
rights and privileges obtained in connection with the
Property or other Mortgaged Property; all soils reports,
engineering reports, land planning maps, drawings,
construction contracts, notes, drafts, documents,
engineering and architectural drawings, letters of
credit, bonds, surety bonds, any other intangible rights
relating to the Property and Improvements, surveys, and
other reports, exhibits, or plans used or to be used in
connection with the construction, planning, operation, or
maintenance of the Property and Improvements and all
amendments and modifications; all proceeds arising from
or by virtue of the sale, lease, grant of option, or
other disposition of all or any part of the Property,
Personal Property, or other Mortgaged Property (consent
to same is not granted or implied); and all proceeds
(including premium refunds) payable or to be payable
under each insurance policy relating to the Property, the
Personal Property, or other Mortgaged Property;
all tax refunds, bills, notes, inventories, accounts and
charges receivable, credits, claims, securities, and
documents of all kinds, and all instruments, contract
rights, general intangibles, bonds and deposits, and all
proceeds and products of the Trustor in the Mortgaged
Property;
all accounts, contract rights, chattel paper, documents,
instruments, books, records, claims against third
parties, money, securities, drafts, notes, proceeds, and
other items relating to the Mortgaged Property;
all proceeds of any of the foregoing.
As used in this Deed of Trust, ~Mortgaged Property" is
expressly defined as meaning allor, when the context permits
or requires, any portion of it and allor, when the context
permits or requires, any interest in it.
5
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Personal Property. The words "Personal Property" mean all of
the right, title and interest of Trustor now or hereafter
existing in and to the following now or hereafter located in,
upon, within or about, or used in connection with or generated
by the construction, use, operation or occupancy of the
Property and any business or activity conducted thereon or
therein, together with all accessories, additions, accessions,
renewals, replacements and substitutions thereto or therefore
and the proceeds and products thereof: (a) all materials,
supplies, furniture, floor coverings window coverings,
furnishings, appliances, office supplies, equipment,
construction materials, vehicles, machinery, computer hardware
and software, maintenance equipment, window washing equipment,
repair equipment and other equipment, tools, telephone and
other communications equipment, food service preparation
equipment and utensils, chinaware, glassware, silverware and
hollowware, food and beverage service equipment, food items
and food stuffs; (b) all books, ledgers, records accounting
records, files, tax records and returns, policy manuals,
papers, correspondence, and electronically recorded data; (c)
all "General IntangiblesU (as defined in the California
Uniform Commercial Code), instruments, money, "AccountsU (as
defined in the California Uniform Commercial Code), accounts
receivable, notes, certificates of deposit, chattel paper,
letters of credit, chooses in action, good will, rights to pay
of money, rents, rental fees, equipment fees and other amounts
relating to the development or use of the Property or payable
by persons who utilize the Property or any of the Improvements
or paid by persons in order to obtain the right to use the
Property and any of the Improvements, whether or not so used;
trademarks, service marks, trade dress, trade names, licenses,
sales contracts, deposits, plans and specifications, drawings,
working drawings, studies, maps, surveys; soils, environmental
engineering or other reports, architectural and engineering
contracts, construction contracts, construction management
contracts, surety bonds, feasibility and market studies,
management and operating agreements, service agreement~ and
contracts, landscape maintenance agreements, security service
and other services agreements and vendors agreements; (d) all
compensation, awards and other payments cf relief (and claims
therefore) made for a taking by eminent domain, or by any
event in lieu thereof (including, without limitation, property
and rights and interests in property received in lieu of any
such taking), of all or any part of such Personal Property,
together with interest thereon, and any and all proceeds (or
claims for proceeds) of casualty, liability or other insurance
pertaining to such Personal Property, together with interest
thereon; (e) any and all claims or demands against any person
with respect to damage or diminution in value to such Personal
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Property or damage or diminution in value to any business or
other activity conducted on Property; (f) any and all security
deposits, deposits of security or advance payments made to
others to Trustor with respect to: (i) insurance policies
relating to the Property; (ii) prepayments and/or periodic
deposits or improvements for property taxes or assessments of
any kind or nature affecting the Property; (iii) utility
services for the Property and/or the Improvements; (iv)
maintenance, repair or similar services for the Property or
any other services or goods to be used by any business or
other activity conducted on the Property; (g) any and all
authorizations, consents, licenses, permits and approvals of
and from all persons required from time to time in connection
with the construction, use, occupancy or operation of the
Property, the improvements, or any business or activity
conducted thereon or therein or in connection with the
operation, occupancy or use thereof; (h) all warranties,
guaranties, utility or street improvement bonds, construction
completion and payment surety bonds, utility contracts,
telephone exchange numbers, yellow page or other directory
advertising and the like; (i) all goods, contract rights, and
inventory; (j) all leases and use agreements of machinery,
equipment and other personal property; (k) all insurance
policies covering all or any portion of the Property; (1) all
reserves and funds held in escrow by the Lender or other
persons for the Lender's benefit under the Loan Agreement and
all funds deposited with the Lender pursuant to the Loan
Agreement, all accounts into which such funds are deposited
and all accounts, contract rights and general intangibles or
other rights relating thereto; (m) all names by which the
Property is now or hereafter known; (n) all interests in the
securi ty deposits of tenants; (0) all management agreements,
blueprints, plans, maps, documents, books and records relating
to the Property; (p) the proceeds from sale, assignment,
conveyance or transfer of all or , any portion of the Property
or any interest therein, or from the sale of any goods,
inventory or services from upon or within the Property and/or
the Improvements; ) (q) all documents of membership in an owner
or members association or similar group having responsibility
for managing or operating any part of the Property; (r) all
other property (other than "Fixtures," as defined in the
Uniform Commercial Code) of any kind or character as defined
in or subject to the provisions of the California Uniform
Commercial Code, Secured Transactions, as amended and; (s) all
proceeds of the conversions, voluntarily or involuntarily, of
any of the foregoing into cash or liquidated claims.
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Promissory Note. The words "Promissory Note" mean the
Promissory Note of even date herewith, in the principal amount
of Three Hundred and Seventy-five Thousand Dollars ($375,000)
delivered by the Trustor to the Redevelopment Agency of the
City of San Bernardino, as Lender, together with all renewals,
extensions, modifications, refinancing, and substitutions for
the Promissory Note.
Related Documents. The words "Related Documents" mean and
include without limitation all promissory notes, credit
agreements, loan agreements, guaranties, security agreements,
mortgages, deeds of trust, and all other instruments,
agreements and documents, by and between the Trustor and the
Lender whether now or hereafter existing, evidencing or
securing the Indebtedness.
Rents. The word "Rents" means all present and future
revenues, income, issues, royalties, profits, and
benefits derived from the Property.
rents,
other
Trustee. The word "Trustee" means First American Title
Insurance Company, and any substitute or successor trustees.
Trustor. The word "Trustor" means the Trustor named above and
its successors and assigns.
3.0 THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF LEASES AND
RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL
PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS
AND (2) PERFORMANCE OF ANY AND ALL OBLIGATIONS OF TRUSTOR
UNDER THE PROMISSORY NOTE, THE RELATED DOCUMENTS, AND THIS
DEED OF TRUST. THE PROMISSORY NOTE AND THIS DEED OF TRUST ARE
GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:
3.1 PAYMENT AND PERFORMANCE. Except as otherwise provided in this
Deed of Trust, Trustor shall pay to Lender all amounts secured
by this Deed of Trust as they become due, and shall strictly
and in a timely manner perform all of Trustor's obligations
under the Promissory Note, this Deed of Trust, the Loan
Agreement and the Related Documents.
3.2
POSSESSION AND MAINTENANCE
that Trustor's possession
Mortgaged Property shall
provisions:
OF THE PROPERTY. Trustor agrees
and use of the Property and the
be governed by the following
Possession and Use. Until the occurrence of an Event of
Default, Trustor may (a) remain in possession and control of
the Mortgaged Property and collect Rents as they become due
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and (b) use, develop, operate or manage the Property for the
purposes authorized in the Loan Agreement.
Duty to Maintain and Preserve. Trustor shall: (a) maintain
the Property and the Mortgaged Property in good condition and
repair; (b) shall construct and improve the Property in
accordance with the Loan Agreement; (c) restore and repair the
Improvements or any part of the Mortgaged Property that may be
damaged or destroyed, including but not limited to
construction defects, soil subsidiances and environmental
damages whether or not insurance proceeds are available to
cover any part of such cost of restoration or repair
(regardless of whether the proceeds of insurance may be
available to the Trustor under this Deed of Trust); (d) pay
when due all claims for labor performed and materials
furnished in connection with the Improvements and not permit
any mechanics' liens or materials suppliers' liens to arise
against the Property; (e) not permit any waste on the
Property, or commit, suffer or permit any nuisance to occur on
the Property; (f) not abandon the Mortgaged Property; (g)
notify the Beneficiary in writing of any condition at or on
the Property that may have a material affect on the market
value of the Mortgaged Property; and (h) maintain the Property
and the Improvements and generally operate it in a manner to
realize it maximum rental potential.
Hazardous Substances.
(a) The terms "hazardous wastes", "hazardous substance",
"disposal," "release", and "threatened release", as used in
this Deed of Trust, shall have the same meanings as set forth
in the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S. C. Section 9601, et
~. ("CERCLA"), the Superfund Amendments and Reauthorization
Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous
Materials Transportation Act. 49 U.S.C. Section 1801, et seq.,
the Resource Conservation and Recovery Act, 49 U.S.C. Section
6901, et seq., Chapters 6.5 through 7.7 of Division 20 of the
California Health and Safety Code, Section 25100, et ~., or
other applicable state or Federal laws, rules, or regulations
adopted pursuant to any of the foregoing.
(b) [OMITTED - - NO TEXT]
(c) Trustor represents and warrants that neither the Trustor
nor any tenant of Trustor occupying and improving any portion
of the Mortgaged Property or any contractor, agent or other
authorized user of any such tenant shall use, generate,
manufacture, store, treat, dispose of, or release any
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hazardous waste or substance on, under, about or from any of
the Mortgaged Property, except in compliance with all
applicable law relating to the transportation, storage,
disposal or lawful use of any hazardous waste or substance.
Trustor shall comply and cause each of its tenants and all
contractors, agents or other authorized users of the Mortgaged
Property to comply with all applicable laws relating to any
hazardous wastes or substances, including without limitation,
obtaining and filing all applicable notices, licenses, permits
and similar authorizations. Trustor shall establish and
maintain a hazardous wastes and substances management and
operations policy for the Mortgaged Property in order to
assure and monitor continued compliance by the Trustor and
each of its tenants and all contractors, agents, or other
authorized users of the Property with all laws relating to
hazardous wastes or substances.
(d) Trustor authorizes Lender and its agents to enter upon
the Mortgaged Property upon reasonable notice to make such
inspections and tests as Lender may deem appropriate to
determine compliance by the Trustor with this paragraph of
Section 3.2 if Lender reasonably believes a violation of law
has occurred. Any inspections or tests made by Lender shall
be at Trustor's expense and for Lender's purposes only and
shall not be construed to create any responsibility or
liability on the part of Lender to Trustor or to any other
person. Trustor hereby agrees to indemnify and hold harmless
Lender against any and all claims, losses, liabilities,
damages, penalties, and expenses which Lender may directly or
indirectly sustain or suffer resulting from breach of this
paragraph of Section 3.2. The provisions of this paragraph of
Section 3.2 of the Deed of Trust, including the obligation to
indemnify the Lender, shall survive the payment of the
Indebtedness and the satisfaction and reconveyance of the lien
of this Deed of Trust and shall not be affected by Lender's
acquisi tion of any interest in the Property, whether by
foreclosure or otherwise.
Compliance with Governmental Requirements. Trustor shall
promptly comply with all laws, ordinances, and regulations,
now or hereafter in effect, of all governmental authorities
applicable to the use or occupancy of the Mortgaged Property.
Trustor may contest in good faith any such law, ordinance, or
regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Trustor has notified
Lender in writing prior to doing so and so long as, in
Lender's reasonable opinion, Lender's interests in the
Mortgaged Property are not jeopardized. Lender may require
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Trustor to post adequate security or a surety bond, reasonably
satisfactory to Lender, to protect Lender's interest.
Duty to Protect. Trustor agrees neither to abandon nor
leave unattended the Mortgaged Property. Trustor shall do all
other acts, in addition to those acts set forth above in this
section, which from the character and use of the Mortgaged
Property are reasonably necessary to protect and preserve the
Mortgaged Property.
3.3 DUE ON SALE. Lender may, at its option, declare immediately
due and payable all sums secured by this Deed of Trust upon
the sale or transfer, without the Lender's prior written
approval, of all or any part of the Mortgaged Property, or any
interest in the Mortgaged Property. A "sale or transfer"
means the conveyance of the Mortgaged Property or any right,
title or interest therein; whether legal or equitable; whether
voluntary or involuntary; whether by outright sale, deed,
installment sale contract, land contract, contract for deed,
leasehold interest with a term greater than one (1) year,
lease-option contract, or by sale, assignment or transfer of
any beneficial interest in or to any land trust holding title
to the Mortgaged Property or by any other method of conveyance
of the property interest. This option shall be exercised by
the Lender in accordance with the provisions of Section 5.1
hereof; provided however, this option shall not be exercised
if such remedy is prohibited by applicable law.
3.4
TAXES AND LIENS.
taxes and liens on
Deed of Trust:
The following provisions relating to the
the Mortgaged Property are part of this
Payment. Trustor shall pay when due (and in all events prior
to delinquency) all taxes, special taxes, assessments, charges
(including water and sewer), fines and impositions levied
against or on account of the Mortgaged Property, and shall pay
when due all claims for work done on or for services rendered
or material furnished to the Mortgaged Property. Trustor
shall maintain the Mortgaged Property free of all liens having
priority over or equal to the interest of Lender under this
Deed of Trust, except for the lien of property taxes and
assessments not due.
Right to Contest. Trustor may withhold payment of any tax,
assessment, or claim in connection with a good faith dispute
over the obligation to pay, so long as Lender's interest in
the Mortgaged Property is not jeopardized. If a lien arises
or is filed as a result of nonpayment, Trustor shall within
sixty (60) days after the lien arises or, if a lien is filed,
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within sixty (60) days after Trustor has notices of the
filing, secure the discharge of the lien, or if requested by
Lender, deposit with Lender cash or a sufficient corporate
surety bond or other security satisfactory to Lender in an
amount sufficient to discharge the lien plus any costs and
attorneys' fees or other charges that could accrue as a resu~t
of a foreclosure or sale under the lien; provided, however,
that Trustor shall not be required to payor make provisions
for the payment of any tax, assessment, lien or charge so long
as the Trustor in good faith shall contest the validity or
amount thereof and so long as such delay in payment does not
subject the Property to forfeiture or sale. In any contest,
Trustor shall defend itself and Lender and shall satisfy any
adverse judgment before enforcement against the Property.
Trustor shall name Lender as an additional obligee under any
surety bond furnished in the contest proceedings.
Evidence of Payment. Trustor shall upon demand furnish to
Lender satisfactory evidence of payment of the taxes or
assessments and shall authorize the appropriate governmental
official to deliver to Lender at any time a written statement
of the taxes and assessments against the Property.
3.5 CONDEMNATION. The following provisions relating to
condemnation proceedings are a part of this Deed of Trust:
Proceedings. If any proceeding in condemnation is filed
affecting any portion of the Mortgaged Property, Trustor shall
promptly notify the Beneficiary in writing, and Trustor shall
promptly take such steps as may be necessary to defend the
action and obtain the award. Trustor may be the nominal party
in such proceeding, but the Beneficiary shall be entitled to
participate in the proceeding and to be represented in the
proceeding by counsel of its own choice, and Trustor will
deliver or cause to be delivered to the Beneficiary such
instruments as may be requested by it from time to time to
permit such participation. .
3.6 CASUALTY INSURANCE. The Trustor shall at all times keep the
Mortgaged Property insured for the benefit of the Trustee and
the Beneficiary as additional insured as follows:
Against damage or loss by fire and such other hazards
(including lightning, windstorm, hail, explosion, riot, acts
of striking employees, civil commotion, vandalism, malicious
mischief, aircraft, vehicle, and smoke) as are covered by the
broadest form of extended coverage endorsement available from
time to time, including course of construction and builders
risk endorsements in an amount not less than the full
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insurable value of the Mortgaged Property, with a deductible
amount not to exceed Ten Thousand Dollars ($10,000); provided
however, that prior to the recordation of the "Construction
Loan" as this term is defined in the Loan Agreement, such
insured amount shall be not less than $1,000,000, and upon the
recordation of such Construction Loan the full insurable value
shall be not less than the principal amount of such
Construction Loan, plus the principal amount of the
Indebtedness;
Against damage or loss from (a) sprinkler system leakage and
(b) boilers, boiler tanks, heating and air conditioning
equipment, pressure vessels, auxiliary piping, and similar
apparatus, on such basis and in such amounts as the
Beneficiary may require;
Liability Insurance. Trustor shall procure and maintain
workers' compensation insurance for employees and
comprehensive general liability insurance covering Trustor,
Trustee, and the Beneficiary against claims for bodily injury
or death or for damage occurring in, on, about, or resulting
from the Mortgaged Property, or any street, drive, sidewalk,
curb, or passageway adjacent to it, in standard form and with
such insurance company or companies and in an amount of at
least One Million Dollars ($1,000,000) combined single limit,
or such greater amount as the buyer may require, which
insurance shall include completed operations, product
liabili ty, and blanket contractual liability coverage that
insures contractual liability under the indemnifications set
forth in this Deed of Trust (but such insurance coverage or
its amount shall in no way limit such indemnification) .
Other Insurance. The Trustor shall procure and maintain
such other insurance or such additional amounts of insurance,
covering the Trustor or the Mortgaged Property, as (a) may be
required by the terms of any construction contract for the
improvements or by any governmental authority, or (b) may be
reasonably required by the Beneficiary from time to time.
Form of Policies. All insurance required under this
paragraph shall be paid for and nonassessable. The policies
shall contain such provisions, endorsements, and expiration
dates as the Beneficiary from time to time reasonably requests
and shall be in such form and amounts, and be issued by such
insurance companies admitted as surety companies and doing
business in the State of California, as the Beneficiary shall
approve in the Beneficiary's sole and absolute discretion.
Unless otherwise expressly approved in writing by the
Beneficiary, each insurer shall have a Best Rating of not less
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than ~A (vii)", or better. All policies shall (a) contain a
waiver of subrogation endorsement; (b) provide that the policy
will not lapse or be canceled, amended, or materially altered
(including by reduction in the scope or limits of coverage)
without at least thirty (30) days prior written notice to the
Beneficiary; (c) with the exception of the comprehensive
general liability policy, contain a mortgagee's endorsement
(438 BFU Endorsement or equivalent), and name the Beneficiary
and trustee as insureds; and (d) include such deductibles as
the Beneficiary may approve. If a policy required under this
paragraph contains a co-insurance or overage clause, the
policy shall include a stipulated value or agreed amount
endorsement acceptable to the Beneficiary.
Duplicate Originals or Certificates. Duplicate original
policies evidencing the insurance required under this
paragraph and any additional insurance that may be purchased
on the Mortgaged Property by or on behalf of Trustor shall be
deposited with and held by the Beneficiary (a) receipts
evidencing payment of all premiums on the policies and (b)
duplicate original renewal policies or a binder with evidence
satisfactory to the Beneficiary of payment of all premiums at
least thirty (30) days before the policy expires. In lieu of
the duplicate original policies to be delivered to the
Beneficiary under this paragraph, Trustor may also deliver
original certificates from the issuing insurance company,
evidencing that such policies are in full force and effect and
containing information that, in the reasonable judgment of the
Beneficiary, is sufficient to allow Lender to ascertain
whether such policies comply with the requirements of this
Paragraph.
No Separate Insurance. The Trustor shall not carry separate
or additional insurance concurrent in form or contributing in
the event of loss with that required under this paragraph
unless endorsed in favor of Trustee and the Beneficiary as
required by this paragraph and otherwise approved by the
Beneficiary in all respects.
Transfer of Title. In the event of foreclosure of this Deed
of Trust or other transfer of title or assignment of the
Mortgaged Property in extinguishment, in whole or in part, of
the Indebtedness, all right, title, and interest of the
Trustor in and to all insurance policies required under this
paragraph or otherwise then in force with respect to the
Mortgaged Property and all proceeds payable under, and
unearned premiums on, such policies shall immediately vest in
the purchaser or other transferee of the Mortgaged Property.
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Beneficiary's Right to Obtain. Trustor shall deliver to
the Beneficiary original policies or certificates evidencing
such insurance at least thirty (30) days before the existing
policies expire. If any such policy is not so delivered to
the Beneficiary or if any such policy is canceled, whether or
not Lender has the policy in its possession, and no
reinstatement or replacement policy is received before
termination of insurance, the Beneficiary, without notice to
or demand on Trustor, may (but is not obligated to) obtain
such insurance insuring only the Beneficiary and Trustee with
such company as the Beneficiary may deem satisfactory, and pay
the premium for such policies, and the amount of any premium
so paid shall be charged to and promptly paid by Trustor or,
at the Beneficiary's option, may be added to the Indebtedness.
The Beneficiary acknowledges that, if the Beneficiary obtains
insurance, it is for the sole benefit of the Beneficiary and
Trustee, and Trustor shall not rely on any insurance obtained
by the Beneficiary to protect Trustor in any way.
Duty to Restore After Casualty. If any act or occurrence of
any kind or nature (including any casualty for which insurance
was not obtained or obtainable) results in damage to or loss
or destruction of the Mortgaged Property, Trustor shall
immediately give notice of such loss or damage to the
Beneficiary and, if the Beneficiary so instructs, shall
promptly, at the Trustor's sole cost and expense, regardless
of whether any insurance proceeds will be sufficient for the
purpose, commence and continue diligently to completion to
restore, repair, replace, and rebuild the Mortgaged Property
as nearly as possible to its value, condition, and character
immediately before the damage, loss, or destruction.
3.7 ASSIGNMENT TO THE BENEFICIARY. The proceeds of any award
or claim for damages, direct or consequential, in connection
with any condemnation or other taking of or damage or injury
to the Mortgaged Property, or any part of it, or for
conveyance in lieu of condemnation, are assigned to and shall
be paid to the Beneficiary, regardless of whether the
Beneficiary's security is impaired. All causes of action,
whether accrued before or after the date of this Deed of
Trust, of all types for damages or injury to the Mortgaged
Property or any part of it, or in connection with any
transaction financed by funds lent to the Trustor by the
Beneficiary and secured by this Deed of Trust, or in
connection with or affecting the Mortgaged Property or any
part of it, including, without limitation, causes of action
arising in tort or contract or in equity, are assigned to the
Beneficiary as additional security, and the proceeds shall be
paid to the Beneficiary. The Beneficiary, at its option, may
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appear in and prosecute in its own name any action or
proceeding to enforce any such cause of action and may make
compromise or settlement of such action. The Trustor shall
notify the Beneficiary in writing immediately on obtaining
knowledge of any casualty damage to the Mortgaged Property or
damage in any other manner in excess of Ten Thousand Dollars
($10,000) or knowledge of the institution of any proceeding
relating to the condemnation or other taking of or damage or
injury to all or any portion of the Mortgaged Property. The
Beneficiary in its sole and absolute discretion, may
participate in any such proceedings and may join borrower in
adjusting any loss covered by insurance. Trustor covenants
and agrees with the Beneficiary, at Beneficiary's request, to
make, execute, and deliver, at Trustor's expense, any and all
assignments and other instruments sufficient for the purpose
of assigning the aforesaid award or awards, causes of action,
or claims of damages or proceeds to the Beneficiary free,
clear, and discharged of any and all encumbrances of any kind
or nature.
Compensation and Insurance Payments. All compensation, awards,
proceeds, damages, claims, insurance recoveries, rights of
action, and payments that Trustor may receive or to which the
Beneficiary may become entitled with respect to the Mortgaged
Property if any damage or inj ury occurs to the Mortgaged
Property, other than by the Beneficiary condemnation or
partial taking of the Mortgaged Property, shall be paid over
to the Beneficiary and shall be applied first toward
reimbursement of all costs and expenses of the Beneficiary in
connection with their recovery and disbursement, and shall
then be applied as follows:
The Beneficiary shall consent to the application of such
payments to the restoration of the Mortgaged Property so
damages only the Beneficiary has met all the following
conditions (a breach of one of which shall constitute a
default under this Deed of Trust, the Promissory Note,
and any Related Document): (a) Trustor is not in default
under any of the terms, covenants, and conditions of the
Related Documents; (b) all then-existing leases affected
in any way by such damage will continue in full force and
effect; (c) the Beneficiary is satisfied that the
insurance or award proceeds, plus any sums added by
Trustor, shall be sufficient to fully restore and rebuild
the Mortgaged Property under then current governmental
requirements; (d) within sixty (60) days after the damage
tot he Mortgaged Property, Trustor presents to the
Beneficiary a restoration plan satisfactory to the
Beneficiary and each local agency with jurisdiction,
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which includes cost estimates and schedules; (e)
construction and completion of restoration and rebuilding
of the Mortgaged Property shall be completed in
accordance with plans and specifications and drawings
submitted to the Beneficiary within thirty (30) days
after receipt by the Beneficiary of the restoration plan
and thereafter approved the Beneficiary; which plans,
specifications, and drawings shall not be substantially
modified, changed, or revised without the Beneficiary's
prior written consent; (f) within ninety (90) days after
such damage, Trustor and a licensed contractor
satisfactory to the Beneficiary enter into a fixed price
or guaranteed maximum price contract satisfactory to the
Beneficiary, providing for complete restoration in
accordance with such restoration plan for an amount not
to exceed the amount of funds held or to be held by the
Beneficiary; (g) all restoration of the Improvements so
damaged or destroyed shall be made with reasonable
promptness and shall be of a value at least equal to the
value of the Improvements so damages or destroyed before
such damage or destruction; (h) the Beneficiary
reasonably determines that there is an identified source
(whether from income from the Mortgaged Property or
another source) sufficient to pay all debt service and
operating expenses of the Mortgaged Property during its
restoration as required above; and (i) any and all funds
that are made available for restoration and rebuilding
under this subparagraph shall be disbursed at the sole
election of the Beneficiary through the Trustee, or a
ti tie insurance or trust company satisfactory to the
Beneficiary, in accordance with standard construction
lending practices and mechanics' lien waivers and title
insurance date-downs, and the provision of payment and
performance bonds by the Trustor, or in any other manner
approved by the Beneficiary in the Beneficiary's sole and
absolute discretion; or
If fewer than all conditions (a) through (i) in the
preceding subparagraph are satisfied, then such payments
shall be applied in the sole and absolute discretion of
the Beneficiary: to the payment of the Indebtedness
secured by this Deed of Trust; or to the reimbursement of
Trustor's expenses incurred in the repuilding and
restoration of the Mortgaged Property. If the
Beneficiary elects to make any funds available to restore
the Mortgaged Property, then all of the conditions (a)
through (i) in the preceding subparagraph shall apply,
except for such conditions that the Beneficiary in its
sole and absolute discretion, may waive.
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Material Loss Not Covered. If any material part of the
Mortgaged Property is damaged or destroyed and the loss, is
not adequately covered by insurance proceeds collected or in
the process of collection, the Trustor shall deposit with the
Beneficiary, within thirty (30) days after the Beneficiary's
request, the amount of the loss not so covered.
Total Condemnation Payment. All compensation, awards,
proceeds, damages, claims, rights of action, and payments that
Borrower may receive or to which the Trustor may become
entitled with respect to the Mortgaged Property in the event
of a total condemnation or other total taking of the Mortgaged
Property by a public agency shall be paid over to the
Beneficiary and shall be applied first to the reimbursement of
all Beneficiary's costs and expenses in connection with their
recovery, and shall then be applied to the payment of the
Indebtedness. Any surplus remaining after payment and
satisfaction of the Indebtedness shall be paid to the Trustor
as its interest may then appear.
Partial Condemnation Payments. All compensation, awards,
proceeds, damages, claims, insurance recoveries, rights of
action, and payments ("funds") that the Trustor may receive or
to which the Trustor may become entitled with respect to the
Mortgaged Property in the event of a partial condemnation or
other partial taking of the Mortgaged Property by a public
agency, unless the Trustee and Beneficiary otherwise agree in
writing, shall be divided into two portions, one equal to the
principal balance of the Promissory Note at the time of
receipt of such funds and the other equal to the amount by
which such funds exceed the principal balance of the
Promissory Note at the time of receipt of such funds.
The first such portion shall be applied to the sums secured by
this Deed of Trust, whether or not then due, including but not
limited to principal, accrued interest, and advances with the
balance of the funds paid to the Trustor.
No Cure of Waiver of Default. Any application of such amounts
or any portion of it to any Indebtedness secured by this Deed
of Trust shall not be construed to cure or waive any default
or notice of default under this Deed of Trust or invalidate
any act done under any such default or notice.
3.8 EXPENDITURES BY LENDER. If Trustor fails to comply with any
provision of this Deed of Trust, or if any action or
proceeding is commenced against the Mortgaged Property that
would materially affect Lender's interests in the Property,
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Lender on Trustor's behalf may, but shall not be required to,
take any action that Lender reasonably deems appropriate. Any
amount that Lender expends in do doing will bear interest at
the rate charged under the Promissory Note from the date
incurred or paid by Lender to the date of repayment by
Trustor. All such expenses, at Lender's option, will (a) be
payable on demand, (b) be added to the balance of the
Promissory Note and be apportioned among and be payable with
any installment payments to become due during the remaining
term of the Promissory Note, or (c) be treated as a balloon
payment which will be due and payable at the Promissory Note's
maturity. This Deed of Trust also will secure payment of
these amounts. The rights provided for in this paragraph
shall be in addition to any other rights or any remedies to
which Lender may be entitled on account of the default. Any
such action by Lender shall not be construed as curing the
default so as to bar Lender from any remedy that it otherwise
would have had.
3.9
WARRANTY. Trustor warrants that the Mortgaged Property
Trustor's use of the Mortgaged Property complies with
existing applicable laws, ordinances, and regulations
governmental authorities.
and
all
of
3.10 IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL
AUTHORITIES. The following provisions relating to
governmental taxes, fees and charges are a part of this Deed
of Trust:
Current Taxes, Fees and Charges. Upon request by Lender,
Trustor shall execute such documents in addition to this Deed
of Trust and take whatever other action is requested by Lender
to perfect and continue Lender's lien and security interest on
the Property. Trustor shall reimburse Lender for all taxes,
as described below, together with all expenses incurred in
recording, perfecting or continuing this Deed of Trust,
including without limitation all taxes, fees, documentary
stamps, and other charges for recording or registering this
Deed of Trust.
Taxes. The following shall constitute taxes to which this
section applies: (a) a specific tax upon this type of Deed of
Trust or upon all or any part of the Indebtedness secured by
this Deed of Trust; (b) a specific tax on Trustor which
Trustor is authorized or required to deduct from payments on
the Indebtedness secured by this type of Deed of Trust; (c) a
tax on this type of Deed of Trust chargeable against the
Lender or the holder of the Promissory Note; and (d) a
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specific tax on all or any portion of the Indebtedness or on
payments of principal and interest made by Trustor.
Subsequent Taxes. If any tax to which this section applies
is enacted subsequent to the date of this Deed of Trust, this
event shall have the same effect as an Event of Default (as
defined below), and Lender may exercise any or all of its
available remedies for an Event of Default as provided below
unless Trustor either (a) pays the tax before it becomes
delinquent, or (b) contests the tax as provided above in the
Taxes and Liens section and deposits with Lender cash or a
sufficient corporate surety bond or other security
satisfactory to Lender.
3.11 SECURITY AGREEMENT; FINANCING STATEMENTS. The
provisions relating to this Deed of Trust as
agreement are a part of this Deed of Trust:
following
a security
Security Agreement. This instrument shall constitute a
securi ty agreement to the extent of any of the Mortgaged
Property constitutes fixtures or other personal property, and
Lender shall have all of the rights of a secured party under
the Uniform Commercial Code as amended from time to time.
Securi ty Interest. Upon request by Lender, Trustor shall
execute financing statements and take whatever other action is
requested by Lender to perfect and continue Lender's security
interest in the Rents and Personal Property in a manner and at
a place reasonably convenient to Trustor and Lender and make
it available to Lender within ten (10) days after receipt of
written demand from Lender.
Addresses. The mailing addresses of Trustor (debtor) and
Lender (secured party), from which information concerning the
security interest granted by this Deed of Trust may be
obtained (each as required by the Uniform Commercial Code),
are as stated on the first page of this Deed of Trust.
3.12 FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions
relating to further assurances and attorney-in-fact are a part
of this Deed of Trust:
Further Assurances. At any time, and from time to time, upon
request of Lender, Trustor will make, execute and deliver, or
will cause to be made, executed or delivered, to Lender or to
Lender's designee, and when requested by Lender, cause to be
filed, recorded, refiled, or rerecorded, as the case may be,
at such times and in such offices and places as Lender may
deem appropriate, any and all such mortgages, deeds of trust,
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securi ty deeds, security agreements, financing statements,
continuation statements, instruments of further assurance,
certificates, and other documents as may, in the sole opinion
of Lender, be necessary or desirable in order to effectuate,
complete, perfect, continue, or preserve (a) the obligations
of Trustor under the Promissory Note, this Deed of Trust, and
the Related Documents, and (b) the liens and security
interests created by this Deed of Trust as second priority
liens on the Mortgaged Property, whether now owned or
hereafter acquired by Trustor. Unless prohibited by law or
agreed to the contrary by Lender in writing. Trustor shall
reimburse Lender for all costs and expenses incurred in
connection with the matters referred to in this paragraph.
Attorney-In-Fact. If Trustor fails to do any of the things
referred to in the preceding paragraph, Lender may do so for
and in the name of Trustor and at Trustor's expense. For such
purposes, Trustor hereby irrevocably appoints Lender as
Trustor's attorney-in-fact for the purpose of making,
executing, delivering, filing, recording, and doing all other
things as may be necessary or desirable, in Lender's sole
opinion, to accomplish the matters referred to in the
preceding paragraph.
4.0 FULL PERFORMANCE AND RECONVEYANCE. If Trustor pays all the
Indebtedness, including without limitation, all future
advances, when due, and otherwise performs all the obligations
imposed upon Trustor under the Loan Agreement, the Promissory
Note and this Deed of Trust, Lender shall execute and deliver
to Trustee a request for full reconveyance and shall execute
and deliver to Trustor suitable statements of termination of
any financing statement on file evidencing Lender's security
interest in the Rents and Personal Property. Lender may
charge Trustor a reasonable reconveyance fee at the time of
reconveyance.
5.0 DEFAULT. Each of the following, at the option of Lender,
shall consti tt:-. '" an event of default ("Event of Default")
under this Deea of Trust:
Default on Indebtedness. Failure of Trustor to make any
payment when due under the Promissory Note if not cured within
thirty (30) days after written notice from the Lender.
Default on Other Payments. Failure of Trustor within the
time required by this Deed of Trust to make any payment for
taxes or insurance, or any other payment necessary to prevent
filing of or to effect discharge of any lien.
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Compliance Default. Failure of Trustor to comply with any
other term, obligation, covenant or condition contained in
this Deed of Trust, the Promissory Note, the Loan Agreement,
the Related Documents, including without limitation the OPA,
after notice and any applicable cure period has expired.
Breaches. Any warranty, representation or statement made or
furnished to Lender by or on behalf of Trustor under this Deed
of Trust, the Promissory Note, the Loan Agreement, or any of
the Related Documents is, or at the time made or furnished
was, false in any material respect.
Insolvency. The insolvency of Trustor, appointment of a
receiver for any part of Trustor's property, any assignment
for the benefit of creditors, the commencement of any
proceeding under any bankruptcy or insolvency laws by or
against Trustor, which is not discharged or dismissed within
ninety (90) days, or the dissolution or termination of
Trustor's existence as a going business (if Trustor is a
business) .
Foreclosure, etc. Commencement of foreclosure, whether by
judicial proceeding, self-help, repossession or any other
method, by any creditor of Trustor against any of the
Mortgaged Property. However, this subsection shall not apply
in the event of a good faith dispute by Trustor as to the
validity or reasonableness of the claim which is the basis of
the foreclosure, provided that Trustor gives Lender written
notice of such claim and furnishes reserves or a surety bond
for the claim satisfactory to Lender.
5.1 RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any
Event of Default and at any time thereafter, Trustee or
Lender, at its option, may exercise anyone or more the
following rights and remedies, in addition to any other rights
or remedies provided by law:
Foreclosure by Sale. Upon an Event of Default under this
Deed of Trust, Beneficiary may declare the entire Indebtedness
secured by this Deed of Trust immediately due and payable by
delivery to Trustee of written declaration of default and
demand. for sale and of written notice of default and of
election to cause the Mortgaged Property to be sold, which
notice Trustee shall cause to be filed for record.
Beneficiary also shall deposit with Trustee this Deed of
Trust, the Promissory Note, other documents requested by
Trustee, and all documents evidencing expenditures secured
hereby. After the lapse of such time may then be required by
law following the recordation of the notice of default, and
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notice of sale having been given as then required by law,
Trustee, without demand on Trustor, shall sell the Mortgaged
Property at the time and place fixed by it in the notice of
sale, either as a whole or in separate parcels, and in such
order as it may determine, at public auction to the highest
bidder for cash in lawful money of the United States, payable
at time of sale. Trustee may postpone sale of all or any
portion of the Mortgaged Property by public announcement at
such time and place of sale, and from time to time thereafter
may postpone such sale by public announcement at the time
filed by the preceding postponement in accordance with
applicable law. Trustee shall deliver to such purchaser its
deed conveying the Mortgaged Property so sold, but without any
covenant or warranty, express or implied. The recitals in
such deed of any matters or facts shall be conclusive proof of
the truthfulness thereof. Any person, including Trustor,
Trustee or Beneficiary may purchase at such sale. After
deducting all costs, fees and expenses of Trustee and of this
Trust, including cost of evidence of title in connection with
sale, Trustee shall apply the proceeds of sale to payment of:
all sums expended under the terms hereof, not then repaid,
with accrued interest at the amount allowed by law in effect
at the date hereof; all other sums then secured hereby; and
the remainder, if any, to the person or persons legally
entitled thereto.
Judicial Foreclosure. With respect to all or any part of
the Mortgaged Property, Lender shall have the right in lieu of
foreclosure by power of sale to foreclose by judicial
foreclosure in accordance with and to the full extent provided
by California law. It is understood and agreed by the parties
hereto that no action taken by the Lender shall result in the
imposition of personal liability on any of the members,
partners, directors, shareholders and officers, as applicable,
of Trustor or on Trustor itself or its constituent members.
UCC Remedies. With respect to all or any part of the
Mortgaged Property, Lender shall have the rights and remedies
of a secured party under the Uniform Commercial Code,
including without limitation the right to recover any
deficiency in the manner and to the full extent provided by
California law.
Collect Rents. Lender shall have the right, without notice to
Trustor, to take possession of and manage the Mortgaged
Property and collect the Rents, including amounts past due and
unpaid, and apply the net proceeds, over and above Lender's
costs, against the Indebtedness. In furtherance of this
right, Lender may require any tenant or other user of the
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Mortgaged Property to make payments of rent or use fees
directly to Lender. If the Rents are collected by Lender,
then Trustor irrevocably designates Lender as Trustor's
attorney-in-fact to endorse instruments received in payment
thereof in the name of Trustor and to negotiate the same and
collect the proceeds. Payments by tenants or other users to
Lender in response to Lender's demand shall satisfy the
obligations for which the payments are made, whether or not
any property grounds for the demand existed. Lender may
exercise its rights under this subparagraph either in person,
by agent, or through a receiver.
Appoint Receiver. Lender shall have the right to have a
receiver appointed to take possession of all or any part of
the Mortgaged Property, with the power to protect and preserve
the Mortgaged Property, to operate the Property preceding
foreclosure or sale, and to collect the Rents from the
Mortgaged Property and apply the proceeds, over and above the
cost of the receivership against the Indebtedness. The
receiver may serve without bond if permitted by law. Lender's
right to the appointment of a receiver shall exist whether or
not the apparent value of the Mortgaged Property exceeds the
indebtedness by a substantial amount. Employment by Lender
shall not disqualify a person from serving as a receiver.
Tenancy at Sufferance. If Trustor remains in possession of
the Mortgaged Property after the Property is sold as provided
above or Lender otherwise becomes entitled to possession of
the Property upon default of Trustor, Trustor shall become a
tenant at sufferance of Lender or the purchaser of the
Mortgaged Property and shall, at Lender's option, either (a)
pay a reasonable rental for the use of the Property, or (b)
vacate the Mortgaged Property immediately upon the demand of
Lender.
Other Remedies. Trustee or Lender shall have any other
right or remedy provided in this Deed of Trust or the
Promissory Note or by law.
Notice of Sale. Lender shall give Trustor reasonable
notice of the time and place of any public sale of the
Personal Property or of the time after which any private sale
or other i~tended disposition of the Personal Property is to
be made. Reasonable notice shall mean notice given at least
thirty (30) days before the time of the sale or disposition.
Any sale of Personal Property may be made in conjunction with
any sale of the Mortgaged Property.
24
P:\Clcrical Services Dcpl\Margarcl Parker\Agenda\CDC 02-03\03'()1.()(j NHS Deed orTrusl,doc
Sale of the Mortgaged Property. To the extent permitted by
applicable law, Trustor hereby waives any and all rights to
have the Mortgaged Property marshaled. In exercising its
rights and remedies, the Trustee or Lender shall be free to
sell all or any part of the Property together or separately,
in one sale or by separate sales. Lender shall be entitled to
bid at any public sale on all or any portion of the Mortgaged
Property.
Waiver; Election of Remedies. A waiver by any party of a
breach of a provision of this Deed of Trust shall not
constitute a waiver of or prejudice the party's rights
otherwise to demand strict compliance with that provision or
any other provision. Election by Lender to pursue any remedy
provided in this Deed of Trust, the Promissory Note, in any
Related Document, or provided by law shall not exclude pursuit
of any other remedy, and an election to make expenditures or
to take action to perform an obligation of Trustor under this
Deed of Trust after failure of Trustor to perform shall not
affect Lender's right to declare a default and to exercise any
of its remedies.
Attorneys' Fees; Expenses. If Lender institutes any suit or
action to enforce any of the terms of this Deed of Trust,
Lender shall be entitled to recover such sum as the court may
adjudge reasonable as attorneys' fees at trial and on any
appeal. Whether or not any court action is involved, all
reasonable expenses incurred by Lender which in Lender's
opinion are necessary at any time for the protection of its
interest or the enforcement of its rights shall become a part
of the Indebtedness payable on demand and shall bear interest
at the Promissory Note rate from the date of expenditure until
repaid. Expenses covered by this paragraph include, without
limitation, however subject to any limits under applicable
law, Lender I s attorneys' fees whether or not there is a
lawsuit, including attorneys' fees for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or
injunction), appeals and any anticipated post-judgment
collection services, the cost of searching records, obtaining
title reports (including foreclosure reports), surveyors'
reports, appraisal fees, title insurance, and fees for the
Trustee, to the extent permitted by applicable law. For the
purposes hereof, the words "Lender's attorneys' fees" include
the salaries, benefits and expenses of uttorneys employed in
the office of the City Attorney computed on an hourly basis
for any such legal services provided in connection with the
enforcement of the rights of the Lender hereunder. Trustor
also will pay any court costs, in addition to all other sums
provided by law.
25
P:\Clcriclll Services Depl\Margarel Parker\Agenda\COC 02-03\03-01-06 NHS Deed ofTrusl.doc
Rights of Trustee. Trustee shall have all of the rights and
duties of Lender as set forth in this section.
6.0 POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions
relating to the powers and obligations of Trustee are part of
this Deed of Trust:
Powers of Trustee. In addition to all powers of Trustee
arising as a matter of law, Trustee shall have the power to
take the following actions with respect to the Property upon
the written request of Lender and Trustor: (a) join in
preparing and filing a map or plat of the Mortgaged Property,
including the dedication of streets or other rights to the
public; and (b) join in granting any easement or creating any
restriction on the Mortgaged Property.
Obligations to Notify. Trustee shall not be obligated to
notify any other party of a pending sale under any other trust
deed or lien, or of any action or proceeding in which Trustor,
Lender, or Trustee shall be a party, unless the action or
proceeding is brought by Trustee.
Trustee. Trustee shall meet all qualifications required for
Trustee under applicable law. In addition to the rights and
remedies set forth above, with respect to all or any part of
the Mortgaged Property, the Trustee shall have the right to
foreclose by notice and sale, and Lender shall have the right
to foreclose by judicial foreclosure, in either case in
accordance with and to the full extent provided by applicable
law.
Successor Trustee. Lender, at Lender's option, may from time
to time appoint a successor Trustee to any Trustee appointed
hereunder by an instrument executed and acknowledged by Lender
and recorded in the office of the recorder of San Bernardino
County, California. The instrument shall contain, in addition
to all other matters required by state law, the names of the
original Lender, Trustee, and Trustor the book and page where
this Deed of Trust is recorded, and the name and address of
the successor trustee, and the instrument shall be executed
and acknowledged by Lender or its successors in interest. The
successor trustee, without conveyance of the Mortgaged
Property, shall succeed to all the title, power, and duties
conferred upon the Trustee in this Deed of Trust and by
applicable law. This procedure for substitution of trustee
shall govern to the exclusion of all other provisions for
substitution.
26
P:\Clcrical Services Dcpl\Margarel ParkerlAgenda\CDC 02.03\03-0]-06 NHS Deed ofTrusl.doc
7.0 NOTICES TO TRUSTOR AND OTHER PARTIES. Any notice under this
Deed of Trust shall be in writing and shall be effective when
actually delivered or, if mailed, shall be deemed effective
three business days after it is deposited in the United States
mail first class, registered mail, postage prepaid, directed
to the addresses shown near the beginning of this Deed of
Trust. Any party may change its address for notices under
this Deed of Trust by giving formal written notice to the
other parties, specifying that the purpose of this notice is
to change the party's address. All copies of notices of
foreclosure from the holder of any lien which has priority
over this Deed of Trust shall be sent to Lender's address, as
shown near the beginning of this Deed of Trust. For Notice
purposes, Trustor agrees to keep Lender and Trustee informed
at all times of Trustor's current address. Each Trustor
requests that copies of any notices of default and sale be
directed to Trustor's address shown near the beginning of this
Deed of Trust.
8.0 STATEMENT OF OBLIGATION. Lender may collect a fee, in an mount
not to exceed the statutory maximum, for furnishing the
statement of obligation as provided by Section 2943 of the
Civil Code of California.
9.0 [RESERVED]
10.0 ASSIGNMENT OF CONTRACTS. In addition to any other grant,
transfer or assignment effectuated hereby, without in any
manner limiting the generality of the grants in the conveyance
and grant section hereof, Trustor shall assign to Beneficiary,
as security for the indebtedness secured hereby, Trustor's
interest in all agreements, contracts, leases, licenses and
permits affecting the Property in any manner whatsoever, such
assignments to be made, if so requested by Beneficiary, by
instruments in form satisfactory to Beneficiary; but no such
assignment shall be construed as a consent by Beneficiary to
any agreement, contract license or permit so assigned, or to
impose upon Beneficiary any obligations with respect thereto.
11.0 BOOKS AND RECORDS. Trustor shall maintain, or cause to be
maintained, proper and accurate books, records and accounts
reflecting all items of income and expense in connection with
the operation of the Mortgaged Property or in connection with
any services, equipment or furnishings provided in connection
with the operation of the Mortgaged Property, whether such
income or expense be realized by Trustor or by any other
person or entity whatsoever excepting persons unrelated to and
unaffiliated with Trustor and who leased from Trustor portions
of the Mortgaged Property for the purposes of occupying the
27
P:\Clcrical Services Dcpl\Margarcl Parkcr\Agcnda\CDC 02-03\03.01-06 NHS Deed orTrusl.doc
dame. Upon the request of Beneficiary, Trustor shall prepare
and deliver to Beneficiary such financial statements regarding
operation of the Mortgaged Property as Beneficiary may
reasonably request. Beneficiary, or its designee, shall have
the right from time to time during normal business hours to
examine such books, records and accounts and to make copies or
extracts therefrom. Trustor shall keep all records and
documents for a period of five years after the expiration of
the Loan and Regulatory Agreements.
12.0 MISCELLANEOUS PROVISIONS. The following
provisions are a part of this Deed of Trust:
miscellaneous
Environmental Default and Remedies. In the event that any
portion of the Mortgaged Property is determined to be
"environmentally impaired", or an "affected parcel" as these
terms are defined at Code of Civil Procedure Section 725.5(e),
then in such event and without limiting or in any way
affecting the another rights and remedies of the Trustee and
the Beneficiary under this Deed of Trust, the Beneficiary may
elect to exercise its rights under Code of Civil Procedure
Section 725.5 (a) to waive its lien or such portion of the
Mortgaged Property and to exercise its rights and remedies to
recover the Indebtedness under a judgment as an unsecured
creditor of the Trustor and/or to exercise any other remedy
authorized by law. The Trustor shall be deemed to have
willfully permitted or acquired in a or release or threatened
release of a hazardous substance, if such release or
threatened release was knowingly or negligently caused or
contributed by to by any lessee, occupant, user of the
Mortgaged Property which caused or contributed to the release
or threatened release of a hazardous substance. All costs and
expenses of the Beneficiary, including reasonable attorney's
fees, plus interest at a rate per annum of eight percent (8%)
until paid, as incurred in connection with an action as may be
brought by the Beneficiary as provided in Code of Civil
Procedure Section 725.5(b).
Amendments. This Deed of Trust, together with any Related
Documents, constitutes the entire understanding and agreement
of the parties as to the matters set forth in this Deed of
Trust. No alteration of or amendment to this Deed of Trust
shall be effective unless given in writing and signed by the
party or parties sought to be charged or bound by the
altercation or amendment.
Acceptance by Trustee. Trustee accepts this Trust when this
Deed of Trust, duly executed and acknowledged, is made a
public record as provided by law.
28
P:\Clcrical Service, Dcpt\!l.1argarcl Parkcr\Agenda\CDC 02-03\03-01-06 NHS Deed ofTrust.doc
Applicable Law. This Deed of Trust has been delivered to
Lender and accepted by Lender in the State of California.
This Deed of Trust shall be governed by and construed in
accordance with the laws of the State of California.
Caption Headings. Caption headings in this Deed of Trust are
for convenience purposes only and are not to be used to
interpret or define the provisions of this Deed of Trust.
Merger. There shall be no merger of the interest or estate
created by this Deed of Trust with any other interest or
estate in the Property at any time held by or for the benefit
of Lender in any capacity, without the written consent of
Lender.
Severability. If a court of competent jurisdiction finds any
provision of this Deed of Trust to be invalid or unenforceable
as to any person or circumstance, such finding shall not
render that provision invalid or unenforceable as to any other
persons or circumstances. If feasible, any such offending
provision shall be deemed to be modified to be wi thin the
limits of enforceability or validity; however, if the
offending provision cannot be so modified, it shall be
stricken and all other provisions of this Deed of Trust in all
other respects shall remain valid and enforceable.
Successors and Assigns. Subject to the limitations stated in
this Deed of Trust on transfer of Trustor's interest, this
Deed of Trust shall be binding upon and inure to the benefit
of the parties, their successors and assigns. If ownership of
the Property becomes vested in a person other Trustor, Lender,
without notice to Trustor, may deal with Trustor's successors
with reference to this Deed of Trust and the indebtedness by
way of forbearance or extension without releasing Trustor from
the obligations of this Deed of Trust or liability under the
Indebtedness.
Time is of the Essence. Time is of the essence in the
performance of this Deed of Trust.
Waivers and Consents. Lender shall not be deemed to have
waived any rights under this Deed of Trust (or under the
Related Documents) unless such waiver is in writing and signed
by Lender. No delay or omission on the part of Lender in
exercising any right shall operate as a waiver of such right
or any other right. A waiver by and any party of a provision
of this Deed of Trust shall not constitute a waiver of or
prejudice the party's right otherwise to demand strict
29
P:IClcrical Services DeptIMargarct Parl.:cr\AgcndalCDC 02-03\03-01.06 NHS Deed ofTrust.doc
III
III
III
III
III
III
III
III
III
III
III
III
III
III
III
III
III
compliance with that provision or any other provision. No
prior waiver by Lender, nor any course of dealing between
Lender and Trustor, shall constitute a waiver of any of
Lender's rights or any of Trustor's obligations as to any
future transactions. Whenever consent by Lender is required
in this Deed of Trust, the granting of such consent by Lender
in any instance shall not constitute continuing consent to
subsequent instances where such consent is required.
Fixture Filing. This Deed of Trust also constitutes a
fixture filing as defined in the California Uniform Commercial
Code, as amended or recodified from time to time. This Deed
of Trust is to be recorded in the real estate records of San
Bernardino County, California, and covers goods which are to
become fixtures.
30
P:\Clerical Services Depl\Marg8Te1 Parlr.er\Agcnda\CDC 02-03\03.o1.Q6 NHS D~ ofTrusl.doe
THE TRUSTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
DEED OF TRUST, AND THE TRUSTOR AGREES TO ITS TERMS, AND THE TERMS
OF THE PROMISSORY NOTE SECURED BY THIS DEED OF TRUST.
TRUSTOR
Neighborhood Housing Services
of the Inland Empire, Inc., a
California non-profit corporation
Date:
By:
Executive Director
[SIGNATURES MUST BE ACCOMPANIED BY NOTARY JURAT]
P:\Clcrical Services Depl\Margarel Parkcr\Agemla\CDC 02-03\03-01-06 NHS Deed ofTrust.doc
EXHIBIT "A"
Legal Description of the Parcels
PARCEL I
688, 690, 692, 694, 696 & 698 West 6th Street
APN 0134-021-27000
East 50 feet of the South ~ of Lot 4, in Block 43, in the City of
SAN BERNARDINO, County of SAN BERNARDINO, State of California, as
per Plat recorded in Book 7, page 1 of Maps, Records of said
County.
PARCEL 2
APN 0134-021-260000
That portion of Lot 4, Block 43 as per plat recorded in Book 7 of
Maps, page 1, records of the County of San Bernardino, State of
California, beginning at the Southwest Corner of said Lot 4; thence
East 100 feet more or less to a point 50 feet west of the Southeast
corner of said lot; thence North 70 feet more or less to a point
230 feet South of the North line of said Lot 4; thence West 100
feet more or less to the West line of said Lot 4; thence South 70
feet more or less to the point of beginning. Also commonly know as
688 through 698 west 6th Street, San Bernardino, CA 92410.
P:\Clcrical Services Dept\Margaret Parker\Agenda\CDC 02.03\03-01.06 NHS Deed ofTrusl.doc
EXHIBIT "En
Initial Rent Schedule for Rental Units
P:\Clcrical Services Dcpt\Margarcl ParkcMgenda\Agmlls-Amend\O)-OI-Q6 NHS HOME Loan Acq Agreement,doc
EXHIBIT "F"
CITY OF SAN BERNARDINO
REDEVELOPMENT AGENCY
FORM OF CERTIFICATION/RECERTIFICATION OF TENANT ELIGIBILITY
(HOME PROJECTS)
(I) Tenant Information
Rcntal Unit:
Street Address:
City:
Bedroom Size:
Unit No.:
Zip Code:
I/We, the undersigned, being first duly sworn, state that Vwe have read and answered fully and truthfully each of the
following questions for all persons who are to occupy the unit in the above apartment development for which
application is made, all of whom are listed below:
HOUSEHOLD
Name of Members Relationshio Age Social Security # Place of Employment
Date of Occupancy of Rental Unit by Tenant:
Date of Lease Signed for Rental Unit by Tenant:
Certification Date (Earlier of Date of Occupancy or Date Lease Signed):
Anticipated Annual Income
The anticipated total annual income from all sources of each person listed in I for the twelve month period
beginning on the Certification Date listed above, including income described in (a) below, but excluding all income
described in B. below, is $
A. The amount set forth above includes all of the following income (unless such income is described in (b) below):
(1) All wages and salaries, overtime pay, commissions, fees, tips and bonuses before payroll deductions;
(2) Net income from the operation of a business or profession or from the rental of real or personal property
(without deducting expenditures for business expansion or amortization of capital indebtedness or any
allowance for depreciation of capital assets); interest and dividends (including income from assets as set
forth in item B. below);
(3) Full amount of periodic payments received from Social Security, annuities, insurance policies, retirement
funds, pensions, disability or death benefits and other similar types of periodic reports;
(4) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation
and severance pay;
(5) The maximum amount of public assistance available to the above persons;
(6) Periodic and detenninable allowances, such as alimony and child support payments and regular
contributions and gifts received from persons not residing in the dwelling;
Exhibit "F-)"
P:\Clcrical Services Dcpl\Margarcl Parker\AgendalAgrmts-Amcnd\03-0l-06 NHS HOME Loan Acq Agreement,doc
(7) All regular pay, special pay and allowances ofa member of the Armed Forces (whether or not living in the
dwelling) who is the head of the household or spouse; and
(8) Any earned income tax credit to the extent it exceeds income tax liability.
B. The following income is excluded from the amount set forth above:
(1) Casual, sporadic or irregular gifts;
(2) Amounts that are specifically for or in reimbursement of medical expenses;
(3) Lump sum additions to family assets, such as inheritances, insurance payments (including payments under
health and accident insurance and worker's compensation), capital gains and settlement for personal or
property losses;
(4) Amounts of educational scholarships paid directly to student or educational institution, and amounts paid
by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment, but in
either case only to the extent used for such purposes;
(5) Hazardous duty pay to a member of the household in the armed forces who is away from home and
exposed to hostile fire;
(6) Relocation payments under Title II of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970;
(7) Income from employment of children (including foster children) under the age of 18 years;
(8) Foster child care payments;
(9) The value of coupon allotments under the Food Stamp Act ofl977;
(10) Payments to volunteers under the Domestic Volunteer Service Act of 1973;
(1 1) Payments received under the Alaska Native Claims Settlement Act;
(12) Income derived from certain submarginal land of the United States that is held in trust for certain Indian
tribes;
(l3)Payments on allowances made under the Department of Health and Human Services' Low-Income Home
Energy Assistance Program; and
(14) Payments received from the Job Partnership Training Act
Net Family Assets
If any of the persons described in Members of the Household (or any person whose income or contributions were
included in Anticipated Annual Income has any savings, stocks, bonds, equity in real property or other form of
capital investment (excluding interest in Indian trust lands), provide:
A. The total value of all such assets owned by all such persons: $
, and
B. The amount of income expected to be derived from such assets in the 12-month period commencing this date:
$
Exhibit "F-2"
P:\Clcrical Services Dcpl\Margarel Parkcr\Agcnd.a\Agnnls-AmcndIO).O 1..06 NHS HOME Loan Acq AgreemellLdoc
Students
A. Will all of the persons listed in Members of Household above be or have they been fulltime students during five
calendar months of this calendar year at an educational institution (other than a correspondence school) with
regular faculty and students? 0 Yes 0 No
B. If yes, is any such person (other than non-resident aliens) married and eligible to file a joint federal income tax
return? 0 Yes 0 No
The above information is full, true and complete to the best of my knowledge. I have no objections to inquiries
being made for the purpose of verifying the statements made herein.
I acknowledge that all of the above information is relevant to the status under federal law related to the City's
HOME Program and the interest in the Property. I consent to the disclosure of such information to the
Redevelopment Agency of the City of San Bernardino, County, State and Federal Department of Housing and Urban
Development (HUD) or agent acting on their behalf and any authorized agent of the Treasury Department or Internal
Revenue Service.
Date:
Signature:
Tenant
Date:
Signature:
Tenant
(Signature Must be Notarized)
Exhibit "F-3"
P:\Clcrical Services Dept\Margaret Parker\Agenda\Agnnls-AmcndIOJ.OI.06 NHS HOME Loan Aeq Agrecmenl.doc
2. COMPLETION BY NEIGHBORHOOD HOUSING SERVICES, INC., ONLY:
A. Calculation of Eligible Income
(I) Enter amount entered for entire household in Anticipated Annual Income:
$
(2) If the amount entered in A. of Net Family Assets above is greater than $5,000, enter:
(a) the product of the amount entered in A. of Net Family Assets above multiplied by the
current passbook savings rate as determined by HUD: $
(b) the amount entered in B. of Net Family Assets above: $
(c) enter the greater ofline (a) or line (b): $
(3) TOTAL ELIGIBLE INCOME (Line A (I) plus line A (2) (c): $
B. Enter Number of family members listed in item I above:
C. The amount entered in A (3) (Total Eligible Income) is: $
D Less than $ of median income for the area in which the Project is located, which is the
maximum income at which a household may be determined to be a Qualifying Tenant as
that term is defined in the Agreement HOME Regulatory Agreement ("Qualifying
Tenant").
D More than the above mentioned amount.
D. Number of apartment units assigned:
E. Monthly Rent: $
F. This apartment unit (was/was not) last occupied for a period of 31 consecutive days by a
person or persons whose adjusted income, as certified in the above manner, was equal to or
less than the amount at which a person would have qualified as a Qualifying Tenant under
the terms of the HOME Regulatory Agreement.
G. Applicant:
D Qualifies as a Qualifying Tenant
D Does Not Qualify as a Qualifying Tenant
Exhibit "F-4"
P:IClcrical Ser,'iccs Depl\Margarcl ParkerlAgcnda'>Agrmts-Amcnd\03-01.06 NHS HOME wan Acq Agrccmcnt.doc
CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
January 10, 2003
TO:
Margaret Parker, Secretary
FROM:
Michelle Taylor, Senior Secretary
RE:
Resolution CDC/2003-2
At the Mayor and Common Council meeting of January 6, 2003, the City of San Bernardino
adopted Resolution CDC/2003-2- Resolution approving and authorizing the Executive Director
of the Redevelopment Agency to execute the Home Loan Agreement by and between the Agency
and Neighborhood Housing Services of the Inland Empire, Inc. (NHS) for the acquisition of the
property located at 688-698 W. 6th Street (Central City North Redevelopment Project Area/Old
Towne San Bernardino).
Please obtain all signatures and return the original agreement to the City Clerk's Office. If you
have any questions, please do not hesitate to contact me at ex!. 3206. Thank you.
Michelle Taylor
Senior Secretary
I hereby acknowledge receipt of this memorandum.
Signed: 'PtJ':u:l ~j?M.~
Date: Ij.:2JI/(}0
Please sign and return
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
INTER-OFFICE MEMORANDUM
FROM:
Michelle Taylor, Senior Secretary
Margaret Parker, Secretary/11 f
TO:
SUBJECT:
Executed Agreement
DATE:
February 4,2003
Enclosed are the fully executed documents pertaining to the following resolution:
CDC/2003-2 - Redevelopment Agency of the City of San Bernardino
2003 Home Loan Agreement with Attachments
I arrange to have the attached Deed of Trust recorded.
Thank you,
Margaret
Attachments
,.
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
"
Meeting Date (Date Adopted): ((..., l'::'
I ,-J. n
Vote: Ayes I J Nays
Change to motion to amend original documents:
Item # n-j Resolution # eeel L(e5 J-
f- -,
J,- ke) ,
Abstain Absent ' <C:7'
/
Reso, # On Attachments: ,/
Contract term:
NullNoid After:
Note on Resolution of Attachment stored separately: ---=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
By: -
j-jlj,
Date Sent to MaJ6r:
Date of Mayor's Signature:
') ,,",
I ' '" " ''-'
III,03
Reso. Log Updated:
Seal Impressed:
./
v
./
Date ofClerklCDC Signature: IJ1' -0''<'
Date Memo/Letter Sent for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
1-IO-O?'
See Attached: /' Date Returned: /)-,;" ()~
See Attached:
See Attached:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Yes -.L No By~
Yes No -L By~
Yes No / By~
Yes No / By_
Yes No / By_
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance Dev. Services EDA Y' Finance
Police Public Services Water Others:
MIS
Notes:
BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc,)
Ready to File: (111
Date: 9(S/03
Revised 01/12/0 I