HomeMy WebLinkAbout1981-241
II
1 RESOLUTION NO. ?/-0l1//
2, RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION
I OF AN AGREEMENT AND ANY RELATED DOCUMENTS WITH THE STATE OF CALIFORNIA FOR
3 THE IMPLEMENTATION AND PARTICIPATION IN THE RENTAL HOUSING CONSTRUCTION
PROGRAM.
4
5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
6
7 SECTION 1. The Mayor of San Bernardino is hereby authorized and
8 directed to execute on behalf of said City an Agreement and any related
9 documents with the State of California relating to a $2,985,832 loan
10 commitment for the purpose~ of development and construction of new rental
11 housing under the Rental Housing Construction Program, a copy of which
12 is attached hereto, marked Exhtb.it A and incorporated herein by reference
13
14
15
16
17
18
19
20 I'
II
21 II
;I
22 I'
,
,
23 I
24
25
26
27
28
as fully as though set forth at 1 ength.
I HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Mayor and Common Council of the City of San Bernardino at a
'//1JIk)
\,~
AYES:
k;r/K
day of
meeting thereof, held on the
NAYS:
ABSENT:
, 1981, by the fo 11 owing vote, to wi t :
COUNGl;:~:)t~ YI-f;
i
~7n:' )
J:f;d(4{hj;7!J.Hh~~ ~.v
~LMdI~
' City Cl er
The
resolution is hereb.y approved this
day
of
, 1981.
./
Approved as to form: tC1
~~..-
City At rney-
STAN'DARD AGREEMENT -
APPROVEO BY THE
ATTO~NEY GENERAl..
(",_/"."'"t. '-"r'~') :,' ~;""T'\ '\C;'t::. (,( Vi t
'-' ~-d -~ \~ ! ~'\i'!'~ \."'~ ,.,,1 ~~,:. V ',,' ~- ~;
SPONSOR OSVELOPMENT CONTRACT
o CONTRACTOR
o STATE AGENCY
o DEPT. OF GEN. SER.
o CONTROLLER
o
o
o
. '
",
STATE OF.CALIFORNIA
STD. 2 tREV. '1/7151
THIS AGREEMENT, made and entered into this 29th day of May , 19~,
in the State of California, by and between State of California, through its duly elected or appointed,
qualified and acting
TITt..E OF OFFICER ACTING FOR STATE
A,GENCY
NUMB ER
Director
hereafter called the State. and
City of San Bernard i no
hereafter called the Contractor.
e artment of Housin and Communit
80-RHC-017
WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State
hereinafter expressed, does hereby agree to furnish to the State services and materials, as follows:
(Set forth service to be rendered by Contractor, amount to be paid Contractor, time for perfonnance or completion, and ottadl. plans and specifications, if any.J
Authority: The Rental Housing Construction Program ("Program") has been established by the
Callfornia Legislature in the Department of Housing and Community Development ("Department") for
the purpose of assisting the construction of new rental housing developments and of ensuring
that assisted units in those developments are available on a priority basis to or occupied by
households of low and very low income. Assistance under the Program will be provided by the
Department pursuant to Chapter 9 of Part 2, Division 31 of the Health and Safety Code (Sections
50735 et seq.) and the regulations adopted thereunder and set out as Subchapter 10, Chapter 7,
Part 1, Tltle 25 of the California Administrative Code (Section 7800 et seq.), as amended and in
effect from time to time.
Purpose: To assist the construction of the Development, and to ensure that at least 30 percent
of the units (hereinafter the "assisted units") in the Development shall be made available on a
priority basis to or occupied by households of low and very low income, the Contractor (herein-
after the "Local Finance Entity" or "LFE") has appl ied to the Department for financial assis-
tance from the Program. The State on May 29, 1981 approved application No. R-18, subject to the
conditions hereinafter expressed and has determined to provide financial assistance pursuant to
the Progr am.
The provisions on the reverse side hereof constitute a part of this agreement.
IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written.
STATE OF CALIFORNIA
CONTRACTOR
AGENCY
CONTRACTOR liP; O'l'I1EIII "'11"1<4 "N lI'U)lVIDU
P""!I<4E"SItIP, It'l'C.)
ItE'l'Mltll " CORPOIII"'l'IOI<4
~
'CONTINUED ON
Oftpartment of Genero/ Services
Use ONL Y
SHEETS EACH BEAAtN NAME F N Fl.A
AMOUNT ENCUMISEAEO
"
APPROPFl.1 AT10N
Exempt from Department of
General Services approval
per Section 1206 of the State
Administrative Manual.
"OJ. INCIIIE"SING E:NCUMIIIIANC[
"OJ. D[CIIIE"SINCli EMCUMIIIIANCE L..INE ITEM AL..L..OTMENT
'JUL 16 1981
~
e.Fl. NO.
J hereby certify upon my own personal knowledge that budgeted fund
ure avail ble r the period and purpose of the expenditure stated above.
I ereby c Ify that all conditions for exemption set fOrlh in State Administrative Manual Section 1209
have been complied with and this document is exempt from review by the Department of Finance.
8. As an inducement to the Department to provide the financial assistance
made available under the Program, the LFE has agreed to enter into this
State Contract, pursuant to Health and Safety Code Section 50745(a), and
has consented to be regulated and restricted as provided herein.
9. The LFE has entered, or will enter into an agreement with Ponderosa
Homes/Housing Concepts, A California joint venture (hereinafter "the
Sponsor"), to provide to the Sponsor below market interest rate (here-
inafter "BMIR") financing, or its equivalent, for the purpose of
assisting the Sponsor to acquire certain property (hereinafter "the
Property") described in Exhibit A, attached hereto and made part hereof,
and to develop, construct and operate on the Property a multi-unit
rental housing development (hereinafter "the Development") consisting of
69 assisted units to be situated in the County of San Bernardino, State
of Cal iforni a.
10. Pursuant to the statutes and regulations governing the Program, the LFE
and the Sponsor will enter into a Regulatory Agreement and a Development
Agreement regarding the Development and the financial assistance to be
provided therefor. The provisions of those agreements and of this State
Contract shall control the use of Program funds and other financial
assistance to be provided to the Development, to ensure the fiscal
integrity of the Development and the continuing availability of the
assisted units to eligible persons for the period described below.
11. Compliance with Law. The LFE agrees that, at all times, its acts
regarding the Development shall be in conformity with all provisions of
the Program including the statutes, rules and regulations, and such
pOlicies and procedures of the Department pertaining thereto, as amended
and in effect from time to time. The LFE acknowledges that it is
familiar with such applicable statutes, rules and regulations, and that
professional advice is available, as necessary, to enable the LFE to
fully comply with such statutes, rules and regulations.
12. Definitions.
(a) Unless the context requires otherwise, the terms used in this
contract shall be governed by the definitions set forth at Section 7802,
as ~ended and in effect from time to time. All references to code
sections refer to Title 25 of the California Administrative Code unless
otherwi se noted.
(b) In addition, the following terms shall have the meanings set forth
below:
"Annuity Fund Account" means the account establ i shed pursuant to
Sectlon 7808 for the payment of operating subsidies pursuant to Sec-
tion 7834.
"Attributable to the Assisted Units" means the factor based on the
ratio derived by dividing the gross square footage of the area with the
unit boundaries of the assisted units by the gross square footage of the
area within the unit boundaries of all the units in the Development,
(3)
common areas excepted. This factor may be adjusted to account for
unusual or temporary circumstances with the prior written approval of
the Dep artment.
"Development Payments" means payments pursuant to Section 7832 for
development costs as deflned in Section 7802.
"Excess Annuity Fund Payments" means the amount by ..nich the annual
payments from the Annulty Fund Account exceed approved Operating Costs
attributable to the assisted units less the accrued income from rent
from the assisted unit, including accrued rents and a prorata share,
approved by the Department, of Project Income derived from sources other
than rents.
"Loan Closinr means the date on ..nich the Sponsor executes, and the
Department accep s, the note and deed of trust evidencing the financial
assistance provided herein as required by this Contract.
"Operating Costs" shall have the meaning set forth in Section
7834(d), as amended and in effect from time to time.
"Project Income" means all income, from whatever sources. generated
by the Development, including dwelling units rents, any other duly auth-
orized tenant charges, commercial rents and net income from laundry room
and vending machine operations and similar sources. Any and all rents
accruing to the Sponsor from occupied units shall be included as Project
Income.
13. Assisted Units.
(a) The LFE shall ensure that the Development shall contain the number
and size of assisted and unassisted units specified in Exhibit B,
attached hereto and made part hereof. The Sponsor shall ensure that
only those rents described below shall be charged to occupants of
assisted units, subject to rent adjustments in accordance with the
procedures set forth below.
(b) The LFE shall ensure that the program assistance to be provided
under this Contract -- including any and all present and future payments
from the Program's accounts -- shall be used to ensure that each and
every assisted unit remain available on a priority basis to, or occupied
by, el igible households at affordable rents for a period of 30 years or
the term of the BMIR financing, if any, provided by the LFE, whichever
is greater. The number of assisted units to be available on a priority
basis to or occupied by very low income households and the number of
assisted units reserved for elderly or handicapped households, if any,
shall be as set forth in Exhibit B.
(cl The number of assisted units in the Development may be reduced only
where all of the following conditions are met:
(4)
(i) The reduction is approved by both the LFE and the Department,
and
(ii) Annuity Funds Payments or other Program payments cannot
provide assistance to maintain the fiscal integrity of the housing
development. A rate of return on investment, if any, less than that
permitted by the Regulatory Agreement shall not, in itself, be
regarded for purposes of this paragraph as indicative that the
Development's fiscal integrity is not being maintained. The deter-
mination of the need for a reduction in the number of assisted units
shall be at the sole discretion of the Department.
Any reduction in the number of assisted units pursuant to this
paragraph shall be reviewed, at least annually, to determine its
continued necessity. Upon such review the Department or LFE may
require that the number of assisted units be increased to any number
up to and including the number of assisted units specified in
Exhibit ,B.
14. Financial Assistance
(a) The Department agrees to provide financial assistance to the LFE, in
the form of Development Payments and a contingency amount, if any, for
the development and construction of the Development, in the amount and
according to the manner, timing and other terms specified in full in
Exhi bit C, attached hereto and made a part hereof. The Department is
not required to disburse or provide funds to the LFE until the Regula-
tory Agreement and the Development Agreement referred to herein have
received the approval of the Department. In addition, all the condi-
tions set forth in Exhibit C shall be met to the satisfaction of the
Department prior to loan closing.
(b) The LFE agrees to provide the amount set forth in Exhibit C in the
form of a loan secured by a note and deed of trust to the Sponsor in
accordance with the terms of Exhibit C, and exclusively for the purposes
designated therein. The LFE is not obliged to provide Development
Payments except as specified in Exhibit C, and except as may be provided,
for in such other documents or agreements, including those relating to
BMIR financing or its equivalent, as may be entered into from time to
time by the LFE and the Sponsor.
(c) The LFE agrees to cooperate with the Sponsor in applying to the
Department for such additional financial assistance from the ProgriJII as
may be necessary and available to ensure the Development's financi al
integrity.
15. Annuity Fund Payments
(a) The Department shall provide financial assistance from the Annuity
Fund Account to subsidize approved annual Operating Costs of the Devel-
opment attributable to the assisted units. Prior to the completion of
the Development, the LFE shall submit to the Department a proposed oper-
(5)
ating budget, including projected Operating Costs attributable to the
assisted units and projected income from rents from the assisted units,
including accrued rents and a prorata share, approved by the Department,
of the Project Income derived from sources other than rents, for the
fiscal year, or portion thereof, immediately following initial occupancy
of the Development. The initial proposed budget shall be sUbject to
review and approval by the Department. For subsequent fiscal years, the
LFE ,shall submit reports and budgets in accordance with paragraphs 24
and 25, respectively, of this Contract.
(b) On the basis of the approved initial and subsequent budgets submit-
ted by the LFE, the Department shall make payments from the Annuity Fund
Account for the following fiscal year in the amount of the difference
between the approved projected Operating Costs attributable to the
assisted unit, and the projected income from the rents from assisted
units, including accrued rents and a prorata share, approved by the
Department, of the Project Income derived from sources other than rents,
subject to the requirements of subparagraph (c) below. Such payments
shall be made monthly and deposited in such accounts and in such
financial institutions as the Department may direct. Such payments
shall be utilized by the LFE only for the payment of approved Operating
Costs attributable to assisted units in the Development. The LFE shall
disburse Annuity Fund Payments to the Sponsor in accordance with the
terms of the Regulatory Agreement referred to herein.
(c) On the basis of the annual financial report submitted to the
Department pursuant to paragraph 24 of this Contract, the Department
shall determine the amount of Excess Annuity Fund Payments, if any,
received by the LFE in the preceeding fiscal year. The LFE agrees to
abide by the directives of the Department and applicable terms of the
Regulatory Agreement with respect to the disposition of such funds. The
directives may include, but are not limited to, direct reimbursement of
the funds to the Department or the reduction of future Annuity Fund
Payments.
(d) In the event that the Department determines that insufficient funds
are available in the Annuity Fund Account to pay the entire amount
described in subparagraph (b), the Department and the LFE agree to make
all reasonable efforts to secure funds from other sources, including the
Management Reserve Account. If the Department determines that funds
from other sources are not avail ab 1 e, it may author i ze the reduct i on of
the number of assisted units in the Development to the extent necessary
to maintain the fiscal integrity of the Development. Rental income from
such units shall be applied to Operating Costs and shall supplement
Annuity Fund Payments. Any reduction in assisted units shall be
reviewed by the Department at least annually as to its continued neces-
sity.
(e) In the event that income from the rents from assisted units,
including accrued rents and a prorata share, approved by the Department,
of the Project Income derived from sources other than rents, exceeds
actual approved Operating Costs attributable to the assisted units in a
(6)
16.
given fiscal year, the LFE agrees to return the difference to the
Department within thirty (30) days after the Department's approval of
the Annual Report required by paragraph 24 of this Contract, subject to
applicable terms of the Regulatory Agreement.
Mana1ement Reserve Funds. In order to maintain affordable rents in the
Deve opment's asslsted units, the LFE may apply to the Department for
funds from the Management Reserve Account. Application shall be made,
and any management reserve payments made to the LFE shall be used in
accordance with the Program Regulations, in particular; Section 7836, as
amended and in effect from time to time.
Disbursement of Funds by LFE. The LFE shall deposit the funds received
from the Department under this Program into (a) special project
account(s). Disbursements to the Sponsor shall be made in accordance
with Exhibit C of this Contract. Pending such disbursements to the
Sponsor, the LFE shall invest the funds and remit such interest as
accrues thereby to the Department, in accordance with the terms of
Exhibit C. The LFE may specify, in writing, that assistance payments be
made directly from the Department to the Sponsor or through a third
party to the Sponsor.
18. Rents for Non-Assisted Units.
17.
(a) The LFE shall fix and alter from time to time, a schedule of rents
to be charged for non-assisted units in the Development as may be
necessary to provide tenants of such units with affordable rents con-
sistent with the financial integrity of the Development. Such a rent
schedule shall be subject to approval by the Department prior to the
disbursement of any funds or financial assistance under this Contract.
Such a rent schedule may be included as a term or condition of the below
market interest rate financing, or its equivalent, provided by the LFE
to the Sponsor.
(b) Where the LFE has established such a rent schedule for non-assisted
units, the LFE shall ensure that no rent increases shall take effect
without the approval of the LFE. Such rent increases shall be permitted
only where the Sponsor affirmatively demonstrates to the reasonable
satisfaction of the LFE and the Department that such rent increases are
necessary to defray increased operating costs or to avoid jeopardizing
the fiscal integrity of the Development.
19. Regulatory AQreement.
(a) At or prior to loan closing, the Sponsor and the LFE shall execute
a Regulatory Agreement which shall contain, at a minimum, such terms as
are required by the Program Regulations, particularly'Section 7822.
(b) The LFE shall ensure, through enforcement of the Regulatory
Agreement, or otherwise, that assisted units remain available to or
occupied by eligible families, as specified in Exhibit S, at affordable
rents for a period of 30 years from the date the Development is
(7)
certified for occupancy or for the term of the BMIR financing, whichever
is longer.
(c) The LFE shall fulfill its duties and responsiblities with respect
to the administration and monitoring of the Development as set forth in
this Contract and the Regulatory Agreement. In the event that there is
a breach or default by the Sponsor of any terms of the Regulatory
Agreement, the LFE shall notify the Department, within fifteen (15) days
after the LFE obtains knowledge of such breach, in writing, of (1) the
nature of such breach, and (2) the steps being undertaken by the LFE to
remedy such breach.
.
(d) The LFE hereby assigns to the Department all of its rights to
enforce the provisions of the Regulatory Agreement for the Development,
provided that this assignment shall be of no force or effect unless and
until the Department, at its sole discretion, determines that the LFE
refuses, fails, or is otherwise unable to enforce such provisions. The
Department shall notify the LFE, in writing, of its determination to
effect this assignment, specifying the reasons therefor, at least fif-
teen (15) days prior to the Department undertaking any action to enforce
the Regulatory Agreement.
20. Sponsor's Return on Investment. Where the Sponsor is not a nonprofit
corporatlon or a governmental entity, the LFE agrees that it will abide
by and enforce the provisions of Section 7866 as amended and in effect
from time to time, and applicable provisions of the Regulatory Agreement
regarding the allowable return on the Sponsor's investment in the Devel-
opment.
21. Development Agreement.
(a) The LFE and the Sponsor have entered or will enter into a Develop-
ment Agreement regarding the acquisition of the Property and the devel-
opment, construction and operation of the Development thereon. The
Development Agreement shall be subject to approval by the Department and
shall contain at a minimum such terms as are required by the Program
Regulations.
(b) Through enforcement of the Development Agreement, the LFE shall
supervise the design and construction of the Development.
(c) The LFE hereby assigns to the Department all its rights to enforce
the provisions of the Development Agreement in the event as determined
by the Department at its sole discretion that the LFE fails, refuses or
is otherwise unable to enforce those provisions. The Development Agree-
ment shall provide for an express assignment the LFE's rights thereunder
to the Department in said event. The Department shall notify the LFE,
in writing, of its determination to effect assignment, specifying the
reasons therefor, at least fifteen (15) days prior to the Department
undertaking any action to enforce the Development Agreement.
(8)
22.
BMIR Financing Documentis). The BMIR financing, or its equivalent, to
be prov1ded by the Lft 0 the Sponsor shall be evidenced and governed by
such other notes, deeds of trust, documents or agreements as may have
been or will be executed by or between the Sponsor and the LFE. The LFE
agrees that any obligation, covenant, condition or restriction contained
in such other note, deed of trust document or agreement which is con-
trary to, or inconsistent with the obligations, covenants, conditions or
restrictions contained in this State Contract shall be governed by the
terms of this State Contract, without otherwise rendering such other
notes, deeds of trust, documents or agreements void or invalid. The LFE
shall notify the Department, in writing, of any breach by the Sponsor of
its obligations under any agreements, notes or deeds of trust with res-
pect to the BMIR financing or its equivalent. Such notices shall be
given within 15 days after the occurrence of such breach.
Other Agreements. The LFE shall not enter into any other agreements
lnclud1ng, but not limited to, Regulatory and Development agreements, or
amendments thereto, with regard to the Development, without the prior
written approval of the Department.
Annual Report. The LFE shall file with the Department an annual report
1n a torm approved by the Department no later than 90 days after the end
of each fiscal year established for the Development. A separate report
shall be filed for each development for which the LFE is responsible
under the Program. The report shall contain such information with
respect to all units in the Development as the Department may then
require, including, but not limited to, the following:
(a) The fiscal condition of the Development, including an audited
financial statement indicating surplus or deficits in operating
accounts, a detailed itemized listing of income and expenses, and the
amounts of any fiscal reserves;
23.
24.
(b) the substantial physical defects in the rental housing development,
including a description of any major repair or maintenance work
undertaken in the reporting year;
(c) the occupancy of the rental housing development indicating
(1) the number and sizes of assisted units available to and/or
actually occupied by eligible households;
(2) the distribution of incomes of eligible households; and
(3) the ethnic groups to which eli~ible households belong and the
distribution of income of households on waiting lists for assisted
units; and
(4) general management performance, including tenants relations
and other relevant information.
(9)
25. Annual Budget.
(a) The LFE shall submit to the Department no later than 90 days before
the beginning of each fiscal year established for the Development, a
proposed budget, in a form approved by the Department, for each develop-
ment for which the LFE is responsible. The budget shall cover the
development's next fiscal year and shall include such information with
respect to all units in the Development for that period as the Depart-
ment may then require, including but not limited to the Development 's
projected rental income, other income, operating cost and utility cost.
(b) The proposed annual budget shall be accompanied by a request for
payments from the Annuity Fund Account, and/or'an application for
Management Reserve Funds, all as described in paragraphs 15 and 16
above, respectively, if, in the LFE'S opinion, such funds are required
to maintain the fiscal integrity of the development.
(c) Unless the Regulatory Agreement for the Development states other-
wise, the Development 's fiscal year shall run from July 1 through
June 30.
26. Management Plan. The LFE shall submit to the Department a Management
~Ian tor the Development in accordance with Section 7868(d), as amended
and in effect from time to time. Said Management Plan shall be revised
and updated as necessary in conjunction with the annual budget submitted
to the Department pursuant to Paragraph 25 of this Contract.
27. Term of Contract. The term of this Contract shall commence on June 5,
1981, and Shal I continue for the lesser of thirty-five (35) years from
the date of approval of this Contract by the Department of General
Services or thirty (30) years from the date that the Development is
certified for occupancy. This contract is subject to the approval of
the State Department of General Services.
28. Prevailing Wage Rate. The LFE shall ensure, through enforcement of the
Regulatory Agreement and the Development Agreement, that the prevailing
wage rate is paid for labor utilized in the construction of the Develop-
ment pursuant to all requirements, methods and definitions for prevail-
ing wage rate payment on public works construction found at Chapter IT
Part 7, Division 2 of the Labor Code (Section 1720, et seq.), as amended
and in effect from time to time.
29, Amendments. No amendment or other alteration of the terms of this Con-
tract shall be valid unless it is made in accordance with the proviSions
set forth in Section 7852; is in writing and signed by both parties
hereto. Neither party shall be bound by any oral representation or oral
agreement not incorporated herein.
30. Termination for Cause. The Department may terminate this Contract and
retuse to make any payment hereunder should the LFE fail to perform any
of the covenants of this Contract at the time and in the manner provided
herein. In the event of such termination, the Department, in its sole
discretion, may continue to provide Program assistance to the Develop-
ment in any manner is deems proper.
(10)
31.
Partial Invalidity. If any provision of this Contract shall be deemed
1nval1d, 11 legal or unenforceable by a court of competent jurisdiction,
the validity, legality and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired thereby.
Bindinf on Successors. The State Contract shall bind, and the benefits
thereo shall Inure to, the respective parties hereto, their legal
representatives, executors, administrators, successors in the office or
interest, and assigns; provided, however that the LFE may not assign
this State Contract or any of its obligations hereunder, voluntarily or
by operation of law, without the prior approval of the Department.
Gender. The use of the plural herein shall include the singular, use of
the singular shall include the plural, and the use of one gender shall
be deemed to include all genders.
RecordinQ Agreement. This Contract shall be acknowledged by each of the
part1es and recorded, or recorded by reference, in the official records
of the county in which the Development is situated, at the LFE'S
expense. The recorded contract shall be indexed in the grantor index to
the name of the Sponsor and in the grantee index to the State of
Cal iforni a.
32.
33.
34.
35.
Lien. The recorded or referenced State Contract shall constitute a lien
on-the Development for the performance of the covenants stated herein.
The term of the lien shall be identical to the term of this State
'Contract, set forth in Paragraph 27, above.
36.
Remedi es. In the event of the viol at ion or breach of any of the
prOV1S1ons of this Contract, the Department may give written notice
thereof to the LFE and, if such violation is not corrected to the
satisfaction of the Department within 30 days after the date such notice
is mailed, the Department may, without further prior notice, declare in
writing a default under this Contract effective on the date of such
declaration of default and upon any such declaration of default into the
Department may:
(a) Assume all the powers, rights, duties and obligations of the LFE
under the Regul atory Agreement and undertake any actions necessary for
the enforcement of the Regulatory Agreement.
(b) Apply to any court of competent jurisdiction for specific perfor-
mance of this Contract; for an injunction against any violation or
breach by the LFE of this Contract; for the appointment of a receiver to
take over the duties and responsiblities of the LFE under the Regulatory
Agreement; or for such other relief as may be appropriate, it being
agreed by the LFE that the injury to the Department arising from a
default under any of the terms of this contract would be irreparable and
that it would be extremely difficult to ascertain the amount of
compensation to the Department which would afford adequate relief in
light of the purposes and policies of the Program.
(11)
37. Election of Remedies. The remedies of the Department hereunder or under
any other lnstrument providing for or evidencing the financial assis-
tance provided herein are cumulative. . The exercise of one or more such
remedies shall not be deemed an election of remedies and shall not
preclude the exercise by the Department of anyone or more of its other
remedies.
38. Waiver. No wavier by the Department of any breach of or default under
this State Contract shall be deemed a waiver of any other or subsequent
breach thereof or default hereunder.
39. Captions. The captions used in this State Contract are inserted only as
a matter of convenience and reference and in no way define, limit or
describe the scope or the intent of the State Contract.
40. Governing Law. This State Contract shall be construed in accordance
wlth and governed by the laws of the State of California.
41. Notices. Written notices and other written communications by and
between the parties hereto shall be addressed as follows unless and
until a party hereto has, in writing, commmunicated a different address
to the other party hereto:
Department of Housing and Community Development
921 Tenth Street
Sacramento, CA 95814
HCF#45/2
(12)
City of San Bernardino
Page 1 of 2
EXHIBIT A
Legal Description
PARCEL NO. 1
Those portions of Lots 3, 4, and 5, Block 51, Rancho San Bernardino as per
plat thereof recorded in Book 7 of Maps, page 2, records of the County
Recorder of San Bernardino County, State of California, described as
follows:
Beginning at the intersection of the South line of Ninth Street and the West
line of Lot 31, Tract No. 4268 as per plat thereof recorded in Book 58 of
Maps, page 45, records of the County Recorder of said County; thence South
along the West line of said Tract 4268 and along the West line of Elmwood
Road, 40.00 feet wide, to the North line of Sixth Street, 82.50 feet wide;
thence West along the North line of said Sixth Street to a point which is
2,208.17 feet East of the intersection of the center line of Ti~pecanoe
Street and the Westerly prolongation of the North line of said Sixth Street,
said point being the Southeast corner of that certain parcel described in
the document recorded May 12, 1965, Document No. 18, in Book 6389, page 24
Official Records of Said County; thence North along the East line of said
parcel, a distance of 894.36 feet to the Northeast corner thereof; thence
West along the North line of said parcel, a distance of 974.73 feet to the
Northwest corner thereof; thence North along the West line of that certain
parcel described in the Deed recorded November 22, 1923, Document No. 39 in
Book 826 of Deeds, page 70, Records of said County to a point which is 905.2
feet South of the North line of said Lot 5, thence along a North line of
said land, East a distance of 92.3 feet to an angle point therein; thence
North along a West line of said land, a distance of 855.2 feet, more or less
to the South line of said Ninth Street; thence East along the South line of
said Ninth Street to the Point of Beginning.
EXCEPTING THEREFROM that portion thereof lying East of the Easterly line of
Parcel No. 1 (Del Rosa Avenue, 88.00 feet wide) as conveyed to the City of
San Bernardino by document recorded February 11, 1975 in Book 8614, page
536, Official Records of said County.
PARCEL NO. 2
Lot 8, excepting the West 470.25 feet thereof and all of Lot 9, Block 51,
Rancho San Bernardino as per plat thereof recorded in Book 7 of Maps, page
2, records of the County Recorder of San Bernardino County, State of
California.
Excepting therefrom those portions lying within Ninth Street.
City of San Bernardino
Page 2 of 2
ALSO EXCEPTING THEREFROM that portion lying Northerly of the following
described line:
Beginning at a point in the East line of said Lot 9, said point being South
O' 20' 24" West (recorded South O' 15' 20" East) thereon, a distance of
365.30 feet from the intersection of the Northerly prolongation of said East
line with the centerline of Baseline Street, 82.50 feet wide; thence North
89' 16' 16" West, a distance of 10.50 feet to the beginning of a tangent
curve, concave Southeasterly and having a radius of 1575 feet; thence
Southwesterly along said curve through a central angle of 21' 50' 51", a
distance of 600.57 feet; thence South 68" 52' 53" West to the East 1 ine of
the West 470.25 feet to said Lot 8 and the Point of Termination.
EXCEPTING AND RESERVING to the State of California from Parcels 1 and 2 all
mineral deposits, as defined by Section 6407 of the Public Resources Code,
together with the right to prospect for, mine and remove such deposits from
the following described locations only:
One 150' x 150' site, with ingress and egress thereto, to be located on the
portion of the property on the North side of Ninth Street and one 150' x
150' site, with ingress and egress thereto to be located on the portion of
the property on the South side of Ninth Street. Said sites to be located by
the State so as not to interfere with reasonable development or use of the
property.
HCF#45/2
Unit
Description
(Bedrooms/Bath)
1 1
2 1
3 1-1/2
City of San Bernardino
Page 1 of 1
EXHIBIT B
ASSISTED UNITS
NON-ASSISTED UNITS
very Low Income Uther Lower Income
Numoer 1/ Numbe r Jj Number 1/
of Units Occupancy- of Uni ts Occupancy of Units Occupancy-
9 Handicapped 12 Family
28 Family 2 Family 66 Family
9 Family 21 Family 30 Fami ly
l/Occupancy is restricted to the designated group.
HCF#45/2
City of San Bernardino
Page 1 of 3
EXHIBIT "C"
Development Payments
(LFE - Sponsor, Including Cooperative)
1. The Oepartment shall provide Development Payments in the total amount of
$2,729,863 and a contingency amount of $136,493 from the Department's
Development Payments Account for the payment of development costs
approved by the Department for the proposed Development. The funds will
be provided in a form of a no interest, deferred payment loan to be
evidenced by a note and secured by a deed of trust on the Property.
2. The Department shall provide Feasibility Payments in the form of a grant
not to exceed a total of $119,476, pursuant to Section 7838 of the
Program Regulations, for the purpose of providing deferred payment loans
to cooperative purchasers to be repaid as their incomes increase. The
method, amount and timing of such repayment shall be governed by the
terms of the Regulatory Agreement between the Sponsor and the LFE as
required by the Contract.
3. The total amount of the loan shall be set forth in the Development
Agreement, shall include all approved development costs and shall in no
case exceed the sum of Development Payments and the contingency amount
stated above. Any additional development costs not included in the
LFE's approved application for assistance which result in total
development costs in excess of the amount of Development Payments stated
above shall be identified, documented and justified by the LFE and shall
be subject to the approval of the Department.
4. The timing, method and manner of disbursement of the funds authorized
herein shall be set forth in the Oevelopment Agreement. All disburse-
ments of funds shall be deposited by the LFE in an account and in a
financial institution, both approved by the Department. Interest paid
on such account, if any, shall, at the direction of the Department, be
returned to the Department.
5. The Development Agreement shall authorize the Department to disburse an
amount not to exceed fifteen percent (15%) of the total loan amount, in
advance to pay initial or start-up development costs approved by the
Department. The exact amount of such initial disbursement, the allow-
able development costs to be paid therefrom and the method of payments
shall be set forth in the Development Agreement.
6. The balance of the loan amount shall be disbursed in accordance with the
following:
a) The Sponsor shall, on a regular basis, submit invoices for payment
of allowable development costs on a form approved by the Department.
Such invoices shall be accompanied by such supporting evidence and
City of San Bernardino
Page 2 of 3
documentation as the Department may require. The Department shall
make payment after its approval of the submitted invoices. The
exact timing and terms of the disbursement procedures shall be set
forth in the Development Agreement.
b) The Department shall retain ten percent (10%) of the total loan
amount for final payment of approved development costs after (1) the
development is certified for occupancy, (2) completion of an
approved certified cost audit, and (3) the release of all liens,
assessments and encumberances against the Development to the
satisfaction of the Department. The exact timing and terms of such
final payment shall be set forth in the Development Agreement.
6. No funds shall be disbursed prior to Loan Closing. The following terms
and conditions must be met to the satisfaction of the Department prior
to Loan Closing.
a) All required contracts and legal agreements shall be completed and
approved by the Department before Department loan and grant closing.
Such contracts shall include:
1. A Regulatory Agreement between the Applicant and Sponsor which
shall include a provision for annual operational subsidies.
2. A Development Agreement between the Applicant and Sponsor.
3. Agreements between the Sponsor, general contractor and the
.architect must be approved by the Department.
4. A second deed of trust with the Department as beneficiary in the
amount of the development payments.
5. Any additional agreements that the Department deems necessary.
b) The general contractor, architect, and management agent must be
approved by the Department.
c) The management plan must be approved by the Department.
d) The final architectural drawings and specifications must be approved
by the Department.
e) The first year operational budget must be approved by the
Department.
f) The specific amount of the RHCP development payments at the time of
loan and grant closing will be determined by the Department based on
review of final specifications and costs, but in no event shall it
exceed $2,866,356. Total amount of this contract shall not exceed
$2,985,832.
J'
City of San Bernardino
Page 3 of 3
g) The Sponsor, the Applicant and the Department shall agre~ to the
specific terms and conditions for the use of feasibility funds.
h) Loan and grant closing shall take place on or before November 29, 1982.
i) The Development Agreement shall require construction completion and
occupancy within eighteen (18) months of loan and grant closing.
j) The Sponsor shall obtain a building permit before loan and grant
closing.
k) Approval by the Department of the terms and conditions of the
below-market interest rate financing applicable to the nonassisted
units.
1) All documents relating to the creation and operation of the cooperative
corporation including, but not limited to, the articles of incorporation
and the corporate bylaws shall be subject to review and approval by the
Department prior to loan and grant closing.
HCF#45/2
